Document:

Exhibit 4.12

 

Exhibit 4.12

AMENDMENT NO. 4 TO CREDIT AGREEMENT

     The Amendment No. 4 to Credit Agreement (this “Agreement”) dated as of February 1,
2005 is made by and among BLOCK COMMUNICATIONS, INC., an Ohio corporation (“Block” or the
“Borrower”), BANK OF AMERICA, N.A., in its capacity as administrative agent (in such
capacity, the “Administrative Agent” ), each of the Lenders (as defined in the Credit
Agreement, defined below) signatory hereto, and each of the Guarantors (as defined in the Credit
Agreement) signatory hereto.

WITNESSETH

     WHEREAS, the Borrower, the Administrative Agent and each of the Lenders have entered into that
certain Credit Agreement dated as of May 15, 2002, as amended by that certain Amendment No.1 to
Credit Agreement dated as of September 12, 2002, as further amended by that certain Amendment No.2
to Credit Agreement dated as of September 30, 2003, as further amended by that certain Amendment
No. 3 Credit Agreement dated as of March 19, 2004 (as so amended, as hereby amended, and as from
time to time hereafter further amended, modified, supplemented, restated, or amended and restated,
the “Credit Agreement” ; capitalized terms as used in this Agreement not otherwise defined
herein shall have the respective meanings given thereto in the Credit Agreement), pursuant to which
the Lenders have made available to the Borrower a revolving credit facility (including a letter of
credit facility and a swing line facility) and two term loan facilities; and

     WHEREAS, each of the Guarantors has entered into a Guaranty pursuant to which it has
guaranteed certain or all the obligations of the Borrower under the Credit Agreement and the other
Loan Documents; and

     WHEREAS, the Borrower has advised the Administrative Agent and the Lenders that it desires to
amend certain provisions of the Credit Agreement as set forth below, and to convert the Outstanding
Amount of the Term Loan A as of the date hereof into Outstanding Amounts under Term Loan B, and the
Administrative Agent and the Lenders have agreed so to amend the Credit Agreement on the terms and
conditions set forth herein;

     NOW, THEREFORE, in consideration of the premises and further valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

     1. Amendments to Credit Agreement. Subject to the terms and conditions set forth
herein, the Credit Agreement is hereby amended as follows:

          (a) With respect to the definition of “Applicable Margin” in Section 1.01
of the Credit Agreement, the column of the table contained therein labeled “Term Loan B” is
hereby amended by (i) deleting the label of such column and replacing it with “Term Loan A
and Term Loan B”, (ii) deleting each reference to “2.75%” therein and replacing

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the same with “2.25%” and (iii) deleting each reference to “1.75%” therein and replacing the same
with “1.25%.”

          (b) With respect to the definition of “Applicable Margin” in Section 1.01 of
the Credit Agreement, the column of the table contained therein labeled “Revolving Loans,
Term Loan A and Swing Line Loans” is hereby amended by deleting the reference in such label
to “Term Loan A”.

          (c) The definition of “Term Loan B” in Section 1.01 of the Credit Agreement is
herby amended by deleting such definition in its entirety and replacing the same with the
following:

               “Term Loan B” means the loans made pursuant to the Term Loan B
Facility in accordance with Section 2.01(b) and the portion of the
Term Loan A converted to loans under the Term Loan B Facility pursuant to
Amendment No.2 or Amendment No. 4.

          (d) The definition of “Term Loan B Facility” in Section 1.01 of the Credit
Agreement is hereby amended by deleting such definition in its entirety and replacing the
same with the following:

               “Term Loan B Facility” means the facility described in
Section 2.01 (b) for a Term Loan to the Borrower by the Term Loan B
Lenders in the original principal amount of $75,000,000, plus the portion of
the Term Loan A converted to a portion of the Term Loan B pursuant to
Amendment No. 2 and pursuant to Amendment No. 4.

          (e) The following new definition is hereby added to Section 1.01 of the Credit
Agreement in its proper alphabetical order:

               “Amendment No. 4” means that certain Amendment No. 4 to this
Agreement dated as of February 1, 2005 by and among the Borrower, the
Administrative Agent and certain of the Lenders party thereto.

          (f) Section 2.09(c) is hereby amended by deleting such section in its entirety
and replacing it with the following:

               (c) The Borrower shall make a repayment of $11,500 of the principal
amount of the Term Loan A on March 31, 2005, after which the remaining
outstanding principal amount thereof will be converted to a portion of the
Term Loan B in accordance with the provisions of Amendment No. 4.

