EXHIBIT 10.20
AMENDED AND RESTATED CREDIT AGREEMENT
AMONG
NEXSTAR FINANCE, L.L.C.,
AS BORROWER,
NEXSTAR BROADCASTING GROUP, L.L.C.
AND CERTAIN OF ITS SUBSIDIARIES
FROM TIME TO TIME PARTIES HERETO,
THE SEVERAL FINANCIAL INSTITUTIONS
FROM TIME TO TIME PARTIES HERETO,
BANK OF AMERICA, N.A.,
AS ADMINISTRATIVE AGENT,
BARCLAYS BANK PLC,
AS SYNDICATION AGENT,
AND
FIRST UNION NATIONAL BANK,
AS DOCUMENTATION AGENT
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BANK OF AMERICA SECURITIES LLC,
AS LEAD ARRANGER
AND BOOK MANAGER
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DATED AS OF JUNE 14, 2001
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TABLE OF CONTENTS
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ARTICLE I. DEFINITIONS......................................................1
1.01 Defined Terms..............................................1
1.02 Other Definitional Provisions.............................43
1.03 Accounting Principles.....................................44
1.04 Classes and Types of Loans and Borrowings.................45
ARTICLE II. THE CREDIT FACILITIES...........................................45
2.01 Amounts and Terms of Commitments..........................45
(a) The Term Loans.......................................45
(b) The Revolving Loans..................................46
(c) The Incremental Loans................................46
2.02 Loan Accounts; Notes......................................48
2.03 Procedure for Borrowing...................................48
(a) Procedure for Revolving Loan Borrowings..............48
(b) Procedure for Term Loan Borrowings...................49
(c) No Eurodollar Loans made during an Event of Default..50
(d) Limit on Eurodollar Loans............................50
2.04 Conversion and Continuation Elections for all Borrowings..50
(a) Election for Conversion/Continuation.................50
(b) Notice of Conversion/Continuation....................50
(c) Failure to Elect Interest Period.....................51
(d) Notice to Banks......................................51
(e) No Conversion/Continuation During Event of Default...51
(f) Limitation on Interest Periods.......................51
2.05 Reduction and Termination of Commitments..................51
2.06 Voluntary Prepayments.....................................54
2.07 Mandatory Prepayments.....................................54
2.08 Maturity and Amortization of Loans........................58
(a) The Term Loans.......................................58
(b) Application of Term Loan Payments....................59
(c) The Revolving Loans..................................60
(d) Application of Revolving Loan Payments...............60
2.09 Fees......................................................60
(a) Commitment Fees......................................60
(b) Other Fees...........................................61
(c) Fees under Existing Credit Agreement.................61
2.10 Computation of Fees and Interest..........................61
2.11 Interest..................................................62
2.12 Payments by the Borrower..................................62
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2.13 Payments by the Banks to the Administrative Agent.........63
2.14 Sharing of Payments, etc..................................64
2.15 Security Documents and Guaranty Agreements................65
2.16 Procedure for Incremental Loan Requests...................65
ARTICLE III. LETTERS OF CREDIT...............................................66
3.01 Letter of Credit Subfacility..............................66
3.02 Issuance, Amendment and Renewal of Letters of Credit......67
3.03 Participations, Drawings and Reimbursements...............69
3.04 Repayment of Participations...............................70
3.05 Role of the Issuing Bank..................................71
3.06 Obligations Absolute......................................72
3.07 Cash Collateral Pledge....................................72
3.08 Letter of Credit Fees.....................................73
3.09 Applicability of ISP98 and UCP............................73
ARTICLE IV. TAXES, YIELD PROTECTION AND ILLEGALITY..........................73
4.01 Taxes.....................................................73
4.02 Illegality................................................78
4.03 Increased Costs and Reduction of Return...................78
4.04 Funding Losses............................................79
4.05 Inability to Determine Rates..............................79
4.06 Reserves on Eurodollar Loans..............................80
4.07 Certificates of Banks.....................................80
4.08 Change of Lending Office, Replacement Bank................80
4.09 Survival..................................................81
ARTICLE V. CONDITIONS PRECEDENT............................................81
5.01 Conditions to the Effective Date..........................81
(a) Amended and Restated Credit Agreement................81
(b) Closing Certificates.................................81
(c) Cancellation of Liens................................82
(d) Global Assignment and Assumption.....................82
(e) Legal Opinions.......................................82
(f) Certificates.........................................82
(g) Pro Forma Financial Statements.......................83
(h) Solvency Certificate.................................83
(j) Other Documents......................................83
5.02 Additional Conditions to the Effective Date...............83
(b) No Restraints........................................83
(c) Margin Regulations...................................83
(d) Material Adverse Effect..............................84
(e) Fees.................................................84
(f) Repayment, Repurchase, Cancellation and/or
Modification of Certain Indebtedness.................84
(g) Governmental and Third Party Approvals...............84
(i) All Proceedings Satisfactory.........................84
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5.03 Conditions to All Borrowings and the Issuance of Any
Letters of Credit.........................................84
(a) Notice of Borrowing; Letter of Credit Application....85
(b) Representations and Warranties.......................85
(c) No Default...........................................85
(d) No Material Adverse Effect...........................85
ARTICLE VI. REPRESENTATIONS AND WARRANTIES..................................85
6.01 Existence; Compliance with Law............................85
6.02 Corporate, Limited Liability Company or Partnership
Authorization; No Contravention...........................86
6.03 Governmental Authorization................................86
6.04 Binding Effect............................................86
6.05 Litigation................................................86
6.06 No Default................................................87
6.07 ERISA Compliance..........................................87
6.08 Use of Proceeds; Margin Regulations.......................88
6.09 Ownership of Property; Intellectual Property..............88
6.10 Taxes.....................................................89
6.11 Financial Statements......................................89
6.12 Securities Law, etc.; Compliance..........................89
6.13 Governmental Regulation...................................89
6.14 Accuracy of Information...................................89
6.15 Hazardous Materials.......................................90
6.16 FCC Licenses..............................................90
6.17 Subsidiaries; Capital Stock of Nexstar Finance Holdings...91
6.18 Solvency..................................................91
6.19 Labor Controversies.......................................92
6.20 Security Documents........................................92
6.21 Network Affiliation Agreements............................92
6.22 Condition of Stations.....................................92
6.23 Special Purpose Entities..................................92
ARTICLE VII. AFFIRMATIVE COVENANTS...........................................93
7.01 Financial Statements......................................93
7.02 Certificates; Other Information...........................94
7.03 Notices...................................................94
7.04 FCC Information...........................................95
7.05 FCC Licenses and Regulatory Compliance....................95
7.06 License Lapse.............................................95
7.07 Maintenance of Corporate, Limited Liability Company
or Partnership Existence, etc.............................95
7.08 Foreign Qualification, etc................................96
7.09 Payment of Taxes, etc.....................................96
7.10 Maintenance of Property; Insurance........................96
7.11 Compliance with Laws, etc.................................96
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7.12 Books and Records.........................................96
7.13 Use of Proceeds...........................................97
7.14 End of Fiscal Years; Fiscal Quarters......................97
7.15 Interest Rate Protection..................................97
7.16 Additional Security; Further Assurances...................97
ARTICLE VIII. NEGATIVE COVENANTS..............................................98
8.01 Changes in Business.......................................98
8.02 Limitation on Liens.......................................98
8.03 Disposition of Assets....................................100
8.04 Consolidations, Mergers, Acquisitions, etc...............101
8.05 Limitation on Indebtedness...............................102
8.06 Transactions with Affiliates.............................106
8.07 Use of Credits; Compliance with Margin Regulations.......106
8.08 Environmental Liabilities................................106
8.09 Financial Covenants......................................107
(a) Consolidated Total Leverage Ratio...................107
(b) Consolidated Senior Leverage Ratio..................107
(c) Consolidated Interest Coverage Ratio................108
(c) Pro Forma Debt Service Ratio........................108
(d) Limitation on Capital Expenditures..................108
(e) Limitation on Film Cash Payments....................109
(g) Required Junior Capital.............................109
8.10 Restricted Payments......................................109
8.11 Advances, Investments and Loans..........................114
8.12 Limitation on Business Activities of the Nexstar
Entities.................................................115
8.13 Sales or Issuances of Capital Stock......................115
8.14 No Waivers or Amendments.................................115
ARTICLE IX. EVENTS OF DEFAULT..............................................116
9.01 Event of Default.........................................116
(a) Non-Payment.........................................116
(b) Representation or Warranty..........................116
(c) Specific Defaults...................................116
(d) Other Defaults......................................116
(e) Cross-Default.......................................116
(f) Insolvency; Voluntary Proceedings...................117
(g) Involuntary Proceedings.............................117
(h) ERISA...............................................117
(i) Judgments...........................................118
(j) Change of Control...................................118
(k) Guaranty Agreements.................................118
(l) Security Documents..................................118
(m) Termination of Material Licenses....................118
(n) Termination of Network Affiliation Agreements.......118
9.02 Remedies.................................................118
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9.03 Rights Not Exclusive.....................................120
ARTICLE X. THE ADMINISTRATIVE AGENT, THE ISSUING BANK AND THE LEAD
ARRANGER AND BOOK MANAGER......................................120
10.01 Appointment and Authorization...........................120
10.02 Delegation of Duties....................................120
10.03 Liability of Administrative Agent.......................121
10.04 Reliance by Administrative Agent........................121
10.05 Notice of Default.......................................122
10.06 Credit Decision.........................................122
10.07 Indemnification.........................................123
10.08 Administrative Agent in Individual Capacity.............123
10.09 Successor Administrative Agent..........................124
10.10 The Lead Arranger and Book Manager......................124
ARTICLE XI. MISCELLANEOUS..................................................124
11.01 Amendments and Waivers..................................124
11.02 Notices.................................................126
11.03 No Waiver; Cumulative Remedies..........................127
11.04 Costs and Expenses......................................127
11.05 INDEMNITY...............................................128
11.06 Successors and Assigns..................................128
11.07 Assignments, Participations, etc........................128
11.08 Confidentiality.........................................130
11.09 Set-off.................................................131
11.10 Notification of Addresses, Lending Offices, etc.........131
11.11 Counterparts............................................132
11.12 Severability............................................132
11.13 No Third Parties Benefited..............................132
11.14 Governing Law and Jurisdiction; Waiver of Trial by
Jury....................................................132
(a) GOVERNING LAW......................................132
(b) JURISDICTION.......................................132
(c) WAIVER OF JURY TRIAL...............................132
11.15 Effectiveness...........................................133
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SCHEDULE 1.01(A) LENDING OFFICES/NOTICE ADDRESSES
SCHEDULE 1.01(B) PRO FORMA ADJUSTMENTS TO CONSOLIDATED OPERATING CASH FLOW
SCHEDULE 2.01 COMMITMENTS
SCHEDULE 6.16 FCC LICENSES
SCHEDULE 6.17 SUBSIDIARIES
SCHEDULE 6.21 NETWORK AFFILIATION AGREEMENTS
SCHEDULE 8.05(a) EXISTING INDEBTEDNESS
SCHEDULE 8.11(e) INVESTMENTS
EXHIBIT A Form of Assignment and Assumption
EXHIBIT B Form of Borrower Subordinated Convertible Promissory Note
EXHIBIT C Form of Closing Certificate
EXHIBIT D Form of Compliance Certificate
EXHIBIT E-1 Form of Global Assignment and Assumption (Nexstar)
EXHIBIT E-2 Form of Global Assignment and Assumption (Bastet/Mission)
EXHIBIT F Form of Notice of Borrowing
EXHIBIT G Form of Notice of Conversion/Continuation
EXHIBIT H Form of Parent Subordinated Convertible Promissory Note
EXHIBIT I Form of Officer's Solvency Certificate
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AMENDED AND RESTATED CREDIT AGREEMENT
THIS AMENDED AND RESTATED CREDIT AGREEMENT, dated as of June 14,
2001, is among NEXSTAR FINANCE, L.L.C., a limited liability company organized
under the laws of the State of Delaware (the "Borrower"), NEXSTAR BROADCASTING
GROUP, L.L.C., a limited liability company organized under the laws of the State
of Delaware (the "Ultimate Parent"), certain of its Subsidiaries from time to
time parties to this Agreement, the several banks and other financial
institutions or entities from time to time parties hereto (the "Banks"), BANK OF
AMERICA, N.A., as the Administrative Agent for the Banks, BARCLAYS BANK PLC, as
the Syndication Agent, and FIRST UNION NATIONAL BANK, as the Documentation
Agent.
RECITALS
A. The Borrower, the Ultimate Parent, the Subsidiaries of the Ultimate
Parent parties thereto, the Administrative Agent, the Syndication Agent, the
Documentation Agent, and the several Banks parties thereto entered into that
certain Credit Agreement dated as of January 12, 2001 (as amended by that
certain First Amendment to Credit Agreement and Limited Consent dated as of May
17, 2001, the "Existing Credit Agreement").
B. Pursuant to a Global Assignment and Acceptance dated as of even date
herewith, the Banks parties to the Existing Credit Agreement have assigned
certain of their rights and obligations under the Existing Credit Agreement to
the several Banks parties to such Global Assignment and Acceptance.
C. The parties wish to amend and restate the Existing Credit Agreement,
which amendment and restatement is in extension and renewal, and not in
extinguishment or novation, of the indebtedness outstanding under the Existing
Credit Agreement, as herein provided, it being acknowledged and agreed by the
Borrower, the Ultimate Parent and the other Parent Guarantors that the
Indebtedness under this Agreement constitutes an extension and renewal of the
outstanding indebtedness under the Existing Credit Agreement, and that all Liens
and Guaranty Agreements that secure the repayment of outstanding indebtedness
under the Existing Credit Agreement shall continue to secure Indebtedness under
this Agreement.
In consideration of the mutual agreements, provisions and covenants
contained herein, the parties agree that the Existing Credit Agreement shall be
and hereby is amended and restated in its entirety as follows:
ARTICLE I.
DEFINITIONS
1.01 Defined Terms. All capitalized terms used and not otherwise
defined in this Agreement, including in the Preamble hereto, shall have the
meanings specified below:
"ABRY Capital" means ABRY Capital, L.P., a limited partnership
organized under the laws of the State of Delaware.
"ABRY Capital Contribution Agreements" means (i) the Capital
Contribution Agreement, dated effective as of January 12, 2001, executed and
delivered by ▇▇▇▇ ▇.▇. III, the Ultimate Parent and the Borrower, in favor of
the Administrative Agent and the Banks, as the same may be amended or modified
pursuant to Section 14(b) thereof, and (ii) the ▇▇▇▇ ▇.▇. II Agreement referred
to therein.
"ABRY Equity" means ABRY Equity Investors, L.P., a limited
partnership organized under the laws of the State of Delaware.
"ABRY Holdings" means ABRY Holdings, LLC, a limited liability
company organized under the laws of the State of Delaware.
"ABRY Holdings Co." means ABRY Holdings Co., a business trust
organized under the laws of the Commonwealth of Massachusetts.
"ABRY Holdings III" means ABRY Holdings III, LLC, a limited
liability company organized under the laws of the State of Delaware.
"ABRY Holdings III Co." means ABRY Holdings III Co., a business
trust organized under the laws of the Commonwealth of Massachusetts.
"▇▇▇▇ ▇.▇. II" means ABRY Broadcast Partners II, L.P., a limited
partnership organized under the laws of the State of Delaware.
"▇▇▇▇ ▇.▇. III" means ABRY Broadcast Partners III, L.P., a limited
partnership organized under the laws of the State of Delaware.
"ABRY/Nexstar, Inc." means ABRY/Nexstar, Inc., a Delaware
corporation, 100% of the issued and outstanding Capital Stock of which is owned
by ▇▇▇▇ ▇.▇. II and ▇▇▇▇ ▇.▇. III
"Additional Security Documents" has the meaning specified in Section
7.16(a).
"Additional Term A Loan" has the meaning specified in Section
2.01(a)(i).
"Additional Term A Loan Commitment" means, as to any Bank, the
obligation of such Bank, if any, to make Term A Additional Loans to the Borrower
hereunder in an aggregate principal amount not to exceed the amount set forth
under the heading "Additional Term A Loan Commitment" opposite such Bank's name
on Schedule 2.01.
"Adjusted Working Capital" means for any Person, (i) the current
assets of such Person (excluding cash and Cash Equivalents) minus (ii) the
current liabilities of such Person (excluding the current portion of any
long-term Indebtedness (including Capital Lease Obligations), and excluding
deferred income tax liabilities, of such Person), each as determined on a
consolidated basis.
"Adjustment Date" means, with respect to any calculation of the
Applicable Margin following any Fiscal Quarter of the Borrower, the earlier of
(i) the date which is 45 days
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after the end of such Fiscal Quarter (or, in the case of the fourth Fiscal
Quarter of any Fiscal Year of the Borrower, the date which is 90 days after the
end of such Fiscal Quarter) and (ii) the date which is two Business Days after
the Borrower has delivered a Compliance Certificate to the Administrative Agent
with respect to such Fiscal Quarter.
"Administrative Agent" means Bank of America, N.A. in its capacity
as Administrative Agent for the Banks hereunder, and any successor to such
agent.
"Administrative Agent-Related Persons" has the meaning specified in
Section 10.03.
"Administrative Agent's Payment Office" means the address for
payments set forth on the signature page hereto in relation to the
Administrative Agent or such other address as the Administrative Agent may from
time to time specify in accordance with Section 11.02.
"Affiliate" means, with respect to any Person, any other Person (i)
directly or indirectly controlling, controlled by, or under direct or indirect
common control with, such Person or (ii) that directly or indirectly owns more
than 5% of any class of the capital stock, of or equity interests in, such
Person. A Person shall be deemed to control another Person if such Person
possesses, directly or indirectly, the power to direct or cause the direction of
the management and policies of such other Person, whether through the ownership
of voting securities, by contract or otherwise.
"Aggregate Available Revolving Commitment" means the sum of the
Available Revolving Commitments of all Banks.
"Aggregate Combined Revolving Commitment" means the sum of the
Aggregate Revolving Commitment, plus the Aggregate Incremental Revolving
Commitment.
"Aggregate Commitment" means the sum of the Aggregate Revolving
Commitment, plus the Aggregate Term A Commitment, plus the Aggregate Term B
Commitment, plus the Aggregate Incremental Revolving Commitment, plus the
Aggregate Incremental Term Commitment of all of the Banks.
"Aggregate Incremental Revolving Commitment" at any time, means the
sum of the amount of all Incremental Facilities consisting of Incremental
Revolving Commitments at such time, in an initial amount equal to zero, as such
amount may be increased pursuant to Section 2.01(c) to an aggregate amount
which, when combined with the Aggregate Incremental Term Commitment, may not
exceed the Maximum Incremental Amount.
"Aggregate Incremental Term Commitment" at any time, means the sum
of the amount of all Incremental Facilities consisting of Incremental Term
Commitments (whether or not terminated) at such time, in an initial amount equal
to zero, as such amount may be increased pursuant to Section 2.01(c) to an
aggregate amount which, when combined with the Aggregate Incremental Revolving
Commitment, may not exceed the Maximum Incremental Amount.
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"Aggregate Outstanding Loan Balance" means the sum of the aggregate
outstanding principal balances of all Loans.
"Aggregate Outstanding Term A Loan Balance" means the sum of the
aggregate outstanding principal balances of all Term A Loans, as such amount may
be adjusted from time to time pursuant to this Agreement.
"Aggregate Outstanding Term B Loan Balance" means the sum of the
aggregate outstanding principal balances of all Term B Loans.
"Aggregate Revolving Commitment" means the sum of the Revolving
Commitments of all of the Banks, in an initial amount of $57,000,000, as such
amount may be adjusted from time to time pursuant to this Agreement.
"Aggregate Term A Commitment" means the sum of the Term A
Commitments of all of the Banks, in an initial amount of $50,000,000, as such
amount may be adjusted from time to time pursuant to this Agreement.
"Aggregate Term B Commitment" means the sum of the Term B
Commitments of all of the Banks, in an initial amount of $75,000,000, as such
amount may be adjusted from time to time pursuant to this Agreement.
"Agreement" means this Amended and Restated Credit Agreement,
including the Schedules and Exhibits hereto, as the same may be amended,
modified, restated, supplemented, renewed, extended, increased, rearranged
and/or substituted from time to time.
"Anticipated Reinvestment Amount" means, with respect to any
Reinvestment Election, the amount specified in the Reinvestment Notice delivered
by the Borrower in connection therewith as the amount of the Net Cash Proceeds
from the related Disposition that the Borrower or any Subsidiary of the Borrower
intends to use to purchase, construct or otherwise acquire Reinvestment Assets.
"Applicable Margin" means (i) with respect to Term A Loans (other
than Incremental Term Loans) and Revolving Loans (other than Incremental
Revolving Loans) which are Eurodollar Loans, the margin to be added at any date
to the Eurodollar Rate, which is equal to the applicable percentage rate per
annum set forth below, based upon the applicable Level in effect for the
Borrower on such date; (ii) with respect to Term A Loans (other than Incremental
Term Loans) and Revolving Loans (other than Incremental Revolving Loans) which
are Base Rate Loans, the margin to be added at any date to the Base Rate, which
is equal to the percentage per annum which is 1.625% less than the Applicable
Margin for Eurodollar Loans then in effect for the Borrower on such date, but in
no event less than zero, (iii) with respect to Term B Loans which are Eurodollar
Loans, 4.000%; (iv) with respect to Term B Loans which are Base Rate Loans,
1.625% less than the Applicable Margin for Term B Loans which are Eurodollar
Loans then in effect for the Borrower on such date, but in no event less than
zero; and (iv) with respect to Incremental Term Loans and Incremental Revolving
Loans, the Incremental Margin to be added to the Base Rate or Eurodollar Rate,
as the case may be, as agreed upon by the Borrower and the Bank or Banks
providing the Incremental Term Commitment and/or Incremental
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Revolving Commitment relating thereto as provided in Section 2.16(a), or if not
agreed upon, as provided in Section 2.16(b).
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Level Applicable Percentage
Rate
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Level I 2.000%
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Level II 2.250%
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Level III 2.500%
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Level IV 2.750%
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Level V 3.000%
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Level VI 3.250%
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"Approved Fund" means any Bank that is a fund that invests in
commercial loans or invests in any other fund that invests in commercial loans
and is managed or advised by the same investment advisor as such Bank or by an
Affiliate of such investment advisor.
"Assignee" has the meaning specified in Section 11.07(a).
"Assignment and Assumption" means an Assignment and Assumption,
substantially in the form of Exhibit A.
"Attorney Costs" means and includes all reasonable documented fees
and disbursements of any law firm or other external counsel and, without
duplication, the reasonable allocated cost of internal legal services, and all
reasonable disbursements of internal counsel.
"Authorization" means any filing, recording and registration with,
and any validation or exemption, approval, order, authorization, consent,
License, certificate, franchise and permit from, any Governmental Authority,
including, without limitation, FCC Licenses.
"Available Revolving Commitment" means, at any time as to any Bank,
an amount equal to the excess, if any, of (i) the amount of the Revolving
Commitment of such Bank at such time, over (ii) the sum of the outstanding
principal balances of all Revolving Loans of such Bank plus the sum of all
participations of such Bank in Letter of Credit Obligations at such time.
"Bank Affiliate" means a Person engaged primarily in the business of
commercial banking that is an Affiliate of a Bank.
"Bank of America" means Bank of America, N.A., a national banking
association.
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"Bankruptcy Code" means the Federal Bankruptcy Reform Act of 1978
(11 U.S.C. ss. 101, et seq.).
"Banks" has the meaning specified in the Preamble hereto and such
term shall also include the Issuing Bank.
"Base Rate" means, for any day, the higher of (i) the Reference Rate
or (ii) the Federal Funds Rate plus 1/2%, in each case as in effect for such
day.
"Base Rate Loan" means any Loan that bears an interest rate based on
the Base Rate.
"Bastet" means Bastet Broadcasting, Inc.
"Bastet/Mission Aggregate Commitment" means the "Aggregate
Commitment" as that term is defined in the Bastet/Mission Credit Agreement.
"Bastet/Mission Banks" means the "Banks" as that term is defined in
the Bastet/Mission Credit Agreement.
"Bastet/Mission Borrowers" means the "Borrowers" as that term is
defined in the Bastet/Mission Credit Agreement.
"Bastet/Mission Credit Agreement" means that Credit Agreement dated
as of January 12, 2001, among Bastet and Mission, as borrowers, the financial
institutions from time to time parties thereto and Bank of America, N.A., as
Administrative Agent, Barclays Bank PLC, as Documentation Agent, as amended by
that certain First Amendment to Credit Agreement dated as of May 17, 2001, and
as the same may be further amended, modified, restated, supplemented, renewed,
extended, increased, rearranged and/or substituted from time to time.
"Bastet/Mission Entity" means any Person which is a direct or
indirect Subsidiary of a Bastet/Mission Borrower or which is a Bastet/Mission
Borrower.
"Bastet/Mission Facility Percentage" means the "Facility Percentage"
as that term is defined in the Bastet/Mission Credit Agreement.
"Bastet/Mission Guaranty of Nexstar Obligations" means the Guaranty
Agreement dated as of January 12, 2001, executed by the Bastet/Mission Entities
in favor of the Banks, whereby the Bastet/Mission Entities have guaranteed the
Obligations.
"Bastet/Mission Loan Documents" means the "Loan Documents" as that
term is defined in the Bastet/Mission Credit Agreement.
"Bastet/Mission Loans" means any extension of credit made by any
Bank under or pursuant to the Bastet/Mission Credit Agreement.
"Board" means the Board of Governors of the Federal Reserve System
of the United States (or any successor).
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"Board of Directors" means, as to any Person, either (a) the board
of directors of such Person (or, in the case of any Person that is a limited
liability company, the managers of such Person) or (b) any duly authorized
committee thereof.
"Board Resolution" means, as to any Person, a copy of a resolution
of such Person certified by the Secretary or an Assistant Secretary of such
Person to have been duly adopted by requisite action of the Board of Directors
of such Person and to be in full force and effect on the date of such
certification.
"Borrower" has the meaning specified in the Preamble hereto.
"Borrower Subordinated Convertible Promissory Note" means a
promissory note of the Borrower, payable to the order of Nexstar Finance
Holdings, substantially the form of Exhibit B.
"Borrowing" has the meaning specified in Section 1.04.
"Borrowing Date" means, in relation to any Loan, the date of the
borrowing of such Loan as specified in the relevant Notice of Borrowing for a
Borrowing.
"Bridge Loan Agreement" means that certain Bridge Loan Agreement,
dated as of January 12, 2001, among Nexstar Finance Holdings, the Ultimate
Parent, the lenders named therein, Banc of America Securities LLC, and Bank of
America Bridge LLC.
"Business Day" means any day other than a Saturday, Sunday or other
day on which commercial banks in Dallas, Texas or New York City are authorized
or required by law to close and, if such term is used in relation to any
Eurodollar Loan or the Interest Period therefor, on such day dealings are
carried on by and between banks in Dollar deposits in the applicable interbank
market.
"Capital Adequacy Regulation" means any guideline, request or
directive of any central bank or other Governmental Authority, or any other law,
rule or regulation, whether or not having the force of law, regarding capital
adequacy of any bank or of any corporation controlling a bank.
"Capital Expenditures" means, for any period and with respect to any
Person, the aggregate of all expenditures by such Person and its Subsidiaries
with respect to such period which should be capitalized according to GAAP on a
consolidated balance sheet of such Person and its Subsidiaries, including all
expenditures with respect to fixed or capital assets which should be so
capitalized and, without duplication, the amount of all Capital Lease
Obligations; it being understood that "Capital Expenditures" shall not include,
without duplication, payments made or accrued in respect of Film Obligations or
Consolidation Expenses.
"Capital Lease" has the meaning specified in the definition of
"Capital Lease Obligations".
7
"Capital Lease Obligations" means, with respect to any Person, all
monetary obligations of such Person under any leasing or similar arrangement
which, in accordance with GAAP, is classified as a capital lease (a "Capital
Lease").
"Capital Stock" means (i) any capital stock, partnership,
membership, joint venture or other ownership or equity interest, participation
or securities (whether voting or non-voting, whether preferred, common or
otherwise, and including any stock appreciation, contingent interest or similar
right) and (ii) any option, warrant, security or other right (including debt
securities or other evidence of Indebtedness) directly or indirectly convertible
into or exercisable or exchangeable for, or otherwise to acquire directly or
indirectly, any capital stock, partnership, membership, joint venture or other
ownership or equity interest, participation or security described in clause (i)
above.
"Cash Collateralize" with respect to any Person, means to pledge and
deposit with or deliver to the Administrative Agent, for the benefit of the
Administrative Agent, the Issuing Bank and the Banks, as collateral for the
Letter of Credit Obligations, cash or deposit account balances of such Person
pursuant to documentation in form and substance satisfactory to the
Administrative Agent and the Issuing Bank (which documents are hereby consented
to by the Banks). Derivatives of such term shall have corresponding meanings.
The Borrower hereby grants to the Administrative Agent, for the benefit of the
Administrative Agent, the Issuing Bank and the Banks, a security interest in all
such cash and deposit account balances of the Borrower. Cash Collateral shall be
invested in Cash Equivalents of a tenor satisfactory to the Administrative Agent
and as instructed by the Borrower, which Cash Equivalents shall be held in the
name of the Borrower and under the control of the Administrative Agent in a
manner satisfactory to the Administrative Agent.
"Cash Equivalents" means any or all of the following: (i)
obligations of, or guaranteed as to interest and principal by, the United States
government maturing within one year after the date on which such obligations are
purchased; (ii) open market commercial paper of any corporation (other than any
Nexstar Entity or any Affiliate of any Nexstar Entity) incorporated under the
laws of the United States or any State thereof or the District of Columbia rated
P-1 or its equivalent by ▇▇▇▇▇'▇ or A-1 or its equivalent or higher by S&P;
(iii) time deposits or certificates of deposit maturing within one year after
the issuance thereof issued by commercial banks organized under the laws of any
country which is a member of the OECD and having a combined capital and surplus
in excess of $250,000,000 or which is a Bank or ▇▇▇▇▇ Brothers ▇▇▇▇▇▇▇▇ & Co.;
(iv) repurchase agreements with respect to securities described in clause (i)
above entered into with an office of a bank or trust company meeting the
criteria specified in clause (iii); and (v) money market funds investing only in
investments described in clauses (i) through (iv).
"Change of Control" means any of the following: (i) either (x) the
aggregate remaining cost basis of ▇▇▇▇ ▇.▇. II's and ▇▇▇▇ ▇.▇. III's combined
equity interests in the Ultimate Parent shall be less than $50,000,000 or (y)
▇▇▇▇ ▇.▇. II and ▇▇▇▇ ▇.▇. III, taken together, shall cease to be able to elect
a majority of the board of directors or similar governing persons of the
Ultimate Parent; (ii) ▇▇▇▇ ▇.▇. II and ▇▇▇▇ ▇.▇. III, taken together, shall
cease to directly or indirectly own and hold at least (x) 66 2/3% on a fully
diluted basis of the voting
8
interests in the Ultimate Parent and (y) 51% on a fully diluted basis of the
economic interests in the Ultimate Parent (excluding the Permitted Parent
Preferred Equity); (iii) ▇▇▇▇ ▇.▇. II or ▇▇▇▇ ▇.▇. III, taken together, shall
neither directly nor indirectly control management of the Ultimate Parent
whether by ownership of voting securities, contract or otherwise; (iv) ABRY
Capital shall cease to be the sole general partner of ▇▇▇▇ ▇.▇. II or ▇▇▇▇
Equity shall cease to be the sole general partner of ▇▇▇▇ ▇.▇. III; (v) ABRY
Holdings shall cease to be the sole general partner of ABRY Capital or ABRY
Holdings III shall cease to be the sole general partner of ABRY Equity; (vi)
ABRY Holdings Co. shall cease to be the sole member of ABRY Holdings or ABRY
Holdings III Co. shall cease to be the sole member of ABRY Holdings III; (vii)
so long as the Permitted Holdings Preferred Equity is outstanding, ▇▇▇▇ ▇.▇. II
and ▇▇▇▇ ▇.▇. III, taken together, shall cease to own 100%, on a fully diluted
basis, of the economic and voting capital securities of ABRY/Nexstar, Inc.;
(viii) the Ultimate Parent shall cease to own, directly or indirectly, 100% on a
fully diluted basis of the Capital Stock of each Parent Guarantor other than
Permitted Holdings Preferred Equity and Permitted Permanent Holdings Preferred
Equity; (ix) the Parent Guarantors which are direct Subsidiaries of the Ultimate
Parent shall cease to own, directly or indirectly, 100% on a fully diluted basis
of the Capital Stock of the Holding Company other than Permitted Holdings
Preferred Equity and Permitted Permanent Holdings Preferred Equity; (x) any
Person other than ABRY/Nexstar, Inc. shall own any of the Permitted Holdings
Preferred Equity; (xi) Nexstar Finance Holdings shall cease to own 100% on a
fully diluted basis of the Capital Stock of the Borrower other than Permitted
Borrower Preferred Equity; or (xii) if the New Holding Company is the Holding
Company, then the New Holding Company shall cease to own 100% of the Capital
Stock of Nexstar Finance Holdings, other than Permitted Holdings Preferred
Equity and Permitted Permanent Holdings Preferred Equity.
"Charter Documents" means, with respect to any Person, (i) the
articles or certificate of formation, incorporation or organization (or the
equivalent organizational documents) of such Person, (ii) the bylaws,
partnership agreement, limited liability company agreement or regulations (or
the equivalent governing documents) of such Person and (iii) each document
setting forth the designation, amount and relative rights, limitations and
preferences of any class or series of such Person's Capital Stock or of any
rights in respect of such Person's Capital Stock.
"Closing Certificate" means a Closing Certificate substantially in
the form of Exhibit C.
"Code" means the Internal Revenue Code of 1986, as amended from time
to time, and any regulations promulgated thereunder.
"Collateral" means the Pledged Collateral, the Security Agreement
Collateral and the Mortgaged Properties.
"Collateral Agent" means the Administrative Agent acting as
collateral agent pursuant to the Security Documents.
"Commitment" means, for each Bank, the sum of its Revolving
Commitment, Term A Commitment, Term B Commitment and any Incremental Revolving
Commitment and/or
9
Incremental Term Commitment of such Bank issued after the Effective Date
pursuant to Section 2.01(c) and Section 2.16.
"Communications Act" has the meaning specified in Section 6.16.
"Compliance Certificate" means, as to any Person, a certificate of
the Chief Executive Officer, President, Chief Financial Officer or Vice
President of such Person, substantially in the form of Exhibit D.
"Consolidated Amortization Expense" means, for any period, for any
Person, the consolidated amortization expense (including amortization of Film
Obligations and goodwill) of such Person and its Subsidiaries for such period,
determined on a consolidated basis in accordance with GAAP.
"Consolidated Cash Interest Expense" means, for any period, for any
Person, Consolidated Interest Expense for such Person for such period, but
excluding to the extent otherwise included therein, (i) interest expense to the
extent not payable in cash (e.g., interest or dividends on securities which must
(or may, at the election of such Person or any of its Subsidiaries) be paid in
additional securities, imputed interest, amortization of original issue discount
and/or by an addition to the accreted value thereof), (ii) amortization of
discount, (iii) deferred financing costs and (iv) Excluded Interest.
"Consolidated Depreciation Expense" means, for any period, for any
Person, the depreciation expense of such Person and its Subsidiaries for such
period, determined on a consolidated basis in accordance with GAAP.
"Consolidated Interest Coverage Ratio" means, on any date, the ratio
of (i) Consolidated Operating Cash Flow of the Borrower and its Subsidiaries for
the applicable Measurement Period relating to such date to (ii) the Consolidated
Cash Interest Expense of the Borrower and its Subsidiaries for such Measurement
Period relating to such date, plus Consolidated Cash Interest Expense of Nexstar
Finance Holdings with respect to Permitted Holdings Unsecured Indebtedness, the
Nexstar Finance Holdings Bridge, Permitted Permanent Holdings Preferred Equity
and Permitted Parent Preferred Equity for such Measurement Period relating to
such date.
"Consolidated Interest Expense" means, for any period, for any
Person, the interest expense of such Person and its Subsidiaries for such
period, determined on a consolidated basis in accordance with GAAP, including,
without duplication, total interest expense for such period (including interest
attributable to Capital Leases) with respect to all outstanding Indebtedness of
such Person and its Subsidiaries, capitalized interest and all commissions,
discounts and other fees and charges owed with respect to letters of credit and
bankers' acceptance financing, as such amounts may be increased or decreased by
the net income (or loss) from Interest Rate Protection Agreements of such Person
for such period.
"Consolidated Net Income" means, for any period, for any Person, the
net income (or loss) of such Person and its Subsidiaries, determined on a
consolidated basis in accordance with GAAP; provided that there shall be
excluded, without duplication, (i) income of any
10
Subsidiary of such Person which is not a Wholly Owned Subsidiary of such Person,
except to the extent of the amount of any dividends or other distributions
actually paid by or to such Person or any Wholly Owned Subsidiary of such Person
during such period, (ii) income of any other Person accrued prior to the date
(A) any such other Person becomes a Subsidiary of the Person whose net income is
being determined, (B) any such other Person is merged into such Person whose net
income is being determined or any Subsidiary of such Person whose net income is
being determined or (C) the assets of any such other Person are acquired by the
Person whose net income is being determined or by any Subsidiary of such Person
whose net income is being determined, (iii) the income of any Subsidiary of such
Person during such period to the extent that the declaration or payment of
dividends or similar distributions by that Subsidiary of such income is not at
the time permitted by operation of the terms of its Charter Documents or any
other agreement binding on such Subsidiary or any Requirement of Law applicable
to such Subsidiary or such Person or any of its other Subsidiaries, (iv) any
after-tax gains and after-tax losses attributable to extraordinary and
non-recurring items, including Recovery Events and Dispositions outside the
ordinary course of business and any after-tax gains on pension reversions
received by such Person or its Subsidiaries, and (v) to the extent included in
calculating such Consolidated Net Income, non-cash revenue and non-cash expenses
earned or incurred by such Person or any of its Subsidiaries.
"Consolidated Operating Cash Flow" means, for any period, for any
Person, (i) Consolidated Net Income of such Person for such period plus (ii) (to
the extent deducted in calculating such Consolidated Net Income) the sum of,
without duplication, (A) Consolidated Depreciation Expense, (B) Consolidated
Amortization Expense, (C) Consolidated Interest Expense, (D) income tax expenses
for such Person and its Subsidiaries (other than any such expense paid or
payable during such period in connection with extraordinary gains), and (E)
recurring and non-recurring non-cash losses and expenses (determined on a
consolidated basis) less (iii) the sum of (A) Film Cash Payments accrued or
becoming due and payable during such period (without duplication) and (B) (to
the extent included in calculating such Consolidated Net Income) non-cash
revenues, in each case calculated, if applicable, on a Pro Forma Basis (except
for purposes of calculating the Consolidated Interest Coverage Ratio) after
giving effect to (x) any sale or disposition of any Station pursuant to Section
8.03(b) as if the same were consummated or became effective on the first day of
such period and (y) any purchase or acquisition of any Person or Station, or the
entering into of any Local Marketing Agreement, Joint Sales Agreement and/or
Shared Services Agreement pursuant to Section 8.04(b) as if the same were
consummated or became effective on the first day of such period, each as
determined on a consolidated basis in accordance with GAAP after eliminating all
intercompany items; provided that in connection with any purchase or acquisition
or the commencement of the operation of any Station pursuant to any Local
Marketing Agreement, Joint Sales Agreement and/or Shared Services Agreement
under Section 8.04(b) and as otherwise provided in this Agreement, Consolidated
Operating Cash Flow shall reflect adjustments thereto for anticipated changes in
network compensation for such period to be effected within 120 days after any
such acquisition or commencement, commissions for national representatives and
other items of revenue or expense (including as the result of a reduction in the
number of employees within 120 days after the date of any such acquisition,
purchase or commencement), in each case as may be satisfactory to the
Administrative Agent; provided
11
further that, if applicable, Consolidated Operating Cash Flow shall also reflect
the adjustments thereto set forth on Schedule 1.01(B).
"Consolidated Senior Leverage Ratio" means, on any date, the ratio
of (i) the Consolidated Total Debt of the Borrower and its Subsidiaries on such
date (other than Permitted Borrower Subordinated Indebtedness, Permitted Seller
Subordinated Indebtedness (including any Permitted Seller Subordinated
Indebtedness incurred by Bastet/Mission Entities in accordance with the
Bastet/Mission Credit Agreement), Permitted Borrower Preferred Equity, and
Indebtedness evidenced by Borrower Subordinated Convertible Promissory Notes),
to (ii) the Consolidated Operating Cash Flow of the Borrower and its
Subsidiaries for the applicable Measurement Period relating to such date.
"Consolidated Total Debt" means, for any Person on any date, the
excess (if any) of (i) the Indebtedness of such Person and its Subsidiaries on
such date, determined on a consolidated basis in accordance with GAAP over (ii)
the lesser of (x) the cash on hand of such Person and its Subsidiaries on such
date and (y) $15,000,000.
"Consolidated Total Leverage Ratio" means, on any date, the ratio of
(i) the Consolidated Total Debt of the Borrower and its Subsidiaries on such
date (other than Indebtedness evidenced by Borrower Subordinated Convertible
Promissory Notes and Permitted Borrower Preferred Equity), to (ii) the
Consolidated Operating Cash Flow of the Borrower and its Subsidiaries for the
applicable Measurement Period relating to such date.
"Consolidation Expenses" means, for any period and with respect to
any Person, the aggregate of all expenditures by such Person and its
Subsidiaries with respect to such period related to the consolidation of
Stations.
"Continuation Date" means any date as of which the Borrower elects
to continue a Eurodollar Loan as a Eurodollar Loan for a further Interest Period
in accordance with the provisions of Section 2.04.
"Contractual Obligations" means, as to any Person, any provision of
any security issued by such Person or of any agreement, undertaking, contract,
lease, loan agreement, indenture, mortgage, deed of trust or other instrument,
document or agreement to which such Person is a party or by which it or any of
its property is bound.
"Conversion Date" means any date as of which the Borrower elects to
convert a Base Rate Loan to a Eurodollar Loan, or a Eurodollar Loan to a Base
Rate Loan, in each case in accordance with the provisions of Section 2.04.
"Credit Event" means the making of any Loan or the issuance of any
Letter of Credit.
"Credit Parties" means the collective reference to the Parent
Guarantors (including but not limited to the New Holding Company, if any, and
Nexstar Finance Holdings), the Borrower, the Subsidiary Guarantors, the
Bastet/Mission Entities and any other Person hereafter executing and delivering
a Security Document or a Guarantor Agreement or any
12
equivalent document for the benefit of the Administrative Agent and/or any Bank;
provided that ▇▇▇▇▇ ▇▇▇▇▇ will not be deemed to be a Credit Party.
"Default" means any event or circumstance which, with the giving of
notice, the lapse of time, or both, would (if not cured or otherwise remedied
during such time) constitute an Event of Default.
"Disbursement Date" has the meaning specified in Section 3.03(b).
"Disposition" means the direct or indirect sale, assignment, lease
(as lessor), transfer, conveyance or other disposition (including, without
limitation, dispositions of or pursuant to Local Marketing Agreements, Joint
Sales Agreement or Shared Services Agreements or pursuant to Sale and Leaseback
Transactions, provided that any Sale and Leaseback Transaction shall be on terms
and conditions satisfactory to the Majority Banks and the Administrative Agent),
in a single transaction or a series of related transactions, by any Nexstar
Entity to any Person (other than the Borrower or any Wholly-Owned Subsidiary of
the Borrower) of any assets or property of any Nexstar Entity, excluding (i)
assets or property disposed of in the ordinary course of business of such
Nexstar Entity and (ii) inventory, Real Property or equipment no longer used or
useful in the business of such Nexstar Entity; provided that in any event the
term "Disposition" shall mean and include sales, assignments, leases (as
lessor), transfers, conveyances or other dispositions (including, without
limitation, pursuant to Local Marketing Agreements, Joint Sales Agreements or
Shared Services Agreements) of principal divisions, or lines of business of, any
Nexstar Entity including, without limitation, any Station of any Nexstar Entity
or the Capital Stock of any Subsidiary of any Nexstar Entity. The terms
"Dispose" and "Disposed of" shall have correlative meanings.
"Disqualified Stock" means any Capital Stock which, by its terms (or
by the terms of any security into which it is convertible or for which it is
exchangeable), at the option of the holder thereof or upon the happening of any
event, matures or is mandatorily redeemable pursuant to a sinking fund
obligation or otherwise, or is redeemable, at the option of the holder thereof,
in whole or in part.
"Dividend" means, with respect to any Person, that such Person has
authorized, declared or paid a dividend or returned any equity capital to
holders of its Capital Stock as such or made any other distribution, payment or
delivery of property or cash to holders of its Capital Stock as such.
"Documentation Agent" means First Union National Bank, in its
capacity as Documentation Agent for the Banks hereunder, and any successor to
such agent.
"Dollars" and "$" each mean lawful money of the United States.
"Domestic Lending Office" shall have the meaning specified in the
definition of "Lending Office".
"Effective Date" has the meaning specified in Section 11.15.
13
"Eligible Assignee" means and includes a commercial bank, financial
institution or other "accredited investor" (as defined in Regulation D of the
Securities Act of 1933).
"Environmental Claim" means any and all administrative, regulatory
or judicial actions, suits, demands, demand letters, claims, liens, notices of
noncompliance or violation, investigations or proceedings relating in any way to
any violation of, or liability under, any Environmental Law or any permit
issued, or any approval given, under any such Environmental Law (hereafter,
"Claims"), including, without limitation, (i) any and all Claims by governmental
or regulatory authorities for enforcement, cleanup, removal, response, remedial
or other actions or damages pursuant to any applicable Environmental Law, and
(ii) any and all Claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief resulting from
Hazardous Materials arising from alleged injury or threat of injury to health,
safety or the environment.
"Environmental Law" means the Comprehensive Environmental Response,
Compensation and Liability Act, any so-called "Superfund" or any other
applicable Federal, state, local or other statute, law, ordinance, code, rule,
regulation, order or decree, as now or at any time hereafter in effect,
regulating, relating to, or imposing liability concerning the environment, the
impact of the environment on human health, or any hazardous or toxic waste,
substance or material or pollutant or contaminant.
"ERISA" means the Employee Retirement Income Security Act of 1974,
and the rules and regulations promulgated thereunder as from time to time in
effect.
"ERISA Affiliate" means any trade or business (whether or not
incorporated) under common control with any Nexstar Entity within the meaning of
Section 414(b) or (c) of the Code (and Sections 414(m) and (o) for purposes of
provisions relating to Sections 412, 414(t)(2) and 4971 of the Code).
