Document:

exv10w5

 

Exhibit 10.5

EMPLOYEE MATTERS AGREEMENT

     This
Employee Matters Agreement, dated as of ___, 2005, is made between Clear Channel
Communications, Inc. (“Clear Channel”), a Texas corporation, and Clear Channel Outdoor Holdings,
Inc. (“Holdings”), a Delaware corporation.

Recitals

     WHEREAS, Holdings is an indirect wholly-owned subsidiary of Clear Channel; and

     WHEREAS, the parties contemplate an initial public offering of stock of Holdings after and as
a result of which persons other than Clear Channel will own approximately 10% of the outstanding
shares of Holdings; and

     WHEREAS, the parties desire to set forth in writing the terms of their agreement relating to
certain compensation and employee benefits matters following the initial public offering of stock
of Holdings.

     NOW, THEREFORE, in consideration of the mutual agreements contained, and subject to the
completion of the initial public offering of Holdings stock, the parties hereby agree as follows:

ARTICLE 1

DEFINITIONS

     As used in this Agreement, the following terms shall have the meanings set forth below.

     Section 1.01 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time, any successor statute thereto and all applicable regulations thereunder.

     Section 1.02 “Clear Channel” shall have the meaning ascribed to such term in the preamble
hereto.

     Section 1.03 “Clear Channel Plans” shall mean any of the following arrangements sponsored by
Clear Channel or its subsidiaries (other than Holdings and its subsidiaries):

          (a) any plan, fund, or program which provides health, medical, surgical, hospital or dental
care or other welfare benefits, or benefits in the event of sickness, accident or disability, or
death benefits, apprenticeship or other training programs, or day care centers, scholarship funds,
or employee assistance plans,

          (b) any plan, fund, or program which provides retirement income to employees or results in a
deferral of income by employees for periods extending to the termination of covered employment or
beyond,

 

 

          (c) any plan, fund or program which provides severance, unemployment, vacation or fringe
benefits (including dependent and health care accounts),

          (d) any incentive compensation plan, deferred compensation plan, stock option or stock-based
incentive or compensation plan, or stock purchase plan, or

          (e) any other “employee pension benefit plan” (as defined in Section 3(2) of ERISA), any other
“employee welfare benefit plan” (as defined in Section 3(1) of ERISA), and any other written or
oral plan, agreement or arrangement involving direct or indirect compensation including, without
limitation, insurance coverage, severance benefits, disability benefits, fringe benefits, pension
or retirement plans, profit sharing, deferred compensation, bonuses, stock options, stock purchase,
phantom stock, stock appreciation or other forms of incentive compensation or post-retirement
compensation.

     Section 1.04 “Code” means the Internal Revenue Code of 1986, as amended.

     Section 1.05 “Holdings” shall have the meaning ascribed to such term in the preamble hereto.

     Section 1.06 “IPO” means the initial public offering of shares of Holdings stock, as a result
of which Clear Channel shall own less than 100% but more than 80% of the outstanding shares of
Holdings stock.

     Section 1.07 “Master Agreement” shall mean the Master Agreement Between Clear Channel
Communications, Inc. and Clear Channel Outdoor Holdings, Inc. Dated
______ ___, 2005.

ARTICLE 2

PAYROLL AND EMPLOYEE BENEFIT PLANS

     Section 2.01 Payroll. Following the completion of the IPO, Clear Channel shall
continue to administer the payroll of Holdings and its subsidiaries in a manner and on a basis
consistent with past practice as in effect immediately prior to the IPO, subject, however, to the
terms of this Agreement and such other terms and conditions as may be determined by Clear Channel
with respect to its subsidiaries generally.

     Section 2.02 Employee Benefit Plan Participation. Except as otherwise provided by and
subject to the terms of this Agreement, following the completion of the IPO, Holdings and its
subsidiaries shall continue to be participating employers in the Clear Channel Plans, on the same
basis as is in effect immediately prior to the IPO and in accordance with the terms and provisions
of the Plans as they now exist or are hereafter amended.

