Document:

Exhibit 10.3

 

INDENTURE SUPPLEMENT NO.
1

 

Indenture Supplement No. 1 (“Indenture Supplement”),
dated as of August 27, 2004, to the Indenture, dated December 23, 2003 (the “Indenture”),
by and among (i) Young Broadcasting Inc. (the “Company”), as issuer of the
8-3/4% Senior Subordinated Notes due 2014 (the “Notes”), (ii) Young
Broadcasting of Albany, Inc., Young Broadcasting of Lansing, Inc., Young
Broadcasting of Nashville, Inc., Young Broadcasting of Louisiana, Inc., Young
Broadcasting of Richmond, Inc., Young Broadcasting of Green Bay, Inc., Young
Broadcasting of Knoxville, Inc., Young Broadcasting of San Francisco, Inc.,
Young Broadcasting of Rapid City, Inc., Young Broadcasting of Sioux Falls,
Inc., Young Broadcasting of Davenport, Inc., Winnebago Television Corporation,
YBT, Inc., LAT, Inc., YBK, Inc., Honey Bucket Films, Inc., Adam Young Inc.,
KLFY, L.P., WKRN, G.P. and WATE, G.P., as guarantors of the Company’s
obligations under the Indenture and the Notes (each a “Subsidiary Guarantor”),
and (iii) Wachovia Bank, National Association, as trustee (the “Trustee”).

W I T N E S S E T
H:

 

WHEREAS, pursuant to Section 4.18 of the Indenture,
the Company and each Subsidiary Guarantor must cause a Restricted Subsidiary to
execute and deliver an indenture supplemental to the Indenture in order to
become an Additional Guarantor (capitalized terms used herein not otherwise
defined shall have the meanings given them in the Indenture and Notes); and

 

WHEREAS, the consent of Holders is not required to
execute and deliver this Indenture Supplement; and

 

WHEREAS, the Company has caused Young Broadcasting of
Nashville, LLC, a Delaware limited liability company that is an indirect
wholly-owned subsidiary of the Company (the “New Subsidiary”), to become a
Restricted Subsidiary, and the Company and each Subsidiary Guarantor desire to
cause the New Subsidiary to become an Additional Guarantor; and

 

WHEREAS, the Trustee has agreed to supplement the
Indenture on the terms and conditions as set forth herein.

 

NOW, THEREFORE, the Company, each Subsidiary
Guarantor, the Trustee and the New Subsidiary hereby agree as follows for the
benefit of each other and for the equal and ratable benefit of the holders of
the Notes:

 

SECTION 1.           ADDITIONAL GUARANTOR.

 

By execution of this Indenture Supplement, the New Subsidiary shall be
an Additional Guarantor and hereby agrees to be bound by the Guarantee of the
Notes without executing and delivering the Guarantee endorsed on the Notes.

 

All references to “Additional Guarantor” after the date hereof shall
include the New Subsidiary.

 

 

SECTION 2.           EFFECTIVE AMENDMENT.

 

Except as expressly set forth herein, this Indenture Supplement shall
not constitute a waiver or amendment of any term or condition of the Indenture
or the Notes and all such terms and conditions shall remain in full force and
effect and are hereby ratified and confirmed in all respects.

 

SECTION 3.           EXECUTION IN COUNTERPARTS.

 

This Indenture Supplement may be executed in any number of
counterparts, each of which when so executed being deemed an original and all
of which taken together constituting one and the same agreement.

 

SECTION 4.           GOVERNING LAW.

 

This Indenture Supplement shall be governed by the laws of the State of
New York without regard to the conflict of laws provisions thereof.

 

SECTION 5.           TRUSTEE.

 

The Trustee makes no representations as to the validity or sufficiency
of this Indenture Supplement.  The
recitals and statements herein are deemed to be those of the Company and the
Additional Guarantor and not of the Trustee.

 

IN WITNESS WHEREOF, the parties hereto have caused
this Indenture Supplement to be executed by their respective authorized
officers as of the date first above written.

 

	
   

  	
  THE ADDITIONAL
  GUARANTOR:

  
	
   

  	
   

  
	
   

  	
  YOUNG BROADCASTING OF
  NASHVILLE, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ James A. Morgan

  	
   

  
	
   

  	
   

  	
  James A. Morgan

  
	
   

  	
   

  	
  Executive Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE COMPANY:

  
	
   

  	
   

  
	
   

  	
  YOUNG BROADCASTING INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James A. Morgan

  	
   

  
	
   

  	
   

  	
  James A. Morgan

  
	
   

  	
   

  	
  Executive Vice
  President

  

 

2

 

	
   

  	
  THE SUBSIDIARY
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
  YOUNG BROADCASTING OF
  ALBANY, INC.

