Document:

Exhibit 10.15

 

JOINT
SALES AGREEMENT

 

THIS JOINT SALES AGREEMENT  (this “Agreement”) is made as of this 31st day of
August 2007, (the “Effective
Date”), by and among Barrington
Traverse City LLC, a Delaware limited liability company (“Sales Agent”) and Tucker Broadcasting of Traverse City, Inc. (“Station Licensee”),
a Delaware corporation.

 

W I T N E S S E T H:

 

WHEREAS, Sales Agent is a party
to that certain Asset Purchase Agreement, by and among Max Media LLC and MTC
License LLC (collectively, “Sellers”) and Sales Agent, dated as of the date hereof
(the “Station Purchase
Agreement”) pursuant to which Sales Agent has agreed to purchase
certain assets of the Sellers related to the television broadcast stations
WGTU, channel 29, Traverse City, Michigan (“WGTU”) and WGTQ, channel 8, Sault Ste.
Marie, Michigan (“WGTQ”
and together with WGTU, the “Stations”) each serving the Traverse City/Cadillac,
Michigan market;

 

WHEREAS, Sales Agent and
Station Licensee are parties to that certain Assignment and Assumption Agreement,
dated as of the date hereof (the “Assignment and Assumption Agreement”),
pursuant to which Sales Agent has assigned certain of its rights under the
Station Purchase Agreement to Station Licensee, including the right to purchase
the FCC licenses (the “FCC
Licenses”) for, and the assets of, the Stations;

 

WHEREAS, in order to better and more efficiently promote the economic
and business development of the Stations following the closing of the
transactions contemplated by the Station Purchase Agreement, the parties desire
to enter into this Agreement as of and with respect to the period following the
Base Date (as defined below); and 

 

WHEREAS, simultaneously with
the execution and delivery of this Agreement, the parties hereto are entering
into that certain Shared Services Agreement, with respect to which Sales Agent
shall provide certain services and make available to the Station Licensee
certain technical and other facilities (the “Shared Services Agreement”).

 

NOW, THEREFORE, in
consideration of the foregoing premises and the mutual promises, undertakings,
covenants and agreements of the parties contained in this Agreement, the
parties hereto, intending to be legally bound, hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.1       Terms Defined in this Section.  The following terms, as used in this
Agreement, shall have the meanings set forth in this Section:

 

 

“Affiliate” means, with respect to any Person,
(a) any other Person that, directly or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with
such Person, or (b) an officer or director of such Person or of an Affiliate of
such Person within the meaning of clause (a) of this definition.  For purposes of clause (a) of this
definition, without limitation, (i)
a Person shall be deemed to control another Person if such Person (A) has
sufficient power to enable such Person to elect a majority of the board of
directors (or comparable governing body) of such Person, or (B) owns a majority
of the beneficial interests in income and capital of such Person, and (ii) a Person shall be deemed to control
any partnership of which such Person is a general partner.

 

“Applicable Law”
means any of the Communications Act, the FCC Rules, and all other federal, state
and local constitutions, laws, statutes, codes, rules, regulations, ordinances,
judgments, orders, decrees and the like of any governmental entity, including
common law.

 

“Base Date”
means the date on which the closing of the Station Purchase Agreement shall
have occurred.

 

“Communications
Act” means the Communications Act of 1934, as amended, as in
effect from time to time.

 

“FCC”
means the Federal Communications Commission or any successor agency thereto.

 

“FCC Rules”
means the rules and published policies of the FCC, as in effect from time to
time.

 

 “Market” means the
Nielsen “Designated Market Area” that encompasses the Stations. 

 

“Network” means any national television
network party to any network affiliation agreement to which Licensee is a party
with respect to the Station.

 

“Obligations of Sales Agent” means any and all
obligations and duties of Sales Agent under (i)
this Agreement, and (ii) the
Shared Services Agreement.

 

 “Person” includes, without limitation,
natural persons, corporations, business trusts, associations, companies, joint
ventures, and partnerships.

 

“Third Party
Claim” means any action, suit, claim or legal, administrative,
arbitration, mediation, governmental or other proceeding or investigation,
other than any brought by a party to this Agreement or an Affiliate of a party
to this Agreement.

 

 “Transaction Documents” means this
Agreement, the Shared Services Agreement, the Option Agreement, the Letter
Agreement, the Station Purchase Agreement, the Assignment and Assumption Agreement
and the other documents, agreements and instruments executed by the parties
hereto and thereto in connection therewith.

 

Section 1.2       Additional Defined Terms.  In addition to the defined terms in the
preamble, recitals and Section 1.1 hereof, the following is a list of
terms used in this Agreement and a reference to the section or schedule hereof
in which such term is defined:

 

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  Term

  	
   

  	
  Section/Schedule

  
	
   

  	
   

  	
   

  
	
  Acquisition Financing Arrangement

  	
   

  	
  Schedule 3.1

  
	
  Advertisements

  	
   

  	
  Section 4.1

  
	
  Broadcast Material

  	
   

  	
  Section 4.3

  
	
  Defense Counsel

  	
   

  	
  Section 8.3

  
	
  Defense Notice

  	
   

  	
  Section 8.3

  
	
  Delivered Programming

  	
   

  	
  Section 4.2

  
	
  Designated Expenses

  	
   

  	
  Schedule 3.1

  
	
  Direct Claim

  	
   

  	
  Section 8.3(e)

  
	
  Disclosure Statement

  	
   

  	
  Section 5.2(c)

  
	
  Indemnified Party

  	
   

  	
  Section 8.3

  
	
  Indemnifying Party

  	
   

  	
  Section 8.3

  
	
  Initial Term

  	
   

  	
  Section 2.1(a)

  
	
  Licensee Revenue Share

  	
   

  	
  Section 3.1(a)

  
	
  Loss

  	
   

  	
  Section 8.1

  
	
  Net Sales Revenue

  	
   

  	
  Schedule 3.1

  
	
  Operating Budget

  	
   

  	
  Section 5.1(d)

  
	
  Option Agreement

  	
   

  	
  Section 2.2(a)

  
	
  Other Expenses

  	
   

  	
  Schedule 3.1

  
	
  Policy Statement

  	
   

  	
  Section 4.3

  
	
  Premises

  	
   

  	
  Section 5.4

  
	
  Principal Agreements

  	
   

  	
  Schedule 3.1

  
	
  PSAs

  	
   

  	
  Section 4.4

  
	
  Ratings Agencies

  	
   

  	
  Section 5.1(j)

  
	
  Sales Agent Assignee

  	
   

  	
  Section 9.3

  
	
  Sales Agent Indemnified Party

  	
   

  	
  Section 8.2

  
	
  Station Indemnified Party

  	
   

  	
  Section 8.1

  
	
  Term

  	
   

  	
  Section 2.1(b)

  
	
  Trade Agreements

  	
   

  	
  Section 4.5

  

 

ARTICLE II

 

TERM

 

Section 2.1       Term.

 

(a)   Initial
Term.  This Agreement shall be
deemed effective, and the initial term hereof shall commence, on and as of the
Base Date and such initial term (the “Initial Term”) shall continue until the
eighth (8th) anniversary of the Base Date, unless terminated in accordance with
Section 2.2 below.

 

(b)   Renewal
Term.  This Agreement shall be
renewed automatically for an additional term of eight (8) years commencing on
the day following the expiration of the Initial Term (the Initial Term and any
such renewal terms hereinafter referred to as the “Term”); provided,  however, that this Agreement may be
terminated by Sales Agent, on the one hand, or Station Licensee, on the other,
prior to the expiration of the Initial Term by delivery to the other party of
180 days prior written notice of such termination, which notice may be given by
such

 

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party to the other party
commencing on the date which is seven (7) years and six (6) months after the
Base Date.

 

Section 2.2       Termination.

 

(a)   Mutual
Agreement.  This Agreement may
be terminated at any time by mutual agreement of the parties hereto.  This Agreement shall terminate upon the
Option Closing (as such term is defined in the Option Agreement) under that
certain Option Agreement, dated as of the date hereof, by and between Station
Licensee and Sales Agent, as such agreement may be amended from time to time
pursuant to the terms thereof (the “Option Agreement”).

 

(b)   Termination
by Station Licensee or  Sales Agent.  This Agreement may be terminated by Station
Licensee or Sales Agent, by written notice to the other, upon the occurrence of
any of the following events; provided
that any such termination shall be effective as of the date thirty (30) days
after such notice:

 

(i)            this Agreement has been
declared invalid under Applicable Law or illegal in whole or substantial part
by an order or decree of an administrative agency or court of competent
jurisdiction which is not subject to appeal or further administrative or
judicial review, and the parties, acting in good faith, are unable to agree
upon a modification of the Agreement so as to cause the Agreement to comply
with Applicable Law; or

 

(ii)           there has been a change in
the Communications Act or the FCC Rules that causes this Agreement in its
entirety to be in violation thereof and the applicability of such change is not
subject to appeal or further administrative review; and the parties, acting in
good faith, are unable to agree upon a modification of the Agreement so as to
cause the Agreement to comply with the Communications Act or the FCC Rules as
so changed.

 

(c)   Termination
by Sales Agent.  This
Agreement may be terminated by Sales Agent, by written notice to Station
Licensee, upon the occurrence of any of the following events, provided that any such termination shall
be effective as of the date thirty (30) days after such notice and provided  further
that if there is an exercise of the Option (as defined in the Option Agreement)
under the Option Agreement prior to any such termination or during the 30-day
period thereafter, the termination hereunder shall not be effective until the
either of (i) the Option Closing
(as defined in the Option Agreement) or (ii)
the termination of the Option Agreement:

 

(i)            if Sales Agent is not then
in material breach and Station Licensee is in material breach under this
Agreement or the Shared Services Agreement (other than a breach by Station
Licensee of any of its payment obligations under the Shared Services Agreement)
and Station Licensee has failed to cure such breach within thirty (30) days
after receiving written notice of such breach from Sales Agent, or if Sales
Agent is not then in material breach and Station Licensee breaches any of its
payment obligations to Sales Agent under the Shared Services Agreement (other
than any such payment obligation that is being contested in good faith) which
breach shall not have been cured within fifteen (15) days after receiving
written notice of such breach from Sales Agent;

 

(ii)           if Station Licensee or any
Affiliate of Station Licensee makes a general assignment for the benefit of
creditors, files, or has filed against it, a petition for

 

4

 

bankruptcy, reorganization
or an arrangement for the benefit of creditors, or for the appointment of a
receiver, trustee, or similar creditor’s representative for the property or
assets of Station Licensee or any Affiliate of Station License under any
federal or state insolvency law which, if filed against Station Licensee or any
Affiliate of Station Licensee, has not been dismissed within thirty (30) days
thereof; or

 

(iii)          upon and at any time
following termination of the Option Agreement.

 

(d)   Termination
by Station Licensee.  This
Agreement may be terminated by Station Licensee, by written notice to Sales
Agent, upon the occurrence of any of the following events, provided that any such termination shall
be effective as of the date thirty (30) days after such notice and provided  further
that if there is an exercise of the Option under the Option Agreement prior to
any such termination or during the 30-day period thereafter, the termination
hereunder shall not be effective until the either of (i) the Option Closing or (ii) the termination of the Option
Agreement:

 

(i)            if Station Licensee is not
then in material breach and Sales Agent breaches any of its obligations under
this Agreement or the Shared Services Agreement which breach reasonably could
be expected to result in the revocation or non-renewal of the Stations’ FCC
Licenses and such breach shall not have been cured within thirty (30) days
after receiving written notice of such breach from Station Licensee, or if
Sales Agent breaches any of its payment obligations to Station Licensee (other
than any such payment obligation that is being contested in good faith) which
breach shall not have been cured within fifteen (15) days after receiving
written notice of such breach from Station Licensee; 

 

(ii)           if Sales Agent or any of its
Affiliates makes a general assignment for the benefit of creditors, files, or
has filed against it a petition for bankruptcy, reorganization or an
arrangement for the benefit of creditors, or for the appointment of a receiver,
trustee, or similar creditor’s representative for the property or assets of
Sales Agent or any of its Affiliates under any federal or state insolvency law
which, if filed against Sales Agent or any of its Affiliates, has not been
dismissed within thirty (30) days thereof; or

 

(iii)          upon and at any time
following termination of the Option Agreement.

 

Section 2.3       Certain Matters Upon Termination.  

 

(a)   Continuing
Obligations.  No expiration or
termination of this Agreement shall terminate the obligations of any party
hereto to indemnify the other parties for Third Party Claims under Section 8 of
this Agreement, or limit or impair any party’s rights to receive payments due and
owing hereunder on or before the effective date of such termination.

 

(b)   Cooperation.  Notwithstanding anything to the contrary
contained in this Agreement, if this Agreement is terminated pursuant to the
second sentence of Section 2.2(a) following the Option Closing, the parties
shall cooperate with each other as may be reasonably requested to effect an
allocation of the revenues and expenses for any partial calendar month

 

5

 

resulting from such termination
or to effect any working capital payment required in connection with such
allocation or a related transfer of control pursuant to the Option Agreement. 

 

ARTICLE III

 

CONSIDERATION

 

Section 3.1       Licensee Revenue Share.  

 

(a)   As consideration for the right of Sales
Agent to market and sell air time made available under this Agreement, with
respect to each calendar month during the Term, Sales Agent shall pay over to
Station Licensee an amount equal to seventy percent (70%) of the total amount
of Net Sales Revenue for the applicable calendar month (the “Licensee Revenue Share”).  Sales Agent shall retain the remaining thirty
percent (30%) of the total amount of Net Sales Revenue for such calendar month
as its commission with respect to its sales agency, programming and other
duties hereunder.  

 

(b)   The Licensee Revenue Share shall be due and
payable on the fifteenth (15th) day of each calendar month and shall be
calculated with respect to the immediately preceding calendar month in
accordance with Schedule 3.1.  The Licensee Revenue Share shall be prorated
for any partial calendar month during the Term.

 

ARTICLE IV

 

SCOPE OF SERVICES

 

Section 4.1       Sales and Related Services.  Except as expressly provided to the contrary
herein, Station Licensee retains Sales Agent on an exclusive basis for the Term
to market and sell all forms of regional and local spot advertising,
sponsorships, direct response advertising, paid programming (including
infomercials), and all long-form advertising broadcast on the Stations and all
advertising on any Internet site maintained by or on behalf of the Stations
during the Term (the “Advertisements”).  Subject to the  terms of Schedule
3.1, national spot advertising broadcast on the Stations shall
continue to be sold by the Stations’ national rep firm as selected from time to
time by Station Licensee.  Station
Licensee shall provide to Sales Agent and its employees such information as
Sales Agent may reasonably request to support the marketing and sale of the
Advertisements and the collection of accounts receivable with respect
thereto.  Sales Agent also shall be
responsible for the Stations’ traffic, billing and collection functions for the
Advertisements.  Sales Agent shall
designate an adequate number of its personnel to perform such services for the
Stations.  Sales Agent shall conduct the
sales and traffic functions for the Stations in accordance with standard
practice in the industry.  Sales Agent and
Station Licensee shall periodically review the personnel needs and job functions
of the persons designated by Sales Agent to perform its obligations under this
Agreement and implement such changes as they mutually agree are
appropriate.  Revenues from the sale of
the Advertisements shall be allocated between Sales Agent and Station Licensee
as set forth in Section 3.  Sales Agent
may sell the Advertisements in combination with any other broadcast stations of
its choosing; provided,  however,
that under no circumstances may Sales Agent require advertisers to purchase
time on the Stations and any other station together.  Subject to Section 4.3, the placement,
duration and rates of the Advertisements shall be determined by Sales
Agent.  The value of commercial time
bartered in

 

6

 

exchange
for programming shall be excluded from the definition of Net Sales
Revenue.  Network compensation and
retransmission fees payable in connection with the Stations shall be included
in the computation of Net Sales Revenue.

