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Exhibit 4 (jj)
STOCK PURCHASE AGREEMENT
This Stock Purchase Agreement (this "Agreement") dated as of the 24th
day of November, 1999 between REGENT COMMUNICATIONS, INC., a Delaware
corporation (the "Company") and BLUE CHIP CAPITAL FUND III LIMITED PARTNERSHIP,
an Ohio limited partnership (the "Buyer").
1. Authorization. The Company will authorize the sale and issuance
under this Agreement of 363,636 shares (the "Shares") of its Series K
Convertible Preferred Stock (the "Series K Preferred Stock"), having the rights,
privileges and preferences as set forth in the Certificate of Designation (the
"Certificate") substantially in the form attached to this Agreement as Exhibit
A. The shares of Common Stock into which the Shares will be convertible are
referred to herein as the "Conversion Stock."
2. Sale and Purchase of the Series K Preferred Stock. On and subject to
the terms and conditions set forth herein, the Company agrees that it will sell,
issue and deliver to Buyer, and Buyer agrees that it will purchase from the
Company on the Closing Date, 363,636 shares of the Series K Convertible
Preferred Stock.
3. Closing Date. The closing of the purchase and sale of the Series K
Preferred Stock hereunder shall be on November 30, 1999 (the "Closing") or at
such other time upon which the Company and Buyer shall agree (the date of the
Closing is hereinafter referred to as the "Closing Date").
4. Purchase Price. The purchase price for the Series K Preferred Stock
is One Million Nine Hundred Ninety-Nine Thousand Nine Hundred Ninety-Eight
Dollars ($1,999,998.00) ($5.50 per share) (the "Purchase Price"), which sum
Buyer will pay to the Company by wire transfer of immediately available funds on
the Closing Date.
5. Deliveries by the Company. At the Closing, the Company will deliver
to Buyer the following:
(a) a stock certificate or certificates representing the
Series K Preferred Stock duly issued in the name of Buyer and bearing the
legends set forth in Section 7(j) hereof;
(b) an opinion of ▇▇▇▇▇▇▇ & ▇▇▇▇, as counsel to the Company,
in the form attached as Exhibit B; and
(c) a certificate, dated as of the Closing Date, signed by the
Chairman of the Board, the President of the Company or the Company's Chief
Financial Officer, certifying that the representations and warranties of the
Company contained herein are true and correct in all material respects at and as
of the Closing Date.
6. Representations and Warranties of the Company. The Company
represents and warrants to Buyer as follows:
(a) Organization and Qualification. The Company is a
corporation duly organized and existing under, and by virtue of, the laws of the
State of Delaware and is in good standing under such laws. The Company has
requisite power and authority to own and operate its properties and
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assets, and to carry on its business as presently conducted. The Company is
authorized to transact business as a foreign corporation in good standing in
those jurisdictions in which the nature of its activities or the property owned
by it make such qualification necessary.
(b) Authorization. All corporate action on the part of the
Company necessary for the authorization, execution, delivery and performance of
this Agreement by the Company, the authorization, sale, issuance and delivery of
(i) the Shares and (ii) the Conversion Stock and the performance of all of the
Company's obligations hereunder has been taken or will be taken prior to the
Closing. This Agreement, when executed and delivered by the Company, shall
constitute the valid and binding obligation of the Company, enforceable in
accordance with its terms, except as enforcement may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting enforcement of
creditors' rights generally and except as enforcement is subject to general
principles of equity regardless of whether enforcement is considered in a
proceeding at law or in equity. The Shares, when issued in compliance with the
provisions of this Agreement, will be validly issued, fully paid and
nonassessable. The Conversion Stock has been duly and validly reserved and, when
issued in compliance with the provisions of this Agreement, will be validly
issued, fully paid and nonassessable. The Shares and the Conversion Stock will
be free of any liens or encumbrances, other than any liens or encumbrances
created by or imposed upon the holders thereof through no action of the Company;
provided, however, that the Shares and the Conversion Stock will be subject to
restrictions on transfer under state and/or federal securities laws as set forth
herein and under certain other restrictions as set forth in that certain Second
Amended and Restated Stockholders' Agreement dated as of June 15, 1998 among the
Company, ▇▇▇▇▇▇-▇▇▇▇▇▇ Media Partners, L.P. and the others named therein, as
amended. The issuance of the Shares will not violate any preemptive rights
available to the holders of any of the Company's securities. The Series K
Preferred Stock shall have the rights, preferences, privileges and restrictions
set forth in the Certificate.
