Exhibit 10.220
▇▇▇▇▇▇ COMMUNICATIONS CORPORATION
$200,000,000
10-3/4% Senior Subordinated Notes Due 2008
Purchase Agreement
New York, New York
June 29, 2001
▇▇▇▇▇▇▇ ▇▇▇▇▇ Barney Inc.
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated
CIBC World Markets Corp.
Bear, ▇▇▇▇▇▇▇ & Co. Inc.
As Representatives of the Initial Purchasers
c/o ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc.
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Ladies and Gentlemen:
▇▇▇▇▇▇ Communications Corporation, a corporation organized under the
laws of Delaware (the "Company"), proposes to issue and sell to the several
parties named in Schedule I hereto (the "Initial Purchasers"), for whom you (the
"Representatives") are acting as representatives, $200,000,000 principal amount
of its 10-3/4% Senior Subordinated Notes Due 2008 (the "Notes" and, together
with the Guarantees (as defined below), the "Securities"). The Securities are to
be issued under an indenture (the "Indenture"), dated as of July 12, 2001, among
the Company, the Guarantors (as defined below) and The Bank of New York, as
trustee (the "Trustee"). The Securities have the benefit of a registration
rights agreement (the "Registration Rights Agreement"), dated as of July 12,
2001, among the Company, the Guarantors and the Initial Purchasers, pursuant to
which the Company and the Guarantors have agreed to register the Securities
under the Act subject to the terms and conditions therein specified. The
Securities will be unconditionally guaranteed (the "Guarantees") on an unsecured
senior subordinated basis by each of the Company's direct and indirect domestic
subsidiaries set forth on the signature page hereto (the "Guarantors"). To the
extent there are no additional parties listed on Schedule I other than you, the
term Representatives as used herein shall mean you as the Initial Purchasers,
and the terms Representatives and Initial Purchasers shall mean either the
singular or plural as the context requires. The use of the neuter in this
Agreement shall include the feminine and masculine wherever appropriate. Certain
terms used herein are defined in Section 17 hereof.
The sale of the Securities to the Initial Purchasers will be made
without registration of the Securities under the Act in reliance upon exemptions
from the registration requirements of the Act.
In connection with the sale of the Securities, the Company has prepared
a preliminary offering memorandum, dated June 20, 2001 (as amended or
supplemented at the Execution Time, the "Preliminary Memorandum"), and a final
offering memorandum, dated June 29, 2001 (as amended or supplemented at the
Closing Date , the "Final Memorandum"). Each of the Preliminary Memorandum and
the Final Memorandum sets forth certain information concerning the Company, the
Guarantors and the Securities. The Company hereby confirms that it has
authorized the use of the Preliminary Memorandum and the Final Memorandum, and
any amendment or supplement thereto, in connection with the offer and sale of
the Securities by the Initial Purchasers.
1. REPRESENTATIONS AND WARRANTIES. The Company and the Guarantors,
jointly and severally, represent and warrant to each Initial Purchaser as set
forth below in this Section 1.
(a) The Preliminary Memorandum, at the date thereof, did not
contain any untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading. At the
Execution Time and on the Closing Date, the Final Memorandum did not,
and will not (and any amendment or supplement thereto, at the date
thereof and at the Closing Date, will not), contain any untrue
statement of a material fact or omit to state any material fact
necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided,
however, that the Company and the Guarantors make no representation or
warranty as to the information contained in or omitted from the
Preliminary Memorandum or the Final Memorandum, or any amendment or
supplement thereto, in reliance upon and in conformity with information
furnished in writing to the Company by or on behalf of the Initial
Purchasers through the Representatives specifically for inclusion
therein.
(b) None of the Company, the Guarantors, any of its or their
Affiliates or any person acting on its or their behalf has, directly or
indirectly, made offers or sales of any security, or solicited offers
to buy any security, under circumstances that would require the
registration of the Securities under the Act.
(c) None of the Company, the Guarantors, any of its or their
Affiliates or any person acting on its or their behalf has engaged in
any form of general solicitation or general advertising (within the
meaning of Regulation D) in connection with any offer or sale of the
Securities in the United States.
(d) The Securities satisfy the eligibility requirements of
Rule 144A(d)(3) under the Act.
(e) None of the Company, the Guarantors, any of its or their
Affiliates or any person acting on its or their behalf has engaged in
any directed selling efforts with respect to the Securities, and each
of them has complied with the offering restrictions requirement of
Regulation S. Terms used in this paragraph have the meanings given to
them by Regulation S.
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(f) The Company has been advised by the NASD's PORTAL Market
that the Securities have been designated PORTAL-eligible securities in
accordance with the rules and regulations of the NASD.
(g) The Company is not, and after giving effect to the
offering and sale of the Securities and the application of the proceeds
thereof as described in the Final Memorandum will not be, an
"investment company" within the meaning of the Investment Company Act,
without taking account of any exemption arising out of the number of
holders of the Company's securities.
(h) The Company is subject to and in full compliance with the
reporting requirements of Section 13 or Section 15(d) of the Exchange
Act.
(i) Neither the Company nor any of the Guarantors has paid or
agreed to pay to any person any compensation for soliciting another to
purchase any Securities (except as contemplated by this Agreement).
(j) Neither the Company nor any Guarantor has taken, directly
or indirectly, any action designed to cause or which has constituted or
which might reasonably be expected to cause or result, under the
Exchange Act or otherwise, in the stabilization or manipulation of the
price of any security of the Company to facilitate the sale or resale
of the Securities.
(k) Each of the Company and the Guarantors has been duly
incorporated or organized and is validly existing as a corporation or
limited liability company in good standing under the laws of the
jurisdiction in which it is chartered or organized with full corporate
or limited liability company power and authority to own or lease, as
the case may be, and to operate its properties and conduct its business
as described in the Final Memorandum, and is duly qualified to do
business as a foreign corporation or limited liability company and is
in good standing under the laws of each jurisdiction which requires
such qualification, except where the failure to be so qualified would
not reasonably be expected to have a material adverse effect on the
condition (financial or otherwise), prospects, earnings, business or
properties of the Company and its subsidiaries, taken as a whole.
Except as set forth on Schedule 1(l) hereto, the Company has no
subsidiaries other than the Guarantors.
(l) All the outstanding shares of capital stock of each
Guarantor have been duly and validly authorized and issued and are
fully paid and nonassessable, and all outstanding shares of capital
stock of the Guarantors are owned by the Company either directly or
through other wholly owned Guarantors free and clear of any perfected
security interest or any other security interests, claims, liens or
encumbrances, except as disclosed in the Final Memorandum.
(m) The statements in the Final Memorandum under the headings
"Description of Material Indebtedness and Preferred Stock,"
"Description of the Notes," "Exchange Offer; Registration Rights" and
"Important Federal Income Tax Considerations" fairly summarize the
matters therein described.
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(n) This Agreement has been duly authorized, executed and
delivered by the Company and each Guarantor; the Indenture has been
duly authorized and, assuming due authorization, execution and delivery
thereof by the Trustee, when executed and delivered by the Company and
each Guarantor, will constitute a legal, valid and binding instrument
enforceable against the Company and each Guarantor in accordance with
its terms (subject, as to the enforcement of remedies, to applicable
bankruptcy, reorganization, insolvency, moratorium or other laws
affecting creditors' rights generally from time to time in effect and
to general principles of equity); the Securities have been duly
authorized, and, when executed and, in the case of the Notes,
authenticated, in accordance with the provisions of the Indenture and
delivered to and paid for by the Initial Purchasers, will have been
duly executed and delivered by the Company and each Guarantor and will
constitute the legal, valid and binding obligations of the Company and
each Guarantor entitled to the benefits of the Indenture (subject, as
to the enforcement of remedies, to applicable bankruptcy, insolvency,
moratorium or other laws affecting creditors' rights generally from
time to time in effect and to general principles of equity); and the
Registration Rights Agreement has been duly authorized and, when
executed and delivered by the Company and each Guarantor, will
constitute the legal, valid, binding and enforceable agreement of the
Company and each Guarantor (subject, as to the enforcement of remedies,
to applicable bankruptcy, reorganization, insolvency, moratorium or
other laws affecting creditors' rights generally from time to time in
effect and to general principles of equity).
(o) No consent, approval, authorization, filing with or order
of any court or governmental agency or body is required in connection
with the transactions contemplated herein or in the Indenture or the
Registration Rights Agreement, except such as will be obtained under
the Act and the Trust Indenture Act and such as may be required under
the blue sky laws of any jurisdiction in connection with the purchase
and distribution of the Securities by the Initial Purchasers in the
manner contemplated herein and in the Final Memorandum and the
Registration Rights Agreement.
(p) Neither the execution and delivery of the Indenture, this
Agreement, the Registration Rights Agreement or the Senior Credit
Facility (as defined in the Final Memorandum), the issue and sale of
the Securities, nor the consummation of any other of the transactions
herein or therein contemplated or the consummation of the Refinancing
(as defined and described in the Final Memorandum), nor the fulfillment
of the terms hereof or thereof will conflict with, result in a breach
or violation or imposition of any lien, charge or encumbrance upon any
property or assets of the Company or any of its subsidiaries pursuant
to, (i) the charter (including any certificates of designation) or
by-laws of the Company or any of its subsidiaries; (ii) the terms of
any indenture, contract, lease, mortgage, deed of trust, note
agreement, loan agreement or other agreement, obligation, condition,
covenant or instrument to which the Company or any of its subsidiaries
is a party or bound or to which its or their property is subject; or
(iii) any statute, law, rule, regulation, judgment, order or decree
applicable to the Company or any of its subsidiaries of any court,
regulatory body, administrative agency, governmental body, arbitrator
or other authority having jurisdiction over the Company or any of its
subsidiaries or any of its or their properties.