"ERISA Event" means (i) a Reportable Event with respect to a Pension
Plan or a Multiemployer Plan which could reasonably be expected to result in a
material liability to any Nexstar Entity; (ii) a withdrawal by any Nexstar
Entity or any ERISA Affiliate from a Pension Plan subject to Section 4063 of
ERISA during a plan year in which it was a substantial employer (as defined in
Section 4001(a)(2) of ERISA) or a cessation of operations which is treated as
such a withdrawal under Section 4062(e) of ERISA where such withdrawal or
cessation could reasonably be expected to result in a material liability to any
Nexstar Entity; (iii) a complete or partial withdrawal by any Nexstar Entity or
any ERISA Affiliate from a Multiemployer Plan which could reasonably be expected
to result in a material liability to any Nexstar Entity or notification that a
Multiemployer Plan is insolvent or in reorganization; (iv) the filing of a
notice of intent to terminate other than under a standard termination pursuant
to Section 4041(b) of ERISA where such standard termination or the process of
affecting such standard termination will not result in a material liability to
any Nexstar Entity or an ERISA Affiliate, the treatment of a plan amendment as a
termination under Section 4041 or 4041A of ERISA or the commencement of
proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (v) a
failure by any Nexstar Entity or any ERISA Affiliate to make required
contributions to a Pension Plan, Multiemployer Plan or other Plan subject to
Section 412 of the Code; (vi) an event
14
or condition which might reasonably be expected to constitute grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee to
administer, any Pension Plan or Multiemployer Plan; (vii) the imposition of any
material liability under Title IV of ERISA, other than PBGC premiums due but not
delinquent under Section 4007 of ERISA, upon any Nexstar Entity or any ERISA
Affiliate; or (viii) an application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Code with respect to any
Plan.
"Eurocurrency Reserve Requirements" means, for any day as applied to
a Eurodollar Loan, the aggregate (without duplication) of the maximum rates
(expressed as a decimal fraction) of reserve requirements in effect on such day
(including, without limitation, basic, marginal, special, supplemental, or
emergency reserves) under any regulations issued from time to time by the Board
or other Governmental Authority having jurisdiction with respect thereto dealing
with reserve requirements prescribed for Eurocurrency funding (currently
referred to as "Eurocurrency Liabilities" in Regulation D of the Board)
maintained by a member bank of the Federal Reserve System. Without limiting the
effect of the foregoing, the Eurocurrency Reserve Requirements shall reflect any
other reserves required to be maintained by such member banks with respect to
(i) any category of liabilities which includes deposits by reference to which
the Eurodollar Rate is to be determined, or (ii) any category of extensions of
credit or other assets which include Eurodollar Loans. The Eurodollar Rate shall
be adjusted automatically on and as of the effective date of any change in the
Eurocurrency Reserve Requirements.
"Eurodollar Base Rate" means, for any Eurodollar Loan for any
Interest Period therefor to be determined on any Interest Rate Determination
Date, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of
1%) appearing on Telerate Page 3750 (or any successor page) as the London
interbank offered rate for deposits in Dollars at approximately 11:00 A.M.
(London time) two Business Days prior to the first day of such Interest Period
for a term comparable to such Interest Period. If for any reason such rate is
not available, the term "Eurodollar Base Rate" shall mean, for any Eurodollar
Loan for any Interest Period therefor, the rate per annum (rounded upwards, if
necessary, to the nearest 1/100 of 1%) appearing on Reuters Screen LIBO Page as
the London interbank offered rate for deposits in Dollars at approximately 11:00
A.M. (London time) two Business Days prior to the first day of such Interest
Period for a term comparable to such Interest Period; provided that if more than
one rate is specified on Reuters Screen LIBO Page, the applicable rate shall be
the arithmetic mean of all such rates (rounded upwards, if necessary, to the
nearest 1/100 of 1%).
"Eurodollar Lending Office" shall have the meaning specified in the
definition of "Lending Office".
"Eurodollar Loan" means any Loan that bears interest rate computed
on the basis of the Eurodollar Rate.
"Eurodollar Rate" means, with respect to each day during each
Interest Period pertaining to a Eurodollar Loan, a rate per annum determined for
such day in accordance with the following formula (rounded upward to the nearest
1/100th of 1%):
15
Eurodollar Base Rate
-----------------------------------------
1.00 - Eurocurrency Reserve Requirements.
"Event of Default" means any of the events or circumstances
specified in Section 9.01.
"Excess Cash Flow" means for any Person for any period,
(a) the sum for such period of (i) Net Income; plus (ii)
Consolidated Amortization Expense and Consolidated Depreciation Expense, in each
case to the extent deducted in determining such Net Income; plus (iii) non-cash
charges, to the extent deducted in determining such Net Income; less
(b) the sum for such period of (i) Capital Expenditures made by such
Person and its consolidated Subsidiaries and payments accrued or becoming due
and payable during such period (without duplication) by such Person and its
consolidated Subsidiaries in respect of Film Obligations; plus (ii) (A) Adjusted
Working Capital of such Person as determined on the last day of such period
minus (B) Adjusted Working Capital of such Person as determined on the first day
of such period; plus (iii) regularly scheduled payments of principal and
voluntary prepayments of principal of (x) Term Loans, (y) to the extent
accompanied by a Commitment reduction, Revolving Loans and (z) other
Indebtedness, by such Person and its consolidated Subsidiaries, to the extent
not prohibited hereunder; plus (iv) all Restricted Payments paid by such Person
or any of its consolidated Subsidiaries (other than to such Person or any such
Subsidiary) pursuant to Section 8.10; plus (v) all non-cash revenues and gains,
to the extent included in determining such Net Income; plus (vi) gains realized
in respect of Dispositions, to the extent included in determining such Net
Income.
"Exchange Equity" has the meaning specified in the definition of
Permitted Holdings Preferred Equity.
"Excluded Interest" means (i) an amount equal to the amount of
interest (or a specified portion of the amount of interest) accruing, or to
accrue, on Permitted Borrower Subordinated Indebtedness during the six month
period after the issuance or incurrence thereof and which the Borrower agrees in
writing with the holders of such Permitted Borrower Subordinated Indebtedness
(so long as the Borrower notifies the Administrative Agent of such agreement),
or agrees with the Administrative Agent for the benefit of the Banks, to escrow
with a third party and to use such escrowed amounts to pay accrued interest on
the Permitted Borrower Subordinated Indebtedness or (ii) any amount of such
interest paid out of any such escrowed amount.
"Existing Credit Agreement" has the meaning specified in Recital A.
"Existing Holdings Preferred Equity" has the meaning specified in
the definition of Permitted Holdings Preferred Equity.
16
"Facility Percentage" means, as to any Bank at any time, the
quotient (expressed as a percentage) of (i) the sum of (A) such Bank's Revolving
Commitment (as in effect at such time) or, if such Revolving Commitment has been
terminated in full, such Bank's outstanding Revolving Loans and participations
in Letter of Credit Obligations (or obligations held by the Issuing Bank in
respect of Letter of Credit Obligations, in the case of the Issuing Bank), plus
(B) the sum of each of such Bank's Commitments under each Incremental Facility
(as in effect at such time) or, with respect to any Incremental Facility with
respect to which such Commitments has been terminated in full, such Bank's
outstanding Incremental Loans under such Incremental Facility, plus (C) such
Bank's Initial Term A Loan Commitment (as in effect at such time) or, if such
Initial Term A Loan Commitment has been terminated in full, such Bank's
outstanding Initial Term A Loans, plus (D) such Bank's Additional Term A Loan
Commitment (as in effect at such time), or, if such Additional Term A Loan
Commitment has been terminated in full, such Bank's outstanding Additional Term
A Loans, plus (E) such Bank's Term B Commitment (as in effect at such time), or,
if such Term B Commitment has been terminated in full, such Bank's outstanding
Term B Loans, divided by (ii) the sum of (A) the Aggregate Revolving Commitment
(as in effect at such time) or, if the Aggregate Revolving Commitment has been
terminated in full, the aggregate principal amount of outstanding Revolving
Loans and Letter of Credit Obligations, plus (B) the sum of all Banks'
Commitments under each Incremental Facility (as in effect at such time) or, with
respect to any Incremental Facility with respect to which such Commitments have
been terminated in full, such Banks' outstanding Incremental Loans under such
Incremental Facility, plus (C) the sum of all Banks' Initial Term A Loan
Commitments (as in effect at such time) or, if such Initial Term A Loan
Commitments have been terminated in full, the sum of such Banks' outstanding
Initial Term A Loans, plus (D) the sum of all Banks' Additional Term A Loan
Commitments (as in effect at such time) or, if such Additional Term A Loan
Commitments have been terminated in full, the sum of such Banks' outstanding
Additional Term A Loans, plus (E) the Aggregate Term B Commitment (as in effect
at such time) or, if such Aggregate Term B Commitment has been terminated in
full, the Aggregate Outstanding Term B Loan Balance.
"FCC" means the Federal Communications Commission.
"FCC License" has the meaning specified in Section 6.16.
"Federal Funds Rate" means, for any day, the rate set forth in the
weekly statistical release designated as H.15(519), or any successor
publication, published by the Federal Reserve Board (including any such
successor, "H.15(519)") for such day opposite the caption "Federal Funds
(Effective)." If on any relevant day the appropriate rate for such previous day
is not yet published in H.15(519), the rate for such day will be the arithmetic
mean of the rates for the last transaction in overnight federal funds arranged
prior to 9:00 a.m. (New York City time) on that day by each of three leading
brokers of federal funds transactions in New York City selected by the
Administrative Agent.
"Federal Reserve Board" means the Board of Governors of the Federal
Reserve System or any successor thereto.
17
"Film Cash Payments" means, for any period for any Person, the sum
(determined on a consolidated basis and without duplication) of all payments by
such Person and its Subsidiaries accrued or becoming due and payable during such
period (without duplication) in respect of Film Obligations; provided that
amounts applied to the prepayment of Film Obligations owing under Prepayable
Film Contracts shall not be deemed to be Film Cash Payments.
"Film Obligations" means obligations in respect of the purchase,
use, license or acquisition of programs, programming materials, films, and
similar assets used in connection with the business and operations of the
Borrower and its Subsidiaries.
"Fiscal Quarter" means each of the following quarterly periods: (i)
January 1 of each calendar year through and including March 31 of each calendar
year, (ii) April 1 of each calendar year through and including June 30 of each
calendar year, (iii) July 1 of each calendar year through and including
September 30 of each calendar year and (iv) October 1 through and including
December 31 of each calendar year.
"Fiscal Year" means a calendar year.
"Form W-8BEN" has the meaning specified in Section 4.01(e)(i).
"Form W-8ECI" has the meaning specified in Section 4.01(e)(i).
"Former Major Network Affiliate" at any time means any Station that,
at such time, is not subject to a Network Affiliation Agreement with a Major
Television Network, if either (i) such Station is subject to a Network
Affiliation Agreement with a Major Television Network on the Effective Date, or
(ii) if such Station is not a Station on the Effective Date, then such Station
was subject to a Network Affiliation Agreement with a Major Television Network
on the date it became a Station; provided that, for purposes of this definition
and Section 9.01(n), two or more Stations that substantially simulcast the same
programming will be deemed to be a single Station so long as they do so.
"GAAP" means generally accepted accounting principles set forth from
time to time in the opinions and pronouncements of the Accounting Principles
Board and the American Institute of Certified Public Accountants and statements
and pronouncements of the Financial Accounting Standards Board (or agencies with
similar functions of comparable stature and authority within the accounting
profession), or in such other statements by such other entity as may be in
general use by significant segments of the U.S. accounting profession, which are
applicable to the circumstances as of the date of determination.
"Global Assignment and Assumption" means Global Assignment and
Assumptions to be executed by each financial institution party to the Existing
Credit Agreement, each financial institution party to the Bastet/Mission Credit
Agreement and each Bank that is a party hereto in substantially the forms
attached as Exhibits E-1 and E-2, respectively.
"Governmental Authority" means any nation or government, any state
or other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, any
18
central bank (or similar monetary, taxing, or regulatory authority) thereof or
other entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government, any securities exchange
and any self-regulatory organization (including the National Association of
Insurance Commissioners).
"Guarantor" means each Credit Party which is a party to a Guaranty
Agreement.
"Guaranty Agreements" means the collective reference to each Parent
Guaranty Agreement, the Bastet/Mission Guaranty of Nexstar Obligations, the
Nexstar Guaranty of Bastet/Mission Obligations, the Subsidiary Guaranty
Agreement, each Guaranty Supplement to each of the foregoing and any other
agreement executed and delivered to the Administrative Agent guaranteeing any of
the Obligations, and any and all amendments, modifications, restatements,
extensions, increases, rearrangements and/or substitutions of any of the
foregoing.
"Guaranty Obligation" means, as applied to any Person, any direct or
indirect liability of that Person with respect to any Indebtedness, lease,
dividend, letter of credit or other obligation (the "primary obligations") of
another Person (the "primary obligor"), including any obligation of that Person,
whether or not contingent, without duplication (i) to purchase, repurchase or
otherwise acquire such primary obligations or any property constituting direct
or indirect security therefor; (ii) to advance or provide funds (x) for the
payment or discharge of any such primary obligation, or (y) to maintain working
capital or equity capital of the primary obligor or otherwise to maintain the
net worth or solvency or any balance sheet item, level of income or financial
condition of the primary obligor; (iii) to purchase property, securities or
services primarily for the purpose of assuring the owner of any such primary
obligation of the ability of the primary obligor to make payment of such primary
obligation; or (iv) otherwise to assure or hold harmless the holder of any such
primary obligation against loss in respect thereof; in each case, including
arrangements ("non-recourse guaranty arrangements") wherein the rights and
remedies of the holder of the primary obligation are limited to repossession or
sale of certain property of such Person. The amount of any Guaranty Obligation
shall be deemed equal to the stated or determinable amount of the primary
obligation in respect of which such Guaranty Obligation is made (or if less, the
stated or determinable amount of such Guaranty Obligation) or, if not stated or
if indeterminable, the maximum reasonably anticipated liability in respect
thereof; provided that the amount of any non-recourse guaranty arrangement shall
not be deemed to exceed the fair value of the property which may be repossessed
or sold by the holder of the primary obligation in question.
"Guaranty Supplements" means the collective reference to each of the
Guaranty Supplements which are attached to each of the Guaranty Agreements as
Annex A to each such Guaranty Agreement.
"Hazardous Material" means and includes (i) any asbestos,
urea-formaldehyde, PCBs or dioxins or insulation or other material composed of
or containing asbestos, PCBs or dioxins, (ii) crude oil, any fraction thereof,
and any petroleum product, (iii) any natural gas, natural gas liquids, liquefied
natural gas or other natural gas product or synthetic gas, and (iv) any
hazardous or toxic waste, substance or material or pollutant or contaminant
defined as
19
such in (or for purposes of), or that may result in the imposition of liability
under, any Environmental Law.
"Holding Company" means (i) the New Holding Company, if the New
Holding Company owns 100% of the Capital Stock of Nexstar Finance Holdings
(other than Permitted Holdings Preferred Equity and Permitted Permanent Holdings
Preferred Equity issued by Nexstar Finance Holdings), or (ii) Nexstar Finance
Holdings in any other event.
"Holdings Subordinated Convertible Promissory Note" means an
unsecured, subordinated promissory note of Nexstar Finance Holdings that is
convertible into common equity of Nexstar Finance Holdings on substantially the
same terms as a Borrower Subordinated Convertible Promissory Note is convertible
into common equity of the Borrower and that is otherwise in form and substance
reasonably acceptable to the Administrative Agent.
"Incremental Commitment Fee" has the meaning specified in Section
2.16(a).
"Incremental Facility" means an aggregation of Incremental Revolving
Commitments or Incremental Term Commitments, as the case may be, of one or more
Banks which are made available to the Borrower and become effective on the same
date, pursuant to the same Incremental Loan Amendment.
"Incremental Loan" means any Incremental Revolving Loan and/or
Incremental Term Loan advanced by a Bank pursuant to Sections 2.01(c) and
Section 2.03.
"Incremental Loan Amendment" has the meaning set forth in Section
2.01(c)(i).
"Incremental Margin" has the meaning specified in Section 2.16(a).
"Incremental Revolving Bank" means each Bank that has an Incremental
Revolving Commitment or that is a holder of an Incremental Revolving Loan.
"Incremental Revolving Commitment" has the meaning set forth in
Section 2.16(a).
"Incremental Revolving Loan" has the meaning set forth in Section
2.01(c)(i).
"Incremental Term Bank" means each Bank that has an Incremental Term
Commitment or that is the holder of an Incremental Term Loan.
"Incremental Term Commitment" has the meaning set forth in Section
2.16(a).
"Incremental Term Loan" has the meaning set forth in Section
2.01(c)(i).
"Incremental Upfront Fee" has the meaning specified in Section
2.16(a).
"Indebtedness" of any Person means, without duplication, (i) all
indebtedness for borrowed money; (ii) all obligations issued, undertaken or
assumed as the deferred purchase price of property or services (other than (x)
trade payables entered into in the ordinary course of
20
business pursuant to ordinary terms and (y) ordinary course purchase price
adjustments); (iii) all reimbursement or payment obligations with respect to
letters of credit or non-contingent reimbursement or payment obligations with
respect to bankers' acceptances, surety bonds and similar documents; (iv) all
obligations evidenced by notes, bonds, debentures or similar instruments,
including obligations so evidenced incurred in connection with the acquisition
of property, assets or businesses; (v) all indebtedness created or arising under
any conditional sale or other title retention agreement or sales of accounts
receivable, in any such case with respect to property acquired by the Person
(even though the rights and remedies of the seller or bank under such agreement
in the event of default are limited to repossession or sale of such property);
(vi) all Capital Lease Obligations; (vii) all net obligations with respect to
Interest Rate Protection Agreements; (viii) Disqualified Stock; (ix) all
indebtedness referred to in clauses (i) through (viii) above secured by (or for
which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien upon or in property (including accounts
and contracts rights) owned by such Person, even though such Person has not
assumed or become liable for the payment of such Indebtedness (in which event
the amount thereof shall not be deemed to exceed the fair value of such
property); and (x) all Guaranty Obligations in respect of obligations of the
kinds referred to in clauses (i) through (ix) above.
"Indemnified Liabilities" has the meaning specified in Section
11.05.
"Indemnified Person" has the meaning specified in Section 11.05.
"Initial Borrowing Date" means the date, occurring on the Effective
Date, on which the initial Credit Event occurs.
"Initial Term A Loan" has the meaning specified in Section
2.01(a)(i).
"Initial Term A Loan Commitment" means, as to any Bank, the
obligation of such Bank, if any, to make Initial Term A Loans to the Borrower
hereunder in an aggregate principal amount not to exceed the amount set forth
under the heading "Initial Term A Loan Commitment" opposite such Bank's name on
Schedule 2.01.
"Insolvency Proceeding" means (i) any case, action or proceeding
before any court or other Governmental Authority relating to bankruptcy,
reorganization, insolvency, liquidation, receivership, dissolution, winding-up
or relief of debtors, or (ii) any general assignment for the benefit of
creditors, composition, marshalling of assets for creditors, or other, similar
arrangement in respect of its creditors generally; in each case undertaken under
U.S. Federal, State or foreign law, including the Bankruptcy Code.
"Intellectual Property" has the meaning specified in Section 6.09.
"Interest Payment Date" means (i) with respect to any Base Rate
Loan, the last Business Day of each calendar quarter and the Maturity Date, (ii)
with respect to any Eurodollar Loan, the last day of each Interest Period
applicable to such Eurodollar Loan and the date such Eurodollar Loan is repaid
or prepaid; provided, however, that if any Interest Period for any Eurodollar
Loan exceeds three months, then the date which falls three months after the
beginning
21
of such Interest Period or, if applicable, at the end of any three month
interval thereafter shall also be an "Interest Payment Date".
"Interest Period" means, in relation to any Eurodollar Loan, the
period commencing on the applicable Borrowing Date or any Conversion Date or
Continuation Date with respect thereto and ending on the date one, two, three or
six months thereafter (or, nine or twelve months thereafter upon the request of
the Borrower and the consent of each Bank, which shall not be unreasonably
withheld, if loans of such duration are generally available in the London
interbank Eurodollar market), as selected or deemed selected by the Borrower in
its Notice of Borrowing or Notice of Conversion/Continuation; provided that:
(i) if any Interest Period would otherwise end on a day which
is not a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless the result of such extension would be to
carry such Interest Period into another calendar month, in which event
such Interest Period shall end on the immediately preceding Business Day;
(ii) any Interest Period that begins on the last Business Day
of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of the calendar month which is
one, two, three, six, nine or twelve months, as the case may be, after the
calendar month in which such Interest Period began; and
(iii) no Interest Period for any Loan shall extend beyond the
Maturity Date.
"Interest Rate Determination Date" means each date for calculating
the Eurodollar Base Rate for purposes of determining the interest rate in
respect of an Interest Period. The Interest Rate Determination Date shall be the
second Business Day prior to the first day of the related Interest Period.
"Interest Rate Protection Agreement" means an interest rate swap,
cap, collar or similar arrangement entered into to hedge interest rate risk (and
not for speculative purposes).
"Issuing Bank" means Bank of America or any Affiliate thereof, in
its capacity as issuer of one or more Letters of Credit hereunder.
"Joinder to Pledge and Security Agreement" means a supplement to the
Pledge and Security Agreement in the form of Annex B thereto, whereby a Nexstar
Entity becomes a party to, and assumes all obligations of, a pledgor under the
Pledge and Security Agreement.
"Joinder to Security Agreement" means a supplement to the Security
Agreement in the form of Annex C thereto, whereby a Nexstar Entity becomes a
party to, and assumes all obligations of, a grantor under the Security
Agreement.
"Joint Sales Agreement" means an agreement for the sale of
commercial or advertising time or any similar arrangement pursuant to which a
Person obtains the right to
22
(i) sell at least a majority of the time for commercial spot announcements,
and/or resell to advertisers such time on, (ii) provide the sales staff for the
sale of the advertising time or the collection of accounts receivable with
respect to commercial advertisements broadcast on, (iii) set the rates for
advertising on and/or (iv) provide the advertising material for broadcast on, a
television broadcast station the FCC License of which is held by a Person other
than an Affiliate of such Person.
"Lead Arranger and Book Manager" means Bank of America Securities
LLC, in its capacity as Lead Arranger and Book Manager.
"Leasehold" of any Person means all of the right, title and interest
of such Person as lessee or licensee in, to and under leases or licenses of
land, improvements and/or fixtures.
"Lending Office" means, with respect to any Bank, the office or
offices of such Bank specified as its "Lending Office", "Domestic Lending
Office" or "Eurodollar Lending Office", as the case may be, on Schedule 1.01(a)
hereto, or such other office or offices of the Bank as it may from time to time
notify the Borrower and the Administrative Agent.
"Letter of Credit" means any letter of credit issued (or deemed
issued) by the Issuing Bank pursuant to Article III.
"Letter of Credit Amendment Application" means an application form
for amendment of outstanding standby or commercial documentary letters of credit
as shall at any time be in use by the Issuing Bank, as the Issuing Bank shall
request.
"Letter of Credit Application" means an application form for
issuances of standby or commercial documentary letters of credit as shall at any
time be in use at the Issuing Bank, as the Issuing Bank shall request.
"Letter of Credit Borrowing" means an extension of credit resulting
from a drawing under any Letter of Credit which shall not have been reimbursed
on the Disbursement Date of such draw.
"Letter of Credit Commitment" means the agreement of the Issuing
Bank to issue Letters of Credit subject and pursuant to the terms and conditions
of this Agreement; provided that the sum of all the Letter of Credit Obligations
on any date outstanding may not exceed the lesser of (i) the Aggregate Revolving
Commitment on such date and (ii) $30,000,000.
"Letter of Credit Obligations" means, at any time, the sum of (i)
the aggregate undrawn amount of all Letters of Credit then outstanding, plus
(ii) the aggregate amount of all unpaid Reimbursement Obligations.
"Letter of Credit Related Documents" means all Letters of Credit,
Letter of Credit Applications, Letter of Credit Amendment Applications and any
other document relating to any Letter of Credit, including the Issuing Bank's
standard form documents for letter of credit issuances, as any of the same may
be amended, modified, restated, supplemented, renewed, extended, increased,
rearranged and/or substituted from time to time.
23
"Level" means, as of any date of determination, the applicable Level
set forth below which is then in effect, as determined in accordance with the
following provisions of this definition. On the Effective Date and continuing
through and including the day immediately preceding the first Adjustment Date
occurring after September 30, 2001, the Level for purposes of calculating the
Applicable Margin shall be deemed to be Level VI and for each period thereafter
beginning on an Adjustment Date and ending on the day immediately preceding the
next succeeding Adjustment Date, the Level for purposes of calculating the
Applicable Margin shall be the applicable Level set forth below opposite the
Consolidated Total Leverage Ratio determined as at the end of the last Fiscal
Quarter ended prior to the first day of such period. If by any Adjustment Date,
the Borrower has failed to deliver a Compliance Certificate for the then most
recently completed Fiscal Quarter, the Applicable Margin for the next succeeding
period commencing on such Adjustment Date and ending on the second Business Day
after such Compliance Certificate is actually delivered shall be computed as if
the Consolidated Total Leverage Ratio were at Level VI.
================================================================================
Level Consolidated Total Leverage Ratio
================================================================================
I Less than or equal to 4.50 to 1.00
--------------------------------------------------------------------------------
II Greater than 4.50 to 1.00 but less than or equal to 5.00 to 1.00
--------------------------------------------------------------------------------
III Greater than 5.00 to 1.00 but less than or equal to 5.50 to 1.00
--------------------------------------------------------------------------------
IV Greater than 5.50 to 1.00 but less than or equal to 6.00 to 1.00
--------------------------------------------------------------------------------
V Greater than 6.00 to 1.00 but less than or equal to 6.50 to 1.00
--------------------------------------------------------------------------------
VI Greater than 6.50 to 1.00
--------------------------------------------------------------------------------
"Leverage Ratio Determination Date" means the last day of the most
recent Fiscal Quarter for which financial statements have been or were required
to have been delivered pursuant to Section 7.01(a) or (b).
"License" means any authorization, permit, consent, franchise,
ordinance, registration, certificate, license, agreement or other right filed
with, granted by or entered into with a Governmental Authority or other Person
which permits or authorizes the use of an electromagnetic transmission frequency
or the construction or operation of a broadcast television station system or any
part thereof or any other authorization, permit, consent, franchise, ordinance,
registration, certificate, license, agreement or other right filed with, granted
by or entered into with a Governmental Authority or other Person which is
necessary for the lawful conduct of the business of constructing or operating a
broadcast television station.
"Lien" means, with respect to any property or asset (or any
revenues, income or profits therefrom) of any Person (in each case whether the
same is consensual or nonconsensual or arises by contract, operation of law,
legal process or otherwise), (i) any mortgage, lien, security interest, pledge,
attachment, levy or other charge or encumbrance of any kind thereupon or in
respect thereof or (ii) any other arrangement under which the same is
transferred, sequestered or otherwise identified with the intention of
subjecting the same to, or making the
24
same available for, the payment or performance of any liability in priority to
the payment of the ordinary, unsecured creditors of such Person. For purposes of
this Agreement, a Person shall be deemed to own subject to a Lien any asset that
it has acquired or holds subject to the interest of a vendor or lessor under any
conditional sale agreement, Capital Lease or other title retention agreement
relating to such asset.
"Loan" means any extension of credit made by any Bank pursuant to
this Agreement.
"Loan Documents" means this Agreement, all Guaranty Agreements, all
Security Documents, all Letter of Credit Related Documents, the ABRY Capital
Contribution Agreements, any notes executed and delivered pursuant to Section
2.02(b), any Interest Rate Protection Agreement with any Bank or any Affiliate
of any Bank, any other subordination agreement entered into with any Person with
respect to the Obligations, all agreements between any Person and any Bank
respecting fees payable in connection with this Agreement, any Incremental Loan
or any other Loan Document and all other written agreements, documents,
instruments and certificates now or hereafter executed and delivered by any
Credit Party or any other Person to or for the benefit of the Administrative
Agent, any Bank or any Affiliate of any Bank pursuant to or in connection with
any of the foregoing, and any and all amendments, increases, supplements and
other modifications thereof and all renewals, extensions, restatements,
rearrangements and/or substitutions from time to time of all or any part of the
foregoing.
"Loan Year" means, as applicable, the following periods of time
(each, a "Loan Year") occurring during the term of this Agreement:
-----------------------------------------------------------
Loan Year Period of Time
-----------------------------------------------------------
Loan Year 1 Effective Date through and including
March 31, 2002
-----------------------------------------------------------
Loan Year 2 April 1, 2002 through and including
March 31, 2003
-----------------------------------------------------------
Loan Year 3 April 1, 2003 through and including
March 31, 2004
-----------------------------------------------------------
Loan Year 4 April 1, 2004 through and including
March 31, 2005
-----------------------------------------------------------
Loan Year 5 April 1, 2005 through and including
March 31, 2006
-----------------------------------------------------------
Loan Year 6 April 1, 2006 through and including
March 31, 2007
-----------------------------------------------------------
25
-----------------------------------------------------------
Loan Year Period of Time
-----------------------------------------------------------
Loan Year 7 April 1, 2007 through and including
the Stated Term B Maturity Date
-----------------------------------------------------------
"Local Marketing Agreement" means a local marketing arrangement,
time brokerage agreement, management agreement or similar arrangement pursuant
to which a Person, subject to customary preemption rights and other limitations,
obtains the right to exhibit programming and sell advertising time during more
than fifteen percent (15%) of the air time of a television broadcast station
licensed to another Person.
"Major Television Network" means any of ABC, Inc., National
Broadcasting Company, Inc., CBS, Inc., FOX Television Network, or any other
television network which produces and makes available more than 15 hours of
weekly prime time television programming.
"Majority Banks" means, at any time, (i) Banks whose respective
Facility Percentages aggregate more than 50% and (ii) Bastet/Mission Banks
(whether or not also Banks) whose respective Bastet/Mission Facility Percentages
aggregate more than 50%.
"Management Agreement" has the meaning specified in Section 8.06(c).
"Management Loan" shall mean loans, not to exceed $3,000,000 in
aggregate principal amount, made by Bank of America in its individual capacity
to Sook, the proceeds of which loans that have been made were, and loans which
may be made will be, used by Sook in part to invest in the Ultimate Parent or to
pay interest on any such loan.
"Management Loan Guaranty" has the meaning specified in Section
8.05(j).
"Margin Stock" means "margin stock" as such term is defined in
Regulation T, U or X of the Federal Reserve Board.
"Material Adverse Effect" means, relative to any occurrence of
whatever nature (including any adverse determination in any litigation,
arbitration or governmental investigation or proceeding), a material adverse
effect on the operations, business, assets, properties, condition (financial or
otherwise) or prospects of (i) the Nexstar Entities taken as a whole, (ii) the
ability of any Credit Party to perform its obligations under the Loan Documents
to which it is a party or (iii) the validity or enforceability of this Agreement
or any other Loan Document or the rights and remedies of the Administrative
Agent or the Banks under this Agreement or any of the other Loan Documents.
"Maturity Date" means the earlier of (i) the Stated Maturity Date
and (ii) the date on which the Revolving Loans and/or the Term Loans become due
and payable in full pursuant to acceleration or otherwise.
"Maximum Incremental Amount" means $100,000,000.
26
"Measurement Period" means, with respect to any date, the most
recently ended four consecutive Fiscal Quarter period for which financial
statements have been or were required to have been delivered to the
Administrative Agent pursuant to Section 7.01(a) or (b) prior to such date.
"Midwest Acquisition" means the acquisition of the FCC licenses for
television stations WCIA, WCFN and WMBD and certain related assets pursuant to
the Midwest Acquisition Documents.
"Midwest Acquisition Documents" means Asset Purchase Agreement by
and among Nexstar Broadcasting of Champaign, L.L.C., Nexstar Broadcasting of
Peoria, L.L.C., Midwest Television, Inc., MWT-N, LLC and MWT-D, LLC, dated as of
July 12, 1999, and each document delivered pursuant thereto or in connection
therewith.
"Mission" means Mission Broadcasting of Wichita Falls, Inc.
"Moody's" means ▇▇▇▇▇'▇ Investors Service, Inc., and its successors.
"Mortgage Policies" mean the Mortgage Policies under, and as defined
in, the Existing Credit Agreement.
"Mortgaged Properties" mean all Real Property owned or leased by any
Nexstar Entity listed on Schedule 6.09 and designated as "Mortgaged Properties"
therein.
"Mortgages" mean all Mortgages (as defined in the Existing Credit
Agreement) granted by certain of the Nexstar Entities pursuant to the Existing
Credit Agreement (or any predecessor credit agreement which was amended and
restated by the Existing Credit Agreement) and which have not been released
prior to the Effective Date.
"Multiemployer Plan" means a "multiemployer plan" (within the
meaning of Section 4001(a)(3) of ERISA) and to which any Nexstar Entity or any
ERISA Affiliate makes, is making, or is obligated to make contributions or,
during the preceding three calendar years, has made, or been obligated to make,
contributions.
"Net Cash Proceeds" means, in connection with any Disposition
(including any Sale and Leaseback Transaction), the cash proceeds (including any
cash payments received by way of deferred payment pursuant to a promissory note,
receivable or otherwise, but only as and when received in cash) of such
Disposition net of (i) reasonable transaction costs (including any underwriting,
brokerage or other selling commissions and reasonable legal, advisory and other
fees and expenses, including title and recording expenses, associated therewith
actually incurred and satisfactorily documented), (ii) required payments on
Indebtedness permitted under Section 8.05 and which are not Restricted Payments
(other than payments due with respect to the Obligations), (iii) taxes estimated
to be paid as a result of such Disposition (including Restricted Payments
permitted under Section 8.10(d)) and (iv) any portion of such cash proceeds
which the Borrower determines in good faith should be reserved for post-closing
adjustments or liabilities (to the extent that the Borrower delivers to the
Administrative Agent a certificate signed by a Responsible Officer as to such
determination), it being understood and agreed that on the day all
27
such post-closing adjustments and liabilities have been determined, (x) the
amount (if any) by which the reserved amount of the cash proceeds of such
Disposition exceeds the actual post-closing adjustments or liabilities payable
by any Nexstar Entity shall constitute Net Cash Proceeds on such date and (y)
the amount (if any) by which the actual post-closing adjustments or other
liabilities payable by any Nexstar Entity exceeds the reserved amount of the
cash proceeds of such Disposition on such date shall be credited against any
subsequent Net Cash Proceeds that any Nexstar Entity is required to apply to
prepay the Loans pursuant to Section 2.07(b).
"Net Debt Proceeds" means, with respect to the incurrence or
issuance of any Indebtedness by any Nexstar Entity, (i) the gross cash proceeds
received in connection with such incurrence or issuance, as and when received,
minus (ii) all reasonable out-of-pocket transaction costs (including legal,
investment banking or other fees and disbursements) associated therewith
actually incurred (whether by such Nexstar Entity or an Affiliate thereof),
satisfactorily documented and paid (whether on behalf of such Nexstar Entity or
an Affiliate thereof) to any Person not an Affiliate of a Nexstar Entity.
"Net Income" means, for any Measurement Period, the net income (or
net loss) of a Person and its Subsidiaries for such period determined on a
consolidated basis in accordance with GAAP.
"Net Issuance Proceeds" means, with respect to the sale or issuance
of Capital Stock, or any capital contribution to, any Nexstar Entity from a
source other than a Nexstar Entity, (i) the gross cash proceeds received in
connection with such sale or issuance or such capital contribution, as and when
received minus (ii) all reasonable out-of-pocket transaction costs (including
legal, investment banking or other fees and disbursements) associated therewith
actually incurred (whether by such Nexstar Entity or an Affiliate thereof),
satisfactorily documented and paid (whether on behalf of such Nexstar Entity or
an Affiliate thereof) to any Person not an Affiliate of a Nexstar Entity.
"Network Affiliation Agreements" means each agreement set forth on
Schedule 6.21 and each other agreement entered into by a Television Company with
any Major Television Network pursuant to which a Television Company and such
Major Television Network agree to be affiliated and such Major Television
Network agrees that such Television Company shall serve as that Major Television
Network's primary outlet within any defined market for television programming
provided by such Major Television Network for broadcast by its station
affiliates.
"New Holding Company" means Nexstar Finance Holdings, L.L.C., a
Delaware limited liability company and a Nexstar Entity, at all times from and
after such time as the Indebtedness evidenced by the 16% Senior Discount Notes
issued May 17, 2001 by Nexstar Finance Holdings, L.L.C. in the aggregate
principal amount of $36,988,000 has been assumed by a new direct Wholly-Owned
Subsidiary of Nexstar Finance Holdings, L.L.C., Nexstar Finance Holdings, L.L.C.
has been fully and unconditionally released therefrom and Nexstar Finance
Holdings, L.L.C. has assigned and transferred to such new direct Wholly-Owned
Subsidiary 100% of the Capital Stock of the Borrower.
28
"Nexstar Entity" means the Ultimate Parent and any Person which is a
direct or indirect Subsidiary of the Ultimate Parent.
"Nexstar Equity" means Nexstar Equity Corp., a Delaware corporation,
100% of the issued and outstanding voting Class A Common Stock of which is owned
by ▇▇▇▇ ▇.▇. III and the sole asset of which is a 1% membership interest in the
Ultimate Parent.
"Nexstar Equity Investor Rights Agreement" means the Investor Rights
Agreement dated as of May 17, 2001, between the Ultimate Parent and Nexstar
Equity, as in effect on such date.
"Nexstar Equity Reimbursement Agreement" means the Reimbursement
Agreement dated as of May 17, 2001, between the Ultimate Parent and Nexstar
Equity, as in effect on such date.
"Nexstar Equity Unit Agreement" means the Unite Agreement dated as
of May 17, 2001, among Nexstar Financing Holdings, Nexstar Finance Holdings,
Inc., Nexstar Equity, the Ultimate Parent and the initial purchasers of the
units parties thereof, as in effect on such date.
"Nexstar Finance Holdings" means: (i) Nexstar Finance Holdings,
L.L.C., a Delaware limited liability company and a Nexstar Entity, until such
time as the Indebtedness evidenced by the 16% Senior Discount Notes issued May
17, 2001 by Nexstar Finance Holdings, L.L.C. in the aggregate principal amount
of $36,988,000 has been assumed by a new direct Wholly-Owned Subsidiary of
Nexstar Finance Holdings, L.L.C., Nexstar Finance Holdings, L.L.C. has been
fully and unconditionally released therefrom and Nexstar Finance Holdings,
L.L.C. has assigned and transferred to such new direct Wholly-Owned Subsidiary
100% of the Capital Stock of the Borrower; and (ii) such new direct Wholly-Owned
Subsidiary of Nexstar Finance Holdings, L.L.C. at all times thereafter.
"Nexstar Finance Holdings Bridge" means an unsecured bridge loan
facility in the original principal amount of $40,000,000, incurred pursuant to
the Bridge Loan Agreement and repaid in full prior to the date hereof.
"Nexstar Guaranty of Bastet/Mission Obligations" means that certain
Guaranty Agreement, dated as of January 12, 2001, executed and delivered by the
Nexstar Entities in favor of the Bastet/Mission Banks, whereby the Nexstar
Entities guaranty the obligations of the Bastet/Mission Entities under the
Bastet/Mission Loan Documents.
"Notice of Borrowing" means a notice given by the Borrower to the
Administrative Agent pursuant to Section 2.03(a), in substantially the form of
Exhibit F.
"Notice of Conversion/Continuation" means a notice given by the
Borrower to the Administrative Agent pursuant to Section 2.04(b), in
substantially the form of Exhibit G.
"Obligations" means the unpaid principal of and interest on
(including, without limitation, interest accruing after the maturity of the
Loans and Reimbursement Obligations and
29
interest accruing after the filing of any petition in bankruptcy, or the
commencement of any insolvency, reorganization or like proceeding, relating to
any Credit Party, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding) the Loans and all other obligations and
liabilities of any Credit Party to the Administrative Agent or to any Bank (or,
in the case of any Interest Rate Protection Agreement, any Affiliate of any
Bank), whether direct or indirect, absolute or contingent, due or to become due,
or now existing or hereafter incurred, which may arise under, out of, or in
connection with, this Agreement, any other Loan Document, or any other document
made, delivered or given in connection with any of the foregoing, whether on
account of principal, interest, Guaranty Obligations, reimbursement obligations,
fees, indemnities, costs, expenses (including, without limitation, all fees,
charges and disbursements of counsel to the Administrative Agent or to any Bank
that are required to be paid by any Credit Party pursuant to any Loan Document)
or otherwise.
"OECD" means the Organization for Economic Cooperation and
Development.
"Originating Bank" has the meaning specified in Section 11.07(d).
"Other Taxes" has the meaning specified in Section 4.01(b).
"Parent Guarantor" means the Ultimate Parent and all Subsidiaries of
the Ultimate Parent other than the Borrower and the Subsidiary Guarantors.
"Parent Guaranty Agreements" means the collective reference to (i)
the Guaranty Agreement of the Ultimate Parent and Nexstar Finance Holdings dated
as of January 12, 2001, (ii) the Guaranty Agreement of the direct Subsidiaries
of the Ultimate Parent, dated as of January 12, 2001, and (iii) the Guaranty
Agreement of Nexstar Finance Holdings, Inc. dated as of January 12, 2001, as
each of the same may be amended, supplemented and/or otherwise modified from
time to time.
"Parent Subordinated Convertible Promissory Note" means a promissory
note of Nexstar Finance Holdings or the New Holding Company, payable to the
order of a member of, or an Affiliate of a member of, the Ultimate Parent,
substantially in the form of Exhibit H.
"Participant" has the meaning specified in Section 11.07(d).
"PBGC" means the Pension Benefit Guaranty Corporation or any entity
succeeding to any of its principal functions under ERISA.
"Pension Plan" means a pension plan (as defined in Section 3(2) of
ERISA) subject to Title IV of ERISA which any Nexstar Entity or any ERISA
Affiliate sponsors or maintains, or to which it makes, is making, or is
obligated to make contributions, or in the case of a multiple employer plan (as
described in Section 4064(a) of ERISA) has made contributions at any time during
the immediately preceding five (5) plan years, but excluding any Multiemployer
Plan.
"Permitted Affiliate Transactions" means (i) Restricted Payments
permitted by Section 8.10; (ii) payments described in clause (iii) of the
definition of the term "Restricted
30
Payment"; (iii) payments to ABRY Partners, LLC in respect of corporate overhead
expenses of ABRY Partners, LLC in an aggregate amount not to exceed $50,000 in
any Fiscal Year; (iv) payments of out-of-pocket expenses and transaction fees
payable pursuant to the Management Agreement and incurred in connection with any
purchase or acquisition of any Person or Station, or the entering into of any
Local Marketing Agreement, Joint Sales Agreement and/or Shared Services
Agreement, pursuant to Section 8.04(b); (v) payments of management fees made
pursuant to the Management Agreement, so long as all management fee payments
made pursuant to the Management Agreement shall be in an amount not to exceed
$75,000 per Station per Fiscal Year and $300,000 in the aggregate per Fiscal
Year, in each case as the amount of such management fee amount may be increased
annually based on the United States Department of Labor's Consumer's Price
Index, and such payments of management fees may only be paid to the extent that
no Default or Event of Default has occurred or would occur after giving effect
thereto; (vi) transactions contemplated by the ABRY Capital Contribution
Agreements; (vii) Indebtedness permitted under Section 8.05(m) and (o); (viii)
the Management Loan Guaranty; and (ix) transactions contemplated by the Nexstar
Equity Unit Agreement, the Nexstar Equity Investor Rights Agreement, and the
Nexstar Equity Reimbursement Agreement, provided in the case of the Nexstar
Equity Reimbursement Agreement that the aggregate amount of expenses reimbursed
pursuant to such agreement in any fiscal year may not exceed $40,000.
"Permitted Borrower Preferred Equity" means non-voting, preferred
membership interests issued by the Borrower which (i) have no scheduled payments
of cash Dividends due or payable thereon and no scheduled redemption or
repurchase obligations with respect thereto until at least 180 days after the
Stated Maturity Date of the latest to mature of the Term Loans, (ii) are not
convertible, exchangeable or exercisable for any Indebtedness or any other
Capital Stock (other than Capital Stock of the Ultimate Parent), (iii) are not
redeemable at the option of the holder thereof until at least 180 days after the
Stated Maturity Date of the latest to mature of the Term Loans, other than with
respect to customary redemption rights with respect to (x) a change of control
of the Borrower which constitutes a Change of Control with respect to this
Agreement or (y) an asset sale, subject in each case to the prior payment in
full of the Obligations and customary subordination provisions for securities
with substantially the same terms and conditions as the Permitted Borrower
Preferred Equity and (iv) do not have any blockage rights, covenants or default
or cross-default provisions that could accelerate the payment of dividends or
liquidation preference rights.
"Permitted Borrower Subordinated Indebtedness" means (a)
subordinated Indebtedness of the Borrower evidenced by the Borrower's 12% Senior
Subordinated Notes due 2008, issued March 16, 2001, in an aggregate principal
amount of $160,000,000, pursuant to and upon the terms and conditions set forth
in the Indenture of even date therewith and the Guaranty Obligations of the
Borrower's Subsidiaries with respect thereto pursuant to the guaranty agreement
substantially in the form attached to such Indenture, and (b) subordinated
Indebtedness of the Borrower having the following terms and conditions: (i) no
portion of the principal of such Indebtedness shall be required to be paid,
whether by stated maturity, mandatory or scheduled prepayment or redemption or
otherwise, prior to the date that is 180 days after the Stated Maturity Date of
the latest to mature of the Term Loans, other than in the event of (x) a default
under such Indebtedness, (y) a change of control of the Borrower which
constitutes a Change of Control with respect to this Agreement or (z) an asset
sale, subject in
31
each case to the prior payment in full of the Obligations and the subordination
provisions described in clause (v) below; (ii) the documents, instruments and
other agreements pursuant to which such Indebtedness shall be issued or
outstanding shall contain no (x) financial maintenance covenants or
cross-default provisions other than cross-payment default and (y) no provisions
limiting amendments to, or consents, waivers or other modifications with respect
to, this Agreement or any other Loan Document; (iii) any other covenants,
defaults and events of default contained in the documents, instruments and other
agreements pursuant to which such Indebtedness shall be issued or outstanding
shall not be more restrictive than those contained in this Agreement or the
other Loan Documents and shall not conflict with or violate the covenants and
Defaults and Events of Default contained in this Agreement or the other Loan
Documents; (iv) no Liens or security interests on or in the assets or properties
of any Nexstar Entity are granted (or may arise at any time) to secure the
repayment such Indebtedness; and (v) such Indebtedness and any Guaranty
Obligations of any Nexstar Entities are subordinated to the Obligations on terms
customary for high yield debt securities with substantially the same terms and
conditions as the Permitted Borrower Subordinated Indebtedness.
