Document:

exv10w2

 

Exhibit 10.2

GUARANTEE

     FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in connection with
that certain funding agreement (the “Funding Agreement”), entered into by and between Principal
Life Insurance Company, an Iowa insurance company (“Principal Life”), and Principal Life Income
Fundings Trust 23, a New York common law trust (the “Trust”), relating to the notes (the “Notes”)
issued by the Trust, Principal Financial Group, Inc., a Delaware corporation and the indirect
parent company of Principal Life (the “Guarantor”), hereby furnishes to the Trust its full and
unconditional guarantee of the Guaranteed Amounts (as hereinafter defined) as follows:

     1. Guarantee.

               (a) The Guarantor hereby fully, irrevocably, absolutely and unconditionally guarantees, as a
guarantee of payment and not merely as a guarantee of collection, immediate payment when due to the
Trust any payments required to be made by Principal Life to the Trust under the Funding Agreement
which shall become due and payable regardless of whether such payment is due at maturity, on an
interest payment date or as a result of redemption or otherwise (the “Scheduled Payments”) but
shall be unpaid by Principal Life (the “Guaranteed Amounts”). Notwithstanding anything to the
contrary contained herein, in no event shall the Guaranteed Amounts exceed the Deposit (as defined
in the Funding Agreement) of the Funding Agreement, plus accrued but unpaid interest and any other
amounts due and owing under the Funding Agreement, less any amounts paid by Principal Life to the
Trust.

               (b) In the event that Principal Life fails to make a Scheduled Payment in full when due (the
“Payment Notice Date”), then the Trust or Citibank, N.A., as indenture trustee for the benefit of
the holders of the Notes (the “Indenture Trustee”), pursuant to the indenture (the “Indenture”)
between the Trust and the Indenture Trustee, may present the Guarantor with notice (each, a
“Payment Notice”) of such failure in writing on or after the Payment Notice Date. The Payment
Notice shall identify (1) the Funding Agreement, (2) the Trust, (3) the Payment Notice Date and (4)
the amount of the Scheduled Payments not paid by Principal Life to the Trust as of the Payment
Notice Date. Upon receipt of such Payment Notice, the Guarantor will immediately pay the
Guaranteed Amounts pursuant to Section 7.

               (c) In the event that, after receipt of a Payment Notice from the Trust, the Guarantor fails
to make immediate payment to the Trust or the Indenture Trustee of the Guaranteed Amounts, then
the Trust and the Indenture Trustee may enforce the obligations of the Guarantor under this
Guarantee, including by immediately bringing suit directly against the Guarantor (without first
bringing suit against Principal Life) for the Guaranteed Amounts not paid to the Trust as of the
Payment Notice Date.

               (d) This Guarantee is an unsecured, unsubordinated and contingent obligation of the Guarantor
and ranks equally with all other unsecured and unsubordinated obligations of the Guarantor.

1

 

               2. Termination. This Guarantee is a continuing and irrevocable guarantee of the
Guaranteed Amounts now or hereafter existing and shall terminate and be of no further force and
effect with respect to the Funding Agreement and the Notes upon the full payment of the Scheduled
Payments or upon the earlier extinguishment of the obligations of Principal Life under the Funding
Agreement.

               3. Amendments. Subject to the trust agreement relating to the Trust and the Indenture, no
provision of this Guarantee may be waived, amended, supplemented or modified, except by a written
instrument executed by the Trust and the Guarantor.

               4. Assignment; Governing Law. This Guarantee shall inure to the benefit of the Trust and its
successors, assigns and pledgees. This Guarantee shall be governed by, and construed in accordance
with, the laws of the State of New York without regard to conflict of law principles.

               5. Notices. All notices given pursuant to this Guarantee shall be in writing, and shall
either be delivered, mailed or telecopied to the locations listed below or at such other address or
to the attention of such other persons as such party shall have designated for such purpose in a
written notice complying as to delivery with the terms of this Section 5. Each such notice shall
be effective (i) if given by telecopy, when transmitted to the applicable number so specified in
this Section 5 (such notice shall also be sent by mail, with first class postage prepaid), (ii) if
given by mail, three days after deposit in the mails with first class postage prepaid, or (iii) if
given by any other means, when actually delivered at such address.

