Document:

exv10w1

Exhibit 10.1

RESTRUCTURING SUPPORT AGREEMENT

     This RESTRUCTURING SUPPORT AGREEMENT (together with the Term Sheet, as defined below, this
“Agreement”) is made and entered into as of February 28, 2010, by and among (i) Regent
Communications, Inc., a Delaware corporation (“Parent”), Regent Broadcasting, LLC, a
Delaware limited liability company (“Regent”), and all of their undersigned subsidiaries
and affiliates that may or will be one of the debtors in Regent’s voluntary reorganization cases
(collectively, the “Company” or the “Debtors,” as appropriate) and (ii) the Lenders
(defined below) that are signatories hereto (the “Consenting Lenders” and, together with
the Company, the “Parties”).

     Capitalized terms used herein and not otherwise defined have the meanings assigned thereto in
the Term Sheet (both as defined herein), as applicable.

W
I  T  N  E  S  S  E
 T  H:

     WHEREAS, the Company is party to that certain Credit Agreement, dated as of November 21, 2006
(as amended, modified, supplemented, or waived from time to time, the “Credit Agreement”),
by and among Regent, as borrower, the guarantors party thereto, Bank of America, N.A.
(“BofA”), as administrative agent (in such capacity, the “Administrative Agent”),
BofA, as issuing lender (in such capacity, the “Issuing Lender”), and the banks and other
financial institutions from time to time party thereto, as lenders (the “Lenders”),
providing for a maximum revolving credit facility of $75,000,000 (the “Revolving Credit
Facility”), a $115,000,000 initial senior secured Term B Loan (the “Term Facility”),
and a senior secured delayed draw term loan facility in the aggregate principal amount of
$50,000,000 (the “Delayed Draw Facility”, together with the Revolving Facility, the Delayed
Draw Facility and the Term Facility, the “Credit Facility”). As of February 28, 2010, the
Company is obligated for an aggregate principal amount of $41,633,504 outstanding under the
Revolving Credit Facility, $108,504,343 under the Term Facility, and $42,469,828 under the Delayed
Draw Facility (such obligations together with the other “Obligations” (as defined in the Credit
Facility), collectively, the “Credit Facility Obligations”);

     WHEREAS, the Company is party to certain Specified Swap Agreements (collectively, the
“Specified Swap Agreements”), including: (i) those certain Confirmations dated December 4,
2006 and December 16, 2006, between BofA and Regent Broadcasting, Inc., as amended, (ii) those
certain Confirmations of Swap Transactions, dated December 4, 2006 and December 15, 2006, between
Suntrust (“Suntrust”) and Regent Broadcasting, Inc., as amended, and (iii) that certain
Confirmation dated December 5, 2006, and that certain ISDA Master Agreement dated as of January 12,
2007, in each case between Bank of Montreal (“Bank of Montreal” and, together with BofA and
Suntrust, the “Swap Counterparties”), and Regent Broadcasting, LLC, as amended. As of
February 28, 2010, the Company is obligated for an aggregate principal amount of $12,102,361 under
the Specified Swap Agreements (such obligations, collectively, the “Specified Swap
Obligations” and, together with the Credit Facility Obligations but without duplication, the
“Obligations”);

 

 

     WHEREAS, the Company’s boards of directors have determined that a financial restructuring is
advisable and in the best interests of their stockholders and creditors;

     WHEREAS, the Parties, with the assistance of their legal and financial advisors, have engaged
in good faith negotiations with the objective of reaching an agreement with regard to a
restructuring of the outstanding indebtedness and liabilities of the Company, in accordance with
the terms set forth in this Agreement;

     WHEREAS, Exhibit A hereto is a term sheet (as may be amended, supplemented or
otherwise modified only with the consent of Consenting Lenders who together hold at least 66 2/3%
of the aggregate principal amount of the outstanding Obligations (such Consenting Lenders, the
“Requisite Consenting Lenders”) in their sole discretion, the “Term Sheet”) setting
forth the principal terms of a restructuring (the “Restructuring”) of all the outstanding
indebtedness under the Credit Agreement and the Specified Swap Agreements;

     WHEREAS, the Term Sheet is expressly incorporated by reference herein and made a part hereof;

     WHEREAS, the Company intends to: (a) to commence voluntary reorganization cases (each a
“Chapter 11 Case,” and collectively, the “Chapter 11 Cases”) under chapter 11 of
title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy
Court for the District of Delaware (the “Bankruptcy Court”) to effect the Restructuring
through a prenegotiated chapter 11 plan of reorganization, which such plan, including any amendment
or modification thereto, shall be in form and substance acceptable to the Requisite Consenting
Lenders and the Company and consistent in all respects with this Agreement (the “Prearranged
Plan”); and (b) consistent with the terms of this Agreement, file and use reasonable efforts to
obtain approval and confirmation, as applicable, of the Prearranged Plan and the accompanying
disclosure statement, which such disclosure statement, including any amendment or modification
thereto, shall be in form and substance acceptable to the Requisite Consenting Lenders and the
Company and consistent in all respects with this Agreement (the “Disclosure Statement”);

     WHEREAS, each Consenting Lender is the holder of a claim, within the meaning of Section 101(5)
of the United States Bankruptcy Code, arising out of or related to the Credit Facility and/or the
Specified Swap Agreements, as applicable (each, a “First Lien Debt Claim”);

     WHEREAS, each Company and each Consenting Lender has reviewed, or has had the opportunity to
review, this Agreement with the assistance of their respective legal and financial advisors of
their own choosing;

     WHEREAS, each Company and each Consenting Lender desires to consent to and support the
Restructuring and, if applicable, vote to accept the Prearranged Plan and not otherwise act
inconsistent with or impede the support of the Prearranged Plan that implements the terms of the
Restructuring; and

     WHEREAS, subject to execution of definitive documentation and appropriate approvals by the
Bankruptcy Court of the Disclosure Statement and the Prearranged Plan, this Agreement sets forth
the terms and conditions of the Parties’ respective obligations hereunder.

 

 

     NOW, THEREFORE, in consideration of the premises and mutual covenants and agreements set forth
herein, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties hereto hereby agree as follows:

     Section 1. Term Sheet. The Term Sheet is incorporated by reference herein and is made
part of this Agreement as if fully set forth herein. The general terms and conditions of the
Restructuring are set forth in the Term Sheet; provided, however, that the Term
Sheet is supplemented by the terms and conditions of this Restructuring Support Agreement. In the
event of any inconsistencies between the terms of this Restructuring Support Agreement and the Term
Sheet, the Term Sheet shall govern.

     Section 2. Support for the Prearranged Plan.

          (a) Each Debtor agrees to use its commercially reasonable efforts to: (i) support, complete
and do all things necessary and appropriate to implement, and to otherwise take all appropriate
action in furtherance of, the transactions embodied in this Agreement, including, without
limitation, (A) commencing the Chapter 11 Cases on or before March 1, 2010 (the date of
commencement of the Chapter 11 Cases is hereinafter referred to as the “Petition Date”),
(B) filing the Prearranged Plan, Disclosure Statement and a motion seeking approval of procedures
governing the solicitation of the Prearranged Plan (the “Solicitation Procedures Motion”)
with the Bankruptcy Court on the Petition Date; (C) obtaining an order of the Bankruptcy Court
approving the Solicitation Procedures Motion and Disclosure Statement within thirty-three (33)
calendar days of the Petition Date, (D) obtaining a Confirmation Order (defined below) within forty
(40) calendar days of the Petition Date, (E) causing the effective date of the Prearranged Plan
(the “Effective Date”) to occur on or prior to the later of (x) fifteen (15) calendar days
after the entry of the Confirmation Order and (y) three (3) business days after the date the
Necessary Approval1 from the Federal Communications Commission (the “FCC”) is
obtained, and (F) obtaining an order from the Bankruptcy Court approving the use of cash collateral
and grant of adequate protection to the Lenders, each as described more fully in Section 7 hereof;
(ii) obtain the Necessary Approval as soon as practicable after the Petition Date but in any event
on or prior to July 23, 2010; and (iii) take all steps necessary and appropriate to obtain any and
all required regulatory and/or third-party approvals for the Restructurings, including, without
limitation, (A) filing the short-form FCC approval applications seeking a pro
forma involuntary assignment of the Company’s broadcasting and other FCC-issued licenses (the
"FCC Licenses”) to the Debtors (“Short-Form FCC Applications”) within three (3)
business days

 

			
	1	 	For purposes hereof, “Necessary Approval”
shall mean the earliest receipt of (a) FCC approval of transfer of control of
the FCC Licenses to the holders of New Equity (as defined in the Term Sheet)
issued pursuant to the Prearranged Plan (the “Transfer of Control”),
(b) FCC approval of pro forma assignment or transfer of control of the FCC
Licenses to a trust managed by Jay Meyers (or such other independent trustee
acceptable to the Required Lenders (as defined in the Credit Agreement)) (the
"Independent Trustee,” and such trust, the “Independent Trust”)
pursuant to a trust agreement acceptable to the Requisite Consenting Lenders
(the “Independent Trust Agreement”) for the benefit of Reorganized
Borrower (or its designee(s)), or (c) FCC approval of pro forma assignment or
transfer of control of the FCC Licenses to a trust managed by a board comprised
of four (4) members of the current board of directors of Parent and three (3)
additional individuals, all seven (7) of which shall be selected by the
Required Lenders (as defined in the Credit Agreement) (the “Traditional
Trustee,” and such trust, the “Traditional Trust”) pursuant to a
trust agreement acceptable to the Requisite Consenting Lenders (the
"Traditional Trust Agreement”) for the benefit of Reorganized Borrower
(or its designee(s)).

 

 

of the Petition Date, (B) filing the long-form FCC approval applications seeking FCC
consent to the Transfer of Control to the holders of new equity issued pursuant to the Prearranged
Plan (“Long-Form FCC Applications”) no later than three (3) business days after receipt of
approval from the FCC of the Short-Form FCC Applications (or, if later, two (2) business days after
the date on which the Requisite Consenting Lenders are prepared to file the Long-Form FCC
Applications), (C) filing a motion (the “Independent Trust Motion”) with the Bankruptcy
Court seeking an order approving the Independent Trust and the Independent Trust Agreement, which
order shall be acceptable to the Requisite Consenting Lenders in their sole discretion (the
"Independent Trust Order”), within five (5) business days after the Petition Date, (D)
filing the short-form FCC approval applications seeking an assignment to the Independent Trust of
the FCC Licenses and any related assets designated by the Requisite Consenting Lenders
(collectively, the “Independent Trust FCC Application”) within three (3) business days
after the later of (x) receipt of approval from the FCC of the Short-Form FCC Applications and (y)
the date on which the Bankruptcy Court enters the Independent Trust Order, (E) filing the
short-form FCC approval applications seeking an assignment to the Traditional Trust of the FCC
Licenses and any related assets designated by the Requisite Consenting Lenders (collectively, the
"Traditional Trust FCC Application”) on the date which is the later of (x) three (3)
business days after the entry of the Confirmation Order (as defined in Section 5(a)(5) below) and
(y) the thirtieth (30th) calendar day following the filing of the Independent Trust FCC
Application, or, if earlier requested by the Requisite Consenting Lenders, within three (3)
business days after such request, (F) if requested by the Requisite Consenting Lenders, filing a
motion (the “Traditional Trust Motion”) with the Bankruptcy Court seeking an order
approving the Traditional Trust and the Traditional Trust Agreement, which order shall be
acceptable to the Requisite Consenting Lenders (the “Traditional Trust Order”), within five
(5) business days after such request, and (G) using commercially reasonable efforts to otherwise
support the Short-Form FCC Applications, the Long-Form FCC Applications, the Independent Trust
Application, the Independent Trust Motion, the Traditional Trust Motion (if any) and the
Traditional Trust FCC Application (if any).

