<PAGE>
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 2)
Clear Channel Communications, Inc.
-----------------------------------
(Name of Issuer)
COMMON STOCK, par value $0.10
------------------------------
(Title of Class of Securities)
184502102
---------
CUSIP Number
H & F INVESTORS III, INC.
One Maritime Plaza, 12th Floor
San Francisco, California 94111
(415) 788-5111
with a copy to:
Timothy G. Hoxie, Esq.
Heller Ehrman White & McAuliffe
333 Bush Street
San Francisco, California 94104
(415) 772-6052
------------------------------------
(Name, address and telephone number
of person authorized to receive
notices and communications)
May 14-19, 1997
----------------
(Date of Event which requires
filing of this statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this statement, and is filing
this statement because of Rule 13d-1(b)(3) or (4), check the following:
/ /
Check the following box if a fee is being paid with this statement:
/ /
(Page 1 of 16)
<PAGE>
CUSIP NO. 184502102 13D
1) Name of Reporting Persons:
Hellman & Friedman Capital Partners III, L.P.
________________________________________________________________________________
2) Check the Appropriate Box if a Member of a Group
(See Instructions)
(a) / X / _______________________________________________________
(b) / / _______________________________________________________
________________________________________________________________________________
3) SEC Use Only __________________________________________________
________________________________________________________________________________
4) Source of Funds (See Instructions):
________________________________________________________________________________
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
________________________________________________________________________________
6) Citizenship or Place of Organization: California
________________________________________________________________________________
Number 7) Sole Voting Power: -0-
of _______________________________________________________
Shares
Beneficially 8) Shared Voting Power: 614,230
Owned _______________________________________________________
by
Each 9) Sole Dispositive Power: -0-
Reporting _______________________________________________________
Person
With 10) Shared Dispositive Power: 614,230
________________________________________________________________________________
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 673,067
________________________________________________________________________________
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
________________________________________________________________________________
13) Percent of Class Represented by amount in Row (11):
.756%
________________________________________________________________________________
14) Type of Reporting Person (See Instructions): PN
________________________________________________________________________________
(Page 2 of 16)
<PAGE>
CUSIP NO. 184502102 13D
1) Name of Reporting Persons:
H & F Orchard Partners III, L.P.
________________________________________________________________________________
2) Check the Appropriate Box if a Member of a Group
(See Instructions)
(a) / X / _______________________________________________________
(b) / / _______________________________________________________
________________________________________________________________________________
3) SEC Use Only __________________________________________________
________________________________________________________________________________
4) Source of Funds (See Instructions):
________________________________________________________________________________
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
________________________________________________________________________________
6) Citizenship or Place of Organization: California
________________________________________________________________________________
Number 7) Sole Voting Power: -0-
of _______________________________________________________
Shares
Beneficially 8) Shared Voting Power: 45,213
Owned _______________________________________________________
by
Each 9) Sole Dispositive Power: -0-
Reporting _______________________________________________________
Person
With 10) Shared Dispositive Power: 45,213
________________________________________________________________________________
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 673,067
________________________________________________________________________________
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
________________________________________________________________________________
13) Percent of Class Represented by amount in Row (11):
.756%
________________________________________________________________________________
14) Type of Reporting Person (See Instructions): PN
________________________________________________________________________________
(Page 3 of 16)
<PAGE>
CUSIP NO. 184502102 13D
1) Name of Reporting Persons:
H & F International Partners III, L.P.
