Document:

EX-10.24  Third Amendment to Second Amended and Re

 

Exhibit 10.24

     THIRD AMENDMENT TO SECOND AMENDED AND

RESTATED CREDIT AGREEMENT

     This THIRD AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”), dated as of December 23, 2005, is by and among:

	 	A.	 	EQUITY BROADCASTING CORPORATION, an Arkansas corporation, ARKANSAS 49, INC.,
an Arkansas corporation, BORGER BROADCASTING, INC., a Nevada corporation, DENVER
BROADCASTING, INC., an Arkansas corporation, EBC HARRISON, INC., an Arkansas
corporation, EBC PANAMA CITY, INC., an Arkansas corporation, EBC POCATELLO, INC., a
Nevada corporation, EBC SCOTTSBLUFF, INC., an Arkansas corporation, EBC ST. LOUIS,
INC., an Arkansas corporation, FORT SMITH 46, INC., a Nevada corporation, HISPANIC
NEWS NETWORK, INC., an Arkansas corporation, LA GRANDE BROADCASTING, INC., an Arkansas
corporation, LOGAN 12, INC., an Arkansas corporation, MARQUETTE BROADCASTING, INC., a
Nevada corporation, MONTGOMERY 22, INC., an Arkansas corporation, NEVADA CHANNEL 3,
INC., an Arkansas corporation, NEWMONT BROADCASTING CORPORATION, an Arkansas
corporation, PRICE BROADCASTING, INC., a Nevada corporation, PULLMAN BROADCASTING
INC., an Arkansas corporation, REP PLUS, INC., an Arkansas corporation, RIVER CITY
BROADCASTING, INC., an Arkansas corporation, ROSEBURG BROADCASTING, INC., a Nevada
corporation, SHAWNEE BROADCASTING, INC., an Arkansas corporation, TV 34, INC., an
Arkansas corporation, VERNAL BROADCASTING, INC., a Nevada corporation, WOODWARD
BROADCASTING, INC., a Nevada corporation, WYOMING CHANNEL 2, INC., a Nevada
corporation, EBC MINNEAPOLIS, INC., an Arkansas corporation, EBC DETROIT, INC., an
Arkansas corporation, EBC BUFFALO, INC., an Arkansas corporation, EBC WATERLOO, INC.,
an Arkansas corporation, EBC ATLANTA, INC., an Arkansas corporation, EBC SEATTLE,
INC., an Arkansas corporation, EBC KANSAS CITY, INC., an Arkansas corporation, EBC
SYRACUSE, INC., an Arkansas corporation, NEVADA CHANNEL 6, INC., an Arkansas
corporation, EBC PROVO, INC., an Arkansas corporation, EBC SOUTHWEST FLORIDA, INC., an
Arkansas corporation, EBC LOS ANGELES, INC., an Arkansas corporation, EBC BOISE, INC.,
an Arkansas corporation, and SKYPORT SERVICES, INC., an Arkansas corporation,
(together, the “Borrowers” and individually, a “Borrower”)
	 
	 	B.	 	FIELD POINT I, LTD., a Cayman Islands limited liability company formerly
known as Silver Point Onshore CDO, LLC, as assignee of SPCP Group, L.L.C., FIELD POINT
II, LTD., a Cayman Islands limited liability company formerly known as Silver Point
Offshore CDO, LLC, as assignee of SPCP Group, L.L.C.,

Third Amendment To Amended And Restated

Credit Agreement– Page 1

 

 

	 	 	 	SPF CDO I, LLC, a Delaware limited liability company, as assignee of SPCP
Group III, L.L.C., and WELLS FARGO FOOTHILL, INC., a California corporation, as
lenders (together, “Lenders”);
	 
	 	C.	 	SILVER POINT FINANCE, LLC, as Administrative Agent and Documentation Agent for
the Lenders (in such capacities, “Administrative
Agent”); and
	 
	 	D.	 	WELLS FARGO FOOTHILL, INC., as Collateral Agent for the Lenders (in such
capacity, “Collateral Agent”);

RECITALS

     A. Each of the Borrowers, the Collateral Agent, the Administrative Agent, and the Lenders are
parties to a Second Amended and Restated Credit Agreement dated as of June 29, 2004 (as amended,
restated, renewed, replaced, joined, supplemented or otherwise modified from time to time, the
“Credit Agreement”). Capitalized terms used herein without definition have the meanings assigned to
them in the Credit Agreement.

     B. Each of the Borrowers and the Collateral Agent are parties to one or more Security and
Pledge Agreements (as the same may be amended, restated, renewed, replaced, supplemented or
otherwise modified from time to time, collectively, the
“Security Agreements”), pursuant to which
the Borrowers granted to the Collateral Agent, for the benefit of the Lenders, the liens and
security interests described therein.

     C. The Borrowers, the Collateral Agent, the Administrative Agent, and the Lenders are also
parties to an Amended and Restated Affiliate Subordination Agreement dated as of June 29, 2004 (as
the same may be amended, restated, renewed, replaced, supplemented or otherwise modified from time
to time, the “Subordination Agreement”), providing that all Subordinated Indebtedness (as defined
in the Subordination Agreement) shall at all times be subordinate and junior to all Senior
Indebtedness (as defined in the Subordination Agreement) to the extent and in the manner set forth
therein.

     D. Borrowers desire, among other things, to increase the Aggregate Revolving Credit
Commitments (as defined in the Credit Agreement) by $5,462,500 to $30,962,500.