          (b) Subject to the terms and conditions of this Agreement and in accordance with the terms
hereof, each Debtor agrees to not object, commence any proceeding or otherwise oppose or alter any
of the terms of the Prearranged Plan or any other document filed in connection with the
confirmation of the Prearranged Plan (each such document, the terms of which shall be reasonably
acceptable in all respects to the Requisite Consenting Lenders and the Debtors, a
“Reorganization Document”) and agrees to not take any action which is inconsistent with, or
that would delay approval or confirmation of, the Prearranged Plan, the Disclosure Statement or any
of the Reorganization Documents, or that could reasonably be expected to prevent, delay or impede
the Restructuring pursuant to the Prearranged Plan or any Reorganization Document.

          (c) Subject to the terms and conditions of this Agreement and in accordance with the terms
hereof, from the date hereof through the Effective Date, each Debtor agrees that it will operate in
the ordinary course of business consistent with past practice and use its commercially reasonable
efforts to keep intact the assets, operations and relationships of its business. Each Debtor shall
inform the Requisite Consenting Lenders immediately about all occurrences which may have a material
adverse effect on the assets, operations or relationships
of the Debtors’ businesses. In addition to, and not in limitation of, the foregoing, each
Debtor hereby covenants and agrees that it shall not, without the consent of the Requisite
Consenting

 

 

Lenders, extend, amend or renew, or enter into, any contract or other binding commitment
or arrangement which (A) is entered into outside the ordinary course of business and requires the
Debtors pay an amount in excess of $50,000 in any given twelve month period or (B) is entered into
in the ordinary course of business but requires the Debtors pay an amount in excess of $100,000 in
any given twelve month period, including, without limitation, (i) any contract, commitment or other
binding arrangement, the subject matter of which is not directly used in the operation of any of
the Company’s radio stations, (ii) any contract, commitment or other binding arrangement with any
officer, director, employee, consultant or independent contractor of the Company (except as
expressly provided by the Term Sheet), or (iii) any profit sharing, bonus, deferred compensation,
savings, insurance, pension, retirement, or other employee benefit plan. For the avoidance of
doubt, nothing in this section is intended to, nor shall it, constitute a waiver of the Consenting
Lenders’ right to object to any such contracts, commitments or other binding arrangements, whether
or not prohibited hereunder (except for those agreements to be assumed pursuant to the Term Sheet).

          (d) Subject to the terms and conditions of this Agreement and in accordance with the terms
hereof, each Consenting Lender agrees to: (i) vote its First Lien Debt Claims to accept the
Prearranged Plan by delivering its duly executed and completed ballot accepting the Prearranged
Plan, provided, however, that such vote shall be immediately revoked and deemed
void ab initio upon termination of this Agreement pursuant to the terms hereof; and (ii) not
withdraw, change or revoke (or cause to be withdrawn, changed or revoked) its vote with respect to
the Prearranged Plan except as otherwise expressly permitted pursuant to subsection (i) above.

          (e) Each Consenting Lender agrees to use commercially reasonable efforts to support, complete
and do all things necessary and appropriate to implement, and to otherwise use commercially
reasonable efforts to take all appropriate action in furtherance of, the transactions embodied in
this Agreement, including, without limitation, using commercially reasonable efforts to (i) cause
the Effective Date to occur on or prior to the later of (A) fifteen (15) calendar days after the
entry of the Confirmation Order and (B) three (3) business days after the Necessary Approval is
obtained, (ii) obtain the Necessary Approval on or prior to July 23, 2010, and (iii) take all steps
necessary and appropriate to obtain any and all required regulatory and/or third-party approvals
for the Restructuring, including, without limitation, using commercially reasonable efforts to
support the Short-Form FCC Applications, the Long-Form FCC Applications, the Independent Trust
Application, the Independent Trust Motion, the Traditional Trust Motion (if any) and the
Traditional Trust FCC Application (if any).

          (f) The Parties agree to reasonably cooperate in (i) seeking approval of the Short-Form FCC
Applications, the Long-Form FCC Applications, the Independent Trust Application, the Traditional
Trust FCC Application (if any), the Independent Trust Motion and the Traditional Trust Motion (if
any), (ii) proposing in the Long-Form FCC Applications the assignment to a divestiture trust of any
of the Company’s radio stations necessary to comply with the FCC’s multiple or cross-ownership
rules, and (iii) seeking any waiver of the FCC’s Rules regarding contingent or inconsistent
applications which may be necessary.

          (g) Subject to the terms and conditions of this Agreement and in accordance with the terms
hereof, each Consenting Lender agrees to not object, commence any proceeding or otherwise oppose or
alter any of the terms of the Prearranged Plan or any other Reorganization

 

 

Document and agrees to
not take any action which is inconsistent with, or that would delay approval or confirmation or
assumption of the Prearranged Plan, the Disclosure Statement or any of the Reorganization
Documents, or that could reasonably be expected to prevent, delay or impede the Restructuring
pursuant to the Prearranged Plan or any Reorganization Document.

          (h) Each of the Parties agrees that it will negotiate in good faith (i) the documentation
regarding the Restructuring or otherwise contemplated by the Term Sheet, (ii) the Prearranged Plan,
and (iii) the other documents contemplated hereby and thereby.

     Section 3. Transfer of Claims, Interests, and Securities. Each Consenting Lender
individually and severally covenants that, from the date hereof until the termination of this
Agreement with respect to such Party, such Party shall not, directly or indirectly, sell, pledge,
hypothecate, or otherwise transfer (“Transfer”) any First Lien Debt Claims, or any option
or right to acquire, or voting, participation, or other interest therein, except to another
Consenting Lender or to a purchaser or other entity that represents that it will execute and
deliver (and who does so execute and deliver) to the Company and the Consenting Lenders within two
business days of settlement of such trade or transfer an agreement in writing (in a form
substantially similar to Exhibit B hereto) to assume and be bound by all the terms of this
Agreement with respect to the relevant First Lien Debt Claims, or other interests being transferred
to such purchaser (which agreement shall include the representations and warranties set forth in
this Agreement). The Company shall promptly acknowledge any such trade or transfer in writing and
provide a copy of such acknowledgement to the transferor. By its acknowledgement of the relevant
trade or transfer, the Company shall be deemed to have acknowledged that their obligations to the
Consenting Lender hereunder shall be deemed to constitute obligations in favor of the relevant
transferee as a Consenting Lender hereunder. Any Transfer of any First Lien Debt Claim that does
not comply with the foregoing shall be deemed void ab initio. This Agreement shall in no way be
construed to preclude a Party from acquiring additional claims under the Credit Agreement or
Specified Swap Agreements, as applicable, or other interests in any Debtor; provided,
however, that any such additional claims under the Credit Agreement or Specified Swap
Agreements shall automatically be deemed to be subject to all the terms of this Agreement.

     Section 4. Representations and Warranties.

          (a) Representations and Warranties of Each Party. Each of the Parties severally, but
not jointly, represents and warrants to each of the other Parties that the following statements are
true and correct as of the date hereof:

               (1) Power and Authority. It has all requisite power and authority to enter into this
Agreement and to carry out the transactions contemplated by, and perform its respective obligations
under, this Agreement.

               (2) Authorization. The execution and delivery of this Agreement and the performance
of its obligations hereunder have been duly authorized by all necessary action on its part.

               (3) No Conflicts. The execution, delivery, and performance by it of this Agreement do
not and shall not (i) violate any provision of law, rule, or regulation

 

 

applicable to it or its
certificate of incorporation, by-laws, or other organizational documents; or (ii) conflict with,
result in a breach of, or constitute (with due notice or lapse of time or both) a default under any
material contractual obligation to which it is a party or under its certificate of incorporation or
by-laws (or other organizational documents).

               (4) Governmental Consent. The execution, delivery, and performance by it of this
Agreement do not and shall not require any registration or filing with, consent or approval of, or
notice to, or other action to, with, or by, any Federal, state, or other governmental authority or
regulatory body, except: (i) such filings as may be necessary and/or required for disclosure by the
FCC, Securities and Exchange Commission and applicable state securities or “blue sky” laws; (ii)
any filings in connection with the Chapter 11 Cases, including the approval of the Disclosure
Statement and confirmation of the Prearranged Plan; and (iii) in the case of the Company, (A)
filings of amended articles of incorporation or formation or other organizational documents with
applicable state authorities, and (B) other registrations, filings, consents, approvals, notices,
or other actions that are reasonably necessary to maintain permits, licenses, qualifications, and
governmental approvals to carry on the businesses of the Company.

          (b) Additional Representations and Warranties of the Consenting Lenders. Each of the
Consenting Lenders represents and warrants, severally but not jointly, to each of the other Parties
that the following statements are true, correct, and complete as of the date hereof:

               (1) Ownership. It is: (A) (i) the sole beneficial owner and/or the
investment advisor or manager for the beneficial owners of the claims set forth on its
signature page attached hereto, having the power to vote and dispose of such claims on
behalf of such beneficial owners; and (ii) entitled (for its own account or for the
account of other persons claiming through it) to all of the rights and economic benefits
of such claims; or (B) otherwise entitled to act on behalf of such claims and/or the
beneficial owner or owners and/or investment advisor or manager thereof.

               (2) Transfers. It has made no prior assignment, sale, participation,
grant, conveyance, or other transfer of, and has not entered into any other agreement to
assign, sell, participate, grant, or otherwise transfer, in whole or in part, any
portion of its right, title, or interests in the claims that are subject to this
Agreement that are inconsistent with the representations and warranties made above or
would render such Consenting Lender otherwise unable to comply with this Agreement.

               (3) Laws. It is: (A) a sophisticated investor with respect to the
transactions described herein with sufficient knowledge and experience in financial and
business matters and is capable of evaluating the merits and risks of owning and
investing in any securities that may be issued in connection with the Restructuring in
accordance with this Agreement, making an informed decision with respect thereto, and
evaluating properly the terms and conditions of this Agreement, and it has made its own
analysis and decision to enter in this Agreement; and (B) a “qualified
institutional buyer” within the meaning of Rule 144A of the Securities Act of 1933,
as amended.

 

 

     Section 5. Termination of the Agreement.

          (a) Termination Events. In addition to any termination of this Agreement that may
occur pursuant to Section 6 hereof, this Agreement and the obligations of the Parties hereunder may
be terminated in accordance with Section 5(b) below in the event of any of the following (each, a
“Termination Event”):

               (1) the Debtors fail to commence the Chapter 11 Case on or prior to March 1, 2010;

               (2) the Debtors fail to file the Prearranged Plan, Disclosure Statement and Solicitation
Procedures Motion on the Petition Date;

               (3) the Debtors fail to (A) file the Short-Form FCC Applications within three (3) business
days after the Petition Date, (B) file the Independent Trust Motion within five (5) business days
after the Petition Date, (C) file the Independent Trust FCC Application within three (3) business
days after the Bankruptcy Court enters the Independent Trust Order, (D) file the Traditional Trust
FCC Application on the date which is the later of (x) three (3) business days after the entry of
the Confirmation Order (as defined below) and (y) the thirtieth (30th) calendar day following the
filing of the Independent Trust FCC Application, or, if earlier requested by the Requisite
Consenting Lenders, within three (3) business days after such request (unless in each case the
Necessary Approval has already been obtained and remains in effect), or (E) if requested by the
Requisite Consenting Lenders, file the Traditional Trust Motion within five (5) business days after
receipt of such request (unless the Necessary Approval has already been obtained and remains in
effect);

               (4) the Debtors fail to file the Long-Form FCC Applications no later than three (3) business
days after receipt of approval from the FCC of the Short-Form FCC Applications (or, if later, two
(2) business days after the date on which the Requisite Consenting Lenders are prepared to file the
Long-Form FCC Applications);

               (5) the order (the “Confirmation Order”) (a) confirming the Prearranged Plan and (b)
approving all exhibits, appendices, Plan supplement documents and related documents (collectively,
the “Plan Supplement”), the terms and substance of which shall be acceptable in all
respects to (i) the Requisite Consenting Lenders and, (ii) solely with respect to any Plan
Supplement documents or related documents (A) which affect the treatment of claims of holders of
unsecured claims or interests of holders of existing equity interests under the Plan or (B) to
which the Debtors are a party, the Debtors, shall not have been entered by the Bankruptcy Court
within one-hundred and five (105) calendar days of the Petition Date, or the Confirmation Order
shall have been reversed on appeal or vacated at any time after entry of such order;