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(q) The consolidated historical financial statements and
schedules of the Company and its consolidated subsidiaries included in
the Final Memorandum present fairly in all material respects the
financial condition, results of operations and cash flows of the
Company as of the dates and for the periods indicated, comply as to
form with the applicable accounting requirements of the Act and have
been prepared in conformity with generally accepted accounting
principles applied on a consistent basis throughout the periods
involved (except as otherwise noted therein); the selected financial
data set forth under the caption "Selected Consolidated Financial and
Other Data" in the Final Memorandum fairly present, on the basis stated
in the Final Memorandum, the information included therein.
(r) No action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the
Company or any of its subsidiaries or its or their property is pending
or, to the best knowledge of the Company, threatened that (i) could
reasonably be expected to have a material adverse effect on the
performance of this Agreement, the Indenture or the Registration Rights
Agreement, or the consummation of any of the transactions contemplated
hereby or thereby; or (ii) could reasonably be expected to have a
material adverse effect on the condition (financial or otherwise),
prospects, earnings, business or properties of the Company and its
subsidiaries, taken as a whole, whether or not arising from
transactions in the ordinary course of business.
(s) Each of the Company and its subsidiaries owns or leases
all such properties as are used in the conduct of its operations as
presently conducted, except where the failure to own or lease such
properties would not reasonably be expected to have a material adverse
effect on the condition (financial or otherwise), prospects, earnings,
business or properties of the Company and its subsidiaries, taken as a
whole.
(t) Neither the Company nor any subsidiary is in violation or
default of (i) any provision of its charter (including any certificates
of designation) or bylaws; (ii) the terms of any indenture, contract,
lease, mortgage, deed of trust, note agreement, loan agreement or other
agreement, obligation, condition, covenant or instrument to which it is
a party or bound or to which its property is subject; or (iii) any
statute, law, rule, regulation, judgment, order or decree applicable to
the Company or any of its subsidiaries of any court, regulatory body,
administrative agency, governmental body, arbitrator or other authority
having jurisdiction over the Company or such subsidiary or any of its
properties, as applicable, except in the case of each of clauses (ii)
and (iii) for such violations or defaults which would not reasonably be
expected to have a material adverse effect on the condition (financial
or otherwise), prospects, earnings, business or properties of the
Company and its subsidiaries, taken as a whole.
(u) PricewaterhouseCoopers LLP, who have certified certain
financial statements of the Company and its consolidated subsidiaries
and delivered their report with respect to the audited consolidated
financial statements and schedules included in the Final Memorandum,
are independent public accountants with respect to the Company
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within the meaning of the Act and the applicable published rules and
regulations thereunder.
(v) There are no stamp or other issuance or transfer taxes or
duties or other similar fees or charges required to be paid in
connection with the execution and delivery of this Agreement or the
issuance or sale by the Company and the Guarantors of the Securities.
(w) The Company and each of the Guarantors has filed all
foreign, federal, state and local tax returns that are required to be
filed or has requested extensions thereof, except in any case in which
the failure so to file would not have a material adverse effect on the
condition (financial or otherwise), prospects, earnings, business or
properties of the Company and its subsidiaries, taken as a whole,
whether or not arising from transactions in the ordinary course of
business, except as set forth in or contemplated in the Final
Memorandum (exclusive of any amendment or supplement thereto) and has
paid all taxes required to be paid by it and any other assessment, fine
or penalty levied against it, to the extent that any of the foregoing
is due and payable, except for any such assessment, fine or penalty
that is currently being contested in good faith or as would not have a
material adverse effect on the condition (financial or otherwise),
prospects, earnings, business or properties of the Company and its
subsidiaries, taken as a whole, whether or not arising from
transactions in the ordinary course of business, except as set forth in
or contemplated in the Final Memorandum (exclusive of any amendment or
supplement thereto).
(x) No labor problem or dispute with the employees of the
Company or any of its subsidiaries exists or is threatened or imminent,
and the Company is not aware of any existing or imminent labor
disturbance by the employees of any of its or its subsidiaries'
principal suppliers, contractors or customers, that could have a
material adverse effect on the condition (financial or otherwise),
prospects, earnings, business or properties of the Company and its
subsidiaries, taken as a whole, whether or not arising from
transactions in the ordinary course of business, except as set forth in
or contemplated in the Final Memorandum (exclusive of any amendment or
supplement thereto).
(y) The Company and each of its subsidiaries are insured by
insurers of recognized financial responsibility against such losses and
risks and in such amounts as are prudent and customary in the
businesses in which they are engaged; all policies of insurance and
fidelity or surety bonds insuring the Company or any of its
subsidiaries or their respective businesses, assets, employees,
officers and directors are in full force and effect; the Company and
its subsidiaries are in compliance with the terms of such policies and
instruments in all material respects; and there are no claims by the
Company or any of its subsidiaries under any such policy or instrument
as to which any insurance company is denying liability or defending
under a reservation of rights clause, where the failure of the Company
or such subsidiary to prevail on such claim would reasonably be
expected to have a material adverse effect on the condition (financial
or otherwise), prospects, earnings, business or properties of the
Company and its subsidiaries, taken as a
6
whole; and neither the Company nor any such subsidiary has any reason
to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar
coverage from similar insurers as may be necessary to continue its
business at a cost that would not have a material adverse effect on the
condition (financial or otherwise), prospects, earnings, business or
properties of the Company and its subsidiaries, taken as a whole,
whether or not arising from transactions in the ordinary course of
business, except as set forth in or contemplated in the Final
Memorandum (exclusive of any amendment or supplement thereto).
(z) No subsidiary of the Company is currently prohibited,
directly or indirectly, from paying any dividends to the Company, from
making any other distribution on such subsidiary's capital stock, from
repaying to the Company any loans or advances to such subsidiary from
the Company or from transferring any of such subsidiary's property or
assets to the Company or any other subsidiary of the Company, except as
described in or contemplated by the Final Memorandum (exclusive of any
amendment or supplement thereto).
(aa) The Company and its subsidiaries possess all licenses,
certificates, franchises, permits and other authorizations ("Licenses")
issued by the appropriate federal, state or foreign regulatory
authorities, including, without limitation, Licenses from the United
States Federal Communications Commission (the "FCC"), necessary to own
their respective properties and to conduct their respective businesses
in all material respects, and neither the Company nor any such
subsidiary has received any notice of proceedings relating to the
revocation or modification of any such License which, singly or in the
aggregate, if the subject of an unfavorable decision, ruling or
finding, would have a material adverse effect on the condition
(financial or otherwise), prospects, earnings, business or properties
of the Company and its subsidiaries, taken as a whole, whether or not
arising from transactions in the ordinary course of business, except as
set forth in or contemplated in the Final Memorandum (exclusive of any
amendment or supplement thereto); the Company and each of its
subsidiaries have fulfilled and performed in all material respects all
of their respective obligations with respect to such Licenses and no
event has occurred that allows, or after notice or lapse of time would
allow, revocation or termination thereof or results in any other
material impairment of the rights of the holders of any such License,
except as individually or in the aggregate could not reasonably be
expected to have a material adverse effect on the condition (financial
or otherwise), prospects, earnings, business or properties of the
Company and its subsidiaries, taken as a whole, whether or not arising
from transactions in the ordinary course of business; and except as
described in the Final Memorandum (exclusive of any amendment or
supplement thereto), none of such Licenses contains any restriction
that is materially burdensome to the Company or any of its
subsidiaries, taken as a whole. There are no license renewal or rate or
tariff proceedings existing, pending or, to the best knowledge of the
Company, threatened that could reasonably be expected to have a
material adverse effect on the condition (financial or otherwise),
prospects, earnings, business or properties of the Company and its
subsidiaries, taken as a whole.
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(bb) The Company and each of its subsidiaries maintain a
system of internal accounting controls sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with
management's general or specific authorizations; (ii) transactions are
recorded as necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles and to
maintain asset accountability; (iii) access to assets is permitted only
in accordance with management's general or specific authorization; and
(iv) the recorded accountability for assets is compared with the
existing assets at reasonable intervals and appropriate action is taken
with respect to any differences.
(cc) The Company and its subsidiaries are (i) in compliance
with any and all applicable foreign, federal, state and local laws and
regulations relating to the protection of human health and safety, the
environment or hazardous or toxic substances or wastes, pollutants or
contaminants ("Environmental Laws"); (ii) have received and are in
compliance with all permits, licenses or other approvals required of
them under applicable Environmental Laws to conduct their respective
businesses; and (iii) have not received notice of any actual or
potential liability for the investigation or remediation of any
disposal or release of hazardous or toxic substances or wastes,
pollutants or contaminants, except where such non-compliance with
Environmental Laws, failure to receive required permits, licenses or
other approvals, or liability would not, individually or in the
aggregate, have a material adverse effect on the condition (financial
or otherwise), prospects, earnings, business or properties of the
Company and its subsidiaries, taken as a whole, whether or not arising
from transactions in the ordinary course of business, except as set
forth in or contemplated in the Final Memorandum (exclusive of any
amendment or supplement thereto); except as set forth in the Final
Memorandum, neither the Company nor any of its subsidiaries has been
named as a "potentially responsible party" under the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as
amended.
(dd) The Company has reasonably concluded that the costs and
liabilities associated with the effect of Environmental Laws on the
business, operations and properties of the Company and its subsidiaries
(including, without limitation, any capital or operating expenditures
required for clean-up, closure of properties or compliance with
Environmental Laws, or any permit, license or approval under
Environmental Laws, any related constraints on operating activities
imposed by Environmental Laws and any potential liabilities to third
parties under Environmental Laws) would not, singly or in the
aggregate, have a material adverse effect on the condition (financial
or otherwise), prospects, earnings, business or properties of the
Company and its subsidiaries, taken as a whole, whether or not arising
from transactions in the ordinary course of business, except as set
forth in or contemplated in the Final Memorandum (exclusive of any
amendment or supplement thereto).