     Section 2.03 Termination or Withdrawal of Plan Participation. Notwithstanding
anything to the contrary contained herein or in any Plan, at any time and from time to time, upon
at least 90 days notice, (a) Clear Channel may terminate the participation by Holdings and any of
its subsidiaries in any Plan, and (b) Holdings for itself or any of its subsidiaries may withdraw
as a participating employer in any Plan. Unless sooner terminated and unless and except to the
extent (if any) the parties agree otherwise, the participation by Holdings and its subsidiaries in
all

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Clear Channel Plans, as well as the payroll administration services described in Section 2.01,
will end if and at such time as Clear Channel owns less than 80% of the total combined voting power
of all classes of Holdings’ capital stock entitled to vote.

     Section 2.04 Liabilities Post-Termination. Except as otherwise explicitly and
specifically provided in this Agreement or any subsequent agreement between the parties, if and at
such time as Clear Channel owns less than 80% of the total combined voting power of all classes of
Holdings’ capital stock entitled to vote, Holdings and its subsidiaries shall assume or retain, as
the case may be, and pay, perform, fulfill and discharge any and all liabilities or obligations
relating to the employment or termination of employment of any current or former employee or other
personnel of Holdings or any of its subsidiaries, and their dependents and beneficiaries,
regardless of when such liabilities or obligations are or were incurred.

ARTICLE 3

INCENTIVE COMPENSATION PLANS

     Section 3.01 Annual Incentive Compensation. Holdings shall be responsible for making
any determinations otherwise required to be made by the committee under the Clear Channel
Communications, Inc. 2005 Annual Incentive Plan for the calendar year in which the IPO is completed
with respect to Employees of Holdings and its subsidiaries who are “covered employees” within the
meaning of Section 162(m) of the Code, including determinations of (a) the extent to which
established performance criteria (after taking into account the effects of Clear Channel’s
corporate restructure) have been met, and (b) the payment level for each such Employee. The cost of
such incentives shall be charged to Holdings, consistent with past practice.

     Section 3.02 Stock Incentive Plans.

          (a) Shareholder Approval of Incentive Plan. Prior to the IPO, Clear Channel shall
cause Holdings to adopt and, as the sole shareholder of Holdings, approve the adoption of the Clear
Channel Outdoor Holdings, Inc. 2005 Stock Incentive Plan, with terms and conditions substantially
similar to the terms and conditions of the Clear Channel Communications, Inc. 2001 Stock Incentive
Plan, and with such changes as Clear Channel, acting on the advice of counsel, deems appropriate.

          (b) Clear Channel Options. As authorized by the committee pursuant to its authority
under the Clear Channel Stock Incentive Plans, as soon as practicable after completion of the IPO,
any outstanding Clear Channel stock options held by Employees of Holdings and its subsidiaries
shall be converted into options to purchase Class A shares of Holdings stock pursuant to the Clear
Channel Outdoor Holdings, Inc. 2005 Stock Incentive Plan. The conversion will be structured so as
to preserve the aggregate intrinsic value of each option, as well as the ratio of the per share
exercise price and the per share value of the stock covered by the option, pre- and post-
conversion. The Holdings stock options issued in the conversion will be subject to the same vesting
and other material terms and conditions as are applicable to the predecessor Clear Channel stock
options.

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ARTICLE 4

MISCELLANEOUS

     Section 4.01 Employer Stock in 401(k) Plans. Clear Channel may cause the addition of a
Holdings stock fund to the list of available investments under the Clear Channel 401(k) plans.

     Section 4.02 Applicability to Subsidiaries. Each of Clear Channel and Holdings shall
cause to be performed, and hereby guarantees the performance of, all actions, agreements and
obligations set forth in this Agreement to be performed by an a subsidiary of Clear Channel or
Holdings, respectively.

     Section 4.03 Fiduciary Matters. The parties acknowledge that actions required to be
taken pursuant to this Agreement may be subject to fiduciary duties or standards of conduct under
ERISA or other applicable law. Neither party shall be deemed to be in violation of this Agreement
if it fails to comply with any provision of this Agreement based upon its good faith determination
that to do so would violate such a fiduciary duty or standard. Each party shall be responsible for
taking such actions as are deemed necessary and appropriate to comply with its own fiduciary
responsibilities and shall fully release and indemnify the other party for any liabilities caused
by the failure to satisfy any such responsibility.

     Section 4.04 Headings. The headings contained herein are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement.

