Document:

Exhibit 10.3

FIRST AMENDMENT TO CREDIT AGREEMENT

This FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of July 7, 2015 (this "First Amendment"), is by and among (a) MARSHALL BROADCASTING GROUP, INC. (the "Borrower"), a Texas corporation, (b) each of the Revolving Credit Lenders and Term A Lenders that is a party hereto, and (c) BANK OF AMERICA, N.A., as administrative agent (the "Administrative Agent") for itself and the other Lenders party to that certain Credit Agreement, dated December 1, 2014 (as amended, supplemented, and restated or otherwise modified and in effect from time to time, prior to the date hereof, the "Existing Credit Agreement", and as amended hereby, the "Credit Agreement"), by and among the Borrower, the lending institutions party thereto (the "Lenders") and the Administrative Agent.  Capitalized terms used herein without definition shall have the meanings assigned to such terms in the Credit Agreement.

WHEREAS, the Borrower has proposed to amend the Existing Credit Agreement to permit the Digital Contribution and Reorganization (as defined in the Nexstar Credit Agreement);

WHEREAS, Section 10.01 of the Existing Credit Agreement provides that the Loan Parties may amend the Existing Credit Agreement with the consent of the Majority Lenders;

WHEREAS, in connection with the First Amendment, (1) Merrill Lynch, Pierce, Fenner & Smith Incorporated is Arranger and Bookrunner and (2) Bank of America, N.A. is Administrative Agent;

WHEREAS, on the date hereof, the parties hereto desire to enter into this First Amendment to make certain amendments to the Existing Credit Agreement;

NOW THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

§1.            Amendment to Defined Terms.  Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Credit Agreement.

§2.            Amendment of the Existing Credit Agreement.  Pursuant to Section 10.01 of the Credit Agreement, and subject to the satisfaction of the conditions set forth in Section 3 hereof, on and as of the First Amendment Effective Date:

(a)            Effective as of First Amendment Effective Date, the Existing Credit Agreement is hereby amended in its entirety to read as set forth in the attached Annex I.

(b)            The Schedules to the Existing Credit Agreement are hereby amended by replacing Schedule 1.01(d) with a new Schedule 1.01(d) in the form as set forth in Annex II hereto.

(c)            The Schedules to the Existing Credit Agreement are hereby amended by replacing Schedule 1.01(e) with a new Schedule 1.01(e) in the form as set forth in Annex II hereto.

(d)            Section 5.08 of Exhibit J to the Existing Credit Agreement is hereby amended in its entirety and replaced with the following:

5.08            Environmental Compliance.

(a)            With respect to properties currently owned or operated by any Nexstar Entity or any of their Restricted Subsidiaries, or to the knowledge of the Borrower, Digital LLC and the Parent Guarantors, any property formerly owned or operated by any Nexstar Entity or any of its Restricted Subsidiaries, no such property is listed or proposed for listing on the NPL or on the CERCLIS or any analogous foreign, state or local list;

(b)            to the knowledge of the Borrower, Digital LLC and the Parent Guarantors, (A) there are no and never have been any underground or above‐ground storage tanks or any surface impoundments, septic tanks, pits, sumps or lagoons in which Hazardous Materials are being or have been treated, stored or disposed on any property currently owned or operated by any Nexstar Entity or any of its Restricted Subsidiaries or on any property formerly owned or operated by any Nexstar Entity or any of its Restricted Subsidiaries and (B) there is no asbestos or asbestos‐containing material on any property currently owned or operated by any Nexstar Entity or any of its Restricted Subsidiaries; and

(c)            Hazardous Materials have not been released, discharged or disposed of on any property currently or formerly owned or operated by any Nexstar Entity or any of its Restricted Subsidiaries in excess of the applicable legal limit;

in each case of (a), (b) and (c) above, other than such matters which, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

(d)(i) No Nexstar Entity is undertaking, nor has completed, either individually or together with other potentially responsible parties, any investigation or assessment or remedial or response action relating to any actual or threatened release, discharge or disposal of Hazardous Materials at any site, location or operation, either voluntarily or pursuant to the order of any Governmental Authority or the requirements of any Environmental Law and (ii) all Hazardous Materials generated, used, treated, handled or stored at, or transported to or from, any property currently or formerly owned or operated by any Nexstar Entity or any of its Restricted Subsidiaries have been disposed of in a manner not reasonably expected to result in material liability to any Nexstar Entity or any of its Restricted Subsidiaries, in each case of clauses (i) and (ii) above, other than such matters which, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

(e)            Section 5.11 of Exhibit J to the Existing Credit Agreement is hereby amended in its entirety and replaced with the following:

5.11            Subsidiaries; Equity Interests; Nexstar Entities.  As of the Sixth Amendment Effective Date, no Nexstar Entity has any Subsidiaries other than those specifically disclosed in Part (a) of Schedule 5.11, and all of the outstanding Equity Interests in each Nexstar Entity and each Restricted Subsidiary have been validly issued, are fully paid and nonassessable, and are owned by, with respect to each Nexstar Entity except the Ultimate Parent, a Nexstar Entity, in each case in the amounts specified on Part (a) of Schedule 5.11 free and clear of all Liens except (i) those created under the Security Documents, (ii) those created under the indenture documentation for the Senior Second Lien Notes and (iii) any nonconsensual Lien that is permitted under Section 7.01.  As of the Sixth Amendment Effective Date, Part (b) of Schedule 5.11 is a complete and accurate list of all Nexstar Entities and their Subsidiaries, showing as of the Sixth Amendment Effective Date (as to each Nexstar Entity) the jurisdiction of its incorporation, the address of its principal place of business and its U.S. taxpayer identification number.

(f)            Section 5.17 of Exhibit J to the Existing Credit Agreement is hereby amended in its entirety and replaced with the following:

5.17            Use of Proceeds.  The proceeds of the Revolving Credit Loans shall be used to finance general corporate and working capital purposes of the Borrower, any of its Restricted Subsidiaries, Digital LLC, any of Digital LLC's Restricted Subsidiaries and to the extent permitted by the terms of this Agreement, (a) any of the Borrower's Subsidiaries that are not Restricted Subsidiaries and (b) any of Digital LLC's Subsidiaries that are not Restricted Subsidiaries of Digital LLC (including, to the extent permitted hereunder, Investments, Sharing Arrangements, Capital Expenditures and Restricted Payments) and the funding of any original issue discount in accordance with the terms set forth herein; provided that in no event shall the proceeds of the Credit Extensions be used in contravention of any Law or of any Loan Document.  The proceeds of the Term A Loans shall be used in a manner consistent with the uses set forth in Section 6.12(c).  The proceeds of the Term B-2 Loans shall be used to finance general corporate and working capital purposes.

(g)            Section 5.20 of Exhibit J to the Existing Credit Agreement is hereby amended in its entirety and replaced with the following:

5.20            Labor Matters.  There are no strikes, walkouts, work stoppages or other material labor disputes pending or, to the knowledge of the Borrower, Digital LLC and the Parent Guarantors, threatened against any of the Nexstar Entities, except for those as would not, individually or in the aggregate for the Nexstar Entities, reasonably be expected to result in a Material Adverse Effect.

(h)            Section 5.21 of Exhibit J to the Existing Credit Agreement is hereby amended in its entirety and replaced with the following:

5.21            OFAC; Anti‐Money Laundering and Economic Sanctions Laws.

(a)            No Nexstar Entity or any of its Restricted Subsidiaries, nor, to the knowledge of senior management of the Borrower, Digital LLC or the Ultimate Parent, any respective officers or directors of any Nexstar Entity, (i) is currently the subject of any Sanctions, (ii) is located, organized or residing in any Designated Jurisdiction, or (iii) is or has been (within the previous five years) engaged in any transaction with any Person who is now or was then the subject of Sanctions or who is located, organized or residing in any Designated Jurisdiction.  No Loan, nor the proceeds from any Loan, has been used, directly or indirectly, to lend, contribute, provide or has otherwise made available to fund any activity or business in any Designated Jurisdiction or to fund any activity or business of any Person located, organized or residing in any Designated Jurisdiction or who is the subject of any Sanctions, or in any other manner that will result in any violation by any Person (including any Lender, any Arranger, any Agent, any L/C Issuer or the Nexstar Swing Line Lender) of Sanctions.