     E. The Lenders are willing to increase the Aggregate Revolving Credit Commitments subject to
the terms and conditions of the Credit Agreement, as amended by this Amendment.

     F. The parties hereto desire to amend the Credit Agreement as hereinafter provided.

     NOW THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged by each of the parties
hereto, the parties agree as follows;

     1. Definitions. The following definition appearing in Section 1.01 (“Definitions”) of
the Credit Agreement is hereby amended and restated to read in its entirety as follows:

Third Amendment To Amended And Restated 

Credit Agreement– Page 2

 

 

“Aggregate Revolving Credit Commitments: an amount calculated from time to
time as Thirty Million Nine Hundred Sixty-Two Thousand Five Hundred Dollars ($30,962,500),
as reduced from time to time by aggregate reductions, if any, in the Revolving Credit
Commitments, from time to time, pursuant to Section 2.05.

     2. Schedule to Credit Agreement. Schedule 2.01 of the Credit Agreement is hereby
replaced by the Schedule 2.01 attached hereto and made a part hereof.

     3. Representations and Warranties of the Borrowers.

     Each Borrower hereby represents and warrants to, and agrees with, the Collateral Agent, the
Administrative Agent, and the Lenders as set forth below. Such representations and warranties shall
survive the making of the Loans.

     (a) Each representation and warranty set forth in Article IV of the Credit Agreement is hereby
restated and affirmed as true and correct as of the date hereof (except to the extent that any such
representations or warranties relate to an earlier specific date or dates).

     (b) The execution and delivery of, and performance by the Borrowers of their obligations
under, the Credit Agreement, the Notes and the Subordination Agreement, as each is amended by this
Amendment have been duly authorized by all requisite corporate action and will not violate any
provision of law, any order, judgment or decree of any court or other agency of government,
including without limitation the Organizational Documents of any of the Borrowers, or any
indenture, agreement or other instrument to which any Borrower is a party, or by which any Borrower
is bound, or be in conflict with, result in a breach of, or constitute (with due notice or lapse of
time or both) a default under, or result in the creation or imposition of any lien, charge or
encumbrance of any nature whatsoever upon any of the property or assets of such Borrower pursuant
to, any such indenture, agreement or instrument.

     (c) The Borrowers have delivered to the Collateral Agent true and complete copies of all such
corporate and other resolutions as were necessary to authorize the execution, delivery and
performance of this Amendment and the transactions contemplated therein by the Borrowers, each
certified by the appropriate secretary or other officer. Each of this Amendment and the Security
Documents constitutes the valid and binding obligation of each Borrower which is party thereto,
enforceable against such Borrower in accordance with its terms, subject, however to bankruptcy,
insolvency, reorganization, moratorium and similar laws affecting the rights and remedies of
creditors generally or the application of principles of equity, whether in any action at law or
proceeding in equity, and subject to the availability of the remedy of specific performance or of
any other equitable remedy or relief to enforce any right under any
such agreement.

     (d) Except for filings and recordings required under Section 2.16 of the Credit Agreement
and except as set forth on Schedule 4.04 of the Credit Agreement, no Borrower is required to obtain
any consent, approval or authorization from, or to file any declaration or statement with, any
governmental instrumentality or other agency or any other person or entity in connection with or as
a condition to the execution, delivery or performance of this Amendment and the transactions
contemplated thereby, except any such which have been obtained or made.

Third Amendment To Amended And Restated

Credit Agreement– Page 3

 

 

     (e) As of the date hereof and after giving effect to this Amendment, no Default has
occurred and is continuing.

     (f) Except as set forth on the Second Amendment Schedule attached hereto, upon execution
hereof, (i) each Person controlled by EBC or in which EBC owns a majority interest is a Borrower
under the Credit Agreement, (ii) EBC has granted to Collateral Agent a security interest in, and
delivered to the Collateral Agent each certificate evidencing an ownership interest in, each Person
in which EBC has any ownership interest, (iii) EBC has granted to Collateral Agent a security
interest in each broadcasting license owned by EBC, (iv) each of the Borrowers (other than EBC) has
granted to Collateral Agent a security interest in all assets now owned or hereafter acquired by
such Borrower, including, without limitation, all broadcasting licenses and permits held by such
Borrower, and (v) each of the Borrowers has delivered to the Collateral Agent for each deposit
account maintained by such Borrower an agreement, in the form provided by the Collateral Agent,
executed by such Borrower and the depository bank for such deposit account, whereby such depository
bank agrees to comply with instructions originated by the Collateral Agent directing disposition of
the funds in such deposit account without further consent by such Borrower.

     4. No
Further Amendments. Except for the amendments set forth herein or otherwise set
forth in any agreement signed by the Lenders and dated the date hereof, the Credit Agreement and
the Loan Documents shall remain unchanged and in full force and effect

     5. References in Security Documents.

     All references to the “Credit Agreement” in all Security Documents and in any other documents
or agreements by and between the Borrowers and their respective Affiliates, and each of them, and
the Lenders and/or the Collateral Agent and/or the Administrative Agent shall from and after the
effective date hereof refer to the Credit Agreement, as amended hereby, and all obligations of the
Borrowers under the Credit Agreement, as amended hereby, shall be secured by and be entitled to
the benefits of said Security Documents and such other documents and agreements. All Security
Documents heretofore executed by the Borrowers and each of them shall remain in full force and
effect to secure the Notes (as defined therein), and such Security Documents, as amended hereby,
are hereby ratified and affirmed.