          (g) Section 2.09(d) is hereby amended by deleting the table contained
therein in its entirety and replaced such table with the following:

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	 	Date	 	 	Amount	 
	 	September 30, 2002
	 	 	$187,500	 
	 	December 31, 2002
	 	 	$187,500	 
	 	March 31, 2003
	 	 	$187,500	 
	 	June 30, 2003
	 	 	$187,500	 
	 	September 30, 2003
	 	 	$187,500	 
	 	December 31, 2003
	 	 	$212,500	 
	 	March 31, 2004
	 	 	$212,500	 
	 	June 30, 2004
	 	 	$212,500	 
	 	September 30, 2004
	 	 	$212,500	 
	 	December 31, 2004
	 	 	$212,500	 
	 	March 31, 2005
	 	 	$198,950	 
	 	June 30, 2005
	 	 	$210,450	 
	 	September 30, 2005
	 	 	$210,450	 
	 	December 31, 2005
	 	 	$210,450	 
	 	March 31, 2006
	 	 	$210,450	 
	 	June 30, 2006
	 	 	$210,450	 
	 	September 30, 2006
	 	 	$210,450	 
	 	December 31, 2006
	 	 	$210,450	 
	 	March 31, 2007
	 	 	$210,450	 
	 	June 30, 2007
	 	 	$210,450	 
	 	September 30, 2007
	 	 	$210,450	 
	 	December 31, 2007
	 	 	$210,450	 
	 	March 31, 2008
	 	 	$210,450	 
	 	June 30, 2008
	 	 	$210,450	 
	 	September 30, 2008
	 	 	$210,450	 
	 	December 31, 2008
	 	 	$210,450	 
	 	March 31, 2009
	 	 	$210,450	 
	 	June 30, 2009
	 	 	$210,450	 
	 	September 30, 2009
	 	 	$210,450	 
	 	Term Loan B Maturity Date
	 	 	The Outstanding Amount of the Term Loan B	 
	 

          (h) Section 2.16(a) is hereby amended by deleting the reference therein to “May
15, 2004” and replacing it with “the occurrence of the Revolving Credit Maturity Date.”

          (i) Schedule 1.01(a) is hereby deemed to be amended as of the
effectiveness of Section 2 of this Agreement to reflect the effect of the
conversion of the TLA Outstanding Amount (defined below) into a portion of the Outstanding Amount of the
Term Loan B, as described in Section 2 below.

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     2. Conversion of Term Loan A. On March 31, 2005, after giving effect to the
repayments of the Term Loan A provided in Sections 2.09(c) and (d) (as amended
pursuant to Section 1 above), the aggregate Outstanding Amount of the Term Loan A as of such date
(the “TLA Outstanding Amount”) shall automatically be deemed to have been converted into an equal
Outstanding Amount of the Term Loan B, such that the Outstanding Amount of the Term Loan B shall be
increased by the TLA Outstanding Amount, and (b) each Term Loan A Lender holding a portion of the
TLA Outstanding Amount as of such a date shall (if it is not already also a Term Loan B Lender)
automatically become a Term Loan B Lender, and (c) the Pro Rata Term B Share of the Term Loan B of
each Term Loan B Lender shall be equal to the percentage computed (in each case after giving effect
to the conversions described in subsections (a) and (b) above) as (x) such Term Loan B Lender’s
Outstanding Amount of the Term Loan B divided by (y) the Outstanding Amount of the Term
Loan B. After giving effect to this Section 2, the Outstanding Amount of the Term Loan A
shall be $0, and the Outstanding Amount of the Term Loan B shall be $83,968,550 less the principal
amount of any optional prepayments that may have been made between the date of this Agreement and
March 31, 2005. The parties hereto acknowledge that the Term Loan A Advance Expiration Date has
occurred, the Borrower’s ability to request further Loans under Term Loan A Facility has expired,
and the Term Loan A Facility shall be deemed to have been paid in full and terminated upon the
effectiveness of the provisions of this Section 2. Nothing in this Section 2 or
otherwise in this Agreement shall increase the Outstanding Amount of the Term Loan B of any Term
Loan B Lender that is not a Term Loan A Lender immediately prior to giving effect to this
Agreement.

     3. Conditions Precedent. The effectiveness of this Agreement and the amendments to the
Credit Agreement herein provided are subject to the satisfaction of the following conditions
precedent:

          (a) The Administrative Agent shall have received each of the following documents or
instruments in form and substance reasonably acceptable to the Administrative Agent:

               (i) thirteen (13) original counterparts of this Agreement, duly executed by the
Borrower, the Administrative Agent, each Guarantor and the necessary Lenders,
together with all schedules and exhibits thereto duly completed; and

               (ii) such other documents, instruments, opinions, certifications, undertakings,
further assurances and other matters as the Administrative Agent shall reasonably
require; and

          (b) all fees and expenses payable to the Administrative Agent and the Lenders
(including the fees and expenses of counsel to the Administrative Agent) accrued to date
shall have been paid in full.

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     4. Consent of the Guarantors. Each of the Guarantors has joined in the execution
of this Agreement for the purposes of consenting hereto and for the further purpose of confirming
its guaranty of the Obligations of the Borrower pursuant to the Guaranty to which such Guarantor is
party. Each Guarantor hereby consents, acknowledges and agrees to the amendments of the Credit
Agreement set forth herein and hereby confirms and ratifies in all respects the Guaranty and the
other Loan Documents to which such Guarantor is a party and the enforceability of such Guaranty and
other Loan Documents against such Guarantor in accordance with its terms.