  
	
   

  	
  YOUNG BROADCASTING OF
  LANSING, INC.

  
	
   

  	
  WINNEBAGO TELEVISION
  CORPORATION

  
	
   

  	
  YOUNG BROADCASTING OF
  NASHVILLE, INC.

  
	
   

  	
  YBT, INC.

  
	
   

  	
  WKRN, G.P.

  
	
   

  	
  By: Young Broadcasting
  of Nashville,

  
	
   

  	
  Inc.,
  General Partner

  
	
   

  	
  YOUNG BROADCASTING OF
  LOUISIANA, INC.

  
	
   

  	
  LAT, INC.

  
	
   

  	
  KLFY, L.P.

  
	
   

  	
  By: Young Broadcasting
  of Louisiana,

  
	
   

  	
  Inc.,
  General Partner

  
	
   

  	
  YOUNG BROADCASTING OF
  RICHMOND, INC.

  
	
   

  	
  YOUNG BROADCASTING OF
  GREEN BAY, INC.

  
	
   

  	
  YOUNG BROADCASTING OF
  KNOXVILLE, INC.

  
	
   

  	
  WATE, G.P.

  
	
   

  	
  By: Young Broadcasting
  of Knoxville,

  
	
   

  	
  Inc.,
  General Partner

  
	
   

  	
  YBK, INC.

  
	
   

  	
  YOUNG BROADCASTING OF
  DAVENPORT, INC.

  
	
   

  	
  YOUNG BROADCASTING OF
  SIOUX FALLS, INC.

  
	
   

  	
  YOUNG BROADCASTING OF
  RAPID CITY, INC.

  
	
   

  	
  YOUNG BROADCASTING OF
  SAN FRANCISCO, INC.

  
	
   

  	
  ADAM YOUNG INC.

  
	
   

  	
  HONEY BUCKET FILMS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ James A. Morgan

  	
   

  
	
   

  	
   

  	
  Name: James A. Morgan

  
	
   

  	
   

  	
  Title: Executive Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE TRUSTEE:

  
	
   

  	
   

  
	
   

  	
  WACHOVIA
  BANK, NATIONAL ASSOCIATION, as

  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

3Exhibit
10.4

 

[CBS letterhead]

 

September 30, 2004

 

 

VIA FACSIMILE – 615-369-7388

& DHL EXPRESS

 

Ms. Deborah McDermott 

President, Broadcast Group 

Young Broadcasting

441 Murfreesboro Road 

Nashville, TN 
37210

 

Re:                               Station
Affiliation Agreements dated September 19, 1994 (as amended) 

between (i) Young Broadcasting of Lansing, Inc. and CBS for WLNS-TV 

in Lansing, Michigan; and (ii) KLFY, L.P. and CBS for KLFY-TV in 

Lafayette, Louisiana (“CBS Affiliation Agreements”)

 

Deb,

 

In order to extend the Agreement for an
additional one (1) week, Paragraph 3(a) of the Agreement is hereby deleted and
replaced by the following new Paragraph 3(a):

 

	
   

  	
  “3.

  	
  Term and Termination.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  Term.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The term of this Agreement shall be the
  period commencing on October 1, 2004 and expiring on October 7, 2004.
  Notwithstanding any provision of any offer or acceptance under Paragraph I
  hereof, upon the expiration or any termination of the term of this Agreement,
  Broadcaster shall have no right whatsoever to broadcast over Affiliated
  Station any Network Program.”

  

 

Please sign below indicating your acceptance
and return to us for counter-execution.

 

Sincerely,

 

	
  CBS Affiliate Relations,

  a subsidiary of CBS, Inc.

  	
  YOUNG BROADCASTING

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Peter K. Schruth

  	
   

  	
  /s/ Deborah McDermott

  	
   

  
	
  Peter K. Schruth

  	
  Deborah McDermottExhibit 10.5

[CBS letterhead]

 

October 6, 2004

 

VIA FACSIMILE — 615-369-7388 & 

DHL EXPRESS

 

 

Ms. Deborah McDermott 

President, Broadcast Group 

Young Broadcasting

441 Murfreesboro Road 

Nashville, TN 
37210

 

Re:                               Station
Affiliation Agreements dated September 19, 1994 (as amended) between (i) Young
Broadcasting of Lansing, Inc. and CBS for WLNS-TV in Lansing, Michigan; and
(ii) KLFY, L.P. and CBS for KLFY-TV in Lafayette, Louisiana (“CBS
Affiliation Agreements”)

 

Deb,

 

In order to extend the Agreement for an additional one
(1) week, Paragraph 3(a) of the Agreement is hereby deleted and replaced by the
following new Paragraph 3(a):

 

	
   

  	
  “3.