"Permitted Borrower Unsecured Indebtedness" means unsecured
Indebtedness of the Borrower and/or its Subsidiaries to a Person other than a
Nexstar Entity or an Affiliate of a Nexstar Entity, on terms and conditions
reasonably acceptable to the Administrative Agent and the Majority Banks, such
terms and conditions to include, but not be limited to: (i) such Indebtedness
shall have a stated maturity date after the date that is 180 days after the
Stated Maturity Date of the latest to mature of the Term Loans, and shall not
have any scheduled payments, prepayments or redemptions of principal at any time
prior to the date that is 180 days after the Stated Maturity Date of the latest
to mature of the Term Loans; (ii) the documents, instruments and other
agreements pursuant to which such Indebtedness shall be issued or outstanding
shall contain no financial maintenance covenants or cross-default provisions and
no provisions limiting amendments to, or consents, waivers or other
modifications with respect to, this Agreement or any other Loan Document; and
(iii) no Liens or security interests on or in the assets or properties of any
Nexstar Entity are granted (or may arise at any time) to secure the repayment of
such Indebtedness and no Guaranty Obligation of any other Nexstar Entity is
granted for the payment or collection of such Indebtedness.
"Permitted Holdings Preferred Equity" means (a) non-voting,
preferred membership interests issued by Nexstar Finance Holdings to ABRY
Nexstar/Inc. on the effective date of the Existing Credit Agreement (the
"Existing Holdings Preferred Equity") or (b) non-voting preferred membership
interests issued by the Nexstar Finance Holdings at a time when it is not the
Holding Company to ABRY/Nexstar, Inc. in exchange for the Existing Holdings
Preferred Equity (the "Exchange Equity") provided that such Exchange Equity does
not require any additional funds to be invested in Nexstar Finance Holdings by
ABRY/Nexstar, Inc. and that such Exchange Equity does not grant any greater
dividends or other rights than those granted by Nexstar Finance Holdings to
ABRY/Nexstar, Inc. on the effective date of the Existing Credit Agreement,
including, without limitation, that such Exchange Equity may not (i) be
convertible, exchangeable or exercisable for any Indebtedness or any other
Capital Stock (other than Capital Stock of the Ultimate Parent) (except that, if
Nexstar Finance Holdings is no longer the Holding Company, then the Permitted
Holdings Preferred Equity issued by the Holding Company may be exchanged for
Permitted Holdings Preferred Equity of like tenor issued by Nexstar Finance
32
Holdings), (ii) be redeemable at the option of the holder thereof, (iii) have
any covenants, default or cross-default provisions or blockage rights or (iv)
require the payment of any cash dividends or other cash distributions.
"Permitted Holdings Unsecured Indebtedness" means (a) unsecured
Indebtedness of Nexstar Finance Holdings evidenced by Nexstar Finance Holding's
16% Senior Discount Notes issued May 17, 2001 in the aggregate principal amount
of $36,988,000, pursuant to and upon the terms and conditions set forth in the
Indenture of even date therewith, and (b) unsecured Indebtedness of Nexstar
Finance Holdings having the following terms and conditions: (i) no portion of
the principal of such Indebtedness shall be required to be paid, whether by
stated maturity, mandatory or scheduled prepayment or redemption or otherwise,
prior to the date that is 180 days after the Stated Maturity Date of the latest
to mature of the Term Loans, other than in the event of (x) a default under such
Indebtedness, (y) a change of control of Holdings which constitutes a Change of
Control with respect to this Agreement or (z) an asset sale, subject in each
case to the prior payment in full of the Obligations; (ii) the documents,
instruments and other agreements pursuant to which such Indebtedness shall be
issued or outstanding shall contain (x) no financial maintenance covenants, (y)
no cross-default provisions other than cross-payment default and (z) no
provisions limiting amendments to, or consents, waivers or other modifications
with respect to, this Agreement or any other Loan Document; (iii) any other
covenants and defaults or events of default contained in the documents,
instruments and other agreements pursuant to which such Indebtedness is issued
or outstanding shall not be more restrictive than those contained in this
Agreement or other Loan Documents and shall not conflict with or violate the
covenants and Defaults or Events of Default contained in this Agreement or the
other Loan Documents; (iv) no Liens or security interests on or in the assets or
properties of any Nexstar Entity shall be granted (or may arise at any time) to
secure the repayment of such Indebtedness; and (v) such Indebtedness has no
scheduled payment of interest due or payable with respect thereto until after
the fourth anniversary of the effective date of the Existing Credit Agreement.
"Permitted Liens" has the meaning specified in Section 8.02.
"Permitted Parent Preferred Equity" means non-voting, preferred
membership interests issued by the Ultimate Parent which (i) have no scheduled
payments of cash dividends due or payable thereon until after the fourth
anniversary of the effective date of the Existing Credit Agreement, and no
scheduled redemption or repurchase obligations with respect thereto until after
the date that is 180 days after the Stated Maturity Date of the latest to mature
of the Term Loans, (ii) are not convertible, exchangeable or exercisable for any
Indebtedness or any other Capital Stock other than (a) Capital Stock of the
Ultimate Parent or (b) after the fourth anniversary of the effective date of the
Existing Credit Agreement, unsecured Indebtedness of the Ultimate Parent having
substantially the same terms as the Permitted Holdings Unsecured Indebtedness,
(iii) are not redeemable at the option of the holder thereof until after the
date that is 180 days after the Stated Maturity Date of the latest to mature of
the Term Loans, other than with respect to customary redemption rights with
respect to (x) a change of control of the Ultimate Parent which constitutes a
Change of Control with respect to this Agreement or (y) an asset sale, subject
in each case to the prior payment in full of the Obligations and customary
subordination provisions for securities with substantially the same terms and
conditions as the Permitted Parent
33
Preferred Equity and (iv) do not have any blockage rights, covenants or default
or cross-default provisions that could accelerate the payment of dividends or
liquidation preference rights.
"Permitted Permanent Holdings Preferred Equity" means non-voting,
preferred membership interests issued by Nexstar Finance Holdings or the New
Holding Company which (i) have no scheduled payments of cash dividends due or
payable thereon until after the fourth anniversary of the effective date of the
Existing Credit Agreement, and no scheduled redemption or repurchase obligations
with respect thereto until after the date that is 180 days after the Stated
Maturity Date of the latest to mature of the Term Loans, (ii) are not
convertible, exchangeable or exercisable for any Indebtedness or any other
Capital Stock other than (a) Capital Stock of the Ultimate Parent and (b) after
the fourth anniversary of the effective date of the Existing Credit Agreement,
unsecured Indebtedness of the issuer of such membership interests having
substantially the same terms as the Permitted Holdings Unsecured Indebtedness,
(iii) are not redeemable at the option of the holder thereof until after the
date that is 180 days after the Stated Maturity Date of the latest to mature of
the Term Loans, other than with respect to customary redemption rights with
respect to (x) a change of control of the issuer of such membership interests
which constitutes a Change of Control with respect to this Agreement or (y) an
asset sale, subject in each case to the prior payment in full of the Obligations
and customary subordination provisions for securities with substantially the
same terms and conditions as the Permitted Permanent Holdings Preferred Equity
and (iv) do not have any blockage rights, covenants or default or cross-default
provisions that could accelerate the payment of dividends or liquidation
preference rights.
"Permitted Seller Subordinated Indebtedness" means subordinated
Indebtedness of the Borrower and/or its Subsidiaries incurred in connection with
a purchase or acquisition permitted under Section 8.04(b) and owed to a seller
thereof or other party thereto as partial or full consideration therefor, on
terms and conditions reasonably acceptable to the Administrative Agent and the
Majority Banks.
"Person" means any natural person, corporation, firm, trust,
partnership, business trust, association, government, governmental agency or
authority, or any other entity, whether acting in an individual, fiduciary, or
other capacity.
"Plan" means an employee benefit plan (as defined in Section 3(3) of
ERISA) which any Nexstar Entity or any ERISA Affiliate sponsors or maintains or
to which any Nexstar Entity or any ERISA Affiliate makes, is making, or is
obligated to make contributions and includes any Pension Plan or Multiemployer
Plan.
"Pledge and Security Agreement" means the Pledge and Security
Agreement dated as of January 12, 2001, pursuant to which each Credit Party has
pledged or collaterally assigned 100% of the Capital Stock of each of its
Subsidiaries, and any intercompany notes held by it.
"Pledged Collateral" has the meaning specified in the Pledge and
Security Agreement.
34
"Pledged Entity" means each "Pledged Partnership" and each "Pledged
Limited Liability Company" as these terms are defined in the Pledge and Security
Agreement.
"Prepayable Film Contract" means a contract evidencing a Film
Obligation in which the amount owed by a Person or any of its Subsidiaries under
such contract exceeds the remaining value of such contract to such Person or
such Subsidiary, as reasonably determined by such Person.
"Pro Forma Basis" means, with respect to any calculation to be made
on such basis (including calculations to be made with respect to Section 8.09)
to determine compliance with any provision of this Agreement on such basis or to
prepare any financial statements or financial projections to be prepared on such
basis, such calculation being made as of a specified date and/or for the
applicable Measurement Period relating to such specified date (or other
specified period or date as required in connection with such calculation) or
such financial statements or financial projections being prepared (in accordance
with GAAP) using the financial information of the specified date and/or the
applicable Measurement Period relating to such specified date (or other
specified period or date as required in connection with such preparation), after
giving effect to the relevant transactions the effect of which is required to be
given as stated herein (and all financial statement effects arising therefrom)
as if such transaction occurred on the first day of such applicable Measurement
Period or other specified period or on the date being tested (as applicable) as
required in connection with such calculation or preparation of financial
statements or projections (the "Test Period"). Any calculation or preparation
pursuant to the foregoing shall be made in good faith by the Borrower and shall
be set forth in an officer's certificate furnished to the Banks showing such
calculation (and the methodology used) in reasonable detail (with supporting
schedules as to the results of operations of the assets acquired or Disposed
of), which calculation or preparation and methodology shall be reasonably
satisfactory to the Administrative Agent.
"Pro Forma Compliance Certificate" means, for any Person, a
Compliance Certificate with respect to the Consolidated Senior Leverage Ratio
and the Consolidated Total Leverage Ratio, prepared on a Pro Forma Basis with
respect to the relevant proposed transaction for which such Pro Forma Compliance
Certificate is required to be delivered and any other transactions relating
thereto certifying and demonstrating that no Default or Event of Default exists
both before and after giving effect to such proposed transactions.
"Pro Forma Debt Service of Borrower" means, as of any date, all
scheduled payments of principal of and interest and dividends on Indebtedness
for borrowed money of the Borrower and its Subsidiaries (other than Excluded
Interest and Indebtedness evidenced by Borrower Subordinated Convertible
Promissory Notes) and Capital Leases of the Borrower and its Subsidiaries that
must be paid in cash during the next four full Fiscal Quarters as of the last
day of any applicable Measurement Period, excluding payments of principal of
Revolving Loans due on the Maturity Date.
"Pro Forma Debt Service of Holdings" means, as of any date, all
scheduled payments of principal of and interest on (to the extent such interest
is part of Consolidated Cash Interest Expense of Nexstar Finance Holdings at the
time it accrues or accrued) Permitted
35
Holdings Unsecured Indebtedness that must be paid in cash during the next four
full Fiscal Quarters as of the last day of any applicable Measurement Period.
"Pro Forma Debt Service Ratio" means, on any date, the ratio of (i)
the Consolidated Operating Cash Flow of the Borrower and its Subsidiaries for
the applicable Measurement Period relating to such date, to (ii) the Pro Forma
Debt Service of the Borrower, plus the Pro Forma Debt Service of Holdings as of
the last day of such Measurement Period.
"Real Property" means, with respect to any Person, all of the right,
title and interest of such Person in and to land, improvements and fixtures,
including Leaseholds.
"Recovery Event" means the receipt by any Nexstar Entity of any
insurance or other cash proceeds payable by reason of theft, loss, physical
destruction, condemnation or damage or any other similar event with respect to
any property or assets of any Nexstar Entity.
"Reference Rate" means the rate of interest publicly announced from
time to time by Bank of America in Dallas, Texas as its "reference rate". It is
a rate set by Bank of America based upon various factors, including Bank of
America's costs and desired return, general economic conditions and other
factors, and is used as a reference point for pricing some loans, which may be
priced at, above or below such announced rate. Any change in the Reference Rate
announced by Bank of America shall take effect at the opening of business on the
day specified in the public announcement of such change.
"Reimbursement and Contribution Agreements" shall mean those certain
Reimbursement and Contribution Agreements, dated as of January 12, 2001 entered
into by various Credit Parties as more fully set forth in Section 5.01(o) of the
Existing Credit Agreement with respect to certain reimbursement and contribution
rights and obligations among such Credit Parties in respect of their respective
Guaranty Obligations under the Guaranty Agreements.
"Reimbursement Obligations" means the obligation of the Borrower to
reimburse the Issuing Bank, pursuant to Section 3.03, for amounts drawn under
Letters of Credit.
"Reinvestment Assets" means any assets owned by and to be employed
in the business of the Borrower and its Subsidiaries as described in Section
8.01.
"Reinvestment Election" has the meaning specified in Section
2.07(b)(i).
"Reinvestment Notice" means a written notice signed by a Responsible
Officer of the Borrower stating that the Borrower in good faith, intends and
expects to use, or to cause a Subsidiary of the Borrower to use, all or a
specified portion of the Net Cash Proceeds of a Disposition to purchase,
construct or otherwise acquire Reinvestment Assets.
"Reinvestment Period" means the period commencing on the date of any
Disposition and terminating on the date which is 365 days after such
Disposition.
"Reinvestment Prepayment Amount" means, with respect to any
Reinvestment Election, the amount, if any, on the Reinvestment Prepayment Date
relating thereto by which
36
(i) the Anticipated Reinvestment Amount in respect of such Reinvestment Election
exceeds (ii) the aggregate amount thereof expended by the Borrower and/or any of
its Subsidiaries to acquire Reinvestment Assets (including reasonable
out-of-pocket disbursements in connection with any such acquisition).
"Reinvestment Prepayment Date" means, with respect to any
Reinvestment Election, the earliest of (i) the date, if any, upon which the
Administrative Agent, on behalf of the Majority Banks, shall have delivered a
written termination notice to the Borrower, provided that such notice may only
be given while a Default or an Event of Default exists, (ii) the last day of the
relevant Reinvestment Period and (iii) the date on which the Borrower or any of
its Subsidiaries shall have determined not to, or shall have otherwise ceased
to, proceed with the purchase, construction or other acquisition of Reinvestment
Assets with the related Anticipated Reinvestment Amount.
"Related Fund" means, with respect to any Bank that is a fund that
invests in commercial loans, any other fund that invests in commercial loans
that is managed by the same investment advisor as such Bank or by an Affiliate
of such Bank or investment advisor.
"Replaced Bank" has the meaning specified in Section 4.08(b).
"Replacement Bank" has the meaning specified in Section 4.08(b).
"Reportable Event" means, any of the events set forth in Section
4043(c) of ERISA or the regulations thereunder, other than any such event for
which the 30-day notice requirement under ERISA has been waived in regulations
issued by the PBGC.
"Required Junior Capital" means (i) Capital Stock (other than
Disqualified Stock) sold or issued after the Effective Date by the Ultimate
Parent, Permitted Borrower Preferred Equity, Permitted Holdings Unsecured
Indebtedness, Permitted Holdings Preferred Equity, Permitted Permanent Holdings
Preferred Equity, and/or Permitted Parent Preferred Equity in each case to the
extent that the Net Debt Proceeds or Net Issuance Proceeds, as applicable, from
the sale or issuance thereof have been contributed, directly or indirectly, as
cash equity to the Borrower (to the extent required by this Agreement) and/or
loans to the Borrower as provided in Section 8.05(m) and (ii) loans to the
Borrower permitted under Section 8.05(m).
"Requirement of Law" means, as to any Person, any law (statutory or
common), treaty, rule or regulation or determination of a court or of a
Governmental Authority, in each case applicable to or binding upon such Person
or any of its property or to which such Person or any of its property is
subject.
"Responsible Officer" means, for each Credit Party, its chief
executive officer, its president, any vice-president, its chief financial
officer, controller, vice president-finance, treasurer or assistant treasurer,
or any other officer having substantially the same authority and responsibility,
in each case acting solely in such capacity and without personal liability.
"Restricted Payment" means, as to any Person, (i) the authorization,
declaration or payment of any Dividend by such Person or any of its
Subsidiaries, (ii) the redemption,
37
retirement, purchase or other acquisition, directly or indirectly, for
consideration by such Person of any Capital Stock of such Person, or (iii) the
making of any payment by any Nexstar Entity in respect of any principal of or
interest on any Indebtedness other than Indebtedness incurred in accordance with
Sections 8.05(a) through (d) and Sections 8.05(g) through (j).
"Revolving Bank" means each Bank that has a Revolving Commitment or
that is a holder of a Revolving Loan made under the Revolving Commitments.
"Revolving Borrowing" means a Borrowing hereunder consisting of
Revolving Loans made to the Borrower on the same Borrowing Date and, in the case
of Eurodollar Loans, having the same Interest Periods.
"Revolving Commitment" means, as to any Bank, the obligation of such
Bank, if any, to make Revolving Loans (other than Incremental Revolving Loans)
to, and issue or participate in Letter of Credit Obligations on behalf of, the
Borrower hereunder in an aggregate principal amount not to exceed at any one
time the amount set forth under the heading "Revolving Commitment" opposite such
Bank's name on Schedule 2.01 or, in the case of any Bank that is an Assignee,
the amount of the Revolving Commitment of the assigning Bank which is assigned
to such Assignee in accordance with Section 11.07 and set forth in the
applicable Assignment and Assumption (in each case as the same may be adjusted
from time to time as provided herein).
"Revolving Commitment Fee" has the meaning specified in Section
2.09(a).
"Revolving Commitment Percentage" means, as to any Bank at any time,
(i) the percentage which the amount of such Bank's Revolving Commitment then
constitutes of the sum of the amount of all Revolving Commitments, or (ii) at
any time after the Revolving Commitments shall have expired or terminated, the
percentage which the aggregate principal amount of such Bank's Revolving Loans
made under its Revolving Commitment then outstanding constitutes of the
aggregate principal amount of all Revolving Loans made under the Revolving
Commitments then outstanding; provided that in the event that the Revolving
Loans made under the Revolving Commitments are paid in full prior to the
reduction to zero of the Aggregate Revolving Commitment, the Revolving
Commitment Percentages shall be determined in a manner designed to ensure that
the other outstanding Revolving Extensions of Credit shall be allocated to the
Banks which have Revolving Commitments on a comparable basis.
"Revolving Commitment Period" means the period from and including
the Effective Date (with respect to the Revolving Commitments) or the effective
date of the relevant Incremental Loan Amendment (with respect to each
Incremental Revolving Commitment), as applicable, to but not including the
Stated Revolving Credit Maturity Date.
"Revolving Extensions of Credit" means, as to any Bank at any time,
an amount equal to the sum of (i) the aggregate principal amount of all
Revolving Loans held by such Bank then outstanding plus (ii) the amount of such
Bank's participations in Letter of Credit Obligations.
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"Revolving Facility" means the revolving loan facility provided for
in Section 2.01(b).
"Revolving Facility Percentage" means, as to any Bank at any time,
(i) the percentage which (x) the sum of the amount of such Bank's Revolving
Commitment plus the amount of all such Bank's Incremental Revolving Commitments,
if any, then constitutes of (y) the sum of the amount of the Aggregate Revolving
Commitment plus the amount of the Aggregate Incremental Revolving Commitment, or
(ii) at any time after the Revolving Commitments and the Incremental Revolving
Commitments have expired or terminated, the percentage which the aggregate
principal amount of such Bank's Revolving Loans then outstanding constitutes of
the aggregate principal amount of all Revolving Loans then outstanding; provided
that in the event that the Revolving Loans made under Revolving Commitments are
paid in full prior to the reduction to zero of the Aggregate Revolving
Commitment, the Revolving Facility Percentages shall be determined in a manner
designed to ensure that the other outstanding Revolving Extensions of Credit
shall be allocated to Banks which have Revolving Commitments on a comparable
basis.
"Revolving Loan" has the meaning set forth in Section 2.01(b), as
modified by Section 2.01(c).
"S&P" means Standard & Poor's Ratings Group, a division of The
▇▇▇▇▇▇-▇▇▇▇ Companies, Inc., and its successors.
"Sale and Leaseback Transaction" means any arrangement, directly or
indirectly, with any Person whereby a seller or transferor shall sell or
otherwise transfer any real or personal property and then or thereafter lease,
or repurchase under an extended purchase contract, conditional sales or other
title retention agreement, the same or similar property.
"Security Agreement" means the Security Agreement dated as of
January 12, 2001, pursuant to which each Nexstar Entity has granted security
interests in its assets.
"Security Agreement Collateral" has the meaning specified in the
Security Agreement.
"Security Documents" means collectively the Pledge and Security
Agreement, the Security Agreement, each Mortgage and each Joinder to Pledge and
Security Agreement and Joinder to Security Agreement executed and delivered by
any Credit Party pursuant to any Loan Document or otherwise, as any of the same
may be amended, modified, restated, supplemented, renewed, extended, increased,
rearranged and/or substituted from time to time.
"Security Instrument" means any security agreement, chattel
mortgage, assignment, pledge agreement, financing or similar statement or
notice, continuation statement, other agreement or instrument, or amendment or
supplement to any thereof, providing for, evidencing or perfecting any security
interest.
"Shared Services Agreement" means a shared services arrangement or
other similar arrangement pursuant to which two Persons owning separate
television broadcast stations
39
agree to share the costs of certain services and procurements which they
individually require in connection with the ownership and operation of one
television broadcast station, whether through the form of joint or cooperative
buying arrangements or the performance of certain functions relating to the
operation of one television broadcast station by employees of the owner and
operator of the other television broadcast station, including, but not limited
to, the co-location of the studio, non-managerial administrative and/or master
control and technical facilities of such television broadcast station and/or the
sharing of maintenance, security and other services relating to such facilities.
"Significant Station" on any date means any Station, if the
Consolidated Operating Cash Flow for such Station exceeds 10% of the sum of the
Consolidated Operating Cash Flow for all Stations and the corporate overhead
expenses for all Stations, in each case determined for the Measurement Period
for such date; provided that, for purposes of this definition and Section
9.01(n), two or more Stations that substantially simulcast the same programming
will be deemed to be a single Station so long as they do so.
"Solvency Certificate" means a certificate, signed by the Chief
Financial Officer of each of the Nexstar Entities, substantially in the form of
Exhibit I.
"Solvent" means, when used with respect to any Person, means that,
as of any date of determination, (a) the amount of the "fair value" or "present
fair saleable value" of the assets of such Person (on a going-concern basis)
will, as of such date, exceed the amount of all "liabilities of such Person,
contingent or otherwise," as of such date, as such quoted terms are determined
in accordance with applicable federal and state laws governing determinations of
the insolvency of debtors, (b) such fair value or present fair saleable value of
the assets of such Person (on a going-concern basis) will, as of such date, be
greater than the amount that will be required to pay the liability of such
Person on its debts as such debts become absolute and matured, (c) such Person
will not have, as of such date, an unreasonably small amount of capital with
which to conduct its business, and (d) such Person will be able to pay its debts
as they mature. For purposes of this definition, (i) "debt" means liability on a
"claim," (ii) "claim" means any (x) right to payment, whether or not such a
right is reduced to judgment, liquidated, unliquidated, fixed, contingent,
matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured
or (y) right to an equitable remedy for breach of performance if such breach
gives rise to a right to payment, whether or not such right to an equitable
remedy is reduced to judgment, fixed, contingent, matured or unmatured,
disputed, undisputed, secured or unsecured and (iii) unliquidated, contingent,
disputed and unmatured claims shall be valued at the amount that can be
reasonably expected to be actual and matured.
"Sook" means ▇▇▇▇▇ ▇▇▇▇, an individual residing on the Effective
Date in the State of Texas.
"Stated Maturity Date" means (i) with respect to Revolving Loans,
the Stated Revolving Credit Maturity Date, (ii) with respect to Term A Loans,
the Stated Term A Maturity Date, and (iii) with respect to Term B Loans, the
Stated Term B Maturity Date.
"Stated Revolving Credit Maturity Date" means January 12, 2007.
40
"Stated Term A Maturity Date" means January 12, 2007.
"Stated Term B Maturity Date" means July 12, 2007.
"Station" means, at any time, collectively, (i) each television
station listed in Schedule 6.16 hereto, (ii) any television station licensed by
the FCC to any Nexstar Entity on, or at any time after, the Effective Date and
(iii) any television station that is the subject of a purchase, acquisition,
Local Marketing Agreement, Joint Sales Agreement or Shared Services Agreement
consented to by the Majority Banks or otherwise permitted under Section 8.04(b).
"Subsidiary" means, as to any Person, (i) any corporation more than
50% of whose Capital Stock of any class or classes having by the terms thereof
ordinary voting power to elect a majority of the directors of such corporation
(irrespective of whether or not at the time stock of any class or classes of
such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such Person directly or
indirectly through Subsidiaries, and (ii) any partnership, limited liability
company, association, joint venture or other entity in which such Person,
directly or indirectly through Subsidiaries, has more than a 50% equity interest
at the time. Additionally, in calculating financial covenants or financial
performance (excluding the calculation of Excess Cash Flow), the financial
position and results of the Bastet/Mission Borrowers shall be included as if
they were Wholly-Owned Subsidiaries of the Borrower and any television station
owned by a Bastet/Mission Entity were a "Station" so long as Joint Sales
Agreements, Shared Services Agreements and/or Local Marketing Agreements between
the Bastet/Mission Entities and one or more Subsidiaries of the Borrower,
covering all of the television broadcast stations of the Bastet/Mission
Entities, are in full force and effect.
"Subsidiary Guarantor" means each Subsidiary of the Borrower.
"Subsidiary Guaranty Agreement" means the Subsidiary Guaranty
Agreement of the Subsidiary Guarantors dated as of January 12, 2001, as the same
may be amended, supplemented and/or otherwise modified from time to time.
"Syndication Agent" means Barclays Bank PLC, in its capacity as
Syndication Agent for the Banks hereunder, and any successor to such agent.
"Taxes" has the meaning specified in Section 4.01(a).
"Television Broadcasting Business" means a business substantially
all of which consists of the construction, ownership, operation, management,
promotion, extension or other utilization of any type of television broadcasting
system or any similar television broadcasting business, including the
syndication of television programming, the obtaining of a license or franchise
to operate such a system or business, and activities incidental thereto, such as
providing production services.
"Television Company" means any Nexstar Entity, to the extent such
Person owns or operates a Station.
41
"Term Bank" means each Bank that has a Term A Commitment or Term B
Commitment or that is the holder of a Term A Loan or Term B made under any Term
Commitment.
"Term A Bank" means each Bank that has a Term A Commitment or that
is the holder of a Term A Loan made under the Term A Commitments.
"Term A Commitment" means, as to any Bank, the sum of such Bank's
Initial Term A Commitment plus such Bank's Additional Term A Loan Commitment.
"Term A Commitment Fee" has the meaning specified in Section
2.09(a).
"Term A Facility Percentage" means, as to any Bank at any time, the
percentage which (i) the sum of all of such Bank's Term A Loans then outstanding
constitutes of (ii) the sum of the Aggregate Outstanding Term A Loan Balance.
"Term A Loan" has the meaning set forth in Section 2.01(a)(i), as
modified by Section 2.01(c).
"Term B Bank" means each Bank that has a Term B Commitment or that
is the holder of a Term B Loan made under the Term Commitments.
"Term B Commitment" means, as to any Bank, the obligation of such
Bank, if any, to make Term B Loans to the Borrower hereunder in an aggregate
principal amount not to exceed the amount set forth under the heading "Term B
Commitment" opposite such Bank's name on Schedule 2.01.
"Term B Facility Percentage" means, as to any Bank at any time, the
percentage which (i) the sum of all of such Bank's Term B Loans then outstanding
constitutes of (ii) the sum of the Aggregate Outstanding Term B Loan Balance.
"Term B Loan" has the meaning set forth in Section 2.01(a)(ii).
"Term Borrowing" means a Borrowing hereunder consisting of Term
Loans made to the Borrower on the same Borrowing Date.
"Term Commitment" means, as to any Bank, such Bank's Term A
Commitment and/or Term B Commitment, as applicable.
"Term Loan" means a Term A Loan or Term B Loan, as applicable.
"Test Period" has the meaning specified in the definition of "Pro
Forma Basis".
"Tranche" means the collective reference to Eurodollar Loans made by
the Banks to the Borrower, the then current Interest Periods with respect to
which begin on the same date and end on the same later date, whether or not such
Loans shall originally have been made on the same day.
42
"Transaction" means collectively, the incurrence of the Loans and
other extensions of credit to be made to the Nexstar Entities on the Effective
Date and the refinancing of the Loans under the Existing Credit Agreement.
"Transferee" has the meaning specified in Section 11.08.
"Ultimate Parent" has the meaning specified in the Preamble hereto.
"Unfunded Pension Liability" means the excess of a Pension Plan's
benefit liabilities under Section 4001(a)(16) of ERISA, over the current value
of that Plan's assets, determined in accordance with the assumptions used for
funding the Pension Plan pursuant to Section 412 of the Code for the applicable
plan year.
"United States" and "U.S." each means the United States of America.
"Wholly-Owned Subsidiary" means, as to any Person, (i) any
corporation 100% of whose capital stock (other than director's or other
qualifying shares) is at the time owned by such Person and/or one or more direct
or indirect Wholly-Owned Subsidiaries of such Person and (ii) any partnership,
limited liability company, association or other entity in which such Person
and/or one or more direct or indirect Wholly-Owned Subsidiaries of such Person
has a 100% equity interest at such time.
1.02 Other Definitional Provisions.
(a) Unless otherwise specified herein or therein, all terms
defined in this Agreement shall have such defined meanings when used in
any Exhibit, Schedule or other Loan Document or any certificate or other
document made or delivered pursuant hereto. The meaning of defined terms
shall be equally applicable to the singular and plural forms of the
defined terms.
(b) The words "hereof", "herein", "hereunder" and words of
similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement, and
Section, Schedule and Exhibit references are to this Agreement unless
otherwise specified.
(c) The term "documents" includes any and all instruments,
documents, agreements, certificates, indentures, notices and other
writings, however evidenced.
(d) The terms "including" or "include" are not limiting and
mean "including without limitation" or "include without limitation".
(e) References in this Agreement or any other Loan Document to
knowledge by any Credit Party of events or circumstances shall be deemed
to refer to events or circumstances of which a Responsible Officer of such
Person has actual knowledge or reasonably should have knowledge.
43
(f) References in this Agreement or any other Loan Document to
financial statements shall be deemed to include all related schedules and
notes thereto.
(g) Except as otherwise specified herein, all references to
any Governmental Authority or Requirement of Law defined or referred to
herein shall be deemed references to such Governmental Authority or
Requirement of Law or any successor Governmental Authority or Requirement
of Law, and any rules or regulations promulgated thereunder from time to
time, in each case as the same may have been or may be amended or
supplemented from time to time.
(h) References herein to a certification or statement of an
officer of a Person or other individual shall mean a certification or
statement of such Person, which is executed on behalf of such Person by
such individual in his or her capacity as an officer of such Person.
(i) Subject to the definitions of the terms "Interest Period"
and "Interest Payment Date" in Section 1.01, whenever any performance
obligation hereunder shall be stated to be due or required to be satisfied
on a day other than a Business Day, such performance shall be made or
satisfied on the next succeeding Business Day. In the computation of
periods of time from a specified date to a later specified date, the word
"from" means "from and including"; the words "to" and "until" each mean
"to but excluding," and the word "through" means "to and including." If
any provision of this Agreement refers to any action taken or to be taken
by any Person, or which such Person is prohibited from taking, such
provision shall be interpreted to encompass any and all means, direct or
indirect, of taking, or not taking, such action.
(j) Unless otherwise expressly provided herein, references to
agreements and other contractual instruments shall be deemed to include
all subsequent amendments and other modifications thereto, but only to the
extent such amendments and other modifications are not prohibited by the
terms of any Loan Document.
(k) References to any statute or regulation are to be
construed as including all statutory and regulatory provisions
consolidating, amending or replacing such statute or regulation.
1.03 Accounting Principles. Except as provided to the contrary
herein, all accounting terms used herein shall be interpreted in accordance with
GAAP. Unless the context otherwise clearly requires, all financial computations
required under this Agreement shall be made in accordance with GAAP; provided
that if the Borrower notifies the Administrative Agent that the Borrower wishes
to amend any covenant in Article VIII or the definition of any term used therein
to eliminate the effect of any change in GAAP occurring after the Effective Date
or the operation of such covenant (or if the Administrative Agent notifies the
Borrower that the Majority Banks wish to amend Article VIII or any such
definition for such purpose), then compliance with such covenant shall be
determined on the basis of GAAP in effect immediately before the relevant change
in GAAP became effective, until either such notice is withdrawn or such covenant
or definition is amended in a manner satisfactory to the Borrower and the
Majority Banks. Additionally, in calculating financial covenants or financial
performance
44
(excluding the calculation of Excess Cash Flow), the financial position and
results of Bastet/Mission Entities shall be included as if each was a
Wholly-Owned Subsidiary of the Borrower and any television station owned by a
Bastet/Mission Entity were a Station.
1.04 Classes and Types of Loans and Borrowings. The term "Borrowing"
denotes the aggregation of Loans of one or more Banks to be made to the Borrower
pursuant to Section 2.03 on the same date, all of which Loans are of the same
Class and Type and, in the case of Eurodollar Loans, have the same initial
Interest Period. Loans made under this Agreement are distinguished by "Class"
and by "Type". The "Class" of a Loan (or of a commitment to make such a Loan or
of a Borrowing comprised of such Loans) refers to the determination of whether
such commitment or Loan is (a) a Revolving Commitment or a Revolving Loan made
under the Revolving Commitments, (b) an Incremental Revolving Commitment
relating to a specified Incremental Facility or an Incremental Revolving Loan
made under such Incremental Facility, (c) a Term A Commitment or a Term A Loan
made under the Term A Commitments, (d) a Term B Commitment or a Term B Loan made
under the Term B Commitments or (e) an Incremental Term Commitment relating to a
specified Incremental Facility or an Incremental Term Loan made under such
Incremental Facility, each of which constitutes a "Class". The "Type" of a Loan
refers to the determination whether such Loan is a Eurodollar Loan or a Base
Rate Loan, each of which constitutes a "Type". Identification of a Loan (or of a
Commitment to make such a Loan or of a Borrowing comprised of such Loans) by
both Class and Type, e.g., a "Eurodollar Incremental Term Loan", indicates that
such Loan is both an Incremental Term Loan and a Eurodollar Loan (or that such
Borrowing is comprised of such Loans).
ARTICLE II.
THE CREDIT FACILITIES
2.01 Amounts and Terms of Commitments.
(a) The Term Loans.
(i) Each Term A Bank severally agrees, subject to the terms
and conditions hereinafter set forth, (A) to make a term loan (each, an
"Initial Term A Loan") to the Borrower on the Effective Date (and not
thereafter) in an aggregate principal amount not to exceed the Initial
Term A Loan Commitment of such Term A Bank and (B) to make an additional
term loan (each, an "Additional Term A Loan" and, together with the each
Initial Term A Loan, collectively, the "Term A Loans") to the Borrower, on
any Business Day during the period from the Effective Date until the
Additional Term A Loan Commitment terminates as hereinafter provided, in
an aggregate principal amount not to exceed the Additional Term A Loan
Commitment of such Term A Bank; provided however that the aggregate
principal amount of all outstanding Term A Loans made under the Term A
Commitments shall not exceed the Aggregate Term A Commitment. Within such
limits, and subject to the other terms and conditions of this Agreement,
the Borrower may borrow Term A Loans under this Section 2.01(a)(i) and
under Section 2.01(c); provided that amounts borrowed as Term A Loans
which are repaid or prepaid
45
may not be reborrowed. The Initial Term A Loan Commitments shall
automatically and permanently terminate effective as of June 15, 2001, and
the Additional Term A Loan Commitments shall automatically and permanently
terminate effective as of the earliest of to occur of (x) June 15, 2001,
if the Initial Term A Loans have not been funded in full by such date, (y)
the date that the Term A Banks fund any Additional Term A Loan and (z) the
date that is eighteen months after the Effective Date.
(ii) Each Term B Bank severally agrees, subject to the terms
and conditions hereinafter set forth, to make a term loan (each, a "Term B
Loan") to the Borrower on the Effective Date (and not thereafter) in an
aggregate principal amount not to exceed the Term B Loan Commitment of
such Term B Bank; provided however that after giving effect to any Term B
Loan made under a Term B Commitment, the aggregate principal amount of all
outstanding Term B Loans made under the Term B Commitments shall not
exceed the Aggregate Term B Commitment. Within such limits, and subject to
the other terms and conditions of this Agreement, the Borrower may borrow
Term B Loans under this Section 2.01(a)(ii); provided that amounts
borrowed as Term B Loans which are repaid or prepaid may not be
reborrowed. The Term B Commitments shall automatically and permanently
terminate effective as of June 15, 2001.
(iii) Term Loans may from time to time be (i) Eurodollar Loans
or (ii) Base Rate Loans or a combination thereof, as determined by the
Borrower pursuant to Section 2.03(b) or Section 2.04.
(b) The Revolving Loans. Each Revolving Bank severally agrees,
subject to the terms and conditions hereinafter set forth, to make
revolving loans (each, a "Revolving Loan") to the Borrower from time to
time on any Business Day, during the Revolving Commitment Period, in an
aggregate principal amount not to exceed at any time outstanding the
Revolving Commitment of such Revolving Bank; provided, however that after
giving effect to any Revolving Loan made under a Revolving Commitment, the
aggregate principal amount of all outstanding Revolving Loans made under
the Revolving Commitments plus the aggregate amount of all outstanding
Letter of Credit Obligations shall not exceed the Aggregate Revolving
Commitment. Within such limits, and subject to the other terms and
conditions hereof, the Borrower may borrow Revolving Loans under this
Section 2.01(b), prepay Revolving Loans pursuant to Section 2.06 or
2.07(a)(i) and reborrow Revolving Loans pursuant to this Section 2.01(b).
Revolving Loans may from time to time be (i) Eurodollar Loans or (ii) Base
Rate Loans or a combination thereof, as determined by the Borrower
pursuant to Section 2.03(b) and Section 2.04.
(c) The Incremental Loans.
(i) So long as no Default or Event of Default has
occurred and is continuing, at any time and from time to time prior
to December 31, 2002, the Borrower may request pursuant to the
procedure set forth in Section 2.16, the addition of an Incremental
Facility consisting of either a new tranche of revolving loans
(each, an "Incremental Revolving Loan") or a new tranche of term
loans
46
(each, an "Incremental Term Loan"); provided however that the
Borrower may not make a request for an Incremental Facility if after
giving effect thereto the sum of all then outstanding Incremental
Revolving Loans and unused Incremental Revolving Commitments,
Incremental Term Loans and unused Incremental Term Commitments would
exceed the then Maximum Incremental Amount. Each Incremental
Revolving Loan and each Incremental Term Loan shall: (A) unless
otherwise specifically provided in this Agreement, upon the
effectiveness of the Incremental Revolving Commitment or Incremental
Term Commitment relating thereto as provided in Section 2.01(c)(ii),
be deemed to be a Revolving Loan or a Term A Loan, as applicable,
for all purposes under this Agreement, including for purposes of the
sharing of Collateral and guarantees under the Guaranty Agreements
all on a pari passu basis with all other Obligations; (B) have such
pricing as may be agreed by the Borrower and the Banks agreeing to
provide such Incremental Revolving Loans and/or Incremental Term
Loans pursuant to the provisions of this Section 2.01(c) and Section
2.16; and (C) otherwise have all of the same terms and conditions as
the Revolving Loans that are not Incremental Revolving Loans (if
such Incremental Loans are Incremental Revolving Loans) or as the
Term A Loans (if such Incremental Loans are Term Loans). In
addition, unless otherwise specifically provided in this Agreement,
all references in the Loan Documents to Revolving Loans and to Term
A Loans shall be deemed, as the context requires, to include
references to Incremental Revolving Loans and Incremental Term
Loans, respectively, made pursuant to this Agreement. No Bank shall
have any obligation to make an Incremental Loan unless and until it
commits to do so. Subject to the proviso at the end of Section
2.16(a), Commitments in respect of Incremental Loans shall become
Commitments under this Agreement pursuant to (x) an amendment (each,
an "Incremental Loan Amendment") to this Agreement executed by the
Borrower, each Bank or other approved financial institution agreeing
to provide such Commitment (and no other Bank shall be required to
execute such amendment), and the Administrative Agent, and (y) any
amendments to the other Loan Documents (executed by the relevant
Credit Party and the Administrative Agent only) as the
Administrative Agent shall reasonably deem appropriate to effect
such purpose. Notwithstanding anything to the contrary contained
herein, the effectiveness of such Incremental Loan Amendment shall
be subject to the satisfaction on the date thereof and, if
different, on the date on which the Incremental Loans are made, of
each of the conditions set forth in Section 5.03.
(ii) So long as (x) the Borrower shall have given the
Administrative Agent no less than five Business Days' prior notice
of the effectiveness thereof and (y) any financial institution not
theretofore a Bank which is providing an Incremental Revolving
Commitment and/or an Incremental Term Commitment shall have become a
Bank under this Agreement pursuant to an Incremental Loan Amendment,
the Incremental Revolving Commitment and/or Incremental Term
Commitment being requested by the Borrower shall become effective
under this Agreement upon the effectiveness of such Incremental Loan
Amendment. Upon such effectiveness, Schedule 2.01 shall be deemed
amended
47
to reflect such Commitments. In the event that an Incremental
Facility shall have become effective, the Bank or Banks providing
such Incremental Revolving Commitments or Incremental Term
Commitments shall be deemed to have agreed, severally and not
jointly, upon the terms and subject to the conditions of this
Agreement, (A) with respect to Incremental Term Commitments, to make
an Incremental Term Loan in the amount of the Incremental Term
Commitment of such Bank on the effective date of the applicable
Increment Loan Amendment and (B) with respect to Incremental
Revolving Commitments, to make from time to time during the period
from the date of the effectiveness of the applicable Incremental
Loan Amendment through the Maturity Date, one or more Incremental
Revolving Loans to the Borrower pursuant to the provisions of
Section 2.03 in an aggregate principal amount not exceeding at any
time the Incremental Revolving Commitment of such Bank at such time.
2.02 Loan Accounts; Notes.
(a) Loan Accounts. The Loans made by each Bank shall be
evidenced by one or more loan accounts maintained by such Bank and the
Administrative Agent in the ordinary course of business. The loan accounts
maintained by the Administrative Agent shall, in the event of a
discrepancy between the entries in the Administrative Agent's books and
any Bank's books relating to such loan accounts, be controlling and,
absent manifest error, shall be conclusive as to the amount of the Loans
made by the Banks to the Borrower, the interest and payments thereon and
any other amounts owing in respect of this Agreement. Any failure to make
a notation in any such loan account or any error in doing so shall not
limit or otherwise affect the obligations of the Borrower hereunder to pay
any amount owing with respect to the Loans.
(b) Notes. If requested by any Bank, the Borrower shall
execute and deliver to such Bank (and deliver a copy thereof to the
Administrative Agent) one or more promissory notes evidencing the Loans
owing to such Bank pursuant to this Agreement. Any such note shall be in a
form prescribed by the Administrative Agent and shall be entitled to all
of the rights and benefits of this Agreement and the other Loan Documents.
2.03 Procedure for Borrowing.
(a) Procedure for Revolving Loan Borrowings. Subject to the
terms and conditions of this Agreement, the Borrower may borrow under the
Revolving Commitments and/or under any Incremental Revolving Commitments
comprising an Incremental Facility then in effect, in each case on any
Business Day during the Revolving Commitment Period; provided that the
Borrower shall give the Administrative Agent an irrevocable Notice of
Borrowing, which Notice of Borrowing must be received by the
Administrative Agent prior to 11:00 A.M., Dallas, Texas time, (i) three
Business Days prior to the requested Borrowing Date, if all or any part of
the requested Revolving Loans are to be initially Eurodollar Loans, or
(ii) one Business Day prior to the requested Borrowing Date otherwise,
specifying (A) the aggregate amount of the Borrowing,
48
(B) the requested Borrowing Date, (C) the Type or Types of Revolving Loans
comprising such Borrowing, and (D) if the Borrowing is to be entirely or
partly of Eurodollar Loans, the respective amounts of each Tranche and the
respective lengths of the initial Interest Periods therefor (subject to
the provisions of the definition of Interest Period). Each Borrowing under
the Revolving Commitments or under any Incremental Facility consisting of
Incremental Revolving Commitments shall be in an amount equal to (x) in
the case of Base Rate Loans, $1,000,000 or a whole multiple of $500,000 in
excess thereof (or, if the Aggregate Available Revolving Commitment is
less than $1,000,000, such lesser amount) and (y) in the case of
Eurodollar Loans, each Tranche shall be $1,000,000 or a whole multiple of
$500,000 in excess thereof. Upon receipt of a Notice of Borrowing with
respect to a Borrowing under this Section 2.03(a), the Administrative
Agent shall promptly notify each relevant Bank of such Borrowing. Each
Revolving Bank will make the amount of its pro rata share of each
requested Borrowing made under the applicable Incremental Facility, as
applicable, available to the Administrative Agent for the account of the
Borrower at the Administrative Agent's Payment Office prior to 1:00 P.M.,
Dallas, Texas time on the Borrowing Date requested by the Borrower in
funds immediately available to the Administrative Agent. Unless any
applicable condition of Article V has not been satisfied, the proceeds of
such Borrowing or Borrowings will then be made available to the Borrower
by the Administrative Agent by wire transfer in accordance with written
instructions provided to the Administrative Agent by the Borrower with the
aggregate of the amounts made available to the Administrative Agent by the
Revolving Banks and/or the relevant Incremental Revolving Banks, as
applicable, and in like funds as received by the Administrative Agent.