(b)            No Nexstar Entity, none of its Restricted Subsidiaries and, to the knowledge of senior management of the Borrower, Digital LLC or the Ultimate Parent, none of the respective officers or directors of any Nexstar Entity or such Restricted Subsidiary (i) has violated or is in violation of any applicable Anti‐Money Laundering Law or (ii) has engaged or engages in any transaction, investment, undertaking or activity that conceals the identity, source or destination of the proceeds from any category of offenses designated in any applicable Law, regulation or other binding measure implementing the "Forty Recommendations" and "Nine Special Recommendations" published by the Organization for Economic Cooperation and Development's Financial Action Task Force on Money Laundering.

(c)            No Nexstar Entity, none of its Subsidiaries and, to the knowledge of senior management of the Borrower, Digital LLC, any Digital Subsidiary or the Ultimate Parent, none of the respective officers or directors of any Nexstar Entity or such Subsidiary that is acting or benefiting in any capacity in connection with the Loans is an Embargoed Person.

(d)            Except as otherwise authorized by OFAC, no Nexstar Entity, none of its Subsidiaries and, to the knowledge of senior management of the Borrower, Digital LLC, any Digital Subsidiary or the Ultimate Parent, none of the respective officers, directors, brokers or agents of any such Person that is acting or benefiting in any capacity in connection with the Loans conducts any business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any Embargoed Person.

(i)            Section 5.22 of Exhibit J to the Existing Credit Agreement is hereby amended in its entirety and replaced with the following:

5.22            FCC Licenses

(a)            Each Nexstar Entity, and each Restricted Subsidiary of each such entity, holds such validly issued Broadcast Licenses as are necessary to operate the Stations as they are currently operated, and each such Broadcast License is in full force and effect (it being recognized that, as indicated on Schedules 5.22 as of the Closing Date, certain Stations may, from time to time, operate pursuant to Special Temporary Authority granted by the FCC).  To the Borrower's knowledge, each Shared Services Party holds such validly issued Broadcast Licenses as are necessary to operate the Shared Services Party Stations as they are currently operated.  As of the Closing Date, the Stations, together with Broadcast Licenses, are identified on Schedule 5.22, and each such Broadcast License has the expiration date set forth on Schedule 5.22.  Digital LLC does not, nor does any Digital Subsidiary, hold any Broadcast License or any other FCC License.

(b)            No Nexstar Entity has knowledge of any condition imposed by the FCC as part of any Broadcast License which is neither set forth on the face thereof as issued by the FCC nor contained in the Communications Laws applicable generally to stations of the type, nature, class or location of the Station or Shared Services Party Station in question.  Except as otherwise set forth on Schedules 5.22 and 5.22(c) as of the Closing Date, each Station, and, to the Borrower's knowledge, each Shared Services Party Station has been and is being operated in all material respects in accordance with the terms and conditions of the Broadcast Licenses applicable to it and the Communications Laws.

(c)            Except as otherwise set forth on Schedule 5.22(c) as of the Closing Date, no proceedings are pending or, to the knowledge of any Nexstar Entity or any Restricted Subsidiary are threatened which may result in the revocation, modification, non‐renewal or suspension of any applicable Broadcast License of such Nexstar Entity, the denial of any pending applications, the issuance of any cease and desist order or the imposition of any fines, forfeitures or other administrative actions by the FCC with respect to any Station, or, to the Borrower's knowledge, any Shared Services Party Station or its operation, other than (i) any proceedings which, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect and (ii) proceedings affecting the television broadcasting industry in general.

(d)            All reports, applications and other documents required to be filed by the Nexstar Entities and their Restricted Subsidiaries with the FCC with respect to the Stations, and, to the Borrower's knowledge, Shared Services Party Stations have been timely filed, and all such reports, applications and documents are true, correct and complete in all respects, except where the failure to make such timely filing or any inaccuracy therein could not reasonably be expected to have a Material Adverse Effect, and except as otherwise set forth on Schedule 5.22(c) as of the Closing Date, no Nexstar Entity nor any Restricted Subsidiary of a Nexstar Entity has knowledge of any matters which could reasonably be expected to result in the suspension or revocation of or the refusal to renew any Broadcast License or the imposition on any Nexstar Entity or any Restricted Subsidiary of any material fines or forfeitures by the FCC, or which could reasonably be expected to result in the revocation, rescission, reversal or material adverse modification of the authorization of any Broadcast License.

(e)            There are no unsatisfied or otherwise outstanding citations issued by the FCC with respect to any Station or its operations, or, to the Borrower's knowledge, any Shared Services Party Station or its operations.

(f)            Non‐U.S. voting interests held, directly or indirectly, are less than 25 percent of the Ultimate Parent's total voting interests, and the total equity of the Ultimate Parent held by non‐U.S. citizens, directly or indirectly, is less than 25 percent of the Ultimate Parent's total equity.

§3.            Conditions to Effectiveness.  This First Amendment shall become effective as of the date set forth above upon the satisfaction of the following conditions (such effective date, the "First Amendment Effective Date"):

(a)            there shall exist no Default both immediately before and after giving effect to this First Amendment;

(b)            the Administrative Agent shall have received a counterpart signature page to this First Amendment, duly executed and delivered by the Borrower, the Administrative Agent, each Guarantor, the owners of the Equity Interests of the Marshall Borrower (the "Pledgors"), and the Majority Lenders;

(c)            the Administrative Agent shall have received, on behalf of itself, the Collateral Agent, the Lenders, the Nexstar Swing Line Lender and the Nexstar L/C Issuers, (i) an opinion of Kirkland & Ellis LLP, counsel for the Nexstar Borrower, the other Nexstar Entities, the Mission Entities and the Marshall Entities, addressed to the Nexstar L/C Issuers, the Administrative Agent, the Collateral Agent and the Lenders and permitted to be relied upon by any persons who become Lenders, in each case in form and substance reasonably satisfactory to the Administrative Agent and the Lenders and customary for senior secured credit facilities in transactions of this kind (including a customary no conflicts opinion with respect to the Nexstar Senior 67⁄8% Notes due 2020 and Nexstar Senior 67⁄8% Notes due 2020 Indenture Documentation) and (ii) an opinion of Wiley Rein, LLP, special FCC counsel for the Nexstar Entities, the Mission Entities and the Marshall Entities, addressed to the Nexstar L/C Issuers, the Administrative Agent, the Collateral Agent, the Nexstar Swing Line Lender and the Lenders and capable of being relied upon by any persons who become Lenders, in form and substance reasonably satisfactory to the Administrative Agent;

(d)            the Administrative Agent shall have received (i) certificates of good standing from the applicable secretary of state of organization of each Loan Party, certificates of resolutions or other action, incumbency certificates and/or other certificates of a Responsible Officers of each Loan Party as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this First Amendment, and (ii) a certificate of a Responsible Officer of the Borrower certifying to and attaching the resolutions adopted by the Borrower approving or consenting to the First Amendment;

(e)            the representations and warranties set forth in this First Amendment shall be true and correct in all material respects as of the date of this First Amendment (except (1) to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date and (2) that any representation or warranty that is qualified by "materiality" or "Material Adverse Effect" shall be true and correct in all respects);

(f)            the Nexstar Credit Agreement shall be amended on a substantially similar basis (but only as applicable) for the Nexstar Borrower, as the terms set forth in this First Amendment;

(g)            the Mission Credit Agreement shall be amended on a substantially similar basis (but only as applicable) for the Mission Borrower, as the terms set forth in this First Amendment;

(h)            the Administrative Agent shall have received (i) an amended and restated Marshall Guaranty of Nexstar Obligations and (ii) such other amendments and restatements of the Security Documents conforming to the provisions of this First Amendment, as the Collateral Agent and/or the Administrative Agent may require, in each case, duly executed and delivered by each party thereto and effective as of the date thereof; and

(i)            the Borrower shall have paid all reasonable invoiced fees and expenses of the Administrative Agent's counsel, Winstead PC, and the Administrative Agent shall have received evidence of payment of all other reasonable and documented out‐of‐pocket costs and expenses (including, without limitation, legal fees and expenses) that have been invoiced prior to the effective date of this First Amendment.

§4.            Consent regarding Changes to Loan Documents.  The Majority Lenders hereby consent to an amendment and/or amendment and restatement of any Loan Document (other than the Credit Agreement) to conform to the provisions of this First Amendment and the Existing Credit Agreement, as amended hereby.  The Majority Lenders hereby authorize the Collateral Agent and the Administrative Agent, on behalf of the Lenders, to execute and deliver such amendment and/or amendment and restatement to each such Loan Document.