 

Section 4.2       Delivered Programming.  Commencing on the Base Date, Sales Agent
shall provide to the Station Licensee for broadcast, simulcast or rebroadcast
on the Stations, as applicable, local news and other programming as described
more particularly in Schedule 4.2
hereof (the “Delivered
Programming”), which Delivered Programming shall be less than 25
hours per week and less than 15% of the Stations’ broadcast hours for any
week.  Sales Agent shall be responsible
for obtaining the rights to broadcast the Delivered Programming on the Stations
and for paying all costs incurred in obtaining such rights.  To the extent permission is required to
rebroadcast any Delivered Programming under Section 325 of the Communications
Act, Sales Agent hereby grants Station Licensee such permission.  The Delivered Programming shall be subject to
Sales Agent’s editorial judgment and the requirements of Section 4.3, including
but not limited to the right of rejection or preemption of Station
Licensee.  All Delivered Programming
shall be in conformity in all material respects with standards established by
Station Licensee and consistent with similar programming broadcast on Sales
Agent’s own television broadcast stations and shall otherwise conform to all
Applicable Law, including the Communications Act, the FCC Rules and the
intellectual property rights of third parties.    

 

Section 4.3       Content Policies.  All material furnished by Sales Agent for
broadcast on the Stations, including all Delivered Programming and
Advertisements (collectively, “Broadcast Material”) shall comply with applicable
federal, state and local regulations and policies, including commercial limits
in children’s programming.  Station
Licensee shall have the right to preempt any Broadcast Material to present
program material of greater local or national importance.  Station Licensee may reject any Broadcast
Material if it reasonably determines that the broadcast of such material would
violate Applicable Law or would otherwise be contrary to the public interest.  Station Licensee shall promptly notify Sales
Agent of any such rejection, preemption, or rescheduling and shall cooperate
with Sales Agent in efforts to fulfill commitments to advertisers and
syndicators.  Schedule 4.3 sets forth Station Licensee’s statement of
policy (the “Policy Statement”)
with regard to the Broadcast Material. 
Sales Agent shall ensure that the Broadcast Materials are in compliance
with the terms of this Agreement and the Policy Statement.

 

Section 4.4       Public Service Announcements. Sales Agent acknowledges
that the Stations have in the past provided time on the Stations for the
promotion of public service organizations in the form of public service
announcements (“PSAs”),
and agrees that it will release spot time to Station Licensee for the broadcast
of PSAs at times and in amounts consistent with the Stations’ past practices
and consistent with Sales Agent’s operating policies applicable to the
broadcast of PSAs.  Station Licensee and
Sales Agent shall cooperate in good faith concerning the placement of the PSAs
to be broadcast on the Stations; provided,  however,
that Station Licensee shall be ultimately responsible for selecting, obtaining
and scheduling PSAs for broadcast on the Stations.

 

Section 4.5       Trade and Barter Spots.  On or as soon as reasonably practicable after
the Base Date, Station Licensee shall deliver to the Sales Agent a list, which
is accurate and complete in all material respects, of all contracts for the
sale of advertising time on the Stations for non-cash consideration that are in
effect as of, and will extend beyond, the Base Date (“Trade

 

7

 

Agreements”).  Sales Agent shall comply with and honor all
such Trade Agreements, if and to the extent that Trade Agreement spots may be
broadcast on a preemptible basis.  The
dollar value of advertising time on the Stations provided to advertisers
pursuant to Trade Agreements shall not be included in the computation and
determination of Net Sales Revenue for purposes of this Agreement.  After the Base Date Sales Agent and Station
Licensee shall have the right to enter into new contracts for the sale of
Advertisements for non-cash consideration, provided
that the parties agree to each such Trade Agreement and provided  further
that the dollar value of such advertising time on the Stations for such Trade
Agreements shall be included in the computation and determination of Net Sales
Revenue for purposes of this Agreement. 
The parties shall mutually agree as to the use of the non-cash
consideration received for each new Trade Agreement.  For purposes of this Section 4.5, the term
“Trade Agreement” applies only to the bartering of advertising in return for
goods and services other than programming.

 

Section 4.6       Accounts Receivable.  Notwithstanding anything to the contrary
contained herein, any accounts receivable or revenue received by Sales Agent in
respect of the operation of the Stations during the period prior to the Base
Date, in respect of which the Sellers received a credit to the purchase price
under the Station Purchase Agreement or to which the Sellers are entitled
pursuant to the Station Purchase Agreement, if any, shall not be included in
Net Sales Revenue.

 

Section 4.7       Monthly Reports; Books and Records.  The following obligations shall begin on the
first day of the first full calendar month beginning after the Base Date:

 

(a)   On or before the twentieth (20th) day of
each calendar month during the Term, Sales Agent shall furnish Station Licensee
with a report regarding Sales Agent’s sales by advertiser, of the
Advertisements for the previous calendar month. 
Without limiting Schedule 3.1
hereof, Station Licensee shall have the right to review the books and records
of Sales Agent at reasonable times and upon reasonable notice, with respect to
the sale of Advertisements and any other sales by Sales Agent in connection
with or related to its sale of the Advertisements for the Stations.

 

(b)   Station Licensee shall furnish to Sales
Agent information each month with respect to Station Expenses.   Upon reasonable prior notice, Sales Agent
shall have the right at all reasonable times to review (and the right, at Sales
Agent’s expense, to make copies of) the books and records of Station Licensee, provided that the foregoing access shall
not interfere unreasonably with the Stations’ business.   

 

(c)   The audit and inspection rights of Sales
Agent under this Section 4.7 shall survive any termination or expiration of
this Agreement for a period of two (2) years.

 

Section 4.8       Control. 
Notwithstanding anything to the contrary in this Agreement, the parties
hereto acknowledge and agree that during the Term, Station Licensee will
maintain ultimate control and authority over the Stations, including,
specifically, control and authority over the Stations’ operations, finances,
personnel and programming.  Without
limiting the generality of the foregoing, nothing contained in this Agreement
shall be deemed to limit the control and authority of Station Licensee with
respect to the selection, development and acquisition of any and all
programming to be broadcast over the Stations, as well as the payment therefor,
other than

 

8

 

those
payments of Sales Agent associated with the Delivered Programming.  To that end, Station Licensee shall (a) have
exclusive authority for the negotiation, preparation, execution and
implementation of any and all programming agreements for the Stations, and (b)
retain and hire or utilize whatever employees Station Licensee reasonably deems
appropriate or necessary to fulfill those programming functions.  Sales Agent shall not represent, warrant or
hold itself out as the licensee of the Stations, and all sales material
prepared by Sales Agent for the sale of advertising time on the Stations shall
identify Station Licensee as the licensee of the Stations using mutually
agreeable wording and references.  Sales
Agent shall sell advertising time and enter into all agreements for the sale of
time on the Stations and for the Delivered Programming in its own name.

 

ARTICLE V

 

OTHER OBLIGATIONS OF THE PARTIES

 

Section 5.1       Responsibilities of Station Licensee.  Station Licensee, at its expense, shall be
responsible for and perform the following obligations with respect to the
business and operations of the Stations during the Term, in accordance with and
subject to the following provisions:

 

(a)   Station Licensee shall continue to maintain
full control over the operations of the Stations, including programming
editorial policies, employees of Station Licensee and Station
Licensee-controlled facilities.  Station
Licensee shall be responsible for, and shall comply in all material respects
with all applicable provisions of the Communications Act, the FCC Rules and all
other Applicable Law with respect to the operation of the Stations.  Station Licensee shall file in a timely and
complete manner all reports and applications required to be filed with the FCC
or any other governmental body.

 

(b)   Station Licensee shall maintain in effect
policies of insurance insuring the assets and the business of the Station in
accordance with good industry practices.

 

(c)   Station Licensee shall use, operate, and
maintain all of its assets in a commercially reasonable manner.  If any loss, damage, impairment, confiscation
or condemnation of any of such assets occurs, Station Licensee shall use
commercially reasonable efforts and cooperate with Sales Agent to repair,
replace, or restore the assets to their prior condition as soon thereafter as
possible, and Station Licensee shall use the proceeds of any claim under any
insurance policy to repair, replace or restore any of the assets of the
Stations that are lost, damaged, impaired or destroyed.

 

(d)   Station Licensee shall be responsible for
payment of all operating costs of the Stations (excluding those costs to be
borne by Sales Agent in accordance with Section 5.2), including the cost of
electricity, other utilities and rental or other payments with respect to any
real property leased by Station Licensee, taxes, the Services Fee (as defined
in the Shared Services Agreement) and the salaries, insurance, and other costs
for all personnel employed by Station Licensee and, without limiting the
foregoing, shall pay all other Station Expenses.  Promptly following the Base Date, but in no
event more than thirty (30) days thereafter, Station Licensee shall provide
Sales Agent copies of the operating budgets of the Stations (collectively, the

 

9

 

“Operating Budget”),
which shall reflect Station Licensee’s good faith budget of reasonable and
customary capital and other expenses necessary to the operations of the
Stations and not otherwise contemplated by the Designated Expenses, as
determined by Station Licensee in its sole discretion.  Station Licensee shall provide updated copies
of the Operating Budget each year during the Term, identifying adjustments from
year to year.  

 

(e)   Subject to the Obligations of Sales Agent,
Station Licensee shall pay when due all music rights payments (including,
without limitation, music performance rights, synchronization rights, and
master use rights), if any, in connection with the broadcast and/or
transmission of all announcements, including the Advertisements, and
programming on the Stations, other than the Delivered Programming.

 

(f)   Station Licensee shall be solely responsible
for all costs and expenditures associated with the procuring of programming to
be aired on the Stations, other than those associated with the Delivered
Programming.  Station Licensee shall pay
over to Sales Agent all funds received by Station Licensee each year from the
Network and any other program syndicator or supplier for promotion of the
Network and other programming on other stations or media, and Sales Agent shall
use all such funds solely for their intended promotional or other similar
purposes and in accordance with Section 4(b) of the Shared Services
Agreement.  Station Licensee shall
cooperate with Sales Agent in filing any necessary forms or reports required to
obtain co-op reimbursement or other funds to which Sales Agent is entitled
under this Section 5.1(f).  For the
purposes of Schedule 3.1 hereof,
Sales Agent’s receipt of promotional or co-op payments identified in this
Section 5.1(f) shall not be considered a part of Net Sales Revenue and its
expenditures of such promotional or co-op payments shall not be considered an
expense for purposes of calculating Net Sales Revenue.  To the extent that any network or program
service agreement of Station Licensee provides that, in exchange for cash
payment, additional spot time that otherwise would be used by such network or
program service may be released for local sales by the Stations, Station
Licensee, upon request by the Sales Agent, will obtain the release of such
commercial spot inventory for the placement of Advertisements by the Sales
Agent, subject to Sales Agent paying to Station Licensee the cash amount
required for such release.

 

(g)   Subject to the provisions of any network
affiliation or other programming agreement to which Station Licensee is a
party, Station Licensee shall consult and cooperate with Sales Agent in the
negotiation, maintenance and enforcement of retransmission consent agreements
with cable, satellite and other multichannel video providers.  Station Licensee, in consultation with Sales
Agent, shall exercise its rights to mandatory carriage and retransmission
consent for cable television and other multichannel video providers in a manner
that ensures the maximum possible distribution of the Stations’ signal on cable,
direct-broadcast-satellite and other multichannel video programming
distributors serving communities located in the Market.

 

(h)   Station Licensee shall not take any action
or unreasonably omit to take any action that would be reasonably likely to result
in a (i) revocation,
non-renewal or material impairment of the FCC Licenses, (ii) material adverse effect upon the
Stations’ transmitters, antennae and other material assets included in the
Stations’ transmission facilities or (iii)
material breach or default under the terms of any of the agreements to which
Station Licensee is a party on and as of the date hereof.

 

10

 

(i)   Station Licensee shall list Sales Agent as
the exclusive sales representative for the Advertisements in all applicable
trade listings and advertising and promotional material if and when such
listings and material are published by Station Licensee.  

 

(j)   To the extent permitted under the terms of
any applicable agreement, Station Licensee shall provide to Sales Agent such
routine ratings information and ratings reports with respect to the Stations as
are customarily prepared or obtained by the Stations in the ordinary course of
business as Sales Agent may reasonably request from time to time.  Except as otherwise agreed by the parties
hereto, Station Licensee shall maintain (including timely payment of all fees)
any agreements with A.C. Nielsen Company or its affiliates or other ratings
information providers customarily used by the Stations as a source of local
station research information for the Stations (collectively, the “Ratings Agencies”).  At Sales Agent’s request, Station Licensee
shall use its commercially reasonable efforts to assist Sales Agent in
obtaining from the Ratings Agencies permission to use the Stations’ ratings
information and reports in connection with the sale of the Advertisements.

 

(k)   During the Term, Station Licensee shall
not:  (i)
engage in any business other than the business of owning and operating the
Stations; (ii) incur any
liabilities or obligations, except those liabilities and obligations incurred
in connection with its business conducted in compliance with clause (i) of this
Section 5.1(k); (iii) incur any
indebtedness for borrowed money, including guaranteeing or becoming a surety
with respect to the indebtedness of another Person; (iv) file a voluntary petition in bankruptcy, any petition or
answer seeking for itself any reorganization, arrangement, composition,
readjustment of debt, liquidation or dissolution or similar relief under any
present or future insolvency statute, law or regulation of any jurisdiction;
petition or apply to any tribunal for any receiver, custodian or any trustee
for substantially all of its properties or assets; file any answer to any such
petition admitting or not contesting the material allegations of any such
petition sufficient to support the grant or approval of any such order,
judgment or decree; seek, approve or consent to any such proceeding or in the
appointment of any trustee, receiver, sequestrator, custodian, liquidator or
fiscal agent for it or substantially all of its properties or assets; or take
any action for the purpose of effecting any of the foregoing; or be the subject
of an order entered appointing any such trustee, receiver, custodian,
liquidator or fiscal agent, or (v)
amend or modify any provision of that certain Agreement by and between Station
Licensee and Tucker Media and Management Consulting L.L.C., as its sole
shareholder, dated as of the date hereof (the “Tucker Management Agreement”).

 

(l)   During the Term, Station Licensee shall
cooperate with Sales Agent and, upon request by Sales Agent, use commercially
reasonable efforts to assist Sales Agent in making and prosecuting any claims
for indemnification pursuant to the Station Purchase Agreement relating to any
assets of the Stations owned, leased or held by Station Licensee which are or
may be subject to claims under the Station Purchase Agreement, and Sales Agent
shall reimburse Station Licensee for reasonable costs and expenses in
connection with any such cooperation afforded pursuant to this Section
5.1(l).  

 

(m)   During the Term, Station Licensee shall
provide to Sales Agent upon the written request of Sales Agent (but no more
often than once each fiscal quarter) a true and accurate listing of the
outstanding equity interests of Station Licensee and the holders thereof.  Station Licensee acknowledges that Sales
Agent may provide such information to its lenders.   

 

11

 

Section 5.2       Responsibilities of Sales Agent.  Sales Agent, at its expense and subject to
the provisions of Schedule 3.1,
shall be responsible for and perform the following obligations with respect to
the marketing and sale of the Advertisements during the Term in accordance with
and subject to the following provisions:

 

(a)   Sales Agent shall be solely responsible for
(i) all commissions to its
employees, agencies or representatives and other expenses incurred in its
marketing and sale of the Advertisements; (ii)
all expenses incurred in its performance of traffic, billing and collections
functions with respect to the Advertisements; 
(iii) any other fees
incurred in performing its obligations under this Agreement; and (iv) all fees related to the software used
for sales, traffic, billing and similar functions including any fees charged by
the provider to make Sales Agent’s software interface in the most efficient
manner with the Stations’ master control equipment.

 

(b)   Sales Agent shall be solely responsible for
the salaries, taxes and related costs for all personnel employed by Sales Agent
in the sale of the Advertisements and the collection of accounts receivable
(including salespeople, billing personnel and traffic personnel).