(c) Compliance with Laws. The Company is not in violation of
(i) any applicable order, judgment, injunction, award or decree, or (ii) any
federal, state, local or foreign law, statute, rule, ordinance or regulation or
any other requirement of any governmental or regulatory body, court or
arbitrator applicable to the business of the Company except for violations which
reasonably could not have a material adverse effect on the business or
properties of the Company. The Company has obtained all licenses, permits,
orders and approvals of any federal, state, local or foreign governmental
regulatory body (collectively, "Permits") that are material to or necessary for
the conduct of the business of the Company. All of such Permits are in full
force and effect, no violations are or have been recorded in respect of any
Permit and no proceeding is pending or, to the best of the Company's knowledge,
threatened to revoke or limit any such Permit.
(d) Compliance with Other Instruments, None Burdensome, etc.
The Company is not in violation of any term of its Amended and Restated
Certificate of Incorporation or By-Laws, or of any term or provision of any
material mortgage, indebtedness, indenture, contract, agreement, instrument,
judgment or decree. The execution, delivery and performance of and compliance
with this Agreement and the issuance of the Series K Preferred Stock and the
Conversion Stock have not resulted and will not result in any violation of, or
conflict with, or constitute a default under, the Company's existing Amended and
Restated Certificate of Incorporation or By-Laws or any of its agreements or
result in the creation of, any mortgage, pledge, lien, encumbrance or charge
upon any of the properties or assets of the Company.
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(e) Litigation. Except as set forth on Schedule 1 hereto,
there are no actions, suits, proceedings or investigations pending against the
Company or its properties before any court or governmental agency (nor, to the
best of the Company's knowledge, is there any reasonable basis therefor or
threat thereof).
(f) Governmental Consent, etc. No consent, approval or
authorization of (or designation, declaration of filing with) any governmental
authority on the part of the Company is required in connection with the valid
execution and delivery of this Agreement, or the offer, sale or issuance of the
Series K Preferred Stock and the Conversion Stock, or the consummation of any
other transaction contemplated hereby, except (i) filing of the Certificate in
the office of the Secretary of State of the State of Delaware, and (ii)
qualification (or taking such action as may be necessary to secure an exemption
from qualification, if available) of the offer and sale of the Series K
Preferred Stock and the Conversion Stock under applicable state securities laws,
which filings and qualifications, if required, will be accomplished in a timely
manner.
(g) Offering. Subject to the accuracy of the Buyer's
representations in Section 7 hereof, the offer, sale and issuance of the Series
K Preferred Stock to be issued in conformity with the terms of this Agreement,
and the issuance of the Conversion Stock upon conversion of the Series K
Preferred Stock, constitute transactions exempt from the registration
requirements of Section 5 of the Securities Act of 1933, as amended (the
"Securities Act").
(h) Brokers or Finders. Except for fees payable to Prudential
Securities (which fees shall be paid by the Company), the Company has not
incurred, and will not incur, directly or indirectly, as a result of any action
taken by the Company, any liability for brokerage or finders' fees or agents'
commissions or any similar charges in connection with this Agreement.
(i) Disclosure. No representations or warranty by the Company
in this Agreement, nor any statement, document, or certificate, furnished or to
be furnished, to the Buyer in connection herewith, or pursuant hereto, contains
or will contain any untrue statement of a material fact, or omits or will omit
to state any material fact necessary to make any statement herein or therein not
misleading.
(j) No Material Adverse Change. Between the date of the
financial statements filed as part of the Company's 1999 third quarter 10-Q and
the Closing Date, there has not been any change in the assets, liabilities,
financial condition or operations of the Company from that reflected in such
financial statements, except changes in the ordinary course of business which
have not been, either in any case or in the aggregate, materially adverse.
(k) Financial Condition. The financial statements of the
Company filed as part of the Company's 1999 third quarter 10-Q ("the Financial
Statements") fairly present, in all material respects, the financial position of
the Company and its subsidiaries as of the dates thereof, and the results of
operations and cash flows of the Company and its subsidiaries as of the dates or
for the periods set forth therein, all in conformity with GAAP consistently
applied during the period involved, except as otherwise set forth in the notes
thereto and subject, in the case of the unaudited financial statements, to the
absence of footnotes and normal year-end audit adjustments.
(l) Securities and Exchange Commission Documents. The Company
has filed all registration statements, proxy statements, reports and other
documents required to be filed by it under
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the Securities Act of 1933, as amended, or the Securities and Exchange Act of
1934, and all amendments thereto (collectively, the "Commission Documents").