               (6) the Effective Date shall not have occurred on or prior to the earlier of: (a) the later to
occur of (i) fifteen (15) calendar days after the entry of the Confirmation Order and (ii) three
(3) business days after the Necessary Approval from the FCC
is obtained, provided that such Necessary Approval shall have remained in effect; and (b) July
28, 2010;

 

 

               (7) the issuance by any governmental authority, including any regulatory authority or court of
competent jurisdiction, of any ruling or order enjoining the consummation of a material portion of
the Restructuring, including, without limitation, an order denying confirmation of the Prearranged
Plan or declaring this Agreement to be unenforceable against any of the Debtors;

               (8) any of the Debtors (x) files, propounds or otherwise supports for any Debtor any plan of
reorganization in the Chapter 11 Cases other than the Prearranged Plan, (y) files any motion or
pleading with the Bankruptcy Court that is not consistent in any material respect with this
Agreement or the Prearranged Plan, or (z) withdraws the Prearranged Plan or publicly announces its
intention not to support the Prearranged Plan;

               (9) the Debtors’ exclusive right to file a chapter 11 plan pursuant to section 1121 of the
Bankruptcy Code shall have terminated;

               (10) any Debtor shall have sought dismissal of its Chapter 11 Case or an order dismissing one
or more of the Debtors’ Chapter 11 Cases shall have been entered;

               (11) any of the Chapter 11 Cases of the Company is converted to a case under chapter 7 of the
Bankruptcy Code or is dismissed;

               (12) any of the Debtors shall file a motion or the Bankruptcy Court shall enter an order
approving a payment to any party (whether in cash or other property or whether as adequate
protection, settlement of a dispute, or otherwise) that would be materially inconsistent with the
treatment of such party under this Agreement;

               (13) entry of an order by the Bankruptcy Court allowing for the recovery of any costs,
expenses or other amounts from the Lenders’ collateral under section 506(c) of the Bankruptcy Code
or the filing by the Debtors of a motion or complaint to avoid the liens of the Lenders under the
Credit Facility or the entry of an order by the Bankruptcy Court, whether in response to a motion
or complaint brought by the Debtors or otherwise, avoiding such liens;

               (14) the entry of an order by the Bankruptcy Court appointing an examiner with enlarged powers
relating to the operation of any material part of the business of the Debtors, taken as a whole
(powers beyond those set forth in section 1106(a)(3) and (4) of the Bankruptcy Code) under section
1106(b) of the Bankruptcy Code, or the entry of an order by the Bankruptcy Court appointing a
trustee under section 1104 of the Bankruptcy Code;

               (15) any Party has breached any material provision of this Agreement (including, without
limitation, in the case of the Company, its failure to use commercially reasonable efforts under
Section 2(a) hereof) and such breach has not been duly waived or cured in accordance with the terms
hereof within five (5) days after receipt of notice of such breach; provided, however, that so long
as the Debtors are using their commercially
reasonable efforts to meet the conditions set forth in Section 2(a) hereof, failure to meet
the deadlines in Section 2(a) hereof shall not constitute a Termination Event under this Section
5(a)(15);

 

 

               (16) the Company is or becomes subject to one or more fixed, liquidated liabilities, or
contingent or disputed liabilities that are reasonably likely to become fixed, liquidated
liabilities, in an aggregate amount greater than $750,000, provided that all liabilities
disclosed on the Company’s balance sheet as of December 31, 2009 or otherwise disclosed to the
Consenting Lenders in the side letter among the Parties dated as of the date hereof shall be
excluded for purposes of making such determination; provided, further, that all
liabilities incurred by the Company since December 31, 2009 in the ordinary course of business
consistent with past practice (other than for breach of contract, tort, infringement, violation of
or liability under applicable law to the extent not covered by insurance), shall be excluded for
purposes of making such determination;

               (17) in connection with the Consenting Lenders’ due diligence review of the Debtors, any
contamination, condition, violation or liability, as determined by an environmental consultant who
is not an affiliate of Oaktree, including contamination that exceeds currently-allowed regulatory
limits or cleanup standards and is not otherwise permanently authorized by permit or law (such
items, “Environmental Defects”) are discovered prior to the Effective Date and the cost to
remediate, correct or settle such Environmental Defects (the “Remediation Value”) exceeds
or is reasonably likely to exceed $750,000 in the aggregate; provided that Oaktree will
provide notice of the discovery of such Environmental Defects to the Debtors and the Consenting
Lenders; and

               (18) the Company and the Requisite Consenting Lenders agree in writing to terminate the
Agreement.

The foregoing Termination Events are intended solely for the benefit of the Party or Parties who
are entitled to terminate this Agreement pursuant to Section 5(b) as a result of the occurrence of
such Termination Event.

     (b) Termination Event Procedures.

               (1) Upon the occurrence of any of the Termination Events described in Sections 5(a)(1) through
5(a)(5), unless primarily caused by a breach of this Agreement by any Consenting Lender, this
Agreement, and the obligations of the Parties hereunder, shall terminate upon the delivery by
Kirkland & Ellis LLP (“Kirkland”), at the written direction of the Requisite Consenting
Lenders at their option, of a written notice of such termination to each of Regent and the other
Consenting Lenders in accordance with Section 8(c) hereof; it being agreed by each of the Parties
hereto that each such Party hereby waives any requirement under section 362 of the Bankruptcy Code
to lift the automatic stay in connection with the giving of such termination notice.

               (2) Upon (x) the occurrence of the Termination Event described in Section 5(a)(15) due to a
material breach of this Agreement by any of the Debtors not primarily caused by a breach of this
Agreement by any Consenting Lender or (y) the occurrence of any of the Termination Events described
in Sections 5(a)(6) through 5(a)(14) or Sections
5(a)(16) through 5(a)(17) not primarily caused by a breach of this Agreement by any Consenting
Lender, this Agreement and the obligations of the parties hereunder shall automatically
terminate without further action unless no later than five (5) business days after the occurrence
of any such Termination Event, the occurrence of such Termination Event is waived in writing by
the Requisite

 

 

Consenting Lenders in their sole discretion, notice of which waiver will be delivered by
Kirkland to Regent.

               (3) Upon the occurrence of the Termination Event described in Section 5(a)(15) due to a
material breach of this Agreement by Consenting Lenders who together hold more than thirty-four
percent (34%) of the aggregate principal amount of the outstanding Obligations, this Agreement and
the obligations of the Parties hereunder shall terminate upon the delivery by Regent of a written
notice of such termination to each of the Consenting Lenders in accordance with Section 8(c)
hereof.

          (c) Effect of Termination.

               (1) Subject to Section 5(c)(2), any termination of this Agreement shall render such Agreement
void and of no further force or effect, and there shall be no liability or obligation on the part
of any Party.

               (2) No termination of this Agreement (whether pursuant to Section 5 or 6 hereof) shall limit
the Parties’ rights and remedies for any breach of this Agreement or non-performance of any
obligations hereunder by any Party in each case prior to such termination, including, but not
limited to, the reservation of rights set forth herein.

     Section 6. Fiduciary Obligations. Notwithstanding anything to the contrary contained
in this Agreement:

          (a) the Company may furnish, or cause to be furnished, subject to customary confidentiality
and other terms, information concerning the Company and its affiliates and the businesses,
properties or assets of the Company and its affiliates to a party from whom it receives an
unsolicited offer that the Company and its Board of Directors reasonably believe in good faith is a
Topping Proposal, provided that the Company and its Board of Directors must reasonably
believe in good faith that such party has expressed a legitimate interest in, and has the financial
wherewithal to consummate, such Topping Proposal (a “Potential Acquiror”);
provided, further, that, except to the extent expressly provided in this Section
6(a) and Section 6(c) hereof, the Company shall not, and shall cause its directors, officers,
affiliates, representatives, advisors and agents to not, directly or indirectly, seek, solicit,
support, encourage, consent to, participate in any discussions regarding the negotiation or
formulation of, or enter into any letter of intent or definitive agreement with respect to, a
Topping Proposal or any other Alternative Transaction;

          (b) following receipt of any proposal, offer or indication of interest for an Alternative
Transaction by any party other than the Requisite Consenting Lenders, the Debtors shall disclose to
Kirkland in writing on a confidential basis (it being agreed that Kirkland may share such
disclosure with the Requisite Consenting Lenders): (i) the identity of such party; (ii) the nature
of any interest expressed by such party; and (iii) the terms and conditions of any proposal or
offer or other expression of interest for an Alternative Transaction from such party; which
disclosure shall be given by the Debtors to Kirkland within one (1) business day of receipt by the
Debtors;

          (c) following a reasonable good faith determination by the Company and its Board of Directors,
after consultation with its advisors, that a proposal or offer for an Alternative

 

 

Transaction is a Topping Proposal from a Potential Acquiror, the Company (i) may negotiate and
discuss such Topping Proposal with the Potential Acquiror and (ii) may terminate this Agreement and
the obligations of the Parties hereunder by providing five (5) business days prior written notice
to each other Party hereto in accordance with Section 8(c) hereof, in each case to the extent that
the Company and its Board of Directors has made a reasonable good faith determination, after
consulting with its advisors, that the failure to do so would be a violation of its fiduciary
duties; provided, however, that if the Confirmation Order includes a provision expressly
authorizing compliance with this proviso (which the Debtors shall use commercially reasonable
efforts to obtain), then this Agreement shall not terminate as a result of such notice if the
Effective Date of the Prearranged Plan has occurred prior to the expiration of such five (5)
business day period; and

          (d) if the Company or any of its directors, officers, affiliates, representatives, advisors or
agents (i) enters into a letter of intent (binding or non-binding) or a definitive agreement for an
Alternative Transaction (or otherwise breaches any provision of this Section 6) or (ii) requests
any modifications of the Prearranged Plan adverse to the interests of the Lenders or any additional
consideration to be provided to any other creditors or holders of existing equity interests beyond
that contemplated by the Prearranged Plan, the Requisite Consenting Lenders may terminate this
Agreement and the obligations of the Parties hereunder at anytime thereafter by delivering written
notice of such termination to each other Party hereto in accordance with Section 8(c) hereof.

          (e) For purposes of this Section 6:

               (1) “Alternative Transaction” means any restructuring, merger, consolidation or
combination to which the Company or any of its subsidiaries is a party; any proposed sale or other
disposition of capital stock or other ownership interests of the Company and its subsidiaries; or
any proposed sale or other disposition of all or substantially all of the assets or properties of
Company and its subsidiaries; and

               (2) “Topping Proposal” means a proposal, offer or indication of interest from a
Potential Acquiror for an Alternative Transaction that the Company and its Board of Directors
reasonably determines in good faith, after reasonable diligence, (x) is reasonably likely to be
consummated within a reasonable time, and (y) if consummated, would result in payment in full of
the First Lien Debt Claims of the Lenders and would otherwise be more favorable than the
Restructuring to the Debtors’ estates and their creditors, equity holders and other parties to whom
the Debtors owe fiduciary duties (including, without limitation, the Lenders); provided
that such reasonable good faith determination shall take into account, among other relevant
factors, the identity of the Potential Acquiror, the likelihood that any such offer or proposal
will be negotiated to finality within a reasonable time, and the potential loss to the Debtors’
estates and their creditors and other parties to whom the Debtors owe fiduciary duties (including,
without limitation, the Lenders) if such Alternative Transaction is not consummated.