 

(c)   Sales Agent shall cooperate with Station
Licensee and use commercially reasonable efforts to assist Station Licensee in
complying with the provisions of the Communications Act and FCC Rules regarding
political advertising, including compliance with Station Licensee’s statement
disclosing political advertising rates and practices for purchasers of
political advertising consistent with Applicable Law (“Disclosure Statement”).  Sales Agent shall supply such information
promptly to Station Licensee as may be necessary to comply with the public
inspection file, lowest unit rate, equal opportunities and reasonable access
requirements of the Communications Act and FCC Rules.  If the Stations fail to meet the political
time obligations under the Communications Act and FCC Rules based on the
advertising sold by Sales Agent, then, to the extent reasonably necessary to
enable Station Licensee to cause the Stations to comply with such political
time obligations, Sales Agent shall release advertising availabilities to
Station Licensee; provided,  however,
that all revenues realized by Station Licensee from the sale of such
advertising time shall be immediately paid to Sales Agent and shall be
considered a part of its Net Sales Revenue.

 

(d)   All Broadcast Material shall comply in all
material respects with the Policy Statement, the Communications Act, the FCC
Rules and other Applicable Law and shall not violate the intellectual property
rights of any Person.  All services to be
provided and all obligations to be performed by Sales Agent hereunder shall
comply in all material respects with all Applicable Law, including without
limitation the Communications Act and FCC Rules, and standards of performance
customary for the broadcast television industry.

 

Section 5.3       Delivery of Broadcast Material.  All Broadcast Material shall be delivered to
the Stations in a format to be mutually agreed upon by the parties hereto, in a
form ready for broadcast on the Stations’ existing playback equipment, and with
quality suitable for broadcast.  Station
Licensee shall not be required to provide production services or to copy,
reformat or otherwise manipulate material furnished by Sales Agent other than
inserting tape cartridges or similar broadcast-ready media into machinery or
computers for broadcast.

 

12

 

Section 5.4       Provision of Office Space.  Station Licensee shall provide to employees
and agents of Sales Agent and its Affiliates the right to access and use space
designated for Sales Agent’s use in the Stations’ studio buildings (the “Premises”) as
reasonably necessary for Sales Agent’s performance of the Obligations of Sales
Agent under this Agreement, so long as the provision of such space does not
unreasonably interfere with the conduct of the business or operations of the
Stations.  When on the Premises, Sales
Agent’s personnel shall be subject to the reasonable direction and control of
the management personnel of Station Licensee. 
Station Licensee shall make available to Sales Agent for use without fee
or charge all facilities and equipment of the Stations.

 

Section 5.5       Access to Information.  In order to ensure compliance with the
Communications Act, the FCC Rules and other Applicable Law, Station Licensee
shall be entitled to review at its reasonable discretion from time to time any
Broadcast Material that Station Licensee may reasonably request.  Sales Agent also shall maintain and deliver
to the Stations such records and information required by the FCC Rules to be
placed in the public inspection files of the Stations pertaining to the sale of
political programming and advertisements, in accordance with the provisions of
Sections 73.1940 and 73.3526 of the FCC Rules, and to the sale of sponsored
programming addressing political issues or controversial issues of public
importance, in accordance with the provisions of Section 73.1212 of the FCC
Rules.  Sales Agent shall furnish to
Station Licensee upon request any other information that is reasonably
necessary to enable Station Licensee to prepare any records or reports required
by the FCC or other governmental entities. 
Nothing in this Section 5.5 shall entitle Station Licensee to review the
internal corporate or financial records of Sales Agent.  Station Licensee shall keep confidential any
information obtained from Sales Agent in connection with this Agreement, except
as and to the extent required by Applicable Law.  If this Agreement is terminated, Station
Licensee shall return to Sales Agent all information obtained by it from Sales
Agent in connection with this Agreement. 
This Section 5.5 shall survive any termination or expiration of this
Agreement for a period of three (3) years.

 

Section 5.6       Noncompete. Station Licensee covenants and agrees, on
behalf of itself and its Affiliates, that during the Term, neither it nor any
or its Affiliates will, without the prior written consent of Sales Agent,
directly or indirectly, own, manage, operate, control, or engage or participate
in the ownership, management, operation, or control of, or be connected as a
shareholder, partner, or joint venturer with, any business or organization
which engages in the business of television broadcasting within the Market,
other than the Stations.  Notwithstanding
the foregoing, the ownership of an equity interest of five percent (5%) or less
of a publicly traded company that does not otherwise constitute control over
such company shall not be prohibited.

 

ARTICLE VI

 

REPRESENTATIONS AND WARRANTIES OF STATION LICENSEE

 

Station Licensee represents and warrants to
Sales Agent as follows:

 

Section 6.1       Authorization and Binding Obligation.  The execution, delivery, and performance of
this Agreement by Station Licensee has been duly authorized by all necessary
organizational action on the part of Station Licensee.  This Agreement has been duly executed and
delivered by Station Licensee and constitutes the legal, valid, and binding
obligation of it,

 

13

 

enforceable
against it in accordance with its terms except as the enforceability thereof
may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium, insolvency, reorganization, or other similar laws of general
application affecting the enforcement of creditors’ rights or by general principles
of equity limiting the availability of equitable remedies.

 

Section 6.2       Absence of Conflicting Agreements or Consents.  The execution, delivery, and performance by
Station Licensee of this Agreement and the documents contemplated hereby (with
or without the giving of notice, the lapse of time, or both): (a) will not
conflict with the organizational documents of Station Licensee; (b) to the
actual knowledge of Station Licensee, does not conflict with, result in a
breach of, or constitute a default under any law, judgment, order, ordinance,
injunction, decree, rule, regulation, or ruling of any court or governmental
instrumentality applicable to Station Licensee, (c) does not conflict
with, constitute grounds for termination of, result in a breach of, constitute
a default under, or accelerate or permit the acceleration of any performance
required by the terms of any agreement, instrument, license, or permit to which
Station Licensee is a party or by which it is bound as of the date hereof; and
(d) will not create any claim, lien, charge, or encumbrance upon any of
the assets of the Stations owned by Station Licensee, other than any lien for
current taxes, payments of which are not yet due and payable, or liens in
respect of pledges or deposits under worker’s compensation laws or similar
legislation, carriers’, warehousemen’s, mechanics’, laborers’ and materialmen’s
and similar liens, if the obligations secured by such liens are not then
delinquent or are being contested in good faith by appropriate proceedings.

 

ARTICLE VII

 

REPRESENTATIONS AND WARRANTIES OF SALES AGENT

 

Sales Agent represents and warrants to
Station Licensee as follows:

 

Section 7.1       Authorization and Binding Obligation.  The execution, delivery, and performance of
this Agreement by Sales Agent have been duly authorized by all necessary
organizational action on the part of such party.  This Agreement has been duly executed and
delivered by Sales Agent and constitutes the legal, valid, and binding obligation
of such party, enforceable against such party in accordance with its terms
except as the enforceability thereof may be limited by bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium, insolvency, reorganization or
other similar laws of general application affecting the enforcement of
creditors’ rights or by general principles of equity limiting the availability
of equitable remedies.

 

Section 7.2       Absence of Conflicting Agreements and Required Consents.  The execution, delivery, and performance by
Sales Agent of this Agreement and the documents contemplated hereby (with or
without the giving of notice, the lapse of time, or both):  (a) will not conflict with the governing
documents of Sales Agent; (b) to the actual knowledge of Sales Agent, does not
conflict with, result in a breach of, or constitute a default under, any law,
judgment, order, ordinance, injunction, decree, rule, regulation, or ruling of
any court or governmental instrumentality applicable to such party; and (c)
does not conflict with, constitute grounds for termination of, result in a
breach of, constitute a default under, or accelerate or permit the acceleration
of any performance required by the terms of, any agreement, instrument, license
or permit to which Sales Agent is a party or by which it is bound as of the
date hereof.

 

14

 

ARTICLE VIII

 

INDEMNIFICATION AND REMEDIES

 

Section 8.1       By Sales Agent. Sales Agent shall, jointly and
severally, indemnify, defend and hold harmless Station Licensee and any
employee, director, member, manager, officer, stockholder, or agent of Station
Licensee, or any of its Affiliates, successors or assignees (exclusive of Sales
Agent and its Affiliates and agents) (each, a “Station
Indemnified Party”), from and against, and reimburse and pay to
such Station Indemnified Party as incurred, any loss, liability, damage or
expense (including reasonable legal expenses and costs and any cost or expense
arising from or incurred in connection with any action, suit, proceeding, claim
or judgment) relating to any matter described in this Section 8.1, or in enforcing
the indemnity provided by this Section 8.1 (any such amount being a “Loss”), which any such Station
Indemnified Party may suffer, sustain or become subject to, in any way arising
from, relating to, or as a result of:

 

(a)   any act or omission, event or occurrence
that was or shall be caused by Sales Agent, its agents or Affiliates (including
any predecessor in interest thereto) relating to the business of Sales Agent or
the Stations;

 

(b)   any omission by Sales Agent or breach by
Sales Agent (including any predecessor in interest to Sales Agent) of any of
its obligations hereunder; or

 

(c)   any Broadcast Material.

 

The obligations of Sales Agent under this
Section 8.1 shall survive any termination or expiration of this Agreement. The
obligations of Sales Agent under this Section 8.1 shall be direct and not
conditioned or conditional upon Station Licensee’s pursuit of remedies against
any other party, including the Sellers pursuant to the Station Purchase
Agreement, and irrespective of Station Licensee’s rights under the Station
Purchase Agreement, Station Licensee shall have the right to elect to proceed
against Sales Agent in the first instance without any requirement to first
proceed against the Sellers or any such third party.

 

Notwithstanding anything to the contrary
contained herein, in no event shall Sales Agent be liable under this Section
8.1 for punitive, treble, exemplary, consequential, special or other damages
that are not actual damages in accordance with Applicable Law.

 

Section 8.2       By Station Licensee. Except with respect to or to the
extent of any Loss subject to indemnification pursuant to the terms and subject
to the conditions of Section 8.1 and subject to the limitations set forth in
Section 11(b) of the Shared Services Agreement, Station Licensee shall, jointly
and severally, indemnify, defend and hold harmless Sales Agent and any
employee, director, member, manager, officer, stockholder or agent of Sales
Agent, or any of its Affiliates, successors or assignees (each, a “Sales Agent Indemnified Party”) from
and against, and reimburse and pay to such Sales Agent Indemnified Party, as
incurred, any Loss, which any such Sales Agent Indemnified Party may suffer,
sustain or become subject to, in any way arising from, relating to, or as a
result of:

 

15

 

(a)   any libel, slander, illegal competition or
trade practice, infringement of trademarks, trade names, or program titles,
violation of rights of privacy, and infringement of copyrights and proprietary
rights resulting from or relating to all material broadcast on the Station
following the Base Date other than the Broadcast Material and with respect to
which Station Licensee had notice or otherwise should have been reasonably
aware; and

 

(b)   the actions or omissions of Station Licensee’s
employees and representatives in performing their duties under this Agreement
or in acting outside the scope of their employment, which actions or omissions
constitute willful misconduct or gross negligence.

 

Section 8.3       Procedure.

 

(a)   If any Person entitled to indemnification
under this Agreement (an “Indemnified Party”)
asserts a claim for indemnification for, or receives notice of the assertion or
commencement of any Third Party Claim as to which such Indemnified Party
intends to seek indemnification under this Agreement, such Indemnified Party
shall give reasonably prompt written notice of such claim to the party from
whom indemnification is to be sought (an “Indemnifying Party”),
together with a statement of any available information regarding such claim. The
Indemnifying Party shall have the right, upon written notice to the Indemnified
Party (the “Defense Notice”) within
fifteen (15) days after receipt from the Indemnified Party of notice of such
claim, to conduct at its expense the defense against such Third Party Claim in
its own name, or if necessary in the name of the Indemnified Party (which
notice shall specify the counsel the Indemnifying Party will appoint to defend
such claim (“Defense Counsel”); provided,  however, that the Indemnified Party shall have the right to
approve the Defense Counsel, which approval shall not be unreasonably withheld
or delayed). The parties hereto agree to cooperate fully with each other in
connection with the defense, negotiation or settlement of any Third Party Claim.
If the Indemnifying Party delivers a Defense Notice to the Indemnified Party,
the Indemnified Party will cooperate with and make available to the
Indemnifying Party such assistance and materials as may be reasonably requested
by the Indemnifying Party, all at the expense of the Indemnifying Party.

 

(b)   If the Indemnifying Party shall fail to give
a Defense Notice, it shall be deemed to have elected not to conduct the defense
of the subject Third Party Claim, and in such event the Indemnified Party shall
have the right to conduct such defense in good faith. If the Indemnified Party
defends any Third Party Claim, then the Indemnifying Party shall reimburse the
Indemnified Party for the costs and expenses of defending such Third Party
Claim upon submission of periodic bills. If the Indemnifying Party elects to
conduct the defense of the subject Third Party Claim, the Indemnified Party may
participate, at his or its own expense, in the defense of such Third Party
Claim; provided,
however, that such Indemnified Party
shall be entitled to participate in any such defense with separate counsel at
the expense of the Indemnifying Party if (i) so requested
by the Indemnifying Party to participate or (ii)
in the reasonable opinion of counsel to the Indemnified Party, a conflict or
potential conflict exists between the Indemnified Party and the Indemnifying
Party that would make such separate representation advisable; and provided, further, that
the Indemnifying Party shall not be required to pay for more than one counsel
for all Indemnified Parties in connection with any Third Party Claim.

 

16

 

(c)   Regardless of which party defends a Third
Party Claim, the other party shall have the right at its expense to participate
in the defense of such Third Party Claim, assisted by counsel of its own
choosing. The Indemnified Party shall not compromise, settle, default on, or
admit liability with respect to a Third Party Claim without the prior written
consent of the Indemnifying Party, which consent shall not be unreasonably
withheld or delayed, and, if the Indemnified Party settles, compromises,
defaults on, or admits liability with respect to a Third Party Claim except in
compliance with the foregoing, the Indemnified Party will be liable for all
Losses paid or incurred in connection therewith and the Indemnifying Party
shall have no obligation to indemnify the Indemnified Party with respect
thereto. The Indemnifying Party shall not compromise or settle a Third Party
Claim without the consent of the Indemnified Party, which consent shall not be
unreasonably withheld or delayed, unless such compromise or settlement includes
as a term thereof an unconditional release of the Indemnified Party and such
compromise or release does not impose any non-monetary obligations on the
Indemnified Party other than immaterial administrative obligations (and all
monetary obligations are subject to the indemnification provisions of this
Agreement), in which case the consent of the Indemnified Party shall not be
required.

 

(d)   After any final decision, judgment or award
shall have been rendered by a court or governmental entity of competent
jurisdiction and the expiration of the time in which to appeal therefrom, or
after a settlement shall have been consummated, or after the Indemnified Party
and the Indemnifying Party shall have arrived at a mutually binding agreement
with respect to a Third Party Claim hereunder, the Indemnified Party shall
deliver to the Indemnifying Party notice of any sums due and owing by the
Indemnifying Party pursuant to this Agreement with respect to such matter and
the Indemnifying Party shall be required to pay all of the sums so due and
owing to the Indemnified Party by wire transfer of immediately available funds
within ten (10) business days after the date of such notice.

 

(e)   It is the intent of the parties that all
direct claims by an Indemnified Party against a party not arising out of Third
Party Claims shall be subject to and benefit from the terms of this Section 8.3.
Any claim under this Section 8.3 by an Indemnified Party for
indemnification other than indemnification against a Third Party Claim (a “Direct Claim”) will be asserted by
giving the Indemnifying Party reasonably prompt written notice thereof, and the
Indemnifying Party will have a period of 20 days within which to satisfy such
Direct Claim. If the Indemnifying Party does not so respond within such 20 day
period, the Indemnifying Party will be deemed to have rejected such claim, in
which event the Indemnified Party will be free to pursue such remedies as may
be available to the Indemnified Party under this Section 8.

 

(f)   A failure by an Indemnified Party to give
timely, complete, or accurate notice as provided in this Section 8.3 shall
not affect the rights or obligations of either party hereunder except to the
extent that, as a result of such failure, any party entitled to receive such
notice was deprived of its right to recover any payment under its applicable
insurance coverage or was otherwise materially adversely affected or damaged as
a result of such failure to give timely, complete, and accurate notice.