§5.            Affirmation of Marshall Entities.  Each of the Marshall Entities hereby affirms its Obligations under the Credit Agreement, each of the other Loan Documents to which each is a party and each of the Nexstar Loan Documents to which each is a party, and each hereby affirms its absolute and unconditional promise to pay to the Lenders the Loans and all other amounts due (i) under the Credit Agreement (as amended hereby) and the other Loan Documents, and (ii) under the Nexstar Credit Agreement (as amended) and the Nexstar Loan Documents.

§6.            Representations and Warranties.  Each of the Marshall Entities represents and warrants to the Administrative Agent and the Lenders, immediately after giving effect to this First Amendment, as follows:

(a)            Representations and Warranties.  Each of the representations and warranties contained in Article V of the Credit Agreement are true and correct in all material respects on and as of the date hereof (giving effect to this First Amendment), except to the extent such representations and warranties are already qualified by materiality, in which case, such representations and warranties are true and correct in all respects and to the extent that such representations and warranties relate specifically to a prior date.

(b)            Enforceability.  The execution and delivery by the Marshall Entities of this First Amendment, and the performance by the Marshall Entities of this First Amendment and the Credit Agreement, as amended hereby, and each of the Loan Documents (and amendments, restatements and substitutions therefore in connection with this First Amendment) are within the corporate authority of each of the Marshall Entities and have been duly authorized by all necessary corporate proceedings.  This First Amendment and the Credit Agreement, as amended, and each of the Loan Documents (and amendments, restatements and substitutions therefore in connection with this First Amendment) hereby, constitute valid and legally binding obligations of each of the Marshall Entities, enforceable against it in accordance with their terms, except as enforceability may be limited by Debtor Relief Laws and by general principles of equity.

(c)            No Default.  No Default has occurred and is continuing, and no Default will result from the execution, delivery and performance by the Marshall Entities of this First Amendment, the other Loan Documents or from the consummation of the transactions contemplated herein.

§7.            No Other Amendments, etc.

(a)            Except as expressly provided in this First Amendment, (a) all of the terms and conditions of the Credit Agreement and the other Loan Documents (as amended and restated in connection herewith, if applicable) remain unchanged, and (b) all of the terms and conditions of the Credit Agreement, as amended hereby, and of the other Loan Documents (as amended and restated in connection herewith, if applicable) are hereby ratified and confirmed and remain in full force and effect.  Nothing herein shall be construed to be an amendment, consent or a waiver of any requirements of any Marshall Entity or of any other Person under the Credit Agreement or any of the other Loan Documents except as expressly set forth herein or pursuant to a written agreement executed in connection herewith.  Nothing in this First Amendment shall be construed to imply any willingness on the part of the Administrative Agent or any Lender to grant any similar or future amendment, consent or waiver of any of the terms and conditions of the Credit Agreement or the other Loan Documents.

(b)            Without limiting the foregoing, each of the Loan Parties to the Guaranties and the Security Documents hereby (i) acknowledges and agrees that all of its obligations under the Marshall Guaranty Agreements, the Marshall Guaranty of Nexstar Obligations, and the Security Documents are reaffirmed and remain in full force and effect on a continuous basis, (ii) reaffirms each Lien granted by each Loan Party to the Collateral Agent for the benefit of the Secured Parties and reaffirms the guaranties made pursuant to the Marshall Guaranty Agreement and the Marshall Guaranty of Nexstar Obligations, (iii) acknowledges and agrees that the grants of security interests by and the guaranties of the Loan Parties contained in the Marshall Guaranty Agreements, the Marshall Guaranty of Nexstar Obligations and the Security Documents are, and shall remain, in full force and effect after giving effect to the First Amendment, and (iv) agrees that all Obligations are Guaranteed Obligations (as defined in the Guaranties).

(c)            This First Amendment is a Loan Document under the terms of the Credit Agreement.  On and after the First Amendment Effective Date, each reference in the Existing Credit Agreement to "this Agreement," "hereunder," "hereof" or words of like import referring to the Existing Credit Agreement shall mean and be a reference to the Existing Credit Agreement, as amended by this First Amendment (ie. the Credit Agreement).

§8.            Execution in Counterparts.  This First Amendment may be executed in any number of counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, but all of which together shall constitute one instrument.  In proving this First Amendment, it shall not be necessary to produce or account for more than one such counterpart signed by the party against whom enforcement is sought.

§9.            Interpretation.  This First Amendment, the Credit Agreement and the other Loan Documents are the result of negotiation among, and have been reviewed by counsel to, among others, the Administrative Agent and the Borrower and are the product of discussions and negotiations among all parties.  Accordingly, this First Amendment, Credit Agreement and the other Loan Documents are not intended to be construed against the Administrative Agent or any of the Lenders merely on account of the Administrative Agent's or any Lender's involvement in the preparation of such documents.

§10.            Governing Law.  This First Amendment shall be governed by, and construed in accordance with, the law of the State of New York applicable to agreements made and to be performed entirely within such state.

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

[Remainder of Page Intentionally Left Blank]

 

 

IN WITNESS WHEREOF, the undersigned have duly executed this First Amendment as of the date first set forth above.

 

 

		The Borrower:
	

	

	

	

	MARSHALL BROADCASTING GROUP, INC.
	

	

	

	

	By:	
/s/ Pluria W. Marshall, Jr.

	

	
Name:

	Pluria W. Marshall, Jr.
	

	
Title:

	
President and Secretary

[Signature Page to First Amendment to Credit Agreement]

 

 

		The Administrative Agent:
	

	

	

	

	
BANK OF AMERICA, N.A.,

as Administrative Agent

	

	

	

	

	By:	
/s/ Don B. Pinzon

	

	
Name:

	Don B. Pinzon
	

	
Title:

	
Vice President

 

 

[Signature Page to First Amendment to Credit Agreement]

  

RATIFICATION OF GUARANTORS AND PLEDGORS

Each of the undersigned Guarantors and Pledgors hereby (a) acknowledges and consents to the foregoing First Amendment and the Marshall Entities' execution thereof; (b) joins the foregoing First Amendment for the purpose of consenting to and being bound by the provisions thereof, (c) ratifies and confirms all of their respective obligations and liabilities under the Loan Documents to which any of them is a party and ratifies and confirms that such obligations and liabilities extend to and continue in effect with respect to, and continue to guarantee and secure, as applicable, the Obligations of the Borrower under the Credit Agreement and (d) acknowledges and confirms that the liens and security interests granted by such Guarantor or Pledgor, as applicable, pursuant to the Loan Documents are and continue to be valid and perfected first priority liens and security interests (subject only to Permitted Liens (as defined in the Security Agreement)) that secure all of the Obligations on and after the date hereof.

 

 

		The Gurantors:
	

	

	

	

	
NEXSTAR BROADCASTING, INC.

	

	

	

	

	By:	
/s/ Thomas E. Carter

	

	
Name:

	Thomas E. Carter
	

	
Title:

	
Chief Financial Officer

 

		
NEXSTAR BROADCASTING GROUP, INC.

	

	

	

	

	By:	
/s/ Thomas E. Carter

	

	
Name:

	Thomas E. Carter
	

	
Title:

	
Chief Financial Officer

 

		
ENTERPRISE TECHNOLOGY LLC

	

	

	

	

	By:	
/s/ Thomas E. Carter

	

	
Name:

	Thomas E. Carter
	

	
Title:

	
Chief Financial Officer

 

		
LAKANA LLC

	 		
	 	By:	Enterprise Technology LLC
	 	Its:	Sole Member
	

	

	

	

	By:	
/s/ Thomas E. Carter

	

	
Name:

	Thomas E. Carter
	

	
Title:

	
Chief Financial Officer

 

		
YASHI, INC.

	

	

	

	

	By:	
/s/ Thomas E. Carter

	

	
Name:

	Thomas E. Carter
	

	
Title:

	
Chief Financial Officer

 

[Signature Page to First Amendment to Credit Agreement]

 

 

		
The Pledgors:

 

		
/s/ Pluria W. Marshall, Jr.

	

	
Pluria W. Marshall, Jr.

 

[Signature Page to First Amendment to Credit Agreement]a51140550ex10_1.htm

Exhibit 10.1

 

VOTING AGREEMENT

 

VOTING AGREEMENT, dated as of July 13, 2015 (this “Agreement”), by and among Family Acquisition Holdings, Inc., a Delaware corporation (“Parent”), Books-A-Million, Inc., a Delaware corporation (the “Company”) and each of the persons listed on Schedule 1 hereto (each a “Stockholder” and collectively the “Stockholders”).

