Document:

exv10w1

 

Exhibit 10.1

AGREEMENT & RELEASE

     GenCorp Inc. (Company) and William A. Purdy, Jr. (Employee) have entered into this Agreement &
Release (Agreement & Release) to agree to Employee’s resignation as an officer of the Company, to
establish Employee’s continued employment duties and to settle all issues between the parties
hereto. Except to the extent governed by federal law, this Agreement & Release shall be governed
by the statutes and common law of California, excluding any that mandate the use of another
jurisdiction’s laws.

RECITALS

	 	A.	 	Effective March 11, 2002, Employee commenced employment with the Company in the
position of President, Real Estate and has been continuously employed in that position
since that time.
	 
	 	B.	 	The Company desires to reassign Employee and establish new duties for Employee.
	 
	 	 	 	Accordingly, the Company and Employee agree as follows:

          Section 1 — Resignation as Officer; Other Agreements

          (a) Resignation as Officer: Effective on January 29, 2007 (Effective Date), Employee will
resign his position as Vice President of the Company and President, Real Estate and will assume the
new position and duties described in Section 2(a) hereof.

          (b) Resignation of Employment: Unless this Agreement & Release is earlier terminated,
effective June 30, 2008, Employee will resign from all employment with the Company, and on such
date, or if earlier, his last day of employment (Termination Date), Employee will re-execute this
Agreement & Release after which the Company will provide the consideration described more fully in
Section 2(d)(ii) hereof.

          (c) Re-Execution of Agreement & Release: Employee agrees that his re-execution of this
Agreement & Release shall update this Agreement & Release to waive any Claims (as defined in
Section 5(b) hereof) that may have accrued since Employee first executed this Agreement & Release.

          (d) Termination of Severance Agreement: In consideration of the benefits and payments made to
Employee under this Agreement & Release as provided in Section 2 hereof, and in consideration of
the additional amount of $1,000 to be paid to Employee within fifteen (15) days after the Effective
Date as well as other good and valuable consideration, Employee hereby agrees that that certain
Severance Agreement by and between the Company and Employee signed on August 28, 2006 but effective
as of January 1, 2006 (Change in Control Agreement), is hereby terminated as of the Effective Date,
and Employee shall have no rights under the Change in Control Agreement after the Effective Date,
and such Change in Control Agreement shall be null and void as of the Effective Date.

 

 

          Section 2 — Benefits and Consideration for Release

     If Employee signs and does not revoke this Agreement & Release, then in return for the
promises and acknowledgements herein, the Company will provide Employee with the following
consideration, amounts and/or benefits set forth in this Section 2, which consideration is
conditioned on Employee’s promise to re-execute this Agreement & Release on the Termination Date:

          (a) New Duties: Commencing on the Effective Date, Employee will be re-assigned to a new
position with the Company, the duties of which are set forth on Schedule A attached hereto and made
a part hereof (Duties). Employee agrees to use his reasonable commercial efforts to carry out his
Duties. Employee will report to the Company’s Chief Executive Officer or his designee.

          (b) Pre-Termination Consideration: Commencing on the Effective Date, Employee will receive
salary (at the rates specified below) less appropriate deductions, and pro-rated for any partial
months, which shall be paid on the Company’s regular paydays, through June 30, 2008 or, if earlier,
the Termination Date. Subject to the provisions of Section 5(f) hereof, prior to the Termination
Date, salary will be paid at the rate of (i) $24,167 per month during the period commencing on the
Effective Date and ending on the March 31, 2008, and (ii) $17,500 per month during the period
commencing on April 1, 2008 and ending on June 30, 2008. Except as otherwise noted herein, until
the Termination Date, Employee will continue to be eligible to participate in all applicable
Company medical, dental, vision, life insurance, healthcare spending account, retirement and
benefit restoration plans, as well as any other benefits provided by the Company, in which Employee
participated prior to the Effective Date.

          (c) Accrued Vacation Pay: Within fifteen (15) days after the Effective Date, the Company will
pay to Employee a lump sum amount, less applicable withholding taxes and other deductions equal to
the amount of his vacation pay accrued through the Effective Date.

          (d) Cash Payments:

               (i) Employee will receive a lump sum payment of $2,500 within fifteen (15) days after
Employee first executes this Agreement & Release.

               (ii) Upon the Termination Date and re-execution of this Agreement & Release, the
Company will pay Employee $20,000 unless Employee thereafter properly revokes his waiver of
ADEA claims in accordance with Section 5(f) hereof, in which case the portion of such
payment being paid for his ADEA waiver (as specified in Section 5(f) hereof) shall not be
paid.

          (e) Golf Membership: Within fifteen (15) days after the Effective Date, Employee shall pay to
the Company the amount of $30,000 in payment for that certain golf membership owned by the Company
pursuant to that certain Subscription Agreement by and between the Company and Granite Bay Golf
Club, Inc. dated November 2002 and related documents (the “Membership”), to the extent the
Membership allows such transfer. Employee and the Company agree to execute any and all documents
necessary to transfer the Membership to Employee to the extent the Membership allows such transfer.
Employee shall be responsible for any taxes associated with such transfer.

 

 

          (f) Unvested Equity: As of the Effective Date, the equity awards previously awarded to
Employee that remain unvested as set forth on Schedule B attached hereto and made a part hereof
shall be forfeited by Employee. Within fifteen (15) days after Employee first executes
this Agreement & Release, the Company shall pay to Employee the amount of $62,500 in
consideration for forfeiting and cancelling all such unvested awards and Employee shall have no
rights to any of such awards. Employee and the Company agree to execute any and all documents
necessary to accomplish the forfeiture and cancellation of such awards. Nothing in this Agreement
& Release is intended to diminish or alter any rights Employee may have in any vested equity awards
(e.g. stock and/or stock options) that vested and became non-forfeitable prior to the Effective
Date.

          Section 3 — Benefits After the Effective Date

          (a) Compensation and Benefit Plans Terminating on the Effective Date: Notwithstanding
anything contained in this Agreement & Release to the contrary, Employee will not participate under
any stock option, bonus, incentive compensation, or commission plan of the Company or any affiliate
following the Effective Date. Employee acknowledges and understands that, following the Effective
Date, he will not be eligible for any future grants of stock options, stock appreciation rights,
stock grants or other equity based compensation, whether non-qualified, restricted or other.

          (b) Compensation and Benefit Plans Terminating on the Termination Date: Employee will not
participate in any medical, dental, vision, life insurance, retirement, and other compensation or
benefit plans of the Company or any affiliate following the Termination Date. Thereafter, Employee
will have no rights under any of those plans, except as follows:

               (i) Group Insurance: Employee will have his legally-mandated rights, if any,
to COBRA continuation coverage as to any Company-provided medical, dental, or vision plan
in which he participates.

               (ii) Retirement Benefits: Employee will retain his vested benefits under all
qualified and non-qualified retirement plans of the Company and all rights associated with
such benefits, as determined under the official terms of those plans.

          (c) Payments under this Agreement & Release: Payments made under this Agreement & Release
(other than payments of salary as provided in Section 2(b) hereof; if applicable, payments of
salary as provided in Section 4(b) hereof; and payments for accrued vacation as provided in Section
2(c) hereof) will not be included in Employee’s compensation for purposes of calculating the
benefits to which he is entitled under any employee benefit program, notwithstanding anything in it
to the contrary.

          (d) Vacation: Following the Effective Date, Employee will no longer accrue any vacation.

          Section 4 — Termination of Employment Prior to June 30, 2008

          (a) Termination: The Company and Employee agree that, regardless of any other provision
herein, Employee’s employment hereunder may be terminated under the following circumstances.
However, the Company and Employee agree that if employment is terminated under

 

 

the following
circumstances, this Agreement & Release is not cancelled and the consideration provisions below
provide Employee’s exclusive remedy for termination of employment:

               (i) Death. Employee’s employment with the Company shall terminate upon his
death;

               (ii) Termination by Company for Cause. Upon fifteen (15) days written notice
to Employee, and subject to Employee’s right to cure as described in Section 4(b)(iii)
hereof, the Company may terminate Employee’s employment with the Company for Cause (as
defined below);

               (iii) Termination by Company without Cause. Upon written notice to Employee,
the Company may terminate Employee’s employment with the Company without Cause;

               (iv) Termination by Employee for Good Reason. Upon fifteen (15) days written
notice to the Company, and subject to the Company’s right to cure as described in Section
4(b)(iv) hereof, Employee may terminate his employment with the Company for Good Reason (as
defined below); or

               (v) Termination by Employee without Good Reason. Upon written notice to the
Company, Employee may terminate his employment with the Company without Good Reason.

          (b) Consideration Upon Termination:

               (i) Termination by the Company without Cause or by Employee for Good Reason or by
Employee’s Death. If prior to June 30, 2008, (1) the Company terminates Employee’s
employment without Cause, (2) Employee resigns his employment for Good Reason (subject to
the Company’s right to cure described in Section 4(b)(iv) hereof), or, (3) Employee’s
employment is terminated by his death, then upon re-execution of the Agreement & Release by
Employee (or his legal representative as the case may be) after such termination as
provided in Section 2(d) hereof, the Company shall pay to Employee (or his estate as
applicable) not later than fifteen (15) days following the date of such termination an
amount equal to (i) the total amount of salary and accrued vacation payments required
under Sections 2(b) and 2(c) hereof, less (ii) any salary or accrued vacation amounts
already paid under Sections 2(b) and 2(c) hereof after the Effective Date; and any amounts
due and payable under Sections 2(d) and 2(f) hereof.