(b) Procedure for Term Loan Borrowings. Subject to the terms
and conditions of this Agreement, the Borrower may borrow (i) under the
Initial Term A Loan Commitments on the Effective Date (ii) under the
Additional Term A Loan Commitments on any Business Day from the Effective
Date until the termination of the Additional Term A Loan Commitments,
(iii) under the Term B Commitments on the Effective Date, and (iv) under
any Incremental Facility consisting of Incremental Term Commitments on the
effective date of the relevant Incremental Loan Amendment therefor;
provided in each case that the Borrower shall give the Administrative
Agent an irrevocable Notice of Borrowing, which Notice of Borrowing must
be received by the Administrative Agent prior to 11:00 A.M., Dallas, Texas
time, (i) three Business Days prior to the requested Borrowing Date, if
all or any part of the Borrowings are to be initially Eurodollar Loans, or
(ii) one Business Day prior to the requested Borrowing Date otherwise,
requesting that the Banks participating in such Borrowing make the Term
Loans on the Effective Date or the effective date of the relevant
Incremental Loan Amendment, as applicable, and specifying (A) the
aggregate amount of the Borrowing, (B) the Class of Loans comprising such
Borrowing, (C) the Type or Types of Term Loans comprising such Borrowing,
and (D) if the Borrowing is to be entirely or partly Eurodollar Loans, the
respective amounts of each Tranche (which shall be $1,000,000 or a whole
multiple of $500,000 in excess thereof) and the respective lengths of the
initial Interest Periods therefor (subject to the provisions of the
definition of Interest Period). Upon receipt of a Notice of Borrowing with
respect to a Borrowing under this Section 2.03(b), the Administrative
Agent shall promptly notify each relevant Bank of such
49
Borrowing. Each Term Bank will make the amount of its pro rata share of
each requested Borrowing made under the Term Commitments and each relevant
Incremental Term Bank will make its pro rata share of each requested
Borrowing made under the applicable Incremental Facility, as applicable,
available to the Administrative Agent for the account of the Borrower at
the Administrative Agent's Payment Office prior to 1:00 P.M., Dallas,
Texas time, on the requested Borrowing Date, in funds immediately
available to the Administrative Agent. Unless any applicable condition of
Article V has not been satisfied, the proceeds of such Borrowing or
Borrowings will then be made available to the Borrower by the
Administrative Agent by wire transfer in accordance with written
instructions provided to the Administrative Agent by the Borrower with the
aggregate of the amounts made available to the Administrative Agent by the
Term Banks and/or the relevant Incremental Term Banks, as applicable, and
in like funds as received by the Administrative Agent.
(c) No Eurodollar Loans made during an Event of Default.
During the existence of an Event of Default, the Borrower may not elect to
have a Loan be made as a Eurodollar Loan.
(d) Limit on Eurodollar Loans. After giving effect to any
Borrowing or Borrowings, there shall not be more than five different
Interest Periods in effect in respect of all Loans which are Eurodollar
Loans.
2.04 Conversion and Continuation Elections for all Borrowings.
(a) Election for Conversion/Continuation. The Borrower may
upon irrevocable written notice (or telephonic notice immediately
confirmed in writing) to the Administrative Agent in accordance with
Section 2.04(b): (i) elect to convert on any Business Day, any Base Rate
Loans (or any part thereof in an amount of not less than $1,000,000 or an
integral multiple of $500,000 in excess thereof) into Eurodollar Loans;
(ii) elect to convert on the last day of the Interest Period with respect
thereto, any Eurodollar Loans (or any part thereof in an amount of not
less than $1,000,000 or an integral multiple of $500,000 in excess
thereof) into Base Rate Loans; or (iii) elect to continue on the last day
of the Interest Period with respect thereto, any Eurodollar Loans (or any
part thereof in an amount not less than $1,000,000 or an integral multiple
of $500,000 in excess thereof); provided, however that if the aggregate
amount of a Borrowing comprised of Eurodollar Loans shall have been
reduced, by payment, prepayment, or conversion of part thereof to be less
than $500,000, the Eurodollar Loans comprising such Borrowing shall
automatically convert into Base Rate Loans on the last day of the
then-current Interest Period therefor, and on and after such date the
right of the Borrower to continue such Loans as, and convert such Loans
into, Eurodollar Loans shall terminate.
(b) Notice of Conversion/Continuation. The Borrower shall
deliver a Notice of Conversion/Continuation in accordance with Section
11.02 to be received by the Administrative Agent not later than (i) 11:00
A.M. Dallas, Texas time not less than three Business Days in advance of
the Conversion Date or Continuation Date if any
50
Loans are to be converted into or continued as Eurodollar Loans and (ii)
11:00 A.M. Dallas, Texas time not less than one Business Day in advance of
the Conversion Date, if any Loans are to be converted into Base Rate
Loans, specifying (A) the proposed Conversion Date or Continuation Date,
which shall be a Business Day, (B) the aggregate principal amount of Loans
to be converted or continued, (C) the nature of the proposed conversion or
continuation and (D) the duration of the requested Interest Period, if
applicable.
(c) Failure to Elect Interest Period. If upon the expiration
of any Interest Period applicable to Eurodollar Loans, the Borrower has
failed to timely select a new Interest Period, such Loans shall
automatically convert into Base Rate Loans.
(d) Notice to Banks. Upon receipt of a Notice of
Conversion/Continuation, the Administrative Agent will promptly notify
each Bank thereof, or, if no timely notice is provided by the Borrower,
the Administrative Agent will promptly notify each Bank of the details of
any automatic conversion. All conversions and continuations shall be made
pro rata according to the respective outstanding principal amounts of the
Loans with respect to which the notice was given.
(e) No Conversion/Continuation During Event of Default. During
the existence of an Event of Default, the Borrower may not elect to have a
Loan converted into or continued as a Eurodollar Loan.
(f) Limitation on Interest Periods. Notwithstanding any other
provision contained in this Agreement, after giving effect to any
conversion or continuation of any Loans, there shall not be more than five
different Interest Periods in effect in respect of all Loans which are
Eurodollar Loans.
2.05 Reduction and Termination of Commitments.
(a) The Borrower may, upon not less than five Business Days'
prior notice to the Administrative Agent, terminate or permanently reduce
the Aggregate Revolving Commitment, without premium or penalty, by an
aggregate minimum amount of $1,000,000 or any multiple of $500,000 in
excess thereof; provided, however that no such termination or reduction
shall be permitted if after giving effect thereto and to any prepayment of
Revolving Loans made under the Revolving Commitments which are made on the
effective date thereof (x) the then outstanding principal amount of all
Revolving Loans made under the Revolving Commitments plus the amount of
the then outstanding Letter of Credit Obligations would exceed the
Aggregate Revolving Commitment then in effect or (y) the aggregate amount
of all Letter of Credit Obligations would exceed the Letter of Credit
Commitment then in effect; and provided further that once reduced in
accordance with this Section 2.05(a), the Aggregate Revolving Commitment
may not be increased. Any reduction of the Aggregate Revolving Commitment
pursuant to this Section 2.05(a) shall be applied pro rata to each Bank's
Revolving Commitment. All accrued commitment and letter of credit fees to
the effective date of any reduction or termination of the Aggregate
Revolving Commitment shall be paid on the effective date of such reduction
or termination. The Administrative
51
Agent shall promptly notify the affected Banks of any such reduction or
termination of the Aggregate Revolving Commitment.
(b) The Borrower may, upon not less than five Business Days'
prior notice to the Administrative Agent, terminate or permanently reduce
the Incremental Revolving Commitments under an Incremental Facility,
without premium or penalty, by an aggregate minimum amount of $1,000,000
or any multiple of $500,000 in excess thereof; provided, however that no
such termination or reduction shall be permitted if after giving effect
thereto and to any prepayment of the Incremental Revolving Loans made
under such Incremental Facility which are made on the effective date
thereof, the then outstanding principal amount of the Incremental
Revolving Loans made under such Incremental Facility would exceed the
total amount of such Incremental Revolving Commitments then in effect with
respect to such Incremental Facility; and provided further that once
reduced in accordance with this Section 2.05(b), such Incremental
Revolving Commitments may not be increased. Any reduction of Incremental
Revolving Commitments under an Incremental Facility pursuant to this
Section 2.05(b) shall be applied pro rata to each applicable Incremental
Revolving Bank's Incremental Revolving Commitment under such Incremental
Facility. All accrued commitment fees to the effective date of any such
reduction or termination of Incremental Revolving Commitments shall be
paid on the effective date of such reduction or termination. The
Administrative Agent shall promptly notify the affected Incremental Banks
of any such reduction or termination of Incremental Revolving Commitments
under an Incremental Facility.
(c) The Initial Term A Loan Commitments and the Aggregate Term
B Commitment shall automatically terminate effective as of the day after
the Effective Date. The Additional Term A Loan Commitments shall
automatically terminate effective as of the day described in the final
sentence of Section 2.01(a)(i). The Incremental Term Commitments under any
Incremental Facility shall terminate effective as of the day after the
effective date of the Incremental Loan Amendment relating thereto.
(d) The Aggregate Combined Revolving Commitment shall be
automatically and permanently reduced on the last day of each Fiscal
Quarter (or, in the case of the final reduction in Loan Year 6, on the
Stated Revolving Credit Maturity Date), commencing on March 31, 2002 and
ending on the Stated Revolving Credit Maturity Date, based on the annual
percentage reductions for each Loan Year set forth below of the Aggregate
Revolving Commitment as in effect on March 31, 2002, plus the original
amount of each Incremental Facility consisting of Incremental Revolving
Commitments created from time to time, if any, pursuant to this Agreement
prior to the time of the reduction in question. Notwithstanding anything
to the contrary contained in this Agreement, on the Maturity Date the
Aggregate Combined Revolving Commitment shall automatically reduce to
zero.
52
Loan Year Annual Percentage Reduction
--------- ---------------------------
1 00.0%
2 00.0%
3 15.0%
4 20.0%
5 30.0%
6 35.0%
The amount of each reduction of (i) the Aggregate Revolving Commitment as
in effect on March 31, 2002, and (ii) the original amount of each
Incremental Facility consisting of Incremental Revolving Commitments
created from time to time, if any, pursuant to this Agreement prior to the
time of the reduction in question, during any Loan Year, shall be an
amount equal to the applicable annual percentage reduction set forth above
with respect to such Loan Year, divided by the number of quarterly
reductions to be made during such Loan Year (with the last reduction in
Loan Year 6, to be made on the Stated Revolving Credit Maturity Date,
deemed a quarterly reduction for purposes of this Section 2.05(d)). Any
reduction of the Aggregate Combined Revolving Commitment pursuant to this
Section 2.05(d) shall be applied pro rata to each Bank's Revolving
Commitment and/or Incremental Revolving Commitments in accordance with
such Bank's Revolving Facility Percentage (and, in the case of a Bank with
both a Revolving Commitment and one or more Incremental Revolving
Commitments, allocated ratably among such Bank's Revolving Commitment and
Incremental Revolving Commitment(s)). All accrued commitment and letter of
credit fees to the effective date of any such reduction of the Aggregate
Combined Revolving Commitment shall be paid on the effective date of such
reduction.
(e) In addition to any other mandatory commitment reductions
pursuant to this Section 2.05, on each date after the Effective Date upon
which a mandatory prepayment of Revolving Loans pursuant to Section 2.07
is required, the Aggregate Combined Revolving Commitment shall also be
automatically and permanently reduced by the principal amount, if any,
required to be paid on the Revolving Loans pursuant to said Section;
provided that notwithstanding the foregoing, the Aggregate Combined
Revolving Commitment shall not be permanently reduced by the amount of
prepayments made on the Revolving Loans pursuant to Section 2.07(g). Any
reduction of the Aggregate Combined Revolving Commitment pursuant to this
Section 2.05(e) shall be applied to reduce the remaining scheduled
reductions of the Aggregate Combined Revolving Commitment pursuant to
Section 2.05(d) pro rata based on the then remaining amounts of such
remaining scheduled reductions. Any reduction of the Aggregate Combined
Revolving Commitment pursuant to this Section 2.05(e) shall be applied pro
rata to each Bank's Revolving Commitment and/or Incremental Revolving
Commitments in accordance with such Bank's Revolving Facility Percentage
(and, in the case of a Bank with both a Revolving Commitment and one or
more Incremental Revolving Commitments, allocated ratably among such
Bank's Revolving Commitment and
53
Incremental Revolving Commitment(s)). All accrued commitment and letter of
credit fees to the effective date of any such reduction of the Aggregate
Combined Revolving Commitment shall be paid on the effective date of such
reduction or termination. The Administrative Agent shall promptly notify
the affected Banks of any reduction or termination of the Aggregate
Combined Revolving Commitment.
2.06 Voluntary Prepayments.
(a) The Borrower may, prior to 11:00 A.M. Dallas, Texas time,
upon at least three Business Days' written notice by the Borrower to the
Administrative Agent in the case of Eurodollar Loans, and prior to 9:00
A.M. Dallas, Texas time, upon two Business Days' written notice on any
Business Day in the case of Base Rate Loans, prepay Revolving Loans and/or
Term Loans, as the Borrower may elect, in whole or in part, in amounts of
$1,000,000 or an integral multiple of $500,000 in excess thereof.
(b) Any notice of prepayment delivered pursuant to this
Section 2.06 shall specify the date and amount of such prepayment, whether
the prepayment is to be made with respect to Revolving Loans and/or Term
Loans and the Type of Loans to be prepaid. The Administrative Agent will
promptly notify each affected Bank thereof and of such Bank's pro rata
portion of such prepayment. If such notice is given by the Borrower and
not withdrawn, the Borrower shall make such prepayment, and the payment
amount specified in such notice shall be due and payable, on the date
specified therein together with accrued interest to each such date on the
amount prepaid and the amounts, if any, required pursuant to Section 4.04;
provided that interest to be paid in connection with any such prepayment
of Base Rate Loans (other than a prepayment in full) shall instead be paid
on the next occurring Interest Payment Date.
(c) Any prepayment of Term Loans pursuant to this Section 2.06
shall be applied to the remaining scheduled installments of Term Loans to
be made pursuant to Section 2.08(a) pro rata (based on the then remaining
amounts of such remaining installments).
2.07 Mandatory Prepayments.
(a) (i) If on any date the aggregate unpaid principal amount
of outstanding Revolving Loans made under the Revolving Commitments,
plus the outstanding Letter of Credit Obligations (to the extent not
Cash Collateralized pursuant to clause (ii) below or as provided for
in Section 3.07) exceeds the Aggregate Revolving Commitment, then
the Borrower shall immediately prepay the amount of such excess. Any
payments on Revolving Loans made under the Revolving Commitments
pursuant to this Section 2.07(a)(i) shall be applied pro rata among
the Banks with Revolving Commitments.
(ii) If on any date the aggregate amount of all Letter
of Credit Obligations shall exceed the Letter of Credit Commitment,
the Borrower shall Cash Collateralize on such date an amount equal
to the excess of the Letter of Credit Obligations over the Letter of
Credit Commitment.
54
(iii) If on any date the aggregate unpaid principal
amount of outstanding Incremental Revolving Loans made under an
Incremental Facility exceeds the aggregate amount of the Incremental
Revolving Commitments relating to such Incremental Facility, then
the Borrower shall immediately prepay the amount of such excess. Any
payments on Incremental Revolving Loans made under an Incremental
Facility pursuant to this Section 2.07(a)(iii) shall be applied pro
rata among the applicable Incremental Banks having Incremental
Revolving Commitments with respect to such Incremental Facility.
(b) (i) If on any date any Nexstar Entity shall make any
Disposition, an amount equal to 100% of the Net Cash Proceeds from
such Disposition shall be applied on such date to prepay outstanding
principal of the Term Loans and the Revolving Loans on a pro rata
basis among such Loans, provided that with respect to no more than
$1,000,000 in the aggregate of the Net Cash Proceeds received in
connection with any Disposition, the Net Cash Proceeds therefrom
shall not be required to be so applied if no Default or Event of
Default then exists and, provided further, that this requirement for
mandatory prepayment will be further reduced to the extent that the
Borrower elects, as hereinafter provided, to attempt to cause some
or all of such Net Cash Proceeds to be reinvested in Reinvestment
Assets. The Borrower may elect to attempt to cause some or all of
the Net Cash Proceeds from a Disposition to be reinvested in
Reinvestment Assets during the Reinvestment Period (a "Reinvestment
Election") if (x) no Default or Event of Default exists on the date
of such Reinvestment Election and (y) if such Reinvestment Election
is made by the delivery of a Reinvestment Notice to the
Administrative Agent on or before the date of the consummation of
such Disposition, with such Reinvestment Election being effective
with respect to the Net Cash Proceeds of such Disposition equal to
the Anticipated Reinvestment Amount specified in such Reinvestment
Notice.
(ii) Nothing in this Section 2.07(b) shall be deemed to
permit any Disposition not otherwise permitted under this Agreement.
(iii) On the Reinvestment Prepayment Date with respect
to a Reinvestment Election, an amount equal to the Reinvestment
Prepayment Amount, if any, for such Reinvestment Election shall be
applied to prepay outstanding principal of the Term Loans and the
Revolving Loans on a pro rata basis among such Loans.
(c) Within 90 days after any Nexstar Entity receives any
proceeds from any Recovery Event, an amount equal to 100% of the proceeds
of such Recovery Event (net of reasonable costs including, without
limitation, legal costs and expenses and taxes incurred in connection with
such Recovery Event and the collection of the proceeds thereof) shall be
applied to prepay outstanding principal of the Term Loans and the
Revolving Loans on a pro rata basis among such Loans; provided that so
long as no Default or Event of Default then exists, this requirement for
mandatory prepayment shall be reduced by (i) any amounts actually applied
on or before such 90th day or (ii)
55
committed in writing on or before such 90th day to be applied to the
replacement or restoration of the assets subject to such Recovery Events
within 365 days after such Recovery Event and; provided further that with
respect to no more than $1,000,000 in the aggregate of the proceeds
received from any Recovery Event, the proceeds therefrom shall not be
required to be so applied if no Default or Event of Default then exists.
(d) On each date which is 90 days after the last day of each
Fiscal Year commencing with the Fiscal Year ending on December 31, 2001,
an amount equal to 50% of the Excess Cash Flow of the Borrower (determined
without treating the Bastet/Mission Entities as Subsidiaries of the
Borrower) for such Fiscal Year shall be applied to prepay outstanding
principal of the Term Loans and the Revolving Loans on a pro rata basis
among such Loans; provided that if the Consolidated Total Leverage Ratio
(determined as if the Bastet/Mission Entities were Subsidiaries of the
Borrower) on the last day of the last two consecutive Fiscal Quarters
during such Fiscal Year is (x) less than 5.00:1.00 but greater than or
equal to 4.00:1.00, then only an amount equal to 30% of the Excess Cash
Flow of the Borrower (determined without treating the Bastet/Mission
Entities as Subsidiaries of the Borrower) for such Fiscal Year shall be
required to be so applied, or (y) less than 4.00:1.00, then no payment in
respect of such Fiscal Year shall be required pursuant to this Section
2.07(d) and, provided further that with respect to each Fiscal Year, the
amount which would otherwise be payable pursuant to this Section 2.07(d)
may be reduced by $1,000,000 so long as no Default or Event of Default
exists on such 90th day.
(e) At any time that the Consolidated Senior Leverage Ratio is
equal to or greater than 3.00 to 1.00 prior to the sale or issuance of any
Capital Stock of, or cash capital contribution to, any Nexstar Entity,
then on the Business Day after the date of the receipt by any Nexstar
Entity of Net Issuance Proceeds from any such sale or issuance of Capital
Stock (including Indebtedness described in Section 8.05(m)) or cash
capital contribution (other than (A) proceeds from the sale or issuance of
Capital Stock of, or cash contributions to, the Ultimate Parent from ▇▇▇▇
▇.▇. II, ▇▇▇▇ ▇.▇. III or Sook (or other Persons exercising preemptive
rights in connection with an issuance of Capital Stock to one or more of
them), (B) Net Issuance Proceeds, not to exceed an aggregate of $500,000,
from Capital Stock (other than Disqualified Stock) issuances by the
Ultimate Parent to employees of the Ultimate Parent or any Nexstar Entity,
except to Sook, (C) so long as no Default or Event of Default exists both
before and after the issuance thereof, Net Issuance Proceeds of Capital
Stock (other than Disqualified Stock) issuances of the Ultimate Parent or
Net Issuance Proceeds of Permitted Parent Preferred Equity, Permitted
Permanent Holdings Preferred Equity or Permitted Borrower Preferred Equity
issuances, in each case which are used concurrently upon the receipt
thereof to repurchase or redeem the Permitted Holdings Preferred Equity,
(D) payments made pursuant to an ABRY Capital Contribution Agreement and
(E) subsequent cash capital contributions and/or intercompany loans made
by any Nexstar Entity to a Subsidiary (or to the Holding Company, in the
case of those Nexstar Entities that collectively own all of the issued and
outstanding Capital Stock of the Holding Company other than Permitted
Holdings Preferred Equity or Permitted Permanent Holdings Preferred
Equity) with any of the proceeds described in the foregoing clauses (A)
through (D), upon such Nexstar Entity's
56
receipt, directly or indirectly through other Nexstar Entities, of such
proceeds), the Borrower shall prepay outstanding principal of the Term
Loans and the Revolving Loans, on a pro rata basis among such Loans, in an
amount equal to the lesser of (x) 50% of such Net Issuance Proceeds and
(y) the amount of Net Issuance Proceeds required to repay outstanding
principal of the Term Loans and Revolving Loans so that the Consolidated
Senior Leverage Ratio determined on a Pro Forma Basis after giving effect
to any such equity issuance or sale or capital contribution and any such
prepayment, shall not be greater than 3.00 to 1.00.
(f) If on any date any Nexstar Entity shall incur or issue any
Indebtedness described in Section 8.05(k) or Section 8.05(l), then on each
such date of incurrence or issuance an amount equal to the amount of the
Net Debt Proceeds received with respect to such Indebtedness shall be
applied to prepay outstanding principal of the Term Loans and the
Revolving Loans, on a pro rata basis among such Loans; provided that, so
long as no Default or Event of Default exists both before and after giving
effect thereto, all or a portion of the Net Debt Proceeds received with
respect to Permitted Parent Preferred Equity, Permitted Holdings Unsecured
Indebtedness, Permitted Permanent Holdings Preferred Equity or Permitted
Borrower Preferred Equity may be used to repurchase or redeem the
Permitted Holdings Preferred Equity on the date of any Nexstar Entity's
receipt of such Net Debt Proceeds, and provided further that the amount of
the prepayments required to be made under this Section 2.07(f) shall be
reduced to the extent (but only to the extent) Net Debt Proceeds are so
used to repurchase or redeem the Permitted Holdings Preferred Equity.
(g) If on any date the Borrower incurs or issues Permitted
Borrower Subordinated Indebtedness, then on each such date of incurrence
an amount equal to the amount of the Net Debt Proceeds received with
respect to such Permitted Borrower Subordinated Indebtedness (less any
amounts used by the Borrower as permitted in Section 8.10(f)(ii)) shall be
applied to prepay outstanding principal amount of the Revolving Loans. In
addition, notwithstanding anything to the contrary contained in this
Section 2.07, if any Default or Event of Default exists on any date when
the New Holding Company, Nexstar Finance Holdings and/or the Borrower
incurs any Indebtedness permitted under Section 8.05(m), then on each such
date of incurrence an amount equal to the amount of the Net Debt Proceeds
therefrom (without duplication) shall be applied to prepay outstanding
principal of the Revolving Loans.
(h) If on any date a payment is made pursuant to an ABRY
Capital Contribution Agreement, then on each such date that such a payment
is made an amount equal to the amount of such payment shall be applied to
prepay outstanding principal of the Term Loans.
(i) The Borrower shall pay, together with each prepayment
under this Section 2.07, accrued interest on the amount prepaid and any
amounts required pursuant to Section 4.04; provided that interest to be
paid in connection with any such prepayment of Base Rate Loans (other than
a prepayment in full) shall instead be paid on the next occurring Interest
Payment Date.
57
(j) Any prepayments pursuant to this Section 2.07 made on a
day other than an Interest Payment Date for any Loan shall be applied
first to any Base Rate Loans then outstanding and then to Eurodollar Loans
with the shortest Interest Periods remaining.
(k) Any prepayment of Term Loans pursuant to this Section 2.07
shall be applied to the remaining scheduled installments of Term Loans to
be made pursuant to Section 2.08(a), pro rata (based on the then remaining
amounts of such remaining installments).
(l) Notwithstanding anything to the contrary contained in this
Section 2.07, any Term B Bank may elect, by delivering written notice to
the Administrative Agent prior to the receipt thereof, not to receive its
pro rata portion of any mandatory prepayment that would otherwise be
payable to such Term B Bank pursuant to this Section 2.07, whereupon such
portion shall be reallocated to prepay the outstanding principal amount of
all Term Loans and Revolving Loans other than the Term B Loans held by
such Term B Bank and any other Term B Bank that has elected not to receive
its pro rata portion of such mandatory prepayment, on a pro rata basis
among such Loans.
2.08 Maturity and Amortization of Loans.
(a) The Term Loans.
(i) The Term A Loans shall mature, and the outstanding
principal amount thereof shall be due and payable in full (together with
all accrued and unpaid interest thereon), on the Maturity Date. In
addition, on the last day of each Fiscal Quarter (or, in the case of the
final principal installment to be repaid in Loan Year 6, on the Stated
Term A Maturity Date), commencing on March 31, 2002, the Borrower shall
repay, and there shall become due and payable, a principal installment on
the Term A Loans in an amount based on the following annual percentage
reductions for each Loan Year set forth below of the Aggregate Outstanding
Term A Loan Balance on March 31, 2002, plus the original amount of each
Term A Loan made under an Incremental Facility created from time to time,
if any, pursuant to this Agreement prior to the time of the principal
payment in question:
Loan Year Annual Percentage Reduction
--------- ---------------------------
1 00.0%
2 00.0%
3 15.0%
4 20.0%
5 30.0%
6 35.0%
58
The aggregate principal amount of each installment paid during any Loan
Year on the Term A Loans shall be an amount equal to the applicable annual
percentage reduction set forth above with respect to such Loan Year,
divided by the number of quarterly installments to be made during such
Loan Year (with the last installment in Loan Year 6, to be made on the
Stated Term A Maturity Date, deemed a quarterly installment for purposes
of this Section 2.08(a)(i)).
(ii) The Term B Loans shall mature, and the outstanding
principal amount thereof shall be due and payable in full (together with
all accrued and unpaid interest thereon), on the Maturity Date. In
addition, on the last day of each Fiscal Quarter (or, in the case of the
final principal installment to be repaid in Loan Year 7, on the Stated
Term B Maturity Date), commencing on March 31, 2002, the Borrower shall
repay, and there shall become due and payable, a principal installment on
the Term B Loans in an amount based on the following annual percentage
reductions for each Loan Year set forth below of the Aggregate Outstanding
Term B Loan Balance on March 31, 2002:
Loan Year Annual Percentage Reduction
--------- ---------------------------
1 00.0%
2 01.0%
3 01.0%
4 01.0%
5 01.0%
6 01.0%
7 95.0%
The aggregate principal amount of each installment paid during any Loan
Year on the Term B Loans shall be an amount equal to the applicable annual
percentage reduction set forth above with respect to such Loan Year,
divided by the number of quarterly installments to be made during such
Loan Year (with the last installment in Loan Year 7, to be made on the
Stated Term B Maturity Date, deemed a quarterly installment for purposes
of this Section 2.08(a)(ii)).
(b) Application of Term Loan Payments.
(i) Subject to Section 2.07(l), any payment made on Term A
Loans pursuant to this Section 2.08, Section 2.06 or Section 2.07 shall be
applied pro rata to each Bank's Term A Loans in accordance with such
Bank's Term A Facility Percentage (and, in the case of a Bank with both
Incremental Term Loans and Term Loans that are not Incremental Term Loans,
allocated ratably among such Bank's Incremental Term Loans and Term Loans
that are not Incremental Term Loans).
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(ii) Any payment made on Term B Loans pursuant to this Section
2.08, Section 2.06 or Section 2.07 shall be applied pro rata to each
Bank's Term B Loans in accordance with such Bank's Term B Facility
Percentage.
(c) The Revolving Loans. Each Revolving Loan shall mature, and
the outstanding principal amount thereof shall be due and payable in full
(together with all accrued and unpaid interest thereon) on the Maturity
Date.
(d) Application of Revolving Loan Payments. Any payment made
on Revolving Loans pursuant to this Section 2.08, Section 2.06, or
Sections 2.07(b), (c), (d), (e), (f) or (g) shall be applied pro rata to
each Bank's Revolving Loans in accordance with such Bank's Revolving
Facility Percentage (and, in the case of a Bank with both Incremental
Revolving Loans and Revolving Loans that are not Incremental Revolving
Loans, allocated ratably among such Bank's Incremental Revolving Loans and
Revolving Loans that are not Incremental Revolving Loans).
2.09 Fees. In addition to fees described in Section 3.08:
(a) Commitment Fees.
(i) The Borrower shall pay to the Administrative Agent
for the ratable account of each Bank with a Revolving Commitment, on
the last Business Day of each March, June, September and December
and on the earlier of the Maturity Date and the date on which the
Aggregate Revolving Commitment shall have been terminated in full,
an aggregate commitment fee (the "Revolving Commitment Fee") on the
daily average amount of the Aggregate Available Revolving Commitment
equal to 0.500% per annum for any period that the Consolidated Total
Leverage Ratio as of the most recent Leverage Ratio Determination
Date for such period is greater than or equal to 5.50 to 1.00 and
0.375% per annum for any period that the Consolidated Total Leverage
Ratio as of the most recent Leverage Ratio Determination Date for
such period is less than 5.50 to 1.00. The Revolving Commitment Fee
shall begin to accrue on and after the Effective Date and shall
cease to accrue on the earlier of the Maturity Date and the date on
which the Aggregate Revolving Commitments shall have been terminated
in full.
(ii) The Borrower shall pay to the Administrative Agent
for the ratable account of each Bank with an Additional Term A Loan
Commitment, on the last Business Day of each March, June, September
and December and on the earlier of the Maturity Date and the date on
which the Additional Term A Commitments shall have been terminated
in full, an aggregate commitment fee (the "Term A Commitment Fee")
on the daily average amount of the aggregate Additional Term A Loan
Commitments equal to 0.500% per annum. The Term A Commitment Fee
shall begin to accrue on and after the Effective Date and shall
cease to accrue on the earlier of the Maturity Date and the date on
which the Additional Term A Loan Commitments shall have been
terminated in full.
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(iii) The Borrower shall pay to the Administrative Agent
for the account of each Bank with an Incremental Revolving
Commitment, on the last Business Day of each March, June, September
and December and on the earlier of the Maturity Date and the date on
which each Incremental Revolving Commitment of a Bank shall have
been terminated in full, the Incremental Commitment Fee for each
Incremental Revolving Commitment of such Bank on the daily average
amount of each of such Bank's aggregate unutilized Incremental
Revolving Commitments. Each Incremental Commitment Fee shall begin
to accrue on and after the date when the related Incremental
Revolving Commitment shall have become effective hereunder and shall
cease to accrue on the earlier of the Maturity Date and the date on
which such Incremental Revolving Commitment shall have been
terminated in full.
(b) Other Fees. The Borrower shall pay such other fees as have
been, or may be, agreed upon between the Borrower and the Administrative
Agent from time to time.
(c) Fees under Existing Credit Agreement. Notwithstanding
anything to the contrary in this Agreement, all fees which, as of the
Effective Date, remain outstanding under the Existing Credit Agreement
will be due and payable on the first payment date scheduled for payment of
such fees under this Agreement occurring after the Effective Date.
2.10 Computation of Fees and Interest.
(a) All computations of commitment fees, and of interest
payable in respect of Base Rate Loans based upon the Reference Rate, shall
be made on the basis of a year of 365 or 366 days, as the case may be, and
actual days elapsed. All other computations of fees and interest under
this Agreement shall be made on the basis of a 360-day year and actual
days elapsed. Interest and fees shall accrue during each period during
which interest or such fees are computed from the first day thereof to the
last day thereof.
(b) The Administrative Agent will promptly notify the Borrower
and the Banks of each determination of the Eurodollar Rate; provided,
however, that any failure to do so shall not relieve the Borrower of any
liability hereunder. Any change in the interest rate on a Loan resulting
from a change in the Applicable Margin or the Incremental Margin relating
thereto shall become effective as of the opening of business on the
relevant date of such change. The Administrative Agent will promptly
notify the Borrower and the Banks of the effective date and the amount of
each such change; provided, however, that any failure to do so shall not
relieve the Borrower of any liability hereunder.
(c) Each determination of an interest rate by the
Administrative Agent shall be conclusive and binding on the Borrower and
the Banks in the absence of manifest error.
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2.11 Interest.
(a) Except as provided in Section 2.11(d) below, each Term
Loan and each Revolving Loan shall bear interest on the outstanding
principal amount thereof from the Borrowing Date applicable thereto until
it becomes due and payable at a rate per annum equal to the Base Rate, or
the Eurodollar Rate, as selected by the Borrower from time to time
pursuant to Sections 2.03 and 2.04, plus the Applicable Margin or
Incremental Margin, as the case may be, with respect to the Base Rate and
the Eurodollar Rate then in effect.
(b) Any change in the Applicable Margin or the applicable
Incremental Margin due to a change in the Consolidated Total Leverage
Ratio shall be effective on the applicable Adjustment Date and shall apply
to all Loans that are outstanding at any time during the period commencing
on such Adjustment Date and ending on the date immediately preceding the
next Adjustment Date.
(c) Interest on each Loan shall be paid in arrears on each
Interest Payment Date. Interest shall also be paid on the date of any
prepayment of any portion of any Loan (excluding Base Rate Loans, which
such interest shall be paid on the next occurring Interest Payment Date)
for the portion of such Loans so prepaid. During the existence of any
Event of Default, interest shall be paid on demand.
(d) If any amount of principal of or interest on any Loan, or
any other regularly scheduled amount payable hereunder or under any other
Loan Document, is not paid in full when due and payable (whether at stated
maturity, by acceleration, demand or otherwise), after giving effect to
any applicable grace periods, the Borrower shall pay interest (after as
well as before judgment) on the principal amount of all outstanding Loans
at the applicable rate per annum provided in this Section 2.11 plus 2%,
and on all other amounts (including interest) at a rate per annum equal to
the Base Rate plus 2%.
(e) Anything herein to the contrary notwithstanding, the
obligations of the Borrower hereunder shall be subject to the limitation
that payments of interest shall not be required for any period for which
interest is computed hereunder, to the extent (but only to the extent)
that contracting for or receiving such payment by the respective Bank
would be contrary to the provisions of any law applicable to such Bank
limiting the highest rate of interest which may be lawfully contracted
for, charged or received by such Bank, and in such event the Borrower
shall pay such Bank interest at the highest rate permitted by applicable
law.
2.12 Payments by the Borrower.
(a) All payments (including prepayments) to be made by the
Borrower on account of principal, interest, drawings under Letters of
Credit, fees and other amounts required hereunder shall be made without
set-off or counterclaim and shall, except as otherwise expressly provided
with respect to drawings under Letters of Credit and elsewhere herein, be
made to the Administrative Agent for the ratable account of the relevant
Banks at the Administrative Agent's Payment Office, and shall be made in
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Dollars and in immediately available funds, no later than 12:00 noon
(Dallas, Texas time) on the date specified herein. The Administrative
Agent will promptly distribute to each relevant Bank its share, if any, of
such principal, interest, fees or other amounts, in like funds as
received. Any payment which is received by the Administrative Agent later
than 12:00 noon (Dallas, Texas time) shall be deemed to have been received
on the immediately succeeding Business Day and any applicable interest or
fee shall continue to accrue until such payment is deemed to have been
received.
(b) Whenever any payment hereunder shall be stated to be due
on a day other than a Business Day, such payment shall be made on the next
succeeding Business Day, and such extension of time shall in such case be
included in the computation of interest or fees, as the case may be,
subject to the provisions set forth in the definition of the term of
"Interest Period" herein.
(c) Unless the Administrative Agent shall have received notice
from the Borrower, prior to the date on which any payment is due to the
Banks hereunder, that the Borrower will not make such payment in full, the
Administrative Agent may assume that the Borrower has made such payment in
full to the Administrative Agent as required hereunder on such date in
immediately available funds and the Administrative Agent may (but shall
not be so required), in reliance upon such assumption, cause to be
distributed to each relevant Bank on such due date an amount equal to the
amount then due such Bank. If and to the extent the Borrower shall not
have made such payment in full to the Administrative Agent, each relevant
Bank shall repay to the Administrative Agent on demand such amount
distributed to such Bank, together with interest thereon for each day from
the date such amount is distributed to such Bank until the date such Bank
repays such amount to the Administrative Agent, at the Federal Funds Rate
as in effect for each such day.
2.13 Payments by the Banks to the Administrative Agent.
(a) Unless the Administrative Agent shall have received notice
from a Bank on the Effective Date or, with respect to each Borrowing after
the Effective Date, at least one Business Day prior to the date of any
proposed Borrowing, that such Bank will not make available to the
Administrative Agent for the account of the Borrower the amount of such
Bank's pro rata share of the applicable Commitments to which such
Borrowing relates, the Administrative Agent may assume that each Bank has
made such amount available to the Administrative Agent as required
hereunder on the Borrowing Date and the Administrative Agent may (but
shall not be so required), in reliance upon such assumption, make
available to the Borrower on such date a corresponding amount. If and to
the extent any Bank shall not have made its full amount available to the
Administrative Agent in immediately available funds and the Administrative
Agent in such circumstances has made available to the Borrower such
amount, such Bank shall immediately make such amount available to the
Administrative Agent, together with interest at the Federal Funds Rate
from the date of such Borrowing to the date on which the Administrative
Agent recovers such amount from such Bank. A notice of the Administrative
Agent submitted to any Bank with respect to amounts owing under this
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Section 2.13(a) shall be conclusive, absent manifest error. If such amount
is so made available by the relevant Bank, such payment to the
Administrative Agent shall constitute such Bank's Loan on the Borrowing
Date for all purposes of this Agreement. If such amount is not made
available to the Administrative Agent on the next Business Day following
such Borrowing Date, the Administrative Agent shall notify the Borrower of
such failure to fund and, upon demand by the Administrative Agent, the
Borrower shall pay such amount to the Administrative Agent for the
Administrative Agent's account, together with interest thereon for each
day elapsed since such Borrowing Date, at a rate per annum equal to the
interest rate applicable at the time to the Loans comprising such
Borrowing.
(b) The failure of any Bank to make any Loan committed to by
such Bank on any Borrowing Date shall not relieve any other Bank of any
obligation hereunder to make Loans committed to by such other Bank on such
Borrowing Date, but no Bank shall be responsible for the failure of any
other Bank to make Loans committed to be made by such other Bank on any
Borrowing Date.
2.14 Sharing of Payments, etc.
(a) If, other than as expressly provided elsewhere herein, any
Bank shall obtain on account of Obligations relating to Revolving Loans
and/or Term Loans, as the case may be, owing to it any payment (whether
voluntary, involuntary, through the exercise of any right of set-off, or
otherwise) in excess of its Revolving Facility Percentage and/or Term A
Facility Percentage and/or Term B Facility Percentage, as applicable, such
Bank shall forthwith (i) notify the Administrative Agent of such fact, and
(ii) purchase from the other relevant Banks such participations in such
Obligations relating to Revolving Loans and/or Term Loans, as applicable,
made by them as shall be necessary to cause such purchasing Bank to share
the excess payment ratably with each such other Banks; provided, however,
that if all or any portion of such excess payment is thereafter recovered
from the purchasing Bank, such purchase shall to that extent be rescinded
and each other relevant Bank shall repay to the purchasing Bank the
purchase price paid therefor, together with an amount equal to such paying
Bank's commitment percentage (according to the proportion of (x) the
amount of such paying Bank's required repayment to (y) the total amount so
recovered from the purchasing Bank) of any interest or other amount paid
or payable by the purchasing Bank in respect of the total amount so
recovered. The Administrative Agent will keep records (which shall be
conclusive and binding in the absence of manifest error) of participations
purchased pursuant to this Section 2.14 and will in each case notify the
relevant Banks following any such purchases.
(b) The Borrower agrees that any Bank so purchasing a
participation from another Bank pursuant to this Section 2.14 may, to the
fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off, but subject to Section 11.09) with
respect to such participation as fully as if such Bank were the direct
creditor of the Borrower in the amount of such participation.
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2.15 Security Documents and Guaranty Agreements.
(a) All Obligations under this Agreement and all other Loan
Documents shall be secured in accordance with the Security Documents.
(b) All Obligations under this Agreement and all other Loan
Documents shall be unconditionally guaranteed by the Parent Guarantors
pursuant to the Parent Guaranty Agreements and by the Subsidiary
Guarantors pursuant to the Subsidiary Guaranty Agreement.
2.16 Procedure for Incremental Loan Requests.
(a) When the Borrower wishes to request one or more Banks or
other financial institutions approved by the Administrative Agent (in each
case, such approval not to be unreasonably withheld) to provide proposals
for the providing of an Incremental Facility consisting of Incremental
Revolving Loans or Incremental Term Loans to the Borrower, the Borrower
may solicit requests from any such Banks or other financial institutions
for the providing of (i) a commitment for an Incremental Revolving Loan
(each, an "Incremental Revolving Commitment") or an Incremental Term Loan
(each, an "Incremental Term Commitment"), as the case may be, and (ii) as
applicable to such Incremental Revolving Commitments or Incremental Term
Commitments, (x) the upfront fee to be charged by such Banks or other
financial institutions in connection with the providing of such
Incremental Revolving Commitments or Incremental Term Commitments (any
such upfront fee, each an "Incremental Upfront Fee"), (y) the commitment
fee to be charged by such Banks or other financial institutions with
respect to such Incremental Revolving Commitments or Incremental Term
Commitments (any such commitment fee, each an "Incremental Commitment
Fee") and (z) the margins to be added by such Banks or other financial
institutions to the Base Rate and the Eurodollar Rate for Loans made under
such Incremental Revolving Commitment or Incremental Term Commitments (any
such margin, an "Incremental Margin"). Upon the selection by the Borrower
of Banks or other financial institutions, the Borrower shall promptly
notify the Administrative Agent of the Banks or other financial
institutions selected and the amount of the Incremental Revolving
Commitments and/or Incremental Term Commitments, the Incremental Upfront
Fee, Incremental Commitment Fee and the Incremental Margin as agreed upon
by the Borrower and such Banks or other financial institutions; provided,
that if such Incremental Margins are greater than the margins set forth
for Revolving Loans (in the case of Incremental Revolving Loans) or Term A
Loans (in the case of Incremental Term Loans) in the definition of
"Applicable Margin" contained in Section 1.01, or if such Incremental
Commitment Fees are greater than the Revolving Commitment Fee set forth in
Section 2.09(a), the Incremental Loan Amendment pursuant to which such
proposed Incremental Commitments are to be made available shall not become
effective unless the prior written consent of the Majority Banks has been
obtained.
(b) Notwithstanding anything to the contrary contained herein,
it is understood and agreed that (i) there shall be no more than (x) five
different Incremental
65
Margins in effect in respect of all Incremental Loans and (y) five
different Interest Periods in effect in respect of all Loans (including
Incremental Loans) which are Eurodollar Loans; and (ii) if no Incremental
Margin is agreed upon, with respect to any given Incremental Facility,
then the Incremental Margin shall be deemed to be (x) the Applicable
Margin for Revolving Loans (other than Incremental Revolving Loans) as in
effect from time to time if the commitment is an Incremental Revolving
Commitment or (y) the Applicable Margin for Term A Loans (other than
Incremental Term Loans) as in effect from time to time if the commitment
is an Incremental Term Commitment.
(c) From time to time, the Borrower and the Banks shall
furnish such information to the Administrative Agent as the Administrative
Agent may request relating to the providing of an Incremental Loan,
including the amounts, interest rates, and dates of Borrowings thereof,
for purposes of the allocation of amounts received from the Borrower for
payment on all amounts owing hereunder.
ARTICLE III.
LETTERS OF CREDIT
3.01 Letter of Credit Subfacility.
(a) On the terms and conditions set forth herein (i) the
Issuing Bank agrees, (A) from time to time, on any Business Day during the
period from the Effective Date to the date which is 30 days prior to the
Maturity Date to issue Letters of Credit for the account of the Borrower
and its Subsidiaries, and to amend or renew Letters of Credit previously
issued by it, in accordance with Sections 3.02(b) and 3.02(d), and (B) to
honor drafts under the Letters of Credit; and (ii) the Banks with
Revolving Commitments severally agree to participate in such Letters of
Credit; provided however that the Issuing Bank shall not issue any Letter
of Credit if as of the date of, and after giving effect to, the issuance
of such Letter of Credit, (x) the aggregate amount of all Letter of Credit
Obligations plus the aggregate principal amount of all Revolving Loans
made under the Revolving Commitments shall exceed the Aggregate Revolving
Commitment or (y) the Letter of Credit Obligations shall exceed the Letter
of Credit Commitment.
(b) The Issuing Bank shall be under no obligation to issue any
Letter of Credit if:
(i) any order, judgment or decree of any Governmental
Authority shall by its terms purport to enjoin or restrain the
Issuing Bank from issuing such Letter of Credit, or any Requirement
of Law applicable to the Issuing Bank or any request or directive
(whether or not having the force of law) from any Governmental
Authority with jurisdiction over the Issuing Bank shall prohibit, or
request that the Issuing Bank refrain from, the issuance of letters
of credit generally or such Letter of Credit in particular or shall
impose upon the Issuing Bank with respect to such Letter of Credit
any restriction, reserve or capital requirement (for which the
Issuing Bank is not otherwise compensated
66
hereunder) not in effect on the Effective Date or shall impose upon
the Issuing Bank any unreimbursed loss, cost or expense which was
not applicable on the Effective Date and which the Issuing Bank in
good ▇▇▇▇▇ ▇▇▇▇▇ material to it;
(ii) the Issuing Bank has received written notice from
any Bank, the Administrative Agent or the Borrower on or prior to
the Business Day prior to the requested date of issuance of such
Letter of Credit, that one or more of the applicable conditions
contained in Article V is not then satisfied;
(iii) the expiry date of any requested Letter of Credit
(x) is more than one year after the date of issuance, unless the
Majority Banks and the Issuing Bank have approved such expiry date
in writing or (y) is later than the Maturity Date;
(iv) any requested Letter of Credit is not in form and
substance acceptable to the Issuing Bank, or the issuance of a
Letter of Credit shall violate any applicable policies of the
Issuing Bank;
(v) any standby Letter of Credit is for the purpose of
supporting the issuance of any letter of credit by any other Person;
or
(vi) such Letter of Credit is in a face amount less than
$20,000 or to be denominated in a currency other than Dollars.
3.02 Issuance, Amendment and Renewal of Letters of Credit.
(a) Each Letter of Credit shall be issued upon (x) the
irrevocable written request of the Borrower received by the Issuing Bank
(with a copy sent by the Borrower to the Administrative Agent) at least
four Business Days (or such shorter time as the Issuing Bank may agree in
a particular instance in its sole discretion) prior to the proposed date
of issuance and (y) approval by the Administrative Agent of such request.
Each request by the Borrower for issuance of a Letter of Credit shall be
by facsimile, confirmed promptly in an original writing, in the form of a
Letter of Credit Application, and shall specify in form and detail
satisfactory to the Issuing Bank: (i) the proposed date of issuance of the
Letter of Credit (which shall be a Business Day); (ii) the face amount of
the Letter of Credit; (iii) the expiry date of the Letter of Credit; (iv)
the name and address of the beneficiary thereof; (v) the documents to be
presented by the beneficiary of the Letter of Credit in case of any
drawing thereunder; (vi) the full text of any certificate to be presented
by the beneficiary in case of any drawing thereunder; and (vii) such other
matters as the Issuing Bank may reasonably require.