     6. Further Agreements.

     (a) Each Borrower hereby acknowledges and confirms that it does not have any grounds and
hereby agrees not to challenge (or to allege or to pursue any matter, cause or claim arising under
or with respect to) the Credit Agreement, as amended hereby, the Security Documents or any of the
other Loan Documents, any document, instrument or agreement relating to any of the foregoing, any
of the Indebtedness, covenants, promises, agreements, obligations, duties or liabilities
thereunder, or the status of any thereof as legal, valid and binding obligations enforceable in
accordance with their respective terms, and, to the best of its knowledge, it does not possess
(and hereby forever waives, remises, releases, discharges and holds harmless the Lenders, the
Collateral Agent, and the Administrative Agent, and their respective parents, subsidiaries,
affiliates, stockholders, directors, officers, employees, attorneys,

Third Amendment To Amended And Restated

Credit Agreement– Page 4

 

 

agents and representatives and each of their respective heirs, executors, administrators,
successors and assigns (collectively, the “Noteholder Parties”), from and against, and agree not to
allege or pursue) any action, cause of action, suit, debt, claim, counterclaim, cross-claim,
demand, defense, offset, opposition, demand and other right of action whatsoever, whether in law,
equity or otherwise (which it, all those claiming by, through or under it, or its successors or
assigns, have or may have) against the Noteholder Parties, or any of them, prior to or as of the
date of this Amendment for, upon, or by reason of, any matter, cause or thing whatsoever, arising
out of, or relating to, the Credit Agreement, as amended hereby, the Security Documents, the Loan
Documents or other any document, instrument or agreement relating to any of the foregoing
(including, without limitation, any payment, performance, validity or enforceability of any or all
of the indebtedness, covenants, promises, agreements, provisions, rights, remedies, obligations,
duties and liabilities thereunder) or any transaction relating to any of the foregoing, or any or
all actions, courses of conduct or other matters in any manner whatsoever relating to or otherwise
connected with any of the foregoing.

     (b) Each of the Borrowers agrees that:

     (i) Each of the Security Agreements to which it is a party remains in full force and
effect and continues to be the legal, valid and binding obligation of such Borrower
enforceable against it in accordance with its terms, subject, however to bankruptcy,
insolvency, reorganization, moratorium and similar laws affecting the rights and remedies
of creditors generally or the application of principles of equity, whether in any action at
law or proceeding in equity, and subject to the availability of the remedy of specific
performance or of any other equitable remedy or relief to enforce any right under any such
agreement.

     (ii) In any of the Security Documents, from and after the date hereof, (i) all
references to “Obligations”, or any other term or provision intended to define the
indebtedness or obligations owed to Lenders secured by such Security Document, include the
Obligations as defined in the Credit Agreement as amended hereby; and (ii) all references
to the Credit Agreement constitute references to the Credit Agreement as amended hereby.

     (iii) that the liens and security interests in favor of the Lenders and the Collateral
Agent for the benefit of the Lenders are valid and subsisting liens and security interests
and are superior to all liens and security interests other than those exceptions approved
by the Collateral Agent in writing or as otherwise permitted under the Credit Agreement as
amended hereby.

     (c) Each Borrower acknowledges and agrees that pursuant to the Act and FCC Rules, the
Borrowers are required to file a copy of this Amendment with the FCC and that the Borrowers shall
timely file, in accordance with the Act and FCC Rules, a copy of this Amendment and any other
documents or instruments as may be required or appropriate in connection herewith.

Third Amendment To Amended And Restated 

Credit Agreement– Page 5

 

 

     7. Conditions.

     The effectiveness of this Amendment is subject to satisfaction of the following conditions:

     (a) The Borrowers shall have executed and delivered to the Collateral Agent (or shall have
caused to be executed and delivered to the Collateral Agent by the appropriate Persons), the
following, in each case in form and substance satisfactory to the Collateral Agent:

     (i) an amended and restated Secured Revolving Credit Note payable to the order of each
of the Lenders, in the original principal amount equal to such Lender’s Revolving Credit
Commitment;

     (ii) an amendment to the Subordination Agreement acknowledging and permitting the
increased Aggregate Revolving Credit Commitments;

     (iii) Certified copies (attached as required in Part A of the form attached as
Schedule 3.01 to the Credit Agreement) of all corporate or other action taken by
each Borrower and the Equity Holders of each Borrower authorizing the execution and delivery
of the Notes to which it is a party (including all resolutions authorizing the execution,
delivery and performance of this Amendment by such Borrower and the transactions
contemplated hereby, the incurrence of the Obligations and the granting of the Liens
contemplated by the Loan Documents to which it is a party, to the extent required by the
Organizational Documents applicable thereto) which have been properly adopted and have not
been modified or amended;

     (iv) Such other supporting documents and certificates as the Collateral Agent, the
Administrative Agent, or the Lenders may reasonably request.

     (b) Collateral Agent shall have received the favorable written opinion of general corporate
counsel to the Borrowers dated as of the date hereof, addressed to the Collateral Agent, the
Administrative Agent, and Lenders and reasonably satisfactory to the Collateral Agent in scope and
substance; and

     (c) The representations and warranties of each Borrower and its Affiliates set forth in the
Credit Agreement, as amended hereby, and in the other Loan Documents shall be true and correct in
all material respects on and as of the effective date of this Amendment and each Borrower shall
have performed all obligations which were to have been performed by it hereunder prior to the
effective date of this Amendment (unless waived by the Collateral Agent or the Required Lenders).