 

(g)   The parties shall use their commercially
reasonable efforts to collect the proceeds of any insurance that would have the
effect of reducing any Losses (in which case such proceeds shall reduce such
Losses). To the extent any Losses of an Indemnified Party are reduced

 

17

 

by receipt of payment under insurance
policies or from third parties not affiliated with the Indemnified Party, such
payments (net of the expenses of the recovery thereof) shall be credited
against such Losses and, if indemnification payments shall have been received
prior to the collection of such proceeds, the Indemnified Party shall remit to
the Indemnifying Party the amount of such proceeds (net of the cost of
collection thereof) to the extent of indemnification payments received in
respect of such Losses. The indemnification obligations hereunder shall survive
any termination of this Agreement.

 

Section 8.4       Services Unique. The parties hereby agree that the
services to be provided by the parties under this Agreement are unique and that
substitutes therefor cannot be purchased or acquired in the open market. For
that reason, the parties would be irreparably damaged in the event of a
material breach of this Agreement by the another party. Accordingly, to the
extent permitted by the Communications Act and the FCC Rules then in effect,
the parties may request that a decree of specific performance be issued by a
court of competent jurisdiction, enjoining the another party to observe and to
perform such other party’s covenants, conditions, agreements and obligations
hereunder, and the parties hereby agree neither to oppose nor to resist the
issuance of such a decree on the grounds that there may exist an adequate
remedy at law for any material breach of this Agreement.

 

Section 8.5       Exclusivity. After the Base Date, the indemnification
provided by this Section 8 shall be the sole and exclusive remedy of either of
Sales Agent and Station Licensee against the other party hereto for any claim
arising out of a breach of any representation, warranty, covenant or agreement
herein or otherwise in connection with this Agreement; provided,
that this Section 8.5 shall not prohibit (a) injunctive relief (including
specific performance) pursuant to Section 8.4 or if available under Applicable
Law or (b) any other remedy available at law or in equity for any fraud
committed in connection with this Agreement.

 

ARTICLE IX

 

MISCELLANEOUS

 

Section 9.1       No Partnership or Joint Venture. This Agreement is not
intended to be, and shall not be construed as, an agreement to form a
partnership or a joint venture between the parties. Except as otherwise
specifically provided in this Agreement, no party shall be authorized to act as
an agent of or otherwise to represent any other party hereto.

 

Section 9.2       Confidentiality. Each party hereto agrees that it will
not at any time during or after the termination of this Agreement disclose to
others or use, except as duly authorized in connection with the conduct of the
business or the rendering of services hereunder, any secret or confidential
information of the other parties. To the extent required by the Communications
Act and FCC Rules, each party shall place a copy of this Agreement in its
public inspection file and shall consult with the other party and agree upon
the confidential and proprietary information herein that shall be redacted from
such copy.

 

Section 9.3       Assignment; Benefit; Binding Effect. No party may assign
this Agreement or delegate its obligations under this Agreement without the
prior written consent of the other parties. Notwithstanding anything to the
contrary contained herein, (a) Sales Agent may assign its

 

18

 

rights and
obligations under this Agreement to any successor in interest as the operator
or licensee of television broadcast stations WPBN(TV) and WTOM(TV) or purchaser
of all or substantially all of the assets of such stations (each a “Sales Agent Assignee”) upon written
notice to Station Licensee; provided,  however, that
such Sales Agent Assignee shall also assume the rights and obligations of the
Option Holder (as defined in the Option Agreement) under the Option Agreement,
and provided that Sales Agent, as assignor,
shall guarantee, and remain responsible for, the full and complete performance
of its Sales Agent Assignee and any subsequent assignee of Sales Agent Assignee
and (b) Station Licensee shall assign this Agreement and all of its rights and
obligations hereunder to any Person to which the FCC Licenses are transferred
or assigned with the prior written consent of Sales Agent, which consent shall
not be unreasonably withheld, provided that
as a condition to such transfer or assignment (i)
this Agreement, the Shared Services Agreement, the Option Agreement and all of
Station Licensee’s rights and obligations hereunder and thereunder are assigned
to such Person, which assignments are to be effective simultaneously, (ii) such Person is legally and financially qualified to be
the holder of the FCC Licenses and (iii) such
Person executes and delivers to the Sales Agent an instrument in form and
substance reasonably acceptable to Sales Agent, accepting such assignments of
this Agreement, the Shared Services Agreement, the Option Agreement and the
rights and obligations of Station Licensee hereunder and thereunder and
agreeing to pay, discharge and perform the obligations and liabilities of
Station Licensee hereunder and thereunder in accordance with the terms hereof
and thereof and such other documents and instruments as Sales Agent may
reasonably request. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted
assigns. Any permitted assignee of a party hereto shall be a party to this
Agreement for all purposes hereof.

 

Section 9.4       Force Majeure. Any delay or interruption in the
broadcast operation of the Stations, in whole or in part, due to acts of God,
strikes, lockouts, material or labor restrictions, governmental action, riots,
natural disasters or any other cause not reasonably within the control of a
party shall not constitute a breach of this Agreement, and no party shall be
liable to any other party for any liability or obligation with respect thereto.

 

Section 9.5       Further Assurances. The parties hereto shall take any
actions and execute any other documents that may be necessary or desirable to
the implementation and consummation of this Agreement.

 

Section 9.6       Press Release. No party hereto shall publish any press
release, make any other public announcement or otherwise communicate with any
news media concerning this Agreement or the transactions contemplated hereby
without the prior written consent of the other parties hereto; provided,  however,
that nothing contained herein shall prevent any party from promptly making all
filings with governmental authorities as may, in its judgment, be required or
advisable in connection with the execution and delivery of this Agreement or
the consummation of the transactions contemplated hereby.

 

Section 9.7       Unenforceability. If one or more provisions of this
Agreement or the application thereof to any Person or circumstances shall be
invalid or unenforceable to any extent, the remainder of this Agreement and the
application of such provisions to other Persons or circumstances shall not be
affected thereby and shall be enforced to the greatest extent permitted by
Applicable Law, except that, if such invalidity or unenforceability should
change the basic

 

19

 

economic
positions of the parties hereto, they shall negotiate in good faith such
changes in other terms as shall be practicable in order to restore them to
their prior positions. In the event that the FCC alters or modifies its rules
or policies in a fashion which would raise substantial and material questions
as to the validity of any provision of this Agreement, the parties shall
negotiate in good faith to revise any such provision of this Agreement in an
effort to comply with all applicable FCC Rules while attempting to preserve the
intent of the parties as embodied in the provisions of this Agreement. The
parties hereto agree that, upon the request of either of them, they will join
in requesting the view of the staff of the FCC, to the extent necessary, with
respect to the revision of any provision of this Agreement in accordance with
the foregoing.

 

Section 9.8       Notices. All notices, demands, and requests required or
permitted to be given under the provisions of this Agreement shall be
(a) in writing, (b) delivered by personal delivery, or sent by
commercial delivery service or registered or certified mail, return receipt
requested, (c) deemed to have been given on the date of personal delivery
or the date set forth in the records of the delivery service or on the return
receipt, and (d) addressed as set forth on Schedule 9.8.

 

Section 9.9       Governing Law. This Agreement shall be construed and
governed in accordance with the laws of New York without reference to the
conflict of laws principles thereof.

 

Section 9.10     Captions. The captions in this Agreement are for
convenience only and shall not be considered a part of, or effect the
construction or interpretation of any provision of, this Agreement.

 

Section 9.11     Gender and Number. Words used herein, regardless of the
gender and number specifically used, shall be deemed and construed to include
any other gender, masculine, feminine, or neuter, and any other number,
singular or plural, as the context requires.

 

Section 9.12     Counterparts and Facsimile Signatures. This Agreement
may be executed in any number of counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument.
This Agreement shall be legally binding and effective upon delivery of
facsimile signatures.

 

Section 9.13     Entire Agreement. This Agreement and the attachments and
Schedules hereto (which are hereby incorporated by reference and made a part
hereof), [the Assignment and Assumption Agreement], the Shared Services
Agreement, the Option Agreement and the letter agreement dated as of the date
hereof from Sales Agent to Station Licensee (the “Letter
Agreement”), when executed and delivered by the parties thereto,
collectively represent the entire understanding and agreement among the parties
hereto with respect to the subject matter hereof and thereof and supersede all
prior agreements with respect to the subject matter hereof and thereof. Notwithstanding
anything to the contrary contained herein or in any of the other Transaction
Documents and, without limiting any of the other rights or remedies of the
parties hereunder or under any of the Transaction Documents, the parties
acknowledge and agree that Sales Agent may offset any amount owed by Station
Licensee to Sales Agent pursuant to any of the Transaction Documents as a
credit against any amount owed by Sales Agent to Station Licensee pursuant to
any of the Transaction Documents. No term or provision hereof may be changed,
modified, terminated or discharged (other than in accordance with its terms),
in whole or

 

20

 

in part,
except by a writing which is dated and signed by the parties hereto. No waiver
of any of the provisions or conditions of this Agreement or of any of the
rights, powers or privileges of a party hereto shall be effective or binding
unless in writing and signed by the party claimed to have given or consented to
such waiver.

 

Section 9.14     Other Definitional Provisions. The terms “hereof,” “herein”
and “hereunder” and terms of similar import will refer to this Agreement as a
whole and not to any particular provision of this Agreement. Section references
contained in this Agreement are references to Sections in this Agreement,
unless otherwise specified. Each defined term used in this Agreement has a
comparable meaning when used in its plural or singular form. Each
gender-specific term used in this Agreement has a comparable meaning whether
used in a masculine, feminine or gender-neutral form. Whenever the term “including”
is used in this Agreement (whether or not that term is followed by the phrase “but
not limited to” or “without limitation” or words of similar effect) in
connection with a listing of items within a particular classification, that
listing will be interpreted to be illustrative only and will not be interpreted
as a limitation on, or an exclusive listing of, the items within that
classification.

 

 

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

21

 

IN WITNESS
WHEREOF, this Joint Sales Agreement has been executed by the
parties hereto effective as of the date first written above.

 

	
   

  	
  SALES AGENT:

  
	
   

  	
   

  
	
   

  	
  Barrington Traverse City LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul M.
  McNicol

  	
   

  
	
   

  	
   

  	
  Name: Paul
  M. McNicol

  
	
   

  	
   

  	
  Title:
  Senior Vice President/Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  STATION LICENSEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Tucker Broadcasting of Traverse City, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Benjamin
  W. Tucker

  	
   

  
	
   

  	
   

  	
  Name:
  Benjamin W. Tucker

  
	
   

  	
   

  	
  Title: President

  
					

 

 

SCHEDULE 3.1

 

I.              Net Sales Revenue.

 

A.            For purposes of this Agreement, the term “Net Sales Revenue” means (i) all gross revenue received by Sales Agent or Station
Licensee for all Advertisements, less agency, buying service or other sales
commissions paid to or withheld by an advertiser, agency or service, as the
case may be, and (ii) any other amounts
designated for inclusion in the calculation of Net Sales Revenue pursuant to
the terms and subject to the conditions of this Agreement.

 

II.            Station Expenses;
Payments.

 

A. In the event that due to the performance
of the Stations and the resulting revenues of the Stations with respect to any
given month during the Term, the total aggregate amount of Designated Expenses
and Other Expenses exceeds the amount of the Licensee Revenue Share for such
month, Sales Agent shall pay to Station Licensee the differential of such
amounts. Any expenses incurred by Station Licensee that do not constitute
Designated Expenses or Other Expenses (including obligations pursuant to a
credit or loan facility that is not designated as an Acquisition Financing
Arrangement as provided below) shall remain solely the obligation of Station Licensee.

 

B. For purposes of this Agreement:

 

(a)           “Designated Expenses”
shall mean the sum of the actual out-of-pocket payments and expenses of Station
Licensee for the following: (i) utilities
associated with the Stations’ transmitting facilities together with all other
expenses, including rental payments, payable by Station Licensee under any
lease for real property on which the Stations are located or used exclusively
for the operation of the Stations, (ii) salaries
for up to two of the Stations’ full-time employees, one of which shall be the
station manager and hourly rates for accounting and human resource services,
all at reasonable and customary rates for such employees or services, (iii) expenses related to maintenance and filings with
respect to the FCC Licenses in respect of the Stations and other expenses of
compliance with FCC Rules and other Applicable Law in connection with the
operation of the Stations, including reasonable and customary attorneys’ fees
of Station Licensee incurred in connection therewith, (iv)
property taxes on any real property, personal property and leased property on
which the Stations are located or used exclusively for the operation of the
Stations, (v) in the event that Station Licensee
shall have elected to borrow the purchase price with respect to its acquisition
under the Station Purchase Agreement (pursuant to the Assignment and Assumption
Agreement) pursuant to a credit agreement or other financing arrangement
contemplated by that certain Commitment Letter, dated as of August 31, 2007,
from Banc of America Securities LLC, Wachovia Bank, National Association,
Wachovia Capital Markets, LLC and CIT Lending Services Corporation in favor of
Tucker Broadcasting of Traverse City, Inc., or any other financing arrangement
provided by, or entered into with, Pilot Group L.P. or an Affiliate thereof (an
“Acquisition Financing

 

2

 

Arrangement”),
the payments due by Station Licensee pursuant to such Acquisition Financing
Arrangement, other than those payments due pursuant to such Acquisition
Financing Agreement to the extent arising out of the failure of Station
Licensee to make a timely payment thereunder for which Station Licensee had
received timely payment hereunder or otherwise to the extent arising out of
actions or omissions of Station Licensee in breach of such Acquisition
Financing Arrangement (provided, that
any payments under this clause shall be made directly to Station Licensee), (vi) premiums and other out-of-pockets costs and expenses
relating to any insurance that Station Licensee is required to maintain
pursuant to the terms of the Option Agreement, (vii)
all music rights payments required to be paid by Station Licensee (including
music performance rights, synchronization rights, and master use rights), in
connection with the broadcast and/or transmission of all announcements and
programming on the Stations, including the Advertisements (but excluding the
Delivered Programming, which shall be the responsibility of Sales Agent), (viii) all payments for the acquisition or licensing of
programming during the Term, including television network payments, (ix) payments or distributions pursuant to the Tucker
Management Agreement, as in effect on the date hereof, (x)
amounts payable under the Shared Services Agreement with Sales Agent, (xi) amounts payable under the lease agreements listed on Exhibit
A attached hereto, and (xii) any costs
or expense actually incurred by Station Licensee as a result of complying with
its obligation to broadcast the Broadcast Material.

 

(b)           “Other Expenses”
shall mean expenses that are reasonably necessary or customary in the operation
and maintenance of the Stations, which have been consented to in advance by
Sales Agent, provided that Station Licensee
shall have no obligation under this Agreement to incur any Other Expenses in
the absence of such consent and agreement to reimburse under this subparagraph
(b).

 

C.            “Station Expenses”
shall mean, collectively, Designated Expenses, Other Expenses, expenses in
accordance with the Operating Budget, and any other expenses, distributions or
payment obligations that are not contemplated by the Operating Budget.

 

D. In order to promote the administration of
the payment obligations between the parties under this Agreement and the Shared
Services Agreement (individually and collectively, the “Principal
Agreements”), the parties agree that (i) the amounts due and payable by one party under any of the
Principal Agreements may be offset against any outstanding payment obligation
by the other party under any of the Principal Agreements; and (ii) to the extent reasonably practicable,
Sales Agent shall deliver to Station Licensee in connection with the payment of
the Licensee Revenue Share a single statement reflecting the respective payment
obligations of the parties under each of the Principal Agreements, which
statement shall reflect any offsetting amounts.

 

3

 

SCHEDULE 4.2

 

SCHEDULE OF DELIVERED
PROGRAMMING

 

Commencing on the Base
Date, Sales Agent shall be permitted to provide the Delivered Programming in
accordance with the terms and subject to the conditions of this Agreement. Notwithstanding
anything herein to the contrary, the obligations of Station Licensee set forth
in this Schedule 4.2 shall be subject to Station Licensee’s rights under
Sections 4.2, 4.3, 4.4 and 4.8 of this Agreement.