     Section 7. Consenting Lender Consent to Use of Cash Collateral. As long as a
Termination Event has not occurred, or has occurred but has been duly waived or cured in accordance
with the terms hereof, the Consenting Lenders hereby consent to the Debtors’ use of cash
collateral in accordance with (a) a budget based upon a 13-week rolling cash flow

 

 

projection acceptable to the Requisite Consenting Lenders in their sole discretion (the
“Budget”) and (b) an interim and final cash collateral order, the form and substance of
which shall be in all respects subject to the consent of the Requisite Consenting Lenders,
providing for (i) replacement liens on substantially all of the assets of the Debtors subordinate
to a carve-out for the Debtors’ professionals and the professionals of any official committees
equal to actual fees and expenses of each such professional prior to the issuance of a Carve Out
Trigger Notice2 plus, after the issuance of a Carve Out Trigger Notice, $1,250,000 in
the aggregate split among such professionals on a pro rata basis in accordance with the amount
budgeted for each such professional in the Budget (the “Carve-Out”), (ii) superpriority
claims subordinate to the Carve-Out, (iii) payment of fees and expenses of the Consenting Lenders’
professionals, including, without limitation, Kirkland, Drinker Biddle & Reath LLP, Finn Dixon &
Herling LLP and a financial advisor to be determined at the Requisite Consenting Lenders’ election,
on a regular monthly basis during the Chapter 11 Cases, (iv) payment, on or immediately preceding
the Effective Date, to the Lenders on a pro rata basis on account of any Credit Facility
Obligations and/or Specified Swap Obligations of “Excess
Cash”3 and (v) information,
reports, documents and other additional materials the Consenting Lenders may reasonably request,
either directly or through their professionals, to the extent provided in the Credit Facility and
Specified Swap Agreements.

     Section 8. Miscellaneous.

          (a) Governing Law; Jurisdiction. This Agreement shall be governed by, and construed
in accordance with, the internal laws of the State of New York, regardless of the laws that might
otherwise govern under applicable principles of conflict of laws of the State of New York. By its
execution and delivery of this Agreement, each of the Parties hereto hereby irrevocably and
unconditionally agrees for itself that any legal action, suit, or proceeding against it with
respect to any matter under or arising out of or in connection with this Agreement or for
recognition or enforcement of any judgment rendered in any such action, suit, or proceeding, shall
be brought in a federal court of competent jurisdiction in the United States District Court for the
Southern District of New York. By execution and delivery of this Agreement, each of the Parties
hereto hereby irrevocably accepts and submits to the nonexclusive jurisdiction of such court,
generally and unconditionally, with respect to any such action, suit, or proceeding.
Notwithstanding the foregoing consent to jurisdiction, upon the commencement of the Chapter 11
Cases, each of the Parties hereto hereby agrees that the Bankruptcy Court shall have exclusive
jurisdiction over all matters arising out of or in connection with this Agreement.

          (b) No Waiver of Participation and Preservation of Rights. This Restructuring Support
Agreement and the Term Sheet are part of a proposed settlement of disputes among the Parties.
Without limiting the foregoing sentence in any way, if the transactions contemplated by this
Agreement or otherwise set forth in the Prearranged Plan are not consummated as provided herein, if
a Termination Event occurs, or if this Agreement is otherwise terminated for any

 

			
	2	 	As will be defined in the cash collateral
order.
	 
	3	 	For the purposes hereof, “Excess Cash” shall
mean any cash in excess of $3 million on the Debtors’ balance sheet after
payment and distribution of all amounts to be paid or distributed under the
Prearranged Plan, which such monetary threshold may be increased by the consent
of the Requisite Consenting Lenders.

 

 

reason, the Parties each fully reserve any and all of their respective rights, remedies,
claims, and interests.

          (c) Notices. All demands, notices, requests, consents, and communications hereunder
shall be in writing and shall be deemed to have been duly given if delivered personally or by
courier service, messenger, facsimile, telecopy, or if duly deposited in the mails, by certified or
registered mail, postage prepaid-return receipt requested, and shall be deemed to have been duly
given or made: (i) upon delivery, if delivered personally or by courier service, or messenger, in
each case with record of receipt; (ii) upon transmission with confirmed delivery, if sent by
facsimile or telecopy; or (iii) when received after being sent by certified or registered mail,
postage pre-paid, return receipt requested, to the following addresses, or such other addresses as
may be furnished hereafter by notice in writing, to the following Parties:

If to the Company:

Regent Communications, Inc.

100 East River Center, 9th Floor

Covington, KY 41011

Facsimile: (859) 814-0136

Attn: Tony Vasconcellos (Tony.Vasconcellos@RegentComm.com)

with copies (which shall not constitute notice) to:

Latham & Watkins LLP

233 S. Wacker Drive, Suite 5800

Chicago, Illinois 60606

Facsimile: 312-993-9767

Attn: Josef S. Athanas (josef.athanas@lw.com)

         William P. O’Neill (william.o’neill@lw.com)

If to a Consenting Lender or a transferee thereof:

To the addresses or facsimile numbers set forth below following the

Consenting Lender’s signature (or as directed in writing by any transferee

thereof),

with copies (which shall not constitute notice) to:

Kirkland & Ellis, LLP

300 North LaSalle Street

Chicago, IL 60654

Facsimile: (312) 862-2200

Attn: David L. Eaton, Esq. (david.eaton@kirkland.com)

         Christopher J. Greeno, P.C. (cgreeno@kirkland.com)

and

 

 

Oaktree Capital Management, L.P.

333 S. Grand Avenue, 28th Floor

Los Angeles, CA 90071

Facsimile: (213) 830-6377

Attn: Andrew Salter (asalter@oaktreecapital.com)

         David Quick (dquick@oaktreecapital.com)

          (d) Complete Agreement. This Agreement, the Term Sheet and any and all side letters
executed by the Parties in connection herewith constitute the full and complete understanding and
agreement among the Parties with regard to the subject matter hereof and supersedes all prior
agreements, understandings, or representations by or among the Parties, written or oral, which may
have related to the subject matter hereof in any way.

          (e) Interpretation of this Agreement. This Agreement is the product of negotiation by
and among the Parties. Any Party enforcing or interpreting this Agreement shall interpret in a
neutral manner. There shall be no presumption concerning whether to interpret this Agreement for
or against any Party by reason of that Party having drafted this Agreement, or any portion thereof,
or caused it or any portion thereof to be drafted.

          (f) Headings. The headings of the paragraphs and subparagraphs of this Agreement are
inserted for convenience only and shall not affect the interpretation hereof.

          (g) Successors and Assigns. This Agreement is intended to bind and inure to the
benefit of the Parties and their respective permitted successors and assigns provided,
however, that nothing contained in this paragraph shall be deemed to permit sales,
assignments, or transfers that would otherwise not be in accordance with this Agreement.

          (h) Specific Performance. Each Party hereto recognizes and acknowledges that a breach
by it of any covenants or agreements contained in this Agreement may cause the other Parties to
sustain damages for which such other Parties would not have an adequate remedy at law for money
damages, and therefore, each Party hereto agrees that in the event of any such breach, such other
parties shall be entitled to seek the remedy of specific performance of such covenants and
agreements and injunctive and other equitable relief in addition to any other remedy to which such
parties may be entitled, at law or in equity.

          (i) Several, Not Joint, Obligations. The agreements, representations, and obligations
of the Parties under this Agreement are, in all respects, several and not joint.

          (j) Remedies Cumulative. All rights, powers, and remedies provided under this
Agreement or otherwise available in respect hereof at law or in equity shall be cumulative and not
alternative, and the exercise of any right, power, or remedy thereof by any Party shall not
preclude the simultaneous or later exercise of any other such right, power, or remedy by such
Party.

          (k) No Waiver. The failure of any Party hereto to exercise any right, power, or
remedy provided under this Agreement or otherwise available in respect hereof at law or in

 

 

equity, or to insist upon compliance by any other Party hereto with its obligations hereunder,
and any custom or practice of the parties at variance with the terms hereof, shall not constitute a
waiver by such Party of its right to exercise any such or other right, power, or remedy or to
demand such compliance.

          (l) Reservation of Rights. Except as expressly provided in this Agreement, nothing
herein is intended to, does or shall be deemed in any manner to waiver, limit, impair or restrict
the ability of each of the Consenting Lenders to protect and preserve its rights, remedies and
interests, including any such rights and remedies relating to defaults or other events that may
have occurred prior to the execution of this Agreement, any and all of its claims and causes of
action against any of the Debtors or any third parties, or its full participation in the Chapter 11
Cases. Without limiting the foregoing in any way, if the transactions contemplated by this
Agreement are not consummated as provided herein or if this Agreement is otherwise terminated for
any reason, the Parties each fully reserve any and all of their respective rights, remedies and
interests under the Credit Agreement, applicable law and in equity.

          (m) Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original and all of which shall constitute one and the same Agreement.
Delivery of an executed signature page of this Agreement by facsimile or email shall be as
effective as delivery of a manually executed signature page of this Agreement.

          (n) Severability. Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof or affecting
the validity or enforceability of such provision in any other jurisdiction, and any such prohibited
or unenforceable provision shall be deemed reformed and construed so that it will be valid, legal,
and enforceable and not prohibited to the maximum extent permitted by applicable law.

          (o) No Third-Party Beneficiaries. Unless expressly stated herein, this Agreement
shall be solely for the benefit of the Parties, and no other person or entity shall be a third
party beneficiary hereof.

          (p) No Solicitation.

               (1) This Agreement is not intended to be, and each signatory to this Agreement acknowledges
that this Agreement is not, whether for the purposes of sections 1125 and 1126 of the Bankruptcy
Code or otherwise, a solicitation for the acceptance or rejection of a plan of reorganization for
any of the Debtors.

               (2) This Agreement is not an offer with respect to any securities, and such offers or
solicitation, if necessary to effectuate the Restructuring, will be made only in compliance with
all applicable securities laws.

          (q) Settlement Discussions. This Agreement and the Restructuring are part of a
proposed settlement of a dispute among the Parties. Nothing herein shall be deemed an admission of
any kind. Pursuant to Federal Rule of Evidence 408 and any applicable state rules of evidence,
this Agreement and all negotiations relating thereto shall not be admissible into

 

 

evidence in any proceeding other than a proceeding involving enforcement of the terms of this
Agreement.

          (r) Consideration. It is hereby acknowledged by the Parties hereto that, other than
the agreements, covenants, representations, and warranties set forth herein, no consideration shall
be due or paid to any Consenting Lender for its entry into this Agreement.

          (s) Receipt of Adequate Information; Representation by Counsel. Each Party
acknowledges that it has received adequate information to enter into this Agreement and that it has
been represented by counsel in connection with this Agreement and the transactions contemplated by
this Agreement. Accordingly, any rule of law or any legal decision that would provide any party
with a defense to the enforcement of the terms of this Agreement against such party shall have no
application and is expressly waived. The provisions of the Agreement shall be interpreted in a
reasonable manner to effect the intent of the Parties.

          (t) Time of the Essence. Time is of the essence with respect to all provisions of
this Agreement that specify a time for performance.

[Signature Page Follows]

 

 

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

	 	 	 	 	 
	 

	 	By: REGENT COMMUNICATIONS, INC.	 	 
	 
	 	 	 	 
	 

	 	 

Name: Anthony A. Vasconcellos
	 	 
	 

	 	Title: Executive Vice President and Chief	 	 
	 

	 	Financial Officer	 	 
	 
	 	 	 	 
	 

	 	On behalf of the other Debtors listed on Schedule 1	 	 
	 

	 	hereto: Authorized Signatory	 	 

 

 

Schedule I

Regent Communications, Inc.

B & G Broadcasting, Inc.

Livingston County Broadcasters, Inc.

Regent Broadcasting, LLC

Regent Broadcasting Management, LLC

Regent Broadcasting of Albany, Inc.

Regent Broadcasting of Bloomington, Inc.

Regent Broadcasting of Buffalo, Inc.

Regent Broadcasting of Chico, Inc.

Regent Broadcasting of Duluth, Inc.

Regent Broadcasting of El Paso, Inc.

Regent Broadcasting of Erie, Inc.

Regent Broadcasting of Evansville/Owensboro, Inc.

Regent Broadcasting of Flagstaff, Inc.

Regent Broadcasting of Flint, Inc.

Regent Broadcasting of Ft. Collins, Inc.

Regent Broadcasting of Grand Rapids, Inc.

Regent Broadcasting of Kingman, Inc.

Regent Broadcasting of Lafayette, LLC

Regent Broadcasting of Lake Tahoe, Inc.

Regent Broadcasting of Lancaster, Inc.