               (ii) Termination by the Company with Cause or by Employee for any reason except
Good Reason. Subject to Employee’s right to cure described in Section 4(b)(iii)
hereof, if, before June 30, 2008, Employee’s employment is terminated by the Company with
Cause or by Employee for any reason other than Good Reason, the Company shall have no
further obligation to Employee for any benefits under Sections 2(b) and 2(d) hereof.

               (iii) Definition of Cause. For purposes of this Agreement & Release, “Cause”
means that Employee shall have committed:

 

 

	 	a.	 	a criminal violation
involving fraud, embezzlement or theft in connection with his
duties or in the course of his employment with the Company or
any subsidiary;
	 
	 	b.	 	intentional wrongful damage
to property of the Company or any subsidiary; or
	 
	 	c.	 	intentional wrongful
disclosure of information of the Company or any subsidiary
that Employee knows or reasonably should have known is
confidential.

     In the event that the Company gives Employee written notice that it intends to terminate
Employee’s employment for Cause, then in such written notice the Company shall set forth the basis
for its conclusion that it has Cause to terminate Employee’s employment. Employee shall thereafter
have fifteen (15) days within which to cure the conduct alleged to be Cause for termination and/or
to demonstrate to the Company’s satisfaction, which satisfaction shall not unreasonably be
withheld, why no Cause for termination exists.

   (iv) Definition of Good Reason. For purposes of this Agreement & Release,
“Good Reason” means:

	 	a.	 	a significant increase in, or
significant adverse change in the nature or scope of, the
Duties;
	 
	 	b.	 	conduct by the Company that
otherwise would support a claim of “constructive discharge”
within the meaning of California law; or
	 
	 	c.	 	material breach by the Company
of any of its obligations under this Agreement & Release
including, but not limited to, a failure to pay when due any of
the amounts under Sections 2(b)-(d) and Section 2(f),
inclusive.

     In the event that Employee gives the Company written notice that he intends to terminate his
employment for Good Reason, then in such written notice Employee shall set forth the basis for his
conclusion that he has Good Reason to terminate his employment. The Company shall thereafter have
fifteen (15) days within which to cure the conduct alleged to be Good Reason for termination and/or
to demonstrate to Employee’s satisfaction, which satisfaction shall not unreasonably be withheld,
why no Good Reason for termination exists.

   (v) No Termination Without Cause Period. Prior to September 30, 2007, the
Company may not terminate Employee’s employment hereunder, except for Cause. If, prior to
September 30, 2007, Employee terminates his employment hereunder for Good Reason, then such
termination shall be deemed to have occurred and to be effective no earlier than September
30, 2007.

 

 

          Section 5 — Employee Release

          (a) In General: Employee irrevocably and unconditionally releases all the claims described in
Section 5(b) hereof that he may now have against the Released Parties listed in Section 5(d)
hereof.

          (b) Claims Released: The claims released under Section 5(a) hereof include all known and
unknown claims, promises, causes of action, or similar rights of any type that Employee presently
may have (Claims) with respect to any Released Party listed in Section 5(d) hereof. Employee
understands that the Claims he is releasing might arise under many different foreign, domestic,
national, state, or local laws (including statutes, regulations, other administrative guidance, and
common law doctrines), such as the following:

Anti-discrimination statutes, such as the Age Discrimination in Employment
Act and Executive Order 11,141, which prohibit age discrimination in employment;
Title VII of the Civil Rights Act of 1964, Sections 1981 and 1983 of the Civil
Rights Act of 1866, and Executive Order 11,246, which prohibit discrimination
based on race, color, national origin, religion, or sex; the Equal Pay Act, which
prohibits paying men and women unequal pay for equal work; the Americans With
Disabilities Act and Sections 503 and 504 of the Rehabilitation Act of 1973, which
prohibit discrimination based on disability; and any other federal, state, or
local laws prohibiting discrimination, such as the California Fair Employment and
Housing Act, which prohibits discrimination in employment based on actual or
perceived race, religion, color, national origin, ancestry, physical or mental
disability, medical condition, marital status, sex, age, sexual orientation, or
association with a person who has, or is perceived to have, and any of those
characteristics.

Federal employment statutes, such as the WARN Act, which requires that
advance notice be given of certain work force reductions; Employee Retirement
Income Security Act of 1974, which, among other things, protects employee
benefits; the Fair Labor Standards Act of 1938, which regulates wage and hour
matters; the Family and Medical Leave Act of 1993, which requires employers to
provide leaves of absence under certain circumstances; and any other federal laws
relating to employment, such as veterans’ reemployment rights laws.

Other laws, such as any federal, state, or local laws providing workers’
compensation benefits, mandating leaves of absence, restricting an employer’s
right to terminate employees, or otherwise regulating employment; any federal,
state, or local law enforcing express or implied employment contracts or requiring
an employer to deal with employees fairly or in good faith; any other federal,
state, or local laws providing recourse for alleged wrongful discharge, tort,
physical or personal injury, emotional distress, fraud, negligent
misrepresentation, defamation, and similar or related claims, and any other law,
such as California Labor Code Section 200 et seq., relating to salary, commission,
compensation, benefits, and other matters, the California Workers’ Compensation
Act, and any applicable California Industrial Welfare Commission order.

 

 

Examples of released Claims include, but are not limited to the following
(except to the extent explicitly preserved by Sections 2(b), 3(b), 5(e) or 5(f)
hereof): (i) Claims that in any way relate to or arose during Employee’s
employment with the Company, or the termination of that employment, such as Claims
for compensation, bonuses, commissions, lost wages, or unused accrued vacation or
sick pay; (ii) Claims that in any way relate to the design or administration of
any employee benefit program; (iii) Claims that Employee has irrevocable or vested
rights to severance or similar benefits or to post-employment health or group
insurance benefits; (iv) any Claims to attorneys’ fees or other indemnities (such
as under the Civil Rights Attorneys’ Fees Act), with respect to Claims Employee is
releasing; or (v) any rights under the Change in Control Agreement described in
Section 1(d) hereof.

          (c) Unknown Claims: Employee expressly waives all rights he might have under any law that is
intended to protect him from waiving unknown claims (such as California Civil Code Section 1542),
and understand that this Release extends to unknown claims as well.

          (d) Released Parties: The Released Parties are the Company, all current and former parents,
subsidiaries, related companies, partnerships, or joint ventures, and, with respect to each of
them, their predecessors and successors; and, with respect to each such entity, all of its past,
present, and future employees, officers, directors, stockholders, owners, representatives, assigns,
attorneys, agents, insurers, employee benefit programs (and the trustees, administrators,
fiduciaries, and insurers of such programs), and any other persons acting by, through, under or in
concert with any of the persons or entities listed in this Section 5(d), and their successors.

          (e) Claims Not Released and Excluded Claims: This Agreement & Release does not release: (i)
any rights or claims that arise after the Effective Date until Employee re-executes this Agreement
& Release as provided in Section 1(b) hereof; (ii) any rights or claims that arise after the
Termination Date; or (iii) Employee’s right to enforce this Agreement & Release. Excluded from
the general releases above are any claims or rights that cannot be waived by law including, but not
limited to, Employee’s right to be indemnified by Company as provided in California Labor Code §
2802. Also excluded from the general release is Employee’s right to file a charge with an
administrative agency or participate in any agency investigation. Employee understands, however,
that he is waiving, and hereby does, waive the right to recover any money in connection with such a
charge or investigation.

          (f) Revocation Rights of ADEA Waiver:

          (1) Revocation Following Execution Date: Employee understands that he may revoke this
Agreement & Release, including the waiver of ADEA claims in Sections 5(b) and 7(b) hereof within
seven (7) days after first executing this Agreement & Release. The last day on which this
Agreement Release can be revoked is called the “Last Revocation Day.” Revocation can be made by
delivering a written notice of revocation to:

Mark A. Whitney

Senior Vice President, Law

GenCorp Inc.

P.O. Box 537012

Sacramento, CA 95853-7012

 

 

(courier service — Highway 50 & Aerojet Road

Rancho Cordova, CA 95742)

Tel: (916) 351-8652

Fax: (916) 351-8665

For this revocation to be effective, it must be received no later than the close of business on the
Last Revocation Day. If Employee revokes, this Agreement & Release shall not be effective and
Employee will not receive the benefits described in Section 2 hereof (other than those benefits
required to be provided to Employee by law (e.g. payment of accrued vacation). If Employee does
not revoke this Agreement & Release, it shall go into effect on the day after the Last Revocation
Day and the benefits described in Section 2 shall be provided, subject to the provisions of Section
5(f)(2) hereof.