 

RECITALS

 

WHEREAS, concurrently with the execution of this Agreement, Parent, Family Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of Parent (“Sub”), and the Company are entering into an Agreement and Plan of Merger, dated as of the date of this Agreement (as it may be amended from time to time, the “Merger Agreement”), pursuant to which, among other things, Sub will merge with and into the Company (the “Merger”);

 

WHEREAS, as of the date of this Agreement, each Stockholder is the Beneficial Owner (as hereinafter defined) of the number of outstanding shares of Common Stock (as hereinafter defined) set forth opposite such Stockholder’s name on Schedule 1 hereto; and

 

WHEREAS, concurrently with the execution of the Merger Agreement, and as a condition and inducement to the willingness of the Company and Parent to enter into the Merger Agreement, the Company and Parent have required that each Stockholder agree, and each Stockholder has agreed, upon the terms and subject to the conditions set forth herein, to enter into this Agreement and abide by the covenants and obligations set forth herein.

 

NOW, THEREFORE, the parties hereto agree as follows:

 

ARTICLE I.

 

GENERAL

 

Section 1.1 Defined Terms.  The following terms, as used in this Agreement, shall have the meanings set forth below.  Terms used but not otherwise defined herein shall have the meanings ascribed thereto in the Merger Agreement.

 

(a) “Additional Shares” means the Common Stock or other voting capital stock of the Company that the Stockholder acquires Beneficial Ownership of after the date of this Agreement.

 

(b) “Beneficial Ownership” by a person of any security includes ownership by any person who, directly or indirectly, through any Contract, arrangement, understanding, relationship or otherwise (whether or not in writing), has or shares: (i) voting power which includes the power to vote, or to direct the voting of, such security; and/or (ii) investment power which includes the power to dispose, or to direct the disposition, of such security; and shall otherwise be interpreted in accordance with the term “beneficial ownership” as defined in Rule 13d-3 adopted by the SEC under the Exchange Act.  Without duplicative counting of the same securities by the same holder, securities Beneficially Owned by a person will include securities Beneficially Owned by all Affiliates of such person and all other persons with whom such person would constitute a “group” within the meaning of Section 13(d) of the Exchange Act.  The terms “Beneficially Own,” “Beneficially Owned” and “Beneficial Owner” shall have correlative meanings.

 

  

  

  

 

(c) “Common Stock” means the shares of common stock, par value $0.01 per share, of the Company, and will also include for purposes of this Agreement all shares or other voting securities into which shares of Common Stock or such other shares or voting securities may be reclassified, sub-divided, consolidated or converted and any rights and benefits arising therefrom, including any dividends or distributions of securities which may be declared in respect of the shares of common stock and entitled to vote in respect of the matters contemplated by Article II.

 

(d) “Consent” means any approval, consent, ratification, permission, waiver, authorization, notice to or declaration or filing.

 

(e)  “Covered Shares” means the Existing Shares and any Additional Shares.

 

(f) “Existing Shares” means the shares of Common Stock Beneficially Owned by the Stockholder on the date hereof.

 

(g)  “Permitted Transfer” means a Transfer (i) pursuant to a Rollover Agreement or (ii) upon the death of an individual Stockholder, to any heir, legatees, beneficiaries and/or devisees of such Stockholder; provided that any such Transfer shall be permitted only if, as a precondition to such Transfer, the Transferee agrees in a writing, reasonably satisfactory in form and substance to the Independent Committee, to assume all of such transferring Stockholder’s obligations hereunder in respect of the securities subject to such Transfer, and to be bound by, and comply with, the terms of this Agreement with respect to the Covered Shares subject to such Transfer, to the same extent as such transferring Stockholder is bound hereunder.

 

(h) “Transfer” means, directly or indirectly, to sell, transfer, offer, exchange, assign, pledge, encumber, hypothecate or otherwise dispose of (by merger, by tendering into any tender or exchange offer, by testamentary disposition, by operation of law or otherwise), either voluntarily or involuntarily, or to enter into any Contract, option or other agreement with respect to any sale, transfer, offer, exchange, assignment, pledge, encumbrance, hypothecation or other disposition.

 

ARTICLE II.

 

VOTING

 

Section 2.1 Agreement to Vote.  During the period commencing on the date hereof and continuing until the termination of this Agreement in accordance with its terms, each Stockholder hereby agrees irrevocably and unconditionally that at the Company Meeting and at any other meeting of the stockholders of the Company, however called, including any adjournment, recess or postponement thereof, in connection with any written consent of the stockholders of the Company and in any other circumstance upon which a vote, consent or other approval of all or some of the stockholders of the Company is sought, it shall, and shall cause any holder of record of its Covered Shares to, in each case to the extent that the Covered Shares are entitled to vote thereon or consent thereto:

 

  

  

  

 

(a) appear at each such meeting or otherwise cause all of its Covered Shares to be counted as present thereat for purposes of calculating a quorum and respond to each request by the Company for written consent, if any; and

 

(b) vote (or cause to be voted), in person or by proxy, or deliver (or cause to be delivered) a written consent covering, all of its Covered Shares (i) in favor of the approval and adoption of the Merger, the Merger Agreement and the other transactions contemplated by the Merger Agreement, (ii) in favor of any related proposal necessary to consummate the Merger and the transactions contemplated by the Merger Agreement, (iii) against any action, proposal, transaction or agreement that could reasonably be expected to (A) result in a breach of any representation, warranty, covenant or other obligation or agreement of the Company contained in the Merger Agreement or of such Stockholder contained in this Agreement, or (B) impede, interfere with, delay, discourage, adversely affect or inhibit the timely consummation of the Merger or change in any manner the voting rights of any class of shares of the Company (including any amendments to the Certificate of Incorporation or the Bylaws), and (iv) against any Acquisition Proposal.

 

Section 2.2 Grant of Proxy.  Each Stockholder hereby irrevocably grants a proxy to, and appoints, each of the members of the Special Committee, individually, as his, her or its proxies and attorneys-in-fact, with full power of substitution and resubstitution, for and in such Stockholder’s name, place and stead, to vote, act by written consent or execute and deliver proxies to vote or grant a written consent during the term of this Agreement with respect to the Covered Shares in accordance with Section 2.1 hereof.  This proxy and power of attorney is given in connection with, and in consideration of, the execution of the Merger Agreement by the Company, and to secure the performance of the duties of such Stockholder under this Agreement.  Each Stockholder hereby (a) affirms that such irrevocable proxy is (i) coupled with an interest by reason of the Merger Agreement and (ii) executed and intended to be (and is) irrevocable in accordance with the provisions of Section 212 of the DGCL, (b) revokes any and all prior proxies granted by such Stockholder and its Affiliates with respect to the Covered Shares and agrees that no subsequent proxy with respect to the Covered Shares shall be given by such Stockholder or its Affiliates (and, to the extent permitted by law, if given shall be ineffective) and (c) ratifies and confirms all that the proxy holders appointed hereunder may lawfully do or cause to be done in compliance with the express terms hereof. Each Stockholder shall take such further action or execute such other instruments as may be reasonably necessary in accordance with the relevant provisions of the DGCL or any other Law to effectuate the intent of this proxy.  The power of attorney granted by such Stockholder herein is a durable power of attorney and shall survive the dissolution, bankruptcy, death or incapacity of such Stockholder.  The proxy and power of attorney granted hereunder shall terminate upon the termination of this Agreement.  No proxy holder under this Agreement (including substitute proxy holders) shall incur any liability or obligation to any Stockholder, directly or indirectly, in connection with, or as a result of, any exercise of the proxy granted herein in compliance with the express provisions of this Agreement.

 

  

  

  

 

 

ARTICLE III.