(b) From time to time while a Letter of Credit is outstanding
and prior to the Maturity Date, the Issuing Bank will, upon the written
request of the Borrower received by the Issuing Bank (with a copy sent by
the Borrower to the Administrative Agent) at least five days (or such
shorter time as the Issuing Bank may agree in a particular instance in its
sole discretion) prior to the proposed date of amendment, upon approval by
the Administrative Agent of such request amend any Letter of Credit issued
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by it. Each such request for amendment of a Letter of Credit shall be made
by facsimile, confirmed promptly in an original writing, made in the form
of a Letter of Credit Amendment Application and shall specify in form and
detail satisfactory to the Issuing Bank: (i) the Letter of Credit to be
amended; (ii) the proposed date of amendment of the Letter of Credit
(which shall be a Business Day); (iii) the nature of the proposed
amendment; and (iv) such other matters as the Issuing Bank may reasonably
require. The Issuing Bank shall be under no obligation to amend any Letter
of Credit if: (A) the Issuing Bank would have no obligation at such time
to issue such Letter of Credit in its amended form under the terms of this
Agreement; or (B) the beneficiary of any such Letter of Credit does not
accept the proposed amendment to the Letter of Credit.
(c) The Administrative Agent will promptly notify the Banks
with Revolving Commitments of the receipt by it of any Letter of Credit
Application or Letter of Credit Amendment Application.
(d) The Issuing Bank and the Banks agree that, while a Letter
of Credit is outstanding and prior to the Maturity Date, at the option of
the Borrower and upon the written request of the Borrower received by the
Issuing Bank (with a copy sent by the Borrower to the Administrative
Agent) at least five days (or such shorter time as the Issuing Bank may
agree in a particular instance in its sole discretion) prior to the
proposed date of notification of renewal, the Issuing Bank shall be
entitled to authorize the automatic renewal of any Letter of Credit issued
by it. Each such request for renewal of a Letter of Credit shall be made
by facsimile, confirmed promptly in an original writing, in the form of a
Letter of Credit Amendment Application, and shall specify in form and
detail satisfactory to the Issuing Bank: (i) the Letter of Credit to be
renewed; (ii) the proposed date of notification of renewal of the Letter
of Credit (which shall be a Business Day); (iii) the revised expiry date
of the Letter of Credit; and (iv) such other matters as the Issuing Bank
may reasonably require. The Issuing Bank shall be under no obligation to
renew any Letter of Credit if the Issuing Bank would have no obligation at
such time to issue or amend such Letter of Credit in its renewed form
under the terms of this Agreement. If any outstanding Letter of Credit
shall provide that it shall be automatically renewed unless the
beneficiary thereof receives notice from the Issuing Bank that such Letter
of Credit shall not be renewed, and if at the time of renewal the Issuing
Bank would be entitled to authorize the automatic renewal of such Letter
of Credit in accordance with this Section 3.02(d) upon the request of the
Borrower, the Issuing Bank shall not have received any Letter of Credit
Amendment Application from the Borrower with respect to such renewal or
other written direction by the Borrower with respect thereto, the Issuing
Bank shall nonetheless be permitted to allow such Letter of Credit to be
renewed, and the Borrower and the Banks hereby authorize such renewal,
and, accordingly, the Issuing Bank shall be deemed to have received a
Letter of Credit Amendment Application from the Borrower requesting such
renewal.
(e) This Agreement shall control in the event of any conflict
with any Letter of Credit Related Document (other than any Letter of
Credit, the provisions of which shall control in any event).
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(f) The Issuing Bank will also deliver to the Administrative
Agent, concurrently or promptly following its delivery of a Letter of
Credit, or amendment to or renewal of a Letter of Credit, to an advising
bank or a beneficiary, a true and complete copy of each such Letter of
Credit or amendment to or renewal of a Letter of Credit.
3.03 Participations, Drawings and Reimbursements.
(a) Immediately upon the issuance of each Letter of Credit,
each Bank with a Revolving Commitment shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the Issuing Bank
a participation in such Letter of Credit and each drawing thereunder in an
amount equal to the product of (i) the Revolving Commitment Percentage of
such Bank multiplied by (ii) the maximum amount available to be drawn
under such Letter of Credit and the amount of such drawing, respectively.
(b) In the event of any request for a drawing under a Letter
of Credit by the beneficiary or transferee thereof, the Issuing Bank will
promptly notify the Borrower. The Borrower shall reimburse the Issuing
Bank on the same date that any amount is paid by the Issuing Bank under
any Letter of Credit (each such date, a "Disbursement Date"), in an amount
equal to the amount so paid by the Issuing Bank, provided that if such
drawing occurs after 11:00 A.M. (Dallas, Texas time) the Disbursement Date
shall be deemed to be the Business Day following the date of such drawing.
In the event the Borrower shall fail to reimburse the Issuing Bank for the
full amount of any drawing under any Letter of Credit by 11:00 A.M.
(Dallas, Texas time) on the Disbursement Date, the Issuing Bank will
promptly notify the Administrative Agent and the Administrative Agent will
promptly notify each Bank thereof, and the Borrower shall be deemed to
have requested that Revolving Loans consisting of Base Rate Revolving
Loans be made by the Banks with Revolving Commitments (and hereby
irrevocably consents to such deemed request) pursuant to Section 2.01(b)
to be disbursed on the Disbursement Date under such Letter of Credit,
subject to the amount of the Aggregate Available Revolving Commitment and
subject to the conditions set forth in Section 5.03. Any notice given by
the Issuing Bank or the Administrative Agent pursuant to this Section
3.03(b) may be oral if immediately confirmed in writing (including by
facsimile); provided, however, that the lack of such an immediate
confirmation shall not affect the conclusiveness or binding effect of such
notice.
(c) Each Bank which has a Revolving Commitment shall upon
receipt of any notice pursuant to Section 3.03(b) make available to the
Administrative Agent for the account of the Issuing Bank an amount in
Dollars and in immediately available funds equal to its Revolving
Commitment Percentage of the amount of the drawing, whereupon each
participating Bank with Revolving Commitments shall (subject to Section
3.03(d)) each be deemed to have made a Revolving Loan consisting of a Base
Rate Revolving Loan to the Borrower in that amount. If any Bank so
notified shall fail to make available to the Administrative Agent for the
account of the Issuing Bank the amount of such Bank's Revolving Commitment
Percentage of the amount of the drawing by no later than 1:00 P.M.
(Dallas, Texas time) on the Disbursement Date, then interest shall accrue
on
69
such Bank's obligation to make such payment, from the Disbursement Date to
the date such Bank makes such payment, at a rate per annum equal to (i)
the Federal Funds Rate in effect from time to time during the period
commencing on the later of the Disbursement Date and the date such Bank
receives notice of the Disbursement Date prior to 1:00 P.M. (Dallas, Texas
time) on such date and ending on the date three Business Days thereafter
and (ii) thereafter at the Base Rate as in effect from time to time. The
Administrative Agent will promptly give notice of the occurrence of a
Disbursement Date, but failure of the Administrative Agent to give any
such notice on a Disbursement Date or in sufficient time to enable any
Bank to effect such payment on such date shall not relieve such Bank from
its obligations under this Section 3.03.
(d) With respect to any unreimbursed drawing which is not
converted into Revolving Loans consisting of Base Rate Revolving Loans to
the Borrower in whole or in part because the Aggregate Available Revolving
Commitment is less than such unreimbursed drawing or because of the
Borrower's failure to satisfy the conditions set forth in Section 5.03,
the Borrower shall be deemed to have incurred from the Issuing Bank a
Letter of Credit Borrowing in the amount of such drawing, which Letter of
Credit Borrowing shall be due and payable on demand (together with
interest) and shall bear interest at a rate per annum equal to the Base
Rate plus the Applicable Margin for Base Rate Loans plus, in the case of
any Letter of Credit Borrowing outstanding after the Disbursement Date, 2%
per annum, and each Bank's payment to the Issuing Bank pursuant to Section
3.03(c) shall be deemed payment in respect of its participation in such
Letter of Credit Borrowing.
(e) The obligation of each Bank with a Revolving Commitment to
make Revolving Loans or fund its participation in any Letter of Credit
Borrowing, as contemplated by this Section 3.03, as a result of a drawing
under a Letter of Credit shall be absolute and unconditional and without
recourse to the Issuing Bank and shall not be affected by any
circumstance, including (i) any set-off, counterclaim, defense or other
right which such Bank may have against the Issuing Bank, the Borrower or
any other Person for any reason whatsoever; (ii) the occurrence or
continuance of a Default, an Event of Default or a Material Adverse
Effect; or (iii) any other circumstance, happening or event whatsoever,
whether or not similar to any of the foregoing.
3.04 Repayment of Participations.
(a) Upon (and only upon) receipt by the Administrative Agent
for the account of the Issuing Bank of funds from the Borrower (i) in
reimbursement of any payment made by the Issuing Bank under the Letter of
Credit with respect to which any Bank has paid the Administrative Agent
for the account of the Issuing Bank for such Bank's participation in the
Letter of Credit pursuant to Section 3.03, or (ii) in payment of interest
on amounts described in clause (i), the Administrative Agent will pay to
each Bank, in the same funds as those received by the Administrative Agent
for the account of the Issuing Bank, the amount of such Bank's Revolving
Commitment Percentage of such funds, and the Issuing Bank shall receive
the amount of the Revolving Commitment
70
Percentage of such funds of any Bank that did not so pay the
Administrative Agent for the account of the Issuing Bank.
(b) If the Administrative Agent or the Issuing Bank is
required at any time to return to the Borrower, or to a trustee, receiver,
liquidator, custodian, or any similar official in any Insolvency
Proceeding, any portion of the payments made by the Borrower to the
Administrative Agent for the account of the Issuing Bank pursuant to
Section 3.04(a) in reimbursement of a payment made under the Letter of
Credit or interest or fee thereon, each Bank shall, on demand of the
Administrative Agent, forthwith return to the Administrative Agent or the
Issuing Bank the amount of its Revolving Commitment Percentage of any
amounts so returned by the Administrative Agent or the Issuing Bank plus
interest thereon from the date such demand is made to the date such
amounts are returned by such Bank to the Administrative Agent or the
Issuing Bank, at a rate per annum equal to the Federal Funds Rate in
effect from time to time.
3.05 Role of the Issuing Bank.
(a) Each Bank and the Borrower agree that, in paying any
drawing under a Letter of Credit, the Issuing Bank shall not have any
responsibility to obtain any document (other than any sight draft and
certificates expressly required by the Letter of Credit) or to ascertain
or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document.
(b) The Issuing Bank and its correspondents, participants and
assignees shall not be liable to any Bank for: (i) any action taken or
omitted in connection herewith at the request or with the approval of the
Majority Banks; (ii) any action taken or omitted in the absence of gross
negligence or willful misconduct; or (iii) the due execution,
effectiveness, validity or enforceability of any Letter of Credit Related
Document.
(c) The Borrower hereby assumes all risks of the acts or
omissions of any beneficiary or transferee with respect to its use of any
Letter of Credit. The Issuing Bank and its correspondents, participants
and assignees shall not be liable or responsible for any of the matters
described in clauses (i) through (vii) of Section 3.06; provided, however
that the Borrower may have a claim against the Issuing Bank, and the
Issuing Bank may be liable to the Borrower, to the extent, but only to the
extent, of any direct, as opposed to consequential or exemplary, damages
suffered by the Borrower which the Borrower proves was caused by the
Issuing Bank's willful misconduct or gross negligence or the Issuing
Bank's willful failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a sight draft and certificate(s)
strictly complying with the terms and conditions of a Letter of Credit. In
furtherance and not in limitation of the foregoing: (i) the Issuing Bank
may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary; and (ii) the Issuing Bank shall not be
responsible for the validity or sufficiency of any instrument transferring
or assigning or purporting to
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transfer or assign a Letter of Credit or the rights or benefits thereunder
or proceeds thereof, in whole or in part, which may prove to be invalid or
ineffective for any reason.
3.06 Obligations Absolute. The obligations of the Borrower under
this Agreement and any Letter of Credit Related Document to reimburse the
Issuing Bank for a drawing under a Letter of Credit, and to repay any Letter of
Credit Borrowing and any drawing under a Letter of Credit converted into
Revolving Loans, shall be unconditional and irrevocable, and shall be paid
strictly in accordance with the terms of this Agreement and each such other
Letter of Credit Related Document under all circumstances, including the
following: (a) any lack of validity or enforceability of this Agreement or any
Letter of Credit Related Document; (b) any change in the time, manner or place
of payment of, or in any other term of, all or any of the obligations of the
Borrower in respect of any Letter of Credit or any other amendment or waiver of
or any consent to departure from all or any of the Letter of Credit Related
Documents; (c) the existence of any claim, set-off, defense or other right that
any Credit Party may have at any time against any beneficiary or any transferee
of any Letter of Credit (or any Person for whom any such beneficiary or any such
transferee may be acting), the Issuing Bank, any other Bank or any other Person,
whether in connection with this Agreement, the transactions contemplated hereby
or by the Letter of Credit Related Documents or any unrelated transaction; (d)
any draft, demand, certificate or other document presented under any Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect
or any statement therein being untrue or inaccurate in any respect; or any loss
or delay in the transmission or otherwise of any document required in order to
make a drawing under any Letter of Credit; (e) any payment by the Issuing Bank
under any Letter of Credit against presentation of a draft or certificate that
does not strictly comply with the terms of any Letter of Credit or any payment
made by the Issuing Bank under any Letter of Credit to any Person purporting to
be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of
creditors, liquidator, receiver or other representative of or successor to any
beneficiary or any transferee of any Letter of Credit, including any arising in
connection with any Insolvency Proceeding; (f) any exchange, release or
non-perfection of any collateral, or any release or amendment or waiver of or
consent to departure from any other guaranty, for all or any of the obligations
of the Borrower in respect of any Letter of Credit; or (g) any other
circumstance or happening whatsoever, whether or not similar to any of the
foregoing, including any other circumstance that might otherwise constitute a
defense available to, or a discharge of, any Credit Party.
3.07 Cash Collateral Pledge. Upon (a) the request of the
Administrative Agent, (i) if the Issuing Bank has honored any full or partial
drawing request on any Letter of Credit and such drawing has resulted in a
Letter of Credit Borrowing hereunder, or (ii) if, as of the Maturity Date, any
Letters of Credit may for any reason remain outstanding and partially or wholly
undrawn, or (b) the occurrence of a Default or Event of Default or (c) the
occurrence of the circumstances described in Section 2.07(a)(ii) requiring the
Borrower to Cash Collateralize Letters of Credit, then the Borrower shall
immediately Cash Collateralize the Letter of Credit Obligations in an amount
equal to the Letter of Credit Obligations (or in the case of clause (c) above,
the excess amount required pursuant to Section 2.07(a)(ii)) and such cash will
be held as security for all Obligations of the Borrower to the Banks hereunder
in a cash collateral account to be established by the Administrative Agent, and
during the existence of an Event of Default, the Administrative Agent may, upon
the request of the Majority Banks, apply such amounts so held
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to the payment of such outstanding Obligations; provided that on a date upon
which no Default or Event of Default exists and no Letter of Credit Obligations
remain outstanding, the Administrative Agent, at the request and expense of the
Borrower, will duly release the cash held hereunder as security in any cash
collateral account and shall assign, transfer and deliver to the Borrower
(without recourse and without any representation or warranty) such cash as is
then being released and has not theretofore been released pursuant to this
Agreement.
3.08 Letter of Credit Fees.
(a) The Borrower shall pay to the Administrative Agent (for
the account of each Bank with a Revolving Commitment) a letter of credit
fee with respect to each Letter of Credit issued and outstanding hereunder
equal to the Applicable Margin for Eurodollar Loans (as in effect from
time to time during the period of calculation thereof), computed on the
average daily maximum amount available to be drawn on each Letter of
Credit outstanding for the relevant period. Such Letter of Credit fee
shall be due and payable in arrears on each Interest Payment Date for Base
Rate Loans.
(b) The Borrower shall pay to the Issuing Bank a letter of
credit fronting fee for each Letter of Credit issued by the Issuing Bank
equal to 0.25% per annum of the entire amount available to be drawn from
time to time under each such issued Letter of Credit. Such Letter of
Credit fronting fee shall be due and payable in arrears on each Interest
Payment Date for Base Rate Loans.
(c) The Borrower shall pay to the Issuing Bank from time to
time on demand the normal issuance, presentation, amendment and other
processing fees, and other standard costs and charges, of the Issuing Bank
relating to letters of credit as from time to time in effect.
3.09 Applicability of ISP98 and UCP. Unless otherwise expressly
agreed by the Issuing Bank and the Borrower, when a Letter of Credit is issued
(a) the rules of the "International Standby Practices 1998" published by the
Institute of International Banking Law & Practice (or such later version thereof
as may be in effect at the time of issuance) shall apply to each standby Letter
of Credit, and (b) the rules of the Uniform Customs and Practice for Documentary
Credits, as most recently published by the International Chamber of Commerce
(the "ICC") at the time of issuance (including the ICC decision published by the
Commission on Banking Technique and Practice on April 6, 1998 regarding the
European single currency (euro)) shall apply to each commercial Letter of
Credit.
ARTICLE IV.
TAXES, YIELD PROTECTION AND ILLEGALITY
4.01 Taxes. Subject to Section 4.01(g), any and all payments by a
Credit Party to any Bank or the Administrative Agent under this Agreement or any
other Loan Document shall be made free and clear of, and without deduction or
withholding for or on account of, any and all present or future taxes, levies,
imposts, deductions, charges or withholdings, and all
73
liabilities with respect thereto, excluding, in the case of each Bank and the
Administrative Agent, as the case may be, such taxes (including income taxes or
franchise taxes) as are imposed on or measured by such Person's net income by
the jurisdiction under the laws of which such Person is organized or has its
principal office or maintains a Lending Office or any political subdivision
thereof (all such nonexcluded taxes, levies, imposts, deductions, charges,
withholdings and liabilities being hereinafter referred to as "Taxes").
(a) In addition, the Borrower shall pay any present or future
stamp or documentary taxes or any other excise or property taxes, charges
or similar levies which arise from any payment made hereunder or from the
execution, delivery or registration of, or otherwise with respect to, this
Agreement or any other Loan Document (hereinafter referred to as "Other
Taxes").
(b) Subject to Section 4.01(g), the Borrower shall indemnify
and hold harmless each Bank and the Administrative Agent for the full
amount of Taxes or Other Taxes (including any Taxes or Other Taxes imposed
by any jurisdiction on amounts payable under Section 4.01(c)) paid by such
Bank or the Administrative Agent and any liability (including penalties,
interest, additions to tax and expenses) arising therefrom or with respect
thereto, whether or not such Taxes or Other Taxes were correctly or
legally asserted.
(c) If the Borrower shall be required by law to deduct or
withhold any Taxes or Other Taxes from or in respect of any sum payable
hereunder to any Bank or the Administrative Agent, then, subject to
Section 4.01(g):
(i) the sum payable shall be increased as necessary so
that after making all required deductions (including deductions
applicable to additional sums payable under this Section 4.01(c))
such Bank or the Administrative Agent, as the case may be, receives
an amount equal to the sum it would have received had no such
deductions or withholdings been made;
(ii) the Borrower shall make such deductions; and
(iii) the Borrower shall pay the full amount deducted to
the relevant taxation authority or other authority in accordance
with applicable law.
(d) Within 30 days after the date of any payment by the
Borrower of Taxes or Other Taxes, the Borrower shall furnish to the
Administrative Agent, at its address referred to in Section 11.02, the
original or a certified copy of a receipt evidencing payment thereof, or
other evidence of payment satisfactory to the Administrative Agent.
(e) Each Bank which is organized under the laws of a
jurisdiction outside the United States agrees that:
(i) it shall, no later than the Effective Date (or, in
the case of a Bank which becomes a party hereto pursuant to Section
11.07 after the Effective
74
Date, the date upon which such Bank becomes a party hereto) deliver
to the Borrower through the Administrative Agent two accurate and
complete signed originals of Internal Revenue Service Form W-8BEN or
any successor thereto ("Form W-8BEN"), or two accurate and complete
signed originals of Internal Revenue Service Form W-8ECI or any
successor thereto ("Form W-8ECI"), as appropriate, in each case
indicating that such Bank is on the date of delivery thereof
entitled to receive all payments under this Agreement free from
withholding of United States Federal income tax;
(ii) if at any time such Bank makes any changes,
including a change of a Lending Office or its principal office,
place of incorporation or fiscal residence, necessitating a new Form
W-8BEN or Form W-8ECI, it shall, to the extent it is legally
entitled to do so, promptly deliver to the Borrower through the
Administrative Agent in replacement for, or in addition to, the
forms previously delivered by it hereunder, two accurate and
complete signed originals of Form W-8BEN or Form W-8ECI, as
appropriate, in each case indicating that such Bank is on the date
of delivery thereof entitled to receive all payments under this
Agreement free from withholding of United States Federal income tax;
(iii) it shall, to the extent it is legally entitled to
do so, before or promptly after the occurrence of any event,
including the passing of time but excluding any event mentioned in
Section 4.01(e)(ii), requiring a change in or renewal of the most
recent Form W-8BEN or Form W-8ECI previously delivered by such Bank,
deliver to the Borrower through the Administrative Agent two
accurate and complete original signed copies of Form W-8BEN or Form
W-8ECI in replacement for the forms previously delivered by such
Bank indicating that such Bank continues to be entitled to receive
all payments under this Agreement free from any withholding of any
United States Federal income tax;
(iv) it shall, to the extent it is legally entitled to
do so, promptly upon the Borrower's or the Administrative Agent's
reasonable request to that effect, deliver to the Borrower or the
Administrative Agent (as the case may be) such other forms or
similar documentation as may be required from time to time by any
applicable law, treaty, rule or regulation in order to establish
such Bank's complete exemption from withholding on all payments
under this Agreement;
(v) if such Bank claims or is entitled to claim
exemption from withholding tax under a United States tax treaty by
providing a Form W-8ECI and such Bank sells or grants a
participation of all or part of its rights under this Agreement,
such Bank shall notify the Administrative Agent of the percentage
amount in which it is no longer the beneficial owner under this
Agreement. To the extent of this percentage amount, the
Administrative Agent shall treat such Bank's Form W-8ECI as no
longer in compliance with this Section 4.01(e). In the event a Bank
claiming exemption from United States withholding tax by filing Form
W-8BEN with the Administrative Agent sells or grants a participation
in its rights under this Agreement, such Bank agrees to undertake
sole responsibility for
75
complying with the withholding tax requirements imposed by Sections
1441 and 1442 of the Code; and
(vi) without limiting or restricting any Bank's right to
increased amounts under Section 4.01(c) from the Borrower upon
satisfaction of such Bank's obligations under the provisions of this
Section 4.01(e), if such Bank is entitled to a reduction in the
applicable withholding tax, the Administrative Agent may (but shall
not be obligated to) withhold from any interest to such Bank an
amount equivalent to the applicable withholding tax after taking
into account such reduction. If the forms or other administrative
documentation required by Section 4.01(e)(i) are not delivered to
the Administrative Agent, then the Administrative Agent shall
withhold from any interest payment to a Bank not providing such
forms or other documentation, an amount equivalent to the applicable
withholding tax and in addition, the Administrative Agent shall also
withhold against periodic payments other than interest payments to
the extent United States withholding tax is not eliminated by
obtaining Form W-8BEN or Form W-8ECI. The Borrower shall indemnify
and hold harmless the Administrative Agent and each of its officers,
directors, employees, counsel, agents and attorney-in-fact, on an
after tax basis, from and against all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs,
charges, expenses or disbursements (including Attorney Costs) of any
kind whatsoever incurred as a result of or in connection with the
Administrative Agent's failure to withhold as provided pursuant to
the preceding sentence, unless such failure constitutes gross
negligence or willful misconduct of the Administrative Agent itself
as the same is determined by a final judgment of a court of
competent jurisdiction and the obligations in this sentence shall
survive payment of all other Obligations.
(f) The Borrower will not be required to pay any additional
amounts in respect of Taxes imposed by the United States Federal
government pursuant to Sections 4.01(a) or 4.01(c) to any Bank:
(i) if and to the extent the obligation to pay such
additional amounts would not have arisen but for a failure by such
Bank to comply with its obligations under Section 4.01(e) in respect
of its Lending Office;
(ii) if such Bank shall have delivered to the Borrower a
Form W-8BEN in respect of its Lending Office pursuant to Section
4.01(e)(i)-(iii) or such other forms or similar documentation
pursuant to Section 4.01(e)(iv), to the extent such Bank shall not
at any time be entitled to exemption from all withholding of United
States Federal income tax in respect of payments by the Borrower
hereunder for the account of such Lending Office for any reason
other than a change in United States law or regulations or in the
official interpretation of such law or regulations by any
Governmental Authority charged with the interpretation or
administration thereof (whether or not having the force of law)
after the date of delivery of such Form W-8BEN or such other forms
or similar documentation; or
76
(iii) if such Bank shall have delivered to the Borrower
a Form W-8ECI in respect of its Lending Office pursuant to Section
4.01(e)(i)-(iii) or such other forms or similar documentation
pursuant to Section 4.01(e)(iv), to the extent such Bank shall not
at any time be entitled to exemption from all deductions or
withholding of United States Federal income tax in respect of
payments by the Borrower hereunder for the account of such Lending
Office for any reason other than a change in United States law or
regulations or any applicable tax treaty or regulations or in the
official interpretation of any such law, treaty or regulations by
any Governmental Authority charged with the interpretation or
administration thereof (whether or not having the force of law)
after the date of delivery of such Form W-8ECI or such other forms
or similar documentation.
(g) Each Bank agrees that it shall, at any time upon
reasonable advance request in writing by the Borrower or the
Administrative Agent, promptly deliver such certification or other
documentation as may be required under the law or regulation in any
applicable jurisdiction and which such Bank is entitled to submit to avoid
or reduce withholding taxes on amounts to be paid by the Borrower and
received by such Bank pursuant to this Agreement or any other Loan
Document.
(h) The Borrower shall indemnify each Bank and the
Administrative Agent, to the extent required by this Section 4.01, within
30 days after receipt of written request from such Bank or the
Administrative Agent thereof accompanied by a written statement describing
in reasonable detail the Taxes or Other Taxes that are the subject of the
basis for such indemnity and the computation of the amount payable.
(i) If a Bank or the Administrative Agent shall become aware
that it is entitled to claim a refund of any withholding Taxes or Other
Taxes paid by the Borrower under this Section 4.01 from the taxing
authority imposing such Taxes or Other Taxes, such Bank or the
Administrative Agent, as the case may be, shall, at the expense of the
Borrower, use reasonable efforts to obtain such refund and upon receipt
thereof, shall promptly pay to the Borrower the amount so received.
(j) If the Borrower is required to pay additional amounts to
any Bank or the Administrative Agent pursuant to Section 4.01(c), then
such Bank shall, upon the Borrower's request, use its reasonable best
efforts (consistent with policy considerations of such Bank) to change the
jurisdiction of its Lending Office so as to reduce or eliminate any such
additional payment which may thereafter accrue if such change in the
reasonable judgment of such Bank is not otherwise disadvantageous to such
Bank.
(k) Each Bank agrees that it will (i) take all reasonable
actions reasonably requested by the Borrower (consistent with policy
considerations by such Bank) to maintain all exemptions, if any, available
to it from withholding taxes (whether available by treaty or existing
administrative waiver), and (ii) to the extent reasonable, otherwise
cooperate with the Borrower to minimize any amounts payable by the
Borrower under this Section 4.01, in any case described in the preceding
clauses (i) and
77
(ii), however, only if such action or cooperation is not disadvantageous
to such Bank in the reasonable judgment of such Bank.
4.02 Illegality.
(a) If any Bank shall determine that (i) the introduction of
any Requirement of Law, or any change in any Requirement of Law, or in the
interpretation or administration thereof, has made it unlawful, or (ii)
any central bank or other Governmental Authority has asserted that it is
unlawful for any Bank or its Lending Office, to make a Eurodollar Loan or
to convert any Base Rate Loan to a Eurodollar Loan, then, on notice
thereof by such Bank to the Borrower through the Administrative Agent, the
obligation of such Bank to make or convert any such Loans shall be
suspended, and any such Loan to be made or continued by such Bank shall
instead be made or continued as a Base Rate Loan, until such Bank shall
have notified the Administrative Agent and the Borrower that the
circumstances giving rise to such determination no longer exist.
(b) If a Bank shall determine that it is unlawful to maintain
any Eurodollar Loan, all Eurodollar Loans of such Bank then outstanding
shall be automatically converted to Base Rate Loans, either on the last
day of the Interest Period thereof if such Bank may lawfully continue to
maintain such Eurodollar Loans to such day, or immediately, if the Bank
may not lawfully continue to maintain such Eurodollar Loans, and the
Borrower shall pay any amounts required to be paid in connection therewith
pursuant to Section 4.04.
(c) Before giving any notice to the Administrative Agent
pursuant to this Section 4.02, the affected Bank shall designate a
different Lending Office with respect to its Eurodollar Loans if such
designation will avoid the need for giving such notice or making such
demand and will not, in the judgment of such Bank, be illegal,
inconsistent with the policies of such Bank or otherwise disadvantageous
to such Bank.
4.03 Increased Costs and Reduction of Return.
(a) If any Bank or the Issuing Bank shall determine that, due
to either (i) the introduction of or any change in or in the
interpretation or administration of any law or regulation (other than any
law or regulation relating to taxes, including those relating to Taxes or
Other Taxes) after the Effective Date or (ii) the compliance with any
guideline or request from any central bank or other Governmental Authority
(whether or not having the force of law) made after the Effective Date,
there shall be any increase in the cost to such Bank of agreeing to make
or making, funding or maintaining any Eurodollar Loans or participating in
any Letter of Credit Obligations, or any increase in the cost to the
Issuing Bank of agreeing to issue, issuing or maintaining any Letter of
Credit or of agreeing to make or making, funding or maintaining any unpaid
drawing under any Letter of Credit, then the Borrower shall be liable for,
and shall from time to time, upon demand therefor by such Bank or the
Issuing Bank, as the case may be (with a copy of such demand to the
Administrative Agent), pay to the Administrative Agent for
78
the account of such Bank or the Issuing Bank, additional amounts as are
sufficient to compensate such Bank or the Issuing Bank for such increased
costs.
(b) If any Bank or the Issuing Bank shall have determined that
(i) the introduction of any Capital Adequacy Regulation after the
Effective Date, (ii) any change in any Capital Adequacy Regulation after
the Effective Date, (iii) any change in the interpretation or
administration of any Capital Adequacy Regulation by any central bank or
other Governmental Authority charged with the interpretation or
administration thereof after the Effective Date, or (iv) compliance by any
Bank (or its Lending Office) or the Issuing Bank, as the case may be, or
any corporation controlling such Bank or the Issuing Bank, as the case may
be, with any Capital Adequacy Regulation adopted after the Effective Date,
affects or would affect the amount of capital required or expected to be
maintained by such Bank or the Issuing Bank or any corporation controlling
such Bank or the Issuing Bank and (taking into consideration such Bank's,
the Issuing Bank's or such corporation's policies with respect to capital
adequacy and such Bank's, the Issuing Bank's or such corporation's desired
return on capital) determines that the amount of such capital is (or is
required to be) increased as a consequence of its Commitments, Loans,
participations in Letters of Credit, or obligations under this Agreement,
then, upon demand of such Bank or the Issuing Bank (with a copy to the
Administrative Agent), the Borrower shall be liable for and shall
immediately pay to such Bank or the Issuing Bank, from time to time as
specified by such Bank or the Issuing Bank, additional amounts sufficient
to compensate such Bank or the Issuing Bank for such increase.
4.04 Funding Losses. The Borrower shall reimburse each Bank and hold
each Bank harmless from any loss, cost or expense (other than loss of margin)
which such Bank may sustain or incur as a consequence of: (a) any failure by the
Borrower to make any payment of principal of any Eurodollar Loan (including
payments made after any acceleration thereof); (b) any failure by the Borrower
to borrow a Eurodollar Loan or continue a Eurodollar Loan when such Eurodollar
Loan is due and payable or convert a Base Rate Loan to a Eurodollar Loan after
the Borrower has given a Notice of Borrowing, or a Notice of
Conversion/Continuation as the case may be; (c) any failure by the Borrower to
make any prepayment of a Eurodollar Loan after the Borrower has given a notice
in accordance with Section 2.06; or (d) any payment or prepayment (including
pursuant to Section 2.06 or 2.07 or after acceleration thereof) of any
Eurodollar Loan for any reason whatsoever on a day which is not the last day of
the Interest Period with respect thereto; including in each case any such loss
or expense arising from the liquidation or reemployment of funds obtained by it
to maintain any Eurodollar Loan hereunder or from fees payable to terminate the
deposits from which such funds were obtained.
4.05 Inability to Determine Rates. Notwithstanding anything to the
contrary contained in this Agreement, if, in relation to any proposed Eurodollar
Loan, (a) the Administrative Agent shall have determined (which determination
shall be conclusive and binding upon all parties hereto) that by reason of
circumstances affecting the interbank markets adequate and fair means do not
exist for ascertaining the Eurodollar Rate to be applicable to such Eurodollar
Loan or (b) the Administrative Agent shall have received notice from the
Majority Banks that the Eurodollar Rate determined or to be determined for any
Interest Period will not adequately and fairly reflect the cost to such Banks
(as conclusively certified by such Banks) of
79
making or maintaining their affected Loans during such affected Interest Period,
then, the obligation of the Banks to make, continue or maintain Eurodollar Loans
or to convert Base Rate Loans into Eurodollar Loans shall be suspended until the
Administrative Agent upon the instruction of the Majority Banks, as applicable,
revokes such notice in writing. If, notwithstanding the provisions of this
Section 4.05, any Bank has made available to the Borrower its pro rata share of
any such proposed Eurodollar Loan, then the Borrower shall immediately repay the
amount so made available to it by such Bank, together with accrued interest
thereon, if any, or shall convert such proposed Eurodollar Loan to a Base Rate
Loan.
4.06 Reserves on Eurodollar Loans. The Borrower shall pay to each
Bank, if and as long as such Bank shall be required under regulations of the
Federal Reserve Board to maintain reserves with respect to liabilities or assets
consisting of or including Eurocurrency funds or deposits (currently known as
"Eurocurrency liabilities"), additional costs on the unpaid principal amount of
each Eurodollar Loan equal to actual costs of such reserves allocated to such
Loan by such Bank (as determined by such Bank in good faith, which determination
shall be conclusive absent manifest error), payable on each date on which
interest is payable on such Loan, provided that the Borrower shall have received
at least 15 days' prior written notice (with a copy to the Administrative Agent)
of such additional interest from the Bank. If a Bank fails to give such notice
15 days prior to the relevant Interest Payment Date, such additional interest
shall be payable 15 days after receipt by the Borrower of such notice.
4.07 Certificates of Banks. Any Bank (including the Issuing Bank)
claiming reimbursement or compensation pursuant to this Article IV shall deliver
to the Borrower (with a copy to the Administrative Agent) a certificate setting
forth in reasonable detail the amount payable to such Person hereunder and such
certificate shall be conclusive and binding on the Borrower in the absence of
manifest error.
4.08 Change of Lending Office, Replacement Bank.
(a) Each Bank agrees that upon the occurrence of an event
giving rise to the operation of Section 4.02 or 4.03 with respect to such
Bank, it will if so requested by the Borrower, use reasonable efforts
(consistent with its internal policy and legal and regulatory
restrictions) to designate a different Lending Office for any Loans
affected by such event with the object of avoiding the consequence of the
event giving rise to the operation of such section; provided however that
such designation would not, in the sole judgment of such Bank, be
otherwise disadvantageous to such Bank. Nothing in this Section 4.08(a)
shall affect or postpone any of the obligations of the Borrower or the
right of any Bank provided in Section 4.02 or 4.03.
(b) Notwithstanding anything to the contrary contained herein
or in any other Loan Document, (i) upon the occurrence of any event that
obligates the Borrower to pay any amount under Section 4.01 or giving rise
to the operation of Section 4.02 or Section 4.03 with respect to any Bank
or (ii) as provided in Section 11.01(b) in the case of certain refusals by
a Bank to consent to certain proposed changes, waivers, discharges or
terminations with respect to this Agreement which have been approved by
the Majority Banks, the Borrower shall have the right, if no Default or
Event of Default
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then exists or will exist immediately after giving effect to the
respective replacement, to replace such Bank (the "Replaced Bank") by
designating another Bank or an Eligible Assignee (such Bank or Eligible
Assignee being herein called a "Replacement Bank") to which such Replaced
Bank shall assign, in accordance with Section 11.07 and without recourse
to or warranty by, or expense to, such Replaced Bank, the rights and
obligations of such Replaced Bank hereunder (except for such rights as
survive repayment of the Loans), and, upon such assignment, such Replaced
Bank shall no longer be a party hereto or have any rights hereunder and
such Replacement Bank shall succeed to the rights and obligations of such
Replaced Bank hereunder. The Borrower shall pay to such Replaced Bank in
same day funds on the date of replacement all interest, fees and other
amounts then due and owing such Replaced Bank by the Borrower hereunder to
and including the date of replacement, including, without limitation,
costs incurred under Sections 4.01, 4.02 and/or 4.03.
4.09 Survival. The agreements and obligations of the Borrower set
forth in this Article IV shall survive the payment of all other Obligations.
ARTICLE V.
CONDITIONS PRECEDENT
5.01 Conditions to the Effective Date. The occurrence of the
Effective Date and the obligation of the Banks to make Loans and the Issuing
Bank to issue Letters of Credit on the Initial Borrowing Date are subject to the
receipt by the Administrative Agent prior to or concurrently with the occurrence
of the Effective Date and the making of Loans and the issuance of Letters of
Credit on the Initial Borrowing Date of each of the items set forth in this
Section 5.01 in form and substance reasonably satisfactory to the Administrative
Agent and the Banks and in sufficient copies for each Bank:
(a) Amended and Restated Credit Agreement. This Agreement duly
executed and delivered by the Parent Guarantors, the Borrower, the
Administrative Agent, the Issuing Bank, each of the other Banks and by
each of the other parties listed on the signature pages hereof (or, in the
case of any party as to which an executed counterpart shall not have been
received, receipt by the Administrative Agent in form satisfactory to it
of a facsimile or other written confirmation from such party of execution
of a counterpart of this Agreement by such party).
(b) Closing Certificates. A Closing Certificate of each Credit
Party, dated the Effective Date, duly executed by a Responsible Officer
and the Secretary or any Assistant Secretary of such Credit Party,
together with:
(i) original certificates of existence and good
standing, dated not more than 10 days prior to the Effective Date,
from appropriate officials of each Credit Party's respective state
of incorporation or organization and certificates of good standing
and authority to do business, dated not more than 10 days prior to
Effective Date, from appropriate officials of any and all
jurisdictions
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where each Credit Party's property or business makes qualification
to transact business therein necessary and where the failure to be
so qualified could reasonably be expected to have a Material Adverse
Effect;
(ii) copies of Board Resolutions of each Credit Party
approving the Loan Documents to which such Credit Party is a party
and authorizing the transactions contemplated herein and therein,
duly adopted at a meeting of, or by the unanimous written consent
of, the Board of Directors of such Credit Party; and
(iii) a copy of all Charter Documents of each Credit
Party. The articles/certificate of incorporation (or equivalent
limited liability company document) of each Credit Party shall be
accompanied by an original certificate issued by the Secretary of
the State of incorporation or organization of such Credit Party,
dated not more than 10 days prior to the Effective Date, certifying
that such copy is correct and complete.
(c) Cancellation of Liens. Evidence that all Liens other than
Permitted Liens have been canceled and released, including duly executed
releases and UCC-3 financing statements in recordable form and otherwise
in form and substance satisfactory to the Administrative Agent.
(d) Global Assignment and Assumptions. The Global Assignment
and Assumptions duly executed and delivered by each of the parties
thereto.
(e) Legal Opinions.
(i) An opinion of ▇▇▇▇▇▇▇▇ & ▇▇▇▇▇, counsel to the
Credit Parties, addressed to the Administrative Agent and the Banks,
which opinion shall cover such matters incident to the transactions
contemplated herein and in the other Loan Documents as the
Administrative Agent may reasonably request and shall be in form and
substance reasonably satisfactory to the Administrative Agent; and
(ii) an opinion of FCC counsel to the Credit Parties
addressed to the Administrative Agent and the Banks, which opinion
shall cover such matters incident to the transactions contemplated
herein and in the other Loan Documents as the Administrative Agent
may reasonably request and shall be in form and substance reasonably
satisfactory to the Administrative Agent.
(f) Certificates. Certificates signed by a Responsible Officer
of each applicable Credit Party, dated as of the Effective Date, stating
that:
(i) the representations and warranties of the Parent
Guarantors and the Borrower contained in Article VI and the
representations and warranties of the other Credit Parties set forth
in the Loan Documents to which they are a party are true and correct
on and as of
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such date, as though made on and as of such date (except to the
extent such representations and warranties expressly relate to an
earlier date, in which case such representations and warranties
shall be true and correct as of such earlier date);
(ii) no Default or Event of Default exists both before
and after giving effect to any Borrowing or the issuance of any
Letter of Credit on the Initial Borrowing Date; and
(iii) after giving effect to the initial Credit Event
under this Agreement, no Nexstar Entity will have any Indebtedness
outstanding except as shall be permitted under Section 8.05.
(g) Pro Forma Financial Statements. A consolidated balance
sheet from each of the Ultimate Parent and its Subsidiaries and the
Borrower and its Subsidiaries as of March 31, 2001, calculated on a Pro
Forma Basis giving effect to the initial borrowings to be made under this
Agreement, the refinancing of the loans under the Existing Credit
Agreement, and the payment or accrual of all fees and expenses payable in
connection with the foregoing.
(h) Solvency Certificate. A Solvency Certificate, duly
executed by the Chief Financial Officer of each Nexstar Entity, certifying
to the Banks that each Nexstar Entity is Solvent both before and after
giving effect to the transactions contemplated by this Agreement.
(i) Other Documents. Such other approvals, opinions or
documents, including financing statements, as the Administrative Agent or
any Bank may reasonably request.
5.02 Additional Conditions to the Effective Date.
The occurrence of the Effective Date and the obligation of the Banks
to make Loans and the Issuing Bank to issue Letters of Credit on the Initial
Borrowing Date are subject to the satisfaction, prior to or concurrently with
the occurrence of the Effective Date and the making of Loans and the issuance of
Letters of Credit on the Initial Borrowing Date of the other conditions
precedent set forth below, each in a manner reasonably satisfactory to the
Administrative Agent and the Banks:
(a) No Restraints. There shall exist no judgment, order,
injunction or other restraint which would prevent or delay the
consummation of, or impose materially adverse conditions upon this
Agreement and the other Loan Documents, the Bastet/Mission Credit
Agreement and related documents or any of the transactions contemplated in
connection with any of the foregoing.
(b) Margin Regulations. All Loans made under this Agreement
shall be in full compliance with all applicable Requirements of Law,
including, without limitation, Regulations T, U and X of the Federal
Reserve Board.
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(c) Material Adverse Effect. Since March 31, 2001, there shall
have occurred no event or circumstance which has had or could reasonably
be expected to have a Material Adverse Effect.
(d) Fees. The Administrative Agent, the Issuing Bank and the
other Banks shall have received (i) all fees and expenses that are due and
payable on or before the Effective Date pursuant to this Agreement and any
other Loan Document and (ii) an amount equal to the estimated fees and
expenses of ▇▇▇▇▇ ▇▇▇▇▇ L.L.P. incurred in connection with the
preparation, examination, negotiation, execution and delivery of this
Agreement, the other Loan Documents and the consummation of the
transactions contemplated herein.
(e) Repayment, Repurchase, Cancellation and/or Modification of
Certain Indebtedness. (i) All Indebtedness and all other obligations
outstanding with respect to the Existing Credit Agreement and all other
Indebtedness not permitted by Section 8.05 shall have been paid or
otherwise canceled or discharged in full, and all Liens created in
connection therewith shall have been either terminated or assigned to the
Administrative Agent for the benefit of the Banks, and (ii) the
Administrative Agent shall have received satisfactory evidence that all of
the foregoing has occurred.
(f) Governmental and Third Party Approvals. All material
Authorizations and third-party approvals (including, without limitation,
all FCC Licenses and consents) necessary or appropriate in connection with
this Agreement or the other Loan Documents, the Bastet/Mission Loan
Documents and the other transactions contemplated herein and in the other
Loan Documents shall have been obtained and shall be in full force and
effect, and all applicable waiting periods shall have expired without any
action being taken or threatened by any competent authority which would
restrain, prevent or otherwise impose materially adverse conditions on
this Agreement, the other Loan Documents, the Bastet/Mission Loan
Documents, or any of the other transactions contemplated herein or
therein.
(g) All Proceedings Satisfactory. All corporate and other
proceedings taken prior to or on the Effective Date in connection with
this Agreement, the other Loan Documents and the transactions contemplated
herein and all documents and evidences incident thereto shall be
satisfactory in form and substance to the Banks, and the Banks shall have
received such copies thereof and such other materials (certified, if
requested) as they may have reasonably requested in connection therewith.
5.03 Conditions to All Borrowings and the Issuance of Any Letters of
Credit.
The obligation of the Banks to make or convert any Loans agreed to
be made by them hereunder and the obligation of the Issuing Bank to issue, renew
or amend any Letter of Credit (including any initial Loans to be made or Letters
of Credit to be issued on the Initial Borrowing Date) are subject to the
satisfaction of the following conditions precedent on the relevant Borrowing
Date or date of issuance of a Letter of Credit, as applicable.
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(a) Notice of Borrowing; Letter of Credit Application. The
Administrative Agent shall have received (i) a Notice of Borrowing in the
case of Loans, as required under Section 2.03(a) or Section 2.03(b), as
applicable, or (ii) in the case of any issuance of any Letter of Credit,
the Issuing Bank and the Administrative Agent shall have received a Letter
of Credit Application, as required under Section 3.02 and/or (iii) Notice
of Conversion/Continuation, as required under Section 2.04.
(b) Representations and Warranties. Each of the
representations and warranties made by the Credit Parties in or pursuant
to the Loan Documents shall be true and correct in all material respects
on and as of such Borrowing Date or date of issuance of a Letter of Credit
as if made on and as of such date, both before and after giving effect to
the Credit Event requested to be made on such date and the proposed use of
the proceeds thereof (except to the extent such representations and
warranties expressly refer to an earlier date, in which case they shall be
true and correct as of such earlier date).
