Document:

EX-4.3(K) SIXTH AMENDMENT TO CREDIT AGREEMENT

 

Exhibit 4.3(k)

SIXTH AMENDMENT TO

CREDIT AGREEMENT AND LOAN DOCUMENTS

          This SIXTH AMENDMENT, dated as of January 5, 2007 (this “Amendment” or the “Sixth
Amendment”), is by and among (a) ALLIED HOLDINGS, INC., a Georgia corporation (“Allied
Holdings”), and ALLIED SYSTEMS, LTD. (L.P.), a Georgia limited partnership (“Allied
Systems” and, together with Allied Holdings, “Borrowers”), each, a debtor and
debtor-in-possession; (b) the other Credit Parties signatory hereto (the “Credit Party”
and, together with the Borrowers, the “Credit Parties”); (c) GENERAL ELECTRIC CAPITAL
CORPORATION, as Administrative Agent (in such capacity, the “Administrative Agent”),
Collateral Agent, Revolver Agent and co-Syndication Agent (“GE Capital”); (d) MORGAN
STANLEY SENIOR FUNDING, INC., as Term Loan A Agent, Term Loan B Agent, Term Loan C Agent,
co-Syndication Agent, co-Bookrunner and co-Term Loan B Lead Arranger (“Morgan Stanley”);
(e) Morgan Stanley, as Initial Term Loan C Lender; and (f) the other Lenders signatory hereto from
time to time.

W I T N E S S E T H

          WHEREAS, the Credit Parties, the Lenders party to the Credit Agreement from time to time, GE
Capital and Morgan Stanley are parties to that certain Senior Secured, Super-Priority
Debtor-in-Possession Credit Agreement, dated as of August 1, 2005 (including all annexes, exhibits
and schedules thereto, and as amended, supplemented or otherwise modified from time to time, the
“Credit Agreement”);

          WHEREAS, the Credit Agreement has been amended by the First Amendment and Consent to Credit
Agreement and Loan Documents dated as of August 22, 2005; the Second Amendment to Credit Agreement
and Loan Documents dated as of October 26, 2005; the Third Amendment and Consent to Credit
Agreement and Loan Documents dated as of November 16, 2005; the Consent and Fourth Amendment to
Credit Agreement and Loan Documents dated as of April 18, 2006; and the Consent and Fifth Amendment
to Credit Agreement and Loan Documents dated as of June 30, 2006 (the “Fifth Amendment”);

          WHEREAS, pursuant to the Fifth Amendment, the Term Loan A, Term Loan B and Term Loan C mature
on June 30, 2007;

          WHEREAS, the Borrowers have requested that the maturity date for the Revolving Loans be
extended from February 7, 2007 to March 30, 2007; and

          WHEREAS, the Administrative Agent, the Requisite Lenders and the affected lenders, consisting
of the Revolving Lenders, required by Section 11.2(b)(iv) of the Credit Agreement on the terms and
conditions provided for herein have agreed to the Borrowers’ request and to the other amendments
set forth herein.

          NOW THEREFORE, in consideration of the promises herein and for other good and valuable
consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

          1. Definitions. Capitalized terms not otherwise defined herein shall have the
meanings ascribed to them in the Credit Agreement.

          2. Credit Facility Amendments.

 

 

	 	(a)	 	Section 1.9 of the Credit Agreement is amended to insert a new section (f) as
follows:

“(f) Amendment
Fee. Upon the Sixth Amendment Effective Date,
Borrowers jointly and severally agree to pay to the
Revolving Lenders a nonrefundable amendment fee in
an amount equal to .125% of the Revolving Loan
Commitment, which fee shall be fully earned upon the
payment thereof.

	 	(b)	 	Annex A (Recitals) to Credit Agreement, Definitions.

(i) Annex A to the Credit Agreement is hereby
amended by inserting the following definition in appropriate
alphabetical order:

“Sixth Amendment Effective Date” means
January 5, 2007.

(ii) The definition of “Commitment Termination Date”
is hereby amended to delete section (a)(i) thereof and
replace it with a new section (a)(i) as follows: “(a)(i)
with respect to the Revolving Loans only, March 30, 2007, or
such later date as may be agreed by the Revolving Lenders,
and”.

