1
Exhibit 4(a)
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$125,000,000
CREDIT AGREEMENT
-AMONG-
REGENT BROADCASTING, INC.,
AS BORROWER
REGENT COMMUNICATIONS, INC.,
AS PARENT COMPANY AND GUARANTOR
THE SEVERAL LENDERS FROM TIME
TO TIME PARTY TO THIS AGREEMENT
FLEET NATIONAL BANK,
AS ADMINISTRATIVE AGENT
FLEET NATIONAL BANK,
AS ISSUING LENDER
GE CAPITAL COMMERCIAL FINANCE, INC.,
AS SYNDICATION AGENT
-AND-
DRESDNER BANK AG, NEW YORK AND GRAND CAYMAN BRANCHES,
AS DOCUMENTATION AGENT
--------------------------------
FLEET ROBERTSON STEPHENS INC.,
AS LEAD ARRANGER
--------------------------------
DATED AS OF JANUARY 27, 2000
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TABLE OF CONTENTS
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ARTICLE I. DEFINITIONS..............................................................................1
1.1. Defined Terms.........................................................................1
1.2. Use of Defined Terms..................................................................39
1.3. Cross-References......................................................................39
1.4. Accounting and Financial Determinations...............................................39
1.5. General Provisions Relating to Definitions............................................39
ARTICLE II. THE CREDIT FACILITIES...................................................................40
2.1. Amounts and Terms of Commitments.....................................................40
(a) The Revolving Loans...........................................................40
(b) The Incremental Facility......................................................40
2.2. Loan Accounts; Notes.................................................................41
2.3. Procedure for Borrowing..............................................................41
2.4. Conversion and Continuation Elections for all Borrowings.............................42
2.5. Reduction and Termination of Commitments.............................................43
2.6. Voluntary Prepayments................................................................45
2.7. Mandatory Prepayments................................................................46
2.8. Repayments of Principal..............................................................49
(a) The Revolving Loans...........................................................49
(b) The Incremental Loans.........................................................49
(c) Maturity Date.................................................................50
2.9. Fees.................................................................................50
(a) Commitment Fees...............................................................50
(b) Other Fees....................................................................50
2.10. Computation of Fees and Interest.....................................................51
2.11. Interest.............................................................................51
2.12. Payments by the Borrower; Pro Rata Treatment; etc....................................52
2.13. Payments by Lenders to the Administrative Agent......................................53
2.14. Sharing of Payments, etc.............................................................53
2.15. Collateral and Subsidiary Guaranty...................................................54
2.16. Procedure for Incremental Commitment Requests........................................54
ARTICLE III. THE LETTERS OF CREDIT..................................................................55
3.1. Letter of Credit Subfacility.........................................................55
3.2. Issuance, Amendment and Renewal of Letters of Credit.................................56
3.3. Participations, Drawings and Reimbursement...........................................57
3.4. Repayment of Participation...........................................................59
3.5. Role of Issuing Lender...............................................................59
3.6. Obligations Absolute.................................................................60
3.7. Cash Collateral Pledge...............................................................60
3.8. Letter of Credit Fees................................................................61
3.9. Uniform Customs and Practice.........................................................61
ARTICLE IV. TAXES, YIELD PROTECTION AND ILLEGALITY..................................................61
4.1. Taxes................................................................................61
4.2. Illegality...........................................................................65
4.3. Increased Costs and Reductions of Return.............................................66
4.4. Funding Losses.......................................................................67
4.5. Inability to Determine Rates.........................................................67
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4.6. Reserves on Eurodollar Loans.........................................................68
4.7. Certificates of Lenders..............................................................68
4.8. Change of Lending Office.............................................................68
ARTICLE V. CONDITIONS PRECEDENT.....................................................................68
5.1. Conditions to Making First Credit Extensions.........................................68
5.1.1. Execution and Delivery of this Agreement and Notes........................68
5.1.2. Pledge Agreement..........................................................69
5.1.3. Security Agreement; UCC Filings; etc......................................69
5.1.4. Other Loan Documents and Related Documents................................70
5.1.5. Shareholders' Agreement; Tax Sharing Agreements; etc......................70
5.1.6. Consummation of Certain Transactions......................................70
5.1.7. Certain Financial Conditions..............................................70
5.1.8. Refinancings..............................................................71
5.1.9. Financial Statements......................................................72
5.1.10. Certificate..............................................................72
5.1.11. Solvency Certificate.....................................................72
5.1.12. Certificates of Insurance................................................73
5.1.13. Resolutions, etc.........................................................73
5.1.14. Certificates of Good Standing, etc.......................................73
5.1.15. No Materially Adverse Effect; etc........................................74
5.1.16. Affiliate Transactions; Other Corporate Transactions.....................74
5.1.17. Fees and Expenses........................................................74
5.1.18. Opinions of Counsel......................................................74
5.2. All Credit Extensions................................................................75
5.2.1. Compliance with Warranties; No Default; etc...............................75
5.2.2. Notice of Borrowing; Continuation/Conversion Notice.......................75
5.2.3. Legality of Transactions..................................................75
5.2.4. Satisfactory Legal Form, etc..............................................75
5.2.5. Company Financings........................................................75
5.2.6. Pending Acquisitions......................................................76
5.2.7. Consummation of Certain Transactions......................................77
5.2.8. Compliance Certificate....................................................77
ARTICLE VI. REPRESENTATIONS AND WARRANTIES..........................................................77
6.1. Corporate Existence and Power, etc...................................................77
6.2. Corporate Authorization; etc.........................................................78
6.3. Governmental Authorization...........................................................78
6.4. Binding Effect.......................................................................78
6.5. Collateral Documents.................................................................79
6.6. No Default...........................................................................79
6.7. Use of Proceeds; Margin Regulations..................................................79
6.8. Financial Statements, etc............................................................79
6.9. Materially Adverse Effect............................................................79
6.10. Existing Indebtedness; Absence of Defaults; etc.....................................80
6.11. Transactions with Affiliates........................................................80
6.12. Corporate Structure, etc............................................................81
6.13. Title to Properties.................................................................81
6.14. Trademarks, etc.....................................................................81
6.15. Litigation..........................................................................81
6.16. Compliance with Applicable Law, etc.................................................82
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6.17. Governmental Regulation.............................................................82
6.18. Taxes...............................................................................82
6.19. ERISA Compliance....................................................................82
6.20. Hazardous Materials.................................................................83
6.21. Labor Controversies.................................................................83
6.22. Year 2000 Compliance................................................................83
6.23. FCC Authorizations..................................................................83
ARTICLE VII. PARENT COMPANY GUARANTY................................................................84
7.1. The Guaranty.........................................................................84
7.2. Insolvency Proceedings...............................................................85
7.3. Nature of Liability..................................................................85
7.4. Independent Obligations, etc.........................................................85
7.5. Authorization, etc...................................................................86
7.6. Subordination........................................................................87
7.7. Additional Waivers...................................................................88
7.8. Effectiveness of Guaranty............................................................88
ARTICLE VIII. AFFIRMATIVE COVENANTS.................................................................89
8.1. Financial Information, etc...........................................................89
8.2. Certificates; Other Information......................................................90
8.3. Notices..............................................................................90
8.4. Maintenance of Corporate Existence, etc..............................................91
8.5. Foreign Qualification, etc...........................................................91
8.6. Payment of Taxes; etc................................................................91
8.7. Maintenance of Property; Insurance...................................................91
8.8. Compliance with Laws, etc............................................................91
8.9. Books and Records....................................................................92
8.10. Use of Proceeds.....................................................................92
8.11. Interest Rate Protection............................................................93
8.12. Identification of Subsidiaries; Provision of Collateral.............................93
8.13. Additional Security; Further Assurances.............................................94
8.14. Year 2000 Compliance................................................................95
ARTICLE IX. NEGATIVE COVENANTS......................................................................95
9.1. Limitations on Lines of Business.....................................................95
9.2. Indebtedness.........................................................................95
9.3. Liens................................................................................97
9.4. Financial Covenants..................................................................98
(a) Maximum Leverage Ratio........................................................98
(b) Minimum Interest Coverage Ratio...............................................98
(c) Minimum Fixed Charge Coverage Ratio...........................................99
(d) Maximum Consolidated Corporate Overhead.......................................99
9.5. Consolidations, Mergers, Sales, etc..................................................100
9.6. Investments and Acquisitions.........................................................101
9.7. Restricted Payments..................................................................101
9.8. Limitations on Negative Pledge Clauses...............................................103
9.9. Limitation on Restrictions on Subsidiary Distributions...............................103
9.10. Transactions with Affiliates........................................................103
9.11. Sale of Capital Stock, etc..........................................................104
9.12. Change of Control...................................................................105
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9.13. Limitations on Optional Payments; etc...............................................105
9.14. Modification of other Ancillary Documents, etc......................................105
9.15. Maintenance of Separateness.........................................................105
9.16. Use of Credits; Compliance with Margin Regulations..................................105
9.17. Environmental Liabilities...........................................................106
ARTICLE X. EVENTS OF DEFAULT........................................................................106
10.1. Events of Default...................................................................106
10.1.1. Non-Payment of Obligations...............................................106
10.1.2. Non-Performance of Certain Obligations...................................106
10.1.3. Non-Performance of Other Obligations.....................................106
10.1.4. Breach of Representation or Warranty.....................................107
10.1.5. Cross-Default............................................................107
10.1.6. Insolvency; Voluntary Proceedings........................................107
10.1.7. Involuntary Proceedings..................................................107
10.1.8. ERISA....................................................................107
10.1.9. Judgments................................................................108
10.1.10. Change of Control.......................................................108
10.1.11. Subsidiary Guaranty.....................................................108
10.1.12. Security Documents......................................................108
10.1.13. Main Station Licenses...................................................108
10.2. Remedies............................................................................109
ARTICLE XI. THE ADMINISTRATIVE AGENT AND OTHER AGENTS...............................................110
11.1. Appointment and Authorization.......................................................110
11.2. Delegation of Duties................................................................110
11.3. Liability of Administrative Agent...................................................110
11.4. Reliance by Administrative Agent....................................................111
11.5. Notice of Default...................................................................112
11.6. Credit Decisions....................................................................112
11.7. Indemnification.....................................................................112
11.8. Administrative Agent in its Individual Capacity.....................................113
11.9. Successor Administrative Agent......................................................113
11.10. Collateral Documents and Subsidiary Guaranty.......................................114
11.11. Other Agents.......................................................................115
ARTICLE XII. MISCELLANEOUS..........................................................................115
12.1. Amendments and Waivers..............................................................115
12.2. Notices.............................................................................117
12.3. No Waiver; Cumulative Remedies......................................................118
12.4. Costs and Expenses..................................................................118
12.5. Indemnity...........................................................................118
12.6. Successors and Assigns..............................................................119
12.7. Assignments, Participations, etc....................................................119
12.8. Confidentiality.....................................................................121
12.9. Set-off.............................................................................121
12.10. Survival of Representations, Warranties and Agreements.............................122
12.11. Marshalling; Payments Set Aside....................................................122
12.12. Obligations Several; Independent Nature of Lenders' Rights.........................122
12.13. Notification of Addresses, Lending Offices, etc....................................123
12.14. Counterparts.......................................................................123
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12.15. Severability.......................................................................123
12.16. No Third Parties Benefited.........................................................123
12.17. Governing Law and Jurisdiction; Waiver of Trial by Jury............................123
12.18. Joinder of Additional Lenders, etc.................................................123
[REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
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SCHEDULES AND EXHIBITS
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SCHEDULE DESCRIPTION
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SCHEDULE I LENDING OFFICES/NOTICE ADDRESSES
SCHEDULE II COMMITMENTS OF LENDERS
SCHEDULE VI DISCLOSURE SCHEDULE
EXHIBIT DESCRIPTION
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EXHIBIT A FORM OF REVOLVING CREDIT NOTE
EXHIBIT B FORM OF INCREMENTAL LOAN NOTE
EXHIBIT C FORM OF NOTICE OF BORROWING
EXHIBIT D FORM OF NOTICE OF CONVERSION/CONTINUATION
EXHIBIT E FORM OF PLEDGE AGREEMENT
EXHIBIT F FORM OF SECURITY AGREEMENT
EXHIBIT G FORM OF COPYRIGHT SECURITY AGREEMENT
EXHIBIT H FORM OF TRADEMARK SECURITY AGREEMENT
EXHIBIT I FORM OF SUBSIDIARY GUARANTY AGREEMENT
EXHIBIT J FORM OF GUARANTOR SUPPLEMENT
EXHIBIT K FORM OF LEVERAGE RATIO CERTIFICATE
EXHIBIT L FORM OF COMPLIANCE CERTIFICATE
EXHIBIT M FORM OF ASSIGNMENT AND ASSUMPTION
EXHIBIT N FORM OF SOLVENCY CERTIFICATE
EXHIBIT O FORM OF OPINION OF SPECIAL COUNSEL FOR THE PARENT COMPANY
AND THE BORROWER
EXHIBIT P FORM OF OPINION OF SPECIAL FCC COUNSEL FOR THE PARENT
COMPANY AND THE BORROWER
EXHIBIT Q FORM OF OPINION OF SPECIAL COUNSEL FOR ADMINISTRATIVE AGENT
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CREDIT AGREEMENT
----------------
CREDIT AGREEMENT, dated as of January 27, 2000, among REGENT
BROADCASTING, INC., a Delaware corporation (hereinafter, together with its
successors in title and assigns, called the "BORROWER"), REGENT COMMUNICATIONS,
INC., a Delaware corporation (hereinafter, together with its successors in title
and assigns, called the "PARENT COMPANY" and, together with the Borrower called,
collectively, the "PRINCIPAL COMPANIES" and, singly, a "PRINCIPAL COMPANY"), the
several financial institutions from time to time party to this Agreement as
lenders hereunder ("LENDERS"), FLEET NATIONAL BANK, as Administrative Agent for
the Lenders, FLEET NATIONAL BANK, as Issuing Lender, GE CAPITAL COMMERCIAL
FINANCE, INC., as Syndication Agent for the Lenders, and DRESDNER BANK AG, NEW
YORK AND GRAND CAYMAN BRANCHES, as Documentation Agent for the Lenders.
RECITALS:
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A. The Borrower intends to finance, in part, the Pending
Acquisitions, the Refinancing and certain of the other Transactions and to pay
related fees and expenses from borrowings under the senior secured credit
facilities created by this Agreement.
B. The Lenders have agreed to make available to the Borrower
senior secured credit facilities upon the terms and subject to the conditions
contained in this Agreement.
NOW, THEREFORE, in consideration of the mutual agreements,
promises and covenants contained herein, the parties hereto hereby agree as
follows:
ARTICLE I.
DEFINITIONS
-----------
1.1. DEFINED TERMS. As used in this Agreement, the capitalized terms in
the Preamble hereto shall have the meanings therein given to them, and the
following words and terms shall have the meanings specified below:
"ACQUISITION" means any transaction, or any series of related
transactions, in which the Parent Company, the Borrower or any of their
Subsidiaries (a) acquires any business or all or any substantial part of the
Property of any Person or any division or other business unit thereof, whether
through purchase of assets, merger or otherwise, (b) directly or indirectly
acquires ownership or control of at least a majority (in number of votes) of the
Voting Interests of any Person, or (c) directly or indirectly acquires ownership
or control of at least a majority of the Equity Interests of any Person.
"ACQUISITION CERTIFICATE" means, with respect to any proposed
Acquisition, a certificate signed by an Authorized Officer of each Principal
Company in the form of a compliance certificate containing Acquisition Pro
Formas with respect to such Acquisition and certifying: (a) as to the maximum
Amount of such Acquisition; (b) as to the accuracy and completeness of the
Acquisition Pro Formas attached to such certificate; (c) as to the accuracy
after giving effect to the transactions contemplated by such Acquisition Pro
Formas of the matters set forth in each of CLAUSES (a), (b), (c), (d) and (e) of
the definition of "PERMITTED ACQUISITION CONDITIONS", and with respect to the
matters set forth in CLAUSE (c) and CLAUSE (e) of such definition, the
calculations
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in support thereof; (d) that on the date of such proposed Acquisition, both
immediately before and immediately after giving effect to such Acquisition, all
of the representations and warranties set forth in the Loan Documents shall be
true and correct in all material respects (except as affected by such
Acquisition and except for those representations and warranties that relate
solely to a prior date); and (e) that no Defaults are then continuing.
"ACQUISITION DOCUMENTATION" means, collectively, in relation to any
Acquisition undertaken and completed or (as the case may be) to be undertaken
and completed by the Borrower or any of its or the Parent Company's
Subsidiaries: (a) the letters of intent, agreements in principle, asset purchase
agreements, securities purchase agreements, merger agreements or other similar
agreements or Instruments pursuant to which such Acquisition is or (as the case
may be) is to be effected; and (b) all schedules, exhibits, annexes and
amendments thereto and all side letters and agreements affecting the terms
thereof or to be entered into in connection therewith, in each case, as amended,
supplemented or otherwise modified from time to time.
"ACQUISITION PRO FORMAS" means, in connection with any proposed
Acquisition by the Borrower or any of its or the Parent Company's Subsidiaries,
a consolidated balance sheet, statement of operations and cash flow statement of
the Parent Company and its Subsidiaries as of the most recent Covenant
Determination Date, each in reasonable detail and prepared on a combined Pro
Forma Basis after giving effect to, as applicable, (a) the proposed Acquisition
and each other proposed Acquisition for which a definitive agreement has been
executed at the time of delivery of the applicable Acquisition Pro Formas and
any related increase in Consolidated Total Debt, or (b) solely the proposed
Acquisition and any related increase in Consolidated Total Debt, in the case of
each of CLAUSE (a) and CLAUSE (b) above, as if each applicable Acquisition has
been consummated, and all applicable Indebtedness issued or incurred, as of the
first day of such period.
"ADDITIONAL SECURITY DOCUMENTS" has the meaning specified in Section
8.13(a).
"ADMINISTRATIVE AGENT" means Fleet National Bank, in its capacity as
administrative agent for the Agents, the Issuing Lender and the Lenders under
this Agreement and the other Loan Documents, and any successor to such
administrative agent.
"ADMINISTRATIVE AGENT-RELATED PERSONS" has the meaning specified in
SECTION 11.3.
"ADMINISTRATIVE AGENT'S PAYMENT OFFICE" means the address for payments
set forth on the signature pages hereto in relation to the Administrative Agent
or such other address as the Administrative Agent may from time to time specify
in accordance with SECTION 12.2.
"AFFILIATE" means, with respect to any Person, any other Person (a)
directly or indirectly controlling, controlled by, or under direct or indirect
common control with, such Person, or (b) that directly or indirectly owns or
controls more than 10% of any class of the Capital Stock of, or Equity Interests
in, such Person. A Person shall be deemed to control another Person if such
Person possesses, directly or indirectly, the power to direct or to cause the
direction of the management and policies of such other Person, whether through
the ownership of Voting Interests, by contract or otherwise. For purposes of
this Agreement and the other Loan Documents, (i) the Parent Company shall be and
shall be deemed to be an Affiliate of the Borrower and of each of the Borrower's
Subsidiaries, (ii) the Borrower shall not be or be deemed to be an Affiliate of
any of the Borrower's Subsidiaries, (iii) none of the Subsidiaries of the
Borrower shall be or be deemed to be an Affiliate of the Borrower or of any of
the other
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Subsidiaries of the Borrower, and (iv) neither the Agents nor the Lenders shall
be or be deemed to be an Affiliate of the Parent Company or the Borrower or of
any of its Subsidiaries.
"AFFILIATE TRANSACTION" means any of the following transactions or
arrangements:
(a) the making by the Borrower or any of its Subsidiaries of
any payment or prepayment (whether of principal, premium, interest or any other
sum) of or on account of, or any payment or other distribution by the Borrower
or any of its Subsidiaries on account of the redemption, repurchase, defeasance
or other acquisition for value of, any Indebtedness of any kind whatsoever (i)
of any Affiliate of the Borrower, or (ii) of the Borrower or any of its
Subsidiaries to any Affiliate of the Borrower;
(b) the making of any loans, advances or other Investments of
any kind whatsoever by the Borrower or any of its Subsidiaries to or in any
Affiliate of the Borrower or to or in any holder of any Indebtedness described
in CLAUSE (a) of this definition;
(c) the Sale by the Borrower or any of its Subsidiaries of all
or any part of its Property to, or for the direct or indirect benefit of, any
Affiliate of the Borrower;
(d) the incurrence by the Borrower or any of its Subsidiaries
of any Indebtedness to any Affiliate of the Borrower;
(e) the declaration or payment by the Borrower or any of its
Subsidiaries of any dividends or other distributions on account of, or the
making by the Borrower or any of its Subsidiaries of any payment or other
distribution on account of the purchase, repurchase, redemption or other
acquisition for value of, any shares of Capital Stock or any other Equity
Interests or Securities of any Affiliate of the Borrower;
(f) the payment by the Borrower or any of its Subsidiaries to
any Affiliate of the Borrower of any fees or commissions of any kind, including,
without limitation, management or consulting fees, non-competition payments or
other similar fees, investment banking or underwriting fees or commissions,
arrangement, placement or syndication fees, or brokers', finders' or other
transaction fees or commissions; or
(g) any other transaction or Contractual Obligation between
any Affiliate of the Borrower, on the one hand, and the Borrower, on the other
hand, or between any Affiliate of the Borrower, on the one hand, and any
Subsidiary of the Borrower, on the other hand.
"AGENTS" means, collectively, the Administrative Agent, the Collateral
Agent, the Syndication Agent, the Documentation Agent, and the Lead Arranger.
"AGGREGATE COMMITMENTS" means (a) the Aggregate Revolving Commitment,
and (b) Aggregate Incremental Commitment.
"AGGREGATE INCREMENTAL COMMITMENT" means the combined Incremental
Commitments of the Lenders in the initial aggregate amount equal to zero, as
such amount may be increased pursuant to SECTION 2.1(b) (in an aggregate amount
not to exceed the Maximum Incremental Amount), and as such amount may be reduced
from time to time pursuant to this Agreement.
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"AGGREGATE REVOLVING COMMITMENT" means the combined Revolving
Commitments of all of the Lenders, in the initial aggregate amount of
$125,000,000, as such amount may be reduced from time to time pursuant to this
Agreement.
"AGREEMENT" means this Credit Agreement as amended, supplemented or
otherwise modified from time to time.
"ALTERNATE BASE RATE" means, for any day, the GREATER of (a) the Base
Rate in effect on such day, or (b) the Federal Funds Rate, in effect on such
day, PLUS 1/2%.
"AMOUNT" means, with respect to any Acquisition, all consideration paid
in respect thereof, including consideration in the form of cash, Property (as
valued at the time of such Acquisition), or the assumption of Indebtedness or
other obligations or liabilities.
"ANCILLARY DOCUMENTS" means, collectively, the Governing Documents of
each of the Parent Company, the Borrower and their Subsidiaries, the Pending
Acquisition Documents, the other Transaction Documents, the Tax Sharing
Agreements, and all other Instruments that shall from time to time be identified
by the Borrower and the Administrative Agent in writing as "ANCILLARY DOCUMENTS"
for purposes of this Agreement and the other Loan Documents.
"ANTICIPATED REINVESTMENT AMOUNT" means, with respect to any
Reinvestment Election, the amount specified in the Reinvestment Notice delivered
by the Principal Companies in connection therewith as the aggregate amount of
the Net Cash Proceeds or (as the case may be) Net Issuance Proceeds from the
related Reinvestment Event that the Parent Company or the Borrower intends to
use, or (as the case may be) intends to cause one or more Subsidiaries of the
Parent Company or of the Borrower to use, to purchase, construct or otherwise
acquire Reinvestment Assets.
"APPLICABLE COMMITMENT FEE PERCENTAGE" means, with respect to the
Aggregate Revolving Commitment and the Aggregate Incremental Commitment, a
percentage, per annum, (a) determined by reference to the Consolidated Leverage
Ratio in effect from time to time as set forth in the pricing grid below, and
(b) also determined by reference (i) in the case of the Aggregate Revolving
Commitment, to the Usage applicable to the Aggregate Revolving Commitment for
any period, and (ii) in the case of the Aggregate Incremental Commitment, to the
Usage applicable to the Aggregate Incremental Commitment for any period, all as
set forth in the pricing grid below:
======================== ================================== =====================
CONSOLIDATED LEVERAGE COMMITMENT FEE COMMITMENT FEE
RATIO USAGE GREATER THAN OR EQUAL TO 50% USAGE LESS THAN 50%
------------------------ ---------------------------------- ---------------------
greater than or equal
to 5.00:1.00 0.500% 0.750%
------------------------ ---------------------------------- ---------------------
less than 5.00:1.00 0.375% 0.500%
======================== ================================== =====================
The "APPLICABLE COMMITMENT FEE PERCENTAGE" shall be determined by reference to
the Consolidated Leverage Ratio set forth in the most recent Leverage Ratio
Certificate delivered pursuant to SECTION 8.2(b). No change in the Applicable
Commitment Fee Percentage shall be effective until three (3) Business Days after
the date on which the Administrative Agent shall have received the applicable
financial statements and a Leverage Ratio Certificate pursuant to SECTION 8.2(b)
calculating such new Consolidated Leverage Ratio. If the Principal Companies
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shall have not submitted to the Administrative Agent the applicable information
within fifteen (15) days after the same is required under SECTION 8.2(b), the
Applicable Commitment Fee Percentage shall be determined, from and after the
expiration of such period of fifteen (15) days and until the applicable
information has been submitted, as if the Consolidated Leverage Ratio were in
excess of 5.00:1.00. Promptly following receipt of the applicable information as
and when required under SECTION 8.2(b), the Administrative Agent shall give each
Lender facsimile or telephonic notice (confirmed in writing) of the Applicable
Commitment Fee Percentage in effect from such date. The "APPLICABLE COMMITMENT
FEE PERCENTAGE" applicable to any Aggregate Commitment for any particular period
shall also be determined by reference to the Usage of such Aggregate Commitment
for such period as set forth in the pricing grid above.
"APPLICABLE LAW" means, in relation to any Person or its Property,
statutes and rules and regulations thereunder and interpretations thereof by any
Governmental Authority charged with the administration or the interpretation
thereof, and orders, requests, directives, instructions and notices of any
Governmental Authority, in each case, applicable to or binding upon such Person
or any of its Property.
"APPLICABLE MARGIN" means, with respect to any of the Loans (whether
Revolving Loans or Incremental Loans), a percentage, PER ANNUM, determined by
reference to the Consolidated Leverage Ratio in effect from time to time as set
forth in the pricing grid below:
========================================================================================
PRICING GRID
------------------------------ ---------------------------- ----------------------------
CONSOLIDATED
LEVERAGE BASE RATE EURODOLLAR
RATIO LOANS LOANS
------------------------------ ---------------------------- ----------------------------
Greater than 6.75: 1.00 1.750% 3.250%
or equal to
------------------------------ ---------------------------- ----------------------------
Less than 6.75: 1.00 1.500% 3.000%
Greater than 6.50: 1.00
or equal to
------------------------------ ---------------------------- ----------------------------
Less than 6.50: 1.00 1.250% 2.750%
Greater than 6.00: 1.00
or equal to
------------------------------ ---------------------------- ----------------------------
Less than 6.00: 1.00 1.000% 2.500%
Greater than 5.50: 1.00
or equal to
------------------------------ ---------------------------- ----------------------------
Less than 5.50: 1.00 0.750% 2.250%
Greater than 5.00: 1.00
or equal to
------------------------------ ---------------------------- ----------------------------
Less than 5.00: 1.00 0.375% 1.875%
Greater than 4.50: 1.00
or equal to
------------------------------ ---------------------------- ----------------------------
Less than 4.50: 1.00 0.000% 1.500%
Greater than 4.00: 1.00
or equal to
------------------------------ ---------------------------- ----------------------------
Less than 4.00: 1.00 0.000% 1.250%
========================================================================================
The "APPLICABLE MARGIN" shall be determined by reference to the Consolidated
Leverage Ratio set forth in the most recent Leverage Ratio Certificate delivered
pursuant to SECTION 8.2(b). No
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change in the Applicable Margin with respect to any of the Loans shall be
effective until three (3) Business Days after the date on which the
Administrative Agent shall have received the applicable financial statements and
a Leverage Ratio Certificate pursuant to SECTION 8.2(b) calculating such new
Consolidated Leverage Ratio. If the Principal Companies shall have not submitted
to the Administrative Agent the applicable information within fifteen (15) days
after the same is required under SECTION 8.2(b), the Applicable Margin shall be
determined, from and after the expiration of such period of fifteen (15) days
and until the applicable information has been submitted, as if the Consolidated
Leverage Ratio were in excess of 6.75:1.00. Promptly following receipt of the
applicable information as and when required under SECTION 8.2(b), the
Administrative Agent shall give each Lender facsimile or telephonic notice
(confirmed in writing) of the Applicable Margin in effect from such date.
"ASSET SALE" means any direct or indirect Sale (including any Sale of
all or any part of any Subsidiary of the Parent Company or of the Borrower by or
through the issue or Sale of any Equity Interests of such Subsidiary, and also
including any Sale pursuant to a sale and leaseback transaction), whether in a
single transaction or in a series of related transactions, by the Parent Company
or the Borrower or by any of their Subsidiaries of any businesses or Property of
the Parent Company or the Borrower or of any of their Subsidiaries, whether now
owned or from time to time hereafter created, arising or acquired, including
Equity Interests (including Equity Interests of any such Subsidiaries, but
excluding Equity Interests of the Parent Company or the Borrower); PROVIDED,
HOWEVER, that the term "ASSET SALE" shall not include any Permitted
Dispositions.
"ASSIGNEE" has the meaning specified in SECTION 12.7(a).
"ASSIGNMENT AND ASSUMPTION" has the meaning specified in SECTION
12.7(a).
"ATTORNEY COSTS" means and includes all reasonable fees and
disbursements of any law firm or other external legal counsel and, without
duplication, the reasonable allocated cost of internal legal counsel and other
internal legal services, and all reasonable disbursements of internal legal
counsel and other internal legal services.
"AUTHORIZED OFFICERS" has the meaning specified in SECTION 5.1.13(a).
"BANKRUPTCY CODE" means the Federal Bankruptcy Reform Act of 1978 (11
U.S.C.section 101, ET SEQ.), as amended from time to time.
"BASE RATE" means the rate of interest publicly announced from time to
time by Fleet National Bank at its head office in Boston, Massachusetts as its
"base rate". Any change in the Base Rate announced by Fleet Bank shall take
effect at the opening of business on the day specified in the public
announcement of such change.
"BASE RATE LOAN" means any Loan that bears interest at an interest rate
based on the Alternate Base Rate.
"BORROWER" has the meaning specified in the PREAMBLE hereto.
"BORROWING" means any borrowing hereunder consisting of one or more
Loans made or to be made to the Borrower on the same Borrowing Date by Lenders
pursuant to SECTION 2.1.
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"BORROWING DATE" means, in relation to any Loan, the date of the
borrowing of such Loan, as specified in the relevant Notice of Borrowing for
such Loan.
"BRIDGE COMMITMENT LETTER" and "BRIDGE NOTE PURCHASE AGREEMENT" have
the meanings specified in the definition of the term "BRIDGE NOTES".
"BRIDGE FINANCING" means the unsecured senior financing, in the maximum
aggregate amount of $25,500,000, to be obtained by the Parent Company through
the issuance of its Bridge Notes upon the terms and subject to the conditions
contained in the Bridge Commitment Letter and the Bridge Note Purchase
Agreement.
"BRIDGE FINANCING DOCUMENTS" means, collectively, the Bridge Note
Purchase Agreement, the Bridge Notes, the Bridge Commitment Letter, the Exchange
Notes and the Exchange Note Indenture.
"BRIDGE NOTES" means, collectively, the unsecured Senior Increasing
Rate Notes of the Parent Company, in the maximum aggregate principal amount of
$25,500,000, to be issued by the Parent Company upon the terms and subject to
the conditions contained in (a) the Bridge Commitment Letter, dated as of
December 30, 1999, between Prudential Securities Credit Corp. ("PRU BRIDGE") and
the Parent Company (such letter, together with the annexes and exhibits thereto,
each as amended from time to time, being herein called the "BRIDGE COMMITMENT
LETTER"), and (b) the definitive bridge note purchase agreement to be executed
and delivered by the Parent Company and the several purchasers of the Bridge
Notes (such agreement, together with the schedules and exhibits thereto, each as
amended from time to time, being herein called the "BRIDGE NOTE PURCHASE
AGREEMENT").
"BUSINESS DAY" means any day other than a Saturday, Sunday or other day
on which commercial banks in Boston, Massachusetts, New York City or Covington,
Kentucky are authorized or required by law to close, so long as, if such term
shall be used in relation to any Eurodollar Loan or any Interest Period relating
thereto, on such day dealings are also carried on by and between banks in Dollar
deposits in the applicable interbank market.
"CAPITAL ADEQUACY REGULATION" means any guideline, request or directive
of any central bank or other Governmental Authority, whether or not having the
force of law, and any other Applicable Law regarding or affecting the capital
adequacy of any bank or of any corporation controlling a bank.
"CAPITAL ASSETS" means, with respect to any Person, all equipment,
fixed assets and real Property or improvements of such Person, or replacements
or substitutions therefor or additions thereto, that, in accordance with GAAP,
have been or should be reflected as additions to Property, plant or equipment on
the balance sheet of such Person.
"CAPITAL EXPENDITURES" means, with respect to any Person for any
period, all expenditures made directly or indirectly by such Person during such
period for Capital Assets (whether paid in cash or other consideration or
accrued as a liability and, including, without limitation, all expenditures for
maintenance and repairs which are required, in accordance with GAAP, to be
capitalized on the books of such Person).
"CAPITAL LEASE" has the meaning specified in the definition of the term
"CAPITAL LEASE OBLIGATIONS".
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"CAPITAL LEASE OBLIGATIONS" means, with respect to any Person, all
obligations of such Person to pay rent or other amounts under any lease of (or
other arrangements conveying the right to use) real or personal Property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases (each, a "CAPITAL LEASE") on a balance sheet of
such Person under GAAP, and, for the purposes of this Agreement, the amount of
such obligations at any time shall be the capitalized amount thereof at such
time determined in accordance with GAAP.
"CAPITAL STOCK" means (a) in the case of any corporation, any corporate
capital stock of any class or series, (b) in the case of any association or
business entity, any shares, interests, participations, rights or other
equivalents (howsoever designated) of corporate capital stock, and (c) in the
case of any partnership or limited liability company, partnership or membership
interests (whether general or limited).
"CASH COLLATERALIZE" means to pledge and deposit with or deliver to the
Administrative Agent, for the benefit of the Agents, the Issuing Lender and the
Lenders, as collateral for Letter of Credit Obligations, cash or deposit account
balances pursuant to documentation in form and substance reasonably satisfactory
to the Administrative Agent and the Issuing Lender. Derivatives of such term
shall have corresponding meanings. Each of the Principal Companies hereby grants
to the Administrative Agent, for the benefit of the Agents, the Issuing Lender
and the Lenders, a security interest in and Lien upon all such cash and deposit
account balances. Cash Collateral shall be invested in Cash Equivalents of a
tenor reasonably satisfactory to the Administrative Agent as instructed by the
Principal Companies from time to time, which Cash Equivalents shall be held in
the name of the Parent Company or the Borrower and under the control of the
Administrative Agent in a manner reasonably satisfactory to the Administrative
Agent.
"CASH EQUIVALENTS" means any or all of the following: (a) obligations
of, or guaranteed as to principal and interest by, the United States government
or any agency thereof maturing within one year after the date on which such
obligations are purchased; (b) open market commercial paper of any corporation
(other than the Parent Company, the Borrower or any of their respective
Subsidiaries) incorporated under the laws of the United States or any State
thereof or the District of Columbia rated P-1 or its equivalent or higher by
Moody's or A-1 or its equivalent or higher by S&P; (c) time deposits,
certificates of deposit or bankers' acceptances maturing within one year after
the acquisition thereof issued by commercial banks organized under the laws of
any country which is a member of the OECD and having a combined capital and
surplus in excess of $250,000,000 or which is a Lender; (d) repurchase
agreements with respect to Securities described in CLAUSE (a) above entered into
with an office of a bank or trust company meeting the criteria specified in
CLAUSE (c); (e) money market funds investing only in Investments described in
CLAUSES (a) through (d); and (f) direct obligations of, or obligations the
principal and interest of which are unconditionally guaranteed by any State of
the United States or any foreign state having, at the date of its acquisition by
the Parent Company, the Borrower or any of their Subsidiaries, a rating of at
least AA by S&P or Aa by Moody's, in each case maturing within one year from the
date of the acquisition.
"CHANGE OF CONTROL" means any event or series of related events
(including the Sale or issuance (or series of Sales or issuances) of Equity
Interests of the Borrower by the Borrower or by any holder or holders thereof,
or any merger, consolidation, recapitalization, reorganization or other
transaction or arrangement) as a result of which: (a) the Parent Company shall
cease to own and control (both legally and beneficially) 100% of the Voting
Stock and 100% of all of the other Equity Interests in the Borrower; (b) any
"person" or "group" (as such terms are used in Sections
16
-9-
13(d) and 14(d) of the Exchange Act), excluding the JS Group, shall become the
"beneficial owner" (as defined in Rules 13(d)-3 and13(d)-5 under the Exchange
Act), directly or indirectly, of more than the greater of (i) 25% of the then
outstanding Voting Stock of the Parent Company, or (ii) the percentage of the
then outstanding Voting Stock of the Parent Company then owned by the JS Group;
(c) the Board of Directors of the Parent Company shall at any time cease to
consist of a majority of Continuing Directors; or (d) any "Change of Control" or
any other similar event under and as defined in any of the Instruments governing
any Indebtedness of the Parent Company or of any of its Subsidiaries in an
aggregate principal amount exceeding $10,000,000 shall at any time occur.
"CLOSING DATE" means the Borrowing Date on which the first Credit
Extensions are made or to be made by the Lenders to the Borrower hereunder.
"CODE" means the Internal Revenue Code of 1986, and the rules and
regulations promulgated thereunder as from time to time in effect.
"COLLATERAL" means, collectively, any and all collateral provided by
the Parent Company or the Borrower or by any of their Subsidiaries to the
Agents, the Issuing Lender and the Lenders from time to time pursuant to the
Collateral Documents and the other Loan Documents.
"COLLATERAL AGENT" means Fleet National Bank, in its capacity as
collateral agent or pledgee for the Agents, the Issuing Lender and the Lenders
under this Agreement, the Collateral Documents and the other Loan Documents, and
any successor to such collateral agent or pledgee.
"COLLATERAL DOCUMENTS" means, collectively, the Security Agreement, the
Pledge Agreement, the Copyright Security Agreements, the Trademark Security
Agreements, the Additional Security Documents, all other Instruments executed
and delivered to the Administrative Agent or the Collateral Agent on the
Effective Date or from time to time thereafter pursuant to SECTION 2.15, SECTION
8.12 or SECTION 8.13, and all other Security Instruments executed and/or
delivered from time to time pursuant to any of the foregoing.
"COMMITMENT" means, for each Lender, the sum of its Revolving
Commitment and Incremental Commitment.
"COMMITMENT PERCENTAGE" means, as to any Lender (a) its Revolving
Commitment Percentage or its Incremental Commitment Percentage, or (b) as the
context may require, the percentage equivalent of such Lender's Commitment
divided by the Aggregate Commitment; PROVIDED, HOWEVER, that, if the Aggregate
Commitment has terminated in full, then such Commitment Percentage shall be
determined by dividing such Lender's Commitment in effect immediately prior to
such termination by the Aggregate Commitment in effect immediately prior to such
termination.
"COMMITMENT REDUCTION AMOUNTS" has the meaning specified in SECTION
2.5(b).
"COMMITMENT REDUCTION DATES" has the meaning specified in SECTION
2.5(b).
"COMMUNICATIONS ACT" has the meaning specified in SECTION 6.23.
"COMPANY FINANCINGS" means, collectively, (a) the IPO, and (b) the
Bridge Financing.
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"COMPLIANCE CERTIFICATE" means a compliance certificate, in or
substantially in the form of EXHIBIT L, duly executed by the chief financial
officer of each Principal Company and delivered pursuant to SECTION 8.2(a).
"CONSOLIDATED ADJUSTED CURRENT ASSETS" means, in relation to any Person
and its Subsidiaries as at any date, all amounts (other than cash and Cash
Equivalents) which would, in conformity with GAAP, be set forth opposite the
caption "total current assets" (or any like caption) on a consolidated balance
sheet of such Person and its Subsidiaries as at such date.
"CONSOLIDATED ADJUSTED CURRENT LIABILITIES" means, in relation to any
Person and its Subsidiaries as at any date, all amounts which would, in
conformity with GAAP, be set forth opposite the caption "total current
liabilities" (or any like caption) on a consolidated balance sheet of such
Person and its Subsidiaries as at such date, but excluding the current portion
of any Indebtedness of such Person and its Subsidiaries.
"CONSOLIDATED ADJUSTED EBITDA" means, in relation to the Parent Company
and its Subsidiaries for any period, the Consolidated EBITDA of the Parent
Company and its Subsidiaries for such period; PROVIDED, HOWEVER, that, for
purposes of calculating Consolidated Adjusted EBITDA of the Parent Company and
its Subsidiaries for any period: (a) there shall be added to such Consolidated
EBITDA for such period all (if any) (i) Consolidated Cost Savings for such
period, and (ii) Consolidated Eligible Charges for such period; (b) the
Consolidated EBITDA of any Person or attributable to any business acquired by
the Borrower or by any of its Subsidiaries during such period shall be included
on a Pro Forma Basis for such period (assuming the consummation of such
Acquisition occurred on the first day of such period), if the consolidated
balance sheet of such acquired Person or business, as the case may be, and its
consolidated Subsidiaries as at the end of the period preceding the Acquisition
of such Person and the related consolidated statements of income and
stockholders' equity and of cash flows for the period in respect of which
Consolidated EBITDA is to be calculated (i) have been previously provided to the
Administrative Agent, and (ii) either (A) have been reported on without a
qualification arising out of the scope of the audit by independent certified
public accountants of nationally recognized standing, or (B) have been found
acceptable by the Administrative Agent; and (c) the Consolidated EBITDA of any
Person or attributable to any business sold or otherwise disposed of by the
Borrower or any of its or the Parent Company's Subsidiaries during such period
shall be excluded on a Pro Forma Basis for such period (assuming the
consummation of such disposition occurred on the first day of such period).
"CONSOLIDATED BROADCAST CASH FLOW" means, in relation to the Parent
Company and its Subsidiaries for any period, the SUM of (a) the Consolidated
Adjusted EBITDA of the Parent Company and its Subsidiaries for such period, PLUS
(b) the Consolidated Corporate Overhead of the Parent Company and its
Subsidiaries for such period, to the extent, but only to the extent, that such
Consolidated Corporate Overhead was deducted in determining Consolidated
Adjusted EBITDA for such period.
"CONSOLIDATED CAPITAL EXPENDITURES" means, in relation to any Person
and its Subsidiaries for any period, all Capital Expenditures by such Person and
its Subsidiaries for such period, all as determined on a consolidated basis in
accordance with GAAP.
"CONSOLIDATED CASH INTEREST EXPENSE" means, in relation to any Person
and its Subsidiaries for any period, Consolidated Interest Expense of such
Person and its Subsidiaries for such period, but excluding, to the extent
otherwise included therein, interest expense to the extent
18
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not paid and not required to be paid in cash in such period, all as determined
on a consolidated basis in accordance with GAAP.
"CONSOLIDATED CORPORATE OVERHEAD" means, in relation to the Parent
Company and its Subsidiaries for any period, the portion of the corporate
overhead of the Parent Company and its Subsidiaries for such period not directly
allocable to the operation of Radio Stations or other operating assets, all as
determined on a consolidated basis in accordance with GAAP; PROVIDED, HOWEVER,
that, for purposes of calculating the Consolidated Corporate Overhead of the
Parent Company and its Subsidiaries for any period, there shall be excluded from
such Consolidated Corporate Overhead for such period, the SUM (without
duplication) of Consolidated Eligible Charges for such period of the kind
described in PARAGRAPH (a), (b) or (c) of the definition of that term.
"CONSOLIDATED COST SAVINGS" means, in relation to the Parent Company
and its Subsidiaries for any period and for any Acquisitions completed by the
Borrower or by any of its or the Parent Company's Subsidiaries during such
period, the SUM, determined on a consolidated basis and without duplication, of
all cost savings resulting from employee terminations, facilities consolidations
and closings, standardization of employee benefits and compensation practices,
consolidation of property, casualty and other insurance coverage and policies,
standardization of sales representation commissions and other contract rates,
and reductions in taxes other than income taxes, which cost savings the
Principal Companies reasonably believe in good faith would have been achieved
during such period as a result of such Acquisitions (regardless of whether such
cost savings could then be reflected in pro forma financial statements under
GAAP); PROVIDED, HOWEVER, that (a) such cost savings were identified and such
cost savings were quantified in the Acquisition Certificates delivered to the
Administrative Agent by the Principal Companies in connection with such
Acquisitions, (b) if the aggregate amount of all of such cost savings for any
period shall not exceed ten percent (10%) of Consolidated Adjusted EBITDA for
such period, then the Principal Companies shall have obtained the prior written
approval of the Administrative Agent for such cost savings (which approval shall
not be unreasonably withheld or delayed by the Administrative Agent), (c) if the
aggregate amount of all of such cost savings for any period shall exceed ten
percent (10%) of Consolidated Adjusted EBITDA for such period, then the
Principal Companies shall have obtained the prior written approval of the
Required Lenders for such cost savings, and (d) with respect to each Acquisition
completed prior to the 90th day preceding any date of determination, actions
have been commenced or initiated by the Principal Companies or their
Subsidiaries within 90 days after the completion of such Acquisition to effect
the cost savings identified in the related Acquisition Certificate (regardless,
however, of whether the corresponding cost savings were ultimately achieved).
"CONSOLIDATED EBITDA" means, in relation to any Person and its
Subsidiaries for any period, Consolidated Net Income of such Person and its
Subsidiaries for such period, PLUS, without duplication, and only to the extent
reflected as a charge in the statement of such Consolidated Net Income for such
period, the SUM of (a) provisions for income tax expense (including, without
limitation, any franchise taxes imposed in lieu of income taxes), PLUS (b)
Consolidated Interest Expense, amortization or write-off of deferred financing
fees, debt discount and debt issuance costs and commissions, discounts and other
fees and charges associated with Indebtedness, PLUS (c) depreciation and
amortization expense, PLUS (d) amortization of intangibles (including, without
limitation, goodwill) and organization costs, and PLUS (e) any non-cash charges
or expenses or non-cash losses (including non-cash losses on Sales of assets
outside of the ordinary course of business), and MINUS, without duplication, and
only to the extent included in the statement of such Consolidated Net Income for
such period, the SUM of (i) any
19
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extraordinary, unusual or non-recurring income or gains (including gains on the
Sales of assets outside of the ordinary course of business), PLUS (ii) any other
non-cash income, all as determined on a consolidated basis and in accordance
with GAAP.
"CONSOLIDATED ELIGIBLE CHARGES" means, in relation to the Parent
Company and its Subsidiaries for any period, the SUM, determined on a
consolidated basis, without duplication, and only to the extent included in the
statement of Consolidated Net Income of the Parent Company and its Subsidiaries
for such period, of: (a) all transaction costs and expenses, including
commissions, legal, advisory and other fees and related expenses, incurred or
sustained by the Parent Company or by any of its Subsidiaries in connection with
good faith efforts made on a reasonable basis to complete any Acquisition which
has been abandoned or which cannot otherwise be completed by the Borrower or by
any of its or the Parent Company's Subsidiaries; PROVIDED, HOWEVER, that the
maximum aggregate amount of all of such transaction costs that may be included
in "CONSOLIDATED ELIGIBLE CHARGES" for any Measurement Period shall not exceed
$500,000; (b) consulting fees and other payments made by the Parent Company to
Joel Fairman; PROVIDED, HOWEVER, that the maximum aggregate amount of all of
such fees and other payments that may be included in "CONSOLIDATED ELIGIBLE
CHARGES" for any Measurement Period shall not exceed $275,000; and (c) all
transaction costs and expenses, including all underwriting, brokerage or selling
commissions and legal, advisory and other fees and related expenses incurred by
the Parent Company in connection with the consummation of the IPO.