If to the Guarantor:

Principal Financial Group, Inc.

711 High Street

Des Moines, Iowa 50392

Attention: General Counsel

Telephone: (515) 247-5111

Facsimile: (515) 248-3011

With a copy to:

Principal Life Insurance Company

711 High Street

Des Moines, Iowa 50392

Attention: Jim Fifield

Telephone: (515) 248-9196

Facsimile: (866) 496-6527

If to the Trust:

Principal Life Income Fundings Trust (followed by the number of the Trust specified in this Guarantee)

2

 

c/o U.S. Bank Trust National Association

100 Wall Street, 16th Floor

New York, New York 10005

Attention: Thomas E. Tabor

Telephone: (212) 361-6184

Facsimile: (212) 809-5459

With a copy to:

Citibank, N.A.

Citibank Agency and Trust

388 Greenwich Street, 14th Floor

New York, New York 10013

Attention: Nancy Forte

Telephone: (212) 816-5685

Facsimile: (212) 816-5527

               6. Representations and Warranties. The Guarantor represents and warrants that: (i) it is duly
organized and in good standing under the laws of the jurisdiction of its organization and has full
capacity and right to make and perform this Guarantee, and all necessary authority has been
obtained; (ii) this Guarantee constitutes a legal, valid and binding obligation of the Guarantor
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency and similar
laws affecting creditors’ rights and general principles of equity, regardless of whether
enforcement is sought in a proceeding in equity or at law; (iii) the making and performance of this
Guarantee does not and will not violate the provisions of any applicable law, regulation or order,
and does not and will not result in the breach of, or constitute a default under, any material
agreement, instrument or document to which it is a party or by which it or any of its property may
be bound or affected, except to the extent disclosed in the registration statement registering the
issuance of this Guarantee and the Funding Agreement, as amended, supplemented or modified from
time to time (the “Registration Statement”), and to the extent that any such violation, breach or
default does not result in a material adverse effect on the Guarantor; and (iv) all consents,
approvals, licenses and authorizations of, and filings and registrations with, any governmental
authority required under applicable law and regulations for the making and performance of this
Guarantee have been obtained or made and are in full force and effect, except to the extent
disclosed in the Registration Statement and to the extent that the failure to acquire any such
consent, approval, license, authorization, filing or registration does not result in a material
adverse effect on the Guarantor.

               7. Notice of, and Consent to, Security Interest. The Trust hereby notifies the Guarantor that
it has granted to the Indenture Trustee, on behalf of the holders of the Notes, a security interest
in the Collateral (as defined in the Indenture), including, but not limited to, any and all payment
to be made by the Guarantor to the Trust under this Guarantee. The Trust hereby notifies the
Guarantor that it has collaterally assigned to the Indenture Trustee, for the benefit of the
holders of the Notes, this Guarantee. The Guarantor, by executing this Guarantee, hereby (i)
affirms that it has made or simultaneously will make changes to its books and records to reflect
such security interest and collateral assignment, (ii) consents to the security interest

3

 

granted, and collateral assignment made, by the Trust to the Indenture Trustee of this
Guarantee, (iii) agrees to make all payments due under this Guarantee to the Collection Account (as
defined in the Indenture) or any other account designated in writing to the Guarantor by the
Indenture Trustee and (iv) agrees to comply with all orders of the Indenture Trustee with respect
to this Guarantee without any further consent from the Trust.

               8. WAIVER OF JURY TRIAL; FINAL AGREEMENT. TO THE EXTENT ALLOWED BY APPLICABLE LAW, THE
GUARANTOR WAIVES TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING ON OR ARISING
OUT OF THIS GUARANTEE. THIS GUARANTEE REPRESENTS THE FINAL AGREEMENT BETWEEN THE GUARANTOR AND THE
TRUST AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS AMONG SUCH PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG SUCH PARTIES.