(ee) Each of the Company and its subsidiaries has fulfilled
its obligations, if any, under the minimum funding standards of ▇▇▇▇▇▇▇
▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ Employee Retirement Income Security Act of
1974, as amended ("ERISA"), and the regulations and published
interpretations thereunder with respect to each "plan" (as
8
defined in Section 3(3) of ERISA and such regulations and published
interpretations) in which employees of the Company and its subsidiaries
are eligible to participate and each such plan is in compliance in all
material respects with the presently applicable provisions of ERISA and
such regulations and published interpretations; the Company and its
subsidiaries have not incurred any unpaid liability to the Pension
Benefit Guaranty Corporation (other than for the payment of premiums in
the ordinary course) or to any such plan under Title IV of ERISA.
(ff) Each of the relationships and transactions specified in
Item 404 of Regulation S-K that would have been required to be
described in a prospectus if this offering had been registered under
the Act have been so described in the Final Memorandum (exclusive of
any amendment or supplement thereto).
(gg) The Company and its subsidiaries own, possess, license or
have other rights to use, on reasonable terms, all patents, patent
applications, trade and service marks, trade and service ▇▇▇▇
registrations, trade names, copyrights, licenses, inventions, trade
secrets, technology, know-how and other intellectual property necessary
for and material to the conduct of the Company's business as described
in the Final Memorandum (collectively, the "Intellectual Property").
Except as set forth in the Final Memorandum, (a) there are no rights of
third parties to any such Intellectual Property; (b) there is no
material infringement by third parties of any such Intellectual
Property; (c) there is no pending or, to the Company's knowledge,
threatened action, suit, proceeding or claim by others challenging the
Company's rights in or to any such Intellectual Property, and the
Company is unaware of any facts which would form a reasonable basis for
any such claim; (d) there is no pending or, to the Company's knowledge,
threatened action, suit, proceeding or claim by others challenging the
validity or scope of any such Intellectual Property, and the Company is
unaware of any facts which would form a reasonable basis for any such
claim; (e) there is no pending or, to the Company's knowledge,
threatened action, suit, proceeding or claim by others that the Company
infringes or otherwise violates any patent, trademark, copyright, trade
secret or other proprietary rights of others, and the Company is
unaware of any other fact which would form a reasonable basis for any
such claim; (f) there is no U.S. patent or published U.S. patent
application which contains claims that dominate or may dominate any
Intellectual Property described in the Final Memorandum as being owned
by or licensed to the Company or that interferes with the issued or
pending claims of any such Intellectual Property; and (g) there is no
prior art of which the Company is aware that may render any U.S. patent
held by the Company invalid or any U.S. patent application held by the
Company unpatentable which has not been disclosed to the U.S. Patent
and Trademark Office.
(hh) Based upon a review of the FCC files, (a) the Company and
its subsidiaries hold the broadcast licenses issued by the FCC with
respect to each of the stations set forth in the table under
"Business--Distribution" in the Final Memorandum (except as otherwise
disclosed therein) without which the station would not be permitted to
broadcast its signal (the "FCC Licenses") and (b) each of the FCC
Licenses authorizes
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television broadcast operations by the holder thereof using the
broadcast channel assignment and serving the community of license that
is identified in such table.
(ii) To the Company's knowledge, there is no order, judgment,
decree, notice of apparent liability, or order of forfeiture
outstanding, and no petition, objection, notice of apparent liability,
order of forfeiture, investigation, complaint, or other proceeding
pending before the FCC against the stations authorized by the FCC
Licenses set forth in the table referred to in clause (jj) above (the
"Stations") or the FCC Licenses that reasonably could be expected to
result in the termination, revocation, suspension, or denial of renewal
of any of the FCC Licenses, except for rule making and other similar
proceedings generally applicable to the television broadcasting
industry or substantial segments thereof.
(jj) To the Company's knowledge, except as set forth in the
Final Memorandum, (a) there are no license renewal proceedings (other
than applications for renewal filed in the ordinary course) pending for
any of the FCC Licenses; and (b) none of the FCC Licenses is subject to
any condition imposed by the FCC that reasonably could be expected to
have a material adverse effect on the Company's ability to conduct its
broadcast operations as described in the Final Memorandum, taken as a
whole.
(kk) The execution, delivery and performance of this
Agreement, the Registration Rights Agreement and the Indenture and the
issuance, sale and delivery of the Securities pursuant to this
Agreement and the execution and delivery of the Securities (A) do not
require any consent or authorization from the FCC, and (B) do not
constitute a violation of the Communications Act or the published rules
and regulations of the FCC promulgated thereunder.
(ll) The statements in the Final Memorandum under the captions
"Risk Factors--Risks Relating to Our Business--We are required by the
FCC to abandon the analog broadcast service of 24 of our full power
stations occupying the 700 MHz spectrum and may suffer adverse
consequences if we are unable to secure alternative distribution on
reasonable terms," "Risk Factors--Risks Relating to Our Industry--Our
business is subject to extensive and changing regulation that could
increase our costs, expose us to greater competition, or otherwise
adversely affect the ownership and operation of our stations or our
business strategies," "Risks Factors--Risks Relating to Our
Industry--We believe that the success of our television operations
depends to a significant extent upon access to households served by
cable television systems. If the law requiring cable system operators
to carry our signal were to change, we might lose access to cable
television households, which could adversely affect our operations,"
"Risk Factors--Risks Relating to Our Industry--Recently enacted federal
legislation requiring satellite television service providers to carry
broadcast television signals may adversely affect our rights to have
our television broadcast signals carried on satellite service
providers" and "Business - Federal Regulation of Broadcasting," insofar
as they constitute summaries of the Communications Act and the
published rules and regulations of the FCC promulgated thereunder,
fairly summarize the matters therein described and are accurate in all
material respects.
10
(mm) There are no restrictions or limitations imposed by the
FCC on the ability of the Company to make cash payments in respect of
the Securities in accordance with their terms.
Any certificate signed by any officer of the Company and delivered to
the Representatives or counsel for the Initial Purchasers in connection with the
offering of the Securities shall be deemed a representation and warranty by the
Company, as to matters covered thereby, to each Initial Purchaser.
2. PURCHASE AND SALE. Subject to the terms and conditions and in
reliance upon the representations and warranties herein set forth, the Company
and the Guarantors agree to sell to each Initial Purchaser, and each Initial
Purchaser agrees, severally and not jointly, to purchase from the Company and
the Guarantors, at a purchase price of 97.5% of the principal amount thereof,
plus accrued interest, if any, from July 12, 2001 to the Closing Date, the
principal amount of Securities set forth opposite such Initial Purchaser's name
in Schedule I hereto.
3. DELIVERY AND PAYMENT. Delivery of and payment for the Securities
shall be made at 10:00 A.M., New York City time, on July 12, 2001, or at such
time on such later date (not later than July 17, 2001) as the Representatives
shall designate, which date and time may be postponed by agreement between the
Representatives and the Company or as provided in Section 9 hereof (such date
and time of delivery and payment for the Securities being herein called the
"Closing Date"). Delivery of the Securities shall be made to the Representatives
for the respective accounts of the several Initial Purchasers against payment by
the several Initial Purchasers through the Representatives of the purchase price
thereof to or upon the order of the Company by wire transfer payable in same-day
funds to the account specified by the Company. Delivery of the Securities shall
be made through the facilities of The Depository Trust Company unless the
Representatives shall otherwise instruct.
4. OFFERING BY INITIAL PURCHASERS. Each Initial Purchaser, severally
and not jointly, represents and warrants to and agrees with the Company and the
Guarantors that:
(a) It has not offered or sold, and will not offer or sell,
any Securities except to those it reasonably believes to be qualified
institutional buyers (as defined in Rule 144A under the Act) and that,
in connection with each such sale, it has taken or will take reasonable
steps to ensure that the purchaser of such Securities is aware that
such sale is being made in reliance on Rule 144A.
(b) Neither it nor any person acting on its behalf has made or
will make offers or sales of the Securities in the United States by
means of any form of general solicitation or general advertising
(within the meaning of Regulation D) in the United States.
11
5. AGREEMENTS. The Company and each Guarantor agrees with each Initial
Purchaser that:
(a) The Company will furnish to each Initial Purchaser and to
counsel for the Initial Purchasers, without charge, during the period
referred to in paragraph (c) below, as many copies of the Final
Memorandum and any amendments and supplements thereto as they may
reasonably request.
(b) The Company will not amend or supplement the Final
Memorandum without the prior written consent of the Representatives.
(c) If at any time prior to the completion of the sale of the
Securities by the Initial Purchasers (as determined by the
Representatives), any event occurs as a result of which the Final
Memorandum, as then amended or supplemented, would include any untrue
statement of a material fact or omit to state any material fact
necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or if it
should be necessary to amend or supplement the Final Memorandum to
comply with applicable law, the Company promptly (i) will notify the
Representatives of any such event; (ii) subject to the requirements of
paragraph (b) of this Section 5, will prepare an amendment or
supplement that will correct such statement or omission or effect such
compliance; and (iii) will supply any supplemented or amended Final
Memorandum to the several Initial Purchasers and counsel for the
Initial Purchasers without charge in such quantities as they may
reasonably request.
(d) The Company will arrange, if necessary, for the
qualification of the Securities for sale by the Initial Purchasers
under the laws of such jurisdictions as the Initial Purchasers may
designate and will maintain such qualifications in effect so long as
required for the sale of the Securities; provided that in no event
shall the Company be obligated to qualify to do business in any
jurisdiction where it is not now so qualified or to take any action
that would subject it to service of process in suits, other than those
arising out of the offering or sale of the Securities, in any
jurisdiction where it is not now so subject. The Company will promptly
advise the Representatives of the receipt by the Company of any
notification with respect to the suspension of the qualification of the
Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose.
(e) The Company and the Guarantors will not, and will not
permit any of its or their Affiliates to, resell any Securities that
have been acquired by any of them.
(f) None of the Company, the Guarantors, any of its or their
Affiliates, or any person acting on its or their behalf will, directly
or indirectly, make offers or sales of any security, or solicit offers
to buy any security, under circumstances that would require the
registration of the Securities under the Act.