"CONSOLIDATED EXCESS CASH FLOW" means, for any Fiscal Year of the
Parent Company, the EXCESS, if any, of (a) the SUM of (i) the Consolidated
Adjusted EBITDA of the Parent Company and its Subsidiaries for such Fiscal Year,
and (ii) the Consolidated Working Capital Adjustment of the Parent Company and
its Subsidiaries for such Fiscal Year, OVER (b) the SUM, without duplication, of
(i) the aggregate amount of all prepayments of Loans during such Fiscal Year but
only if and to the extent accompanied by permanent reductions of Aggregate
Commitments, and the aggregate amount of all prepayments of the Incremental
Loans during such Fiscal Year made after the Incremental Commitment Termination
Date pursuant to SECTION 2.6 or SECTION 2.7, (ii) without duplication of any
items in clause (i), Consolidated Fixed Charges of the Parent Company and its
Subsidiaries for such period, and (iii) the sum of $1,000,000.
"CONSOLIDATED FIXED CHARGE COVERAGE RATIO" means, as of the last day of
any Fiscal Quarter, the RATIO of (a) Consolidated Adjusted EBITDA of the Parent
Company and its Subsidiaries for the Measurement Period ending on such date, to
(b) Consolidated Fixed Charges of the Parent Company and its Subsidiaries for
such Measurement Period.
"CONSOLIDATED FIXED CHARGES" means, in relation to any Person and its
Subsidiaries for any period, the SUM (without duplication) of (a) Consolidated
Cash Interest Expense of such Person and its Subsidiaries for such period, PLUS
(b) the aggregate amount paid or required to be paid in cash in respect of
income taxes by such Person or any of its Subsidiaries on a consolidated basis
during such period, PLUS (c) Consolidated Capital Expenditures of such Person
and its Subsidiaries for such period, PLUS (d) all regularly scheduled payments
required to be made during such period on account of principal of Indebtedness
of such Person or of any of its Subsidiaries (including regularly scheduled
principal payments in respect of the Loans, and also including the principal
component of any scheduled payments in respect of Capital Lease Obligations),
all as determined on a consolidated basis in accordance with GAAP; PROVIDED,
HOWEVER, that, for purposes of calculating the Consolidated Fixed Charges of the
Parent Company and its Subsidiaries for any period, there shall be included in
such Consolidated Fixed Charges for such period, the SUM (without duplication)
of (i) the Consolidated Eligible Charges for such
20
-13-
period of the kind described in PARAGRAPH (a) or (b) of the definition of that
term, PLUS (ii) the aggregate amount of all Restricted Payments made in cash
during such period on or in respect of the Permitted Equity Interests of the
Parent Company but only if and to the extent that such Restricted Payments are
permitted by SECTION 9.7.
"CONSOLIDATED INTEREST COVERAGE RATIO" means, as of the last day of any
Fiscal Quarter, the RATIO of (a) Consolidated Adjusted EBITDA of the Parent
Company and its Subsidiaries for the Measurement Period ending on such date, to
(b) Consolidated Cash Interest Expense of the Parent Company and its
Subsidiaries for such Measurement Period.
"CONSOLIDATED INTEREST EXPENSE" means, in relation to any Person and
its Subsidiaries for any period, (a) interest expense on all Indebtedness of
such Person or of any of its Subsidiaries for such period, whether paid or
accrued, all as determined on a consolidated basis in accordance with GAAP, and
including: (i) interest expense in respect of Indebtedness (including the
Obligations), (ii) the interest component of Capital Lease Obligations, (iii)
commissions, discounts and other fees and charges payable in connection with
letters of credit and bankers' acceptances, (iv) the net payment, if any,
payable in connection with Interest Rate Protection Agreements, less the net
credit, if any, received in connection with Interest Rate Protection Agreements,
and (v) all Fees payable by such Person, LESS (b) interest income of such Person
and its Subsidiaries for such period, determined on a consolidated basis and in
accordance with GAAP.
"CONSOLIDATED LEVERAGE RATIO" means, as of the last day of any Fiscal
Quarter, the RATIO of (a) Consolidated Total Debt of the Parent Company and its
Subsidiaries as of such date, to (b) Consolidated Adjusted EBITDA of the Parent
Company and its Subsidiaries for the Measurement Period ending on such date.
"CONSOLIDATED NET INCOME" means, in relation to any Person and its
Subsidiaries for any period, the consolidated net income (or loss) of such
Person and its Subsidiaries, determined on a consolidated basis in accordance
with GAAP.
"CONSOLIDATED SENIOR LEVERAGE RATIO" means, as of the last day of any
Fiscal Quarter, the RATIO of (a) Consolidated Total Senior Debt of the Parent
Company and its Subsidiaries as at such date, to (b) Consolidated Adjusted
EBITDA of the Parent Company and its Subsidiaries for the Measurement Period
ending on such date.
"CONSOLIDATED TOTAL DEBT" means, in relation to any Person and its
Subsidiaries as at any date, the aggregate amount of all of the Indebtedness of
such Person and its Subsidiaries as at such date, determined on a consolidated
basis; PROVIDED, HOWEVER, that, for purposes only of calculating the
Consolidated Total Debt of the Parent Company and its Subsidiaries as at any
date: (a) there shall be excluded from the Indebtedness of the Parent Company or
of any of its Subsidiaries as at any date falling prior to January 31, 2005 any
Other Senior Debt so long as neither the Parent Company nor any of its
Subsidiaries shall have any obligations of any kind to make any payments in cash
prior to January 31, 2005 of or on account of interest on such Other Senior
Debt; and (b) from and after the date hereof and until the earlier to occur of
(i) the completion of the Sale of the two FM and one AM Radio Stations owned by
Subsidiaries of the Parent Company in Flagstaff, Arizona ("FLAGSTAFF SALE"), or
(ii) the termination, expiration or cancellation of the agreement governing the
Flagstaff Sale prior to the completion thereof, the Indebtedness of the Parent
Company and its Subsidiaries as at such date under or in respect of the
aggregate principal amount of all Revolving Loans outstanding as at such date
shall be reduced
21
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on a Pro Forma Basis as if the aggregate amount of all of the Net Cash Proceeds
which, in the judgment of the Principal Companies made on a reasonable basis and
in good faith, will be received by Subsidiaries of the Parent Company from the
Flagstaff Sale had been paid to the Administrative Agent immediately prior to
such date for application towards unpaid principal of Revolving Loans.
"CONSOLIDATED TOTAL SENIOR DEBT" means, in relation to the Parent
Company and its Subsidiaries as at any date, the Consolidated Total Debt of the
Parent Company and its Subsidiaries as at such date, LESS the aggregate
principal amount of all of the Other Senior Debt and Permitted Subordinated Debt
of the Parent Company and its Subsidiaries as at such date, determined on a
consolidated basis.
"CONSOLIDATED WORKING CAPITAL" means, in relation to any Person and its
Subsidiaries as at any date, the EXCESS of the Consolidated Adjusted Current
Assets of such Person and its Subsidiaries as at such date, OVER the
Consolidated Adjusted Current Liabilities of such Person and its Subsidiaries as
at such date.
"CONSOLIDATED WORKING CAPITAL ADJUSTMENT" means, in relation to any
Person and its Subsidiaries for any period, the amount (which may be a negative
number) by which Consolidated Working Capital of such Person and its
Subsidiaries as of the beginning of such period exceeds (or is less than)
Consolidated Working Capital of such Person and its Subsidiaries as of the end
of such period.
"CONTINUATION DATE" means any date on which a Eurodollar Loan is to be
continued as a Eurodollar Loan for a further Interest Period, in each case, in
accordance with the provisions of SECTION 2.4.
"CONTINUING DIRECTORS" shall mean, collectively, directors of the
Parent Company on December 31, 1999, and each other director of the Parent
Company from time to time, if such other director's nomination for election to
the Board of Directors of the Parent Company was recommended by a majority of
the then Continuing Directors or by the JS Group.
"CONTRACTUAL OBLIGATION" means, as to any Person, any agreement or
obligation under any Security issued by such Person or under any agreement,
undertaking, contract or other Instrument to which such Person is a party or by
which it or any of its Property is bound.
"CONVERSION DATE" means any date on which a Base Rate Loan is to be
converted to a Eurodollar Loan, or a Eurodollar Loan is to be converted to a
Base Rate Loan, in each case, in accordance with the provisions of SECTION 2.4.
"COPYRIGHT SECURITY AGREEMENT" means a Copyright Security Agreement, in
or substantially in the form of EXHIBIT G, to be executed and delivered by each
of the Parent Company and certain of their Subsidiaries in favor of the
Collateral Agent in compliance with the terms of this Agreement and the Security
Agreement.
"COVENANT DETERMINATION DATE" means, at any particular time, the last
day of the then most recent Fiscal Quarter of the Parent Company for which
financial statements of the Parent Company have been furnished to the
Administrative Agent pursuant to SECTION 8.1(a) or SECTION 8.1(b).
22
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"CREDIT EXTENSION" means (a) the making of any Loan to the Borrower
pursuant to this Agreement, or (b) the issuance, amendment or renewal of any
Letter of Credit by the Issuing Lender pursuant to this Agreement.
"CREDIT PARTIES" means, collectively, the Parent Company, the Borrower
and the Subsidiary Guarantors.
"DEFAULT" means any event or circumstance which, with the giving of
notice, the lapse of time, or both, would (if not cured or otherwise remedied
during such time) constitute an Event of Default.
"DISBURSEMENT DATE" has the meaning specified in SECTION 3.3(b).
"DISCLOSURE SCHEDULE" means SCHEDULE VI, dated as of the Effective
Date, prepared and completed by the Parent Company and the Borrower, and
delivered by the Parent Company and the Borrower to the Administrative Agent in
connection with this Agreement and identified as the "DISCLOSURE SCHEDULE".
"DISPOSITION" has the meaning specified for that term in the Subsidiary
Guaranty.
"DOCUMENTATION AGENT" means Dresdner Bank AG, New York and Grand Cayman
Branches, in its capacity as documentation agent for the Agents, the Issuing
Lender and the Lenders under this Agreement and the other Loan Documents, and
any successor to such documentation agent.
"DOLLARS" and "$" mean lawful money of the United States.
"DOMESTIC LENDING OFFICE" has the meaning specified in the definition
of the term "LENDING OFFICE".
"EFFECTIVE DATE" means January 27, 2000, the date of this Agreement.
"ELIGIBLE ASSIGNEE" means and includes (a) any Lender or any Affiliate
of any Lender, and (b) any commercial bank, insurance company, investment or
mutual fund or other entity that is an "accredited investor" (as defined in
Regulation D under the Securities Act of 1933) and that extends credit or buys
loans as one of its businesses; PROVIDED, HOWEVER, that none of the Parent
Company, the Borrower or any of their Subsidiaries or Affiliates shall be an
Eligible Assignee for purposes of this Agreement or any of the other Loan
Documents.
"EMPLOYMENT AGREEMENTS" has the meaning specified in SECTION 5.1.5.
"ENVIRONMENTAL CLAIMS" means any and all administrative, regulatory or
judicial actions, suits, demands, demand letters, claims, Liens, notices of
noncompliance or violation, investigations or proceedings relating in any way to
any violation of, or liability under, any Environmental Law or any permit
issued, or any approval given, under any such Environmental Law (hereafter,
"CLAIMS"),including, without limitation, (a) any and all Claims by Governmental
Authorities for enforcement, cleanup, removal, response, remedial or other
actions or damages pursuant to any applicable Environmental Law, and (b) any and
all Claims by any third party or other Person seeking damages, contribution,
indemnification, cost recovery, compensation or
23
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injunctive relief resulting from Hazardous Materials or arising from alleged
injury or threat of injury to health, safety or the environment.
"ENVIRONMENTAL LAW" has the meaning specified in the definition of the
term "HAZARDOUS MATERIAL".
"EQUITY INTERESTS" means and includes Capital Stock and all warrants,
options or other rights to purchase or otherwise acquire Capital Stock (but
excluding any debt Securities that are convertible into, or exchangeable for,
Capital Stock).
"ERISA" means the Employee Retirement Income Security Act of 1974, and
the rules and regulations promulgated thereunder as from time to time in effect.
"ERISA AFFILIATE" means any trade or business (whether or not
incorporated) under common control with the Parent Company, the Borrower or any
of their Subsidiaries within the meaning of Section 414(b) or (c) of the Code
(and Sections 414(m) and (o) for purposes of provisions relating to Sections
412, 414(t)(2) and 4971 of the Code).
"ERISA EVENT" means: (a) a Reportable Event with respect to a Pension
Plan or Multiemployer Plan which could reasonably be expected to result in a
material liability to the Parent Company, the Borrower or any of their
Subsidiaries; (b) a withdrawal by the Parent Company, the Borrower, any of their
Subsidiaries or any ERISA Affiliate from a Pension Plan subject to Section 4063
of ERISA during a plan year in which it was a substantial employer (as defined
in Section 4001(a)(2) of ERISA) or a cessation of operations which is treated as
such a withdrawal under Section 4062(e) of ERISA where such withdrawal or
cessation could reasonably be expected to result in a material liability to the
Parent Company, the Borrower or any of their Subsidiaries; (c) a complete or
partial withdrawal by the Parent Company, the Borrower, any of their
Subsidiaries or any ERISA Affiliate from a Multiemployer Plan which could
reasonably be expected to result in a material liability to the Parent Company,
the Borrower and/or any of their Subsidiaries or notification that a
Multiemployer Plan is insolvent or in reorganization; (d) the filing of a notice
of intent to terminate other than under a standard termination pursuant to
Section 4041(b) of ERISA where such standard termination or the process of
affecting such standard termination will not result in a material liability to
the Parent Company, the Borrower, any of their Subsidiaries or an ERISA
Affiliate, the treatment of a plan amendment as a termination under Section 4041
or 4041A of ERISA or the commencement of proceedings by the PBGC to terminate a
Pension Plan or Multiemployer Plan; (e) a failure by the Parent Company, the
Borrower, any of their Subsidiaries or any ERISA Affiliate to make required
contributions to a Pension Plan, Multiemployer Plan or other Plan subject to
Section 412 of the Code; (f) an event or condition which could reasonably be
expected to constitute grounds under Section 4042 of ERISA for the termination
of, or the appointment of a trustee to administer, any Pension Plan or
Multiemployer Plan; (g) the imposition of any material liability under Title IV
of ERISA, other than PBGC premiums due but not delinquent under Section 4007 of
ERISA, upon the Parent Company, the Borrower, any of their Subsidiaries or any
ERISA Affiliate; or (h) an application for a funding waiver or an extension of
any amortization period pursuant to Section 412 of the Code with respect to any
Plan.
"EURODOLLAR LENDING OFFICE" has the meaning specified in the definition
of the term "LENDING OFFICE".
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"EURODOLLAR LOAN" means any Loan that bears interest at an interest
rate based on the Eurodollar Rate.
"EURODOLLAR RATE" means, for any Eurodollar Loan and for any Interest
Period relating thereto, the rate per annum (rounded upwards, if necessary, to
the nearest 1/100 of 1%) appearing on Telerate Page 3750 (or any successor page)
as the London interbank offered rate for deposits in Dollars at approximately
11:00 a.m. (London time) two (2) Business Days prior to the first day of such
Interest Period for a term comparable to such Interest Period. If, for any
reason, such rate is not available, the term "EURODOLLAR RATE" shall mean, for
any Eurodollar Loan for any Interest Period relating thereto, the rate per annum
(rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on Reuters
Screen LIBO Page as the London interbank offered rate for deposits in Dollars at
approximately 11:00 a.m. (London time) two (2) Business Days prior to the first
day of such Interest Period for a term comparable to such Interest Period;
PROVIDED that if more than one rate is specified on Reuters Screen LIBO Page,
the applicable rate shall be the arithmetic mean of all such rates (rounded
upwards, if necessary, to the nearest 1/100 of 1%).
"EVENT OF DEFAULT" has the meaning specified in SECTION 10.1.
"EXCESS CASH FLOW APPLICATION DATES" means (a) April 30, 2001, and (b)
April 30 of each calendar year thereafter.
"EXCHANGE NOTE INDENTURE" has the meaning specified in the definition
of the term "EXCHANGE NOTES".
"EXCHANGE NOTES" means, collectively, the unsecured senior exchange
notes of the Parent Company to be issued in exchange for the Bridge Notes
pursuant to the terms of an Indenture containing the terms summarized in ANNEX 2
to the Bridge Commitment Letter (such Indenture, together with the exhibits
thereto, each as amended from time to time, being herein called the "EXCHANGE
NOTE INDENTURE".
"EXISTING BMO CREDIT FACILITIES" means, collectively, all of the credit
facilities, extensions of credit and other financial accommodation from time to
time provided to the Parent Company or to any of its Subsidiaries under or
pursuant to (a) the Credit Agreement, dated as of November 14, 1997, among the
Parent Company, various lenders from time to time party thereto, General
Electric Capital Corporation, as Documentation Agent, and Bank of Montreal,
Chicago Branch, as Agent, as amended from time to time, and (b) all of the
agreements and Instruments from time to time executed and/or delivered pursuant
to or in connection with such Credit Agreement.
"EXISTING INDEBTEDNESS" has the meaning specified in SECTION 5.1.8(c).
"FAIR MARKET VALUE" means, with respect to any Property, the price
which could be negotiated in an arm's length free market transaction, for cash,
between a willing seller and a willing and able buyer, neither of whom is under
undue pressure or compulsion to complete the transaction.
"FCC" means the Federal Communications Commission or any successor
thereto.
"FCC AUTHORIZATIONS" has the meaning specified in SECTION 6.23.
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"FEDERAL FUNDS RATE" means, for any day, the rate set forth in the
weekly statistical release designated as H.15(519), or any successor
publication, published by the Federal Reserve Board (including any such
successor, "H.15(519)") for such day opposite the caption "Federal Funds
(Effective)." If, on any relevant day, the appropriate rate for such previous
day is not yet published in H.15(519), the rate for such day will be the
arithmetic mean of the rates for the last transaction in overnight federal funds
arranged prior to 9:00 a.m. (New York City time) on that day by each of three
leading brokers of federal funds transactions in New York City selected by the
Administrative Agent.
"FEDERAL RESERVE BOARD" means the Board of Governors of the Federal
Reserve System or any successor thereto.
"FEES" means, collectively, (a) the Revolving Commitment Fees, (b) the
Letter of Credit Fees, (c) all other fees payable to the Issuing Lender from
time to time pursuant to SECTION 3.8, and (d) all other fees payable to any of
the Agents or the Lenders from time to time pursuant to Section 2.9.
"FINANCING EVENT" has the meaning specified in the definition of the
term "NET ISSUANCE PROCEEDS".
"FISCAL QUARTER" means any fiscal quarter of any Fiscal Year of the
Parent Company.
"FISCAL YEAR" means the fiscal year of the Parent Company ending on
December 31 of each calendar year.
"FLEET BANK" means Fleet National Bank, a national banking association
organized under the laws of the United States.
"FOREVER ACQUISITION" means the acquisition by the Borrower or by any
of its Subsidiaries of substantially all of the assets of five FM and four AM
radio stations serving the Utica/Rome and Watertown, New York markets, such
acquisition to be made upon the terms and subject to the conditions contained in
the Asset Purchase Agreement, dated as of July 29, 1999, among (a) Forever of
NY, Inc., Forever of NY, LLC and Forever Broadcasting, LLC, as "Sellers", (b)
Regent Broadcasting of Utica/Rome, Inc., Regent Broadcasting of Watertown, Inc.
Regent Licensee of Utica/Rome, Inc. and Regent Licensee of Watertown, Inc., as
"Buyers", and (c) the Parent Company (such Asset Purchase Agreement, as amended,
modified or supplemented from time to time, together with all agreements,
Instruments and other documents executed and/or delivered in connection
therewith, being herein called, collectively, the "FOREVER ACQUISITION
DOCUMENTS").
"FOREVER ACQUISITION DOCUMENTS" has the meaning specified in the
definition of the term "FOREVER ACQUISITION."
"FORM W-8BEN" has the meaning specified in SECTION 4.1(f)(i).
"FORM W-8ECI" has the meaning specified in SECTION 4.1(f)(i).
"GAAP" has the meaning specified in SECTION 1.4.
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"GOVERNING DOCUMENTS" means, with respect to any Person, the
certificate of incorporation or registration (including, if applicable,
certificate of change of name), articles of incorporation or association,
memorandum of association, charter, bylaws, partnership agreement, trust
agreement, joint venture agreement, limited liability company operating or
members agreement, or any one or more similar agreements, Instruments or
documents constituting the organization or formation of such Person. For
purposes of this Agreement, the term "GOVERNING DOCUMENTS", when used with
respect to the Parent Company, the Borrower or any of their Subsidiaries, shall
include the Stockholder Agreement and any other Shareholders' Agreements by
which the Parent Company or the Borrower shall at any time be bound. If any
provision of any of the Loan Documents requires any Governing Document to be
certified by any Governmental Authority, the reference to any such "Governing
Document" shall only be to a document of a type customarily certified by such
Governmental Authority.
"GOVERNMENTAL AUTHORITY" means any nation or government, any state or
other political subdivision thereof, any central bank (or similar monetary or
regulatory authority) thereof, and any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government.
"GUARANTEED OBLIGATIONS" has the meaning specified for that term in the
Subsidiary Guaranty.
"GUARANTIES" means, collectively, (a) the Parent Company Guaranty, and
(b) the Subsidiary Guaranty; and the term "GUARANTY" means either of the
Guaranties.
"GUARANTORS" means, collectively, the Parent Company and the Subsidiary
Guarantors.
"GUARANTOR SUPPLEMENT" means a supplement to the Subsidiary Guaranty,
in or substantially in the form of EXHIBIT J.
"GUARANTY OBLIGATIONS" means, as applied to any Person, any direct or
indirect liability of that Person with respect to any Indebtedness, lease,
dividend, letter of credit or other obligation (the "PRIMARY OBLIGATIONS") of
another Person (the "PRIMARY OBLIGOR"), including any obligation of that Person,
whether or not contingent, without duplication: (a) to purchase, repurchase or
otherwise acquire such primary obligations or any Property constituting direct
or indirect security therefor; (b) to advance or provide funds (i) for the
payment or discharge of any such primary obligation, or (ii) to maintain working
capital or equity capital of the primary obligor or otherwise to maintain the
net worth or solvency or any balance sheet item, level of income or financial
condition of the primary obligor; (c) to purchase Property, Securities or
services primarily for the purpose of assuring the owner of any such primary
obligation of the ability of the primary obligor to make payment of such primary
obligation; or (d) otherwise to assure or hold harmless the holder of any such
primary obligation against loss in respect thereof; in each case, including
arrangements ("NON-RECOURSE GUARANTY ARRANGEMENTS") in which the rights and
remedies of the holder of the primary obligation are limited to repossession or
Sale of certain Property of such Person. The amount of any Guaranty Obligation
shall be deemed equal to the stated or determinable amount of the primary
obligation in respect of which such Guaranty Obligation is made (or, if less,
the stated or determinable amount of such Guaranty Obligation) or, if not stated
or if indeterminable, the maximum reasonably anticipated liability in respect
thereof; PROVIDED, HOWEVER, that the amount of any non-recourse guaranty
arrangement shall not be deemed to exceed the Fair Market Value of the Property
which may be repossessed or sold by the holder of the primary obligation in
question.
27
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"HAZARDOUS MATERIAL" means and includes (a) any asbestos,
urea-formaldehyde, PCBs or dioxins or insulation or other material composed of
or containing asbestos, PCBs or dioxins, (b) crude oil, any fraction thereof,
and any petroleum product, (c) any natural gas, natural gas liquids, liquefied
natural gas or other natural gas product or synthetic gas, and (d) any hazardous
or toxic waste, substance or material or pollutant or contaminant defined as
such in (or for purposes of), or that may result in the imposition of liability
under, any "ENVIRONMENTAL LAW", which means the Comprehensive Environmental
Response, Compensation and Liability Act, any so-called "SUPERFUND" or any other
Applicable Law, as now or at any time hereafter in effect, regulating, relating
to, or imposing liability concerning the environment, the impact of the
environment on human health, or any hazardous or toxic waste, substance or
material or pollutant or contaminant.
"IMPERMISSIBLE QUALIFICATION" means, relative to the opinion or
certification of the Independent Public Accountant as to any financial
statements of the Parent Company, the Borrower or any of their Subsidiaries, any
qualification or exception to such opinion or certification: (a) which is of a
"going concern" or similar nature; (b) which relates to the limited scope of
examination of matters relevant to such financial statement; or (c) which
relates to the treatment or classification of any item in such financial
statement and which, as a condition to its removal, would require an adjustment
to such item the effect of which would be to cause the Principal Companies to be
in default of any of their Obligations under SECTION 9.4.
"INACTIVE SUBSIDIARY" means, in relation to any Subsidiary of the
Parent Company or of the Borrower at any particular time, any such Subsidiary
that conducts no business, holds no assets (other than insubstantial and
immaterial assets), and has no liabilities (other than insubstantial and
immaterial liabilities), in each case, as at such time. For purposes of this
Agreement, any Inactive Subsidiary shall cease to be an "INACTIVE SUBSIDIARY" if
and when such Subsidiary commences the conduct of business, acquires assets
(other than insubstantial and immaterial assets), or incurs liabilities (other
than insubstantial and immaterial liabilities).
"INCREMENTAL COMMITMENT" of any Lender means (a) the amount set forth
opposite such Lender's name under the caption "INCREMENTAL COMMITMENT" on
SCHEDULE II (as such Schedule shall be deemed to have been amended pursuant to
SECTION 2.1(b)(ii)), as such amount may be reduced from time to time pursuant to
the provisions hereof, or (b) as the context may require, the obligation of such
Lender to make Incremental Loans in an aggregate unpaid principal amount not
exceeding such amount.
"INCREMENTAL COMMITMENT FEES" has the meaning specified in SECTION
2.9(a).
"INCREMENTAL COMMITMENT PERCENTAGE" means, as to any Lender, the
percentage equivalent of such Lender's Incremental Commitment divided by the
Aggregate Incremental Commitment; PROVIDED, HOWEVER, that if the Aggregate
Incremental Commitment has been terminated in full, the "INCREMENTAL COMMITMENT
PERCENTAGE" of each Lender shall be determined by dividing such Lender's
Incremental Commitment in effect immediately prior to such termination by the
Aggregate Incremental Commitment in effect immediately prior to such
termination.
"INCREMENTAL COMMITMENT TERMINATION DATE" means 5:00 p.m. (Boston,
Massachusetts time) on the second anniversary of the Effective Date.
"INCREMENTAL FACILITY" has the meaning specified in SECTION 2.1(b)(i).
28
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"INCREMENTAL FACILITY EFFECTIVE DATE" means the date on which the
Incremental Facility shall first become effective hereunder.
"INCREMENTAL LENDER" means any Lender that has an Incremental
Commitment or that has made any Incremental Loans to the Borrower.
"INCREMENTAL LOAN" means any Loan by an Incremental Lender to the
Borrower, which may be a Eurodollar Loan or a Base Rate Loan.
"INCREMENTAL LOAN BALANCE" has the meaning specified in SECTION 2.8(b).
"INCREMENTAL LOAN NOTE" has the meaning specified in SECTION 2.2(b).
"INCREMENTAL UPFRONT FEES" has the meaning specified in SECTION
2,16(a).
"INDEBTEDNESS" of any Person means, without duplication: (a) all
indebtedness for borrowed money; (b) all obligations issued, undertaken or
assumed as the deferred purchase price of Property or services (other than (i)
trade payables entered into in the ordinary course of business pursuant to
ordinary terms, and (ii) ordinary course purchase price adjustments); (c) all
reimbursement or payment obligations with respect to letters of credit or
reimbursement or other payment obligations with respect to bankers' acceptances,
surety bonds and other similar documents; (d) all obligations evidenced by
promissory notes, bonds, debentures or other similar Instruments, including
obligations so evidenced incurred in connection with the acquisition of Property
or businesses; (e) all indebtedness created or arising under any conditional
sale or other title retention agreements or Sales of accounts receivable, in any
such case, with respect to Property acquired by such Person (even though the
rights and remedies of the seller or lender under such agreements in the event
of default are limited to repossession or Sale of such Property); (f) all
Capital Lease Obligations; (g) all net obligations with respect to Interest Rate
Protection Agreements; (h) all indebtedness referred to in CLAUSE (a) through
CLAUSE (g) secured by (or for which the holder of such Indebtedness has an
existing right, contingent or otherwise, to be secured by) any Lien upon or in
Property (including accounts and contracts rights) owned by such Person, even
though such Person has not assumed or become liable for the payment of such
Indebtedness (in which event the amount of such indebtedness shall not be deemed
to exceed the Fair Market Value of such Property); and (i) all Guaranty
Obligations in respect of indebtedness and obligations of the kinds referred to
in CLAUSE (a) through CLAUSE (h) above.
"INDEBTEDNESS TO BE REFINANCED" has the meaning specified in SECTION
6.10(c).
"INDEMNIFIED LIABILITIES" has the meaning specified in SECTION 12.5.
"INDEMNIFIED PERSON" has the meaning specified in SECTION 12.5.
"INDEPENDENT PUBLIC ACCOUNTANT" means any one of the so-called
"big-five" firms of certified public accountants or any other firm of certified
public accountants of recognized standing selected by the Principal Companies.
"INSOLVENCY PROCEEDING" means (a) any case, action or proceeding before
any court or other Governmental Authority relating to bankruptcy,
reorganization, insolvency, liquidation, receivership, dissolution, winding-up
or relief of debtors, or (b) any general assignment for the benefit of
creditors, composition, marshalling of assets for creditors, or other similar
29
-22-
arrangements in respect of its creditors, generally; in each case, undertaken
under U.S. Federal, State or foreign law, including the Bankruptcy Code.
"INSTRUMENT" means any contract, agreement, indenture, mortgage or
other document or writing (whether a formal agreement, letter or otherwise)
under which any obligation is evidenced, assumed or undertaken, or any right to
any Lien is granted or perfected.
"INTEREST PAYMENT DATE" means (a) with respect to each Base Rate Loan,
the last day of each calendar quarter and also the Maturity Date, and (b) with
respect to each Eurodollar Loan, the last day of each Interest Period applicable
to such Eurodollar Loan and also the date on which such Eurodollar Loan shall be
repaid or prepaid; PROVIDED, HOWEVER, that, if any Interest Period for any
Eurodollar Loan exceeds three (3) months, then also the date which falls three
(3) months after the beginning of such Interest Period, and, if applicable, the
last day of each three-month interval thereafter, shall also be an "INTEREST
PAYMENT DATE".
"INTEREST PERIOD" means, in relation to any Eurodollar Loan, the period
commencing on the applicable Borrowing Date or any Conversion Date or
Continuation Date with respect thereto and ending on the date one, two, three or
six months thereafter, as selected or deemed to be selected by the Borrower in
its Notice of Borrowing or Notice of Conversion/Continuation; PROVIDED, HOWEVER,
that:
(a) if any Interest Period would otherwise end on a day which
is not a Business Day, then such Interest Period shall be extended to the next
succeeding Business Day unless the result of such extension would be to carry
such Interest Period into another calendar month, in which event such Interest
Period shall end on the immediately preceding Business Day;
(b) any Interest Period that begins on the last Business Day
of a calendar month (or on a day for which there is no numerically corresponding
day in the calendar month at the end of such Interest Period) shall end on the
last Business Day of the calendar month which is one, two, three, six months, as
the case may be, after the calendar month in which such Interest Period began;
and
(c) no Interest Period for any Loan shall extend beyond the
Maturity Date.
"INTEREST RATE PROTECTION AGREEMENT" means any interest rate swap, cap,
collar or similar arrangement entered into to hedge interest rate risk (and not
for speculative purposes).
"INVESTMENT" means, in relation to any Person:
(a) any loan, advance or other extension of credit made by
such Person to any other Person;
(b) the creation of any Guaranty Obligation of such Person to
support any of the Indebtedness of any other Person; or
(c) any capital contribution by such Person to, or purchase by
such Person of any Equity Interests or other Securities of, any other Person, or
any other investment evidencing an ownership or other similar interest of such
Person in any other Person.
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"IPO" means an initial public offering of the Parent Company's Common
Stock which generates, for the account of the Parent Company, at least
$80,000,000 of gross cash proceeds.
"IPO DOCUMENTS" means all agreements, Instruments and other documents
executed and/or delivered in connection with or otherwise related to the IPO.
"ISSUING LENDER" means Fleet National Bank, in its capacity as issuer
of one or more Letters of Credit pursuant to this Agreement.
"JS GROUP" means, collectively, the following Persons and each of their
Affiliates (other than the Parent Company and its Subsidiaries) taken as a
whole: (a) Terry S. Jacobs; (b) William L. Stakelin; and (c) each of the other
Persons who is at the time a party to or otherwise bound by the Stockholder
Agreement as a "Stockholder" thereunder.
"KZAP ACQUISITION" means the acquisition by the Borrower or by any of
its Subsidiaries of radio station KZAP(FM) located in Chico, California, such
acquisition to be made substantially in accordance with the terms and subject to
the conditions contained in the draft dated December 19, 1999 of the Agreement
of Merger, among KZAP, Inc., Robb Cheal, Regent Broadcasting West Coast, Inc.,
and the Parent Company (such Agreement of Merger, as amended, modified or
supplemented from time to time, together with all agreements, Instruments and
other documents executed and/or delivered in connection therewith, being herein
called, collectively, the "KZAP ACQUISITION DOCUMENTS").
"KZAP ACQUISITION DOCUMENTS" has the meaning specified in the
definition of the term "KZAP ACQUISITION."
"LEAD ARRANGER" means Fleet Robertson Stephens Inc., in its capacity as
Lead Arranger for the Agents, the Issuing Lender and the Lenders under this
Agreement.
"LENDER AFFILIATE" means any Person engaged primarily in the business
of commercial banking that is an Affiliate of any Lender.
"LENDERS" has the meaning specified in the PREAMBLE hereto.
"LENDING OFFICE" means, with respect to any Lender, the office or
offices of such Lender specified as ITS "LENDING OFFICE", "DOMESTIC LENDING
OFFICE" or "EURODOLLAR LENDING OFFICE", as the case may be, on SCHEDULE I, or
such other office or offices of such Lender as such Lender may from time to time
specify in a written notice to the Borrower and the Administrative Agent.
"LETTER OF CREDIT" means any letter of credit issued or to be issued by
the Issuing Lender pursuant to ARTICLE III.
"LETTER OF CREDIT AMENDMENT APPLICATION" means any application form for
amendment of outstanding standby or commercial documentary letters of credit as
shall from time to time be specified by the Issuing Lender.
"LETTER OF CREDIT APPLICATION" means any application form for issuances
of standby or commercial documentary letters of credit as shall from time to
time be specified by the Issuing Lender.
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"LETTER OF CREDIT BORROWING" means any extension of credit (other than
any Revolving Loan) resulting from a drawing under any Letter of Credit which
shall not have been reimbursed by the Borrower on the Disbursement Date when
made.
"LETTER OF CREDIT COMMITMENT" means the commitment of the Issuing
Lender hereunder to issue Letters of Credit. The Letter of Credit Commitment
shall be in the initial amount of $25,000,000, and such amount shall be subject
to reduction from time to time pursuant to and in accordance with this
Agreement. The Letter of Credit Obligations shall not exceed in aggregate amount
at any time the LESSER of (a) the Aggregate Revolving Commitment in effect at
such time, or (b) the amount of the Letter of Credit Commitment in effect at
such time.
"LETTER OF CREDIT FEES" has the meaning specified in SECTION 3.8.
"LETTER OF CREDIT OBLIGATIONS" means, at any time of determination, the
SUM of (a) the aggregate undrawn amount of all Letters of Credit then
outstanding, PLUS (b) the aggregate amount of all Letter of Credit Borrowings
then outstanding.
"LETTER OF CREDIT RELATED DOCUMENTS" means, collectively, the Letters
of Credit, the Letter of Credit Applications, the Letter of Credit Amendment
Applications and any other Instruments or documents relating to any Letters of
Credit, including the Issuing Lender's standard form documents for letter of
credit issuances.
"LEVERAGE RATIO CERTIFICATE" means a certificate duly executed by the
chief financial officer of each Principal Company, in or substantially in the
form of EXHIBIT K (with such changes thereto as may be agreed upon from time to
time by the Administrative Agent and the Principal Companies), and including
therein, among other things, calculations supporting the information contained
in such certificate relating to the Consolidated Leverage Ratio.
"LIEN" means any interest in any real or personal Property or fixture
which secures payment or performance of any obligation or liability, and shall
include any mortgage, lien (statutory, judgment or otherwise), pledge,
encumbrance, charge or other security interest of any kind, whether arising
under a Security Instrument or as a matter of law, judicial process or
otherwise, including the retained security title of a conditional vendor or
lessor.
"LINE OF BUSINESS" means, collectively, the businesses conducted by the
Principal Companies or by any of their Subsidiaries on and as of the Effective
Date, and shall in any event include any business involving the ownership,
management or operation of Radio Stations in the United States, together with
any business related thereto.
"LOAN" means any extension of credit by any Lender to the Borrower
pursuant to ARTICLE II and shall include any Revolving Loan or Incremental Loan.
"LOAN DOCUMENTS" means, collectively, this Agreement, the Notes, the
Subsidiary Guaranty, the Collateral Documents and all other agreements,
Instruments, certificates or other documents (a) evidencing or securing all or
any part of any of the Obligations or other liabilities of the Borrower or the
Parent Company or of any of their Subsidiaries under this Agreement, the Notes,
the Collateral Documents or any of the other Loan Documents, or (b) otherwise
executed and/or delivered by the Borrower or the Parent Company or by any of
their Subsidiaries pursuant to or in connection with this Agreement, the Notes,
any of the Collateral Documents or any of the other Loan Documents.
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"MAIN STATION LICENSES" has the meaning specified in SECTION 6.23.
"MANAGEMENT AGREEMENTS" has the meaning specified in SECTION 5.1.5.
"MARKET" means any U.S. Metropolitan Statistical Area.
"MARGIN STOCK" means "margin stock" as such term is defined in
Regulation T, U or X of the Federal Reserve Board.
"MATERIAL CONTRACT" means any contract or other arrangement to which
the Parent Company, the Borrower or any of their Subsidiaries is a party (other
than any of the Loan Documents) for which breach, nonperformance, cancellation
or failure to renew has had or could reasonably be expected to have a Materially
Adverse Effect.
"MATERIAL EVENT OF DEFAULT" means any of the following events occurring
or existing at any time on or after the Effective Date: (a) any Events of
Default of the kind described in any of SECTIONS 10.1.1, 10.1.2, 10.1.5, 10.1.10
and 10.1.13 shall occur and shall be continuing for more than seven (7) days; or
(b) any Events of Default of the kind described in any of SECTIONS 10.1.6,
10.1.7, 10.1.9, 10.1.11 and 10.1.12 shall at any time occur, arise or (as the
case may be) develop.
"MATERIALLY ADVERSE EFFECT" means, in relation to any event, occurrence
or development of whatsoever nature (including any adverse determination in any
litigation, arbitration or governmental investigation or proceeding):
(a) any materially adverse effect on the business, Property,
results of operations or condition, financial or otherwise, of the Parent
Company, the Borrower and their Subsidiaries, taken as a whole;
(b) any materially adverse effect on the ability of the Parent
Company, the Borrower or any of their Subsidiaries to perform any of its payment
or other material Obligations under any of the Loan Documents to which it is a
party; or
(c) any material impairment of the validity or enforceability
of any of the Loan Documents or any material impairment of any of the material
rights or remedies available to any of the Agents, the Issuing Lender or the
Lenders under any of the Loan Documents.
"MATURITY DATE" means December 31, 2006.
"MAXIMUM INCREMENTAL AMOUNT" has the meaning specified in SECTION
2.1(b), as such amount may be reduced from time to time pursuant to this
Agreement.
"MEASUREMENT PERIOD" means any period of four consecutive Fiscal
Quarters of the Parent Company.
"MEDIA ASSET" means any radio station or related asset that is located
in a Market.
"MOODY'S" means Moody's Investors Service, Inc., and its successors.
"MULTIEMPLOYER PLAN" means a "multiemployer plan" (within the meaning
of Section 4001(a)(3) of ERISA) and to which the Parent Company or any
Subsidiary of the Parent Company or any ERISA Affiliate makes, is making, or is
obligated to make contributions or,
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during the preceding three (3) calendar years, has made, or has been obligated
to make, contributions.
"NET CASH PROCEEDS" means, in connection with any Asset Sale or
Recovery Event, the cash proceeds (including any cash payments received by way
of deferred payment pursuant to a promissory note, receivable or otherwise, but
only as and when received in cash) of such Asset Sale or Recovery Event, net of
(a) reasonable transaction costs (including any underwriting, brokerage or other
selling commissions and reasonable legal, advisory and other fees and expenses,
including title and recording expenses, associated therewith, in each case,
actually incurred and satisfactorily documented), (b) required debt payments
(other than pursuant hereto), (c) taxes reasonably estimated to be payable as a
result of such Asset Sale or Recovery Event, and (d) any portion of such cash
proceeds which the Borrower determines in good faith should be reserved for
post-closing adjustments or liabilities (to the extent the Borrower delivers to
the Administrative Agent a certificate signed by its chief financial officer as
to such determination), it being understood and agreed that on the day all of
such post-closing adjustments and liabilities have been determined, (i) the
amount (if any) by which the reserved amount of the cash proceeds of such Asset
Sale or Recovery Event exceeds the actual post-closing adjustments or
liabilities payable by the Parent Company, the Borrower or any of their
Subsidiaries shall constitute Net Cash Proceeds on such date, and (ii) the
amount (if any) by which the actual post-closing adjustments or other
liabilities payable by the Parent Company, the Borrower or any of their
Subsidiaries exceeds the reserved amount of the cash proceeds of such Asset Sale
or Recovery Event on such date shall be credited against any subsequent Net Cash
Proceeds that the Parent Company, the Borrower or any of their Subsidiaries are
required to apply to prepay the Loans pursuant to SECTION 2.7(b).
"NET ISSUANCE PROCEEDS" means, with respect to the issuance or Sale by
the Parent Company or the Borrower or by any of their Subsidiaries, in each
case, for the account of the Parent Company or the Borrower or of any of their
Subsidiaries, of any Permitted Equity Interests of the Parent Company (otherwise
than in connection with employee benefit plans) or of any Permitted Subordinated
Debt of the Parent Company or the Borrower to any Person or Persons other than
the Borrower or any of its Subsidiaries (each such issuance or sale of any
Permitted Equity Interests or Permitted Subordinated Debt being herein called a
"FINANCING EVENT"): (a) the gross cash proceeds received in connection with such
issuance or Sale, as and when received; MINUS (b) all of the reasonable
transaction costs (including legal, investment banking and other fees and
disbursements) payable or incurred in connection therewith in favor of any
Person not an Affiliate of the Parent Company or of the Borrower and the
reasonable out-of-pocket disbursements payable in favor of any such Person.
"NEW WAVE ACQUISITION" means the acquisition by the Borrower or by any
of its Subsidiaries of substantially all of the assets of two FM and one AM
radio stations in El Paso, Texas, such acquisition to be made upon the terms and
subject to the conditions contained in the Asset Purchase Agreement, dated as of
September 13, 1999, among (a) New Wave Broadcasting, L.P., as "Seller", and (b)
Regent Broadcasting of El Paso, Inc. and Regent Licensee of El Paso, Inc., as
"Buyers" (such Asset Purchase Agreement, as amended, modified or supplemented
from time to time, together with all agreements, Instruments and other documents
executed and/or delivered in connection therewith, being herein called,
collectively, the "NEW WAVE ACQUISITION DOCUMENTS").
"NEW WAVE ACQUISITION DOCUMENTS" has the meaning specified in the
definition of the term "NEW WAVE ACQUISITION".
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"NOTES" means, collectively, the Revolving Credit Notes and the
Incremental Loan Notes.
"NOTICE OF BORROWING" means a written notice given by the Borrower to
the Administrative Agent pursuant to SECTION 2.3(a), in or substantially in the
form of EXHIBIT C.
"NOTICE OF CONVERSION/CONTINUATION" means a written notice given by the
Borrower to the Administrative Agent pursuant to SECTION 2.4(b), in or
substantially in the form of EXHIBIT D.
"OBLIGATIONS" means, collectively, all Loans, Letter of Credit
Borrowings, reimbursement obligations under Letters of Credit and other
Indebtedness, advances, debts, liabilities, obligations, interest, fees, costs
and expenses (including, without limitation, Attorney Costs), covenants and
duties, of any kind or nature, owing by the Parent Company or the Borrower or by
any other Credit Party to any Lender (or any Lender Affiliate (or any Affiliate
of such Lender engaged in capital market transactions generally)), any Agent or
the Issuing Lender pursuant to or in connection with (a) this Agreement, or (b)
any of the other Loan Documents, in each case, whether direct or indirect,
absolute or contingent, due or to become due, now existing or at any time
hereafter arising, and howsoever acquired (including those acquired by
assignment) created or arising, and whether or not for the payment of money or
evidenced by any note, guarantee or other Instrument.
"OECD" means the Organization for Economic Cooperation and Development.
"ORIGINATING LENDER" has the meaning specified in SECTION 12.7(d).
"OTHER SENIOR DEBT" means, collectively, Indebtedness of the Parent
Company or of any of its Subsidiaries under or in respect of the Bridge Notes,
the Exchange Notes or any of the other Bridge Financing Documents.
"OTHER TAXES" has the meaning specified in SECTION 4.1(b).
"PARENT COMPANY" has the meaning specified in the PREAMBLE hereto.
"PARENT COMPANY FINANCINGS" means, collectively, (a) the IPO, and (b)
the Bridge Financing.
"PARENT COMPANY GUARANTY" means the guaranty of the Parent Company set
forth in Article VII.
"PARTICIPANT" has the meaning specified in SECTION 12.7(d).
"PENDING ACQUISITION DOCUMENTS" means, collectively, the Forever
Acquisition Documents, the New Wave Acquisition Documents, and the KZAP
Acquisition Documents.
"PENDING ACQUISITIONS" means, collectively, (a) the Forever
Acquisition, (b) the New Wave Acquisition, and (c) the KZAP Acquisition.
"PBGC" means the Pension Benefit Guaranty Corporation or any entity
succeeding to any of its principal functions under ERISA.
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"PENSION PLAN" means a pension plan (as defined in Section 3(2) of
ERISA) subject to Title IV of ERISA which the Parent Company or any Subsidiary
of the Parent Company or any ERISA Affiliate sponsors or maintains, or to which
it makes, is making, or is obligated to make contributions, or in the case of a
multiple employer plan (as described in Section 4064(a) of ERISA) has made
contributions at any time during the immediately preceding five (5) plan years,
but excluding any Multiemployer Plan.
"PERMITTED ACQUISITION" means any Acquisition by the Borrower or by any
of its Subsidiaries of any Media Assets; PROVIDED, HOWEVER, that, with respect
to each Acquisition of Media Assets, each of the applicable Permitted
Acquisition Conditions with respect to such Acquisition shall have been
satisfied.
"PERMITTED ACQUISITION CONDITIONS" means, collectively, in relation to
any particular Acquisition, each of the following conditions:
(a) The Principal Companies shall have furnished to the
Administrative Agent (i) as soon as practicable following the execution of any
Acquisition Documentation and, in any event, not less than fourteen (14) days
prior to completion of such Acquisition, (A) an Acquisition Certificate
containing Acquisition Pro Formas showing the proposed Acquisition and each
other Acquisition for which a definitive agreement has been executed at the time
of delivery of such Acquisition Certificate, (B) in the case of any Acquisition
in the Amount of $25,000,000 or more, a due diligence report for such
Acquisition, and up-dated financial projections of the kind described in SECTION
6.8(b) revised to reflect on a Pro Forma Basis the proposed Acquisition, and
(ii) on the closing date for such Acquisition (or as soon prior to such date as
practicable), an Acquisition Certificate containing Acquisition Pro Formas
showing solely the proposed Acquisition. The Principal Companies shall also have
furnished to the Administrative Agent copies of the Acquisition Documentation
for such Acquisition and all material related documentation as soon as
practicable prior to the consummation of such Acquisition.