	 	 	 	 	 	 	 
	 	 	PRINCIPAL FINANCIAL GROUP, INC.
	 
	 	 
	 

	 	By:	 	/s/ JoEllen J. Watts 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	JoEllen J. Watts 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Counsel 	 	 
	 

	 	 	 	 	 	 
	 

	 	Date:
	 	The Effective Date (as defined in the Funding Agreement)	 	 

Acknowledged and Agreed:

THE PRINCIPAL LIFE INCOME FUNDINGS

TRUST DESIGNATED IN THIS GUARANTEE

	 	 	 	 
	By:

	 	U.S. Bank Trust National Association,
not in its individual capacity, but solely in its
capacity as trustee	 
	 
	 	 
	By:

	 	Bankers Trust Company, N.A.,
under Limited Power of Attorney, dated February 16, 2006
	 
	 	 
	By:
	 	/s/ Diana L. Cook
	 

	 	 
	 
	 	 
	Name:
	 	Diana L. Cook
	 

	 	 
	 
	 	 
	Title:
	 	Vice President
	 

	 	 
	 
	 	 
	Date:

	 	The Effective Date (as defined in the Funding Agreement)

4EX-10.16

 

Exhibit 10.16

CONSENT AND AMENDMENT NO. 2

dated as of September 14, 2006

          Reference is made to the First Lien Senior Secured Credit Agreement dated as of December 30,
2005 (as amended, amended and restated, supplemented or otherwise modified from time to time,
including by Consent and Amendment No. 1 dated May 19, 2006, the “Credit Agreement”; the terms
defined therein, unless otherwise defined herein, being used herein as therein defined) among
TRIPLE CROWN MEDIA, LLC, as borrower (the “Borrower”), TRIPLE CROWN MEDIA, INC., as parent and a
guarantor (the “Parent”), the subsidiary guarantors named therein, the several banks and other
financial institutions or entities from time to time party thereto, as lenders (the “Lenders”),
WACHOVIA BANK, NATIONAL ASSOCIATION, as Administrative Agent (in such capacity, the “Administrative
Agent”), WACHOVIA CAPITAL MARKETS, LLC and BANC OF AMERICA SECURITIES LLC, as Joint Bookrunners and
Joint Lead Arrangers, and BANK OF AMERICA, N.A., as Syndication Agent.

PRELIMINARY STATEMENTS:

          The Borrower, the Parent and the Required Lenders have agreed to amend and otherwise modify
the Credit Agreement, all on and subject to the terms of this Consent and Amendment No. 2.

          NOW, THEREFORE, it is hereby agreed, subject to the terms and conditions stated below,
effective as of the Amendment No. 2 Effective Date (as defined below) as follows:

          SECTION 1. Consents. (a) The Lenders hereby agree, and are deemed to consent, to the
amendments to the Second Lien Term Loan Facility, as set forth on Annex I hereto as set forth
therein.

          (b) The Lenders hereby consent to the acquisition of the Acquired Business (as defined in
Section 2 below) pursuant to the Acquired Business Purchase Agreement (as defined in Section 2
below) by the Parent, provided that (i) all of the requirements set forth in Section
5.02(f)(vii) applicable to an acquisition by the Borrower shall be complied with by the Parent with
respect to the acquisition of the Acquired Business, except that (A) total cash and noncash
consideration not to exceed $6,500,000 may be paid therefor on the Acquired Business Acquisition
Date (as defined in Section 2 below) (subject to working capital adjustments in accordance with the
Acquired Business Purchase Agreement) and future cash payments not exceeding in the aggregate 10%
of the net operating income of the Acquired Business may be paid as required pursuant to the
Acquired Business Purchase Agreement, (B) the line of business of the Acquired Business may be a
collegiate sports marketing business and (C) the Parent may provide the certificate required
pursuant to Section 5.02(f)(vii)(F) up to three Business Days prior to the Acquired Business
Acquisition Date, (ii) the Parent and the Borrower shall not enter into or permit any amendment
which would increase the consideration payable by the Parent or any other material amendment or
other material modification or supplement to the Acquired Business Acquisition Agreement without
the prior written consent of the Required Lenders, (iii) the acquisition of the Acquired Business
shall have been consummated in accordance with the material terms of the Acquired Business Purchase
Agreement and the Parent shall not have waived or modified any material condition to the closing of
the transactions contemplated by the Acquired Business Purchase Agreement, (iv) upon consummation
of the closing of the transactions contemplated by the Acquired Business Purchase Agreement, (A)
the Acquired Business shall have no Debt and (B) there shall be no Liens on any assets or
properties of the Acquired Business, other than Liens expressly permitted by the Loan Documents but
which are not Liens of the kind described in clause (k) of the definition of Permitted Liens unless
separately expressly permitted by another provision of the Loan Documents, and (v) after the
Acquired