________________________________________________________________________________
2) Check the Appropriate Box if a Member of a Group
(See Instructions)
(a) / X / _______________________________________________________
(b) / / _______________________________________________________
________________________________________________________________________________
3) SEC Use Only __________________________________________________
________________________________________________________________________________
4) Source of Funds (See Instructions):
________________________________________________________________________________
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
________________________________________________________________________________
6) Citizenship or Place of Organization: California
________________________________________________________________________________
Number 7) Sole Voting Power: -0-
of _______________________________________________________
Shares
Beneficially 8) Shared Voting Power: 13,624
Owned _______________________________________________________
by
Each 9) Sole Dispositive Power: -0-
Reporting _______________________________________________________
Person
With 10) Shared Dispositive Power: 13,624
________________________________________________________________________________
11) Aggregate Amount Beneficially Owned by Each Reporting Person:
673,067
________________________________________________________________________________
12) / / Check if the Aggregate Amount in Row (11) Excludes
Certain Shares (See Instructions)
________________________________________________________________________________
13) Percent of Class Represented by amount in Row (11):
.756%
________________________________________________________________________________
14) Type of Reporting Person (See Instructions): PN
________________________________________________________________________________
(Page 4 of 16)
<PAGE>
CUSIP NO. 184502102 13D
1) Name of Reporting Persons:
H&F Investors III
________________________________________________________________________________
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / _______________________________________________________
(b) / / _______________________________________________________
________________________________________________________________________________
3) SEC Use Only ____________________________________________________________
________________________________________________________________________________
4) Source of Funds (See Instructions):
________________________________________________________________________________
5) / / Check if Disclosure of Legal proceedings is Required
Pursuant to Items 2(d) or 2(e)
________________________________________________________________________________
6) Citizenship or Place of Organization: California
________________________________________________________________________________
Number 7) Sole Voting Power: -0-
of _______________________________________________________
Shares
Beneficially 8) Shared Voting Power: 673,067
Owned _______________________________________________________
by
Each 9) Sole Dispositive Power: -0-
Reporting _______________________________________________________
Person
With 10) Shared Dispositive Power: 673,067
________________________________________________________________________________
11) Aggregate Amount Beneficially Owned by Each Reporting Person:
673,067
________________________________________________________________________________
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
________________________________________________________________________________
13) Percent of Class Represented by amount in Row (11):
.756%
________________________________________________________________________________
14) Type of Reporting Person (See Instructions): PN
________________________________________________________________________________
(Page 5 of 16)
<PAGE>
CUSIP NO. 184502102 13D
1) Name of Reporting Persons:
Hellman & Friedman Associates III, L.P.
________________________________________________________________________________
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / _______________________________________________________
(b) / / _______________________________________________________
________________________________________________________________________________
3) SEC Use Only __________________________________________________
________________________________________________________________________________
4) Source of Funds (See Instructions):
________________________________________________________________________________
5) / / Check if Disclosure of Legal proceedings is Required
Pursuant to Items 2(d) or 2(e)
________________________________________________________________________________
6) Citizenship or Place of Organization: California
________________________________________________________________________________
Number 7) Sole Voting Power: -0-
of _______________________________________________________
Shares
Beneficially 8) Shared Voting Power: 673,067
Owned _______________________________________________________
by
Each 9) Sole Dispositive Power: -0-
Reporting _______________________________________________________
Person
With 10) Shared Dispositive Power: 673,067
________________________________________________________________________________
11) Aggregate Amount Beneficially Owned by Each Reporting Person:
673,067
________________________________________________________________________________
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
________________________________________________________________________________
13) Percent of Class Represented by amount in Row (11): .756%
________________________________________________________________________________
14) Type of Reporting Person (See Instructions): PN
________________________________________________________________________________
(Page 6 of 16)
<PAGE>
CUSIP NO. 184502102 13D
1) Name of Reporting Persons:
H & F Administration III, L.L.C.
________________________________________________________________________________
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / _______________________________________________________
(b) / / _______________________________________________________
________________________________________________________________________________
3) SEC Use Only __________________________________________________
________________________________________________________________________________
4) Source of Funds (See Instructions):
________________________________________________________________________________
5) / / Check if Disclosure of Legal proceedings is Required
Pursuant to Items 2(d) or 2(e)
________________________________________________________________________________
6) Citizenship or Place of Organization: California
________________________________________________________________________________
Number 7) Sole Voting Power: -0-
of _______________________________________________________
Shares
Beneficially 8) Shared Voting Power: 673,067
Owned _______________________________________________________
by
Each 9) Sole Dispositive Power: -0-
Reporting _______________________________________________________
Person
With 10) Shared Dispositive Power: 673,067
________________________________________________________________________________
11) Aggregate Amount Beneficially Owned by Each Reporting Person:
673,067
________________________________________________________________________________
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
________________________________________________________________________________
13) Percent of Class Represented by amount in Row (11):
.756%
________________________________________________________________________________
14) Type of Reporting Person (See Instructions): OO
________________________________________________________________________________
(Page 7 of 16)
<PAGE>
CUSIP NO. 184502102 13D
1) Name of Reporting Persons:
H & F Investors III, Inc.