 

At any time and from time
to time following the Base Date, Sales Agent may designate by written notice to
Station Licensee the days and times during which the Delivered Programming
shall be broadcast on the Stations, and Station Licensee shall commence the
broadcast of such Delivered Programming no later than 14 days following its
receipt of such notice, so long as (i) the duration
of such Delivered Programming, together with the duration of all other
Delivered Programming broadcast on the applicable Station, does not exceed 15%
of such Station’s weekly broadcast schedule and (ii)
the broadcast of such Delivered Programming during the days and times specified
by Sales Agent does not conflict with the contractual obligations of Station
Licensee.

 

At any time and from time
to time following the Base Date, Sales Agent may designate, by written notice
to Station Licensee, existing programming broadcast on the Stations that,
effective upon receipt of such notice, shall constitute Delivered Programming
for all purposes under this Agreement (such existing programming so designated
by Sales Agent, the “Converted Programming”).
At Sales Agent’s election, such notice may specify changes to the days and
times during which such Converted Programming shall be broadcast on the
Stations and Station Licensee shall broadcast such Converted Programming during
the days and times specified by Sales Agent no later than 14 days following its
receipt of such notice, so long as (i) the duration
of such Converted Programming, together with the duration of all other
Delivered Programming broadcast on the applicable Station, is less than 15% of
such Station’s weekly broadcast schedule and (ii)
the broadcast of such Converted Programming during the days and times specified
by Sales Agent does not conflict with the contractual obligations of Station
Licensee. Subject to receipt of any required consent, Station Licensee shall
assign to Sales Agent as promptly as practicable following receipt of Sales
Agent’s written notice Station Licensee’s rights and interests in the Converted
Programming. Station Licensee shall use commercially reasonable efforts to
obtain the consent of any third parties required in connection with any such
assignment.

 

If the FCC changes its
rules or policies in a manner that allows Sales Agent to provide Delivered
Programming that exceeds 15% of the Stations’ broadcast hours for any week, at
the request of Sales Agent, Station Licensee shall cooperate in good faith with
Sales Agent to agree upon one or more additional time periods during which
Sales Agent shall be permitted to provide additional Delivered Programming for
broadcast on the Stations, but in no event shall the aggregate duration of all
Delivered Programming, including such additional time periods, exceed the total
amount of Delivered Programming as may be permitted by the FCC after giving
effect to such change in the FCC Rules.

 

 

Upon no less than 14 days
prior written notice from Sales Agent to Station Licensee, Sales Agent may
change the date and times that the Delivered Programming shall be broadcast on
the Stations and Station Licensee agrees to broadcast the Delivered Programming
in accordance with such revised schedule.

 

2

 

SCHEDULE 4.3

 

POLICY STATEMENT FOR BROADCAST MATERIAL

 

Sales Agent agrees to cooperate with Station
Licensee in the broadcasting of programs of high quality and, for this purpose,
to observe the following policies in the preparation, writing, production and
delivery of Broadcast Material.

 

CONTROVERSIAL ISSUE.
Any discussion of controversial issues of public importance shall be reasonably
balanced with the presentation of contrasting viewpoints in the course of
overall programming; no attacks on the honesty, integrity, or like personal
qualities of any person or group of persons shall be made; and Station programs
(other than public forum or talk features) are not to be used as a forum for
editorializing about individual candidates. If such events occur, Licensee may
require that responsive programming be aired.

 

NO PLUGOLA OR PAYOLA. The mention of any
business activity or “plug” for any commercial, professional, or other related
endeavor, except where contained in an actual commercial message of a sponsor,
is prohibited.

 

ELECTION PROCEDURES. At least ninety (90) days
before the start of any primary or regular election campaign, Sales Agent will
clear with Station Licensee the rate Sales Agent will charge for the time to be
sold to candidates for public office and/or their supporters to make certain
that the rate charged is in conformity with Applicable Law and Station Licensee’s
policy.

 

PROGRAMMING PROHIBITIONS. Sales Agent shall
not knowingly broadcast any of the following programs or announcements:

 

(a)  False Claims. False or unwarranted
claims for any product or service.

 

(b)  Unfair Imitation. Infringements of
another advertiser’s rights through plagiarism or unfair imitation of either
program idea or copy, or any other unfair competition.

 

(c)  Commercial Disparagement. Any unlawful
disparagement of competitors or competitive goods.

 

(d)  Obscenity/Indecency/Profanity. Any
programs or announcements that are obscene or indecent, as those terms are
interpreted and applied by the FCC or any programs or announcements that are
slanderous, obscene, profane, vulgar, repulsive or offensive, either in theme
or treatment.

 

(e)  Price Disclosure. Any price mentions
except as permitted by Licensee’s policies current at the time.

 

(f)  Unauthorized Testimonials. Any
testimonials which cannot be authenticated.

 

 

(g)  Descriptions of Bodily Functions. Any
continuity which describes in a repellent manner internal bodily functions or
symptomatic results or internal disturbances, and no reference to matters which
are not considered acceptable topics in social groups.

 

(h)  Conflict Advertising. Any advertising
matter or announcement which may, in the reasonable opinion of Station
Licensee, be injurious or prejudicial to the interest of the public, the
Stations, or honest advertising and reputable business in general.

 

(i)  Fraudulent or Misleading Advertisement. Any
advertisement matter, announcement, or claim which Sales Agent knows to be
fraudulent, misleading, or untrue.

 

LOTTERIES. Announcements giving any
information about lotteries or games prohibited by Applicable Law are
prohibited.

 

RELIGIOUS PROGRAMMING RESTRICTIONS. The
subject of religion and references to particular faiths, tenants, and customs
shall be treated with respect at all times. Broadcast Material shall not be
used as medium for attack on any faith, denomination, or sect or upon any
individual or organization.

 

CREDIT TERMS ADVERTISING. Any advertising of credit
terms shall be made over the Station in accordance with Applicable Law.

 

NO ILLEGAL ANNOUNCEMENTS. No announcements or
promotion prohibited by Applicable Law shall be made over the Stations. At
Station Licensee’s request, any game, contest, or promotion relating to or to
be presented over the Stations must be fully stated and explained in advance to
Station Licensee, which reserves the right in its sole discretion to reject any
game, contest, or promotion.

 

LICENSEE DISCRETION PARAMOUNT. In accordance
with the responsibilities of Station Licensee under the Communications Act and
the FCC Rules, Station Licensee reserves the right to reject or terminate any
Broadcast Material proposed to be presented or being presented over the
Stations which is in conflict with the policy of Station Licensee or which in
the reasonable judgment of Station Licensee would not serve the public
interest.

 

PROGRAMMING IN WHICH SALES AGENT HAS A FINANCIAL INTEREST. Sales
Agent shall advise Station Licensee with respect to any Broadcast Material
concerning goods or services in which Sales Agent has a material financial
interest. Any announcements for such goods and services for which Sales Agent
charges less than its regular rate shall clearly identify Sales Agent’s
financial interest.

 

MISCELLANEOUS.

 

(a)  Waiver.
To the extent legally permissible, the parties may jointly waive any of the
foregoing policies in specific instances if, in their opinion, good
broadcasting in the public interest is served.

 

2

 

(b)  Prior
Consent. In any case where questions of policy or interpretation arise,
Sales Agent will attempt in good faith to submit the same to Station Licensee
for decision before making any commitments in connection therewith.

 

3

 

SCHEDULE 9.8

 

NOTICES

 

If to Station Licensee:

 

Tucker
Broadcasting of Traverse City, Inc.

Attention:  Ben Tucker, President

9434 N. Sunset
Ridge

Fountain
Hills, AZ 85268

Phone:  (480)836-2181

Email:  bentucker13@cox.net

 

With a copy
(which shall not constitute notice) to:

 

Pillsbury
Winthrop Shaw Pittman LLP

2300 N Street,
NW

Washington, DC
20037-1122

Attention:  Clifford M. Harrington

Phone:  202-663-8525

Fax:  202-663-8007

 

 

If to Sales Agent:

 

Barrington
Traverse City, LLC

45 Fifth Avenue

24th Floor

New York, NY 
10151

Attention:  Paul McNicol

Fax:  (212) 486-2896

 

with a copy (which shall not constitute
notice) to:

 

Barrington
Broadcasting LLC

2500 West
Higgins Road, Suite 880

Hoffman
Estates, IL 60195

Attention:  K. James Yager

Fax:  847-755-3045

 

 

and

 

Covington
& Burling

1201
Pennsylvania Avenue, N.W.

Washington, DC
20004-2401

Attention:  Eric Dodson Greenberg, Esq.

Phone: (202)
662-5193

Fax: (202)
662-6291

 

2

 

Exhibit A

 

1. Office Lease dated as of March 1, 2003
between Goldfinger, LLC, and Scanlan Communications, Inc., as amended by that
certain Amendment and Assignment of Lease Agreement dated October 16, 2003
among Max Media of Traverse City LLC, Goldfinger, LLC and Scanlan
Communications, Inc.

 

2.             Land Lease dated July 12, 2006 between CC
Michigan, LLC d/b/a/ Charter Communications and Max Media of Traverse City LLC
for land commonly known as Charter Communication’s Headend Site.

 

3.             Lease Agreement dated September 30, 1982
(as amended on March 1, 2003) between Seller and Ted Joubran for office space
located at 205 E. Front St., Traverse City, MI. As amended.

 

4.             Lease Agreement dated February 20, 2004
between Max Media of Traverse City LLC and H&N Storage Facilities LLC,
d/b/a Silver Lake Self Storage for Space #0334, for an approximately 12x40
unit, located at 5215 Curtis Road, Traverse City, MI.

 

5.             Storage Agreement dated January 16, 2004
between Seller and ProFile, LLC for document storage.

 

3Exhibit 10.16

 

OPTION AGREEMENT

 

THIS OPTION AGREEMENT (this “Agreement”)
is made and entered into as of August 31, 2007, by and among Barrington Traverse City LLC, a Delaware limited liability
company (together with its successors and permitted assigns, “Option Holder”), Tucker Broadcasting of Traverse City, Inc., a Delaware
corporation (together with its successors and permitted assigns, the “Company”), and Tucker Media
and Management Consulting L.L.C., a Delaware limited liability
company (together with its successors and permitted assigns, “Grantor”).

 

WITNESSETH

 

WHEREAS, Option Holder is a
party to that certain Asset Purchase Agreement (the “Station
Purchase Agreement”), dated as of the date hereof, by and among
Max Media of Traverse City LLC, MTC License LLC (collectively, “Sellers”) and Option Holder,
pursuant to which Option Holder has agreed to purchase certain assets of the
Sellers related to the television broadcast stations WGTU, channel 29, Traverse
City, Michigan (“WGTU”) and WGTQ, channel 8, Sault
Ste. Marie, Michigan (“WGTQ” and
together with WGTU, the “Stations”)
each serving the Traverse City/Cadillac, Michigan market;

 

WHEREAS, Grantor owns 100% of
the issued and outstanding common stock, par value $0.01 per share (the “Common Stock”), of the Company;

 

WHEREAS, Option Holder and the
Company are parties to that certain Assignment and Assumption Agreement (the “Assignment Agreement”), dated as of
the date hereof, pursuant to which Option Holder has assigned certain of its
rights under the Station Purchase Agreement to the Company, including the right
to purchase the Purchased Assets (as such term is defined in the Station
Purchase Agreement);

 

WHEREAS, effective upon the
closing of the transactions contemplated by the Station Purchase Agreement (the
“Station Closing”), Grantor and the
Company desire to grant Option Holder an option to purchase, at Option Holder’s
election, (i) all of the Common Stock of the Company or (ii) all of the Company’s
assets relating to the Stations, including the Purchased Assets, in either case
on the terms and conditions set forth herein; and

 

WHEREAS, Option Holder desires
to acquire from Grantor and the Company an option to purchase, at Option Holder’s
election, (i) all of the Common Stock of the Company or (ii) all of the Company’s
assets relating to the Stations, including the Purchased Assets, in either case
on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration
of the mutual covenants and agreements hereinafter set forth, the parties, intending
to be legally bound, agree as follows:

 

1.             Option Grant.
Grantor hereby gives, grants, transfers and conveys to Option Holder, and its
successors and assigns, the sole and exclusive right, privilege and option to
purchase (the “Option”), on the terms and
conditions hereinafter set forth and effective as of the Station Closing, at
Option Holder’s election, (i) all of the Common Stock of the Company now held
or hereinafter acquired by Grantor (collectively, the “Subject
Shares”), or (ii) all of the tangible and intangible personal
property, licenses, authorizations and leases, contracts and 

 

 

agreements, owned or held by Grantor or the Company or in which Grantor
or the Company holds an interest, relating to the operation of the Stations,
including the property described below (and collectively referred to as the “Assets”):

 

(a)           All
of the Purchased Assets;

 

(b)           All
of the licenses, construction permits and other authorizations issued by the
FCC for the operation of the Stations, including any renewals, extensions or
modifications thereof and additions thereto between the date hereof and the
Option Closing (collectively, the “FCC Licenses”);

 

(c)           All
other licenses, permits, construction permits, approvals, concessions,
franchises, certificates, consents, qualifications, registrations, privileges
and other authorizations and other rights, from any governmental authority to
Grantor or the Company used in connection with the Stations, including any
renewals, extensions or modifications thereof and additions thereto between the
Station Closing and the Option Closing (collectively, the “Permits”);

 

(d)           All
of the tangible personal property owned by Grantor or the Company as of the
Station Closing or thereafter acquired by Grantor or the Company and used or useful
in the operation of the Stations;

 

(e)           All
of the intangible personal property owned by Grantor or the Company relating to
or used in connection with the operation of the Stations as of the Station
Closing or thereafter acquired by Grantor or the Company and used or useful in
the operation of the Stations, exclusive of all cash on-hand of Grantor or the
Company and any payments due to the Company under the JSA;

 

(f)            Grantor’s
and the Company’s rights and duties under the Station Purchase Agreement; and

 

(g)           All
of the contracts, leases and other agreements relating to the ownership and
operation of the Stations.

 

2.             Consideration for
Option. This Option is granted for the Option Period (as the same may
be extended pursuant to Section 3 hereof) in return for, among other
consideration, the payment by Option Holder to Grantor of an amount equal to
Five Thousand Five Hundred Dollars ($5,500.00), which shall be due and payable
on the date of the Station Closing.

 

3.             Option Period.
The Option shall be effective commencing on the date hereof (the “Effective Date”) and ending on the
eighth anniversary of the Effective Date (the “Option
Period”); provided, however, that the Option Period shall be extended
automatically without any further action by Option Holder, Grantor or the
Company if the Joint Sales Agreement (as the same may be amended from time to
time, the “JSA”), dated as of the date
hereof, by and between Option Holder and the Company, shall be renewed and,
thereafter, the Option Period shall continue until the JSA is terminated in
accordance with its terms. The Option may be exercised by Option Holder at any
time during the Option Period.

 

2

 

4.             Exercise of Option;
Withdrawal.

 

(a)           Option
Holder may exercise the Option at any time during the Option Period by delivery
of written notice thereof (the “Exercise Notice”)
to Grantor, specifying whether Option Holder is exercising the Option with
respect to the Subject Shares or the Assets. Upon exercise of the Option,
Option Holder, Grantor and the Company shall be obligated to enter into the
transactions to be consummated hereunder at the Option Closing, subject to the
provisions of Sections 9 and 10 hereof, and Section 4(b) below.

 

(b)           Option
Holder may withdraw any Exercise Notice prior to the Option Closing by written
notice to Grantor of such withdrawal. No such withdrawal (and no withdrawal of
any subsequent Exercise Notice) will affect Option Holder’s right subsequently
to exercise the Option by delivering to Grantor during the Option Period one or
more other Exercise Notices.