(g) None of the Company, the Guarantors, any of its or their
Affiliates or any person acting on its or their behalf will engage in
any form of general solicitation
12
or general advertising (within the meaning of Regulation D) in
connection with any offer or sale of the Securities in the United
States.
(h) So long as any of the Securities are "restricted
securities" within the meaning of Rule 144(a)(3) under the Act, the
Company and the Guarantors will, during any period in which the Company
is not subject to and in compliance with Section 13 or 15(d) of the
Exchange Act or is not exempt from such reporting requirements pursuant
to and in compliance with Rule 12g3-2(b) under the Exchange Act,
provide to each holder of such restricted securities and to each
prospective purchaser (as designated by such holder) of such restricted
securities, upon the request of such holder or prospective purchaser,
any information required to be provided by Rule 144A(d)(4) under the
Act. This covenant is intended to be for the benefit of the holders,
and the prospective purchasers designated by such holders, from time to
time of such restricted securities.
(i) None of the Company, the Guarantors, any of its or their
Affiliates or any person acting on its or their behalf will engage in
any directed selling efforts with respect to the Securities, and each
of them will comply with the offering restrictions requirement of
Regulation S. Terms used in this paragraph have the meanings given to
them by Regulation S.
(j) The Company will cooperate with the Representatives and
use its best efforts to permit the Securities to be eligible for
clearance and settlement through The Depository Trust Company.
(k) Neither the Company nor any Guarantor will take, directly
or indirectly, any action designed to or which has constituted or which
might reasonably be expected to cause or result, under the Exchange Act
or otherwise, in stabilization or manipulation of the price of any
security of the Company to facilitate the sale or resale of the
Securities.
(l) The Company agrees to pay the costs and expenses relating
to the following matters: (i) the preparation of the Indenture and the
Registration Rights Agreement, the issuance of the Securities and the
fees of the Trustee; (ii) the preparation, printing or reproduction of
the Preliminary Memorandum and Final Memorandum and each amendment or
supplement to either of them; (iii) the printing (or reproduction) and
delivery (including postage, air freight charges and charges for
counting and packaging) of such copies of the Preliminary Memorandum
and Final Memorandum, and all amendments or supplements to either of
them, as may, in each case, be reasonably requested for use in
connection with the offering and sale of the Securities; (iv) the
preparation, printing, authentication, issuance and delivery of
certificates for the Securities, including any stamp or transfer taxes
in connection with the original issuance and sale of the Securities;
(v) the printing (or reproduction) and delivery of this Agreement, any
blue sky memorandum and all other agreements or documents printed (or
reproduced) and delivered in connection with the offering of the
Securities; (vi) any registration or qualification of the Securities
for offer and sale under the securities or blue sky laws of the several
states (including filing fees and the reasonable fees and expenses
13
of counsel for the Initial Purchasers relating to such registration and
qualification); (vii) admitting the Securities for trading in the
PORTAL Market; (viii) the transportation and other expenses incurred by
or on behalf of Company representatives in connection with
presentations to prospective purchasers of the Securities; (ix) the
fees and expenses of the Company's accountants and the fees and
expenses of counsel (including local and special counsel) for the
Company; and (x) all other costs and expenses incident to the
performance by the Company of its obligations hereunder.
6. CONDITIONS TO THE OBLIGATIONS OF THE INITIAL PURCHASERS. The
obligations of the Initial Purchasers to purchase the Securities shall be
subject to the accuracy of the representations and warranties on the part of the
Company and the Guarantors contained herein at the Execution Time, the Closing
Date and any settlement date pursuant to Section 3 hereof, to the accuracy of
the statements of the Company and the Guarantors made in any certificates
pursuant to the provisions hereof, to the performance by the Company and the
Guarantors of its or their obligations hereunder and to the following additional
conditions:
(a) The Company shall have requested and caused Holland &
Knight LLP, counsel for the Company and the Guarantors, to furnish to
the Representatives its opinion, dated the Closing Date and addressed
to the Representatives, to the effect that:
(i) the Company and each Guarantor which is a
Florida, New York or Delaware corporation or limited liability
company has been duly incorporated or organized and is validly
existing as a corporation or limited liability company in good
standing under the laws of the jurisdiction in which it is
chartered or organized, with full corporate or limited
liability company power and authority to own or lease, as the
case may be, and to operate its properties and conduct its
business as described in the Final Memorandum, and is duly
qualified to transact business as a foreign entity and is in
good standing under the laws of each jurisdiction in which the
character of its business requires such qualification, except
where the failure to be so qualified would not have a material
adverse effect on the condition (financial or otherwise),
prospects, earnings, business or properties of the Company and
its subsidiaries, taken as a whole;
(ii) all the outstanding shares of capital stock of
the Company and, to our knowledge, each Guarantor, have been
duly authorized and validly issued and are fully paid and
nonassessable, and, except as otherwise set forth in the Final
Memorandum, all outstanding shares of capital stock of the
Guarantor are owned by the Company either directly or through
wholly owned subsidiaries free and clear of any perfected
security interest;
(iii) the Indenture has been duly authorized,
executed and delivered, and constitutes a legal, valid and
binding instrument enforceable against the Company and the
Guarantors in accordance with its terms (subject, as to the
enforcement of remedies, to applicable bankruptcy,
reorganization, insolvency, moratorium or other laws affecting
creditors' rights generally from time to time in effect and to
general principles of equity); the issuance of the Securities
has been duly authorized and, when executed and, in the case
of the
14
Notes, authenticated, in accordance with the provisions of the
Indenture and delivered to and paid for by the Initial
Purchasers under this Agreement, will constitute legal, valid,
binding and enforceable obligations of the Company and the
Guarantors entitled to the benefits of the Indenture (subject,
as to the enforcement of remedies, to applicable bankruptcy,
reorganization, insolvency, moratorium or other laws affecting
creditors' rights generally from time to time in effect and to
general principles of equity); the Registration Rights
Agreement has been duly authorized, executed and delivered and
constitutes the legal, valid, binding and enforceable
agreement of the Company and the Guarantors (subject, as to
the enforcement of remedies, to applicable bankruptcy,
reorganization, insolvency, moratorium or other laws affecting
creditors' rights generally from time to time in effect and to
general principles of equity); and the statements set forth
under the headings "Description of the Notes" and "Exchange
Offer; Registration Rights" in the Final Memorandum, insofar
as such statements purport to summarize certain provisions of
the Securities, the Indenture and the Registration Rights
Agreement, are accurate;
(iv) other than as described in the Final Memorandum,
to the knowledge of such counsel, there is no pending or
threatened action, suit or proceeding by or before any court
or governmental agency, authority or body or any arbitrator
involving the Company or any of its subsidiaries or its or
their property that would be required to be disclosed in a
registration statement filed under the Act; and the statements
in the Final Memorandum under the heading "Business--Legal
Proceedings," "Description of Material Indebtedness and
Preferred Stock," "Description of the Notes," "Exchange Offer;
Registration Rights" and "Important Federal Income Tax
Considerations" accurately summarize the matters therein
described;
(v) such counsel has no reason to believe that at the
Execution Time and on the Closing Date the Final Memorandum
contained or contains any untrue statement of a material fact
or omitted or omits to state any material fact necessary to
make the statements therein, in the light of the circumstances
under which they were made, not misleading (in each case,
other than the financial statements and other financial
information contained therein, as to which such counsel need
express no opinion);
(vi) this Agreement has been duly authorized,
executed and delivered by the Company;
(vii) the Company and each Guarantor has all
requisite corporate or limited liability company power and
authority, has taken all requisite corporate or limited
liability company action, and has received and is in
compliance with all governmental, judicial and other
authorizations, approvals and orders necessary to enter into
and perform this Agreement, the Indenture, the Registration
Rights Agreement and the Securities, and no consent, approval,
authorization, filing with or order of any court or
governmental agency or body is required in connection
15
with the transactions contemplated herein or in the Indenture
and the Registration Rights Agreement, except such as may be
required under the Act and the Trust Indenture Act and such as
may be required under the blue sky or securities laws of any
jurisdiction in connection with the purchase and sale of the
Securities by the Initial Purchasers in the manner
contemplated in this Agreement and the Final Memorandum and
the Registration Rights Agreement and such other approvals
(specified in such opinion) as have been obtained;
(viii) neither the execution and delivery of the
Indenture, this Agreement or the Registration Rights
Agreement, the issue and sale of the Securities, nor the
consummation of any other of the transactions herein or
therein contemplated or the consummation of the Refinancing
(as defined and described in the Final Memorandum), nor the
fulfillment of the terms hereof or thereof will conflict with
or result in a breach or violation of or imposition of any
lien, charge or encumbrance upon any property or asset of the
Company or its subsidiaries pursuant to, (i) the charter
(including any certificates of designation) or by-laws of the
Company or its subsidiaries; (ii) the terms of any indenture,
contract, lease, mortgage, deed of trust, note agreement, loan
agreement or other agreement, obligation, condition, covenant
or instrument to which the Company or any of its subsidiaries
is a party or bound or to which its respective property is
subject and which has been filed as an exhibit to any Company
filing under the Act or the Exchange Act, except that such
counsel need express no opinion as to contracts, agreements
and other instruments relating to broadcast station purchases
and sales which are dated prior to June 1, 1999; or (iii) any
statute, law, rule, regulation, or, to such counsel's
knowledge, any judgment, order or decree applicable to the
Company or any of its subsidiaries of any court, regulatory
body, administrative agency, governmental body, arbitrator or
other authority having jurisdiction over the Company, any of
its subsidiaries or any of their respective properties;
(ix) assuming the accuracy of the representations and
warranties and compliance with the agreements contained
herein, no registration of the Securities under the Act, and
no qualification of an indenture under the Trust Indenture
Act, are required for the offer and sale by the Initial
Purchasers of the Securities in the manner contemplated by
this Agreement; the Indenture is in appropriate form for
qualification under the Trust Indenture Act;
(x) the Company is not and, after giving effect to
the offering and sale of the Securities and the application of