(iii) The definition of “Term Loan B Commitment” is
hereby deleted and replaced in its entirety with the
following: “ ‘Term Loan B Commitment’ means (a) as
to any Lender with a Term Loan B Commitment, the commitment
of such Lender to make its Pro Rata Share of the Term Loan B
as set forth on Annex J to the Agreement or in the most
recent Assignment Agreement executed by such Lender, and (b)
as to all Lenders with a Term Loan B Commitment, the
aggregate commitment of all Lenders to make the Term Loan B,
which aggregate commitment shall be Eighty Million Dollars
($80,000,000) on the Closing Date, plus interest paid in
kind and added to principal from time to time after the
Closing Date. After advancing the Term Loan B, each
reference to a Lender’s Term Loan B Commitment shall refer
to that Lender’s Pro Rata Share of the outstanding Term Loan
B.”

(iv) The definition of “Term Loan C Commitment
Amount” is hereby deleted and replaced in its entirety
with the following: “ ‘Term Loan C Commitment
Amount’ means Thirty Million Dollars ($30,000,000), plus
interest paid in kind and added to principal.”

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	 	      (c)	 	Annex B (Section 1.2) to Credit Agreement, Letters of Credit.

Annex B to the Credit Agreement is hereby amended by
deleting the last sentence in section (a) thereof and by
inserting the following new sentences in lieu thereof:

“No such Letter of Credit shall have an expiry date that is
more than one year following the date of issuance thereof,
unless otherwise determined by the Administrative Agent, in
its sole discretion (including with respect to customary
evergreen provisions). Each Revolving Lender agrees that,
at the option of the Administrative Agent and the applicable
L/C Issuer, any Letter of Credit may have an expiry date
that is later than the Commitment Termination Date;
provided, however, that if any such Letter of Credit
has not been canceled and returned to the applicable L/C
Issuer on or before the Commitment Termination Date, then
either (i) such Letter of Credit shall have been cash
collateralized in the manner described in clause (c)(ii)
below or (ii) a stand-by letter (or letters) of credit in
guaranty of the Letter of Credit Obligations related to such
Letter of Credit shall have been delivered to the
Administrative Agent in the manner described in clause
(c)(ii) below.”

          3. Representations and Warranties. To induce the Agents and Lenders to enter into
this Sixth Amendment, each of the Credit Parties executing this Sixth Amendment, jointly and
severally, makes the following representations and warranties:

               (a) Subject to the approval of the Bankruptcy Court and, as applicable, the Canadian Court,
the execution, delivery and performance by such Credit Party of this Sixth Amendment: (i) are
within such Credit Party’s power; (ii) have been duly authorized by all necessary corporate,
limited liability company or limited partnership action; (iii) do not contravene any provision of
such Credit Party’s charter, bylaws or partnership or operating agreement as applicable; (iv) do
not violate any law or regulation, or any order or decree of any court or Governmental Authority;
(v) do not conflict with or result in the breach or termination of, constitute a default under or
accelerate or permit the acceleration of any performance required by, any indenture, mortgage, deed
of trust, lease, agreement or other instrument to which such Credit Party is a party or by which
such Credit Party or any of its property is bound; (vi) do not result in the creation or imposition
of any Lien upon any of the property of such Credit Party; and (vii) do not require the consent or
approval of any Governmental Authority or any other Person other than the Bankruptcy Court and, as
applicable, the Canadian Court.

               (b) This Sixth Amendment has been duly executed and delivered by or on behalf of such Credit
Party.

               (c) Subject to the approval of the Bankruptcy Court and, as applicable, the Canadian court,
each of this Sixth Amendment and the Credit Agreement constitutes a legal, valid and binding
obligation of such Credit Party, enforceable against it in

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accordance with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other laws relative to or affecting the
enforcement of creditors’ rights generally in effect from time to time and by general principles of
equity.

               (d) No Default or Event of Default has occurred and is continuing after giving effect to this
Sixth Amendment.

               (e) Other than the commencement of the Chapter 11 Cases, no action, claim, lawsuit, demand,
investigation or proceeding is now pending or, to the knowledge of such Credit Party, threatened
against such Credit Party, before any Governmental Authority or before any arbitrator or panel of
arbitrators, (i) that challenges such Credit Party’s right or power to enter into or perform any of
its obligations under this Amendment or the other Loan Documents to which it is a party, or the
validity or enforceability of any Loan Document or any action taken thereunder, or (ii) that has a
reasonable risk of being determined adversely to any Credit Party and that, if so determined, would
reasonably be expected to have a Material Adverse Effect.