________________________________________________________________________________
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / _______________________________________________________
(b) / / _______________________________________________________
________________________________________________________________________________
3) SEC Use Only __________________________________________________
________________________________________________________________________________
4) Source of Funds (See Instructions):
________________________________________________________________________________
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
________________________________________________________________________________
6) Citizenship or Place of Organization: California
________________________________________________________________________________
Number 7) Sole Voting Power: -0-
of _______________________________________________________
Shares
Beneficially 8) Shared Voting Power: 673,067
Owned _______________________________________________________
by
Each 9) Sole Dispositive Power: -0-
Reporting _______________________________________________________
Person
With 10) Shared Dispositive Power: 673,067
________________________________________________________________________________
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 673,067
________________________________________________________________________________
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
________________________________________________________________________________
13) Percent of Class Represented by amount in Row (11):
.756%
________________________________________________________________________________
14) Type of Reporting Person (See Instructions): CO
________________________________________________________________________________
(Page 8 of 16)
<PAGE>
CUSIP NO. 184502102 13D
1) Name of Reporting Persons:
H&F Management III, L.L.C.
________________________________________________________________________________
2) Check the Appropriate Box if a Member of a Group
(See Instructions)
(a) / X / _______________________________________________________
(b) / / _______________________________________________________
________________________________________________________________________________
3) SEC Use Only __________________________________________________
________________________________________________________________________________
4) Source of Funds (See Instructions):
________________________________________________________________________________
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
________________________________________________________________________________
6) Citizenship or Place of Organization: California
________________________________________________________________________________
Number 7) Sole Voting Power: -0-
of _______________________________________________________
Shares
Beneficially 8) Shared Voting Power: 673,067
Owned _______________________________________________________
by
Each 9) Sole Dispositive Power: -0-
Reporting _______________________________________________________
Person
With 10) Shared Dispositive Power: 673,067
________________________________________________________________________________
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 673,067
________________________________________________________________________________
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
________________________________________________________________________________
13) Percent of Class Represented by amount in Row (11):
.756%
________________________________________________________________________________
14) Type of Reporting Person (See Instructions): 00
________________________________________________________________________________
(Page 9 of 16)
<PAGE>
CUSIP NO. 184502102 13D
1) Name of Reporting Persons:
F. Warren Hellman (individually, and as trustee of the
Hellman Family revocable Trust)
________________________________________________________________________________
2) Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) / X / _______________________________________________________
(b) / / _______________________________________________________
________________________________________________________________________________
3) SEC Use Only __________________________________________________
________________________________________________________________________________
4) Source of Funds (See Instructions): OO (WC of other group
member)
________________________________________________________________________________
5) / / Check if Disclosure of Legal proceedings
is Required Pursuant to Items 2(d) or 2(e)
________________________________________________________________________________
6) Citizenship or Place of Organization: U.S.
________________________________________________________________________________
Number 7) Sole Voting Power: -0-
of _______________________________________________________
Shares
Beneficially 8) Shared Voting Power: 673,067
Owned _______________________________________________________
by
Each 9) Sole Dispositive Power: -0-
Reporting _______________________________________________________
Person
With 10) Shared Dispositive Power: 673,067
________________________________________________________________________________
11) Aggregate Amount Beneficially Owned by Each
Reporting Person: 673,067
________________________________________________________________________________
12) / / Check if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions)
________________________________________________________________________________
13) Percent of Class Represented by amount in Row (11):
.756%
________________________________________________________________________________
14) Type of Reporting Person (See Instructions): IN
________________________________________________________________________________
(Page 10 of 16)
<PAGE>
CUSIP NO. 184502102 13D
INTRODUCTION
H&F Investors III, Inc. ("Investors III, Inc.") hereby files this Amendment
No. 2 (the "Amendment") to the Statement on Schedule 13D which was filed on
March 7, 1997 and amended on April 10, 1997 (the "Statement") with respect to
the shares of Common Stock, par value $0.10 (the "Common Stock") of Clear
Channel Communications, Inc., a Texas corporation (the "Issuer"). This
Amendment to the statement is filed by Investors III, Inc., on its own behalf
and on behalf of Hellman & Friedman Capital Partners III, L.P., a California
limited partnership ("HFCP III"), H&F International Partners III, L.P., a
California limited partnership ("International Partners III"), H&F Orchard
Partners III, L.P., a California limited partnership ("Orchard Partners III"),
H&F Investors III, a California general partnership, the general partner of HFCP
III, International Partners III and Orchard Partners III ("Investors III"), H&F
Administration III, L.L.C., a Delaware limited liability company, the
administration general partner of Investors III ("Administration III"), Hellman
& Friedman Associates III, L.P., a California limited partnership, the managing
general partner of Investors III ("Associates III"), H&F Management III, L.L.C.,
a Delaware limited liability company, a general partner of Associates III
("Management III"), H&F Investors III, Inc., a California corporation, the
general partner of Associates III ("Investors III, Inc.") and F. Warren Hellman
("Mr. Hellman") and Tully M. Friedman ("Mr. Friedman") (collectively the
"Reporting Persons"
(Page 11 of 16)
<PAGE>
CUSIP NO. 184502102 13D
and, with the exception of Mr. Friedman, the "Group"). Unless otherwise
indicated, capitalized terms used below but not defined herein have the meanings
assigned to them in the Statement.