          (2) Revocation Following Termination Date: Employee further understands that within
seven (7) days after re-executing this Agreement & Release following the Termination Date, Employee
has a right to revoke only the portion of the Agreement & Release covering the waiver of ADEA
claims in Sections 5(b) and 7(b) hereof arising after the Effective Date but before the Termination
Date. Employee acknowledges that seventy five percent (75%) of the consideration paid under
Section 2(d) hereof is to induce him to release any claims he may have under the Age Discrimination
in Employment Act (ADEA). If Employee properly revokes his waiver of ADEA claims in accordance
with this Section 5(f)(2), the portion of each such payment being paid for his ADEA waiver under
Section 2(d)(ii) hereof (as specified in this Section 5(f)(2)) shall not be paid, in which case he
will not receive the amounts or benefits that are being paid to for his release of ADEA claims and
his agreement to release ADEA claims will never go into effect. Employee acknowledges that his
waiver of ADEA claims under those sections constitutes an entirely separate agreement from the
balance of this Agreement & Release (including those sections to the extent they waive non-ADEA
claims).

          Section 6 — Company Release

     The Company, on behalf of itself and the other Released Parties:

     (i) irrevocably and completely releases Employee, his heirs, administrators,
executors, successors and assigns, from any and all known and unknown claims, promises,
causes of action, damages, costs, liabilities or similar rights of any type that the
Company and Released Parties now have or may have had against Employee at any time up to
the Effective Date;

     (ii) acknowledges and agrees that delivery to Employee of the final payment required
to be made pursuant to Section 2(d)(ii) will be deemed to update this Company Release to
waive any claims that the Company and Released Parties may have accrued since the Company
first executed this Agreement & Release; and

     (iii) expressly waives all rights the Company and the Released Parties might have
under any law that is intended to protect them from waiving unknown claims (such as
California Civil Code Section 1542).

 

 

          Section 7 — Promises

          (a) Employment Termination: Employee agrees that his employment with the Company and its
affiliates will end on the Termination Date and that he is accepting payments and benefits under
this Agreement & Release in lieu of any other rights or benefits to which he possibly could be or
become entitled as a result of his continued employment with the Company.

          (b) Pursuit of Claims: Neither party hereto has filed, initiated, or prosecuted (or caused to
be filed, initiated, or prosecuted) any lawsuit, complaint, charge, action, compliance review,
investigation, or proceeding with respect to any claim released in Section 5 or 6 (as applicable)
hereof, and each party hereto promises never to do so in the future, whether as a named plaintiff,
class member, or otherwise. Employee promises to request any administrative agency or other body
assuming jurisdiction of any such lawsuit on his behalf, to withdraw from the matter or dismiss it
with prejudice. However, the two preceding sentences shall not preclude Employee from filing or
prosecuting a charge with any administrative agency with respect to any such Claim as long as
Employee does not seek any damages, remedies, or other relief recovery of which has been released
by virtue of this Agreement & Release. This Section 7(b) shall not prohibit Employee from
challenging the validity of the ADEA Claim release in Section 5(b) hereof. If Employee is ever
awarded or recovers any amount as to a Claim Employee has purported to waive in this Agreement &
Release, Employee agrees that the amount of the award or recovery shall be reduced by the amounts
Employee was paid under this Agreement & Release, increased appropriately for the time value of
money, using an interest rate of ten percent (10%) per annum. To the extent such a setoff is not
effected, Employee promises to pay, or assign to the Company his right to receive, the amount that
should have been set off. Employee promises never to bring or participate in an action against any
Released Party under California Business & Professions Code Section 17200 or under any other unfair
competition law of any jurisdiction.

          (c) Company Property and Debts: On or before the Termination Date, or earlier at the request
of the Company, Employee will return to the Company all files, memoranda, documents, records,
copies of the foregoing, Company-provided credit cards, keys, building passes, security passes,
access or identification cards, and any other property of the Company or any Released Party in his
possession or control and will have cleared all expense accounts, repaid everything he may owe to
the Company or any Released Party, paid all amounts he may owe on Company-provided credit cards or
accounts (such as cell phone accounts), and canceled or personally assumed any such credit cards or
accounts.

          (d) Taxes: Employee acknowledges that he is responsible for paying any taxes on amounts he
actually or constructively receives as a result of this Agreement & Release. Employee agrees that
the Company is to report such payments to tax authorities and to withhold taxes from them as it
determines it is legally required to do.

          (e) Ownership of Claims: The parties represent that they have not assigned or transferred any
claim they are purporting to release, nor have they attempted to do so.

          (f) Non-admission of Liability: Nothing in this Agreement & Release is intended to be or
should be construed as an admission of wrongdoing or liability by either party hereto.

 

 

          (g) No Disparagement or Harm: The parties hereto agree not to criticize, denigrate, or
otherwise disparage one another. Specifically, Employee agrees not to criticize, denigrate, or
otherwise disparage any Released Party or any of the Company’s products, processes, experiments,
policies, practices, standards of business conduct, or areas or techniques of research. In the
event that any future potential employer of Employee contacts the Company for an employment
recommendation, the Company is authorized to state the dates of Employee’s employment with the
Company, his position(s) with the Company and his ending salary. Nothing in this Section 7(g)
shall prohibit Employee from responding truthfully to any inquiry made of him by any officer,
employee or director of the Company with respect to any matter pertaining either to the business of
the Company or to any Released Party. In addition, nothing in this Section 7(g) shall prohibit
either party from complying with any lawful subpoena or court order or taking any other actions
affirmatively authorized or required by law.

          (h) Existing Obligations Continue: Employee agrees to remain bound by any Company or Company
affiliate agreement or policy relating to confidential information, invention, or similar matters
to which he may now be subject. Nothing in this Section 7(h) is intended to prohibit Employee from
engaging in personal business activities that do not materially interfere with the performance of
his Duties.

          (i) Implementation and Cooperation: The parties agree to cooperate as necessary with one
another, including executing any documents, to implement this Agreement & Release and in connection
with any transfer of responsibilities from Employee to others.

          (j) False Claims Representations and Promises: Employee has disclosed to the Company any
information he has concerning any conduct involving the Company or any affiliate that he has any
reason to believe may be unlawful or that involves any false claims to the United States. Employee
promises to cooperate fully in any investigation the Company or any affiliate undertakes into
matters occurring during his employment with the Company or any affiliate. Employee understands
that nothing in this Agreement & Release prevents him from cooperating with any U.S. government
investigation. In addition, to the fullest extent permitted by law, Employee hereby irrevocably
assigns to the U.S. government any right he may have to any proceeds or awards in connection with
any false claims proceedings against the Company or any affiliate.

          (k) Confidentiality: Employee understands that the Company is required to publicly file a
copy of this Agreement & Release with the Securities & Exchange Commission and the Company may do
so without the prior approval of Employee. After the Effective Date, except as required by law,
Employee agrees to keep the substance of the negotiations leading to this Agreement & Release
confidential and shall not disclose such matters to any third person, other than attorneys,
accountants, tax preparers and other financial advisors for Employee. If Employee is served with a
subpoena or other legal process that would require the disclosure of such matters, Employee shall
immediately notify the Company so that the Company may seek a protective order or other appropriate
remedy and/or waive compliance with the provisions of this Section 7(k).

          (l) Consideration of Release: Employee acknowledges that, in compliance with the Age
Discrimination in Employment Act, before signing this Agreement & Release and before re-executing
it upon his Termination Date, he was given at least 21 days in which to consider this Agreement &
Release. Employee waives any right he might have to additional time within which to consider this
Agreement & Release. Employee further acknowledges that: (1) he took advantage of the time he was
given to consider this Agreement & Release before signing it; (2) he carefully read

 

 

this Agreement & Release; (3) he fully understands it; (4) he is entering into it voluntarily;
(5) he is receiving valuable consideration in exchange for the execution of this Agreement &
Release that he would not otherwise be entitled to receive; and (6) the Company, in writing,
encouraged him to discuss this Agreement & Release with my attorney (at his own expense) before
signing it, and that he did so to the extent he deemed appropriate. Employee also acknowledges and
understands that he may revoke this Agreement & Release anytime within seven (7) days after signing
it.

          Section 8 — Miscellaneous

          (a) Entire Agreement: This Agreement & Release is the entire agreement between the parties
relating to Employee’s employment with the Company after the Effective Date, and the termination of
employment or the subject matter of this Agreement & Release. This Agreement & Release may not be
modified or canceled in any manner, nor may any provision of it or any legal remedy with respect to
it be waived, except by a writing signed by both Employee and an authorized Company official.
Employee acknowledges that the Company has made no representations or promises to him (such as that
his former position will remain vacant), other than those in or referred to by this Agreement &
Release. If any provision in this Agreement & Release is found to be unenforceable, all other
provisions will remain fully enforceable.

          (b) Successors: This Agreement & Release shall be binding upon, and inure to the benefit of,
the parties, and their respective heirs, administrators, representatives, executors, successors,
and assigns.

          (c) Interpretation: This Agreement & Release shall be construed as a whole according to its
fair meaning. It shall not be construed strictly for or against Employee, the Company or any
Released Party. Unless the context indicates otherwise, the term “or” shall be deemed to include
the term “and” and the singular or plural number shall be deemed to include the other. Captions
are intended solely for convenience of reference and shall not be used in the interpretation of
this Agreement & Release.

          Section 9 — Arbitration of Disputes

          (a) Arbitrable Disputes: The parties agree to resolve any claims they may have with each
other (except, if either party so elects, any dispute for which injunctive relief is a principal
remedy) through final and binding arbitration in accordance with this Section 9. Employee also
agrees to resolve in accordance with this Section 9 any claim between him and any other Released
Party who offers or agrees to arbitrate the claim in this manner. This arbitration requirement
applies to, among other things, disputes about the validity, interpretation, or effect of this
Agreement & Release or alleged violations of it, claims of discrimination under federal or state
law, or other statutory violation claims.