 

 

2

Business Acquisition Date and upon a request made by the Administrative Agent, the Parent and
the Borrower shall cause all of the Equity Interests of the Acquired Business to be transferred
from the Parent to the Borrower pursuant to documentation reasonably acceptable to the
Administrative Agent provided, that such transfer shall not violate the terms or require any
consent under any material agreement to which the Acquired Business is a party as of the date
hereof.

          SECTION 2. Amendments to Credit Agreement. (a) Section 1.01 of the Credit Agreement
is hereby amended, for the period from and after the Amendment No. 2 Effective Date, by deleting
clause (b) contained in the definition of “Applicable Margin” in its entirety and substituting, in
lieu thereof, the following:

“and (b) in respect of the Term Facility, (i) 2.50% per annum for Base Rate Advances and
3.50% per annum for Eurodollar Rate Advances at all times when the ratings assigned by S&P
and Moody’s to the obligations of the Borrower under the Loan Documents are at least B and
B2, respectively, and (ii) 3.00% per annum for Base Rate Advances and 4.00% per annum for
Eurodollar Rate Advances at all times when the ratings assigned by S&P or Moody’s to the
obligations of the Borrower under the Loan Documents are less than or equal to B- or B3,
respectively or if such obligations are unrated by either S&P or Moody’s.”

          (b) Section 1.01 of the Credit Agreement is hereby further amended by adding in alphabetical
order the following defined terms and the corresponding definitions thereof:

     “‘Acquired Business’ means Pinnacle Sports Productions, LLC, a limited liability
company organized under the laws of the State of Nebraska.”

     “‘Acquired Business Acquisition Date’ means the “Closing Date” as defined in the
Acquired Business Purchase Agreement.”

     “‘Acquired Business Purchase Agreement’ means, collectively, (a) that certain Purchase
Agreement dated August 29, 2006, between Parent and Paul R. Aaron and (b) that certain
Purchase Agreement dated August 29, 2006, between Parent and Dale M. Jensen.”

          (c) Section 1.01 of the Credit Agreement is hereby further amended by deleting the text of
clause (y) of the definition of “Capital Expenditures” appearing therein in its entirety and
substituting, in lieu thereof, the following: “the capitalized portion of the purchase price
payable in connection with the acquisition of the Acquired Business or any Permitted Acquisition
shall not be included in Capital Expenditures.”

          (d) The definition of “EBITDA” contained in Section 1.01 of the Credit Agreement is hereby
amended by (i) deleting the word “and” immediately before clause (xi) thereof and substituting, in
lieu thereof, “ , ” and (ii) adding, immediately following the words “on or after the Closing Date”
in clause (xi) thereof, the following: “, (xii) certain non-recurring expenses in amounts and for
the periods as set forth on Schedule 1.1(a), (xiii) certain pro forma adjustments for the Acquired
Business in amounts and for the periods as set forth on Schedule 1.1(b), and (xiv) non-recurring
severance costs in an amount not to exceed $500,000”.