COVER PAGES
The cover pages to the Statement for the Reporting Persons identified
therein are amended to read as shown on the cover pages included in this
Amendment. The cover page for Mr. Friedman, who has ceased to be a member of
the Group, is deleted.
Item 2. IDENTITY AND BACKGROUND
Item 2 of the Statement is amended by deleting paragraphs h, i and j
thereof, and inserting new paragraphs h and i as follows:
h. INVESTORS III, INC.
The principal executive offices of Investors III, Inc. are located at
One Maritime Plaza, 12th Floor, San Francisco, California 94111. Investors III,
Inc. is a California corporation whose principal business is serving as a
general partner of Associates III and as the manager of Administration III. The
names, business addresses, present principal occupations and citizenships of the
executive officers and members of the Board of Directors of Investors III, Inc.
are set forth on Schedule 1 hereto.
(Page 12 of 16)
<PAGE>
CUSIP NO. 184502102 13D
i. F. WARREN HELLMAN.
Mr. Hellman is a trustee of a revocable trust which owns 100% of the
outstanding common stock of Investors III, Inc. Mr. Hellman's business address
is One Maritime Plaza, 12th Floor, San Francisco, California 94111. Mr. Hellman
is a partner of Hellman & Friedman, a general partnership formed under the laws
of the State of California, and as such is primarily engaged in investment
banking activities.
Item 4. PURPOSE OF TRANSACTION.
Item 4 is amended to read as follows:
The Partnerships signed an Underwriting Agreement dated May 14, 1997
pursuant to which the Partnerships, the other selling stockholders named
therein and the Issuer sold 11,000,000 shares of Common Stock in an
Underwritten Public Offering (the "Offering"); of such shares, 5,426,213 were
sold by the Partnerships at $47.334 per share (net of underwriting
commissions). The sale contemplated by the Underwriting Agreement closed on
May 19, 1997. The form of Underwriting Agreement is attached hereto as
Exhibit 7(8).
Item 5. INTEREST IN SECURITIES OF THE ISSUER.
Paragraphs (a) and (b) of Item 5 are amended to read as follows:
(a) and (b). The aggregate number of shares and percentage of Common
Stock of the Issuer (based upon 89,017,920
(Page 13 of 16)
<PAGE>
CUSIP NO. 184502102 13D
shares of Common Stock being outstanding immediately after the Offering as
disclosed in the Issuer's Registration Statement pertaining to the Offering
beneficially owned by each person named in Item 2, as well as the number of
shares of Common Stock as to which such person is deemed to have sole power to
vote or to direct the vote, shared power to vote or to direct the vote, sole
power to dispose or to direct the disposition, or shared power to dispose or
direct the disposition, in each case after giving effect to the transactions
contemplated by the Underwriting Agreement, is set forth in the following table.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
No. of
Shares
Beneficially Percentage Power to Vote Power to Dispose
Person Owned of Class Sole Shared Sole Shared
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
HFCP III 614,230 0.69% -0- 614,230 -0- 614,230
Orchard Partners III 45,213 0.05% -0- 45,213 -0- 45,213
International Partners III 13,624 0.015% -0- 13,624 -0- 13,624
Investors III 673,067 0.756% -0- 673,067 -0- 673,067
Administration III 673,067 0.756% -0- 673,067 -0- 673,067
Associates III 673,067 0.756% -0- 673,067 -0- 673,067
Management III 673,067 0.756% -0- 673,067 -0- 673,067
Investors III, Inc. 673,067 0.756% -0- 673,067 -0- 673,067
F. Warren Hellman 673,067 0.756% -0- 673,067 -0- 673,067
Group 673,067 0.756% -0- 673,067 -0- 673,067
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
</TABLE>
The information required by Item 2 with respect to persons with whom voting
or dispositive power is shared is set forth in Item 2.