Each Commission Document when filed with the Securities and Exchange Commission
was true and accurate in all material respects and in compliance in all material
respects with the requirements of its respective report form.
(m) Credit Agreement. The Company is not in default and no
event has occurred which, with notice or lapse of time or both, would constitute
a default, in the due performance or observance of any term, covenant or
condition contained in that certain Credit Agreement between the Company,
certain lenders and The Bank of Montreal, dated as of November 14, 1997, as
amended (the "Credit Agreement").
7. Representations and Warranties of Buyer. Buyer hereby represents and
warrants to the Company with respect to the purchase of the Shares as follows:
(a) Non-Registration. Buyer understands that the offering and
sale of the Series K Preferred Stock is intended to be exempt from registration
under the Securities Act of 1933, as amended (the "1933 Act"), by virtue of
Section 4(2) of the Act and the provisions of Regulation D promulgated
thereunder, that the Series K Preferred Stock has not been registered under the
1933 Act or under the securities laws of any state, and that the Company will be
under no obligation to effect any such registration.
(b) Investment Intent. Buyer is purchasing the Series K
Preferred Stock and the Conversion Stock for its own account, for investment and
not with a view to resale, distribution, or other disposition, and Buyer has no
present plans to enter into any contract, undertaking, agreement or arrangement
for any such resale, distribution or other disposition. It understands that the
Shares and the Conversion Stock have not been, and will not be, registered under
the Securities Act by reason of a specific exemption from the registration
provisions of the Securities Act, the availability of which depends upon, among
other things, the bona fide nature of the investment intent and the accuracy of
such Buyer's representations as expressed herein. Buyer will not sell or
otherwise transfer the Series K Preferred Stock without registration under the
1933 Act and applicable state securities laws, or pursuant to an exemption from
the registration requirements thereof which, in the opinion of counsel
reasonably acceptable to the Company, is available for the transaction.
(c) Rule 144. Buyer acknowledges that the Shares and the
Conversion Stock must be held indefinitely unless subsequently registered under
the Securities Act or unless an exemption from such registration is available.
It is aware of the provisions of Rule 144 promulgated under the Securities Act
which permit limited resale of shares purchased in a private placement subject
to the satisfaction of certain conditions, including, among other things, the
existence of a public market for the shares, the availability of certain current
public information about the Company, the resale occurring not less than one
year after a party has purchased and paid for the security to be sold, the sale
being effected through a "broker's transaction" or in transactions directly with
a "market maker" and the number of shares being sold during any three-month
period not exceeding specified limitations.
(d) No Public Market. Buyer understands that no public market
now exists for the Shares and that the Company has made no assurances that a
public market will ever exist for the Shares.
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(e) Status of Buyer. Buyer: (i) is an "accredited investor,"
as that term is defined in Rule 501(a) of Regulation D promulgated under the
1933 Act, inasmuch as Buyer meets the requirements of subparagraph (a)(3) of
Rule 501; (ii) was not formed for the primary purpose of evading federal or
state securities laws, and (iii) is a "Qualified Institutional Buyer" as defined
in 17 CFR .144A(a).
(f) Opportunity to Review Books and Records. Buyer has had a
reasonable opportunity to inspect all documents, books and records pertaining to
the Company and the Series K Preferred Stock and confirms that the Series K
Preferred Stock is being purchased without Buyer's receipt of any offering
literature.
(g) Opportunity for Questions. Buyer has had a reasonable
opportunity to ask questions of and receive answers from a person or persons
acting on behalf of the Company concerning the Company, its business and
operations, the terms of the Series K Preferred Stock and all other aspects of
investment in the Company, and all such questions have been answered to the full
satisfaction of Buyer.
(h) Manner of Purchase. Buyer is not subscribing for the
Series K Preferred Stock as a result of or pursuant to any advertisement,
article, notice or other communication published in any newspaper, magazine, or
similar media or broadcast over television or radio, or presented at any seminar
or meeting, or any solicitation of a subscription by a person other than a
representative of the Company.
(i) Brokers or Finders. Buyer has not incurred, and will not
incur, directly or indirectly, as a result of any action taken by the Company,
any liability for brokerage or finders' fees or agents' commissions or any
similar charges in connection with this Agreement.