(b) The Principal Companies, a Subsidiary of the Principal
Companies and/or the entity to be acquired, as appropriate, shall have executed
and delivered and furnished to the Administrative Agent, concurrently with the
consummation of such Acquisition, such Instruments and other documents as shall
be required pursuant to SECTION 8.12.
(c) After giving effect to such Acquisition, (i) the
Consolidated Leverage Ratio as of the most recent Covenant Determination Date,
as determined on a Pro Forma Basis in accordance with the Acquisition Pro Formas
for such Acquisition, shall not exceed the maximum Consolidated Leverage Ratio
permitted as of such Covenant Determination Date by SECTION 9.4(a), and (ii) the
Principal Companies shall not be in violation of any other financial covenant
contained in SECTION 9.4 as of such covenant Determination Date, in each case as
determined on a Pro Forma Basis based upon the Acquisition Pro Formas contained
in the Acquisition Certificate in which the Principal Companies shall have
certified as to satisfaction of the conditions set forth in this PARAGRAPH (c).
(d) Both immediately before and immediately after giving
effect to such Acquisition, no Default shall be continuing or shall result
therefrom.
(e) If, after giving effect to such Acquisition, the
Consolidated Leverage Ratio as of the then most recent Covenant Determination
Date, as determined on a Pro Forma Basis in accordance with the Acquisition Pro
Formas for such Acquisition, shall be equal to or
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greater than 5.50:1.00, then each of the following conditions shall also
constitute Permitted Acquisition Conditions applicable to such Acquisition:
(i) the portion of Consolidated Broadcast Cash Flow
attributable to the Media Assets to be acquired in connection with such
Acquisition, as determined on a Pro Forma Basis as of the then most
recent Covenant Determination Date after giving effect to such
Acquisition, shall not be less than ($1,000,000);
(ii) the Consolidated Broadcast Cash Flow of the Parent
Company and its Subsidiaries as of the then most recent Covenant
Determination Date derived from one Market, determined on a Pro Forma
Basis after giving effect to such Acquisition, shall not exceed thirty
percent (30%) of all of the Consolidated Broadcast Cash Flow of the
Parent Company and its Subsidiaries as of the then most recent Covenant
Determination Date derived from all Markets, determined on a Pro Forma
Basis after giving effect to such Acquisition;
(iii) the Amount of such Acquisition shall not exceed
$25,000,000; and
(iv) immediately after giving effect to such Acquisition and
all of the other transactions related thereto, the Aggregate Revolving
Commitment then in effect shall exceed the Total Revolver Utilization
then outstanding by at least $5,000,000.
(f) If the Amount of such Acquisition shall exceed
$50,000,000, then the Principal Companies shall have obtained the prior written
approval of the Required Lenders for such Acquisition.
"PERMITTED ACQUISITION DEBT" means, collectively, any Indebtedness of
the Parent Company or of the Borrower incurred, created, issued or assumed as
the deferred purchase price of any Property (including Equity Interests)
acquired by the Borrower or any of its or the Parent Company's Subsidiaries in
connection with any Acquisition permitted by SECTION 9.6; PROVIDED, HOWEVER,
that: (a) the aggregate principal amount of all of such Indebtedness outstanding
shall not exceed $10,000,000 at any time; (b) none of the Subsidiaries of the
Parent Company (other than the Borrower) or of the Borrower shall at any time
have any Guaranty Obligations under or with respect to any such Indebtedness;
(c) no part of such Indebtedness shall be secured by any security interests in
or Liens on any Property (including Equity Interests) of the Parent Company, the
Borrower or any of their Subsidiaries other than the Property acquired in
connection with such Acquisition, and the rights and remedies of the holders of
such Indebtedness shall be limited to repossession or Sale of the Property so
acquired and shall otherwise be without recourse to the Parent Company, the
Borrower or any of their Subsidiaries; (d) the unpaid principal of any such
Indebtedness shall be subject to mandatory repayment, prepayment or redemption
on terms of amortization that are not more accelerated than straight-line
amortization over a period of five (5) years commencing on the date of the
incurrence of such Indebtedness; (e) no part of such Indebtedness shall bear
interest paid or required to be paid in cash at an annual rate in excess of nine
percent (9%); and (f) both before and after giving effect on a Pro Forma Basis
to the incurrence of any such Indebtedness: (i) the Principal Companies shall
not be in violation of any of the financial covenants contained in SECTION 9.4
as of the most recent Covenant Determination Date; and (ii) no Default shall be
continuing or shall result therefrom.
"PERMITTED ACQUISITION DOCUMENTS" means, collectively, in relation to
any Permitted Acquisition, all of the Acquisition Documentation for such
Permitted Acquisition.
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"PERMITTED DISPOSITION" means:
(a) any Sale by the Parent Company or the Borrower or by any
of their Subsidiaries of any of its inventory or other Property in the ordinary
course of its business;
(b) any Sale by the Parent Company or the Borrower or by any
of their Subsidiaries in the ordinary course of its business of its equipment or
other Property that is obsolete or no longer useful in or necessary to its
business;
(c) any Sale by the Parent Company or the Borrower or by any
of their Subsidiaries in the ordinary course of its business, and in a manner
consistent with its customary and usual cash management and other similar
investment practices, of its Permitted Investments;
(d) any Sale by any Subsidiary of the Parent Company or of the
Borrower of all or any part of its Property to the Borrower or to any
Wholly-Owned Subsidiary of the Borrower;
(e) any Sale by the Parent Company or the Borrower or by any
of their Subsidiaries, in the ordinary course of its business and in a manner
consistent with its usual and customary business practices, of Property to the
Borrower or to any of its Subsidiaries; and
(f) the creation or incurrence by the Parent Company or the
Borrower or by any of their Subsidiaries of any Liens expressly permitted by
SECTION 9.3.
"PERMITTED EQUITY INTERESTS" means any Equity Interests of any Person
on account of or with respect to which such Person has no obligation to (a)
declare or pay any dividends at any time on or prior to January 31, 2005, (b)
make (except upon liquidation of such Person) any redemption, repurchase,
retirement or acquisition, whether through a Subsidiary of such Person or
otherwise, at any time on or prior to December 31, 2007 (other than DE MINIMIS
cash payments in connection with conversion of Indebtedness of such Person into
Equity Interests of such Person), (c) make (except upon liquidation of such
Person) any return of capital to the holder thereof at any time on or prior to
December 31, 2007, or (d) make (except upon liquidation of such Person) any
other distributions of any kind at any time on or prior to December 31, 2007,
EXCEPT, in the case of each of CLAUSES (a), (b), (c) and (d), in Permitted
Equity Interests of such Person.
"PERMITTED INDEBTEDNESS" means any of the following Indebtedness:
(a) Indebtedness of the Parent Company, the Borrower or any of
their Subsidiaries in respect of taxes, assessments, levies or other
governmental charges, and Indebtedness of any such Person in respect of accounts
payable or other Indebtedness to trade creditors incurred in the ordinary course
of business or in respect of claims against it for labor, materials or supplies;
(b) Indebtedness of the Parent Company, the Borrower or any of
their Subsidiaries secured by Liens of carriers, warehousemen, mechanics,
landlords, materialmen, laborers, suppliers and the like that constitute
Permitted Liens under CLAUSE (a) or (d) of the definition thereof;
(c) Indebtedness of the Parent Company, the Borrower or any of
their Subsidiaries in respect of judgments or awards which have been in force
for less than the
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applicable appeal period so long as (i) (in each case) such Person shall at the
time in good faith be prosecuting an appeal or proceedings for review and
execution thereof shall have been effectively stayed pending such appeal or
review, and (ii) the aggregate principal amount of all such Indebtedness of the
Parent Company, the Borrower or any of their Subsidiaries outstanding at any
time (determined on a consolidated basis in accordance with GAAP) shall not
exceed $2,000,000;
(d) Indebtedness under or in respect of Guaranty Obligations
of the Parent Company, the Borrower or any of their Subsidiaries in respect of
letters of credit or bankers' acceptances or surety or other bonds issued in the
ordinary course of business of such Person in connection with Liens that
constitute Permitted Liens under CLAUSE (b) of the definition thereof;
(e) Indebtedness of the Parent Company, the Borrower or any of
their Subsidiaries that (i) is existing on the Closing Date, and (ii) is
specifically identified as Existing Indebtedness in SECTION 6.10(a) of the
DISCLOSURE SCHEDULE; and
(f) any Indebtedness of the Parent Company or the Borrower or
of any of their Subsidiaries extending, renewing, refinancing, replacing or
refunding any Indebtedness of the kind described in CLAUSE (e) of this
definition; PROVIDED, HOWEVER, that the initial principal amount of any such
Indebtedness described in this CLAUSE (f) shall not exceed the principal amount
of, PLUS accrued and unpaid interest on, the Indebtedness so extended, renewed,
refinanced, replaced or refunded (PLUS the amount of reasonable fees and
expenses incurred in connection therewith).
"PERMITTED INVESTMENTS" means any of the following Investments by the
Parent Company or the Borrower or by any of their Subsidiaries:
(a) Investments that (i) are owned or held by the Parent
Company or the Borrower or by any of their Subsidiaries on the Closing Date, and
(ii) are identified, unless immaterial and insubstantial, in SECTION 6.10(d) to
the DISCLOSURE SCHEDULE;
(b) Investments in cash or in Cash Equivalents;
(c) Investments in the form of accounts receivable or in the
form of notes receivable arising in the ordinary course of business;
(d) Investments in the form of advances or prepayments to
suppliers or other vendors made in the ordinary course of business and in all
material respects consistent with the Parent Company's or the Borrower's usual
and customary business practices;
(e) Investments in the form of advances to directors,
managers, officers or employees in the ordinary course of business and in all
material respects consistent with the Parent Company's or the Borrower's usual
and customary business practices for travel expenses, entertainment expenses,
relocation expenses, drawing accounts or other similar business-related
expenses;
(f) subject always to the limitations set forth in SECTION
9.6(f), Investments by the Parent Company, the Borrower or any of their
Subsidiaries if and to the extent that all or substantially all of the
consideration payable therefor is in the form of Permitted Equity Interests of
the Parent Company;
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(g) Investments by the Borrower or any of its Subsidiaries
made in the ordinary course of its business in Capital Assets (subject always to
the limitations set forth in SECTIONS 9.2 and 9.3); and
(h) other Investments (other than Acquisitions) by the
Borrower or by any of its Subsidiaries made in any Person or Persons (other than
the Borrower or any of its Affiliates or Subsidiaries) from time to time after
the date hereof and not otherwise described in any of CLAUSES (a) through (g) of
this definition; PROVIDED, HOWEVER, that the aggregate amount of all of such
Investments so made from time to time during the period from the Effective Date
to the Maturity Date shall not exceed $2,000,000, such aggregate amount to be
determined on a consolidated basis (exclusive of any consideration in the form
of Permitted Equity Interests of the Parent Company) and on the basis of the
original cost of each of such Investments and determined before giving any
effect to any write-offs or write-downs of any of such Investments or to any
decreases or losses (whether partial or complete) in the Fair Market Value
thereof.
"PERMITTED LIENS" means any of the following Liens:
(a) Liens to secure taxes, assessments, levies or other
governmental charges imposed upon the Parent Company, the Borrower or any of
their Subsidiaries, and Liens to secure claims against the Parent Company, the
Borrower or any of their Subsidiaries for labor, materials or supplies;
(b) deposits or pledges made by the Parent Company, the
Borrower or any of their Subsidiaries in the ordinary course of its business (i)
in connection with, or to secure payment or performance of, (A) workers'
compensation, unemployment insurance or other forms of governmental insurance or
benefits, or (B) liability to insurance carriers under insurance or
self-insurance arrangements, (ii) to secure the performance of bids, tenders,
statutory obligations, leases, contracts (other than contracts relating to
borrowed money) or other obligations of like nature, or (iii) to secure surety,
appeal, indemnity or performance bonds, in each case, in the ordinary course of
the business of such Person;
(c) Liens in respect of judgments or awards against the Parent
Company, the Borrower or any of their Subsidiaries to the extent that such
judgments or awards constitute Permitted Indebtedness under CLAUSE (c) of the
definition thereof;
(d) Liens of carriers, warehousemen, mechanics, landlords,
materialmen, laborers, suppliers and the like incurred in the ordinary course of
the business of the Parent Company, the Borrower or any of their Subsidiaries,
in each case, for sums not overdue or being contested in good faith by
appropriate proceedings, and for which appropriate reserves with respect thereto
have been established and maintained on the consolidated books of the Parent
Company and its Subsidiaries in accordance with GAAP to the extent required by
GAAP;
(e) easements, rights-of-way, zoning and other similar
restrictions and covenants 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 or interfere with the ordinary conduct of the
business of the Parent Company, the Borrower or any of their Subsidiaries;
(f) Liens that are in existence on the Closing Date and are
disclosed in SECTION 6.10(b) to the DISCLOSURE SCHEDULE;
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(g) extensions, renewals and replacements of Liens described
in CLAUSE (f) of this definition or of Liens permitted by CLAUSE (c) or by
CLAUSE (d) of SECTION 9.3; PROVIDED, HOWEVER, that (i) each such extension,
renewal or replacement Lien is limited to the Property covered by the Lien so
extended, renewed or replaced, and (ii) does not secure any Indebtedness other
than (A) Indebtedness that constitutes Permitted Indebtedness under CLAUSE (e)
of the definition thereof, or (as the case may be) (B) Indebtedness permitted by
CLAUSE (h) or CLAUSE (k) of SECTION 9.2; and
(h) Liens arising by virtue of statutory, common law or
contractual provisions relating to bankers' Liens, rights of set-off and similar
remedies as to deposit or similar accounts.
"PERMITTED SUBORDINATED DEBT" means, collectively, any
Indebtedness of the Parent Company or of the Borrower; PROVIDED, HOWEVER, that:
(a) none of the Subsidiaries of the Parent Company (other than the Borrower) or
of the Borrower shall at any time have any Guaranty Obligations under or with
respect to any of such Indebtedness; (b) no part of such Indebtedness shall be
secured by any security interests in or Liens on any Property (including any
Equity Interests) of the Parent Company, the Borrower or any of their
Subsidiaries; (c) no portion of the principal of such Indebtedness shall mature
or shall be mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, or be redeemable at the option of the holder thereof, in whole or in
part, on or prior to December 31, 2007; (d) no part of such Indebtedness shall
bear interest paid or required to be paid in cash at an annual rate in excess of
twelve percent (12%); (e) all of such Indebtedness shall be subordinated, and
made junior in right of payment, to all of the Obligations of the Parent
Company, the Borrower and the other Credit Parties under this Agreement, the
Notes and the other Loan Documents on terms and conditions reasonably
satisfactory to the Administrative Agent, as evidenced by its prior written
approval thereof; (f) all of the other terms and conditions of such Indebtedness
shall be reasonably satisfactory to the Administrative Agent, as evidenced by
its prior written approval thereof; (g) all of the Bridge Notes and Exchange
Notes shall have been paid in full; and (h) both before and after giving effect
on a Pro Forma Basis to the incurrence of any such Indebtedness: (i) the
Principal Companies shall not be in violation of any of the financial covenants
contained in SECTION 9.4 as of the then most recent Covenant Determination Date;
and (ii) no Default shall be continuing or shall result therefrom.
"PERSON" means any natural person, corporation, firm, limited liability
company, partnership, business trust, association, government, Governmental
Authority, or any other entity, whether acting in an individual, fiduciary or
other capacity.
"PLAN" means an employee benefit plan (as defined in Section 3(3) of
ERISA) which the Parent Company or any Subsidiary of the Parent Company or any
ERISA Affiliate sponsors or maintains or to which the Parent Company or any of
its Subsidiaries or any ERISA Affiliate makes, is making, or is obligated to
make contributions and includes any Pension Plan or Multiemployer Plan.
"PLEDGE AGREEMENT" means the Pledge Agreement, in or substantially in
the form of Exhibit E.
"PLEDGED COLLATERAL" has the meaning specified in the Pledge Agreement
for the defined term "COLLATERAL".
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"PRINCIPAL COMPANIES" means, collectively, the Parent Company and the
Borrower.
"PRINCIPAL PAYMENT DATES" means, collectively, the dates specified by
SECTION 2.8(b) for the repayment of principal of the Incremental Loans in
installments.
"PRO FORMA BASIS" means, with respect to compliance with any test or
covenant for any period hereunder, compliance with such test or covenant after
giving effect to any proposed Acquisition, disposition, incurrence of
Indebtedness or other action which requires compliance on a PRO FORMA basis,
giving effect (among other things) to adjustments to increase Consolidated
Adjusted EBITDA, to account for all (if any) Consolidated Eligible Charges for
such period, and using, for purposes of determining such compliance, the
historical financial statements of all entities or assets so acquired or to be
acquired and the consolidated financial statements of the Parent Company and its
Subsidiaries which shall be reformulated (a) as if such Acquisition,
disposition, incurrence of Indebtedness or other action, and any other such
action which has been consummated during such period, and any Indebtedness or
other liabilities incurred in connection with any such actions, had been
consummated at the beginning of such period (and assuming that such Indebtedness
bears interest during any portion of the applicable measurement period prior to
the relevant action at the weighted average of the interest rates applicable to
outstanding Loans during such period), and (b) otherwise in conformity with such
reasonable procedures as may be agreed upon between Administrative Agent and the
Principal Companies; PROVIDED, HOWEVER, that all of the calculations referred to
herein shall be in reasonable detail and shall be in form and substance
reasonably satisfactory to Administrative Agent in all material respects.
"PROPERTY" means any interest in any kind of property or asset, whether
real, personal or mixed, and whether tangible or intangible.
"PRU BRIDGE" has the meaning specified in the definition of the term
"BRIDGE NOTES".
"PURCHASE MONEY LIENS" has the meaning specified in SECTION 9.3(c).
"RADIO STATIONS" means and includes, collectively, (a) all of the AM
and FM radio stations owned and operated by the Parent Company, the Borrower or
any of their Subsidiaries as of the Closing Date, after giving effect to all
elements of the Transactions that are closing or being consummated as of or on
the Closing Date, and (b) all radio stations from time to time acquired after
the Closing Date by the Parent Company, the Borrower or any of their
Subsidiaries.
"REAL PROPERTY" of any Person means all of the right, title and
interest of such Person in and to any land, improvements and fixtures, including
leaseholds.
"RECOVERY EVENT" means the receipt by the Parent Company or the
Borrower or by any of their Subsidiaries of any insurance or other cash proceeds
payable by reason of theft, loss, physical destruction, condemnation or damage
or any other similar event with respect to any Property of the Parent Company or
the Borrower or of any of their Subsidiaries.
"REFINANCING" means the repayment in full of the Indebtedness to be
Refinanced.
"REFINANCING DOCUMENTS" means all agreements and other documents
relating to the Refinancing.
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"REINVESTMENT ASSETS" means, collectively, (a) any Capital Assets or
other Property to be used or otherwise employed by the Parent Company or the
Borrower or by any of their Subsidiaries in the Line of Business, and (b) any
Acquisition permitted by SECTION 9.6.
"REINVESTMENT ELECTION" has the meaning specified in each of SECTION
2.7(b)(i), (ii) and (iii).
"REINVESTMENT EVENT" means any Asset Sale, Financing Event or Recovery
Event in respect of which the Principal Companies shall have made a Reinvestment
Election by delivering a Reinvestment Notice with respect thereto.
"REINVESTMENT NOTICE" means a written notice duly executed by an
Authorized Officer of each of the Principal Companies stating that (a) on and as
of the date of such notice, no Event of Default is continuing, and (b) the
Principal Companies reasonably expect to use or to cause Subsidiaries of the
Principal Companies to use all or a specified portion of the Net Cash Proceeds
of an Asset Sale or Recovery Event or the Net Issuance Proceeds of a Financing
Event to purchase, construct or otherwise acquire Reinvestment Assets.
"REINVESTMENT PERIOD" means, with respect to any Reinvestment Election
and the related Anticipated Reinvestment Amount, the period commencing on the
date of the Reinvestment Event to which such Reinvestment Election relates and
terminating on the later to occur of (a) the expiration of the period of 270
days commencing on the date of such Reinvestment Event, or (b) if, prior to the
expiration of such 270-day period, the Parent Company, the Borrower or any of
their Subsidiaries shall have entered into a binding agreement to reinvest all
or any part of such Anticipated Reinvestment Amount in Reinvestment Assets, then
the expiration of the period of 450 days commencing on the date of such
Reinvestment Event.
"REINVESTMENT PREPAYMENT AMOUNT" means, with respect to any
Reinvestment Election, the amount, if any, on any Reinvestment Prepayment Date
relating thereto, by which (a) the Anticipated Reinvestment Amount in respect of
such Reinvestment Election EXCEEDS (b) the aggregate amount thereof which the
Parent Company, the Borrower or any of their Subsidiaries have expended or have
entered into legal and binding commitments to expend prior to such date to
acquire Reinvestment Assets.
"REINVESTMENT PREPAYMENT DATE" means, with respect to any Reinvestment
Election, the earliest to occur of: (a) the date, if any, upon which the
Administrative Agent, on behalf of the Required Lenders, shall have delivered a
written termination notice to the Principal Companies; PROVIDED, HOWEVER, that
such notice may only be given by the Administrative Agent to the Principal
Companies while any Event of Default shall be continuing; (b) the last day of
the relevant Reinvestment Period; or (c) the date on which the Parent Company or
the Borrower shall have determined not to, or shall have otherwise ceased to,
proceed with the purchase, construction or other acquisition of Reinvestment
Assets with all or any part of the related Anticipated Reinvestment Amount.
"REPORTABLE EVENT" means, any of the events set forth in Section
4043(c) of ERISA or the regulations thereunder, other than any such event for
which the 30-day notice requirement under ERISA has been waived in regulations
issued by the PBGC.
"REQUIRED LENDERS" means, at any time, Lenders holding more than 50% of
the Aggregate Commitment in effect at such time; PROVIDED, HOWEVER, that if the
Commitments shall
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have terminated in full, the term "REQUIRED LENDERS" shall mean Lenders holding
(including as a result of participations pursuant to SECTIONS 3.3(a) and 3.3(d))
more than 50% of the aggregate amount of the Total Exposure at such time.
"RESPONSIBLE OFFICER" means, in relation to the Parent Company, the
Borrower or any of their Subsidiaries, its chief executive officer, its
president, any vice president, its chief financial officer, treasurer or any
other officer having substantially the same authority and responsibility, in
each case, acting solely in such capacity and without personal liability.
"RESTRICTED PAYMENTS" means, in relation to the Parent Company, the
Borrower and their Subsidiaries:
(a) any payment, prepayment, distribution, loan, advance,
Investment or Sale by the Borrower or by any of its Subsidiaries which
constitutes an Affiliate Transaction described in CLAUSE (a), (b), (c), (d),
(e), (f) or (g) of the definition "AFFILIATE TRANSACTION";
(b) any declaration or payment by the Borrower or by any of
its Subsidiaries of any dividends or other distributions on account of, or any
payment or other distribution by the Borrower or by any of its Subsidiaries on
account of the purchase, repurchase, redemption, retirement or other acquisition
for value of, any Capital Stock of or any other Equity Interests in the
Borrower; and
(c) any declaration or payment by the Parent Company or by any
of its Subsidiaries of any dividends or other distributions on account of, or
any payment or other distribution by the Parent Company or by any of its
Subsidiaries on account of the purchase, repurchase, redemption, retirement or
other acquisition for value of, any Capital Stock of or any other Equity
Interests in the Parent Company.
"REVOLVING COMMITMENT" means, for each Lender, the amount set forth
opposite such Lender's name under the caption "REVOLVING COMMITMENT" on SCHEDULE
II, as such amount may be reduced from time to time pursuant to and in
accordance with the provisions hereof.
"REVOLVING COMMITMENT FEES" has the meaning specified in SECTION
2.9(a).
"REVOLVING COMMITMENT PERCENTAGE" means, as to any Lender, the
percentage equivalent of such Lender's Revolving Commitment divided by the
Aggregate Revolving Commitment; PROVIDED, HOWEVER, that if the Revolving
Commitments have terminated in full, the "REVOLVING COMMITMENT PERCENTAGE" of
each Lender shall be determined by dividing such Lender's Revolving Commitment
in effect immediately prior to such termination by the Aggregate Revolving
Commitment in effect immediately prior to such termination.
"REVOLVING COMMITMENT TERMINATION DATE" means 5:00 p.m. (Boston,
Massachusetts time) on the first Business Day immediately preceding the Maturity
Date.
"REVOLVING CREDIT NOTE" has the meaning specified in SECTION 2.2(b).
"REVOLVING LOAN" means any Loan by a Lender to the Borrower under
SECTION 2.1(a), which may be a Eurodollar Loan or a Base Rate Loan.
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"S&P" means Standard & Poor's Ratings Group, a division of The
McGraw-Hill Companies, Inc., and its successors.
"SALE" means any sale, conveyance, exchange, swap, trade, transfer or
other disposition of any Property, including any sale, transfer or other
disposition of copyrights, trademarks and other intellectual Property made by or
through license agreements or other similar arrangements.
"SECURED CREDITORS" has the meaning specified for the term "CREDITORS"
in the Subsidiary Guaranty.
"SECURITIES" means any Capital Stock, Equity Interests, bonds,
debentures, promissory notes or other evidences of Indebtedness, secured or
unsecured, convertible, subordinated or otherwise, or, in general, any
Instruments commonly known as "securities".
"SECURITY AGREEMENT" means the Security Agreement, in or substantially
in the form of EXHIBIT F, pursuant to which each of the Parent Company, the
Borrower and their Subsidiaries from time to time party thereto shall grant to
the Collateral Agent security interests in and to tangible and intangible
personal Property of such Person in accordance with the terms thereof.
"SECURITY AGREEMENT COLLATERAL" has the meaning specified in the
Security Agreement.
"SECURITY INSTRUMENT" means any security agreement, assignment, pledge
agreement, financing or other similar statement or notice, continuation
statement, other agreement or Instrument, or any amendment or supplement to any
thereof, creating, governing or providing for, evidencing or perfecting any
security interest or Lien.
"SHAREHOLDERS' AGREEMENTS" has the meaning specified in SECTION 5.1.5.
"SOLVENCY CERTIFICATE" means the solvency certificate in or
substantially in the form of EXHIBIT N, to be executed by the chief financial
officer of each Principal Company and delivered pursuant to SECTION 5.1.11.
"STOCKHOLDER AGREEMENT" means the Third Amended and Restated
Stockholders' Agreement, dated as of December 13, 1999, among the Parent
Company, Terry S. Jacobs, William L. Stakelin, and each of the several other
Persons from time to time party thereto as a "Stockholder" thereunder, as
amended, modified or otherwise supplemented from time to time.
"SUBSIDIARY" means, in relation to any Person (in this paragraph called
the "PARENT") at any time, any corporation, limited liability company,
partnership or other Person (a) of which shares of Capital Stock or other Equity
Interests having ordinary voting power to elect a majority of the board of
directors or other managers of such corporation, limited liability company,
partnership or other Person, or representing a majority of the Equity Interests
in such corporation, limited liability company, partnership or other Person, are
at the time owned, controlled or held, directly or indirectly, by the parent, or
(b) the management of which is otherwise controlled, directly or indirectly, by
the parent.
"SUBSIDIARY GUARANTORS" means, collectively, each of the Domestic
Subsidiaries of the Parent Company and the Borrower identified in SECTION 6.12
to the DISCLOSURE SCHEDULE as a "SUBSIDIARY GUARANTOR", and each of the other
Subsidiaries of the Parent Company or of the
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Borrower that at any time after the Closing Date shall execute and deliver to
the Administrative Agent a Guarantor Supplement.
"SUBSIDIARY GUARANTY" means the Subsidiary Guaranty Agreement, in or
substantially in the form of EXHIBIT I, pursuant to which, in accordance with
the terms hereof, certain Subsidiaries of Parent Company and the Borrower shall
guaranty the payment and performance of all of the Obligations.
"SYNDICATION AGENT" means GE Capital Commercial Finance, Inc., in its
capacity as syndication agent for the Agents, the Issuing Lender and the Lenders
under this Agreement and the other Loan Documents, and any successor to such
syndication agent.
"SYNDICATION PERIOD" has the meaning specified in SECTION 12.18.
"TAXES" has the meaning specified in SECTION 4.1(a).
"TAX SHARING AGREEMENTS" has the meaning specified in SECTION 5.1.5.
"TOTAL EXPOSURE" means, at any time of determination, the SUM of (a)
the aggregate principal amount of all of the Loans outstanding at such time,
PLUS (b) the aggregate amount of all of the Letter of Credit Obligations at such
time.
"TOTAL INCREMENTAL UTILIZATION" means, at any time of determination,
the aggregate principal amount of all outstanding Incremental Loans.
"TOTAL REVOLVER UTILIZATION" means, at any time of determination, the
SUM of (a) the aggregate principal amount of all outstanding Revolving Loans
(other than Revolving Loans made for the purpose of reimbursing the Issuing
Lender for any amounts drawn under any Letters of Credit, but not yet so
applied), PLUS (b) the Letter of Credit Obligations then outstanding.
"TRADEMARK SECURITY AGREEMENT" means a Trademark Security Agreement, in
or substantially in the form of EXHIBIT H, to be executed and delivered by each
of the Principal Companies and certain of their Subsidiaries in favor of the
Collateral Agent in compliance with the terms of this Agreement and the Security
Agreement.
"TRANSACTION DOCUMENTS" means and includes, collectively, (a) the Loan
Documents, (b) the Pending Acquisition Documents, (c) the IPO Documents, (d) the
Bridge Financing Documents, and (e) the Refinancing Documents.
"TRANSACTIONS" means, collectively, (a) the entering into of the Loan
Documents and the borrowing of Loans on the Closing Date, (b) the consummation
of the Pending Acquisitions, (c) the consummation of the IPO, (d) the
consummation of the Bridge Financing, (e) the consummation of the Refinancing,
and (f) the payment of fees and expenses in connection with the foregoing.
"UNFUNDED PENSION LIABILITY" means the excess of a Pension Plan's
benefit liabilities under Section 4001(a)(16) of ERISA, over the current value
of that Plan's assets, determined in accordance with the assumptions used for
funding the Pension Plan pursuant to Section 412 of the Code for the applicable
plan year.
"UNITED STATES" and "U.S." mean the United States of America.
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"USAGE" means (a) in relation to the Aggregate Revolving Commitment for
any period, the average for such period of the quotient, determined daily, of
the Total Revolver Utilization from time to time outstanding during such period,
divided by the Aggregate Revolver Commitment from time to time in effect during
such period, and (b) in relation to the Aggregate Incremental Commitment for any
period, the average for such period of the quotient, determined daily, of the
Total Incremental Utilization from time to time outstanding during such period,
divided by the Aggregate Incremental Commitment from time to time in effect
during such period.
"VOTING INTERESTS" means, in relation to any Person at any particular
date, any Capital Stock or other Equity Interests of the class or classes having
general voting power under ordinary circumstances to elect the board of
directors, managers or trustees (or any other Persons performing similar
functions) of such Person (irrespective of whether or not at the time Capital
Stock or other Equity Interests of any other classes shall have or might have
voting power by reason of the happening of any contingency).
"WHOLLY-OWNED SUBSIDIARY" means, in relation to any Person, any
Subsidiary of such Person, all of the Equity Interests in which (other than
directors' qualifying shares) are owned by such Person or by another
Wholly-Owned Subsidiary of such Person.
"YEAR 2000 COMPLIANT" has the meaning specified in SECTION 6.22.
1.2. USE OF DEFINED TERMS. Terms for which meanings are provided in
this Agreement shall, unless otherwise defined or the context otherwise
requires, have such meanings when used in the Notes, the SCHEDULES and EXHIBITS,
each of the other Loan Documents, and each notice or other communication
delivered from time to time in connection with this Agreement or any Instrument
executed pursuant hereto.
1.3. CROSS-REFERENCES. Unless otherwise specified, references in this
Agreement or in any of the other Loan Documents to any SCHEDULE, EXHIBIT,
ARTICLE or SECTION are references to such SCHEDULE, EXHIBIT, ARTICLE or SECTION
of this Agreement or of such other Loan Document, as the case may be, and,
unless otherwise specified, references in any SCHEDULE, EXHIBIT, ARTICLE,
SECTION or definition to any PARAGRAPH or CLAUSE are references to such
paragraph or clause of such SCHEDULE, EXHIBIT, ARTICLE, SECTION or definition.
1.4. ACCOUNTING AND FINANCIAL DETERMINATIONS. Where the character or
amount of any asset or liability or item of income of expense is required to be
determined, or any accounting computation is required to be made, for the
purposes of this Agreement or any of the other Loan Documents, such
determination or calculation shall, to the extent applicable, be made in
accordance with generally accepted accounting principles, as consistently
applied by each of the Principal Companies ("GAAP").
1.5. GENERAL PROVISIONS RELATING TO DEFINITIONS. Terms for which
meanings are defined in this Agreement shall apply equally to 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 term
"INCLUDING" means including, without limiting the generality of any description
preceding such term. References to any Instrument defined in this Agreement or
any of the other Loan Documents refer to such Instrument as originally executed,
or, if subsequently amended or supplemented from time to time, as so amended or
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supplemented and in effect at the relevant time of reference thereto. Each
reference herein to any Person shall include a reference to such Person's
successors and assigns.
ARTICLE II.
THE CREDIT FACILITIES
---------------------
2.1. AMOUNTS AND TERMS OF COMMITMENTS.
(a) THE REVOLVING LOANS. Each Lender severally agrees, on the terms and
conditions hereinafter set forth, to make Revolving Loans to the Borrower from
time to time on any Business Day during the period from the Closing Date to the
Revolving Commitment Termination Date, in an aggregate amount not to exceed at
any time outstanding the amount of such Lender's Revolving Commitment and in a
combined amount for all Lenders not to exceed at any time outstanding
$125,000,000; PROVIDED, HOWEVER, that, immediately after giving effect to any
Borrowing of Revolving Loans, the SUM of the aggregate principal amount of all
of the outstanding Revolving Loans, PLUS the aggregate amount of all of the
outstanding Letter of Credit Obligations shall not exceed the Aggregate
Revolving Commitment then in effect. Within such limits, and subject to the
other terms and conditions hereof, the Borrower may borrow Revolving Loans under
this SECTION 2.1(a), prepay Revolving Loans pursuant to SECTION 2.6, 2.7(a) or
2.7(d) and reborrow Revolving Loans pursuant to this SECTION 2.1(a).
(b) THE INCREMENTAL FACILITY.
(i) At any time prior to the Incremental Commitment
Termination Date, the Borrower may request, pursuant to the procedures
set forth in SECTION 2.16, one or more of the Lenders to provide
commitments, in the amount of $5,000,000 or any integral multiple of
$1,000,000 in excess thereof, and in the aggregate for all such
commitments in an amount not in excess of $50,000,000 (the "MAXIMUM
INCREMENTAL AMOUNT"), for an additional revolving credit facility (an
"INCREMENTAL FACILITY") to be provided to the Borrower hereunder on the
terms and conditions for the Incremental Commitments, the Incremental
Loans and the Incremental Facility set forth in this Agreement and in
the other Loan Documents (including, but not limited to, sharing on a
PARI PASSU basis the Parent Company Guaranty, the Subsidiary Guaranty,
the Collateral Documents and the Collateral); PROVIDED, HOWEVER, that,
in any event, the mandatory termination of the Incremental Commitments
and the mandatory repayment of the Incremental Loans shall be as set
forth in SECTION 2.5(a) and in SECTION 2.8(b). No Lender, by virtue of
its being a party hereto, shall have any obligations of any kind to
provide commitments for the Incremental Facility, and each Lender may
determine in its sole, absolute and complete discretion whether to
provide such commitments. Within such limits, and subject to the other
terms and conditions hereof, from time to time prior to the Incremental
Commitment Termination Date, the Borrower may borrow Incremental Loans
under this SECTION 2.1(b), prepay Incremental Loans pursuant to SECTION
2.6, SECTION 2.7(a) or SECTION 2.7(d), and reborrow Incremental Loans
pursuant to this SECTION 2.1(b).
(ii) When the Incremental Facility shall become effective in
accordance with the terms of SECTION 2.16, SCHEDULE II shall be deemed
amended to reflect each of the Incremental Commitments comprising the
Incremental Facility. In the event that an Incremental Facility shall
have become effective, each Incremental Lender shall be deemed to have
agreed, upon the terms and subject to the conditions contained in this
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Agreement, to make from time to time during the period from the date of
such effectiveness through the Incremental Commitment Termination Date
one or more Incremental Loans to the Borrower in an aggregate unpaid
principal amount not exceeding at any time such Incremental Lender's
Incremental Commitment in effect at such time.
2.2. LOAN ACCOUNTS; NOTES.
(a) The Loans made by each Lender shall be evidenced by one or more
loan accounts maintained by such Lender and by the Administrative Agent in the
ordinary course of business. The loan accounts maintained by the Administrative
Agent shall, in the event of any discrepancy between the entries in the
Administrative Agent's books and any Lender's books relating to such loan
accounts, be controlling and, absent manifest error, shall be prima facie
evidence of the amount of the Loans made by the Lenders to the Borrower, the
principal and interest payments thereon and any other amounts owing in respect
of this Agreement or any of the other Loan Documents. Any failure to make a
notation in any such loan account or any error in doing so shall not limit or
otherwise affect the Obligations of the Borrower hereunder to pay any amounts
owing with respect to the Loans.
(b) If requested by any Lender, the Borrower shall execute and deliver
to such Lender (and deliver a copy thereof to the Administrative Agent) one or
more promissory notes evidencing the Loans owing to such Lender pursuant to this
Agreement. Each such note evidencing Revolving Credit Loans shall be in or
substantially in the form of EXHIBIT A (as amended, endorsed, replaced or
otherwise modified from time to time, a "REVOLVING CREDIT NOTE". Each such note
evidencing Incremental Loans shall be substantially in the form of EXHIBIT B
with such conforming changes thereto as shall be specified by the Administrative
Agent (as amended, endorsed, replaced or otherwise modified from time to time,
an "INCREMENTAL LOAN NOTE"). All of the Notes shall be entitled to all of the
rights and benefits of this Agreement, the other Loan Documents and the
Collateral.
2.3. PROCEDURE FOR BORROWING.
(a) Each Borrowing of Loans (other than a Borrowing of Revolving Loans
pursuant to SECTION 3.3(b)) shall be made upon the Borrower's irrevocable
written notice (or telephonic notice immediately confirmed in writing) delivered
to the Administrative Agent in accordance with SECTION 12.2 in the form of a
Notice of Borrowing, which notice must be received by the Administrative Agent
(i) prior to 12:00 p.m. (Boston, Massachusetts time) not less than three (3)
Business Days prior to the requested Borrowing Date, in the case of Eurodollar
Loans, and (ii) prior to 12:00 p.m. (Boston, Massachusetts time) not less than
one (1) Business Day prior to the requested Borrowing Date, in the case of Base
Rate Loans, specifying:
(A) the amount of the Borrowing, which shall be in a minimum
aggregate principal amount of $500,000 or any multiple of $500,000 in
excess thereof;
(B) the requested Borrowing Date, which shall be a Business
Day;
(C) whether the Borrowing is to be comprised of Eurodollar
Loans or Base Rate Loans, PROVIDED that until the earlier of the
consummation of (1) the IPO, or (2) the Bridge Financing, all
Borrowings shall be Base Rate Loans; and
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(D) in the case of a Eurodollar Loan, the duration of the
Interest Period to be applicable to such Eurodollar Loan. If the Notice
of Borrowing shall fail to specify the duration of the Interest Period
for any Eurodollar Loan which is part of any Borrowing, such Interest
Period shall be of three (3) months' duration.
(b) Upon receipt of the Notice of Borrowing, the Administrative Agent
will promptly notify each Lender thereof and of each such Lender's proportionate
share thereof.
(c) Each Lender will make its proportionate share of each Borrowing
available to the Administrative Agent for the account of the Borrower at the
Administrative Agent's Payment Office by 2:00 p.m. (Boston, Massachusetts time)
on the Borrowing Date requested by the Borrower in funds immediately available
to the Administrative Agent. Unless any applicable condition of ARTICLE V has
not been satisfied, the proceeds of all Loans comprising such Borrowing will
then be made available to the Borrower by the Administrative Agent by wire
transfer in accordance with written instructions provided to the Administrative
Agent by the Borrower.
(d) During the continuation of any Event of Default, the Borrower may
not elect to have any Loan made as a Eurodollar Loan.
(e) After giving effect to any Borrowing, there shall not be more than
twelve (12) different Interest Periods in effect in respect of all Loans which
are Eurodollar Loans.
2.4. CONVERSION AND CONTINUATION ELECTIONS FOR ALL BORROWINGS.
(a) The Borrower may upon irrevocable written notice (or telephonic
notice immediately confirmed in writing) to the Administrative Agent in
accordance with PARAGRAPH (b):
(i) elect to convert on any Business Day, any Base Rate Loans
(or any part thereof in an amount of not less than $500,000 or an
integral multiple of $500,000 in excess thereof) into Eurodollar Loans;
(ii) elect to convert on the last day of any Interest Period
with respect thereto, any Eurodollar Loans (or any part thereof in an
amount of not less than $500,000 or an integral multiple of $500,000 in
excess thereof) into Base Rate Loans; or
(iii) elect to continue on the last day of any Interest Period
with respect thereto, any Eurodollar Loans (or any part thereof in an
amount of not less than $500,000 or an integral multiple of $500,000 in
excess thereof) as Eurodollar Loans;
PROVIDED, HOWEVER, that, if any Borrowing comprised of Eurodollar Loans shall
have been reduced, by payment, prepayment or conversion, to an amount that is
less than $1,000,000 then the Eurodollar Loans comprising such Borrowing shall
automatically convert into Base Rate Loans on the last day of the then-current
Interest Period relating thereto.
(b) The Borrower shall deliver a Notice of Conversion/Continuation in
accordance with SECTION 12.2 to be received by the Administrative Agent not
later than (i) 12:00 p.m. (Boston, Massachusetts time) not less than three (3)
Business Days in advance of the Conversion Date or Continuation Date, if the
Loans are to be converted into or continued as Eurodollar Loans, and (ii) 12:00
p.m. (Boston, Massachusetts time) not less than one (1) Business Day in
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advance of the Conversion Date, if the Loans are to be converted into Base Rate
Loans, specifying:
(A) the proposed Conversion Date or Continuation Date, which
shall in each case be a Business Day;
(B) the aggregate principal amount of all Loans to be
converted or continued;
(C) the nature of the proposed conversion or continuation; and
(D) the duration of the requested Interest Periods, if
applicable.
(c) If, upon the expiration of any Interest Periods applicable to any
Eurodollar Loans, the Borrower shall have failed to select on a timely basis new
Interest Periods to be applicable thereto, such Eurodollar Loans shall
automatically convert into Base Rate Loans upon the expiration of such periods.
(d) Upon receipt of a Notice of Conversion/Continuation, the
Administrative Agent will promptly notify each Lender thereof, or, if no timely
notice is provided by the Borrower, the Administrative Agent will promptly
notify each Lender of the details of any automatic conversion. All conversions
and continuations shall be made pro rata according to the respective outstanding
principal amounts of the Loans with respect to which the notice was given.
(e) During the continuation of any Default, the Borrower may not elect
to have any Loan converted into or continued as a Eurodollar Loan.
(f) Notwithstanding any other provisions contained in this Agreement,
after giving effect to any conversion or continuation of any Loans, there shall
not be more than twelve (12) different Interest Periods in effect in respect of
all Loans which are Eurodollar Loans.
2.5. REDUCTION AND TERMINATION OF COMMITMENTS.
(a)(i) Each of the Revolving Commitments shall in any event
automatically and permanently terminate in full on the Revolving
Commitment Termination Date. The Borrower may, upon not less than three
(3) Business Days' prior written notice to the Administrative Agent,
permanently terminate the Aggregate Revolving Commitment (including the
Letter of Credit Commitment) or permanently reduce the Aggregate
Revolving Commitment (including the Letter of Credit Commitment),
without premium or penalty, by a minimum aggregate amount of $1,000,000
or any multiple of $500,000 in excess thereof; PROVIDED, HOWEVER, that
no such reduction or termination shall be permitted if, immediately
after giving effect thereto and to any prepayment of Revolving Loans
made on the effective date thereof, (A) the then outstanding principal
amount of the Revolving Loans, PLUS the then outstanding Letter of
Credit Obligations, will exceed the Aggregate Revolving Commitment then
in effect, or (B) the then outstanding Letter of Credit Obligations
will exceed the Letter of Credit Commitment then in effect; and,
PROVIDED, FURTHER, that once reduced in accordance with this SECTION
2.5, the Aggregate Revolving Commitment (including the Letter of Credit
Commitment) may not be increased.
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(ii) Each of the Incremental Commitments shall in any event
automatically and permanently terminate in full on the Incremental
Commitment Termination Date. The Borrower may, upon not less than three
(3) Business Days' prior written notice to the Administrative Agent,
permanently terminate the Aggregate Incremental Commitment or
permanently reduce the Aggregate Incremental Commitment by a minimum
aggregate amount of $1,000,000 or any multiple of $500,000 in excess
thereof; PROVIDED, HOWEVER, that no such reduction or termination shall
be permitted if, immediately after giving effect thereto and to any
prepayment of Incremental Loans made on the effective date thereof, the
then outstanding principal amount of the Incremental Loans will exceed
the Aggregate Incremental Commitment then in effect; and, PROVIDED,
FURTHER, that once reduced in accordance with this SECTION 2.5, the
Aggregate Incremental Commitment may not be increased.
(b)......Each of the Aggregate Revolving Commitment and the Letter of
Credit Commitment shall be automatically and permanently reduced on the
following dates ("COMMITMENT REDUCTION DATES") in the amounts (collectively, the
"COMMITMENT REDUCTION AMOUNTS") set forth below opposite such dates:
AGGREGATE LETTER OF CREDIT
REVOLVING COMMITMENT COMMITMENT REDUCTION
COMMITMENT REDUCTION AMOUNT AMOUNT
REDUCTION DATE -------------------- --------------------
--------------
03/31/02 $4,687,500 $937,500
06/30/02 $4,687,500 $937,500
09/30/02 $4,687,500 $937,500
12/31/02 $4,687,500 $937,500
03/31/03 $4,687,500 $937,500
06/30/03 $4,687,500 $937,500
09/30/03 $4,687,500 $937,500
12/31/03 $4,687,500 $937,500
03/31/04 $6,250,000 $1,250,000
06/30/04 $6,250,000 $1,250,000
09/30/04 $6,250,000
12/31/04 $6,250,000
03/31/05 $6,250,000
06/30/05 $6,250,000
09/30/05 $6,250,000
12/31/05 $6,250,000
03/31/06 $9,375,000
06/30/06 $9,375,000
09/30/06 $9,375,000
12/31/06 $9,375,000
The Aggregate Revolving Commitment and the Revolving Commitments of the Lenders,
and the Letter of Credit Commitment of the Issuing Lender, shall in any event
terminate in full on the Revolving Commitment Termination Date and shall be of
no further force or effect whatsoever from and after that date.
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(c) On each date on which the Borrower shall become obligated to prepay
any principal of the Loans pursuant to SECTION 2.7(b) or SECTION 2.7(c), all as
provided by SECTION 2.7(f), then the Aggregate Revolving Commitment and the
Aggregate Incremental Commitment shall be automatically and permanently reduced
on each such date by an amount equal to (i) in the case of the Aggregate
Revolving Commitment, the aggregate principal amount of all of the Revolving
Loans so required to be prepaid on such date, and (ii) in the case of the
Aggregate Incremental Commitment, the aggregate principal amount of all of the
Incremental Loans so required to be prepaid on such date. Each mandatory
reduction of the Aggregate Revolving Commitment pursuant to this PARAGRAPH (c)
shall be applied towards reduction of the remaining Commitment Reduction Amounts
applicable to the Aggregate Revolving Commitment on a pro rata basis in
accordance with the then remaining balance of each of such Commitment Reduction
Amounts. Upon each reduction of the remaining Commitment Reduction Amounts
applicable to the Aggregate Revolving Commitment pursuant to this PARAGRAPH (c),
the then remaining Commitment Reduction Amounts applicable to the Letter of
Credit Commitment shall also be simultaneously automatically and permanently
reduced on a proportional basis; PROVIDED, HOWEVER that the Letter of Credit
Commitment shall not, except as otherwise provided in PARAGRAPH (d), at any time
be automatically reduced below $15,000,000.