          (e) Section 1.01 of the Credit Agreement is hereby amended by deleting the text of clause (e)
of the definition of “Excluded Equity Issuances” appearing therein in its entirety and
substituting, in lieu thereof, the following: “any Equity Interest of the Parent issued in
accordance with the terms of the Acquired Business Purchase Agreement or in connection with a
Permitted Acquisition that is otherwise permitted hereunder.”

 

3

          (f) The definition of “Fixed Charge Coverage Ratio” contained in Section 1.01 of the Credit
Agreement is hereby amended by deleting the text of clause (iv) thereof in its entirety and
substituting, in lieu thereof, the following: “an amount equal to all Capital Expenditures made by
or on behalf of the Parent and its subsidiaries, excluding Capital Expenditures not to exceed
$3,200,000 in the aggregate incurred in connection with the termination of the operating leases
relating to the Heildelburg printing press and the University of Kentucky Scoreboards”.

          (g) Section 5.02(c) of the Credit Agreement is hereby amended by deleting the text thereof in
its entirety and substituting, in lieu thereof, the following:

“Make, or permit any of its Subsidiaries to make, any material change in the nature of its
business as carried on as of the Acquired Business Acquisition Date, provided that, in any
event, the Parent shall not engage in any business other than to own the Equity Interests of
the Borrower and, subject to the requirements of Consent and Amendment No. 2 to this
Agreement, of the Acquired Business.”

          (h) Section 5.02(q) of the Credit Agreement is hereby amended by deleting the text thereof in
its entirety and substituting, in lieu thereof, the following:

“Enter, or permit any of its Subsidiaries to enter, into any arrangement for the payment of,
or pay, brokers, management, advisory or similar fees, other than any such fees (i) to be
paid in an aggregate amount not to exceed $250,000 per annum pursuant to the terms of the
consulting agreements to be entered into in accordance with the terms of the Acquired
Business Purchase Agreement or (ii) incurred in the ordinary course of business or in
connection with a Permitted Acquisition, but in the case of this clause (ii), not in any
case to exceed $500,000 for the term of this Agreement.”

          (i) Section 5.04(a) of the Credit Agreement is hereby amended, for the period from and after
the Amendment No. 2 Effective Date, by deleting the chart appearing therein in its entirety and
substituting, in lieu thereof, the following chart, so that from and after the Amendment No. 2
Effective Date, such chart shall read in its entirety as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fiscal Quarter	 	March 31	 	 	June 30	 	 	September 30	 	 	December 31	 
	2006
	 	 	5.25 : 1.00	 	 	 	5.25 : 1.00	 	 	 	5.25 : 1.00	 	 	 	5.00 : 1.00	 
	2007
	 	 	5.00 : 1.00	 	 	 	5.00 : 1.00	 	 	 	5.00 : 1.00	 	 	 	4.50 : 1.00	 
	2008
	 	 	4.50 : 1.00	 	 	 	4.00 : 1.00	 	 	 	3.00 : 1.00	 	 	 	2.50 : 1.00	 
	2009
	 	 	2.50 : 1.00	 	 	 	2.00 : 1.00	 	 	 	2.00 : 1.00	 	 	 	2.00 : 1.00	 
	2010
	 	 	2.00 : 1.00	 	 	 	2.00 : 1.00	 	 	 	—	 	 	 	—	 

          (j) Section 5.04(b) of the Credit Agreement is hereby amended, for the period from and after
the Amendment No. 2 Effective Date, by deleting the chart appearing therein in its entirety and
substituting, in lieu thereof, the following chart, so that from and after the Amendment No. 2
Effective Date, such chart shall read in its entirety as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fiscal Quarter	 	March 31	 	 	June 30	 	 	September 30	 	 	December 31	 
	2006
	 	 	6.75 : 1.00	 	 	 	6.75 : 1.00	 	 	 	6.65 : 1.00	 	 	 	6.50 : 1.00	 

 