(c) No Default. No Default or Event of Default shall exist
both before and after giving effect to the Credit Event requested to be
made on such date and the proposed use of proceeds thereof.
(d) No Material Adverse Effect. Since the Effective Date, no
events shall have occurred which, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect.
Each Notice of Borrowing or Letter of Credit Application submitted
by the Borrower hereunder shall be deemed to constitute a representation and
warranty by the Borrower hereunder, as of the date of each such Notice or
Application and as of the date of the related Borrowing or issuance of a Letter
of Credit, that the conditions set forth in Sections 5.03(b), (c) and (d) are
satisfied.
ARTICLE VI.
REPRESENTATIONS AND WARRANTIES
To induce the Administrative Agent and the Banks to enter into this
Agreement and to make the Loans and to issue Letters of Credit, each Parent
Guarantor and the Borrower hereby makes the following representations and
warranties to the Administrative Agent and each Bank, both as to itself and as
to its respective Subsidiaries:
6.01 Existence; Compliance with Law. Each Parent Guarantor, the
Borrower and each of their respective Subsidiaries (a) is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization; (b) has the corporate, limited liability company or partnership
power and authority, legal right and all governmental licenses, authorizations,
consents and approvals to own (or hold under lease) and operate its property or
assets and conduct the business in which it is currently engaged except, with
respect only to such legal right and governmental licenses, authorizations,
consents and approvals, where the failure to possess any such legal right or
governmental license, authorization, consent or approvals
85
could not reasonably be expected to have a Material Adverse Effect; (c) has the
corporate, limited liability company or partnership power and authority, legal
right and all governmental licenses, authorizations, consents and approvals to
execute, deliver, and perform its obligations under the Loan Documents to which
it is a party; (d) is duly qualified to do business as a foreign entity, and
licensed and in good standing, under the laws of each jurisdiction where its
ownership, lease or operation of property or the nature or conduct of its
business requires such qualification or license, except where the failure so to
qualify could not reasonably be expected to have a Material Adverse Effect; and
(e) is in compliance, in all material respects, with all Requirements of Law.
6.02 Corporate, Limited Liability Company or Partnership
Authorization; No Contravention. The execution, delivery and performance by each
Nexstar Entity of this Agreement and any other Loan Document to which such
Nexstar Entity is a party have been duly authorized by all necessary corporate,
limited liability company or partnership action, as the case may be, of such
Nexstar Entity and do not and will not: (a) contravene any terms of the
certificate of incorporation, limited liability company agreement or partnership
agreement, or certificate of formation, as the case may be, or by-laws of such
Nexstar Entity; (b) conflict with or result in any breach or contravention of,
constitute (alone or with notice or lapse of time or both) a default under or
give rise to any right to accelerate any material Contractual Obligation of any
Nexstar Entity and will not result in, or require, the creation of any Lien on
any of their respective properties or any revenues, income or profits therefrom,
whether now owned or hereafter acquired pursuant to any Requirement of Law or
Contractual Obligation (other than pursuant to the Security Documents) to which
such Nexstar Entity is a party or any order, injunction, writ or decree of any
Governmental Authority to which such Nexstar Entity or its property is subject;
or (c) violate any Requirement of Law.
6.03 Governmental Authorization. No approval, consent, exemption,
authorization, or other action by, or in respect of, or notice to, or filing
with (or approvals required under state blue sky securities laws) any
Governmental Authority or any other Person is necessary or required in
connection with the Borrowings to be made hereunder or with the execution,
delivery or performance by, or enforcement against, any Nexstar Entity of, this
Agreement or any other Loan Document, except that (i) certain of the Loan
Documents may have to be filed with the FCC after the Effective Date and (ii)
the prior approval of the FCC may be required for the Banks to exercise certain
of their rights with respect to the Stations.
6.04 Binding Effect. This Agreement and each other Loan Document to
which any Nexstar Entity is a party constitutes the legal, valid and binding
obligation of such Nexstar Entity to the extent such Nexstar Entity is a party
thereto, enforceable against such Nexstar Entity in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency, or
similar laws affecting the enforcement of creditors' rights generally or by
equitable principles of general applicability.
6.05 Litigation. There are no actions, suits, proceedings, claims or
disputes pending, or to the best knowledge of each Nexstar Entity, threatened at
law, in equity, in arbitration or before any Governmental Authority, against any
Nexstar Entity or any of their respective properties or assets which: (a)
purport to affect or pertain to this Agreement or any
86
other Loan Document, or any of the transactions contemplated hereby or thereby;
or (b) as to which there is a reasonable possibility of an adverse
determination, that if adversely determined, could, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. No
injunction, writ, temporary restraining order or any order of any nature has
been issued by any court or other Governmental Authority purporting to enjoin or
restrain the execution, delivery or performance of this Agreement or any other
Loan Document, or directing that any transaction provided for herein or therein
not be consummated as herein or therein provided.
6.06 No Default. No Default or Event of Default exists or will
result from the incurring of any Obligations by any Nexstar Entity. No Nexstar
Entity is in default under or with respect to any Contractual Obligation in any
respect which, individually or in the aggregate, could reasonably be expected to
have a Material Adverse Effect.
6.07 ERISA Compliance.
(a) Each Plan is in compliance in all material respects with
the applicable provisions of ERISA, the Code and other federal or state
law. Each Plan which is intended to qualify under Section 401(a) of the
Code (i) has received a favorable determination letter from the Internal
Revenue Service or (ii) has been recently established and has not received
such a determination letter and such Plan complies with the requirements
of Section 401(a) of the Code; and to the best knowledge of each Nexstar
Entity nothing has occurred which would cause the loss of such
qualification or the revocation of such determination letter.
(b) There are no pending or, to the best knowledge of each
Nexstar Entity, threatened claims, actions or lawsuits, or action by any
Governmental Authority, with respect to any Plan which has resulted, or
could reasonably be expected to result, in a Material Adverse Effect.
There has been no prohibited transaction or violation of the fiduciary
responsibility rules with respect to any Plan which has resulted, or could
reasonably be expected to result, in a Material Adverse Effect.
(c) No ERISA Event has occurred or is reasonably expected to
occur with respect to any Pension Plan or Multiemployer Plan.
(d) As of the date hereof, no Pension Plan has an Unfunded
Pension Liability.
(e) No Nexstar Entity and no ERISA Affiliate has incurred, nor
reasonably expects to incur, any material liability under Title IV of
ERISA with respect to any Pension Plan.
(f) No Nexstar Entity and no ERISA Affiliate has incurred nor
reasonably expects to incur any material liability (and no event has
occurred which, with the giving of notice under Section 4219 of ERISA,
would result in such material liability) under Section 4201 or 4243 of
ERISA with respect to a Multiemployer Plan.
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(g) No Nexstar Entity and no ERISA Affiliate has transferred
any Unfunded Pension Liability to any Person or otherwise engaged in a
transaction that could be subject to Section 4069 or 4212(c) of ERISA.
6.08 Use of Proceeds; Margin Regulations. No Nexstar Entity is
engaged principally, or as one of its important activities, in the business of
extending credit for the purpose of purchasing or carrying Margin Stock. No part
of the proceeds of any Loan have been or will be used by any Nexstar Entity,
whether directly or indirectly, and whether immediately, incidentally or
ultimately, (i) to purchase or carry Margin Stock or to extend credit to others
for the purpose of purchasing or carrying Margin Stock or to refund indebtedness
originally incurred for such purpose, or (ii) for any purpose that entails a
violation of, or that is inconsistent with, the provisions of the regulations of
the Board including Regulations U and X. If requested by any Bank or the
Administrative Agent, each Credit Party will furnish to the Administrative Agent
and each Bank a statement to the foregoing effect in conformity with the
requirements of FR Form U-1 referred to in said Regulation U.
6.09 Ownership of Property; Intellectual Property.
(a) Each Nexstar Entity has good record and indefeasible title
in fee simple to, or a valid leasehold interest in, all its Real Property,
and good title to, a valid leasehold interest in, or a valid right to use,
all its other property and assets which are material to the operations of
its businesses, in each case subject only to Permitted Liens.
(b) (i) Each Nexstar Entity has complied with all obligations
under all leases to which it is a party and all such leases are in full
force and effect and (ii) each Nexstar Entity enjoys peaceful and
undisturbed possession under all such leases under which it is a tenant,
in each case except where the failure to comply or to enjoy such
possession, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.
(c) As of the date of this Agreement, (i) no Nexstar Entity
has received any notice of, nor has any knowledge of, any pending or
contemplated condemnation proceeding affecting any Real Property owned by
such Nexstar Entity or any sale or disposition thereof in lieu of
condemnation and (ii) no Nexstar Entity is obligated under any right of
first refusal, option or other contractual right to sell, assign or
otherwise dispose of any of its Real Property or any interest therein.
(d) Each Nexstar Entity owns, or otherwise has the right to
use, all trademarks, tradenames, copyrights, technology, know-how and
processes ("Intellectual Property") necessary for the conduct of its
business as currently conducted except for those which the failure to own
or have the right to use, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect. Except for such
claims that, individually or in the
88
aggregate, could not reasonably be expected to have a Material Adverse
Effect, no claim has been asserted and is pending by any Person
challenging or questioning the use of any such Intellectual Property or
the validity or effectiveness of any such Intellectual Property, nor does
any Nexstar Entity know of any valid basis for any such claim. Except for
such infringements that, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect, to the knowledge
of each Nexstar Entity, the use of such Intellectual Property by such
Nexstar Entity does not infringe on the rights of any Person.
6.10 Taxes. Each Nexstar Entity has filed all federal and other
material tax returns and reports required to be filed and paid the tax thereon
shown to be due, and has paid all federal and other material taxes, assessments,
fees and other governmental charges levied or imposed upon them or their
properties, income or assets otherwise due and payable, except those which are
being contested in good faith by appropriate proceedings and for which adequate
reserves have been provided in accordance with GAAP. There is no proposed tax
assessment against any Nexstar Entity which, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.
6.11 Financial Statements. All balance sheets, statements of
operations and other financial data which have been or shall hereafter be
furnished to the Administrative Agent and/or the Banks for purposes of or in
connection with this Agreement or any transaction contemplated hereby
(including, without limitation, the Compliance Certificate delivered to the
Administrative Agent for the Fiscal Quarter ended March 31, 2001) do and will
present fairly, in all material respects, the financial condition of the Nexstar
Entities involved as of the dates thereof and the results of their operations
for the period(s) covered thereby, and all such balance sheets, statements of
operations and other financial statements have been prepared in accordance with
GAAP (subject, in the case of interim financial statements, to normal year-end
adjustments and the absence of complete footnote disclosure). No Nexstar Entity
has any material Guarantee Obligation, contingent liability or liability for
taxes, or any long-term lease or unusual forward or long-term commitment,
including, without limitation, any interest rate or foreign currency swap or
exchange transaction, which is not reflected in its financial statements or in
the schedules or notes thereto and which would be required by GAAP to be
disclosed therein (or in the notes and schedules thereto). Since March 31, 2001,
there has been no development or event which has had or could reasonably be
expected to have a Material Adverse Effect.
6.12 Securities Law, etc.; Compliance. All transactions contemplated
by this Agreement and the other Loan Documents comply in all material respects
with (a) Regulations T, U and X of the Federal Reserve Board and (b) all other
applicable laws and any rules and regulations thereunder, except where the
failure to comply, in the case of this clause (b), could not reasonably be
expected to have a Material Adverse Effect.
6.13 Governmental Regulation. No Nexstar Entity is an "investment
company" within the meaning of the Investment Company Act of 1940 or a "holding
company," or a "subsidiary company" of a "holding company," or an "affiliate" of
a "holding company" or of a "subsidiary company" of a "holding company," within
the meaning of the Public Utility Holding Company Act of 1935. No Nexstar Entity
is subject to regulation under any other federal or state statute or regulation
which limits its ability to incur Indebtedness or Guaranty Obligations under
this Agreement or any other Loan Document.
6.14 Accuracy of Information. All factual information (excluding, in
any event, financial projections) heretofore or contemporaneously herewith
furnished by or on behalf
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of any Nexstar Entity in writing to the Administrative Agent or any Bank for
purposes of or in connection with this Agreement or any transaction contemplated
hereby, and all other such factual information hereafter furnished by or on
behalf of any Nexstar Entity to the Administrative Agent or any Bank will be,
true and accurate in every material respect on the date as of which such
information is dated or certified and not incomplete by omitting to state any
material fact necessary to make such information, in the light of the
circumstances existing at the time such information was delivered, not
misleading.
6.15 Hazardous Materials. No Nexstar Entity has caused or permitted
any Hazardous Material to be disposed of or otherwise released, to its best
knowledge, either from, on or under any property currently or formerly legally
or beneficially owned or operated by, or otherwise used by such Nexstar Entity,
in any manner which has had or is reasonably likely to have, a Material Adverse
Effect. To the best knowledge of each Nexstar Entity, no such property has ever
been used as a dump site or storage site for any Hazardous Materials or
otherwise contains or contained Hazardous Materials which has had or is
reasonably likely to have, a Material Adverse Effect. The failure, if any, of
any Nexstar Entity, in connection with their current and former properties or
their businesses, to be in compliance with any Environmental Law or to obtain
any permit, certificate, license, approval and other authorization under such
Environmental Laws has not had, and is not reasonably expected to have, a
Material Adverse Effect. No Nexstar Entity has entered into, has agreed to or is
subject to any judgment, decree or order or other similar requirement of any
Governmental Authority under any Environmental Law, including without
limitation, relating to compliance or to investigation, cleanup, remediation or
removal of Hazardous Materials, which has had, or is reasonably expected to
have, a Material Adverse Effect. No Nexstar Entity has contractually assumed any
liabilities or obligations under any Environmental Law which has had, or is
reasonably expected to have, a Material Adverse Effect. There are no facts or
circumstances which exist that could give rise to liabilities with respect to
Hazardous Materials or any Environmental Law, which has had, or is reasonably
expected to have, a Material Adverse Effect.
6.16 FCC Licenses.
(a) Each Nexstar Entity holds such validly issued FCC licenses
and authorizations as are necessary to operate their respective Stations
as they are currently operated (collectively, the "FCC Licenses"), and
each such FCC License is in full force and effect. The FCC Licenses of
each Nexstar Entity as of the Effective Date are listed on Schedule 6.16,
and each of such FCC Licenses has the expiration date indicated on
Schedule 6.16.
(b) No Nexstar Entity has knowledge of any condition imposed
by the FCC as part of any FCC License which is neither set forth on the
face thereof as issued by the FCC nor contained in the rules and
regulations of the FCC applicable generally to stations of the type,
nature, class or location of the Station in question. Each Station has
been and is being operated in all material respects in accordance with the
terms and conditions of the FCC Licenses applicable to it and the rules
and regulations of the FCC and the Communications Act of 1934, as amended
(the "Communications Act").
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(c) No proceedings are pending or are threatened which may
result in the revocation, modification, non-renewal or suspension of any
of the FCC Licenses, the denial of any pending applications, the issuance
of any cease and desist order or the imposition of any fines, forfeitures
or other administrative actions by the FCC with respect to any Station or
its operation, other than any matters which, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse
Effect and proceedings affecting the television broadcasting industry in
general.
(d) All reports, applications and other documents required to
be filed by the Nexstar Entities with the FCC with respect to the Stations
have been timely filed, and all such reports, applications and documents
are true, correct and complete in all respects, except where the failure
to make such timely filing or any inaccuracy therein could not reasonably
be expected to have a Material Adverse Effect, and no Nexstar Entity has
knowledge of any matters which could reasonably be expected to result in
the suspension or revocation of or the refusal to renew any of the FCC
Licenses or the imposition on any Nexstar Entity of any material fines or
forfeitures by the FCC, or which could reasonably be expected to result in
the revocation, rescission, reversal or modification of any Station's
authorization to operate as currently authorized under the Communications
Act and the policies, rules and regulations of the FCC.
(e) There are no unsatisfied or otherwise outstanding
citations issued by the FCC with respect to any Station or its operations.
The Borrower has delivered to the Banks true and complete copies of all
FCC Licenses (including any and all amendments and other modifications
thereto), all pending applications relating thereto and all orders and
other documents issued by the FCC authorizing the Midwest Acquisition.
6.17 Subsidiaries; Capital Stock of Nexstar Finance Holdings. No
Nexstar Entity has any Subsidiaries except, on the date hereof, those
Subsidiaries which are identified in Schedule 6.17 and, thereafter, those
Subsidiaries identified as to be formed or acquired in Schedule 6.17 or in any
Guaranty Supplement and those Subsidiaries permitted to be formed or acquired in
compliance with the terms hereof. As of the date hereof, each of the Nexstar
Entities identified in Schedule 6.17 as owning Capital Stock of Nexstar Finance
Holdings owns and holds directly the Capital Stock of Nexstar Finance Holdings
indicated in Schedule 6.17. The Capital Stock of the Holding Company held by
such Nexstar Entities collectively constitutes all of the issued and outstanding
Capital Stock of the Holding Company and, if the New Holding Company is the
Holding Company, then the New Holding Company owns 100% of the Capital Stock of
Nexstar Finance Holdings, in each case other than the Permitted Holdings
Preferred Equity, the Permitted Permanent Holdings Preferred Equity and any
other Capital Stock of the Holding Company issued or transferred to any other
Wholly-Owned Subsidiary of the Ultimate Parent.
6.18 Solvency. As of the date on which this representation and
warranty is made or deemed made, each Nexstar Entity is Solvent on a
consolidated and consolidating basis, both before and after giving effect to any
transaction with respect to which this representation
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and warranty is being made and to the incurrence of all Indebtedness, Guarantee
Obligations and other obligations incurred on such date in connection herewith
and therewith.
6.19 Labor Controversies. There are no labor controversies pending
or, to the best knowledge of each Nexstar Entity, threatened against any Nexstar
Entity which could reasonably be expected to have a Material Adverse Effect.
6.20 Security Documents.
(a) The Pledge and Security Agreement is effective to create
in favor of the Collateral Agent, for the benefit of the Banks, a legal,
valid and enforceable security interest in the Pledged Collateral and,
when the requirements of Section 4 of the Pledge and Security Agreement
have been satisfied, the Pledge and Security Agreement shall constitute a
fully perfected first priority Lien on, and security interest in, all
right, title and interest of the pledgor or pledgors thereunder in such
Pledged Collateral and the proceeds thereof, in each case prior and
superior in right to any other Person.
(b) The Security Agreement is effective to create in favor of
the Collateral Agent, for the benefit of the Banks, a legal, valid and
enforceable security interest in the Security Agreement Collateral and
proceeds thereof and, when financing statements in appropriate form are
filed in the appropriate governmental offices, the Security Agreement
shall constitute a fully perfected Lien on, and security interest in, all
right, title and interest of the grantor or grantors thereunder in such
Collateral and the proceeds thereof, in each case prior and superior in
right to any other Person, other than with respect to the rights of
Persons pursuant to Permitted Liens.
6.21 Network Affiliation Agreements. Set forth on Schedule 6.21
hereto is a list of each effective Network Affiliation Agreement and the
expiration date therefor.
6.22 Condition of Stations. All of the material properties,
equipment and systems of each Nexstar Entity and the Stations are, and all
material properties, equipment and systems to be added in connection with any
contemplated Station expansion or construction will be, in condition which is
sufficient for the operation thereof in accordance with past practice of the
Station in question and are and will be in compliance with all applicable
standards, rules or requirements imposed by (a) any governmental agency or
authority including without limitation the FCC and (b) any FCC License, in each
case except where such noncompliance could not reasonably be expected to have a
Material Adverse Effect.
6.23 Special Purpose Entities. The Parent Guarantors engage in no
business activities (other than as contemplated by this Agreement), and have (a)
no significant assets other than debt and equity securities of their respective
Subsidiaries or (b) liabilities other than (i) those liabilities permitted under
this Agreement and the other Loan Documents to which they are each respectively
a party, (ii) the Management Loan Guaranty, (iii) the Nexstar Guaranty of
Bastet/Mission Obligations, (iv) the Management Agreement, (v) the Holdings
Subordinated Convertible Promissory Notes (vi) the Parent Subordinated
Convertible Promissory Notes and (vii) liabilities for the payment of taxes.
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ARTICLE VII.
AFFIRMATIVE COVENANTS
The Borrower and each Parent Guarantor agrees with the
Administrative Agent and each Bank that, until all Commitments and Letters of
Credit have terminated and all Obligations (other than indemnities for which no
request for payment has been made) have been paid and performed in full:
7.01 Financial Statements. The Borrower shall deliver to the
Administrative Agent, in form and detail satisfactory to the Administrative
Agent and the Majority Banks, and with sufficient copies for each Bank:
(a) as soon as available, but not later than 90 days after the
end of each Fiscal Year, a copy of the audited consolidated balance sheet
of the Ultimate Parent and its consolidated Subsidiaries and of the
Borrower and its consolidated subsidiaries as at the end of such Fiscal
Year and the related consolidated statements of income or operations,
members' equity and cash flows for such Fiscal Year, setting forth in each
case in comparative form the figures for the previous Fiscal Year, and
accompanied by the opinion of PricewaterhouseCoopers LLP or another
nationally-recognized independent public accounting firm which report
shall state that such consolidated financial statements present fairly, in
all material respects, the financial position for the periods indicated in
conformity with GAAP applied on a basis consistent with prior years
(except for changes agreed upon by the Ultimate Parent and/or the
Borrower, on the one hand, and such auditors, on the other hand, which are
disclosed and described in such statements); such opinion shall not be
qualified or limited because of a restricted or limited examination by
such accountant of any material portion of the records of the Ultimate
Parent, the Borrower or any of their respective Subsidiaries;
(b) as soon as available, but not later than 45 days after the
end of each of the first three Fiscal Quarters of each Fiscal Year, a copy
of the unaudited consolidated balance sheet of the Ultimate Parent and its
Subsidiaries and of the Borrower and its Subsidiaries as of the end of
each such Fiscal Quarter and the related consolidated statements of
income, members' equity and cash flows for the period commencing on the
first day and ending on the last day of such Fiscal Quarter, and certified
to by a Responsible Officer of the Ultimate Parent and of the Borrower as
being complete and correct and fairly presenting in all material respects,
in accordance with GAAP (except for the absence of footnotes and subject
to normal year-end adjustments), the financial position and the results of
operations of the Ultimate Parent and its Subsidiaries and of the Borrower
and its Subsidiaries; and
(c) as soon as available, but not later than 30 days after the
end of each month, a copy of the unaudited consolidated balance sheet of
the Ultimate Parent and its consolidated Subsidiaries and the Borrower and
its consolidated Subsidiaries as of the end of such month and the related
statements of income, members' equity and cash flows for the period
commencing on the first day and ending on the last day of such month, and
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certified by a Responsible Officer of the Ultimate Parent and the Borrower
as being complete and correct and fairly presenting in all material
respects, in accordance with GAAP (except for the absence of footnotes and
subject to normal year-end adjustments), the financial position and the
results of operations of the Ultimate Parent and its consolidated
Subsidiaries and the Borrower and its consolidated Subsidiaries.
7.02 Certificates; Other Information. The Borrower shall furnish to
the Administrative Agent, with sufficient copies for each Bank:
(a) concurrently with the delivery of the financial statements
referred to in Sections 7.01(a) and (b), a Compliance Certificate duly
executed by a Responsible Officer of the Ultimate Parent and the Borrower;
(b) promptly after the same are sent, copies of all financial
statements and reports which any Nexstar Entity sends to its shareholders,
partners or members; and promptly after the same are filed, copies of all
financial statements and regular, periodical or special reports which any
Nexstar Entity may make to, or file with, the Securities and Exchange
Commission, other than filings on Form 11-K and S-8; and
(c) promptly, such additional business, financial and other
information with respect to the Ultimate Parent, the Borrower or any of
their respective Subsidiaries as the Administrative Agent, at the request
of any Bank, may from time to time reasonably request.
7.03 Notices. The Borrower shall, upon any Responsible Officer of
any Nexstar Entity obtaining knowledge thereof, give notice (accompanied by a
reasonably detailed explanation with respect thereto) promptly to the
Administrative Agent, the Issuing Bank and each Bank of:
(a) the occurrence of any Default or Event of Default;
(b) any litigation, arbitration, or governmental investigation
or proceeding not previously disclosed by the Borrower to the Banks which
has been instituted or, to the knowledge of any Nexstar Entity, is
threatened against any Nexstar Entity or to which any of their respective
properties is subject (i) which could reasonably be expected to have a
Material Adverse Effect or (ii) which relates to this Agreement, any other
Loan Document or any of the transactions contemplated hereby;
(c) any development which shall occur in any litigation,
arbitration, or governmental investigation or proceeding previously
disclosed by any Nexstar Entity to the Banks which could reasonably be
expected to have a Material Adverse Effect; or (d) any of the following
events affecting any Nexstar Entity or any ERISA Affiliate (but in no
event more than ten days after such event), together with a copy of any
notice with respect to such event that may be required to be filed with a
(d) any of the following events affecting any Nexstar Entity
or any ERISA Affiliate (but in no event more than ten days after such
event), together with a copy of any notice with respect to such event that
may be required to be filed with a Governmental Authority and any notice
delivered by a Governmental Authority to any Nexstar Entity or any ERISA
Affiliate with respect to such event:
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(i) an ERISA Event; or
(ii) if any of the representations and warranties in
Section 6.07 ceases to be true and correct.
7.04 FCC Information. As soon as possible and in any event within
five days after the receipt by any Nexstar Entity from the FCC or any other
Governmental Authority or filing or receipt thereof by any Nexstar Entity,
provide to the Banks (a) any citation, notice of violation or order to show
cause issued by the FCC or any Governmental Authority with respect to any
Nexstar Entity which is available to any Nexstar Entity, in each case which
could reasonably be expected to have a Material Adverse Effect and (b) if
applicable, a copy of any notice or application by any Nexstar Entity requesting
authority to or notifying the FCC of its intent to cease broadcasting on any
broadcast station for any period in excess of ten days.
7.05 FCC Licenses and Regulatory Compliance. The Parent Guarantors
and the Borrower shall, and shall cause each of their respective Subsidiaries
to, comply in all material respects with all terms and conditions of all FCC
Licenses covering the Stations, all Federal, state and local laws, all rules,
regulations and administrative orders of the FCC and all state and local
commissions or authorities which are applicable to the Parent Guarantors, the
Borrower and/or their respective Subsidiaries or the operation of the Stations
of any Nexstar Entity.
7.06 License Lapse. As soon as possible and in any event within five
days after the receipt thereof by any Nexstar Entity, the Borrower will give the
Banks notice of any lapse, termination or relinquishment of any material
License, permit or other authorization from the FCC or other Governmental
Authority held by any Nexstar Entity or any failure of the FCC or other
Governmental Authority to renew or extend any such License, permit or other
authorization for the usual period thereof and of any complaint or other matter
filed with or communicated to the FCC or other Governmental Authority, of which
any Nexstar Entity has knowledge and in any such case which could reasonably be
expected to have a Material Adverse Effect.
7.07 Maintenance of Corporate, Limited Liability Company or
Partnership Existence, etc. The Parent Guarantors and the Borrower shall, and
shall cause each of their respective Subsidiaries to, cause to be done at all
times all things necessary to maintain and preserve the corporate, limited
liability company or partnership existence, as the case may be, of each Nexstar
Entity except to the extent otherwise permitted pursuant to Section 8.04. Each
of the Nexstar Entities will continue to own and hold directly all of the
outstanding shares of Capital Stock of their respective Subsidiaries, and each
of the Parent Guarantors that collectively own all of the issued and outstanding
Capital Stock of the Holding Company, other than Permitted Holdings Preferred
Equity and Permitted Permanent Holdings Preferred Equity, will continue to own
and hold directly all of such Capital Stock of the Holding Company, in each case
as set forth on Schedule 6.17, except as otherwise permitted pursuant to Section
8.04. If the Holding Company is the New Holding Company, then the New Holding
Company will continue to own and hold directly all of the Capital Stock of
Nexstar Finance Holdings, other than Permitted Holdings Preferred Equity and
Permitted Permanent Holdings Preferred Equity.
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7.08 Foreign Qualification, etc. The Parent Guarantors and the
Borrower will, and will cause each of their respective Subsidiaries to, cause to
be done at all times all things necessary to maintain and preserve the rights
and franchises of the Parent Guarantors, the Borrower and their respective
Subsidiaries to be duly qualified to do business and be in good standing as a
foreign corporation in each jurisdiction where the nature of its business makes
such qualification necessary and where the failure to maintain and preserve or
so qualify could reasonably be expected to have a Material Adverse Effect.
7.09 Payment of Taxes, etc. The Parent Guarantors and the Borrower
will, and will cause each of their respective Subsidiaries to, pay and
discharge, as the same may become due and payable, all federal and material
state and local taxes, assessments, and other governmental charges or levies
against or on any of the income, profits or property of a Nexstar Entity, as
well as material claims of any kind which, if unpaid, might become a Lien upon a
Nexstar Entity's properties, and will pay (before they become delinquent) all
other material obligations and liabilities; provided, however, that the
foregoing shall not require the Parent, Guarantors, the Borrower or any of their
respective Subsidiaries to pay or discharge any such tax, assessment, charge,
levy, lien, obligation or liability so long as such Nexstar Entity shall contest
the validity thereof in good faith by appropriate proceedings and shall set
aside on its books adequate reserves in accordance with GAAP.
7.10 Maintenance of Property; Insurance. The Parent Guarantors and
the Borrower will, and will cause each of their respective Subsidiaries to, keep
all of the material property and facilities that are useful and necessary in the
business of the Nexstar Entities in such condition as is sufficient for the
operation of such business in the ordinary course and will maintain, and cause
each of their respective Subsidiaries to maintain, such insurance as may be
required by law and such other insurance, to such extent and against such
hazards and liabilities, as is customarily maintained by companies similarly
situated to the Nexstar Entities.
7.11 Compliance with Laws, etc. The Parent Guarantors and the
Borrower will, and will cause each of their respective Subsidiaries to, comply
with the Requirements of Law of any Governmental Authority, the noncompliance
with which could reasonably be expected to have a Material Adverse Effect.
7.12 Books and Records. The Parent Guarantors and the Borrower will,
and will cause each of their respective Subsidiaries to, keep proper books and
records reflecting all of their business affairs and transactions in accordance
with GAAP. Each of the Parent Guarantors and the Borrower will, and will cause
each of their respective Subsidiaries to, permit the Administrative Agent or,
after the occurrence and during the continuance of any Default or Event of
Default under Section 9.01, any Bank, or any of their respective representatives
or agents, upon reasonable notice and at reasonable times and intervals during
ordinary business hours (or at any time if an Event of Default has occurred and
is continuing), to visit all of their offices, discuss their financial matters
with their officers and, subject to the right of representatives of the Nexstar
Entities to be present, independent accountants (and hereby authorizes such
independent accountants to discuss their financial matters with the
Administrative Agent, any Bank or its representatives pursuant to the foregoing)
and examine and make abstracts or photocopies from any of their books or other
corporate records, all at the
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Borrower's expense for any charges imposed by such accountants or for making
such abstracts or photocopies, but otherwise at the Administrative Agent's or
such Bank's expense.
7.13 Use of Proceeds. The Borrower shall use, or cause its
Subsidiaries to use, the proceeds of the Loans (a) to refinance the Indebtedness
outstanding under the Existing Credit Agreement and to pay related transaction
costs, (b) to finance acquisitions permitted under this Agreement, and (c) for
capital expenditures, working capital and other general corporate requirements
of the Borrower and its Subsidiaries.
7.14 End of Fiscal Years; Fiscal Quarters. The Parent Guarantors and
the Borrower will, for financial reporting purposes, cause (a) its and each of
their respective Subsidiaries' Fiscal Years to end on December 31 of each year
and (b) its and each of their respective Subsidiaries' Fiscal Quarters to end on
March 31, June 31, September 30 and December 31 of each year.
7.15 Interest Rate Protection. The Borrower shall maintain such
Interest Rate Protection Agreements as are necessary so as to provide, through
and including December 7, 2002, that at least 50% of the principal amount of the
sum of all Indebtedness for borrowed money of the Borrower and its Subsidiaries
plus all outstanding Bastet/Mission Loans is subject to either a fixed interest
rate or interest rate protection.
7.16 Additional Security; Further Assurances.
(a) The Parent Guarantors and the Borrower will, and will
cause each of their respective Subsidiaries to, grant to the Collateral
Agent, for the benefit of the Banks, security interests and mortgages in
such assets and properties of the Nexstar Entities as are not covered by
the Security Documents, and as may be requested from time to time by the
Administrative Agent or the Majority Banks (collectively, the "Additional
Security Documents"). All such security interests and mortgages shall be
granted pursuant to documentation reasonably satisfactory in form and
substance to the Administrative Agent and the Borrower and shall
constitute valid and enforceable perfected security interests and
mortgages superior to and prior to the rights of all third Persons and
shall be subject to no Liens except for Permitted Liens. The Additional
Security Documents or instruments related thereto shall be duly recorded
or filed in such manner and in such places as are required by law to
establish, perfect, preserve and protect the Liens in favor of the
Collateral Agent required to be granted pursuant to the Additional
Security Documents and all taxes, fees and other charges payable in
connection therewith shall be paid in full.
(b) The Parent Guarantors and the Borrower will, and will
cause each of their respective Subsidiaries to, at the expense of the
Borrower, make, execute, endorse, acknowledge, file and/or deliver to the
Collateral Agent from time to time such vouchers, invoices, schedules,
confirmatory assignments, conveyances, financing statements, transfer
endorsements, powers of attorney, certificates, real property surveys,
reports and other assurances or instruments and take such further steps
relating to the collateral covered by any of the Security Documents or any
Additional Security Documents as the Collateral Agent may reasonably
require and as are reasonably
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satisfactory to the Borrower. Furthermore, the Borrower shall cause to be
delivered to the Collateral Agent such opinions of counsel, title
insurance and other related documents as may be reasonably requested by
the Collateral Agent to assure itself that this Section 7.16 has been
complied with.
(c) If at any time any Parent Guarantor or the Borrower
acquires any additional Subsidiary (including by reason of the formation
of the New Holding Company), such Parent Guarantor and/or the Borrower, as
applicable, will promptly notify the Administrative Agent thereof and
cause such Subsidiary to execute and deliver appropriate Guaranty
Supplements, a Joinder to Security Agreement and a Joinder to Pledge and
Security Agreement.
(d) If the Administrative Agent or the Majority Banks
determine that they or any of them are required by law or regulation to
have appraisals prepared in respect of any Real Property of the Nexstar
Entities constituting Collateral, the Borrower shall provide to the
Administrative Agent appraisals which satisfy the applicable requirements
of the Real Estate Appraisal Reform Amendments of the Financial
Institution Reform, Recovery and Enforcement Act of 1989 and which shall
be in form and substance reasonably satisfactory to the Administrative
Agent.
(e) The Parent Guarantors and the Borrower agree that each
action required above by this Section 7.16 shall be completed as soon as
possible, but in no event later than 90 days after such action is either
requested to be taken by the Administrative Agent or the Majority Banks or
required to be taken by the applicable Nexstar Entity pursuant to the
terms of this Section 7.16; provided that in no event shall any Nexstar
Entity be required to take any action, other than using its reasonable
efforts, to obtain consents from third parties with respect to its
compliance with this Section 7.16.
ARTICLE VIII.
NEGATIVE COVENANTS
The Borrower and each Parent Guarantor agrees with the
Administrative Agent and each Bank that, until all Commitments and Letters of
Credit have terminated and all Obligations (other than indemnities for which no
request for payment has been made) have been paid and performed in full:
8.01 Changes in Business. The Parent Guarantors and the Borrower
will not, and will not cause or permit any of their respective Subsidiaries to,
directly or indirectly, alter in a fundamental and substantial manner the
character of the Television Broadcasting Business of the Nexstar Entities, taken
as a whole, from that conducted immediately following the Effective Date.
8.02 Limitation on Liens. The Parent Guarantors and the Borrower
will not, and will not permit any of their respective Subsidiaries to, create,
incur, assume, or suffer to exist any Lien upon any of their respective
revenues, property (including fixed assets, inventory, Real
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Property, intangible rights and Capital Stock) or other assets, whether now
owned or hereafter acquired, other than the following ("Permitted Liens"):
(a) Liens which were granted prior to the Effective Date
securing Indebtedness or other obligations in an aggregate principal (or
face amount) for all Nexstar Entities not to exceed $2,500,000, and
refinancings, renewals and extensions thereof to the extent not
encumbering additional property;
(b) Liens for taxes, assessments or other governmental charges
or levies to the extent that payment thereof shall not at the time be
required to be made in accordance with the provisions of Section 7.09;
(c) Liens encumbering property of any Nexstar Entity
consisting of carriers, warehousemen, mechanics, materialmen, repairmen
and landlords and other Liens arising by operation of law and incurred in
the ordinary course of business for sums which are not overdue or which
are being contested in good faith by appropriate proceedings and (if so
contested) for which appropriate reserves with respect thereto have been
established and maintained on the books of such Nexstar Entity in
accordance with GAAP;
(d) Liens encumbering property of any Nexstar Entity incurred
in the ordinary course of business (i) in connection with workers'
compensation, unemployment insurance, or other forms of governmental
insurance or benefits, or to secure performance of bids, tenders,
statutory obligations, leases, and contracts (other than for Indebtedness)
entered into in the ordinary course of business of such Nexstar Entity or
(ii) to secure obligations on surety, performance or appeal bonds so long
as the obligations secured by Liens under this clause (ii) do not exceed
$2,500,000 in the aggregate at any time outstanding for all Nexstar
Entities;
(e) easements, rights-of-way, reservations, permits,
servitudes, zoning and similar restrictions and other similar encumbrances
or title defects (i) described in the Mortgage Policies or (ii) which, in
the aggregate, are not substantial in amount, and which do not in any case
materially detract from the value of the property subject thereto or
interfere with the ordinary conduct of the business of any Nexstar Entity;
(f) judgment Liens securing amounts not in excess of (i)
$2,500,000 and (x) in existence less than 30 days after the entry thereof,
(y) with respect to which execution has been stayed or (z) with respect to
which the appropriate insurance carrier has agreed in writing that there
is coverage by insurance or (ii) $2,500,000 in the aggregate at any time
outstanding for all Nexstar Entities;
(g) Liens securing documentary letters of credit; provided
such Liens attach only to the property or goods to which such letter of
credit relates;
(h) purchase money security interests encumbering, or Liens
otherwise encumbering at the time of the acquisition thereof by the
Borrower or its Subsidiaries, (i) Real Property, provided that such
security interests and Liens do not secure amounts
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in excess of $2,500,000 in the aggregate at any time outstanding for the
Borrower and its Subsidiaries and (ii) equipment, furniture, machinery or
other assets hereafter acquired by the Borrower or its Subsidiaries for
normal business purposes, and refinancings, renewals and extensions of
such security interests and Liens, provided that such security interests
and Liens do not secure amounts in excess of $3,500,000 in the aggregate
at any time outstanding for the Borrower and its Subsidiaries;
(i) interests in Leaseholds under which a Nexstar Entity is a
lessor, provided such Leaseholds are otherwise not prohibited by the terms
of this Agreement;
(j) bankers' Liens in respect of deposit accounts;
(k) Liens created by the Security Documents;
(l) Liens represented by the escrow of cash or Cash
Equivalents, and the earnings thereon, securing the obligations of the
Borrower or any of its Subsidiaries under any agreement to acquire, or
pursuant to which it acquired, Reinvestment Assets in accordance with this
Agreement or other assets which it is permitted to acquire pursuant to
Section 8.04 or securing the obligations of the Borrower or any of its
Subsidiaries to the seller of the property under any agreement pursuant to
which the Borrower or any of its Subsidiaries may acquire Reinvestment
Assets in accordance with this Agreement or other assets which the
Borrower or its Subsidiaries are permitted to acquire pursuant to Section
8.04; and
(m) other Liens, so long as the obligations secured thereby do
not exceed $1,000,000 in the aggregate (for all Nexstar Entities) at any
time outstanding.
8.03 Disposition of Assets. The Parent Guarantors and the Borrower
will not, and will not suffer or permit any of their respective Subsidiaries to,
directly or indirectly, make any Disposition or enter into any agreement to make
any Disposition, except:
(a) any Nexstar Entity may make and agree to make Dispositions
to Wholly-Owned Subsidiaries of the Borrower or the Borrower after prior
written notice to the Administrative Agent describing the Disposition and
compliance by the transferee with the applicable terms of the Security
Documents;
(b) so long as no Default or Event of Default exists both
before and after giving effect thereto, the Borrower or any Subsidiary of
the Borrower may agree to and make Dispositions of Stations or the Capital
Stock of any Subsidiary of the Borrower so long as (i) the aggregate
amount received for all such Dispositions does not exceed $20,000,000 in
any Fiscal Year or $40,000,000 in the aggregate occurring on or after the
Effective Date until the date the Obligations have been paid in full and
the Commitments have been terminated, and (ii) at least 10 Business Days
prior to the consummation of any proposed Disposition, the Borrower shall
have delivered to the Administrative Agent (A) a certificate signed by a
Responsible Officer of the Borrower, which certificate shall contain (x)
financial projections of the Borrower and its Subsidiaries attached to
such certificate which have been prepared on a Pro Forma Basis (giving
effect to the
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consummation of such Disposition) for the period from the proposed date of
the consummation of any proposed Disposition to the Stated Maturity Date
of the latest to mature of the Term Loans demonstrating compliance for
such period with the covenants set forth in Section 8.09, (y) a
certification to the Administrative Agent and the Banks that all
representations and warranties set forth in this Agreement and the other
Loan Documents are true and correct as of such date and will be true and
correct both before and after giving effect to such Disposition and (z) a
certification that no Default or Event of Default exists both before and
after giving effect to such Disposition and (B) a Pro Forma Compliance
Certificate of the Borrower for the then applicable Measurement Period
giving effect to the consummation of such Disposition;
(c) Dispositions permitted by Section 8.04(c) and (d);
(d) Dispositions of cash or Cash Equivalents, unless otherwise
prohibited under this Agreement or the other Loan Documents;
(e) Dispositions permitted under Section 8.13; and
(f) Dispositions consisting of Sale and Leaseback Transactions
effected with the prior written consent of the Administrative Agent and
the Majority Banks.
8.04 Consolidations, Mergers, Acquisitions, etc. The Parent
Guarantors and the Borrower will not, and will not suffer or permit any of their
respective Subsidiaries to, wind up, liquidate or dissolve themselves,
consolidate or amalgamate with or merge into or with any other Person, or
purchase or otherwise acquire (or enter into any agreement to purchase or
otherwise acquire) any television broadcasting station or any Person, or all or
substantially all of the assets of any Person (or of any principal line of
business or division thereof) or convey, sell, transfer, lease or otherwise
dispose of all or substantially all of their respective assets, either in one
transaction or a series of related transactions, to any other Person or Persons,
except:
(a) so long as no Default or Event of Default exists both
before and after giving effect thereto, the Parent Guarantors, the
Borrower and their respective Subsidiaries may make Dispositions permitted
under Section 8.03;
(b) so long as no Default or Event of Default exists both
before and after giving effect thereto, the purchase or acquisition (by
merger, consolidation, acquisition of Capital Stock or assets or
otherwise) by the Borrower or any Wholly-Owned Subsidiary of the Borrower,
after the Effective Date of (i) 100% of the Capital Stock of any Person
primarily engaged in the Television Broadcasting Business, (ii) a
television broadcast station and all related assets necessary to operate
such television broadcast station, or (iii) the entering into by the
Borrower or any of its Wholly-Owned Subsidiaries, after the Effective
Date, of any Local Marketing Agreement, Joint Sales Agreement and/or
Shared Services Agreement with respect to a television broadcasting
station (other than in connection with a Disposition); provided that (A)
the consideration paid in connection with each such transaction or series
of related transactions may not exceed $20,000,000, (B) either (x)
immediately after giving
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effect to such transaction or series of related transactions, the
Consolidated Total Leverage Ratio is less than or equal to 5.00:1.00 or
(y) if the Consolidated Total Leverage Ratio is greater than 5.00:1.00,
the Majority Banks have consented in writing to such transaction or series
of related transactions prior to the consummation thereof, and (C) at
least 10 Business Days prior to the consummation of any such proposed
transaction or series of related transactions, the Borrower shall have
delivered to the Administrative Agent (1) a certificate signed by a
Responsible Officer of the Borrower, certifying (x) compliance with clause
(B) of this proviso and with the other financial covenants contained in
Section 8.09, based on financial projections of the Borrower and its
Subsidiaries attached to such certificate which have been prepared on a
Pro Forma Basis for the period from the date of the consummation of the
proposed purchase or acquisition to the Stated Maturity Date for the
latest to mature of the Term Loans and (y) that no Default or Event of
Default exists or will exist both before and after giving effect to the
consummation of such transaction and (2) a Pro Forma Compliance
Certificate of the Borrower for the then applicable Measurement Period
giving effect to the consummation of such transaction;
(c) any Subsidiary of the Borrower may merge with and into, or
be dissolved or liquidated into, the Borrower so long as (i) the Borrower
is the surviving Person of any such merger, dissolution or liquidation and
(ii) the Borrower complies with the relevant provisions of the Security
Documents to which it is a party so that the security interests granted to
the Collateral Agent pursuant to such Security Documents in the assets of
such merged, dissolved or liquidated Subsidiary so merged shall remain in
full force and effect and perfected (to at least the same extent as in
effect immediately prior to such merger, dissolution or liquidation);
(d) any Subsidiary of the Borrower may merge with and into, or
be dissolved or liquidated into, any Wholly-Owned Subsidiary of the
Borrower so long as (i) such Wholly-Owned Subsidiary of the Borrower is
the surviving corporation of such merger, dissolution or liquidation and
(ii) the acquiring Wholly-Owned Subsidiary complies with the relevant
provisions of the Security Documents to which it is a party so that the
security interests granted to the Collateral Agent pursuant to such
Security Documents in the assets of such merged, dissolved or liquidated
Subsidiary shall remain in full force and effect and perfected (to at
least the same extent as in effect immediately prior to such merger,
dissolution or liquidation); and
(e) the formation or creation of new Subsidiaries of the
Nexstar Entities in accordance with Section 8.11(f).
