SunTrust Bank and Debut Broadcasting Mississippi, Inc. Collateral Letter for $500,000 Loan Facility (Greenville Stations)

Summary

This agreement between SunTrust Bank and Debut Broadcasting Mississippi, Inc. clarifies that the $500,000 loan provided by SunTrust is secured only by the radio station assets related to the Greenville, Mississippi stations owned by the borrower. It specifically excludes assets related to other stations, such as WBBV-FM and KLSM-FM, from the collateral. SunTrust waives any claim or lien on these excluded stations and agrees to provide documentation of this waiver if requested. The agreement is binding on both parties and their successors.

EX-10.3 5 v125191_ex10-3.htm Unassociated Document
EXHIBIT 10.3

Suntrust
Robert R. Lawhon
SunTrust Bank
 
Senior Vice President
401 Commerce Street
 
 
Suite 2100
 
 
Nashville TN 37219
 
 
Tel ###-###-####
 
 
Fax ###-###-####
 
 
bob lawhon@suntrust com
   
Re:
Commercial Note and Loan Facility for $500,000 dated August 22, 2008
 
Obligation No. 10969113; Note No. 2.6
 
Collateral Letter
   
Dear Mr. Ludwig:

 
This Sun Trust Collateral Letter dated August 22, 2008 is entered into by and between SunTrust and Debut Broadcasting Mississippi, Inc. ("Borrower"). Sun Trust and Borrower simultaneous herewith have entered into a Commercial Note and Loan Facility in the amount of $500,000 ("the Loan") secured by certain Collateral owned by Borrower. SunTrust hereby agrees that the Collateral subject to the Loan is confined only to the radio station assets currently or hereafter owned by Borrower that relate to Borrower's ownership, control or operation of certain radio stations located in and around Greenville, MS and known as WIQQ-FM, WBAQ-FM, WNIX-AM, WNLA-AM and WNLA-FM (the "Greenville Stations"). The Collateral does not include any radio station assets not used in connection with the ownership, control or operation of the Greenville Stations that Borrower presently or in the future owns, controls or operates pursuant to a Time Brokerage Agreement including but not limited to WBBV-F M and KLSM-FM owned by Holladay Broadcasting of Louisiana ("Future Stations"), Sun Trust hereby waives any interest or lien on the Future Stations and will provide Borrower, at Borrower's expense, with such documentation as Borrower my reasonably request evidencing Sun Trust 's waiver of any lien on such Future Stations.

Unless otherwise defined herein, the capitalized terms in this Collateral Letter shall have the meanings contained in the Loan documents. This Collateral Letter and waiver shall inure to the benefit of and shall be binding upon the heirs, successors and assigns of' the parties hereto.

   
 
SunTrust Bank
 
 
 
 
By: /s/ Robert R. Lawhon
 
Robert R. Lawhon
 
Senior Vice President
 
 
 
 
 
Accepted: /s/ Steven Ludwig
 
Steven Ludwig, CEO
 
 
 
 
 
Debut Broadcasting Mississippi, Inc.
 
 
 
By: /s/ Robert Marquitz
 
Robert Marquitz
 
Chairman & President