          (b) The Arbitration: The parties are parties to a Mutual Agreement to Arbitrate Claims, dated
March 11, 2002, a copy of which is attached hereto as Schedule C. Except as otherwise provided in
this Section 9, the parties’ rights and obligations in connection with the arbitration, as well as
the conduct of the arbitration, shall be in accordance with the requirements set forth in the
following sections of Schedule C: Time Limits for Commencing Arbitration and Required Notice of All
Claims; Representation; Discovery; Designation of Witnesses; Subpoenas; Arbitration Procedures;
Arbitration Fees and Costs; and Judicial Review.

 

 

          (c) Fees and Expenses: In any arbitration brought to enforce any provision of this
Agreement & Release, the prevailing party shall be entitled to reasonable attorney’s fees incurred
in connection with such arbitration, in addition to any other relief that may be awarded.

          (d) Exclusive Remedy: Arbitration in this manner shall be the exclusive remedy for any claim
that must be arbitrated pursuant to this Section 9. Should either party attempt to resolve such a
claim by any method other than arbitration pursuant to this Section 9, the responding party will be
entitled to recover from the initiating party all damages, expenses, and attorneys’ fees incurred
as a result of that breach.

Initialed:                     Company ___                    Employee ___

          Executed on this 29th day of January, 2007.

	 	 	 	 	 
	 

	 	/S/ William A. Purdy
 

WILLIAM A. PURDY, JR.
	 	 

          Executed on this 29th day of January, 2007.

	 	 	 	 	 	 	 
	 	 	GENCORP INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Its:
	 	/S/ Mark A. Whitney
 

Senior Vice President, Law
	 	 

          Re-executed after my                     , 200___Termination Date on this ___ day of
                    , 200___.

	 	 	 	 	 
	 

	 	 

WILLIAM A. PURDY, JR.exv10w1

 

Exhibit 10.1

[Execution Copy]

 

SERIES E INCREMENTAL LOAN AGREEMENT

dated as of

March 28, 2007

 

LAMAR MEDIA CORP.

 

JPMORGAN SECURITIES INC.,

as Sole Lead Arranger and Sole Bookrunner

 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 

 

 

 

SERIES E INCREMENTAL LOAN AGREEMENT

               SERIES E INCREMENTAL LOAN AGREEMENT dated as of March 28, 2007 between LAMAR MEDIA CORP. (the
“Company”), the SUBSIDIARY GUARANTORS party hereto (the “Subsidiary Guarantors” and
together with the Company, the “Credit Parties”), the SERIES E INCREMENTAL LENDERS party
hereto and JPMORGAN CHASE BANK, N.A., as Administrative Agent for the lenders (in such capacity,
together with its successors in such capacity, the “Administrative Agent”).

               The Company, the Subsidiary Borrowers party thereto, the Subsidiary Guarantors party thereto,
the lenders party thereto and JPMorgan Chase Bank, N.A., as the Administrative Agent, are parties
to a Credit Agreement dated as of September 30, 2005 (as heretofore amended, the “Credit
Agreement”).

               Section 2.01(c) of the Credit Agreement contemplates that the Company may request that one or
more persons (which may include the Lenders under the Credit Agreement) offer to enter into
commitments to make “Incremental Loans” under and as defined in said Section 2.01(c), subject to
the conditions specified in said Section 2.01(c). The Company has requested that $250,000,000 in
aggregate principal amount of Incremental Loans under said Section 2.01(c) be made available to it
in a single series of term loans to be designated the “Series E Incremental Loans”. The Series E
Incremental Lenders (as defined below) are willing to make such loans on the terms and conditions
set forth below and in accordance with the applicable provisions of the Credit Agreement, and
accordingly, the parties hereto hereby agree as follows:

ARTICLE I

DEFINED TERMS

               Terms defined in the Credit Agreement are used herein as defined therein. In addition, the
following terms have the meanings specified below:

     “Required Series E Incremental Lenders” means Series E Incremental Lenders
having Series E Incremental Loans and unused Series E Incremental Commitments representing
at least a majority of the sum of the total Series E Incremental Loans and unused Series E
Incremental Commitments at such time.

     “Series E Incremental Commitment” means, with respect to each Series E
Incremental Lender, the commitment of such Lender to make Series E Incremental Loans
hereunder. The amount of each Series E Incremental Lender’s Series E Incremental

Series E Incremental Loan Agreement

 

 

 -2-

Commitment is set forth on Schedule I hereto. The aggregate original amount of the
Series E Incremental Commitments is $250,000,000.

     “Series E Incremental Lender” means (a) on the date hereof, the Persons listed
on Schedule I hereto under the caption “Series E Incremental Lenders” and (b) thereafter,
any other Person from time to time holding Series E Incremental Commitments or Series E
Incremental Loans after giving effect to any assignments thereof pursuant to Section 10.04
of the Credit Agreement.

     “Series E Incremental Loan Effective Date” means the date on which the
conditions specified in Article IV are satisfied (or waived by the Required Series E
Incremental Lenders).

     “Series E Incremental Loans” means the Loans made to the Company pursuant to
this Agreement which shall constitute a single Series of Incremental Loans under Section
2.01(c) of the Credit Agreement.

ARTICLE II

SERIES E INCREMENTAL LOANS

               Section 2.01. Series E Incremental Commitments. Subject to the terms and conditions
set forth herein and in the Credit Agreement, each Series E Incremental Lender agrees to make
Series E Incremental Loans to the Company, in an aggregate principal amount equal to such Series E
Incremental Lender’s Series E Incremental Commitment. Proceeds of Series E Incremental Loans shall
be used in accordance with Section 6.09 of the Credit Agreement.

               Section 2.02. Termination of Series E Incremental Commitments. Unless previously
terminated, the Series E Incremental Commitments shall terminate after the Borrowing of the Series
E Incremental Loans on the Series E Incremental Loan Effective Date.

Series E Incremental Loan Agreement

 

 

 -3-

               Section 2.03. Repayment of Series E Incremental Loans. The Company hereby
unconditionally promises to pay to the Administrative Agent for the account of the Series E
Incremental Lenders the outstanding principal amount of the Series E Incremental Loans on each
Principal Payment Date set forth below in the aggregate principal amount set forth opposite such
Principal Payment Date:

	 	 	 	 	 
	Principal Payment Date	 	Principal Amount
	June 30, 2009

	 	$	3,125,000	 
	September 30, 2009

	 	$	3,125,000	 
	December 31, 2009

	 	$	3,125,000	 
	 
	 	 	 	 
	March 31, 2010

	 	$	3,125,000	 
	June 30, 2010

	 	$	6,250,000	 
	September 30, 2010

	 	$	6,250,000	 
	December 31, 2010

	 	$	6,250,000	 
	 
	 	 	 	 
	March 31, 2011

	 	$	6,250,000	 
	June 30, 2011

	 	$	9,375,000	 
	September 30, 2011

	 	$	9,375,000	 
	December 31, 2011

	 	$	9,375,000	 
	 
	 	 	 	 
	March 31, 2012

	 	$	9,375,000	 
	June 30, 2012

	 	$	43,750,000	 
	September 30, 2012

	 	$	43,750,000	 
	December 31, 2012

	 	$	43,750,000	 
	 
	 	 	 	 
	March 31, 2013

	 	$	43,750,000	 

To the extent not previously paid, all Series E Incremental Loans shall be due and payable on March
31, 2013.

               Notwithstanding the foregoing, if on any Test Date the maturity date for any then-outstanding
Senior Subordinated Notes, New Senior Subordinated Notes or New Senior Notes, or of any other
convertible notes or notes offered and sold publicly or under Rule 144A, shall fall within six
months after the Test Date then the Series E Incremental Loans shall be paid in full on the date
that is three months after the Test Date, provided that the foregoing shall not apply if
the Required Series E Incremental Lenders shall elect otherwise at any time prior to the Test Date.

               Section 2.04. Applicable Rate. The “Applicable Rate” means, in the case of
any Type of Series E Incremental Loans, the respective rates indicated below for Series E

Series E Incremental Loan Agreement

 

 

 -4-

Incremental Loans of such Type based upon the Total Debt Ratio as at the last day of the
fiscal quarter most recently ended as to which the Company has delivered financial statements
pursuant to Section 6.01 of the Credit Agreement:

	 	 	 	 	 	 	 	 	 
	Range	 	 	 	 
	of 	 	Base Rate Series E	 	Eurodollar Series E
	Total Debt Ratio 	 	Incremental Loans	 	Incremental Loans
	 
	Greater than or equal
to 5.00 to 1
	 	 	0.250	%	 	 	1.250	%
	Less than 5.00 to 1
and greater than or
equal to 3.00 to 1
	 	 	0.000	%	 	 	1.000	%
	Less than 3.00 to 1
and greater than or
equal to 2.50 to 1
	 	 	0.000	%	 	 	0.875	%
	Less than 2.50 to 1
	 	 	0.000	%	 	 	0.750	%

               Each change in the “Applicable Rate” based upon any change in the Total Debt Ratio shall
become effective for purposes of the accrual of interest (including in respect of all
then-outstanding Series E Incremental Loans) hereunder on the date three Business Days after the
delivery to the Administrative Agent of the financial statements of the Company for the most
recently ended fiscal quarter pursuant to Section 6.01 of the Credit Agreement, and shall remain
effective for such purpose until three Business Days after the next delivery of such financial
statements to the Administrative Agent hereunder.