(j) Legends. Buyer understands that the certificate(s)
representing the Series K Preferred Stock shall bear legends in substantially
the following forms, and Buyer shall not transfer any of the shares of Series K
Preferred Stock, or any shares of common stock that may be issued on conversion
thereof, or any interest therein, except in accordance with the terms of such
legends:
"The securities represented by this certificate have not been
registered under the Securities Act of 1933, as amended, or the
securities laws of any state (the "Securities Laws"). These securities
may not be offered, sold, transferred, pledged or hypothecated in the
absence of registration under applicable Securities Laws, or the
availability of an exemption therefrom. This certificate will not be
transferred on the books of the Corporation or any transfer agent
acting on behalf of the Corporation except upon the receipt of an
opinion of counsel, satisfactory to the Corporation, that the proposed
transfer is exempt from the registration requirements of all applicable
Securities Laws, or the receipt of evidence, satisfactory to the
Corporation, that the proposed transfer is the subject of an effective
registration statement under all applicable Securities Laws."
"The issuer is subject to restrictions contained in the Federal
Communications Act, as amended. The securities evidenced by this
certificate may not be sold, transferred,
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assigned or hypothecated if, as a result thereof, the issuer would be
in violation of that act."
"The securities represented by this certificate are subject to the
terms and entitled to the benefits of that certain Registration Rights
Agreement dated as of June 15, 1998 among the Company and certain of
its stockholders, as the same may be amended from time to time, and
that certain Second Amended and Restated Stockholders' Agreement dated
as of June 15, 1998 among the Company and certain of its stockholders,
as the same may be amended from time to time."
(k) Authority of Buyer. This Agreement, when executed and
delivered by the Buyer will constitute the legal, valid and binding obligation
of Buyer, enforceable against Buyer in accordance with its terms, except as
enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting enforcement of creditors' rights generally and except
as enforcement is subject to general principles of equity regardless of whether
enforcement is considered in a proceeding at law or in equity.
(l) No Conflicts. The execution, delivery and performance of
this Agreement by Buyer will not violate in any material respect any provision
of law or any rule or regulation of any federal, state or local governmental
authority to which Buyer is subject, nor result in a breach or violation by
Buyer of any of the terms or provisions of, or constitute an event of default
under, any material indenture, mortgage, trust (constructive or otherwise), loan
agreement, lease or other agreement or instrument to which Buyer is a party or
by which Buyer or its assets are bound. Buyer is not a party to, or subject to,
or bound by, any judgment, award, injunction, order or decree of any court or
governmental authority, or any arbitration award which may restrict or interfere
with the performance by Buyer of this Agreement or such other documents as may
be delivered by Buyer in connection herewith.
(m) Legal Proceedings. There is no action, suit, proceeding or
investigation pending (or, to the knowledge of Buyer, threatened) against Buyer
in, before or by any court, administrative agency or arbitrator affecting the
ability of Buyer to carry out the provisions of this Agreement and the
transactions contemplated hereby.
8. Buyer's Conditions to Closing. The Buyer's obligation to purchase
the Shares at the Closing is subject to the fulfillment of the following
conditions:
(a) Representations and Warranties Correct. The
representations and warranties made by the Company in Section 6 hereof shall be
true and correct, if limited by materiality, in accordance with the terms
thereof in all respects, and if not so limited by materiality, in all material
respects, as of the Closing Date.
(b) Covenants. All covenants, agreements and conditions
contained in this Agreement to be performed by the Company on or prior to the
Closing Date shall have been performed or complied with in all material
respects.
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(c) Compliance with State Securities Laws. The Company shall
have obtained all permits and qualifications required by any state for the offer
and sale of the Shares and the Conversion Stock, or shall have the availability
of exemptions therefrom.
(d) Legal Matters. All material matters of a legal nature
which pertain to this Agreement and the transactions contemplated hereby shall
have been reasonably approved by counsel to Buyer.
(e) Requisite Consents. All requisite consents shall have been
obtained by the Company in order to cause the Buyer to be added as a Stockholder
to (i) that certain Second Amended and Restated Stockholders' Agreement dated as
of June 15, 1998, as amended, among the Company, ▇▇▇▇▇▇-▇▇▇▇▇▇ Media Partners,
L.P. and the other stockholders named therein (the "Stockholders' Agreement"),
and as a party to (ii) that certain Registration Rights Agreement dated as of
June 15, 1998, as amended, among the Company, ▇▇▇▇▇▇-▇▇▇▇▇▇ and the others named
therein (the "Registration Rights Agreement").