     5. Representations and Warranties. In order to induce the Administrative Agent and the
Lenders to enter into this Agreement, the Borrower and the Guarantors, as applicable, represent and
warrant to the Administrative Agent and the Lenders as follows:

          (a) The representations and warranties made by the Borrower in Article V of the
Credit Agreement (after giving effect to this Agreement) and in each of the other Loan
Documents to which it is a party are true and correct in all material respects on and as of
the date hereof, except to the extent that such representations and warranties expressly
relate to an earlier date;

          (b) There has been no material adverse change in the condition, financial or otherwise,
of the Borrower and its Subsidiaries, taken as a whole, since December 31, 2003; and

          (c) The Persons appearing as Guarantors on the signature pages to this Agreement
constitute all Persons who are required to be Guarantors pursuant to the terms of the Credit
Agreement and the other Loan Documents, including without limitation all Persons who became
Subsidiaries or were otherwise required to become Guarantors after the Closing Date, and
each of such Persons has become and remains a party to Guaranty as a Guarantor;

          (d) This Agreement has been duly authorized, executed and delivered by the Borrower and
Guarantors party hereto and constitutes a legal, valid and binding obligation of such
parties, except as may be limited by general principles of equity or by the effect of any
applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting
creditors’ rights generally; and

               (e) After giving effect to this Agreement, no Default or Event of Default has
occurred and is continuing.

     6. Entire Agreement. This Agreement, together with all the Loan Documents
(collectively, the “Relevant Documents”), sets forth the entire understanding and agreement
of the parties hereto in relation to the subject matter hereof and supersedes any prior
negotiations and agreements among the parties relative to such subject matter. No promise,
condition,representation or warranty, express or implied, not herein set forth shall bind any party hereto,
and not one of them has relied on any such promise, condition, representation or warranty.

-5-

 

Each of the parties hereto acknowledges that, except as otherwise expressly stated in
the Relevant Documents, no representations, warranties or commitments, express or implied, have
been made by any party to the other. None of the terms or conditions of this Agreement may be
changed, modified, waived or canceled orally or otherwise, except as permitted pursuant to
Section 10.01 of the Credit Agreement.

     7. Full Force and Effect of Agreement. Except as hereby specifically amended, modified
or supplemented, the Credit Agreement and all other Loan Documents are hereby confirmed and
ratified in all respects by each party hereto and shall be and remain in full force and effect
according to their respective terms.

     8. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original as against any party whose signature appears thereon, and all of
which shall together constitute one and the same instrument.

     9. Governing Law. This Agreement shall in all respects be governed by, and constructed
in accordance with, the laws of the state of New York.

     10. Enforceability. Should any one or more of the provisions of this Agreement be
determined to be illegal or unenforceable as to one or more of the parties hereto, all other
provisions nevertheless shall remain effective and binding on the parties hereto.

     11. References. All reference in any of the Loan Documents to the “Credit Agreement”
shall mean the Credit Agreement, as amended hereby.

     12. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the Borrower, the Administrative Agent and each of the Guarantors and Lenders, and their
respective successors, assigns and legal representatives; provided, however, that neither
the Borrower nor any Guarantor, without the prior consent of the Required Lenders, may assign any
rights, powers, duties or obligations hereunder.

     13. Expenses. The Borrower agrees to pay to the Administrative Agent all reasonable
out-of-pocket expenses incurred or arising in connection with the negotiation and preparation of
this Agreement.

[Signatures pages follow.]

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 4 to Credit
Agreement to be made, executed and delivered by their duly authorized officers as of the day
and year first above written.

	 	 	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 	 	 
	 	 	BLOCK COMMUNICATIONS, INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	/s/ Gary J. Blair
	 	 	 	 	 
	

	 	Name:
	 	 	 	Gary J. Blair
	 	 	 	 	 
	

	 	Title:
	 	 	 	Executive Vice President
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	GUARANTORS:
	 
	 	 	 	 	 	 
	 	 	BUCKEYE CABLEVISION, INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	/s/ Gary J. Blair
	 	 	 	 	 
	

	 	Name:
	 	 	 	Gary J. Blair
	 	 	 	 	 
	

	 	Title:
	 	 	 	Assistant Treasurer
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ERIE COUNTY CABLEVISION, INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	/s/ Gary J. Blair
	 	 	 	 	 
	

	 	Name:
	 	 	 	Gary J. Blair
	 	 	 	 	 
	

	 	Title:
	 	 	 	Assistant Treasurer
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BUCKEYE TELESYSTEMS, INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	/s/ Gary J. Blair
	 	 	 	 	 
	