     (d) As of the effective date of this Amendment, and since the dates of those certain
Projections attached as Schedule 4.17 to the Credit Agreement and other financial documents
delivered to the Collateral Agent prior thereto, no event or circumstance shall have occurred which
could reasonably be expected to have a Material Adverse Effect.

Third Amendment To Amended And Restated 

Credit Agreement– Page 6

 

 

     (e) Borrowers shall have paid (i) to the Collateral Agent on or before the effective
date of this Amendment for the ratable account of each Revolving Credit Lender, a non- refundable
fee in the total amount of $105,000, of which Collateral Agent and the Lenders acknowledge prior
receipt of $75,000, (ii) all other fees owed to the Collateral Agent, the Administrative Agent, the
Lenders and their respective Affiliates pursuant to the Credit Agreement, as amended hereby, and
(iii) all legal fees and expenses of counsel to Agent and Lenders incurred through the date hereof.

     (f) All legal matters incident to the transactions contemplated hereby shall be reasonably
satisfactory to counsel for the Collateral Agent.

     8. Applicable Law.

     THIS AMENDMENT SHALL BE DEEMED TO BE MADE PURSUANT TO THE LAWS OF THE STATE OF CALIFORNIA
WITH RESPECT TO AGREEMENTS MADE AND TO BE PERFORMED WHOLLY IN THE STATE OF CALIFORNIA AND SHALL BE
CONSTRUED, INTERPRETED, PERFORMED AND ENFORCED IN ACCORDANCE THEREWITH.

     9. Captions.

     The captions in this Amendment are for convenience of reference only and shall not
define or limit the provisions hereof.

     10. Legal Fees.

     The Borrowers shall pay all reasonable out-of-pocket expenses incurred by the
Collateral Agent, the Administrative Agent, and the Lenders in the drafting, negotiation and
closing of the documents and transactions contemplated hereby, including the reasonable fees and
disbursements of the Collateral Agent’s special counsel.

     11. Return of Replaced Notes.

     Each of the Lenders agrees to return to EBC each original note held by such Lender
that is replaced by a Revolving Credit Note delivered in connection
with this Amendment., each such
note to be marked “Replaced.”

     12. Counterparts.

     This Amendment may be executed by the parties hereto in counterparts hereof and by the
different parties hereto on separate counterparts hereof, all of which counterparts shall together
constitute one and the same agreement.

*The Next Page is the Signature Page*

Third Amendment To Amended And Restated

Credit Agreement– Page 7

 

 

     IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed as a
sealed instrument by their duly authorized representatives, all as of the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	WELLS FARGO FOOTHILL, INC., as

Collateral Agent and Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	SILVER POINT FINANCE, LLC, as

Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	ADDITIONAL LENDERS:	 	 
	 
	 	 	 	 	 	 
	 	 	FIELD POINT I, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	FIELD POINT II, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	SPF CDO I, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Third Amendment To Amended And Restated

Credit Agreement– Page 8

 

 

     Each of the undersigned Borrowers hereby consents to and accepts the foregoing Amendment.

	 	 	 	 	 	 	 
	 	 	EQUITY BROADCASTING CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ James H. Hearnsberger
 

James H. Hearnsberger
	 	 
	 

	 	Title:
	 	Executive Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	ARKANSAS 49, INC.

BORGER BROADCASTING, INC.

DENVER BROADCASTING, INC.

EBC HARRISON, INC.

EBC PANAMA CITY, INC.

EBC POCATELLO, INC.

EBC SCOTTSBLUFF, INC.

EBC ST. LOUIS, INC.

FORT SMITH 46, INC.

HISPANIC NEWS NETWORK, INC.

LA GRANDE BROADCASTING, INC.

LOGAN 12, INC.

MARQUETTE BROADCASTING, INC.

MONTGOMERY 22, INC.

NEVADA CHANNEL 3, INC.

NEWMONT BROADCASTING

CORPORATION

PRICE BROADCASTING, INC.

PULLMAN BROADCASTING INC.

REP PLUS, INC.

RIVER CITY BROADCASTING, INC.

ROSEBURG BROADCASTING, INC.

SHAWNEE BROADCASTING, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ James H. Hearnsberger
 

James H. Hearnsberger
	 	 
	 

	 	Title:
	 	Vice President of each	 	 

Third Amendment To Amended And Restated 

Credit Agreement– Page 9

 

 

	 	 	 	 	 	 	 
	 	 	TV 34, INC.

VERNAL BROADCASTING, INC.

WOODWARD BROADCASTING, INC.

WYOMING CHANNEL 2, INC.

EBC MINNEAPOLIS, INC.

EBC DETROIT, INC. 

EBC BUFFALO, INC.

EBC WATERLOO, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ James H. Hearnsberger
 

James H. Hearnsberger
	 	 
	 

	 	Title:
	 	Vice President of each	 	 
	 
	 	 	 	 	 	 
	 	 	EBC ATLANTA, INC. 

EBC SEATTLE, INC.

EBC KANSAS CITY, INC.

EBC SYRACUSE, INC.

NEVADA CHANNEL 6, INC.

EBC PROVO, INC.

EBC SOUTHWEST FLORIDA, INC.

EBC LOS ANGELES, INC.