(c) Other than sales in the Offering which are the subject of this
Amendment No. 2 and the acquisition of the shares by the
(Page 14 of 16)
<PAGE>
CUSIP NO. 184502102 13D
Partnerships reported pursuant to Amendment No. 1, to the best knowledge of the
Reporting Persons, no person described in paragraph (a) of this Item 5 has
effected any other transactions in the Common Stock of the Company during the
past 60 days.
(e) The Reporting Persons ceased to beneficially own more than 5% of the
Issuer's Common Stock on May 19, 1997.
Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
Item 6 is amended by adding to the end thereof the following:
On May 14, 1997, the Partnerships executed the Underwriting Agreement
and the Custody Agreement in the forms attached as Exhibits 7(8) and 7(9)
hereto.
Item 7. MATERIAL TO BE FILED AS EXHIBITS.
Item 7 is amended to add the following Exhibits:
Exhibit 7(8). Underwriting Agreement (incorporated by reference to Exhibit 1
to Amendment No. 1 to the Issuer's Registration Statement on
Form S-3 (Reg. No. 333-25497)) filed May 9, 1997.
Exhibit 7(9). Form of Custody Agreement
(Page 15 of 16)
<PAGE>
CUSIP NO. 184502102 13D
SIGNATURE
After reasonable inquiry and to the best of the undersigned's knowledge and
belief, the undersigned certifies that the information set forth in this
statement is true, complete and correct.
H&F INVESTORS III, INC.
Dated: May 19, 1997 By: Joseph Niehaus
----------------------------------
Title: Vice President
-------------------------------
(Page 16 of 16)
<PAGE>
CUSIP NO. 184502102 13D
SCHEDULE 1
H&F INVESTORS III, INC. ("INVESTORS III, INC.")
DIRECTORS AND EXECUTIVE OFFICERS
<TABLE>
<CAPTION>
Present Principal
Name and Address Title Principal Occupation Business and Address
- ---------------- ----- -------------------- --------------------
<S> <C> <C> <C>
F. Warren Hellman Director and Partner, Investments
One Maritime Plaza President Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Matthew R. Barger Director and Partner, Investments
One Maritime Plaza Vice President Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
John M. Pasquesi Vice President Partner, Investments
One Maritime Plaza Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
John L. Bunce, Jr. Vice President Partner, Investments
One Maritime Plaza and Secretary Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Marco W. Hellman Vice President Partner, Investments
One Maritime Plaza Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Mitchell R. Cohen Vice President Partner, Investments
One Maritime Plaza Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Georgia Lee Vice President Partner, Investments
One Maritime Plaza Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
</TABLE>
____________________
1 Each of Messrs. F. Warren Hellman, Barger, Pasquesi, Bunce and Marco W.
Hellman, Cohen, Niehaus, Hammarskjold and Ms. Lee are United States
Citizens.
<PAGE>
<TABLE>
<CAPTION>
Present Principal
Name and Address Title Principal Occupation Business and Address
- ---------------- ----- -------------------- --------------------
<S> <C> <C> <C>
Joseph M. Niehaus Vice President Partner, Investments
One Maritime Plaza Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
Philip U. Hammarskjold Vice President Partner, Investments
One Maritime Plaza Hellman & Friedman One Maritime Plaza
12th Floor 12th Floor
San Francisco, CA 94111 San Francisco, CA 94111
</TABLE>
____________________
1 Each of Messrs. F. Warren Hellman, Barger, Pasquesi, Bunce and Marco W.
Hellman, Cohen, Niehaus, Hammarskjold and Ms. Lee are United States
Citizens.