	 	Name:
	 	 	 	Gary J. Blair
	 	 	 	 	 
	

	 	Title:
	 	 	 	Assistant Treasurer
	 	 	 	 	 

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 	 	 
	 	 	CORPORATE PROTECTION SERVICES, INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	/s/ Gary J. Blair
	 	 	 	 	 
	

	 	Name:
	 	 	 	Gary J. Blair
	 	 	 	 	 
	

	 	Title:
	 	 	 	Assistant Treasurer
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	COMMUNITY COMMUNICATIONS SERVICES, INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	/s/ Gary J. Blair
	 	 	 	 	 
	

	 	Name:
	 	 	 	Gary J. Blair
	 	 	 	 	 
	

	 	Title:
	 	 	 	Treasurer
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	PG PUBLISHING COMPANY
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	/s/ Gary J. Blair
	 	 	 	 	 
	

	 	Name:
	 	 	 	Gary J. Blair
	 	 	 	 	 
	

	 	Title:
	 	 	 	Vice President
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	MONROE CABLEVISION, INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	/s/ Gary J. Blair
	 	 	 	 	 
	

	 	Name:
	 	 	 	Gary J. Blair
	 	 	 	 	 
	

	 	Title:
	 	 	 	Assistant Treasurer
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	LIMA COMMUNICATIONS CORPORATION
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	/s/ Gary J. Blair
	 	 	 	 	 
	

	 	Name:
	 	 	 	Gary J. Blair
	 	 	 	 	 
	

	 	Title:
	 	 	 	Assistant Treasurer
	 	 	 	 	 

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 	 	 
	 	 	WLFI-TV, INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	/s/ Gary J. Blair
	 	 	 	 	 
	

	 	Name:
	 	 	 	Gary J. Blair
	 	 	 	 	 
	

	 	Title:
	 	 	 	Assistant Treasurer
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	INDEPENDENCE TELEVSION COMPANY
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	/s/ Gary J. Blair
	 	 	 	 	 
	

	 	Name:
	 	 	 	Gary J. Blair
	 	 	 	 	 
	

	 	Title:
	 	 	 	Assistant Secretary
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	TOLEDO AREA TELECOMMUNICATIONS SERVICES, INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	/s/ Gary J. Blair
	 	 	 	 	 
	

	 	Name:
	 	 	 	Gary J. Blair
	 	 	 	 	 
	

	 	Title:
	 	 	 	Assistant Treasurer
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	METRO FIBER & CABLE CONSTRUCTION COMPANY
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	/s/ Gary J. Blair
	 	 	 	 	 
	

	 	Name:
	 	 	 	Gary J. Blair
	 	 	 	 	 
	

	 	Title:
	 	 	 	Assistant Treasurer
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	IDAHO INDEPENDENT TELEVISION, INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	/s/ Gary J. Blair
	 	 	 	 	 
	

	 	Name:
	 	 	 	Gary J. Blair
	 	 	 	 	 
	

	 	Title:
	 	 	 	Assistant Treasurer
	 	 	 	 	 

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 	 	 
	 	 	CARS HOLDING, INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	/s/ Gary J. Blair
	 	 	 	 	 
	

	 	Name:
	 	 	 	Gary J. Blair
	 	 	 	 	 
	

	 	Title:
	 	 	 	Treasurer
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ACCESS TOLEDO, LTD.
	 	 	By:	 	BLOCK COMMUNICATIONS, INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	 	 	/s/ Gary J. Blair
	 	 	 	 	 
	

	 	Name:
	 	 	 	Gary J. Blair
	 	 	 	 	 
	

	 	Title:
	 	 	 	Assistant Treasurer
	 	 	 	 	 

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	ADMINISTRATIVE AGENT:
	 
	 	 	 	 
	 	 	BANK OF AMERICA, N.A. as Administrative Agent
	 
	 	 	 	 
	

	 	By:
	 	/s/ Kipling Davis
	

	 	 	 	 
	

	 	Name:
	 	Kipling Davis
	

	 	Title:
	 	Senior Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	LENDERS:
	 	 	BANK OF AMERICA, N.A.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Kipling Davis
	

	 	 	 	 
	

	 	Name:
	 	Kipling Davis
	

	 	Title:
	 	Senior Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	NATIONAL CITY BANK
	 
	 	 	 	 
	

	 	By:
	 	/s/ Christian Kalmbach
	

	 	 	 	 
	

	 	Name:
	 	Christian Kalmbach
	

	 	Title:
	 	Senior Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	BANK OF MONTREAL, CHICAGO BRANCH
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael Silverman
	

	 	 	 	 
	

	 	Name:
	 	Michael Silverman
	

	 	Title:
	 	Managing Director

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	FLEET NATIONAL BANK
	 
	 	 	 	 
	

	 	By:
	 	/s/ Kipling Davis
	

	 	 	 	 
	

	 	Name:
	 	Kipling Davis
	

	 	Title:
	 	Senior Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	COMERICA BANK
	 