(d) The Letter of Credit Commitment shall be automatically and
permanently terminated in full upon termination of the Aggregate Revolving
Commitment. If the Letter of Credit Commitment shall at any time exceed the
Aggregate Revolving Commitment then in effect, then the Letter of Credit
Commitment shall immediately be automatically and permanently reduced to the
amount of the Aggregate Revolving Commitment then in effect.
(e) Each reduction of the Aggregate Revolving Commitment or the
Aggregate Incremental Commitment pursuant to this SECTION 2.5 shall be applied
PRO RATA to each Lender's Revolving Commitment or Incremental Commitment, as the
case may be, in accordance with such Lender's applicable Commitment Percentage.
The amount of any reduction of the Aggregate Revolving Commitment shall not be
applied to the Letter of Credit Commitment unless otherwise specified by the
Borrower or unless otherwise required by the terms of SECTION 2.5(c). All
accrued Fees to the effective date of each reduction or termination of the
Aggregate Revolving Commitment or the Aggregate Incremental Commitment shall be
paid on the effective date of each such reduction or termination. The
Administrative Agent shall promptly notify the Lenders of each reduction or
termination of any of the Aggregate Revolving Commitment or the Aggregate
Incremental Commitment, as the case may be.
2.6. VOLUNTARY PREPAYMENTS.
(a) The Borrower may, upon at least three (3) Business Days' prior
written notice by the Borrower to the Administrative Agent in the case of
Eurodollar Loans, and upon at least one (1) Business Day's prior written notice
by the Borrower to the Administrative Agent in the case of Base Rate Loans,
ratably prepay Revolving Loans or Incremental Loans, as the Borrower may elect,
in whole or in part, in amounts of $500,000 or an integral multiple of $500,000
in excess thereof.
(b) Any notice of prepayment delivered pursuant to this SECTION 2.6
shall be irrevocable and shall specify the date and amount of such prepayment
and the type of Loans to be prepaid, including whether such prepayment is of
Base Rate Loans or Eurodollar Loans or any combination thereof. The
Administrative Agent will promptly notify each Lender thereof and of such
Lender's applicable Commitment Percentage of such prepayment. If any such notice
is
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given by the Borrower, the Borrower shall be absolutely and unconditionally
obligated to make such prepayment, and the prepayment amount specified in such
notice shall become and be due and payable on the date specified therein,
together with accrued interest to such date on the amount prepaid and the
amounts, if any, required to be paid by the Borrower pursuant to SECTION 4.4.
(c) Each prepayment of Incremental Loans made after the Incremental
Commitment Termination Date pursuant to this SECTION 2.6 shall be applied to the
remaining scheduled installments of the Incremental Loans pursuant to SECTION
2.8(b), in each case PRO RATA (based on the principal amount then remaining
unpaid of each of the scheduled installments of the Incremental Loans).
2.7. MANDATORY PREPAYMENTS.
(a)(i) If, on any date, the SUM of (A) the aggregate unpaid
principal amount of all Revolving Loans then outstanding, PLUS (B) all
of the Letter of Credit Obligations then outstanding (to the extent not
Cash Collateralized pursuant to CLAUSE (ii) below or as provided for in
SECTION 3.7) shall exceed the Aggregate Revolving Commitment then in
effect, the Borrower shall immediately prepay principal of the
Revolving Loans in the amount of such excess.
(ii) If, on any date, the aggregate amount of all Letter of
Credit Obligations then outstanding shall exceed the Letter of Credit
Commitment then in effect, the Borrower shall Cash Collateralize on
such date such Letter of Credit Obligations in an amount equal to such
excess.
(iii) If, on any date on or prior to the Incremental
Commitment Termination Date, the aggregate unpaid principal amount of
all Incremental Loans then outstanding shall exceed the Aggregate
Incremental Commitment then in effect, the Borrower shall immediately
prepay principal of the Incremental Loans in the amount of such excess.
(b)(i) If on any date the Parent Company, the Borrower or any
of their Subsidiaries shall receive Net Cash Proceeds from any Asset
Sale or Recovery Event, then an amount equal to 100% of the Net Cash
Proceeds from such Asset Sale or Recovery Event shall be applied upon
receipt to prepay principal of the outstanding Loans, all as provided
by SECTION 2.7(f); PROVIDED, HOWEVER, that the Parent Company, the
Borrower and their Subsidiaries shall be required to apply Net Cash
Proceeds received from any Asset Sale or Recovery Event towards
prepayment of principal as provided above only (A) if any Event of
Default shall be continuing at the time of the receipt of such Net Cash
Proceeds, or (B) if and to the extent that such Net Cash Proceeds, when
added to the aggregate amount of all other Net Cash Proceeds received
from Asset Sales or Recovery Events in the same Fiscal Year, shall
exceed $5,000,000; and PROVIDED, FURTHER, that the requirements for
mandatory prepayment set forth above in this CLAUSE (i) shall be
reduced if and to the extent that the Principal Companies elect, as
hereinafter provided, to cause all or part of such Net Cash Proceeds to
be reinvested by the Parent Company or the Borrower or by one or more
of their Subsidiaries in Reinvestment Assets on or prior to the end of
the applicable Reinvestment Period (herein called a "REINVESTMENT
ELECTION"). The Principal Companies may exercise the Reinvestment
Election with respect to any Asset Sale or Recovery Event only if (1)
no Event of Default shall be continuing at the time of such Asset Sale
or Recovery Event, and (2) the
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Principal Companies deliver a Reinvestment Notice with respect to such
Asset Sale or Recovery Event to the Administrative Agent not later than
the fifth Business Day following the date of such Reinvestment Event,
with such Reinvestment Election being effective with respect to the
Anticipated Reinvestment Amount specified in such Reinvestment Notice.
(ii) If on any date the Parent Company, the Borrower or any of
their Subsidiaries shall receive Net Issuance Proceeds from any
Financing Event involving the issuance of Permitted Subordinated Debt,
then an amount equal to 100% of the Net Issuance Proceeds from such
Financing Event shall be applied upon receipt to prepay principal of
the outstanding Loans, all as provided by SECTION 2.7(f); PROVIDED,
HOWEVER, that the requirements for mandatory prepayment set forth above
in this CLAUSE (ii) shall be reduced: (A) if and to the extent that the
aggregate amount of such Net Issuance Proceeds exceeds (such excess
being herein called "EXCESS PROCEEDS") the aggregate principal amount
(if any) of the outstanding Loans that would need to be prepaid in
order to cause the Consolidated Senior Leverage Ratio, determined as of
the most recent Covenant Determination Date on a Pro Forma Basis after
giving effect to any such Financing Event and any such prepayment, to
be not greater than 4.00:1.00; and (B) if and to the extent that the
Principal Companies make an election (herein called a "REINVESTMENT
ELECTION"), as hereinafter provided, to cause all or any part of such
Excess Proceeds (if any) to be reinvested by the Parent Company, the
Borrower or one or more of their Subsidiaries in Reinvestment Assets on
or prior to the end of the applicable Reinvestment Period. The
Principal Companies may exercise the Reinvestment Election with respect
to the Excess Proceeds from any such Financing Event only if (1) no
Event of Default shall be continuing at the time of such Financing
Event, and (2) the Borrower delivers a Reinvestment Notice with respect
to the Excess Proceeds from such Financing Event to the Administrative
Agent not later than the fifth Business Day following the date of such
Reinvestment Event, with such Reinvestment Election being effective
with respect to the Anticipated Reinvestment Amount specified in such
Reinvestment Notice.
(iii) If the Parent Company, the Borrower or any of their
Subsidiaries shall at any time receive Net Issuance Proceeds from any
Financing Event involving the issuance of Permitted Equity Interests
(other than the IPO), then an amount equal to 100% of the Net Issuance
Proceeds from such Financing Event shall be applied upon receipt to
prepay principal of the outstanding Loans, all as provided by SECTION
2.7(f); PROVIDED, HOWEVER, that the requirements for mandatory
prepayment set forth above in this CLAUSE (iii) shall be reduced: (A)
if and to the extent that the Principal Companies make an election
(herein called a "REINVESTMENT ELECTION"), as hereinafter provided, to
cause all or any part of such Net Issuance Proceeds to be reinvested by
the Parent Company, the Borrower or one or more of their Subsidiaries
in Reinvestment Assets on or prior to the end of the applicable
Reinvestment Period; and (B) if and to the extent that the aggregate
amount of the Net Issuance Proceeds not covered by any such
Reinvestment Election exceeds the aggregate principal amount (if any)
of the outstanding Loans that would need to be prepaid in order to
cause the Consolidated Senior Leverage Ratio, determined as of the most
recent Covenant Determination Date on a Pro Forma Basis after giving
effect to any such Financing Event and any such prepayment, to be not
greater than 4.00:1.00. The Principal Companies may exercise the
Reinvestment Election with respect to such Net Issuance Proceeds from
any such Financing Event only if (1) no Event of Default shall be
continuing at the time of such Financing Event, and (2) the Borrower
delivers a Reinvestment Notice with respect to the Net Issuance
Proceeds from such Financing
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Event to the Administrative Agent not later than the fifth Business Day
following the date of such Reinvestment Event, with such Reinvestment
Election being effective with respect to the Anticipated Reinvestment
Amount specified in such Reinvestment Notice.
(iv) Nothing in this PARAGRAPH (b) shall be construed as a
consent for, or be deemed to permit, any Asset Sale or Financing Event
not otherwise permitted by this Agreement.
(v) On the Reinvestment Prepayment Date with respect to any
Reinvestment Election made pursuant to CLAUSE (i), (ii) or (iii), an
amount equal to the Reinvestment Prepayment Amount, if any, for such
Reinvestment Election shall be applied as a mandatory prepayment of
principal of the outstanding Loans, all as provided by SECTION 2.7(f).
(c) On each Excess Cash Flow Application Date (commencing with the
Excess Cash Flow Application Date falling on April 30, 2001), an amount equal to
50% of the Consolidated Excess Cash Flow for the Fiscal Year last ended shall be
applied as a mandatory prepayment of principal of the outstanding Loans, all as
provided by SECTION 2.7(f); PROVIDED, HOWEVER, that if the Consolidated Leverage
Ratio as of the last day of such Fiscal Year is (i) less than 5.00:1.00, but
equal to or greater than 4:00:1.00, then only an amount equal to 25% of the
Consolidated Excess Cash Flow for such Fiscal Year shall be required to be so
applied, or (ii) less than 4.00:1.00, then no payment in respect of the
Consolidated Excess Cash Flow for such Fiscal Year shall be required pursuant to
this SECTION 2.7(c).
(d) The Net Issuance Proceeds from the IPO remaining after: (i) the
payment by the Principal Company of the Other Senior Debt; (ii) the redemption
by the Parent Company of the Parent Company's Series B Preferred Stock for an
aggregate amount in cash which shall not exceed $5,900,000; (iii) the payment by
the Parent Company of all accrued unpaid dividends on the Parent Company's
outstanding preferred Capital Stock of any class other than Series B, which
dividend payments shall not exceed an aggregate amount in cash equal to
$7,300,000; and (iv) the purchase by the Parent Company from Pru Bridge or its
Affiliates of certain of the Parent Company's Equity Interests in such amounts
or shall be necessary to permit Pru Bridge or its Affiliates to comply with
certain NASD regulations applicable to compensation of underwriters; shall be
contributed by the Parent Company to the capital of the Borrower and applied by
the Borrower towards prepayment of principal of the outstanding Revolving Loans.
The Net Issuance Proceeds from the Bridge Financing remaining after application
towards proceeds required in connection with the implementation of the
Transactions shall be contributed by the Parent Company to the capital of the
Borrower and applied by the Borrower towards prepayment of principal of the
outstanding Revolving Loans. There shall be no reduction of the Aggregate
Revolving Commitment in connection with any such prepayment pursuant to this
paragraph (d).
(e) The Borrower shall pay, together with each principal prepayment
under this SECTION 2.7, accrued interest on the amount prepaid and any amounts
required pursuant to SECTION 4.4. Any prepayments pursuant to this SECTION 2.7
made on any day other than an Interest Payment Date for any Loan shall be
applied: FIRST, to any Base Rate Loans then outstanding; and, THEN, to
Eurodollar Loans with the shortest Interest Periods remaining; PROVIDED,
HOWEVER, that, so long as no Event of Default shall then be continuing, the
Administrative Agent shall, upon the request of the Borrower, apply any such
prepayments to Eurodollar Loans only on the last day of each of the respective
Interest Periods relating thereto, and, until such application of any such
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prepayments, the Administrative Agent shall hold the amount thereof as cash
Collateral for the Obligations upon the terms contained in the Collateral
Documents.
(f) Each prepayment of principal of the outstanding Loans required
pursuant to SECTION 2.7(b) or 2.7(c) shall be applied as follows: (i) at any
time prior to the Incremental Facility Effective Date, to principal of the
Revolving Loans only, and (ii) at any time on or after the Incremental Facility
Effective Date, to principal of both the Revolving Loans and the Incremental
Loans on a PRO RATA basis (A) if prior to the Incremental Commitment Termination
Date, then in accordance with the respective amounts of the Aggregate Revolving
Commitment and the Aggregate Incremental Commitment from time to time in effect,
and (B) if on or after the Incremental Commitment Termination Date, then in
accordance with the respective aggregate principal amounts thereof outstanding
at the time of prepayment.
(g) Each prepayment of Incremental Loans required to be made pursuant
to this SECTION 2.7 after the Incremental Commitment Termination Date shall be
applied to the remaining scheduled installments of the Incremental Loans
pursuant to SECTION 2.8(b) on a PRO RATA basis in accordance with the then
remaining unpaid amounts of such remaining installments.
2.8. REPAYMENTS OF PRINCIPAL.
(a) THE REVOLVING LOANS. The Borrower shall repay to the Lenders in
full on the Maturity Date the entire unpaid principal amount of each of the
Revolving Loans outstanding on the Maturity Date.
(b) THE INCREMENTAL LOANS. The Borrower shall repay the aggregate
unpaid principal amount of all of the Incremental Loans outstanding on the
Incremental Commitment Termination Date (the "INCREMENTAL LOAN BALANCE") in
installments, payable on the Principal Payment Dates specified in the table
below, in an amount for each such installment equal to the Incremental Loan
Balance multiplied by the percentage set forth opposite the Principal Payment
Date for such installment in the table below:
PERCENTAGE OF
INCREMENTAL
PRINCIPAL PAYMENT DATE LOAN BALANCE
---------------------- ------------
03/31/02 3.75%
06/30/02 3.75%
09/30/02 3.75%
12/31/02 3.75%
03/31/03 3.75%
06/30/03 3.75%
09/30/03 3.75%
12/31/03 3.75%
03/31/04 5.00%
06/30/04 5.00%
09/30/04 5.00%
12/31/04 5.00%
03/31/05 5.00%
06/30/05 5.00%
09/30/05 5.00%
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12/31/05 5.00%
03/31/06 7.50%
06/30/06 7.50%
09/30/06 7.50%
12/31/06 7.50%
(c) MATURITY DATE. Anything herein express or implied to the contrary
notwithstanding, there shall become and be absolutely and unconditionally due
and payable on the Maturity Date, and the Borrower hereby promises to pay on the
Maturity Date, the entire principal of each of the Revolving Loans and
Incremental Loans then remaining unpaid, all of the unpaid interest accrued
thereon, all of the unpaid Fees accrued hereunder and all other unpaid sums and
other Obligations owing under this Agreement or any of the other Loan Documents.
2.9. FEES. In addition to the fees described in SECTION 3.8:
(a) COMMITMENT FEES. (i) The Borrower shall pay to the Administrative
Agent for the ratable account of each Lender with a Revolving Commitment, on the
last day of each March, June, September and December in each year and on the
earlier of the Maturity Date or the date on which the Aggregate Revolving
Commitment shall terminate in full, commitment fees ("REVOLVING COMMITMENT
FEES") equal to the product of (A) the average of the daily EXCESS of the
Aggregate Revolving Commitment from time to time in effect from and after the
Effective Date, OVER the Total Revolver Utilization from time to time
outstanding from and after the Effective Date, TIMES (B) the Applicable
Commitment Fee Percentage. The Revolving Commitment Fees shall begin to accrue
on the Effective Date and shall cease to accrue on the earlier of the Maturity
Date or the date on which the Aggregate Revolving Commitment shall terminate in
full.
(ii) The Borrower shall pay to the Administrative Agent for the ratable
account of each Incremental Lender, on the last day of each March, June,
September and December in each year and on the earlier of the Incremental
Commitment Termination Date or the date on which the Aggregate Incremental
Commitment shall terminate in full, commitment fees ("INCREMENTAL COMMITMENT
FEES") equal to the product of (A) the average of the daily EXCESS of the
Aggregate Incremental Commitment from time to time in effect from and after the
Incremental Facility Effective Date, OVER the Total Incremental Utilization from
time to time outstanding from and after the Incremental Facility Effective Date,
TIMES (B) the Applicable Commitment Fee Percentage. The Incremental Commitment
Fees shall begin to accrue on Incremental Facility Effective Date and shall
cease to accrue on the earlier of the Incremental Commitment Termination Date or
the date on which the Aggregate Incremental Commitment shall terminate in full.
(b) OTHER FEES. On each anniversary of the Effective Date, beginning on
the first anniversary thereof, the Borrower shall pay to the Administrative
Agent, a non-refundable Administrative Agent's fee of $25,000 per year, which
fee shall be fully earned on each occasion when paid. The Principal Companies
shall pay to the Administrative Agent such other fees, in such amounts and on
such dates as have been agreed or may be agreed between the Parent Company or
the Borrower and the Administrative Agent from time to time, including the
unpaid balance of the fees payable to the Administrative Agent pursuant to
SECTION 1 of the Fee Letter of December 7, 1999 among the Principal Companies,
the Lead Arranger and the Administrative Agent, which unpaid balance shall be
due and payable in full on the Effective Date.
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2.10. COMPUTATION OF FEES AND INTEREST.
(a) All computations of interest payable in respect of Base Rate Loans
based upon the Base Rate shall be made on the basis of a year of 365 or 366
days, as the case may be, and actual days elapsed. All other computations of
fees and interest under this Agreement shall be made on the basis of a 360-day
year and actual days elapsed. Interest and fees shall accrue during each period
during which interest or fees are computed from the first day thereof to the
last day thereof.
(b) The Administrative Agent will promptly notify the Borrower and the
Lenders of each determination of the Eurodollar Rate; PROVIDED, HOWEVER, that
any failure to do so shall not relieve the Borrower of any liability hereunder.
Any change in the interest rate or any fees resulting from a change in the
Applicable Margin or (as the case may be) in the Applicable Commitment Fee
Percentage shall become effective as of the opening of business on the relevant
date of such change. The Administrative Agent will promptly notify the Borrower
and the Lenders of the effective date and the amount of each such change;
PROVIDED, HOWEVER, that any failure to do so shall not relieve the Borrower of
any liability hereunder.
(c) Each determination of interest rates or fees by the Administrative
Agent shall be conclusive and binding on the Borrower and the Lenders in the
absence of manifest error.
2.11. INTEREST.
(a) Except as and to the extent otherwise expressly provided by this
Agreement, each Loan shall bear interest on the unpaid principal amount thereof
from the date made through maturity (whether by acceleration or otherwise)
thereof as follows:
(i) if a Base Rate Loan, at the Alternate Base Rate PLUS the
Applicable Margin for Base Rate Loans; or
(ii) if a Eurodollar Loan, at the Eurodollar Rate PLUS the
Applicable Margin for Eurodollar Loans.
(b) Interest on each Loan shall be paid in arrears on each Interest
Payment Date. Interest shall also be paid on the date of any prepayment of any
principal of Loans for the principal of such Loans so prepaid. During the
continuation of any Events of Default, interest shall be paid on demand.
(c) So long as any one or more of the Material Events of Default shall
be continuing, the Parent Company, the Borrower and each of the other Credit
Parties shall, except as and to the extent that the Required Lenders shall
otherwise expressly consent in writing, pay interest (after as well as before
judgment) (i) on the entire unpaid principal amount of all of the Loans from
time to time outstanding at the applicable rate PER ANNUM provided in PARAGRAPH
(a) of this SECTION 2.11 PLUS 2%, and (ii) on all other unpaid amounts
(including interest) from time to time overdue, at a rate PER ANNUM equal to the
Alternate Base Rate PLUS the Applicable Margin for Base Rate Loans PLUS 2%.
(d) Anything herein to the contrary notwithstanding, the Obligations of
the Parent Company, the Borrower and the other Credit Parties under this
Agreement and the other Loan Documents shall be subject to the limitation that
payments of interest shall not be required, for
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any period for which interest is computed hereunder, to the extent (but only to
the extent) that contracting for or receiving such payment by a particular
Lender would be contrary to the provisions of any law applicable to such Lender
limiting the highest rate of interest which may be lawfully contracted for,
charged or received by such Lender, and in such event the Parent Company, the
Borrower or (as the case may be) such other Credit Parties shall pay such Lender
interest at the highest rate permitted by Applicable Law.
2.12. PAYMENTS BY THE BORROWER; PRO RATA TREATMENT; ETC.
(a) All payments (including prepayments) required to be made by the
Parent Company, the Borrower or any other Credit Party on account of principal,
interest, drawings under Letters of Credit, Fees and other amounts required to
be paid under this Agreement or any of the other Loan Documents shall be made
without set-off or counterclaim and shall, except as otherwise expressly
provided with respect to drawings under Letters of Credit and elsewhere in the
Loan Documents, be made to the Administrative Agent for the ratable account of
the Lenders at the Administrative Agent's Payment Office, and shall be made in
Dollars and in immediately available funds, no later than 12:00 p.m. (Boston,
Massachusetts time) on the date specified in this Agreement or (as the case may
be) in any of the other Loan Documents. The Administrative Agent will promptly
distribute to each Lender its PRO RATA share, if any, of such principal,
interest, Fees or other amounts, in like funds as received. Any payment which is
received by the Administrative Agent later than 12:00 p.m. (Boston,
Massachusetts time) shall be deemed to have been received on the immediately
succeeding Business Day, and any applicable interest or Fees shall continue to
accrue until such payment shall be deemed to have been received.
(b) Whenever any payment under this Agreement or any other Loan
Document hereunder shall be stated to be due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day, and such
extension of time shall in such case be included in the computation of interest
or Fees, as the case may be (subject to the provisions set forth in the
definition of the term of "INTEREST PERIOD").
(c) Unless the Administrative Agent shall have received notice from the
Parent Company, the Borrower or any other Credit Party prior to the date on
which any payment is due to the Lenders under this Agreement or any other Loan
Document that such Credit Party will not make such payment in full, the
Administrative Agent may assume that such Credit Party will make such payment in
full to the Administrative Agent on such date in immediately available funds, as
required by the Loan Documents, and the Administrative Agent may (but shall not
be so required), in reliance upon such assumption, cause to be distributed to
each Lender on such due date an amount equal to the amount then due such Lender.
If and to the extent that the Parent Company, the Borrower or (as the case may
be) such Credit Party shall not have made such payment in full to the
Administrative Agent, each Lender shall repay to the Administrative Agent on
demand such amount distributed to such Lender, together with interest thereon
for each day from the date such amount is distributed to such Lender until the
date such Lender repays such amount to the Administrative Agent, at the Federal
Funds Rate as in effect for each such day.
(d) Each Borrowing by the Borrower from the Lenders hereunder, and any
reduction of the Commitments of the Lenders, shall be made PRO RATA according to
the respective Revolving Commitments or Incremental Commitments (if any), as the
case may be, of the relevant Lenders. Each payment in respect of principal or
interest in respect of the Loans, each payment in respect of Fees payable
hereunder and each payment in respect of Letter of Credit Obligations, shall be
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applied to the amounts of such Obligations owing to the Lenders PRO RATA
according to the respective amounts then due and owing to the Lenders.
(e) Each payment (including each prepayment) on account of principal of
or interest on the Revolving Loans shall be allocated among the Lenders holding
such Revolving Loans PRO RATA based on the principal amount of such Revolving
Loans then held by such Lenders. Each payment (including each prepayment) on
account of principal of and interest on the Incremental Loans shall be allocated
among the Lenders holding such Incremental Loans PRO RATA based on the principal
amount of such Incremental Loans then held by such Lenders.
2.13. PAYMENTS BY LENDERS TO THE ADMINISTRATIVE AGENT.
(a) Unless the Administrative Agent shall have received notice from any
Lender, at least one (1) Business Day prior to the date of any proposed
Borrowing, that such Lender will not make available to the Administrative Agent
for the account of the Borrower the amount of such Lender's Revolving Commitment
Percentage or Incremental Commitment Percentage, as the case may be, of the
Loans included in such Borrowing, the Administrative Agent may assume that such
Lender has made such amount available to the Administrative Agent as required
hereunder on the Borrowing Date, and the Administrative Agent may (but shall not
be so required), in reliance upon such assumption, make available to the
Borrower on such date a corresponding amount. If and to the extent that any
Lender shall not have made its full amount available to the Administrative Agent
in immediately available funds and the Administrative Agent in such
circumstances has made available to the Borrower such amount, such Lender shall
immediately make such amount available to the Administrative Agent, together
with interest at the Federal Funds Rate from the date of such Borrowing to the
date on which the Administrative Agent recovers such amount from such Lender or
the Borrower. A notice from the Administrative Agent submitted to any Lender
with respect to amounts owing under this SECTION 2.13(a) shall be conclusive,
absent manifest error. If such amount is so made available, such payment to the
Administrative Agent shall constitute such Lender's Loan on the Borrowing Date
for all purposes of this Agreement. If such amount is not made available to the
Administrative Agent on the next Business Day following such Borrowing Date, the
Administrative Agent shall notify the Borrower of such failure to fund and, upon
demand by the Administrative Agent, the Borrower shall pay such amount to the
Administrative Agent for the Administrative Agent's account, together with
interest thereon for each day elapsed since such Borrowing Date, at a rate PER
ANNUM equal to the interest rate applicable at the time to the Loans comprising
such Borrowing.
(b) The failure of any Lender to make any Loan on any Borrowing Date
shall not relieve any other Lender of any obligation hereunder to make a Loan on
such Borrowing Date, but no Lender shall be responsible for the failure of any
other Lender to make the Loan to be made by such other Lender on any Borrowing
Date.
2.14. SHARING OF PAYMENTS, ETC.
(a) If, except as and to the extent otherwise expressly provided
elsewhere in this Agreement or in any of the other Loan Documents, any Lender
shall obtain on account of any of the Obligations owing to it any payment
(whether voluntary, involuntary, through the exercise of any right of set-off,
or otherwise) in excess of its relevant Commitment Percentage of any payments on
account of Obligations of the same kind obtained by Lenders, such Lender shall
forthwith (i) notify the Administrative Agent of such fact, and (ii) purchase
from other affected Lenders such participations in such Obligations held by them
as shall be necessary to cause such
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purchasing Lender to share the excess payment ratably with each of them;
PROVIDED, HOWEVER, that if all or any portion of such excess payment is
thereafter recovered from the purchasing Lender, such purchase shall to that
extent be rescinded and each other affected Lender shall repay to the purchasing
Lender the purchase price paid therefor, together with an amount equal to such
paying Lender's PRO RATA share (according to the proportion of (x) the amount of
such paying Lender's required repayment, to (y) the total amount so recovered
from the purchasing Lender) of any interest or other amount paid or payable by
the purchasing Lender in respect of the total amount so recovered. The
Administrative Agent will keep records (which shall be conclusive and binding in
the absence of manifest error) of participations purchased pursuant to this
SECTION 2.14 and will, in each case, notify the Lenders following any such
purchases.
(b) Each of the Principal Companies agrees that any Lender so
purchasing a participation from another Lender pursuant to this SECTION 2.14
may, to the fullest extent permitted by Applicable Law, exercise all of its
rights of payment (including all rights of set-off) with respect to such
participation as fully as if such Lender were the direct creditor of each of the
Parent Company and the Borrower in the amount of such participation.
2.15. COLLATERAL AND SUBSIDIARY GUARANTY.
(a) The Obligations of the Borrower to repay principal of the Loans,
Letter of Credit Borrowings and other Obligations upon the terms contained
herein, and the payment and performance of all of the other Obligations of each
of the Parent Company, the Borrower and the other Credit Parties under this
Agreement and all of the other Loan Documents shall be secured by security
interests and Liens in and to certain of the tangible and intangible personal
Property of each of the Parent Company, the Borrower and their Subsidiaries, all
as provided by and in accordance with (i) the terms and conditions contained in
the Collateral Documents, and (ii) the terms and provisions contained in
SECTIONS 8.12 and 8.13 hereof.
(b) The payment and performance of all of the Obligations of each of
the Parent Company, the Borrower and the other Credit Parties under this
Agreement and all of the other Loan Documents shall at all times be
unconditionally and irrevocably guaranteed by each of the Subsidiaries of the
Parent Company or of the Borrower pursuant to the Subsidiary Guaranty.
2.16. PROCEDURE FOR INCREMENTAL COMMITMENT REQUESTS.
(a) When the Borrower wishes to request the Lenders to provide an
Incremental Facility to the Borrower, the Borrower may solicit such commitments
by furnishing a request in writing to the Administrative Agent for (i) the
provision by the Lenders of an Incremental Facility upon the terms and subject
to the conditions contained in this Agreement, and (ii) information regarding
the amount of the upfront fees to be charged by such Lenders in connection with
the provision of such Incremental Facility ("INCREMENTAL UPFRONT FEES"). Upon
the receipt by the Administrative Agent of written commitments from Lenders for
an Incremental Facility, the Administrative Agent shall promptly notify the
Borrower of (A) the Lenders which have issued written commitments for such
Incremental Facility, and (B) all of the material terms and conditions of such
commitments, including the amount of each of such commitments and, if
applicable, the amount of each of the Incremental Upfront Fees. The
Administrative Agent shall furnish such other information to the Borrower
regarding such Incremental Facility as the Borrower may from time to time
reasonably request. The Administrative Agent shall also furnish all of such
information promptly to each of the Lenders. The Administrative Agent will make
the final allocations of the Incremental Commitments among the Lenders which
have issued written
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commitments therefor, and the Administrative Agent shall take all such other
action on behalf of the Lenders as shall be then necessary or appropriate to
implement the Incremental Facility.
(b) Anything in SECTION 2.1(b) or in this SECTION 2.16 express or
implied to the contrary notwithstanding, (i) the Administrative Agent shall have
the exclusive rights to allocate Incremental Commitments among the Lenders
providing the Incremental Facility, (ii) no Incremental Facility and no
Incremental Commitments may become effective on or after the Incremental
Commitment Termination Date, and no Incremental Loans may be made on or after
such date, (iii) the Aggregate Incremental Commitment shall not exceed
$50,000,000, and the aggregate principal amount of all Incremental Loans from
time to time outstanding shall not at any time exceed $50,000,000, and (iv) the
Incremental Facility, the Incremental Commitments and the Incremental Loans
shall, except as otherwise expressly provided above with respect to the
Incremental Upfront Fees, be subject to and governed by all of the terms and
conditions contained herein.
ARTICLE III.
THE LETTERS OF CREDIT
---------------------
3.1. LETTER OF CREDIT SUBFACILITY.
(a) On the terms and conditions set forth herein (i) the Issuing Lender
agrees (A) from time to time, on any Business Day during the period from the
Closing Date to the date which is thirty (30) days prior to the Maturity Date to
issue Letters of Credit for the account of the Borrower, and to amend or renew
Letters of Credit previously issued by it, in accordance with SECTIONS 3.2(b)
and SECTION 3.2(d), and (B) to honor drafts under the Letters of Credit; and
(ii) the Lenders severally agree to participate in Letters of Credit issued for
the account of the Borrower; PROVIDED, HOWEVER, that the Issuing Lender shall
not issue any Letter of Credit if as of the date of, and immediately after
giving effect to, the issuance of such Letter of Credit: (1) there shall be
continuing any Event of Default of which the Issuing Lender shall have received
written notice from the Principal Companies or the Administrative Agent; (2) the
aggregate amount of all Letter of Credit Obligations, PLUS the aggregate
principal amount of all Revolving Loans, shall exceed the Aggregate Revolving
Commitment then in effect; or (3) the Letter of Credit Obligations shall exceed
the Letter of Credit Commitment then in effect.
(b) The Issuing Lender shall be under no obligation to issue any Letter
of Credit if:
(i) any order, judgment or decree of any Governmental
Authority shall by its terms purport to enjoin or restrain the Issuing
Lender from issuing such Letter of Credit, or any Applicable Law or any
request or directive (whether or not having the force of law) from any
Governmental Authority with jurisdiction over the Issuing Lender shall
prohibit, or request that the Issuing Lender refrain from, the issuance
of letters of credit generally or such Letter of Credit in particular
or shall impose upon such Issuing Lender with respect to such Letter of
Credit any restriction, reserve or capital requirement (for which the
Issuing Lender is not otherwise compensated hereunder) not in effect on
the Effective Date or shall impose upon the Issuing Lender any
unreimbursable loss, cost or expense which was not applicable on the
Effective Date and which the Issuing Lender reasonably deems material
to it;
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(ii) the Issuing Lender shall have received written notice
from any Lender or from the Borrower, on or prior to the requested date
of issuance of such Letter of Credit, that one or more of the
applicable conditions precedent contained in ARTICLE V is not then
satisfied;
(iii) the expiry date of any requested Letter of Credit (A) is
more than one (1) year after the date of issuance, unless the Required
Lenders and the Issuing Lender have approved such expiry date in
writing, or (B) is later than the Maturity Date;
(iv) any requested Letter of Credit is not in form and
substance reasonably acceptable to the Issuing Lender, or the issuance
of a Letter of Credit shall violate any applicable policies of the
Issuing Lender; or
(v) such Letter of Credit is in a face amount less than
$50,000 or to be denominated in a currency other than Dollars.
3.2. ISSUANCE, AMENDMENT AND RENEWAL OF LETTERS OF CREDIT.
(a) Each Letter of Credit shall be issued upon (x) the irrevocable
written request of the Borrower received by the Issuing Lender (with a copy sent
by the Borrower to the Administrative Agent) at least four (4) Business Days (or
such shorter time as the Issuing Lender may agree in a particular instance in
its sole discretion) prior to the proposed date of issuance, and (y) approval by
the Administrative Agent of such request. Each request by the Borrower for
issuance of a Letter of Credit shall be by facsimile, confirmed promptly in an
original writing, in the form of a Letter of Credit Application, and shall
specify in form and detail reasonably satisfactory to the Issuing Lender: (i)
the proposed date of issuance of the Letter of Credit (which shall be a Business
Day); (ii) the face amount of the Letter of Credit; (iii) the expiry date of the
Letter of Credit; (iv) the name and address of the beneficiary thereof; (v) the
documents to be presented by the beneficiary of the Letter of Credit in case of
any drawing thereunder; (vi) the full text of any certificate to be presented by
the beneficiary in case of any drawing thereunder; and (vii) such other matters
as the Issuing Lender may reasonably require.
(b) From time to time while a Letter of Credit is outstanding and prior
to the Maturity Date, the Issuing Lender will, upon the written request of the
Borrower received by the Issuing Lender (with a copy sent by the Borrower to the
Administrative Agent) at least four (4) Business Days (or such shorter time as
the Issuing Lender may agree in a particular instance in its sole discretion)
prior to the proposed date of amendment, upon approval by the Administrative
Agent of such request, amend any Letter of Credit issued by it. Each such
request by the Borrower for amendment of a Letter of Credit shall be made by
facsimile, confirmed promptly in an original writing, in the form of a Letter of
Credit Amendment Application and shall specify in form and detail reasonably
satisfactory to the Issuing Lender: (i) the Letter of Credit to be amended; (ii)
the proposed date of amendment of the Letter of Credit (which shall be a
Business Day); (iii) the nature of the proposed amendment; and (iv) such other
matters as the Issuing Lender may reasonably require. The Issuing Lender shall
be under no obligation to amend any Letter of Credit if (A) the Issuing Lender
would have no obligation at such time to issue such Letter of Credit in its
amended form under the terms of this Agreement; or (B) the beneficiary of any
such Letter of Credit does not accept the proposed amendment to the Letter of
Credit.
(c) The Administrative Agent will promptly notify the Lenders of the
receipt by it of any Letter of Credit Application or Letter of Credit Amendment
Application.
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(d) The Issuing Lender and the Lenders agree that, while a Letter of
Credit is outstanding and prior to the Maturity Date, at the option of the
Borrower and upon the written request of the Borrower received by the Issuing
Lender (with a copy sent by the Borrower to the Administrative Agent) at least
four (4) Business Days (or such shorter time as the Issuing Lender may agree in
a particular instance in its sole discretion) prior to the proposed date of
notification of renewal, the Issuing Lender shall be entitled to authorize the
automatic renewal of any Letter of Credit issued by it. Each such request for
renewal of a Letter of Credit shall be made by facsimile, confirmed promptly in
an original writing, in the form of a Letter of Credit Amendment Application,
and shall specify in form and detail reasonably satisfactory to the Issuing
Lender: (i) the Letter of Credit to be renewed; (ii) the proposed date of
notification of renewal of the Letter of Credit (which shall be a Business Day);
(iii) the revised expiry date of the Letter of Credit; and (iv) such other
matters as the Issuing Lender may reasonably require. The Issuing Lender shall
be under no obligation to renew any Letter of Credit if the Issuing Lender would
have no obligation at such time to issue or amend such Letter of Credit in its
renewed form under the terms of this Agreement. If any outstanding Letter of
Credit shall provide that it shall be automatically renewed unless the
beneficiary thereof receives notice from the Issuing Lender that such Letter of
Credit shall not be renewed, and if at the time of renewal the Issuing Lender
would be entitled to authorize the automatic renewal of such Letter of Credit in
accordance with this SECTION 3.2(d) upon the request of the Borrower but the
Issuing Lender shall not have received any Letter of Credit Amendment
Application from the Borrower with respect to such renewal or other written
direction from the Borrower with respect thereto, the Issuing Lender shall
nonetheless be permitted to allow such Letter of Credit to be renewed, and the
Borrower and the Lenders hereby irrevocably authorize each such renewal, and,
accordingly, the Issuing Lender shall be deemed to have received a Letter of
Credit Amendment Application from the Borrower requesting such renewal.
(e) This Agreement shall control in the event of any conflict with any
Letter of Credit Related Document (other than any Letter of Credit, the
provisions of which shall control in any event). The Issuing Lender will also
deliver to the Administrative Agent, concurrently or promptly following its
delivery of a Letter of Credit, or any amendment to or renewal of a Letter of
Credit, to a beneficiary, a true and complete copy of each such Letter of Credit
or amendment to or renewal of a Letter of Credit.
3.3. PARTICIPATIONS, DRAWINGS AND REIMBURSEMENT.
(a) Immediately upon the issuance of each Letter of Credit, each Lender
shall be deemed to, and hereby irrevocably and unconditionally agrees to,
purchase from the Issuing Lender a participation in such Letter of Credit and
each drawing thereunder in an amount equal to the PRODUCT of (i) the Revolving
Commitment Percentage of such Lender then in effect, TIMES (ii) the maximum
amount available to be drawn under such Letter of Credit and the amount of such
drawing, respectively.
(b) In the event of any request for a drawing under a Letter of Credit
by the beneficiary or transferee thereof, the Issuing Lender will promptly
notify the Borrower. The Borrower shall reimburse the Issuing Lender prior to
12:00 p.m. (Boston, Massachusetts time), on each date that any amount is paid by
the Issuing Lender under any Letter of Credit (each such date, a "DISBURSEMENT
DATE"), in an amount equal to the amount so paid by the Issuing Lender, PROVIDED
that if such drawing occurs after 12:00 p.m. (Boston, Massachusetts time), the
Disbursement Date shall be deemed to be the day following the date of such
drawing. In the event that the Borrower shall fail to reimburse the Issuing
Lender for the full amount of any drawing
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under any Letter of Credit by 12:00 p.m. (Boston, Massachusetts time) on the
Disbursement Date, the Issuing Lender will promptly notify the Administrative
Agent and the Administrative Agent will promptly notify each Lender thereof, and
the Borrower shall be deemed to have requested that Revolving Loans consisting
of Base Rate Loans be made by the Lenders (and the Borrower hereby irrevocably
consents to such deemed request) pursuant to SECTION 2.1(a) to be disbursed on
the Disbursement Date under such Letter of Credit, SUBJECT ALWAYS to the
satisfaction of the conditions set forth in SECTION 5.2. Any notice given by the
Issuing Lender or the Administrative Agent pursuant to this SECTION 3.3(b) may
be oral if immediately confirmed in writing (including by facsimile); PROVIDED,
HOWEVER, that the lack of such an immediate confirmation shall not affect the
conclusiveness or binding effect of such notice.
(c) Each Lender shall upon receipt of any notice pursuant to SECTION
3.3(b) make available to the Administrative Agent for the account of the Issuing
Lender an amount in Dollars and in immediately available funds equal to its
Revolving Commitment Percentage of the amount of the drawing, whereupon the
participating Lenders shall (subject to SECTION 3.3(d)) each be deemed to have
made a Revolving Loan consisting of a Base Rate Loan to the Borrower in that
amount. If any Lender so notified shall fail to make available to the
Administrative Agent for the account of the Issuing Lender the amount of such
Lender's Revolving Commitment Percentage of the amount of the drawing by no
later than 1:00 p.m. (Boston, Massachusetts time) on the Disbursement Date, then
interest shall accrue on such Lender's obligation to make such payment, from the
Disbursement Date to the date such Lender makes such payment, at a rate per
annum equal to (i) the Federal Funds Rate in effect from time to time during the
period commencing on the Disbursement Date and ending on the date three (3)
Business Days thereafter, and (ii) thereafter, at the Alternate Base Rate as in
effect from time to time. The Administrative Agent will promptly give notice of
each Disbursement Date, but failure of the Administrative Agent to give any such
notice on the Disbursement Date or in sufficient time to enable any Lender to
effect such payment on such date shall not relieve such Lender from its
obligations under this SECTION 3.3.
(d) With respect to any unreimbursed drawing which is not converted
into Revolving Loans consisting of Base Rate Loans because the applicable
conditions precedent set forth in SECTION 5.2 cannot be satisfied, the Borrower
shall be deemed to have obtained from the Issuing Lender a Letter of Credit
Borrowing in the amount of such drawing, which Letter of Credit Borrowing shall
be due and payable on demand (together with interest) and shall bear interest at
a rate PER ANNUM equal to the Alternate Base Rate, PLUS the Applicable Margin
for Base Rate Loans, PLUS, in the case of any Letter of Credit Borrowing
outstanding after the Disbursement Date, 2% per annum, and each Lender's payment
to the Issuing Lender pursuant to SECTION 3.3(c) shall be deemed a payment in
respect of its participation in such Letter of Credit Borrowing.
(e) Each Lender's obligation in accordance with this Agreement to make
Revolving Loans or to fund its participation in Letter of Credit Borrowings, as
contemplated by this SECTION 3.3, as a result of any drawing under a Letter of
Credit shall be absolute, unconditional irrevocable and without recourse to the
Issuing Lender and shall not be affected by any circumstance, including: (i) any
set-off, counterclaim, defense or other right which such Lender may have against
the Issuing Lender, the Borrower or any other Person for any reason whatsoever;
(ii) the occurrence or continuation of any Default or any Materially Adverse
Effect; or (iii) any other circumstance, happening or event whatsoever, whether
or not similar to any of the foregoing.
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3.4. REPAYMENT OF PARTICIPATION.
(a) Upon (and only upon) receipt by the Administrative Agent for the
account of the Issuing Lender of funds from the Borrower (i) in reimbursement of
any payment made by the Issuing Lender under the Letter of Credit with respect
to which any Lender has paid the Administrative Agent for the account of the
Issuing Lender for such Lender's participation in the Letter of Credit pursuant
to SECTION 3.3, or (ii) in payment of interest on amounts described in CLAUSE
(i), the Administrative Agent will pay to each Lender, in the same funds as
those received by the Administrative Agent for the account of the Issuing
Lender, the amount of such Lender's Revolving Commitment Percentage of such
funds, and the Issuing Lender shall receive the amount of the Revolving
Commitment Percentage of such funds of any Lender that did not so pay the
Administrative Agent for the account of the Issuing Lender.
(b) If the Administrative Agent or the Issuing Lender is required at
any time to return to the Borrower, or to any trustee, receiver, liquidator,
custodian or any other similar official in any Insolvency Proceeding, any
portion of the payments made by the Borrower to the Administrative Agent for the
account of the Issuing Lender pursuant to SECTION 3.4(a) in reimbursement of a
payment made under the Letter of Credit or interest or fees thereon, each Lender
shall, on demand of the Administrative Agent, forthwith return to the
Administrative Agent or such Issuing Lender the amount of its Revolving
Commitment Percentage of any amounts so returned by the Administrative Agent or
the Issuing Lender plus interest thereon, from the date such demand is made to
the date such amounts are returned by such Lender to the Administrative Agent or
the Issuing Lender, at a rate PER ANNUM equal to the Federal Funds Rate in
effect from time to time.
3.5. ROLE OF ISSUING LENDER.
(a) Each Lender and the Borrower agree that, in paying any drawing
under a Letter of Credit, the Issuing Lender shall not have any responsibility
to obtain any document (other than any sight draft and certificates expressly
required by the Letter of Credit) or to ascertain or inquire as to the validity
or accuracy of any such document or the authority of the Person executing or
delivering any such document.
(b) Neither the Issuing Lender nor any of the respective
correspondents, participants or assignees of the Issuing Lender shall be liable
to any Lender or the Borrower for: (i) any action taken or omitted in connection
herewith at the request or with the approval of the Required Lenders; (ii) any
action taken or omitted in the absence of gross negligence or willful
misconduct; or (iii) the due execution, effectiveness, validity or
enforceability of any Letter of Credit Related Document.
(c) The Borrower hereby irrevocably assumes all risks of the acts or
omissions of any beneficiary or transferee with respect to its use of any Letter
of Credit. Neither the Issuing Lender nor any of the respective correspondents,
participants or assignees of the Issuing Lender shall be liable or responsible
for any of the matters described in CLAUSES (a) through (f) of SECTION 3.6;
PROVIDED, HOWEVER, that the Borrower may have a claim against the Issuing
Lender, and the Issuing Lender may be liable to the Borrower, to the extent, but
only to the extent, of any direct, as opposed to consequential or exemplary,
damages suffered by the Borrower which the Borrower shall prove were caused by
the Issuing Lender's willful misconduct or gross negligence or the Issuing
Lender's willful failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a sight draft and certificate(s)
strictly complying with the terms and
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conditions of such Letter of Credit. In furtherance and not in limitation of the
foregoing: (i) the Issuing Lender may accept documents that appear on their face
to be in order, without responsibility for further investigation, regardless of
any notice or information to the contrary; and (ii) the Issuing Lender shall not
be responsible for the validity or sufficiency of any Instrument transferring or
assigning or purporting to transfer or assign a Letter of Credit or the rights
or benefits thereunder or proceeds thereof, in whole or in part, which may prove
to be invalid or ineffective for any reason.
3.6. OBLIGATIONS ABSOLUTE. The Obligations of the Borrower under this
Agreement and any Letter of Credit Related Document to reimburse the Issuing
Lender for each drawing under each Letter of Credit, to repay each Letter of
Credit Borrowing and to repay each drawing under a Letter of Credit converted
into Revolving Loans, shall be absolute, unconditional and irrevocable, and
shall be paid strictly in accordance with the terms of this Agreement and each
such other Letter of Credit Related Document under all circumstances, including
the following:
(a) any lack of validity or enforceability of this Agreement or any
Letter of Credit Related Document;
(b) any change in the time, manner or place of payment of, or in any
other term of, all or any of the Obligations of the Borrower in respect of any
Letter of Credit or any other amendment or waiver of or any consent to departure
from all or any of the Letter of Credit Related Documents;
(c) the existence of any claim, set-off, defense or other right that
the Borrower may have at any time against any beneficiary or any transferee of
any Letter of Credit (or any Person for whom any such beneficiary or any such
transferee may be acting), the Issuing Lender or any other Person, whether in
connection with this Agreement, the transactions contemplated hereby or by the
Letter of Credit Related Documents or any unrelated transactions;
(d) any draft, demand, certificate or other document presented under
any 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; or any loss or delay in the transmission or otherwise of any document
required in order to make a drawing under any Letter of Credit;
(e) any payment by the Issuing Lender under any Letter of Credit
against presentation of a draft or certificate that does not strictly comply
with the terms of such Letter of Credit; or any payment made by the Issuing
Lender under any Letter of Credit to any Person purporting to be a trustee in
bankruptcy, debtor-in-possession, assignee for the benefit of creditors,
liquidator, receiver or other representative of or successor to any beneficiary
or any transferee of any Letter of Credit; or
(f) any other circumstance or happening whatsoever, whether or not
similar to any of the foregoing, including any other circumstance that might
otherwise constitute a defense available to, or a discharge of, the Borrower or
any guarantor.