 

REPRESENTATIONS AND WARRANTIES

 

Section 3.1 Representations and Warranties of the Stockholders.  Each Stockholder represents and warrants to the Company and Parent as follows:

 

(a) Organization; Authorization; Validity of Agreement; Necessary Action.  With respect to each Stockholder that (i) is not a natural person, such Stockholder (A) is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is organized (in the case of good standing, to the extent the concept is recognized by such jurisdiction) and (B) has all corporate, limited partnership, trust or other organizational power and authority to execute and deliver this Agreement and to perform its obligations hereunder and to consummate the transactions contemplated by this Agreement and (ii) is a natural person, he or she has the legal capacity and authority to execute and deliver this Agreement and perform his or her obligations hereunder and to consummate the transactions contemplated by this Agreement.  The execution and delivery by such Stockholder of this Agreement, the performance by such Stockholder of his, her or its obligations hereunder and the consummation by such Stockholder of the transactions contemplated by this Agreement have been duly and validly authorized by such Stockholder and no other actions or proceedings on the part of such Stockholder are necessary to authorize the execution and delivery by him, her or it of this Agreement, the performance by him, her or it of its obligations hereunder or the consummation by him, her or it of the transactions contemplated by this Agreement.  This Agreement has been duly executed and delivered by such Stockholder and, assuming this Agreement constitutes a valid and binding obligation of the Company and Parent, constitutes a legal, valid and binding agreement of such Stockholder enforceable against such Stockholder in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles (regardless of whether such enforceability is considered in a proceeding in equity or at law).  There is no beneficiary or holder of a voting trust certificate or other interest of any trust of which such Stockholder is trustee whose consent is required for the execution and delivery of this Agreement (including the irrevocable proxy), the performance by such Stockholder of his, her or its obligations hereunder or the consummation by such Stockholder of the transactions contemplated by this Agreement.

 

  

  

  

 

(b) Ownership.  Such Stockholder is the Beneficial Owner of and has good and valid title to such Stockholder’s Existing Shares, free and clear of any Liens, other than any Liens pursuant to this Agreement and transfer restrictions imposed by generally applicable securities Laws.  As of the date of this Agreement, such Stockholder’s Existing Shares constitute all of the shares of Common Stock Beneficially Owned or owned of record by such Stockholder.  Such Stockholder is the sole Beneficial Owner and has and will have at all times through the Closing Date (other than pursuant to a Rollover Agreement to which such Stockholder is a party) sole Beneficial Ownership, sole voting power (including the right to control such vote as contemplated herein), sole power of disposition, sole power to issue instructions with respect to the matters set forth in Article II hereof, and sole power to agree to all of the matters set forth in this Agreement, and has not granted any proxy inconsistent with this Agreement that is still effective or entered into any voting or similar agreement, in each case with respect to any of such Stockholder’s Existing Shares and with respect to any of the Covered Shares Beneficially Owned by such Stockholder at all times through the Closing Date.

 

(c) Non-Contravention.  The execution and delivery of this Agreement by such Stockholder do not, and the performance by such Stockholder of his, her or its obligations under this Agreement and the consummation by such Stockholder of the transactions contemplated by this Agreement, will not (i) conflict with, or result in any violation or breach of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of, or result in, consent, termination, cancellation or acceleration of any obligation or loss of material benefit under, or to increased, additional, accelerated or guaranteed rights or entitlements of any person under, or result in the creation of any Lien upon his, her or its assets or properties under, any provision of (A) any charter or organizational document of such Stockholder, (B) any Contract to which such Stockholder is a party or by which any of his, her or its assets or properties is bound or (C) any Law applicable to such Stockholder or his, her or its assets or properties or (ii) require any Consent of, or registration, declaration or filing with, notice to, or permit from, any Governmental Entity (other than for the filing with the SEC of any amendments to Schedule 13D, any filings under Section 16 of the Exchange Act and any other notices or filings as may be required by applicable Law in connection with this Agreement and the transactions contemplated hereby), except, in the case of clauses (i) and (ii) above, any such items that, individually or in the aggregate, would not be expected to adversely affect (x) the enforceability of this Agreement or (y) the ability of such Stockholder to timely perform any of its obligations hereunder in any material respect.

 

(d) No Inconsistent Agreements.  Except for this Agreement and a Rollover Agreement, such Stockholder has not: (i) entered into any Contract, voting agreement, voting trust or similar agreement with respect to any of the Covered Shares, (ii) granted any proxy, consent or power of attorney with respect to any of the Covered Shares (other than as contemplated by Sections 2.1 and 2.2) or (iii) taken any action that would constitute a breach hereof, make any representation or warranty of such Stockholder set forth in this Article III untrue or incorrect in any material respect or have the effect of preventing or disabling such Stockholder from performing in any material respect any of its obligations under this Agreement.  Each Stockholder understands and acknowledges that the Company and Parent are entering into the Merger Agreement in reliance upon the Stockholders’ execution and delivery of this Agreement and the representations, warranties, covenants and other agreements of such Stockholder contained herein.

 

  

  

  

 

(e) No Action.  As of the date of this Agreement, there is no action, proceeding or investigation pending or, to the knowledge of such Stockholder, threatened against such Stockholder that (i) challenges the validity of this Agreement or (ii) could reasonably be expected to impair the ability of such Stockholder to satisfy his, her or its obligations hereunder or to consummate the transactions contemplated hereby on a timely basis.

 

ARTICLE IV.

 

OTHER COVENANTS

 

Section 4.1 Prohibition on Transfers.

 

(a) Subject to the terms of this Agreement, during the term of this Agreement, each Stockholder agrees not to Transfer, or enter into any Contract with respect to, or consent to, a Transfer of, any of the Covered Shares, Beneficial Ownership thereof or any other interest therein, other than a Permitted Transfer.  Any attempted Transfer of Covered Shares or any interest therein in violation of this Section 4.1 shall be null and void.

 

(b) This Agreement and the obligations hereunder shall attach to the Covered Shares and shall be binding upon any person to which legal or Beneficial Ownership shall pass, whether by operation of Law or otherwise, including, such Stockholder’s successors or assigns.  No Stockholder may request that the Company register the Transfer (book-entry or otherwise) of any certificate or uncertificated interest representing any or all of the Covered Shares, unless such Transfer is made in compliance with this Agreement.  Notwithstanding any Transfer of Covered Shares, the transferor shall remain liable for the performance of all of the obligations of such Stockholder under this Agreement, except for any such Transfer pursuant to the Merger Agreement.

 

Section 4.2 Additional Shares.  Each Stockholder agrees to promptly notify the Company and Parent of the number of Additional Shares acquired by such Stockholder after the date hereof.  Any such Additional Shares shall automatically become subject to the terms of this Agreement and shall constitute Covered Shares for all purposes of this Agreement.

 

Section 4.3 Stock Dividends, etc.In the event of a reclassification, recapitalization, reorganization, stock split (including a reverse stock split) or combination, exchange or readjustment of shares or other similar transaction, or if any stock dividend, subdivision or distribution (including any dividend or distribution of securities convertible into or exchangeable for shares of Common Stock) is declared, in each case affecting the Covered Shares, the terms “Existing Shares,” “Additional Shares” and “Covered Shares” shall be deemed to refer to and include such shares as well as all such stock dividends and distributions and any securities of the Company into which or for which any or all of such shares may be changed or exchanged or which are received in such transaction.

 

  

  

  

 

Section 4.4 No Solicitation.  Each Stockholder hereby agrees that during the term of this Agreement, such Stockholder shall not, and shall use reasonable best efforts to cause his, her or its Affiliates and Representatives not to, take any action that the Company is otherwise then prohibited from taking under Section 6.3 of the Merger Agreement.

 

Section 4.5 No Inconsistent Agreements.  Except for this Agreement, each Stockholder shall not: (a) Transfer, or enter into any Contract with respect to, or consent to, a Transfer of, any of the Covered Shares, Beneficial Ownership thereof or any other interest therein to any person that has made an Acquisition Proposal or an Affiliate of any such person, (b) create or permit to exist any Lien that could prevent such Stockholder from voting the Covered Shares in accordance with this Agreement or from complying in all material respects with the other obligations under this Agreement, other than any restrictions imposed by applicable Law, (c) enter into any voting or similar agreement with respect to the Covered Shares, or grant any proxy, consent or power of attorney with respect to any of the Covered Shares (other than as contemplated by Sections 2.1 and 2.2) or (d) take any action, directly or indirectly, that could reasonably be expected to (i) result in a material breach hereof, (ii) make any representation or warranty of such Stockholder set forth in Article III untrue or incorrect in any material respect or (iii) have the effect of materially delaying, preventing or disabling such Stockholder from performing any of his, her or its obligations under this Agreement.