	 	 	 	 
	

	 	By:
	 	/s/ Bryndan Skelton
	

	 	 	 	 
	

	 	Name:
	 	Bryndan Skelton
	

	 	Title:
	 	Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael E. Masters
	

	 	 	 	 
	

	 	Name:
	 	Michael E. Masters
	

	 	Title:
	 	Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	FIFTH THIRD BANK
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael R. Miller
	

	 	 	 	 
	

	 	Name:
	 	Michael R. Miller
	

	 	Title:
	 	Executive Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	STANDARD FEDERAL BANK N.A.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Jason W. Bierlein
	

	 	 	 	 
	

	 	Name:
	 	Jason W. Bierlein
	

	 	Title:
	 	Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL CORPORATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Peter Foley
	

	 	 	 	 
	

	 	Name:
	 	Peter Foley
	

	 	Title:
	 	Duly Authorized Signatory

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	BIG SKY SENIOR LOAN FUND, LTD.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof
	

	 	 	 	 
	

	 	Name:
	 	Michael B. Botthof
	

	 	Title:
	 	Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	BRYN MAWR CLO, LTD.
	 
	 	 	 	 
	

	 	By:
	 	Deerfield Capital Management LLC,
	

	 	 	 	As its Collateral Manager
	 
	 	 	 	 
	

	 	By:
	 	/s/ Mark E. Wittnebel
	

	 	 	 	 
	

	 	Name:
	 	Mark E. Wittnebel
	

	 	Title:
	 	Senior Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	Citigroup Investments Corporate Loan Fund Inc.
	 	 	By: Travelers Asset Management International Company LLC
	 
	 	 	 	 
	

	 	By:
	 	/s/ Ronald Carter
	

	 	 	 	 
	

	 	Name:
	 	Ronald Carter
	

	 	Title:
	 	Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	COSTANTINUS EATON VANCE CDO V, LTD.
	 
	 	 	 	 
	

	 	By:
	 	Eaton Vance Management,
	

	 	 	 	as Investment Advisor
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof
	

	 	 	 	 
	

	 	Name:
	 	Michael B. Botthof
	

	 	Title:
	 	Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	EATON VANCE CDO III, LTD.
	 
	 	 	 	 
	

	 	By:
	 	Eaton Vance Management,
	

	 	 	 	as Investment Advisor
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof
	

	 	 	 	 
	

	 	Name:
	 	Michael B. Botthof
	

	 	Title:
	 	Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	EATON VANCE CDO VI, LTD.
	 
	 	 	 	 
	

	 	By:
	 	Eaton Vance Management,
	

	 	 	 	as Investment Advisor
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof
	

	 	 	 	 
	

	 	Name:
	 	Michael B. Botthof
	

	 	Title:
	 	Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	EATON VANCE INSTITUTIONAL SENIOR LOAN FUND.
	 
	 	 	 	 
	

	 	By:
	 	Eaton Vance Management,
	

	 	 	 	as Investment Advisor
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof
	

	 	 	 	 
	

	 	Name:
	 	Michael B. Botthof
	

	 	Title:
	 	Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	EATON VANCE LIMITED DURATION INCOME
	 
	 	 	 	 
	

	 	By:
	 	Eaton Vance Management,
	

	 	 	 	as Investment Advisor
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof
	

	 	 	 	 
	

	 	Name:
	 	Michael B. Botthof
	

	 	Title:
	 	Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	EATON VANCE SENIOR INCOME TRUST.
	 
	 	 	 	 
	

	 	By:
	 	Eaton Vance Management,
	

	 	 	 	as Investment Advisor
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof
	

	 	 	 	 
	

	 	Name:
	 	Michael B. Botthof
	

	 	Title:
	 	Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	GALLATIN FUNDING I LTD.
	 
	 	 	 	 
	

	 	By:
	 	Bear Stearns Asset Management, Inc., as its
	

	 	 	 	Collateral Manager
	 
	 	 	 	 
	

	 	By:
	 	/s/ Niall D. Rosenzweig
	

	 	 	 	 
	

	 	Name:
	 	Niall D. Rosenzweig
	

	 	Title:
	 	Managing Director

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	GRAYSON & CO.
	 
	 	 	 	 
	

	 	By:
	 	Boston Management and Research,
	

	 	 	 	as Investment Advisor
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof
	

	 	 	 	 
	

	 	Name:
	 	Michael B. Botthof
	

	 	Title:
	 	Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	ING PRIME RATE TRUST
	 
	 	 	 	 
	

	 	By:
	 	ING Investments, LLC.,
	

	 	 	 	as its Investments Manager
	 
	 	 	 	 
	

	 	By:
	 	/s/ Mohamed Basma
	

	 	 	 	 
	

	 	Name:
	 	Mohamed Basma
	

	 	Title:
	 	Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	LANDMARK II CDO LIMITED
	 
	 	 	 	 
	

	 	By:
	 	Aladdin Asset Management LLC,
	

	 	 	 	as Manager
	 
	 	 	 	 
	

	 	By:
	 	/s/ John J. D’Angelo
	

	 	 	 	 
	

	 	Name:
	 	John J. D’Angelo
	

	 	Title:
	 	Authorized Signatory

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	Long Grove CLO LTD.
	 