               (f) The representations and warranties of such Credit Party contained in the Credit Agreement
and each other Loan Document, as amended in accordance with the terms of the applicable agreement,
shall be true and correct on and as of the Sixth Amendment Effective Date with the same effect as
if such representations and warranties had been made on and as of such date, except to the extent
that such representation or warranty expressly relates to an earlier date and except for changes
therein permitted or contemplated by this Agreement.

          4. No Other Consents/Waivers. Except as expressly provided herein, (a) the Credit
Agreement shall be unmodified and shall continue to be in full force and effect in accordance with
its terms, (b) this Sixth Amendment shall not be deemed a waiver of any term or condition of the
Credit Agreement or any other Loan Document, and (iii) this Sixth Amendment shall not be deemed an
agreement to forbear with respect to any right or remedy which the Agents, the Lenders or the Term
Loan C Lenders may now have or may have in the future under the Credit Agreement or any other Loan
Document, at law, in equity or otherwise. No Agent, no Lender and no Term Loan C Lender shall by
virtue of any action or omission be deemed to have altered or prejudiced any rights or remedies
which any Agent, any Lender or any Term Loan C Lender may now have or may have in the future under
or in connection with the Credit Agreement, any other Loan Document or any of the instruments or
agreements referred to therein, in each case as the same may be amended from time to time.

          5. Outstanding Indebtedness; Waiver of Claims. (a) The Credit Parties hereby
acknowledge and agree that as of January 2, 2007, the aggregate outstanding principal amount of the
(i) Revolving Loans (including the outstanding Letter of Credit Obligations) is $87,893,844.90,
(ii) Term Loan A is $20,000,000, (iii) Term Loan B is
$85,708,495.42 and (d) Term Loan C is
$10,643,468.02 (collectively, the “Outstanding Obligations”), and that such principal
amounts are payable pursuant to the Credit Agreement without defense, offset, withholding,
counterclaim or deduction of any kind. Each of the Credit Parties hereby waives, releases, remises
and forever discharges Agents, the Lenders, the Term Loan C Lenders and each other Indemnified
Person from any and all claims, suits, actions, investigations, proceedings or demands arising out
of or in connection with the Credit Agreement (collectively, “Claims”), whether based in
contract, tort, implied or express

- 4 -

 

warranty, strict liability, criminal or civil statute or common law of any kind or character,
known or unknown, which such Credit Parties ever had, now has or might hereafter have against
Agents, the Lenders or the Term Loan C Lenders which relates, directly or indirectly, to any acts
or omissions of Agents, the Lenders, the Term Loan C Lenders or any other Indemnified Person on or
prior to the date hereof; provided that, Credit Parties do not waive any Claim solely to
the extent such Claim relates to such Agent’s, such Lender’s, such Term Loan C Lender’s or such
Indemnified Person’s gross negligence or willful misconduct.

          6. Expenses. Borrowers hereby agree to pay to each of the Agents all reasonable
costs, fees and expenses invoiced and owing (including, without limitation, reasonable fees of
counsel to the Agents) incurred in the negotiation, preparation, execution and delivery of this
Sixth Amendment and all other documents and instruments delivered in connection herewith.

          7. Effectiveness. This Sixth Amendment shall become effective as of the date hereof
(the “Sixth Amendment Effective Date”) only upon satisfaction in full in the judgment of
Administrative Agent of each of the following conditions:

               (a) Amendment. Administrative Agent shall have received ten (10) original copies (or
facsimile copies to be promptly followed by originals) of this Sixth Amendment duly executed and
delivered by Credit Parties and the Requisite Lenders. Delivery of an executed counterpart of this
Sixth Amendment by facsimile shall be equally as effective as delivery of an original executed
counterpart of this Sixth Amendment. Any party delivering an executed counterpart of this Sixth
Amendment, also shall deliver an original executed counterpart of this Sixth Amendment, but the
failure to deliver an original executed counterpart shall not affect the validity, enforceability,
and binding effect of this Sixth Amendment.

               (b) Payment of Amendment Fee. Borrowers shall have paid to the Revolver Agent, for
the ratable benefit of the Revolving Lenders, the amendment fee in the amount of $162,500.00
described in Section 1.9(f) of the Credit Agreement as amended hereby, which amendment fee
shall be fully earned and non-refundable when paid.

               (c) Payment of Expenses. Borrowers shall have paid to Agents all reasonable costs,
fees and expenses invoiced and owing in connection with this Sixth Amendment and the other Loan
Documents.

               (d) Representations and Warranties. The representations and warranties of or on
behalf of the Credit Parties in this Sixth Amendment shall be true and correct on and as of the
Sixth Amendment Effective Date.