8.05 Limitation on Indebtedness. The Parent Guarantors and the
Borrower will not, and will not suffer or permit any of their respective
Subsidiaries to, create, incur, issue, assume, suffer to exist, or otherwise
become or remain directly or indirectly liable with respect to, any
Indebtedness, except:
(a) Indebtedness existing on the Effective Date and described
on Schedule 8.05(a) and any refinancings, refundings, renewals or
extensions thereof
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(without increasing, or shortening the maturity of, the principal amount
of such Indebtedness);
(b) Indebtedness incurred pursuant to any Loan Document;
(c) Indebtedness of any Credit Party owing to the Borrower or
any Wholly-Owned Subsidiary of the Borrower, provided that any such
Indebtedness (i) is permitted to be advanced by the Borrower or such
Wholly-Owned Subsidiary pursuant to the provisions of Section 8.11 and
(ii) is not subordinated to any other Indebtedness of the obligor (other
than the Obligations);
(d) Indebtedness of the Borrower and/or its Subsidiaries
secured by Liens permitted by Section 8.02(h);
(e) so long as no Default or Event of Default exists both
before and after giving effect to the incurrence thereof, (i) Permitted
Borrower Unsecured Indebtedness in an aggregate principal amount not to
exceed $5,000,000 outstanding at any time, and (ii) Permitted Seller
Subordinated Indebtedness, in an aggregate principal amount not to exceed
$15,000,000 outstanding at any time, such maximum permitted amount to be
reduced by the aggregate principal amount of "Permitted Seller
Subordinated Indebtedness" (as such term is defined in the Bastet/Mission
Credit Agreement) of any Bastet/Mission Entity outstanding at such time,
provided that prior to the incurrence of any such Indebtedness, the
Borrower shall have delivered to the Administrative Agent (x) a
certificate signed by a Responsible Officer of the Borrower certifying (A)
compliance with each of the financial covenants contained in Section 8.09,
based on financial projections of the Borrower and its Subsidiaries
attached to such certificate which have been prepared on a Pro Forma Basis
for the period from the proposed date of the incurrence of such
Indebtedness to the Stated Maturity Date of the latest to mature of the
Term Loans and (B) that no Default or Event of Default exists or will
exist both before and after giving effect to the incurrence of such
Indebtedness and (y) a Pro Forma Compliance Certificate of the Borrower
prepared as of the date of the incurrence of such Indebtedness, giving
effect to the incurrence of such Indebtedness;
(f) the Existing Holdings Preferred Equity or the Exchange
Equity until the Existing Holdings Preferred Equity or the Exchange Equity
is repurchased or redeemed (and only to the extent the same is not so
repurchased or redeemed) in accordance with Section 8.10(g) or (h);
(g) Interest Rate Protection Agreements required hereunder or
in respect of Indebtedness otherwise permitted hereby so long as such
agreements are not entered into for speculative purposes and the Borrower
is in compliance with Section 7.15 after giving effect thereto;
(h) Capital Lease Obligations and other Indebtedness (other
than Indebtedness for borrowed money) of the Borrower and/or its
Subsidiaries in an amount not to exceed $3,500,000 in the aggregate for
the Borrower and its Subsidiaries at any time outstanding;
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(i) Guaranty Obligations of the Nexstar Entities under the
Nexstar Guaranty of Bastet/Mission Obligations and with respect to
Permitted Seller Subordinated Indebtedness incurred by Bastet/Mission
Entities in accordance with the Bastet/Mission Credit Agreement;
(j) Guaranty Obligations of the Nexstar Entities with respect
to the Management Loan not to exceed an aggregate principal amount of
$3,000,000 (the "Management Loan Guaranty");
(k) so long as no Default or Event of Default exists both
before and after the incurrence thereof, Nexstar Finance Holdings may
incur Permitted Holdings Unsecured Indebtedness and/or sell or issue
Permitted Permanent Holdings Preferred Equity, the New Holding Company may
sell or issue Permitted Permanent Holdings Preferred Equity, and the
Borrower may sell or issue Permitted Borrower Preferred Equity, provided
that concurrently upon receipt thereof, the Net Debt Proceeds and/or Net
Issuance Proceeds, as applicable, therefrom are , first, used to
repurchase or redeem the Permitted Holdings Preferred Equity until the
Permitted Holdings Preferred Equity has been repurchased or redeemed in
full (including the payment by the Borrower of such Dividends out of such
proceeds of Permitted Borrower Preferred Equity, in accordance with
Section 8.10(g), as may be required to effect such repurchase or
redemption) and, thereafter (to the extent any such Net Debt Proceeds
and/or Net Issuance Proceeds remain available), applied in accordance with
Section 2.07(f);
(l) so long as no Default or Event of Default exists both
before and after the sale or issuance thereof, the Ultimate Parent may
sell or issue Permitted Parent Preferred Equity, provided that,
concurrently upon receipt thereof, the Net Issuance Proceeds therefrom
are, first, used to repurchase or redeem the Permitted Holdings Preferred
Equity until the Permitted Holdings Preferred Equity has been repurchased
or redeemed in full and, thereafter (to the extent any such Net Issuance
Proceeds remain available), applied in accordance with Section 2.07(f);
(m) after all of the Permitted Holdings Preferred Equity has
been repurchased or redeemed in full or at any time in connection with a
payment being made pursuant to an ABRY Capital Contribution Agreement, the
New Holding Company and/or Nexstar Finance Holdings may borrow up to an
aggregate principal amount not to exceed $30,000,000 in the aggregate at
any time outstanding from ▇▇▇▇ ▇.▇. II, ▇▇▇▇ ▇.▇. III and/or Sook (or
other Persons exercising preemptive rights in connection with an issuance
of Capital Stock to one or more of them) pursuant to the terms and
conditions of, and as evidenced by, a Parent Subordinated Convertible
Promissory Note (an "Initial Loan"), provided that, concurrently upon
receipt thereof by the New Holding Company, the Net Debt Proceeds from any
Initial Loan are used to make a loan in equal amount to Nexstar Finance
Holdings pursuant to the terms and conditions of, and as evidenced by, a
Holdings Subordinated Convertible Promissory Note; provided further that,
concurrently upon receipt thereof by Nexstar Finance Holdings, the Net
Debt Proceeds from any Initial Loan made to the New Holding Company or any
loan pursuant to the preceding proviso are used to make a loan in equal
amount to the Borrower pursuant to the terms and
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conditions of, and as evidenced by, a Borrower Subordinated Convertible
Promissory Note, provided further that each such loan made pursuant to a
Parent Subordinated Convertible Promissory Note, a Holdings Subordinated
Convertible Promissory Note or a Borrower Subordinated Convertible
Promissory Note shall remain outstanding only until the earlier to occur
of (x) the occurrence of a Default or an Event of Default or (y) the date
which is eighteen months after such loan is made, at which time (i) the
principal amount of (and all accrued and unpaid interest on) each such
Initial Loan to Nexstar Finance Holdings or the New Holding Company will
convert into Capital Stock (that is not Disqualified Stock) of the
Ultimate Parent in accordance with the terms and provisions of the
applicable Parent Subordinated Convertible Promissory Note, the principal
amount of (and all accrued and unpaid interest on) each such loan by the
New Holding Company to Nexstar Finance Holdings will convert into common
equity of Nexstar Finance Holdings in accordance with the terms and
provisions of the applicable Holdings Subordinated Convertible Promissory
Note, and the principal amount of (and all accrued and unpaid interest on)
each such loan by Nexstar Finance Holdings to the Borrower will convert
into common equity of the Borrower in accordance with the terms and
provisions of the applicable Borrower Subordinated Convertible Promissory
Note;
(n) Permitted Borrower Subordinated Indebtedness incurred
prior to the Effective Date;
(o) so long as no Default or Event of Default exists both
before and after giving effect to the incurrence thereof, the Borrower may
incur Permitted Borrower Subordinated Indebtedness, provided that (i)
immediately after giving effect to the incurrence of such Permitted
Borrower Subordinated Indebtedness, the Consolidated Senior Leverage Ratio
is less than or equal to 4.00 to 1.00 and (ii) prior to the date of the
incurrence thereof, the Borrower shall have delivered to the
Administrative Agent (A) a certificate signed by a Responsible Officer of
the Borrower, certifying (x) compliance with clause (i) of this proviso
and with each of the other financial covenants contained in Section 8.09,
based on financial projections of the Borrower and its Subsidiaries
attached to such certificate which have been prepared on a Pro Forma Basis
for the period from the date of the proposed date of the incurrence of
such Permitted Borrower Subordinated Indebtedness (as determined pursuant
to the definition of Pro Forma Basis) to the Stated Maturity Date of the
latest to mature of the Term Loans and (y) that no Default or Event of
Default exists or will exist both before and after giving effect to the
incurrence of such Indebtedness, (B) a Pro Forma Compliance Certificate of
the Borrower prepared as of the date of the incurrence of such
Indebtedness giving effect to the incurrence of such Indebtedness and (C)
concurrently upon receipt thereof, the Net Debt Proceeds therefrom are
applied in accordance with Section 2.07(g);
(p) Intercompany loans from the Ultimate Parent to the Holding
Company which are pledged as security for the Loans and the proceeds of
which (unless to repurchase or redeem Permitted Holdings Preferred Equity
as permitted in this Agreement) are concurrently, upon receipt thereof,
contributed as common equity to the Borrower; and
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(q) Guaranty Obligations of the Ultimate Parent with respect
to the 16% Senior Discount Notes issued May 17, 2001, by Nexstar Finance
Holding in the aggregate principal amount of $36,988,000, pursuant to a
guaranty in the form of contained in the Indenture of even date therewith,
until the earlier of (x) November 30, 2001, and (y) the date the
Indebtedness evidenced by those certain two promissory notes in the
respective face principal amounts of $20,531,402 and $11,355,000, each
dated December 31, 2000 and issued by Nexstar Finance Holdings to the
Ultimate Parent, no longer ranks equal in right of payment to the
Indebtedness evidenced by such 16% Senior Discount Notes.
8.06 Transactions with Affiliates. Other than any Permitted
Affiliate Transaction, the Parent Guarantors and the Borrower will not, and will
not permit any of their respective Subsidiaries to, enter into, or cause,
suffer, or permit to exist:
(a) any arrangement or contract with any of its Affiliates, of
a nature customarily entered into by Persons which are Affiliates of each
other (including arrangements relating to the allocation of revenues,
taxes, and expenses or otherwise) requiring any payments to be made by any
Nexstar Entity to any such Affiliate unless such arrangement or contract
is specifically permitted by this Agreement, is in the ordinary course of
such Person's business and is fair and equitable to such Nexstar Entity;
(b) any other transaction, arrangement, or contract with any
of its Affiliates unless such transaction, arrangement or contract is on
terms which are specifically permitted by this Agreement, is in the
ordinary course of such Person's business and is on terms not less
favorable than are obtainable from any Person which is not one of its
Affiliates; or
(c) any management services agreement other than the Second
Amended and Restated Management Consulting Services Agreement, dated
January 5, 1998, originally entered into between ABRY Partners, Inc. and
Nexstar Broadcasting Group, Inc., as in effect on the Effective Date (the
"Management Agreement").
8.07 Use of Credits; Compliance with Margin Regulations. The Parent
Guarantors and the Borrower will not, and will not suffer or permit any of their
respective Subsidiaries to, use any portion of the proceeds of the Loans or any
Letter of Credit, directly or indirectly, to purchase or carry Margin Stock
other than in compliance with Regulations T, U and X of the Federal Reserve
Board. At no time shall the value of the Margin Stock owned by any Nexstar
Entity (as determined in accordance with Regulation U of the Federal Reserve
Board) exceed 25% of the value (as determined in accordance with Section
221.2(g)(2) of Regulation U of the Federal Reserve Board) of the assets of such
Nexstar Entity.
8.08 Environmental Liabilities. The Parent Guarantors and the
Borrower will not and will not permit any of their respective Subsidiaries to
violate any Environmental Law to an extent sufficient to give rise to a Material
Adverse Effect; and, without limiting the foregoing, the Parent Guarantors and
the Borrower will not, and will not permit any of their respective Subsidiaries
or any other Person to, dispose of any Hazardous Material into or onto, or
(except in
106
accordance with applicable law) from, any Real Property owned, operated or
otherwise used by any Nexstar Entity, or allow any Lien imposed pursuant to any
Environmental Law to be imposed or to remain on such Real Property, in each case
to the extent the same are reasonably likely to have a Material Adverse Effect,
except as contested in reasonable good faith by appropriate proceedings and the
pendency of such proceedings will not have a Material Adverse Effect and except
and unless adequate reserves have been established and are being maintained on
its books in accordance with GAAP.
8.09 Financial Covenants.
(a) Consolidated Total Leverage Ratio. The Consolidated Total
Leverage Ratio shall not at any time during any period set forth below
exceed the ratio set forth opposite such period below:
Period Ratio
--------------------------------------------- ------------
Effective Date through and including
June 29, 2002 6.75 to 1.00
June 30, 2002 through and including
September 29, 2002 6.50 to 1.00
September 30, 2002 through and including
March 30, 2003 6.00 to 1.00
March 31, 2003 through and including
June 29, 2003 5.50 to 1.00
June 30, 2003 through and including
December 30, 2003 5.25 to 1.00
December 31, 2003 through and including
March 30, 2004 5.00 to 1.00
March 31, 2004 through and including
September 29, 2004 4.50 to 1.00
September 30, 2004 and thereafter 4.00 to 1.00
(b) Consolidated Senior Leverage Ratio. The Consolidated
Senior Leverage Ratio shall not at any time during any period set forth
below exceed the ratio set forth opposite such period below:
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Period Ratio
--------------------------------------------- ------------
Effective Date through and including
June 29, 2002 4.00 to 1.00
June 30, 2002 through and including
September 29, 2002 3.75 to 1.00
September 30, 2002 through and including
March 30, 2003 3.50 to 1.00
March 31, 2003 through and including
June 29, 2003 3.00 to 1.00
June 30, 2003 through and including
December 30, 2003 2.75 to 1.00
December 31, 2003 through and including
June 30, 2004 2.50 to 1.00
(c) Consolidated Interest Coverage Ratio. The Consolidated
Interest Coverage Ratio shall not at any time during any period set forth
below be less than the ratio set forth opposite such period below:
Period Ratio
--------------------------------------------- ------------
Effective Date through and including
March 30, 2003 1.50 to 1.00
March 31, 2003 through and including
June 29, 2004 1.75 to 1.00
June 30, 2004 through and including
December 30, 2004 2.00 to 1.00
December 31, 2004 and thereafter 2.25 to 1.00
(d) Pro Forma Debt Service Ratio. The Pro Forma Debt Service
Ratio shall not at any time be less than 1.10:1.00.
(e) Limitation on Capital Expenditures.
The Parent Guarantors and the Borrower will not, and
will not permit any of their respective Subsidiaries to, make any Capital
Expenditures during any Fiscal Year which exceed, in the aggregate for the
Ultimate Parent and its Subsidiaries, $8,000,000. Notwithstanding anything
to the contrary contained in the preceding
108
sentence, (x) in the event the amount of Capital Expenditures permitted to
be made by the Ultimate Parent and its Subsidiaries pursuant to this
Section 8.09(e) in any Fiscal Year (before giving effect to any increase
in such permitted expenditure amount pursuant to this sentence) is greater
than the amount of such Capital Expenditures made by the Ultimate Parent
and its Subsidiaries during such Fiscal Year, such excess may be carried
forward and utilized to make Capital Expenditures in the succeeding Fiscal
Year, and (y) the amount of Capital Expenditures permitted to be made by
the Ultimate Parent and its Subsidiaries during any Fiscal Year shall be
increased by an amount equal to that portion of the proceeds of any
Recovery Event not required to be applied to prepay Loans pursuant to
Section 2.07(c).
(f) Limitation on Film Cash Payments. The Parent Guarantors
and the Borrower will not, and will not permit any of their respective
Subsidiaries to, make any Film Cash Payments during any Fiscal Year which
exceed, in the aggregate for the Ultimate Parent and its Subsidiaries an
amount equal to $10,000,000; provided that such amount shall be increased
by $750,000 for each Station purchased or acquired or with respect to
which a Local Marketing Agreement, Joint Sales Agreement and/or Shared
Services Agreement is consummated pursuant to Section 8.04(b) during the
Fiscal Year in which such acquisition, purchase or consummation occurs and
for each such Station for each Fiscal Year thereafter.
(g) Required Junior Capital. The Parent Guarantors and the
Borrowers will not permit the aggregate total amount of Required Junior
Capital (determined in each case with reference to the Net Issuance
Proceeds or Net Debt Proceeds, as applicable, obtained from the sale or
issuance thereof) outstanding at any time to be less than $50,000,000;
provided that, for purposes of this Section 8.09(g), the Net Issuance
Proceeds of Capital Stock (that is not Disqualified Stock) of the Ultimate
Parent that is issued in exchange for any Indebtedness of the type
described in Section 8.05(m) will be deemed to be equal to the Net Debt
Proceeds of such Indebtedness.
8.10 Restricted Payments. The Parent Guarantors and the Borrower
shall not, and shall not permit any of their respective Subsidiaries to, make
any Restricted Payment, except:
(a) so long as no Default or Event of Default exists both
before and after giving effect to such repurchases, the Ultimate Parent
may repurchase equity interests in the Ultimate Parent from former
employees of the Nexstar Entities in an aggregate amount for all such
repurchases pursuant to this Section 8.10(a) combined not to exceed
$500,000 during any Fiscal Year, and the Subsidiaries of the Ultimate
Parent may authorize, declare and/or pay Dividends to their respective
shareholders, partners or members in the amount necessary to provide the
funds necessary to permit the Ultimate Parent to make such repurchases;
(b) the Ultimate Parent may repurchase equity interests in the
Ultimate Parent from former members of management of any Nexstar Entity so
long as such repurchases are made from, and are equal to or less than the
amount of, any proceeds
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received from any key-man life insurance policy or from capital
contributions made by ▇▇▇▇ ▇.▇. II, ▇▇▇▇ ▇.▇. III and/or Sook (or other
Persons exercising preemptive rights in connection with an issuance of
Capital Stock to any of them) which are not required to be used to prepay
the Loans under Section 2.07(e);
(c) the Subsidiaries of the Borrower may make Restricted
Payments to the Borrower or any Wholly-Owned Subsidiary of the Borrower;
(d) so long as no Default or Event of Default exists both
before and after giving effect to such Dividends and the Borrower and
Nexstar Finance Holdings are each properly treated as a partnership or a
disregarded entity for federal and state income tax purposes for the
relevant taxable year, (i) the Borrower may authorize, declare and pay
Dividends to Nexstar Finance Holdings and Nexstar Finance Holdings and the
other Parent Guarantors may authorize, declare and pay corresponding
Dividends to their respective shareholders, partners or members for the
annual income tax payments of such shareholders, partners or members, not
to exceed $1,450,000 in the aggregate for all tax payments in respect of
Fiscal Year 2000 (and up to 110% of the maximum permitted amount for the
preceding Fiscal Year, during any Fiscal Year thereafter) and (ii) the
Borrower and each Parent Guarantor may authorize, declare and pay
Dividends to their respective shareholders, partners or members, as
applicable, in an amount equal to the taxes, if any, due in connection
with any Disposition made by such distributing Person but in no event in
excess of the amounts received and retained by such distributing Person
(in accordance with this Agreement) in connection with such Disposition;
(e) so long as no Default or Event of Default exists both
before and after giving effect to such Dividends, the Borrower and each
Parent Guarantor may authorize, declare and pay Dividends to their
respective shareholders, partners or members, as applicable, for the
purpose of (i) paying such distributing Person's share of the corporate
overhead expenses of ABRY Partners, LLC or its Affiliates in an aggregate
amount for all such overhead expenses not to exceed $50,000 in any Fiscal
Year, and (ii) the payment of management fees to ABRY Partners, LLC or its
Affiliates, so long as the aggregate amount of all such management fee
payments does not to exceed $75,000 per Station per Fiscal Year and
$300,000 in the aggregate for all Stations per Fiscal Year, in each case
as the amount of such corporate overhead expenses and management fees may
be increased annually based on the consumer price index;
(f) so long as no Default or Event of Default exists both
before and after giving effect to such Dividends, the Borrower may
authorize, declare and pay Dividends to Nexstar Finance Holdings (and
Nexstar Finance Holdings may, in turn, authorize, declare and pay
corresponding Dividends to the New Holding Company, if the New Holding
Company is the issuer of the Permitted Holdings Preferred Equity)
concurrently upon the issuance of Permitted Borrower Subordinated
Indebtedness or on any date which occurs prior to the 90th day after the
occurrence of such issuance, provided that (i) immediately after giving
effect to such Dividends, the Consolidated Senior Leverage Ratio is less
than or equal to 4.00 to 1.00, (ii) the proceeds of such Dividends are
concurrently used by the issuer of the Permitted Holdings Preferred Equity
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to repurchase or redeem the Permitted Holdings Preferred Equity and (iii)
prior to the date of the making of any such Dividends, the Borrower shall
have delivered to the Administrative Agent (A) a certificate signed by a
Responsible Officer of the Borrower, certifying (x) compliance with clause
(i) of this proviso and with each of the other financial covenants
contained in Section 8.09, based on financial projections of the Borrower
and its Subsidiaries attached to such certificate which have been prepared
on a Pro Forma Basis for the period from the proposed date of the making
of such Dividends to the Stated Maturity Date of the latest to mature of
the Term Loans and (y) that no Default or Event of Default exists or will
exist both before and after giving effect to such Dividends and (B) a Pro
Forma Compliance Certificate of the Borrower prepared as of the date of
the making of such Dividends, giving effect to the making of such
Dividends and the repurchase or redemption of the Permitted Holdings
Preferred Equity effected thereby as though such Dividends and repurchase
or redemption had been made on the first day of the applicable Measurement
Period relating to the date such Dividends are to be made;
(g) so long as no Default or Event of Default exists both
before and after the making thereof, (i) the Borrower may authorize,
declare and pay Dividends to Nexstar Finance Holdings out of the Net
Issuance Proceeds of Permitted Borrower Preferred Equity, and Nexstar
Finance Holdings may authorize, declare and pay corresponding Dividends to
the New Holding Company, to the extent necessary to permit the issuer of
the Permitted Holdings Preferred Equity to effect the payments, repurchase
and/or redemption of the Permitted Holdings Preferred Equity described in
clause (ii) below and (ii) the issuer of the Permitted Holdings Preferred
Equity may repurchase or redeem the Permitted Holdings Preferred Equity,
in each case using the proceeds of Permitted Holdings Unsecured
Indebtedness incurred in compliance with Section 8.05(k), Permitted
Permanent Holdings Preferred Equity issued in compliance with Section
8.05(k), equity contributions or intercompany loans made to Nexstar
Finance Holdings from the other Parent Guarantors from the proceeds of any
Capital Stock (other than Disqualified Stock) of the Ultimate Parent or
any Permitted Parent Preferred Equity issued in compliance with Section
8.05(l) and/or Dividends received from the Borrower in compliance with
clause (i) above and/or Section 8.10(f), as applicable;
(h) the issuer of the Permitted Holdings Preferred Equity may
repurchase or redeem the Permitted Holdings Preferred Equity using the
proceeds of equity contributions or intercompany loans made to Nexstar
Finance Holdings or the New Holding Company by the other Parent Guarantors
using the proceeds of equity contributions received by such other Parent
Guarantors, directly or indirectly, from ▇▇▇▇ ▇.▇. II, ▇▇▇▇ ▇.▇. III
and/or Sook (and/or other Persons exercising preemptive rights in
connection with such equity contributions by one or more of them);
(i) so long as no Default or Event of Default exists both
before and after the making thereof, after the fourth anniversary of the
effective date of the Existing Credit Agreement, (i) the Borrower may
authorize, declare and pay Dividends to Nexstar Finance Holdings in the
amount necessary to permit Nexstar Finance Holdings to make payments of
cash interest and/or accreted value which becomes due and payable with
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respect to Permitted Holdings Unsecured Indebtedness and (ii) Nexstar
Finance Holdings may make such cash interest and/or accreted value
payments if, prior to the making of such payments of cash interest and/or
accreted value by Nexstar Finance Holdings, the Borrower shall have
delivered to the Administrative Agent a Pro Forma Compliance Certificate
of the Borrower prepared as of the date of the making of each such
Dividend of the Borrower, giving effect to each such Dividend of the
Borrower and the related payments of cash interest and/or accreted value
to be made by Nexstar Finance Holdings as though each such Dividend of the
Borrower and the related payments of cash interest and/or accreted value
to be made by Nexstar Finance Holdings had been made on the first day of
the applicable Measurement Period relating to the date each such Dividend
by the Borrower is to be made, and otherwise demonstrating that no Default
or Event of Default exists both before and after giving effect to each
such Dividend and related payments of cash interest and/or accreted value;
(j) so long as no Default or Event of Default exists both
before and after the making thereof, after the fourth anniversary of the
effective date of the Existing Credit Agreement, (i) the Borrower may
authorize, declare and pay Dividends to Nexstar Finance Holdings (and
Nexstar Finance Holdings may, in turn, authorize, declare and pay
corresponding Dividends to the New Holding Company, if the New Holding
Company is the issuer of the Permanent Holdings Preferred Equity) in the
amount necessary to permit the issuer of the Permitted Permanent Holdings
Preferred Equity to make payments of cash Dividends which become due and
payable with respect to Permitted Permanent Holdings Preferred Equity and
(ii) the issuer of the Permitted Permanent Holdings Preferred Equity may
make such cash Dividends if, prior to the making of such payments of cash
Dividends by the issuer of the Permitted Permanent Holdings Preferred
Equity, the Borrower shall have delivered to the Administrative Agent a
Pro Forma Compliance Certificate of the Borrower prepared as of the date
of the making of each such Dividend of the Borrower, giving effect to each
such Dividend of the Borrower and the related payments of cash Dividends
to be made by Nexstar Finance Holdings (and the New Holding Company, if
applicable) as though each such Dividend of the Borrower and the related
payments of cash Dividends to be made by Nexstar Finance Holdings (and the
New Holding Company, if applicable) had been made on the first day of the
applicable Measurement Period relating to the date each such Dividend by
the Borrower is to be made, and otherwise demonstrating that no Default or
Event of Default exists both before and after giving effect to each such
Dividend and related payments of cash Dividends;
(k) so long as no Default or Event of Default exists both
before and after the making thereof, after the fourth anniversary of the
effective date of the Existing Credit Agreement, (i) the Borrower may
authorize, declare and pay Dividends to Nexstar Finance Holdings and
Nexstar Finance Holdings may in turn make corresponding Dividends to one
or more of the Ultimate Parent's direct Subsidiaries, and such direct
Subsidiaries of the Ultimate Parent may in turn make corresponding
Dividends to the Ultimate Parent, in each case in the amount necessary to
permit the Ultimate Parent to make payments of cash Dividends which become
due and payable with respect to Permitted Parent Preferred Equity and (ii)
the Ultimate
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Parent may make such cash Dividends if, prior to the making of such
payments of cash Dividends by the Ultimate Parent, the Borrower shall have
delivered to the Administrative Agent a Pro Forma Compliance Certificate
of the Borrower prepared as of the date of the making of each such
Dividend, giving effect to each such Dividend of the Borrower, Nexstar
Finance Holdings and such direct Subsidiaries of the Ultimate Parent and
the related payments of cash Dividends to be made by Nexstar Finance
Holdings, the direct Subsidiaries of the Ultimate Parent and the Ultimate
Parent as though each such Dividend and the related payments of cash
Dividends had been made on the first day of the applicable Measurement
Period relating to the date each such Dividend is to be made, and
otherwise demonstrating that no Default or Event of Default exists both
before and after giving effect to each such Dividend and related payments
of cash Dividends;
(l) so long as no Default or Event of Default exists both
before and after the making thereof, the Borrower may make payments with
respect to Permitted Seller Subordinated Indebtedness if, prior to the
making of each such payment, the Borrower has delivered to the
Administrative Agent a Pro Forma Compliance Certificate of the Borrower
prepared as of the date of the making of each such payment, giving effect
to each such payment as though such payment had been made on the first day
of the applicable Measurement Period relating to the date such payment is
to be made, and otherwise demonstrating that no Default or Event of
Default exists both before and after giving effect to such payment;
(m) so long as no Default or Event of Default exists both
before and after the making thereof, the Borrower may make payments of
cash interest due and payable with respect to Permitted Borrower Unsecured
Indebtedness and Permitted Borrower Subordinated Indebtedness if, prior to
the making of such payments of cash interest, the Borrower has delivered
to the Administrative Agent a Pro Forma Compliance Certificate of the
Borrower prepared as of the date of the making of each such payment of
cash interest, giving effect to each such payment as though such payment
had been made on the first day of the applicable Measurement Period
relating to the date such payment is to be made, and otherwise
demonstrating that no Default or Event of Default exists both before and
after giving effect to such payment of cash interest; and
(n) so long as no Default or Event of Default exists both
before and after the making thereof, (i) the Borrower may authorize,
declare and pay Dividends to Nexstar Finance Holdings and Nexstar Finance
Holdings may in turn make corresponding Dividends to one or more of the
Ultimate Parent's direct Subsidiaries, and such direct Subsidiaries of the
Ultimate Parent may in turn make corresponding Dividends to the Ultimate
Parent, in each case in the amount necessary to permit the Ultimate Parent
to make payments to Nexstar Equity pursuant to the Nexstar Equity
Reimbursement Agreement to reimburse such entity for expenses in
connection with maintaining its corporate existence, filing tax returns,
maintaining directors' and officers' insurance and such other activities
as are deemed necessary by Nexstar Equity's board of directors and agreed
to by the Ultimate Parent, provided, that the aggregate amount of such
Dividends and expenses to be reimbursed by the Ultimate Parent in any
fiscal year
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shall not exceed $40,000, and (ii) the Ultimate Parent may make such
payments to Nexstar Equity.
8.11 Advances, Investments and Loans. The Parent Guarantors and the
Borrower will not, and will not permit their respective Subsidiaries to, lend
money or credit or make advances to any Person, or purchase or acquire any
Capital Stock, obligations or securities of, or any other interest in, or make
any capital contribution to, any Person, or purchase or own a futures contract
or otherwise become liable for the purchase or sale of currency or other
commodities at a future date in the nature of a futures contract, or hold any
cash or Cash Equivalents, except:
(a) the Nexstar Entities may invest in cash and Cash
Equivalents;
(b) the Borrower may enter into Interest Rate Protection
Agreements in compliance with Section 8.05(g);
(c) the Credit Parties may make equity contributions to the
capital of their respective Subsidiaries that are Credit Parties (or to
the Holding Company, in the case of those Parent Guarantors that
collectively own all of the issued and outstanding Capital Stock of the
Holding Company other than Permitted Holdings Preferred Equity and
Permitted Permanent Holdings Preferred Equity);
(d) as permitted pursuant to Section 8.04(b);
(e) advances, loans and investments in existence on the
Effective Date and listed on Schedule 8.11(e) shall be permitted, without
giving effect to any additions thereto or replacements thereof (except
those additions or replacements which are existing obligations as of the
Effective Date);
(f) any Nexstar Entity may establish or create new
Wholly-Owned Subsidiaries (including the New Holding Company, in the case
of the Ultimate Parent) so long as (i) at least 30 days' prior written
notice thereof (or such lesser notice as is acceptable to the
Administrative Agent) is given to the Administrative Agent, (ii) the
Capital Stock of such new Subsidiary is pledged pursuant to, and to the
extent required by, this Agreement and the Pledge and Security Agreement
and the certificates, if any, representing Capital Stock, together with
stock powers duly executed in blank, are delivered to the Collateral
Agent, (iii) such new Subsidiary executes Guaranty Supplements, a Joinder
to Security Agreement and a Joinder to Pledge and Security Agreement, and
(iv) such new Subsidiary, to the extent requested by the Administrative
Agent or the Majority Banks, takes all actions required pursuant to
Section 7.16. In addition, each new Wholly-Owned Subsidiary that is
required to execute any Loan Document shall execute and deliver, or cause
to be executed and delivered, all other relevant documentation of the type
described in Section 5.01 as such new Subsidiary would have had to deliver
if such new Subsidiary were a Credit Party on the Effective Date;
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(g) the Nexstar Entities may make loans and advances to their
respective employees in an aggregate principal amount for all Nexstar
Entities not to exceed $500,000 at any time outstanding plus amounts paid
pursuant to the Management Loan Guaranty;
(h) the Borrower may make intercompany loans and advances to
any Subsidiary of the Borrower which is a Credit Party, the New Holding
Company may make loans to Nexstar Finance Holdings as permitted under
Section 8.05(m) and Nexstar Finance Holdings may make loans to the
Borrower as permitted under Section 8.05(m); and
(i) Indebtedness permitted under Section 8.05(o).
8.12 Limitation on Business Activities of the Nexstar Entities.
(a) The Parent Guarantors shall not engage in any business
activities other than the ownership of Capital Stock of other Parent
Guarantors or the Borrower and shall have no significant assets other than
such Capital Stock or liabilities other than the Indebtedness permitted to
be incurred by them pursuant to Section 8.05 and liabilities for the
payment of taxes.
(b) The Borrower and its Subsidiaries shall not engage in any
business other than the Television Broadcasting Business.
8.13 Sales or Issuances of Capital Stock. The Parent Guarantors and
the Borrower will not, and will not permit any of their respective Subsidiaries
to, sell or issue any of their Capital Stock to any Person; provided that (a)
the Ultimate Parent may sell or issue (i) Permitted Parent Preferred Equity in
accordance with Section 8.05(l) and (ii) other Capital Stock other than
Disqualified Stock, in each case so long as the Net Issuance Proceeds therefrom
are applied as may be required by Section 2.07, (b) any Subsidiary of the
Borrower may sell or issue Capital Stock to the Borrower or a Wholly-Owned
Subsidiary of the Borrower so long as relevant provisions of the Security
Documents and Section 7.16 are complied with in full, (c) any Parent Guarantor
may sell or issue Capital Stock to any Wholly-Owned Subsidiary of the Ultimate
Parent so long as relevant provisions of the Security Documents and Section 7.16
are complied with in full, (d) Nexstar Finance Holdings or the New Holding
Company may sell or issue Permitted Holdings Preferred Equity so long as the Net
Issuance Proceeds therefrom are applied in accordance with Section 8.05(f), and
(e) Nexstar Finance Holdings and the New Holding Company may sell or issue
Permitted Permanent Holdings Preferred Equity, and/or the Borrower may sell or
issue Permitted Borrower Preferred Equity, in each case as permitted by Section
8.05(k), so long as the Net Issuance Proceeds thereof are applied as may be
required by Section 2.07.
8.14 No Waivers or Amendments. The Parent Guarantors and the
Borrower will not, and will not permit any of their respective Subsidiaries to,
(i) permit any waiver, supplement, modification or amendment of the
documentation relating to any Indebtedness of any Credit Party having a
principal balance (or a Guaranty Obligation with respect to Indebtedness having
a principal balance) of more than $500,000 or any indenture or other
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agreement evidencing, creating or governing any of the foregoing Indebtedness,
in each case other than any such amendment, modification or change which (A)
would extend the maturity or reduce the amount of any payment of principal
thereof or which would reduce the rate or extend the date for payment of
interest thereon or (B) is not adverse to the interests of the Banks in any
material respect, so long as, in each case, no consent fee is payable in
connection therewith, or (ii) modify their respective Charter Documents, to the
extent that any such modification of such Charter Documents would be adverse to
the Banks in any material respect.
ARTICLE IX.
EVENTS OF DEFAULT
9.01 Event of Default. Any of the following shall constitute an
"Event of Default":
(a) Non-Payment. The Borrower fails to pay, (i) when and as
required to be paid herein, any amount of principal of any Loan or any
amount of any Letter of Credit Obligation, or (ii) within five days after
the same shall become due and payable, any interest, fee or any other
amount payable hereunder; or
(b) Representation or Warranty. Any representation or warranty
by any Credit Party made or deemed made herein or in any other Loan
Document, or which is contained in any certificate, document or financial
or other statement by a Credit Party, or any of their respective
Responsible Officers, furnished at any time under this Agreement or in or
under any other Loan Document, shall prove to have been incorrect in any
material respect on or as of the date made or deemed made; or
(c) Specific Defaults. Any Borrower or any Parent Guarantor
fails to perform or observe any term, covenant or agreement contained in
Sections 7.03(a), 7.05, 7.06, 7.07, 7.14 or Article VIII; or
(d) Other Defaults. Any Credit Party fails to perform or
observe any other term or covenant contained in this Agreement or any
other Loan Document, and such default shall continue unremedied for a
period of 30 days after the date upon which written notice thereof is
given to the Borrower by the Administrative Agent or any Bank; or
(e) Cross-Default. Any Credit Party (i) fails to make any
payment or dividend, as applicable, in respect of Permitted Borrower
Preferred Equity, Permitted Borrower Unsecured Indebtedness, Permitted
Permanent Holdings Preferred Equity, Permitted Holdings Unsecured
Indebtedness or Permitted Parent Preferred Equity or any other
Indebtedness having an aggregate principal amount of $3,500,000 or more
when due (whether by scheduled maturity, required prepayment, required
redemption or repurchase, acceleration, demand, or otherwise) and such
failure continues after the applicable grace or notice period, if any,
specified in the document relating thereto on the date of such failure; or
(ii) fails to perform or observe any other condition or covenant, or
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any other event shall occur or condition exist, under any agreement or
instrument relating to Permitted Borrower Preferred Equity, Permitted
Borrower Unsecured Indebtedness, Permitted Permanent Holdings Preferred
Equity, Permitted Holdings Unsecured Indebtedness or Permitted Parent
Preferred Equity or any other such Indebtedness, and such failure
continues after the applicable grace or notice period, if any, specified
in the document relating thereto on the date of such failure if the effect
of such failure, event or condition is to cause, or to permit the holder
or holders of such Indebtedness or beneficiary or beneficiaries of such
Indebtedness (or a trustee or agent on behalf of such holder or holders or
beneficiary or beneficiaries) to cause, such Indebtedness to be declared
to be redeemed, repurchased or due and payable prior to its stated
maturity; or an Event of Default (as defined in the Bastet/Mission Credit
Agreement) shall occur and be continuing under the Bastet/Mission Credit
Agreement; or
(f) Insolvency; Voluntary Proceedings. Any Credit Party (i)
commences any Insolvency Proceeding with respect to itself; or (ii) takes
any action to effectuate or authorize any of the foregoing; or
(g) Involuntary Proceedings. (i) Any involuntary Insolvency
Proceeding is commenced or filed against any Credit Party or any writ,
judgment, warrant of attachment, execution or similar process, is issued
or levied against a substantial part of any Credit Party's properties, and
any such proceeding or petition shall not be dismissed, or such writ,
judgment, warrant of attachment, execution or similar process shall not be
released, vacated or fully bonded, within 60 days after commencement,
filing or levy; (ii) any Credit Party admits the material allegations of a
petition against it in any Insolvency Proceeding, or an order for relief
(or similar order under non-U.S. law) is ordered in any Insolvency
Proceeding; or (iii) any Credit Party acquiesces in the appointment of a
receiver, trustee, custodian, conservator, liquidator, mortgagee in
possession (or agent therefor), or other similar Person for itself or a
substantial portion of its property or business; or
(h) ERISA. (i) An ERISA Event shall occur with respect to a
Pension Plan or Multiemployer Plan which has resulted or could reasonably
be expected to result in liability of any Credit Party or an ERISA
Affiliate under Title IV of ERISA to the Pension Plan, Multiemployer Plan
or the PBGC in an aggregate amount in excess of $1,000,000; (ii) the
commencement or increase of contributions to, or the adoption of or the
amendment of a Pension Plan by any Credit Party or an ERISA Affiliate
which has resulted or could reasonably be expected to result in an
increase in Unfunded Pension Liability among all Pension Plans with
Unfunded Pension Liabilities in an aggregate amount in excess of
$1,000,000; (iii) any of the representations and warranties contained in
Section 6.07 shall cease to be true and correct in any material respect
and which cessation has resulted or could reasonably be expected to result
in a Material Adverse Effect; or (iv) any Credit Party or an ERISA
Affiliate shall fail to pay when due, after the expiration of any
applicable grace period, any installment payment with respect to its
withdrawal liability under Section 4201 of ERISA under a Multiemployer
Plan, which has resulted or could reasonably be expected to result in a
Material Adverse Effect; or
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(i) Judgments. One or more non-interlocutory judgments, orders
or decrees shall be entered against any Credit Party involving in the
aggregate a liability (not covered by independent third-party insurance)
as to any single or related series of transactions, incidents or
conditions, of $3,500,000 or more, and the same shall remain unsatisfied,
unvacated and unstayed pending appeal for a period of 30 days after the
entry thereof; or
(j) Change of Control. Any Change of Control shall occur; or
(k) Guaranty Agreements. Any Guaranty Agreement or any
provision thereof shall for any reason cease to be in full force and
effect or valid and binding on or enforceable against any Credit Party or
a Credit Party shall so state in writing or bring an action to limit its
obligations or liabilities thereunder; or any Credit Party shall fail to
perform any of its obligations thereunder; or
(l) Security Documents. Any provision of any Security Document
other than the Mortgages shall (other than in accordance with the terms
thereof) cease to be in full force and effect or cease to create a valid,
security interest in the Collateral (other than an immaterial portion of
the Collateral) purported to be covered thereby or such security interest
shall cease to be a valid and first priority security interest (subject
only to Permitted Liens), or any party thereto shall default in the
performance of its obligations thereunder beyond applicable periods of
grace, in each case other than as a result of any action or inaction by
the Collateral Agent, the Administrative Agent or any Bank; or
(m) Termination of Material Licenses. Any Credit Party shall
fail to have all required authorizations and licenses (including FCC
Licenses), the failure of which would have a Material Adverse Effect
individually or in the aggregate; or
(n) Termination of Network Affiliation Agreements. A Network
Affiliation Agreement with a Major Television Network (other than a
Network Affiliation Agreement that is not in respect of the primary
affiliation of a Station or a Network Affiliation Agreement which is
replaced by another network affiliation agreement with a Major Television
Network before it ceases to be effective) ceases to be in full force and
effect, if either (i) after giving effect to such cessation, three or more
Stations are Former Major Network Affiliates, or (ii) the Station that is
subject to such Network Affiliation Agreement is a Significant Station at
the time of such cessation.
9.02 Remedies. If any Event of Default occurs and is continuing, the
Administrative Agent shall, at the request of, or may, with the consent of, the
Majority Banks:
(a) declare the Commitment of each Bank to make Loans and any
obligation of the Issuing Bank to issue Letters of Credit to be
terminated, whereupon such Commitments and obligation shall forthwith be
terminated;
(b) declare the unpaid principal amount of all outstanding
Loans, all interest accrued and unpaid thereon, and all other amounts
owing or payable hereunder or
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under any other Loan Document to be immediately due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby expressly waived by each Credit Party;
(c) demand that the Borrower Cash Collateralize Letter of
Credit Obligations to the extent of outstanding and wholly or partially
undrawn Letters of Credit, whereupon the Borrower shall so Cash
Collateralize such Letters of Credit to that extent;
(d) exercise on behalf of itself, the Issuing Bank and the
Banks all rights and remedies available to it, the Issuing Bank and the
Banks under the Loan Documents or applicable laws;
(e) apply any cash collateral as provided in Section 3.07 to
the payment of outstanding Obligations; and/or
(f) take all actions to enforce the rights and remedies of the
Collateral Agent under the Security Documents;
provided, however, that upon the occurrence of any event specified above in
Section 9.01(f) or (g) with respect to any Credit Party (in the case of clause
(i) of paragraph (g) upon the expiration of the 60-day period mentioned
therein), the obligation of each Bank to make Loans and any obligation of the
Issuing Bank to issue Letters of Credit shall automatically terminate, and all
reimbursement obligations under Letters of Credit and the unpaid principal
amount of all outstanding Loans and all interest and other amounts as aforesaid
shall automatically become due and payable without further act or notice by the
Administrative Agent, the Issuing Bank or any other Bank, which are hereby
expressly waived by the Borrower and each Parent Guarantor.
If at the end of any Fiscal Quarter there exists an Event of Default
with respect to one or more of Sections 8.09(a), (b), (c) and/or (d), the
Borrower may, prior to the date upon which financial statements for such Fiscal
Quarter are required to be delivered pursuant to Section 7.01, (i) cure such
Events of Default under Sections 8.09(a) and/or (b) by receiving equity
contributions from ▇▇▇▇ ▇.▇. II, ▇▇▇▇ ▇.▇. III and/or Sook (and/or other Persons
exercising preemptive rights in connection with an equity issuance to one or
more of them), or a payment pursuant to an ABRY Contribution Agreement, and
applying the proceeds therefrom to repay Loans and/or to reduce Commitments so
that the Consolidated Total Leverage Ratio and the Consolidated Senior Leverage
Ratio, calculated on a Pro Forma Basis after giving effect to any such equity
contributions and repayments, as of the last day of the Fiscal Quarter for which
such Event of Default occurred, do not exceed the relevant ratios set forth in
Sections 8.09(a) and (b); and (ii) cure such Event or Events of Default under
Sections 8.09(c) and/or (d) by receiving equity contributions from ▇▇▇▇ ▇.▇. II,
▇▇▇▇ ▇.▇. III and/or Sook (and/or other Persons exercising preemptive rights in
connection with an issuance to one or more of them), and applying the proceeds
therefrom to repay Loans, the amount of which shall be added on a non-annualized
basis to increase Consolidated Operating Cash Flow for the Borrower and its
Subsidiaries for the Fiscal Quarter during which such Event of Default occurred
so that each of the Consolidated Interest Coverage Ratio and the Pro Forma Debt
Service Ratio, in each case calculated on a Pro Forma Basis after giving effect
to any such addition and application of
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proceeds, as of the last day of the Fiscal Quarter for which such Event of
Default occurred, shall not be less than the relevant ratios set forth in
Section 8.09(c) and (d). Other than with respect to payments required to be made
under an ABRY Capital Contribution Agreement, the provisions of this paragraph
may not be utilized in consecutive quarters, nor more than four times prior to
the Maturity Date.
9.03 Rights Not Exclusive. The rights provided for in this Agreement
and the other Loan Documents are cumulative and are not exclusive of any other
rights, powers, privileges or remedies provided by law or in equity, or under
any other instrument, document or agreement now existing or hereafter arising.
ARTICLE X.
THE ADMINISTRATIVE AGENT, THE ISSUING BANK
AND THE LEAD ARRANGER AND BOOK MANAGER
10.01 Appointment and Authorization.
(a) Each of the Banks and the Issuing Bank hereby irrevocably
appoint, designate and authorize the Administrative Agent to take such
action on its behalf under the provisions of this Agreement and each other
Loan Document and to exercise such powers and perform such duties as are
expressly delegated to it by the terms of this Agreement or any other Loan
Document, together with such powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary contained elsewhere in this
Agreement or in any other Loan Document, the Administrative Agent shall
not have any duties or responsibilities, except those expressly set forth
herein, nor shall the Administrative Agent have or be deemed to have any
fiduciary relationship with any Bank or the Issuing Bank, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities
shall be read into this Agreement or any other Loan Document or otherwise
exist against the Administrative Agent.
(b) The Issuing Bank shall have all of the benefits and
immunities (i) provided to the Administrative Agent in this Article X with
respect to any acts taken or omissions suffered by the Issuing Bank in
connection with Letters of Credit issued by it or proposed to be issued by
it and the Letter of Credit Applications pertaining to the Letters of
Credit as fully as if the term "Administrative Agent," as used in this
Article X, included the Issuing Bank with respect to such acts or
omissions, and (ii) as additionally provided in this Agreement with
respect to the Issuing Bank.