	 	 	 	 
	

	 	By:
	 	Deerfield Capital Management LLC,
	

	 	 	 	As its Collateral Manager
	 
	 	 	 	 
	

	 	By:
	 	/s/ Mark E. Wittnebel
	

	 	 	 	 
	

	 	Name:
	 	Mark E. Wittnebel
	

	 	Title:
	 	Senior Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	OCTAGON INVESTMENT PARTNERS III, LTD.
	 
	 	 	 	 
	

	 	By:
	 	Octagon Credit Investors, LLC
	

	 	 	 	as Portfolio Manager
	 
	 	 	 	 
	

	 	By:
	 	/s/ Andrew D. Gordon
	

	 	 	 	 
	

	 	Name:
	 	Andrew D. Gordon
	

	 	Title:
	 	Portfolio Manager

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	OCTAGON INVESTMENT PARTNERS V, LTD.
	 
	 	 	 	 
	

	 	By:
	 	Octagon Credit Investors, LLC
	

	 	 	 	as Portfolio Manager
	 
	 	 	 	 
	

	 	By:
	 	/s/ Andrew D. Gordon
	

	 	 	 	 
	

	 	Name:
	 	Andrew D. Gordon
	

	 	Title:
	 	Portfolio Manager

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	OCTAGON INVESTMENT PARTNERS VI, LTD.
	 
	 	 	 	 
	

	 	By:
	 	Octagon Credit Investors, LLC
	

	 	 	 	as Collateral Manager
	 
	 	 	 	 
	

	 	By:
	 	/s/ Andrew D. Gordon
	

	 	 	 	 
	

	 	Name:
	 	Andrew D. Gordon
	

	 	Title:
	 	Portfolio Manager

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	ROSEMONT CLO,LTD.
	 
	 	 	 	 
	

	 	By:
	 	Deerfield Capital Management LLC,
	

	 	 	 	as its Collateral Manager
	 
	 	 	 	 
	

	 	By:
	 	/s/ Mark E. Wittenbel
	

	 	 	 	 
	

	 	Name:
	 	Mark E. Wittnebel
	

	 	Title:
	 	Senior Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	SENIOR DEBT PORTFOLIO
	 
	 	 	 	 
	

	 	By:
	 	Boston Management and Research,
	

	 	 	 	as Investment Advisor
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof
	

	 	 	 	 
	

	 	Name:
	 	Michael B. Botthof
	

	 	Title:
	 	Vice President

Block Communications

Amendment No. 4

Signature Pages

 

 

	 	 	 	 	 
	 	 	TOLLI & CO
	 
	 	 	 	 
	

	 	By:
	 	Eaton Vance Management
	

	 	 	 	as Investment Advisor
	 
	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof
	

	 	 	 	 
	

	 	Name:
	 	Michael B. Botthof
	

	 	Title:
	 	Vice President

Block Communications

Amendment No. 4

Signature PagesExhibit 10.5

 

Exhibit 10.5

Compensation Agreement

This Compensation Agreement (this “Agreement”) is made as of May 27, 2004, by and between
Block Communications, Inc., an Ohio corporation (“Corporation”), and William K. Block, Jr., an
individual resident at 612 Manitou Drive, Maumee, Ohio (“Block”).

Recitals:

	 	•  	Block desires to become less active in the day-to-day business operations of
Corporation.
	 
	 	•  	Corporation has determined that it is in its interest and that of its shareholders to
continue to avail itself of Block’s knowledge and expertise in connection with the
operation of the businesses of Corporation.
	 
	 	•  	Block is willing to continue to provide his services to Corporation upon the terms and
conditions set forth in this Agreement.

Agreement:

The parties, intending to be legally bound, agree as follows:

1.  Incorporation of Recitals

The Recitals are incorporated into this Agreement as if fully rewritten herein.

2.  Definitions.

For the purposes of this Agreement, the following terms have the meanings specified or
referred to in this Article 2.

	 	2.1  	“Acceleration Amount” is defined in Section 5.1 of this Agreement.
	 
	 	2.2  	“Agreement” means this Service Agreement.
	 
	 	2.3  	“Block” is defined in the prefatory paragraph of this Agreement.
	 
	 	2.4  	“Change of Control” means:

     2.4.1 Corporation shall have merged into or consolidated with another entity, or
merged another entity into Corporation, on a basis whereby less than 50% of the total voting
power of the surviving entity is represented by shares held by shareholders of Corporation
on the Effective Date; or

     2.4.2 Corporation shall have sold all or substantially all of its assets to another
entity or person.

        2.5  “Code” means the Internal Revenue Code of 1986, as amended, as well as relevant Treasury
Regulations and applicable rulings of the Internal Revenue Service, as they may exist from time to
time.