          8. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND INTERPRETED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

          
- 5 -

 

          9. Counterparts. This Sixth Amendment may be executed by the parties hereto on any
number of separate counterparts and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.

(SIGNATURE PAGE FOLLOWS)

- 6 -

 

          IN WITNESS WHEREOF, this Sixth Amendment has been duly executed as of the date first written
above.

	 	 	 	 	 
	 	BORROWERS:

ALLIED HOLDINGS, INC.

 	 
	 	By:  	/s/ Thomas M. Duffy
 	 
	 	 	Name:  	Thomas M. Duffy 	 
	 	 	Title: Executive VP – Secretary 	 
	 
	 	ALLIED SYSTEMS, LTD. (L.P.)

 	 
	 	By:  	/s/ Thomas M. Duffy
 	 
	 	 	Name:  	Thomas M. Duffy 	 
	 	 	Title: Executive VP – Secretary 	 
	 
	 	LENDERS:

GENERAL ELECTRIC CAPITAL CORPORATION, 
as Administrative Agent, Collateral Agent, Revolver Agent and Lender

 	 
	 	By:  	/s/ Donald J. Cavanagh
 	 
	 	 	Name:  	Donald J. Cavanagh 	 
	 	 	Title: Duly Authorized Signatory 	 
	 
	 	MORGAN STANLEY SENIOR FUNDING,
INC., 
as Term Loan A Agent, Term Loan B Agent, Term Loan C Agent, co-Syndication Agent, Lender and as a Term Loan C Initial Lender

 	 
	 	By:  	
/s/ Jason Colodne
 	 
	 	 	Name:  	Jason Colodne 	 
	 	 	Title: Authorized Signatory 	 
	 
	 	THE CIT GROUP/BUSINESS CREDIT,
INC., 
as Lender,

 	 
	 	By:  	/s/ Jang Kim
 	 
	 	 	Name:  	Jang Kim 	 
	 	 	Title: VP 	 

 

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH
CAPITAL, A DIVISION OF MERRILL 
LYNCH BUSINESS FINANCIAL SERVICES
INC., 
as Lender,
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Edward Shuster	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Edward Shuster	 	 
	 

	 	 	 	Title: Assistant Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	SMBC DIP LIMITED., as Lender,
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Susumu Ogawa	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Susumu Ogawa	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 	 	TEXTRON FINANCIAL
CORPORATION, 
as Lender,
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Eric R. Hubbard	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Eric R. Hubbard	 	 
	 

	 	 	 	Title: Duly Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	MARATHON STRUCTURED
FINANCE FUND, L.P., 
as Lender
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gary L. Lembo	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Gary L. Lembo	 	 
	 

	 	 	 	Title: Director	 	 

	 	 	 	 	 	 	 	 	 
	 	 	BLACK DIAMOND CLO
2005-2 LTD., BY 
BLACK DIAMOND CLO 2005-2 
Adviser, L.L.C., its Collateral Manager,

as Lender

	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 
	 	BLACKPORT CAPITAL FUND LTD.,

as Lender

 	 
	 	By:  	/s/ Brian Chase
 	 
	 	 	Name:  	Brian Chase 	 
	 	 	Title: CFOEx-10.1 Loan Agreement dated January 4, 2007

 

Exhibit
10.1

LOAN AGREEMENT

Wachovia Bank, National Association

225 Water Street

Jacksonville, Florida 32202

(Hereinafter referred to as the “Bank”)

SBS MIAMI BROADCAST CENTER, INC., a Delaware corporation

2601 S. Bayshore Drive

PH II

Coconut Grove, Florida 33133

(Hereinafter referred to as “Borrower”)

This Loan Agreement (“Agreement”) is entered into January 4, 2007, by and between Bank and
Borrower.

This Agreement applies to the loan (individually and collectively, the “Loan”) evidenced by that
certain Promissory Note dated of even date herewith made by Borrower to the Bank in the original
principal amount of $7,650,000.00 (as the same may be amended, modified, extended or increased from
time to time, the “Note”) and all Loan Documents. The terms “Loan Documents” and “Obligations,” as
used in this Agreement, are defined in the Note.