               Notwithstanding the foregoing, in the event the Company consummates any Acquisition or
Disposition for aggregate consideration of $75,000,000 or more, the Company shall forthwith deliver
to the Administrative Agent a certificate of a Financial Officer, in form and detail satisfactory
to the Administrative Agent, setting forth a redetermination of the Total Debt Ratio reflecting
such Acquisition or Disposition, and on the date three Business Days after the delivery of such
certificate, the Applicable Rate shall be adjusted to give effect to such redetermination of the
Total Debt Ratio.

               Anything in this Agreement to the contrary notwithstanding, the Applicable Rate shall be the
highest rates provided for above if the certificate of a Financial Officer shall not be delivered
by the times provided in Section 6.01 of the Credit Agreement or within three Business Days after
the occurrence of any Acquisition or Disposition described above (but only, in the case of this
paragraph, with respect to periods prior to the delivery of such certificate).

               Section 2.05. Status of Agreement. Series E Incremental Commitments of each Series E
Incremental Lender constitute Incremental Loan Commitments and each Series E Incremental Lender
constitutes an Incremental Loan Lender, in each case under and for all

Series E Incremental Loan Agreement

 

 

 -5-

purposes of the Credit Agreement. The Series E Incremental Loans constitute a single “Series”
of Incremental Loans under Section 2.01(c) of the Credit Agreement.

ARTICLE III

REPRESENTATION AND WARRANTIES; NO DEFAULTS

               Each Credit Party represents and warrants to the Lenders and the Administrative Agent as to
itself and each of its Subsidiaries that, after giving effect to the provisions hereof, (i) each of
the representations and warranties set forth in the Credit Agreement and the other Loan Documents
is true and correct on and as of the date hereof as if made on and as of the date hereof (or, if
any such representation or warranty is expressly stated to have been made as of a specific date,
such representation or warranty is true and correct as of such specific date) and as if each
reference therein to the Credit Agreement or Loan Documents included reference to this Agreement
and (ii) no Default has occurred and is continuing.

ARTICLE IV

CONDITIONS

               The obligation of the Series E Incremental Lenders to make the Series E Incremental Loans is
subject to the conditions precedent that each of the following conditions shall have been satisfied
(or waived by the Required Series E Incremental Lenders) on or prior to March 28, 2007:

     (a) Counterparts of Agreement. The Administrative Agent (or Special Counsel)
shall have received from each party hereto either (i) a counterpart of this Agreement signed
on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent
(which may include telecopy transmission of a signed signature page of this Agreement) that
such party has signed a counterpart of this Agreement.

     (b) Opinion of Counsel to the Credit Parties. The Administrative Agent (or
Special Counsel) shall have received a favorable written opinion
(addressed to the Administrative Agent and the Series E Incremental Lenders and dated the Series E
Incremental Loan Effective Date) of Kean, Miller, Hawthorne, D’Armond, McCowan & Jarman,
L.L.P., counsel to the Credit Parties, substantially in the form of Annex 1 (and each of the
Credit Parties hereby requests such counsel to deliver such opinions).

     (c) Opinion of Special Counsel. The Administrative Agent shall have received a
favorable written legal opinion (addressed to the Administrative Agent and the Series E
Incremental Lenders and dated the Series E Incremental Loan Effective Date) of

Series E Incremental Loan Agreement

 

 

 -6-

Special Counsel, substantially in the form of Annex 2 (and the Administrative Agent
hereby requests Special Counsel to deliver such opinion).

     (d) Corporate Matters. The Administrative Agent (or Special Counsel) shall
have received such documents and certificates as the Administrative Agent or Special Counsel
may reasonably request relating to the organization, existence and good standing of the
Company, the authorization of the Borrowings hereunder and any other legal matters relating
to the Company or this Agreement, all in form and substance reasonably satisfactory to the
Administrative Agent.

     (e) Execution of Amendment No. 3. The Administrative Agent (or Special
Counsel) shall have received executed counterparts of Amendment No. 3 to the Credit
Agreement between the Company, the Subsidiary Borrowers, the Subsidiary Guarantors and the
Administrative Agent.

     (f) Notes. The Administrative Agent (or Special Counsel) shall have received
for each Series E Incremental Lender that shall have requested a promissory note at least
one Business Day prior to the Series E Incremental Loan Effective Date, a duly completed and
executed promissory note for such Lender.

     (g) Fees and Expenses. JPMorgan Securities Inc. shall have received all fees
and other amounts due and payable on or prior to the Series E Incremental Loan Effective
Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket
expenses required to be reimbursed or paid by the Company hereunder.

     (h) Compliance with Financial Covenants. The Administrative Agent (or Special
Counsel) shall have received from the Financial Officer of the Company, evidence
satisfactory to the Administrative Agent that after giving effect to the Series E
Incremental Loans and the other transactions that are to occur on the Series E Incremental
Loan Effective Date, the Company is in compliance with the applicable provisions of
Section 7.09 of the Credit Agreement.

     (i) Additional Conditions. Each of the conditions precedent set forth in
Sections 5.02(a) and 5.03 of the Credit Agreement to the making of Series E Incremental
Loans on the Series E Incremental Loan Effective Date shall have been satisfied, and the
Administrative Agent (or Special Counsel) shall have received a certificate to such effect,
dated the Series E Incremental Loan Effective Date and signed by the President, Vice
President or a Financial Officer of the Company.

Series E Incremental Loan Agreement

 

 

 -7-

ARTICLE V

MISCELLANEOUS

               SECTION 5.01. Expenses. The Credit Parties jointly and severally agree to pay, or
reimburse JPMorgan Securities Inc. for paying, all reasonable out-of-pocket expenses incurred by
JPMorgan Securities Inc. and its Affiliates, including the reasonable fees, charges and
disbursements of Special Counsel, in connection with the syndication of the Series E Incremental
Loans provided for herein and the preparation of this Agreement.

               SECTION 5.02. Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement shall become effective when this Agreement shall have been executed by
the Administrative Agent and when the Administrative Agent shall have received counterparts hereof
which, when taken together, bear the signatures of each of the other parties hereto, and thereafter
shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement
by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement.

               SECTION 5.03. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the law of the State of New York.

               SECTION 5.04. Headings. Article and Section headings used herein are for convenience
of reference only, are not part of this Agreement and shall not affect the construction of, or be
taken into consideration in interpreting, this Agreement.

               SECTION 5.05. USA Patriot Act. Each Series E Incremental Lender hereby notifies the
Company that pursuant to the requirements of the USA PATRIOT Act (Title III of
Pub. L. 107-56 (signed into law October 26, 2001)), such Series E Incremental Lender may be
required to obtain, verify and record information that identifies the Borrowers, which information
includes the name and address of the Borrowers and other information that will allow such Series E
Incremental Lender to identify the Borrowers in accordance with said Act.

Series E Incremental Loan Agreement

 

 

 -8-

               IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	LAMAR MEDIA CORP.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre  
	 	 	 	 	   	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 	 	 

Series E Incremental Loan Agreement

 

 

 -9-

	 	 	 	 	 	 	 	 	 	 	 
	SUBSIDIARY GUARANTORS
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	INTERSTATE LOGOS, L.L.C.	 	 	 	 
	 	 	THE LAMAR COMPANY, L.L.C.	 	 	 	 
	 	 	LAMAR CENTRAL OUTDOOR, LLC	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Lamar Media Corp.,
	 	 	Their Managing Member	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre
	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	LAMAR ADVERTISING SOUTHWEST, INC.	 	 	 	 
	 	 	LAMAR OKLAHOMA HOLDING COMPANY, INC.	 	 	 	 
	 	 	LAMAR DOA TENNESSEE HOLDINGS, INC.	 	 	 	 
	 	 	LAMAR OBIE CORPORATION	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 	 	 

Series E Incremental Loan Agreement

 

 

 -10-

	 	 	 	 	 	 	 	 	 	 	 
	Interstate Logos, L.L.C. Entities:
	 	 	 	 	 	 	 	 	 	 
	 	 	MISSOURI LOGOS, LLC	 	 	 	 
	 	 	KENTUCKY LOGOS, LLC	 	 	 	 
	 	 	OKLAHOMA LOGOS, L.L.C.	 	 	 	 
	 	 	MISSISSIPPI LOGOS, L.LC.	 	 	 	 
	 	 	DELAWARE LOGOS, L.L.C.	 	 	 	 
	 	 	NEW JERSEY LOGOS, L.L.C.	 	 	 	 
	 	 	GEORGIA LOGOS, L.L.C.	 	 	 	 
	 	 	VIRGINIA LOGOS, LLC	 	 	 	 
	 	 	MAINE LOGOS, L.L.C.	 	 	 	 
	 	 	WASHINGTON LOGOS, L.L.C.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Interstate Logos, L.L.C.
	 	 	Their Managing Member	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Lamar Media Corp.	 	 	 
	 	 	Its: Managing Member	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 	 	 

Series E Incremental Loan Agreement

 

 