the proceeds thereof as described in the Final Memorandum,
will not be an "investment company" as defined in the
Investment Company Act without taking account of any exemption
arising out of the number of holders of the Company's
securities;
(xi) Based upon a review of the FCC files, (a) the
Company and its subsidiaries hold the FCC Licenses with
respect to each of the stations set forth in the table under
"Business--Distribution" in the Final Memorandum (except as
otherwise disclosed therein) and (b) each of the FCC Licenses
authorizes
16
television broadcast operations by the holder thereof using
the broadcast channel assignment and serving the community of
license that is identified in such table;
(xii) To such counsel's knowledge, based upon the
review of the publicly available records of the FCC and
inquiry to officers of the Company, there is no order,
judgment, decree, notice of apparent liability, or order of
forfeiture outstanding, and no petition, objection, notice of
apparent liability, order of forfeiture, investigation,
complaint, or other proceeding pending before the FCC against
the Stations or the FCC Licenses that reasonably could be
expected to result in the termination, revocation, suspension,
or denial of renewal of any of the FCC Licenses, except for
rule making and other similar proceedings generally applicable
to the television broadcasting industry or substantial
segments thereof;
(xiii) To such counsel's knowledge based upon the
review of the publicly available files of the FCC and inquiry
to officers of the Company, other than as disclosed in the
Final Memorandum (a) there are no license renewal proceedings
(other than applications for renewal filed in the ordinary
course) pending for any of the FCC Licenses; and (b) none of
the FCC Licenses is subject to any condition imposed by the
FCC that reasonably could be expected to have a material
adverse effect on the Company's ability to conduct its
broadcast operations as described in the Final Memorandum,
taken as a whole;
(xiv) The issuance, sale and delivery of the
Securities pursuant to this Agreement and the execution and
delivery of the Securities (A) do not require any consent or
authorization from the FCC, and (B) do not constitute a
violation of the Communications Act or the published rules and
regulations of the FCC promulgated thereunder;
(xv) The statements in the Final Memorandum under the
captions "Risk Factors - Risks Relating to Our Business--We
are required by the FCC to abandon the analog broadcast
service of 24 of our full power stations occupying the 700 MHz
spectrum and may suffer adverse consequences if we are unable
to secure alternative distribution on reasonable terms," "Risk
Factors--Risks Relating to Our Industry--Our business is
subject to extensive and changing regulation that could
increase our costs, expose us to greater competition, or
otherwise adversely affect the ownership and operation of our
stations or our business strategies," "Risk Factors--Risks
Relating to Our Industry--We believe that the success of our
television operations depends to a significant extent upon
access to households served by cable television systems. If
the law requiring cable system operators to carry our signal
were to change, we might lose access to cable television
households, which could adversely affect our operations,"
"Risk Factors--Risks Relating to Our Industry--Recently
enacted federal legislation requiring satellite television
service providers to carry broadcast television signals may
adversely affect our rights to have our television broadcast
signals carried on satellite service providers" and "Business
- Federal
17
Regulation of Broadcasting," insofar as they constitute
summaries of the Communications Act and the published rules
and regulations of the FCC promulgated thereunder, have been
reviewed by such counsel and are accurate in all material
respects;
(xvi) The execution, delivery and performance of this
Agreement by the Company and the Guarantors (A) do not require
any consent or authorization from the FCC, and (B) do not
violate the Communications Act and the rules and regulations
promulgated thereunder; and
(xvii) There are no restrictions or limitations
imposed by the FCC on the ability of the Company to make cash
payments in respect of the Securities in accordance with their
terms.
In rendering such opinion, such counsel may rely (A) as to
matters involving the application of laws of any jurisdiction other
than the jurisdiction of incorporation of the Company, the State of
Delaware, the State of Florida, the State of New York or the Federal
laws of the United States, to the extent they deem proper and specified
in such opinion, upon the opinion of other counsel of good standing
whom they believe to be reliable and who are satisfactory to counsel
for the Initial Purchasers; and (B) as to matters of fact, to the
extent they deem proper, on certificates of responsible officers of the
Company and public officials. References to the Final Memorandum in
this Section 6(a) include any amendment or supplement thereto at the
Closing Date.
(b) The Company shall have requested and caused ▇▇▇▇▇▇▇ ▇.
▇▇▇▇▇▇▇▇, Esq., Executive Vice President and Chief Legal Officer of the
Company, to furnish to the Representatives his opinion, dated the
Closing Date and addressed to the Representatives, to the effect that:
(i) the Company and each Guarantor which is a New
York corporation or limited liability company has been duly
incorporated or organized and is validly existing as a
corporation or limited liability company in good standing
under the laws of the jurisdiction in which it is chartered or
organized, with full corporate or limited liability company
power and authority to own or lease, as the case may be, and
to operate its properties and conduct its business as
described in the Final Memorandum;
(ii) all the outstanding shares of capital stock of
the Company and each Guarantor have been duly authorized and
validly issued and are fully paid and nonassessable, and,
except as otherwise set forth in the Final Memorandum, all
outstanding shares of capital stock of the Guarantor are owned
by the Company either directly or through wholly owned
subsidiaries free and clear of any perfected security interest
and, to the knowledge of such counsel, after due inquiry, any
other security interests, claims, liens or encumbrances;
(iii) the Indenture has been duly authorized,
executed and delivered, and constitutes a legal, valid and
binding instrument enforceable
18
against the Company in accordance with its terms (subject, as
to the enforcement of remedies, to applicable bankruptcy,
reorganization, insolvency, moratorium or other laws affecting
creditors' rights generally from time to time in effect and to
general principles of equity); the issuance of the Securities
has been duly authorized and, when executed and, in the case
of the Notes, authenticated, in accordance with the provisions
of the Indenture and delivered to and paid for by the Initial
Purchasers under this Agreement, will constitute legal, valid,
binding and enforceable obligations of the Company entitled to
the benefits of the Indenture (subject, as to the enforcement
of remedies, to applicable bankruptcy, reorganization,
insolvency, moratorium or other laws affecting creditors'
rights generally from time to time in effect and to general
principles of equity); the Registration Rights Agreement has
been duly authorized, executed and delivered and constitutes
the legal, valid, binding and enforceable agreement of the
Company (subject, as to the enforcement of remedies, to
applicable bankruptcy, reorganization, insolvency, moratorium
or other laws affecting creditors' rights generally from time
to time in effect and to general principles of equity);
(iv) neither the execution and delivery of the
Indenture, this Agreement or the Registration Rights
Agreement, the issue and sale of the Securities, nor the
consummation of any other of the transactions herein or
therein contemplated or the consummation of the Refinancing
(as defined and described in the Final Memorandum), nor the
fulfillment of the terms hereof or thereof will conflict with
or result in a breach or violation of or imposition of any
lien, charge or encumbrance upon any property or asset of the
Company or its subsidiaries pursuant to, (i) the charter
(including any certificates of designation) or by-laws of the
Company or its subsidiaries; (ii) the terms of any indenture,
contract, lease, mortgage, deed of trust, note agreement, loan
agreement or other agreement, obligation, condition, covenant
or instrument known to such counsel, after due inquiry, to
which the Company or any of its subsidiaries is a party or
bound or to which its respective property is subject; or (iii)
any statute, law, rule, regulation, judgment, order or decree
applicable to the Company or any of its subsidiaries of any
court, regulatory body, administrative agency, governmental
body, arbitrator or other authority having jurisdiction over
the Company, any of its subsidiaries or any of their
respective properties;
(v) except as disclosed in the Final Memorandum,
there is no pending or, to the knowledge of such counsel,
threatened action, suit or proceeding by or before any court
or governmental agency, authority or body or any arbitrator
involving the Company or any of its subsidiaries or its or
their property that would be required to be disclosed in a
registration statement filed under the Act;
(vi) such counsel has no reason to believe that at
the Execution Time and on the Closing Date the Final
Memorandum contained or contains any untrue statement of a
material fact or omitted or omits to state any material fact
necessary to make the statements therein, in the light of the
circumstances under
19
which they were made, not misleading (in each case, other than
the financial statements and other financial information
contained therein, as to which such counsel need express no
opinion).
In rendering such opinion, such counsel may limit his opinion
to matters involving the application of laws of the State of New York
and the Federal laws of the United States (excluding the Communications
Act and federal securities laws) and may rely as to matters of fact, to
the extent he deems proper, on certificates of responsible officers of
the Company and public officials. References to the Final Memorandum in
this Section 6(b) include any amendment or supplement thereto at the
Closing Date.
(c) The Representatives shall have received from Weil, Gotshal
& ▇▇▇▇▇▇ LLP, counsel for the Initial Purchasers, such opinion or
opinions, dated the Closing Date and addressed to the Representatives,
with respect to the issuance and sale of the Securities, the Indenture,
the Registration Rights Agreement, the Final Memorandum (as amended or
supplemented at the Closing Date) and other related matters as the
Representatives may reasonably require, and the Company shall have
furnished to such counsel such documents as they request for the
purpose of enabling them to pass upon such matters.
(d) The Company and each Guarantor shall have furnished to the
Representatives a certificate of the Company and each Guarantor, signed
by the Chairman of the Board or the President and the principal
financial or accounting officer of the Company and each Guarantor,
dated the Closing Date, to the effect that the signers of such
certificate have carefully examined the Final Memorandum, any amendment
or supplement to the Final Memorandum and this Agreement and that:
(i) the representations and warranties of the Company
and the Guarantors in this Agreement are true and correct in
all material respects on and as of the Closing Date with the
same effect as if made on the Closing Date, and the Company
has complied with all the agreements and satisfied all the
conditions on its part to be performed or satisfied hereunder
at or prior to the Closing Date; and
(ii) since the date of the most recent financial
statements included in the Final Memorandum (exclusive of any
amendment or supplement thereto), there has been no material
adverse change in the condition (financial or otherwise),
prospects, earnings, business or properties of the Company and
its subsidiaries, taken as a whole, whether or not arising
from transactions in the ordinary course of business, except
as set forth in or contemplated by the Final Memorandum
(exclusive of any amendment or supplement thereto).