Relying upon the covenants, agreements, representations and warranties contained in this Agreement,
Bank is willing to extend credit to Borrower upon the terms and subject to the conditions set forth
herein, and Bank and Borrower agree as follows:

REPRESENTATIONS. Borrower represents that from the date of this Agreement and until final payment
in full of the Obligations: Accurate Information. All information now and hereafter furnished to
Bank is and will be true, correct and complete in all material respects. Any such information
relating to Borrower’s financial condition will accurately reflect Borrower’s financial condition
as of the date(s) thereof, (including all contingent liabilities of every type), and Borrower
further represents that its financial condition has not changed materially or adversely since the
date(s) of such documents. Authorization; Non-Contravention. The execution, delivery and
performance by Borrower and any guarantor, as applicable, of this Agreement and other Loan
Documents to which it is a party are within its power, have been duly authorized as may be required
and, if necessary, by making appropriate filings with any governmental agency or unit and are the
legal, binding, valid and enforceable obligations of Borrower and any guarantors; and do not (i)
contravene, or constitute (with or without the giving of notice or lapse of time or both) a
violation of any provision of applicable law, a violation of the organizational documents of
Borrower or any guarantor, or a default under any agreement, judgment, injunction, order, decree or
other instrument binding upon or affecting Borrower or any guarantor, (ii) result in the creation
or imposition of any lien (other than the lien(s) created by the Loan Documents) on any of
Borrower’s or any guarantor’s assets, or (iii) give cause for the acceleration of any obligations
of Borrower or any guarantor to any other creditor. Asset Ownership. Borrower has good and
marketable title to all of the properties and assets reflected on the balance sheets and financial
statements supplied Bank by Borrower, and all such properties and assets are free and clear of
mortgages, security deeds, pledges, liens, charges, and all other encumbrances, except as otherwise
disclosed to Bank by Borrower in writing and approved by Bank, including without limitation, those
liens arising under that certain First Lien Credit Agreement (as the same may be amended, modified,
extended or replaced from time to time, the “Senior Credit Facility”) among Guarantor, as borrower,
MERRILL LYNCH, PIERCE FENNER & SMITH, INCORPORATED, as syndication agent, Bank, as documentation
agent, LEHMAN COMMERCIAL PAPER INC., as administrative agent and other lenders, as lenders, dated
as of June 10, 2005 (as same may be amended or modified from time to time), which liens include,
without limitation, the pledge of all of the stock of Borrower and the lien against Borrower’s
personal property (“Permitted Liens”). To Borrower’s knowledge, no default has occurred under any
Permitted Liens and no claims or interests adverse to

 

 

Borrower’s present rights in its properties and assets have arisen. Discharge of Liens and Taxes.
Borrower has duly filed, paid and/or discharged all taxes or other claims that may become a lien on
any of its property or assets, except to the extent that such items are being appropriately
contested in good faith and an adequate reserve for the payment thereof is being maintained.
Sufficiency of Capital. Borrower is not, and after consummation of this Agreement and after giving
effect to all indebtedness incurred and liens created by Borrower in connection with the Note and
any other Loan Documents, will not be, insolvent within the meaning of 11 U.S.C. § 101, as in
effect from time to time. Compliance with Laws. Borrower and any subsidiary of Borrower and any
guarantor are in compliance in all material respects with all federal, state and local laws, rules
and regulations applicable to its properties, operations, business, and finances, including,
without limitation, any federal or state laws relating to liquor (including 18 U.S.C. § 3617, et
seq.) or narcotics (including 21 U.S.C. § 801, et seq.) and/or any commercial crimes; all
applicable federal, state and local laws and regulations intended to protect the environment; and
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), if applicable. None of
Borrower, or any subsidiary or affiliate of Borrower or any guarantor is a Sanctioned Person or has
any of its assets in a Sanctioned Country or does business in or with, or derives any of its
operating income from investments in or transactions with, Sanctioned Persons or Sanctioned
Countries in violation of economic sanctions administered by OFAC. The proceeds from the Loan will
not be used to fund any operations in, finance any investments or activities in, or make any
payments to, a Sanctioned Person or a Sanctioned Country. “OFAC” means the U.S. Department of the
Treasury’s Office of Foreign Assets Control. “Sanctioned Country” means a country subject to a
sanctions program identified on the list maintained by OFAC and available at
http://www.treas.gov/offices/enforcement/ofac/sanctions/, or as otherwise published from time to
time. “Sanctioned Person” means (i) a person named on the list of Specially Designated Nationals
or Blocked Persons maintained by OFAC available at
http://www.treas.gov/offices/enforcement/ofac/sdn/, or as otherwise published from time to time, or
(ii) (A) an agency of the government of a Sanctioned Country, (B) an organization controlled by a
Sanctioned Country, or (C) a person resident in a Sanctioned Country to the extent subject to a
sanctions program administered by OFAC. Organization and Authority. Borrower is duly created,
validly existing and in good standing under the laws of the state of its organization, and has all
powers, governmental licenses, authorizations, consents and approvals required to operate its
business as now conducted. Borrower is duly qualified, licensed and in good standing in each
jurisdiction where qualification or licensing is required by the nature of its business or the
character and location of its property, business or customers, and in which the failure to so
qualify or be licensed, as the case may be, in the aggregate, could have a material adverse effect
on the business, financial position, results of operations, properties or prospects of Borrower or
any such guarantor. No Litigation. There are no pending suits, claims or demands against Borrower
or any guarantor, which could materially affect any guarantor’s ability to fully repay the Loan,
that have not been disclosed to Bank by Borrower in writing, and approved by Bank. To the best of
Borrower’s knowledge, there are no threatened suits, claims or demands, which could materially
affect the Borrower’s or any guarantor’s ability to fully repay the Loan, against Borrower or any
guarantor that have not been disclosed to Bank by Borrower in writing, and approved by Bank.
ERISA. Each employee pension benefit plan, as defined in ERISA, maintained by Borrower meets, as
of the date hereof, the minimum funding standards of ERISA and all applicable regulations thereto
and requirements thereof, and of the Internal Revenue Code of 1986, as amended. No “Prohibited
Transaction” or “Reportable Event” (as both terms are defined by ERISA) has occurred with respect
to any such plan. Indemnity. Borrower will indemnify Bank and its affiliates from and against any
losses, liabilities, claims, damages, penalties or fines imposed upon, asserted or assessed against
or incurred by Bank arising out of the inaccuracy or breach of any of the representations contained
in this Agreement or any other Loan Documents.