 -11-

	 	 	 	 	 	 	 	 	 	 	 
	Interstate Logos, L.L.C. Entities continued:
	 	 	 	 	 	 	 	 	 	 
	 	 	NEBRASKA LOGOS, INC.	 	 	 	 
	 	 	OHIO LOGOS, INC.	 	 	 	 
	 	 	SOUTAH LOGOS, INC.	 	 	 	 
	 	 	SOUTH CAROLINA LOGOS, INC.	 	 	 	 
	 	 	MINNESOTA LOGOS, INC.	 	 	 	 
	 	 	MICHIGAN LOGOS, INC.	 	 	 	 
	 	 	FLORIDA LOGOS, INC.	 	 	 	 
	 	 	NEVADA LOGOS, INC.	 	 	 	 
	 	 	TENNESSEE LOGOS, INC.	 	 	 	 
	 	 	KANSAS LOGOS, INC.	 	 	 	 
	 	 	COLORADO LOGOS, INC.	 	 	 	 
	 	 	NEW MEXICO LOGOS,INC.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	TEXAS LOGOS, L.P.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Oklahoma Logos, L.L.C.
	 	 	Its: General Partner	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Interstate Logos, L.L.C.
	 	 	Its: Managing Member	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Lamar Media Corp.
	 	 	Its: Managing Member	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre
	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 	 	 
	 

	 	 	 	 	 	  Chief Financial Officer	 	 	 	 

Series E Incremental Loan Agreement

 

 

 -12-

	 	 	 	 	 	 	 	 	 	 	 
	The Lamar Company, L.L.C. Entities:
	 	 	 	 	 	 	 	 	 	 
	 	 	LAMAR ADVERTISING OF COLORADO SPRINGS, INC.	 	 	 	 
	 	 	LAMAR TEXAS GENERAL PARTNER, INC.	 	 	 	 
	 	 	TLC PROPERTIES, INC.	 	 	 	 
	 	 	TLC PROPERTIES II, INC.	 	 	 	 
	 

	 	LAMAR
	 	PENSACOLA TRANSIT, INC.
	 	 	 	 
	 	 	LAMAR ADVERTISING OF YOUNGSTOWN, INC.	 	 	 	 
	 	 	LAMAR ADVERTISING OF MICHIGAN, INC.	 	 	 	 
	 	 	LAMAR ELECTRICAL, INC.	 	 	 	 
	 	 	AMERICAN SIGNS, INC.	 	 	 	 
	 	 	LAMAR OCI NORTH CORPORATION	 	 	 	 
	 	 	LAMAR OCI SOUTH CORPORATION	 	 	 	 
	 	 	LAMAR ADVERTISING OF KENTUCKY, INC.	 	 	 	 
	 	 	LAMAR FLORIDA, INC.	 	 	 	 
	 	 	LAMAR ADVERTISING OF SOUTH DAKOTA, INC.	 	 	 	 
	 	 	LAMAR OHIO OUTDOOR HOLDING CORP.	 	 	 	 
	 	 	OUTDOOR MARKETING SYSTEMS, INC.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre
	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 	 	 

Series E Incremental Loan Agreement

 

 

- 13 -

	 	 	 	 	 	 	 	 	 
	The Lamar Company, L.L.C. Entities continued:
	 
	 	 	 	 	 	 	 	 
	 	 	LAMAR ADVERTISING OF PENN, LLC	 	 
	 	 	LAMAR ADVERTISING OF LOUISIANA, L.L.C.	 	 
	 	 	LAMAR TENNESSEE, L.L.C.	 	 
	 	 	LC BILLBOARD, L.L.C.	 	 
	 	 	LAMAR AIR, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By: The Lamar Company, L.L.C.	 	 
	 	 	Their Managing Member	 	 
	 
	 	 	By:	 	Lamar Media Corp.	 	 
	 	 	Its:	 	Managing Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre	 	 
	 	 	 	 	 	 	  
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	LAMAR TEXAS LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Lamar Texas General Partner, Inc.
	 	 
	 	 	Its:	 	General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 

Series E Incremental Loan Agreement 

 

 - 14 -

	 	 	 	 	 	 	 	 	 
	The Lamar Company, L.L.C. Entities continued:
	 
	 	 	 	 	 	 	 	 
	 	 	TLC PROPERTIES, L.L.C.	 	 
	 	 	TLC FARMS, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	TLC Properties, Inc.
	 	 	Their Managing Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	LAMAR T.T.R., L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Lamar Advertising of Youngstown, Inc.

	 	 	Its:	 	Managing Member
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	OUTDOOR MARKETING SYSTEMS, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Outdoor Marketing Systems, Inc.

	 	 	Its:	 	Managing Member
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 

Series E Incremental Loan Agreement 

 

 - 15 -

	 	 	 	 	 	 	 	 	 
	Lamar Central Outdoor, LLC Entities:
	 
	 	 	LAMAR ADVANTAGE HOLDING COMPANY	 	 
	 	 	PREMERE OUTDOOR, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre
	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	 Executive Vice-President/	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	OUTDOOR PROMOTIONS WEST, LLC	 	 
	 	 	TRIUMPH OUTDOOR RHODE ISLAND, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Triumph Outdoor Holdings, LLC
	 	 	Their Managing Member	 	 
	 
	 	 	By:	 	Lamar Central Outdoor, LLC
	 	 	Its:	 	 Managing Member
	 
	 	 	By:	 	Lamar Media Corp.
	 	 	Its:	 	 Managing Member
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre
	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 

Series E Incremental Loan Agreement 

 

 - 16 -

	 	 	 	 	 	 	 	 	 
	Lamar Central Outdoor, LLC Entities continued:
	 
	 	 	 	 	 	 	 	 
	 	 	TRIUMPH OUTDOOR HOLDINGS, LLC	 	 
	 	 	LAMAR ADVANTAGE GP COMPANY, LLC	 	 
	 	 	LAMAR ADVANTAGE LP COMPANY, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Lamar CentralOutdoor, LLC
	 	 	Their Managing Member	 	 
	 
	 	 	By:	 	Lamar Media Corp.
	 	 	Its:	 	Managing Member
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre
	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	LAMAR ADVANTAGE OUTDOOR	 	 
	 	 	COMPANY, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Lamar Advantage GP Company, LLC
	 	 	Its:	 	General Partner
	 
	 	 	By:	 	Lamar Central Outdoor, LLC
	 	 	Its:	 	Managing Member
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Lamar Media Corp.
	 	 	Its:	 	Managing Member
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre
	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 

Series E Incremental Loan Agreement 

 

 - 17 -

	 	 	 	 	 	 	 	 	 
	Lamar Oklahoma Holding Company, Inc. Entities:
	 
	 	 	LAMAR BENCHES, INC.	 	 
	 	 	LAMAR I-40 WEST, INC.	 	 
	 	 	LAMAR ADVERTISING OF OKLAHOMA, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre
	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	Lamar DOA Tennessee Holdings, Inc. Entities:
	 
	 	 	 	 	 	 	 	 
	 	 	LAMAR DOA TENNESSEE, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre
	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 

Series E Incremental Loan Agreement 

 

 - 18 -

	 	 	 	 	 	 	 	 	 
	Lamar Obie Corporation Entities:
	 
	 	 	O.B. WALLS, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre
	 	 	 	 	 	 	 
	 	 	 	 	Title: Executive Vice-President/
	 

	 	 	 	 	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	OBIE BILLBOARD, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Lamar Obie Corporation

	 	 	Its:	 	 Managing Member
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Keith A. Istre
	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice-President/	 	 
	 

	 	 	 	 	 	Chief Financial Officer	 	 

Series E Incremental Loan Agreement 

 

 - 19 -

	 	 	 	 	 	 	 	 	 
	 	 	ADMINISTRATIVE AGENT	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.	 	 
	 	 	 	 	 	 	as Administrative Agent and Series E Incremental
	 

	 	 	 	 	 	Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Christophe Vohmann	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	 Vice-President	 	 

Series E Incremental Loan Agreement 

 

 - 20 -

SERIES E INCREMENTAL LENDERS

	 	 	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Christophe Vohmann	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Vice-President	 	 

Series E Incremental Loan Agreement 

 

 - 21 -

          By its signature below, the undersigned hereby consents to the foregoing Series E Incremental
Loan Agreement and confirms that the Series E Incremental Loans shall constitute “Guaranteed
Obligations” under and as defined in the Holdings Guaranty and Pledge Agreement and shall be
entitled to the benefits of the Guarantee and security provided under the Holdings Guaranty and
Pledge Agreement.

	 	 	 	 	 
	 	LAMAR ADVERTISING COMPANY

 	 
	 	By:  	/s/ Keith A. Istre
 	 
	 	 	Title:          Executive Vice-President/ 	 
	 	 	          Chief Financial Officer 	 
	 

Series E Incremental Loan Agreement 

 

 

SCHEDULE I

Series E Incremental Commitments

	 	 	 	 	 
	Name of Series E Incremental Lender	 	Series E Incremental Commitments
	JPMorgan Chase Bank, N.A.