4

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fiscal Quarter	 	March 31	 	 	June 30	 	 	September 30	 	 	December 31	 
	2007
	 	 	6.50 : 1.00	 	 	 	6.50 : 1.00	 	 	 	6.00 : 1.00	 	 	 	6.00 : 1.00	 
	2008
	 	 	6.00 : 1.00	 	 	 	5.50 : 1.00	 	 	 	4.50 : 1.00	 	 	 	4.00 : 1.00	 
	2009
	 	 	4.00 : 1.00	 	 	 	3.50 : 1.00	 	 	 	3.50 : 1.00	 	 	 	3.50 : 1.00	 
	2010
	 	 	3.50 : 1.00	 	 	 	3.50 : 1.00	 	 	 	—	 	 	 	—	 

          (k) Section 5.04(d) of the Credit Agreement is hereby amended, for the period from and after
the Amendment No. 2 Effective Date, by deleting the chart appearing therein in its entirety and
substituting, in lieu thereof, the following chart, so that from and after the Amendment No. 2
Effective Date, such chart shall read in its entirety as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fiscal Quarter	 	March 31	 	 	June 30	 	 	September 30	 	 	December 31	 
	2006
	 	 	1.50 : 1.00	 	 	 	1.50 : 1.00	 	 	 	1.40 : 1.00	 	 	 	1.40 : 1.00	 
	2007
	 	 	1.40 : 1.00	 	 	 	1.40 : 1.00	 	 	 	1.50 : 1.00	 	 	 	1.65 : 1.00	 
	2008
	 	 	1.65 : 1.00	 	 	 	1.75 : 1.00	 	 	 	2.00 : 1.00	 	 	 	2.00 : 1.00	 
	2009
	 	 	2.50 : 1.00	 	 	 	2.50 : 1.00	 	 	 	2.50 : 1.00	 	 	 	2.50 : 1.00	 
	2010
	 	 	3.00 : 1.00	 	 	 	3.00 : 1.00	 	 	 	—	 	 	 	—	 

     (l) Concurrently with the satisfaction of the requirements of Section 5.01(i) of the Credit
Agreement, Schedule II of the Credit Agreement is hereby amended to include the Acquired Business.

     (m) Schedule 4.01(b) of the Credit Agreement is hereby amended, for the period from and after
the Acquired Business Acquisition Date, by appending to such schedule an entry as follows:

	 	 	 	 	 	 	 
	Pinnacle Sports Productions, LLC

	 	Nebraska
	 	None
	 	47-0796437

          (n) Schedule 4.01(c) of the Credit Agreement is hereby amended, for the period from and after
the Acquired Business Acquisition Date, by appending to such schedule an entry as follows:

	 	 	 	 	 	 	 	 	 	 	 	 
	Pinnacle Sports

Productions,

LLC

	 	Nebraska
	 	Limited
liability
company
interests
	 	All	 	100% owned

by Triple

Crown Media,

Inc.	 	None	 

          (o) Schedule 4.01(z)(1) of the Credit Agreement is hereby amended, for the period from and
after the Acquired Business Acquisition Date, by appending to such schedule two entries as follows:

 

5

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Village Square 

Investments, LLC

	 	Pinnacle Sports

Productions, LLC
	 	921 Village Square

Gretna, NE 68028
	 	Sarpy
	 	July 31, 2011
	 	$	124,200	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Village Square 

Investments, LLC

	 	Pinnacle Sports

Productions, LLC
	 	Storage Unit “J”
20136 T Gate Dancer
Street
Elkhorn, NE 68022
	 	Douglas
	 	—
	 	$	8,250	 

          (p) Schedule 4.01(bb) of the Credit Agreement is hereby amended, for the period from and after
the Acquired Business Acquisition Date, by appending to the table in Section I of such schedule an
entry as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	29.