AFFIRMATIVE COVENANTS. Borrower agrees that from the date hereof and until final payment in full
of the Obligations, unless Bank shall otherwise consent in writing, Borrower will: Access to Books
and Records. Allow Bank, or its agents, during normal business hours, upon reasonable notice by
Bank, access to the books, records and such other documents of Borrower as Bank shall reasonably
require, and allow Bank, at Borrower’s expense, to inspect, audit and examine the same and to make
extracts therefrom and to make copies thereof. Business Continuity. Conduct its business in
substantially the same manner and locations as such business is now and has previously been
conducted. Certificate of Full Compliance From Chief Financial Officer. Deliver to Bank, with the
financial statements required

Page 2

 

herein, a certification by Borrower’s chief financial officer that Borrower is in full compliance
with the Loan Documents. For purposes hereof, copies of the certificates required to be delivered
on behalf of Borrower by Guarantor pursuant to Section 6.2 of the Senior Credit Facility shall be
deemed acceptable to Bank. Compliance with Other Agreements. Comply with all terms and conditions
contained in this Agreement, and any other Loan Documents, and swap agreements, if applicable, as
defined in 11 U.S.C. § 101, as in effect from time to time. Estoppel Certificate. Furnish, within
thirty (30) days after request by Bank, a written statement duly acknowledged of the amount due
under the Loan and whether offsets or defenses exist against the Obligations. Insurance. Maintain
adequate insurance coverage with respect to its properties and business against loss or damage of
the kinds and in the amounts customarily insured against by companies of established reputation
engaged in the same or similar businesses including, without limitation, commercial general
liability insurance, workers compensation insurance, and business interruption insurance; all
acquired in such amounts and from such companies as Bank may reasonably require. For the purposes
of this Section, the insurance requirements set forth in that certain Mortgage, Assignment of Rents
and Security Agreement dated of even date herewith from Borrower in favor of Bank (as the same may
be amended or modified from time to time, the “Mortgage”), are deemed adequate. Maintain
Properties. Maintain, preserve and keep its property in good repair, working order and condition,
making all replacements, additions and improvements thereto necessary for the proper conduct of its
business, unless prohibited by the Loan Documents. Notice of Default and Other Notices. (a)
Notice of Default. Furnish to Bank immediately upon becoming aware of the existence of any
condition or event which constitutes a Default (as defined in the Loan Documents) or any event
which, upon the giving of notice or lapse of time or both, may become a Default, written notice
specifying the nature and period of existence thereof and the action which Borrower is taking or
proposes to take with respect thereto. (b) Other Notices. Promptly notify Bank in writing of (i)
any material adverse change in its financial condition or its business; (ii) any default under any
material agreement, contract or other instrument to which it is a party or by which any of its
properties are bound, or any acceleration of the maturity of any indebtedness owing by Borrower;
(iii) any material adverse claim against or affecting Borrower or any part of its properties; (iv)
the commencement of, and any material determination in, any litigation with any third party or any
proceeding before any governmental agency or unit affecting Borrower; and (v) at least 30 days
prior thereto, any change in Borrower’s name or address as shown above, and/or any change in
Borrower’s structure. Other Financial Information. Deliver promptly such other information
regarding the operation, business affairs, and financial condition of Borrower which Bank may
reasonably request. Payment of Debts. Pay and discharge when due, and before subject to penalty
or further charge, and otherwise satisfy before maturity or delinquency, all obligations, debts,
taxes, and liabilities of whatever nature or amount, except those which Borrower in good faith
disputes. Reports and Proxies. Deliver to Bank, promptly, a copy of all financial statements,
reports, notices, and proxy statements, sent by Borrower to stockholders, and all regular or
periodic reports required to be filed by Borrower with any governmental agency or authority. Any
filings with the United States Securities and Exchange Commission are deemed to have been delivered
to Bank upon filing.