(f) Amendment to Stockholder's Agreement and By-Laws. The
Stockholders' Agreement and the By-laws of the Company shall have been amended
and restated, to the extent necessary to give effect to the following:
(i) clause (i) of the definition of "Qualified Public
Offering" in the Stockholders' Agreement shall be deleted and replaced with the
following clause (i):
"at a per share price of at least $6.50 (equitably
adjusted for any stock splits, reverse stock splits or stock
dividends accruing after the date hereof), provided such
Qualified Public Offering shall occur prior to June 15, 2000,
or at a price per share of $12.00 (equitably adjusted for any
stock splits, reverse stock splits or stock dividends accruing
after the date hereof) if such Qualified Public Offering shall
occur on or after June 15, 2000;
(ii) Following a Qualified Public Offering, in those
instances where the Stockholders' Agreement provides for the consent, approval
or agreement by ▇▇▇▇▇▇-▇▇▇▇▇▇ for certain actions, such consent, approval or
agreement shall be made by the Executive Committee, as defined below (subject to
the right of the Board of Directors, by a two-thirds vote, to give such consent
or approval in the event of a failure of the Executive Committee to do so), or
following the termination of the Executive Committee, by the Board of Directors;
(iii) Section 2 "Board of Directors" shall be amended
as follows:
(A) Subsection 2 (a)(i) shall be amended to
read as follows:
"the number of directors constituting the members of the Board
of Directors of the Company (the "Board") shall be nine, up to
seven of whom shall be the persons entitled to be designated
to serve on the Board in accordance with the provisions of
Section 2(a)(ii) below;"
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(B) Subsection 2 (a)(ii) shall be amended to
read as follows:
"(ii) the following persons shall at all times constitute
members of the Board and shall be elected to the Board at each
annual meeting of the Stockholders of the Company:
(1) ▇▇▇▇▇▇, during the
▇▇▇▇▇▇ Employment Period;
(2) ▇▇▇▇▇▇▇▇, during the
▇▇▇▇▇▇▇▇ Employment Period;
(3) Two persons
designated by ▇▇▇▇▇▇-▇▇▇▇▇▇, who initially shall be ▇▇▇▇▇▇▇ ▇.
▇▇▇▇▇▇ and ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇;
(4) one person
designated by Blue Chip, who shall initially be ▇▇▇▇ ▇. ▇▇▇▇▇;
(5) one person
designated by Mesirow Capital Partners VII and its affiliates,
who shall initially be ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇.; and
(6) one person
designated by ▇▇▇▇▇, ▇▇▇▇ & ▇▇▇▇▇, L.L.C. and its affiliates,
who shall initially be ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇.
provided, however, that the designation of persons pursuant to
(3) to (6) above, may only be made if the Stockholder making
the designation and its affiliates (including, in the case of
▇▇▇▇▇▇-▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ and the ▇▇▇▇▇▇-▇▇▇▇▇▇ Permitted
Transferees) Beneficially Own at least 2.5% of the outstanding
Voting Stock of the Company at the time of each such
designation.
(iv) "Section 6, "▇▇▇▇▇▇-▇▇▇▇▇▇ Approval Rights," and
Section 9, "Sale of the Company," shall terminate effective upon the
closing of a Qualified Public Offering. The introductory paragraph of
Section 6 shall be amended and restated to provide that, prior to the
closing of the Qualified Public Offering, the Company shall not take or
permit to occur, and the Stockholders shall not consent to approve or
vote for any of the events or actions described in subsection 6(a)
through 6(j) unless such have been approved in advance, in writing, by a
majority of the members of an Investors Committee. Such Investors
Committee shall consist of the following individuals:
(1) two persons designated by ▇▇▇▇▇▇-▇▇▇▇▇▇, who initially shall
be ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ and ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇;
(2) one person designated by Blue Chip, who shall initially be
▇▇▇▇ ▇. ▇▇▇▇▇;
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(3) one person designated by Mesirow Capital Partners VII, who
shall initially be ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇.; and
(4) one person designated by ▇▇▇▇▇, ▇▇▇▇ & ▇▇▇▇▇, L.L.C., who
shall initially be ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇;
provided, however, that a Stockholder shall lose the right to designate a
member of the Investors Committee, and any member designated by it then
serving on the Investors Committee shall immediately resign, at such time
as such Stockholder and its affiliates (including, in the case of
▇▇▇▇▇▇-▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ and the ▇▇▇▇▇▇-▇▇▇▇▇▇ Permitted
Transferees) Beneficially Own less than 2.5% of the Voting Stock of the
Company.