Regent Broadcasting of Lexington, Inc.

Regent Broadcasting of Mansfield, Inc.

Regent Broadcasting of Midwest, LLC

Regent Broadcasting of Palmdale, Inc.

Regent Broadcasting of Peoria, Inc.

Regent Broadcasting of Redding, Inc.

Regent Broadcasting of San Diego, Inc.

Regent Broadcasting of South Carolina, Inc.

Regent Broadcasting of St. Cloud, Inc.

Regent Broadcasting of St. Cloud II, Inc.

Regent Broadcasting of Utica/Rome, Inc.

Regent Broadcasting of Watertown, Inc.

Regent Broadcasting West Coast, LLC

Regent Licensee of Chico, Inc.

Regent Licensee of Erie, Inc.

Regent Licensee of Flagstaff, Inc.

Regent Licensee of Kingman, Inc.

Regent Licensee of Lake Tahoe, Inc.

Regent Licensee of Lexington, Inc.

Regent Licensee of Mansfield, Inc.

Regent Licensee of Palmdale, Inc.

Regent Licensee of Redding, Inc.

Regent Licensee of San Diego, Inc.

Regent Licensee of South Carolina, Inc.

Regent Licensee of St. Cloud, Inc.

Regent Licensee of Utica/Rome, Inc.

Regent Licensee of Watertown, Inc.

 

 

	 	 	 	 	 	 	 
	 	 	General Electric Capital Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Charles Vandis
	 	 
	 

	 	Title:
	 	Duly Authorized Signatory	 	 

 

 

	 	 	 	 	 	 	 
	 	 	First Street Holdings 3, L.P.	 	 
	 	 	By: POF4 GP, LLC, general partner	 	 
	 	 	By: Oaktree Capital Management, L.P., managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	First Street Holdings 4, L.P.	 	 
	 	 	By: POF4 GP, LLC, general partner	 	 
	 	 	By: Oaktree Capital Management, L.P., managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	First Street Holdings 5, L.P.	 	 
	 	 	By: POF4 GP, LLC, general partner	 	 
	 	 	By: Oaktree Capital Management, L.P., managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

 

 

	 	 	 	 	 	 	 
	 	 	First Street Holdings 6, L.P.	 	 
	 	 	By: POF4 GP, LLC, general partner	 	 
	 	 	By: Oaktree Capital Management, L.P., managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	First Street Holdings 7, L.P.	 	 
	 	 	By: POF4 GP, LLC, general partner	 	 
	 	 	By: Oaktree Capital Management, L.P., managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	First Street Holdings 8, L.P.	 	 
	 	 	By: POF4 GP, LLC, general partner	 	 
	 	 	By: Oaktree Capital Management, L.P., managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

 

 

	 	 	 	 	 	 	 
	 	 	First Street Holdings 9, L.P.	 	 
	 	 	By: POF4 GP, LLC, general partner	 	 
	 	 	By: Oaktree Capital Management, L.P., managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	First Street Holdings 10, L.P.	 	 
	 	 	By: POF4 GP, LLC, general partner	 	 
	 	 	By: Oaktree Capital Management, L.P., managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	First Street Holdings 11, L.P.	 	 
	 	 	By: POF4 GP, LLC, general partner	 	 
	 	 	By: Oaktree Capital Management, L.P., managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

 

 

	 	 	 	 	 	 	 
	 	 	First Street Holdings 12, L.P.	 	 
	 	 	By: POF4 GP, LLC, general partner	 	 
	 	 	By: Oaktree Capital Management, L.P., managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	First Street Holdings 13, L.P.	 	 
	 	 	By: POF4 GP, LLC, general partner	 	 
	 	 	By: Oaktree Capital Management, L.P., managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	First Street Holdings 14, L.P.	 	 
	 	 	By: POF4 GP, LLC, general partner	 	 
	 	 	By: Oaktree Capital Management, L.P., managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

 

 

Exhibit A

Restructuring Term Sheet

February 28, 2010

THIS TERM SHEET (THE “TERM SHEET”) DOES NOT CONSTITUTE (NOR SHALL IT BE CONSTRUED AS) AN
OFFER WITH RESPECT TO ANY SECURITIES OR A SOLICITATION OF ACCEPTANCES OR REJECTIONS AS TO ANY PLAN
OF REORGANIZATION, IT BEING UNDERSTOOD THAT SUCH A SOLICITATION, IF ANY, ONLY WILL BE MADE IN
COMPLIANCE WITH APPLICABLE PROVISIONS OF SECURITIES, BANKRUPTCY AND/OR OTHER APPLICABLE LAWS. THIS
TERM SHEET DOES NOT ADDRESS ALL MATERIAL TERMS AND CONDITIONS THAT WOULD BE REQUIRED IN CONNECTION
WITH ANY POTENTIAL FINANCIAL RESTRUCTURING AND IS SUBJECT TO THE EXECUTION OF DEFINITIVE
DOCUMENTATION IN FORM AND SUBSTANCE CONSISTENT WITH THIS TERM SHEET AND OTHERWISE ACCEPTABLE IN ALL
RESPECTS TO THE REQUISITE CONSENTING LENDERS (AS DEFINED IN THE RESTRUCTURING SUPPORT AGREEMENT TO
WHICH THIS TERM SHEET IS ATTACHED) AND THE DEBTORS (AS DEFINED IN THE RESTRUCTURING SUPPORT
AGREEMENT TO WHICH THIS TERM SHEET IS ATTACHED).

This Term Sheet sets forth the principal terms of a proposed financial restructuring (the
“Restructuring”) for the existing debt and other obligations of the Companies through a
prearranged plan of reorganization of the Companies (a “Plan”) containing the terms and
conditions described herein and other standard and customary provisions, including without
limitation provisions concerning “pass-through” treatment for administrative and priority claims,
trade payables and leases.

All capitalized terms used herein but not otherwise defined herein shall have the meanings ascribed
to them in the Credit Agreement.

 

 

General Restructuring Terms

	 	 	 
	Credit Agreement:

	 	The Credit Agreement dated November 21, 2006,
among Parent, Borrower, Bank of America, N.A.
(“BofA”) as administrative agent (“Administrative
Agent”), BofA as issuing lender (“Issuing
Lender”) and the other entities party thereto as
lenders (“Lenders”), as heretofore amended.
	 
	 	 
	Specified Swap Agreements:

	 	The swap agreements currently outstanding with
Lender Counterparties representing approximately
$12.1 million of liabilities owed by Borrower.
All obligations under the Specified Swap
Agreements are referred to herein as the
“Specified Swap Obligations”.
	 
	 	 
	Lender Counterparties:

	 	BofA, Suntrust, Bank of Montreal and their
respective successors and permitted assigns.
	 
	 	 
	Parent:

	 	Regent Communications, Inc.
	 
	 	 
	Borrower:

	 	Regent Broadcasting, LLC
	 
	 	 
	Companies:

	 	Parent, Borrower and all subsidiaries of Borrower.
	 
	 	 
	Reorganized Parent:

	 	Parent as reorganized in connection with the
Restructuring, a successor thereto or a newly
formed company to be formed for the purpose of
owning the Companies.
	 
	 	 
	Reorganized Borrower:

	 	Borrower as reorganized in connection with the
Restructuring or a successor thereto.
	 
	 	 
	New Equity:

	 	100% of all equity of Reorganized Parent as of
the effective date of the Plan (the “Effective
Date”). The New Equity will be structured in a
manner reasonably acceptable to the Requisite
Consenting Lenders (as defined in the
Restructuring Support Agreement), including
(without limitation) limitations on certain
fundamental actions, and so as to ensure, by way
of limited voting rights, that the holders
thereof (other than Oaktree Capital Management,
L.P. and its controlled affiliates (collectively,
“Oaktree”)) will
hold a “nonattributable” interest in the
Companies under applicable FCC rules and
policies. In addition, to the extent any
Consenting Lender’s direct or indirect owners
include entities or persons which would be
included in the calculation of foreign ownership
for purposes of Section 310(b) of the
Communications Act of 1934, as amended, and the
FCC’s rules and policies
promulgated thereunder, such Consenting Lender
may, if requested by Oaktree, be required to
receive a warrant for New Equity in lieu of New
Equity in order to satisfy FCC foreign ownership
limitations. Finally, the
Reorganized Parent and the holders of the New
Equity will be required to enter into definitive
investment agreements providing for, subject to
customary exceptions, tag-along rights on
transfers by 

 

 

	 	 	 
	 

	 	Oaktree, preemptive rights on equity
issuances (subject to certain exceptions
reasonably acceptable to the Requisite Consenting
Lenders), demand and piggyback registration
rights and transfer restrictions, as well as
drag-along provisions in favor of Oaktree, in
each case in form and substance reasonably
acceptable to the Requisite Consenting Lenders.
	 
	 	 
	Restructuring:

	 	The Commitments under the Credit Agreement will
be terminated. All Obligations (as defined in the
Credit Agreement), including all Loans under the
Credit Agreement and the Specified Swap
Obligations, will be exchanged for the following,
allocated among the applicable Secured Parties on
a pro rata basis:
	 
	 	 
	 

	 	•   $95 million of Senior Secured Term Loans
incurred by Reorganized Borrower on substantially
the terms set forth below,

	 
	 	 
	 

	 	•   $25 million of PIK Loans incurred by
Reorganized Borrower on substantially the terms
set forth below, and

	 
	 	 
	 

	 	•   100% of the New Equity issued by
Reorganized Parent, which will be subject to
dilution by the Management Equity Incentive
Program described below and future
post-Restructuring issuances.

	 
	 	 
	Unsecured Claims:

	 	The Lenders shall waive their deficiency claims
against the Debtors. All other unsecured claims
shall be paid in full in cash on or prior to the
Effective Date.
	 
	 	 
	Existing Equity:

	 	The Plan shall provide that the Secured Parties
will make a gift of, or allow the Companies to
distribute from the Secured Parties’ collateral,
$5.5 million to the current shareholders of
Parent on a pro rata basis. Upon distribution of
such amount, the outstanding shares of Parent
will be cancelled.
	 
	 	 
	Compensation Plans:

	 	The Plan shall provide that the Companies assume
the (i) existing employment agreements of Anthony
A. Vasconcellos and William L. Stakelin, as
amended on February 28, 2010 (the “Employment
Agreements”), (ii) 2004 Corporate Employee
Retention and Severance Plan, (iii) 2010 Special
Bonus Plan with bankruptcy incentives as adopted
by the board in December 2009, and (iv) Regent
Communications, Inc. Deferred Compensation Plan.
	 
	 	 
	Management Equity Incentive 

Program:

	 	Options, equity or other equity-based grants
equal to 8% of the total New Equity on a fully
diluted basis will be reserved for a management
equity incentive plan, the specific terms of
which will be determined by the board of
Reorganized Parent.

 

 

	 	 	 
	Executory Contracts and Unexpired
Leases:

	 	Executory contracts and unexpired leases shall be
assumed or rejected pursuant to a schedule to be
attached to the Plan Supplement, which shall be
acceptable in all respects to the Requisite
Consenting Lenders in their sole discretion,
including any amendments prior to the Effective
Date.
	 
	 	 
	Private Company:

	 	The Reorganized Parent would not be listed on a
national securities exchange or be an
SEC-reporting company.
	 
	 	 
	Releases:

	 	To the extent allowable by law, the Plan will
contain customary releases and other exculpatory
provisions in favor of (i) the Company, its
present directors, officers and professional
advisors and (ii) the Consenting Lenders, their
respective directors, officers, partners,
members, representatives, employees, professional
advisors and other parties to be agreed upon by
the Borrower and the Requisite Consenting
Lenders.
	 
	 	 
	Expense Reimbursement:

	 	All reasonable and documented out-of-pocket
expenses of the Requisite Consenting Lenders,
their counsel (including but not limited to,
Kirkland & Ellis LLP, Drinker Biddle & Reath LLP
and Finn Dixon & Herling LLP) and their financial
advisor shall be paid in full in cash.