<PAGE>
CUSIP NO. 184502102 13D
LIST OF EXHIBITS
Exhibit NO. Description Page
- ----------- ----------- ----
7(8) Underwriting Agreement (incorporated by reference to Exhibit 1
to Amendment No. 1 to the Issuer's Registration Statement on
Form S-3 (Reg. No. 333-25497)) filed May 9, 1997.
7(9) Form of Custody Agreement
<PAGE>
EXHIBIT 7 (9)
FORM OF
CUSTODY AGREEMENT
CUSTODY AGREEMENT, dated May ____, 1997, among The Bank of New York, as
Custodian (the "Custodian"), and ____________________________________________
(the "Selling Shareholder").
Clear Channel Communications, Inc., a Texas corporation (the "Company") has
filed a Registration Statement, file No. 333-25497 (including any registration
statement filed pursuant to Rule 462(b) the "Registration Statement"), with the
Securities and Exchange Commission to register for sale to the public under the
Securities Act of 1933, as amended (the "Act"), shares of the Company's Common
Stock, par value $. 10 per share (the "Common Stock").
The shares to be covered by the Registration Statement shall consist of (a)
up to 4,093,790 shares of Common Stock to be sold by the Company (plus such
additional shares of Common Stock that the Company, in its sole discretion,
desires to offer in such public offering), excluding the over-allotment option
granted to the underwriters (the "Underwriters") named in an Underwriting
Agreement to be entered into by such Underwriters, the Company and certain
selling shareholders of the Company (the "Underwriting Agreement"), and (b) up
to 5,906,210 shares of Common Stock to be sold by certain selling shareholders
of the Company, of which _______________ shares (the "Shares") are to be sold by
the undersigned Selling Shareholder. Further information with respect to the
Shares is set forth on EXHIBIT A attached hereto and incorporated herein by
reference.
1. A custody arrangement is hereby established by the Selling Shareholder
with the Custodian with respect to the Shares, and the Custodian is hereby
instructed to act in accordance with this Agreement and any amendments or
supplements hereto authorized by the Selling Shareholder.
2. There are herewith delivered to the Custodian, and the Custodian
hereby acknowledges receipt of, certificates representing the Shares, which
certificates have been endorsed in blank or are accompanied by duly executed
stock powers, in each case with all signatures guaranteed by a commercial bank
or trust company or by a member firm of the New York Stock Exchange, Inc., the
American Stock Exchange, Inc. or a member of the National Association of
Securities Dealers, Inc. Such certificates are to be held by the Custodian for
the account of the Selling Shareholder and are to be disposed of by the
Custodian in accordance with this Agreement.
3. The Custodian is authorized and directed by the Selling Shareholder:
a. To hold the certificates representing the Shares delivered by the
Selling Shareholder in its custody;
<PAGE>
b. On or immediately prior to the settlement date for any Shares
sold pursuant to the Registration Statement as advised by Akin, Gump, Strauss,
Hauer & Feld, L.L.P., counsel for the Company ("Company Counsel") (the "Closing
Date"), to cause such Shares to be transferred on the books of the Company into
such names as the Custodian shall have been instructed in writing by Alex. Brown
& Sons Incorporated, as representative of the several Underwriters (the
"Underwriters"); to cause to be issued, against surrender of the certificates
for the Shares, a new certificate or certificates for such Shares, free of any
restrictive legend, registered in such name or names; to deliver such new
certificates representing such Shares to the Underwriters on the Closing Date
for their account or accounts against full payment therefor; and to give receipt
for such payment; and
c. To disburse such payments in the following manner: (i) to itself,
as agent for the Selling Shareholder, a reserve amount to be designated in
writing by the Selling Shareholder from which amount the Custodian shall pay, as
soon as reasonably practicable, (A) its reasonable charges and disbursements, if
any, for acting hereunder with respect to the sale of the Shares and (B) any
applicable stock transfer taxes; and (ii) to the Selling Shareholder, pursuant
to the written instructions of the Selling Shareholder, (A) on the Closing Date,
a sum equal to the proceeds of the sale of the Shares, less the reserve amount,
if any, designated by the Selling Shareholder, and (B) promptly after all proper
charges, disbursements, costs and expenses shall have been paid, any remaining
balance of the amount reserved under clause (i) above. Before making any
payment from the amount reserved under clause (i) above, except payments made
pursuant to subclause (B) of clause (ii) above, the Custodian shall request and
receive the written approval of the Selling Shareholder.