-1-

 

     2.6  “Corporation” is defined in the prefatory paragraph of this Agreement.

     2.7  “Corporation Agreement” means the Close Corporation Operating Agreement dated December 12,
1988, by and among Corporation and its shareholders, as it may be amended from time to time.

     2.8  “Effective Date” means December 17, 2004.

     2.9  “Equalization Amount” is defined in Section 5.3 of this Agreement.

     2.10  “Executive Committee” means the committee established by the Corporation Agreement.

     2.11  “Executive Committee Benefits” has the meaning given it in Section 4.4.1.

     2.12  “Party” means Block or Corporation. “Parties” means Block and Corporation collectively.

     2.13  “Person” means any individual or entity.

3.  Resignations; Duties.

     3.1  Boards of Directors. As of the Effective Date, Block will resign as a director from
the boards of directors of the following corporations: Buckeye Cablevision, Inc., Buckeye
TeleSystem, Inc., Cars Holding, Inc., Corporate Protection Services, Inc., Erie County Cablevision,
Inc., Idaho Independent Television, Inc., Independence Television Company, Lima Communications
Corporation, PG Publishing Company, and The Toledo Blade Company.

     3.2  Chairmanships. As of the Effective Date, Block will resign as the chairman of the
following boards and committees:

	 	 	 
	3.2.1

	 	Corporation’s board of directors;
	 
	 	 
	3.2.2

	 	PG Publishing Company;
	 
	 	 
	3.2.3

	 	The Toledo Blade Company; and
	 
	 	 
	3.2.4

	 	the Executive Committee.

     3.3  Duties. Block will continue to serve as a member of the board of directors of
Corporation, the Executive Committee, and as president and a member of the board of directors of
the Blade Foundation until such time as he resigns, becomes incapacitated, or dies. Block shall
devote such time and attention to the business of Corporation and the Blade Foundation as is
required by his continued service on the Executive Committee, Corporation’s board of directors, and
the Blade Foundation.

4.  Compensation; Benefits.

     4.1  Executive Committee Compensation.

-2-

 

     4.1.1 So long as Block is a member of the Executive Committee or the board of directors
of Corporation, he will be paid annual compensation equal to seventy percent (70%) of the
greater of:

	 	(a)  	the then-current base salary of Allan J. Block
or, if he is no longer employed by Corporation, of John R. Block or
	 
	 	(b)  	the average of the annual base salaries paid to
Block during the five (5) calendar years commencing January 1, 2000,
and ending with the Effective Date.

     4.1.2 Block’s compensation will be payable in equal periodic installments according to
Corporation’s customary payroll practices, but no less frequently than monthly.

     4.1.3 Corporation will timely pay Block all bonuses earned by him on or prior to the
Effective Date pursuant to the bonus plan of the Executive Committee. After the Effective
Date, Block will no longer be eligible to participate in the Executive Committee’s bonus
plan.

     4.2  Post Executive Committee Compensation. If Block is not a member of the Executive
Committee and is not a member of Corporation’s board of directors, then he will be paid
compensation in an amount computed pursuant to Section 4.1.1(b) until his death, at which time such
payments will cease.

     4.3  Automobile. On or before the Effective Date, Block will return the automobile provided to
him by Corporation. Upon Block’s request, Corporation will assign its right to purchase the
automobile, if any, to Block.

     4.4 Benefits.

     4.4.1 Corporation will, at its expense, provide Block and his spouse the same life
insurance, 401(k), hospitalization, major medical, and other benefit plans of Corporation
that may be in effect from time to time for members of the Executive Committee
(collectively, the “Executive Committee Benefits”). The Executive Committee Benefits will
be provided to Block and his spouse for the duration of their lives. If the Executive
Committee ceases to exist because the Corporation Agreement has terminated, then Block and
his spouse shall continue to receive the Executive Committee Benefits in effect at the time
of the termination of the Corporation Agreement, without reduction, for the duration of
their lives.

     4.4.2 Corporation will, at its expense, provide Block and his spouse with tax
preparation assistance from its certified public accountants for the duration of their
lives.

     4.4.3 Corporation will reimburse Block his membership dues at the Toledo Club for a
period of twelve (12) months after the Effective Date.

     4.5  Newspapers. Each of The Blade and the Pittsburgh Post-Gazette will add “William Block,
Jr., co-publisher, 1990-2001” to its editorial page on the same line as it presently states
“William Block, co-publisher, 1942-1989.” The additional language will commence January 1, 2005,
and appear daily for so long as Corporation owns such newspapers.

-3-

 

5.  Change of Control.

     5.1  Upon a Change of Control, the compensation to be provided to Block pursuant to
Sections 4.2 and 4.4 shall be accelerated. The lump sum payment amount (“Acceleration Amount”)
will be determined as set forth in this Article 5 and paid to Block upon the effective date of the
Change of Control.