 

Section 4.6 Further Assurances.  No Stockholder shall take any action, directly or indirectly, that would make any representation or warranty of such Stockholder contained herein untrue or incorrect in any material respect or have the effect of preventing, impeding, interfering with or adversely affecting in any material respect the performance by such Stockholder of his, her or its obligations under this Agreement.  From time to time, at the Company’s or Parent’s request and without further consideration, each Stockholder, solely in his, her or its capacity as a stockholder of the Company, shall take all further action, and execute and deliver or cause to be executed or delivered such additional documents, as may be reasonably necessary to consummate and make effective, in the most expeditious manner practicable, the transactions contemplated by this Agreement and the Merger Agreement.  In furtherance and not in limitation of the foregoing, each Stockholder (i) hereby consents to and authorizes the publication and disclosure by the Company and Parent in any press release or in the Proxy Statement (including all documents and schedules filed with the SEC) or other disclosure document required in connection with the Merger Agreement or the transactions contemplated thereby, such Stockholder’s identity and ownership of Covered Shares, the nature of such Stockholder’s commitments, arrangements and understandings pursuant to this Agreement and such other information required in connection with such publication or disclosure (“Stockholder Information”), and (ii) hereby agrees to cooperate with the Company and Parent in connection with such filings, including providing Stockholder Information requested by the Company or Parent.  As promptly as practicable, each Stockholder shall notify the Company and Parent of any required corrections with respect to any Stockholder Information supplied by such Stockholder, if and to the extent such Stockholder becomes aware that any such Stockholder Information shall have become false or misleading in any material respect.

 

  

  

  

 

Section 4.7 Appraisal Rights:  Each Stockholder hereby agrees not to exercise, and hereby waives, any dissenters’ rights or rights of appraisal under applicable Law at any time with respect to the Merger.

 

ARTICLE V.

 

MISCELLANEOUS

 

Section 5.1 Termination.  This Agreement and all obligations of the parties hereunder shall automatically terminate on the earliest to occur of (i) the Effective Time, (ii) the date of termination of the Merger Agreement in accordance with its terms, (iii) at any time upon the written agreement of the Company, Parent and the Stockholders or (iv) if any terms of the Merger Agreement are amended, modified or waived without the prior consent of the Stockholders if such amendment, modification or waiver (A) changes the amount of the Merger Consideration or purchase price, or changes the form of such consideration or (B) could reasonably be expected to adversely affect any Stockholder, in its capacity as such, in any material manner.  After the occurrence of any such applicable event this Agreement shall terminate and be of no further force; provided, that, to the extent the termination of the Merger Agreement is contested, no party shall be released from liability for violating the terms of this Agreement if a court of competent jurisdiction finally determines that the Merger Agreement had not, in fact, been validly terminated and, therefore, this Agreement had not been validly terminated, and the provisions of Article V will survive any such termination indefinitely.   For the avoidance of doubt, the termination of this Agreement shall not relieve any party of liability for any material breach prior to such termination.

 

Section 5.2 Governing Law.  This Agreement shall be governed by, and construed in accordance with, the Laws of the State of Delaware, regardless of the Laws that might otherwise govern under applicable principles of conflicts of laws thereof.

 

Section 5.3 Submission to Jurisdiction; Service.  Each of the parties hereto (a) irrevocably submits itself to the personal jurisdiction of the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware (or, if the Delaware Court of Chancery declines to accept jurisdiction over a particular matter, any state or federal court within the State of Delaware) in the event any dispute arises out of this Agreement, (b) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, (c) agrees that it will not bring any action relating to this Agreement in any court other than such court, other than actions in any court of competent jurisdiction to enforce any judgment, decree or award rendered by any such court, and (d) waives any right to trial by jury with respect to any suit, action or proceeding directly or indirectly related to or arising out of this Agreement.  Each of the parties hereto further agrees that notice as provided herein shall constitute sufficient service of process and waives any argument that such service is insufficient.  Each of the parties hereto hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a defense, counterclaim or otherwise, in any action related to or arising out of this Agreement, that (x) the action in any such court is brought in an inconvenient forum, (y) the venue of such action is improper or (z) this Agreement or the subject matter hereof may not be enforced in or by such courts.

 

  

  

  

 

Section 5.4 Notices.  All notices, requests, claims, demands and other communications under this Agreement shall be in writing and shall be deemed given (a) upon personal delivery, (b) one (1) Business Day after being sent via a nationally recognized overnight courier service, (c) three (3) Business Days after being sent, postage prepaid, by registered, certified or express mail or (d) upon receipt of electronic or other confirmation of transmission if sent via facsimile, in each case, at the addresses or facsimile numbers (or at such other address or facsimile number for a party as shall be specified by like notice) set forth below:

 

If to the Company to:

 

Books-A-Million, Inc.

402 Industrial Lane

Birmingham, AL 35211

Facsimile:

Attention:      General Counsel

 

with copies (which shall not constitute notice) to:

 

Latham & Watkins

885 Third Avenue

New York, NY 10022

Facsimile:        (212) 751-4864

Attention:       M. Adel Aslani-Far, Esq.

                         James C. Gorton, Esq.

 

If to Parent to:

 

Family Acquisition Holdings, Inc.

2801 Highway 280 South, Suite 350

Birmingham, AL 35223

Facsimile:        (205) 909-0957

Attention:       Clyde B. Anderson

 

With copies (which shall not constitute notice) to:

 

Munger Tolles & Olson LLP

355 South Grand Avenue

35th Floor

Los Angeles, CA 90071

Fax no: (213) 687-3702

Attention:       Mary Ann Todd, Esq.

                         Brett Rodda, Esq.

 

If to any Stockholder:  to such Stockholder and its counsel at their respective addresses and facsimile numbers set forth on Schedule 1 hereto.

 

Section 5.5 Amendment.  This Agreement may not be amended, modified or supplemented except by an instrument in writing signed by the Company, Parent and each Stockholder; provided that matters that only affect the right of a particular Stockholder or Stockholders shall only require an instrument in writing signed by the Company, Parent and such Stockholder or Stockholders.

 

Section 5.6 Extension; Waiver.  At any time before the termination of this Agreement, the Company, Parent and any of the Stockholders may, on behalf of himself, herself or itself, (a) extend the time for the performance of any of the obligations or other acts of another party, (b) waive any inaccuracies in the representations and warranties of another party contained in this Agreement or in any document delivered under this Agreement or (c) waive compliance with any of the covenants or conditions contained in this Agreement.  Any agreement on the part of a party to any extension or waiver shall be valid only if set forth in an instrument in writing signed by such party.  The failure of any party to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such rights, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power or privilege under this Agreement.

 

  

  

  

 

Section 5.7 Entire Agreement. This Agreement constitutes the sole and entire agreement of the Stockholders or any of their Affiliates, the Company and Parent, with respect to the subject matter contained herein (other than, in the case of the Company, Parent and Sub, the Merger Agreement), and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter (other than, in the case of the Company, Parent and Sub, the Merger Agreement).  No representation, warranty, inducement, promise, understanding or condition not set forth in this Agreement has been made or relied upon by any of the parties to this Agreement.

 

Section 5.8 No Third-Party Beneficiaries  This Agreement is for the sole benefit and may be enforced solely by the Company and Parent and nothing in this Agreement, express or implied, is intended to or shall confer upon any person (other than the Company and Parent) any legal or equitable right, benefit or remedy of any nature whatsoever.

 

Section 5.9 Severability

 

  The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions of this Agreement.  If any provision of this Agreement, or the application of that provision to any person or any circumstance, is invalid or unenforceable in any jurisdiction, then (a) the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties hereto as closely as possible to the end that the Merger is consummated to the extent possible and (b) the remainder of this Agreement and the application of that provision to other persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of that provision, or the application of that provision, in any other jurisdiction.  If any provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable.

 

Section 5.10 Assignment.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their permitted successors and assigns.  Except in connection with a Permitted Transfer, no party to this Agreement may assign or delegate, by operation of law or otherwise, all or any portion of its rights or liabilities under this Agreement without the prior written consent of the other parties to this Agreement, which any such party may withhold in its absolute discretion.  Any purported assignment in violation of the foregoing shall be void.

 

Section 5.11 Specific Performance.  The parties hereto agree that irreparable damage would occur if any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.  Accordingly each party to this Agreement (i) shall be entitled to an injunction or injunctions, specific performance and other equitable relief to prevent breaches or threatened breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in the courts described in Section 5.3, without proof of damages or otherwise, this being in addition to any other remedy at law or in equity, and (ii) hereby waives any requirement for the posting of any bond or similar collateral in connection therewith.  Each party hereto agrees that it will not oppose the granting of an injunction, specific performance and other equitable relief on the basis that (a) the other party has an adequate remedy at law or (b) an award of specific performance is not an appropriate remedy for any reason at law or equity.