d. The duties, responsibilities and obligation of the Custodian
shall be limited to those expressly set forth herein and not duties,
responsibilities or obligations shall be inferred or implied. Custodian shall
not be subject to, nor required to comply with, any other agreement between or
among any or all of the Selling Shareholders or to which any Selling Shareholder
is a party, even though reference thereto may be made herein, or to comply with
any direction or instruction (other than those contained herein or delivered in
accordance with this Agreement) from any Selling Shareholder or any entity
acting on its behalf. Custodian shall not be required to expend or risk any of
its own funds or otherwise incur any financial liability in the performance of
any of its duties hereunder.
e. Custodian shall not be liable for any action taken or omitted or
for any loss or injury resulting from its actions or its performance or lack of
performance of its duties hereunder in the absence of gross negligence or
willful misconduct on its part. In no event shall Custodian be liable (i) for
acting in accordance with or relying upon any instruction, notice, demand,
certificate or document from any Selling Shareholder or any entity acting on
behalf of any Selling Shareholder, (ii) for any indirect, consequential,
punitive or special damages regardless of the form of action and whether or not
any such damages were foreseeable or contemplated, (iii) for the acts or
omissions of its nominees, correspondents, designees, subagents or
subcustodians, or (iv) for an amount in excess of
<PAGE>
the value of the Shares deposited hereunder, valued as of the date of deposit,
but only to the extent of direct money damages.
f. Custodian shall not incur any liability for not performing any
act or fulfilling any duty, obligation or responsibility hereunder by reason of
any occurrence beyond the control of Custodian (including but not limited to any
act or provision of any present or future law or regulation or governmental
authority, any act of God or war, or the unavailability of the Federal Reserve
Bank wire or telex or other wire or communication facility).
g. Custodian shall not be responsible in any respect for the form,
execution, validity, value or genuineness of documents or securities deposited
hereunder, or for any description therein, or for the identity, authority or
rights of persons executing or delivering or purporting to execute or deliver
any such document, security or endorsement.
h. The Custodian shall be entitled to rely upon oral instructions
actually received by the Custodian from a person believed by the Custodian to be
authorized to give the same. The Selling Shareholder giving such oral
instructions agrees to forward to the Custodian a facsimile confirming such oral
instructions so that it is received by the Custodian by the close of business on
the same day that such oral instructions are given. The Selling Shareholder
agrees that the fact that such confirming instructions are not received by the
Custodian shall in no way affect the validity of the transactions or
enforceability of the actions taken or omitted by the Custodian, and the
Custodian shall incur no liability for action upon any such oral instruction,
not for acting upon any written instructions believed by the Custodian to have
been given by a person authorized to give the same.
4. Subject in each case to the indemnification obligations set forth in
Section 7, in the event any Shares are not sold, the Custodian, as instructed in
writing by Company Counsel, shall deliver to the Selling Shareholder as soon as
practicable after termination of the offering of the Shares, certificates
representing such Shares deposited by the Selling Shareholder. Certificates
returned to the Selling Shareholder shall be returned with any related stock
powers, and any new certificates issued to the Selling Shareholder with respect
to such Shares shall bear any appropriate legend reflecting the unregistered
status thereof under the Act.
5. This Agreement is for the express benefit of the Company, the Selling
Shareholder, any other selling shareholders in the offering and the
Underwriters. The obligations and authorizations of the Selling Shareholder
hereunder are irrevocable and shall not be terminated by any act of the Selling
Shareholder or by operation of law, whether by the death, disability or
incapacity of the Selling Shareholder or by the occurrence of any other event or
events, and if after the execution hereof the Selling Shareholder shall die or
become disabled or incapacitated, or if any other event or events shall occur
before the delivery of the Shares hereunder to the Underwriters, the Shares
shall be delivered to the Underwriters in accordance with the terms and
conditions of this Agreement, as if such event had not occurred, regardless of
whether or not the Custodian shall have received notice of such event.
<PAGE>
6. Until payment of the purchase price for the Shares has been made to
the Selling Shareholder or to the Custodian, the Selling Shareholder shall
remain the owner of (and shall retain the right to receive dividends and
distributions on, and to vote) the Shares delivered to the Custodian hereunder.