	 	$	250,000,000	 

SCHEDULE
I

 

 

ANNEX 1

[Form of Opinion of Counsel to the Credit Parties]

March                     , 2007

To the Series E Incremental Lenders

 and the Administrative Agent
 party
to the Series E Incremental Loan
 Agreement
and Credit Agreement
 referred
to below

Ladies and Gentlemen:

          We have acted as counsel to Lamar Advertising Company (“Holdings”), Lamar Media Corp.
(herein the “Company”) and the Subsidiary Guarantors, in connection with the Series E
Incremental Loan Agreement dated as of March ___, 2007 (the “Series E Incremental Loan
Agreement”) between the Company, the Subsidiary Guarantors named therein, the Series E
Incremental Lenders party thereto (the “Series E Incremental Lenders”) and JPMorgan Chase
Bank, N.A. (the “Administrative Agent”), which Series E Incremental Loan Agreement is being
entered into pursuant to Section 2.01(c) of the Credit Agreement dated as of September 30, 2005 (as
amended, the “Credit Agreement”) between the Company, the Subsidiary Borrowers party
thereto, the Subsidiary Guarantors party thereto, the lenders party thereto and the Administrative
Agent. Terms defined in the Series E Incremental Loan Agreement and in the Credit Agreement are
used herein as defined therein. This opinion is being delivered pursuant to Article IV(b) of the
Series E Incremental Loan Agreement.

          In rendering the opinions expressed below, we have examined the following agreements,
instruments and other documents:

	 	(a)	 	the Credit Agreement;
	 
	 	(b)	 	the Series E Incremental Loan Agreement (together with the
Credit Agreement, the “Credit Documents”); and
	 
	 	(c)	 	such records of the Credit Parties and such other documents as
we have deemed necessary as a basis for the opinions expressed below, including
information listed on Schedule A regarding the merging and/or consolidation of
certain subsidiaries.

Form of Opinion of Counsel to Credit Parties

 

- 2 -

          In our examination, we have assumed the genuineness of all signatures, the authenticity of all
documents submitted to us as originals and the conformity with authentic original documents of all
documents submitted to us as copies. When relevant facts were not independently established, we
have relied upon statements or certificates of governmental officials and upon representations made
in or pursuant to the Credit Documents and certificates and/or opinions of appropriate
representatives of the Credit Parties.

          In rendering the opinions expressed below, we have assumed, with respect to all of the
documents referred to in this opinion letter, that (except, to the extent set forth in the opinions
expressed below, as to the Credit Parties):

	 	(i)	 	such documents have been duly authorized by, have been duly executed
and delivered by, and constitute legal, valid, binding and enforceable obligations
of, all of the parties to such documents;
	 
	 	(ii)	 	all signatories to such documents have been duly authorized; and
	 
	 	(iii)	 	all of the parties to such documents are duly organized and validly
existing and have the power and authority (corporate or other) to execute, deliver
and perform such documents.

          References to “our knowledge” or equivalent words means the actual knowledge of the lawyers in
this firm responsible for preparing this opinion after such inquiry as they deemed appropriate,
including inquiry of such other lawyers in the firm and review of such files of the firm as they
have identified as being reasonably likely to have or contain information not otherwise known to
them needed to support the opinions set forth below. References to “after due inquiry” or
equivalent words means after inquiry of the Chief Financial Officer and General Counsel of
Holdings, and of lawyers in the firm reasonably likely to have knowledge of the matter to which
such reference relates.

          Based upon and subject to the foregoing and subject also to the comments and qualifications
set forth below, and having considered such questions of law as we have deemed necessary as a basis
for the opinions expressed below, we are of the opinion that:

     1. Holdings is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware. Each
Subsidiary of the Company that is a Credit Party is a corporation, partnership or other
entity duly organized, validly existing and, to our knowledge, in good standing

Form
of Opinion of Counsel to Credit Parties

 

- 3 -

under the laws of the state indicated opposite its name in Schedule 4.14 to the
Credit Agreement.

     2. Each Credit Party has all requisite corporate or other power to execute and deliver,
and to perform its obligations under, the Credit Documents to which it is a party.

     3. The execution, delivery and performance by each Credit Party of each Credit Document
to which it is a party have been duly authorized by all necessary corporate or other action
on the part of such Credit Party.

     4. Each Credit Document has been duly executed and delivered by each Credit Party party
thereto.

     5. Under Louisiana conflict of laws principles, the stated choice of New York law to
govern the Credit Documents will be honored by the courts of the State of Louisiana and the
Credit Documents will be construed in accordance with, and will be treated as being governed
by, the law of the State of New York, except to the extent the result obtained from applying
New York law would be contrary to the public policy of the State of Louisiana, provided,
however, that we have no knowledge of any Louisiana public policy interest which could
reasonably be expected to result in the application of Louisiana law to the Credit
Documents. However, if the Credit Documents were stated to be governed by and construed in
accordance with the law of the State of Louisiana, or if a Louisiana court were to apply the
law of the State of Louisiana to the Credit Documents, each Credit Document would
nevertheless constitute the legal, valid and binding obligation of each Credit Party party
thereto, enforceable against such Credit Party in accordance with its terms, except as may
be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium or
other similar laws relating to or affecting the rights of creditors generally and except as
the enforceability of the Credit Documents is subject to the application of general
principles of equity (regardless of whether considered in a proceeding in equity or at law)
and the corresponding discretion of the court before which the proceedings may be brought,
including, without limitation, (a) the possible unavailability of specific performance,
injunctive relief or any other equitable remedy and (b) concepts of materiality,
reasonableness, good faith and fair dealing.

     6. No authorization, approval or consent of, and no filing or registration with, any
governmental or regulatory authority or agency of the United States of America or the State
of Louisiana is required on the part of any Credit Party for the execution, delivery or
performance by any Credit Party of any of the Credit Documents or for the borrowings by the
Company under the Credit Agreement.

Form
of Opinion of Counsel to Credit Parties

 

- 4 -

     7. The execution, delivery and performance by each Credit Party of, and the
consummation by each Credit Party of the transactions contemplated by, the Credit Documents
to which such Credit Party is a party do not and will not (a) violate any provision of the
charter or by-laws of any Credit Party, (b) violate any applicable Louisiana or federal law,
rule or regulation, (c) violate any order, writ, injunction or decree of any court or
governmental authority or agency or any arbitral award applicable to the Credit Parties or
any of their respective Subsidiaries of which we have knowledge (after due inquiry) or (d)
based on an opinion of the General Counsel of the Company, result in a breach of, constitute
a default under, require any consent under, or result in the acceleration or required
prepayment of any indebtedness pursuant to the terms of, any agreement or instrument of
which we have knowledge (after due inquiry) and to which the Credit Parties or any of their
respective Subsidiaries is a party or by which any of them is bound or to which any of them
is subject, or result in the creation or imposition of any Lien upon any property of any
Credit Party pursuant to, the terms of any such agreement or instrument.

     8. Except as set forth in Schedule 4.06 to the Credit Agreement, we have no knowledge
(after due inquiry) of any legal or arbitral proceedings, or any proceedings by or before
any governmental or regulatory authority or agency, pending or threatened against or
affecting the Credit Parties or any of their respective Subsidiaries or any of their
respective properties that, if adversely determined, could have a Material Adverse Effect.

     9. The obligations of the Credit Parties under the Credit Documents constitute Senior
Indebtedness (as defined in the Senior Subordinated Notes Indentures) for all purposes of
the Senior Subordinated Notes Indentures.

     10. The Credit Agreement and the Series E Incremental Loan Agreement will constitute
the “Senior Credit Facility” under and for all purposes of each of the Senior Subordinated
Notes Indentures.

     The foregoing opinions are subject to the following comments and qualifications:

     (A) The enforceability of Section 10.03 of the Credit Agreement (and any similar
provisions in any of the other Credit Documents) may be limited by (i) laws rendering
unenforceable indemnification contrary to Federal or state securities laws and the public
policy underlying such laws and (ii) laws limiting the enforceability of provisions
exculpating or exempting a party, or requiring indemnification of a party for, liability for
its own action or inaction, to the extent the action or inaction involves gross negligence,
recklessness, willful misconduct or unlawful conduct.

Form of Opinion of Counsel to Credit Parties

 

- 5 -

     (B) The enforceability of provisions in the Credit Documents to the effect that terms
may not be waived or modified except in writing may be limited under certain circumstances.

     (C) We express no opinion as to (i) the effect of the laws of any jurisdiction in which
any Lender is located (other than the State of Louisiana) that limits the interest, fees or
other charges such Lender may impose for the loan or use of money or other credit, (ii) the
last sentence of Section 2.16(d) of the Credit Agreement, (iii) Section 3.06 or 3.09 of the
Credit Agreement (and any similar provisions in any of the other Credit Documents) and (iv)
the first sentence of Section 10.09(b) of the Credit Agreement (and any similar provisions
in any of the other Credit Documents), insofar as such sentence relates to the subject
matter jurisdiction of the United States District Court for the Southern District of New
York to adjudicate any controversy related to the Credit Documents.

     (D) We express no opinion as to the applicability to the obligations of any Subsidiary
Guarantor (or the enforceability of such obligations) of Section 548 of the Bankruptcy Code
or any other provision of law relating to fraudulent conveyances, transfers or obligations
or of the provisions of the law of the jurisdiction of incorporation of any Subsidiary
Guarantor restricting dividends, loans or other distributions by a corporation for the
benefit of its stockholders.