 

  

  

  

 

Section 5.12 Stockholder Capacity.  Notwithstanding anything contained in this Agreement to the contrary, the representations, warranties, covenants and agreements made herein by each Stockholder are made solely with respect to such Stockholder and the Covered Shares.  Each Stockholder is entering into this Agreement solely in its capacity as the Beneficial Owner of such Covered Shares and nothing herein shall limit or affect any actions taken by any officer or director of the Company (or a Company Subsidiary) solely on behalf of, and in his or her capacity as a director or officer of, the Company (or a Company Subsidiary), including participating on behalf of, and in his or her capacity as a director or officer of, the Company in any discussions or negotiations with Parent or any other party making an Acquisition Proposal in accordance with Section 6.3 of the Merger Agreement, and none of such actions taken on behalf of, and in his or her capacity as a director or officer of, the Company (or a Company Subsidiary) in accordance with the provisions of this Section 5.12 shall constitute or be deemed to constitute a breach of this Agreement.  Nothing contained herein, and no action taken by any Stockholder pursuant hereto, shall be deemed to constitute the parties as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the parties are in any way acting in concert or as a group with respect to the obligations or the transactions contemplated by this Agreement.

 

Section 5.13 No Ownership Interest.  Nothing contained in this Agreement shall be deemed to vest in the Company or Parent any direct or indirect ownership or incidence of ownership of or with respect to any Covered Shares.  All rights, ownership and economic benefits of and relating to the Covered Shares shall remain vested in and belong to the Stockholders, and neither the Company nor Parent shall have any authority to direct the Stockholders in the voting or disposition of any of the Covered Shares, in each case, except as otherwise provided herein.

 

Section 5.14 Fees and Expenses.  Except as otherwise agreed, all costs and expenses (including all fees and disbursements of counsel, accountants, investment bankers, experts and consultants to a party) incurred in connection with this Agreement shall be paid by the party incurring such costs and expenses.

 

Section 5.15 Counterparts; Effectiveness.  This Agreement may be executed in one or more counterparts (including by facsimile or electronic (i.e., PDF) transmission), all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the parties hereto and delivered to the other parties hereto.

 

  

  

  

 

Section 5.16 Several Obligations  The agreements, obligations, representations and warranties of the Stockholders hereunder shall be several and not joint.

 

Section 5.17 Independent Committee. All amendments or waivers of any provision of this Agreement by the Company and all decisions or determinations contemplated by this Agreement to be made by the Company shall be made by an Independent Committee and no amendment or waiver of any provision of this Agreement by the Company and no decision or determination contemplated by this Agreement to be made by the Company shall be made, or action taken, by the Company or the Board with respect to this Agreement without first obtaining the approval of an Independent Committee.  An Independent Committee, and only an Independent Committee, may pursue any action or litigation with respect to breaches of this Agreement on behalf of the Company.

 

[Signature page follows]

 

 

 

  

  

  

 

IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized officers of the parties to this Agreement as of the date first written above.

 

	 	FAMILY ACQUISITION HOLDINGS, INC.	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Clyde B. Anderson	 
	 	Name:	Clyde B. Anderson	 
	 	Title:	President 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	BOOKS-A-MILLION, INC.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Terrance G. Finley	 
	 	Name:	Terrance G. Finley	 
	 	Title:	President and Chief Executive Officer	 

 

 

[Signature Page to Voting Agreement]

 

  

  

  

 

	  	
ANDERSON BAMM HOLDINGS, LLC     

	 
	 	By:	/s/ Charles C. Anderson	 
	 	Name:	Charles C. Anderson	 
	 	Title:	Director	 

 

 

	  	
/s/ Charles C. Anderson

	 
	 	
Charles C. Anderson

	 
	 	 	 
	 	 	 
	  	
/s/ Hilda B. Anderson

	 
	 	
Hilda B. Anderson

	 
	 	 	 
	 	 	 
	  	
/s/ Joel R. Anderson                                                                

	 
	 	
Joel R. Anderson

	 
	 	 	 
	 	 	 
	 	/s/ Charles C. Anderson, Jr.	 
	 	Charles C. Anderson, Jr.	 
	 	 	 
	 	 	 
	 	/s/ Charles C. Anderson, III	 
	 	Charles C. Anderson, III	 
	 	 	 
	 	 	 
	 	/s/ Terrence C. Anderson	 
	 	Terrence C. Anderson	 
	 	 	 
	 	 	 
	 	/s/ Clyde B. Anderson	 
	 	Clyde B. Anderson	 
	 	 	 
	 	 	 
	 	/s/ Harold M. Anderson	 
	 	Harold M. Anderson	 
	 	 	 
	 	 	 
	 	/s/ Hayley Anderson Milam	 
	 	Hayley Anderson Milam	 

 

  

  

  

 

 

 

	 	/s/ Ashley Ruth Anderson	 
	 	Ashley Ruth Anderson	 
	 	 	 
	 	 	 
	 	/s/ Kayrita M. Anderson	 
	 	Kayrita M. Anderson	 

 

 

	 	THE ASHLEY ANDERSON TRUST	 
	 	 	 	 
	
 

	
By: 

	/s/ Cumberland Trust Investment Company 	 
	 	Name:	Cumberland Trust Investment Company 	 
	 	 Title:	Trustee 	 

 

 

 

	 	LAUREN A. ANDERSON IRREVOCABLE TRUST	 
	 	 	 	 	 
	 	 	By:	/s/ Martin R. Abroms	 
	 	 	Name:	Martin R. Abroms	 
	 	 	Title:	Trustee	 
	 	 	 	 	 
	 	OLIVIA BARBOUR ANDERSON 1995 TRUST	 
	 	 	 	 	 
	 	 	By:	/s/ Terrence C. Anderson	 
	 	 	Name:	Terrence C. Anderson	 
	 	 	Title:	Trustee	 
	 	 	 	 	 
	 	
ALEXANDRA RUTH ANDERSON 

IRREVOCABLE TRUST

	 
	 	 	 	 	 
	 	 	By:	/s/ Charles C. Anderson	 
	 	 	Name:	Charles C. Anderson	 
	 	 	Title:	Trustee	 
	 	 	 	 	 
	 	
FIRST ANDERSON GRANDCHILDREN’S TRUST 

FBO CHARLES C. ANDERSON, III

	 
	 	 	 	 	 
	 	 	By:	/s/ Sun Trust Delaware Trust Company	 
	 	 	Name:	SunTrust Delaware Trust Company	 
	 	 	Title:	Trustee	 
	 	 	 	 	 
	 	
FIRST ANDERSON GRANDCHILDREN’S TRUST 

FBO HAYLEY E. ANDERSON

	 
	 	 	 	 	 
	 	 	By:	/s/ Sun Trust Delaware Trust Company	 
	 	 	Name:	SunTrust Delaware Trust Company	 
	 	 	Title:	Trustee	 

 

  

  

  

 

	 	
FIRST ANDERSON GRANDCHILDREN’S TRUST 

FBO LAUREN A. ANDERSON

	 
	 	 	 	 	 
	 	 	By:	/s/ Sun Trust Delaware Trust Company	 
	 	 	Name:	SunTrust Delaware Trust Company	 
	 	 	Title:	Trustee	 
	 	 	 	 	 
	 	
SECOND ANDERSON GRANDCHILDREN’S TRUST 

FBO ALEXANDRA R. ANDERSON

	 
	 	 	 	 	 
	 	 	By:	/s/ Sun Trust Delaware Trust Company	 
	 	 	Name:	SunTrust Delaware Trust Company	 
	 	 	Title:	Trustee	 
	 	 	 	 	 
	 	
THIRD ANDERSON GRANDCHILDREN’S TRUST 

FBO TAYLOR C. ANDERSON

	 
	 	 	 	 	 
	 	 	By:	/s/ Sun Trust Delaware Trust Company	 
	 	 	Name:	SunTrust Delaware Trust Company	 
	 	 	Title:	Trustee	 
	 	 	 	 	 
	 	
FOURTH ANDERSON GRANDCHILDREN’S TRUST 

FBO CARSON C. ANDERSON

	 
	 	 	 	 	 
	 	 	By:	/s/ Sun Trust Delaware Trust Company	 
	 	 	Name:	SunTrust Delaware Trust Company	 
	 	 	Title:	Trustee	 
	 	 	 	 	 
	 	
FIFTH ANDERSON GRANDCHILDREN’S TRUST 

FBO HAROLD M. ANDERSON

	 
	 	 	 	 	 
	 	 	By:	/s/ Sun Trust Delaware Trust Company	 
	 	 	Name:	SunTrust Delaware Trust Company	 
	 	 	Title:	Trustee	 
	 	 	 	 	 