Until such payment in full has been made or until the offering of Shares has
been terminated, the Selling Shareholder agrees that it will not give, sell,
pledge, hypothecate, grant any lien on, transfer, deal with or contract with
respect to the Shares and any interests therein.
7. The Custodian shall assume no responsibility to any person other than
to deal with the certificates for the Shares and the proceeds from the sale of
the Shares represented thereby in accordance with the provisions hereof, and the
Selling Shareholder hereby agrees to indemnify the Custodian for and to hold the
Custodian harmless against any and all losses, claims, damages or liabilities
incurred on its part arising out of or in connection with it acting as the
Custodian pursuant hereto, as well as the cost and expenses of investigating and
defending any such losses, claims, damages or liabilities, except to the extent
such losses, claims, damages or liabilities are due to the negligence or bad
faith of the Custodian. The Selling Shareholder agrees that the Custodian may
consult with counsel of its own choice (who may be counsel for the Company), and
the Custodian shall have full and complete authorization and protection for any
action taken or suffered by the Custodian hereunder in good faith and in
accordance with the opinion of such counsel.
8. The Selling Shareholder hereby represents and warrants that: (a) it
has, and at the time of delivery of the Shares to the Underwriters it will have,
full power and authority to enter into this Agreement, to carry out the terms
and provisions hereof and thereof and to make all of the representations,
warranties and agreements contained herein; (b) this Agreement is the valid and
binding agreements of the Selling Shareholder and is enforceable against the
Selling Shareholder in accordance with its terms; and (c) that the Selling
Shareholder has good and marketable title to the Shares, subject to no lien,
encumbrance, pledge, security interest or restriction of any kind.
9. The Selling Shareholder agrees not to offer, sell, sell short or
otherwise dispose of any shares of Common Stock of the Company or other capital
stock of the Company, or any other securities convertible, exchangeable or
exercisable for Common Stock or derivative of Common Stock owned by the Selling
Shareholder, or request the registration for the offer or sale of any of the
foregoing (or as to which the Selling Shareholder has the right to direct the
disposition of) for a period of 90 days after the date the Underwriting
Agreement is executed, except with the prior written consent of Alex, Brown &
Sons Incorporated.
10. The Custodian's acceptance of this Agreement by the execution hereof
shall constitute an acknowledgment by the Custodian of the authorization herein
conferred and shall evidence the Custodian's agreement to carry out and perform
this Agreement in accordance with its terms.
11. This Agreement may be executed in two or more counterparts with the
same effect as if the signatures thereto and hereto were upon the same
instrument.
<PAGE>
12. This Agreement shall be binding upon the Custodian, the Selling
Shareholder and the heirs, legal representatives, distributees, successors and
assigns of the Selling Shareholder.
13. This Agreement shall be governed by the laws of the State of New York
applicable to contracts made and to be performed entirely in such State.
14. Any notice given pursuant to this Agreement shall be deemed given if
in writing and delivered in person, or if given by telephone or telegraph if
subsequently confirmed by letter: (i) if to the Selling Shareholder, to him at:
-----------------------------------
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<PAGE>
and (ii) if to the Custodian, to it at:
The Bank of New York
Corporate Trust Administration
Attn: Fred Acebedo
101 Barclay Street, Floor 12-E
New York, New York, 10286.
15. The Custodian shall be entitled to act and conclusively rely upon any
statement, request, notice or instruction with respect to this Agreement given
to it on behalf of the Selling Shareholder if the same shall be made or given to
the Custodian by the Selling Shareholder, not only as to the authorization,
validity and effectiveness thereof, but also as to the truth and acceptability
of any information therein contained.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.
THE BANK OF NEW YORK, as Custodian
By:
------------------------------------
Name:
Title:
SELLING SHAREHOLDER:
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Name:
By:
------------------------------------
Name:
Title:
<PAGE>
EXHIBIT A
DESCRIPTION OF SHARES
CERTIFICATE NUMBER NUMBER OF SHARES
----------------
TOTAL NUMBER OF SHARES:
SELLING SHAREHOLDER:
- ------------------------------------
Name
By:
---------------------------------
Name:
Title:
Date:
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