(e) At the Execution Time and at the Closing Date, the Company
shall have requested and caused PricewaterhouseCoopers LLP to furnish
to the Representatives letters, dated respectively as of the Execution
Time and as of the Closing Date, in form and substance satisfactory to
the Representatives, confirming that they are independent accountants
within the meaning of the Act and the Exchange Act and the
20
applicable rules and regulations thereunder, that they have performed a
review of the unaudited interim financial information of the Company
for the three-month period ended March 31, 2001 and as at March 31,
2001, and stating in effect that:
(i) in their opinion the audited financial statements
and financial statement schedules included or incorporated in
the Final Memorandum and reported on by them comply as to form
in all material respects with the applicable accounting
requirements of the Exchange Act and the related published
rules and regulations thereunder;
(ii) on the basis of a reading of the latest
unaudited financial statements made available by the Company
and its subsidiaries; their limited review in accordance with
the standards established under Statement on Auditing
Standards No. 71, of the unaudited interim financial
information for the three-month period ended March 31, 2001,
and as at March 31, 2001; carrying out certain specified
procedures (but not an examination in accordance with
generally accepted auditing standards) which would not
necessarily reveal matters of significance with respect to the
comments set forth in such letter; a reading of the minutes of
the meetings of the stockholders, directors and the audit and
compensation committees of the Company and the Subsidiaries;
and inquiries of certain officials of the Company who have
responsibility for financial and accounting matters of the
Company and its subsidiaries as to transactions and events
subsequent to December 31, 2000, nothing came to their
attention which caused them to believe that:
(1) any unaudited financial statements
included or incorporated in the Final Memorandum do
not comply in form in all material respects with
applicable accounting requirements and with the
published rules and regulations of the Commission
with respect to financial statements included or
incorporated in quarterly reports on Form 10-Q under
the Exchange Act; and said unaudited financial
statements are not in conformity with generally
accepted accounting principles applied on a basis
substantially consistent with that of the audited
financial statements included or incorporated in the
Final Memorandum; or
(2) with respect to the period subsequent to
March 31, 2001, there were any changes, at May 31,
2001 , in the senior subordinated notes and bank
financing and mandatorily redeemable preferred stock
or decreases in the stockholders' equity (deficit) of
the Company as compared with the amounts shown on the
March 31, 2001 consolidated balance sheet included in
the Final Memorandum, or for the period from April 1,
2001 to May 31, 2001 there were any decreases, as
compared with March 31, 2000 in net revenues or
increases in net loss, except in all instances for
changes or decreases set forth in such letter, in
which case the letter shall be accompanied by an
explanation by the
21
Company as to the significance thereof unless said
explanation is not deemed necessary by the
Representatives; or
(iii) they have performed certain other specified
procedures as a result of which they determined that certain
information of an accounting, financial or statistical nature
(which is limited to accounting, financial or statistical
information derived from the general accounting records of the
Company and its subsidiaries) set forth in the Final
Memorandum, including the information set forth under the
captions "Summary Consolidated Financial and Other Data" and
"Selected Consolidated Financial and Other Data" in the Final
Memorandum and the information included in "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in the Final Memorandum agrees with the accounting
records of the Company and its subsidiaries, excluding any
questions of legal interpretation.
PricewaterhouseCoopers LLP shall have reviewed unaudited
interim financial information of the Company for the quarters ending
March 31, 2000 and March 31, 2001 in accordance with Statement on
Auditing Standards No. 71.
References to the Final Memorandum in this Section 6(e)
include any amendment or supplement thereto at the date of the
applicable letter.
(f) Subsequent to the Execution Time or, if earlier, the dates
as of which information is given in the Final Memorandum (exclusive of
any amendment or supplement thereto), there shall not have been (i) any
change, decrease or increase specified in the letter or letters
referred to in paragraph (e) of this Section 6; or (ii) any change, or
any development involving a prospective change, in or affecting the
condition (financial or otherwise), prospects, earnings, business or
properties of the Company and its subsidiaries, taken as a whole,
whether or not arising from transactions in the ordinary course of
business, except as set forth in or contemplated in the Final
Memorandum (exclusive of any amendment or supplement thereto) the
effect of which, in any case referred to in clause (i) or (ii) above,
is, in the sole judgment of the Representatives, so material and
adverse as to make it impractical or inadvisable to market the
Securities as contemplated by the Final Memorandum (exclusive of any
amendment or supplement thereto).
(g) The Securities shall have been designated as
PORTAL-eligible securities in accordance with the rules and regulations
of the NASD, and the Securities shall be eligible for clearance and
settlement through The Depositary Trust Company.
(h) Subsequent to the Execution Time, there shall not have
been any decrease in the rating of any of the Company's debt securities
by any "nationally recognized statistical rating organization" (as
defined for purposes of Rule 436(g) under the Act) or any notice given
of any intended or potential decrease in any such rating or of a
possible change in any such rating that does not indicate the direction
of the possible change.
22
(i) Prior to or simultaneously with the Closing, the
Refinancing (as defined in the Final Memorandum) shall have been
completed, it being understood that with respect to the 11-5/8% Senior
Subordinated Notes and the Junior Cumulative Compounding Redeemable
Preferred Stock, each issued by the Company, irrevocable notice of
redemption shall have been given and the funds necessary to pay the
redemption price of and accrued interest on all such instruments shall
have been irrevocably deposited with the paying agent for such
instruments prior to or simultaneously with the Closing.
(j) Prior to the Closing Date, the Company shall have
furnished to the Representatives such further information, certificates
and documents as the Representatives may reasonably request.
If any of the conditions specified in this Section 6 shall not have
been satisfied in all material respects when and as provided in this Agreement,
or if any of the opinions and certificates mentioned above or elsewhere in this
Agreement shall not be in all material respects reasonably satisfactory in form
and substance, as contemplated by the provisions of this Agreement, to the
Representatives and counsel for the Initial Purchasers, this Agreement and all
obligations of the Initial Purchasers hereunder may be cancelled at, or at any
time prior to, the Closing Date by the Representatives. Notice of such
cancellation shall be given to the Company in writing or by telephone or
facsimile confirmed in writing.
The documents required to be delivered by this Section 6 will be
delivered at the office of counsel for the Initial Purchasers, c/o Weil, Gotshal
& ▇▇▇▇▇▇ LLP, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇, on the Closing Date.
7. REIMBURSEMENT OF EXPENSES. If the sale of the Securities provided
for herein is not consummated because any condition to the obligations of the
Initial Purchasers set forth in Section 6 hereof is not satisfied, because of
any termination pursuant to Section 10 hereof or because of any refusal,
inability or failure on the part of the Company or any Guarantor to perform any
agreement herein or comply with any provision hereof other than by reason of a
default by any of the Initial Purchasers, the Company will reimburse the Initial
Purchasers severally through ▇▇▇▇▇▇▇ ▇▇▇▇▇ Barney on demand for all
out-of-pocket expenses (including reasonable fees and disbursements of counsel)
that shall have been incurred by them in connection with the proposed purchase
and sale of the Securities.
8. INDEMNIFICATION AND CONTRIBUTION.
(a) The Company and the Guarantors, jointly and severally,
agree to indemnify and hold harmless each Initial Purchaser, the
directors, officers, employees and agents of each Initial Purchaser and
each person who controls any Initial Purchaser within the meaning of
either the Act or the Exchange Act against any and all losses, claims,
damages or liabilities, joint or several, to which they or any of them
may become subject under the Act, the Exchange Act or other Federal or
state statutory law or regulation, at common law or otherwise, insofar
as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of a material fact contained in the Preliminary
23
Memorandum, the Final Memorandum (or in any supplement or amendment
thereto) or any information provided by the Company or any Guarantor to
any holder or prospective purchaser of Securities pursuant to Section
5(h), or in any amendment thereof or supplement thereto, or arise out
of or are based upon the omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they
were made, not misleading, and agrees to reimburse each such
indemnified party, as incurred, for any legal or other expenses
reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action; provided,
however, that the Company and the Guarantors will not be liable in any
such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon any such untrue statement or alleged
untrue statement or omission or alleged omission made in the
Preliminary Memorandum or the Final Memorandum, or in any amendment
thereof or supplement thereto, in reliance upon and in conformity with
written information furnished to the Company by or on behalf of any
Initial Purchasers through the Representatives specifically for
inclusion therein. This indemnity agreement will be in addition to any
liability which the Company and the Guarantors may otherwise have.
(b) Each Initial Purchaser severally and not jointly agrees to
indemnify and hold harmless the Company, the Guarantors, each of its or
their directors, each of its or their officers, and each person who
controls the Company or any Guarantor within the meaning of either the
Act or the Exchange Act, to the same extent as the foregoing indemnity
from the Company and the Guarantors to each Initial Purchaser, but only
with reference to written information relating to such Initial
Purchaser furnished to the Company and the Guarantors by or on behalf
of such Initial Purchaser through the Representatives specifically for
inclusion in the Preliminary Memorandum or the Final Memorandum (or in
any amendment or supplement thereto). This indemnity agreement will be
in addition to any liability which any Initial Purchaser may otherwise
have. The Company and the Guarantors acknowledge that the statements
set forth in the last paragraph of the cover page regarding the
delivery of the Securities and, under the heading "Plan of
Distribution," the paragraph related to over-allotment, covering and
stabilization transactions in the Preliminary Memorandum and the Final
Memorandum, constitute the only information furnished in writing by or
on behalf of the Initial Purchasers for inclusion in the Preliminary
Memorandum or the Final Memorandum (or in any amendment or supplement
thereto).