	 	Pinnacle Sports

Productions, LLC
	 	Pinnacle Sports

Productions
	 	02/02/99
	 	Registered
	 	US
	 	 	75258122	 

          (q) Schedule 4.01(bb) of the Credit Agreement is hereby further amended by appending to the
table in Section II of such schedule three entries as follows:

	 	 	 
	Pinnacle Sports Productions, LLC

	 	PinnacleSportsNetwork.org
	Pinnacle Sports Productions, LLC

	 	PinnacleSportsNetwork.com
	Pinnacle Sports Productions, LLC

	 	PinnacleSportsNetwork.net

          (r) Schedule 4.01(cc) of the Credit Agreement is hereby amended, for the period from and after
the Acquired Business Acquisition Date, by appending to the list a heading for the Acquired
Business with an entry below such heading as follows:

“Exclusive License Agreement of Certain Media Rights, Including Live Radio Broadcast Rights
dated as of August 9, 2003 by and between the Board of Regents of the University of Nebraska
and Pinnacle Sports Productions, L.L.C.”

          (s) The Credit Agreement is hereby amended by adding as Schedules 1.1(a) and 1.1(b) thereto
Schedules I and II, respectively, attached to this Consent and Amendment No. 2.

 

6

          SECTION 3. Reference to and Effect on the Loan Documents. (a) On and after the
effectiveness of this Consent and Amendment No. 2, each reference in the Credit Agreement to “this
Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and
each reference in the Credit Agreement, the Notes and each of the other Loan Documents to “the
Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit
Agreement, shall mean and be a reference to the Credit Agreement, as amended by this Consent and
Amendment No. 2. This Consent and Amendment No. 2 constitutes a “Loan Document” as defined in the
Credit Agreement.

          (b) The Credit Agreement, the Notes and each of the other Loan Documents, as specifically
amended by this Consent and Amendment No. 2, are and shall continue to be in full force and effect
and are hereby in all respects ratified and confirmed.

          (c) The execution, delivery and effectiveness of this Consent and Amendment No. 2 shall not,
except as expressly provided herein, operate as a waiver of any right, power or remedy of any
“Lender” or the “Administrative Agent” under any of the Loan Documents, nor constitute a waiver of
any provision of any of the Loan Documents.

          SECTION 4. Conditions to Effectiveness. This Consent and Amendment No. 2 shall become
effective as of the date first above written when, and only when, the following conditions have
been satisfied (the “Amendment No. 2 Effective Date”):

          (a) Execution of Counterparts. The Administrative Agent shall have received (i)
counterparts of this Consent and Amendment No. 2 executed by the Borrower, the Parent and the
Required Lenders or, as to any of the Lenders, evidence satisfactory to the Administrative Agent
that such Lender has executed this Consent and Amendment No. 2, and (ii) the guarantor and grantor
consent attached hereto as Annex III (the “Consent”) executed by each Guarantor.

          (b) Payment of Fees and Expenses. The Borrower shall have paid (i) all out-of-pocket
expenses incurred by the Agents, including the reasonable fees, charges and disbursements of
Shearman & Sterling LLP as counsel for the Agents, in connection with this Consent and Amendment
No. 2 and for all services related to the Credit Agreement since the last invoice date with respect
thereto; (ii) for the benefit of each Lender executing this Consent and Amendment No. 2 on or
before 5:00 P.M. Eastern time on September 14, 2006, a fee equal to 0.25% of the total Commitments
of each such Lender; and (iii) any other fees payable to the Agents as agreed between the Agents
and the Borrower.

          SECTION 5. Representations and Warranties. The Borrower and Parent represent and
warrant as follows:

          (a) The representations and warranties contained in each Loan Document are true and correct in
all material respects on and as of the date of such certificate as though made on and as of such
date other than any such representations or warranties that, by their express terms, refer to a
specific date other than the date of such certificate; and

          (b) As of the date hereof, no Default has occurred and is continuing.

          SECTION 6. Governing Law. This Consent and Amendment No. 2 shall be governed by, and
construed in accordance with, the laws of the State of New York.

          SECTION 7. Execution in Counterparts. This Consent and Amendment No. 2 may be
executed in any number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of which taken together
shall constitute

 

7

one and the same agreement. Delivery of an executed counterpart of this Consent and Amendment
No. 2 by telecopier or in PDF format via electronic mail shall be effective as delivery of an
original executed counterpart of this Consent and Consent and Amendment No. 2.