 

5.             Purchase of Subject
Shares or Assets.

 

(a)           Purchase Price. At the Option Closing, and pursuant to the
terms and subject to the conditions set forth in this Agreement, Option Holder
shall pay to Grantor an amount equal to the Cash Purchase Price by federal wire
transfer of same-day funds pursuant to wire instructions delivered to Option
Holder by Grantor at least two business days prior to the Closing Date (or such
other method of funds transfer as may be agreed upon by Option Holder and
Grantor). The “Cash Purchase Price” shall be
(i) in the event Option Holder exercises the Option with respect to the Assets,
an amount equal to the sum of (x) the Base Value (as defined in Schedule 5(a) hereto) and (y) the Escalation Amount (as
defined and calculated pursuant to Schedule 5(a)
hereto), or (ii) in the event Option Holder exercises the Option with respect
to the Subject Shares, an amount equal to (A) the sum of (x) the Base Value and
(y) the Escalation Amount less (B) Outstanding Debt (as defined in Schedule 5(a) hereto).

 

(b)           Purchase of Subject Shares. Subject to Section 4(b), upon
the exercise of the Option with respect to the Subject Shares, Grantor shall,
on the Closing Date, deliver any and all stock certificates representing the
Subject Shares, duly endorsed for transfer to Option Holder, together with
appropriate stock powers duly endorsed for transfer to Option Holder.

 

(c)           Purchase of Assets.

 

(i)            Transfer of
Assets. Subject to Section 4(b), upon the exercise of the Option
with respect to the Assets, Grantor and the Company shall, on the Closing Date,
sell, assign, transfer, convey and deliver to Option Holder all right, title
and interest of Grantor and the Company in and to the Assets free and clear of
liens, claims and encumbrances (“Liens”),
except for Assumed Obligations, liens for taxes not yet due and payable and any
other liens expressly identified and agreed to by the parties in writing
(collectively, “Permitted Liens”).

 

(ii)           Excluded
Assets. Except for those assets specifically identified in Section
1, the Assets shall not include any other assets, properties, interests or
rights of any kind or description (the “Excluded Assets”).
The Excluded Assets shall remain the property of Grantor or the Company, as the
case may be.

 

3

 

(iii)          Assumption
of Obligations. On the Closing Date, Option Holder shall assume and
undertake to pay, discharge and perform all obligations of Grantor or the
Company, as the case may be, as the holder of the Permits and the FCC Licenses,
including all obligations to make all required FCC filings with respect
thereto, and as the owner of the other Assets, including all leases and
contracts included in such Assets, to the extent such obligations arise out of
events occurring on or after the Closing Date (the “Assumed
Obligations”).

 

(iv)          Excluded
Obligations. Option Holder does not assume or agree to discharge or
perform, and will not be deemed by reason of the execution and delivery of this
Agreement or the consummation of the transactions contemplated hereby, to have
assumed or to have agreed to discharge or perform, and Grantor and the Company
shall remain liable for, any liabilities, obligations or commitments of Grantor
and the Company arising from the business or operation of the Stations before
the Closing Date and any other obligations or liabilities other than the
Assumed Obligations.

 

(v)           Allocation.
Option Holder, Grantor and the Company will allocate the Cash Purchase Price in
accordance with the respective fair market values of the Assets and the
goodwill being purchased and sold in accordance with the requirements of
Section 1060 of the Internal Revenue Code of 1986, as amended. The allocation shall
be determined by mutual agreement of the parties. Option Holder, Grantor and
the Company agree to file their federal income tax returns and their other tax
returns reflecting such allocation and to use such allocation for accounting
and financial reporting purposes.

 

(d)           Closing. Upon the exercise of the Option, the consummation
of the sale and purchase of the Subject Shares or the Assets, as the case may
be, provided for in this Agreement (the “Option Closing”)
shall take place no later than ten business days after the satisfaction or, to
the extent permissible by law, the waiver (by the party for whose benefit the
closing condition is imposed) of, the conditions specified in Sections 9
and 10 hereof. Alternatively, the Option Closing may take place at such other
place, time or date as the parties may mutually agree upon in writing. The date
on which the Option Closing is to occur is referred to herein as the “Closing Date.”

 

6.             Representations and
Warranties of Grantor and the Company. Grantor and the Company, jointly
and severally, represent and warrant to Option Holder as follows; provided, however, that
neither Grantor nor the Company make any representation or warranty as to any
action, event, occurrence or circumstance that (i)
was or shall be caused by Option Holder or that arose, or shall arise from any
omission by Option Holder to perform its obligations under the JSA or the
Shared Services Agreement (the “SSA”),
dated as of the date hereof, by and between the Company and Option Holder, or (ii) constitutes a breach by Sellers of a representation or
warranty of Sellers under the Station Purchase Agreement:

 

(a)           The
Company was organized as a Delaware corporation on August 21, 2007. Prior to
the date hereof, the Company has not engaged in any business and does not have
any liabilities or obligations, except those liabilities and obligations
incurred in connection with 

 

4

 

its organization, the
negotiation, execution, delivery and performance of this Agreement, the Station
Purchase Agreement, the Assignment Agreement, the Letter Agreement (as
hereinafter defined), the JSA and the SSA and the transactions contemplated
hereby and thereby and incidental expenses incurred in connection therewith. The
Company has no indebtedness for borrowed money, other than indebtedness incurred
in connection with the performance of the Company’s obligations pursuant to the
Station Purchase Agreement pursuant to a credit agreement or other financing
arrangement contemplated by that certain Commitment Letter, dated as of August
31, 2007, from Banc of America Securities LLC, Wachovia Bank, National
Association, Wachovia Capital Markets, LLC and CIT Lending Services Corporation
in favor of Tucker Broadcasting of Traverse City, Inc., or any other financing
arrangement provided by, or entered into with, Pilot Group L.P. or an Affiliate
thereof (an “Acquisition Financing Arrangement”).

 

(b)           Each
of Grantor and the Company has the power and authority and full legal capacity
to enter into and to perform its obligations under this Agreement. The
execution, delivery and performance of this Agreement by each of Grantor and
the Company has been duly authorized and this Agreement constitutes a valid and
binding obligation of each of Grantor and the Company enforceable against each
of them in accordance with it terms, except as may be limited by bankruptcy,
insolvency or other similar laws affecting the enforcement of creditors’ rights
in general and subject to general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law).

 

(c)           As
of the Option Closing, Grantor owns 100% of the Subject Shares and Grantor has
good and valid title to the Subject Shares free and clear of all liens. All of
the Subject Shares have been duly authorized and are validly issued, fully paid
and nonassessable. Other than the Subject Shares or pursuant to an Acquisition
Financing Transaction, no class of interests in or equity interests of the
Company is outstanding, and there are no outstanding subscriptions, warrants,
options, calls, commitments or other rights to purchase or acquire, or
securities convertible into or exchangeable for, any equity or debt interests
of the Company or any obligation of the Company to issue or grant any thereof.

 

(d)           As
of the Option Closing, the Company has good and marketable title to the Assets
free and clear of all liens other than liens for taxes not yet due and payable
and liens that will be discharged at or prior to the Option Closing.

 

(e)           As
of the Closing Date, the Company is the holder of the FCC Licenses and such FCC
Licenses are valid and in full force and effect.

 

(f)            As
of the Closing Date, Grantor and the Company shall have filed all material
returns, reports, and statements that Grantor or the Company, as the case may
be, is required to file with the FCC and the Federal Aviation Administration. Except
as set forth on Schedule 6(f) hereto, (i) there is no action, suit or proceeding pending or, to
Grantor’s knowledge, threatened in writing against Grantor or the Company in
respect of the Stations seeking to enjoin the transactions contemplated by this
Agreement; and (ii) to Grantor’s knowledge, there
are no governmental claims or investigations pending or threatened against
Grantor or the Company in respect of the Stations (except those affecting the
broadcasting industry generally).

 

5

 

(g)           No
broker, finder or other person is entitled to a commission, brokerage fee or
other similar payment in connection with this Agreement or the transactions
contemplated hereby as a result of any agreement or action of Grantor or the
Company or any other party acting on Grantor’s or the Company’s behalf.

 

The parties agree
that Schedule 6(f) hereto may be updated by
Grantor as of the Closing Date.

 

7.             Representations and
Warranties of Option Holder. Option Holder represents and warrants to
Grantor and the Company as follows:

 

(a)           Option
Holder is a limited liability company duly formed, validly existing and in good
standing under the laws of the State of Delaware.

 

(b)           Option
Holder has the power and authority to enter into and perform its obligations
under this Agreement.

 

(c)           The
execution, delivery and performance of this Agreement by Option Holder has been
duly authorized and this Agreement constitutes a valid and binding obligation
of Option Holder enforceable against it in accordance with its terms, except as
may be limited by bankruptcy, insolvency or other similar laws affecting creditors’
rights in general and subject to general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

 

(d)           No
broker, finder or other person is entitled to a commission, brokerage fee or
other similar payment in connection with this Agreement or the transactions
contemplated hereby as a result of any agreement or action of Option Holder or
any party acting on Option Holder’s behalf.

 

8.             Covenants of Grantor
and the Company  During the
Option Period, and subject to the JSA and SSA, and the performance by Option
Holder of its obligations thereunder, Grantor and the Company, jointly and
severally, covenant to:

 

(a)           Maintain
insurance on the Assets and with respect to the operation of the Stations in such
amounts and in such nature as in effect on the date hereof;

 

(b)           Operate
the Stations in all material respects in accordance with the terms of the FCC
Licenses, the Communications Act of 1934, as amended (the “Communications
Act”), the rules and published policies of the FCC (“FCC Rules”) and all other statutes,
ordinances, rules and regulations of governmental authorities;

 

(c)           Refrain
from taking any action that would cause the FCC Licenses not to be in full
force and effect or to be revoked, suspended, cancelled, rescinded, terminated
or expired;

 

(d)           File
all material returns, reports, and statements that Grantor or the Company, as
the case may be, is required to file with the FCC and the Federal Aviation
Administration;

 

6

 

(e)           Other
than pursuant to an Acquisition Financing Arrangement, not mortgage, pledge,
subject to any lien or otherwise encumber (or cause any of the foregoing to
occur) any of the Assets or Subject Shares or any other outstanding equity
interests or assets of Grantor or the Company;

 

(f)            Not
sell, lease or otherwise dispose of any of the Assets in a manner that is
inconsistent with this Agreement, except for properties and assets sold or
replaced with others of like kind and value in the ordinary course of business;
and

 

(g)           Not
issue any subscription, warrant, option, calls, commitments or other rights to
purchase or acquire any equity or debt interests, or any securities convertible
into or exchangeable for any equity or debt interests, of Grantor or the
Company (other than pursuant to an Acquisition Financing Arrangement).

 

Notwithstanding anything to the contrary contained herein, to the
extent that the obligations of Grantor or the Company hereunder would require
the incurrence of an Other Expense as defined in the JSA, such obligation or
covenant shall be subject to the terms and conditions of the JSA.

 

9.             Grantor and the
Company Closing Conditions.

 

Subject to the exercise of the Option pursuant to the
terms and subject to the conditions of this Agreement, the obligations of
Grantor and the Company hereunder are subject to satisfaction or waiver, at or
prior to the Option Closing, of each of the following conditions:

 

(a)           Representations, Warranties and Covenants. The representations
and warranties of Option Holder made in this Agreement shall be true and
correct in all material respects at and as of the Closing Date except for
changes permitted or contemplated by the terms of this Agreement, and the
covenants and agreements to be complied with and performed by Option Holder at
or prior to the Option Closing shall have been complied with or performed in
all material respects. Grantor shall have received a certificate dated as of
the Closing Date from Option Holder, executed by an authorized officer of
Option Holder, to the effect that the conditions set forth in this Section 9(a)
have been satisfied.

 

(b)           FCC Consent. The FCC Consent shall have been obtained and be
in effect and no court or governmental order prohibiting the Option Closing
shall be in effect.

 

(c)           No Prohibitions. No injunction, restraining order or decree
of any nature of any governmental authority of competent jurisdiction shall be
in effect that restrains or prohibits any party from consummating the
transactions contemplated by this Agreement.

 

10.          Option Holder Closing
Conditions.

 

Subject to the exercise of the Option pursuant the
terms and subject to the conditions of this Agreement, the obligations of
Option Holder hereunder are subject to satisfaction or waiver, at or prior to
the Option Closing, of each of the following conditions:

 

(a)           Representations, Warranties and Covenants. The
representations and warranties of Grantor and the Company made in this
Agreement shall be true and correct in all 

 

7

 

material respects at and
as of the Closing Date except for changes permitted or contemplated by the
terms of this Agreement, and the covenants and agreements to be complied with
and performed by Grantor and the Company at or prior to the Option Closing
shall have been complied with or performed in all material respects. Option
Holder shall have received certificates dated as of the Closing Date from each
of the Company and Grantor, executed by an authorized officer of each of the
Company and Grantor to the effect that the conditions set forth in this Section
10(a) have been satisfied.

 

(b)           FCC Consent. The FCC Consent shall have been obtained and
constitute a Final Order, and no court or governmental order prohibiting the Option
Closing shall be in effect. For purposes hereof, “Final
Order” shall mean an action by the FCC or other regulatory
authority having jurisdiction (i) with respect
to which action no timely request for stay, motion or petition for
reconsideration or rehearing, application or request for review or notice of
appeal or other judicial petition for review is pending and (ii) as to which the time for filing any such request,
motion, petition, application, appeal or notice and for entry of orders
staying, reconsidering or reviewing on the FCC’s or such other regulatory
authority’s own motion has expired.

 

(c)           No Prohibitions. No injunction, restraining order or decree
of any nature of any governmental authority of competent jurisdiction shall be
in effect that restrains or prohibits any party from consummating the
transactions contemplated by this Agreement.

 

11.          Closing Deliveries.

 

(a)           Purchase of Subject Shares.

 

(i)            Grantor
Documents. Subject to the exercise of the Option with respect to the
Subject Shares pursuant to the terms and subject to the conditions of this
Agreement, at the Option Closing Grantor shall deliver or cause to be delivered
to Option Holder:

 

(A)          certified copies of
resolutions authorizing the execution, delivery and performance of this Agreement,
including the consummation of the transactions contemplated hereby, by Grantor;

 

(B)           the certificates
described in Section 10(a) hereof;

 

(C)           all stock certificates
representing the Subject Shares, duly endorsed for transfer to Option Holder
accompanied by appropriate stock powers duly endorsed for transfer to Option
Holder;

 

(D)          a certificate from the
Secretary of State of the State of Delaware as to the Company’s good standing
and payment of all taxes in such jurisdiction dated within three days of the
Closing Date; and

 

(E)           such other documents,
certificates, payments, assignments, transfers and other deliveries as Option
Holder may reasonably request 

 

8

 

and as are customary to
effect a closing of the matters herein contemplated.

 

(ii)           Option
Holder Documents. Subject to the exercise of the Option with respect
to the Subject Shares pursuant to the terms and subject to the conditions of
this Agreement, at the Option Closing Option Holder shall deliver or cause to
be delivered to Grantor:

 

(A)          the certificate
described in Section 9(a) hereof;

 

(B)           the Cash Purchase
Price; and

 

(C)           such other documents,
certificates, payments, assignments, transfers and other deliveries as Grantor
may reasonably request and as are customary to effect a closing of the matters
herein contemplated.

 

(b)           Purchase of Assets.

 

(i)            Grantor
Documents. Subject to the exercise of the Option with respect to the
Assets pursuant to the terms and subject to the conditions of this Agreement,
at the Option Closing Grantor and the Company shall deliver or cause to be
delivered to Option Holder:

 

(A)          certified copies of
resolutions authorizing the execution, delivery and performance of this
Agreement, including the consummation of the transactions contemplated hereby,
by Grantor and the Company;

 

(B)           the certificates
described in Section 10(a) hereof

 

(C)           the Assignment and
Assumption Agreement in the form attached hereto as Exhibit A;

 

(D)          the Assignment and
Assumption Agreement FCC Licenses in the form attached hereto as Exhibit B; and

 

(E)           such other bills of
sale, assignments and other instruments of conveyance, assignment and transfer
as may be necessary to convey, transfer and assign to Option Holder the Assets,
free and clear of Liens, except for Permitted Liens.