(c) Promptly after receipt by an indemnified party under this
Section 8 of notice of the commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against the
indemnifying party under this Section 8, notify the indemnifying party
in writing of the commencement thereof; but the failure so to notify
the indemnifying party (i) will not relieve it from liability under
paragraph (a) or (b) above unless and to the extent it did not
otherwise learn of such action and such failure results in the
forfeiture by the indemnifying party of substantial rights and
defenses; and (ii) will not, in any event, relieve the indemnifying
party from any obligations to any indemnified party other than the
indemnification obligation provided in paragraph (a) or (b) above. The
indemnifying party shall be entitled to appoint counsel
24
of the indemnifying party's choice at the indemnifying party's expense
to represent the indemnified party in any action for which
indemnification is sought (in which case the indemnifying party shall
not thereafter be responsible for the fees and expenses of any separate
counsel (except for local counsel) retained by the indemnified party or
parties except as set forth below); provided, however, that such
counsel shall be satisfactory to the indemnified party. Notwithstanding
the indemnifying party's election to appoint counsel to represent the
indemnified party in an action, the indemnified party shall have the
right to employ separate counsel (including local counsel), and the
indemnifying party shall bear the reasonable fees, costs and expenses
of such separate counsel if (i) the use of counsel chosen by the
indemnifying party to represent the indemnified party would present
such counsel with a conflict of interest; (ii) the actual or potential
defendants in, or targets of, any such action include both the
indemnified party and the indemnifying party and the indemnified party
shall have reasonably concluded that there may be legal defenses
available to it and/or other indemnified parties which are different
from or additional to those available to the indemnifying party; (iii)
the indemnifying party shall not have employed counsel satisfactory to
the indemnified party to represent the indemnified party within a
reasonable time after notice of the institution of such action; or (iv)
the indemnifying party shall authorize the indemnified party to employ
separate counsel at the expense of the indemnifying party. An
indemnifying party will not, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of
any judgment with respect to any pending or threatened claim, action,
suit or proceeding in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified parties are
actual or potential parties to such claim or action) unless such
settlement, compromise or consent includes an unconditional release of
each indemnified party from all liability arising out of such claim,
action, suit or proceeding.
(d) In the event that the indemnity provided in paragraph (a)
or (b) of this Section 8 is unavailable to or insufficient to hold
harmless an indemnified party for any reason, the Company, the
Guarantors and the Initial Purchasers agree to contribute to the
aggregate losses, claims, damages and liabilities (including legal or
other expenses reasonably incurred in connection with investigating or
defending same) (collectively "Losses") to which the Company or any
Guarantor, and one or more of the Initial Purchasers may be subject in
such proportion as is appropriate to reflect the relative benefits
received by the Company and the Guarantors on the one hand and by the
Initial Purchasers on the other from the offering of the Securities;
provided, however, that in no case shall any Initial Purchaser (except
as may be provided in any agreement among the Initial Purchasers
relating to the offering of the Securities) be responsible for any
amount in excess of the purchase discount or commission applicable to
the Securities purchased by such Initial Purchaser hereunder. If the
allocation provided by the immediately preceding sentence is
unavailable for any reason, the Company, the Guarantors and the Initial
Purchasers shall contribute in such proportion as is appropriate to
reflect not only such relative benefits but also the relative fault of
the Company and the Guarantors on the one hand and of the Initial
Purchasers on the other in connection with the statements or omissions
which resulted in such Losses, as well as any other relevant equitable
considerations. Benefits received by the Company and the Guarantors
shall be deemed to
25
be equal to the total net proceeds from the offering (before deducting
expenses) received by the Company, and benefits received by the Initial
Purchasers shall be deemed to be equal to the total purchase discounts
and commissions in each case set forth on the cover of the Final
Memorandum. Relative fault shall be determined by reference to, among
other things, whether any untrue or any alleged untrue statement of a
material fact or the omission or alleged omission to state a material
fact relates to information provided by the Company or a Guarantor on
the one hand or the Initial Purchasers on the other, the intent of the
parties and their relative knowledge, information and opportunity to
correct or prevent such untrue statement or omission. The Company, the
Guarantors and the Initial Purchasers agree that it would not be just
and equitable if contribution were determined by pro rata allocation or
any other method of allocation which does not take account of the
equitable considerations referred to above. Notwithstanding the
provisions of this paragraph (d), no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation. For purposes of this Section 8, each
person who controls an Initial Purchaser within the meaning of either
the Act or the Exchange Act and each director, officer, employee and
agent of an Initial Purchaser shall have the same rights to
contribution as such Initial Purchaser, and each person who controls
the Company or a Guarantor within the meaning of either the Act or the
Exchange Act and each officer and director of the Company and any
Guarantor shall have the same rights to contribution as the Company and
the Guarantors, subject in each case to the applicable terms and
conditions of this paragraph (d).
9. DEFAULT BY AN INITIAL PURCHASER. If any one or more Initial
Purchasers shall fail to purchase and pay for any of the Securities agreed to be
purchased by such Initial Purchaser hereunder and such failure to purchase shall
constitute a default in the performance of its or their obligations under this
Agreement, the remaining Initial Purchasers shall be obligated severally to take
up and pay for (in the respective proportions which the amount of Securities set
forth opposite their names in Schedule I hereto bears to the aggregate amount of
Securities set forth opposite the names of all the remaining Initial Purchasers)
the Securities which the defaulting Initial Purchaser or Initial Purchasers
agreed but failed to purchase; provided, however, that in the event that the
aggregate amount of Securities which the defaulting Initial Purchaser or Initial
Purchasers agreed but failed to purchase shall exceed 10% of the aggregate
amount of Securities set forth in Schedule I hereto, the remaining Initial
Purchasers shall have the right to purchase all, but shall not be under any
obligation to purchase any, of the Securities, and if such nondefaulting Initial
Purchasers do not purchase all the Securities, this Agreement will terminate
without liability to any nondefaulting Initial Purchaser, the Company or the
Guarantors. In the event of a default by any Initial Purchaser as set forth in
this Section 9, the Closing Date shall be postponed for such period, not
exceeding five Business Days, as the Representatives shall determine in order
that the required changes in the Final Memorandum or in any other documents or
arrangements may be effected. Nothing contained in this Agreement shall relieve
any defaulting Initial Purchaser of its liability, if any, to the Company, the
Guarantors or any nondefaulting Initial Purchaser for damages occasioned by its
default hereunder.
26
10. TERMINATION. This Agreement shall be subject to termination in the
absolute discretion of the Representatives, by notice given to the Company prior
to delivery of and payment for the Securities, if at any time prior to such time
(i) trading in the Company's Common Stock shall have been suspended by the
Commission or the American Stock Exchange or trading in securities generally on
the New York Stock Exchange or the American Stock Exchange shall have been
suspended or limited or minimum prices shall have been established on either of
such Exchanges; (ii) a banking moratorium shall have been declared either by
Federal or New York State authorities; or (iii) there shall have occurred any
outbreak or escalation of hostilities, declaration by the United States of a
national emergency or war or other calamity or crisis the effect of which on
financial markets is such as to make it, in the sole judgment of the
Representatives, impracticable or inadvisable to proceed with the offering or
delivery of the Securities as contemplated by the Final Memorandum (exclusive of
any amendment or supplement thereto).
11. REPRESENTATIONS AND INDEMNITIES TO SURVIVE. The respective
agreements, representations, warranties, indemnities and other statements of the
Company, the Guarantors or its or their officers and of the Initial Purchasers
set forth in or made pursuant to this Agreement will remain in full force and
effect, regardless of any investigation made by or on behalf of the Initial
Purchasers, the Company, the Guarantors or any of the officers, directors or
controlling persons referred to in Section 8 hereof, and will survive delivery
of and payment for the Securities. The provisions of Sections 7 and 8 hereof
shall survive the termination or cancellation of this Agreement.
12. NOTICES. All communications hereunder will be in writing and
effective only on receipt, and, if sent to the Representatives, will be mailed,
delivered or telefaxed to the ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ General Counsel (fax no.:
(▇▇▇) ▇▇▇-▇▇▇▇) and confirmed to the General Counsel, ▇▇▇▇▇▇▇ ▇▇▇▇▇ Barney at
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ Attention: General Counsel; or,
if sent to the Company or any Guarantor, will be mailed, delivered or telefaxed
to the General Counsel (fax no.: (▇▇▇) ▇▇▇-▇▇▇▇) and confirmed to the General
Counsel, ▇▇▇▇▇▇ Communications Corporation, at ▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇, ▇▇▇▇
▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇.
13. SUCCESSORS. This Agreement will inure to the benefit of and be
binding upon the parties hereto and their respective successors and the officers
and directors and controlling persons referred to in Section 8 hereof, and,
except as expressly set forth in Section 5(h) hereof, no other person will have
any right or obligation hereunder.
14. APPLICABLE LAW. This Agreement will be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made
and to be performed within the State of New York.
15. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall constitute an original and all of which
together shall constitute one and the same instrument.
16. HEADINGS. The section headings used herein are for convenience only
and shall not affect the construction hereof.
27
17. DEFINITIONS. The terms which follow, when used in this Agreement,
shall have the meanings indicated.
"Act" shall mean the Securities Act of 1933, as amended, and the rules
and regulations of the Commission promulgated thereunder.
"Affiliate" shall have the meaning specified in Rule 501(b) of
Regulation D.
"Business Day" shall mean any day other than a Saturday, a Sunday or a
legal holiday or a day on which banking institutions or trust companies are
authorized or obligated by law to close in The City of New York.
"Commission" shall mean the Securities and Exchange Commission.
"Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission promulgated thereunder.
"Execution Time" shall mean the date and time that this Agreement is
executed and delivered by the parties hereto.
"Investment Company Act" shall mean the Investment Company Act of 1940,
as amended, and the rules and regulations of the Commission promulgated
thereunder.
"NASD" shall mean the National Association of Securities Dealers, Inc.
"Regulation D" shall mean Regulation D under the Act.
"Regulation S" shall mean Regulation S under the Act.
"▇▇▇▇▇▇▇ ▇▇▇▇▇ Barney" shall mean ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc.