     (E) The opinions expressed herein as of the date hereof, and except as may otherwise be
provided herein, we have no obligation to advise you as to any change in the matters,
factual, legal or otherwise, set forth herein after the date of this letter. Without
limitation of the foregoing, our opinions in paragraphs 9 and 10 are limited to the Credit
Documents and Senior Subordinated Notes Indentures as in effect as of the date hereof.

          Partners or Associates of this Firm are members of the Bar of the State of Louisiana and we do
not hold ourselves out as being conversant with the laws of any jurisdiction other than those of
the United States of America and the State of Louisiana, and we express no opinion as to the laws
of any jurisdiction other than those of the United States of America, the State of Louisiana and
the General Corporation Law of the State of Delaware.

          At the request of our clients, this opinion letter is, pursuant to Section (b) of Article IV
of the Series E Incremental Loan Agreement, provided to you by us in our capacity as counsel to the
Credit Parties and may not be relied upon by any Person for any purpose other than in connection
with the transactions contemplated by the Credit Agreement without, in each instance, our prior
written consent.

Very truly yours,

Form of Opinion of Counsel to Credit Parties

 

- 6 -

SCHEDULE A

	 	 	 
	Subsidiary Name 	 	Merged/Consolidated into:
	Transit America Las Vegas, L.L.C.

	 	merged into Triumph Outdoor
Holdings, LLC
	 
	 	 
	Lamar Advertising of New Orleans, LLC

	 	merged into Triumph Outdoor
Holdings,
LLC
	 
	 	 
	Trans West Outdoor Advertising, Inc.

	 	merged into Lamar California
Acquisition Corporation
	 
	 	 
	Select Media, Inc.

	 	merged into Lamar Obie Corporation
	 
	 	 
	Stokely Ad Agency, L.L.C.

	 	merged into Lamar Central Outdoor, LLC
	 
	 	 
	Lamar California Acquisition
Corporation

	 	merged into Lamar Central Outdoor, LLC
	 
	 	 
	ADvantage Advertising, LLC

	 	merged into The Lamar Company, LLC
	 
	 	 
	Lamar Advan, Inc.

	 	merged into Lamar Advertising of
Penn, LLC
	 
	 	 
	Ham Development Corporation

	 	merged into Lamar Central Outdoor, LLC
	 
	 	 
	10 Outdoor Advertising, Inc.

	 	merged into Lamar Central Outdoor, LLC
	 
	 	 
	Daum Advertising Company, Inc.

	 	merged into Lamar Advantage Outdoor
Company, L.P.

Form of Opinion of Counsel to Credit Parties

 

 

ANNEX 2

[Form of Opinion of Special Counsel to JPMCB]

March                    , 2007

To the Series E Incremental Lenders
 and
the Administrative Agent
 party
to the Series E Incremental Loan
 Agreement
and Credit Agreement
 referred
to below

Ladies and Gentlemen:

          We have acted as special New York counsel to JPMorgan Chase Bank, N.A., as Administrative
Agent, under the Series E Incremental Loan Agreement dated as of March ___, 2007 (the “Series E
Incremental Loan Agreement”) between Lamar Media Corp. (the “Company”), the Subsidiary
Guarantors named therein (together with the Company, Lamar Advertising Company, Lamar Advertising
of Puerto Rico, Inc. and Lamar Transit Advertising Canada Ltd., the “Credit Parties”), the
Series E Incremental Lenders party thereto (the “Series E Incremental Lenders”) and
JPMorgan Chase Bank, N.A., as Administrative Agent (the “Administrative Agent”), which
Series E Incremental Loan Agreement is being entered into pursuant to Section 2.01(c) of the Credit
Agreement dated as of September 30, 2005 (as amended by Amendment No. 1 thereto dated as of
October 5, 2006, Amendment No. 2 thereto dated as of December 11, 2006 and Amendment No. 3 thereto
dated as of March ___, 2007, the “Credit Agreement”) between the Company, the Subsidiary
Borrowers party thereto, the Subsidiary Guarantors party thereto, the lenders party thereto and the
Administrative Agent. Except as otherwise provided herein, terms defined in the Series E
Incremental Loan Agreement and in the Credit Agreement are used herein as defined therein. This
opinion is being delivered pursuant to clause (c) of Article IV of the Series E Incremental Loan
Agreement.

          In rendering the opinions expressed below, we have examined the following agreements,
instruments and other documents:

	 	(a)	 	the Credit Agreement; and
	 
	 	(b)	 	the Series E Incremental Loan Agreement (together with the
Credit Agreement, the “Credit Documents”).

          In our examination, we have assumed the authenticity of all documents submitted to us as
originals, the conformity with authentic original documents of all documents submitted to us as
copies and, in the case of documents executed prior to the date of this opinion letter, that there
has been no amendment, waiver or other modification (whether in writing, orally or by

Form of Opinion of Counsel to Credit Parties

 

 - 2 -

course of conduct, course of dealing, course of performance or otherwise) except as expressly
referred to herein. When relevant facts were not independently established, we have relied upon
representations made in or pursuant to the Credit Documents.

          In rendering the opinions expressed below, we have assumed, with respect to all of the
documents referred to in this opinion letter, that:

	 	(i)	 	such documents have been duly authorized by, have been duly executed
and delivered by, and (except to the extent set forth in the opinions below as to
the Credit Parties) constitute legal, valid, binding and enforceable obligations
of, all of the parties to such documents;
	 
	 	(ii)	 	all signatories to such documents have been duly authorized;
	 
	 	(iii)	 	all of the parties to such documents are duly organized and validly
existing and have the power and authority (corporate or other) to execute, deliver
and perform such documents; and
	 
	 	(iv)	 	all authorizations, approvals or consents of (including without
limitation all foreign exchange control approvals), and all filings or
registrations with, any governmental or regulatory authority or agency of Puerto
Rico and Canada required for the making and performance by the Credit Parties of
the Credit Documents have been obtained or made and are in effect.

          Based upon and subject to the foregoing and subject also to the comments and qualifications
set forth below, and having considered such questions of law as we have deemed necessary as a basis
for the opinions expressed below, we are of the opinion that each of the Credit Documents
constitutes the legal, valid and binding obligation of each Credit Party party thereto, enforceable
against such Credit Party in accordance with its terms, except as may be limited by bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance or transfer or other similar laws
relating to or affecting the rights of creditors generally, and to the possible judicial
application of foreign laws or governmental action affecting the rights of creditors generally, and
except as the enforceability of the Credit Documents is subject to the application of general
principles of equity (regardless of whether considered in a proceeding in equity or at law),
including without limitation (a) the possible unavailability of specific performance, injunctive
relief or any other equitable remedy and (b) concepts of materiality, reasonableness, good faith
and fair dealing.

          The foregoing opinions are subject to the following comments and qualifications:

     (A) The enforceability of Section 10.03 of the Credit Agreement (and any similar
provisions in any of the other Credit Documents) may be limited by laws limiting the
enforceability of provisions exculpating or exempting a party, or requiring indemnification
of a party for, liability for its own action or inaction, to the extent the action or
inaction involves gross negligence, recklessness, willful misconduct or unlawful conduct.

Form of Opinion of Counsel to Credit Parties

 

 - 3 -

     (B) Clause (iii) of the second sentence of Section 3.02 of the Credit Agreement (and
any similar provisions in any of the other Credit Documents) may not be enforceable to the
extent that the Guaranteed Obligations (as defined in the Credit Agreement) are materially
modified.

     (C) The enforceability of provisions in the Credit Documents to the effect that terms
may not be waived or modified except in writing may be limited under certain circumstances.

     (D) We express no opinion as to (i) the effect of the laws of any jurisdiction in which
any Lender is located (other than the State of New York) that limit the interest, fees or
other charges such Lender may impose for the loan or use of money or other credit, (ii) the
last sentence of Section 2.16(d) of the Credit Agreement, (iii) Section 3.06 or 3.09 of the
Credit Agreement (and any similar provisions in any of the other Credit Documents), (iv) the
first sentence of Section 10.09(b) of the Credit Agreement (and any similar provisions in
any of the other Credit Documents), insofar as such sentence relates to the subject-matter
jurisdiction of the United States District Court for the Southern District of New York to
adjudicate any controversy related to the Credit Documents and (v) the waiver of
inconvenient forum set forth in the last sentence of Section 10.09(c) of the Credit
Agreement (and any similar provision in any of the other Credit Documents) with respect to
proceedings in the United States District Court for the Southern District of New York.

     (E) We express no opinion as to the applicability to the obligations of any Subsidiary
Guarantor (or the enforceability of such obligations) of Section 548 of the United States
Bankruptcy Code, Article 10 of the New York Debtor and Creditor Law or any other provision
of law relating to fraudulent conveyances, transfers or obligations or of the provisions of
the law of the jurisdiction of incorporation of any Subsidiary Guarantor restricting
dividends, loans or other distributions by a corporation for the benefit of its
stockholders.

          The foregoing opinions are limited to matters involving the Federal laws of the United States
of America and the law of the State of New York, and we do not express any opinion as to the laws
of any other jurisdiction.

          This opinion letter is provided to you pursuant to clause (c) of Article IV of the Series E
Incremental Loan Agreement and may not be relied upon by any other person or for any purpose other
than in connection with the transactions contemplated by the Series E Incremental Loan Agreement
without our prior written consent in each instance.

Very truly yours,

RJW/RMG

Form of Opinion of Counsel to Credit Parties

 - 4 -

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