          SECTION 8. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT
OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS CONSENT AND AMENDMENT NO. 2 OR ANY OF THE LOAN
DOCUMENTS OR THE ACTIONS OF ANY AGENT OR ANY LENDER PARTY IN THE NEGOTIATION, ADMINISTRATION,
PERFORMANCE OR ENFORCEMENT THEREOF.

[signature pages follow]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Consent and Amendment No. 2 to be executed
by their officers thereunto duly authorized as of the date specified thereon.

	 	 	 	 	 
	 	TRIPLE CROWN MEDIA, LLC, as Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	TRIPLE CROWN MEDIA, INC., as Parent and a Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent and Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	Required Lenders

Agreed as of the date first above written:

                                        , as a Lender

(Please print or type legal name)

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

Annex III

GUARANTOR CONSENT

          CONSENT, dated as of September 14, 2006 (this “Consent”), to the foregoing Consent and
Amendment No. 2 dated as of the date hereof (the “Amendment”) to the First Lien Senior Secured
Credit Agreement dated as of December 30, 2005 (as amended, amended and restated, supplemented or
otherwise modified from time to time, including by Consent and Amendment No. 1 dated May 19, 2006,
the “Credit Agreement”; the terms defined therein, unless otherwise defined herein, being used
herein as therein defined) among TRIPLE CROWN MEDIA, LLC, as borrower (the “Borrower”), TRIPLE
CROWN MEDIA, INC. as parent and a guarantor, the several banks and other financial institutions or
entities from time to time party thereto, as lenders (the “Lenders”), WACHOVIA BANK, NATIONAL
ASSOCIATION, as Administrative Agent, WACHOVIA CAPITAL MARKETS, LLC and BANC OF AMERICA SECURITIES
LLC, as Joint Bookrunners and Joint Lead Arrangers, and BANK OF AMERICA, N.A., as Syndication
Agent.

          Each of the undersigned, as a Guarantor under the Credit Agreement, and as a Grantor under the
Security Agreement, hereby consents to the foregoing Amendment and hereby confirms and agrees that
notwithstanding the effectiveness of such Amendment, the Credit Agreement, the Guaranties, the
Security Agreement and each Loan Document are, and shall continue to be, in full force and effect
and each is hereby ratified and confirmed in all respects, except that, on and after the
effectiveness of such Amendment, each reference in each Loan Document to the “Credit Agreement”,
“thereunder”, “thereof” or words of like import shall mean and be a reference to the Credit
Agreement, as amended by such Amendment.

[signature pages follow]

 

 

	 	 	 	 	 
	 	TRIPLE CROWN MEDIA, INC., as the Parent and a

Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	BR ACQUISITION CORP.,

as a Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	BR HOLDING, INC.,

as a Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	DATASOUTH COMPUTER CORPORATION,

as a Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	GRAYLINK, LLC,

as a Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	GRAY PUBLISHING, LLC,

as a Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	HOST COMMUNICATIONS, INC.,

as a Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	PORTA-PHONE PAGING LICENSEE CORP.,

as a Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	HOOP-IT-UP INTERNATIONAL, INC.,

as a Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CAPITAL SPORTS PROPERTIES, INC.,

as a Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

Annex I

Form of Amendments to Second Lien Term Loan Facility

 

 

Schedule I to Consent and Amendment No. 2

Schedule 1.1(a) to Credit Agreement

Certain Non-Recurring Expenses

	 	 	 	 	 
	For the Period Ending	 	Amount (in $1,000s)
	September 30, 2006

	 	$	1,864	 
	December 31, 2006

	 	$	1,398	 
	March 31, 2007

	 	$	932	 
	June 30, 2007

	 	$	466	 

 

 

Schedule II to Consent and Amendment No. 2

Schedule 1.1(b) to Credit Agreement

ProForma Adjustments for the Acquired Business

	 	 	 	 	 
	For the Period Ending	 	Amount (in $1,000s)
	June 30, 2006

	 	$	458	 
	September 30, 2006

	 	$	434	 
	December 31, 2006

	 	$	82	 
	March 31, 2007

	 	$	0

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