EBC BOISE, INC.

SKYPORT SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ James H. Hearnsberger
 

James H. Hearnsberger
	 	 
	 

	 	Title:
	 	Vice President of each	 	 

Third Amendment To Amended And Restated

Credit Agreement– Page 10

 

 

Schedule 2.01

Allocation of Loans and Commitments

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Percentage	 	 	 	 	 	 	 	 
	 	 	Revolving	 	Revolving	 	Term Loan	 	Percentage	 	Term Loan	 	Percentage
	 	 	Credit	 	Credit	 	A	 	Term Loan A	 	B	 	Term Loan B
	Lender	 	Commitment	 	Commitments	 	Commitment	 	Commitments	 	Commitment	 	Commitments
	FIELD POINT
I, LTD.
	 	$	6,011,562.50	 	 	 	19.41562	%	 	$	3,200,000	 	 	 	16	%	 	$	1,318,125	 	 	 	13.875	%
	FIELD POINT II,
LTD.
	 	$	6,099,375.00	 	 	 	19.69924	%	 	$	4,800,000	 	 	 	24	%	 	$	2,244,375	 	 	 	23.625	%
	SPF CDO I, LLC
	 	$	3,370,312.50	 	 	 	10.88514	%	 	$	2,000,000	 	 	 	10	%	 	$	1,187,500	 	 	 	12.5	%
	WELLS FARGO
FOOTHILL, INC
	 	$	15,481,250.00	 	 	 	50	%	 	$	10,000,000	 	 	 	50	%	 	$	4,750,000	 	 	 	50	%
	TOTAL
	 	$	30,962,500.00	 	 	 	100	%	 	$	20,000,000	 	 	 	100	%	 	$	9,500,000	 	 	 	100	%

 

 

Second Amendment Schedule 

Borrower and Collateral Exceptions

1. Person controlled by EBC or in which EBC owns a majority interest that are not Borrowers
under the Credit Agreement:

Central Arkansas Payroll Company, an Arkansas corporation

EBC Flagstaff, Inc.

EBC Mount Vernon, Inc.

Equity Insurance, Inc., an Arkansas corporation

Kaleidoscope Affiliates of Las Vegas, LLC

KLRA. Inc.

Little Rock TV-14, LLC

Marianna Broadcasting, Inc.

Montana License Sub, Inc.

H&H Properties I Limited Partnership

2. Persons in which EBC has an ownership interest with respect to which such ownership
interest is not subject to a security interest in favor of the Collateral Agent:

None

3. Broadcasting Licenses owned by EBC not subject to a security interest in favor of the
Collateral Agent:

None

4. Assets owned by Borrowers not subject to a security interest in favor of the Collateral Agent:

5. Deposit Accounts maintained by Borrowers not subject to a control agreement:EX-10.53  VAN GERWEN AGREEMENT

 

EXHIBIT 10.53

CONFIDENTIAL

CHANGE IN CONTROL, SEVERANCE

AND NON-COMPETITION AGREEMENT

          AGREEMENT, dated as of 3-23-01 and effective as of
March 1, 2001 by and between Wolverine Tube, Inc., a Delaware corporation (“Wolverine” or
“Company”), and John Van Gerwen, an individual residing at 116 Elm Street, Hollidaysburg,
Pennsylvania 16648 (the “Executive”).

W I T N E S S E T H:

          WHEREAS, Wolverine recognizes the Executive’s expertise in connection with his employment by
Wolverine or its subsidiaries or affiliates (collectively, the “Company”); and

          WHEREAS, the Company desires to provide the Executive with severance benefits or the
opportunity for continued employment in a different position if the Executive’s employment is
terminated for the reasons set forth herein and the Executive refrains from engaging in certain
activities in the event his employment is terminated, upon the terms and conditions hereinafter
set forth; and

          WHEREAS, the Company and the Executive have therefore agreed to enter into this Agreement
effective on the date above;

          NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained,
the parties hereto hereby agree as follows:

	1.	 	Termination of Employment.

	 	(a)	 	Termination for Cause: Resignation without Good Reason.

          (i) If the Executive’s employment is terminated by the Company for Cause, as defined in
Section l(a)(ii) hereof, or if the Executive resigns from his employment hereunder, other than for
Good Reason, as defined in Section l(a)(iii) hereof unless said resignation comes within two (2)
years of a Change in Control, as discussed in Section l(b)(i) below, the Executive shall be
entitled to only (A) severance benefits as provided by the Company’s general procedures and
practices, if any, (B) payment of the pro rata portion of the Executive’s salary through and
including the date of termination or resignation, and (C) such employee benefits as may be due to
Executive pursuant to the provisions of the benefit plans which govern such issues.