     5.2  The Acceleration Amount is equal to the net present value of the payments to be provided
to Block and/or his spouse pursuant to Sections 4.2 and 4.4. The net present value shall be
determined by applying a discount rate equal to one hundred twenty percent (120%) of the applicable
Federal rate (determined under Section 1274(d) of the Code) on the Effective Date. The values of
the payment for the duration of Block’s life pursuant to Section 4.2 and the payments for the joint
lives of Block and his spouse pursuant to Section 4.4 shall be determined under Section 7520 of the
Code on the effective date of the Change of Control.

     5.3  If any portion of the Acceleration Amount paid to Block is deemed an “excess parachute
payment” under Section 280G of the Code thereby triggering an excise tax under Section 4999 of the
Code, then Corporation shall increase the Acceleration Amount by the amount of any such excise tax
owed by Block due to his receipt of the Acceleration Amount (“Equalization Amount”) and the
Equalization Amount itself, thereby restoring Block to the same financial position after payment of
the excise tax that he would have been in had the golden parachute rules not applied.

6.  Facilities and Expenses.

Corporation will furnish Block office space, equipment, supplies, and such other facilities
and personnel as Corporation deems necessary or appropriate for the performance of Block’s duties
under this Agreement. Corporation will pay on behalf of Block (or reimburse Block for) reasonable
expenses incurred by Block at the request of, or on behalf of, Corporation in the performance of
Block’s duties pursuant to this Agreement, and in accordance with Corporation’s policies, including
reasonable expenses incurred by Block in attending business meetings, in appropriate business
entertainment activities, and for promotional expenses. Block must file expense reports with
respect to such expenses in accordance with Corporation’s policies and substantiate all expenses in
accordance with Internal Revenue Service guidelines.

7.  Miscellaneous.

     7.1  Binding Effect. This Agreement shall inure to the benefit of, and shall be binding
upon, the Parties hereto and their respective successors, assigns, heirs, and legal
representatives, including any entity with which Corporation may merge or consolidate. The duties
and covenants of Block under this Agreement, being personal, may not be delegated.

     7.2  Notices. Any notice, demand, consent, election, offer, approval, request, or other
communication (collectively, a “Notice”) required or permitted under this Agreement must be in
writing and shall be deemed given to the recipient when (a) delivered to the appropriate address by
hand or by nationally recognized overnight courier service (costs prepaid); (b) sent by

-4-

 

facsimile or e-mail with confirmation of transmission by the transmitting equipment; or (c)
received or rejected by the addressee, if sent by certified mail, return receipt requested. A
Notice to Corporation must be addressed to Corporation’s principal office. Any Party may
designate, by Notice to the other, substitute addresses or addressees for Notices; and, thereafter,
Notices are to be directed to those substitute addresses or addressees.

     7.3  Entire Agreement. This Agreement contains the entire agreement between the Parties with
respect to the subject matter hereof and supersedes all prior agreements and understandings, oral
or written, between the Parties hereto with respect to the subject matter hereof. This Agreement
may not be amended orally, but only by an agreement in writing signed by Block and the President.

     7.4  Applicable Law. This Agreement will be governed by the laws of the State of Ohio, without
regard to conflicts of laws principles.

     7.5  Arbitration. Any dispute, controversy, or claim in connection with, relating to, or
arising out of this Agreement, or any breach or alleged breach hereof, shall, at the request of any
party, be submitted to and settled by arbitration in the City of Toledo, State of Ohio, pursuant to
the rules then in effect of the American Arbitration Association. Any award rendered pursuant to
such arbitration shall be final and conclusive upon the parties and judgment thereon may be
rendered in any state or federal court located in Lucas County, Ohio having jurisdiction thereof.
Expenses of the arbitration shall be borne equally by the parties to the arbitration, unless
otherwise provided by the arbitrators.

     7.6  Captions. The headings of Articles and Sections in this Agreement are provided for
convenience only and will not affect its construction or interpretation. All words used in this
Agreement will be construed to be of such gender or number as the circumstances require. Unless
otherwise expressly provided, the word “including” does not limit the preceding words or terms.

     7.7  Severability of Provisions. If any provision of this Agreement is held invalid or
unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will
remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only
in part or degree will remain in full force and effect to the extent not held invalid or
unenforceable.

     7.8  Counterpart Execution. This Agreement may be executed in one or more counterparts, each
of which will be deemed to be an original copy of this Agreement and all of which, when taken
together, will be deemed to constitute one and the same agreement.

-5-

 

IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement as of the date above
first written above.

Block Communications, Inc.

	 	 	 	 	 	 	 	 	 
	By:

Title:	 	
/s/ Allan Block

Managing Director

	 	
	 	/s/ William K. Block, Jr.

William K. Block, Jr.
	 	

-6-

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