3.7. CASH COLLATERAL PLEDGE. Upon (a) the request of the Administrative
Agent, (i) if the Issuing Lender has honored any full or partial drawing request
on any Letter of Credit, and such drawing has resulted in a Letter of Credit
Borrowing hereunder, or (ii) if, as of the Maturity Date, any Letters of Credit
shall for any reason remain outstanding and partially or wholly undrawn, or (b)
the occurrence of any of the circumstances described in SECTION 2.7(a) requiring
the Borrower
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to Cash Collateralize Letters of Credit, then the Borrower shall immediately
Cash Collateralize the Letter of Credit Obligations in an amount equal to such
Letter of Credit Obligations (or in the case of CLAUSE (b) above, the excess
amount required pursuant to SECTION 2.7(a)), and such cash will be held as
security for all Obligations of the Borrower to the Agents, the Issuing Lender
and the Lenders hereunder in a cash collateral account to be established by the
Administrative Agent, and, during the continuation of any Event of Default, the
Administrative Agent may, and upon the request of the Required Lenders shall,
apply such amounts so held to the payment of such outstanding Obligations;
PROVIDED, HOWEVER, that on a date upon which no Letter of Credit Obligations
remain outstanding, and so long as no Defaults are then continuing the
Administrative Agent, at the request and expense of the Borrower, will duly
release the cash held as Cash Collateral pursuant to this SECTION 3.7 and shall
assign, transfer and deliver to the Borrower (without recourse and without any
representation or warranty) such cash as is then being released and has not
theretofore been applied or released pursuant to this Agreement.
3.8. LETTER OF CREDIT FEES.
(a) The Borrower shall pay to the Administrative Agent, for the ratable
account of each Lender with a Revolving Commitment, letter of credit fees
("LETTER OF CREDIT FEES") with respect to all Letters of Credit equal to (i) the
Applicable Margin for Revolving Loans that are Eurodollar Loans, TIMES (ii) the
average daily Letter of Credit Obligations outstanding (determined as of the
close of business on any date of determination), and such Letter of Credit Fees
shall be due and payable in arrears on each Interest Payment Date for Base Rate
Loans.
(b) The Borrower shall pay directly to the Issuing Lender, for the
Issuing Lender's own account, Letter of Credit fronting fees for all Letters of
Credit issued by the Issuing Lender equal to 0.125% PER ANNUM TIMES the
aggregate daily amount available to be drawn under all Letters of Credit from
time to time outstanding (determined as of the close of business on any date of
determination). Such Letter of Credit fronting fees shall be due and payable in
arrears on each Interest Payment Date for Base Rate Loans.
(c) The Borrower shall also pay directly to the Issuing Lender from
time to time, on demand by the Issuing Lender and for its own account, such
other reasonable issuance, presentation, payment, amendment, transfer and other
processing fees, and other standard and reasonable charges, of the Issuing
Lender relating to letters of credit as are in accordance with the Issuing
Lender's standard schedule for such fees and charges in effect from time to
time.
3.9. UNIFORM CUSTOMS AND PRACTICE. The Uniform Customs and Practice for
Documentary Credits as most recently published by the International Chamber of
Commerce shall in all respects be deemed a part of this ARTICLE III as if
incorporated herein and (unless otherwise expressly provided in the Letters of
Credit) shall apply to the Letters of Credit.
ARTICLE IV.
TAXES, YIELD PROTECTION AND ILLEGALITY
--------------------------------------
4.1. TAXES.
(a) Any and all payments by the Parent Company, the Borrower or any
other Credit Party to any of the Lenders, the Issuing Lender or the Agents under
this Agreement or any of the other Loan Documents shall be made free and clear
of, and without any deduction or withholding
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for or on account of, any and all present or future taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto,
excluding, in the case of each of the Lenders, the Issuing Lender and the
Agents, as the case may be, such taxes (including income taxes or franchise
taxes) as are imposed on or measured by such Person's net income by the
jurisdiction under the laws of which such Person is organized or has its
principal office or maintains a Lending Office or by any political subdivision
thereof (all such nonexcluded taxes, levies, imposts, deductions, charges,
withholdings and liabilities being herein called, collectively, "TAXES").
(b) In addition, each of the Principal Companies and the other Credit
Parties shall pay any and all present or future stamp or documentary taxes and
any other excise or Property taxes, charges or similar levies which arise from
any payment made by such Credit Party under any of the Loan Documents or from
the execution, delivery, registration or recording of, or otherwise with respect
to, this Agreement or any of the other Loan Documents (herein called,
collectively, "OTHER TAXES").
(c) Each of the Principal Companies and other Credit Parties shall
indemnify and hold harmless each of the Lenders, the Issuing Lender and the
Agents for the full amount of Taxes or Other Taxes (including any Taxes or Other
Taxes imposed by any jurisdiction on amounts payable under SECTION 4.1(d))
payable by such Credit Party and any liability (including penalties, interest,
additions to tax and expenses) arising therefrom or with respect thereto,
whether or not such Taxes or Other Taxes were correctly or legally asserted.
(d) If the Parent Company, the Borrower or any other Credit Party shall
be required by Applicable Law to deduct or withhold any Taxes or Other Taxes
from or in respect of any sum payable by such Credit Party under this Agreement
or any of the other Loan Documents to any of the Lenders, the Issuing Lender or
the Agents, then:
(i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable
to additional sums payable under this SECTION 4.1(d)) such Lender,
Issuing Lender or Agent, as the case may be, shall receive an amount
equal to the sum it would have received had no such deductions or
withholdings been made;
(ii) such Credit Party shall make such deductions; and
(iii) such Credit Party shall pay the full amount deducted to
the relevant taxation authority or other Governmental Authority in
accordance with Applicable Law.
(e) Within thirty (30) days after the date of any payment by the Parent
Company, the Borrower or any other Credit Party of Taxes or Other Taxes, such
Credit Party shall furnish to the Administrative Agent, at its address referred
to in SECTION 12.2, the original or a certified copy of a receipt evidencing
payment thereof or other evidence of payment reasonably satisfactory to the
Administrative Agent.
(f) Each Lender which is organized under the laws of a jurisdiction
outside of the United States agrees that:
(i) it shall, no later than the Effective Date (or, in the
case of a Lender which becomes a party hereto pursuant to SECTION 12.7
after the Effective Date, the date upon
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which such Lender becomes a party hereto) deliver to the Borrower
through the Administrative Agent two accurate and complete signed
originals of Internal Revenue Service Form W-8BEN or any successor
thereto ("FORM W-8BEN"), or two accurate and complete signed originals
of Internal Revenue Service Form W-8ECI or any successor thereto ("FORM
W-8ECI"), as appropriate, in each case indicating that such Lender is
on the date of delivery thereof entitled to receive all payments under
this Agreement and the other Loan Documents free from withholding of
United States Federal income tax;
(ii) if at any time such Lender makes any changes, including a
change of a Lending Office or its principal office, place of
incorporation or fiscal residence, necessitating a new Form W-8BEN or
Form W-8ECI, it shall, to the extent it is legally entitled to do so,
promptly deliver to the Borrower through the Administrative Agent in
replacement for, or in addition to, the forms previously delivered by
it hereunder, two accurate and complete signed originals of Form W-8BEN
or Form W-8ECI, as appropriate, in each case indicating that such
Lender is on the date of delivery thereof entitled to receive all
payments under this Agreement and the other Loan Documents free from
any withholding of any United States Federal income tax;
(iii) it shall, to the extent it is legally entitled to do so,
before or promptly after the occurrence of any event (including the
passing of time but excluding any event mentioned in CLAUSE (ii) above)
requiring a change in or renewal of the most recent Form W-8BEN or Form
W-8ECI previously delivered by such Lender, deliver to the Borrower
through the Administrative Agent two accurate and complete signed
originals of Form W-8BEN or Form W-8ECI in replacement for the forms
previously delivered by such Lender indicating that such Lender
continues to be entitled to receive all payments under this Agreement
and the other Loan Documents free from any withholding of any United
States Federal income tax;
(iv) it shall, to the extent it is legally entitled to do so,
promptly upon the reasonable request of the Borrower or the
Administrative Agent to that effect, deliver to the Borrower or the
Administrative Agent (as the case may be) such other forms or similar
documentation as may be required from time to time by any Applicable
Law, in order to establish such Lender's complete exemption from
withholding on all payments under this Agreement or any of the other
Loan Documents;
(v) if such Lender claims or is entitled to claim exemption
from withholding tax under a United States tax treaty by providing a
Form W-8ECI and such Lender sells or grants a participation in all or
part of its rights under this Agreement, such Lender shall notify the
Administrative Agent of the percentage amount in which it is no longer
the beneficial owner under this Agreement. To the extent of such
percentage amount, the Administrative Agent shall treat such Lender's
Form W-8ECI as no longer in compliance with this SECTION 4.1(f). In the
event a Lender claiming exemption from United States withholding tax by
filing Form W-8BEN with the Administrative Agent sells or grants a
participation in its rights under this Agreement, such Lender agrees to
undertake sole responsibility for complying with the withholding tax
requirements imposed by Sections 1441 and 1442 of the Code; and
(vi) without limiting or restricting any Lender's right to
increased amounts under SECTION 4.1(d) from the Principal Companies or
any of the other Credit Parties
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upon satisfaction of such Lender's obligations under the provisions of
this SECTION 4.1(f), if such Lender is entitled to a reduction in the
applicable withholding tax, the Administrative Agent may (but shall not
be obligated to) withhold from any interest to such Lender an amount
equivalent to the applicable withholding tax after taking into account
such reduction.
If the forms or other administrative documentation required by CLAUSE (i) are
not delivered to the Administrative Agent, then the Administrative Agent shall
withhold from any interest payment to a Lender not providing such forms or other
documentation, an amount equivalent to the applicable withholding tax and, in
addition, the Administrative Agent shall also withhold against periodic payments
other than interest payments to the extent United States withholding tax is not
eliminated by obtaining Form W-8BEN or Form W-8ECI. Each of the Principal
Companies and other Credit Parties shall indemnify and hold harmless the
Administrative Agent and each of its officers, directors, employees, counsel,
agents and attorneys-in-fact from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
charges, expenses or disbursements (including Attorney Costs) of any kind
whatsoever from time to time incurred as a result of or in connection with the
Administrative Agent's failure to withhold as provided pursuant to the preceding
sentence, unless such failure constitutes gross negligence or willful misconduct
of the Administrative Agent itself as the same is determined by a final judgment
of a court of competent jurisdiction, and the Obligations of each of the
Principal Companies and other Credit Parties under this sentence shall survive
payment of all other Obligations.
(g) None of the Principal Companies or other Credit Parties shall be
required to pay any additional amounts in respect of Taxes imposed by any United
States Federal Governmental Authority pursuant to SECTIONS 4.1(a) or 4.1(d) to
any Lender:
(i) if and to the extent the obligation to pay such additional
amounts would not have arisen but for a failure by such Lender to
comply with its obligations under SECTION 4.1(f) in respect of its
Lending Office;
(ii) if such Lender shall have delivered to the Borrower a
Form W-8BEN in respect of its Lending Office pursuant to SECTION
4.1(f)(i)-(iii) or such other forms or other similar documentation
pursuant to SECTION 4.1(f)(iv), to the extent such Lender shall not at
any time be entitled to exemption from all deductions or withholding of
United States Federal income tax in respect of payments by the
Principal Companies or other Credit Parties under this Agreement or any
of the other Loan Documents for the account of such Lending Office for
any reason other than a change in United States Applicable Law or in
the official interpretation of any such Applicable Law by any
Governmental Authority charged with the interpretation or
administration thereof (whether or not having the force of law) after
the date of delivery of such Form W-8BEN or such other forms or other
similar documentation; or
(iii) if such Lender shall have delivered to the Borrower a
Form W-8ECI in respect of its Lending Office pursuant to SECTION
4.1(f)(i)-(iii) or such other forms or similar documentation pursuant
to SECTION 4.1(f)(iv), to the extent such Lender shall not at any time
be entitled to exemption from all deductions or withholding of United
States Federal income tax in respect of payments by the Principal
Companies or other Credit Parties under this Agreement or any of the
other Loan Documents for the account of such Lending Office for any
reason other than a change in United States Applicable Law or in
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the official interpretation of any such Applicable Law by any
Governmental Authority charged with the interpretation or
administration thereof (whether or not having the force of law) after
the date of delivery of such Form W-8ECI or such other forms or other
similar documentation.
(h) Each Lender agrees that it shall, at any time upon reasonable
advance request in writing by the Borrower or the Administrative Agent, promptly
deliver such certification or other documentation as may be required under
Applicable Law in any applicable jurisdiction and which such Lender is entitled
to submit to avoid or reduce withholding taxes on amounts to be paid by the
Parent Company, the Borrower or any other Credit Party and received by such
Lender pursuant to this Agreement or any of the other Loan Documents.
(i) Each of the Principal Companies and other Credit Parties shall
indemnify each Lender, Issuing Lender and Agent, to the extent required by this
SECTION 4.1, within thirty (30) days after receipt of written request from such
Person therefor accompanied by a written statement describing in reasonable
detail the Taxes or Other Taxes that are the subject of the basis for such
indemnity and the computation of the amount payable.
(j) If any Lender, Issuing Lender or Agent shall become aware that it
is entitled to claim a refund of any withholding Taxes or Other Taxes paid by
any of the Principal Companies or other Credit Parties under this SECTION 4.1
from the taxing or other Governmental authority imposing such Taxes or Other
Taxes, such Lender, Issuing Lender or Agent, as the case may be, shall, at the
expense of such Principal Company or (as the case may be) such other Credit
Party, use reasonable efforts to obtain such refund and, upon actual receipt
thereof, shall promptly pay to such Principal Company or such other Credit Party
the amount so received.
(k) If the Parent Company, the Borrower or any other Credit Party is
required to pay additional amounts to any Lender, Issuing Lender or Agent
pursuant to SECTION 4.1(d), then such Lender, Issuing Lender or Agent shall,
upon such Credit Party's request, use its reasonable best efforts (consistent
with policy considerations of such Lender, Issuing Lender or Agent) to change
the jurisdiction of its Lending Office or other office so as to reduce or
eliminate any such additional payment which may thereafter accrue if such
change, in the reasonable judgment of such Lender, Issuing Lender or Agent is
not otherwise disadvantageous to such Person.
(l) Each of the Lenders, the Issuing Lender and the Agents agrees that
it will (i) take all reasonable actions reasonably requested by the Borrower
(consistent with policy considerations of such Person) to maintain all
exemptions, if any, available to it from withholding taxes (whether available by
treaty or existing administrative waiver), and (ii) to the extent reasonable,
otherwise cooperate with Principal Companies and other Credit Parties to
minimize any amounts payable by the Parent Company, the Borrower or other Credit
Parties under this SECTION 4.1, in any case described in the preceding CLAUSES
(i) and (ii), however, only if such action or cooperation is not disadvantageous
to such Person in the reasonable judgment of such Person.
4.2. ILLEGALITY.
(a) If any Lender shall determine that (i) the introduction of any
Applicable Law, or any change in any Applicable Law, or in the interpretation or
administration thereof, has made it unlawful, or (ii) any central bank or other
Governmental Authority has asserted that it is unlawful, for such Lender or its
Lending Office to make a Eurodollar Loan or to convert any Base
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Rate Loan to a Eurodollar Loan, then, on notice thereof by such Lender to the
Borrower through the Administrative Agent, the obligation of such Lender to make
or convert any such Loan shall be suspended, and any such Loan to be made or
converted by such Lender shall instead be made or converted as a Base Rate Loan,
until such Lender shall have notified the Administrative Agent and the Borrower
that the circumstances giving rise to such determination no longer exist.
(b) If any Lender shall determine that it is unlawful for such Lender
to maintain any Eurodollar Loan, all Eurodollar Loans of such Lender then
outstanding shall be automatically converted to Base Rate Loans, either on the
last day of each of the Interest Periods applicable thereto if such Lender may
lawfully continue to maintain such Eurodollar Loans to such day, or immediately,
if such Lender may not lawfully continue to maintain such Eurodollar Loans, and
the Borrower shall pay any amounts required to be paid in connection therewith
pursuant to SECTION 4.4.
(c) Before giving any notice to the Administrative Agent pursuant to
this SECTION 4.2, the affected Lender shall designate a different Lending Office
with respect to its Eurodollar Loans if such designation will avoid the need for
giving such notice or making such demand and will not, in the reasonable
judgment of such Lender, be illegal, inconsistent with the policies of such
Lender or otherwise disadvantageous to such Lender.
4.3. INCREASED COSTS AND REDUCTIONS OF RETURN.
(a) If any Lender or the Issuing Lender shall determine that, due to
either (i) the introduction of or any change in or in the interpretation or
administration of any Applicable Law (other than any Applicable Law relating to
taxes, including those relating to Taxes or Other Taxes) after the Effective
Date, or (ii) the compliance with any guideline or request from any central bank
or other Governmental Authority (whether or not having the force of law) made
after the Effective Date, there shall be any increase in the cost to such Lender
of agreeing to make or making, funding or maintaining any Eurodollar Loans or
participating in any Letter of Credit Obligations, or any increase in the cost
to the Issuing Lender of agreeing to issue, issuing or maintaining any Letter of
Credit or of agreeing to make or making, funding or maintaining any unpaid
drawing under any Letter of Credit, then the Borrower shall be liable for, and
shall from time to time, within thirty (30) days after receipt of any written
request therefor from such Lender or the Issuing Lender, as the case may be
(accompanied by a written statement describing such increased costs in
reasonable detail) (with a copy of such request to the Administrative Agent),
pay to the Administrative Agent, for the account of such Lender or the Issuing
Lender, all such additional amounts as are sufficient to compensate such Lender
or such Issuing Lender for such increased costs.
(b) If any Lender or the Issuing Lender shall determine that (i) the
introduction of any Capital Adequacy Regulation after the Effective Date, (ii)
any change in any Capital Adequacy Regulation after the Effective Date, (iii)
any change in the interpretation or administration of any Capital Adequacy
Regulation by any central bank or other Governmental Authority charged with the
interpretation or administration thereof after the Effective Date, or (iv)
compliance by any Lender (or its Lending Office) or the Issuing Lender, as the
case may be, or any corporation controlling such Lender or the Issuing Lender,
as the case may be, with any Capital Adequacy Regulation adopted after the
Effective Date, affects or would affect the amount of capital required or
expected to be maintained by such Lender or the Issuing Lender or any
corporation controlling such Lender or the Issuing Lender and (taking into
consideration such Lender's, the Issuing Lender's or such corporation's policies
with respect to capital adequacy and
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the Lender's, such Issuing Lender's or such corporation's desired return on
capital) determines that the amount of such capital is (or is required to be)
increased as a consequence of its Commitments, Loans, participations in Letters
of Credit, or obligations under this Agreement, then, within thirty (30) days
after receipt of any written request therefor from such Lender or the Issuing
Lender (accompanied by a written statement describing such increase) (with a
copy of such request to the Administrative Agent), the Borrower shall be liable
for and shall immediately pay to such Lender or the Issuing Lender, from time to
time as specified by such Lender or the Issuing Lender, additional amounts
sufficient to compensate such Lender or the Issuing Lender for such increase.
4.4. FUNDING LOSSES. Each of the Parent Company and the Borrower shall
reimburse each Lender for, and shall hold each Lender harmless from, each loss,
cost or expense which such Lender shall sustain or incur as a consequence of:
(a) any failure by the Borrower to make any payment of principal of or
interest on any Eurodollar Loan punctually when such principal shall become due
and payable in accordance with the terms hereof (whether at maturity, upon
acceleration, or otherwise);
(b) any failure by the Borrower to borrow a Eurodollar Loan, continue a
Eurodollar Loan or convert a Base Rate Loan to a Eurodollar Loan after the
Borrower has given a Notice of Borrowing or a Notice of Conversion/Continuation,
as the case may be;
(c) any failure by the Borrower to make any payment of principal of or
interest on any Eurodollar Loan punctually when such principal and interest
shall become subject to prepayment in accordance with any notice of prepayment
given by the Borrower in accordance with the terms hereof; or
(d) any payment or prepayment of principal of any Eurodollar Loan for
any reason whatsoever (whether pursuant to SECTION 2.6 or SECTION 2.7 or upon
acceleration, or otherwise) on a day which is not the last day of the Interest
Period, applicable thereto;
including any such loss, cost or expense arising from the liquidation or
reemployment of funds obtained by such Lender to maintain any Eurodollar Loan
hereunder or arising from fees payable by such Lender to terminate deposits from
which such funds were obtained.
4.5. INABILITY TO DETERMINE RATES. Notwithstanding any provisions
herein to the contrary, if, in relation to any Eurodollar Loan, (a) the
Administrative Agent shall determine (which determination shall be conclusive
and binding upon all parties hereto) that by reason of circumstances affecting
the interbank markets adequate and fair means do not exist for ascertaining the
Eurodollar Rate to be applicable to such Eurodollar Loan, or (b) the
Administrative Agent shall receive notice from the Required Lenders that the
Eurodollar Rate determined or to be determined for any Interest Period
applicable to any Eurodollar Loans will not adequately and fairly reflect the
cost to the Lenders of making or maintaining the affected Eurodollar Loans
during such affected Interest Period, then, the obligation of the Lenders to
make, continue or maintain Eurodollar Loans or to convert Base Rate Loans into
Eurodollar Loans shall be suspended until the Administrative Agent, upon the
instruction of the Required Lenders, as applicable, revokes such notice in
writing. If, notwithstanding the provisions of this SECTION 4.5, any Lender has
made available to the Borrower its PRO RATA share of any such proposed
Eurodollar Loan, then the Borrower shall immediately repay the amount so made
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available to it by such Lender, together with accrued interest thereon, if any,
or shall convert such proposed Eurodollar Loan to a Base Rate Loan.
4.6. RESERVES ON EURODOLLAR LOANS. The Borrower shall pay to each
Lender, if and so long as such Lender shall be required under regulations of the
Federal Reserve Board to maintain reserves with respect to liabilities or assets
consisting of or including Eurocurrency funds or deposits (currently known as
"EUROCURRENCY LIABILITIES"), additional costs on the unpaid principal amount of
each Eurodollar Loan equal to costs of such reserves allocated to such Loan by
such Lender (as determined by such Lender, which determination shall be
conclusive absent manifest error), payable on each date on which interest is
payable on such Loan.
4.7. CERTIFICATES OF LENDERS. Any Lender or the Issuing Lender claiming
reimbursement or compensation pursuant to this ARTICLE IV shall deliver to the
Borrower (with a copy to the Administrative Agent) a certificate setting forth
in reasonable detail the amount payable to such Person hereunder and such
certificate shall be conclusive and binding on each of the Parent Company, the
Borrower and the other Credit Parties in the absence of manifest error.
4.8. CHANGE OF LENDING OFFICE. Each Lender agrees that, upon the
occurrence of any event giving rise to the operation of SECTION 4.2 or SECTION
4.3 with respect to such Lender, it will, if so requested by the Borrower, use
reasonable efforts (consistent with its internal policy and legal and regulatory
restrictions) to designate a different Lending Office for any Loans affected by
such event with the object of avoiding the consequence of the event giving rise
to the operation of such SECTION; PROVIDED, HOWEVER, that such designation would
not, in the sole judgment of such Lender, be otherwise disadvantageous to such
Lender. Nothing in this SECTION 4.8 shall operate so as to affect, diminish or
postpone any of the Obligations of the Parent Company, the Borrower or any other
Credit Parties or any of the rights of any Lender provided in SECTION 4.2 or
SECTION 4.3.
ARTICLE V.
CONDITIONS PRECEDENT
--------------------
5.1. CONDITIONS TO MAKING FIRST CREDIT EXTENSIONS. The obligations of
each of the Lenders and the Issuing Lender to make its first Credit Extensions
hereunder on the Closing Date are subject to the fulfillment of each of the
following conditions precedent prior to or simultaneously with the making of the
first Credit Extensions on the Closing Date:
5.1.1. EXECUTION AND DELIVERY OF THIS AGREEMENT AND NOTES. The
Administrative Agent shall have received (a) counterparts of this Agreement,
dated as of the Effective Date, duly executed and delivered by each of the
Principal Companies, the Agents, the Issuing Lender and the Lenders (or, in the
case of any party from which an executed counterpart shall not have been
received, the Administrative Agent shall have received in form reasonably
satisfactory to it a facsimile or other written confirmation from such party of
the execution and delivery of a counterpart hereof by such party), and (b) for
the account of each Lender that has made a request therefor, such Lender's
Revolving Credit Note, each dated as of the Effective Date, duly executed and
delivered by the Borrower and containing appropriate insertions and conforming
to the requirements of SECTION 2.2.
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5.1.2. PLEDGE AGREEMENT. The Administrative Agent shall have received
counterparts of the Pledge Agreement, dated as of the Effective Date, duly
executed and delivered by each of the Credit Parties and the Collateral Agent,
together with:
(a) all stock certificates and other Instruments representing Pledged
Collateral then to be pledged thereunder;
(b) an undated stock power for each such stock certificate or other
such Instrument duly executed in blank by a Responsible Officer of the pledgor
thereof;
(c) with respect to Pledged Collateral, if any, consisting of
book-entry shares, evidence that all actions described in the Pledge Agreement
which are necessary to create and perfect the security interests and Liens
therein pursuant to the Pledge Agreement in accordance with Article 8 of the
Uniform Commercial Code have been taken;
(d) evidence that all such actions have been taken as may be necessary
or, in the reasonable opinion of the Collateral Agent, desirable to perfect the
security interests and Liens purported to be created by the Pledge Agreement in
partnerships or limited liability companies (including evidence that security
interests and Liens created by the Pledge Agreement in partnerships or limited
liability companies have been duly recorded in the books and records of such
Persons); and
(e) each of the promissory notes or other Instruments required to be
pledged thereunder, endorsed (without recourse) in blank (or accompanied by an
executed transfer form in blank reasonably satisfactory to the Administrative
Agent) by the pledgor thereof.
5.1.3. SECURITY AGREEMENT; UCC FILINGS; ETC. The Administrative Agent
shall have received counterparts of the Security Agreement, dated as of the
Effective Date, duly executed and delivered by each of the Credit Parties and
the Collateral Agent, together with:
(a) executed copies of financing statements (Form UCC-1) in appropriate
form for filing under the Uniform Commercial Code of each jurisdiction as may be
necessary to perfect the security interests and Liens purported to be created by
the Security Agreement;
(b) certified copies of requests for information or copies (Form
UCC-11), or equivalent reports, each of recent date, listing all effective
financing statements that name each Credit Party as debtor and that are filed in
the jurisdictions referred to in CLAUSE (a), together with copies of such
financing statements (none of which shall cover the Collateral, EXCEPT (i) those
with respect to which appropriate termination statements executed by the secured
party thereunder have been delivered to the Administrative Agent, and (ii) to
the extent evidencing Liens permitted pursuant to SECTION 9.3); and
(c) evidence that all other action necessary or, in the reasonable
opinion of the Collateral Agent, desirable to perfect and protect the security
interests and Liens purported to be created by the Pledge Agreement or by the
Security Agreement have been properly taken by the Credit Parties.
Any other action, including the taking of possession of specific Collateral by
the Collateral Agent, reasonably required by the Collateral Agent to create a
perfected security interest and Lien in the Collateral described in the
Collateral Documents and other Security Instruments referred to
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in SECTION 5.1.2 or in this SECTION 5.1.3 shall have been properly taken in
order to create such a perfected security interest and Lien.
5.1.4. OTHER LOAN DOCUMENTS AND RELATED DOCUMENTS.
(a) Each of the other Loan Documents shall have been duly and properly
authorized, executed and delivered by the respective party or parties thereto
and shall be in full force and effect.
(b) The Administrative Agent shall have received original counterparts
of each Loan Document (other than the Notes) in sufficient number for
distribution to each Lender. Each such Loan Document shall, where applicable, be
substantially in the form of an EXHIBIT attached hereto, and all of such other
Loan Documents shall be in form and substance reasonably satisfactory to the
Required Lenders and the Administrative Agent. All exhibits, schedules or other
attachments to any of the Collateral Documents or other Loan Documents shall be
in form and substance reasonably satisfactory to the Administrative Agent.
5.1.5. SHAREHOLDERS' AGREEMENT; TAX SHARING AGREEMENTS; ETC. On or
prior to the Effective Date, there shall have been delivered to the
Administrative Agent true, correct and complete copies, certified as true and
complete by an Authorized Officer of each Principal Company, of: (a) the
Stockholder Agreement and all other material agreements entered into by the
Parent Company, the Borrower or any of their Subsidiaries governing the terms
and relative rights of its Equity Interests and, to the extent known to the
Parent Company, the Borrower or any of their Subsidiaries, any agreements
entered into by shareholders or other equity holders relating to any such entity
with respect to its Equity Interests (collectively, the "SHAREHOLDERS'
AGREEMENTS"); (b) all material agreements with senior members of, or with
respect to, the management of the Parent Company, the Borrower or any of their
Subsidiaries (collectively, the "MANAGEMENT AGREEMENTS"); (c) any material
employment contracts entered into by the Parent Company, the Borrower or any of
their Subsidiaries (collectively, the "EMPLOYMENT AGREEMENTS"); and (d) all
agreements relating to the sharing of tax liabilities and benefits among the
Parent Company and/or the Parent Company's Subsidiaries (each a "TAX SHARING
AGREEMENT" and, collectively, the "TAX SHARING AGREEMENTS"); all of which
Shareholders' Agreements, Management Agreements, Employment Agreements and Tax
Sharing Agreements shall be in form and substance reasonably satisfactory to the
Administrative Agent and shall be in full force and effect on or as of the
Effective Date and the Closing Date.
5.1.6. CONSUMMATION OF CERTAIN TRANSACTIONS.
(a) On or prior to the Closing Date, either (i) the IPO shall have been
consummated, or (ii) the Forever Acquisition or (alternatively) the New Wave
Acquisition shall have been consummated.
(b) If any of the Transactions referred to in PARAGRAPH (a) of this
SECTION 5.1.6 shall be consummated on or prior to the Closing Date, then the
conditions precedent applicable to such Transaction set forth in SECTION 5.2.5
or in SECTION 5.2.6 shall also be satisfied on or prior to the Closing Date.
5.1.7. CERTAIN FINANCIAL CONDITIONS.
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(a) If both of the Forever Acquisition and the New Wave Acquisition
shall have been consummated on or prior to the Closing Date, then the
Consolidated Adjusted EBITDA of the Parent Company and its Subsidiaries for the
Fiscal Year ended December 31, 1999, determined on a Pro Forma Basis after
giving effect to the completion of both of such Pending Acquisitions, shall not
be less than $10,000,000.
(b) If either (but not both) of the Forever Acquisition or the New Wave
Acquisition shall have been consummated on or prior to the Closing Date, then
the Consolidated Adjusted EBITDA of the Parent Company and its Subsidiaries for
the Fiscal Year ended December 31, 1999, determined on a Pro Forma Basis after
giving effect to the Pending Acquisition consummated on or prior to the Closing
Date, shall not be less than the Consolidated Adjusted EBITDA identified in the
table below opposite the Pending Acquisition so completed:
--------------------------- --------------------------
PENDING ACQUISITION MINIMUM CONSOLIDATED
COMPLETED ON OR PRIOR TO ADJUSTED EBITDA
CLOSING DATE
--------------------------- --------------------------
Forever Acquisition $8,350,000
--------------------------- --------------------------
New Wave Acquisition $6,500,000
--------------------------- --------------------------
(c) The RATIO of (i) the Consolidated Total Debt of the Parent Company
and its Subsidiaries, determined as of the Closing Date after giving effect on a
Pro Forma Basis to the completion of each of the Transactions completed or to be
completed on or prior to the Closing Date, to (ii) the Consolidated Adjusted
EBITDA of the Parent Company and its Subsidiaries for the Fiscal Year ended
December 31, 1999, determined on a Pro Forma Basis after giving effect to the
completion of each of the Transactions completed or to be completed on or prior
to the Closing Date, shall not be greater than 6.65:1.00.
5.1.8. REFINANCINGS.
(a) On or prior to the Closing Date, all of the commitments in respect
of the Indebtedness to be Refinanced shall have been terminated, and all loans
and notes with respect thereto shall have been repaid in full, together with
interest thereon, all letters of credit issued thereunder shall have been
terminated, and all other amounts (including premiums) owing pursuant to the
Indebtedness to be Refinanced shall have been repaid in full, and all
Instruments in respect of the Indebtedness to be Refinanced and all guarantees
with respect thereto shall have been terminated (except as to indemnification
provisions which may survive to the extent provided therein) and shall be of no
further force and effect.
(b) On or prior to the Closing Date, the creditors in respect of the
Indebtedness to be Refinanced shall have terminated and released, or (as the
case may be) shall have made binding commitments in writing to terminate and
release, any and all security interests and Liens on the Property owned by the
Parent Company, the Borrower or any of their Subsidiaries. The Administrative
Agent shall have received all such releases of security interests in and Liens
on the Property owned by the Parent Company, the Borrower or any of their
Subsidiaries as may have been reasonably requested by the Administrative Agent,
which releases shall be in form and substance reasonably satisfactory to the
Administrative Agent. Without limiting the foregoing,
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there shall have been delivered (i) proper termination statements (Form UCC-3 or
the appropriate equivalent) for filing under the Uniform Commercial Code of each
jurisdiction where a financing statement (Form UCC-1 or the appropriate
equivalent) was filed with respect to the Indebtedness to be Refinanced and the
documentation related thereto, (ii) termination or reassignment of any security
interest in, or Lien on, any patents, trademarks, copyrights or similar
interests of the Parent Company, the Borrower or any of their Subsidiaries on
which filings have been made, (iii) terminations of, or (as the case may be)
binding commitments in writing to terminate, all mortgages, leasehold mortgages,
deeds of trust and leasehold deeds of trust created with respect to Property of
the Parent Company, the Borrower or any of their Subsidiaries, in each case, to
secure the obligations in respect of the Indebtedness to be Refinanced, all of
which shall be in form and substance reasonably satisfactory to the
Administrative Agent, and (iv) all collateral owned by the Parent Company, the
Borrower or any of their Subsidiaries in the possession of any of the creditors
in respect of the Indebtedness to be Refinanced or any collateral agent or
trustee under any related security document shall have been returned to the
Parent Company, the Borrower or their Subsidiaries, as the case may be.
(c) On the Closing Date and after giving effect to the Transactions
completed on or prior to the Closing Date, the Parent Company, the Borrower and
their Subsidiaries shall have no Indebtedness outstanding other than (i) the
Loans, and (ii) the Indebtedness listed on SECTION 5.1.8. of the DISCLOSURE
SCHEDULE (with the Indebtedness described in this CLAUSE (ii) being herein
called the "EXISTING INDEBTEDNESS"). On and as of the Closing Date, all of the
Existing Indebtedness shall remain outstanding after giving effect to the
Transactions and the other transactions contemplated hereby without any default
or event of default existing thereunder or arising as a result of the
Transactions and the other transactions contemplated hereby (except to the
extent amended or waived by the parties thereto on terms and conditions
reasonably satisfactory to the Administrative Agent).
5.1.9. FINANCIAL STATEMENTS. The Parent Company shall have furnished to
each of the Agents, the Issuing Lender and the Lenders (a) the unaudited
consolidated financial statements of the Parent Company and its Subsidiaries for
the period ending September 30, 1999 together with internally generated
estimates for the fourth quarter of 1999, which shall have been prepared in
accordance with GAAP (except for the absence of footnotes and subject to normal
year-end adjustments), (b) the projections identified in SECTION 6.8(b), and (c)
the PRO FORMA consolidated balance sheet of the Parent Company and its
Subsidiaries as at the Closing Date, together with the related PRO FORMA
consolidated statements of operations and of cash flows for the twelve fiscal
months ended December 31, 1999, all of such financial statements to be prepared
on a Pro Forma Basis to reflect the consummation of each of the Transactions
completed or to be completed on or prior to the Closing Date, and to be in form
and substance reasonably satisfactory to the Required Lenders and the
Administrative Agent.
5.1.10. CERTIFICATE. The Administrative Agent shall have received (with
copies for each Lender) a duly executed and completed certificate of the
Principal Companies, dated as of the Closing Date, duly executed on behalf of
each Principal Company by its chief financial officer, demonstrating compliance
with the applicable conditions precedent set forth in SECTION 5.1.7.
5.1.11. SOLVENCY CERTIFICATE. The Administrative Agent shall have
received a duly executed and completed Solvency Certificate, dated as of the
Closing Date, in or substantially in the form of EXHIBIT N, duly executed on
behalf of each Principal Company by its chief financial officer.
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5.1.12. CERTIFICATES OF INSURANCE. The Administrative Agent shall have
received certificates of insurance from the insurance brokers for the Principal
Companies, or other evidence reasonably satisfactory to the Administrative
Agent, dated as of a recent date, identifying insurers, types of insurance,
insurance limits and policy terms, and otherwise describing all of the insurance
required to be maintained by the Principal Companies and their Subsidiaries in
accordance with the terms the Loan Documents, and certifying that the
Administrative Agent has been named as additional insured or (as the case may
be) loss payee under all of such insurance.
5.1.13. RESOLUTIONS, ETC. The Administrative Agent shall have received:
(a) from each of the Credit Parties, a certificate, dated as of the
Closing Date, of its secretary or any assistant secretary as to:
(i) resolutions of its board of directors or (as the case may
be) managers or general partners then in full force and effect
authorizing the execution, delivery and performance of, in each case,
to the extent such Credit Party is a party thereto, this Agreement and
each of the other Loan Documents;
(ii) the incumbency and signatures of the Responsible Officers
of each such Credit Party (the "AUTHORIZED OFFICERS") authorized to act
with respect to (in each case, to the extent such Credit Party is a
party thereto) this Agreement and each of the other Loan Documents,
(upon which certificate each of the Agents, the Issuing Lender and the
Lenders may conclusively rely until the Administrative Agent shall have
received a further certificate of such Credit Party canceling or
amending such prior certificate, which further certificate shall be
reasonably satisfactory to the Administrative Agent); and
(iii) each Governing Document of such Credit Party; and
(b) such other similar documents (certified as of the Closing Date) as
the Administrative Agent may reasonably request with respect to any matter
relevant to this Agreement, the other Loan Documents, the Ancillary Documents or
the transactions contemplated hereby or thereby.
Each of such documents shall be in form and substance reasonably satisfactory to
the Administrative Agent and the Required Lenders.
5.1.14. CERTIFICATES OF GOOD STANDING, ETC. The Administrative Agent
shall have received (a) the Governing Documents and other organizational
documents of each Credit Party as in effect on the Closing Date, certified as of
a recent date by the Secretary of State (or other similar applicable
Governmental Authority) of the jurisdiction of incorporation or organization of
such Credit Party, and (b) a good standing certificate as of a recent date for
each Credit Party from the Secretary of State of the jurisdiction of
incorporation or organization of such Credit Party and each State or other
jurisdiction where the failure of such Credit Party to be qualified to do
business as a foreign corporation or other entity could reasonably be expected
to have a Materially Adverse Effect, together with (by telephonic or facsimile
transmission) a bring-down certificate, dated on or as of the Closing Date, from
the Secretary of State of the jurisdiction of incorporation or organization of
such Credit Party.
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5.1.15. NO MATERIALLY ADVERSE EFFECT; ETC.
(a) No events or developments shall have occurred since December 31,
1999 which, individually or in the aggregate, have had or could reasonably be
expected to have a Materially Adverse Effect.
(b) On or prior to the Closing Date, all necessary governmental and
third party approvals and/or consents in connection with the Transactions
completed or to be completed on or prior to the Closing Date and the other
transactions contemplated by the Transaction Documents relating to such
Transactions and otherwise referred to herein or therein shall have been
obtained and remain in effect, and all applicable waiting periods with respect
thereto shall have expired without any action being taken by any competent
Governmental Authority which restrains, prevents or imposes materially adverse
conditions upon the consummation of such Transactions or the other transactions
contemplated by such Transaction Documents or otherwise referred to herein or
therein. Additionally, there shall not exist any judgment, order, injunction or
other restraint issued or filed or a hearing seeking injunction or other
restraint pending or notified prohibiting or imposing materially adverse
conditions upon, or materially delaying or making economically unfeasible the
consummation of, such Transactions or the other transactions contemplated by
such Transaction Documents or otherwise required to be consummated hereby or
thereby.
5.1.16. AFFILIATE TRANSACTIONS; OTHER CORPORATE TRANSACTIONS.
(a) AFFILIATE TRANSACTIONS. Since December 31, 1999, no Credit Party
shall have made any Restricted Payments or entered into, performed or completed
any Affiliate Transactions, EXCEPT the payments and transactions described in
SECTION 5.1.16 to the DISCLOSURE SCHEDULE.
(b) OTHER CORPORATE TRANSACTIONS. Since December 31, 1999, neither of
the Principal Companies nor any of their Subsidiaries shall have (i) merged or
consolidated with any other Person, or (ii) sold, transferred or otherwise
disposed of all or any substantial part of its Property otherwise than in the
ordinary course of business, EXCEPT the mergers, Sales and other dispositions
described in SECTION 5.1.16 to the DISCLOSURE SCHEDULE.
(c) CHANGE OF CONTROL. No Change of Control shall have occurred since
December 31, 1999.
5.1.17. FEES AND EXPENSES. The Administrative Agent shall have received
from the Borrower on the Effective Date payment in full of all of the Fees
required to be paid on or prior to the Effective Date in accordance with SECTION
2.9 and (as the case may be) in accordance with Fee Letter referred to in
SECTION 12.10, and the Administrative Agent shall have received from the
Borrower payment in full of all of its reasonable out-of-pocket costs and
expenses (including Attorney Costs) payable in accordance with SECTION 12.4 for
which invoices shall have been submitted at least one (1) Business Day prior to
the Effective Date.
5.1.18. OPINIONS OF COUNSEL. The Administrative Agent shall have
received opinions, dated the Closing Date addressed to each of the Agents, the
Issuing Lender and the Lenders, from (a) special counsel to the Principal
Companies, in or substantially in the form of EXHIBIT O, and otherwise in form
and substance reasonably satisfactory to the Administrative Agent, (b) Latham &
Watkins, special FCC counsel to the Principal Companies, in or substantially in
the form of
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EXHIBIT P, and otherwise in form and substance satisfactory to the
Administrative Agent, and (c) Bingham Dana LLP, special counsel to the
Administrative Agent, in or substantially in the form of EXHIBIT Q, and
otherwise in form and substance reasonably satisfactory to the Administrative
Agent.
5.2. ALL CREDIT EXTENSIONS. The obligations of each of the Lenders and
the Issuing Lender to make each of its Credit Extensions hereunder (including
its first Credit Extensions to be made on the Closing Date) shall also be
subject to the satisfaction of each of the additional following conditions
precedent set forth in this SECTION 5.2.
5.2.1. COMPLIANCE WITH WARRANTIES; NO DEFAULT; ETC. The representations
and warranties of each of the Parent Company, the Borrower and the other Credit
Parties set forth in ARTICLE VI, in the Collateral Documents and in the other
Loan Documents shall have been true and correct in all material respects on and
as of each of the respective dates made; and, both immediately before and
immediately after giving effect to each of such Credit Extensions:
(a) such representations and warranties shall be true and correct in
all material respects with the same full force and effect as if then made
(except for any such representation or warranty that relates solely to a prior
date); and
(b) no Default shall have occurred and then be continuing.
5.2.2. NOTICE OF BORROWING; CONTINUATION/CONVERSION NOTICE. The
Administrative Agent shall have received a Notice of Borrowing in compliance
with SECTION 2.3 or a Notice of Continuation/Conversion, as the case may be, for
such Credit Extension. The delivery of such Notice of Borrowing or such Notice
of Continuation/Conversion shall constitute a representation and warranty by
each of the Parent Company and the Borrower that, on and as of the requested
date of such Credit Extension, and both immediately before and immediately after
giving effect to such Credit Extension, all representations and warranties
required by SECTION 5.2.1 are true and correct.
5.2.3. LEGALITY OF TRANSACTIONS. It shall not be unlawful (a) for the
Administrative Agent, the Issuing Lender or any Lender to perform any of its
obligations under any of the Loan Documents, or (b) for any Credit Party to pay
or perform any of its Obligations under any of the Loan Documents.
5.2.4. SATISFACTORY LEGAL FORM, ETC. All Instruments and other
documents executed and delivered or submitted pursuant hereto by or on behalf of
any of the Credit Parties shall be reasonably satisfactory in form and substance
to the Administrative Agent and its special counsel; the Administrative Agent
and its special counsel shall have received all such information, and such
counterpart originals or such certified or other copies of all such other
materials, as the Administrative Agent or its special counsel shall have
reasonably requested; and all legal matters incident to the transactions
contemplated by this Agreement shall be reasonably satisfactory to special
counsel to the Administrative Agent.
5.2.5. COMPANY FINANCINGS.
(a) If the IPO shall have been consummated on or prior to the date of
such Credit Extension, then each of the following conditions precedent shall
have been satisfied with respect to the IPO:
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(i) the Parent Company shall have received an aggregate gross
amount of not less than $80,000,000 from the IPO; and
(ii) on or prior to the date of such Credit Extension, there
shall have been delivered to the Administrative Agent true, correct and
complete copies of the IPO Documents, and all of the material terms and
conditions of the IPO Documents, to the extent materially different
than as filed with the SEC on or prior to the date of this Agreement,
shall be reasonably satisfactory in form and substance to the
Administrative Agent; all material conditions precedent to the
consummation of the IPO, as set forth in the SEC Form S-1 filed with
the SEC, as amended, shall have been satisfied, and not waived unless
consented to by the Administrative Agent (which consent shall not be
unreasonably withheld or delayed), to the reasonable satisfaction of
the Administrative Agent; and the IPO shall have been consummated in
all material respects in accordance with the material terms and
conditions of the applicable IPO Documents and all Applicable Law.
(b) If the Bridge Financing shall have been consummated on or prior to
the date of such Credit Extension, then each of the following conditions
precedent shall have been satisfied with respect to the Bridge Financing:
(i) the Parent Company shall have contributed or caused to be
contributed to the capital of the Borrower all of the proceeds of the
Bridge Financing, net of all transaction expenses and other related
expenses; and
(ii) on or prior to the date of such Credit Extension, there
shall have been delivered to the Administrative Agent true, correct and
complete copies of the Bridge Financing Documents, and all of the
material terms and conditions of the Bridge Financing Documents shall
be reasonably satisfactory in form and substance to the Administrative
Agent; all material conditions precedent to the consummation of the
Bridge Financing, as set forth in the Bridge Financing Documents, shall
have been satisfied, and not waived unless consented to by the
Administrative Agent (which consent shall not be unreasonably withheld
or delayed), to the reasonable satisfaction of the Administrative
Agent; and the Bridge Financing shall have been consummated in all
material respects in accordance with the material terms and conditions
of the applicable Bridge Financing Documents and all Applicable Law.