 

 

Terms of Senior Secured Term Loans

	 	 	 
	Principal Amount:

	 	$95 million
	 
	 	 
	Agent:

	 	To be determined.
	 
	 	 
	Maturity Date:

	 	4 years from the Effective Date.
	 
	 	 
	Rate:

	 	One-month LIBOR plus 4.0% and, upon
an event of default, increased to
one-month LIBOR plus 6.0%; provided
that, in each case, there shall be a
LIBOR floor of 1.25%.
	 
	 	 
	Guarantors:

	 	A newly formed holding company of
Reorganized Borrower which is 100%
owned by Reorganized Parent and all
subsidiaries of Reorganized Borrower.
	 
	 	 
	Collateral:

	 	Subject to the New Revolving Loans
(as defined below), first priority
perfected security interest on all
personal and real property of
Reorganized Borrower and Guarantors,
subject to exceptions to be agreed
and limitations and qualifications
relating to FCC licenses to be
agreed, in each case by the
Reorganized Borrower and the
Requisite Consenting Lenders.
	 
	 	 
	Voluntary Prepayments:

	 	Voluntary prepayments shall be
permitted without premium or penalty
subject to customary thresholds and
notice requirements.
	 
	 	 
	Mandatory Repayments:

	 	•    1% amortization per annum of
the Principal Amount with remainder
payable in full on the Maturity Date

	 
	 	 
	 

	 	•     Semi-Annual payment of 50% of
excess cash flow, with definition to
be agreed upon by the Reorganized
Borrower and the Requisite Consenting
Lenders

	 
	 	 
	 

	 	•     Mandatory repayment from
asset sale proceeds subject to
exceptions and permitted reinvestment
to be agreed upon by the Reorganized
Borrower and the Requisite Consenting
Lenders

	 
	 	 
	Financial Covenants:

	 	Beginning on December 31, 2010 (for
the immediately preceding quarter),
quarterly financial covenants to be
agreed upon by the Reorganized
Borrower and the Requisite Consenting
Lenders.
	 
	 	 
	Representations & Warranties,
Covenants & Events of
Default:

	 	Representations and warranties,
affirmative and negative covenants,
and events of default to be customary
for transactions of this type,
subject to mutual agreement of the
Reorganized Borrower and the
Requisite Consenting Lenders.
	 
	 	 
	Expense Reimbursement &
Indemnification:

	 	Expense reimbursement and
indemnification in favor of Agent,
lenders and their related parties on
terms customary for transactions of
this type, subject to mutual
agreement of the Reorganized Borrower
and the Requisite Consenting Lenders.

 

 

Terms of PIK Loans

	 	 	 
	Principal Amount:

	 	$25 million
	 
	 	 
	Notes Agent:

	 	To be determined by the Requisite Consenting Lenders.
	 
	 	 
	Maturity Date:

	 	4 years and 6 months from the Effective Date.
	 
	 	 
	Rate:

	 	12% payable in kind on a quarterly basis.
	 
	 	 
	Ranking:

	 	Unsecured debt, subordinated to the Senior Secured Term Loans.
	 
	 	 
	Representations &
Warranties, Covenants,
Events of Default and
Other provisions:

	 	Representations and warranties, affirmative and negative
covenants, events of default and other terms to be customary
for transactions of this type, subject to mutual agreement of
the Reorganized Borrower and the Requisite Consenting
Lenders.

 

 

New Revolving Loans

	 	 	 
	Terms and Conditions:

	 	A revolving loan facility in the
aggregate principal amount of up to
$5,000,000, provided (a) the
Requisite Consenting Lenders have
approved such loans, (b) such loans
are secured by the same collateral
as the Senior Secured Term Loan and
with the same priority, and (c) such
loans are paid in full prior to the
repayment of the Senior Secured Term
Loan.

 

 

Exhibit B

PROVISION FOR TRANSFER AGREEMENT

The undersigned (“Transferee”) hereby acknowledges that it has read and understands the
Restructuring Support Agreement, dated as of February 28, 2010 (as amended or otherwise modified
from time to time in accordance with the terms thereof), by and among Regent Communications, Inc.,
a Delaware corporation, Regent Broadcasting, LLC, a Delaware limited liability company, [insert
name of Transferor Consenting Holder], and the other parties thereto, inter alia,
and agrees to be bound by the terms and conditions thereof to the extent Transferor was thereby
bound.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Transferee 	 
	 	 	 	 
	 

	 	 	 	 	 	 	 
	 	 	Acknowledged by	 	 
	 
	 	 	 	 	 	 
	 	 	Regent Communications, Inc.

on                                         , 2010	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Regent Broadcasting, LLC

on                                         , 2010	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:exv10wa

Exhibit 10.A

EL PASO CORPORATION

1995 COMPENSATION PLAN

FOR

NON-EMPLOYEE DIRECTORS

Amended and Restated Effective as of December 4, 2003

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	SECTION 1 PURPOSE
	 	 	1	 
	1.1 Purpose
	 	 	1	 
	 
	 	 	 	 
	SECTION 2 ADMINISTRATION
	 	 	1	 
	2.1 Management Committee
	 	 	1	 
	 
	 	 	 	 
	SECTION 3 PARTICIPATION
	 	 	1	 
	3.1 Participants
	 	 	1	 
	 
	 	 	 	 
	SECTION 4 DEFERRED COMPENSATION
	 	 	2	 
	4.1 Maximum Number of Shares
	 	 	2	 
	4.2 Adjustment to Number of Shares
	 	 	2	 
	 
	 	 	 	 
	SECTION 5 COMPENSATION
	 	 	2	 
	5.1 Amount of Compensation
	 	 	2	 
	5.2 Compensation Election
	 	 	2	 
	5.3 Plan Year
	 	 	3	 
	5.4 Plan Quarter
	 	 	3	 
	 
	 	 	 	 
	SECTION 6 DEFERRED COMPENSATION
	 	 	3	 
	6.1 Deferred Cash
	 	 	3	 
	6.2 Deferred Common Stock
	 	 	3	 
	6.3 Memorandum Deferred Account
	 	 	4	 
	6.4 Discretionary Investment by Company
	 	 	4	 
	6.5 Payment of Deferred Cash
	 	 	5	 
	6.6 Payment of Deferred Common Stock
	 	 	5	 
	6.7 Acceleration of Payment of Deferred Cash and
Deferred Common Stock
	 	 	6	 
	 
	 	 	 	 
	SECTION 7 LONG-TERM EQUITY
	 	 	7	 
	7.1 Long-Term Equity Credit
	 	 	7	 
	7.2 Payment of Deferred Common Stock in the Event of Death
	 	 	7	 
	 
	 	 	 	 
	SECTION 8 PHANTOM STOCK OPTIONS
	 	 	8	 
	8.1 Phantom Stock Options
	 	 	8	 
	 
	 	 	 	 
	SECTION 9 GENERAL PROVISIONS
	 	 	8	 
	9.1 Issuance of Common Stock
	 	 	8	 
	9.2 Unfunded Obligation
	 	 	9	 
	9.3 Beneficiary
	 	 	9	 
	9.4 Permanent Disability
	 	 	10	 
	9.5 Incapacity of Participant or Beneficiary
	 	 	10	 
	9.6 Nonassignment
	 	 	10	 
	9.7 Termination and Amendment
	 	 	11	 
	9.8 Applicable Law
	 	 	11	 
	9.9 Effective Date and Term of the Plan
	 	 	11	 

					
	 	 	 	 	 
	El Paso Corporation

1995 Compensation Plan for Non-Employee Directors
	 	i
	 	Table of Contents

 

 

	 	 	 	 	 
	9.10 Compliance With Section 16(b) of the Exchange Act
	 	 	11	 
	9.11 Impact of Future Legislation or Regulations
	 	 	12	 

					
	 	 	 	 	 
	El Paso Corporation

1995 Compensation Plan for Non-Employee Directors
	 	ii
	 	Table of Contents

 

 

EL PASO CORPORATION

1995 COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS

Amended and Restated Effective as of December 4, 2003

SECTION 1 PURPOSE

1.1 Purpose

     The name of the Plan shall be the El Paso Corporation 1995 Compensation Plan for Non-Employee
Directors, Amended and Restated Effective as of December 4, 2003 (the “Plan”). The purpose of the
Plan is to provide a compensation program for non-employee Directors of El Paso Corporation (the
“Company”), that will attract and retain highly qualified individuals to serve as members of the
Company’s Board of Directors (the “Board”). The Plan permits non-employee Directors of the Company
to receive their Compensation (as defined below) in the form of cash, deferred cash, deferred
shares of Company common stock, par value $3 per share, (“Common Stock”) or any combination of the
foregoing For purposes of the Plan, the term “Compensation” shall mean the Participant’s annual
retainer and meeting fees, if any, for each regular or special meeting and for any committee
meetings attended.

SECTION 2 ADMINISTRATION

2.1 Management Committee

     Subject to Section 9.7, the Plan shall be administered by a management committee (the
“Management Committee”) consisting of the Chief Executive Officer of the Company and such other
senior officers as the Chief Executive Officer shall designate. The Management Committee shall
interpret the Plan, shall prescribe, amend and rescind rules relating to it from time to time as it
deems proper and in the best interests of the Company, and shall take any other action necessary
for the administration of the Plan. Any decision or interpretation adopted by the Management
Committee shall be final and conclusive and shall be binding upon all Participants.

SECTION 3 PARTICIPATION

3.1 Participants

     Each person who is a non-employee Director of the Company on the Effective Date (as defined
below) of the Plan shall become a participant in the Plan (a “Participant”) on the
Effective Date. Thereafter, each non-employee Director of the Company shall become a Participant
immediately upon election to the Board.

			
	 	 	 
	El Paso Corporation 

1995 Compensation Plan for Non-Employee Directors
	 	Page 1

 

 

SECTION 4 DEFERRED COMPENSATION

4.1 Maximum Number of Shares

     Subject to Section 4.2, the maximum number of shares of Common Stock which may at any time be
awarded under the Plan is three hundred thousand (300,000) shares of Common Stock. Awards may be
from shares held in the Company’s treasury or issued out of authorized but unissued shares of the
Company, or partly out of each, as shall be determined by the Management Committee, subject to, and
reduced by (on a post-split basis), the number of shares of Common Stock awarded prior to the
occurrence of a two-for-one stock split effected by the Company in the form of a 100% stock
dividend on April 1, 1998.

4.2 Adjustment to Number of Shares

     In the event of recapitalization, stock split, stock dividend, exchange of shares, merger,
reorganization, change in corporate structure or shares of the Company or similar event, the Board,
upon recommendation of the Management Committee, may make appropriate adjustments to the number of
shares (i) authorized for the Plan, and (ii) allocated under the Common Stock Deferral (as defined
in Section 6.2).

SECTION 5 COMPENSATION

5.1 Amount of Compensation

     Each Director’s Compensation shall be determined in accordance with the Company’s By-laws and
shall be paid, unless deferred pursuant to Section 6, in the Plan Year (as defined below) in which
it is earned in four equal quarterly installments with each installment being made on or about the
last day of the applicable Plan Quarter (as defined below) (the “Payment Date”), unless otherwise
determined by the Management Committee.

5.2 Compensation Election

     Upon election to the Board and at the time of or prior to each annual stockholders’ meeting,
or at such other time as may be determined by the Management Committee for the purposes of
complying with applicable law, each Participant may elect to receive his or her Compensation for
the following Plan Year (as defined below) in the form of cash, deferred cash, deferred Common
Stock or any combination of the foregoing, by submitting a written notice to the Company in the
manner prescribed by the Management Committee. Any
combination of the alternatives may be elected, provided the aggregate of the alternatives elected
may not exceed one hundred percent (100%) of the Participant’s Compensation, except as provided in
Section 6.2(a). Unless otherwise provided under the terms of the Compensation, if no election is
received by the Company, the Participant shall be deemed to have made an election to receive his or her

			
	 	 	 
	El Paso Corporation 

1995 Compensation Plan for Non-Employee Directors
	 	Page 2

 

 

Compensation in undeferred cash. An election under this Section 5.2 shall be irrevocable and
shall apply to the Compensation earned during the Plan Year (as defined below) for which the
election is effective.