  	
  Term and Termination.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  Term.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The term of this Agreement shall be the period
  commencing on October 6, 2004 and expiring on October 13, 2004.
  Notwithstanding any provision of any offer or acceptance under Paragraph 1
  hereof, upon the expiration or any termination of the term of this Agreement,
  Broadcaster shall have no right whatsoever to broadcast over Affiliated
  Station any Network Program.”

  

 

Please sign below indicating your acceptance and
return to us for counter-execution.

 

Sincerely,

 

	
  CBS Affiliate Relations,

  a subsidiary of CBS, Inc.

  	
  YOUNG BROADCASTING

  
	
   

  	
   

  
	
  /s/ Peter K. Schruth

  	
   

  	
  /s/ Deborah McDermott

  	
   

  
	
  Peter K. Schruth

  	
  Deborah McDermottExhibit 10.6

 

Confidential Treatment has been
requested for portions of this Exhibit. The Confidential portions have been
redacted and are denoted by ***. The Confidential portions have been separately
filed with The Securities and Exchange Commission.

 

September 29, 2004

 

 

Ms. Deborah McDermott

 

President, Broadcast Group

 

Young Broadcasting

 

599 Lexington Avenue, 47th Floor New York, NY 10022

 

Dear Deborah:

 

Reference is made to the
Affiliation Agreement (“the Agreement”) between KLFY, L.P. (“Broadcaster”) and
CBS, dated September 19, 1994, as amended, regarding the affiliation of
television station KLFY-TV (“Station”), in Lafayette, Louisiana, with the CBS
Television Network.

 

You and we mutually agree in
this Letter Agreement to the following amendments and additional terms and
conditions of the Agreement:

 

1.                                       In
order to clarify that Broadcaster’s “first call” rights to Network Programs
extend to such programs in digital format, you and we agree that the initial
words of Paragraph 1 oldie Agreement prior to the start of
Subparagraph 1(a) shall be deleted and replaced by the following language:

 

“1.                                 Offer,
Acceptance and Delivery of Network Programs

 

Broadcaster
shall have a “first call”, as set forth below, on the program offerings of the
CBS Television Network (“Network Programs”). 
Such “first call” rights shall apply to Network Programs in both analog
and digital format, it being understood that, with respect to digital
broadcasting, “Network Programs” shall refer to the “Primary Network Feed”,
which during the digital transition shall mean the digital version of those
programs transmitted to CBS Affiliates for the purpose of analog broadcasting,
and not necessarily to any additional program streams that may be transmitted
by the Network (i.e., “multi-plexed” programming).”

 

2.                                       In
order to clarify that Broadcaster’s network non-duplication protection and
retransmission consent rights apply to digital as well as analog broadcasting
of Network Programs, you and we agree that the words “in any and all formats”
shall be inserted into the second line of Subparagraph 9(b) of the
Agreement after the words “network programming”, and in the first line of
Subparagraph 4(b) after the word “signal”. 
Thus, the beginning of these subparagraphs will read as follows:

 

Subparagraph 9’b’

“Broadcaster
shall be entitled to exercise, within Affiliated Station’s Network Exclusivity
Zone, the protection against duplication of network programming in any and all
formats...”

 

Also, due to
modification of the FCC’s regulations, you and we agree that the reference in
the same Subparagraph 9(b) to “Section 76.92 Through 76.97 of the FCC
rules” shall be amended to read “Sections 76.92 through 76.95 of the FCC
rules,”

 

Subparagraph 4(b)

“Broadcasters
may grant consent to the retransmission of Affiliated Station’s signal, in any
and all formats...”

 

3.                                       
In addition, you and we agree to the following additional terms and conditions
which shall be made part of the Agreement:

 

Subject to the
same terms and conditions specified in the Affiliation Agreement including,
without limitation, those set forth in Paragraph 4 thereof and upon
commencement of operation of the Station’s digital (“DTV”) channel, the Station
will, to the same extent as the Agreement provides for carriage of Network
programs on its analog channel, transmit on such DTV channel the digital feed
of such Network programs in the technical format; consistent with the ATSC
standards, provided by CBS, which shall be deemed to include the transmission
by Station of all program related material, as defined below, provided by CBS
which can be accommodated within a six MHz channel carrying a data stream of up
to 19.4 megabits per second.  It is
expressly understood that this Agreement applies only to the primary network
feed in digital format of the program provided by the Network to its affiliated
stations for the purpose of analog broadcasting, together with any associated
program related material, and that Broadcaster will in no