          (ii) For purposes of this Agreement, termination for “Cause” shall mean termination of the
Executive’s employment by the Company because of (A) the Executive’s conviction for, or guilty
plea to, a felony or a crime involving moral turpitude, (B) the Executive’s commission of an act
of personal dishonesty in connection with his employment by the Company, (C) a breach of fiduciary
duty in connection with his employment with the Company which shall include, but not be limited
to, (1) investment in any person or organization with the knowledge that such person or
organization has or proposes to have dealings with the Company, such person or organization
competes with the Company, or the Company is considering an investment in such person or
organization (the reference to “organization” excludes federal credit unions, publicly owned
insurance companies and corporations the stock of which is

Page 1 of 8

 

listed on a national securities exchange or quoted on NASDAQ if the direct and beneficial stock
ownership of the Executive, including members of his immediate family, is not more than one percent
(1%) of the total outstanding stock of such corporation); (2) a loan (including a guaranty of a
loan) from or to any person or organization having or proposing any dealings with the Company or in
competition with the Company; (3) participation directly or indirectly in any transaction involving
the Company other than as a director or as an officer or employee of the Company; (4) acceptance
from any person or organization having or proposing any dealings with the Company or in competition
with the Company of any gratuity, gift, entertainment or favor which exceeds either nominal value
or common courtesies which are generally accepted business practice; or (5) service as an officer,
director, partner or employee of, or consultant to, any person or organization having or proposing
dealings with the Company or in competition with the Company; (D) the Executive’s failure to
execute or follow the written policies of the Company, including, but not limited to, the Company’s
policy against discrimination or harassment, or (E) the Executive’s refusal to perform the
essential functions of the job, following written notice thereof. Termination of the Executive’s
employment as a result of his death or disability (if such Executive is eligible for benefits under
the Company’s long-term disability plan or would be eligible for such benefits were the Executive a
participant in said plan) shall constitute a termination by the Company with Cause for purposes of
this Agreement.

          (iii) For purposes of this Agreement, resignation for “Good Reason” shall mean the
resignation of the Executive within a period of six (6) months after a reduction in the
Executive’s benefits or pay in an amount in the aggregate in excess of five percent (5%) thereof,
unless all individuals at the same managerial level as the Executive experience a similar
reduction in benefits or pay.

          (iv) The date of termination for Cause shall be the date of receipt by the Executive of
written notice of such termination, or such later date as may be contained in said notice. The
date of resignation without Good Reason shall be the date of receipt by the Company of a written
notice of such resignation.

	 	(b)	 	Termination without Cause: Resignation for Good Reason or after a Change in
Control.

          (i) If the Executive’s employment is terminated by the Company without Cause, or if the
Executive resigns from his employment for any reason within two (2) year’s following a Change in
Control, the Executive shall be entitled to receive the benefits described in subparagraphs (A),
(B), (C) and (D) below. If the Executive resigns for Good Reason (unless said resignation is
within two (2) years following a Change in Control, in which event his benefits are described in
the preceding sentence), he shall be entitled to those benefits described in (A) and (B) below
only. In either case, said benefits will only be paid if the Executive executes an Agreement and
General Release, which shall be drafted by the Company, and if the Executive complies with Section
2 of this Agreement.

               (A) The Company shall pay to the Executive either (x) during the two
years
immediately following a Change in Control, in the event of (i) termination by the Company without
Cause, or (ii) resignation by the Executive for any reason, an amount equal to one (1) year’s
salary; or (y) at any other time, in the event of (i) termination by the Company without Cause or
(ii) resignation by the Executive for Good Reason, an amount equal to one (1) years’ salary; in
either case to be paid at the rate in effect immediately prior to the Severance Date (as defined
in Section l(b)(iv)) plus pay at the same rate

Page 2 of 8

 

               for all vacation time accrued during the calendar year in which the Severance Date occurs, with
such payment to be made at the Company’s option either:

                    (X) as a lump sum within 30 days after the Severance Date, or

                    (Y) as a series of payments in accordance with the Company’s normal payroll procedures
following the Severance Date;

               (B) the Company shall reimburse the Executive for any costs incurred by the
Executive in electing COBRA continuation coverage under only the Company’s medical plan and
maintaining life insurance coverage comparable to that maintained for him by the Company for
the period
from the Severance Date until the earlier to occur of:

                    (X) the date which follows the Severance Date by the lesser of (1) 18
months or (2) the number of months of salary which is being paid to Executive pursuant to
subparagraph (i)(A)(x) or (y) above, or

                    (Y) the date on which the Executive is covered under any other medical plan;

               (C) in lieu of any benefit otherwise due to him under the Company’s annual
bonus plan, the Company shall pay the Executive, an amount equal to (i) a lump sum equal to 20% of
his annual base salary multiplied by (ii) the number of years for which the Executive is entitled
to pay under paragraph (b)(i)(A) above; provided, however, that in the event that the Severance
Date occurs after the first six (6) full months of the Company’s then current fiscal year, the
Company shall pay the Executive an additional amount equal to the actual bonus which would have
been paid to the Executive for said year had he remained employed throughout said year less the
amount of the above-described lump sum paid to him pursuant to this subparagraph (C) for the first
of the years for which he is entitled to be paid under paragraph (b)(i)( A).

               (D) the Company shall reimburse the Executive for any reasonable costs
actually incurred by the Executive for outplacement services provided by an outplacement
consultant
mutually agreeable to the Executive and the Company for a period not to exceed six (6) months.

          (ii) In the event the Executive refuses to execute or breaches the Agreement and General
Release tendered to the Executive on or about the Severance Date, or in the event the Executive
breaches any of the covenants contained in Section 2, the Executive acknowledges and agrees that
the Company will cease any payments remaining under Section 2(b)(i) of this Agreement and that the
Executive shall be entitled to no further payments or benefits under this Agreement.

          (iii) The Executive shall have no further right under this Agreement or otherwise to receive
any bonus or other compensation with respect to the year in which the Severance Date occurs and
later years

          (iv) The date of termination of employment without Cause shall be the date specified in a
written notice of termination to the Executive and the date of resignation for Good Reason shall
be the date

Page 3 of 8

 

of receipt by the Company of written notice of resignation (both such dates hereinafter referred
to as the “Severance Date”).