5.3 Plan Year

     The term “Plan Year” shall mean the period which begins on the day of the Company’s annual
stockholders’ meeting and terminates the day before the succeeding annual stockholders’ meeting.

5.4 Plan Quarter

     The term “Plan Quarter” shall mean each calendar quarter except that (i) the first Plan
Quarter of any Plan Year which normally shall be a “short” quarter beginning on the day of the
annual stockholders’ meeting and ending on June 30, and (ii) the fourth Plan Quarter of any Plan
Year normally shall be a “long” quarter beginning on January 1 and ending on the day before the
annual stockholders’ meeting.

SECTION 6 DEFERRED COMPENSATION

6.1 Deferred Cash

     If a Participant elects pursuant to Section 5.2 to have all or a specified percentage of his
or her Compensation deferred in cash, such amount (a “Cash Deferral”) shall be recorded in a
Memorandum Deferred Account (as defined below) until the Participant ceases to be a Director.
Compensation deferred under the Company’s Compensation Plan for Non-Employee Directors dated as of
January 1, 1992 shall be paid in accordance with the terms of that plan.

6.2 Deferred Common Stock

     (a) If a Participant elects pursuant to Section 5.2 to have all or a specified percentage of
his or her cash Compensation deferred in Common Stock, or if an amount is required to be taken in
Common Stock pursuant to Section 5.1, an amount shall be recorded in a Memorandum Deferred Account,
in the form of shares of Common Stock, as determined in subsection (b) below, until the Participant
ceases to be a Director. The amount credited to the Participant’s Memorandum Deferred Account in
such case (the “Common Stock Deferral”) shall be equal to the amount actually deferred plus a premium
(the “Conversion Premium”). The Conversion Premium shall be twenty-five percent (25%) of the Compensation actually deferred.

     (b) The number of shares of Common Stock credited to a Participant’s Memorandum Deferred
Account shall equal the Common Stock Deferral divided by the fair market value of the Common Stock
on the applicable Payment Date. For purposes of this Plan, “fair market value” shall be the mean
between the highest and lowest quoted

			
	 	 	 
	El Paso Corporation 

1995 Compensation Plan for Non-Employee Directors
	 	Page 3

 

 

selling prices at which the Common Stock is sold on the
applicable Payment Date as reported in the NYSE Composite Transactions by The Wall Street Journal
on such date or any other comparable service the Management Committee may determine is reliable, or
if no Common Stock was traded on such date, on the next preceding date on which Common Stock was so
traded.

     (c) Subject to Section 9.1, each Participant who elects deferred Common Stock shall, once the
shares of Common Stock have been credited to his or her Memorandum Deferred Account, have the right
to vote the shares and receive dividends (or dividend equivalents) and other distributions on such
shares, subject to applicable laws. Any such dividends, dividend equivalents and other
distributions shall be deemed reinvested promptly in additional shares of Common Stock and such
additional shares shall be credited to the Memorandum Deferred Account until the Memorandum
Deferred Account is distributed.

6.3 Memorandum Deferred Account

     The Company shall establish a ledger account (the “Memorandum Deferred Account”) for each
Participant for the purpose of recording the Company’s obligation to pay the Compensation as
provided in Sections 6.5 and 6.6, and for recording the Long-Term Equity Credit, described below.

     (a) Except as provided in Section 6.4, interest shall accrue on all Cash Deferrals to the date
of distribution and shall be credited to the Memorandum Deferred Account at the end of each
calendar quarter or such other periods as may be determined by the Management Committee. Interest
or earnings/losses, as applicable, shall be credited to the balance in each Participant’s
Memorandum Deferred Account on a semi-monthly basis or at such other intervals as may be determined
by the Management Committee. The Management Committee shall determine the rate of interest or
earnings/losses periodically and in so doing may take into account the earnings, losses,
appreciation or depreciation attributable to discretionary investments made pursuant to Section
6.4, and any other factors it deems appropriate.

     (b) The Company shall promptly credit each Participant’s Memorandum Deferred Account with the
number of shares of Common Stock calculated in accordance with Section 6.2(b) and (c).

6.4 Discretionary Investment by Company

     The deferred amounts to be paid to the Participants are unfunded obligations of the Company.
The Management Committee may direct that an amount equal to the deferred amount shall be invested
by the Company as the Management Committee, in its sole discretion, shall determine. The
Management Committee may in its sole discretion determine that all or some portion of an amount
equal to the Common Stock Deferrals and Cash Deferrals, and (where appropriate) interest thereon,
shall be paid into one or more grantor trusts to be established by the Company of which it shall be
the beneficiary,

			
	 	 	 
	El Paso Corporation 

1995 Compensation Plan for Non-Employee Directors
	 	Page 4

 

 

and to the assets of which it shall become entitled as and to the extent that
Participants receive benefits under the Plan. The Management Committee may designate an investment
advisor to direct investments and reinvestments of the funds, including investment of any grantor
trusts hereunder.

6.5 Payment of Deferred Cash

     When a Participant ceases to be a Director, the Company shall pay to the Participant (or the
Participant’s beneficiary in the case of the Participant’s death) an amount equal to the deferred
cash balance of his or her Memorandum Deferred Account, plus interest (at a rate determined
pursuant to Section 6.3) on the outstanding deferred cash account balance to the date of
distribution and subject to approval of the Management Committee, as follows:

	 	(a)	 	a lump sum cash payment, or
	 
	 	(b)	 	in periodic installments over a period of years as determined
at the time the deferral election is made.

Payment of deferred cash shall commence or be made in the month following the date on which a
Participant ceases to be a Director.

6.6 Payment of Deferred Common Stock

     Except as otherwise provided in Section 7.2, when a Participant ceases to be a Director, the
Company shall distribute Common Stock to the Participant (or the Participant’s beneficiary in the
case of the Participant’s death) in an amount equal to the number of whole shares of Common Stock
in a Participant’s Memorandum Deferred Account, subject to approval of the Management Committee, as
follows:

	 	(a)	 	a lump sum distribution, or
	 
	 	(b)	 	in annual installments over a period of years as determined
at the time the deferral election is made.

Any fractional shares of Common Stock held in the Participant’s account shall be paid to the
Participant (or the Participant’s beneficiary in the case of the Participant’s death) in a lump sum
cash payment based on the Common Stock’s fair market value on the day preceding the date of such
payment.

     Payment of deferred Common Stock shall commence in the month following the date on which a
Participant ceases to be a Director, or such later date as may be necessary to comply with Section
16(b) of the Exchange Act and rules promulgated thereunder.

			
	 	 	 
	El Paso Corporation 

1995 Compensation Plan for Non-Employee Directors
	 	Page 5

 

 

6.7 Acceleration of Payment of Deferred Cash and Deferred Common Stock

     (a) The Management Committee, in its discretion, may accelerate the payment of the unpaid
balance of a Participant’s Memorandum Deferred Account in the event of the Participant’s death or
Permanent Disability, or upon its determination that the Participant (or his or her Beneficiary in
the case of his or her death) has incurred a severe financial hardship. The Management Committee
in making its determination may consider such factors and require such information as it deems
appropriate.

     (b) All deferred cash and deferred Common Stock under this Plan shall be paid to a Participant
(or his or her Beneficiary in the case of his or her death) in the event of a Change in Control
within thirty (30) days after the date of the Change in Control, or at such later time as may be
required to enable the Director to avoid liability under Section 16(b) of the Exchange Act.
Notwithstanding the foregoing, no such deferred amounts shall be paid to a Participant who
continues to serve as a Director of the Company or its successor, until such time said deferrals
would otherwise be paid. For purposes of this Plan a “Change in Control” shall be deemed to occur:
(a) if any person (as such term is used in Sections 13(d) and 14(d)(2) of the Exchange Act) is or
becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or
indirectly, of securities of the Company representing twenty percent (20%) or more of the combined
voting power of the Company’s then outstanding securities; (b) upon the first purchase of the
Common Stock pursuant to a tender or exchange offer (other than a tender or exchange offer made by
the Company); (c) upon the approval by the Company’s stockholders of a merger or consolidation, a
sale, or disposition of all or substantially all the Company’s assets or a plan of liquidation or
dissolution of the Company; or (d) if, during any period of two (2) consecutive years, individuals
who at the beginning of such period constitute the Board cease for any reason to constitute at
least a majority thereof, unless the election or nomination for the election by the Company’s
stockholders of each new Director was approved by a vote of at least two-thirds (2/3) of the
Directors then still in office who were Directors at the beginning of the period.

     Notwithstanding the foregoing, a Change in Control shall not be deemed to occur if the Company
either merges or consolidates with or into another company or sells or disposes of all or
substantially all of its assets to another company, if such merger, consolidation, sale or
disposition is in connection with a corporate restructuring wherein the stockholders of the Company
immediately before such merger, consolidation, sale or disposition own, directly or indirectly,
immediately following such merger, consolidation, sale or disposition at least eighty
percent (80%) of the combined voting power of all outstanding classes of securities of the
company resulting from such merger or consolidation, or to which the Company sells or disposes of
its assets, in substantially the same proportion as their ownership in the Company immediately
before such merger, consolidation, sale or disposition.

			
	 	 	 
	El Paso Corporation 

1995 Compensation Plan for Non-Employee Directors
	 	Page 6

 

 

SECTION 7 LONG-TERM EQUITY

7.1 Long-Term Equity Credit

     (a) In addition to elective deferrals under Section 6.2(a), each Participant’s Memorandum
Deferred Account shall be credited on each Payment Date with an amount equal to one-fourth (1/4) of
the annual Compensation (the “Long-Term Equity Credit”). The Long-Term Equity Credit shall be in
the form of a Common Stock Deferral, but such credit shall not be entitled to the Conversion
Premium. Except for the absence of the Conversion Premium, the Long-Term Equity Credit shall be
treated the same as all other Common Stock Deferrals under this Plan.

     (b) Each Participant who was a member of the Board of Directors when the El Paso Natural Gas
Company Retirement Income Plan for Non-Employee Directors, Amended and Restated Effective as of
January 13, 1995 (the “Retirement Income Plan”) was terminated had his or her retirement benefit
under the Retirement Income Plan credited as a Common Stock Deferral (as set forth in Section 6.2)
in a Memorandum Deferred Account (the “Deferred Retirement Income Plan Credit”). The Deferred
Retirement Income Plan Credit shall not be entitled to a Conversion Premium and such Participant
shall not be entitled to any other benefit under the Retirement Income Plan. The number of shares
of Common Stock credited as the Deferred Retirement Income Plan Credit equaled the value of such
retirement benefit (as determined by the Management Committee), divided by the average of the fair
market value (as determined by Section 6.2(b)) of the Common Stock traded during the last twenty
business days preceding, and including, the date on which the Retirement Income Plan was
terminated. Except for the absence of the Conversion Premium, the shares credited under this
Section 7.1(b) shall be treated the same as all other Common Stock Deferrals under this Plan.

7.2 Payment of Deferred Common Stock in the Event of Death

     Notwithstanding any other provision of the Plan to the contrary, in the event of a
Participant’s death while such Participant is still a Director of the Company, such Participant’s
Beneficiary shall, with respect to amounts accrued under Section 7.1, be entitled to receive the
Deferred Common Stock (with any accrued shares as a result of dividend reinvestment and other
distributions attributable to such shares) in the Participant’s Memorandum Deferred Account which
were credited as a result of Section 7.1.

			
	 	 	 
	El Paso Corporation 

1995 Compensation Plan for Non-Employee Directors
	 	Page 7

 

 

SECTION 8 PHANTOM STOCK UNITS

8.1 Phantom Stock Units

     (a) Notwithstanding Section 5.2, the Management Committee may determine that the maximum
number of shares of Common Stock which may at any time be awarded pursuant to Section 4.1 of the
Plan (and, if appropriate, pursuant to Section 5.1 of the El Paso Corporation Strategic Stock Plan)
have been issued and phantom stock units which shall have an accounting value equal to the fair
market value of one (1) share of Common Stock (“PSUs”) shall be credited to the Participant’s
Memorandum Deferred Account for his or her Common Stock Deferral and/or Long-Term Equity Credit for
the Plan Year. The amount of PSUs credited to the Participant’s Memorandum Deferred Account for
his or her Common Stock Deferral shall include the Conversion Premium.