(v) Effective upon completion of a Qualified Public
Offering, there shall be created by the Board of Directors of the
Company a five-member executive committee of Directors (the "Executive
Committee"), which shall initially consist of ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇,
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, ▇▇▇▇ ▇. ▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇ and ▇▇▇▇▇▇▇ ▇.
▇▇▇▇▇▇, ▇▇. The Executive Committee shall have the power, in accordance
with applicable Delaware law, to review and make recommendations to the
Board of Directors regarding:
(A) the purchase or lease by the Company or any
subsidiary thereof of any business or assets, other than the purchase
or lease of assets in the ordinary course of business (it being
understood, however, that the purchase or lease of any radio
broadcasting station or Federal Communications Commission ("FCC")
license is not a purchase or lease in the ordinary course), or the
execution of any agreement providing for the purchase, lease,
construction or management of or in respect of radio broadcasting
stations (including time brokerage agreements and local marketing
agreements and the like);
(B) the sale of any assets (other than substantially
all) of the Company or any subsidiary thereof, or the execution of any
agreement in respect thereof (other than the sale of advertising time
and excess or obsolete furniture, fixtures or equipment in the ordinary
course of business);
(C) the issuance or sale of any equity or debt
securities of the Company or any subsidiary thereof or any rights to
acquire any of such equity or debt securities (including options and
warrants) or the issuance or sale of stock appreciation or other
"phantom" stock rights, other than Permitted Issuances (as defined in
the Stockholders' Agreement), or the execution of any agreements in
respect thereof;
(D) the incurrence or assumption of any Indebtedness
(as defined in the Stockholders' Agreement) by the Company or any
Subsidiary thereof, other than Permitted Indebtedness (as defined in
the Stockholders' Agreement) and;
(E) by-law amendments to the extent they relate to
the Executive Committee or its power or authority.
A recommendation by the Executive Committee that the Board of
Directors approve or reject any such action shall be made by the vote
of a majority of the total members of the
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Executive Committee. In the event that the Executive Committee votes to
recommend any such action, the Board of Directors may approve or reject
such action by a vote of majority of the voting directors (assuming
that a quorum is present). In the event the Executive Committee votes
not to recommend any such action or, within 10 business days after the
matter has been referred to it in writing by the Chairman of the Board
or the President, fails to provide any recommendation, the Board of
Directors may approve such action only with the affirmative vote of
two-thirds of the total number of Directors.
(vi) The existence of the Executive Committee and the
provisions regarding its rights and duties shall terminate on the
earlier of the third anniversary of the creation thereof or on the
affirmative vote of three-fourths of the total number of Directors.
(vii) Section 14 shall be deleted in its entirety and
replaced with the following new Section 14:
"14. Termination of Certain Provisions. The provisions of
Sections 7, 10, 11 and 12 of this Agreement will terminate
upon the closing of a Qualified Public Offering. In addition,
this Agreement or any portion thereof, may be terminated with
the written agreement of the Company, the Executive Committee
and Stockholders (including ▇▇▇▇▇▇-▇▇▇▇▇▇) beneficially owning
more than 66 2/3% of the Common Stock Beneficially Owned by
all Stockholders. The provisions of Section 2 of this
Agreement will terminate upon the fifth anniversary of the
closing of a Qualified Public Offering.
(g) Amendment of Registration Rights Agreement.
(1) The Company shall have caused the first sentence
of Paragraph 2(a) of the Registration Rights Agreement to be amended to
substitute the word "or" for the word "and" therein so that hereafter it shall
read in its entirety as follows:
"At any time, ▇▇▇▇▇▇-▇▇▇▇▇▇ or, after July 1, 2000,
▇▇▇▇▇▇-▇▇▇▇▇▇ or the holders of at least 10% of the
outstanding Common Stock (computed on an "as-converted" and
fully diluted basis) shall have the right to request that
Regent register all or part of its Registrable Securities
under the Securities Act of 1933, as amended (the "Securities
Act")."