NEGATIVE COVENANTS. Borrower agrees that from the date hereof and until final payment in full of
the Obligations, unless Bank shall otherwise consent in writing, Borrower will not: Change of
Control. Make or suffer a change of ownership that effectively changes control of Borrower from
current ownership such that SPANISH BROADCASTING SYSTEM, INC., a Delaware corporation d/b/a SPANISH
BROADCASTING SYSTEM OF DELAWARE, INC. (“Guarantor”) does not, directly or indirectly, own at least
fifty-one percent (51%) of the issued and outstanding shares of Borrower and maintain control of
the day to day business operations of Borrower and so long as Guarantor continues to guaranty the
obligations of Borrower under the Note and other Loan Documents. Encumbrances. Create, assume, or
permit to exist any mortgage, security deed, deed of trust, pledge, lien, charge or other
encumbrance on any of its assets, whether now owned or hereafter acquired, other than: (i) security
interests required by the Loan Documents; (ii) liens for taxes contested in good faith; (iii)
Permitted Liens, or (iv) equipment leases entered into by Borrower in the ordinary course of its
business, in an amount not to exceed $1,000,000.00 in the aggregate. Guarantees. Other than any
guarantee required under the Senior Credit Facility, Guarantee or otherwise become responsible for
obligations of any other person or persons, other than the endorsement of checks and drafts for
collection in the ordinary course of business. Investments. Purchase any stock, securities, or
evidence of indebtedness of any other person or entity except investments in direct obligations of
the United States Government and certificates

Page 3

 

of deposit of United States commercial banks having a tier 1 capital ratio of not less than 6% and
then in an amount not exceeding 10% of the issuing bank’s unimpaired capital and surplus. Cross
Default. Default in payment or performance of any obligation under any other loans, contracts or
agreements of Borrower with Bank or its affiliates that remains uncured beyond any applicable cure
or grace periods. Default on Other Contracts or Obligations. Default on any material contract
with or obligation when due to a third party or default in the performance of any obligation to a
third party incurred for money borrowed that remains uncured after any applicable cure or grace
periods. Government Intervention. Permit the assertion or making of any seizure, vesting or
intervention by or under authority of any governmental entity, as a result of which the management
of Borrower or any guarantor is displaced of its authority in the conduct of its respective
business or such business is curtailed or materially impaired. Judgment Entered. Permit the entry
of any monetary judgment or the assessment against, the filing of any tax lien against, or the
issuance of any writ of garnishment or attachment against any property of or debts due Borrower.
Prepayment of Other Debt. Retire any long-term debt entered into prior to the date of this
Agreement (other than debt arising from the Senior Credit Facility) at a date in advance of its
legal obligation to do so. Retire or Repurchase Capital Stock. Retire or otherwise acquire any of
its capital stock.

ANNUAL FINANCIAL STATEMENTS. Borrower shall deliver to Bank, within 90 days after the close of
each fiscal year, audited financial statements reflecting its operations during such fiscal year,
including, without limitation, a balance sheet, profit and loss statement and statement of cash
flows, with supporting schedules and in reasonable detail, prepared in conformity with generally
accepted accounting principles, applied on a basis consistent with that of the preceding year.
Such financial statements may be prepared on a consolidated and consolidating basis with SPANISH
BROADCASTING SYSTEM, INC., a Delaware corporation. All such statements shall be examined by an
independent certified public accountant acceptable to Bank. The opinion of such independent
certified public accountant shall not be acceptable to Bank if qualified due to any limitations in
scope imposed by Borrower or any other person or entity. Any other qualification of the opinion by
the accountant shall render the acceptability of the financial statements subject to Bank’s
approval. Any filings with the United States Securities and Exchange Commission are deemed to have
been delivered to Bank upon filing.