5.2.6. PENDING ACQUISITIONS. If any Pending Acquisition shall have been
consummated on or prior to the date of such Credit Extension, then each of the
following conditions precedent shall have been satisfied with respect to such
Pending Acquisition:
(a) on or prior to the date of such Credit Extension, there shall have
been delivered to the Administrative Agent true, correct and complete copies of
the Pending Acquisition Documents applicable to such Pending Acquisition, and
all of the materials terms and conditions of such Pending Acquisition Documents
shall be reasonably satisfactory in form and substance to the Administrative
Agent;
(b) such Pending Acquisition shall have been consummated in all
material respects in accordance with the Pending Acquisition Documents
applicable to such Pending Acquisition and all Applicable Law; and all material
conditions precedent to the consummation of such Pending Acquisition, as set
forth in such Pending Acquisition Documents, shall have been
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satisfied, and not waived in any material respect, except with the prior consent
of the Administrative Agent (which consent shall not be unreasonably withheld or
delayed), to the reasonable satisfaction of the Administrative Agent; and
(c) the material terms and conditions of each such Pending Acquisition
Document shall be in all material respects the same as and consistent with the
terms and conditions contained in the form of such Pending Acquisition Document
previously delivered to the Administrative Agent and shall continue to be in
full force and effect on and as of the date of such Credit Extension, and no
material provision of any such Pending Acquisition Document shall have been
modified or waived in any respect reasonably determined by the Administrative
Agent to be material, in each case, without the prior written consent of the
Administrative Agent (which consent shall not be unreasonably withheld or
delayed).
5.2.7. CONSUMMATION OF CERTAIN TRANSACTIONS. Either the IPO shall have
been consummated, or the Bridge Financing shall have been consummated.
5.2.8. COMPLIANCE CERTIFICATE. Upon the earlier of (a) February 15,
1999, or (b) the first Credit Extension hereunder, the Administrative Agent
shall have received (with copies for each Lender) a duly executed and completed
Compliance Certificate, dated as of the date of delivery, in or substantially in
the form of EXHIBIT L, duly executed on behalf of each Principal Company by its
chief financial officer.
ARTICLE VI.
REPRESENTATIONS AND WARRANTIES
------------------------------
Each of the Principal Companies, jointly and severally, represents and
warrants to each of the Lenders, the Issuing Lender and the Agents as set forth
below in this ARTICLE VI:
6.1. CORPORATE EXISTENCE AND POWER, ETC. Each of the Principal
Companies and its Subsidiaries:
(a) is a duly organized and validly existing corporation, partnership
or limited liability company, as the case may be, and is in good standing under
the laws of the jurisdiction of its organization;
(b) has the power and authority, and the legal right, to own or hold
under lease its Property, conduct its business and execute, deliver and perform
its Obligations under each of the Loan Documents to which it is or is to become
a party as contemplated hereby;
(c) is duly qualified to do business as a foreign entity, and is
licensed and in good standing, under the Applicable Law of each jurisdiction
where its ownership, lease or operation of Property or the nature or conduct of
its business requires such qualification or license, EXCEPT (in each case) where
the failure so to be qualified or licensed has not had and could not reasonably
be expected to have a Materially Adverse Effect; and
(d) is in all material respects in compliance with all Applicable Law,
EXCEPT (in each case) to the extent that the failure to comply therewith has not
had and could not reasonably be expected to have a Materially Adverse Effect.
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6.2. CORPORATE AUTHORIZATION; ETC. The execution, delivery and
performance by each of the Principal Companies and its Subsidiaries of each of
the Loan Documents to which it is or is to become a party as contemplated
hereby, and, in the case of the Borrower, to make the Borrowings contemplated
hereby, have been duly authorized by all necessary corporate, limited liability
company or partnership action, as the case may be, and do not and will not:
(a) contravene in any material respect any of the terms or other
provisions of any of the Governing Documents of any such Person;
(b) conflict in any material respect with or result in any material
breach or contravention of, or the creation of any Liens under, any Instrument
or other document creating, governing or evidencing any material Contractual
Obligation to which such Person is a party or by which such Person or any of its
Property is bound or any order, injunction, writ or decree of any Governmental
Authority to which such Person or any of its Property is subject; or
(c) violate any Applicable Law in any material respect.
6.3. GOVERNMENTAL AUTHORIZATION. No order, consent, approval, license,
authorization or validation of, or filing, recording or registration with
(except filings necessary to perfect the Liens granted pursuant to the Security
Agreements, and except such as will have been obtained or made on or prior to
the Closing Date), or exemption by, any Governmental Authority, or any
subdivision thereof, is required to authorize, or is required in connection
with, (a) the execution, delivery or performance of any Transaction Document, or
(b) the legality, validity, binding effect or enforceability of any such
Transaction Document, EXCEPT where the failure to so obtain or make could not
reasonably be expected to have a Materially Adverse Effect; PROVIDED, HOWEVER,
that: (i) subsequent to the date of execution of the Transaction Documents,
copies of certain of the Transaction Documents are required to be filed with the
FCC; (ii) the Parent Company and its Subsidiaries will be required from time to
time to obtain certain authorizations of, or to make certain filings with, the
FCC that are required in connection with the ordinary course of business of the
Parent Company and its Subsidiaries; (iii) under the Communications Act and the
FCC rules, FCC approval is required prior to the transfer of control of the
Parent Company, the Borrower or any of their Subsidiaries or the assignment of
any of the FCC Authorizations or prior to the exercise of any voting rights or
management authority over the Parent Company, the Borrower or any of their
respective Subsidiaries; and (iv) prior to the exercise of certain rights or
remedies under the Security Agreements by the Agents or the Lenders, or their
respective successors and assigns, FCC consents and notifications with respect
to such exercise may be required to be timely obtained or made.
6.4. BINDING EFFECT. Each of the Principal Companies has duly executed
and delivered this Agreement, the Security Agreement, the Pledge Agreement and
each of the other Loan Documents required to be executed and delivered by such
Principal Company in accordance with the terms hereof. Each of the Parent
Company's Subsidiaries will, by the Closing Date, have duly executed and
delivered the Security Agreement, the Pledge Agreement and each of the other
Loan Documents required to be executed and delivered by it in accordance with
the terms hereof. Each of the Loan Documents to which the Parent Company, the
Borrower or any of their Subsidiaries is a party constitutes, and each of the
other Loan Documents upon execution and delivery thereof by any Credit Party,
will constitute, the legal, valid and binding Obligation of each Credit Party
thereto, enforceable against each such Credit Party in accordance with its
terms, EXCEPT (in each case) as enforceability may be limited by applicable
bankruptcy, insolvency or
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other similar Applicable Law affecting the enforcement of creditors' rights
generally or by equitable principles of general applicability.
6.5. COLLATERAL DOCUMENTS. The provisions of the Collateral Documents
will, from and after the execution and delivery thereof by each Credit Party
party thereto, be effective to create in favor of the Collateral Agent, for the
benefit of each of the Lenders, the Issuing Lender and the Agents, legal, valid
and enforceable security interests in and Liens upon the Property of such Credit
Party constituting Collateral described therein and in the proceeds thereof. The
representations and warranties made by each of the Credit Parties in the
Collateral Documents, including representations and warranties relating to the
perfection of security interests in and Liens upon the Collateral described
therein and representations and warranties relating to the priority of such
security interests and Liens, will, from the date on which such representations
and warranties are made, be true and correct in all material respects with the
same full force and effect as if set forth in full herein.
6.6. NO DEFAULT. No Default is continuing, and no Default will result
from the making of any Credit Extensions to the Borrower. None of the Principal
Companies or any of their Subsidiaries is in default under or with respect to
any Contractual Obligation in any respect which, individually or together with
all such defaults, has had or could reasonably be expected to have a Materially
Adverse Effect.
6.7. USE OF PROCEEDS; MARGIN REGULATIONS. The proceeds of each of the
Credit Extensions are intended to be and shall be used solely for the purposes
set forth in and permitted by SECTION 8.10, and are intended to be and shall be
used in compliance with SECTION 9.14. None of the Principal Companies or any of
their Subsidiaries shall purchase Margin Stock other than purchases made in
compliance with Regulations T, U and X of the Federal Reserve Board.
6.8. FINANCIAL STATEMENTS, ETC.
(a) All balance sheets, statements of operations and other financial
data which have been or shall from time to time hereafter be furnished by the
Principal Companies or any of their Subsidiaries to any of the Agents or Lenders
for the purposes of or in connection with this Agreement or any of the
transactions contemplated hereby do and will present fairly, in all material
respects, the financial condition of the Persons involved as of the dates
thereof and the results of their operations for the periods covered thereby.
(b) The projected consolidated statements of operations and of cash
flows of the Parent Company and its Subsidiaries for each of Fiscal Years 2000
through 2006, all of which have been delivered to each of the Lenders and the
Agents prior to the date of this Agreement, have been prepared on the basis of
the reasonable assumptions accompanying them and reflect, as of the date of
preparation, the good faith estimates made on a reasonable basis by the Parent
Company of the performance of the Parent Company and its Subsidiaries for the
periods covered thereby based on such assumptions. Nothing in this PARAGRAPH (b)
shall be deemed a representation or assurance that such projections will, in
fact, be achieved.
6.9. MATERIALLY ADVERSE EFFECT.
(a) For purposes of the Credit Extensions to be made on the Closing
Date, no events or developments have occurred since December 31, 1999 which,
individually or in the aggregate, have had or could reasonably be expected to
have any Materially Adverse Effect.
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(b) For purposes of each Credit Extension requested to be made after
the Closing Date, no events or developments have occurred since the Closing Date
which, individually or in the aggregate, have had or could reasonably be
expected to have any Materially Adverse Effect.
6.10. EXISTING INDEBTEDNESS; ABSENCE OF DEFAULTS; ETC.
(a) The Existing Indebtedness of each of the Parent Company and its
Subsidiaries as of the Closing Date is identified in SECTION 6.10(a) of the
DISCLOSURE SCHEDULE. With respect to each item of Existing Indebtedness
identified in SECTION 6.10(a) of the DISCLOSURE SCHEDULE, the outstanding
principal amount of which is $5,000,000 or more on or as of the Closing Date,
the Parent Company has delivered or otherwise made available to the
Administrative Agent a true and complete copy of each Instrument evidencing such
Existing Indebtedness or pursuant to which such Existing Indebtedness was issued
or secured (including each amendment, consent, waiver or other Instrument
executed and/or delivered in respect thereof), as the same is in effect on or as
of the Closing Date. Except as otherwise disclosed in SECTION 6.10(a) of the
DISCLOSURE SCHEDULE, neither the Parent Company nor any of its Subsidiaries is
in default in the payment of any Existing Indebtedness, which payments, in the
aggregate, exceed $500,000, or in default or breach, in any material respect, in
the performance of any other material obligation under any Instrument evidencing
or governing any Existing Indebtedness (in an aggregate amount exceeding
$500,000) or pursuant to which any such Existing Indebtedness (in an aggregate
amount exceeding $500,000) was issued or secured.
(b) SECTION 6.10(b) of the DISCLOSURE SCHEDULE identifies all of the
Liens upon Property of the Parent Company or of any of its Subsidiaries that
secure Existing Indebtedness of the Parent Company or of any of its Subsidiaries
and that are in existence on or as of the Closing Date and either (i) are known
to the Parent Company or to any of its Subsidiaries on or as of the Closing
Date, or (ii) are of record on and as of the Closing Date.
(c) SECTION 6.10(c) of the DISCLOSURE SCHEDULE sets forth a true and
complete list of all Indebtedness of the Parent Company and its Subsidiaries
which is to be repaid in full on the Closing Date (including, in any event, the
Existing BMO Credit Facilities) (the "INDEBTEDNESS TO BE REFINANCED"), in each
case, showing the aggregate principal amount thereof, the name of the respective
borrower and any other Person which directly or indirectly guaranteed such
Indebtedness.
(d) SECTION 6.10(d) of the DISCLOSURE SCHEDULE also identifies each
Investment of the Parent Company or the Borrower or of any of their Subsidiaries
that is owned or held or is outstanding or in effect on or as of the Closing
Date, other than insubstantial and immaterial Investments and other than
Investments of the kind described in any of CLAUSES (b) through (e) or in CLAUSE
(g) of the definition of the term "PERMITTED INVESTMENTS".
6.11. TRANSACTIONS WITH AFFILIATES. SECTION 6.11 of the DISCLOSURE
SCHEDULE identifies (a) all (if any) Indebtedness of the Borrower or of any of
its Subsidiaries to any Affiliate of the Borrower on or as of the Closing Date,
material Contractual Obligations of the Borrower or of any of its Subsidiaries
to any Affiliate of the Borrower on or as of the Closing Date, and Investments
in the Borrower or in any of its Subsidiaries owned, held or controlled by any
Affiliate of the Borrower on or as of the Closing Date, and (b) all (if any)
Indebtedness of any Affiliate of the Borrower to the Parent Company or to any of
its Subsidiaries on or as of the Closing Date, material Contractual Obligations
of any Affiliate of the Borrower to the Parent Company or to any of its
Subsidiaries on or as of the Closing Date, and Investments in any
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Affiliate of the Borrower owned, held or controlled by the Parent Company or by
any of its Subsidiaries on or as of the Closing Date.
6.12. CORPORATE STRUCTURE, ETC.
(a) SECTION 6.12 of the DISCLOSURE SCHEDULE identifies, as of the
Effective Date, each Subsidiary of the Parent Company and of the Borrower, each
Subsidiary Guarantor and each Inactive Subsidiary. SECTION 6.12 of the
DISCLOSURE SCHEDULE identifies, with respect to each of the Principal Companies
and its Subsidiaries identified in SECTION 6.12 of the DISCLOSURE SCHEDULE, as
of the Effective Date, (i) the State or other jurisdiction of organization of
each such Person, (ii) the number of authorized and outstanding shares of each
class of Capital Stock and all other Equity Interests of each such Person, and
(iii) with respect to each Subsidiary of the Parent Company or of the Borrower,
(A) each Person which owns or controls (whether legally or beneficially) any of
the Capital Stock or other Equity Interests of each such Subsidiary, and (B) the
number of shares or units of each class or kind of Capital Stock or other Equity
Interests so owned or controlled by each such Person.
(b) Except as set forth in Section 6.12 of the DISCLOSURE SCHEDULE, the
Parent Company engages in no business activities and has no significant assets
or Property (other than Equity Interests in the Borrower) or liabilities (other
than its Guaranty provided in ARTICLE VII, its obligations in respect of the
Bridge Financing, the IPO and certain of the Existing Indebtedness and such
other liabilities as are otherwise permitted or contemplated by this Agreement).
6.13. TITLE TO PROPERTIES. All Real Property owned or leased by the
Parent Company or the Borrower or by any of their Subsidiaries as of the Closing
Date, and the nature of the interest therein, is identified in SECTION 6.13 of
the DISCLOSURE SCHEDULE. Each of the Parent Company, the Borrower and their
Subsidiaries has good record and marketable title in fee simple to, or valid
leasehold interests in, all Real Property necessary or used in the ordinary
conduct of its businesses, including all Real Property identified in SECTION
6.13 to the DISCLOSURE SCHEDULE or in the financial statements referred to in
SECTION 6.8. None of such Real Property is subject to any Liens, EXCEPT for
Permitted Liens, other Liens permitted by SECTION 9.3, and such defects in title
as, individually or in the aggregate, have not had and could not reasonably be
expected to have a Materially Adverse Effect.
6.14. TRADEMARKS, ETC. Each of the Parent Company, the Borrower and
their Subsidiaries owns (or is licensed to use) and possesses all trademarks,
trademark rights, tradenames, tradename rights, servicemarks, servicemark
rights, copyrights, patents and patent rights necessary or used in the ordinary
conduct of its businesses without any infringement upon any rights of any other
Persons, EXCEPT for such infringements as, individually or in the aggregate,
have not had and could not reasonably be expected to have a Materially Adverse
Affect.
6.15. LITIGATION. There are no actions, suits, proceedings, claims or
disputes pending or, to the knowledge of the Principal Companies, threatened at
law, in equity, in arbitration or before any Governmental Authority, against the
Parent Company, the Borrower, any of their Subsidiaries or any of their
Properties which:
(a) purport to affect or pertain to this Agreement or any of the other
Loan Documents or Transaction Documents or any of the transactions contemplated
hereby or thereby; or
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(b) have had or could reasonably be expected to have a Materially
Adverse Effect.
No injunction, writ, temporary restraining order or any other order of any
nature has been issued by any Governmental Authority purporting to enjoin or
restrain the execution, delivery or performance of this Agreement or any of the
other Loan Documents or Transaction Documents, or directing that any transaction
provided for herein or therein not be consummated as herein provided.
6.16. COMPLIANCE WITH APPLICABLE LAW, ETC. All transactions
contemplated by this Agreement and the other Loan Documents comply in all
material respects with (a) Regulations T, U and X of the Federal Reserve Board,
and (b) all other Applicable Law, EXCEPT where any failure to comply, in the
case of this CLAUSE (b), has not had and could not reasonably be expected to
have a Materially Adverse Effect.
6.17. GOVERNMENTAL REGULATION. None of the Principal Companies or any
of their Subsidiaries is an "investment company" within the meaning of the
Investment Company Act of 1940, as amended, or 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," within the meaning
of the Public Utility Holding Company Act of 1935, as amended.
6.18. TAXES. None of the Principal Companies or any of their
Subsidiaries is delinquent in the filing of any Federal or other tax returns and
reports required to be filed by it and each such Person has paid the tax thereon
shown to be due, and has paid all other material taxes, assessments, fees or
other charges levied or imposed upon it or its Properties or income, EXCEPT (in
each case) those which are being contested in good faith by appropriate
proceedings and for which adequate reserves have been provided in accordance
with GAAP. To the best knowledge of the Principal Companies or of any of their
Subsidiaries, no claim is being asserted by any Governmental Authority with
respect to any tax, fee or other charge, and there is no proposed tax
assessment, against the Parent Company, the Borrower or any of their
Subsidiaries which, individually or in the aggregate, has had or could
reasonably be expected to have a Materially Adverse Effect.
6.19. ERISA COMPLIANCE.
(a) Each Plan is in compliance in all material respects with the
applicable provisions of ERISA, the Code and other Applicable Law. There are no
pending or, to the best knowledge of the Principal Companies, threatened claims,
actions or lawsuits, or actions by any Governmental Authority, with respect to
any Plan which has resulted or could reasonably be expected to result in a
Materially Adverse Effect. There has been no prohibited transaction or violation
of the fiduciary responsibility rules with respect to any Plan which has
resulted or could reasonably be expected to result in a Materially Adverse
Effect. No ERISA Event has occurred or could reasonably be expected to occur
with respect to any Pension Plan or Multiemployer Plan. No Pension Plan has an
Unfunded Pension Liability. None of the Principal Companies or any of their
Subsidiaries or any ERISA Affiliate has incurred, nor reasonably expects to
incur, any material liability under Title IV of ERISA with respect to any
Pension Plan.
(b) None of the Principal Companies or any of their Subsidiaries or any
ERISA Affiliate has incurred, nor reasonably expects to incur, any material
liability (and no event has occurred which, with the giving of notice under
Section 4219 of ERISA, would result in such material liability) under Section
4201 or 4243 of ERISA with respect to a Multiemployer Plan.
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None of the Principal Companies or any of their Subsidiaries or any ERISA
Affiliate has transferred any Unfunded Pension Liability to any Person or
otherwise engaged in a transaction that could be subject to Section 4069 or
4212(c) of ERISA.
6.20. HAZARDOUS MATERIALS. None of the Principal Companies or any of
their Subsidiaries has caused or permitted any Hazardous Material to be disposed
of or otherwise released, to the knowledge of the Principal Companies, either
from, on or under any Property currently or formerly legally or beneficially
owned or operated by, or otherwise used by, the Parent Company, the Borrower or
any of their Subsidiaries, in any manner which, individually or in the
aggregate, has had or could reasonably be expected to have a Materially Adverse
Effect. To the knowledge of the Principal Companies, except as set forth in
Section 6.20 of the DISCLOSURE SCHEDULE, no such Property has ever been used as
a dump site or storage site for any Hazardous Materials or otherwise contains or
contained Hazardous Materials, the effect of any of which, individually or in
the aggregate, has had or could reasonably be expected to have a Materially
Adverse Effect. The failure, if any, of the Parent Company or the Borrower or of
any of their Subsidiaries, in connection with its current and former Properties
or its businesses, to be in compliance with any Environmental Law or to obtain
any permit, certificate, license, approval or other authorization under any
Environmental Law has not had, and could not reasonably be expected to have, a
Materially Adverse Effect. None of the Principal Companies or any of their
Subsidiaries has entered into, has agreed to or is subject to any judgment,
decree or order or other similar requirement of any Governmental Authority under
any Environmental Law, including relating to compliance or to investigation,
cleanup, remediation or removal of Hazardous Materials, the effect of any of
which, individually or in the aggregate, has had or could reasonably be expected
to have a Materially Adverse Effect. None of the Principal Companies or any of
their Subsidiaries has contractually assumed any material liabilities or
obligations under any Environmental Law which, individually or in the aggregate,
have had or could reasonably be expected to have a Materially Adverse Effect.
There are no facts or circumstances known to the Principal Companies that could
give rise to material liabilities with respect to Hazardous Materials or any
Environmental Law which, individually or in the aggregate, have had or could
reasonably be expected to have a Materially Adverse Effect.
6.21. LABOR CONTROVERSIES. There are no labor controversies pending or,
to the knowledge of the Principal Companies, threatened against the Parent
Company, the Borrower or any of their Subsidiaries which, individually or in the
aggregate, have had or could reasonably be expected to have a Materially Adverse
Affect.
6.22. YEAR 2000 COMPLIANCE. To the knowledge of the Principal
Companies, all computer applications that are material to its businesses and
operations are able to perform properly date-sensitive functions for all dates
before and after January 1, 2000 (that is, be "YEAR 2000 COMPLIANT"), EXCEPT (in
any case) to the extent that any failure to be Year 2000 Compliant has not had
and could not reasonably be expected to have a Materially Adverse Effect.
6.23. FCC AUTHORIZATIONS. The Parent Company and its Subsidiaries hold
such validly issued FCC main station and associated auxiliary, translator and
booster radio licenses and authorizations (collectively, the "FCC
AUTHORIZATIONS"), as are necessary to operate the Radio Stations as they are
currently operated, each of which is in full force and effect. The FCC main
station licenses for Radio Stations held or to be held by the Parent Company,
the Borrower or their Subsidiaries, after giving effect to all elements of the
Transactions that are closing or being consummated on or as of the Closing Date
(collectively, the "MAIN STATION LICENSES"), are listed in SECTION 6.23 of the
DISCLOSURE SCHEDULE, each of which FCC Authorizations has the expiration
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date indicated in SECTION 6.23 of the DISCLOSURE SCHEDULE. Neither the Parent
Company nor the Borrower has knowledge of any material adverse condition imposed
by the FCC as part of any FCC Authorization which is neither set forth on the
face thereof as issued by the FCC nor contained in the rules and regulations of
the FCC applicable generally to radio stations of the type, nature, class or
location of each Radio Station. Each Radio Station is operated by the Borrower
or its Subsidiaries in all material respects (i) in accordance with the terms
and conditions of the FCC Authorizations applicable to it, and (ii) in
accordance with the rules and regulations of the FCC and the Communications Act
of 1934, as amended (the "COMMUNICATIONS ACT"). Except as otherwise described in
SECTION 6.23 of the DISCLOSURE SCHEDULE, no proceedings are pending or, to the
knowledge of the Parent Company or the Borrower, threatened which may reasonably
be expected to result in the revocation, modification, non-renewal or suspension
of any of the FCC Authorizations, the denial of any pending applications, the
issuance of any cease and desist orders or the imposition of any material fines,
forfeitures or other administrative actions by the FCC with respect to the Radio
Stations or their operation, other than proceedings affecting the radio
broadcasting industry in general. Reports, applications and other documents
required to be filed by any Credit Party or any Subsidiary of the Parent Company
or of the Borrower with the FCC with respect to the Radio Stations have in all
material respects been timely filed and all such reports, applications and
documents are true, correct and complete in all material respects, and, except
as otherwise described in SECTION 6.23 of the DISCLOSURE SCHEDULE, neither the
Parent Company nor the Borrower has knowledge of any matters (A) which could
reasonably be expected to result in the suspension or revocation of or the
refusal to renew any of the FCC Authorizations or the imposition of any material
fines or forfeitures by the FCC upon any Credit Party or any Subsidiary of the
Parent Company or of the Borrower, or (B) which could reasonably be expected to
result in the modification or revocation of any Radio Stations' authorization to
operate as currently authorized under the rules and regulations of the FCC.
Except as otherwise described in SECTION 6.23 of the DISCLOSURE SCHEDULE, there
are no unsatisfied or otherwise outstanding notices of apparent liability or
violations issued by the FCC with respect to any Radio Station or its
operations.
ARTICLE VII.
PARENT COMPANY GUARANTY
-----------------------
7.1. THE GUARANTY. In order to induce the Lenders to enter into this
Agreement and to make Credit Extensions hereunder, and in recognition of the
direct and indirect benefits received or to be received by the Parent Company
from proceeds of Loans and from the issuance of Letters of Credit, and to induce
the Lenders or their Affiliates to enter into Interest Rate Protection
Agreements, the Parent Company hereby absolutely, unconditionally and
irrevocably guarantees, as primary obligor and not merely as surety, the full
and prompt payment when due, whether upon maturity, by acceleration or
otherwise, of any and all of the Guaranteed Obligations of the Borrower and of
each of the other Credit Parties. If any or all of the Guaranteed Obligations of
the Borrower or of any of the other Credit Parties shall at any time become and
be due and payable, the Parent Company hereby absolutely, unconditionally and
irrevocably promises to pay such Guaranteed Obligations to the Lenders and other
Secured Creditors, or order, on demand, together with any and all reasonable
fees, costs and other expenses which may be incurred or sustained by the
Administrative Agent or by any of the other Secured Creditors in enforcing or
collecting all or any of the Guaranteed Obligations. The Guaranty of the Parent
Company set forth in this ARTICLE VII constitutes a guaranty of payment and not
of collection.
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7.2. INSOLVENCY PROCEEDINGS. Additionally, the Parent Company
absolutely, unconditionally and irrevocably guarantees the immediate payment in
full of any and all of the Guaranteed Obligations of the Borrower and of each of
the other Credit Parties (whether or not any of such Guaranteed Obligations are
then due or payable by the Borrower or by any of the other Credit Parties) upon
the occurrence in respect of the Borrower or any of the other Credit Parties of
any of the Events of Default specified in SECTION 10.1.6 or SECTION 10.1.7, and
the Parent Company absolutely, unconditionally and irrevocably promises to pay
all of such Guaranteed Obligations to the Secured Creditors, or order, on
demand, in lawful money of the United States.
7.3. NATURE OF LIABILITY.
(a) The Obligations and other liabilities of the Parent Company under
its Guaranty are in addition to and independent of any security or other
Collateral for or other guaranties of all or any part of the Guaranteed
Obligations, whether executed and delivered by the Parent Company, any other
guarantor or any other Person, and the Obligations and other liabilities of the
Parent Company under its Guaranty shall not be affected or impaired by (i) any
direction as to application of any payment by the Borrower or any other Credit
Party or by any other Person, (ii) any other continuing or other guaranty,
undertaking or maximum liability of any other guarantor or of any other Person
as to all or any part of the Guaranteed Obligations, (iii) any payment on or any
reduction of any such other guaranty or undertaking, (iv) any payment made to
the Administrative Agent or to any of the other Secured Creditors on the
Guaranteed Obligations which the Administrative Agent or such other Secured
Creditors shall repay to the Borrower or to any other Credit Parties in any
Insolvency Proceeding or other legal proceeding, and the Parent Company
irrevocably waives any right to the deferral or modification of any of its
Obligations under its Guaranty by reason of any such Insolvency Proceeding or
other legal proceeding, (v) any action or inaction by any of the Secured
Creditors of the kind referred to in SECTION 7.5, or (vi) any invalidity,
irregularity or unenforceability of all or any part of the Guaranteed
Obligations or of any Collateral or other security therefor.
(b) If any claim is ever made upon the Administrative Agent or upon any
other Secured Creditor for the repayment or recovery of any amount or amounts
received in payment or on account of any of the Guaranteed Obligations, and any
of such Secured Creditors repays all or any part of such amount by reason of (i)
any judgment, decree or order of any court or other Governmental Authority
having jurisdiction over such Secured Creditor or any of its Property, or (ii)
any settlement or compromise of any such claim effected by such Secured Creditor
with any such claimant (including the Borrower), then, and in any such event,
the Parent Company agrees that any such judgment, decree, order, settlement or
compromise shall be binding upon the Parent Company, and, notwithstanding the
termination or cancellation of any Instrument evidencing any Obligations or
other liabilities of the Borrower or of any other Credit Party, the Parent
Company shall nevertheless be and remain liable to such Secured Creditor under
its Guaranty for the amount so repaid or recovered to the same extent as if such
amount had never originally been received by any such Secured Creditor.
7.4. INDEPENDENT OBLIGATIONS, ETC. The Obligations of the Parent
Company under its Guaranty are independent of the obligations of any other
guarantor or of the Borrower, and a separate action or actions may be brought
and prosecuted against the Parent Company, whether or not any action is brought
against any other guarantor or against the Borrower, and whether or not any
other guarantor or the Borrower shall be joined in any such action or actions.
The Parent Company irrevocably waives, to the fullest extent permitted by law,
the benefit of any statute of
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limitations affecting its Obligations or other liabilities under its Guaranty or
the enforcement thereof. Any payment by the Borrower or by any other Credit
Party or any other circumstance which operates to toll any statute of
limitations as to the Borrower or any such other Credit Party shall operate to
toll the statute of limitations as to the Parent Company. The Guaranty of the
Parent Company set forth in this ARTICLE VII is a continuing and irrevocable
guaranty, and all of the Guaranteed Obligations and other liabilities to which
such Guaranty applies or may apply under the terms hereof shall be conclusively
presumed to have been created in reliance on such Guaranty.
7.5. AUTHORIZATION, ETC.
(a) The Parent Company hereby irrevocably authorizes each of the
Administrative Agent, the Lenders and the other Secured Creditors, in each case,
without the consent of the Parent Company, and without any notice to the Parent
Company or demand upon the Parent Company (except such as shall be required by
Applicable Law and cannot be waived), and without affecting or impairing any of
the Obligations or other liabilities of the Parent Company under its Guaranty,
from time to time to:
(i) change the manner, place or terms of payment of, and/or
change or extend the time of payment of, or renew, increase, accelerate
or alter, all or any part of the Guaranteed Obligations (including any
increase or decrease in the rate of interest thereon), any Collateral
or other security therefor, or any liability incurred directly or
indirectly in respect thereof, and the Guaranty of the Parent Company
herein made shall apply to the Guaranteed Obligations as so changed,
extended, renewed or altered from time to time;
(ii) take and hold any security for the payment of all or any
part of the Guaranteed Obligations, and/or sell, exchange, release,
surrender, realize upon or otherwise deal with in any manner and in any
order any Property by whomsoever at any time pledged or mortgaged to
secure, or howsoever securing, all or any part of the Guaranteed
Obligations or any other liabilities (including any of those hereunder)
incurred directly or indirectly in respect thereof or hereof;
(iii) exercise or refrain from exercising any rights or
remedies against the Borrower, any other guarantor, any other Credit
Party or any other Person;
(iv) settle or compromise all or any part of the Guaranteed
Obligations, any Collateral or other security therefor or any liability
(including any of those hereunder) incurred directly or indirectly in
respect thereof or hereof, or subordinate the payment of all or any
part thereof to the payment of any liability of the Borrower or of any
other Credit Party to any of its creditors;
(v) apply any sums by whomsoever paid or howsoever realized to
any liability or liabilities of the Borrower or of any other Credit
Party to the Secured Creditors regardless of what Guaranteed
Obligations of the Borrower or of any other Credit Party shall then
remain unpaid;
(vi) release or substitute any one or more endorsers,
guarantors, the Borrower, any other Credit Parties or any other
obligors;
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(vii) consent to or waive any breach of any act, omission or
default under this Agreement, any of the other Loan Documents or any of
the Instruments referred to herein or therein, or otherwise amend,
modify, supplement, terminate or cancel any provision of this
Agreement, any of the other Loan Documents or any of such other
Instruments; and/or
(viii) take any other action which would, under otherwise
Applicable Law, give rise to a legal or equitable discharge of the
Parent Company from any of its Obligations or other liabilities under
its Guaranty.
(b) The Obligations of the Parent Company under its Guaranty are
absolute, unconditional and irrevocable in every respect and shall remain in
full force and effect without regard to, and shall not be released, suspended,
discharged, terminated or otherwise impaired or affected by, any of the
circumstances or occurrences described or referred to in PARAGRAPH (a) of this
SECTION 7.5 or in CLAUSES (i) through (x) of SECTION 17(a) of the Pledge
Agreement. The Parent Company hereby absolutely, unconditionally and irrevocably
waives all suretyship and other similar defenses to the payment and performance
by the Parent Company of any of its Obligations and other liabilities to the
Administrative Agent or to any of the other Secured Creditors under its
Guaranty.
(c) The agreements and Obligations of the Parent Company under its
Guaranty are separate and independent from and in addition to the agreements and
Obligations of each of the other Guarantors and shall be enforceable by the
Administrative Agent against the Parent Company notwithstanding (i) the failure
of any other Guarantor to execute and deliver a counterpart of the Subsidiary
Guaranty, (ii) the invalidity, unenforceability or inadmissibility in evidence
of the Subsidiary Guaranty against any one or more of the Subsidiary Guarantors,
(iii) the release by the Administrative Agent of all or any of the Subsidiary
Guarantors from all or any part of their Obligations under the Subsidiary
Guaranty, or the release by the Administrative Agent of all or any part of the
Collateral granted by all or any of the other Guarantors to the Administrative
Agent under any of the Loan Documents, or (iv) any waiver, termination or
cancellation by the Administrative Agent of, or any consent by the
Administrative Agent to any departure from, any of the agreements or obligations
of any of the Subsidiary Guarantors under the Subsidiary Guaranty on any
occasion or occasions, or any failure by the Administrative Agent to enforce any
of the agreements or Obligations of any of the Subsidiary Guarantors under the
Subsidiary Guaranty on any occasion or occasions.
7.6. SUBORDINATION. Any of the Indebtedness of the Borrower or of any
other Credit Party now or hereafter owing to or held by the Parent Company is
hereby subordinated to the Guaranteed Obligations of the Borrower or of any such
other Credit Party to the Administrative Agent and the other Secured Creditors;
and, if the Administrative Agent shall so request when any Event of Default
shall be continuing, all of such Indebtedness of the Borrower or of any other
such Credit Party to the Parent Company shall be collected, enforced and
received by the Parent Company as trustee and in trust for the benefit of the
Secured Creditors and shall be paid over to the Administrative Agent on behalf
of the Secured Creditors on account of the Guaranteed Obligations of the
Borrower and of such other Credit Parties to the Secured Creditors, but without
affecting or impairing in any manner the Obligations of the Parent Company under
its Guaranty. Prior to the transfer by the Parent Company of any promissory note
or other Instrument evidencing any of the Indebtedness of the Borrower or of any
other Credit Parties to the Parent Company, the Parent Company shall mark such
note or other Instrument with a legend that the same is subject to subordination
upon the terms contained herein.
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7.7. ADDITIONAL WAIVERS.
(a) The Parent Company irrevocably waives any right (except such as
shall be required by Applicable Law and cannot be waived) to require the
Administrative Agent or any of the other Secured Creditors to (i) proceed
against the Borrower, any Guarantor or any other Person, (ii) proceed against or
exhaust any Collateral or other security received from the Borrower, any
Subsidiary Guarantor or any other Person, or (iii) pursue any other remedy
available to the Administrative Agent or to any of the other Secured Creditors.
The Parent Company irrevocably waives any defense based on or arising out of any
defense available to the Borrower, any Subsidiary Guarantor or any other Person,
other than payment in full of the Guaranteed Obligations, including, without
limitation, any defense based on or arising out of the disability of the
Borrower, any other guarantor or any other Person, or based on the
unenforceability of all or any part of the Guaranteed Obligations from any
cause, or the cessation from any cause of the liabilities of the Borrower or of
any other Credit Party, other than payment in full of all the Guaranteed
Obligations. The Administrative Agent and the other Secured Creditors may, at
their election, foreclose on any Collateral or other security held by the
Administrative Agent, the Collateral Agent or any of the other Secured Creditors
by one or more judicial or nonjudicial Sales, whether or not any aspect of any
such Sale is commercially reasonable, or exercise any other right or remedy that
the Administrative Agent or any of the other Secured Creditors may have against
the Borrower, any other Credit Party or any other Person, or against any
Collateral or other security, without affecting or impairing in any way the
liability of the Parent Company hereunder, EXCEPT to the extent that the
Guaranteed Obligations have been paid in full in cash. The Parent Company
irrevocably waives any defense arising out of any such election by the
Administrative Agent or by any of the other Secured Creditors, even though such
election operates to impair or extinguish any right of reimbursement or
subrogation or other right or remedy of the Parent Company against the Borrower,
any other Credit Party or any other Person, or against any Collateral or other
security.
(b) The Parent Company irrevocably waives all presentments, demands for
performance, protests and notices, including, without limitation, notices of
nonperformance, notices of protest, notices of dishonor, notices of acceptance
of its Guaranty, and notices of the existence, creation or incurrence of any new
or additional Guaranteed Obligations. The Parent Company assumes all
responsibility for being and keeping itself informed of the financial condition
and Property of the Borrower and of each of the other Credit Parties, and of all
other circumstances bearing upon the risk of nonpayment of any of the Guaranteed
Obligations and the nature, scope and extent of the risks which the Parent
Company assumes and incurs hereunder, and agrees that the Administrative Agent
and the other Secured Creditors shall have no duty to advise the Parent Company
of any information known to them regarding any of such circumstances or risks.
7.8. EFFECTIVENESS OF GUARANTY. The Guaranty of the Parent Company, and
all of the Obligations of the Parent Company under its Guaranty, shall be
irrevocable and shall remain in full force and effect from and after the date of
this Agreement and until all of the Commitments, the Letter of Credit Commitment
and the Letters of Credit shall have terminated and all of the Obligations shall
have been paid and performed in full.
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ARTICLE VIII.
AFFIRMATIVE COVENANTS
---------------------
Each of the Principal Companies, jointly and severally, agrees with
each of the Lenders and the Agents and warrants that, from and after the date of
this Agreement and until all of the Commitments, the Letter of Credit Commitment
and the Letters of Credit shall have terminated and all of the Obligations shall
have been paid and performed in full, each of the Principal Companies will, and
will cause each of its Subsidiaries to:
8.1. FINANCIAL INFORMATION, ETC. Deliver to the Administrative Agent,
in form and detail reasonably satisfactory to the Administrative Agent and the
Required Lenders, with sufficient copies for each Lender:
(a) as soon as available, but not later than 90 days after the end of
each Fiscal Year: (i) a copy of the audited consolidated balance sheet of the
Parent Company and its consolidated Subsidiaries as at the end of such year and
the related consolidated statements of operations, stockholders' equity and cash
flows for such Fiscal Year, setting forth in each case in comparative form the
figures for the previous Fiscal Year, and accompanied by the opinion of the
Independent Public Accountant, which opinion shall state that such consolidated
financial statements present fairly, in all material respects, the financial
position and the results of operations for the periods indicated in conformity
with GAAP applied on a basis consistent with prior years (except for changes
agreed upon by the Parent Company and such auditors which are disclosed and
described in such statements). Such opinion shall be issued by the Independent
Public Accountant without Impermissible Qualification; and (ii) copies of
consolidating balance sheets as at the end of such Fiscal Year, and related
consolidating statements of operations for such Fiscal Year of the Parent
Company and its Subsidiaries (with comparable information as at the end of and
for the previous Fiscal Year) certified as to fairness of presentation by the
chief financial officer of the Parent Company;
(b) as soon as available, but not later than 45 days after the end of
each of the first three Fiscal Quarters of each Fiscal Year: (i) a copy of the
unaudited consolidated balance sheet of the Parent Company and its consolidated
Subsidiaries as at the end of such quarter and the related consolidated
statements of operations, stockholders' equity and cash flows for such quarter
and for the portion of the Fiscal Year then ended, and certified by the chief
financial officer of the Parent Company as being complete and correct in all
material respects and fairly presenting in all material respects, in accordance
with GAAP (except for the absence of footnotes and subject to normal year-end
adjustments), the financial position and the results of operations of the Parent
Company and its consolidated Subsidiaries; and (ii) copies of consolidating
balance sheets as at the end of such Fiscal Quarter, and related consolidating
statements of operations for such Fiscal Quarter and for the portion of the
Fiscal Year then ended of the Parent Company and its Subsidiaries (with
comparable information as at the end of and for the corresponding Fiscal Quarter
of the prior Fiscal Year and for the corresponding portion of such prior Fiscal
Year) certified as to fairness of presentation by the chief financial officer of
the Parent Company;
(c) as soon as available, but not later than 30 days after the end of
each calendar month, such financial information regarding the results of the
operations of the Radio Stations in each Market, as the Administrative Agent
shall from time to time request; and
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(d) not later than January 31 of each Fiscal Year of the Parent
Company, a copy of the annual business plan and budget for such Fiscal Year for
the Parent Company and its Subsidiaries, including, in each case, budgeted
results for each Fiscal Quarter and for the Fiscal Year as a whole, together
with an explanation of any differences between the sum of the individual budgets
and the consolidated totals, and upon the delivery of any financial statements
relating to any period included in such budget, a summary comparing the actual
financial performance of the Parent Company and its Subsidiaries during such
period to that provided for in such budget.
8.2. CERTIFICATES; OTHER INFORMATION. Furnish to the Administrative
Agent, in form and detail reasonably satisfactory to the Administrative Agent
and the Required Lenders, with sufficient copies for each Lender:
(a) concurrently with the delivery of the financial statements referred
to in SECTION 8.1(a) and SECTION 8.1(b), a Compliance Certificate properly
completed in compliance with the terms hereof and duly executed by the chief
financial officer of each Principal Company;
(b) concurrently with the delivery of the financial statements referred
to in SECTION 8.1(a) and SECTION 8.1(b), a Leverage Ratio Certificate properly
completed in compliance with the terms hereof and duly executed by the chief
financial officer of each Principal Company;
(c) promptly after the same are first sent, true and complete copies of
all financial statements and other reports which the Parent Company shall send
to its shareholders; and, promptly after the same are first filed, copies of all
financial statements and regular, periodic or special reports which the Parent
Company shall make to, or file with, the Securities and Exchange Commission; and
(d) promptly, such additional business, financial and other information
with respect to the Parent Company, the Borrower or any of their Subsidiaries as
the Administrative Agent, at the request of any Lender, may from time to time
reasonably request.
8.3. NOTICES. Upon any Responsible Officer of the Parent Company or of
the Borrower first obtaining knowledge thereof, give written notice (accompanied
by a reasonably detailed written explanation with respect thereto) promptly to
the Administrative Agent and to each Lender of:
(a) the occurrence of any Default;
(b) any litigation, arbitration or governmental investigation or
proceeding not previously disclosed by the Parent Company or by the Borrower to
the Administrative Agent and to each of the Lenders which has been instituted
or, to the best knowledge of the Principal Companies, has been threatened
against the Parent Company, the Borrower or any of their Subsidiaries or to
which any of their Properties is subject and (i) which has had or could
reasonably be expected to have a Materially Adverse Effect, or (ii) which seeks
to enjoin, limit or restrict the performance by any of the Credit Parties of any
of its Obligations under, or challenges the validity, binding effect or
enforceability of, this Agreement, any of the other Loan Documents or any of the
transactions contemplated hereby or thereby;
(c) any development which shall have occurred in any litigation,
arbitration or governmental investigation or proceeding previously disclosed by
the Principal Companies to the
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Administrative Agent and to each of the Lenders and which has had or could
reasonably be expected to have a Materially Adverse Effect;
(d) any of the following events affecting the Parent Company, the
Borrower or any ERISA Affiliate, together with a copy of any notice with respect
to any such event that may be required to be filed with any Governmental
Authority and any notice delivered by any Governmental Authority to the Parent
Company, the Borrower, any of their Subsidiaries or any ERISA Affiliate with
respect to such event: (i) an ERISA Event; or (ii) if any of the representations
and warranties in SECTION 6.19 shall cease to be true and correct in any
material respect; or
(e) the occurrence of any Change of Control.
8.4. MAINTENANCE OF CORPORATE EXISTENCE, ETC. Cause to be done at all
times all things necessary to maintain and preserve its separate existence as a
corporation, limited liability company or partnership, as the case may be,
EXCEPT, in each case, as and to the extent otherwise expressly permitted by
SECTION 9.5.
8.5. FOREIGN QUALIFICATION, ETC. Cause to be done at all times all
things necessary to maintain and preserve its material rights and franchises and
to be duly qualified to do business and to be in good standing as a foreign
corporation or (as the case may be) foreign limited liability company, foreign
partnership or other foreign entity in each jurisdiction where the nature of
such business makes such qualification necessary and where the failure so to
maintain and preserve its material rights and franchises or so to qualify will
have or could reasonably be expected to have a Materially Adverse Effect.
8.6. PAYMENT OF TAXES; ETC. Pay and discharge, as the same become due
and payable or before the same become delinquent, as the case may be, all
material federal, state and local taxes, assessments and other governmental
charges or levies against or on any of its income, profits or Property, as well
as all material claims of any kind, which, if unpaid, might become a Lien upon
any of its Properties, and pay (before they become delinquent) all other
material obligations and liabilities; PROVIDED, HOWEVER, that the foregoing
shall not require the Parent Company, the Borrower or any of their Subsidiaries
to pay or discharge any such tax, assessment, charge, levy, Lien, obligation or
liability (a) so long as it shall contest the validity thereof in good faith by
appropriate proceedings and shall have set aside on its books adequate reserves
in accordance with GAAP with respect thereto, or (b) if the failure to make such
payment or to effect such discharge will not have and could not reasonably be
expected to have a Materially Adverse Effect.
8.7. MAINTENANCE OF PROPERTY; INSURANCE. Keep all of its material
tangible Property, systems and facilities that are useful and necessary in its
business in such condition as is sufficient for the operation of its business in
the ordinary course, ordinary wear and tear and obsolescence excepted, and
maintain with financially sound and reputable insurance companies insurance on
all of its Property in at least such amounts and against at least such risks as
are usually insured against by companies engaged in the same or similar
businesses.
8.8. COMPLIANCE WITH LAWS, ETC.
(a) Obtain all such material approvals and take all such other action
with respect to any Governmental Authority (including the FCC) as shall from
time to time be required for the
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execution, delivery or performance by the Parent Company or the Borrower or by
any of their Subsidiaries of this Agreement or any of the other Loan Documents,
and duly perform and comply in all material respects with all of the material
terms and conditions of all approvals so obtained.
(b) Comply in all material respects with all Applicable Laws,
including, without limitation, all Environmental Laws, the Communications Act,
all rules and regulations promulgated by the FCC and all FCC Authorizations,
EXCEPT, in each case, where the failure so to comply will not have and could not
reasonably be expected to have a Materially Adverse Effect and could not
reasonably be expected to result in the loss, cancellation, rescission,
termination or revocation of any material FCC Authorization granted to the
Parent Company, the Borrower or any of their Subsidiaries. Within ten (10)
Business Days after the Effective Date, the Principal Companies shall have made
all (if any) necessary filings with the FCC in connection with the execution,
delivery and performance of the Loan Documents or the transactions contemplated
thereby, including, without limitation, the applicable FCC filings identified
and described in SECTION 6.3 of the DISCLOSURE SCHEDULE.
8.9. BOOKS AND RECORDS. Keep proper books and records reflecting all of
its material business affairs and transactions in accordance with GAAP and
Applicable Law, and permit the Administrative Agent or any of its
representatives, and each of the Lenders and their representatives, upon
reasonable notice at reasonable times and intervals during ordinary business
hours, to visit and inspect any of its offices and Properties, discuss financial
matters relating to the Parent Company, the Borrower or any of their
Subsidiaries with any of their officers and the Independent Public Accountant
(and each of the Principal Companies hereby irrevocably authorizes the
Independent Public Accountant to discuss financial matters pertaining to the
Principal Companies with the Administrative Agent or any of the Administrative
Agent's representatives), and examine and make abstracts or photocopies from any
of its books or other corporate records. Except as otherwise provided by the
last sentence of this SECTION 8.9, all costs and expenses incurred by the
Administrative Agent or any of its representatives or by the Lenders or their
representatives shall be for the account of the Person incurring such cost or
expense unless any Event of Default shall be continuing, in which event all of
such costs and expenses shall be for the account of the Parent Company and the
Borrower. The Administrative Agent shall have the right to perform a collateral
audit at the offices and at the business and Property locations of each of the
Parent Company, the Borrower and their Subsidiaries once during each Fiscal Year
so long as no Events of Default shall be continuing, and, if any Events of
Default shall be continuing, at such additional time or times during each Fiscal
Year as the Administrative Agent shall in its sole discretion determine to be
necessary or appropriate. All of the reasonable out-of-pocket costs and expenses
incurred or sustained by the Administrative Agent in connection with the conduct
of such collateral audits shall be for the account of the Parent Company and the
Borrower; PROVIDED, HOWEVER, that the Parent Company and the Borrower shall not
be responsible for the costs and expenses of more than one (1) such collateral
audit per Fiscal Year conducted by the Administrative Agent while no Events of
Default are continuing.