          (v) For purposes of this Agreement, “Change in Control” shall mean:

               (A) The Company is merged, consolidated or reorganized into or with
another
corporation or other legal person, and as a result of such merger, consolidation or reorganization
less than a majority of the combined voting power of the then-outstanding securities of such
corporation or person immediately after such transaction are held in the aggregate by the holders
of Voting Stock (as that term is hereafter defined) of the Company immediately prior to such
transaction;

               (B) The Company sells or otherwise transfers all or substantially all of its
assets to another corporation or other legal person, and as a result of such sale or transfer
less than a
majority of the combined voting power of the then-outstanding securities of such corporation
or person
immediately after such sale or transfer is held in the aggregate by the holders of Voting
Stock of the
Company immediately prior to such sale or transfer;

               (C) There is a report filed on Schedule 13D or Schedule 14D-1 (or any
successor schedule, form or report), each as promulgated pursuant to the Securities Exchange
Act of 1934,
as amended (the “Exchange Act”), disclosing that (x) any person (as the term “person” is used
in Section
13(d)(3) or Section 14(d)(2) of the Exchange Act) has become the beneficial owner (as the term
“beneficial
owner” is defined under Rule 13d-3 or any successor rule or regulation promulgated under the
Exchange
Act) of securities representing 15% or more of the combined voting power of the
then-outstanding
securities entitled to vote generally in the election of directors of the Company (“Voting
Stock”), or (y) any
person has, during any period, increased the number of shares of Voting Stock beneficially
owned by such
person by an amount equal to or greater than 15% of the outstanding shares of Voting Stock;
provided,
however, that transfers of shares of Voting Stock between a person and the affiliates
or associates (as such
terms are defined under Rule 12b-2 or any successor rule or regulation promulgated under the
Exchange
Act) of such person shall not be considered in determining any increase in the number of
shares of Voting
Stock beneficially owned by such person; or

               (D) The Company files a report or proxy statement with the Securities and
Exchange Commission pursuant to the Exchange Act disclosing in response to form 8-K or
Schedule 14A
(or any successor schedule, form or report or item therein) that a change in control of the
Company has
occurred or will occur in the future pursuant to any then-existing contract or transaction.

     Notwithstanding the foregoing provisions of Sections (C) or (D) unless otherwise determined
in a specific case by majority vote of the Board, a “Change in Control” shall not be deemed to
have occurred for purposes of Sections (C) or (D) solely because (1) the Company, (2) an entity in
which the Company directly or indirectly beneficially owns 50% or more of the voting securities (a
“Subsidiary”), or (3) any employee stock ownership plan or any other employee benefit plan of the
Company or any Subsidiary either files or becomes obligated to file a report or a proxy statement
under or in response to Schedule 13D, Schedule 14D-1, Form 8-K or Schedule 14A (or any successor
schedule, form or report or item therein) under the Exchange Act disclosing beneficial ownership
by it of shares of Voting Stock, whether in excess

Page 4 of 8

 

of 15% or otherwise, or because the Company reports that a change in control of the Company has
occurred or will occur in the future by reason of such beneficial ownership.

	2.	 	Secrecy, Non-Solicitation and Non-Competition.

     (a) Secrecy. During the Executive’s employment with the Company and for a period of
three
(3) years after his termination from the Company for any reason, the Executive Covenants and
agrees that
he will not, except in performance of the Executive’s obligations to the Company, or with the
prior written
consent of the Company pursuant to the authority granted by a resolution of the Board,
directly or
indirectly, disclose any secret or confidential information that he may learn or has learned
by reason of his
association with the Company or use any such information. The term “secret or confidential
information”
includes, without limitation, information not previously disclosed to the public or to the
trade by the
Company’s management with respect to the Company’s products, facilities and methods, trade
secrets and
other intellectual property, systems, procedures, manuals, confidential reports, products
price lists,
customer lists, financial information (including the revenues, costs or profits associated
with any of the
Company’s products), business plans, prospects, employee or employees, compensation, or
opportunities
but shall exclude any information already in the public domain which has been disclosed to the
public
during the normal course of the Company’s business.

     (b) Customer Protection. During the Executive’s employment with the Company and for a
period of two (2) years following the termination of the Executive’s employment for any
reason, the
Executive covenants and agrees that he will not solicit or attempt to solicit any business
from the
Company’s customers, including actively sought prospective customers, with whom the Executive
had
Material Contact during his employment, for the purpose of providing products or services
competitive
with those provided by the Company. Material Contacts exist between the Executive and each
customer or
prospective customers with whom the Executive has dealt within the twelve months prior to the
last day
worked, whose dealings with the Company were coordinated or supervised by the Executive, or
about
whom the Executive obtained trade secrets or confidential information as a result of the
Executive’s
association with the Company.

     (c) Non-solicitation of Employees. During the Executive’s employment and for a period of
one (1) year following the termination of the Executive’s employment for any reason, the
Executive,
covenants and agrees that he shall not directly or indirectly, on his behalf or on behalf of
any person or
other entity, solicit or induce, or attempt to solicit or induce, any person who, on the date
hereof or at
anytime during the term of this Agreement, is an employee of the Company, to terminate his or
her
employment with the Company, whether expressed in a written or oral agreement or understanding
or is
otherwise an “at-will” employee.