FINANCIAL COVENANTS. Borrower agrees to the following provisions from the date hereof until final
payment in full of the Obligations, unless Bank shall otherwise consent in writing, using the
financial information for Borrower, its subsidiaries, affiliates and its holding or parent company,
as applicable: Deposit Relationship. Unless Bank sells or assigns the Loan pursuant to the terms
of the Loan Documents, Borrower shall maintain its primary depository account with Bank.
Limitation on Debt. Other than trade payables and equipment leases entered into by Borrower in the
ordinary course of its business, in an amount not to exceed $1,000,000.00 in the aggregate,
indebtedness arising under the Senior Credit Facility, or indebtedness owed to Borrower’s
shareholders (which indebtedness shall be expressly subordinate to repayment of the Loan), Borrower
shall not, directly or indirectly, create, incur, assume or become liable for any additional
indebtedness, whether contingent or direct, without the prior written consent of Bank.

CONDITIONS PRECEDENT. The obligations of Bank to make the loan and any advances pursuant to this
Agreement are subject to the following conditions precedent: Additional Documents. Receipt by
Bank of such additional supporting documents as Bank or its counsel may reasonably request.
Opinion of Counsel. On or prior to the date of any extension of credit hereunder, Bank shall have
received a written opinion of the counsel of Borrower acceptable to Bank that includes confirmation
of the following: (a) The accuracy of the representations set forth in this Agreement in the
Representations Subparagraphs entitled “Authorization; Non-Contravention”; “Compliance with Laws”,
and “Organization and Authority”. (b) This Agreement and other Loan Documents have been duly
executed and delivered by Borrower and constitute the legal, valid and binding obligations of
Borrower, enforceable in accordance with their terms. (c) No registration with, consent of,
approval of, or other action by, any federal, state or other governmental authority or regulatory
body is required by law in connection with the execution and delivery of this Agreement and the
other Loan Documents, or the extension of credit under this Agreement or the other Loan Documents,
or, if so required, such registration has been made, and such consent or approval given or such
other appropriate action taken. (d) The loan is not usurious.

Page 4

 

(e) The Loan Documents create the priority of lien on or security interest in the Collateral (as
defined in the Loan Documents) that is contemplated by the Loan Documents.

[EXECUTIONS APPEAR ON FOLLOWING PAGE]

Page 5

 

IN WITNESS WHEREOF, Borrower and Bank, on the day and year first written above, have
caused this Agreement to be duly executed under seal.

	 	 	 
	 	 	
Borrower
	 	 	
SBS MIAMI BROADCAST CENTER, INC., a Delaware corporation
	CORPORATE

SEAL	 	
By: /s/ Joseph A. Garcia
 

Joseph A. Garcia, Executive Vice President
	 	 	
Bank
	 	 	
Wachovia Bank, National Association
	CORPORATE

SEAL	 	
By: /s/ George Leser
 

George Leser, Senior Vice President

[ACKNOWLEDGEMENT APPEARS ON FOLLOWING PAGE]

Page 6

 

State of Florida

County of Miami-Dade

     The foregoing instrument was acknowledged this day by Joseph A. Garcia, as Executive Vice
President of SBS MIAMI BROADCAST CENTER, INC., a Delaware corporation on behalf of the corporation,
who is personally known to me or who has produced ___as identification.

Witness my hand and official seal, this _____ day of December, 2006.

	 	 	 
	 

	 	______________________________, Notary Public
	Notary Seal
	 	 
	 

	 	______________________________
	 

	 	(Printed Name of Notary)
	 
	 

	 	Commission Expires: ___________________________
	 
	 

	 	Commission Number: ___________________________

State of Florida

County of Miami-Dade

     The foregoing instrument was acknowledged this day by George Leser, as Senior Vice President
of Wachovia Bank, National Association on behalf of the bank, who is personally known to me or who
has produced ___as identification.

Witness my hand and official seal, this _____ day of December, 2006.

	 	 	 
	 

	 	______________________________, Notary Public
	Notary Seal
	 	 
	 

	 	______________________________
	 

	 	(Printed Name of Notary)
	 
	 

	 	Commission Expires: ___________________________
	 
	 

	 	Commission Number: ___________________________

Page 7

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