     Section 4.05 Counterparts. This Agreement may be executed in one or more
counterparts, and by the different parties to each such agreement in separate counterparts, each of
which when executed shall be deemed to be an original but all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of a signature page to
this Agreement by facsimile shall be as effective as delivery of a manually executed counterpart of
any such Agreement.

     Section 4.06 Assignment; No Third-Party Beneficiaries. This Agreement shall not be
assigned by any party hereto without the prior written consent of the other parties hereto. This
Agreement is for the sole benefit of the parties to this Agreement and their permitted successors
and assigns and nothing in this Agreement, express or implied, is intended to or shall confer upon
any other person or entity any legal or equitable right, benefit or remedy of any nature whatsoever
under or by reason of this Agreement.

     Section 4.07 Amendment. No provision of this Agreement may be amended or modified
except by a written instrument signed by all the parties to such agreement. No waiver by any party
of any provision hereof shall be effective unless explicitly set forth in writing and executed by
the party so waiving. The waiver by either party hereto of a breach of any provision of this
Agreement shall not operate or be construed as a waiver of any other subsequent breach.

     Section 4.08 Severability. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced under any Law or as a matter of public policy, all
other conditions and provisions of this Agreement shall nevertheless remain in full force and
effect. Upon such determination that any term or other provision is invalid, illegal or incapable
of being

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enforced, the parties to this Agreement shall negotiate in good faith to modify this Agreement
so as to effect the original intent of the parties as closely as possible in a mutually acceptable
manner in order that the transactions contemplated by this Agreement be consummated as originally
contemplated to the greatest extent possible.

     Section 4.09 Master Agreement Provisions. The following provisions of the Master
Agreement are hereby incorporated herein by reference and, unless otherwise expressly specified
herein, shall apply as if fully set forth herein: Article V (relating to releases and
indemnification); Article IV (relating to exchange of information and confidentiality); Article VII
(relating to resolution of disputes); and Article VIII (relating to miscellaneous items).

     Section 4.10 Applicable Law. To the extent not preempted by applicable federal law,
this Agreement shall be governed by, construed and interpreted in accordance with the laws of the
State of Texas, without regard to its choice of laws principles, as to all matters, including
matters of validity, construction, effect, performance and remedies.

     IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be signed as of
the date first above written.

	 	 	 	 	 
	 

	 	 	 	CLEAR CHANNEL COMMUNICATIONS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	 	 	CLEAR CHANNEL OUTDOOR HOLDINGS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

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Exhibit 10.10

FIRST AMENDMENT

TO

SENIOR UNSECURED TERM PROMISSORY NOTE

     THIS FIRST AMENDMENT TO SENIOR UNSECURED TERM PROMISSORY NOTE, entered into on October 7,
2005, but in all regards intended to be effective as of August 2, 2005 (this “Amendment”), is made
to the Senior Unsecured Term Promissory Note dated August 2, 2005 (the “Original Note”), in the
original principal amount of $2.5 billion, executed by Clear Channel Outdoor, Inc. a Delaware
corporation (“Maker”), as maker thereof, originally payable to the order of Clear Channel Outdoor
Holdings, Inc., a Delaware corporation (“CCO”), transferred, by endorsement, by CCO to Clear
Channel Holdings, Inc., a Delaware corporation (“Holdings”), and subsequently transferred, by
endorsement, by Holdings to Clear Channel Communications, Inc., a Texas corporation (“CCU”).

     Recitals. CCU, as the current legal and equitable owner and holder, and the payee, of the
Original Note, and Maker desire to amend the Original Note (i) to exclude ab initio from its
mandatory prepayment requirements the equity issuance contemplated by the initial public offering
of CCO and (ii) to clarify that certain borrowings under the Credit Facility will not require a
mandatory prepayment on the Note. Now, therefore, in consideration of the premises, covenants and
agreements herein contained, and for other good and valuable consideration, the receipt,
sufficiency and reasonably equivalent value of which are acknowledged by the parties hereto, Maker
and CCU agree as follows:

     SECTION 1. Definitions. Capitalized terms used but not defined herein have the meanings and
uses assigned in the Original Note, and the term “Note” when used in this Amendment means the
Original Note, as amended hereby.

     SECTION 2. Amendments.