 

(ii)           Option
Holder Documents. Subject to the exercise of the Option with respect
to the Assets pursuant to the terms and subject to the conditions of this
Agreement, at the Option Closing Option Holder shall deliver or cause to be
delivered to Grantor and the Company:

 

(A)          the certificate
described in Section 9(a) hereof;

 

(B)           the Cash Purchase
Price;

 

9

 

(C)           the Assignment and
Assumption Agreement in the form attached hereto as Exhibit A;

 

(D)          the Assignment and
Assumption Agreement FCC Licenses in the form attached hereto as Exhibit B; and

 

(E)           such other documents
and instruments of assumption as may be necessary to assume the Assumed
Obligations.

 

12.          Survival; Indemnification.

 

(a)           Survival. The representations and warranties in this
Agreement shall survive the Option Closing for twelve months after the Closing
Date, whereupon they shall expire and be of no further force or effect, except
those under this Section 12 that relate to Damages for which written notice is
given by the Indemnified Party to the Indemnifying Party prior to the
expiration, which shall survive until resolved.

 

(b)           Indemnification.

 

(i)            Subject to the
limitations set forth in Section 12(c) below, from and after the Option
Closing, Grantor shall defend, indemnify and hold harmless Option Holder from
and against any and all losses, costs, damages, claims, suits, actions,
judgments, liabilities and expenses, including reasonable attorneys’ fees and
expenses (“Damages”), incurred by Option
Holder arising out of or resulting from (A) any material
inaccuracy in, or breach or nonfulfillment of, any of the representations,
warranties, covenants or agreements made by Grantor or the Company in this
Agreement or default by Grantor or the Company under this Agreement, or (B) in the case of the sale of the Assets, obligations or
liabilities of Grantor or the Company regarding the Stations other than the
Assumed Obligations.

 

(ii)           From and after the
Option Closing, Option Holder shall defend, indemnify and hold harmless Grantor
from and against any and all Damages incurred by Grantor arising out of or
resulting from (A) any material inaccuracy in, or
breach or nonfulfillment of, any of the representations, warranties, covenants
or agreements made by Option Holder in this Agreement or default by Option
Holder under this Agreement; (B) the Assumed
Obligations, in the case of the sale of the Assets, or the business or
operations of the Stations after the Closing Date; and (C)
any taxes owed by Option Holder for any period following the Closing Date.

 

(iii)          From and after the date
hereof, Option Holder shall defend, indemnify and hold harmless Grantor from
and against any and all Damages incurred by Grantor arising out of or resulting
from (A) in the case of the sale of the Assets, the performance of the Company’s
obligations under the Station Purchase Agreement (without limiting the
obligation of the Company pursuant to the terms and subject to the conditions
of that certain letter agreement, dated as of the date hereof, by and among the
parties to this Agreement (the “Letter 

 

10

 

Agreement”)),
(B) the business or operations of the Stations during the period prior to the
Station Closing, (C) any act or omission, event or occurrence that was or shall
be caused by Option Holder, its agents or affiliates (including any predecessor
in interest thereto) relating to the business or operations of Option Holder or
the Stations, (D) the operation of the Stations or the conduct of the business
thereof from and after the Station Closing and continuing through the Option
Period and any extensions thereof (including without limitation in connection
with any fines or penalties imposed by the FCC), except to the extent arising
from, relating to, or as a result of the actions or omissions of Grantor’s
employees and representatives in performing their duties, or in acting outside
the scope of their employment, with respect to the operation of the Stations
during the Option Period and any extensions thereof, which actions or omissions
constitute willful misconduct or gross negligence, and (E) the negotiation and
the document preparation and execution relating to the Station Purchase
Agreement, the Assignment Agreement, this Agreement, the JSA, the SSA and the
Letter Agreement and any amendments thereto; provided,
however, that this paragraph (iii) shall
not extend to Damages to the extent arising out of or resulting from a breach
by Grantor or the Company of their representations, warranties, covenants or
agreements in this Agreement, the Assignment Agreement, the Letter Agreement or
the Station Purchase Agreement or from the gross negligence or willful
misconduct of Grantor or the Company or any of their employees, agents or
affiliates.

 

(iv)          Indemnification
Procedures. If any person entitled to indemnification under this Agreement
(an “Indemnified Party”) asserts a claim
for indemnification for, or receives notice of the assertion or commencement of
any action, suit, claim or legal, administrative, arbitration, mediation,
governmental or other proceeding or investigation, other than any brought by a
party to this Agreement or an Affiliate of a party to this Agreement (a “Third Party Claim”) as to which such
Indemnified Party intends to seek indemnification under this Agreement, such
Indemnified Party shall give reasonably prompt written notice of such claim to
the party from whom indemnification is to be sought (an “Indemnifying
Party”), together with a statement of any available information
regarding such claim. The Indemnifying Party shall have the right, upon written
notice to the Indemnified Party (the “Defense Notice”)
within fifteen (15) days after receipt from the Indemnified Party of notice of
such claim, to conduct at its expense the defense against such Third Party
Claim in its own name, or if necessary in the name of the Indemnified Party
(which notice shall specify the counsel the Indemnifying Party will appoint to
defend such claim (“Defense Counsel”); provided, however, that
the Indemnified Party shall have the right to approve the Defense Counsel,
which approval shall not be unreasonably withheld or delayed). The parties
hereto agree to cooperate fully with each other in connection with the defense,
negotiation or settlement of any Third Party Claim. If the Indemnifying Party
delivers a Defense Notice to the Indemnified Party, the Indemnified Party will
cooperate with and make available to the Indemnifying Party such assistance and
materials as may be reasonably requested by the Indemnifying Party, all at the
expense of the Indemnifying Party.

 

11

 

(v)           If the Indemnifying
Party shall fail to give a Defense Notice, it shall be deemed to have elected
not to conduct the defense of the subject Third Party Claim, and in such event
the Indemnified Party shall have the right to conduct such defense in good
faith. If the Indemnified Party defends any Third Party Claim, then the
Indemnifying Party shall reimburse the Indemnified Party for the costs and
expenses of defending such Third Party Claim upon submission of periodic bills.
If the Indemnifying Party elects to conduct the defense of the subject Third
Party Claim, the Indemnified Party may participate, at his or its own expense,
in the defense of such Third Party Claim; provided, however, that such Indemnified Party shall be entitled to
participate in any such defense with separate counsel at the expense of the
Indemnifying Party if (A) so requested
by the Indemnifying Party to participate or (B)
in the reasonable opinion of counsel to the Indemnified Party, a conflict or
potential conflict exists between the Indemnified Party and the Indemnifying
Party that would make such separate representation advisable; and provided, further, that
the Indemnifying Party shall not be required to pay for more than one counsel
for all Indemnified Parties in connection with any Third Party Claim.

 

(vi)          Regardless of which
party defends a Third Party Claim, the other party shall have the right at its
expense to participate in the defense of such Third Party Claim, assisted by
counsel of its own choosing. The Indemnified Party shall not compromise,
settle, default on, or admit liability with respect to a Third Party Claim without
the prior written consent of the Indemnifying Party, which consent shall not be
unreasonably withheld or delayed, and, if the Indemnified Party settles,
compromises, defaults on, or admits liability with respect to a Third Party
Claim except in compliance with the foregoing, the Indemnified Party will be
liable for all Losses paid or incurred in connection therewith and the
Indemnifying Party shall have no obligation to indemnify the Indemnified Party
with respect thereto. The Indemnifying Party shall not compromise or settle a
Third Party Claim without the consent of the Indemnified Party, which consent
shall not be unreasonably withheld or delayed, unless such compromise or
settlement includes as a term thereof an unconditional release of the Indemnified
Party and such compromise or release does not impose any non-monetary
obligations on the Indemnified Party other than immaterial administrative
obligations (and all monetary obligations are subject to the indemnification
provisions of this Agreement), in which case the consent of the Indemnified
Party shall not be required.

 

(vii)         After any final decision,
judgment or award shall have been rendered by a court or governmental entity of
competent jurisdiction and the expiration of the time in which to appeal
therefrom, or after a settlement shall have been consummated, or after the
Indemnified Party and the Indemnifying Party shall have arrived at a mutually
binding agreement with respect to a Third Party Claim hereunder, the
Indemnified Party shall deliver to the Indemnifying Party notice of any sums
due and owing by the Indemnifying Party pursuant to this Agreement with respect
to such matter and the Indemnifying Party shall be required to pay all of the
sums so due and owing to the Indemnified Party by wire 

 

12

 

transfer of immediately
available funds within ten (10) business days after the date of such notice.

 

(viii)        It is the intent of the
parties that all direct claims by an Indemnified Party against a party not
arising out of Third Party Claims shall be subject to and benefit from the
terms of this Section 12(b). Any claim under this Section 12(b) by an
Indemnified Party for indemnification other than indemnification against a
Third Party Claim (a “Direct Claim”)
will be asserted by giving the Indemnifying Party reasonably prompt written
notice thereof, and the Indemnifying Party will have a period of 20 days within
which to satisfy such Direct Claim. If the Indemnifying Party does not so
respond within such 20 day period, the Indemnifying Party will be deemed to
have rejected such claim, in which event the Indemnified Party will be free to
pursue such remedies as may be available to the Indemnified Party under this
Section 12(b).

 

(ix)           A failure by an Indemnified
Party to give timely, complete, or accurate notice as provided in this Section
12(b) shall not affect the rights or obligations of either party hereunder
except to the extent that, as a result of such failure, any party entitled to
receive such notice was deprived of its right to recover any payment under its
applicable insurance coverage or was otherwise materially adversely affected or
damaged as a result of such failure to give timely, complete, and accurate
notice.

 

(x)            The parties shall use
their commercially reasonable efforts to collect the proceeds of any insurance
that would have the effect of reducing any Damages (in which case such proceeds
shall reduce such Losses). To the extent any Damages of an Indemnified Party
are reduced by receipt of payment under insurance policies or from third
parties not affiliated with the Indemnified Party, such payments (net of the
expenses of the recovery thereof) shall be credited against such Damages and,
if indemnification payments shall have been received prior to the collection of
such proceeds, the Indemnified Party shall remit to the Indemnifying Party the
amount of such proceeds (net of the cost of collection thereof) to the extent
of indemnification payments received in respect of such Losses. The indemnification
obligations hereunder shall survive any termination of this Agreement.

 

(c)           NEITHER
PARTY HERETO SHALL BE LIABLE TO THE OTHER FOR INDIRECT, INCIDENTAL,
CONSEQUENTIAL, SPECIAL OR EXEMPLARY DAMAGES (EVEN IF SUCH PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES).

 

13.          Specific Performance.
Grantor, the Company and Option Holder acknowledge and agree that, due to the
unique nature of the subject matter of this Agreement, Option Holder would
suffer irreparable damages in the event of breach of this Agreement, which
damages could not adequately be compensated except by specific performance of
this Agreement. Accordingly, without limiting any other remedy that may be
available to Option Holder at law or equity, in the event of a breach by Grantor
or the Company of this Agreement, it is agreed that Option Holder 

 

13

 

shall be entitled to temporary and permanent
injunctive relief, including, but not limited to, specific performance hereof,
without any showing of actual damage or inadequacy of legal remedy, in any
proceeding before a court of law with proper jurisdiction to hear the matter,
which may be brought to enforce this Agreement. Grantor and the Company hereby
waive any defense that there is an adequate remedy at law for such breach of
this Agreement.

 

14.          Expenses. Option
Holder agrees to reimburse Grantor, within fifteen days of invoicing with
reasonable documentation, for its reasonable and customary fees, costs and
out-of-pocket expenses, including filing fees and reasonable and customary
attorneys’ fees, incurred in connection with the performance of its covenants
and obligations hereunder; provided, however, that, for the avoidance of doubt, Option Holder
shall have no reimbursement obligation with respect to claims, actions or
proceedings brought by or on behalf of Grantor against Option Holder.

 

15.          Further Assurances.
Subject to the terms and conditions of this Agreement, each of the parties
hereto will use all commercially reasonable efforts to take, or cause to be
taken, all actions, and to do, or cause to be done, all things necessary,
proper or advisable under applicable laws and regulations to consummate and
make effective the transactions contemplated by this Agreement.

 

16.          Amendment and
Modification. This Agreement may be amended, modified or supplemented
only by written agreement of Grantor, the Company and Option Holder.

 

17.          Waiver of Compliance;
Consents. Except as otherwise provided in this Agreement, any failure
of any of the parties to comply with any obligation, representation, warranty,
covenant, agreement or condition herein may be waived by the party entitled to
the benefits thereof only by a written instrument signed by the party granting
such waiver, but such waiver or failure to insist upon strict compliance with
such obligation, representation, warranty, covenant, agreement or condition
shall not operate as a waiver of, or estoppel with respect to, any subsequent
or other failure. Whenever this Agreement requires or permits consent by or on
behalf of any party hereto, such consent shall be given in writing in a manner
consistent with the requirements for a waiver of compliances as set forth in
this Section 17.

 

18.          Notices. All
notices, requests, demands and other communications which are required or may
be given pursuant to the terms of this Agreement shall be in written or
electronic form, and shall be deemed delivered (a) on the date of delivery
when (i) delivered by hand or (ii) sent by reputable overnight courier maintaining records
of receipt and (b) on the date of transmission when sent by facsimile or
other electronic transmission during normal business hours with confirmation of
transmission by the transmitting equipment; provided,
however, that any such communication delivered by facsimile or other
electronic transmission shall only be effective if such communication is also
delivered by hand or deposited with a reputable overnight courier maintaining
records of receipt within two business days after its delivery by facsimile or
other electronic transmission. All such communications shall be addressed to
the parties at the address set forth in Exhibit
C, or at such other address as a party may designate upon ten days’
prior written notice to the other party.

 

14

 

19.          Assignment. This
Agreement and all of the provisions hereof shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and permitted
assigns, but, except as provided for herein, neither this Agreement nor any of
the rights, interests or obligations hereunder shall be assigned by Grantor or
the Company without the prior written consent of Option Holder, which consent
shall not be unreasonably withheld. Without the consent of Grantor and the
Company, Option Holder may assign its rights and obligations under this
Agreement to any other party or parties; provided, however, that Option Holder, as assignor, shall not thereby
be released of its obligations hereunder.

 

20.          No Third Party
Beneficiaries. Except as expressly provided herein, this Agreement is
not intended to, and shall not, confer upon any other person except the parties
hereto any rights or remedies hereunder.

 

21.          Governing Law. The
construction and performance of this Agreement shall be governed by the laws of
the State of New York without giving effect to the choice of law provisions
thereof.

 

22.          Severability. If
any provision of this Agreement or the application thereof to any person or
circumstance shall be invalid or unenforceable to any extent, the remainder of
this Agreement and the application of such provision to other persons or
circumstances shall not be affected thereby and shall be enforced to the
greatest extent permitted by law so long as the economic or legal substance of
the transactions contemplated hereby is not affected in any manner materially
adverse to any party. Upon such determination that any term or other provision
is invalid or enforceable, the parties hereto shall negotiate in good faith to
modify this Agreement so as to effect the original intent of the parties as
closely as possible in any acceptable manner to the end that the transactions
contemplated hereby are fulfilled to the greatest extent possible.

 

23.          Publicity. None
of Grantor, the Company or Option Holder shall make or issue or cause to be
made or issued, any announcement (written or oral) concerning this Agreement or
the transactions contemplated hereby for dissemination to the general public
without the prior consent of the other party. This provision shall not apply,
however, to any announcement or written statement required to be made by law or
the regulations of any federal or state governmental agency or any stock
exchange, except that the party required to make such announcement shall
provide a draft copy thereof to the other party hereto, and consult with such
other party concerning the timing and content of such announcement, before such
announcement is made.

 

24.          FCC Approval.

 

(a)           Notwithstanding
any provision to the contrary herein, Option Holder’s rights under this
Agreement are subject to the Communications Act and the FCC Rules.