(2) The Company shall have caused Paragraph 2(g) of
the Registration Rights Agreement to be amended and restated in its entirety to
read as follows:
(g) In addition to the right to request registration pursuant
to Section 2(a), if the Company is eligible to register
securities with the SEC on behalf of selling Stockholders on
Form S-3, or a similar "short form" registration statement,
then (i) at any time ▇▇▇▇▇▇-▇▇▇▇▇▇ or, after the first
anniversary of a Qualified Public Offering, ▇▇▇▇▇▇-▇▇▇▇▇▇ or
the holders of at least 10% of the outstanding Common Stock
(computed on an "as-converted" and fully-diluted basis), will
be entitled to request an unlimited number of such "short
form" registrations (which may constitute a shelf registration
pursuant to Rule
11
415 under the Securities Act) for which the Company will pay
all Registration Expenses and (ii) after the first anniversary
of a Qualified Public Offering, Prudential and Mesirow, acting
together, will be entitled to request one non-underwritten
"short form" registration (which may constitute a shelf
registration pursuant to Rule 415 under the Securities Act)
for which the Company will pay all Registration Expenses. All
Stockholders shall be entitled to participate in such "short
form" registrations in the same manner as provided in Section
2(a).
(3) There shall be inserted a new section 2(j) stating:
Registrations made pursuant to this Section 2 shall be made
using "short form" registration statements whenever Regent is
permitted to use such applicable form and ▇▇▇▇▇▇-▇▇▇▇▇▇ or
such other holders as are entitled to request registration
pursuant to this Section 2(a) request or consent to the use of
such form. Notwithstanding the provisions of Section 4(a)(ii),
the Company shall not be required to keep any registration
statement filed pursuant to Section 2(g)(ii) effective for a
period of more than 90 days.
(4) The Company shall have caused Paragraph 10(c) of the
Registration Rights Agreement to be amended and restated in its entirety to read
as follows:
(c) In the event the Registrable Securities of ▇▇▇▇▇▇-▇▇▇▇▇▇
initially sought to be included on a Registration Statement
(prior to the operation or application of any "cut-back"
provisions set forth herein) do not represent more than 20% of
▇▇▇▇▇▇-▇▇▇▇▇▇'▇ Registrable Securities or in the event the
Registrable Securities of ▇▇▇▇▇▇-▇▇▇▇▇▇ are not included on a
registration statement filed pursuant to Section 2 or 3
hereof, the term "▇▇▇▇▇▇-▇▇▇▇▇▇," as used in Sections 2(b),
2(f), 2(i) (only in the proviso therein), 4(a)(iv), 4(f) and
7(c) in respect of such registration statement, shall refer to
the holders of a majority of the Registrable Securities being
included on such registration statement.
(5) The Company shall have caused the first sentence of
Paragraph 5 of the Registration Rights Agreement to be amended by substituting
for the phrase "▇▇▇▇▇▇-▇▇▇▇▇▇," in the third line thereof, the phrase "Investors
Committee" or "Executive Committee, each as defined under the Second Amended and
Restated Stockholders Agreement, as amended, among ▇▇▇▇▇▇-▇▇▇▇▇▇ and the other
Stockholders which are parties thereto (the "Stockholders Agreement"), or
following any termination of the Executive Committee, the Corporation's Board of
Directors."
(6) The Company shall have caused the definition of "Qualified
Public Offering" under Paragraph 11 of the Registration Rights Agreement to be
amended and restated in its entirety to read as follows:
"Qualified Public Offering" shall have the meaning ascribed to
it in the Stockholders Agreement."
12
9. Company's Conditions to Closing. The Company's obligation to sell
and issue the Shares at the Closing Date is, at the option of the Company,
subject to the fulfillment as of the Closing Date of the following conditions:
(a) Representations and Warranties Correct. The
representations and warranties made by Buyer in Section 7 hereof shall be true
and correct when made, and shall be true and correct on the Closing Date.
(b) Compliance with State Securities Laws. The Company shall
have obtained all permits and qualifications required by any state for the offer
and sale of the Shares and the Conversion Stock, or shall have the availability
of exemptions therefrom.
(c) Legal Matters. All material matters of a legal nature
which pertain to this Agreement, and the transactions contemplated hereby, shall
have been reasonably approved by counsel to the Company.
10. Reimbursement of Legal Fees. The Company hereby agrees to reimburse
Buyer for its legal fees incurred in connection with the negotiation, execution
and performance of this Agreement.
11. Miscellaneous.
(a) Notices. Any notice, request or other document to be given
hereunder to any party shall be effective upon receipt (or refusal of receipt)
and shall be in writing and delivered personally or sent by telecopy or
certified or registered mail, postage prepaid:
(i) if to the Company, addressed to:
Regent Communications, Inc.
▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Chairman of the Board
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
with a copy to:
▇▇▇▇▇▇▇ & ▇▇▇▇
The Federal Reserve Building
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: ▇▇▇▇ ▇. ▇▇▇▇▇▇, Esq.