 

 

event be
required to carry additional Network digital programming (i.e., “multiplexed”
programming).  Consistent with and
subject to the foregoing, the Station shall have the right to use any available
portion of its digital signal for the purpose of transmitting local programs or
any other material for any business purpose; provided, however, that in the
event that CBS proposes that the Station carry Network multiplexed programming
or ancillary data which is not “program related” as defined below, Broadcaster
agrees to negotiate in good faith with CBS regarding the terms pursuant to
which such multiplexed programming or ancillary data may be carried.  As used in this paragraph, “program-related
material” shall mean ***.

 

4.                                       Subject
to the FCC’s right-to-reject under Section 73.658(e) of the FCC’s rules,
Station will provide full, in-pattern clearance of all programs (or, any
program’s replacement) on the CBS Television Network program schedule in all
day-parts (including, but not limited to, Weekend Sports programming), as set
forth in the attached Schedule A. 
Station agrees not to downgrade (i.e., delay to any period) or cancel
clearance of any Network Program without the written consent of CBS.  Further, (i) upon expiration or
termination of station’s current program agreement with Ken Copeland, Station
agrees to provide LIVE clearance of FACE THE NATION (or its replacement)
currently at 9:30–10:00 A.M. local time, Monday – Friday, and (ii) upon
elimination of the current co-op version of THE EARLY SHOW (or its
replacement), Station agrees to provide live clearance of the fall-network
format of the program from 7:00-9:00 a.m. local time, Monday-Friday.

 

Broadcaster
agrees to limit one-time-only primetime preemptions to no more than 15 hours
per calendar year allocated proportionally in partial years (“the Primetime
Preemption Cap”).  Primetime Preemptions
in excess of 15 hours annually will be deemed a breach of the Agreement unless
such preemptions are made pursuant to Section 73.658(e) of the FCC’s
rules.

 

Similarly,
Broadcaster agrees to limit one-time-only preemptions of Weekend Sports
programming to no more than 25 hours per calendar year (“the Weekend Sports Cap”).  Weekend Sports preemptions in excess of 25
hours annually will be deemed a breach of the Agreement unless such preemptions
are made pursuant to Section 73.658(e) of the FCC’s rules.

 

It is
understood that Station’s obligations pursuant the above paragraph shall be
subject to Station’s rights under Section 73.658(e) of the FCC’s rules and
Paragraph 5(a) of the Agreement, and that Station’s legitimate exercise of
such rights shall in no event be deemed a breach of the obligations set forth
in the above paragraph and shall not count against the Primetime Preemption Cap
or the Weekend Sports Cap as set forth above; provided, however, that nothing
in the foregoing will be construed to permit Station to preempt a program,
regardless of the reason for the preemption, in its live or agreed time period,
and then broadcast such program in a different time period, without the express
written consent of CBS; provided however, Station may broadcast up to 2 hours
of the CBS’s weekend children’s programming during weekends in other time
periods, except these programs may not be broadcast, without CBS’s consent, in
other CBS Network time periods and must be broadcast in consistent time
periods.  Clearance of CBS programming is
subject to CBS continuing to offer general entertainment programming.

 

5.                                       In
order to extend the Agreement for an additional eight (8) year term,
Paragraph 3(a) of the Agreement is hereby deleted and replaced by the
following new Paragraph 3(a):

 

***         Subject to request for confidential treatment; separately
filed with the Commission.

 

2

 

“3.                                 Term
and Termination.

 

(a)                                  Term.

 

The term of this Agreement shall be the
period commencing on October 1, 2004 and expiring on September 30, 2012.  Notwithstanding any provision of any offer or
acceptance under Paragraph 1 hereof, upon the expiration or any termination
of the term of this Agreement, Broadcaster shall have no right whatsoever to
broadcast over Affiliated Station any Network Program.”

 

6.                                       The
Affiliated Station’s Network Rate and Net Compensation as specified in
Paragraph 2) of the Agreement will be revised to the amount shown below on
the indicated Effective Date:

 

	
  Effective

  Date

  	
   

  	
  Network

  Rate*

  	
   

  	
  Net

  Compensation

  	
   

  
	
  Oct. 1, 2004-Dec. 31, 2004

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   

  
	
  Jan, 1, 2005 – Sept, 30, 2005

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   

  
	
  Oct. 1, 2005-Sept. 30, 2006

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   

  
	
  October 1, 2006-September 30, 2014

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   

  

 

*To be confirmed by the parties

 

7.                                       CBS
agrees to pay Station a one-time-only promotion fee of *** on or before
December 31, 2004.