"Trust Indenture Act" shall mean the Trust Indenture Act of 1939, as
amended, and the rules and regulations of the Commission promulgated thereunder.
28
If the foregoing is in accordance with your understanding of
our agreement, please sign and return to us the enclosed duplicate hereof,
whereupon this Agreement and your acceptance shall represent a binding agreement
among the Company, the Guarantors and the several Initial Purchasers.
Very truly yours,
▇▇▇▇▇▇ Communications Corporation
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇.
-------------------------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇.
Title: Senior Vice President and
Chief Financial Officer
The foregoing Agreement is hereby
confirmed and accepted as of the
date first above written.
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ INC.
▇▇▇▇▇▇▇ LYNCH, PIERCE, ▇▇▇▇▇▇ & ▇▇▇▇▇
INCORPORATED
CIBC WORLD MARKETS CORP.
BEAR, ▇▇▇▇▇▇▇ & Co. Inc.
By: ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc.
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇
-----------------------------------
Name: ▇▇▇▇▇ ▇▇▇▇▇▇▇
Title: Director
29
SUBSIDIARY GUARANTORS:
BUD HITS, INC.
BUD SONGS, INC.
CAP COMMUNICATIONS LICENSE OF NEW LONDON, INC.
CAP COMMUNICATIONS OF NEW LONDON, INC.
CAP COMMUNICATIONS, INC.
CHANNEL 66 OF TAMPA, INC.
CLEARLAKE PRODUCTIONS, INC.
▇▇▇▇▇▇ MEDIA CORPORATION OF FLORIDA
▇▇▇▇▇▇ MEDIA CORPORATION OF SAN FRANCISCO, INC.
DP MEDIA, INC.
DP MEDIA LICENSE OF BATTLE CREEK, INC.
DP MEDIA LICENSE OF BOSTON, INC.
DP MEDIA LICENSE OF MARTINSBURG, INC.
DP MEDIA LICENSE OF MILWAUKEE, INC.
DP MEDIA LICENSE OF ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, INC.
DP MEDIA OF BATTLE CREEK, INC.
DP MEDIA OF BOSTON, INC.
DP MEDIA OF MARTINSBURG, INC.
DP MEDIA OF MILWAUKEE, INC.
DP MEDIA OF ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, INC.
DP MEDIA OF ST. LOUIS, INC.
FLAGLER PRODUCTIONS, INC.
HISPANIC BROADCASTING, INC.
IRON MOUNTAIN PRODUCTIONS, INC.
OCEAN STATE TELEVISION, LLC
PAX HITS PUBLISHING, INC.
PAX INTERNET, INC.
PAX NET TELEVISION PRODUCTIONS, INC.
PAX NET, INC.
▇▇▇▇▇▇ AKRON LICENSE, INC.
▇▇▇▇▇▇ ALBANY LICENSE, INC.
▇▇▇▇▇▇ ALBUQUERQUE LICENSE, INC.
▇▇▇▇▇▇ ATLANTA LICENSE, INC.
▇▇▇▇▇▇ BIRMINGHAM LICENSE, INC.
▇▇▇▇▇▇ BOSTON LICENSE, INC.
▇▇▇▇▇▇ BOSTON-68 LICENSE, INC.
▇▇▇▇▇▇ BUFFALO LICENSE, INC.
▇▇▇▇▇▇ CEDAR RAPIDS LICENSE, INC.
▇▇▇▇▇▇ CHARLESTON LICENSE, INC.
▇▇▇▇▇▇ CHICAGO LICENSE, INC.
▇▇▇▇▇▇ COMMUNICATIONS LICENSE COMPANY, LLC
▇▇▇▇▇▇ COMMUNICATIONS LPTV, INC.
▇▇▇▇▇▇ COMMUNICATIONS MANAGEMENT COMPANY, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF AKRON-23, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF ALBANY-55, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF ALBUQUERQUE-14, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF ATLANTA-14, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF BIRMINGHAM-44, INC.
30
▇▇▇▇▇▇ COMMUNICATIONS OF BOSTON-46, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF BOSTON-60, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF BOSTON-68, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF BUFFALO-51, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF CEDAR RAPIDS-48, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF CHARLESTON-29, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF CHICAGO-38, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF DALLAS-68, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF ▇▇▇▇▇▇▇▇▇-67, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF DENVER-59, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF DES MOINES-39, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF DETROIT-31, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF FAYETTEVILLE-62, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF FRESNO-61, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF GREENSBORO-16, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF GREENVILLE-38, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF HONOLULU-66, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF HOUSTON-49, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF JACKSONVILLE-21, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF JACKSONVILLE-35, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF KANSAS CITY-50, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF KNOXVILLE-54, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF LEXINGTON-67, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF LOS ANGELES-30, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF LOUISVILLE-21, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF MEMPHIS-50, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF MIAMI-35, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF MINNEAPOLIS-41, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF MOBILE-61, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF NASHVILLE-28, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF NEW ORLEANS-49, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF NEW YORK-31, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF NORFOLK-49, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF OKLAHOMA CITY-62, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF ORLANDO-56, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF PHILADELPHIA-61, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF PHOENIX-13, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF PHOENIX-51, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF PITTSBURGH-40, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF PORTLAND-22, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF PORTLAND-23, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF PROVIDENCE-69, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF ROANOKE-38, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF SACRAMENTO-29, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF SALT LAKE CITY-30, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF SAN ANTONIO-26, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF SAN ▇▇▇▇-65, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF SAN ▇▇▇▇, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF SCRANTON-64, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF SEATTLE-33, INC.
31
▇▇▇▇▇▇ COMMUNICATIONS OF SHREVEPORT-21, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF SPOKANE-34, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF ST. CROIX-15, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF SYRACUSE-56, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF TAMPA-66, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF TUCSON-46, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF TULSA-44, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF WASHINGTON-66, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF WAUSAU-46, INC.
▇▇▇▇▇▇ COMMUNICATIONS OF WEST PALM BEACH-67, INC.
▇▇▇▇▇▇ COMMUNICATIONS TELEVISION, INC.
▇▇▇▇▇▇ ▇▇▇▇▇▇ LICENSE, INC.
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ LICENSE, INC.
▇▇▇▇▇▇ DENVER LICENSE, INC.
▇▇▇▇▇▇ DES MOINES LICENSE, INC.
▇▇▇▇▇▇ DETROIT LICENSE, INC.
▇▇▇▇▇▇ DEVELOPMENT, INC.
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▇▇▇▇▇▇ FRESNO LICENSE, INC.
▇▇▇▇▇▇ GREENSBORO LICENSE, INC.
▇▇▇▇▇▇ GREENVILLE LICENSE, INC.
▇▇▇▇▇▇ HAWAII LICENSE, INC.
▇▇▇▇▇▇ HOUSTON LICENSE, INC.
▇▇▇▇▇▇ JACKSONVILLE LICENSE, INC.
▇▇▇▇▇▇ JAX LICENSE, INC.
▇▇▇▇▇▇ KANSAS CITY LICENSE, INC.
▇▇▇▇▇▇ KNOXVILLE LICENSE, INC.
▇▇▇▇▇▇ LEXINGTON LICENSE, INC.
▇▇▇▇▇▇ LOS ANGELES LICENSE, INC.
▇▇▇▇▇▇ MERCHANDISING & LICENSING, INC.
▇▇▇▇▇▇ MIAMI-35 LICENSE, INC.
▇▇▇▇▇▇ MINNEAPOLIS LICENSE, INC.
▇▇▇▇▇▇ MOBILE LICENSE, INC.
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▇▇▇▇▇▇ OKLAHOMA CITY LICENSE, INC.
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ LICENSE, INC.
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▇▇▇▇▇▇ PHOENIX LICENSE, INC.
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▇▇▇▇▇▇ PRODUCTIONS, INC.
▇▇▇▇▇▇ ROANOKE LICENSE, INC.
▇▇▇▇▇▇ SACRAMENTO LICENSE, INC.
▇▇▇▇▇▇ SALEM LICENSE, INC.
▇▇▇▇▇▇ SALT LAKE CITY LICENSE, INC.
▇▇▇▇▇▇ SAN ANTONIO LICENSE, INC.
▇▇▇▇▇▇ SAN ▇▇▇▇ LICENSE, INC.
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▇▇▇▇▇▇ SPOKANE LICENSE, INC.
▇▇▇▇▇▇ SPORTS OF MIAMI, INC.
▇▇▇▇▇▇ ST. CROIX LICENSE, INC.
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▇▇▇▇▇▇ TAMPA-66 LICENSE, INC.
▇▇▇▇▇▇ TELEVISION PRODUCTIONS, INC.
▇▇▇▇▇▇ TELEVISION, INC.
▇▇▇▇▇▇ TENNESSEE LICENSE, INC.
▇▇▇▇▇▇ TULSA LICENSE, INC.
▇▇▇▇▇▇ WASHINGTON LICENSE, INC.
▇▇▇▇▇▇ WAUSAU LICENSE, INC.
PCC DIRECT, INC.
RDP COMMUNICATIONS LICENSE OF INDIANAPOLIS, INC.
RDP COMMUNICATIONS OF INDIANAPOLIS, INC.
RDP COMMUNICATIONS, INC.
S&E NETWORK, INC.
TRAVEL CHANNEL ACQUISITION CORPORATION
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
--------------------------------------------
Name: ▇▇▇▇▇▇▇ ▇ ▇▇▇▇▇▇▇▇
Title: Vice President and Assistant Secretary
of each of such Subsidiary Guarantors
AMERICA 51, L.P.
By: ▇▇▇▇▇▇ Communications of Phoenix-51, Inc.,
its General Partner and Limited Partner
By: ▇▇▇▇▇▇ Communications Television, Inc.,
its Limited Partner
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
--------------------------------------------
Name: ▇▇▇▇▇▇▇ ▇ ▇▇▇▇▇▇▇▇
Title: Vice President and Assistant
Secretary of such General and
Limited Partners
33