10.02 Delegation of Duties. The Administrative Agent may execute any
of its duties under this Agreement or any other Loan Document by or through
agents, employees or attorneys-in-fact and shall be entitled to advice of
counsel concerning all matters pertaining to such duties. The Administrative
Agent shall not be responsible for the negligence or misconduct of any agent or
attorney-in-fact that it selects with reasonable care.
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10.03 Liability of Administrative Agent. None of the Administrative
Agent, its Affiliates or any of their officers, directors, employees, agents or
attorneys-in-fact (collectively, the "Administrative Agent-Related Persons")
shall (a) be liable for any action taken or omitted to be taken by any of them
under or in connection with this Agreement or any other Loan Document (except
for their own gross negligence or willful misconduct), or (b) be responsible in
any manner to any of the Banks for any recital, statement, representation or
warranty made by any Credit Party or any Affiliate thereof, or any officer
thereof, contained in this Agreement or in any other Loan Document, or in any
certificate, report, statement or other document referred to or provided for in,
or received by the Administrative Agent under or in connection with, this
Agreement or any other Loan Document, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan
Document, or for any failure of any Credit Party or any other party to any Loan
Document to perform its obligations hereunder or thereunder. No Administrative
Agent-Related Person shall be under any obligation to any Bank to ascertain or
to inquire as to the observance or performance of any of the agreements
contained in, or conditions of, this Agreement or any other Loan Document, or to
inspect the properties, books or records of any Credit Party or any Affiliate of
any Credit Party.
10.04 Reliance by Administrative Agent.
(a) The Banks agree that the Administrative Agent shall be
entitled to rely, and shall be fully protected in relying, upon any
writing, resolution, notice, consent, certificate, affidavit, letter,
telegram, facsimile, telex or telephone message, statement or other
document or conversation believed by it to be genuine and correct and to
have been signed, sent or made by the proper Person or Persons, and upon
advice and statements of legal counsel (including counsel to the Nexstar
Entities), independent accountants and other experts selected by the
Administrative Agent. The Banks agree that the Administrative Agent shall
be fully justified in failing or refusing to take any action under this
Agreement or any other Loan Document unless it shall first receive such
advice or concurrence of the Majority Banks or, as required by Section
11.01, all the Banks as it deems appropriate and, if it so requests, it
shall first be indemnified to its satisfaction by the Banks against any
and all liability and expense which may be incurred by it by reason of
taking or continuing to take any such action. The Administrative Agent
shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement or any other Loan Document in accordance with
a request or consent of the Majority Banks or, as required by Section
11.01, all the Banks, and such request and any action taken or failure to
act pursuant thereto shall be binding upon all of the Banks.
(b) For purposes of determining compliance with the conditions
specified in Sections 5.01 and 5.02 as they relate to the occurrence of
the Effective Date and the obligation of each Bank to make Loans hereunder
and the obligation of the Issuing Bank to issue Letters of Credit on the
Initial Borrowing Date, each Bank that has signed a counterpart hereof and
delivered the same to the Administrative Agent shall be deemed to have
consented to, approved or accepted or to be satisfied with each document
or other matter either sent by the Administrative
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Agent to such Bank for consent, approval, acceptance or satisfaction, or
required hereunder to be consented to or approved by or acceptable or
satisfactory to such Bank, unless an officer of the Administrative Agent
responsible for the transactions contemplated by the Loan Documents shall
have received notice from such Bank prior to the Effective Date specifying
in reasonable detail its objection thereto and such objection shall not
have been withdrawn by notice to the Administrative Agent to that effect.
(c) Neither the Syndication Agent, in its capacity as such,
nor the Documentation Agent, in its capacity as such, shall have any
rights, duties or obligations hereunder or under any of the Loan
Documents.
10.05 Notice of Default. The Administrative Agent shall not be
deemed to have knowledge or notice of the occurrence of any Default or Event of
Default, except with respect to defaults in the payment of principal, interest
and fees required to be paid to the Administrative Agent for the account of the
Banks or the Issuing Bank, unless the Administrative Agent shall have received
written notice from a Bank or the Borrower referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a
"notice of default." In the event that the Administrative Agent receives such a
notice, the Administrative Agent shall give notice thereof to the Banks and the
Issuing Bank. The Administrative Agent shall take such action with respect to
such Default or Event of Default as shall be requested by the Majority Banks in
accordance with Article IX; provided, however that unless and until the
Administrative Agent shall have received any such request, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it shall
deem advisable or in the best interest of the Banks.
10.06 Credit Decision. Each Bank expressly acknowledges that none of
the Administrative Agent-Related Persons have made any representation or
warranty to it and that no act by the Administrative Agent hereinafter taken,
including any review of the affairs of any Nexstar Entity or any Affiliate of
any Nexstar Entity, shall be deemed to constitute any representation or warranty
by the Administrative Agent to any Bank. Each Bank represents to the
Administrative Agent that it has, independently and without reliance upon the
Administrative Agent and based on such documents and information as it has
deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, property, financial and other condition and
creditworthiness of the Nexstar Entities and their Affiliates, and all
applicable bank regulatory laws relating to the transactions contemplated
thereby, and made its own decision to enter into this Agreement and extend
credit to the Borrower hereunder. Each Bank also represents that it will,
independently and without reliance upon the Administrative Agent and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or
not taking action under this Agreement and the other Loan Documents, and to make
such investigations as it deems necessary to inform itself as to the business,
prospects, operations, property, financial and other condition and
creditworthiness of the Nexstar Entities and their Affiliates. Except for
notices, reports and other documents expressly herein required to be furnished
to the Banks by the Administrative Agent, the Administrative Agent shall not
have any duty or responsibility to provide any Bank with any credit or other
information concerning the business, prospects, operations, property, financial
and other condition or creditworthiness of the Nexstar Entities and their
Affiliates which may come into the possession of any of the Administrative
Agent-Related Persons.
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10.07 Indemnification. Whether or not the transactions contemplated
hereby shall be consummated, the Banks shall indemnify, upon demand, each of the
Administrative Agent-Related Persons (to the extent not reimbursed by or on
behalf of the Borrower and without limiting the obligation of the Borrower to do
so), ratably from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses and disbursements
of any kind whatsoever which may at any time (including at any time following
the expiration of the Letters of Credit and the repayment of the Loans and the
termination or resignation of the Administrative Agent) be imposed on, incurred
by or asserted against any such Person in any way relating to or arising out of
this Agreement, any other Loan Document or any document contemplated by or
referred to herein or therein or the transactions contemplated hereby or thereby
or any action taken or omitted by any such Person under or in connection with
any of the foregoing; provided, however that no Bank shall be liable for the
payment to any of the Administrative Agent-Related Persons of any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements to the extent arising from such Person's
gross negligence or willful misconduct. Without limitation of the foregoing,
each Bank shall reimburse the Administrative Agent upon demand for its ratable
share of any costs or out-of-pocket expenses (including Attorney Costs) incurred
by the Administrative Agent in connection with the administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or
otherwise) of, or legal advice in respect of rights or responsibilities under,
this Agreement, any other Loan Document, or any document contemplated by or
referred to herein to the extent that the Administrative Agent is not reimbursed
for such expenses by or on behalf of the Borrower. Without limiting the
generality of the foregoing, if the Internal Revenue Service or any other
Governmental Authority of the United States or other jurisdiction asserts a
claim that the Administrative Agent did not properly withhold tax from amounts
paid to or for the account of any Bank (because the appropriate form was not
delivered, was not properly executed, or because such Bank failed to notify the
Administrative Agent of a change in circumstances which rendered the exemption
from, or reduction of, withholding tax ineffective, or for any other reason)
such Bank shall indemnify the Administrative Agent fully for all amounts paid as
a result thereof, directly or indirectly, by the Administrative Agent as tax or
otherwise, including penalties and interest, and including any taxes imposed by
any jurisdiction on the amounts payable to the Administrative Agent under this
Section 10.07, together with all costs and expenses (including Attorney Costs).
The obligation of the Banks in this Section 10.07 shall survive the payment of
all Obligations hereunder.
10.08 Administrative Agent in Individual Capacity. Bank of America
and its Affiliates may make loans to, issue letters of credit for the account
of, accept deposits from, acquire equity interests in and generally engage in
any kind of banking, trust, financial advisory or other business with, the
Nexstar Entities and their respective Affiliates as though Bank of America were
not the Administrative Agent or the Issuing Bank hereunder and without notice to
or consent of the Banks. With respect to its Loans and participation in Letters
of Credit, Bank of America shall have the same rights and powers under this
Agreement and the other Loan Documents as any other Bank and may exercise the
same as though it were not the Administrative Agent or an Issuing Bank, and the
terms "Bank" and "Banks" shall include Bank of America in its individual
capacity.
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10.09 Successor Administrative Agent. The Administrative Agent may
resign as Administrative Agent upon 30 days' notice to the Banks and the
Borrower. If the Administrative Agent shall resign as Administrative Agent under
this Agreement, the Majority Banks shall appoint from among the Banks a
successor agent for the Banks which successor agent shall be subject to the
approval of the Borrower if no Event of Default has occurred and is continuing,
such approval not to be unreasonably withheld or delayed. If no successor agent
is appointed prior to the effective date of the resignation of the
Administrative Agent, the Administrative Agent may appoint, after consulting
with the Banks, and subject to the approval of the Borrower if no Event of
Default has occurred and is continuing, such approval not to be unreasonably
withheld or delayed, a successor agent from among the Banks or any Bank
Affiliate. Any successor Administrative Agent appointed under this Section 10.09
shall be a commercial bank organized under the laws of the United States or any
State thereof, and having a combined capital and surplus of at least
$500,000,000. Upon the acceptance of its appointment as successor agent
hereunder, such successor agent shall succeed to all the rights, powers and
duties of the retiring Administrative Agent and the term "Administrative Agent"
means such successor agent and the retiring Administrative Agent's appointment,
powers and duties as Administrative Agent shall be terminated. After any
retiring Administrative Agent's resignation hereunder as Administrative Agent,
the provisions of this Article X and Sections 11.04 and 11.05 shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement. If no successor agent has accepted
appointment as Administrative Agent by the date which is 30 days following a
retiring Administrative Agent's notice of resignation, the retiring
Administrative Agent's resignation shall nevertheless thereupon become effective
and the Banks shall perform all of the duties of the Administrative Agent
hereunder until such time, if any, as the Majority Banks appoint a successor
agent as provided for above.
10.10 The Lead Arranger and Book Manager. The Lead Arranger and Book
Manager, in such capacity, shall have no duties or responsibilities, and shall
incur no obligations or liabilities, under this Agreement. Each Bank
acknowledges that it has not relied, and will not rely, on the Lead Arranger and
Book Manager in deciding to enter into this Agreement.
ARTICLE XI.
MISCELLANEOUS
11.01 Amendments and Waivers.
(a) Subject to the terms and provisions of Sections 2.01(c)
and 2.16, no amendment or waiver of any provision of this Agreement or any
other Loan Document and no consent with respect to any departure by the
Borrower or any other Credit Party therefrom, shall be effective unless
the same shall be in writing and signed by the Borrower, each Credit Party
affected thereby and the Majority Banks and acknowledged by the
Administrative Agent, and then such amendment, waiver or consent shall be
effective only in the specific instance and for the specific purpose for
which given; provided that no such waiver, amendment, or consent shall,
unless in writing and signed by all the Banks and acknowledged by the
Administrative Agent, extend the date
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for or change the amount of any mandatory reduction of the Aggregate
Combined Revolving Commitment under Section 2.05(d), extend the date for
or change the amount of any principal installment due on the Term Loans
under Section 2.08(a), or postpone or delay any date for any payment of
interest or fees due to the Banks (or any of them) under any other Loan
Document; and provided further that no such waiver, amendment or consent
shall, unless in writing and signed by all the Banks affected thereby and
acknowledged by the Administrative Agent, do any of the following:
(i) increase (except as provided in Sections 2.01(c) and 2.16)
or extend the Commitment of such Bank, or reinstate any Commitment
terminated pursuant to Section 9.02(a), except as provided in
Section 11.07;
(ii) increase (except as provided in Sections 2.01(c) and
2.16) or extend the Aggregate Commitment;
(iii) extend the Maturity Date;
(iv) reduce the principal of, or the rate of interest
specified herein on any Loan or Letter of Credit Borrowing (other
than with respect to post-default rates), or of any fees or other
amounts payable hereunder (including, without limitation, any
mandatory prepayments pursuant to Section 2.07 and any amendments to
the definitions related thereto) or under any other Loan Document or
reduce the Applicable Margin provided for herein;
(v) reduce the percentage of the Commitments or of the
aggregate unpaid principal amount of the Loans which shall be
required for the Banks or any of them to take any action hereunder;
(vi) amend this Section 11.01, change the percentage set forth
in definition of the term "Majority Banks" or amend any provision of
this Agreement expressly requiring the consent of all the Banks in
order to take or refrain from taking any action;
(vii) release the guaranty of any Guarantor under its Guaranty
Agreement, except in accordance with the express provisions hereof
or thereof, or release all or substantially all of the Collateral
except, in all such cases in accordance with the express provisions
of this Agreement or the Security Documents;
and, provided further that (x) no amendment, waiver or consent shall,
unless in writing and signed by the Issuing Bank in addition to the
Majority Banks or all the Banks, as the case may be, affect the rights or
duties of the Issuing Bank under this Agreement or any Letter of Credit
Related Document, (y) no amendment, waiver or consent shall, unless in
writing and signed by the Administrative Agent in addition to the Majority
Banks or all the Banks, as the case may be, affect the rights or duties of
the Administrative Agent under this Agreement or any other Loan Document
and (z) no amendment, waiver or consent shall, unless in writing and
signed by the Collateral Agent in addition to the
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Majority Banks or all the Banks, as the case may be, affect the rights or
duties of the Collateral Agent under the Security Documents or any other
Loan Document. Notwithstanding anything to the contrary contained in this
Agreement, Interest Rate Protection Agreements shall not be deemed to be
Loan Documents for purposes of this Section 11.01(a).
(b) If, in connection with any proposed change, waiver,
discharge or any termination to any of the provisions of this Agreement as
contemplated by clauses (ii) through (vii), inclusive, of the second
proviso to Section 11.01(a), the consent of the Majority Banks is obtained
but the consent of one or more other Banks whose consent is required is
not obtained, then the Borrower shall have the right, so long as all
non-consenting Banks whose individual consent is required are treated the
same, to replace each such non-consenting Bank or Banks with one or more
Replacement Banks pursuant to Section 4.08(b) so long as at such time of
such replacement, each such Replacement Bank consents to the proposed
change, waiver, discharge or termination.
11.02 Notices.
(a) All notices, requests and other communications provided
for hereunder shall be in writing (including, unless the context expressly
otherwise provides, facsimile transmission) and mailed, transmitted by
facsimile or delivered, (i) if to the Borrower and/or the Parent
Guarantors, to the address or facsimile number specified for notices on
the applicable signature page hereof; (ii) if to the Administrative Agent,
the Issuing Bank or any Bank, to the notice address set forth on Schedule
1.01(A); or (iii) as directed to the Parent Guarantors, the Borrower or
the Administrative Agent, to such other address as shall be designated by
such party in a written notice to the other parties, and as directed to
each other party, at such other address as shall be designated by such
other party in a written notice to the Parent Guarantors, the Borrower and
the Administrative Agent.
(b) All such notices, requests and communications shall be
effective when delivered or transmitted by facsimile machine,
respectively, provided that any matter transmitted by facsimile (i) shall
be immediately confirmed by a telephone call to the recipient at the
number specified on the applicable signature page hereof or on Schedule
1.01(A), and (ii) shall be followed promptly by a hard copy original
thereof; except that notices to the Administrative Agent shall not be
effective until actually received by the Administrative Agent, and notices
pursuant to Article III to the Issuing Bank shall not be effective until
actually received by the Issuing Bank.
(c) The Parent Guarantors and the Borrower acknowledge and
agree that any agreement of the Administrative Agent, the Issuing Bank and
the Banks set forth in Articles II and III herein to receive certain
notices by telephone and facsimile is solely for the convenience and at
the request of the Parent Guarantors and the Borrower. The Administrative
Agent, the Issuing Bank and the Banks shall be entitled to rely on the
authority of any Person purporting to be a Person authorized by any Parent
Guarantor or the Borrower to give such notice and the Administrative
Agent, the Issuing Bank and the
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Banks shall not have any liability to the Parent Guarantors or the
Borrower or any other Person on account of any action taken or not taken
by the Administrative Agent, the Issuing Bank or the Banks in reliance
upon such telephonic or facsimile notice. The obligation of the Borrower
to repay the Loans and drawings under Letters of Credit shall not be
affected in any way or to any extent by any failure by the Administrative
Agent, the Issuing Bank and the Banks to receive written confirmation of
any telephonic or facsimile notice or the receipt by the Administrative
Agent, the Issuing Bank and the Banks of a confirmation which is at
variance with the terms understood by the Administrative Agent, the
Issuing Bank or the Banks to be contained in the telephonic or facsimile
notice.
11.03 No Waiver; Cumulative Remedies. No failure to exercise and no
delay in exercising, on the part of the Administrative Agent, the Issuing Bank
or any Bank, any right, remedy, power or privilege hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege. The rights,
remedies, powers and privileges herein provided are cumulative and not exclusive
of any other rights, remedies, powers and/or privileges available at law or in
equity.
11.04 Costs and Expenses. The Borrower shall, whether or not the
transactions contemplated hereby shall be consummated:
(a) pay or reimburse on demand all reasonable costs and
expenses incurred by the Administrative Agent, in connection with the
development, preparation, delivery, administration, syndication of the
Commitments under and execution of, and any amendment, supplement, waiver
or modification to (in each case, whether or not consummated), this
Agreement, any other Loan Document and any other documents prepared in
connection herewith or therewith, and the consummation of the transactions
contemplated hereby and thereby, including the Attorney Costs incurred by
the Administrative Agent with respect thereto;
(b) pay or reimburse each Bank, the Issuing Bank and the
Administrative Agent on demand for all reasonable costs and expenses
incurred by them in connection with the enforcement, attempted
enforcement, or preservation of any rights or remedies (including in
connection with any "workout" or restructuring regarding the Loans, and
including in any Insolvency Proceeding) under this Agreement, any other
Loan Document, and any such other documents, including Attorney Costs or
the cost of any consultants incurred by the Administrative Agent and any
Bank; and
(c) pay or reimburse the Administrative Agent and the Issuing
Bank on demand for all appraisal (including, without duplication, the
allocated cost of internal appraisal services), audit, environmental
inspection and review (including, without duplication, the allocated cost
of such internal services), search and filing costs, fees and expenses,
incurred or sustained by the Administrative Agent in connection with the
matters referred to under paragraphs (a) and (b) of this Section 11.04.
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11.05 INDEMNITY. WHETHER OR NOT THE TRANSACTIONS CONTEMPLATED HEREBY
SHALL BE CONSUMMATED, THE BORROWER SHALL PAY, INDEMNIFY, AND HOLD EACH BANK, THE
ISSUING BANK, THE ADMINISTRATIVE AGENT AND OF THEIR RESPECTIVE OFFICERS,
DIRECTORS, OTHER AFFILIATES, EMPLOYEES, COUNSEL, AGENTS AND ATTORNEYS-IN-FACT
(EACH, AN "INDEMNIFIED PERSON") HARMLESS FROM AND AGAINST ANY AND ALL
LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS,
COSTS, CHARGES, EXPENSES OR DISBURSEMENTS (INCLUDING ATTORNEY COSTS) OF ANY KIND
OR NATURE WHATSOEVER WITH RESPECT TO (A) ANY INVESTIGATION, LITIGATION OR
PROCEEDING (INCLUDING ANY INSOLVENCY PROCEEDING) RELATED TO THIS AGREEMENT OR
THE LOAN DOCUMENTS OR THE LOANS OR THE LETTERS OF CREDIT, OR THE USE OF THE
PROCEEDS THEREOF, WHETHER OR NOT ANY INDEMNIFIED PERSON IS A PARTY THERETO AND
(B) THE ACTUAL OR ALLEGED PRESENCE OF HAZARDOUS MATERIALS IN THE AIR, SURFACE
WATER OR GROUNDWATER OR ON THE SURFACE OR SUBSURFACE OF ANY PROPERTY OWNED OR AT
ANY TIME OPERATED BY ANY CREDIT PARTY, THE GENERATION, STORAGE, TRANSPORTATION,
HANDLING OR DISPOSAL OF HAZARDOUS MATERIALS AT ANY LOCATION BY ANY CREDIT PARTY,
WHETHER OR NOT OWNED OR OPERATED BY ANY CREDIT PARTY, THE NONCOMPLIANCE OF ANY
PROPERTY WITH ENVIRONMENTAL LAWS (INCLUDING APPLICABLE PERMITS THEREUNDER)
APPLICABLE TO ANY PROPERTY, OR ANY ENVIRONMENTAL CLAIM ASSERTED AGAINST ANY
CREDIT PARTY OR ANY PROPERTY OWNED OR AT ANY TIME OPERATED BY ANY CREDIT PARTY
(ALL THE FOREGOING DESCRIBED IN (A) AND (B) ABOVE, COLLECTIVELY, THE
"INDEMNIFIED LIABILITIES") INCLUDING INDEMNIFIED LIABILITIES ARISING FROM THE
NEGLIGENCE OF SUCH INDEMNIFIED PERSON; PROVIDED THAT THE BORROWER SHALL HAVE NO
OBLIGATION HEREUNDER TO ANY INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED
LIABILITIES ARISING FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY
INDEMNIFIED PERSON AS THE SAME IS DETERMINED BY A FINAL JUDGMENT OF A COURT OF
COMPETENT JURISDICTION. THE OBLIGATIONS IN THIS SECTION 11.05 SHALL SURVIVE
PAYMENT OF ALL OTHER OBLIGATIONS.
11.06 Successors and Assigns. The provisions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, except that the Borrower may not assign or
transfer any of its rights or obligations under this Agreement without the prior
written consent of the Administrative Agent and each Bank.
11.07 Assignments, Participations, etc.
(a) Any Bank may, with the written consent of the
Administrative Agent and, so long as no Default or Event of Default shall
then exist, the Borrower, in each case which consent shall not be
unreasonably withheld, at any time assign and delegate to one or more
Eligible Assignees (each an "Assignee") all, or any part of the Loans, the
Commitments and the other rights and obligations of such Bank hereunder;
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provided, however, that (i) any such assignment to an Eligible Assignee
shall be in a minimum amount equal to $1,000,000 or the then remaining
Commitment of such Bank and (ii) provided further, that the Borrower, the
Issuing Bank and the Administrative Agent may continue to deal solely and
directly with such Bank in connection with the interest so assigned to an
Assignee until (x) written notice of such assignment, together with
payment instructions, addresses and related information with respect to
the Assignee, shall have been given to the Borrower and the Administrative
Agent by such Bank and the Assignee; (y) such Bank and its Assignee shall
have delivered to the Borrower and the Administrative Agent an Assignment
and Assumption; and (z) in the case of any assignment to an Assignee which
is not already a Bank or its Affiliate, the assignor Bank or Assignee has
paid to the Administrative Agent a processing fee in the amount of $3,500;
provided that with respect to any Bank, Bank Affiliate or Related Fund,
such processing fee shall be in the amount of $1,500. The Borrower and the
Administrative Agent hereby grant the consent required by the immediately
preceding sentence with respect to any assignment that any Bank may from
time to time make to any Affiliate of such Bank or Related Fund provided
that the Borrower and the Administrative Agent are each given at least
three (3) Business Days' written notice prior to the effective date of
such assignment.
(b) From and after the date that the Administrative Agent
notifies the assignor Bank that the requirements of Section 11.07(a) above
are satisfied, (i) the Assignee thereunder shall be a party hereto and, to
the extent that rights and obligations hereunder have been assigned to it
pursuant to such Assignment and Assumption, shall have the rights and
obligations of a Bank under the Loan Documents, and (ii) the assignor Bank
shall, to the extent that rights and obligations hereunder and under the
other Loan Documents have been assigned by it pursuant to such Assignment
and Assumption, relinquish its rights and be released from its obligations
under the Loan Documents. Anything herein to the contrary notwithstanding,
any Bank assigning all of its Loans, Commitments and other rights and
obligations hereunder to an Assignee shall continue to have the benefit of
all indemnities hereunder following such assignment.
(c) Immediately upon each Assignee's making its payment under
the Assignment and Assumption, this Agreement shall be deemed to be
amended to the extent, but only to the extent, necessary to reflect the
addition of the Assignee and the resulting adjustment of the Aggregate
Commitment arising therefrom. The Commitment allocated to an Assignee
shall reduce the Commitment of the assigning Bank pro tanto.
(d) Any Bank may at any time sell to one or more banks or
other Persons not Affiliates of any Credit Party (a "Participant")
participating interests in any Loans, Term Commitment, Revolving
Commitment or Incremental Commitment of such Bank and the other interests
of such Bank (the "Originating Bank") hereunder and under the other Loan
Documents; provided, however, that (i) the Originating Bank's obligations
under this Agreement shall remain unchanged, (ii) the Originating Bank
shall remain solely responsible for the performance of such obligations,
(iii) the Borrower, the Issuing Bank and the Administrative Agent shall
continue to deal solely and directly with the Originating Bank in
connection with the Originating Bank's rights and obligations under
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this Agreement and the other Loan Documents, and (iv) no Bank shall
transfer or grant any participating interest under which the Participant
shall have rights to approve any amendment to, or any consent or waiver
with respect to, this Agreement or any other Loan Document, provided that
such Participant shall have the right to approve any amendment, consent or
waiver described in clauses (i), (iii) and (iv) of the second proviso to
Section 11.01. In the case of any such participation, the Participant
shall be entitled to the benefit of Sections 4.01, 4.03 and 11.05, subject
to the same limitations, as though it were also a Bank hereunder, subject
to paragraph (f) below, and if amounts outstanding under this Agreement
are due and payable and unpaid, or shall have been declared or shall have
become due and payable upon the occurrence of an Event of Default, each
Participant shall, to the extent permitted under applicable law, be deemed
to have the right of set-off in respect of its participating interest in
amounts owing under this Agreement to the same extent as if the amount of
its participating interest were owing directly to it as a Bank under this
Agreement.
(e) Notwithstanding any other provision contained in this
Agreement or any other Loan Document to the contrary, any Bank may assign
all or any portion of the Loans held by it to any Federal Reserve Bank or
the United States Treasury as collateral security pursuant to Regulation A
of the Federal Reserve Board and any operating circular issued by such
Federal Reserve Bank, provided that any payment in respect of such
assigned Loans made by the Borrower or for the account of the assigning or
pledging Bank in accordance with the terms of this Agreement shall satisfy
the Borrower's obligations hereunder in respect to such assigned Loans to
the extent of such payment. No such assignment shall release the assigning
Bank from its obligations hereunder.
(f) No Participant shall be entitled to receive any greater
payment under any provision of this Agreement than such Originating Bank
would have been entitled to receive with respect to the rights transferred
unless such transfer is made with the Borrower's prior written consent.
(g) Any Bank that is an Approved Fund may pledge all or any
portion of its rights in connection with this Agreement to the trustee for
holders of obligations owed, or securities issued, by such Approved Fund
as security for such obligations or securities provided that any
foreclosure or other exercise of remedies by such trustee shall be subject
to the provisions of this Section 11.07 regarding assignments in all
respects. No pledge described in the immediately preceding clause shall
release any Approved Fund from its obligations hereunder.
11.08 Confidentiality. The Administrative Agent, the Collateral
Agent, the Issuing Bank and each Bank agree to take normal and reasonable
precautions and exercise due care to maintain the confidentiality of all
information identified as "confidential" by any Credit Party and provided to it
by any Credit Party or any Subsidiary of any Credit Party, or by the
Administrative Agent on any Credit Party's or such Subsidiary's behalf, in
connection with this Agreement or any other Loan Document, and neither it nor
any of its Affiliates shall use any such information for any purpose or in any
manner other than pursuant to the terms contemplated
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by this Agreement; except to the extent such information (a) was or becomes
generally available to the public other than as a result of a disclosure by such
Person or any of its Affiliates, or (b) was or becomes available on a
non-confidential basis from a source other than any Credit Party, provided that
such source is not bound by a confidentiality agreement with any Credit Party,
known to such Person; provided further, however, that the Administrative Agent,
the Collateral Agent, the Issuing Bank and each Bank may disclose such
information (i) at the request or pursuant to any requirement of any
Governmental Authority to which the Bank is subject or in connection with an
examination of such Bank by any such authority; (ii) pursuant to subpoena or
other court process; (iii) when required to do so in accordance with the
provisions of any applicable Requirement of Law; (iv) to the extent reasonably
required in connection with any litigation or proceeding to which such Person or
its Affiliates may be party; (v) to the extent reasonably required in connection
with the exercise of any remedy hereunder or under any other Loan Document; and
(vi) to such Person's independent auditors, other professional advisors and
employees of such Person's Bank Affiliates (or any Affiliate of such Person
engaged in capital market transactions generally) retained by such Person in
connection with this Agreement. Notwithstanding the foregoing, the Borrower
authorizes the Administrative Agent, the Collateral Agent, the Issuing Bank and
each Bank to disclose to any Participant, any Assignee or any direct or indirect
counter-party in any Interest Rate Protection Agreement to which the disclosing
Bank is a party (each, a "Transferee") and to any prospective Transferee, such
financial and other information in such Person's possession concerning the
Credit Parties or their respective Subsidiaries which has been delivered to
Administrative Agent or the Banks pursuant to this Agreement or which has been
delivered to the Administrative Agent or the Banks by the Credit Parties in
connection with such Person's credit evaluation of the Credit Parties prior to
entering into this Agreement; provided that, unless otherwise agreed by the
Borrower, such Transferee agrees in writing to the Borrower to keep such
information confidential to the same extent required of the Banks hereunder.
11.09 Set-off. In addition to any rights and remedies of the Banks
provided by law, if an Event of Default occurs and is continuing, each Bank is
authorized at any time and from time to time, without prior notice to any Credit
Party, any such notice being hereby waived to the fullest extent permitted by
law, to set off and apply, to the extent permitted by applicable law, any and
all deposits (general or special, time or demand, provisional or final) at any
time held by, and other indebtedness at any time owing to, such Bank to or for
the credit or the account of any Credit Party against any and all Obligations
owing to such Bank, now or hereafter existing, irrespective of whether or not
the Administrative Agent or such Bank shall have made demand under this
Agreement or any other Loan Document and although such Obligations may be
contingent or unmatured. Each Bank agrees promptly to notify the Borrower and
the Administrative Agent after any such set-off and application made by such
Bank; provided, however, that the failure to give such notice shall not affect
the validity of such set-off and application. The rights of each Bank under this
Section 11.09 are in addition to the other rights and remedies (including other
rights of set-off) which the Bank may have.
11.10 Notification of Addresses, Lending Offices, etc. Each Bank
shall notify the Administrative Agent in writing of any changes in the address
to which notices to the Bank should be directed, of addresses of its Lending
Office, of payment instructions in respect of all
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payments to be made to it hereunder and of such other administrative information
as the Administrative Agent shall reasonably request.
11.11 Counterparts. This Agreement may be executed by one or more of
the parties to this Agreement in any number of separate counterparts, each of
which, when so executed, shall be deemed an original, and all of said
counterparts taken together shall be deemed to constitute but one and the same
instrument. A set of the copies of this Agreement signed by all the parties
shall be lodged with the Borrower and the Administrative Agent.
11.12 Severability. The illegality or unenforceability of any
provision of this Agreement or any instrument or agreement required hereunder
shall not in any way affect or impair the legality or enforceability of the
remaining provisions of this Agreement or any instrument or agreement required
hereunder.
11.13 No Third Parties Benefited. This Agreement is made and entered
into for the sole protection and legal benefit of the parties hereto and their
permitted successors and assigns, and no other Person shall be a direct or
indirect legal beneficiary of, or have any direct or indirect cause of action or
claim in connection with, this Agreement or any of the other Loan Documents.
None of the Administrative Agent, the Issuing Bank or any Bank shall have any
obligation to any Person not a party to this Agreement or any other Loan
Document.
11.14 Governing Law and Jurisdiction; Waiver of Trial by Jury.
(a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
(b) JURISDICTION. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT
TO THIS AGREEMENT AND ANY OTHER LOAN DOCUMENTS MAY BE BROUGHT IN THE
COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN
DISTRICT OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT,
EACH OF THE PARTIES HERETO CONSENTS, FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. TO THE EXTENT
PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES
ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON
THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO
THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT
OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. THE PARTIES HERETO EACH
WAIVE PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH
MAY BE MADE BY ANY OTHER MEANS PERMITTED BY NEW YORK LAW.
(c) WAIVER OF JURY TRIAL. THE PARTIES HERETO EACH WAIVE THEIR
RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OF OR RELATED TO THIS
132
AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY
TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES,
WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. THE
PARTIES HERETO EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE
TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE
PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS
WAIVED BY OPERATION OF THIS SECTION 11.14 AS TO ANY ACTION, COUNTERCLAIM
OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE
VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS
OR ANY PROVISION HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS.
11.15 Effectiveness.
(a) This Agreement shall become effective on the date (the
"Effective Date") on which (i) each Parent Guarantor, the Borrower, the
Administrative Agent, the Issuing Bank, the Syndication Agent, the Documentation
Agent and each Bank shall have signed a counterpart hereof (whether the same or
different counterparts) and shall have delivered (including by way of facsimile
device) the same to the Administrative Agent at its Notice Office and (ii) the
conditions contained in Sections 5.01 and 5.02 shall have been satisfied or
deemed satisfied pursuant to Section 10.04(b) (or waived by the Majority Banks,
or to the extent required by Section 11.01, all the Banks). Unless the
Administrative Agent has received actual notice from any Bank that the
conditions contained in Sections 5.01 and 5.02 have not been met to its
satisfaction in accordance with Section 10.04(b), upon the satisfaction of the
condition described in clause (i) of the immediately preceding sentence and upon
the Administrative Agent's good faith determination that the conditions
described in clause (ii) of the immediately preceding sentence have been met,
then the Effective Date shall have been deemed to have occurred, regardless of
any subsequent determination that one or more of the conditions thereto had not
been met (although the occurrence of the Effective Date shall not release any
Parent Guarantor or the Borrower from any liability for failure to satisfy one
or more of the applicable conditions contained in Sections 5.01 and 5.02).
(b) On the Effective Date, each Bank shall deliver to the
Administrative Agent for the account of the Borrower an amount equal to the
amount by which the principal amount of Loans to be made by such Bank on the
Effective Date exceeds the amount of the Loans of such Bank outstanding under
the Existing Credit Agreement on the Effective Date, plus any accrued but unpaid
interest with respect thereto. Notwithstanding anything to the contrary
contained in this Section 11.15(b), in satisfying the foregoing condition,
unless the Administrative Agent shall have been notified by any Bank prior to
the occurrence of the Effective Date that such Bank does not intend to make
available to the Administrative Agent such Bank's Term Loans and Revolving Loans
required to be made by it on such date, then the
133
Administrative Agent may, in reliance on such assumption, make available to the
Borrower the corresponding amounts and the making available by the
Administrative Agent of such amounts shall satisfy the condition contained in
this Section 11.15.
(c) This Agreement constitutes an amendment and restatement of the
Existing Credit Agreement and as such supersedes the Existing Credit Agreement
in its entirety; provided, however, that in no event shall the Liens or Guaranty
Agreements securing the Existing Credit Agreement or the obligations thereunder
be deemed affected hereby, it being the intent and agreement of the Ultimate
Parent, the Borrower and the Subsidiaries of the Ultimate Parent parties hereto
that the Guaranty Agreements and the Liens on the Collateral granted to secure
the obligations of the Ultimate Parent, the Borrower and the Subsidiaries of the
Ultimate Parent in connection with the Existing Credit Agreement and/or the
Guaranty Agreements, shall not be extinguished and shall remain valid, binding
and enforceable securing the obligations under the Existing Credit Agreement as
amended and restated hereby.
[Remainder of page is intentionally left blank; signature pages follow]
134
IN WITNESS WHEREOF, the parties hereto have caused this Amended and
Restated Credit Agreement to be duly executed and delivered by their proper and
duly authorized officers as of the day and year first above written.
BORROWER:
NEXSTAR FINANCE, L.L.C.
By:
------------------------------------------------
Name:
Title:
Address:
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
PARENT GUARANTORS:
NEXSTAR BROADCASTING GROUP, L.L.C.
NEXSTAR BROADCASTING OF NORTHEASTERN PENNSYLVANIA,
INC.
NEXSTAR BROADCASTING OF JOPLIN, INC.
NEXSTAR BROADCASTING OF ERIE, INC.
NEXSTAR BROADCASTING OF BEAUMONT/PORT ▇▇▇▇▇▇, INC.
NEXSTAR BROADCASTING OF WICHITA FALLS, INC.
NEXSTAR BROADCASTING OF ROCHESTER, INC.
NEXSTAR BROADCASTING OF ABILENE, INC.
ERC HOLDINGS, INC.
NEXSTAR MIDWEST HOLDINGS, INC.
NEXSTAR BROADCASTING OF CHAMPAIGN, INC.
NEXSTAR BROADCASTING OF PEORIA, INC.
NEXSTAR BROADCASTING OF MIDLAND-ODESSA, INC.
NEXSTAR BROADCASTING OF LOUISIANA, INC.
NEXSTAR FINANCE HOLDINGS, L.L.C.
NEXSTAR FINANCE HOLDINGS, INC.
By:
------------------------------------------------
Name:
Title:
Address:
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
ADMINISTRATIVE AGENT, SYNDICATION AGENT,
DOCUMENTATION AGENT, ISSUING BANK AND BANKS:
BANK OF AMERICA, N.A.,
as Administrative Agent, as Issuing Bank
and as a Bank
By:
------------------------------------------------
Name:
Title:
BARCLAYS BANK PLC,
as Syndication Agent and as a Bank
By:
------------------------------------------------
Name:
Title:
FIRST UNION NATIONAL BANK,
as Documentation Agent and as a Bank
By:
------------------------------------------------
Name:
Title:
FIRSTAR BANK, N.A., as a Bank
By:
------------------------------------------------
Name:
Title:
CIBC INC., as a Bank
By:
------------------------------------------------
Name:
Title:
By their execution hereinbelow, each of the undersigned hereby (i) consents to
the execution and delivery of this Agreement; (ii) reaffirms and consents to the
pledge of their Capital Securities and Indebtedness, if any, pledged to the
Administrative Agent pursuant to the Pledge and Security Agreement to secure the
Obligations; (iii) reaffirms their obligations under each the Loan Documents to
which any of the undersigned are a party and agrees that all references to the
Existing Credit Agreement made in such Loan Documents shall include the Existing
Credit Agreement as amended and restated by this Agreement; and (iv) agrees
that, notwithstanding anything to the contrary contained in this Agreement and
the other Loan Documents executed in connection herewith, and notwithstanding
any prior course of conduct, the undersigned's consent shall not be required for
any future amendment, modification, supplement, restatement, increase, renewal,
extension, rearrangement or substitution of this Agreement or any of the other
Loan Documents.
Consented to, Acknowledged and Agreed as of
the day and year first above written
NEXSTAR BROADCASTING OF ABILENE, L.L.C.
NEXSTAR BROADCASTING OF BEAUMONT/ PORT ▇▇▇▇▇▇,
L.L.C.
NEXSTAR BROADCASTING OF CHAMPAIGN, L.L.C.
ENTERTAINMENT REALTY CORPORATION
NEXSTAR BROADCASTING OF ERIE, L.L.C.
NEXSTAR BROADCASTING OF JOPLIN, L.L.C.
NEXSTAR BROADCASTING OF LOUISIANA, L.L.C.
NEXSTAR BROADCASTING OF MIDLAND-ODESSA, L.L.C.
NEXSTAR BROADCASTING OF THE MIDWEST, INC.
NEXSTAR BROADCASTING GROUP, INC.
NEXSTAR BROADCASTING OF NORTHEASTERN PENNSYLVANIA,
L.L.C.
NEXSTAR FINANCE, INC.
NEXSTAR BROADCASTING OF PEORIA, L.L.C.
NEXSTAR BROADCASTING OF ROCHESTER, L.L.C.
NEXSTAR BROADCASTING OF WICHITA FALLS, L.L.C.
By:
-----------------------------------------------
Title:
--------------------------------------------
of each of the above-named entities
By their execution hereinbelow, each of the undersigned hereby (i) consents to
the execution and delivery of this Agreement; (ii) reaffirms and consents to the
pledge of their Capital Securities and Indebtedness, if any, pledged to the
Administrative Agent pursuant to the Pledge and Security Agreement (as defined
in the Bastet/Mission Credit Agreement) to secure the Obligations; (iii)
reaffirms their obligations under each the Loan Documents to which any of the
undersigned are a party and agrees that all references to the Existing Credit
Agreement made in such Loan Documents shall include the Existing Credit
Agreement as amended and restated by this Agreement; and (iv) agrees that,
notwithstanding anything to the contrary contained in this Agreement and the
other Loan Documents executed in connection herewith, and notwithstanding any
prior course of conduct, the undersigned's consent shall not be required for any
future amendment, modification, supplement, restatement, increase, renewal,
extension, rearrangement or substitution of this Agreement or any of the other
Loan Documents.
Consented to, Acknowledged and Agreed as
of the day and year first above written
BASTET BROADCASTING, INC.
By:
----------------------------------------
Name:
Title:
MISSION BROADCASTING OF WICHITA FALLS, INC.
By:
----------------------------------------
Name:
Title:
By their execution hereinbelow, each of the undersigned hereby (i) consents to
the execution and delivery of this Agreement; (ii) reaffirms their obligations
under each the Loan Documents to which any of the undersigned are a party and
agrees that all references to the Existing Credit Agreement made in such Loan
Documents shall include the Existing Credit Agreement as amended and restated by
this Agreement; and (iii) agrees that, notwithstanding anything to the contrary
contained in this Agreement and the other Loan Documents executed in connection
herewith, and notwithstanding any prior course of conduct, the undersigned's
consent shall not be required for any future amendment, modification,
supplement, restatement, increase, renewal, extension, rearrangement or
substitution of this Agreement or any of the other Loan Documents.
Consented to, Acknowledged and Agreed as of
the day and year first above written
ABRY BROADCAST PARTNERS, III, L.P.
By: ABRY Equity Investors, L.P.
Its: General Partner
By: ABRY Holdings III, LLC
Its:General Partner
By: ABRY Holdings III Co.
Its: Sole Member
By:
-----------------------------
Name:
Title:
ABRY EQUITY INVESTORS, L.P.
By: ABRY Holdings III, LLC
Its: General Partner
By: ABRY Holdings III Co.
Its: Sole Member
By:
-------------------------------------------
Name:
Title:
Schedule 1.01(A)
NOTICE ADDRESSES/LENDING OFFICES
Administrative Bank of America, N.A.
Agent: ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Telephone: ▇▇▇-▇▇▇-▇▇▇▇
Facsimile: ▇▇▇-▇▇▇-▇▇▇▇
Issuing Bank: Bank of America, N.A.
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Telephone: ▇▇▇-▇▇▇-▇▇▇▇
Facsimile: ▇▇▇-▇▇▇-▇▇▇▇
Notices Domestic Lending Office (if
different)
Banks: Bank of America, N.A.
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Telephone: ▇▇▇-▇▇▇-▇▇▇▇
Facsimile: ▇▇▇-▇▇▇-▇▇▇▇
CIBC Inc.
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇▇▇▇
Telephone: ▇▇▇-▇▇▇-▇▇▇▇
Facsimile: ▇▇▇-▇▇▇-▇▇▇▇
First Union National Bank First Union National Bank
One First Union Center Charlotte Plaza
▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇ ▇▇., ▇▇-▇ ▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇-▇▇
▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇-▇▇▇▇ 28288-1183
Attention: ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ Attention: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Telephone: ▇▇▇-▇▇▇-▇▇▇▇ Telephone: ▇▇▇-▇▇▇-▇▇▇▇
Facsimile: ▇▇▇-▇▇▇-▇▇▇▇ Facsimile: ▇▇▇-▇▇▇-▇▇▇▇
Schedule 1.01(A)
Notices Domestic Lending Office (if
different)
Barclays Bank PLC Barclays Bank PLC
▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇ ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ Attention: ▇▇▇ ▇▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ Telephone: ▇▇▇-▇▇▇-▇▇▇▇
Telephone: ▇▇▇-▇▇▇-▇▇▇▇ Facsimile: ▇▇▇-▇▇▇-▇▇▇▇
Facsimile: ▇▇▇-▇▇▇-▇▇▇▇
Firstar Bank, N.A. Firstar Bank, N.A.
Firstar Plaza Firstar Corporate Loan
7th & Washington, ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇. ▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ P.O. Box 2188
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Telephone: ▇▇▇-▇▇▇-▇▇▇▇ Attention: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Facsimile: ▇▇▇-▇▇▇-▇▇▇▇ Telephone: ▇▇▇-▇▇▇-▇▇▇▇
Facsimile: ▇▇▇-▇▇▇-▇▇▇▇
Schedule 1.01(A)
Schedule 1.01(A)
PRO FORMA CONSOLIDATED
OPERATING CASH FLOW ADJUSTMENTS
Schedule 1.01(A)
Schedule 2.01
COMMITMENTS
Bank Revolving Commitment Term A Loan Commitment(1) Term B Commitment
---- -------------------- ------------------------- -----------------
Bank of America, N.A. $17,618,181.81 $15,454,545.46 $64,090,909.09
Barclays Bank PLC $11,400,000.00 $10,000,000.00 $10,909,090.91
CIBC Inc. $ 9,327,272.73 $ 8,181,818.18 $0
Firstar Bank, N.A. $ 9,327,272.73 $ 8,181,818.18 $0
First Union National Bank $ 9,327,272.73 $ 8,181,818.18 $0
-------------- -------------- --
TOTAL: $57,000,000.00 $50,000,000.00 $75,000,000.00
--------
1 The Term A Commitment of each Bank is allocated between the Initial Term A
Commitment and the Additional Term A Commitment. The Initial Term A Commitment
of a Bank is equal to the product of such Bank's Term A Commitment reflected
above multiplied by 0.70 and the Additional Term A Commitment is equal to the
product of such Bank's Term A Commitment reflected above multiplied by 0.30.
Schedule 2.01
Schedule 6.16
FCC LICENSES
I. Owner License Description Expiration Date
Schedule 6.16
Schedule 6.17
SUBSIDIARIES
Schedule 6.17
Schedule 6.21
NETWORK AFFILIATION AGREEMENTS
Schedule 6.21
Schedule 8.05(a)
EXISTING INDEBTEDNESS
Schedule 8.05(a)
Schedule 8.11(e)
INVESTMENTS
Schedule 8.11(e)