 

8.                                       Station
agrees to participate in CBS’ Coop Program at its current level and as
currently defined and requested by CBS.

 

9.                                       The
terms of this Letter and Affiliation Agreement, and discussions related
thereto, will not be disclosed to anyone who is not either employed by the
Station or the corporate ownership of the Station; it being understood,
however, that adherence to FCC filing requirements will not constitute a
violation of this point.  Any press
release regarding the terms of this negotiation or Agreement, shall be made
jointly by the parties.  The parties
participation in negotiations related hereto shall constitute their agreement
to comply with this Confidentiality provision.

 

Further, it is hereby ratified
and reaffirmed that throughout this Term the: 1) Terms of the September
23, 1998 and October 22, 2001 Letter Agreements between you and us which
established, among other things, Station’s NFL Contribution and placed various
program exclusivity requirements on the Network remain in full force and
effect, per the terms of that Letter Agreement (plus any increase or renewals
agreed to by Broadcaster and the CBS Affiliate Board); 2) Station’s
participation in the NCAA.  Exchange
Value Program will continue as set forth in the December 2, 2003 Letter for the
term of this Agreement; and 3) Station’s participation in CBS Newspath
will continue at the current rate of $*** plus ***% annual increase through
September 30, 2007 and, thereafter, by such annual increases agreed to by
Broadcaster and the CBS Affiliate Board.

 

As herein amended, all terms
and conditions of the Agreement are ratified and confirmed.  All individual reference herein to Station or
Broadcaster shall apply to both collectively,

 

Four copies of this Letter Agreement are enclosed.  Please indicate your approval by signing each
copy in the space provided below, retain two copies for your records, and return
two copies to me.

 

Accepted and
agreed:

 

	
  KLFY, L.P.

  	
  CBS AFFILIATE RELATIONS

  
	
   

  	
  A Unit of CBS Broadcasting,
  Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Deborah
  McDermott

  	
   

  	
  By:

  	
  /s/ Peter K.
  Schruth

  	
   

  
	
   

  	
   

  	
  Peter K.
  Schruth, President

  
	
   

  	
   

  
	
   

  	
   

  
	
  Best regards,

  	
   

  
	
   

  	
   

  
	
  cc:

  	
  P. Schruth, P. Farr, J. Mitchell, R Weiss

  	
   

  
							

 

***  Subject
to request for confidential treatment; separately filed with the Commission.

 

3

 

Schedule A KLFY

 

Current clearance of all CBS Network programs on KLFY (all times local):

 

 

	
  Monday-Friday

  	
   

  
	
  CBS Morning
  News

  	
  4:00-4:30
  a.m.

  
	
  The Early
  Show

  	
  7:00-9:00
  a.m. (co-op)

  
	
  Price Is
  Right

  	
  10:00
  a.m.-11:00 a.m.

  
	
  Young &
  Restless

  	
  11:00-12:00
  p.m.

  
	
  Bold &
  Beautiful

  	
  12:30-1:00
  p.m.

  
	
  As The World
  Turns

  	
  1:00-2:00
  p.m.

  
	
  Guiding
  Light

  	
  2:00-3:00
  p.m.

  
	
  CBS Evening
  News

  	
  5:30-6:00
  p.m.

  
	
  Prime Time

  	
  7:00-10:00
  p.m.

  
	
  Late Show

  	
  10:35
  p.m.-11:37 p.m.

  
	
  Late Late
  Show

  	
  12:37
  a.m.-1:37 a.m. (one hour delay)

  
	
  Up To The
  Minute

  	
  Mon-Fri
  1:30-4:00 a.m.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Saturday

  	
   

  
	
  Sat. Early
  Show

  	
  7:00-9:00
  a.m.

  
	
  Kids Programming

  	
  9:00.11:30
  a.m.

  
	
  Sat. Evening
  News

  	
  5:30-6:00
  p.m.

  
	
  Prime Time

  	
  7:00-10:00
  p.m.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Sunday

  	
   

  
	
  CBS Sun.
  Morning

  	
  8:00-9:30
  a.m.

  
	
  Kids
  Programming

  	
  9:30-10:00
  a.m.

  
	
  Face The
  Nation

  	
  Unavailable

  
	
  Sun. Evening
  News

  	
  5:00-5:30
  p.m.

  
	
  Prime Time

  	
  6:00-10:00
  p.m.

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