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
13
(ii) if to Buyer, addressed to:
Blue Chip Capital Fund III Limited Partnership
▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇. ▇▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
with copies to:
▇▇▇▇, Stettinius & Hollister LLP
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇, Esq.
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
or to such other address or telecopy number as any party shall have specified by
notice given to the other parties in the manner specified above.
(b) Entire Agreement; Amendment. This Agreement, including the
Exhibits and Schedules hereto, and the other agreements expressly contemplated
by this Agreement, contain the entire agreement between the parties with respect
to the subject matter hereof and supersede all prior oral and written
agreements, memoranda, term sheets, understandings and undertakings among the
parties hereto relating to the subject matter hereof. This Agreement may be
modified or amended only by a written instrument executed by or on behalf of the
parties hereto.
(c) Governing Law. This Agreement shall be governed by, and
construed in accordance with, the internal laws of the State of Ohio without
regard to the application of its conflicts of laws principles. The parties
hereby waive all right to trial by jury in any action, suit or proceeding
brought to enforce or defend any rights or remedies under this Agreement or the
transactions contemplated hereby.
(d) Severability. In case any provision in this Agreement
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions hereof shall not in any way be
affected or impaired thereby.
(e) Construction. The section and subsection headings used
herein are for convenience of reference only, are not a part of this Agreement
and are not to affect the construction of, or be taken into consideration in
interpreting, any provision of this Agreement. As used in this Agreement, the
masculine, feminine and neuter gender each includes the other, unless the
context otherwise dictates. Any and all schedules and exhibits referred to in
this Agreement and attached hereto are and shall be deemed to be incorporated in
this Agreement as if fully set forth herein.
(f) Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed to be an original, but all of
which together shall constitute one and the same instrument.
14
(g) Specific Performance. The parties hereto acknowledge that
damages may be an inadequate remedy for any breach of the provisions of this
Agreement and agree that the obligations of the parties hereunder may be
specifically enforceable, and no party will take any action to impede the other
from seeking to enforce such right of specific performance after any such
breach.
(h) Successors and Assigns: Assignability. Except as otherwise
provided herein, this Agreement shall be binding upon and inure to the benefit
of and be enforceable by the parties hereto and their respective successors and
permitted assigns; provided, however, that the right of the Buyer to purchase
the Series K Preferred Stock shall not be assignable without the consent of the
Company. This Agreement (i) shall not confer upon any person other than the
parties hereto and their respective successors and permitted assigns any rights
or remedies hereunder; and (ii) shall not be assignable by either party without
the prior written consent of the other.
(i) Further Assurances. Subject to the terms and conditions
herein provided, each of the parties hereto agrees to use all reasonable efforts
to take, or cause to be taken, all action and to do, or cause to be done, all
things necessary proper or advisable to consummate and make effective the
transactions contemplated by this Agreement.
(j) Survival. The representations and warranties of the
parties contained herein shall survive execution and delivery of this Agreement
and issuance and delivery of the Series K Preferred Stock hereunder.
[SIGNATURES ON FOLLOWING PAGE]
15
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered, as of the day and year first above written.
COMPANY:
REGENT COMMUNICATIONS, INC.
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
-------------------------------------------------
Its: Chairman and Chief Executive Officer
-------------------------------------------------
BUYER:
BLUE CHIP CAPITAL FUND III LIMITED PARTNERSHIP
By: Blue Chip Venture Company, Ltd., its general partner
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇
-------------------------------------------------
Its: Manager
-------------------------------------------------
16
SCHEDULE 1
EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES OF COMPANY
The following exceptions are stated to the representations and
warranties of the Company made in Section 6 of this Agreement, with reference to
a subsection where the exception is relevant; provided, however, any listing of
a matter under a particular subsection shall also be deemed to be a listing of
such matter as an exception to any other relevant subsection of Section 6 of the
Agreement.
SECTION 6(e)
On July 29, 1998, the United States Department of Justice ("DOJ")
issued a Civil Investigative Demand ("CID") to the Company requesting
information relating to the Company's acquisition of six radio stations in and
around Redding, California ("Redding Stations"). In response to the CID, the
Company has submitted certain information requested by DOJ so that it may
evaluate whether the Company's acquisition of the Redding Stations was in
violation of applicable federal antitrust laws. The Company believes that its
acquisition of the Redding Stations did not involve a violation of antitrust
laws; however, it can not predict what DOJ will conclude.