8.10. USE OF PROCEEDS. Use the proceeds of (a) the Revolving Loans to
(i) finance, in part, the Refinancing and the Pending Acquisitions, (ii) to pay
fees and expenses incurred in connection with the Pending Acquisitions, and
(iii) for working capital and general corporate requirements of the Parent
Company, the Borrower and their Subsidiaries, and (b) the Incremental Loans to
finance Acquisitions and to pay fees and expenses incurred in connection
therewith, in each case, if and to the extent permitted hereunder.
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8.11. INTEREST RATE PROTECTION. In the case of the Borrower, if the IPO
shall not have been consummated by April 30, 2000, enter into by May 31, 2000
and maintain in effect for a period of not less than two (2) consecutive years
thereafter, one or more Interest Rate Protection Agreements providing interest
rate protection reasonably satisfactory to the Administrative Agent with respect
to an aggregate notional amount of principal that shall at no time during such
two (2) year period be less than fifty percent (50%) of the aggregate principal
amount of all of the Loans from time to time outstanding. Each of the Interest
Rate Protection Agreements entered into by the Borrower from time to time
pursuant to this SECTION 8.11 shall contain terms and conditions reasonably
satisfactory to the Administrative Agent.
8.12. IDENTIFICATION OF SUBSIDIARIES; PROVISION OF COLLATERAL.
(a) If and whenever any direct or indirect Subsidiary of the Parent
Company or of the Borrower (other than an Inactive Subsidiary) shall be created,
formed or acquired by the Parent Company or the Borrower or by any of their
Subsidiaries at any time after the date hereof, and if and whenever any Inactive
Subsidiary shall cease to be an Inactive Subsidiary:
(i) furnish promptly to the Administrative Agent a written notice
identifying such Subsidiary and setting forth with respect to such Subsidiary
the information required by SECTION 6.12 with respect to the Subsidiaries of the
Parent Company and of the Borrower as of the Closing Date; and
(ii) promptly comply with, and cause such Subsidiary to comply with,
the applicable terms of PARAGRAPH (b).
(b) Promptly after the consummation of any Acquisition or the creation,
formation or acquisition of any new Subsidiary of the Parent Company or of the
Borrower (other than an Inactive Subsidiary), and promptly after any Inactive
Subsidiary shall cease to be an Inactive Subsidiary:
(i) in the case of any acquisition of Equity Interests of any
such Subsidiary by the Parent Company or the Borrower or by any of
their Subsidiaries, whether in connection with the creation, formation
or acquisition of a Subsidiary or otherwise: (A) deliver or cause to be
delivered to the Collateral Agent in pledge all of the stock
certificates representing such Equity Interests, such Equity Interests
to be held by the Collateral Agent in pledge in accordance with the
terms of the Pledge Agreement, or (as the case may be) otherwise comply
with the terms of the Pledge Agreement applicable to the creation and
perfection of security interests in such Equity Interests; and (B)
cause such Subsidiary to execute and deliver to the Administrative
Agent (1) accession agreements in form and substance reasonably
satisfactory to the Administrative Agent upon the terms of which such
Subsidiary shall become a party to and bound by each of the Subsidiary
Guaranty, the Security Agreement and the Pledge Agreement, the effect
of which shall be that, as of the date set forth in such accession
agreements, such Subsidiary shall become a party to each such
Instrument and be bound by the terms thereof, (2) if such Subsidiary
owns any U.S. registered trademarks, a Trademark Security Agreement
covering such trademarks, (3) if such Subsidiary owns any U.S.
registered copyrights, a Copyright Security Agreement covering such
copyrights, and (4) such Uniform Commercial Code financing statements
as shall be required to perfect the security interests and Liens in
Collateral being pledged and assigned by such Subsidiary pursuant to
the Security Agreement and the Pledge Agreement;
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(ii) in the case of any Acquisition of tangible or intangible
personal Property by the Parent Company or the Borrower or by any of
their Subsidiaries, deliver or cause to be delivered to the
Administrative Agent, duly executed by the Persons acquiring such
Property (A) such Uniform Commercial Code financing statements as shall
be required to perfect the security interest and Liens in the Property
so acquired, (B) if such Property includes any U.S. registered
trademarks, a Trademark Security Agreement covering such trademarks,
and (C) if such Property includes any U.S. registered copyrights, a
Copyright Security Agreement covering such copyrights; and
(iii) in each such case, comply with all of the other
applicable provisions of SECTION 8.13 and provide to the Administrative
Agent all such other documentation, including, without limitation, one
or more opinions of counsel reasonably satisfactory to the
Administrative Agent, Governing Documents, and resolutions, as the
Administrative Agent shall reasonably deem necessary or advisable in
connection with such Acquisition of Property or the creation, formation
or acquisition of such Subsidiary.
(c) Each of the Principal Companies understands and agrees that time is
of the essence of the covenants of each of the Principal Companies under
PARAGRAPHS (a) and (b) of this SECTION 8.12, and, accordingly, each of the
Principal Companies covenants that it will, and will cause its Subsidiaries to,
comply in all material respects with each reasonable request or requirement of
the Administrative Agent, Collateral Agent or (as the case may be) Required
Lenders made pursuant to such paragraphs of this SECTION 8.12, each such request
or requirement to be complied with promptly but, in any event, within sixty (60)
days after the date on which the Parent Company or the Borrower shall have first
received from the Administrative Agent written notice of such request or
requirement.
(d) Within seven (7) days after the issuance by the FCC of its Consent
for the Pro Forma Transfer of Control, and in any event not later than March 31,
2000, the Parent Company will transfer to the Borrower (by way of a contribution
to the capital of the Borrower) all of the Equity Interests of every description
in Subsidiaries of the Parent Company directly held by it, and each of the
Principal Companies agrees to take all steps necessary to create and deliver
replacement stock certificates and stock powers for each of the Subsidiaries
effected by the transfer of ownership from the Parent Company to the Borrower.
Additionally, the Parent Company, the Borrower and each of their Subsidiaries
agree to provide to the Administrative Agent all such other documentation, and
take all additional steps, as the Administrative Agent shall reasonably deem
necessary or advisable.
8.13. ADDITIONAL SECURITY; FURTHER ASSURANCES.
(a) Grant to the Collateral Agent, for the benefit of each of the
Lenders, the Issuing Lender and the Agents, security interests and Liens in such
personal Property of the Parent Company, the Borrower and their Subsidiaries as
are not covered by the Collateral Documents and as may be requested from time to
time by the Administrative Agent or by the Required Lenders. All such security
interests and Liens shall be granted pursuant to documentation reasonably
satisfactory in form and substance to the Administrative Agent (collectively,
"ADDITIONAL SECURITY DOCUMENTS"), and shall be effective to create in favor of
the Collateral Agent, for the benefit of each of the Lenders, the Issuing Lender
and the Agents, legal, valid and enforceable security interests in and Liens
upon the Collateral described therein and in the proceeds thereof. The
Additional Security Documents or Instruments related thereto shall be duly
recorded or filed in such manner and in such places as are required by
Applicable Law in order to
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establish, perfect, preserve and protect the Liens in favor of the Collateral
Agent required to be granted pursuant to the Additional Security Documents, and
all taxes, fees and other charges payable in connection therewith shall be
punctually paid in full by the Parent Company and the Borrower.
(b) Make, execute, endorse, acknowledge, file and/or deliver to the
Collateral Agent from time to time such vouchers, invoices, schedules,
confirmatory assignments, conveyances, financing statements, transfer
endorsements, powers of attorney, certificates, reports and other assurances or
Instruments and take such further steps relating to the Collateral covered by
any of the Collateral Documents as the Collateral Agent may from time to time
reasonably require. Furthermore, the Principal Companies shall cause to be
delivered to the Collateral Agent such opinions of counsel and other related
documents as may be reasonably requested from time to time by the Collateral
Agent.
(c) Each of the Principal Companies understands and agrees that time is
of the essence of the covenants of the Principal Companies under PARAGRAPHS (a)
and (b) of this SECTION 8.13, and, accordingly, each of the Principal Companies
covenants that it will, and will cause its Subsidiaries to, comply in all
material respects with each reasonable request or requirement of the
Administrative Agent, Collateral Agent or (as the case may be) Required Lenders
made pursuant to such paragraphs of this SECTION 8.13, each such request or
requirement to be complied with promptly but, in any event, within sixty (60)
days after the date on which the Parent Company or the Borrower shall have first
received from the Administrative Agent written notice of such request or
requirement.
8.14. YEAR 2000 COMPLIANCE. Perform all acts reasonably necessary to
ensure that each of the Principal Companies and its Subsidiaries shall remain
Year 2000 Compliant and use all commercially reasonable efforts to ensure that
none of the Principal Companies or their Subsidiaries shall be materially
adversely affected as a consequence of the failure by any material supplier,
vendor or customer of the Parent Company, the Borrower or their Subsidiaries to
remain Year 2000 Compliant, EXCEPT (in each case) to the extent that any failure
to be Year 2000 Compliant will not have and could not reasonably be expected to
have any Materially Adverse Effect.
ARTICLE IX.
NEGATIVE COVENANTS
------------------
Each of the Principal Companies, jointly and severally, agrees and
covenants with each of the Lenders, the Issuing Lender and the Agents and
warrants that, from and after the date of this Agreement and until all of the
Commitments, the Letter of Credit Commitment and Letters of Credit shall have
terminated and all of the Obligations shall have been paid and performed in
full, neither of the Principal Companies will, and neither of the Principal
Companies will cause or permit any of its Subsidiaries to:
9.1. LIMITATIONS ON LINES OF BUSINESS. At any time undertake, conduct
or transact, directly or indirectly, any businesses EXCEPT businesses which are
primarily in the Line of Business.
9.2. INDEBTEDNESS. Incur or permit to exist, or otherwise assume or
become or be liable in respect of or be responsible for, any Indebtedness;
EXCEPT:
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(a) Indebtedness of the Parent Company or the Borrower or of any of
their Subsidiaries under any of the Loan Documents or in respect of any of the
Credit Extensions or any of the other Obligations;
(b) Permitted Indebtedness;
(c) Indebtedness of the Parent Company or of the Borrower consisting of
dividends or other distributions on or with respect to its Equity Interests
declared but yet not paid, but only if and to the extent that such dividends or
other distributions are, at the time of declaration, expressly permitted by
SECTION 9.7;
(d) Indebtedness of any of the Subsidiaries of the Borrower to the
Borrower or to any of the Borrower's other Subsidiaries;
(e) Indebtedness of the Borrower to any of its Subsidiaries;
(f) Indebtedness of the Borrower or of any of its Subsidiaries to the
Parent Company; PROVIDED, HOWEVER, that: (i) such Indebtedness shall be
evidenced and governed by a promissory note or other Instrument, satisfactory in
form and substance to the Administrative Agent, which shall be pledged to the
Collateral Agent pursuant to and upon the terms contained in the Pledge
Agreement; (ii) neither the Borrower nor any of its Subsidiaries shall at any
time be obligated or otherwise required to make any Restricted Payments of or on
account of any such Indebtedness; and (iii) no part of such Indebtedness shall
be secured by any security interests or Liens on any Property of the Borrower or
of any of its Subsidiaries;
(g) Interest Rate Protection Agreements entered into by the Borrower
pursuant to SECTION 8.11;
(h) Indebtedness (including Capital Lease Obligations) created or
incurred by the Borrower or by any of its Subsidiaries from time to time after
the date hereof in connection with the acquisition, lease, construction or
improvement by such Person from time to time after the date hereof and in the
ordinary course of business of Property used or to be used in the ordinary
course of the business of the Borrower or of any of its Subsidiaries; PROVIDED,
HOWEVER, that (i) any Liens on such Property securing any such Indebtedness of
any such Person constitute Liens permitted by CLAUSE (c) of SECTION 9.3; and
(ii) in the case of Indebtedness described in this CLAUSE (h), the aggregate
amount of all of such Indebtedness of the Borrower or of any of its Subsidiaries
(determined on a consolidated basis) shall not at any time exceed (A)
$5,000,000, so long as the Consolidated Leverage Ratio, determined as of the
then most recent Covenant Determination Date is greater than 4.50:1.00, or (B)
if the Consolidated Leverage Ratio so determined is 4.50:1.00 or less, then
$10,000,000;
(i) Permitted Acquisition Debt;
(j) Permitted Subordinated Debt;
(k) other Indebtedness of the Borrower or of any of its Subsidiaries
not otherwise permitted by any of the other CLAUSES of this SECTION 9.2;
PROVIDED, HOWEVER, that the aggregate amount of all of such other Indebtedness
of the Borrower and its Subsidiaries (determined on a consolidated basis)
incurred pursuant to this CLAUSE (k) shall not at any time exceed $2,000,000;
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(l) Indebtedness of the Parent Company under or in respect of the
Bridge Notes and the Exchange Notes; PROVIDED, HOWEVER, that the aggregate
original principal amount of all of such Indebtedness shall not exceed
$25,500,000; and
(m) Guaranty Obligations of any of the Subsidiary Guarantors under or
with respect to the Bridge Notes; PROVIDED, HOWEVER, that all of such Guaranty
Obligations shall at all times remain unsecured and be expressly subordinated
and made junior in right of payment to the Obligations upon terms and conditions
reasonably satisfactory to the Administrative Agent.
9.3. LIENS. Create, incur or assume, or permit to exist, any Liens upon
any of its Property (including any Equity Interests of any of its Subsidiaries),
whether now owned or hereafter created, arising or acquired; EXCEPT:
(a) Liens created by any of the Collateral Documents or other Loan
Documents and securing the payment or performance of any of the Credit
Extensions or any of the other Obligations;
(b) Permitted Liens;
(c) Liens created or incurred by the Borrower or by any of its
Subsidiaries from time to time after the date hereof to secure the payment of
the cost of Property acquired, leased, constructed or improved by such Person
from time to time after the date hereof and in the ordinary course of business,
and which Liens are created or incurred substantially contemporaneously with or
within 360 days after the acquisition, lease, construction or improvement of the
Property subject thereto (all Liens of the type described in this CLAUSE (c)
being hereinafter called "PURCHASE MONEY LIENS"); PROVIDED, HOWEVER, that:
(i) any Property subject to any such Purchase Money Lien
created or incurred by any such Person shall be used in the ordinary
course of business of the Borrower or of any of its Subsidiaries; and
(ii) no such Purchase Money Lien on any such Property shall
extend to or cover any other Property of the Person creating such Lien
or any Property of any other Person except as and only to the extent
usual and customary in such financing arrangements;
PROVIDED, FURTHER, HOWEVER, that, in the case of the Liens described in this
CLAUSE (c) the aggregate amount of all of the Indebtedness (including Capital
Lease Obligations) from time to time secured by any of such Liens (determined on
a consolidated basis) shall at no time exceed the amounts permitted by CLAUSE
(h) of SECTION 9.2; and
(d) other Liens; PROVIDED, HOWEVER, that, in the case of the Liens
described in this CLAUSE (d) of SECTION 9.3, the aggregate amount of all of the
Indebtedness (including Capital Lease Obligations) of the Borrower and its
Subsidiaries (determined on a consolidated basis) from time to time secured by
any of such Liens shall not at any time exceed $2,000,000.
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9.4. FINANCIAL COVENANTS.
(a) MAXIMUM LEVERAGE RATIO. Permit the Consolidated Leverage Ratio as
of the last day of any Fiscal Quarter during any period below to exceed the
ratio set forth opposite such period below:
PERIOD RATIO
------ -----
Effective Date through 03/31/00 6.90:1.00
04/01/00 through 09/30/00 6.75:1.00
10/01/00 through 03/31/01 6.50:1.00
04/01/01 through 09/30/01 6.25:1.00
10/01/01 through 03/31/02 6.00:1.00
04/01/02 through 09/30/02 5.75:1.00
10/01/02 through 03/31/03 5.50:1.00
04/01/03 through 09/30/03 5.25:1.00
10/01/03 through 03/31/04 5.00:1.00
04/01/04 through 09/30/04 4.75:1.00
10/01/04 through 03/31/05 4.50:1.00
04/01/05 and thereafter 4.00:1.00
PROVIDED, HOWEVER, that if the IPO shall be consummated on or prior to March 31,
2000, the maximum Consolidated Leverage Ratio as of the last day of the Fiscal
Quarter ending March 31, 2000 shall be 6.75:1.00 instead of 6.90:1.00.
(B) MINIMUM INTEREST COVERAGE RATIO. Permit the Consolidated Interest
Coverage Ratio as of the last day of any Fiscal Quarter during any period below
to be less than the ratio set forth opposite such period below:
PERIOD RATIO
------ -----
Effective Date through 3/31/01 1.50:1.00
6/30/01 through 12/31/01 1.75:1.00
3/31/02 through 12/31/02 2.00:1.00
3/31/03 and thereafter 2.25:1.00
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PROVIDED, HOWEVER, that if the IPO shall be consummated, then the Consolidated
Interest Coverage Ratio as of the last day of any Fiscal Quarter during any
period below shall not be less than the ratio set forth opposite such period
below:
PERIOD RATIO
------ -----
Date of IPO through 9/30/00 1.75:1.00
12/31/00 through 9/30/01 2.00:1.00
12/31/01 through 9/30/02 2.25:1.00
12/31/02 and thereafter 2.50:1.00
(C) MINIMUM FIXED CHARGE COVERAGE RATIO. Permit the Consolidated Fixed
Charge Coverage Ratio as of the last day of any Fiscal Quarter during any period
below to be less than the ratio set forth opposite such period below:
PERIOD RATIO
------ -----
Effective Date through the Maturity Date 1.10:1.00
(D) MAXIMUM CONSOLIDATED CORPORATE OVERHEAD. Permit the Consolidated
Corporate Overhead for any Fiscal Year below to exceed the amount set forth
opposite such Fiscal Year below:
FISCAL YEAR MAXIMUM CONSOLIDATED CORPORATE OVERHEAD
----------- ---------------------------------------
2000 $2,900,000
2001 $3,500,000
2002 $3,700,000
2003 $3,900,000
2004 $4,100,000
2005 $4,200,000
2006 $4,300,000
PROVIDED, HOWEVER, that the amount of the maximum Consolidated Corporate
Overhead shown above for any Fiscal Year: (i) shall be increased by the amount
equal to the product of $50,000 multiplied by the EXCESS of (A) the number of
all Radio Stations acquired by the Borrower and its Subsidiaries in any
Acquisitions (other than the Pending Acquisitions) during the period from the
Effective Date through the last day of such Fiscal Year ("REFERENCE PERIOD")
("ACQUIRED STATION NUMBER"), OVER (B) the number of all Radio Stations sold or
otherwise disposed of by the Borrower and its Subsidiaries during such Reference
Period ("SOLD STATION NUMBER"); (ii) shall be decreased by the amount equal to
the product of $50,000 multiplied by the EXCESS of (A)
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the Sold Station Number for such Reference Period, OVER (B) the Acquired Station
Number for such Reference Period; and (iii) shall be increased by $200,000 if
the IPO shall be consummated.
9.5. CONSOLIDATIONS, MERGERS, SALES, ETC. Wind up, liquidate or
dissolve, or consolidate or amalgamate with or merge into or with any other
Person, or engage in any Sale of all or any part of its Property (whether in one
transaction or in a series of related transactions); EXCEPT:
(a) any Subsidiary of the Borrower may merge with or into, or may be
dissolved or liquidated into the Borrower, so long as (i) the Borrower is the
surviving Person of any such merger, dissolution or liquidation, and (ii) the
security interests granted to the Collateral Agent pursuant to the Collateral
Documents in the Property of such Subsidiary shall remain in full force and
effect and perfected (to at least the same extent as in effect immediately prior
to such merger, dissolution or liquidation);
(b) any Subsidiary of the Borrower may merge with or into, or may be
dissolved or liquidated into, any other Subsidiary of the Borrower, so long as
(i) such Subsidiary of the Borrower is the surviving Person of any such merger,
dissolution or liquidation and, immediately after giving effect thereto, the
Borrower continues to own the same percentage of all of the Equity Interests of
the surviving Subsidiary as the percentage owned by the Borrower immediately
prior to completion of such merger, dissolution or liquidation, and (ii) the
security interests granted to the Collateral Agent pursuant to the Collateral
Documents in the Property of such Subsidiary shall remain in full force and
effect and perfected (to at least the same extent as in effect immediately prior
to such merger, dissolution or liquidation);
(c) any Subsidiary of the Borrower may merge with or into another
Person in connection with the completion of an Acquisition of such Person
permitted by SECTION 9.6 so long as the security interests granted to the
Collateral Agent pursuant to the Collateral Documents in the Property of such
Subsidiary shall remain in full force and effect and perfected (to at least the
same extent as in effect immediately prior to such merger);
(d) any Permitted Dispositions; and
(e) Asset Sales; PROVIDED, HOWEVER, that (i) the portion of the
Consolidated Adjusted EBITDA attributable to all of the Property of the Parent
Company or the Borrower or of any of their Subsidiaries (including Equity
Interests of Subsidiaries) sold pursuant to this CLAUSE (e) (A) in any Fiscal
Year, shall not exceed 15% of Consolidated Adjusted EBITDA, as determined on a
Pro Forma Basis for the Measurement Period as of the then most recent Covenant
Determination Date after giving effect to all of such Sales in such Fiscal Year,
and (B) during the period from the Effective Date through the Maturity Date,
shall not exceed 30% of Consolidated Adjusted EBITDA, as determined on a Pro
Forma Basis for the Measurement Period as of the then most recent Covenant
Determination Date after giving effect to all of such Sales in such period, (ii)
at least ten (10) Business Days prior to the date of any such proposed Sale, the
Principal Companies shall have delivered to the Administrative Agent an
officers' certificate duly executed by a Responsible Officer of each Principal
Company, which certificate shall contain (A) projections determined on a Pro
Forma Basis for the period from the end of the immediately preceding Fiscal
Quarter to the Maturity Date demonstrating compliance for such period with
SECTION 9.4(a), (b) and (c), and (B) a statement that all representations and
warranties of the Parent Company, the Borrower and their Subsidiaries set forth
in this Agreement or in any of the other Loan Documents will be true and correct
in all material respects immediately after giving effect to such Asset Sale
(except for any such representation or warranty that relates solely to a prior
date), and
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that no Default will be continuing immediately after giving effect to such Asset
Sale, and (iii) both immediately before and immediately after giving effect
thereto, no Defaults shall then be continuing or shall result therefrom.
9.6. INVESTMENTS AND ACQUISITIONS. Make, incur or assume, or permit to
exist, or make any offer or commitment to make, or enter into any agreement to
make, any Investments in any other Person or any Acquisitions; EXCEPT:
(a) Permitted Investments;
(b) Investments by any Subsidiary of the Borrower in the Borrower or in
any other Subsidiary of the Borrower;
(c) subject always to the restrictions and limitations contained in
SECTION 9.2(f), Investments (including capital contributions) by the Parent
Company in any Subsidiary of the Parent Company, and Investments by the Borrower
in any Subsidiary of the Borrower;
(d) Permitted Acquisitions;
(e) Acquisitions (including Acquisitions of Equity Interests) by the
Borrower or its Subsidiaries, in a single transaction or in a series of related
transactions, for total consideration paid (exclusive of consideration paid in
the form of Permitted Equity Interests of the Parent Company) in an Amount not
exceeding $5,000,000 in the aggregate for any such single transaction or series
of related transactions; PROVIDED, HOWEVER, that: (i) the aggregate Amount of
all of the consideration paid (exclusive of consideration paid in the form of
Permitted Equity Interests of the Parent Company) by Parent Company or the
Borrower or by any of their Subsidiaries for all of such Acquisitions pursuant
to this CLAUSE (e) (determined on a consolidated basis) during any Fiscal Year
shall not exceed $5,000,000; and (ii) both immediately before and immediately
after giving effect to any such Acquisition, no Defaults shall then be
continuing or shall result therefrom;
(f) Acquisitions by the Borrower or by any of its Subsidiaries, if and
to the extent that all or substantially all of the consideration payable
therefore is in the form of Permitted Equity Interests of the Parent Company;
PROVIDED, HOWEVER, that (i) prior to completing any such Acquisition, the
Principal Companies shall have furnished to the Administrative Agent true and
complete copies of all Acquisition Documentation relating to such Acquisition,
and (ii) both immediately before and immediately after giving effect to any such
Acquisition, no Defaults shall then be continuing or shall result therefrom; and
(g) each of the Pending Acquisitions to be completed pursuant to the
applicable Pending Acquisition Documents.
9.7. RESTRICTED PAYMENTS. Make, extend or enter into any offer or
commitment to make, or enter into any agreement to make, any Restricted
Payments; EXCEPT:
(a) the declaration and payment by the Parent Company of dividends or
other distributions on its Equity Interests in the form of Permitted Equity
Interests of the Parent Company;
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(b) the declaration and payment by the Borrower of dividends or other
distributions on its Equity Interests in the form of Permitted Equity Interests
of the Borrower;
(c) Restricted Payments in the form of cash dividends declared or paid
by the Borrower on its Equity Interests:
(i) for the purpose of paying, so long as all of the proceeds
thereof are promptly used by the Parent Company to pay, its operating
expenses incurred in the ordinary course of its business and other
corporate overhead costs and expenses (including, without limitation,
legal and accounting expenses and other similar expenses) in a maximum
principal amount of $250,000 per Fiscal Year;
(ii) for the purpose of paying, so long as all of the proceeds
thereof are promptly used by the Parent Company to pay, franchise taxes
and federal, state and local income taxes and interest, and penalties
with respect thereto, payable by the Parent Company; PROVIDED that all
tax refunds shall be promptly returned by the Parent Company to the
Borrower; and
(iii) for the purpose of making, so long as all of the
proceeds thereof are promptly used by the Parent Company to make,
regularly scheduled interest payments in cash on the Exchange Notes;
PROVIDED, HOWEVER, that (A) the making of such regularly scheduled cash
interest payments on the Exchange Notes shall at the time be permitted
by the terms of subordination applicable to the Guaranty Obligations of
Subsidiary Guarantors with respect to such notes, and (B) no such cash
interest payments on the Exchange Notes shall be made prior to January
31, 2005;
PROVIDED, HOWEVER, that at the time of the declaration of any such cash
dividends the proceeds of which are to be used for any of the purposes
identified in CLAUSE (i), (ii) or (iii), no Material Event of Default shall be
continuing or shall result therefrom;
(d) payments by the Parent Company or the Borrower or by any of their
Subsidiaries to any then present or former director, manager, officer or
employee of the Parent Company or the Borrower or of any of their Subsidiaries
in connection with the repurchase of Equity Interests of the Parent Company from
any such Person made in the ordinary course of business and on terms and
conditions that are in all material respects consistent with the Parent
Company's usual and customary business practices; PROVIDED, HOWEVER, that the
aggregate amount of all of such payments made in any Fiscal Year shall not
exceed $2,500,000;
(e) Restricted Payments by the Parent Company made upon completion of
the IPO, out of the Net Issuance Proceeds from the IPO, in the form of (i) the
purchase by the Parent Company from Pru Bridge or its Affiliates of certain of
the Parent Company's Equity Interests in such amounts or shall be necessary to
permit Pru Bridge or its Affiliates to comply with certain NASD regulations
applicable to compensation of underwriters, (ii) the redemption by the Parent
Company of its Series B Preferred Stock for an aggregate amount in cash which
shall not exceed $5,900,000, and (iii) the declaration and payment by the Parent
Company of accrued unpaid dividends on its outstanding preferred Capital Stock
of any class, which dividend payments shall not exceed an aggregate amount in
cash equal to $7,300,000; and
(f) payments, not otherwise permitted by any of the other CLAUSES of
this SECTION 9.7 and not otherwise prohibited by any of the other covenants in
this ARTICLE IX or by any of the
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other provisions contained in this Agreement, by the Borrower or any of its
Subsidiaries to any Affiliates of the Borrower, but, in each case, only to the
extent expressly permitted by SECTION 9.10.
9.8. LIMITATIONS ON NEGATIVE PLEDGE CLAUSES. Enter into or cause or
permit to exist or become effective any Instrument which prohibits or limits the
ability of the Parent Company or the Borrower or of any of their Subsidiaries to
create, incur, assume or permit to exist any Liens in favor of the
Administrative Agent or the Collateral Agent in connection with this Agreement
or the Collateral Documents upon any of its Property or revenues, whether now
owned or from time to time hereafter created, arising or acquired, EXCEPT for
(a) this Agreement and the other Loan Documents, and (b) any agreements
governing any Purchase Money Liens (as defined in SECTION 9.3(c) or Capital
Lease Obligations otherwise permitted hereby (in which case, any such
prohibition or limitation shall only be permitted hereunder to the extent it
affects the Property financed thereby).
9.9. LIMITATION ON RESTRICTIONS ON SUBSIDIARY DISTRIBUTIONS. Enter into
or cause or permit to exist or become effective any consensual encumbrance or
restriction on the ability of any Subsidiary of the Parent Company or of the
Borrower to (a) make any dividends or other distributions in respect of any
Equity Interests of such Subsidiary held by, or pay any Indebtedness owed to,
the Parent Company, the Borrower or any of their Subsidiaries, (b) make
Investments in the Parent Company, the Borrower or any of their Subsidiaries, or
(c) transfer any of its Property to the Parent Company, the Borrower or any of
their Subsidiaries, EXCEPT for such encumbrances or restrictions existing under
or by reason of: (i) any restrictions under the Loan Documents; (ii) any
restrictions with respect to any Subsidiary of the Borrower imposed pursuant to
an agreement which has been entered into in connection with the Sale of all or
substantially all of the Equity Interests or Property of such Subsidiary; (iii)
any restrictions with respect to any Subsidiary of the Borrower imposed pursuant
to an agreement which has been entered into in connection with a joint venture
involving such Subsidiary, PROVIDED that any such restrictions, together with
all other similar restrictions applicable to Subsidiaries of the Borrower, shall
not have, and could not reasonably be expected to have, a Materially Adverse
Effect; and (iv) any restrictions on the ability of the Borrower or any of its
Subsidiaries to transfer any such Property imposed by the provisions of the
documentation pursuant to which there shall have been created a Lien on such
Property expressly permitted by SECTION 9.3.
9.10. TRANSACTIONS WITH AFFILIATES. Enter into, engage in or perform
any Affiliate Transaction or any transaction or series of related transactions
(whether or not in the ordinary course of business) with any Affiliate (other
than the Borrower and its Subsidiaries) of the Parent Company, make any offer or
commitment to do so, or enter into any agreement to do so; EXCEPT:
(a) Restricted Payments by the Parent Company or by the Borrower, if
and only to the extent expressly permitted by SECTION 9.7;
(b) loans or advances to any director, manager, officer or employee of
the Parent Company or the Borrower or of any of their Subsidiaries made in the
ordinary course of business and on terms and conditions that are in all material
respects consistent with the Parent Company's or the Borrower's usual and
customary business practices; PROVIDED, HOWEVER, that the aggregate principal
amount of all of such loans or advances from time to time outstanding shall not
exceed $500,000 at any time;
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(c) customary fees, indemnification and reimbursement of expenses paid
by the Parent Company to its directors, and executive compensation paid by the
Parent Company to its executive officers and other senior management;
(d) Investments by the Parent Company if and to the extent permitted by
SECTION 9.2 or by SECTION 9.6, and Permitted Investments of the kind described
in PARAGRAPH (f) of the definition of the term "PERMITTED INVESTMENTS";
(e) each of the Affiliate Transactions described in SECTION 5.1.16 of
the DISCLOSURE SCHEDULE or in SECTION 6.11 of the DISCLOSURE SCHEDULE;
(f) any other Affiliate Transaction not otherwise permitted by any of
the other provisions of this SECTION 9.10; PROVIDED, HOWEVER, that (i) such
Affiliate Transaction is not otherwise expressly prohibited by the terms of this
Agreement or any of the other Loan Documents; (ii) such Affiliate Transaction is
made or undertaken in the ordinary course of business by the Borrower or by any
of its Subsidiaries and on terms and conditions that are in all material
respects consistent with the Borrower's usual and customary business practices;
(iii) the terms of such Affiliate Transaction, taken as a whole, are no less
favorable to the Borrower or to any of its Subsidiaries than would be the case
if such Affiliate Transaction had been entered into on an arm's length basis
with a Person that is not an Affiliate of the Borrower; and (iv) both
immediately before and immediately after giving effect thereto, no Defaults
shall then be continuing or shall result therefrom; and
(g) any other transaction between the Parent Company, on the one hand,
and one or more of its Affiliates (other than the Borrower and its
Subsidiaries), on the other hand, not otherwise permitted by any of the other
provisions of this SECTION 9.10; PROVIDED, HOWEVER, that (i) such transaction is
not otherwise prohibited by the terms of this Agreement or any of the other Loan
Documents; (ii) such transaction is made or undertaken in the ordinary course of
business by the Parent Company and on terms and conditions that are in all
material respects consistent with the Parent Company's usual and customary
business practices; (iii) the terms of such transaction, taken as a whole, are
no less favorable to the Parent Company than would be the case if such
transaction had been entered into on an arm's length basis by the Parent Company
with a Person that is not an Affiliate of the Parent Company; and (iv) at the
time of the completion of such transaction, and after giving effect thereto, no
Default shall occur or be continuing.
9.11. SALE OF CAPITAL STOCK, ETC. Issue, sell, transfer or otherwise
dispose of any shares of any Capital Stock or other Equity Interests of the
Parent Company or the Borrower or of any of their Subsidiaries; EXCEPT:
(a) the pledge from time to time, in accordance with the terms of this
Agreement and the Collateral Documents, of Capital Stock and other Equity
Interests now owned or from time to time hereafter acquired by the Parent
Company or the Borrower or by any of their Subsidiaries;
(b) the issuance and Sale by the Parent Company or by any of its
Subsidiaries of Permitted Equity Interests of the Parent Company as
consideration in, or in connection with the formation of any acquisition vehicle
to be used in, any Acquisition permitted by SECTION 9.6;
(c) the issuance and Sale by any Subsidiary of the Borrower of any of
its Permitted Equity Interests in connection with the implementation of any
Asset Sale then permitted pursuant to SECTION 9.5(e);
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(d) the issuance and Sale by the Parent Company of its Permitted Equity
Interests; PROVIDED, HOWEVER, that (i) no breach of SECTION 9.12 shall occur as
a result of such Sale, and (ii) no Event of Default under SECTION 10.1.10 shall
result therefrom; and
(e) the issuance by the Parent Company of Permitted Equity Interests
pursuant to the exercise of options, warrants, and other convertible securities.
9.12. CHANGE OF CONTROL. Enter into or undertake any transaction,
arrangement or agreement (whether a consolidation, merger, issue or Sale of
Capital Stock or other Securities, reorganization, voting agreement or
otherwise) that will result or could reasonably be expected to result in an
Event of Default under SECTION 10.1.10.
9.13. LIMITATIONS ON OPTIONAL PAYMENTS; ETC.
(a) Make or offer to make any optional or voluntary payment,
prepayment, repurchase or redemption of, or otherwise voluntarily or optionally
defease any Permitted Subordinated Debt, Permitted Acquisition Debt or any other
Indebtedness governed or otherwise evidenced by any Ancillary Documents, or
segregate funds for any such payment, prepayment, repurchase, redemption or
defeasance, (b) amend, modify or otherwise change, or consent or agree to any
amendment, modification, waiver or other change to, any of the terms governing
the payment, prepayment, repurchase or redemption of any Permitted Subordinated
Debt, Permitted Acquisition Debt or any other Indebtedness governed or otherwise
evidenced by any Ancillary Documents (other than any such amendment,
modification, waiver or other change which (i) would extend the maturity or
reduce the amount of any payment of principal thereof, reduce the rate or extend
the date for payment of interest thereon or relax any covenant or other
restriction applicable to the Parent Company or any of its Subsidiaries, and
(ii) does not involve the payment of a consent fee), or (c) designate any
Indebtedness (other than the Obligations) as "senior indebtedness" or "senior
debt" for the purposes of any Instrument or Instruments governing or otherwise
evidencing any Permitted Subordinated Debt.
9.14. MODIFICATION OF OTHER ANCILLARY DOCUMENTS, ETC. Consent to or
enter into or permit any material amendment, supplement or other modification of
any of the Governing Documents of the Parent Company or of any of its
Subsidiaries or any of the other Ancillary Documents, if such amendment,
supplement or modification (a) shall have, or (as the case may be) could
reasonably be expected to have, any Materially Adverse Effect, or (b) shall
include any term, covenant or other provision, or shall otherwise effect any
change, that conflicts with or otherwise contravenes any of the terms, covenants
or other provisions of this Agreement or any of the other Loan Documents. The
covenant of each of the Principal Companies in SECTION 9.13 is separate from and
in addition to the covenant in this SECTION 9.14.
9.15. MAINTENANCE OF SEPARATENESS. Fail at any time to satisfy
customary corporate formalities, including the holding of regular board of
directors' and shareholders' meetings and the maintenance of corporate records,
or take any action or conduct its affairs in any manner which is likely to
result in the corporate existence of the Parent Company being ignored, or in the
assets and liabilities of the Borrower or of any of its Subsidiaries being
substantively consolidated with those of the Parent Company in any Insolvency
Proceeding.
9.16. USE OF CREDITS; COMPLIANCE WITH MARGIN REGULATIONS. Use all or
any portion of the proceeds of any of the Loans, other Credit Extensions or
Letters of Credit, directly or indirectly, to purchase or carry Margin Stock
other than in compliance with Regulations T, U and
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X of the Federal Reserve Board. At no time shall the value of the Margin Stock
owned by the Parent Company, the Borrower and their Subsidiaries (as determined
in accordance with Regulation U of the Federal Reserve Board) exceed 25% of the
aggregate value (as determined in accordance with Section 221.2(g)(2) of
Regulation U of the Federal Reserve Board) of all of the Property of the Parent
Company, the Borrower and their Subsidiaries.
9.17. ENVIRONMENTAL LIABILITIES. Violate any Environmental Law, dispose
of any Hazardous Material into or onto, or (except in accordance with Applicable
Law) from, any real Property owned, operated or otherwise used by the Parent
Company, the Borrower or any of their Subsidiaries, or allow any Lien imposed
pursuant to any Environmental. Law to be imposed or to remain on such real
Property, in each case, if any Materially Adverse Effect shall, or could
reasonably be expected to, result therefrom.
ARTICLE X.
EVENTS OF DEFAULT
-----------------
10.1. EVENTS OF DEFAULT. The term "EVENT OF DEFAULT" shall mean any of
the following events set forth in this SECTION 10.1 occurring or existing at any
time on or after the Effective Date:
10.1.1. NON-PAYMENT OF OBLIGATIONS. The Parent Company, the Borrower or
any of their Subsidiaries shall default:
(a) in the payment or prepayment when due under this Agreement or the
Notes of any principal of any of the Loans, Letter of Credit Obligations or
other Obligations, and any such default shall continue unremedied for a period
of more than one (1) Business Day;
(b) in the payment or prepayment when due under this Agreement, the
Notes or any of the other Loan Documents of (i) any interest on any of the
Loans, Letter of Credit Obligations or other Obligations, or (ii) any Fees
payable under SECTION 2.9 or SECTION 3.8, and any such default under SUBCLAUSE
(i) or (ii) of this CLAUSE (b) shall continue unremedied for a period of more
than three (3) Business Days; or
(c) in the payment when due under this Agreement or any of the other
Loan Documents of any other sum (other than any sum referred to in CLAUSE (a) or
(b)), and any such default shall continue unremedied for a period of more than
five (5) Business Days.
10.1.2. NON-PERFORMANCE OF CERTAIN OBLIGATIONS. The Parent Company or
the Borrower shall default in the due performance or observance of any of its
Obligations under any of the following SECTIONS: SECTION 8.3(a), SECTION 8.12,
SECTION 8.13 or ARTICLE IX (including SECTIONS 9.1 through 9.17, inclusive).
10.1.3. NON-PERFORMANCE OF OTHER OBLIGATIONS. The Parent Company, the
Borrower or any of their Subsidiaries shall default in the due performance or
observance of any of its Obligations under any of the Loan Documents (other than
any of the Obligations specified in SECTION 10.1.1 or 10.1.2), and any such
default shall continue unremedied for more than thirty (30) days after written
notice thereof shall have been given to the Parent Company or the Borrower by
the Administrative Agent or by any Lender.
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10.1.4. BREACH OF REPRESENTATION OR WARRANTY. Any representation or
warranty by the Parent Company or the Borrower or by any of their Subsidiaries
at any time made or deemed to be made in any Loan Document, or which is
contained in any certificate, document or financial or other statement furnished
by or on behalf of the Parent Company, the Borrower or any of their Subsidiaries
at any time pursuant to any of the Loan Documents or in connection with any of
the Credit Extensions, shall prove to have been untrue or incorrect in any
material respect on or as of the date made or deemed made.
10.1.5. CROSS-DEFAULT. The Parent Company, the Borrower or any of their
Subsidiaries (a) shall fail to make any payment when due under or with respect
to any Indebtedness having an aggregate outstanding principal amount of
$2,000,000 or more (whether such payment is due by reason of scheduled maturity,
required prepayment, acceleration, demand, or otherwise), and any such failure
shall continue after the applicable grace or notice period, if any, specified in
the Instrument relating thereto on the date of such failure; or (b) shall fail
to perform or observe any other condition or covenant, or any other event shall
occur or condition shall exist, under any Instrument relating to any
Indebtedness having an aggregate outstanding principal amount of $2,000,000 or
more, and (i) such failure shall continue after the applicable grace or notice
period, if any, specified in the Instrument relating thereto on the date of such
failure, and (ii) the effect of such failure, event or condition shall be to
cause, or to permit the holder or holders of such Indebtedness or the
beneficiary or beneficiaries of such Indebtedness (or a trustee or agent on
behalf of such holder or holders or beneficiary or beneficiaries) to cause, such
Indebtedness to be declared to be due and payable prior to its stated maturity.
10.1.6. INSOLVENCY; VOLUNTARY PROCEEDINGS. The Parent Company or
Borrower or any of their Subsidiaries: (a) shall commence any Insolvency
Proceeding with respect to itself or any of its Subsidiaries; or (b) shall take
any action to effectuate or authorize any of the foregoing.
10.1.7. INVOLUNTARY PROCEEDINGS. (a) Any involuntary Insolvency
Proceeding shall be commenced or filed against the Parent Company, the Borrower
or any of their Subsidiaries, or any writ, judgment, warrant of attachment,
execution or other similar process shall be issued or levied against any
substantial part of the Properties of the Parent Company, the Borrower or any of
their Subsidiaries, and any such Insolvency Proceeding shall not be dismissed,
or any such writ, judgment, warrant of attachment, execution or other similar
process shall not be released, vacated or fully bonded, within sixty (60) days
after commencement, filing, issuance or levy; (b) the Parent Company, the
Borrower or any of their Subsidiaries shall admit the material allegations of a
petition against it in any Insolvency Proceeding, or an order for relief (or any
similar order under non-U.S. law) shall be ordered in any Insolvency Proceeding;
or (c) the Parent Company, the Borrower or any of their Subsidiaries shall
acquiesce in the appointment of any receiver, trustee, custodian, conservator,
liquidator, mortgagee in possession (or agent therefor) or any other similar
Person for itself or for any substantial portion of its Property or business.
10.1.8. ERISA. (a) Any ERISA Event shall occur with respect to a
Pension Plan or Multiemployer Plan which shall result or could reasonably be
expected to result in liability of the Parent Company, the Borrower, any of
their Subsidiaries or any ERISA Affiliate under Title IV of ERISA to the Pension
Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of
$5,000,000; (b) the commencement or increase of contributions to, or the
adoption of or the amendment of, a Pension Plan by the Parent Company, the
Borrower, any of their Subsidiaries or any ERISA Affiliate which shall result or
could reasonably be expected to result in an increase in Unfunded Pension
Liability among all Pension Plans with Unfunded Pension
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Liabilities in an aggregate amount in excess of $10,000,000; (c) any of the
representations and warranties contained in SECTION 6.19 shall cease to be true
and correct in any material respect, and such breach shall result or could
reasonably be expected to result in a Materially Adverse Effect; or (d) the
Parent Company, the Borrower, any of their Subsidiaries or any ERISA Affiliate
shall fail to pay when due, after the expiration of any applicable grace period,
any installment payment with respect to its withdrawal liability under Section
4201 of ERISA under a Multiemployer Plan, and such failure shall result or could
reasonably be expected to result in a Materially Adverse Effect.
10.1.9. JUDGMENTS. One or more judgments, orders or decrees shall be
entered against the Parent Company, the Borrower or any of their Subsidiaries
involving in the aggregate liabilities as to any single or related series of
transactions, incidents or conditions of $2,000,000 or more, and the same shall
remain unsatisfied, unvacated or unstayed pending appeal for a period of more
than sixty (60) days after the entry thereof.
10.1.10. CHANGE OF CONTROL. Any Change of Control shall occur.
10.1.11. SUBSIDIARY GUARANTY. Except as otherwise provided or permitted
by or pursuant to the terms of this Agreement or the Subsidiary Guaranty, the
Subsidiary Guaranty or any material provision thereof shall for any reason cease
to be in full force and effect or valid and binding on and enforceable against
any Subsidiary Guarantor, or any Subsidiary Guarantor shall so state in writing
to the Administrative Agent or any Lender, or any Subsidiary Guarantor shall
bring an action to limit its Obligations or liabilities thereunder.
10.1.12. SECURITY DOCUMENTS. Otherwise (in any case) than in accordance
with the terms of this Agreement or any of the other Loan Documents, any
Collateral Documents or any material provisions of any of the Collateral
Documents shall cease to be in full force and effect or shall cease to create
valid security interests in and Liens upon the Collateral (other than in an
insubstantial or immaterial portion of the Collateral) purported to be covered
thereby, or such security interests and Liens shall cease to be a valid and
perfected security interests and Liens (subject only to Permitted Liens) as
required from time to time by the Collateral Documents; provided that if the
Credit Parties have complied with all of their agreements and obligations under
the Collateral Documents, including with respect to perfection of security
interests, and the cessation of the validity or perfection of a security
interest is due to the action or inaction of the Administrative Agent and/or any
other Lender, such cessation of the validity or perfection of a security
interest shall not be an Event of Default.
10.1.13. MAIN STATION LICENSES. (a) Any Main Station License necessary
for the ownership or essential for the operation of any of the Radio Stations by
the Parent Company, the Borrower or any of their Subsidiaries shall expire, and,
on or prior to such expiration, the same shall not have been or be in the
process of being renewed or replaced by another Main Station License authorizing
substantially the same operation of such Radio Station by the Parent Company,
the Borrower or any of their Subsidiaries; or
(b) (i) any Main Station License necessary for the ownership or
essential for the operation of any of the Radio Stations by the Parent Company,
the Borrower or any of their Subsidiaries (A) shall be cancelled, revoked,
terminated, rescinded, annulled, suspended or modified in any materially adverse
respect, or (B) shall no longer be in full force and effect and shall not be in
the process of renewal or replacement, or (ii) the grant or the effectiveness of
any
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such Main Station License shall have been stayed, vacated, reversed or set
aside, and, in each case, such action shall no longer be subject to further
administrative or judicial review; or
(c) in any renewal or revocation proceeding involving any Main Station
License necessary for the ownership or essential for the operation of any of the
Radio Stations, any administrative law judge of the FCC (or any successor to the
functions of an administrative law judge of the FCC) shall have issued an
initial decision to the effect that the Parent Company, the Borrower or any of
their Subsidiaries lacks the qualifications to hold any Main Station License,
and such initial decision shall not have been timely appealed or shall otherwise
have become an order that is final and no longer subject to further
administrative or judicial review, or such administrative law judge shall issue
a favorable determination on such matters, which determination shall
subsequently be reversed on appeal;
PROVIDED, HOWEVER, that none of the foregoing events described in this SECTION
10.1.13 shall constitute an Event of Default if, assuming final non-appealable
loss by the Parent Company, the Borrower or any of their Subsidiaries of any
such Main Station License at the conclusion of all legal proceedings incident
thereto, such loss would, individually or in the aggregate with all such other
losses after Closing Date, not result in the loss of Main Station Licenses for
Radio Stations which generate in the aggregate in excess of 5% of the
Consolidated Broadcast Cash Flow of the Parent Company and its Subsidiaries,
PROVIDED that such percentage shall be calculated for the Measurement Period
ended immediately prior to the date on which any such loss of an Main Station
License occurs and each such quarterly calculation shall be aggregated with all
such other percentage calculations with respect to each of the other Main
Station Licenses lost from and after the Closing Date.