     2.1. The term “Debt Issuance” as defined and used in the Original Note is hereby amended in
its entirety to read as follows:

     “ ‘Debt Issuance’ means each issuance or incurrence of debt of any nature (public or private)
by Maker or its parent (other than CCU, if applicable), or any subsidiaries of either of them,
other than (i) borrowings permitted under the offshore or similar sub-facility pursuant to the
Credit Facility, (ii) other commercial debt for working capital purposes only and (iii) internal
financing from CCU or its designee, including cash management debt from time to time outstanding

     2.2. The term “Equity Issuance” as defined and used in the Original Note is hereby amended in
its entirety to read as follows:

“ ‘Equity Issuance’ means each issuance of equity of any nature (public or private, common,
preferred or otherwise) by the Maker or its parent (other than CCU, if applicable), or any
subsidiaries of either of them, other than any one or more issuances of Class A common
stock of CCO (i) to, or for the benefit of, any officers, directors or employees of, or
consultants to, CCO or CCU (or, without duplication, any subsidiaries
of either of them) pursuant to a qualified plan (under Section 401(a) of the Internal
Revenue Code of 1986, as amended from time to time (together with all rules and regulations
promulgated with respect thereto, the “Code”)), an employee stock purchase

	 	 	 
	EXECUTION COPY	 	First Amendment to Senior Unsecured Term
Promissory Note

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plan that
satisfies the requirements of Section 423 of the Code, CCO’s 2005 Stock Incentive Plan or
any other compensatory plan or program duly approved by CCO’s or CCU’s, as applicable,
board of directors or (ii) pursuant to the initial public offering of Class A common stock
of CCO, provided that the net proceeds of such initial public offering are applied as
described in the registration statement or other applicable disclosure document of CCO
related thereto.”

     SECTION 3. Representations and Warranties. Maker represents and warrants to CCU that Maker’s
representations and warranties set forth in the Original Note are true and correct in all material
respects as if made on the date hereof and on the effective date hereof, except as they may
specifically relate to an earlier date.

     SECTION 4. Continuing Effect of Original Note. Each of the Original Note and the other
Subject Documents, as amended hereby, is hereby ratified and confirmed in all respects, and all
references to the “Note” in the Original Note or any other Subject Document shall mean the Original
Note, as amended hereby. This Amendment shall not constitute an amendment of, or waiver with
respect to, any provision of the Original Note not expressly referred to herein and shall not be
construed as an amendment, waiver or consent to any action on the part of any party hereto that
would require an amendment, waiver or consent of CCU except as expressly stated herein.

     SECTION 5. Governing Law. This Amendment shall be governed by, and construed and interpreted
in accordance with, the law of the State of Texas.

     SECTION 6. Successors and Assigns. This Amendment is binding upon and shall inure to the
benefit of Maker and CCU and their respective successors and assigns permitted by the Note, except
Maker may not assign or otherwise transfer any of its rights or obligations hereunder other than as
provided in the Note.

     SECTION 7. Counterparts. This Amendment may be executed in any number of counterparts, and by
each party hereto on separate counterparts, each of which counterpart when so executed shall be an
original, but all such counterparts taken together shall constitute one and the same instrument. A
counterpart signature page delivered by fax or internet transmission shall be as effective as
delivery of an originally executed counterpart.

[Remainder of Page Left Intentionally Blank]

	 	 	 
	EXECUTION COPY	 	First Amendment to Senior Unsecured Term
Promissory Note

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     IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed and delivered
by their respective proper and duly authorized officers on, and effective as of, the respective
dates set forth above.

	 	 	 	 	 	 	 
	 	 	MAKER:
	 
	 	 	 	 	 	 
	 	 	Clear Channel Outdoor, Inc.
	 
	 	 	 	 	 	 
	 

	 	By
	 	 	 	/s/ Brian Coleman
	 	 	 	 
	 	 	Name:	 	Brian Coleman
	 	 	Title:	 	Senior Vice President — Treasurer
	 
	 	 	 	 	 	 
	 	 	PAYEE:
	 
	 	 	 	 	 	 
	 	 	Clear Channel Communications, Inc.
	 
	 	 	 	 	 	 
	 

	 	By
	 	 	 	/s/ Brian Coleman
	 	 	 	 
	 	 	Name:	 	Brian Coleman
	 	 	Title:	 	Senior Vice President — Treasurer

	 	 	 
	EXECUTION COPY	 	First Amendment to Senior Unsecured Term
Promissory Note

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