     (d) Noncompetition. During the Executive’s employment and for a period of one (1)
year
following the termination of the Executive’s employment for any reason, the Executive
covenants and
agrees that he will not, directly or indirectly, compete against the Company within the United
States in the
managerial or executive capacity for another company or entity that designs, produces, sells,
or distributes
copper and copper alloy tubing, copper, copper alloy, and aluminum fabricated products, and
silver bearing
brazing and copper-phos brazing alloys and soft solders including, but not limited to, those
companies
listed on Attachment A.

     (e) Equitable Relief. The Executive acknowledges and agrees that the services
performed by
him are special, unique and extraordinary in that, by reason of the Executive’s employment,
the Executive
may acquire confidential information and trade secrets concerning the operation of the
Company, or that

Page 5 of 8

 

the Executive may have contact with or obtain knowledge of the Company’s customers or prospects,
the use or disclosure of which could cause the Company substantial loss and damages, which could
not be readily calculated and for which no remedy at law would be adequate. Accordingly, the
Executive acknowledges and agrees that the Company shall be entitled to obtain a temporary
restraining order and/or a preliminary or permanent injunction restraining the Executive from
engaging in activities prohibited by this Section 2 or such other relief as may be required to
specifically enforce any of the covenants in this Section 2. The Executive acknowledges and agrees
that the Company shall be entitled to its attorneys’ fees and court costs should the Company
pursue legal action to enforce its rights under this section.

3. Amendment; Waiver. This Agreement may not be modified, amended or waived in any manner
except by an instrument in writing signed by both parties hereto; provided, however, that
any such modification, amendment or waiver on the part of the Company shall have been previously
approved by the Board. The waiver by either party of compliance with any provision of this
Agreement by the other party shall not operate or be construed as a waiver of any other provision
of this Agreement, or of any subsequent breach by such party of a provision of this Agreement.

4. Withholding. Payments to the Executive of all compensation contemplated under this Agreement
shall be subject to all applicable legal requirements with respect to the withholding of taxes and
similar
deductions.

5. Governing Law All matters affecting this Agreement, including the validity thereof,
are to be
governed by, and interpreted and construed in accordance with, the laws of the State of Alabama applicable
to contracts executed in and to be performed in that State. Nothing in this agreement shall affect the rights
of either party under state or federal laws affecting employment.

6. Notices. Any notice hereunder by either party to the other shall be given in writing by personal
delivery or certified mail, return receipt requested. If addressed to the Executive, the notice
shall be
delivered or mailed to the Executive at the address first set forth below, or if addressed to the
Company, the
notice shall be delivered or mailed to AmSouth Bank Building, 200 Clinton Avenue, Suite 1000,
Huntsville, Alabama 35801, or such address as the Company or the Executive may designate by written
notice at any time or from time to time to the other party. A notice shall be deemed given, if by
personal
delivery, on the date of such delivery or, if by certified mail, on the date shown on the
applicable return
receipt.

7. Supersedes Previous Agreements. This Agreement supersedes all prior or
contemporaneous
negotiations, commitments, agreements and writings with respect to the subject matter hereof, all
such
other negotiations, commitments, agreements and writings will have no further force or effect, and
the
parties to any such other negotiation, commitment, agreement or writing will have no further rights
or
obligations thereunder.

8. Severability. The parties agree that if any part of this Agreement is found to be illegal or
unenforceable, including, but not limited to, the geographic, temporal, or activity restrictions contained in
Section 2, the court should delete or modify the illegal or unenforceable provision(s) hereby leaving the
remaining or modified provision(s) fully enforceable.

9. Counterparts. This Agreement may be executed by either of the parties hereto in counterparts,
each of which shall be deemed to be an original, but all such counterparts shall together
constitute one and the same instrument.

Page 6 of 8

 

10. Headings. The headings of sections herein are included solely for convenience
of reference and shall not control the meaning or interpretation of any of the provisions of this
Agreement.

          IN WITNESS WHEREOF, the Company has caused the Agreement to be signed by its officer pursuant
to the authority of its Board, and the Executive has executed this Agreement, as of the day and
year first written above.

	 	 	 	 	 
	 	WOLVERINE TUBE, INC.

 	 
	 	By:  	      /s/ Dennis Horowitz
 	 
	 	Name:  	Dennis Horowitz 
	 	Title:  	Chairman, President & CEO 
	 

	 	 	 	 	 
	 	EXECUTIVE

 	 
	 	/s/ John Van Gerwen
 	 
	 	Name:  	John Van Gerwen 	 
	 	Executive’s Address:

          116 Elm Street

          Hollidaysburg, Pennsylvania 16648 	 
	 

Page 7 of 8

 

ATTACHMENT “A”

1. Cerro Copper Products Company, Inc.

2. Outokumpu American Brass Company

3. Industrias Nacobre S.A. de C. V.

4. Olin Corporation

5. Mueller Industries, Inc.

6. Kobe Copper Products, Inc.

7. J. W. Harris

8. National Copper

9. Wieland

10. Hitachi, Ltd.

11. Trefimetaux

12. IUSA and Reading Tube Corporation

13. Linderme

14. Amcast Industrial

15. NIBCO

16. High Performance Tube

17. DeGussa

18. Lucus — Milhaupt

Reference to the above companies shall incorporate any related companies thereto, including, but
not limited to, all parent companies, subsidiary companies, majority-owned companies and joint
ventures.

Page 8 of 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}]]