 

(b)           As
soon as reasonably practicable, but in no event later than five business days
after Option Holder’s delivery of the Exercise Notice, the parties shall file
an application (the “Consent Application”)
with the FCC requesting the FCC’s written consent to (i) the assignment of the
FCC Licenses from the Company to Option Holder or (ii) the transfer of 

 

15

 

control of the Company
from Grantor to Option Holder, as the case may be, including, as applicable,
any waiver of such FCC Rules as Option Holder may deem appropriate or desirable
(a “Waiver Request”). In addition, each
party hereto covenants and agrees to (i) prepare,
file and prosecute any alternative application, petition, motion, request
(including any Waiver Request) or other filing (including, upon the request of
Option Holder, any motion for leave to withdraw or dismiss any Consent
Application or other filing made by the parties in connection with the
transactions contemplated by this Agreement) (collectively, the “Additional Applications” and,
together with the Consent Application, the “FCC
Applications”); (ii) file any
amendment or modification to the FCC Applications; (iii)
provide to Option Holder any information, documents or other materials
reasonably requested by Option Holder in connection with the preparation of any
such FCC Applications, including without limitation any Waiver Request; (iv) prosecute the FCC Applications with commercially
reasonable diligence and otherwise use their commercially reasonable efforts to
obtain a favorable conclusion with regard to the FCC Applications; (v) otherwise take any other action with respect to the
FCC as may be reasonably necessary or reasonably requested by Option Holder in
connection with the transactions contemplated hereby; and (vi) cooperate
in good faith with the other party with respect to the foregoing covenants, all
as may be determined by Option Holder to be reasonably necessary or appropriate
or advisable in order to consummate the transactions contemplated hereby upon
the exercise of the Option. Each party shall promptly provide the other with a
copy of any pleading, order or other document served on it relating to the FCC
Applications, shall furnish all information required by the FCC and shall be
represented at all meetings or hearings scheduled to consider the FCC
Application. The FCC’s written consent to the assignment of the FCC Licenses or
transfer of the Subject Shares, as the case may be, contemplated hereby is
referred to herein as the “FCC Consent.”  The parties each agree to comply with any
condition imposed on them by any FCC Consent, except that no party shall be
required to comply with a condition if such condition requires such party to
divest any of its direct or indirect assets. The parties shall oppose any
petitions to deny or other objections filed with respect to the application for
any FCC Consent and any requests for reconsideration or review of any FCC
Consent.

 

25.          Counterparts. This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument. The delivery of an executed counterpart of the Agreement by
facsimile or electronic transmission will be deemed to be an original
counterpart of the Agreement so transmitted.

 

26.          Headings. The
section headings contained in this Agreement are solely for the purpose of
reference, are not part of the agreement of the parties and shall not in any
way affect the meaning or interpretation of this Agreement.

 

27.          Entire Agreement.
This Agreement, including the documents delivered pursuant to this Agreement or
other written agreements referring specifically to this Agreement, and the
Letter Agreement embody the entire agreement and understanding of the parties
hereto in respect of the transactions contemplated by this Agreement. The
Schedule(s) and Exhibit(s) hereto are an integral part of this Agreement and
are incorporated by reference herein. This Agreement supersedes all prior
negotiations, agreements and understandings between the parties with respect to
the transactions contemplated by this Agreement and all letters of intent and
other 

 

16

 

writings executed
prior to the date hereof relating to such negotiations, agreements and
understandings.

 

28.          Sale of Station WPBN-TV
and WTOM-TV. In the event that Barrington Traverse City License LLC (i)
sells all or substantially all of the assets, including the FCC licenses, of
television broadcast stations WPBN-TV and WTOM-TV and (ii) Option Holder does
not exercise the Option within 30 days of the closing of such sale or otherwise
notifies Grantor of Option Holder’s intention to not exercise the Option
following the closing of such sale, then Grantor and the Company shall have the
right, in their sole discretion, to terminate this Agreement effective
immediately upon written notice to Option Holder.

 

 

[SIGNATURE PAGE FOLLOWS]

 

17

 

IN WITNESS WHEREOF, the undersigned have executed this Option Agreement
as of the day and year first written above.

 

 

	
   

  	
  GRANTOR:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TUCKER
  MEDIA AND MANAGEMENT 

  CONSULTING L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Benjamin W.
  Tucker

  
	
   

  	
  Name: Benjamin
  W. Tucker

  
	
   

  	
  Title:   Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  TUCKER
  BROADCASTING OF TRAVERSE 

  CITY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Benjamin W.
  Tucker

  
	
   

  	
  Name: Benjamin
  W. Tucker

  
	
   

  	
  Title:   President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OPTION
  HOLDER:

  
	
   

  	
   

  
	
   

  	
  BARRINGTON
  TRAVERSE CITY LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul M.
  McNicol

  
	
   

  	
  Name: Paul M.
  McNicol

  
	
   

  	
  Title:   Senior Vice President/Secretary

  

 

 

Exhibit A – Form of Assignment Agreement

 

This Assignment and Assumption Agreement (this “Agreement”) is made as of [                          ],
20[    ], by and among TUCKER BROADCASTING OF
TRAVERSE CITY, INC., a Delaware corporation (“Seller”),
TUCKER MEDIA AND MANAGEMENT CONSULTING L.L.C.,
a Delaware limited liability company (“Parent”),
and BARRINGTON TRAVERSE CITY LLC, a
Delaware limited liability company (“Buyer”).

 

W I T N E S S E T H:

 

WHEREAS, Seller, Parent and
Buyer are parties to that certain Option Agreement, dated as of [              ],
2007 (the “Option Agreement”); and

 

WHEREAS, Seller and Parent
desire to assign to Buyer all of Seller’s and Parent’s right, title and
interest in, to and under the contracts relating to the business of the
Stations (as defined in the Option Agreement) (collectively, the “Assumed Contracts”), and Buyer is
willing to accept assignment of such rights and assume such duties and
obligations arising under or in connection with the Assumed Contracts, in each
case pursuant to the terms and subject to the conditions of the Option
Agreement and this Agreement (including Section 6 hereof).

 

NOW, THEREFORE, in consideration
of the foregoing and for other good and valuable consideration, the receipt and
sufficiency of which the parties acknowledge, Seller, Parent and Buyer,
intending to be legally bound, hereby agree as follows:

 

1.     Defined Terms; Interpretation. Except as
otherwise set forth herein, capitalized terms used herein have the meanings
assigned to them in the Option Agreement.

 

2.     Assignment and Assumption. Pursuant to
the terms and subject to the conditions of the Option Agreement and effective
as of the date hereof, (a) Seller and Parent hereby convey, assign, and
transfer to Buyer, its successors and assigns, all of Seller’s and Parent’s
rights, titles and interests in, to and under the Assumed Contracts, free and
clear of any and all liens, and delegate to Buyer all of their respective
duties and obligations to be performed, or arising on or after the date hereof
in connection with or under the Assumed Contracts, and (b) Buyer hereby accepts
the above assignment of rights and delegation of duties and obligations and
agrees to be bound by and to assume such duties and obligations arising under
or in connection with the Assumed Contracts to be performed or arising on or
after the date hereof.

 

3.     Further Assurances. Each party to this
Agreement agrees to execute, acknowledge, deliver, file and record, and to
cause to be executed, acknowledged, delivered, filed and recorded, such further
certificates, instruments, and documents and to do, and cause to be done, all
such other acts and things, as may be required by law, or as may, in the
reasonable opinion of the other party hereto, be necessary or advisable to
carry out the purposes of this Agreement.

 

4.     Binding Effect; Amendments. This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective legal representatives, successors and assigns. No
modification, amendment or waiver of any provision of, or consent or approval
required by, this Agreement, nor any consent to or approval of any departure
herefrom, shall be effective unless it is in writing and signed by the party
against whom enforcement of any such modification, amendment, waiver, consent
or approval is sought.

 

 

5.     Governing Law. Construction and
interpretation of this Agreement shall be governed by the laws of the State of
New York, excluding any conflicts or choice of law rule or principle that might
otherwise refer construction or interpretation of this Agreement to the
substantive law of another jurisdiction.

 

6.     Option Agreement Controlling. Notwithstanding any other provisions of this
Agreement to the contrary, nothing contained herein shall in any way supersede,
modify, replace, amend, change, rescind, waive, exceed, expand, enlarge or in
any way affect the provisions, including warranties, covenants, agreements,
conditions, representations or, in general, any of the rights and remedies, or
any of the obligations, of Seller, Parent or Buyer set forth in the Option
Agreement. This Agreement is subject to and controlled by the terms of the
Option Agreement.

 

7.     Counterparts. This Agreement may be
executed in any number of counterparts, and each such counterpart hereof shall
be deemed to be an original instrument, but all such counterparts together
shall constitute but one agreement. Delivery of an executed counterpart of a
signature page of this Agreement by facsimile or other electronic transmission
shall be effective as delivery of a manually executed original counterpart of
this Agreement.

 

[Remainder of
page intentionally left blank; signature page follows]

 

 

IN
WITNESS WHEREOF, each of the parties has caused this
Agreement to be duly executed and delivered as of the day and year first above
written.

 

 

	
  Tucker
  Broadcasting of Traverse City, Inc.  

  	
  Barrington
  Traverse City LLC  

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Name:
  

  
	
   

  	
  Title:

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Tucker
  Media and Management Consulting

  L.L.C.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

Exhibit B – Form of Assignment and Assumption
Agreement FCC Licenses

 

ASSIGNMENT
AND ASSUMPTION AGREEMENT

FCC
LICENSES

 

 

This ASSIGNMENT AND ASSUMPTION
AGREEMENT, dated as of                 ,
200     (“Agreement”),
is made, executed and delivered by Tucker Media and Management Consulting
L.L.C., a Delaware limited liability company (“Parent”),
Tucker Broadcasting of Traverse City, Inc., a Delaware corporation (the “Company”, and together with Parent, “Assignor”), and Barrington Traverse
City LLC, a Delaware limited liability company (“Assignee”).

 

W  I  T  N  E
S  S  E  T  H:

 

WHEREAS, pursuant to Assignee’s
exercise of the option to purchase, among other assets, the FCC Licenses listed
on Attachment A attached hereto (the “FCC Licenses”)
granted to Assignee by Assignor under that certain Option Agreement, dated as
of                     ,
2007, by and among Parent, the Company and Assignee (the “Option
Agreement”), Assignor has agreed to convey and assign to
Assignee, and Assignee has agreed to assume, subject to the consent of the
Federal Communications Commission (the “FCC”), the
FCC Licenses;

 

WHEREAS, the FCC has granted its
consent to the assignment of the FCC Licenses from Assignor to Assignee; and

 

WHEREAS, Assignor desires to
transfer and assign to Assignee all of Assignor’s right, title and interest in
and to the FCC Licenses and Assignee desires to assume Assignee’s obligations
with respect thereto;

 

NOW, THEREFORE, in consideration
of the premises and the mutual covenants and agreements herein contained, and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, Assignor and Assignee, intending to be legally bound,
hereby agree as follows:

 

1.             Capitalized
terms used herein but not defined herein shall have the meanings ascribed to
such terms in the Option Agreement.

 

2.             Assignor
does hereby assign and deliver to Assignee all right, title and interest in and
to the FCC Licenses. Assignor shall remain liable for all of the obligations
and liabilities arising under the FCC Licenses insofar as such obligations and
liabilities relate to the time period prior to the Closing Date.

 

3.             Assignee
hereby agrees that it shall assume and discharge and perform, insofar as they
relate to the time period beginning on and after the Closing Date, all the
obligations and liabilities of Assignor under the FCC Licenses. Assignee shall
not assume any other obligations or liabilities of the Assignor pursuant to
this Agreement.

 

 

4.             Assignor
and Assignee shall each execute and deliver such other documents and take such
other actions as the other party hereto may reasonably request, at the FCC or
otherwise, to confirm the assignment executed hereby and to vest title in and
to the FCC Licenses in Assignee, except that Assignee shall promptly execute
and file a consummation notice at the FCC as required by FCC Rules, a copy of
which shall be delivered to Assignor.

 

5.             Notwithstanding
any other provisions of this Agreement to the contrary, nothing contained
herein shall in any way supersede, modify, replace, amend, change, rescind,
waive, exceed, expand, enlarge or in any way affect the provisions, including
warranties, covenants, agreements, conditions, representations or, in general,
any of the rights and remedies, and any of the obligations, of Assignor set
forth in the Purchase Agreement, including, without limitation, any limits on
indemnification specified therein. This Agreement is subject to and controlled
by the terms of the Purchase Agreement. Nothing contained herein is intended to
modify or supersede any of the provisions of the Purchase Agreement.

 

6.             This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns.

 

7.             This
Agreement shall be governed, construed and enforced in accordance with the laws
of the State of New York (without regard to the choice of law provisions
thereof).

 

8.             This
Agreement cannot be amended, supplemented, or changed except by an agreement in
writing that is signed by the parties hereto.

 

9.             This
Agreement may be executed in any number of counterparts and by facsimile, each
of which will be deemed an original, but all of which together will constitute
one and the same instrument.

 

 

IN WITNESS
WHEREOF, the Company, Parent and Assignee have executed this Agreement as of
the date first above written.

 

	
   

  	
  TUCKER
  BROADCASTING OF TRAVERSE 

  CITY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TUCKER
  MEDIA AND MANAGEMENT 

  CONSULTING L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title: 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BARRINGTON
  TRAVERSE CITY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title: 

  
				

 

 

Exhibit C - Notices

 

If to Option Holder, to:

 

Barrington
Traverse City LLC

745 Fifth Avenue

24th Floor

New York, NY  10151

Attention:  Paul
McNicol

Fax:  (212)
486-2896

 

with a
copy (which shall not constitute notice) to:

 

Barrington Broadcasting LLC

2500 West Higgins Road, Suite 880

Hoffman Estates, IL 60195

Attention:  K.
James Yager

Fax: 
847-755-3045

 

and

 

Covington & Burling LLP

1201 Pennsylvania Ave., N.W.

Washington,
D.C. 20004-2401

Fax:   202-662-6291

Attention:   Eric
Dodson Greenberg, Esq.

 

If to
Grantor or the Company to:

 

Tucker Broadcasting of Traverse City, Inc.

Attention:  Ben
Tucker, President

9434 N. Sunset Ridge

Fountain Hills, AZ 85268

Phone: 
(480)836-2181

Email: 
bentucker13@cox.net

 

With a copy (which shall not constitute notice) to:

 

Pillsbury Winthrop Shaw Pittman LLP

2300 N Street, NW

Washington, DC 20037-1122

Attention: 
Clifford M. Harrington

Phone: 
202-663-8525

Fax: 
202-663-8007

 

 

Schedule 5(a)

 

1.             For purposes of this
Agreement, the “Base Value” shall be an
amount equal to the aggregate amount payable by the Company at the Station
Closing pursuant to the Station Purchase Agreement; provided,
however,  that
in the event that the Company shall have elected to borrow the purchase price
with respect to its payment obligations under the Station Purchase Agreement
pursuant to an Acquisition Financing Arrangement, the “Base Value” shall equal
the Outstanding Debt.

 

2.             For purposes of this
Agreement, the “Outstanding Debt” shall be an
amount equal to the total outstanding balance of debt, if any, for borrowed
money of the Company pursuant to an Acquisition Financing Arrangement.

 

3.             For purposes of this
Agreement, the “Escalation Amount” shall be
an amount equal to the greater of (A) the Fixed
Appreciation Amount or (B) the Net
Broadcast Cash Flow Amount.

 

For purposes hereof, the “Fixed Appreciation Amount” equals
the product of (i) the number of calendar years
(including fractions of years) during the Option Period prior to the exercise
of the Option, times (ii)
an amount equal to $27,000; “Net Broadcast Cash Flow
Amount” means the product of (x)
the number of calendar years (including fractions of years) during the Option
Period prior to the exercise of the Option, times (y) the average net broadcast cash flow (as determined by
Option Holder) for the preceding 12-month period (or if the Option is exercised
prior to the first anniversary of the Effective Date, the average net broadcast
cash flow for the period following the Effective Date); provided,
however, that the Net Broadcast Cash
Flow Amount shall not exceed $54,000. Solely with respect to that portion of
the Cash Purchase Price constituting the Escalation Amount, the parties shall
apply as a credit against such amount an amount equal to $5,000 multiplied by
the number of months (including fractions of months) between the date of the
Station Closing and the date of the Option Closing. In no event shall the
Escalation Amount result in an internal rate of return that is less than zero.

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