     (b) Each Participant who receives PSUs shall, once the PSUs have been credited to his or her
Memorandum Deferred Account, have the right to receive dividend equivalents and other distributions
on such PSUs, subject to applicable laws. Any such dividend equivalents and other distributions
shall be deemed reinvested promptly in additional PSUs and such additional PSUs shall be credited
to the Memorandum Deferred Account until the Memorandum Deferred Account is distributed.
Participants do not have the right to vote the PSUs.

     (c) PSUs shall be exchanged, on a pro rata basis, for an equivalent number of shares of
deferred Common Stock when, and if, additional shares of Common Stock become available under the
Plan or a successor plan. Such shares of deferred Common Stock shall be treated as all other
Common Stock Deferrals under the Plan. If no additional shares of Common Stock become available
under the Plan at the time of distribution of the PSUs to the Participant, an amount equal to the
PSU balance of the Participant’s Memorandum Deferred Account shall be paid to the Participant (or
the Participant’s beneficiary in the case of the Participant’s death) in a lump sum cash payment
based on the Common Stock’s fair market value (as defined in Section 6.2(b)) on the day preceding
the date of such payment. Payment of PSUs in cash shall be made in the month following the date on
which the Participant ceases to be a Director. PSUs credited to the Participant’s Memorandum
Deferred Account for the Participant’s Long-Term Equity Credit shall be subject to any additional
restrictions of such other Long-Term Equity Credits under the Plan.

SECTION 9 GENERAL PROVISIONS

9.1 Issuance of Common Stock

     The Company shall not be required to issue any certificate for shares of Common Stock prior
to:

			
	 	 	 
	El Paso Corporation 

1995 Compensation Plan for Non-Employee Directors
	 	Page 8

 

 

     (a) obtaining any approval or ruling from the Securities and Exchange Commission, the
Internal Revenue Service or any other governmental agency which the Company, in its sole
discretion, deems necessary or advisable;

     (b) listing the shares on any stock exchange on which the Common Stock may then be
listed; or

     (c) completing any registration or other qualification of such shares under any
federal or state laws, rulings or regulations of any governmental body which the Company,
in its sole discretion, determines to be necessary or advisable.

     All certificates for shares of Common Stock delivered under the Plan also shall be subject to
such stop transfer orders and other restrictions as the Management Committee may deem advisable
under the rules, regulations and other requirements of the Securities and Exchange Commission, any
stock exchange upon which Common Stock is then listed and any applicable federal or state
securities laws, and the Management Committee may cause a legend or legends to be placed on any
such certificates to make appropriate reference to such restrictions. The foregoing provisions of
this paragraph shall not be effective if and to the extent that the shares of Common Stock
delivered under the Plan are covered by an effective and current registration statement under the
Securities Act of 1933, as amended, or if and so long as the Management Committee determines that
application of such provisions is no longer required or desirable. In making such determination,
the Management Committee may rely upon an opinion of counsel for the Company.

9.2 Unfunded Obligation

     Any deferred amount to be paid to Participants pursuant to the Plan is an unfunded obligation
of the Company. The Company is not required to segregate any monies from its general funds, to
create any trusts, or to make any special deposits with respect to this obligation. Beneficial
ownership of any investments, including trust investments that the Company may make to fulfill this
obligation shall at all times remain in the Company. Any investments and the creation or
maintenance of any trust or memorandum accounts shall not create or constitute a trust or a
fiduciary relationship between the Management Committee or the Company and a Participant, or
otherwise create any vested or beneficial interest in any Participant or the Participant’s
Beneficiary or the Participant’s creditors in any assets of the Company whatsoever. The
Participants shall have no claim against the Company for any
changes in the value of any assets that may be invested or reinvested by the Company with respect
to the Plan.

9.3 Beneficiary

     The term “Beneficiary” shall mean the person or persons to whom payments are to be paid
pursuant to the terms of the Plan in the event of the Participant’s death. The designation shall
be on a form provided by the Management Committee, executed by the

			
	 	 	 
	El Paso Corporation 

1995 Compensation Plan for Non-Employee Directors
	 	Page 9

 

 

Participant, and delivered to
the Management Committee. A Participant may change his or her Beneficiary designation at any time.
A designation by a Participant under the El Paso Natural Gas Company Compensation Plan for
Non-Employee Directors dated January 1, 1992 shall remain in effect under this Plan unless it is
revoked or changed under this Plan. If no Beneficiary is designated, the designation is
ineffective, or in the event the Beneficiary dies before the balance of the Memorandum Deferred
Account is paid, the balance shall be paid to the Participant’s spouse, or if there is no surviving
spouse, to his or her lineal descendants, pro rata, or if there is no surviving spouse or lineal
descendants, to the Participant’s legal representatives, the Participant’s estate or the person or
persons to whom the deceased’s rights under the Plan shall have passed by will or the laws of
descent and distribution (unless the Management Committee for a given year has designated
investment in an annuity, in which case the payment options selected by the Participant with
respect thereto shall govern).

9.4 Permanent Disability

     A Participant shall be deemed to have become disabled for purposes of the Plan if the
Management Committee finds, upon the basis of medical evidence satisfactory to it, that the
Participant is totally disabled, whether due to physical or mental condition, so as to be prevented
from engaging in further service to the Company or any of its subsidiaries and that such disability
will be permanent and continuous during the remainder of the Participant’s life.

9.5 Incapacity of Participant or Beneficiary

     If the Management Committee finds that any Participant or Beneficiary to whom a payment is
payable under the Plan is unable to care for his or her affairs because of illness or accident or
is under a legal disability, any payment due (unless a prior claim therefor shall have been made by
a duly appointed legal representative), at the discretion of the Management Committee, may be paid
to the spouse, child, parent, brother or sister of such Participant or Beneficiary or to any person
whom the Management Committee has determined has incurred expense for such Participant or
Beneficiary. Any such payment shall be a complete discharge of the obligations of the Company
under the provisions of the Plan.

9.6 Nonassignment

     The right of a Participant or Beneficiary to the payment of any amounts under the Plan may not
be assigned, transferred, pledged or encumbered nor shall such right or other interest be subject
to attachment, garnishment, execution or other legal process, except that any right of a
Participant or Beneficiary to the payment of any amounts under the Plan may be waived, released or
otherwise relinquished by a Participant to enable such Participant to receive similar benefits
under another plan or program maintained by the Company.

9.7 Termination and Amendment

			
	 	 	 
	El Paso Corporation 

1995 Compensation Plan for Non-Employee Directors
	 	Page 10

 

 

     The Board may from time to time amend, suspend or terminate the Plan, in whole or in part, and
if the Plan is suspended or terminated, the Board may reinstate any or all of its provisions. No
amendment, suspension or termination may impair the right of a Participant or the Participant’s
designated Beneficiary to receive benefits accrued prior to the effective date of such amendment,
suspension or termination. The Management Committee may amend the Plan, without Board approval, to
ensure that the Company may obtain any regulatory approval or to accomplish any other reasonable
purpose, provided that the Management Committee may not effect a change that would materially
increase the cost of the Plan to the Company. Notwithstanding the foregoing, the Board and the
Management Committee may not amend the Plan without the approval of the stockholders of the Company
to: (i) materially increase the number of shares of Common Stock that may be issued under the
Plan, (ii) materially modify the eligibility for participation in the Plan, or (iii) otherwise
materially increase the benefits accruing to the Participants under the Plan.

9.8 Applicable Law

     The Plan shall be construed and governed in accordance with the laws of the State of Texas.

9.9 Effective Date and Term of the Plan

     The Plan was originally adopted by the Board effective as of January 13, 1995, and approved by
the Company’s stockholders on March 16, 1995. The Board amended and restated the Plan on December
2, 1997, to be effective for the 1998-1999 Plan Year (the “Effective Date”), except Section 7,
which is effective January 1, 1998. The Board amended and restated the Plan effective as of August
1, 1998, in connection with the reorganization of the Company into a holding company structure
whereby El Paso Corporation became the publicly held company and El Paso Natural Gas Company became
a wholly owned subsidiary. This Plan was assumed by El Paso Corporation pursuant to an Assignment
and Assumption Agreement effective as of August 1, 1998, by and between El Paso Corporation and El
Paso Natural Gas Company. The Board amended and restated the Plan effective as of January 29,
2002. The Board has amended and restated the Plan effective as of December 4, 2003. The Plan
shall terminate ten (10) years after the approval of the Plan by the stockholders of the Company.

9.10 Compliance With Section 16(b) of the Exchange Act

     The Company’s intention is that, so long as any of the Company’s equity securities are
registered pursuant to Section 12(b) or 12(g) of the Exchange Act, with respect to awards of Common
Stock, the Plan shall comply in all respects with any exemption pursuant to Section 16(b)
promulgated under Section 16 of the Exchange Act. If any Plan provision is later found not to be
in compliance with such exemptions available pursuant to Section 16(b) of the Exchange Act, that
provision shall be deemed modified as necessary to meet the requirements of Section 16(b).

			
	 	 	 
	El Paso Corporation 

1995 Compensation Plan for Non-Employee Directors
	 	Page 11

 

 

Section 9.11 Impact of Future Legislation or Regulations

     (a) This Section 9.11 shall become operative upon the enactment of any change in
applicable statutory law or the promulgation by the Secretary of the Treasury or the Internal
Revenue Service of a final regulation or other pronouncement having the force of law, which
statutory law, as changed, or final regulation or pronouncement, as promulgated, would cause any
Participant to include in his or her federal gross income amounts recorded to the Participant’s
Memorandum Deferred Account under the Plan on a date (an “Early Taxation Event”) prior to the date
on which such amounts are otherwise distributed to the Participant under the Plan.

     (b) Notwithstanding any other Section of this Plan to the contrary (but subject to
subsection (c), below), as of an Early Taxation Event, the feature or features of this Plan, or the
act or acts taken under the Plan, that would cause the Early Taxation Event shall be null and void,
to the extent, and only to the extent, required to prevent the Participant from being required to
include in his federal gross income amounts recorded to the Participant’s Memorandum Deferred
Account under the Plan prior to the date on which such amounts are required to be distributed to
the Participant under the Plan. By way of example, but not by way of limiting the generality of
the foregoing, if a statute is enacted that would require a Participant to include in his or her
federal gross income amounts recorded to a Participant’s Memorandum Deferred Account under the Plan
prior to the date on which such amounts are distributed to the Participant because of the
Participant’s right to receive a distribution under Section 6.7(a) or (b) of the Plan, the right of
all Participants to receive distributions under Section 6.7(a) or (b) shall be null and void as of
the effective date of that statute. If only a portion of a Participant’s Memorandum Deferred
Account is impacted by the change in the law, then only such portion shall be subject to this
Section 9.11, with the remainder of the Memorandum Deferred Account not so affected being subject
to such rights and features as if the law were not changed. If the law only impacts Participants
who have a certain status with respect to the Company, then only such Participants shall be subject
to this Section.

     (c) If a feature of, or act taken under the Plan, cannot be made null and void and,
consequently, the taxation of an amount at the Early Taxation Event cannot be avoided, there
shall be distributed to each Participant, as soon as practicable the amounts that became taxable on
the Early Taxation Event.

			
	 	 	 
	El Paso Corporation 

1995 Compensation Plan for Non-Employee Directors
	 	Page 12

 

 

     IN WITNESS WHEREOF, the Company has caused the Plan to be amended and restated effective as of
December 4, 2003.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	EL PASO CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By
	 	/s/ Susan B. Ortenstone
 

Senior Vice President
	 	 
	 

	 	 	 	 	 	 	 	Human Resources	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	/s/ David L. Siddall
 

Corporate Secretary
	 	 	 	 	 	 	 	 

			
	 	 	 
	El Paso Corporation 

1995 Compensation Plan for Non-Employee Directors
	 	Page 13

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