	 	
SIXTH ANDERSON GRANDCHILDREN’S TRUST 

FBO BENTLEY B. ANDERSON

	 
	 	 	 	 	 
	 	 	By:	/s/ Sun Trust Delaware Trust Company	 
	 	 	Name:	SunTrust Delaware Trust Company	 
	 	 	Title	Trustee	 

 

  

  

  

 

	 	THE CHARLES C. ANDERSON FAMILY FOUNDATION	 
	 	 	 	 	 
	 	 	By:	/s/ Charles C. Anderson	 
	 	 	Name:	Charles C. Anderson	 
	 	 	Title:	Chairman	 
	 	 	 	 	 
	 	THE JOEL R. ANDERSON FAMILY FOUNDATION	 
	 	 	 	 	 
	 	 	By:	/s/ Joel R. Anderson	 
	 	 	Name:	Joel R. Anderson	 
	 	 	Title:	Chairman	 
	 	 	 	 	 
	 	THE CLYDE AND SUMMER ANDERSON FOUNDATION	 
	 	 	 	 	 
	 	 	By:	/s/ Clyde B. Anderson	 
	 	 	Name:	Clyde B. Anderson	 
	 	 	Title:	Chairman	 

 

  

  

  

 

SPOUSAL CONSENT

I, ___________________, spouse of ___________ (the “Stockholder”), have read and approve of the foregoing Voting Agreement, dated as of July 13, 2015, together with all schedules and attachments thereto (collectively, the “Agreement”), by and among my spouse, Family Acquisition Holdings, Inc. (“Parent”), Books-A-Million, Inc. (the “Company”), and the other parties thereto.  In consideration with Parent and Sub’s entry into the Agreement and Plan of Merger among Parent, Sub and the Company, I hereby appoint the Stockholder as my attorney-in-fact in respect to the exercise or waiver of any rights under the Agreement, and agree to be bound by the provisions of the Agreement insofar as I may have any rights in said Agreement or any shares subject thereto under the community property laws of the State of _________________, or under similar laws relating to marital property in effect in the state of our residence as of the date of the signing of the foregoing Agreement.

	
Dated: __________________

	  
	
“Spouse of Stockholder”

	  
	
_________________________

	
(Signature)

	  
	
_________________________

	
(Print Name)

 

  

  

  

Schedule 1

STOCKHOLDER INFORMATION

 

	

Name and Contact Information

	 	

Shares of

Common Stock

	 	 	 
	
Anderson BAMM Holdings, LLC

201 South Court Street, Suite 610

Florence, Alabama 35630

	 	
1,513,302

	 	 	 
	
Charles C. Anderson

202 North Court Street,

Florence, Alabama 35630

	 	
100,000

	 	 	 
	
Hilda B. Anderson

c/o Abroms & Associates

201 South Court Street, Suite 610

Florence, Alabama 35630

	 	
14,111

	 	 	 
	
Joel R. Anderson

202 North Court Street

Florence, Alabama 35630

	 	
1,531,874

	 	 	 
	
Terrence C. Anderson

4511 Helton Drive

Florence, Alabama 35630

	 	
719,114

	 	 	 
	
Clyde B. Anderson

2801 Highway 280 South, Suite 350

Birmingham, Alabama 35223

	 	
3,253,425

	 	 	 
	
Charles C. Anderson, Jr.

265 Brookview Town Centre Way, Suite 501

Knoxville, Tennessee 37919

	 	
580,422

	 	 	 
	
Harold M. Anderson

3101 Clairmont Road, Suite C

Atlanta, Georgia 30329

	 	
684,335

	 	 	 
	
Kayrita Anderson

3101 Clairmont Road, Suite C

Atlanta, Georgia 30329

	 	
20,611

 

  

  

  

 

	
Name and Contact Information

	 	

Shares of

Common Stock

	 	 	 
	
Charles C. Anderson, III

4339 Northcrest Road

Dallas, Texas 75229

	 	
23,794

	 	 	 
	
The Ashley Anderson Trust

c/o Abroms & Associates

201 South Court Street, Suite 610

Florence, Alabama 35630

 

with a copy to:

Cumberland Trust Investment Company

40 Burton Hills Boulevard, Suite 300

Nashville, Tennessee 37215

	 	
84,000

	 	 	 
	
Hayley Anderson Milam

c/o Abroms & Associates

201 South Court Street, Suite 610

Florence, Alabama 35630

	 	
25,380

	 	 	 
	
Lauren A. Anderson Irrevocable Trust

c/o Abroms & Associates

201 South Court Street, Suite 610

Florence, Alabama 35630

	 	
25,380

 

	 	 	 
	
Olivia Barbour Anderson 1995 Trust

c/o Abroms & Associates

201 South Court Street, Suite 610

Florence, Alabama 35630

	 	
1,200

	 	 	 
	
Alexandra Ruth Anderson Irrevocable Trust

c/o Abroms & Associates

201 South Court Street, Suite 610

Florence, Alabama 35630

	 	
1,200

 

  

  

  

 

	
Name and Contact Information

	 	

Shares of

Common Stock

	 	 	 
	
First Anderson Grandchildren’s Trust

FBO Charles C. Anderson, III

c/o Abroms & Associates

201 South Court Street, Suite 610

Florence, Alabama 35630

 

with a copy to:

SunTrust Delaware Trust Company

1101 Centre Road, Suite 108

Wilmington, Delaware 19805

	 	
11,224

	 	 	 
	
First Anderson Grandchildren’s Trust

FBO Hayley E. Anderson

c/o Abroms & Associates

201 South Court Street, Suite 610

Florence, Alabama 35630

 

with a copy to:

SunTrust Delaware Trust Company

1101 Centre Road, Suite 108

Wilmington, Delaware 19805

	 	
11,224

	 	 	 
	
First Anderson Grandchildren’s Trust

FBO Lauren A. Anderson

c/o Abroms & Associates

201 South Court Street, Suite 610

Florence, Alabama 35630

 

with a copy to:

SunTrust Delaware Trust Company

1101 Centre Road, Suite 108

Wilmington, Delaware 19805

	 	
11,224

 

  

  

  

 

	
Name and Contact Information

	 	

Shares of

Common Stock

	 	 	 
	
Second Anderson Grandchildren’s Trust

FBO Alexandra R. Anderson

c/o Abroms & Associates

201 South Court Street, Suite 610

Florence, Alabama 35630

 

with a copy to:

SunTrust Delaware Trust Company

1101 Centre Road, Suite 108

Wilmington, Delaware 19805

	 	
11,224

 

	 	 	 
	
Third Anderson Grandchildren’s Trust

FBO Taylor C. Anderson

c/o Abroms & Associates

201 South Court Street, Suite 610

Florence, Alabama 35630

 

with a copy to:

SunTrust Delaware Trust Company

1101 Centre Road, Suite 108

Wilmington, Delaware 19805

	 	
11,224

	 	 	 
	
Fourth Anderson Grandchildren’s Trust

FBO Carson C. Anderson

c/o Abroms & Associates

201 South Court Street, Suite 610

Florence, Alabama 35630

 

with a copy to:

SunTrust Delaware Trust Company

1101 Centre Road, Suite 108

Wilmington, Delaware 19805

	 	
11,224

 

  

  

  

 

	
Name and Contact Information

	 	

Shares of

Common Stock

	 	 	 
	
Fifth Anderson Grandchildren’s Trust

FBO Harold M. Anderson

c/o Abroms & Associates

201 South Court Street, Suite 610

Florence, Alabama 35630

 

with a copy to:

SunTrust Delaware Trust Company

1101 Centre Road, Suite 108

Wilmington, Delaware 19805

	 	
11,224

	 	 	 
	
Sixth Anderson Grandchildren’s Trust

FBO Bentley B. Anderson

c/o Abroms & Associates

201 South Court Street, Suite 610

Florence, Alabama 35630

 

with a copy to:

SunTrust Delaware Trust Company

1101 Centre Road, Suite 108

Wilmington, Delaware 19805

	 	
11,224

	 	 	 
	
The Charles C. Anderson Family Foundation

c/o Abroms & Associates

201 South Court Street, Suite 610

Florence, Alabama 35630

	 	
83,000

	 	 	 
	
The Joel R. Anderson Family Foundation

c/o Abroms & Associates

201 South Court Street, Suite 610

Florence, Alabama 35630

	 	
83,000

	 	 	 
	
The Clyde and Summer Anderson Foundation

c/o Abroms & Associates

201 South Court Street, Suite 610

Florence, Alabama 35630

	 	
46,000

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