10.2. REMEDIES. If any Event of Default shall at any time occur and
shall be continuing, the Administrative Agent shall at the request of, or may
with the consent of, the Required Lenders:
(a) declare the Commitment of each Lender and the Letter of Credit
Commitment of the Issuing Lender to be terminated in full, whereupon all of such
Commitments and such Letter of Credit Commitment shall forthwith be terminated
in full;
(b) declare the unpaid principal amount of all of the outstanding
Loans, Letter of Credit Obligations and other Obligations, all interest accrued
and unpaid thereon, and all of the other Obligations owing or payable under any
of the Loan Documents to be immediately due and payable in full, without
presentment, demand, protest or other notice of any kind, all of which are
hereby expressly and irrevocably waived by each of the Parent Company and the
Borrower;
(c) demand that the Borrower immediately Cash Collateralize all of the
Letter of Credit Obligations to the extent of outstanding and wholly or
partially undrawn Letters of Credit, whereupon the Borrower shall so Cash
Collateralize all of such Letters of Credit to that extent;
(d) exercise on behalf of itself, the other Agents, the Issuing Lender
and the Lenders all or any of the rights and remedies available to it, the other
Agents, the Issuing Lender and the Lenders under the Loan Documents or
Applicable Law or with respect to all or any part of the Collateral;
(e) apply cash collateral to the payment of outstanding Obligations,
all as provided by SECTION 3.7; and/or
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(f) take any action to enforce all or any of the rights and remedies of
the Collateral Agent under the Collateral Documents and other Loan Documents and
with respect to all or any part of the Collateral;
PROVIDED, HOWEVER, that, upon the occurrence of any Event of Default specified
above in SECTION 10.1.6 or in SECTION 10.1.7, the obligation of each Lender to
make Loans and the obligation of the Issuing Lender to issue Letters of Credit
shall in any event automatically terminate, and the unpaid principal amount of
all of the outstanding Loans, Letter of Credit Obligations and other Obligations
and all interest and other amounts as aforesaid shall automatically become and
be immediately due and payable in full without any further act or notice by the
Administrative Agent, the Issuing Lender or any Lender, all of which are hereby
expressly and irrevocably waived by each of the Parent Company and the Borrower.
ARTICLE XI.
THE ADMINISTRATIVE AGENT AND OTHER AGENTS
-----------------------------------------
11.1. APPOINTMENT AND AUTHORIZATION.
(a) Each of the Lenders and the Issuing Lender hereby irrevocably
appoints, designates and authorizes the Administrative Agent to take such action
on its behalf under the provisions of this Agreement and each other Loan
Document, and to exercise such powers and perform such duties, as are expressly
delegated to it by the terms of this Agreement or any other Loan Document, and
to exercise such other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary contained elsewhere in this
Agreement or in any other Loan Document, the Administrative Agent shall not have
any duties or responsibilities, except those expressly set forth herein or
therein, nor shall the Administrative Agent have or be deemed to have any
fiduciary relationship with any Lender or the Issuing Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities shall
be read into this Agreement or any other Loan Document or otherwise exist
against the Administrative Agent.
(b) The Issuing Lender shall have all of the benefits and immunities
(i) provided to the Administrative Agent in this ARTICLE XI with respect to any
acts taken or omissions suffered by the Issuing Lender in connection with
Letters of Credit issued by it or proposed to be issued by it and the Letter of
Credit Applications pertaining to such Letters of Credit, in each case, as fully
as if the term "ADMINISTRATIVE AGENT" as used in this ARTICLE XI, included the
Issuing Lender with respect to such acts or omissions, and (ii) as additionally
provided in this Agreement with respect to the Issuing Lender.
11.2. DELEGATION OF DUTIES. The Administrative Agent may execute any of
its duties under this Agreement or any other Loan Document or any of the
Collateral by or through agents, employees or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such duties.
The Administrative Agent shall not be responsible for the negligence or
misconduct of any agent or attorney-in-fact that it selects with reasonable
care.
11.3. LIABILITY OF ADMINISTRATIVE AGENT. None of the Administrative
Agent, its Affiliates or any of their officers, directors, employees, agents or
attorneys-in-fact (collectively, "ADMINISTRATIVE AGENT-RELATED PERSONS") shall
(a) be liable for any action taken or omitted to be taken by any of them under
or in connection with this Agreement, any of the other Loan Documents or the
Collateral (except for their own gross negligence or willful misconduct), or (b)
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be responsible in any manner to any of the Lenders or the Issuing Lender for any
recital, statement, representation or warranty made by the Parent Company, the
Borrower or any Subsidiary or Affiliate thereof, or any officer thereof,
contained in this Agreement or in any other Loan Document, or in any
certificate, report, statement or other document referred to or provided for in
or received by the Administrative Agent under or in connection with, this
Agreement or any other Loan Document or any of the Collateral, or for the
validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or any other Loan Document or any of the Collateral, or for any
failure of the Parent Company, the Borrower or any other party to any Loan
Document to perform its obligations hereunder or thereunder. No Administrative
Agent-Related Person shall be under any obligation to any Lender, the Issuing
Lender or any of the other Agents to ascertain or to inquire as to the
observance or performance of any of the Obligations or any of the other
agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect any of the Collateral or any of the Properties, books or
records of the Parent Company, the Borrower or any of their Subsidiaries or
Affiliates.
11.4. RELIANCE BY ADMINISTRATIVE AGENT.
(a) Each of the Lenders, the Issuing Lender and the other Agents agree
that the Administrative Agent shall be entitled to rely, and shall be fully
protected in relying, upon any writing, resolution, notice, consent,
certificate, affidavit, letter, telegram, facsimile, telex or telephone message,
statement or other document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons,
and upon advice and statements of legal counsel (including counsel to the
Principal Companies), independent accountants and other experts selected by the
Administrative Agent. Each of the Lenders, the Issuing Lender and the other
Agents agree that the Administrative Agent shall be fully justified in failing
or refusing to take any action under this Agreement or any other Loan Document
or with respect to any Collateral unless it shall first receive all such advice
or concurrence of the Required Lenders or, as required by SECTION 12.1, all of
the Lenders as the Administrative Agent deems appropriate and, if it so
requests, the Administrative Agent shall first be indemnified to its
satisfaction by each of the Lenders and the Issuing Lender against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. The Administrative Agent shall in all cases
be fully protected in acting, or in refraining from acting, under this Agreement
or any other Loan Document or with respect to any Collateral in accordance with
a request or consent of the Required Lenders or, as required by SECTION 12.1,
all of the Lenders, and such request or consent and any action taken or failure
to act pursuant thereto shall be binding upon all of the Lenders, the Issuing
Lender and the other Agents.
(b) For purposes of determining compliance with the conditions
specified in SECTION 5.1 as it relates to the initial Borrowing and issuances of
Letters of Credit on the Closing Date, each Lender that has executed this
Agreement shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter either sent by the Administrative
Agent to such Lender for consent, approval, acceptance or satisfaction, or
required by the terms hereof to be consented to or approved by or to be
acceptable or satisfactory to such Lender, unless an officer of the
Administrative Agent responsible for the transactions contemplated by the Loan
Documents shall have received written notice from such Lender prior to the
initial Borrowing and issuances of Letters of Credit on the Closing Date
specifying in reasonable detail its objection thereto and either such objection
shall not have been withdrawn by written notice to the Administrative Agent to
that effect or such Lender shall not have made available to the Administrative
Agent such Lender's ratable portion of such Borrowing.
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11.5. NOTICE OF DEFAULT. The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Default or Event of
Default, except with respect to Defaults in the payment of principal, interest
and fees required to be paid to the Administrative Agent for the account of the
Lenders or the Issuing Lender, unless the Administrative Agent shall have
received written notice from a Lender, the Parent Company or the Borrower
referring to this Agreement, describing such Default or Event of Default and
stating that such notice is a "notice of default". In the event that the
Administrative Agent receives such a written notice, the Administrative Agent
shall give notice thereof to the Lenders and the Issuing Lender. The
Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be requested by the Required Lenders in accordance
with ARTICLE X; PROVIDED, HOWEVER, that, unless and until the Administrative
Agent shall have received any such request, the Administrative Agent may (but
shall not be obligated to) take such action, or refrain from taking such action,
with respect to such Default or Event of Default as the Administrative Agent
shall deem advisable or in the best interests of the Lenders and the Issuing
Lender.
11.6. CREDIT DECISIONS. Each of the Lenders, the Issuing Lender and the
other Agents expressly acknowledges that none of the Administrative
Agent-Related Persons has made any representation or warranty to it and that no
act by the Administrative Agent hereinafter taken, including any review of the
affairs of the Parent Company or the Borrower or of any of their Subsidiaries,
shall be deemed to constitute any representation or warranty by the
Administrative Agent to any of the Lenders, the Issuing Lender or the other
Agents. Each of the Lenders, the Issuing Lender and the other Agents represents
to the Administrative Agent that it has, independently and without reliance upon
the Administrative Agent, and based on such documents and information as it has
deemed appropriate, made its own appraisal of and investigation into the
Collateral and the business, prospects, operations, Property, financial and
other condition and creditworthiness of the Parent Company, the Borrower and
their Subsidiaries, and all Applicable Laws relating to the transactions
contemplated thereby, and made its own decision to enter into this Agreement and
extend credit to the Borrower hereunder. Each of the Lenders, the Issuing Lender
and the other Agents also represents that it will, independently and without
reliance upon the Administrative Agent, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Agreement and the other Loan Documents or with respect to any of the
Collateral, and to make such investigations as it deems necessary to inform
itself as to the business, prospects, operations, Property, financial and other
condition and creditworthiness of the Parent Company, the Borrower and their
Subsidiaries and the Collateral. Except for notices, reports and other documents
expressly herein required to be furnished to the Lenders, the Issuing Lender or
the other Agents by the Administrative Agent, the Administrative Agent shall not
have any duty or responsibility to provide any of the Lenders, the Issuing
Lender or the other Agents with any credit or other information concerning the
Collateral or the business, prospects, operations, Property, financial or other
condition or creditworthiness of the Parent Company, the Borrower or of any of
their Subsidiaries which may come into the possession of any of the
Administrative Agent-Related Persons.
11.7. INDEMNIFICATION. Whether or not any of the transactions
contemplated hereby shall be consummated, each of the Lenders shall indemnify,
upon demand, each of the Administrative Agent-Related Persons (to the extent not
reimbursed by or on behalf of the Parent Company or the Borrower, and without
limiting the Obligations of Parent Company or the Borrower to do so), ratably
from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses and disbursements of any
kind whatsoever which may at any time (including at any time following the
expiration of the Letters of Credit and
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the repayment of the Loans and the resignation of the Administrative Agent) be
imposed on, incurred by or asserted against any such Person in any way relating
to or arising out of this Agreement, any other Loan Document, any document
contemplated by or referred to herein or therein, the Collateral, or the
transactions contemplated hereby or thereby or any action taken or omitted by
any such Person under or in connection with any of the foregoing; PROVIDED,
HOWEVER, that none of the Lenders shall be liable for the payment to any of the
Administrative Agent-Related Persons of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements to the extent arising from such Person's gross
negligence or willful misconduct. Without limitation of the foregoing, each of
the Lenders shall reimburse the Administrative Agent upon demand for such
Lender's ratable share of any fees, costs or out-of-pocket expenses (including
Attorney Costs) incurred by the Administrative Agent in connection with the
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement, any other Loan Document, any
document contemplated by or referred to herein or any of the Collateral, in each
case, to the extent that the Administrative Agent is not reimbursed for such
expenses by or on behalf of the Parent Company or the Borrower. Without limiting
the generality of the foregoing, if the U.S. Internal Revenue Service or any
other Governmental Authority of the United States or any other jurisdiction
asserts a claim that the Administrative Agent did not properly withhold tax from
amounts paid to or for the account of any Lender (because the appropriate form
was not delivered or was not properly executed, or because such Lender failed to
notify the Administrative Agent of a change in circumstances which rendered the
exemption from, or reduction of, withholding tax ineffective, or for any other
reason), such Lender shall indemnify the Administrative Agent fully for all
amounts paid as a result thereof, directly or indirectly, by the Administrative
Agent as tax or otherwise, including penalties and interest, and including any
taxes imposed by any jurisdiction on the amounts payable to the Administrative
Agent under this SECTION 11.7, together with all related fees, costs and
expenses (including Attorney Costs). The obligations of each of the Lenders in
this SECTION 11.7 shall survive the payment of all of the Obligations hereunder.
11.8. ADMINISTRATIVE AGENT IN ITS INDIVIDUAL CAPACITY. Fleet Bank and
its Affiliates may make loans to, issue letters of credit for the account of,
accept deposits from, acquire Equity Interests in and generally engage in any
kind of banking, trust, financial advisory or other business with, the Parent
Company, the Borrower and their Subsidiaries and Affiliates as though Fleet Bank
were not the Administrative Agent, the Collateral Agent or the Issuing Lender
hereunder and without notice to or consent of the Lenders or other Agents. With
respect to its Loans and its participations in Letters of Credit, Fleet Bank
shall have the same rights and powers under this Agreement and the other Loan
Documents as any other Lender and may exercise the same as though it were not
the Administrative Agent, the Collateral Agent or the Issuing Lender; and the
terms "LENDER" and "LENDERS" shall include Fleet Bank, acting in its individual
capacity as a Lender hereunder.
11.9. SUCCESSOR ADMINISTRATIVE AGENT. The Administrative Agent may
resign as Administrative Agent upon not less than thirty (30) days' prior
written notice to the Lenders and the Borrower, such notice to specify the
effective date of resignation. If the Administrative Agent shall resign as
Administrative Agent under this Agreement, the Required Lenders shall appoint
from among the Lenders a successor agent for the Lenders and the Issuing Lender,
which successor agent shall be subject to the approval of the Borrower if no
Event of Default is continuing, such approval not to be unreasonably withheld or
delayed. If no successor agent is appointed prior to the effective date of
resignation of the Administrative Agent, the Administrative Agent may appoint,
after consulting with the Lenders, and subject to the approval
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of the Borrower if no Event of Default is continuing, such approval not to be
unreasonably withheld or delayed, a successor agent from among the Lenders or
any Lender Affiliate. Any successor Administrative Agent appointed under this
SECTION 11.9 shall be a commercial bank organized under the laws of the United
States or any State thereof, and having a combined capital and surplus of at
least $500,000,000. Upon the acceptance of its appointment as successor agent
hereunder, such successor agent shall succeed to all the rights, powers and
duties of the retiring Administrative Agent; and the term "ADMINISTRATIVE AGENT"
shall mean such successor agent, and the retiring Administrative Agent's
appointment, powers and duties as Administrative Agent shall be terminated.
After any retiring Administrative Agent's resignation hereunder as
Administrative Agent, the provisions of this ARTICLE XI and SECTIONS 12.4 and
12.5 shall inure to its benefit as to any actions taken or omitted to be taken
by it while it was Administrative Agent under this Agreement. If no successor
agent has accepted appointment as Administrative Agent by the effective date of
resignation specified in the retiring Administrative Agent's written notice of
resignation, the retiring Administrative Agent's resignation shall nevertheless
become effective upon the effective date of resignation so specified, and the
Lenders shall perform all of the duties of the Administrative Agent hereunder
until such time, if any, as the Required Lenders appoint a successor agent as
provided for above.
11.10. COLLATERAL DOCUMENTS AND SUBSIDIARY GUARANTY.
(a) Each of the Lenders, the Issuing Lender and the other Agents hereby
further authorizes the Administrative Agent, on behalf of and for the benefit of
Lenders, the Issuing Lender and the other Agents, to be the agent for and
representative of Lenders, the Issuing Lender and the other Agents with respect
to the Subsidiary Guaranty, the Collateral and the Collateral Documents.
(b) Anything herein express or implied to the contrary notwithstanding,
without any notice to or consent, approval or authorization from any of the
Lenders, the Issuing Lender or the Agents, the Administrative Agent may at any
time or from time to time execute any Instruments necessary to (i) release any
Liens encumbering any item of Collateral, or (as the case may be) release from
the Subsidiary Guaranty any Subsidiary Guarantor, that is (in each such case)
the subject of a Sale or (as the case may be) Disposition permitted by any of
the Loan Documents or to which Required Lenders (or such other Lenders as may be
required to give such consent under SECTION 12.1) have otherwise consented, or
(ii) release any Subsidiary Guarantor from the Subsidiary Guaranty if and to the
extent that such release is otherwise permitted by the terms of the Loan
Documents.
(c) Anything contained in any of the Loan Documents to the contrary
notwithstanding, the Administrative Agent, each of the Lenders, the Issuing
Lender and the other Agents hereby agree that (i) none of the Lenders or the
Issuing Lender shall have any rights individually to realize upon any of the
Collateral or to enforce the Subsidiary Guaranty, it being understood and agreed
that all of the powers, rights and remedies with respect to the Collateral and
the Subsidiary Guaranty may be exercised solely by the Administrative Agent for
the benefit of the Lenders, the Issuing Lender and the Agents in accordance with
the terms hereof and thereof, and (ii) in the event of a foreclosure by the
Administrative Agent on any of the Collateral pursuant to a public or private
Sale, the Administrative Agent or any Lender may be the purchaser of any or all
of such Collateral at any such Sale, and the Administrative Agent, as agent for
and representative of the Lenders (but not any Lender or Lenders in its or their
respective individual capacities, unless the Required Lenders shall otherwise
agree in writing), shall be entitled, for the purpose of bidding and making
settlement or payment of the purchase price for
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all or any portion of the Collateral sold at any such Sale, to use and apply any
of the Obligations as a credit on account of the purchase price payable by the
Administrative Agent for any Collateral at such Sale.
11.11. OTHER AGENTS. None of the Syndication Agent, in such capacity,
the Documentation Agent, in such capacity, or the Lead Arranger, in such
capacity, shall have any duties or responsibilities, or shall incur any
obligations or liabilities, under this Agreement or any of the other Loan
Documents. Each Lender acknowledges that it has not relied, and will not rely,
on either the Syndication Agent, Documentation Agent or the Lead Arranger in
deciding to enter into this Agreement or in making any Credit Extensions
hereunder.
ARTICLE XII.
MISCELLANEOUS
-------------
12.1. AMENDMENTS AND WAIVERS.
(a) Except as otherwise provided by PARAGRAPHS (b), (c) and (d) of this
SECTION 12.1, no amendment, termination or waiver of any provision of this
Agreement or of any of the other Loan Documents, and no consent with respect to
any departure by the Parent Company or the Borrower or by any other Credit Party
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Required Lenders, and then such amendment, termination, waiver
or consent shall be effective only in the specific instance and for the specific
purpose for which given.
(b) Without the prior written consent of all of the Lenders, no such
amendment, termination, waiver or consent shall be effective to:
(i) increase or extend the Aggregate Commitment, the Aggregate
Revolving Commitment or the Aggregate Incremental Commitment; extend or
postpone any of the Commitment Reduction Dates; reduce any of the
Commitment Reduction Amounts by which the Aggregate Revolving
Commitment shall be subject to automatic reduction on any Commitment
Reduction Dates pursuant to SECTION 2.5(b); extend or postpone the
Revolving Commitment Termination Date;
(ii) extend or postpone the Maturity Date, or extend, postpone
or delay any Principal Payment Date; reduce the amount of principal of
Incremental Loans required to be repaid on any such date; or extend or
postpone any date for any payment of interest or Fees due to any of the
Lenders under any of the Loan Documents;
(iii) extend the stated expiration date of any Letter of
Credit beyond the Maturity Date;
(iv) reduce the principal of, or the rate of interest
specified herein on, any Loan, Letter of Credit Borrowing or any other
Obligation, reduce any Fees or other amounts payable hereunder or under
any of the other Loan Documents, or reduce the Applicable Margin or the
Applicable Commitment Fee Percentage provided for herein;
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(v) reduce the percentage of the Commitments or of the
aggregate unpaid principal amount of the Loans which shall be required
for the Lenders or any of them to take any action under this Agreement
or any of the other Loan Documents;
(vi) amend, terminate or waive this SECTION 12.1, change the
percentage set forth in, or otherwise amend, the definition of the term
"REQUIRED LENDERS", or amend, terminate or waive any provision of this
Agreement expressly requiring the consent of all of the Lenders in
order to take or to refrain from taking any action; or
(vii) release the guaranty or other Obligations of the Parent
Company under the Parent Company Guaranty, release the guaranty or
other Obligations of any Subsidiary Guarantor under the Subsidiary
Guaranty, or release all or substantially all of the Collateral;
EXCEPT, in each of such cases, (A) as necessary to release Liens
encumbering Collateral, or (as the case may be) to release from the
Subsidiary Guaranty any Subsidiary Guarantor, that is the subject of
any Sale, Disposition or other transaction permitted by the Loan
Documents or to which the Required Lenders have otherwise consented, or
(B) otherwise in accordance with the express provisions of the
Collateral Documents or the other Loan Documents; or
(viii) consent to the assignment or other transfer or
delegation by the Parent Company or the Borrower of any of its rights
or obligations under any of the Loan Documents.
(c) Without the prior written consent of each Lender that will be
directly affected thereby, no such amendment, termination, waiver or consent
shall in any event be effective to increase or extend the Commitment of any
Lender (or reinstate any Commitment of any Lender previously terminated pursuant
to SECTION 10.2 or any other provision of this Agreement).
(d) No such amendment, termination or waiver of any provision of any of
the Loan Documents, or consent to any departure by any Credit Party therefrom,
shall in any event be effective to:
(i) amend, terminate or waive any provision of ARTICLE XI as
the same applies to any Agent, or any other provision of any of the
Loan Documents as the same applies to the rights or obligations of any
Agent, in each case, without the consent of such Agent;
(ii) affect the rights or duties of the Issuing Lender under
this Agreement or any of the Letter of Credit Related Documents, in
each case, without the consent of the Issuing Lender;
(iii) affect the rights or duties of the Administrative Agent
under this Agreement or any of the other Loan Documents, in each case,
without the consent of the Administrative Agent;
(iv) affect the rights or duties of the Collateral Agent under
any of the Collateral Documents or any of the other Loan Documents, in
each case, without the consent of the Administrative Agent; or
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(v) amend, terminate or waive any obligations of the Lenders
relating to the purchase of participations in Letters of Credit as
provided in ARTICLE III, without the consent of each of the
Administrative Agent and the Issuing Lender.
(e) The Administrative Agent may, but shall have no obligation
to, with the concurrence of any Lender, execute amendments, waivers or consents
for and on behalf of such Lender. Any waiver or consent under this Agreement or
any of the other Loan Documents shall in any event be effective only in the
specific instance and for the specific purpose for which it was given. No notice
to or demand on any Credit Party in any case shall entitle any Credit Party to
any other or further notice or demand in similar or other circumstances. Any
amendment, termination, waiver or consent effected in accordance with this
SECTION 12.1 shall be binding upon each Lender at the time a party to this
Agreement, each future Lender and, if signed by a Credit Party, on such Credit
Party.
12.2. NOTICES.
(a) All notices, requests and other communications provided for
hereunder shall be in writing (including, unless the context expressly otherwise
provides, facsimile transmission) and mailed, transmitted by facsimile or
delivered: (i) if to the Parent Company or the Borrower, to the address or
facsimile number specified for notices on the applicable signature page hereof;
(ii) if to the Administrative Agent, the Issuing Lender or any Lender, to the
notice address set forth on SCHEDULE I; or (iii) if to the Parent Company or the
Borrower or to the Administrative Agent, to such other address as shall be
designated by such party in a written notice to each of the other parties, and
if to any other party, to such other address as shall be designated by such
party in a written notice to the Borrower and the Administrative Agent.
(b) All such notices, requests and communications shall be effective
when received or (as the case may be) transmitted by facsimile; PROVIDED,
HOWEVER, that any matter transmitted by facsimile (i) shall be immediately
confirmed by a telephone call to the recipient at the number specified on the
applicable signature page hereof or on SCHEDULE I, and (ii) shall be followed
promptly by a hard copy of the original thereof; EXCEPT that notices to the
Administrative Agent shall not be effective until actually received by the
Administrative Agent, and notices pursuant to ARTICLE III to the Issuing Lender
shall not be effective until actually received by the Issuing Lender.
(c) Each of the Principal Companies acknowledges and agrees that any
agreement of the Administrative Agent, the Issuing Lender and the Lenders set
forth in ARTICLES II and III herein to receive certain notices by telephone and
facsimile is solely for the convenience and at the request of the Borrower. The
Administrative Agent, the Issuing Lender and the Lenders shall be entitled to
rely on the authority of any Person purporting to be a Person authorized by the
Borrower to give such notice, and the Administrative Agent, the Issuing Lender
and the Lenders shall not have any liability to the Borrower, the Parent Company
or any other Person on account of any action taken or not taken by any of the
Administrative Agent, the Issuing Lender or the Lenders in reliance upon any
such telephonic or facsimile notice. The Obligations of the Borrower to repay
the Loans, Letter of Credit Borrowings and other Credit Extensions shall not be
affected in any way or to any extent by any failure by any of the Administrative
Agent, the Issuing Lender or the Lenders to receive written confirmation of any
telephonic or facsimile notice or the receipt by any of the Administrative
Agent, the Issuing Lender or the Lenders of a confirmation which is at variance
with the terms understood by the Administrative Agent, the Issuing Lender or the
Lenders to be contained in the telephonic or facsimile notice.
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12.3. NO WAIVER; CUMULATIVE REMEDIES. No failure to exercise and no
delay in exercising, on the part of the Administrative Agent, any of the
Lenders, the Issuing Lender or any of the other Agents, any right, remedy, power
or privilege under any of the Loan Documents shall operate as a waiver thereof;
nor shall any single or partial exercise by any such Person of any right,
remedy, power or privilege under any of the Loan Documents preclude any other or
further exercise thereof by such Person or by any of the other such Persons or
the exercise of any other right, remedy, power or privilege by any of such
Persons. The rights, powers and remedies given to each of the Administrative
Agent, the Lenders, the Issuing Lender and the other Agents hereby are
cumulative and shall be in addition to and independent of all rights, powers and
remedies existing by virtue of any statute or rule of law or in any of the other
Loan Documents or any of the Interest Rate Protection Agreements.
12.4. COSTS AND EXPENSES. The Parent Company and the Borrower shall,
whether or not any of the transactions contemplated by this Agreement or any of
the other Loan Documents shall be consummated:
(a) pay or reimburse, on demand, all reasonable costs and expenses
incurred or sustained by the Administrative Agent from time to time in
connection with the development, preparation, delivery or syndication of the
Commitments under, or execution and delivery of, or any amendment, supplement,
waiver or modification to (in each case, whether or not consummated), this
Agreement, any of the other Loan Documents, any of the Collateral or any of the
other Instruments or documents prepared in connection herewith or therewith, or
the consummation of any of the transactions contemplated hereby or thereby,
including the Attorney Costs incurred or sustained by the Administrative Agent
in connection therewith or with respect thereto;
(b) pay or reimburse each of the Lenders, the Issuing Lender and the
Agents, on demand, for all reasonable costs and expenses incurred or sustained
by them from time to time in connection with the enforcement, attempted
enforcement or preservation of any rights or remedies (including in connection
with any "workout" or restructuring relating to the Loans or any of the
Obligations or Collateral, and including in connection with any Insolvency
Proceedings involving the Parent Company, the Borrower or any of their
Subsidiaries) under this Agreement, any of the other Loan Documents or any of
such other Instruments or documents, or in relation to any of the Collateral,
including Attorney Costs and all of the reasonable fees, costs and expenses of
any consultants incurred by the Administrative Agent or by any of the Lenders;
and
(c) pay or reimburse the Administrative Agent and the Issuing Lender,
on demand, for all reasonable appraisal (including, without duplication, the
allocated cost of internal appraisal services), audit, environmental inspection
and review (including, without duplication, the allocated costs of such internal
services), search and filing fees, costs and expenses, incurred or sustained by
the Administrative Agent from time to time in connection with any of the matters
referred to under PARAGRAPHS (a) or (b) of this SECTION 12.4.
12.5. INDEMNITY. Whether or not any of the transactions contemplated by
this Agreement or any of the other Loan Documents shall be consummated, the
Parent Company and the Borrower shall, on demand, pay, indemnify and hold each
of the Lenders, the Issuing Lender, the Agents and each of their respective
officers, directors, other Affiliates, employees, counsel, agents and
attorneys-in-fact (each, an "INDEMNIFIED PERSON") harmless from and against any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, charges,
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expenses or disbursements (including Attorney Costs) of any kind or nature
whatsoever with respect to each of (a) any investigation, litigation or
proceeding (including any Insolvency Proceedings involving the Parent Company,
the Borrower or any of their Subsidiaries) related to this Agreement or any of
the other Loan Documents or any of the Collateral, Loans, Letter of Credit
Borrowings, other Credit Extensions or the Letters of Credit, or the use of any
of the proceeds thereof, whether or not any Indemnified Person is a party
thereto, and (b) the actual or alleged presence of Hazardous Materials in the
air, surface water or groundwater or on the surface or subsurface of any
Property owned or at any time operated by the Parent Company or the Borrower or
by any of their Subsidiaries, the generation, storage, transportation, handling
or disposal of Hazardous Materials at any location by the Parent Company, the
Borrower or any of their Subsidiaries, whether or not owned or operated by the
Parent Company, the Borrower or any of their Subsidiaries, the noncompliance of
any such Property with Environmental Laws (including applicable permits
thereunder) applicable to any such Property, or any Environmental Claim asserted
against the Parent Company, the Borrower, any of their Subsidiaries or any
Property owned or at any time operated by the Parent Company, the Borrower or
any of their Subsidiaries (all the foregoing described in CLAUSES (a) and (b)
above, collectively, the "INDEMNIFIED LIABILITIES"); PROVIDED, HOWEVER, that
neither the Parent Company nor the Borrower shall have any obligation hereunder
to any Indemnified Person with respect to Indemnified Liabilities arising from
the gross negligence or willful misconduct of such Indemnified Person. The
obligations in this SECTION 12.5 shall survive payment of all of the other
Obligations.
12.6. SUCCESSORS AND ASSIGNS. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
permitted successors and assigns; EXCEPT that neither the Parent Company nor the
Borrower may in any event assign, transfer or delegate any of its rights or
obligations under this Agreement or any of the other Loan Documents without (in
each case) the prior written consent of the Administrative Agent and all of the
Lenders.
12.7. ASSIGNMENTS, PARTICIPATIONS, ETC.
(a) Any Lender may at any time and from time to time assign and
delegate all or any part of the Loans, the Obligations, the Commitments and the
other rights and obligations of such Lender hereunder:
(i) to any Person meeting the criteria of CLAUSE (a) of the
definition of the term "ELIGIBLE ASSIGNEE" upon the giving of notice to
the Borrower and the Administrative Agent; and
(ii) to any Person meeting the criteria of clause (b) of the
definition of the term "ELIGIBLE ASSIGNEE" upon the prior written
consents of each of the Borrower (which consent shall not be required
so long as any Event of Default shall be continuing) and the
Administrative Agent (neither of which consents shall in any event be
unreasonably withheld or delayed); PROVIDED, HOWEVER, that each such
assignment pursuant to this CLAUSE (ii) shall be in an aggregate amount
of not less than $5,000,000 (or such lesser amount as may be agreed to
by the Administrative Agent or as shall constitute the aggregate amount
of the Commitments, Loans and other Obligations of the assigning
Lender);
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PROVIDED, HOWEVER, that the Parent Company, the Borrower, the Issuing Lender and
the Administrative Agent may continue to deal solely and directly with such
Lender in connection with any interest so assigned to any such Person (each, an
"ASSIGNEE") until (A) written notice of such assignment, together with payment
instructions, addresses and related information with respect to the Assignee,
shall have been given to the Borrower and the Administrative Agent by such
Lender and the Assignee; (B) such Lender and its Assignee shall have delivered
to the Borrower and the Administrative Agent an Assignment and Assumption in the
form of EXHIBIT M (an "ASSIGNMENT AND ASSUMPTION"); and (C) in the case of any
assignment to an Assignee which is not already a Lender or a Lender Affiliate,
the assignor Lender or Assignee shall have paid to the Administrative Agent a
processing fee in the amount of $3,500.
(b) From and after the date that the Administrative Agent notifies the
assignor Lender that the requirements of PARAGRAPH (a) above are satisfied, (i)
the Assignee thereunder shall be a party hereto and, to the extent that rights
and obligations hereunder and under the other Loan Documents have been assigned
to it pursuant to such Assignment and Assumption, shall have the rights and
obligations of a Lender under the Loan Documents, and (ii) the assignor Lender
shall, to the extent that rights and obligations hereunder and under the other
Loan Documents have been assigned by it pursuant to such Assignment and
Assumption, relinquish its rights and be released from its obligations under the
Loan Documents. Anything herein to the contrary notwithstanding, any Lender
assigning all of its Loans, Commitments and other rights and obligations
hereunder to an Assignee shall continue to have the benefit of all indemnities
hereunder following such assignment.
(c) Immediately upon each Assignee's making its payment under the
Assignment and Assumption, this Agreement shall be deemed to be amended to the
extent, but only to the extent, necessary to reflect the addition of the
Assignee and the resulting adjustment of the Aggregate Commitment arising
therefrom. The Commitment allocated to an Assignee shall reduce the Commitment
of the assigning Lender PRO TANTO.
(d) Any Lender may at any time sell to one or more banks or other
Persons that are not Credit Parties or Affiliates of any Credit Parties (a
"PARTICIPANT") participating interests in any Loans, Revolving Commitment or
Incremental Commitment of such Lender and the other interests of such Lender
(the "ORIGINATING LENDER") hereunder and under the other Loan Documents;
PROVIDED, HOWEVER, that (i) the Originating Lender's obligations under this
Agreement shall remain unchanged, (ii) the Originating Lender shall remain
solely responsible for the performance of such obligations, (iii) the Parent
Company, the Borrower, the Issuing Lender and the Administrative Agent shall
continue to deal solely and directly with the Originating Lender in connection
with the Originating Lender's rights and obligations under this Agreement and
the other Loan Documents, and (iv) no Lender shall transfer or grant any
participating interest under which the Participant shall have rights to approve
any amendment to, or any termination, waiver or consent with respect to, this
Agreement or any other Loan Document; PROVIDED HOWEVER, that such Participant
shall have the right to approve any amendment, consent or waiver described in
CLAUSES (i), (ii) and (iii) of SECTION 12.1(b). In the case of any such
participation, the Participant shall be entitled to the benefit of SECTIONS 4.1,
4.3, 12.4 and 12.5, subject to the same limitations, as though it were also a
Lender hereunder, and, if amounts outstanding under this Agreement are due and
payable and unpaid, or shall have been declared or shall have become due and
payable during the continuation of any Event of Default, each Participant shall,
to the extent permitted under Applicable Law, be deemed to have the rights of
set-off in respect of its participating interest in amounts owing under this
Agreement to the
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same extent as if the amount of its participating interest were owing directly
to it as a Lender under this Agreement.
(e) Notwithstanding any other provision contained in this Agreement or
any other Loan Document to the contrary, any Lender may assign and pledge all or
any portion of the Loans or other Obligations held by it to any Federal Reserve
Bank or the United States Treasury as collateral security pursuant to Regulation
A of the Federal Reserve Board and any Operating Circular issued by such Federal
Reserve Bank; PROVIDED, HOWEVER, that any payment in respect of such assigned
Loans or other Obligations made by the Borrower or any other Credit Party to or
for the account of the assigning or pledging Lender in accordance with the terms
of this Agreement shall satisfy the Obligations of the Borrower or such other
Credit Party hereunder with respect to such assigned Loans to the extent of such
payment. No such assignment shall release the assigning Lender from its
obligations hereunder.
12.8. CONFIDENTIALITY. Each Lender shall hold all non-public
information obtained pursuant to the requirements hereof which has been
identified as confidential by Parent Company or the Borrower in accordance with
such Lender's customary procedures for handling confidential information of this
nature and in accordance with prudent banking practices, it being understood and
agreed by the Principal Companies that, in any event, a Lender may make
disclosures to Affiliates of such Lender or disclosures reasonably required by
any BONA FIDE or potential assignee, transferee or participant in connection
with the contemplated assignment, transfer or participation by such Lender of
any Loans or any participations therein or disclosures required or requested by
any Governmental Authority or representative thereof or pursuant to legal
process; PROVIDED, HOWEVER, unless specifically prohibited by Applicable Law or
court order, each Lender shall notify the Borrower of any request by any
Governmental Authority or representative thereof (other than any such request in
connection with any examination of such Lender by such Governmental Authority)
for disclosure of any such non-public information prior to disclosure of such
information; and, PROVIDED FURTHER, in no event shall any Lender be obligated or
required to return any materials furnished by the Borrower or by the Parent
Company or any of their Subsidiaries.
12.9. SET-OFF. In addition to any other rights and remedies of the
Lenders provided by law, and regardless of the adequacy of any Collateral, if
any Event of Default shall be continuing, each Lender is authorized at any time
and from time to time, without prior notice to the Parent Company or the
Borrower, any such notice being irrevocably waived by each of the Principal
Companies to the fullest extent permitted by law, to set off and apply, to the
fullest extent permitted by Applicable Law, any and all deposits (general or
special, time or demand, provisional or final) at any time held by, and other
indebtedness at any time owing by, such Lender to or for the credit or the
account of the Parent Company or the Borrower against any and all Obligations
owing to such Lender, now or at any time hereafter created, arising or existing,
irrespective of whether or not the Administrative Agent or such Lender shall
have made demand under this Agreement or any other Loan Document and although
such Obligations may be contingent or unmatured. Each Lender agrees promptly to
notify the Parent Company, the Borrower and the Administrative Agent after any
such set-off and application made by such Lender; PROVIDED, HOWEVER, that the
failure to give any such notice shall not affect the validity of such set-off
and application. The rights of each Lender under this SECTION 12.9 are in
addition to all of the other rights and remedies (including other rights of
set-off) which such Lender may have.
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12.10. SURVIVAL OF REPRESENTATIONS, WARRANTIES AND AGREEMENTS. All
representations, warranties and agreements made herein shall survive the
execution and delivery hereof and the making of each Credit Extension.
Notwithstanding anything herein or implied by law to the contrary, the
agreements of each Credit Party set forth in SECTIONS 4.1, 4.3, 4.4, 12.4, 12.5
and 12.9 shall survive the payment of the Loans, the cancellation or expiration
of the Letters of Credit and the reimbursement of any amounts drawn thereunder,
and the termination hereof. The agreements of the Principal Companies set forth
(a) in the fourth paragraph of Section 2 (SYNDICATION) of the Commitment Letter
among Fleet National Bank and the Principal Companies, dated as of December 10,
1999, and (b) in the Fee Letter, dated as of December 7, 1999, executed in
connection therewith, shall survive the execution and delivery of this Agreement
and the making of each Credit Extension.
12.11. MARSHALLING; PAYMENTS SET ASIDE. Neither the Administrative
Agent nor any Lender shall be under any obligation to marshal any assets in
favor of any Credit Party or any other Person or against or in payment of any or
all of the Obligations. To the extent that any Credit Party makes any payment or
payments to the Administrative Agent or Lenders (or to the Administrative Agent
for the benefit of Lenders), or the Administrative Agent or the Lenders enforce
any security interests or exercise their rights of setoff, and such payment or
payments or the proceeds of such enforcement or setoff or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside
and/or required to be repaid to a trustee, receiver or any other party under any
bankruptcy law, any other state or federal law, common law or any equitable
cause, then, to the extent of such recovery, the Obligations or part thereof
originally intended to be satisfied, and all Liens, rights and remedies therefor
or related thereto, shall be revived and continued in full force and effect as
if such payment or payments had not been made or such enforcement or set-off had
not occurred.
12.12. OBLIGATIONS SEVERAL; INDEPENDENT NATURE OF LENDERS' RIGHTS. The
obligations of the Lenders hereunder are several, and no Lender shall be
responsible for the obligations or Commitments of any other Lender hereunder.
Nothing contained herein or in any other Loan Document, and no action taken by
the Lenders pursuant hereto or thereto, shall be deemed to constitute the
Lenders as a partnership, an association, a joint venture or any other kind of
entity. The amounts payable at any time hereunder to each Lender shall, except
as otherwise expressly provided hereby, be a separate and independent debt, and
each Lender shall be entitled to protect and enforce its rights arising out of
this Agreement and the other Loan Documents, and it shall not be necessary for
any other Lender to be joined as an additional party in any proceeding for such
purpose.
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12.13. NOTIFICATION OF ADDRESSES, LENDING OFFICES, ETC. Each Lender
shall notify the Administrative Agent in writing of any changes in the address
to which notices to such Lender should be directed, of addresses of its Lending
Office, of payment instructions in respect of all payments to be made to it
hereunder and of such other administrative information as the Administrative
Agent shall reasonably request.
12.14. COUNTERPARTS. This Agreement may be executed by one or more of
the parties to this Agreement in any number of separate counterparts, each of
which, when so executed, shall be deemed an original, and all of said
counterparts taken together shall be deemed to constitute but one and the same
Instrument. A set of the copies of this Agreement signed by all of the parties
shall be lodged with the Borrower and the Administrative Agent.
12.15. SEVERABILITY. The illegality or unenforceability of any
provision of this Agreement or any Instrument required hereunder shall not in
any way affect or impair the legality or enforceability of the remaining
provisions of this Agreement or any Instrument required hereunder.
12.16. NO THIRD PARTIES BENEFITED. This Agreement is made and entered
into for the sole protection and legal benefit of the parties hereto and their
permitted successors and assigns, and no other Person shall be a direct or
indirect legal beneficiary of, or have any direct or indirect cause of action or
claim in connection with, this Agreement or any of the other Loan Documents.
None of the Administrative Agent, the Issuing Lender or any the Lenders shall
have any obligations to any Person not a party to this Agreement or any other
Loan Document.
12.17. GOVERNING LAW AND JURISDICTION; WAIVER OF TRIAL BY JURY.
(a) GOVERNING LAW. THIS AGREEMENT AND EACH OF THE OTHER LOAN DOCUMENTS
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
COMMONWEALTH OF MASSACHUSETTS.
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(b) JURISDICTION. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENTS MAY BE BROUGHT IN THE COURTS OF THE
COMMONWEALTH OF MASSACHUSETTS OR OF THE UNITED STATES FOR THE DISTRICT OF
MASSACHUSETTS, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE
PARENT COMPANY AND THE BORROWER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. TO THE EXTENT
PERMITTED BY APPLICABLE LAW, EACH OF THE PARENT COMPANY AND THE BORROWER
IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE
OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT
OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR OTHER DOCUMENT RELATED HERETO.
EACH OF THE PARENT COMPANY AND THE BORROWER WAIVES PERSONAL SERVICE OF ANY
SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS
PERMITTED BY MASSACHUSETTS LAW.
(c) WAIVER OF JURY TRIAL. THE PARTIES HERETO EACH WAIVE THEIR
RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON
OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR OTHER
LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR
PARTIES, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. THE
PARTIES HERETO EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED
BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES
FURTHER AGREE THAT THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY IS WAIVED BY
OPERATION OF THIS SECTION 12.17 AS TO ANY ACTION, COUNTERCLAIM OR OTHER
PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR
ENFORCEABILITY OF THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR ANY
PROVISIONS HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS.
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12.18. JOINDER OF ADDITIONAL LENDERS, ETC. The parties hereto have
agreed to syndicate the credit facilities described herein within thirty (30)
days after the Closing Date (the "Syndication Period"). Each Eligible Assignee
which executes and delivers to the Administrative Agent an Assignment and
Assumption in the form attached hereto as EXHIBIT M within the Syndication
Period, which is executed and accepted by the Administrative Agent, shall become
a signatory hereunder by executing additional signature pages to this Agreement.
By executing and delivering such additional signature pages, each such Eligible
Assignee shall become a party to this Agreement as a "LENDER" hereunder, and
expressly assumes all obligations and liabilities of a Lender hereunder.
In the event that either GE Capital Commercial Finance, Inc. or
Dresdner Bank AG, New York and Grand Cayman Branches executes and delivers an
Assignment and Assumption within the Syndication Period, each such Lender, in
addition to becoming a party to this Agreement as a "LENDER" hereunder, shall
become a party to this Agreement as a Syndication Agent (in the case of GE
Capital Commercial Finance, Inc.) or a Documentation Agent (in the case of
Dresdner Bank AG, New York and Grand Cayman Branches), as the case may be,
subject always, in each case, to the provisions set forth in SECTION 11.11. In
addition to executing signature pages to the Agreement as a Lender hereunder,
each of GE Capital Commercial Finance, Inc. and Dresdner Bank AG, New York and
Grand Cayman Branches shall execute signature pages to this Agreement as
Syndication Agent or Documentation Agent, as the case may be.
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IN WITNESS WHEREOF, the parties hereto have caused this CREDIT
AGREEMENT to be duly executed and delivered by their proper and duly authorized
officers as of the day and in the year first above written.
THE PARENT COMPANY:
-------------------
REGENT COMMUNICATIONS,
INC., as the Parent Company and
50 East RiverCenter Boulevard a Guarantor
Suite 180
Covington, Kentucky 41011
By: /s/ Anthony A. Vasconcellos
-------------------------------------
Name: Anthony A. Vasconcellos
Title: Vice President and
Chief Financial Officer
THE BORROWER:
-------------
REGENT BROADCASTING,
INC., as Borrower
By: /s/ Anthony A. Vasconcellos
-------------------------------------
Name: Anthony A. Vasconcellos
Title: Vice President and
Chief Financial Officer
THE ADMINISTRATIVE AGENT:
-------------------------
PAYMENT OFFICE ADDRESS: FLEET NATIONAL BANK, as
- ----------------------- Administrative Agent
100 Federal Street
Boston, MA 02110
By: /s/ Robert F. Milordi
-------------------------------------
Name: Robert F. Milordi
Title: Managing Director
THE LENDERS:
------------
FLEET NATIONAL BANK, as
the Issuing Lender and a Lender
By: /s/ Robert F. Milordi
-------------------------------------
Name: Robert F. Milordi
Title: Managing Director
134
-127-
THE SYNDICATION AGENT:
GENERAL ELECTRIC CAPITAL
CORPORATION, as Syndication Agent
By:_____________________________________
Name:
Title:
THE DOCUMENTATION AGENT:
------------------------
DRESDNER BANK AG, NEW YORK
AND GRAND CAYMAN BRANCHES, as
Documentation Agent
By:_____________________________________
Name:
Title:
By:_____________________________________
Name:
Title:
THE LENDERS:
------------
GENERAL ELECTRIC CAPITAL
CORPORATION
By:_____________________________________
Name:
Title:
DRESDNER BANK AG, NEW YORK
AND GRAND CAYMAN BRANCHES
By:_____________________________________
Name:
Title:
By:_____________________________________
Name:
Title:
135
-128-
MERCANTILE BANK NATIONAL
ASSOCIATION
By:_____________________________________
Name:
Title:
U.S. BANK NATIONAL ASSOCIATION
By:_____________________________________
Name:
Title:
SUMMIT BANK
By:_____________________________________
Name:
Title:
MICHIGAN NATIONAL BANK
By:_____________________________________
Name:
Title:
THE CIT GROUP/EQUIPMENT
FINANCING, INC.
By:_____________________________________
Name:
Title: