Document:

Exhibit 4.1

 

BARRINGTON BROADCASTING GROUP
LLC,

as Issuer,

 

BARRINGTON BROADCASTING CAPITAL
CORPORATION,

as Co-Issuer

 

and

 

 

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 

 

INDENTURE

 

 

DATED AS OF August 11, 2006

 

 

101⁄2% SENIOR SUBORDINATED NOTES DUE 2014

 

 

CROSS-REFERENCE TABLE*

 

	
  Trust Indenture

  Act Section

  	
   

  	
   

  	
  Section

  Indenture

  
	
   

  	
   

  	
   

  	
   

  
	
  310

  	
  (a)(1)

  	
   

  	
  7.10

  
	
   

  	
  (a)(2)

  	
   

  	
  7.10

  
	
   

  	
  (a)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(5)

  	
   

  	
  7.10

  
	
   

  	
  (b)

  	
   

  	
  7.3; 7.10

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  311

  	
  (a)

  	
   

  	
  7.11

  
	
   

  	
  (b)

  	
   

  	
  7.11

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  312

  	
  (a)

  	
   

  	
  2.5

  
	
   

  	
  (b)

  	
   

  	
  12.3

  
	
   

  	
  (c)

  	
   

  	
  12.3

  
	
  313

  	
  (a)

  	
   

  	
  7.6

  
	
   

  	
  (b)(1)

  	
   

  	
  7.6

  
	
   

  	
  (b)(2)

  	
   

  	
  7.6; 7.7

  
	
   

  	
  (c)

  	
   

  	
  7.6; 12.2

  
	
   

  	
  (d)

  	
   

  	
  7.6

  
	
  314

  	
  (a)

  	
   

  	
  4.3; 12.5

  
	
   

  	
  (b)

  	
   

  	
  10.2

  
	
   

  	
  (c)(1)

  	
   

  	
  12.4

  
	
   

  	
  (c)(2)

  	
   

  	
  12.4

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  9.1

  
	
   

  	
  (e)

  	
   

  	
  12.5

  
	
   

  	
  (f)

  	
   

  	
  N.A.

  
	
  315

  	
  (a)

  	
   

  	
  7.1

  
	
   

  	
  (b)

  	
   

  	
  7.5; 12.2

  
	
   

  	
  (c)

  	
   

  	
  7.1

  
	
   

  	
  (d)

  	
   

  	
  7.1

  
	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  316

  	
  (a) (last sentence)

  	
   

  	
  2.9

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  6.5

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.4

  
	
   

  	
  (a)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  6.7

  
	
   

  	
  (c)

  	
   

  	
  2.13

  
	
  317

  	
  (a)(1)

  	
   

  	
  6.8

  
	
   

  	
  (a)(2)

  	
   

  	
  6.9

  
	
   

  	
  (b)

  	
   

  	
  2.4

  
	
  318

  	
  (a)

  	
   

  	
  12.1

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)

  	
   

  	
  12.1

  
					

 

N.A. means not applicable.

 

*                         This
Cross-Reference Table is not part of this Indenture.

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.1

  	
   

  	
  Definitions

  	
   

  	
  1

  	
   

  
	
  SECTION 1.2

  	
   

  	
  Other
  Definitions

  	
   

  	
  25

  	
   

  
	
  SECTION 1.3

  	
   

  	
  Incorporation
  by Reference of Trust Indenture Act

  	
   

  	
  26

  	
   

  
	
  SECTION 1.4

  	
   

  	
  Rules of
  Construction

  	
   

  	
  26

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE NOTES

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.1

  	
   

  	
  Form and
  Dating

  	
   

  	
  27

  	
   

  
	
  SECTION 2.2

  	
   

  	
  Execution
  and Authentication

  	
   

  	
  29

  	
   

  
	
  SECTION 2.3

  	
   

  	
  Registrar;
  Paying Agent

  	
   

  	
  29

  	
   

  
	
  SECTION 2.4

  	
   

  	
  Paying Agent
  to Hold Money in Trust

  	
   

  	
  30

  	
   

  
	
  SECTION 2.5

  	
   

  	
  Holder Lists

  	
   

  	
  30

  	
   

  
	
  SECTION 2.6

  	
   

  	
  Book-Entry
  Provisions for Global Securities

  	
   

  	
  31

  	
   

  
	
  SECTION 2.7

  	
   

  	
  Replacement
  Notes

  	
   

  	
  33

  	
   

  
	
  SECTION 2.8

  	
   

  	
  Outstanding
  Notes

  	
   

  	
  33

  	
   

  
	
  SECTION 2.9

  	
   

  	
  Treasury
  Notes

  	
   

  	
  34

  	
   

  
	
  SECTION 2.10

  	
   

  	
  Temporary
  Notes

  	
   

  	
  34

  	
   

  
	
  SECTION 2.11

  	
   

  	
  Cancellation

  	
   

  	
  34

  	
   

  
	
  SECTION 2.12

  	
   

  	
  Defaulted
  Interest

  	
   

  	
  35

  	
   

  
	
  SECTION 2.13

  	
   

  	
  Record Date

  	
   

  	
  35

  	
   

  
	
  SECTION 2.14

  	
   

  	
  Computation
  of Interest

  	
   

  	
  35

  	
   

  
	
  SECTION 2.15

  	
   

  	
  CUSIP Number

  	
   

  	
  35

  	
   

  
	
  SECTION 2.16

  	
   

  	
  Special
  Transfer Provisions

  	
   

  	
  35

  	
   

  
	
  SECTION 2.17

  	
   

  	
  Issuance of
  Additional Notes

  	
   

  	
  37

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REDEMPTION AND PREPAYMENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.1

  	
   

  	
  Notices to
  Trustee

  	
   

  	
  38

  	
   

  
	
  SECTION 3.2

  	
   

  	
  Selection of
  Notes to Be Redeemed

  	
   

  	
  38

  	
   

  
	
  SECTION 3.3

  	
   

  	
  Notice of
  Redemption

  	
   

  	
  39

  	
   

  
	
  SECTION 3.4

  	
   

  	
  Effect of
  Notice of Redemption

  	
   

  	
  40

  	
   

  
	
  SECTION 3.5

  	
   

  	
  Deposit of
  Redemption of Purchase Price

  	
   

  	
  40

  	
   

  
	
  SECTION 3.6

  	
   

  	
  Notes
  Redeemed in Part

  	
   

  	
  40

  	
   

  
	
  SECTION 3.7

  	
   

  	
  Optional
  Redemption

  	
   

  	
  41

  	
   

  
	
  SECTION 3.8

  	
   

  	
  Mandatory
  Redemption

  	
   

  	
  41

  	
   

  

 

i

 

	
  SECTION 3.9

  	
   

  	
  Offer to
  Purchase

  	
   

  	
  41

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.1

  	
   

  	
  Payment of
  Notes

  	
   

  	
  42

  	
   

  
	
  SECTION 4.2

  	
   

  	
  Maintenance
  of Office or Agency

  	
   

  	
  43

  	
   

  
	
  SECTION 4.3

  	
   

  	
  Provision of
  Financial Information

  	
   

  	
  43

  	
   

  
	
  SECTION 4.4

  	
   

  	
  Compliance
  Certificate

  	
   

  	
  44

  	
   

  
	
  SECTION 4.5

  	
   

  	
  Taxes

  	
   

  	
  45

  	
   

  
	
  SECTION 4.6

  	
   

  	
  Stay,
  Extension and Usury Laws

  	
   

  	
  45

  	
   

  
	
  SECTION 4.7

  	
   

  	
  Limitation
  on Restricted Payments

  	
   

  	
  45

  	
   

  
	
  SECTION 4.8

  	
   

  	
  Limitation
  on Dividends and Other Payment Restrictions Affecting Subsidiaries

  	
   

  	
  49

  	
   

  
	
  SECTION 4.9

  	
   

  	
  Limitations
  on Incurrence of Indebtedness and Issuance of Preferred Stock

  	
   

  	
  50

  	
   

  
	
  SECTION 4.10

  	
   

  	
  Limitation
  on Sale of Assets

  	
   

  	
  53

  	
   

  
	
  SECTION 4.11

  	
   

  	
  Limitation
  on Transactions with Affiliates

  	
   

  	
  55

  	
   

  
	
  SECTION 4.12

  	
   

  	
  Limitation
  on Liens

  	
   

  	
  56

  	
   

  
	
  SECTION 4.13

  	
   

  	
  Payments for
  Consent

  	
   

  	
  56

  	
   

  
	
  SECTION 4.14

  	
   

  	
  Offer to
  Purchase upon Change of Control

  	
   

  	
  56

  	
   

  
	
  SECTION 4.15

  	
   

  	
  Corporate
  Existence

  	
   

  	
  58

  	
   

  
	
  SECTION 4.16

  	
   

  	
  Business
  Activities

  	
   

  	
  58

  	
   

  
	
  SECTION 4.17

  	
   

  	
  Limitations
  on Issuances of Guarantees of Indebtedness

  	
   

  	
  58

  	
   

  
	
  SECTION 4.18

  	
   

  	
  Designation
  of Restricted and Unrestricted Subsidiaries

  	
   

  	
  58

  	
   

  
	
  SECTION 4.19

  	
   

  	
  Further
  Instruments and Acts

  	
   

  	
  59

  	
   

  
	
  SECTION 4.20

  	
   

  	
  Limitation
  on Business Activities of Barrington Broadcasting Capital Corporation

  	
   

  	
  59

  	
   

  
	
  SECTION 4.21

  	
   

  	
  Anti-Layering

  	
   

  	
  59

  	
   

  
	
  SECTION 4.22

  	
   

  	
  Sale and
  Leaseback Transactions

  	
   

  	
  59

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUCCESSORS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.1

  	
   

  	
  Consolidation,
  Merger, Conveyance, Transfer or Lease

  	
   

  	
  60

  	
   

  
	
  SECTION 5.2

  	
   

  	
  Successor
  Corporation Substituted

  	
   

  	
  61

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEFAULTS AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.1

  	
   

  	
  Events of
  Default

  	
   

  	
  61

  	
   

  
	
  SECTION 6.2

  	
   

  	
  Acceleration

  	
   

  	
  63

  	
   

  
	
  SECTION 6.3

  	
   

  	
  Other Remedies

  	
   

  	
  65

  	
   

  

 

ii

 

	
  SECTION 6.4

  	
   

  	
  Waiver of
  Past Defaults

  	
   

  	
  65

  	
   

  
	
  SECTION 6.5

  	
   

  	
  Control by
  Majority

  	
   

  	
  65

  	
   

  
	
  SECTION 6.6

  	
   

  	
  Limitation
  on Suits

  	
   

  	
  65

  	
   

  
	
  SECTION 6.7

  	
   

  	
  Rights of
  Holders of Notes to Receive Payment

  	
   

  	
  66

  	
   

  
	
  SECTION 6.8

  	
   

  	
  Collection
  Suit by Trustee

  	
   

  	
  66

  	
   

  
	
  SECTION 6.9

  	
   

  	
  Trustee May
  File Proofs of Claim

  	
   

  	
  66

  	
   

  
	
  SECTION 6.10

  	
   

  	
  Priorities

  	
   

  	
  67

  	
   

  
	
  SECTION 6.11

  	
   

  	
  Undertaking
  for Costs

  	
   

  	
  67

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.1

  	
   

  	
  Duties of Trustee

  	
   

  	
  68

  	
   

  
	
  SECTION 7.2

  	
   

  	
  Rights of
  Trustee

  	
   

  	
  69

  	
   

  
	
  SECTION 7.3

  	
   

  	
  Individual
  Rights of Trustee

  	
   

  	
  70

  	
   

  
	
  SECTION 7.4

  	
   

  	
  Trustee’s
  Disclaimer

  	
   

  	
  71

  	
   

  
	
  SECTION 7.5

  	
   

  	
  Notice of
  Defaults

  	
   

  	
  71

  	
   

  
	
  SECTION 7.6

  	
   

  	
  Reports by
  Trustee to Holders of the Notes

  	
   

  	
  71

  	
   

  
	
  SECTION 7.7

  	
   

  	
  Compensation
  and Indemnity

  	
   

  	
  71

  	
   

  
	
  SECTION 7.8

  	
   

  	
  Replacement
  of Trustee

  	
   

  	
  72

  	
   

  
	
  SECTION 7.9

  	
   

  	
  Successor
  Trustee by Merger, Etc

  	
   

  	
  73

  	
   

  
	
  SECTION 7.10

  	
   

  	
  Eligibility;
  Disqualification

  	
   

  	
  73

  	
   

  
	
  SECTION 7.11

  	
   

  	
  Preferential
  Collection of Claims Against the Issuers

  	
   

  	
  74

  	
   

  
	
  SECTION 7.12

  	
   

  	
  Trustee’s
  Application for Instructions from the Issuers

  	
   

  	
  74

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEFEASANCE; DISCHARGE OF THE INDENTURE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.1

  	
   

  	
  Option to
  Effect Legal Defeasance or Covenant Defeasance

  	
   

  	
  74

  	
   

  
	
  SECTION 8.2

  	
   

  	
  Legal
  Defeasance

  	
   

  	
  74

  	
   

  
	
  SECTION 8.3

  	
   

  	
  Covenant
  Defeasance

  	
   

  	
  75

  	
   

  
	
  SECTION 8.4

  	
   

  	
  Conditions
  to Legal or Covenant Defeasance

  	
   

  	
  76

  	
   

  
	
  SECTION 8.5

  	
   

  	
  Deposited Money and U.S. Government
  Securities to Be Held in Trust; Other Miscellaneous Provisions

  	
   

  	
  77

  	
   

  
	
  SECTION 8.6

  	
   

  	
  Repayment to
  Issuers

  	
   

  	
  77

  	
   

  
	
  SECTION 8.7

  	
   

  	
  Reinstatement

  	
   

  	
  78

  	
   

  
	
  SECTION 8.8

  	
   

  	
  Discharge

  	
   

  	
  78

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AMENDMENT, SUPPLEMENT AND WAIVER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.1

  	
   

  	
  Without
  Consent of Holders of the Notes

  	
   

  	
  79

  	
   

  
	
  SECTION 9.2

  	
   

  	
  With Consent
  of Holders of Notes

  	
   

  	
  80

  	
   

  

 

iii

 

	
  SECTION 9.3

  	
   

  	
  Compliance
  with Trust Indenture Act

  	
   

  	
  81

  	
   

  
	
  SECTION 9.4

  	
   

  	
  Revocation
  and Effect of Consents

  	
   

  	
  81

  	
   

  
	
  SECTION 9.5

  	
   

  	
  Notation on
  or Exchange of Notes

  	
   

  	
  82

  	
   

  
	
  SECTION 9.6

  	
   

  	
  Trustee to
  Sign Amendments, Etc

  	
   

  	
  82

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBORDINATION OF NOTES

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.1

  	
   

  	
  Notes
  Subordinated to Senior Debt

  	
   

  	
  82

  	
   

  
	
  SECTION 10.2

  	
   

  	
  Suspension
  of Payment When Senior Debt Is in Default

  	
   

  	
  83

  	
   

  
	
  SECTION 10.3

  	
   

  	
  Notes Subordinated to Prior Payment of All
  Senior Debt on Dissolution, Liquidation or Reorganization of the Issuer or
  the Co-Issuer

  	
   

  	
  84

  	
   

  
	
  SECTION 10.4

  	
   

  	
  Payments May
  Be Made Prior to Dissolution

  	
   

  	
  86

  	
   

  
	
  SECTION 10.5

  	
   

  	
  Holders To
  Be Subrogated to Rights of Holders of Senior Debt

  	
   

  	
  86

  	
   

  
	
  SECTION 10.6

  	
   

  	
  Obligations
  of the Issuers Unconditional

  	
   

  	
  86

  	
   

  
	
  SECTION 10.7

  	
   

  	
  Notice to
  Trustee

  	
   

  	
  87

  	
   

  
	
  SECTION 10.8

  	
   

  	
  Reliance on
  Judicial Order or Certificate of Liquidating Agent

  	
   

  	
  87

  	
   

  
	
  SECTION 10.9

  	
   

  	
  Trustee’s
  Relation to Senior Debt

  	
   

  	
  87

  	
   

  
	
  SECTION
  10.10

  	
   

  	
  Subordination
  Rights Not Impaired by Acts or Omissions of the Issuers or Holders of Senior
  Debt

  	
   

  	
  88

  	
   

  
	
  SECTION
  10.11

  	
   

  	
  Noteholders
  Authorize Trustee To Effectuate Subordination of Notes

  	
   

  	
  88

  	
   

  
	
  SECTION 10.12

  	
   

  	
  This Article
  X Not To Prevent Events of Default

  	
   

  	
  89

  	
   

  
	
  SECTION
  10.13

  	
   

  	
  Trustee’s
  Compensation Not Prejudiced

  	
   

  	
  89

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NOTE GUARANTEES

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.1

  	
   

  	
  Guarantees

  	
   

  	
  89

  	
   

  
	
  SECTION 11.2

  	
   

  	
  Execution
  and Delivery of Guarantee

  	
   

  	
  90

  	
   

  
	
  SECTION 11.3

  	
   

  	
  Severability

  	
   

  	
  91

  	
   

  
	
  SECTION 11.4

  	
   

  	
  Limitation
  of Guarantors’ Liability

  	
   

  	
  91

  	
   

  
	
  SECTION 11.5

  	
   

  	
  Guarantors
  May Consolidate, Etc., on Certain Terms

  	
   

  	
  91

  	
   

  
	
  SECTION 11.6

  	
   

  	
  Releases
  Following Sale of Assets and Other Events

  	
   

  	
  92

  	
   

  
	
  SECTION 11.7

  	
   

  	
  Release of a
  Guarantor

  	
   

  	
  93

  	
   

  
	
  SECTION 11.8

  	
   

  	
  Benefits
  Acknowledged

  	
   

  	
  93

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 12.1

  	
   

  	
  Trust
  Indenture Act Controls

  	
   

  	
  93

  	
   

  
	
  SECTION 12.2

  	
   

  	
  Notices

  	
   

  	
  93

  	
   

  

 

iv

 

	
  SECTION 12.3

  	
   

  	
  Communication
  by Holders of Notes with Other Holders of Notes

  	
   

  	
  95

  	
   

  
	
  SECTION 12.4

  	
   

  	
  Certificate
  and Opinion as to Conditions Precedent

  	
   

  	
  95

  	
   

  
	
  SECTION 12.5

  	
   

  	
  Statements
  Required in Certificate or Opinion

  	
   

  	
  95

  	
   

  
	
  SECTION 12.6

  	
   

  	
  Rules by
  Trustee and Agents

  	
   

  	
  96

  	
   

  
	
  SECTION 12.7

  	
   

  	
  No Personal
  Liability of Directors, Officers, Employees and Stockholders

  	
   

  	
  96

  	
   

  
	
  SECTION 12.8

  	
   

  	
  Governing
  Law

  	
   

  	
  96

  	
   

  
	
  SECTION 12.9

  	
   

  	
  No Adverse
  Interpretation of Other Agreements

  	
   

  	
  96

  	
   

  
	
  SECTION
  12.10

  	
   

  	
  Successors

  	
   

  	
  97

  	
   

  
	
  SECTION
  12.11

  	
   

  	
  Severability

  	
   

  	
  97

  	
   

  
	
  SECTION
  12.12

  	
   

  	
  Counterpart
  Originals

  	
   

  	
  97

  	
   

  
	
  SECTION
  12.13

  	
   

  	
  Table of
  Contents, Headings, Etc

  	
   

  	
  97

  	
   

  
	
  SECTION
  12.14

  	
   

  	
  Acts of
  Holders

  	
   

  	
  97

  	
   

  

 

EXHIBITS

 

	
  Exhibit A

  	
  FORM OF NOTE

  
	
  Exhibit B

  	
  FORM OF
  NOTATIONAL GUARANTEE

  
	
  Exhibit C

  	
  FORM OF
  CERTIFICATE TO BE DELIVERED IN CONNECTION WITH TRANSFERS

  PURSUANT TO RULE 144A

  
	
  Exhibit D

  	
  FORM OF
  CERTIFICATE TO BE DELIVERED IN CONNECTION WITH TRANSFERS

  PURSUANT TO REGULATION S

  

 

v

 

This Indenture, dated as of August 11, 2006,
is by and among BARRINGTON BROADCASTING GROUP LLC, a Delaware limited liability
company (the “Issuer”), Barrington Broadcasting
Capital Corporation, a Delaware corporation (the “Co-Issuer”),
the initial guarantors listed on the signature pages hereto (the “Guarantors”) and U.S. BANK NATIONAL ASSOCIATION, as trustee
(the “Trustee”).

 

The Issuers, the Guarantors and the Trustee
agree as follows for the benefit of each other and for the equal and ratable
benefit of the holders of (i) the Issuers’ 101⁄2% Senior Subordinated Notes
due 2014 issued on the date hereof (the “Initial Notes”)
and (ii) Additional Notes (together with the Initial Notes, the “Notes”):

 

ARTICLE I

 

DEFINITIONS AND
INCORPORATION BY REFERENCE

 

SECTION 1.1                                                       Definitions.

 

“Acquired Debt” means, with respect to any specified Person:

 

(a)           Indebtedness
of any other Person existing at the time such other Person is merged with or
into or became a Subsidiary of such specified Person, whether or not such
Indebtedness is incurred in connection with, or in contemplation of, such other
Person merging with or into, or becoming a Subsidiary of, such specified
Person; and

 

(b)            Indebtedness
secured by a Lien encumbering any asset acquired by such specified Person.

 

 “Additional Interest” means all additional
interest owing on the Notes pursuant to the Registration Rights Agreement.

 

“Additional Notes”
means Notes (other than the Initial Notes) issued pursuant to Article II
hereof and otherwise in compliance with the provisions of this Indenture.

 

“Affiliate” of any
specified Person means any other Person directly or indirectly controlling or
controlled by or under direct or indirect common control with such specified
Person. For purposes of this definition, “control,” as used with respect to any
Person, means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of such Person, whether
through the ownership of voting securities, by agreement or otherwise. For
purposes of this definition, the terms “controlling,”
“controlled by” and “under common control with” have
correlative meanings.

 

“Agent” means
any Registrar, Paying Agent or co-registrar.

 

“Asset Sale” means:

 

(1)           the sale, lease, conveyance or other
disposition of any assets or rights, other than in the ordinary course of business;
provided that the sale, conveyance or
other disposition of all or substantially all of the assets of the Issuer and
the Restricted 

 

 

Subsidiaries
taken as a whole will be governed by Section 4.14 or Article V and
not by Section 4.10; and

 

(2)           the issuance of Equity Interests in
any Restricted Subsidiary or the sale of Equity Interests in any Restricted
Subsidiary.

 

Notwithstanding the preceding, the following
items will not be deemed to be Asset Sales:

 

(1)           any single transaction or series of related
transactions that involves assets or Equity Interests having a fair market
value of $1.0 million or less;

 

(2)           a transfer of assets between or among
the Issuer and Restricted Subsidiaries;

 

(3)           an issuance of Equity Interests to the
Issuer or to another Restricted Subsidiary;

 

(4)           the sale or lease of equipment,
inventory, accounts receivable or other assets in the ordinary course of
business;

 

(5)           the sale and leaseback of any assets
within 90 days of the acquisition thereof;

 

(6)           foreclosures on assets;

 

(7)           the disposition of equipment no
longer used or useful in the business of such entity;

 

(8)           the sale or other disposition of cash
or Cash Equivalents;

 

(9)           a Restricted Payment or Permitted
Investment that is permitted under Section 4.7;

 

(10)         the licensing of intellectual property;

 

(11)         the grant of Liens not prohibited by
this Indenture; and

 

(12)         any release of intangible claims or
rights in connection with the loss or settlement of a bona fide
lawsuit, dispute or controversy.

 

“Asset Sale Offer”
means an Offer to Purchase required to be made by the Issuers pursuant to Section 4.10
to all Holders.

 

“Attributable Debt” in
respect of a sale and leaseback transaction means, at the time of determination,
the present value of the obligation of the lessee for net rental payments
during the remaining term of the lease included in such sale and leaseback
transaction including any period for which such lease has been extended or may,
at the option of the lessor, be extended. Such 

 

2

 

present value
shall be calculated using a discount rate equal to the rate of interest
implicit in such transaction, determined in accordance with GAAP.

 

“Bankruptcy Law”
means Title 11, U.S. Code or any similar Federal, state or foreign law for the
relief of debtors.

 

“Beneficial Owner” has
the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the
Exchange Act. The terms “Beneficially Owns”
and “Beneficially Owned” have a
corresponding meaning.

 

“Board of Directors” means,
as to any Person, the board of directors of such Person (or if such Person is a
limited liability company, the board of managers of such Person) or similar governing
body or any duly authorized committee thereof.

 

“Board Resolution” means
a copy of a resolution certified by the Secretary or an Assistant Secretary of the
Issuer, the Co-Issuer or any Restricted Subsidiary to have been duly adopted by
the Board of Directors, unless the context specifically requires that such
resolution be adopted by a majority of the Disinterested Directors, in which
case by a majority of such directors, and to be in full force and effect on the
date of such certification and delivered to the Trustee.

 

“Business Day” means
any day other than a Legal Holiday.

 

“Capital Lease Obligation” means,
at the time any determination is to be made, the amount of the liability in
respect of a capital lease that would at that time be required to be capitalized
on a balance sheet in accordance with GAAP.

 

“Capital Stock”
means:

 

(1)           in the case of a corporation,
corporate stock;

 

(2)           in the case of an association or
business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock;

 

(3)           in the case of a partnership or
limited liability company, partnership or membership interests (whether general
or limited); and

 

(4)           any other interest or participation
that confers on a Person the right to receive a share of the profits and losses
of, or distributions of assets of, the issuing Person.

 

“Cash
Equivalents” means:

 

(1)           United States dollars;

 

(2)           securities issued or directly and
fully guaranteed or insured by the United States government or any agency or
instrumentality of the United States government 

 

3

 

(provided that the full faith and credit of the United States
is pledged in support of those securities) having maturities of not more than
one year from the date of acquisition;

 

(3)           certificates of deposit and
eurodollar time deposits with maturities of one year or less from the date of
acquisition, bankers’ acceptances with maturities not exceeding one year and
overnight bank deposits, in each case, with (x) any lender party to the Credit
Agreements or (y) any domestic commercial bank having capital and surplus in
excess of $500.0 million and a Thomson Bank Watch Rating of “B” or better;

 

(4)           repurchase obligations with a term of
not more than 30 days for underlying securities of the types described in
clauses (2) and (3) above entered into with any financial institution meeting
the qualifications specified in clause (3) above;

 

(5)           commercial paper having one of the
two highest ratings obtainable from Moody’s Investors Service, Inc. or Standard
& Poor’s Rating Services and in each case maturing within one year after
the date of acquisition; and

 

(6)           money market funds at least 95% of
the assets of which constitute Cash Equivalents of the kinds described in
clauses (1) through (5) of this definition.

 

“Certificated Notes”
means Notes that are in the form of Exhibit A attached hereto other
than Global Notes.

 

“Change of Control”
means the occurrence of any of the following:

 

(1)           the direct or indirect sale,
transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or
substantially all of the properties or assets of the Issuer and the Restricted
Subsidiaries taken as a whole to any “person” (as that term is used in Section
13(d)(3) of the Exchange Act) other than a Principal or a Related Party of a
Principal;

 

(2)           the
adoption of a plan relating to the liquidation or dissolution of the Issuer;

 

(3)           the
consummation of any transaction (including, without limitation, any merger or
consolidation) the result of which is that any “person” (as defined above),
other than the Principals and their Related Parties, becomes the Beneficial
Owner, directly or indirectly, of more than 50% of the Voting Stock of Issuer,
measured by voting power rather than number of shares; or

 

(4)           the first day on which a majority of
the members of the Board of Directors of the Issuer are not Continuing Directors.

 

“Change of Control Offer”
means an Offer to Purchase required to be made by the Issuer pursuant to Section 4.14
to all Holders.

 

4

 

“Code” means the
United States Internal Revenue Code of 1986, as amended from time to time, and
the regulations promulgated and rulings issued thereunder. Section references
to the Code are to the Code as in effect on the Issue Date and any subsequent
provisions of the Code amendatory thereof, supplemental thereto or substituted
therefor.

 

“Co-Issuer”
means the Person identified as such in the Preamble hereto, until a successor
Person shall have replaced the Co-Issuer as co-obligor on the Notes pursuant to
the applicable provisions of this Indenture, and thereafter means such
successor Person.

 

“Commission”
means the U.S. Securities and Exchange Commission and any successor thereto.

 

“Consolidated Cash Flow” means,
with respect to any specified Person for any period, the Consolidated Net
Income of such Person for such period plus:

 

(1)           an amount equal to any extraordinary
loss plus any net loss realized by such Person or any of the Restricted
Subsidiaries in connection with (a) an Asset Sale or (b) the disposition of any
securities by such Person or any of the Restricted Subsidiaries or the
extinguishment of any Indebtedness of such Person or any of the Restricted
Subsidiaries, to the extent such losses were deducted in computing such
Consolidated Net Income; plus

 

(2)           provision for taxes based on income
or profits of such Person and the Restricted Subsidiaries for such period, to
the extent that such provision for taxes was deducted in computing such Consolidated
Net Income; plus

 

(3)           Consolidated Interest Expense of such
Person and the Restricted Subsidiaries for such period, whether paid or accrued
and whether or not capitalized (including, without limitation, amortization of
debt issuance costs and original issue discount, noncash interest payments, the
interest component of any deferred payment obligations, the interest component
of all payments associated with Capital Lease Obligations, imputed interest
with respect to Attributable Debt, commissions, discounts and other fees and
charges incurred in respect of letter of credit or bankers’ acceptance
financings, and net of the effect of all payments made or received pursuant to
Hedging Obligations), to the extent that any such expense was deducted in
computing such Consolidated Net Income; plus

 

(4)           depreciation, amortization (including
amortization of goodwill and other intangibles and amortization of programming
costs but excluding amortization of prepaid cash expenses that were paid in a
prior period) and other noncash expenses (excluding any such noncash expense to
the extent that it represents an accrual of or reserve for cash expenses in any
future period or amortization of a prepaid cash expense that was paid in a
prior period) of such Person and the Restricted Subsidiaries for such period to
the extent that such depreciation, amortization and other noncash expenses were
deducted in computing such Consolidated Net Income; plus

 

5

 

(5)           any extraordinary or non-recurring
expenses of such Person and the Restricted Subsidiaries for such period to the
extent that such charges were deducted in computing such Consolidated Net Income;
plus

 

(6)           noncash items (excluding any noncash
item to the extent that it represents an accrual of, or a reserve for, cash
expenditures in any future period) reducing such Consolidated Net Income for
such period; plus

 

(7)           any non-capitalized transaction costs
incurred in connection with actual or proposed financings, acquisitions or
transactions; minus

 

(8)           noncash items increasing such
Consolidated Net Income for such period, other than the accrual of revenue in
the ordinary course of business; minus

 

(9)           programming rights payments made
during such period,

 

in each case,
on a consolidated basis and determined in accordance with GAAP.

 

“Consolidated Interest
Expense” means, with respect to any Person for any period, the
sum, without duplication of:

 

(1)           the consolidated interest expense of
such Person and the Restricted Subsidiaries for such period, whether paid or
accrued (including, without limitation, amortization of original issue
discount, non-cash interest payments, the interest component of any deferred
payment obligations, the interest component of all payments associated with
Capital Lease Obligations, imputed interest with respect to Attributable Debt,
commissions, discounts and other fees and charges incurred in respect of letter
of credit or bankers’ acceptance financing, and net of all payments made or
received (if any) pursuant to Hedging Obligations):

 

(2)           the consolidated interest expense of
such Person and the Restricted Subsidiaries that was capitalized during such period;

 

(3)           any interest expense on Indebtedness
of another Person that is guaranteed by such Person or any of the Restricted
Subsidiaries or secured by a Lien on assets of such Person or any of the
Restricted Subsidiaries (whether or not such guarantee or Lien is called upon);
and

 

(4)           the product of:

 

(a)           all
cash dividend payments (and noncash dividend payments in the case of a Person
that is a Restricted Subsidiary) on any series of Preferred Stock of such
Person or any of the Restricted Subsidiaries, times

 

(b)           a
fraction, the numerator of which is one and the denominator of which is one
minus the then current combined federal, state and local statutory tax rate of
such Person, expressed as a decimal,

 

6

 

in each case,
on a consolidated basis and determined in accordance with GAAP.

 

“Consolidated Net Income”
means, with respect to any specified Person for any period, the aggregate of
the Net Income of such Person and the Restricted Subsidiaries for such period,
on a consolidated basis, determined in accordance with GAAP; provided that:

 

(1)           the Net Income (but not loss) of any
Person that is not a Restricted Subsidiary or that is accounted for by the
equity method of accounting will be included only to the extent of the amount
of dividends or distributions paid in cash to the specified Person or a
Restricted Subsidiary of the Person;

 

(2)           the Net Income of any Restricted
Subsidiary will be excluded to the extent that the declaration or payment of
dividends or similar distributions by that Restricted Subsidiary of that Net
Income is not at the date of determination permitted without any prior
governmental approval (that has not been obtained) or, directly or indirectly,
by operation of the terms of its charter or any agreement, instrument,
judgment, decree, order, statute, rule or governmental regulation applicable to
that Restricted Subsidiary or its stockholders;

 

(3)           the Net Income of any Person acquired
during the specified period for any period prior to the date of such acquisition
will be excluded; and

 

(4)           the cumulative effect of a change in
accounting principles will be excluded.

 

“Continuing Directors” means,
as of any date of determination, any member of the Board of Directors of the
Issuer or Parent, as applicable, who:

 

(1)           was a member of such Board of
Directors on the date of this Indenture;

 

(2)           was nominated for election or elected
to such Board of Directors with the approval of a majority of the Continuing
Directors who were members of such Board at the time of such nomination or election;
or

 

(3)           was nominated by Principals
beneficially owning at least 20% of the Voting Stock of the Issuer.

 

“Control Investment
Affiliate” means with respect to any Person, any other Person
which (a) directly or indirectly, is in control of, is controlled by, oris under common control with, such Person and (b) is organized
by such Person primarily for the purpose of making equity or debt investments
in one or more companies or a Person controlled by such Person. For purposes of
this definition, “control” of a Person means the power, directly or indirectly,
to direct or cause the direction of the management and policies ofsuch Person whether by contract or otherwise.

 

“Corporate Trust Office of the
Trustee” shall be at
the address of the Trustee specified in Section
12.2 hereof or such other address as to which the Trustee shall specify for
receipt of notices under this Indenture.

 

7

 

“Credit Agreement” means
that certain Credit Agreement, dated as of August 11, 2006, by and among
Parent, the Issuer, the guarantors party thereto, Bank of America, N.A., as
administrative agent and the other lenders party thereto, providing for up to
$172.0 million aggregate principal amount of credit borrowings, including any
related notes, guarantees, collateral documents, instruments and agreements
executed in connection therewith, and in each case as amended, modified,
renewed, refunded, replaced or refinanced from time to time (including any increase
in principal amount whether or not with the same lenders or agents).

 

“Credit Facilities” means,
one or more debt facilities (including, without limitation, the Credit
Agreement) or commercial paper facilities, in each case with banks or other
institutional lenders providing for revolving credit loans, term loans,
receivables financing (including through the sale of receivables to such
lenders or to special purpose entities formed to borrow from such lenders
against such receivables) or letters of credit, in each case, as amended,
restated, modified, renewed, refunded, replaced or refinanced in whole or in
part from time to time.

 

“Default” means
any event that is, or with the passage of time or the giving of notice or both
would be, an Event of Default.

 

“Depositary” means,
with respect to the Notes issuable or issued in whole or in part in global
form, the Person specified in Section 2.3 hereof as the Depositary with
respect to the Notes, until a successor shall have been appointed and become
such pursuant to Section 2.6 hereof, and, thereafter, “Depositary” shall
mean or include such successor.

 

“Designated
Senior Debt” means:

 

(1)           any Indebtedness outstanding under
the Credit Facilities; and

 

(2)           any other Senior Debt permitted under
this Indenture the principal amount of which is $25.0 million or more and that
has been designated by the Issuer as “Designated Senior Debt.”

 

“Disinterested Director” means, with respect to any proposed
transaction between (i) the Issuer or a Restricted Subsidiary, as applicable,
and (ii) an Affiliate thereof (other than the Issuer or a Restricted
Subsidiary), a member of the Board of Directors of the Issuer or such
Restricted Subsidiary, as applicable, who would not be a party to, or have a
financial interest in, such transaction and is not an officer, director or
employee of, and does not have a financial interest in, such Affiliate. For
purposes of this definition, no person would be deemed not to be a
Disinterested Director solely because such person holds Capital Stock in the Issuer
or is an employee of the Issuer.

 

“Disqualified Stock” means
any Capital Stock that, by its terms (or by the terms of any security into
which it is convertible, or for which it is exchangeable, in each case at the
option of the holder of the Capital Stock), or upon the happening of any event,
matures or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, or redeemable at the option of the holder of the Capital Stock, in
whole or in part, on or prior to the date on which the Notes mature. Notwithstanding
the preceding sentence, any Capital Stock that would constitute Disqualified
Stock solely because the holders of the Capital Stock have the right to require
the 

 

8

 

Issuer to repurchase
such Capital Stock upon the occurrence ofa change of
control or an asset sale will not constitute Disqualified Stock if the terms of
such Capital Stock provide that the Issuer may not repurchase or redeem any
such Capital Stock pursuant to such provisions unless such repurchase or
redemption complies with Section 4.7.

 

“Domestic Subsidiary” means
any Subsidiary that was formed under the laws of the United States or any state
of the United States or the District of Columbia.

 

“DTC” means The
Depository Trust Company and any successor.

 

“Equity Interests” means
Capital Stock and all warrants, options or other rights to acquire Capital
Stock (but excluding any debt security that is convertible into, or
exchangeable for, Capital Stock).

 

“Equity Offering” means
an offering of Capital Stock (other than Disqualified Stock) of Parent or the Issuer,
the net proceeds of which are contributed to the Issuer, in each case to any
Person that is not an Affiliate of the Issuer, which offering results in at
least $35.0 million of net aggregate proceeds to the Issuer.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the
rules and regulations of the Commission promulgated thereunder.

 

“Exchange
Notes” means the series of Notes to be issued under this Indenture
in exchange for the Initial Notes pursuant to a Registration Rights Agreement.

 

“Exchange
Offer” has the meaning set forth in the Registration Rights Agreement.

 

“Existing Indebtedness” means
Indebtedness of the Issuer and the Restricted Subsidiaries (other than
Indebtedness under the Credit Facilities) in existence on the date of this
Indenture, until such amounts are repaid.

 

“Expiration Date”
has the meaning set forth in the definition of “Offer to Purchase.”

 

“GAAP” means
generally accepted accounting principles set forth in the opinions and pronouncements
of the Accounting Principles Board of the American Institute of Certified
Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as have been
approved by a significant segment of the accounting profession, which are in
effect on the date of this Indenture.

 

“Global Note Legend”
means the legend identified as such in Exhibit A hereto.

 

“Global Notes”
means the Notes that are in the form of Exhibit A hereto issued in
global form and registered in the name of the Depositary or its nominee.

 

“Guarantee”
means the guarantee by each Guarantor of the Issuers’ Obligations under the
Notes and this Indenture.

 

9

 

“guarantee” means
a guarantee other than by endorsement of negotiable instruments for collection
in the ordinary course of business, direct or indirect, in any manner
including, without limitation, by way of a pledge of assets or through letters
of credit or reimbursement agreements in respect thereof, of all or any part of
any Indebtedness.

 

“Guarantors” means
each of:

 

(1)           the Issuer’s Domestic Subsidiaries on
the Issue Date (other than the Co-Issuer and Sagamore) and their respective
successors and assigns; and

 

(2)           any other subsidiary of the Issuer that
executes a Guarantee in accordance with the provisions of this Indenture and
its successors and assigns.

 

“Hedging Obligations”
means, with respect to any specified Person, the obligations of such Person
under:

 

(1)           interest rate swap agreements,
interest rate cap agreements and interest rate collar agreements; and

 

(2)           other agreements or arrangements
designed to protect such Person against fluctuations in interest rates,
currency rates or commodity prices.

 

“Holder” means a
Person in whose name a Note is registered in the security register.

 

“Indebtedness” means,
with respect to any specified Person, any indebtedness of such Person, whether
or not contingent:

 

(1)           in respect of borrowed money;

 

(2)           evidenced by bonds, notes, debentures
or similar instruments or letters of credit (or reimbursement agreements in
respect thereof);

 

(3)           in respect of banker’s acceptances;

 

(4)           representing Capital Lease
Obligations;

 

(5)           representing the balance deferred and
unpaid of the purchase price of any property, except any such balance that
constitutes an accrued expense or trade payable; or

 

(6)           representing any Hedging Obligations,

 

if and to the
extent any of the preceding items (other than letters of credit and Hedging
Obligations) would appear as a liability upon a balance sheet of the specified
Person prepared in accordance with GAAP. In addition, the term “Indebtedness”
includes all Indebtedness of others secured by a Lien on any asset of the
specified Person (whether or not such Indebtedness is assumed by the specified
Person) and, to the extent not otherwise included, the guarantee by the
specified Person of any indebtedness of any other Person; provided
that Indebtedness shall not 

 

10

 

include the
pledge of the Capital Stock of any Unrestricted Subsidiary to secure
Non-Recourse Debt of that Unrestricted Subsidiary.

 

The amount of any Indebtedness outstanding as
of any date will be:

 

(1)           the accreted value of the
Indebtedness, in the case of any Indebtedness issued with original issue discount;
and

 

(2)           the principal amount of the
Indebtedness, together with any interest on the Indebtedness that is more than 30
days past due, in the case of any other Indebtedness.

 

“Indenture”
means this Indenture, as amended or supplemented from time to time.

 

“Initial Notes” has
the meaning set forth in the preamble hereto.

 

“Investments” means,
with respect to any Person, all direct or indirect investments by such Person
in other Persons (including Affiliates) in the forms of loans (including guarantees
or other obligations), advances or capital contributions (excluding commission,
travel and similar advances to officers and employees made in the ordinary
course of business), purchases or other acquisitions for consideration of
Indebtedness, Equity Interests or other securities, together with all items
that are or would be classified as investments on a balance sheet prepared in
accordance with GAAP. If the Issuer or any Restricted Subsidiary sells or
otherwise disposes of any Equity Interests of any direct or indirect Restricted
Subsidiary such that, after giving effect to any such sale or disposition, such
Person is no longer a Restricted Subsidiary, the Issuer will be deemed to have
made an Investment on the date of any such sale or disposition equal to the
fair market value of the Equity Interests of such Restricted Subsidiary not
sold or disposed of in an amount determined as provided in the final paragraph
of Section 4.7. Except as otherwise provided in this Indenture, the
amount of an Investment will be determined at the time the Investment is made
and without giving effect to subsequent changes in value.

 

“Issue Date” means
August 11, 2006.

 

“Issuer” means
the Person identified as such in the Preamble hereto, until a successor Person
shall have replaced the Issuer as obligor on the Notes pursuant to the
applicable provisions of this Indenture, and thereafter means such successor
Person.

 

“Issuers” means
the Issuer and the Co-Issuer, collectively. The terms “each Issuer,” “any
Issuer,” “such Issuer” and other similar terms shall mean the Issuers
individually.

 

“Legal Holiday”
means a Saturday, a Sunday or a day on which banking institutions in the City
of New York, the city in which the principal Corporate Trust Office of the
Trustee is located or at a place of payment are authorized by law, regulation
or executive order to remain closed. If a payment date is a Legal Holiday,
payment shall be made at that place on the next succeeding day that is not a
Legal Holiday, and no interest shall accrue for the intervening period.

 

11

 

“Leverage Ratio”
means the ratio of (i) the aggregate outstanding amount of Indebtedness of the
Issuer and the Restricted Subsidiaries as of the last day of the most recently
ended fiscal quarter for which financial statements are internally available as
of the date of calculation on a combined consolidated basis in accordance with
GAAP (subject to the terms described in the next paragraph) plus the aggregate
liquidation preference of all outstanding Disqualified Stock of the Issuer and
Preferred Stock of the Restricted Subsidiaries (except Preferred Stock issued
to the Issuer or a Restricted Subsidiary) as of the last day of such fiscal
quarter to (ii) the aggregate Consolidated Cash Flow of the Issuer for the last
four full fiscal quarters for which financial statements are internally
available ending on or prior to the date of determination (the “Reference Period”).

 

For purposes of this definition, (i) the
amount of Indebtedness which is issued at a discount shall be deemed to be the
accreted value of such Indebtedness as of the last day of the Reference Period,
whether or not such amount is the amount then reflected on a balance sheet
prepared in accordance with GAAP, and (ii) the aggregate outstanding principal
amount of Indebtedness of the Issuer and the Restricted Subsidiaries and the
aggregate liquidation preference of all outstanding Disqualified Stock of the
Issuer and Preferred Stock of the Restricted Subsidiaries for which such
calculation is made shall be determined on a pro forma
basis as if the Indebtedness and Disqualified Stock of the Issuer and Preferred
Stock of the Restricted Subsidiaries giving rise to the need to perform such
calculation had been incurred and issued and the proceeds therefrom had been
applied, and all other transactions in respect of which such Indebtedness is
being incurred or such Disqualified Stock or Preferred Stock is being issued
had occurred, on the first day of such Reference Period. In addition to the
foregoing, for purposes of this definition, the Leverage Ratio shall be
calculated on a pro forma basis after giving
effect to (i) the incurrence of the Indebtedness of the Issuer and the
Restricted Subsidiaries and the issuance of Disqualified Stock of the Issuer
and Preferred Stock of the Restricted Subsidiaries (and the application of the
proceeds therefrom) giving rise to the need to make such calculation and any
incurrence or issuance (and the application of the proceeds therefrom) or repayment
or repurchase of other Indebtedness, or issuance of Disqualified Stock of the
Issuer or Preferred Stock of the Restricted Subsidiaries, at any time
subsequent to the beginning of the Reference Period and on or prior to the date
of determination as if such incurrence or issuance (and the application of the
proceeds thereof), or the repayment or repurchase, as the case may be, occurred
on the first day of the Reference Period (except that, in making such computation,
the amount of Indebtedness under any revolving credit facility shall be
computed based upon the average balance of such Indebtedness at the end of each
month during such period) and (ii) any acquisition at any time on or subsequent
to the first day of the Reference Period and on or prior to the date of
determination as if such acquisition (including the incurrence, assumption or
liability for any such Indebtedness and the issuance of such Disqualified Stock
or Preferred Stock and also including any Consolidated Cash Flow associated
with such acquisition) occurred on the first day of the Reference Period giving
pro forma effect to any non-recurring
expenses, non-recurring costs and operating expense reductions within the first
year after such acquisition the Issuer reasonably anticipates in good faith if the
Issuer delivers to the Trustee an officer’s certificate executed by the chief
financial or accounting officer of the Issuer certifying to and describing and
quantifying with reasonable specificity such non-recurring expenses,
non-recurring costs and operating expense reductions. Furthermore, in
calculating Consolidated Interest Expense for purposes of the calculation of
Consolidated Cash 

 

12

 

Flow, (a)
interest on Indebtedness determined on a fluctuating basis as of the date of
determination (including Indebtedness actually incurred on the date of the
transaction giving rise to the need to calculate the Leverage Ratio) and which
will continue to be so determined thereafter shall be deemed to have accrued at
a fixed rate per annum equal to the rate of
interest on such indebtedness as in effect on the date of determination and (b)
notwithstanding (a) above, interest determined on a fluctuating basis, to the
extent such interest is covered by Hedging Obligations, shall be deemed to
accrue at the rate per annum
resulting after giving effect to the operation of such Hedging Obligations.

 

“Lien” means,
with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such asset, whether or not
filed, recorded or otherwise perfected under applicable law, including any
conditional sale or other title retention agreement, any lease in the nature
thereof, any option or other agreement to sell or give a security interest in
and any filing of or agreement to give any financing statement under the
Uniform Commercial Code (or equivalent statutes) of any jurisdiction.

 

“Net Income” means
with respect to any specified Person, the net income (loss) of such Person,
determined in accordance with GAAP and before any reduction in respect of
Preferred Stock dividends, excluding, however:

 

(1)           any gain (but not loss), together
with any related provision for taxes on such gain (but not loss), realized in
connection with:  (a) any Asset Sale; or
(b) the disposition of any securities by such Person or any of the Restricted
Subsidiaries or the extinguishment of any Indebtedness of such Person or any of
the Restricted Subsidiaries; and

 

(2)           any extraordinary gain (but not
loss), together with any related provision for taxes on such extraordinary gain
(but not loss).

 

“Net Proceeds”
means the aggregate cash proceeds received by the Issuer or any of the
Restricted Subsidiaries in respect of any Asset Sale (including, without
limitation, any cash received upon the sale or other disposition of any noncash
consideration received in any Asset Sale), net of the direct costs relating to
such Asset Sale, including, without limitation, legal, accounting and
investment banking fees, and sales commissions, and any relocation expenses incurred
as a result of the Asset Sale, taxes paid or payable as a result of the Asset
Sale, in each case, after taking into account any available tax credits or
deductions and any tax sharing arrangements and amounts required to be applied
to the repayment of Indebtedness, other than Senior Debt, secured by a Lien on
the asset or assets that were the subject of such Asset Sale and any reserve
for adjustment in respect of the sale price of such asset or assets established
in accordance with GAAP.

 

“Non-Recourse Debt”
means Indebtedness:

 

(1)           as to which neither the Issuer nor
any of the Restricted Subsidiaries (a) provides credit support of any kind
(including any undertaking, agreement or instrument that would constitute
Indebtedness), (b) is directly or indirectly liable as a guarantor or
otherwise, or (c) constitutes the lender;

 

13

 

(2)           no default with respect to which
(including any rights that the holders of the Indebtedness may have to take
enforcement action against an Unrestricted Subsidiary) would permit upon
notice, lapse of time or both any holder of any other Indebtedness (other than
the Notes) of the Issuer or any of the Restricted Subsidiaries to declare a
default on such other Indebtedness or cause the payment of the Indebtedness to
be accelerated or payable prior to its stated maturity; and

 

(3)           as to which the lenders have been
notified in writing that they will not have any recourse to the stock or assets
of the Issuer or any of the Restricted Subsidiaries (other than the Capital
Stock of an Unrestricted Subsidiary).

 

“Note Custodian”
means the Trustee when serving as custodian for the Depositary with respect to
the Global Notes, or any successor entity thereto.

 

“Notes” means
the 101⁄2% Senior Subordinated Notes due 2014 of the Issuers issued on the date
hereof and any Additional Notes, including any Exchange Notes. The Notes and
the Additional Notes (including any Exchange Notes), if any, shall be treated
as a single class for all purposes under this Indenture.

 

“Obligations”
means any principal, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under the documentation
governing any Indebtedness and in all cases whether direct or indirect,
absolute or contingent, now outstanding or hereafter created assumed or
incurred and including, without limitation, interest accruing subsequent to the
filing of a petition in bankruptcy or the commencement of any insolvency,
reorganization or similar proceedings at the rate provided in the relevant
documentation, whether or not an allowed claim, and any obligation to redeem or
defease any of the foregoing.

 

“Offer” has the
meaning set forth in the definition of “Offer to Purchase.”

 

“Offer to Purchase”
means a written offer (the “Offer”) sent by
the Issuers by first class mail, postage prepaid, to each Holder at his address
appearing in the security register on the date of the Offer, offering to
purchase up to the aggregate principal amount of Notes set forth in such Offer
at the purchase price set forth in such Offer (as determined pursuant to this
Indenture). Unless otherwise required by applicable law, the Offer shall
specify an expiration date (the “Expiration Date”)
of the Offer to Purchase which shall be, subject to any contrary requirements
of applicable law, not less than 30 days or more than 60 days after the date of
mailing of such Offer and a settlement date (the “Purchase
Date”) for purchase of Notes within five business days after the
Expiration Date. The Issuers shall notify the Trustee at least 15 days (or such
shorter period as is acceptable to the Trustee) prior to the mailing of the
Offer of the Issuers’ obligation to make an Offer to Purchase, and the Offer
shall be mailed by the Issuers or, at the Issuers’ request, by the Trustee in
the name and at the expense of the Issuers. The Offer shall contain all
instructions and materials necessary to enable such Holders to tender Notes pursuant
to the Offer to Purchase. The Offer shall also state:

 

(1)           the Section of this Indenture
pursuant to which the Offer to Purchase is being made;

 

14

 

(2)           the Expiration Date and the Purchase
Date;

 

(3)           the aggregate principal amount of the
outstanding Notes offered to be purchased pursuant to the Offer to Purchase
(including, if less than 100%, the manner by which such amount has been
determined pursuant to Indenture covenants requiring the Offer to Purchase) (the
“Purchase Amount”);

 

(4)           the purchase price to be paid by the Issuers
for each $1,000 principal amount of Notes accepted for payment (as specified
pursuant to this Indenture) (the “Purchase Price”);

 

(5)           that the Holder may tender all or any
portion of the Notes registered in the name of such Holder and that any portion
of a Note tendered must be tendered in an integral multiple of $1,000 principal
amount;

 

(6)           the place or places where Notes are
to be surrendered for tender pursuant to the Offer to Purchase, if applicable;

 

(7)           that, unless the Issuers default in
making such purchase, any Note accepted for purchase pursuant to the Offer to
Purchase will cease to accrue interest on and after the Purchase Date, but that
any Note not tendered or tendered but not purchased by the Issuers pursuant to
the Offer to Purchase will continue to accrue interest at the same rate;

 

(8)           that, on the Purchase Date, the
Purchase Price will become due and payable upon each Note accepted for payment
pursuant to the Offer to Purchase;

 

(9)           that each Holder electing to tender a
Note pursuant to the Offer to Purchase will be required to surrender such Note
or cause such Note to be surrendered at the place or places set forth in the
Offer prior to the close of business on the Expiration Date (such Note being,
if the Issuers or the Trustee so requires, duly endorsed by, or accompanied by
a written instrument of transfer in form satisfactory to the Issuers and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in
writing);

 

(10)         that Holders will be entitled to
withdraw all or any portion of Notes tendered if the Issuers (or their Paying Agent)
receive, not later than the close of business on the Expiration Date, a
telegram, telex, facsimile transmission or letter setting forth the name of the
Holder, the aggregate principal amount of the Notes the Holder tendered, the
certificate number of the Note the Holder tendered and a statement that such
Holder is withdrawing all or a portion of his tender;

 

(11)         that (a) if Notes having an aggregate
principal amount less than or equal to the Purchase Amount are duly tendered
and not withdrawn pursuant to the Offer to Purchase, the Issuers shall purchase
all such Notes and (b) if Notes having an aggregate principal amount in excess
of the Purchase Amount are tendered and not withdrawn pursuant to the Offer to
Purchase, the Issuers shall purchase Notes having an aggregate principal amount
equal to the Purchase Amount on a pro rata basis
(with such 

 

15

 

adjustments as may be deemed appropriate so that only Notes in
denominations of $1,000 principal amount or integral multiples thereof shall be
purchased); and

 

(12)         if applicable, that, in the case of any
Holder whose Note is purchased only in part, the Issuers shall execute, and the
Trustee shall authenticate and deliver to the Holder of such Note without
service charge, a new Note or Notes, of any authorized denomination as
requested by such Holder, in the aggregate principal amount equal to and in
exchange for the unpurchased portion of the aggregate principal amount of the
Notes so tendered.

 

“Offering Memorandum”
means the final offering memorandum related to the issuance of the Notes on the
Issue Date, dated August 3, 2006.

 

“Officer” means
the Chairman of the Board, the Chief Executive Officer, the President, any
Executive Vice President, Senior Vice President or Vice President, the
Treasurer or the Secretary of the Issuer or the Co-Issuer.

 

“Officer’s
Certificate” means a certificate signed on behalf of the Issuer or
the Co-Issuer, by one Officer of the Issuer or the Co-Issuer, whom is the
principal executive officer, the principal financial officer, the Treasurer or
the principal accounting officer of the Issuer or the Co-Issuer, that meets the
requirements set forth in this Indenture.

 

“Opinion of Counsel”
means an opinion from legal counsel who is reasonably acceptable to the Trustee.
The counsel may be an employee of or counsel to the Issuers or any Subsidiary
of the Issuer.

 

“Parent” means
Barrington Broadcasting LLC, the direct parent of the Issuer, and its
successors and assigns.

 

“Participant”
means, with respect to DTC, a Person who has an account with DTC.

 

“Paying Agent”
means any Person authorized by an Issuer to pay the principal of, premium, if
any, or interest on any Notes on behalf of such Issuer.

 

“Permitted Asset Swap”
means, with respect to any Person, the substantially concurrent exchange of
assets of such Person (including Equity Interests of a Restricted Subsidiary)
for assets of another Person, which assets are useful to the business of such
aforementioned Person.

 

“Permitted Business”
means any business engaged in by the Issuer or the Restricted Subsidiaries as
of the Closing Date or any business reasonably related, ancillary or complementary
thereto.

 

“Permitted Investments”
means:

 

(1)           any Investment in the Issuer or in a
Restricted Subsidiary;

 

(2)           any Investment in Cash Equivalents;

 

16

 

(3)           any Investment by the Issuer or any
Restricted Subsidiary in a Person if as a result of such Investment:

 

(a)           such
Person becomes a Restricted Subsidiary; or

 

(b)           such
Person is merged, consolidated or amalgamated with or into, or transfers or
conveys substantially all of its assets to, or is liquidated into, the Issuer or
a Subsidiary;

 

(4)           any Investment made as a result of
the receipt of non-cash consideration from an Asset Sale that was made pursuant
to and in compliance with Section 4.10;

 

(5)           any acquisition of assets solely in
exchange for the issuance of Equity Interests (other than Disqualified Stock)
of the Issuer;

 

(6)           any Investments received in
compromise of obligations of such persons incurred in the ordinary course of
trade creditors or customers that were incurred in the ordinary course of
business, including pursuant to any plan of reorganization or similar
arrangement upon the bankruptcy or insolvency of any trade creditor or customer;

 

(7)           Hedging Obligations;

 

(8)           Investments represented by guarantees
that are otherwise permitted under this Indenture;

 

(9)           Investments resulting from the
creation of Liens on the assets of the Issuer or any of the Restrictive
Subsidiaries that are otherwise permitted under this Indenture;

 

(10)         Investments in Sagamore in an aggregate
amount not to exceed $1.0 million; or

 

(11)         other Investments in any Person having
an aggregate fair market value (measured on the date each such Investment was
made and without giving effect to subsequent changes in value), when taken
together with all other Investments made pursuant to this clause (11) that are
at the time outstanding, not to exceed $7.5 million.

 

“Permitted Junior
Securities” means:

 

(l)            Equity Interests in the Issuer or
any Guarantor; or

 

(2)           debt securities that are subordinated
to all Senior Debt and any debt securities issued in exchange for Senior Debt
to substantially the same extent as, or to a greater extent than, the Notes and
the Guarantees are subordinated to Senior Debt under this Indenture.

 

17

 

“Permitted Liens”
means:

 

(1)           Liens securing Senior Debt that was
permitted by the terms of this Indenture to be incurred;

 

(2)           Liens in favor of the Issuer or the
Restricted Subsidiaries;

 

(3)           Liens on property of a Person
existing at the time such Person is merged with or into or consolidated with the
Issuer or any Restricted Subsidiary; provided that
such Liens were not incurred in contemplation of such merger or consolidation
and do not extend to any assets other than those of the Person merged into or
consolidated with the Issuer or the Restricted Subsidiary;

 

(4)           Liens on property existing at the
time of acquisition of the property by the Issuer or any Restricted Subsidiary;
provided that such Liens were not
incurred in contemplation of such acquisition;

 

(5)           Liens to secure the performance of
statutory obligations, surety or appeal bonds, performance bonds or other
obligations of a like nature incurred in the ordinary course of business;

 

(6)           Liens to secure Indebtedness
(including Capital Lease Obligations) initially permitted by clause (11) of the
second paragraph of Section 4.9 covering only the assets acquired
with such Indebtedness;

 

(7)           Liens existing on the date of this
Indenture;

 

(8)           Liens for taxes, assessments or
governmental charges or claims that are not yet delinquent or that are being
contested in good faith by appropriate proceedings promptly instituted and
diligently concluded; provided that
any reserve or other appropriate provision as is required in conformity with
GAAP has been made therefor;

 

(9)           Liens incurred in the ordinary course
of business of the Issuer or any Restricted Subsidiary with respect to
obligations that do not exceed $5.0 million at any one time outstanding;

 

(10)         Liens on assets of Unrestricted
Subsidiaries that secure Non-Recourse Debt of Unrestricted Subsidiaries;

 

(11)         Liens securing Permitted Refinancing
Indebtedness where the Liens securing indebtedness being refinanced were permitted
under this Indenture;

 

(12)         easements, rights-of-way, zoning and
similar restrictions and other similar encumbrances or title defects incurred
or imposed as applicable, in the ordinary course of business and consistent
with industry practices;

 

(13)         any interest or title of a lessor under
any Capital Lease Obligation;

 

18

 

(14)         Liens securing reimbursement
obligations with respect to commercial letters of credit which encumber
documents and other property relating to letters of credit and products and
proceeds thereof;

 

(15)         Liens encumbering deposits made to
secure obligations arising from statutory, regulatory, contractual or warranty,
including rights of offset and set-off;

 

(16)         Liens securing Hedging Obligations
which Hedging Obligations relate to indebtedness that is otherwise permitted
under this Indenture;

 

(17)         leases or subleases granted to others;

 

(18)         Liens under licensing agreements;

 

(19)         Liens arising from filing Uniform
Commercial Code financing statements regarding leases;

 

(20)         judgment Liens not giving rise to an
Event of Default;

 

(21)         Liens encumbering property of the
Issuer or a Restricted Subsidiary incurred in the ordinary course of business
in connection with workers’ compensation, unemployment insurance, or other
forms of governmental insurance or benefits, or to secure performance of bids,
tenders, statutory obligations, leases, and contracts (other than for Indebtedness)
entered into in the ordinary course of business of the Issuer or a Restricted
Subsidiary;

 

(22)         Liens encumbering property of the
Issuer or a Restricted Subsidiary consisting of carriers, warehousemen,
mechanics, materialmen, repairmen and landlords and other Liens arising by
operation of law and incurred in the ordinary course of business for sums which
are not overdue or which are being contested in good faith by appropriate
proceedings and (if so contested) for which appropriate reserves with respect
thereto have been established and maintained on the books of the Issuer or a Restricted
Subsidiary in accordance with GAAP; and

 

(23)         Liens to secure the guarantee permitted
by clause (2) of Section 4.9.

 

“Permitted Refinancing
Indebtedness” means any Indebtedness of the Issuer or any of the Restricted
Subsidiaries issued in exchange for, or the net proceeds of which are used to
extend, refinance, renew, replace, defease or refund, other Indebtedness of the
Issuer or any of the Restricted Subsidiaries (other than intercompany Indebtedness);
provided that:

 

(1)           the principal amount (or accreted
value, if applicable) of such Permitted Refinancing Indebtedness does not
exceed the principal amount (or accreted value, if applicable) of the
Indebtedness extended, refinanced, renewed, replaced, defeased or refunded
(plus all accrued interest on the Indebtedness and the amount of all expenses
and premiums incurred in connection therewith); and

 

19

 

(2)           such Permitted Refinancing
Indebtedness has a final maturity date later than the final maturity date of,
and has a Weighted Average Life to Maturity equal to or greater than the
Weighted Average Life to Maturity of, the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded; and

 

(3)           if the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded is subordinated in right of
payment to the Notes, such Permitted Refinancing Indebtedness has a final maturity
date later than the final maturity date of, and is subordinated in right of
payment to, the Notes on terms at least as favorable to the Holders of Notes as
those contained in the documentation governing the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded.

 

“Person” means
any individual, corporation, partnership, joint venture, association, joint-stock
company, trust, unincorporated organization, limited liability company or
government or other entity.

 

“Preferred Stock”
of any Person means any Capital Stock of such Person that has preferential
rights to any other Capital Stock of such Person with respect to dividends or
redemptions or upon liquidation.

 

“Principals” means
Pilot Group LP and its Control Investment Affiliates.

 

“Purchase Amount”
has the meaning set forth in the definition of “Offer to Purchase.”

 

“Purchase Date”
has the meaning set forth in the definition of “Offer to Purchase.”

 

“Purchase Price”
has the meaning set forth in the definition of “Offer to Purchase.”

 

“Redemption Price,”
when used with respect to any Note to be redeemed, means the price at which it
is to be redeemed pursuant to this Indenture.

 

“Registration
Rights Agreement” means the Registration Rights Agreement dated as
of the Issue Date among the Issuers, the Guarantors and Banc of America
Securities LLC and Wachovia Capital Markets, LLC, as the initial purchasers
relating to the Initial Notes or, with respect to Additional Notes, any
registration rights agreement entered into in connection with such issuance thereof.

 

“Related Party”
means:

 

(1)           any controlling stockholder, 80% (or
more) owned Subsidiary, or immediate family member (in the case of an
individual) of any Principal; or

 

(2)           any trust, corporation, partnership
or other entity, the beneficiaries, stockholders, partners, owners or Persons
beneficially holding an 80% or more controlling interest of which consist of
any one or more Principals and/or such other Persons referred to in the immediately
preceding clause (1).

 

20

 

“Representative”
means any agent or representative in respect of any Designated Senior Debt; provided, however, that
if, and for so long as, any Designated Senior Debt lacks such representative,
then the Representative for such Designated Senior Debt shall at all times
constitute the holders of a majority in outstanding principal amount of such
Designated Senior Debt.

 

“Resale Restriction Termination Date” means for any Transfer Restricted Note (or beneficial
interest therein), other than a Regulation S Temporary Global Note, which shall
not have a Resale Restriction Termination Date and shall remain subject to the
transfer restrictions specified therefor in this Indenture until such Global
Note is cancelled by the Trustee, that is (a) not a Regulation S Global Note
(or Certificated Note issued in respect thereof pursuant to Section 2.6(b)),
two years (or such other period specified in Rule 144(k)) from the Issue Date
or, if any Additional Notes that are Transfer Restricted Notes have been issued
before the Resale Restriction Termination Date for any Transfer Restricted
Notes, from the latest such original issue date of such Additional Notes, and
(b) a Regulation S Global Note (or Certificated Note issued in respect thereof
pursuant to Section 2.6(b)) (other than a Regulation S Temporary Global
Note), the date on or after the 40th consecutive day beginning on and including
the later of (i) the day on which any Notes represented thereby are offered to
persons other than distributors (as defined in Regulation S) pursuant to
Regulation S and (ii) the issue date for such Notes.

 

“Responsible Officer” means, when used with respect to the Trustee, any
officer assigned to the Corporate Trust Office of the Trustee, including any
vice president, assistant vice president, assistant treasurer, or any other
officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and having direct responsibility
for the administration of this Indenture, and also, with respect to a
particular matter, any other officer to whom such matter is referred because of
such officer’s knowledge of and familiarity with the particular subject.

 

“Restricted Certificated Notes” means
one or more Certificated Notes bearing the Restricted Notes Legend.

 

“Restricted Investment” means an Investment other than a Permitted
Investment.

 

“Restricted Notes Legend” means
the legend identified as such in Exhibit A hereto.

 

“Restricted Payment” means as defined in Section 4.7:

 

“Restricted Subsidiary” means all current and future Domestic
Subsidiaries of the Issuer, other than Unrestricted Subsidiaries.

 

“Sagamore” means
SagamoreHill of Carolina Licenses, LLC and SagamoreHill of Carolina, LLC.

 

“SecuritiesAct”
means the Securities Act of 1933, as amended, and the rules and regulations of
the Commission promulgated thereunder.

 

21

 

“Senior Debt” means:

 

(1)                                  all
Indebtedness of the Issuer, the Co-Issuer or any Guarantor outstanding under
Credit Facilities and all Hedging Obligations with respect thereto;

 

(2)                                  any
other Indebtedness of the Issuer, the Co-Issuer or any Guarantor permitted to
be incurred under the terms of this Indenture, unless the instrument under
which such Indebtedness is incurred expressly provides that it is on a parity
with or subordinated in right of payment to the Notes or any Guarantee; and

 

(3)                                  all
Obligations with respect to the items listed in the preceding clauses (1) and
(2).

 

Notwithstanding anything to the contrary in
the preceding, Senior Debt will not include:

 

(1)                                  any
liability for federal, state, local or other taxes owed or owing by the Issuer
or the Co-Issuer;

 

(2)                                  any
intercompany Indebtedness of the Issuer, the Co-Issuer or any Restricted
Subsidiaries or any of its Affiliates;

 

(3)                                  any
trade payables; or

 

(4)                                  the
portion of any Indebtedness that is incurred in violation of this Indenture.

 

“ShelfRegistration Statement” means the Shelf Registration Statement as
defined in the Registration Rights Agreement.

 

“Significant Subsidiary” means any subsidiary that would be a “significant
subsidiary” as defined in Article I, Rule 1-02 of Regulation S-X, promulgated
pursuant to the Securities Act, as such Regulation is in effect on the date of
this Indenture.

 

“Stated Maturity” means, with respect to any installment of interest
or principal on any series of Indebtedness, the date on which the payment of
interest or principal was scheduled to be paid in the original documentation
governing such Indebtedness, and will not include any contingent obligations to
repay, redeem or repurchase any such interest or principal prior to the date
originally scheduled for the payment thereof.

 

“Subsidiary” means,
with respect to any specified Person:

 

(1)                                  any
corporation, association or other business entity of which more than 50% of the
total voting power of shares of Capital Stock entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers
or trustees of the corporation, association or other business entity is at the
time owned or controlled, directly or indirectly, by that Person or one or more
of the other Subsidiaries of that Person (or a combination thereof); and

 

22

 

(2)                                  any
partnership (a) the sole general partner or the managing general partner of
which is such Person or a Subsidiary of such Person or (b) the only general partners
of which are that Person or one or more Subsidiaries of that Person (or any
combination thereof).

 

“Tax Amount” means, with respect to any Person for any period,
the combined federal, state and local income taxes that would be paid by such
Person it were a New York individual filing separate tax returns with respect
to its Taxable Income for such period; provided, however, that in determining the Tax Amount, the effect
thereon of any net operating loss carryforwards or other carryforwards or tax
attributes, such as alternative minimum tax carryforwards, that would have
arisen if such Person were a New York individual shall be taken into account. Notwithstanding
anything to the contrary, Tax Amount shall not include taxes resulting from
such Person’s reorganization as or change in the status of a corporation.

 

“Taxable Income” means, with respect to any Person for any period,
such Person’s distributive share of Parent’s taxable income or loss for such
period for federal income tax purposes; provided that
(1) all items of income, gain, loss or deduction required to be stated
separately pursuant to Section 703(a)(1) of the Code shall be included in
taxable income or loss, (2) any basis adjustment made in connection with an
election under Section 754 of the Code shall be disregarded and (3) such
taxable income shall be increased or such taxable loss shall be decreased by
the amount of any interest expense incurred by Parent that is not treated as
deductible for federal income tax purposes by a partner or member of Parent.

 

“TIA” means the
Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb), as amended, as
in effect on the date hereof.

 

“Transfer Restricted Notes” means
Notes that bear or are required to bear the Restricted Notes Legend.

 

“Trustee” has
the meaning set forth in the preamble to this Indenture until a successor
replaces it in accordance with the provisions of this Indenture and thereafter means
such successor.

 

“Unrestricted Certificated Notes” means
one or more Certificated Notes that do not bear and are not required to bear
the Restricted Notes Legend.

 

“Unrestricted Subsidiary” means any Subsidiary of the Issuer that is
designated by the Board of Directors as an Unrestricted Subsidiary pursuant to
a Board Resolution, but only to the extent that such Subsidiary:

 

(1)                                  has
no Indebtedness other than Non-Recourse Debt;

 

(2)                                  is
not party to any agreement, contract, arrangement or understanding with the
Issuer or any Restricted Subsidiary unless the terms of any such agreement,
contract, arrangement or understanding are no less favorable to the Issuer or
such Restricted Subsidiary than those that might be obtained at the time from
Persons who are not Affiliates of the Issuer;

 

23

 

(3)                                  is
a Person with respect to which neither the Issuer nor any of the Restricted
Subsidiaries has any direct or indirect obligation (a) to subscribe for
additional Equity Interests or (b) to maintain or preserve such Person’s
financial condition or to cause such Person to achieve any specified levels of
operating results; and

 

(4)                                  has
not guaranteed or otherwise directly or indirectly provided credit support for
any Indebtedness of the Issuer or any of the Restricted Subsidiaries.

 

Any designation of a Subsidiary of the Issuer
as an Unrestricted Subsidiary will be evidenced to the Trustee by filing with
the Trustee a certified copy of the Board Resolution giving effect to such
designation and an Officer’s Certificate certifying that such designation
complied with the preceding conditions and was permitted by Section 4.7.
If, at any time, any Unrestricted Subsidiary would fail to meet the preceding
requirements as an Unrestricted Subsidiary, it will thereafter cease to be an
Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness of
such Subsidiary will be deemed to be incurred by a Restricted Subsidiary as of
such date and, if such Indebtedness is not permitted to be incurred as of such
date under Section 4.9, the Issuer will be in default of such
covenant. The Board of Directors of the Issuer may at any time designate any
Unrestricted Subsidiary to be a Restricted Subsidiary; provided
that such designation will be deemed to be an incurrence of Indebtedness by a
Restricted Subsidiary of any outstanding Indebtedness of such Unrestricted
Subsidiary and such designation will only be permitted if (1) such Indebtedness
is permitted under Section 4.9, calculated on a pro forma basis as
if such designation had occurred at the beginning of the four-quarter reference
period; and (2) no Default or Event of Default would be in existence following
such designation.

 

Whenever it is necessary to determine whether
the Issuer has complied with any covenant in this Indenture or a Default has
occurred and an amount is expressed in a currency other than U.S. dollars, such
amount will be treated as the U.S. Dollar Equivalent determined as of the date
such amount is initially determined in such currency.

 

“U.S. Government Securities”
means securities that are

 

(a)                                   direct
obligations of the United States of America for the timely payment of which its
full faith and credit is pledged or

 

(b)                                  obligations
of a Person controlled or supervised by and acting as an agency or instrumentality
of the United States of America the timely payment of which is unconditionally
guaranteed as a full faith and credit obligation by the United States of
America,

 

which, in either
case, are not callable or redeemable at the option of the issuers thereof, and
shall also include a depository receipt issued by a bank (as defined in
Section 3(a)(2) of the Securities Act), as custodian with respect to any
such U.S. Government Securities or a specific payment of principal of or
interest on any such U.S. Government Securities held by such custodian for the
account of the holder of such depository receipt; provided
that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository receipt from
any amount received by the custodian in respect of the U.S. Government

 

24

 

Securities or
the specific payment of principal of or interest on the U.S. Government
Securities evidenced by such depository receipt.

 

“Voting Stock” of any Person as of any date means the Capital Stock
of such Person that is at the time entitled to vote in the election of the
Board of Directors of such Person.

 

“Weighted Average Life to Maturity” means,
when applied to any Indebtedness at any date, the number of years obtained by
dividing:

 

(1)                                  the
sum of the products obtained by multiplying (a) the amount of each then
remaining installment, sinking fund, serial maturity or other required payments
of principal, including payment at final maturity, in respect of the
Indebtedness, by (b) the number of years (calculated to the nearest
one-twelfth) that will elapse between such date and the making of such payment;
by

 

(2)                                  the
then outstanding principal amount of such Indebtedness.

 

“Wholly Owned Restricted Subsidiary” of any specified Person means a Restricted
Subsidiary of such Person all of the outstanding Capital Stock or other
ownership interests of which (other than directors’ qualifying shares) will at
the time be owned by such Person or by one or more Wholly Owned Restricted
Subsidiaries of such Person and one or more Wholly Owned Restricted
Subsidiaries of such Person.

 

SECTION 1.2                                                       Other
Definitions.

 

	
  Term

  	
   

  	
  Defined in

  Section

  
	
  “Acceleration  Notice”

  	
   

  	
  6.2

  
	
  “Act”

  	
   

  	
  12.14(a)

  
	
  “Affiliate  Transaction”

  	
   

  	
  4.11

  
	
  “Agent  Members”

  	
   

  	
  2.1(c)

  
	
  “Change  of  Control  Payment”

  	
   

  	
  4.14

  
	
  “Covenant  Defeasance”

  	
   

  	
  8.3

  
	
  “Event  of  Default”

  	
   

  	
  6.1

  
	
  “Excess  Proceeds”

  	
   

  	
  4.10

  
	
  “incur”

  	
   

  	
  4.9

  
	
  “Legal  Defeasance”

  	
   

  	
  8.2

  
	
  “Non-Payment  Default”

  	
   

  	
  10.2

  
	
  “Offer  Amount”

  	
   

  	
  3.9

  
	
  “Payment  Blockage  Notice”

  	
   

  	
  10.2

  
	
  “Payment  Blockage  Period”

  	
   

  	
  10.2

  
	
  “Payment  Default”

  	
   

  	
  10.2

  
	
  “Permitted  Debt”

  	
   

  	
  4.9

  
	
  “QIB”

  	
   

  	
  2.1

  
	
  “QIB  Global  Note”

  	
   

  	
  2.1

  
	
  “Registrar”

  	
   

  	
  2.3

  

 

 

25

 

	
  Term

  	
   

  	
  Defined in

  Section

  
	
  “Regulation  S”

  	
   

  	
  2.1

  
	
  “Regulation  S  Global  Note”

  	
   

  	
  2.1

  
	
  “Regulation  S  Permanent  Global  Note”

  	
   

  	
  2.1

  
	
  “Regulation  S  Temporary  Global  Note”

  	
   

  	
  2.1

  
	
  “Restricted  Payment”

  	
   

  	
  4.7

  
	
  “Rule  144A”

  	
   

  	
  2.1

  

 

SECTION 1.3                                                       Incorporation
by Reference of Trust Indenture Act.

 

Whenever this Indenture refers to a provision
of the TIA, the provision is incorporated by reference in, and made a part of,
this Indenture.

 

The following TIA terms have the following
meanings:

 

“indenture securities” means the Notes and any Guarantee;

 

“indenture security holder” means a
Holder;

 

“indenture to be qualified” means this Indenture;

 

“indenture trustee” or “institutional trustee” means the Trustee; and

 

“obligor” on the
Notes means the Issuer and the Co-Issuer and any successor obligor upon the
Notes or any Guarantor.

 

All other terms used in this Indenture that
are defined by the TIA, defined by TIA reference to another statute or defined
by the Commission rule under the TIA have the meanings so assigned to them
therein.

 

SECTION 1.4                                                       Rules
of Construction.

 

Unless the context otherwise requires:

 

(1)               a
term has the meaning assigned to it herein;

 

(2)               an
accounting term not otherwise defined herein has the meaning assigned to it in
accordance with GAAP;

 

(3)               “or”
is not exclusive;

 

(4)               words
in the singular include the plural, and in the plural include the singular;

 

(5)               unless
otherwise specified, any reference to Section or Article refers to such Section
or Article of this Indenture;

 

26

 

(6)               provisions
apply to successive events and transactions; and

 

(7)               references
to sections of or rules under the Securities Act or the Exchange Act shall be
deemed to include substitute, replacement or successor sections or rules
adopted by the Commission from time to time.

 

ARTICLE II

 

THE NOTES

 

SECTION 2.1                                                       Form
and Dating.

 

The Notes and the Trustee’s certificate of
authentication relating thereto shall be substantially in the form of Exhibit A
attached hereto. The Notes may have notations, legends or endorsements required
by law, stock exchange rule or usage. Each Note shall be dated the date of its
authentication. The Notes initially shall be issued only in minimum denominations
of $1,000 and integral multiples of $1,000 thereof.

 

The terms and provisions contained in the
Notes shall constitute, and are hereby expressly made, a part of this Indenture
and the Issuers and the Trustee, by their execution and delivery of this
Indenture, expressly agree to such terms and provisions and to be bound thereby.
However, to the extent any provision of any Note conflicts with the express
provisions of this Indenture, the provisions of this Indenture shall govern and
be controlling.

 

(a)                                  The
Notes shall be issued initially in the form of one or more Global Notes
substantially in the form attached as Exhibit A hereto, which shall
be deposited on behalf of the purchasers of the Notes represented thereby with
the Trustee as custodian for the Depositary, and registered in the name of the
Depositary or a nominee of the Depositary, duly executed by the Issuers and
authenticated by the Trustee as hereinafter provided.

 

Each Global
Note shall represent such of the outstanding Notes as shall be specified
therein and each shall provide that it shall represent the aggregate amount of
outstanding Notes from time to time endorsed thereon and that the aggregate
amount of outstanding Notes represented thereby may from time to time be
reduced or increased, as appropriate, to reflect exchanges, redemptions and
transfers of interests. Any endorsement of a Global Note to reflect the amount
of any increase or decrease in the amount of outstanding Notes represented
thereby shall be made by the Trustee or the Note Custodian, at the direction of
the Trustee, in accordance with instructions given by the Holder thereof as
required by Section 2.6 hereof.

 

Except as set
forth in Section 2.6 hereof, the Global Notes may be transferred, in
whole and not in part, only to another nominee of the Depositary or to a
successor of the Depositary or its nominee.

 

(b)                                 The
Initial Notes are being issued by the Issuers only (i) to “qualified
institutional buyers” (as defined in Rule 144A under the Securities Act (“Rule 144A”)) (“QIBs”) and (ii) outside the United States to persons
other than U.S. Persons in reliance

 

27

 

on Regulation S under the Securities Act (“Regulation
S”). After such initial offers, Initial
Notes that are Transfer Restricted Notes may be transferred (A) to QIBs,
in reliance on Rule 144A; (B) outside the United States pursuant to
Regulation S or (C) to the Issuer, in accordance with certain
transfer restrictions. Initial Notes that are offered in reliance on Rule 144A
shall be issued in the form of one or more permanent Global Notes substantially
in the form set forth in Exhibit A (the “QIB
Global Note”)
deposited with the Trustee, as Note Custodian, duly executed by the Issuers and
authenticated by the Trustee as hereinafter provided. Initial Notes that are
offered in offshore transactions in reliance on Regulation S shall be
issued in the form of one or more temporary Global Notes substantially in the
form set forth in Exhibit A, including the Regulation S
Temporary Global Note legend (the “Regulation S Temporary Global Note”) deposited
with the Trustee, as Note Custodian, duly executed by the Issuers and
authenticated by the Trustee as hereinafter provided. Reasonably promptly
following the date that is 40 days after the later of the commencement of the
offering of the Notes in reliance on Regulation S and the Issue Date, a single
permanent global Note in registered form substantially in the form of Exhibit A
(the “Regulation S
Permanent Global
Note,” and together with the
Regulation S Temporary Global Note, the “Regulation
S Global Note”) duly executed by the Issuers and authenticated by the
Trustee as hereinafter provided shall be deposited with the Trustee, as
custodian for the Depositary, and the Registrar shall reflect on its books and
records the cancellation of the Regulation S Temporary Global Note and the
issuance of the Regulation S Permanent Global Note. The QIB Global Note and the
Regulation S Global Note shall each be issued with separate CUSIP numbers.
The aggregate principal amount of each Global Note may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as
Note Custodian. Transfers of Notes between QIBs and to or by purchasers
pursuant to Regulation S shall be represented by appropriate increases and
decreases to the respective amounts of the appropriate Global Notes, as more
fully provided in Section 2.16.

 

(c)                                  Section
2.1(b) shall apply only to Global Notes deposited with or on behalf of the
Depositary.

 

The Issuers
shall execute and the Trustee shall, in accordance with Section 2.1(b)
and this Section 2.1(c), authenticate and deliver the Global Notes
that (i) shall be registered in the name of the Depositary or the nominee of
the Depositary and (ii) shall be delivered by the Trustee to the Depositary or
pursuant to the Depositary’s instructions or held by the Trustee as Note
Custodian for the Depositary.

 

Members of, or
participants in, the Depositary (“Agent Members”) shall have no rights either under this Indenture
with respect to any Global Note held on their behalf by the Depositary or by
the Note Custodian as custodian for the Depositary or under such Global Note,
and the Depositary may be treated by the Issuers, the Trustee and any agent of the
Issuers or the Trustee as the absolute owner of such Global Note for all
purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Issuers, the Trustee or any Agent or other agent of the Issuers or
the Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or impair, as between the Depositary
and its Agent Members, the operation of customary practices

 

28

 

of such Depositary governing the exercise of the rights of an owner of
a beneficial interest in any Global Note.

 

The Trustee
shall have no responsibility or obligation to any Holder that is a member of
(or a participant in) DTC or any other Person with respect to the accuracy of
the records of DTC (or its nominee) or of any participant or member thereof,
with respect to any ownership interest in the Notes or with respect to the
delivery of any notice (including any notice of redemption) or the payment of
any amount or delivery of any Notes (or other security or property) under or
with respect to the Notes. The Trustee may rely (and shall be fully protected
in relying) upon information furnished by DTC with respect to its members,
participants and any beneficial owners in the Notes.

 

(d)                                 Notes
issued in certificated form shall be substantially in the form of Exhibit A
attached hereto.

 

SECTION 2.2                                                       Execution
and Authentication.

 

An Officer shall sign the Notes for each of
the Issuers by manual or facsimile signature.

 

If an Officer whose signature is on a Note no
longer holds that office at the time a Note is authenticated, the Note shall
nevertheless be valid.

 

A Note shall not be valid until authenticated
by the manual signature of a Responsible Officer of the Trustee. The signature
shall be conclusive evidence that the Note has been authenticated under this
Indenture.

 

The Trustee shall authenticate and deliver Notes
for original issue on the Issue Date in the aggregate principal amount of
$125,000,000 upon a written order of the Issuers in the form of an Officer’s
Certificate, which shall specify the number and principal amount of each such
Note, the registered owner thereof and related delivery instructions. In
addition, the Trustee shall authenticate Additional Notes thereafter in
unlimited amount (so long as not otherwise prohibited by the terms of this
Indenture, including, without limitation, Section 4.9) for original issue upon
a written order of the Issuers in the form of an Officer’s Certificate. Each
such Officer’s Certificate shall specify the amount of Notes to be
authenticated and the date on which the Notes are to be authenticated.

 

The Trustee may appoint an authenticating
agent reasonably acceptable to the Issuers to authenticate Notes. Unless
limited by the terms of such appointment, an authenticating agent may
authenticate Notes whenever the Trustee may do so. Each reference in this
Indenture to authentication by the Trustee includes authentication by such
agent. An authenticating agent has the same rights as an Agent to deal with
Holders or the Issuers or an Affiliate of the Issuers.

 

SECTION 2.3                                                       Registrar;
Paying Agent.

 

The Issuer and Co-Issuer shall maintain (i)
an office or agency where Notes may be presented for registration of transfer
or for exchange (“Registrar”) and (ii) an office or
agency where Notes may be presented for payment to a Paying Agent. The
Registrar shall keep a

 

29

 

register of
the Notes and of their transfer and exchange. The Issuer and Co-Issuer may
appoint one or more co-registrars and one or more additional paying agents. The
term “Registrar” includes any co-registrar and the term “Paying Agent” includes
any additional paying agent. The Issuer and Co-Issuer may change any Paying
Agent or Registrar without notice to any Holder. The Issuer and Co-Issuer shall
notify the Trustee in writing of the name and address of any Agent not a party
to this Indenture. If the Issuer and Co-Issuer fail to appoint or maintain
another entity as Registrar or Paying Agent, the Trustee shall act as such. The
Issuer or any of its Subsidiaries may act as Paying Agent or Registrar.

 

The Issuer and Co-Issuer shall notify the
Trustee and the Trustee shall notify the Holders of the name and address of any
Agent not a party to this Indenture. The Issuer, the Co-Issuer or any Guarantor
may act as Paying Agent or Registrar. The Issuer and Co-Issuer shall enter into
an appropriate agency agreement with any Agent not a party to this Indenture,
which shall incorporate the provisions of the TIA. The agreement shall
implement the provisions of this Indenture that relate to such Agent. The
Issuer and Co-Issuer shall notify the Trustee of the name and address of any
such Agent. If the Issuer and Co-Issuer fail to maintain a Registrar or Paying
Agent, or fails to give the foregoing notice, the Trustee shall act as such,
and shall be entitled to appropriate compensation in accordance with Section
7.7 hereof.

 

The Issuer and Co-Issuer initially appoint
the Trustee to act as the Note Custodian, Registrar and Paying Agent.

 

The Issuer and Co-Issuer initially appoint
DTC to act as the Depositary with respect to the Global Notes.

 

SECTION 2.4                                                       Paying
Agent to Hold Money in Trust.

 

The Issuers shall require each Paying Agent
other than the Trustee to agree in writing that the Paying Agent shall hold in
trust for the benefit of the Holders or the Trustee all money held by the Paying
Agent for the payment of principal, premium or Additional Interest, if any, or
interest on the Notes, and shall notify the Trustee of any Default by the
Issuers in making any such payment. While any such Default continues, the
Trustee may require a Paying Agent to pay all money held by it to the Trustee. The
Issuers at any time may require a Paying Agent to pay all money held by it to
the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the
Issuer or a Subsidiary) shall have no further liability for the money. If the
Issuer or a Subsidiary acts as Paying Agent, it shall segregate and hold in a
separate trust fund for the benefit of the Holders all money held by it as
Paying Agent. Upon the occurrence of events specified in Section 6.1(9) hereof,
the Trustee shall serve as Paying Agent for the Notes.

 

SECTION 2.5                                                       Holder
Lists.

 

The Trustee shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the
names and addresses of all Holders and shall otherwise comply with TIA
§ 312(a). If the Trustee is not the Registrar, the Issuer shall furnish to
the Trustee at least seven (7) Business Days before each interest payment date
and at such other times as the Trustee may request in writing, a list in such
form and as of such date as the Trustee may reasonably require of the names and
addresses of the Holders, including the aggregate principal

 

30

 

amount of the
Notes held by each Holder thereof, and the Issuers shall otherwise comply with
TIA § 312(a).

 

SECTION 2.6                                                       Book-Entry
Provisions for Global Securities.

 

(a)                                  Each Global Note
shall (i) be registered in the name of the Depositary for such Global Notes or
the nominee of such Depositary, (ii) be delivered to the Trustee as custodian
for such Depositary and (iii) bear legends as required by Section 2.6(e).

 

Agent Members shall have no rights under this
Indenture with respect to any Global Note held on their behalf by the
Depositary, or the Trustee as Note Custodian, or under the Global Note, and the
Depositary may be treated by the Issuers, the Note Custodian and any agent of the
Issuers or the Trustee as the absolute owner of such Global Note for all
purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Issuers, the Trustee or any agent of the Issuers or the Trustee,
from giving effect to any written certification, proxy or other authorization
furnished by the Depositary or impair, as between the Depositary and its Agent
Members, the operation of customary practices of such Depositary governing the
exercise of the rights of a Holder of any Note.

 

(b)                                 Transfers of a Global
Note shall be limited to transfers of such Global Note in whole, but not in
part, to the Depositary, its successors or their respective nominees. Interests
of beneficial owners in a Global Note may be transferred in accordance with Section
2.16 and the rules and procedures of the Depositary. In addition,
Certificated Notes shall be transferred to all beneficial owners (or the
requesting beneficial owners, in the case of clause (ii)) in exchange for their
beneficial interests only if (i) the Depositary notifies the Issuers that it is
unwilling or unable to continue as Depositary for the Global Notes or the
Depositary ceases to be a “clearing agency” registered under the Exchange Act
and a successor depositary is not appointed by the Issuers within ninety (90)
days of such notice or (ii) an Event of Default of which a Responsible Officer
of the Trustee has actual notice has occurred and is continuing and the
Registrar has received a request from any beneficial owner of an interest in
the Global Note (subject to the fourth paragraph of Section 2.1(c)
hereof) to issue such Certificated Notes.

 

(c)                                  In connection with
the transfer of the entire Global Note to beneficial owners pursuant to clause
(b) of this Section, such Global Note shall be deemed to be surrendered to the
Trustee for cancellation, and the Issuers shall execute, and the Trustee shall
authenticate and deliver, to each beneficial owner identified by the Depositary
in exchange for its beneficial interest in such Global Note an equal aggregate
principal amount of Certificated Notes of authorized denominations.

 

(d)                                 The registered Holder
of a Global Note may grant proxies and otherwise authorize any person,
including Agent Members and persons that may hold interest through Agent
Members, to take any action which a Holder is entitled to take under this
Indenture or the Notes.

 

(e)                                  Each Global Note
shall bear the Global Note Legend on the face thereof.

 

(f)                                    At such time as all
beneficial interests in Global Notes have been exchanged for Certificated Notes,
redeemed, repurchased or cancelled, all Global Notes shall be returned to or

 

31

 

retained and cancelled by the Trustee in
accordance with Section 2.11 hereof. At any time prior to such
cancellation, if any beneficial interest in a Global Note is exchanged for
Certificated Notes, redeemed, repurchased or cancelled, the principal amount of
Notes represented by such Global Note shall be reduced accordingly and an
endorsement shall be made on such Global Note, by the Trustee or the Note
Custodian, at the direction of the Trustee, to reflect such reduction.

 

(g)                                 General Provisions
Relating to Transfers and Exchanges.

 

(1)                                  To permit
registrations of transfers and exchanges, the Issuers shall execute and the Trustee
shall authenticate Global Notes and Certificated Notes at the Registrar’s request.

 

(2)                                  No service charge
shall be made to a Holder for any registration of transfer or exchange, but the
Issuers may require payment of a sum sufficient to cover any stamp or transfer
tax or similar governmental charge payable in connection therewith (other than
any such stamp or transfer taxes or similar governmental charge payable upon
exchange or transfer pursuant to Sections 2.2, 2.10, 3.7, 4.10,
4.14 and 9.5 hereto).

 

(3)                                  All Global Notes and
Certificated Notes issued upon any registration of transfer or exchange of
Global Notes or Certificated Notes shall be the valid obligations of the Issuers,
evidencing the same debt, and entitled to the same benefits under this Indenture,
as the Global Notes or Certificated Notes surrendered upon such registration of
transfer or exchange.

 

(4)                                  The Registrar shall
not be required (A) to issue, to register the transfer of or to exchange
Notes during a period beginning at the opening of fifteen (15) days before the
day of any selection of Notes for redemption under Section 3.2 hereof
and ending at the close of business on the day of selection, (B) to register
the transfer of or to exchange any Note so selected for redemption in whole or
in part, except the unredeemed portion of any Note being redeemed in part, or
(C) to register the transfer of or to exchange a Note between a record date and
the next succeeding interest payment date.

 

(5)                                  Prior to due
presentment for the registration of a transfer of any Note, the Trustee, any
Agent and the Issuers may deem and treat the Person in whose name any Note is
registered as the absolute owner of such Note for the purpose of receiving
payment of principal of and interest on such Notes and for all other purposes,
and neither the Trustee, any Agent nor the Issuers shall be affected by notice
to the contrary.

 

(6)                                  The Trustee shall
authenticate Global Notes and Certificated Notes in accordance with the
provisions of Section 2.2 hereof. Except as provided in Section
2.6(b), neither the Trustee nor the Registrar shall authenticate or deliver
any Certificated Note in exchange for a Global Note.

 

(7)                                  Each Holder agrees to
provide reasonable indemnity to the Issuers and the Trustee against any
liability that may result from the transfer, exchange or assignment of such
Holder’s Note in violation of any provision of this Indenture and/or applicable
United States federal or state securities law.

 

32

 

(8)                                  The Trustee shall
have no obligation or duty to monitor, determine or inquire as to compliance
with any restrictions on transfer imposed under this Indenture or under
applicable law with respect to any transfer of any interest in any Note
(including any transfers between or among Agent Members or beneficial owners of
interests in any Global Note) other than to require delivery of such
certificates and other documentation or evidence as are expressly required by,
and to do so if and when expressly required by the terms of, this Indenture,
and to examine the same to determine substantial compliance as to form with the
express requirements hereof.

 

(h)                                 Exchange Offer.
Upon the occurrence of the Exchange Offer in accordance with the Registration
Rights Agreement, the Issuers shall issue and, upon receipt of an
authentication order in accordance with Section 2.2, the Trustee shall
authenticate (i) one or more Unrestricted Global Notes in an aggregate
principal amount equal to the principal amount of the beneficial interests in
the Restricted Global Notes tendered for acceptance by Persons that certify in
the applicable letters of transmittal that (x) they are not affiliates (as
defined in Rule 144) of the Issuers, (y) they are not engaged in, and do not
intend to engage in, and have no arrangement or understanding with any Person
to participate in, a distribution of the Exchange Notes to be issued in the Exchange
Offer and (z) they are acquiring the Exchange Notes in their ordinary course of
business and (ii) Unrestricted Certificated Notes in an aggregate principal
amount equal to the principal amount of the Restricted Certificated Notes
accepted for exchange in the Exchange Offer. Concurrently with the issuance of
such Notes, the Trustee shall cause the aggregate principal amount of the
Restricted Global Notes to be reduced accordingly, and the Trustee shall deliver
to the Persons designated by the Holders of Restricted Global Notes or
Restricted Certificated Notes so accepted the Unrestricted Global Notes or Unrestricted
Certificated Notes issued and authenticated in accordance with the preceding
sentence in the appropriate principal amount.

 

SECTION 2.7                                                       Replacement
Notes.

 

If any mutilated Note is surrendered to the
Trustee, or the Issuers and the Trustee receive evidence to their satisfaction
of the destruction, loss or theft of any Note, the Issuer shall issue and the
Trustee, upon the written order of the Issuers signed by an Officer of each of the
Issuer and the Co-Issuer, shall authenticate a replacement Note if the Trustee’s
requirements are met. If required by the Trustee or the Issuers, an indemnity
bond must be supplied by the Holder that is sufficient in the judgment of the
Trustee and the Issuers to protect the Issuers, the Trustee, any Agent and any
authenticating agent from any loss, liability or expense that any of them may
suffer if a Note is replaced and subsequently presented or claimed for payment.
The Issuers and the Trustee may charge for their expenses in replacing a Note.

 

Every replacement Note is an additional
obligation of the Issuers and shall be entitled to all of the benefits of this
Indenture equally and proportionately with all other Notes duly issued
hereunder.

 

SECTION 2.8                                                       Outstanding
Notes.

 

The Notes outstanding at any time are all the
Notes authenticated by the Trustee except for those cancelled by it, those
delivered to it for cancellation, those reductions in the interest in a

 

33

 

Global Note
effected by the Trustee in accordance with the provisions hereof, and those described
in this Section 2.8 as not outstanding. Except as set forth in Section
2.9 hereof, a Note does not cease to be outstanding because the Issuers or
an Affiliate of the Issuers holds the Note.

 

If a Note is replaced pursuant to Section
2.7 hereof, it ceases to be outstanding unless the Trustee receives proof
satisfactory to it that the replaced Note is held by a bona fide purchaser.

 

If the principal amount of any Note is
considered paid under Section 4.1 hereof, it ceases to be outstanding
and interest on it ceases to accrue.

 

If the Paying Agent (other than the Issuer,
the Co-Issuer, a Subsidiary or an Affiliate of any thereof) holds, on a
redemption date or maturity date, money sufficient to pay Notes payable on that
date, then on and after that date such Notes shall be deemed to be no longer
outstanding and shall cease to accrue interest.

 

SECTION 2.9                                                       Treasury
Notes.

 

In determining whether the Holders of the
required aggregate principal amount of Notes have concurred in any direction,
waiver or consent, Notes owned by the Issuer, the Co-Issuer or by any Affiliate
of the Issuer or the Co-Issuer shall be considered as though not outstanding,
except that for the purposes of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Notes shown
on the register as being owned shall be so disregarded. Notwithstanding the
foregoing, Notes that are to be acquired by the Issuer, the Co-Issuer or an
Affiliate of the Issuer or the Co-Issuer pursuant to an exchange offer, tender
offer or other agreement shall not be deemed to be owned by such entity until
legal title to such Notes passes to such entity.

 

SECTION 2.10                                                 Temporary
Notes.

 

Until Certificated Notes are ready for
delivery, the Issuers may prepare and the Trustee shall authenticate temporary
Notes upon a written order of the Issuers signed by one Officer of each of the
Issuer and Co-Issuer. Temporary Notes shall be substantially in the form of
Certificated Notes but may have variations that the Issuers consider
appropriate for temporary Notes. Without unreasonable delay, the Issuers shall
prepare and the Trustee shall upon receipt of a written order of the Issuers
signed by one Officer of each of the Issuer and Co-Issuer authenticate
Certificated Notes in exchange for temporary Notes.

 

Holders of temporary Notes shall be entitled
to all of the benefits of this Indenture.

 

SECTION 2.11                                                 Cancellation.

 

The Issuers at any time may deliver to the
Trustee for cancellation any Notes previously authenticated and delivered
hereunder or which the Issuers may have acquired in any manner whatsoever, and
all Notes so delivered shall be promptly cancelled by the Trustee. All Notes
surrendered for registration of transfer, exchange or payment, if surrendered
to any Person other than the Trustee, shall be delivered to the Trustee. The
Trustee and no one else shall cancel all Notes surrendered for registration of
transfer, exchange, payment, replacement or cancellation.

 

34

 

Subject to Section
2.7 hereof, the Issuers may not issue new Notes to replace Notes that it
has redeemed or paid or that have been delivered to the Trustee for
cancellation. All cancelled Notes held by the Trustee shall be disposed of in
accordance with its customary practice, and certification of their disposal
delivered to the Issuers.

 

SECTION 2.12                                                 Defaulted
Interest.

 

If the Issuers default in a payment of
interest on the Notes, they shall pay the defaulted interest in any lawful
manner plus, to the extent lawful, interest payable on the defaulted interest,
to the Persons who are Holders on a subsequent special record date, which date
shall be at the earliest practicable date but in all events at least five (5)
Business Days prior to the payment date, in each case at the rate provided in
the Notes and in Section 4.1 hereof. The Issuers shall fix or cause to
be fixed each such special record date and payment date and shall promptly
thereafter notify the Trustee of any such date. At least fifteen (15) days
before the special record date, the Issuers (or the Trustee, in the name and at
the expense of the Issuers) shall mail or cause to be mailed to Holders a
notice that states the special record date, the related payment date and the amount
of such interest to be paid.

 

SECTION 2.13                                                 Record
Date.

 

Unless otherwise set forth in this Indenture,
the record date for purposes of determining the identity of Holders entitled to
vote or consent to any action by vote or consent authorized or permitted under
this Indenture shall be determined as provided for in TIA § 316 (c).

 

SECTION 2.14                                                 Computation
of Interest.

 

Interest and Additional Interest, if any, on
the Notes shall be computed on the basis of a 360-day year comprised of twelve
30-day months.

 

SECTION 2.15                                                 CUSIP
Number.

 

The Issuers in issuing the Notes may use a “CUSIP”
number, and if they do so, the Trustee shall use the CUSIP number in notices of
redemption or exchange as a convenience to Holders; provided
that any such notice may state that no representation is made as to the correctness
or accuracy of the CUSIP number printed in the notice or on the Notes and that
reliance may be placed only on the other identification numbers printed on the
Notes. The Issuers shall promptly notify the Trustee of any change in the CUSIP
number.

 

SECTION 2.16                                                 Special
Transfer Provisions.

 

Each Initial Note and each Additional Note
issued pursuant to an exemption from registration under the Securities Act will
constitute a Transfer Restricted Note and be required to bear the Restricted
Notes Legend until the expiration of the Resale Restriction Termination Date
therefor, unless and until such Transfer Restricted Note is transferred or
exchanged pursuant to an effective registration statement under the Securities
Act. The following provisions shall apply to the transfer of a Transfer
Restricted Note:

 

35

 

(a)                                  Transfers
to QIBs. The following provisions shall apply with respect to the
registration of any proposed transfer of a Transfer Restricted Note (other than
pursuant to Regulation S):

 

(i)                                     The
Registrar shall register the transfer of a Transfer Restricted Note by a Holder
to a QIB if such transfer is being made by a proposed transferor who has
provided the Registrar with (a) an appropriately completed certificate of
transfer in the form attached to the Note and (b) a letter substantially in the
form set forth in Exhibit C hereto.

 

(ii)                                  If
the proposed transferee is an Agent Member and the Transfer Restricted Note to
be transferred consists of an interest in the Regulation S Global Note,
upon receipt by the Registrar of (x) the items required by paragraph (i)
above and (y) instructions given in accordance with the Depositary’s and the
Registrar’s procedures therefor, the Registrar shall reflect on its books and
records the date and an increase in the principal amount of the QIB Global
Note in an amount equal to the principal amount of the beneficial interest in
the Regulation S Global Note to be so transferred, and the Registrar shall
reflect on its books and records the date and an appropriate decrease in the
principal amount of such Regulation S Global Note.

 

(b)                                 Transfers
Pursuant to Regulation S. The following provisions shall apply with
respect to registration of any proposed transfer of a Transfer Restricted Note
pursuant to Regulation S:

 

(i)                                     The
Registrar shall register any proposed transfer of a Transfer Restricted Note
pursuant to Regulation S by a Holder upon receipt of (a) an appropriately completed certificate of transfer in the form
attached to the Note and (b) a letter substantially in the
form set forth in Exhibit D hereto from the proposed transferor.

 

(ii)                                  If
the proposed transferee is an Agent Member holding a beneficial interest in a
QIB Global Note and the Transfer Restricted Note to be transferred consists of
an interest in a QIB Global Note, upon receipt by the Registrar of (x) the
letter, if any, required by paragraph (i) above and (y) instructions
in accordance with the Depositary’s and the Registrar’s procedures therefor,
the Registrar shall reflect on its books and records the date and an increase
in the principal amount of the Regulation S Global Note in an amount equal
to the principal amount of the beneficial interest in the QIB Global Note to be
transferred, and the Registrar shall reflect on its books and records the date
and an appropriate decrease in the principal amount of the QIB Global Note.

 

(c)                                  Restricted
Notes Legend. Upon the transfer, exchange or replacement of Notes not
bearing the Restricted Notes Legend, the Registrar shall deliver Notes that do
not bear the Restricted Notes Legend. Upon the transfer, exchange or
replacement of Notes bearing the Restricted Notes Legend, the Registrar shall
deliver only Notes that bear the Restricted Notes Legend unless there is
delivered to the Registrar an Opinion of

 

36

 

Counsel reasonably satisfactory to the Issuers and the Trustee to the
effect that neither such legend nor the related restrictions on transfer are
required in order to maintain compliance with the provisions of the Securities
Act.

 

(d)                                 General.
By its acceptance of any Note bearing the Restricted Notes Legend, each Holder
of such a Note acknowledges the restrictions on transfer of such Note set forth
in this Indenture and in the Restricted Notes Legend and agrees that it shall
transfer such Note only as provided in this Indenture. A transfer of a
beneficial interest in a Global Note that does not involve an exchange of such
interest for a Certificated Note or a beneficial interest in another Global
Note shall be subject to compliance with applicable law and the applicable
procedures of the Depositary, but is not subject any procedure required by this
Indenture.

 

The Registrar shall retain copies of all
letters, notices and other written communications received pursuant to this Section 2.16.

 

SECTION 2.17                                                 Issuance
of Additional Notes.

 

The Issuers shall be entitled to issue
Additional Notes, including Exchange Notes, under this Indenture that shall
have identical terms as the Initial Notes, other than with respect to the date
of issuance, issue price and amount of interest payable on the first interest
payment date applicable thereto (and, if such Additional Notes shall be issued
in the form of Transfer Restricted Notes, other than with respect to transfer
restrictions, any registration rights agreement and additional interest with
respect thereto); provided that such issuance is
not prohibited by the terms of this Indenture, including Section 4.9
and Section 4.12. The Initial Notes and any Additional Notes or
Exchange Notes shall be treated as a single class for all purposes under this
Indenture.

 

With respect to any Additional Notes, the
Issuers shall set forth in a resolution of their Board of Directors and in an Officer’s
Certificate, a copy of each of which shall be delivered to the Trustee, the
following information:

 

(1)               the
aggregate principal amount of such Additional Notes to be authenticated and
delivered pursuant to this Indenture;

 

(2)               the
issue price, the issue date, the CUSIP number of such Additional Notes, the
first interest payment date and the amount of interest payable on such first interest
payment date applicable thereto and the date from which interest shall accrue;
and

 

(3)               whether
such Additional Notes shall be Transfer Restricted Notes.

 

37

 

ARTICLE III

 

REDEMPTION AND PREPAYMENT

 

SECTION 3.1                                                       Notices
to Trustee.

 

If the Issuers elect to redeem Notes pursuant
to the optional redemption provisions of Section 3.7 hereof, they shall
furnish to the Trustee, at least thirty (30) days (or such shorter period as is
acceptable to the Trustee) before a redemption date, an Officer’s Certificate
setting forth (i) the section of this Indenture pursuant to which the
redemption shall occur, (ii) the redemption date, (iii) the principal amount of
Notes to be redeemed and (iv) the Redemption Price.

 

If the Issuers are required to make an offer
to purchase Notes pursuant to Section 4.10 or 4.14 hereof, they
shall furnish to the Trustee, at least thirty (30) days (or such shorter period
as is acceptable to the Trustee) before the scheduled purchase date, an Officer’s
Certificate setting forth (i) the section of this Indenture pursuant to which
the offer to purchase shall occur, (ii) the terms of the offer, (iii) the
principal amount of Notes to be purchased, (iv) the purchase price and (v) the
purchase date and further setting forth a statement to the effect that (a) the
Issuer or one of its Subsidiaries has effected an Asset Sale and there are
Excess Proceeds aggregating more than $10.0 million or (b) a Change of Control
has occurred, as applicable.

 

The Issuers will also provide the Trustee
with any additional information that the Trustee reasonably requests in connection
with any redemption or offer.

 

SECTION 3.2                                                       Selection
of Notes to Be Redeemed.

 

If less than all of the Notes are to be
redeemed at any time, the Trustee shall select the Notes to be redeemed among
the Holders in compliance with the requirements of the principal national
securities exchange, if any, on which the Notes are listed or, if the Notes are
not so listed, on a pro rata basis, by lot or by such method as the Trustee shall
deem fair and appropriate (and in a manner that complies with applicable legal
requirements); provided that no Notes of $1,000
or less shall be redeemed in part.

 

Notices of redemption shall be mailed by
first class mail at least 30 but not more than 60 days before the redemption
date to each Holder of Notes to be redeemed at its registered address, except
that redemption notice may be mailed more than 60 days prior to a redemption
date if the notice is issued in connection with Section 8.2 or 8.8
under this Indenture. If any Note is to be redeemed in part only, the notice of
redemption that relates to such Note shall state the portion of the principal
amount thereof to be redeemed. A new Note in principal amount equal to the
unredeemed portion of the original Note will be issued in the name of the Holder
thereof upon cancellation of the original Note (or appropriate adjustments to
the amount and beneficial interests in a Global Note will be made, as
appropriate).

 

On and after the redemption date, interest
will cease to accrue on Notes or portions of the Notes called for redemption. The
Trustee shall make the selection from the Notes outstanding and not previously
called for redemption as long as the Issuer or the Co-Issuer has deposited with

 

38

 

the Paying
Agent funds in satisfaction of the applicable Redemption Price pursuant to this
Indenture and shall promptly notify the Issuers in writing of the Notes
selected for redemption. The Trustee may select for redemption portions (equal
to $1,000 or any integral multiples of $1,000 thereof) of the principal of the
Notes that have denominations larger than $1,000.

 

SECTION 3.3                                                       Notice
of Redemption.

 

Subject to the provisions of Section 3.9,
at least 30 days but not more than 60 days before a redemption date, the
Issuers shall mail, or cause to be mailed by first class mail, a notice of
redemption to each Holder whose Notes are to be redeemed.

 

The notice shall identify the Notes to be
redeemed and shall state:

 

(1)               the
redemption date;

 

(2)               the
Redemption Price;

 

(3)               if
any Note is being redeemed in part, the portion of the principal amount of such
Notes to be redeemed and that, after the redemption date, upon surrender of
such Note, a new Note or Notes in principal amount equal to the unredeemed
portion shall be issued upon cancellation of the original Note;

 

(4)               the
name, telephone number and address of the Paying Agent;

 

(5)               that
Notes called for redemption must be surrendered to the Paying Agent to collect
the Redemption Price;

 

(6)               that,
unless the Issuers default in making such redemption payment, interest, if any,
on Notes called for redemption ceases to accrue on and after the redemption
date;

 

(7)               the
paragraph of the Notes and/or Section of this Indenture pursuant to which the
Notes called for redemption are being redeemed; and

 

(8)               that
no representation is made as to the correctness or accuracy of the CUSIP
number, if any, listed in such notice or printed on the Notes.

 

At the Issuers’ request, the Trustee shall
give the notice of redemption in the Issuers’ name and at the Issuers’ expense;
provided, however,
that the Issuers shall have delivered to the Trustee, at least 45 days prior to
the redemption date (or such shorter period as is acceptable to the Trustee),
an Officer’s Certificate requesting that the Trustee give such notice and
setting forth the information to be stated in the notice as provided in the
preceding paragraph. The notice mailed in the manner herein provided shall be
conclusively presumed to have been duly given whether or not the Holder
receives such notice. In any case, failure to give such notice by mail or any
defect in the notice to the Holder of any Note shall not affect the validity of
the proceeding for the redemption of any other Note.

 

39

 

SECTION 3.4                                                       Effect
of Notice of Redemption.

 

Once notice of redemption is mailed in
accordance with Section 3.3 hereof, Notes called for redemption become
irrevocably due and payable on the redemption date at the Redemption Price plus
accrued and unpaid interest and Additional Interest, if any, to such date. A
notice of redemption may not be conditional.

 

SECTION 3.5                                                       Deposit
of Redemption of Purchase Price.

 

On or before 10:00 a.m. (New York City time)
on each redemption date or the date on which Notes must be accepted for
purchase pursuant to Section 4.10 or 4.14, the Issuer or the Co-Issuer
shall deposit with the Trustee or with the Paying Agent (other than the Issuer,
the Co-Issuer or an Affiliate of the Issuer or the Co-Issuer) money sufficient
to pay the Redemption Price of and accrued and unpaid interest and Additional
Interest, if any, on all Notes to be redeemed or purchased on that date. The
Trustee or the Paying Agent shall promptly return to the Issuer or the Co-Issuer
any money deposited with the Trustee or the Paying Agent by the Issuer or the
Co-Issuer in excess of the amounts necessary to pay the Redemption Price of
(including any applicable premium), and accrued interest and Additional
Interest, if any, on, all Notes to be redeemed or purchased.

 

If Notes called for redemption or tendered in
an Asset Sale Offer or Change of Control Offer are paid or if the Issuer or the
Co-Issuer has deposited with the Trustee or Paying Agent money sufficient to
pay the redemption or purchase price of, and unpaid and accrued interest, if
any, on, all Notes to be redeemed or purchased, on and after the redemption or
purchase date, interest, if any, shall cease to accrue on the Notes or the
portions of Notes called for redemption or tendered and not withdrawn in an
Asset Sale Offer or Change of Control Offer (regardless of whether certificates
for such securities are actually surrendered). If a Note is redeemed or
purchased on or after an interest record date but on or prior to the related
interest payment date, then any accrued and unpaid interest and Additional
Interest, if any, shall be paid to the Person in whose name such Note was
registered at the close of business on such record date. If any Note called for
redemption shall not be so paid upon surrender for redemption because of the
failure of the Issuers to comply with the preceding paragraph, interest shall
be paid on the unpaid principal from the redemption or purchase date until such
principal is paid, and to the extent lawful on any interest not paid on such
unpaid principal, in each case, at the rate provided in the Notes and in Section
4.1 hereof.

 

SECTION 3.6                                                       Notes
Redeemed in Part.

 

Upon surrender of a Note that is redeemed in
part, the Issuers shall issue and, upon the written request of an Officer of
the Issuer or the Co-Issuer, the Trustee shall authenticate for the Holder at
the expense of the Issuers a new Note equal in principal amount to the
unredeemed portion of the Note surrendered; provided that
each such new Note will be in a principal amount of $1,000 or integral
multiples of $1,000 thereof.

 

40

SECTION 3.7                                                       Optional
Redemption.

 

(a)                                  The Notes are subject
to redemption, at the option of the Issuers, in whole or in part, at any time
on or after August 15, 2010, upon not less than 30 nor more than 60 days’
notice at the following Redemption Prices (expressed as percentages of the
principal amount to be redeemed) set forth below, plus accrued and unpaid
interest and Additional Interest, if any, to, but not including, the redemption
date (subject to the right of Holders of record on the relevant regular record
date to receive interest due on an interest payment date that is on or prior to
the redemption date), if redeemed during the 12-month period beginning August
15 of the years indicated below:

 

	
  Year

  	
   

  	
  Redemption 

  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  105.250%

  	
   

  
	
  2011

  	
   

  	
  102.625%

  	
   

  
	
  2012 and thereafter

  	
   

  	
  100.000%

  	
   

  

 

(b)                                 In addition to the
optional redemption of the Notes in accordance with the provisions of the
preceding paragraph, at any time prior to August 15, 2009, the Issuers may, on
any one or more occasion, with the net cash proceeds of one or more Equity
Offerings, redeem up to 35% of the aggregate principal amount of the
outstanding Notes at a Redemption Price of 110.5% of the principal amount
thereof, plus accrued and unpaid interest and Additional Interest thereon, if
any, to the date of redemption; provided that
at least 65% of the principal amount of Notes issued under this Indenture
(including any Additional Notes) remains outstanding immediately after the
occurrence of any such redemption (excluding Notes held by Issuers and their
Subsidiaries) and that any such redemption occurs within 90 days following
the closing of any such Equity Offering.

 

SECTION 3.8                                                       Mandatory
Redemption.

 

Except as set forth under Sections 3.9,
4.10 and 4.14 hereof, the Issuers shall not be required to make
mandatory redemption or sinking fund payments with respect to the Notes.

 

SECTION 3.9                                                       Offer
to Purchase.

 

In the event that the Issuers shall be
required to commence an Offer to Purchase pursuant to an Asset Sale Offer or a
Change of Control Offer, the Issuers shall follow the procedures specified
below.

 

On the Purchase Date, the Issuers shall
purchase the aggregate principal amount of Notes required to be purchased
pursuant to Section 4.10 hereof or Section 4.14 hereof
(the “Offer Amount”), or if less than the
Offer Amount has been tendered, all Notes tendered in response to the Offer to
Purchase.  Payment for any Notes so
purchased shall be made in the same manner as interest payments are made.  If the Purchase Date is on or after the interest
record date and on or before the related interest payment date, any accrued and
unpaid interest and Additional Interest, if any, shall be paid to the Person in
whose name a Note is registered at the close of business on

 

41

 

such record date, and no
additional interest, if any, shall be payable to the Holders who tender Notes
pursuant to the Offer to Purchase.  The
Issuers shall notify the Trustee at least 15 days (or such shorter period as is
acceptable to the Trustee) prior to the mailing of the Offer of the Issuers’
obligation to make an Offer to Purchase, and the Offer shall be mailed by the
Issuers or, at the Issuers’ request, by the Trustee in the name and at the
expense of the Issuers.  The Offer shall
contain all instructions and materials necessary to enable such Holders to
tender Notes pursuant to the Offer to Purchase.

 

On or before 10:00 a.m. (New York City time)
on each Purchase Date, the Issuer or the Co-Issuer shall irrevocably deposit with
the Trustee or Paying Agent (other than the Issuer, the Co-Issuer or an Affiliate
of the Issuer or the Co-Issuer) in immediately available funds the aggregate
purchase price equal to the Offer Amount, together with accrued and unpaid
interest, if any, thereon, to be held for payment in accordance with the terms
of this Section 3.9.  On the
Purchase Date, the Issuers shall, to the extent lawful, (i) accept for payment,
on a pro rata basis to the extent necessary,
the Offer Amount of Notes or portions thereof tendered pursuant to the Offer to
Purchase, or if less than the Offer Amount has been tendered, all Notes
tendered, (ii) deliver or cause the Paying Agent or depositary, as the case may
be, to deliver to the Trustee Notes so accepted and (iii) deliver to the
Trustee an Officer’s Certificate stating that such Notes or portions thereof
were accepted for payment by the Issuers in accordance with the terms of this Section
3.9.  The Issuers, the Depositary or
the Paying Agent, as the case may be, shall promptly (but in any case not later
than three (3) Business Days after the Purchase Date) mail or deliver to each
tendering Holder an amount equal to the purchase price of the Notes tendered by
such Holder and accepted by the Issuers for purchase, plus any accrued and
unpaid interest and Additional Interest, if any, thereon, and the Issuers shall
promptly issue a new Note, and the Trustee, at the written request of the
Issuers, shall authenticate and mail or deliver at the expense of the Issuers
such new Note to such Holder, equal in principal amount to any unpurchased
portion of such Holder’s Notes surrendered. 
Any Note not so accepted shall be promptly mailed or delivered by the
Issuers to the Holder thereof.  The
Issuers shall publicly announce in a newspaper of general circulation or in a
press release provided to a nationally recognized financial wire service the
results of the Offer to Purchase on the Purchase Date.

 

Other than as specifically provided in this Section
3.9, any purchase pursuant to this Section 3.9 shall be made
pursuant to the provisions of Sections 3.1 through 3.6 hereof.

 

ARTICLE
IV

 

COVENANTS

 

SECTION 4.1                                                       Payment
of Notes.

 

(a)                                  The Issuers shall pay
or cause to be paid the principal of, premium, if any, and interest on the
Notes on the dates and in the manner provided in the Notes.  Principal, premium, if any, and interest
shall be considered paid for all purposes hereunder on the date the Paying
Agent, if other than the Issuer, the Co-Issuer or a Subsidiary thereof, holds,
as of 10:00 a.m. (New York City time), money deposited by the Issuers in
immediately available funds and designated for and sufficient to pay all such
principal, premium, if any, and interest then due.

 

42

 

The Issuers shall pay all
Additional Interest, if any, in the same manner on the dates and amounts set
forth in the Registration Rights Agreement.

 

(b)                                 The Issuers shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to 1% per annum in excess of the then applicable interest rate on
the Notes to the extent lawful; it shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest and Additional Interest, if any (without regard to any applicable
grace period), at the same rate to the extent lawful.

 

SECTION 4.2                                                       Maintenance
of Office or Agency.

 

The Issuers shall maintain an office or
agency (which may be an office of the Trustee or an affiliate of the Trustee or
Registrar) where Notes may be surrendered for registration of transfer or for
exchange and where notices and demands to or upon the Issuers in respect of the
Notes and this Indenture may be served. 
The Issuers shall give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency.  If at any time the Issuers shall fail to
maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and demands
may be made or served at the Corporate Trust Office of the Trustee.

 

The Issuers may also from time to time
designate one or more other offices or agencies where the Notes may be
presented or surrendered for any or all such purposes and may from time to time
rescind such designations.  The Issuers
shall give prompt written notice to the Trustee of any such designation or
rescission and of any change in the location of any such other office or agency.

 

The Issuers hereby designate the Corporate
Trust Office of the Trustee as one such office or agency of the Issuers in accordance
with Section 2.3 hereof.

 

SECTION 4.3                                                       Provision
of Financial Information.  

 

Whether or not required by the Commission, so
long as any Notes are outstanding, the Issuer will furnish to the Holders of
Notes, within the time periods specified in the Commission’s rules and
regulations:

 

(1)                                   all
quarterly and annual financial information that would be required to be
contained in a filing with the Commission on Forms 10-Q and 10-K, if the Issuer
was required to file such forms, including a “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” and, with respect to
the annual information only, a report on the annual financial statements by the
Issuer’s certified independent accountants; and

 

(2)                                   all
current reports that would be required to be filed with the Commission on Form
8-K if the Issuer was required to file such reports.

 

43

 

If the Issuer has designated any of its
Subsidiaries as Unrestricted Subsidiaries, then the quarterly and annual
financial information required by the preceding paragraph will include a
reasonably detailed presentation, either on the face of the financial
statements or in the footnotes thereto, and in Management’s Discussion and
Analysis of Financial Condition and Results of Operations, of the financial
condition and results of operations of Barrington and the Restricted Subsidiaries
separate from the financial condition and results of operations of the
Unrestricted Subsidiaries.

 

In addition, whether or not required by the
Commission, after the consummation of the Exchange Offer, the Issuer will file
a copy of all of the information and reports referred to in clauses (1) and (2)
above with the Commission for public availability within the time periods
specified in the Commission’s rules and regulations (unless the Commission will
not accept such a filing) and make such information available to securities analysts
and prospective investors upon request. In addition, the Issuers and the
Guarantors have agreed that, for so long as any Notes remain outstanding, they
will furnish to the Holders of Notes and to securities analysts and prospective
investors, upon their request, the information required to be delivered
pursuant to Rule 144A(d)(4) under the Securities Act.

 

For the avoidance of doubt, the Issuer will
not be subject to Section 404 of the Sarbanes-Oxley Act of 2002 until compliance
is required pursuant to the rules and regulations of the Commission.

 

Notwithstanding the foregoing, the Issuer’s
obligations with respect to providing the information and reports described in
clauses (1) and (2) above will commence on September 30, 2006 and
will include (without limitation) the information and reports for the period
ending on June 30, 2006.

 

The Issuers shall provide the Trustee with a
sufficient number of copies of all reports and other documents and information
and, if requested by the Issuer, the Trustee will deliver such reports to the
Holders under this Section 4.3.

 

SECTION 4.4                                                       Compliance
Certificate.

 

The Issuer shall deliver to the Trustee,
within 90 days after the end of each fiscal year beginning with the fiscal year
ended December 31, 2006, an Officer’s Certificate stating that a review of
the activities of the Issuer and its Subsidiaries during the preceding fiscal
year has been made under the supervision of the signing Officers with a view to
determining whether each has kept, observed, performed and fulfilled its
obligations under this Indenture, and further stating, as to each such Officer
signing such certificate, that, to the best of his or her knowledge, each
entity has kept, observed, performed and fulfilled each and every covenant
contained in this Indenture and is not in default in the performance or
observance of any of the terms, provisions and conditions of this Indenture
(or, if a Default or Event of Default shall have occurred, describing all such
Defaults or Events of Default of which he or she may have knowledge and what action
the Issuer is taking or proposes to take with respect thereto) and that, to the
best of his or her knowledge, no event has occurred and remains in existence by
reason of which payments on account of the principal of, premium, if any, or
interest on the Notes is prohibited or

 

44

 

if such event has occurred, a
description of the event and what action the Issuer is taking or proposes to take
with respect thereto.

 

The Issuer shall, so long as any of the Notes
are outstanding, deliver to the Trustee, forthwith upon any Officer becoming
aware of any Default or Event of Default, an Officer’s Certificate specifying
such Default or Event of Default and what action the Issuer is taking or
proposes to take with respect thereto.

 

SECTION 4.5                                                       Taxes.

 

The Issuers shall pay, and shall cause each
of their Subsidiaries to pay, prior to delinquency, all material taxes,
assessments and governmental levies, except such as are contested in good faith
and by appropriate proceedings and with respect to which appropriate reserves
have been taken in accordance with GAAP or where the failure to effect such
payment is not adverse in any material respect to the Holders of the Notes.

 

SECTION 4.6                                                       Stay,
Extension and Usury Laws.

 

The Issuer covenants (to the extent that it
may lawfully do so) that it shall not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay,
extension or usury law wherever enacted, now or at any time hereafter in force,
that may affect the covenants or the performance of this Indenture; and the
Issuer, the Co-Issuer and each of the Guarantors (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it shall not, by resort to any such law, hinder, delay
or impede the execution of any power herein granted to the Trustee, but shall
suffer and permit the execution of every such power as though no such law has
been enacted.

 

SECTION 4.7                                                       Limitation
on Restricted Payments.

 

The Issuer will not, and will not permit any
ofthe Restricted Subsidiaries to, directly
or indirectly:

 

(a)                                  declare
or pay any dividend or make any other payment distribution on account of the
Issuer’s or any of its Restricted Subsidiaries’ Equity Interests, (including,
without limitation, any payment in connection with any merger or consolidation
involving the Issuer or any of the Restricted Subsidiaries) or to the direct or
indirect holders of the Issuer’s or any of the Restricted Subsidiaries’ Equity
Interests in their capacity as such (other than dividends or distributions
payable in Equity Interests (other than Disqualified Stock) of the Issuer and
other than dividends or distributions payable to the Issuer or the Restricted
Subsidiaries);

 

(b)                                 purchase,
redeem or otherwise acquire or retire for value (including, without limitation,
in connection with any merger or consolidation involving the Issuer) any Equity
Interests of the Issuer or any direct or indirect parent of the Issuer (other
than any such Equity Interests owned by the Issuer or a Restricted Subsidiary);

 

45

 

(c)                                  make
any principal payment on or with respect to, or purchase, redeem, defease or otherwise
acquire or retire for value any Indebtedness that is contractually subordinated
to the Notes or the Guarantees, except a payment of principal at the Stated
Maturity thereof; or

 

(d)                                 make
any Restricted Investment

 

(all such payments and other actions set
forth in these clauses (a) through (d) above being collectively referred to as “Restricted Payments”) unless, at the time
of and after giving effect to such Restricted Payment:

 

(1)                                  no Default or Event
of Default has occurred and is continuing or would occur as a consequence of
such Restricted Payment;

 

(2)                                  the Issuer would, at
the time of such Restricted Payment and after giving pro forma
effect thereto as if such Restricted Payment had been made at the beginning of
the applicable four-quarter period, have been permitted to incur at least $1.00
of additional Indebtedness pursuant to the Leverage Ratio test set forth in the
first paragraph of Section 4.9; and

 

(3)                                  such Restricted
Payment, together with the aggregate amount of all other Restricted Payments
made by the Issuer and the Restricted Subsidiaries after the Issue Date
(excluding Restricted Payments permitted by clauses (2), (3), (4), (5), (7),
(9) and (13) of the next succeeding paragraph), is less than the sum, without
duplication, of:

 

(i)                                     (i)
100% of the aggregate Consolidated Cash Flow of the Issuer (or, in the event
such Consolidated Cash Flow shall be a deficit, minus 100% of such deficit)
accrued for the period beginning on the Issue Date and ending on the last day
of the Issuer’s most recent calendar month for which financial information is
available to the Issuer ending prior to the date of such proposed Restricted
Payment, taken as one accounting period, less (ii) 1.4 times Consolidated Interest
Expense for the same period plus

 

(ii)                                  100%
of the aggregate net proceeds (including the fair market value of property
other than cash) received by the Issuer as a contribution to the equity capital
of the Issuer or from the issue or sale of Equity Interests of the Issuer
(other than Disqualified Stock) since the Issue Date, or of Disqualified Stock
or debt securities of the Issuer issued since the Issue Date that have been
converted into such Equity Interests (other than Equity Interests (or Disqualified
Stock or convertible debt securities) sold to a Restricted Subsidiary and other
than Disqualified Stock or convertible debt securities that have been converted
into Disqualified Stock), plus

 

(iii)                               to
the extent that anyUnrestricted
Subsidiary is redesignated as a Restricted Subsidiary after the Issue Date, the
fair market value of such Subsidiary as of the date of such redesignation, plus

 

46

 

(iv)                              the
aggregate amount returned in cash to the Issuer or a Restricted Subsidiary of
the Issuer that is a Guarantor after the Issue Date  with respect to Investments (other than Permitted
Investments) made after the Issue Date, to the extent such dividends were not
otherwise included in Consolidated Cash Flow, whether through interest
payments, principal payments, dividends or other distributions, plus

 

(v)                                 the
net cash proceeds received by the Issuer or any of the Restricted Subsidiaries
from the disposition, retirement or redemption of all or any portion of such
Investments referred to in clause (d) above (other than to a Restricted
Subsidiary);

 

provided,
however, that the sum of clauses (iii),
(iv) and (v) above shall not exceed the aggregate amount of all such
Investments made subsequent to the Issue Date.

 

The preceding provisions will not prohibit:

 

(1)                                  the payment of any
dividend within 60 days after the date of declaration of the dividend, if at
the date of declaration the dividend payment would have complied with the
provisions of this Indenture;

 

(2)                                  the redemption,
repurchase, retirement, defeasance or other acquisition of any subordinated
Indebtedness of the Issuer or any Restricted Subsidiary or of any Equity
Interests of the Issuer in exchange for, or out of the net cash proceeds of the
substantially concurrent sale (other than to a Restricted Subsidiary) of,
Equity Interests of the Issuer (other than Disqualified Stock); provided that the amount of any such net cash proceeds that
are utilized for any such redemption, repurchase, retirement, defeasance or
other acquisition will be excluded from clause (3)(ii) of the preceding
paragraph;

 

(3)                                  the defeasance,
redemption, repurchase or other acquisition of subordinated Indebtedness of the
Issuer or any Restricted Subsidiary with the net cash proceeds from an
incurrence of Permitted Refinancing Indebtedness;

 

(4)                                  the payment of any
dividend by a Restricted Subsidiary to the holders of its Equity Interests on a
pro rata basis;

 

(5)                                  the repurchase,
redemption or other acquisition or retirement for value of any Equity Interests
of the Issuer or the payment of a dividend to the Parent to effect the
repurchase, redemption, acquisition or retirement of the Issuer’s or Parent’s
equity interest, that is held by any member or former member of the Issuer’s
management, or by any of their respective directors, employees or consultants; provided that the aggregate price paid for all such
repurchased, redeemed, acquired or retired Equity Interests may not exceed the
sum of (a) $1.0 million in any calendar year and (b) the net cash proceeds to
the Issuer from anyissuance or
reissuance of Equity Interests of the Issuer or a Restricted Subsidiary (other
than Disqualified Stock) to members of management (which are excluded from the
calculation set forth in clause (3)(ii) of the preceding paragraph) and the net
cash proceeds to the Issuer of any “keyman” life insurance proceeds;

 

47

 

(6)                                  the payment of the
dividends on Disqualified Stock or Preferred Stock of any Restricted Subsidiary
the incurrence or issuance of which was permitted by this Indenture;

 

(7)                                  repurchases of Equity
Interests deemed to occur upon the exercise of stock options;

 

(8)                                  so long as Parent is
a limited liability company taxable as a partnership for federal income tax
purposes, distributions to the direct owners or the members of Parent in
amounts, with respect to any period after December 31, 2005, not to exceed
the Tax Amount for each such person for such period;

 

(9)                                  so long as no Default
or Event of Default exists both before and after giving effect thereto, the
Issuer may authorize, declare and pay dividends to its Parent, for the purpose
of paying the corporate overhead expenses of Parent attributable to its
ownership of the Issuer, in an aggregate amount for all such overhead expenses
not to exceed $500,000 in any Fiscal Year;

 

(10)                            the retirement of anyshares of Disqualified Stock of the Issuer by conversion
into, or by exchange for, shares of Disqualified Stock of the Issuer, or out of
the net cash proceeds of the substantially concurrent sale (other than to a
Subsidiary of the Issuer) of other shares of Disqualified Stock of the Issuer;

 

(11)                            purchase, redeem, defease
or otherwise acquire or retire for value any subordinated Indebtedness pursuant
to provisions requiring the Issuer or any Restricted Subsidiary to offer to
purchase, redeem, defease or otherwise acquire or retire for value such
subordinated Indebtedness upon the occurrence of a “change of control” as
defined in the agreements or instruments governing such subordinated Indebtedness;
provided, however, that the Issuers have
made a Change of Control Offer and have purchased all Notes tendered in
connection with such Change of Control Offer;

 

(12)                            make cash payments in lieu
of the issuance of fractional shares in connection with the exercise of
warrants, options or other securities convertible into or exchangeable for
Capital Stock of the Issuer; and

 

(13)                            other Restricted Payments not to exceed $5.0 million in the aggregate.

 

The Board of Directors of the Issuer may
designate any Restricted Subsidiary (other than the Co-Issuer) to be an
Unrestricted Subsidiary if such designation would not cause a Default.  For purposes of making such determination,
all outstanding Investments by the Issuer and the Restricted Subsidiaries
(except to the extent repaid in cash) in the Subsidiary so designated shall be
deemed to be Restricted Payments at the time of such designation and shall
reduce the amount available for Restricted Payments under the first paragraph
of this covenant.  All such outstanding Investments
shall be deemed to constitute Investments in an amount equal to the fair market
value of such Investments at the time of such designation.  Such designation shall only be permitted if
such Restricted Payment would be permitted at such time and if such Restricted
Subsidiary otherwise meets the definition of an Unrestricted Subsidiary.

 

48

 

The amount of all Restricted Payments (other
than cash) will be the fair market value on the date of the Restricted Payment
of the asset(s) or securities proposed to be transferred or issued by the
Issuer or such Restricted Subsidiary, as the case may be, pursuant to the
Restricted Payment.  The fair market
value of any assets or securities that are required to be valued by this
covenant will be determined by the Board of Directors whose resolution with
respect thereto will be delivered to the Trustee.  The Board of Directors’ determination must be
based upon an opinion or appraisal issued by an accounting, appraisal or
investment banking firm of national standing if the fair market value exceeds
$5.0 million.  Not later than the date of
making any Restricted Payment, the Issuer will deliver to the Trustee an Officer’s
Certificate stating that such Restricted Payment is permitted and setting forth
the basis upon which the calculations required by this Section were computed,
together with a copy of any fairness opinion or appraisal required by this
Indenture.

 

SECTION 4.8                                                       Limitation
on Dividends and Other Payment Restrictions Affecting Subsidiaries.

 

The Issuer will not, and will not permit any
of the Restricted Subsidiaries to, directly or indirectly, create or permit to
exist or become effective any consensual encumbrance or restriction on the
ability of any Restricted Subsidiary to:

 

(1)                                  pay dividends or make
any other distributions on its Capital Stock to the Issuer or any of its
Restricted Subsidiaries, or with respect to any other interest or participation
in, or measured by, its profits, or pay any Indebtedness owed to the Issuer or
any of its Restricted Subsidiaries;

 

(2)                                  make loans or
advances to the Issuer or any of its Restricted Subsidiaries; or

 

(3)                                  transfer any of its
properties or assets to the Issuer or any of its Restricted Subsidiaries.

 

However, the preceding restrictions will not
apply to encumbrances or restrictions existing under or by reason of:

 

(1)                                  agreements governing
Existing Indebtedness and Credit Facilities as in effect on the date of this
Indenture and any amendments, modifications, restatements, renewals, increases,
supplements, refundings, replacements or refinancings ofthose
agreements; provided that the amendments,
modifications, restatements, renewals, increases, supplements, refundings,
replacement or refinancings are no more restrictive, taken as a whole, with
respect to such dividend and other payment restrictions than those contained in
those agreements on the date of this Indenture;

 

(2)                                  the Indenture, the
Notes, including the Exchange Notes to be issued pursuant to the Registration
Rights Agreement, and the Guarantees;

 

(3)                                  applicable law, rule,
regulation or order;

 

49

 

(4)           any
instrument governing Indebtedness or Capital Stock of a Person acquired by the
Issuer or any of the Restricted Subsidiaries as in effect at the time of such
acquisition (except to the extent such Indebtedness or Capital Stock was
incurred in connection with or in contemplation of such acquisition), which
encumbrance or restriction is not applicable to any Person, or the properties
or assets of any Person, other than the Person, or the property or assets of
the Person, so acquired; provided that,
in the case of Indebtedness, such Indebtedness was permitted by the terms of this
Indenture to be incurred;

 

(5)                                  customary
non-assignment provisions in leases entered into in the ordinary course of
business and consistent with past practices;

 

(6)                                  purchase money
obligations (including Capital Lease Obligations) for property acquired in the
ordinary course of business that impose restrictions on that property of the
nature described in clause (3) of the preceding paragraph;

 

(7)                                  contracts for the
sale ofassets, including without limitation
any agreement for the sale or other disposition of a Subsidiary that restricts
distributions by that Subsidiary pending its sale or other disposition;

 

(8)                                  Permitted Refinancing
Indebtedness; provided that the restrictions contained
in the agreements governing such Permitted Refinancing Indebtedness are no more
restrictive, taken as a whole, than those contained in the agreements governing
the Indebtedness being refinanced;

 

(9)                                  Liens securing
Indebtedness otherwise permitted to be incurred pursuant to Section 4.12
that limit the right ofthe debtor to
dispose of the assets subject to such Liens;

 

(10)                            provisions with respect to
the disposition or distribution of assets or property (including cash) in joint
venture agreements, assets sale agreements, stock sale agreements and other
similar agreements entered into in the ordinary course of business; and

 

(11)                            restrictions on cash or other deposits or net worth imposed by
customers under contracts entered into in the ordinary course of business.

 

SECTION 4.9                                                  Limitations
on Incurrence of Indebtedness and Issuance of Preferred Stock.

 

The Issuer will not, and will not permit any
of the Restricted Subsidiaries to, directly or indirectly, create, incur,
issue, assume, guarantee or otherwise become directly or indirectly liable,
contingently or otherwise, with respect to (collectively, “incur”) any Indebtedness (including
Acquired Debt), and the Issuer will not issue any shares of Disqualified Stock
and will not permit any of the Restricted Subsidiaries to issue any shares of
Preferred Stock; provided, however,that the Issuer or any Guarantor may incur Indebtedness
(including Acquired Debt) or issue shares of Disqualified Stock or Preferred
Stock if the Leverage Ratio for the Issuer at the

 

50

 

time of incurrence of such
Indebtedness or the issuance of such Disqualified Stock or such Preferred
Stock, as the case may be, would have been no greater than 7.0 to 1.0,
determined on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if
the additional Indebtedness had been incurred or the Disqualified Stock or
Preferred Stock had been issued, as the case may be, and the proceeds thereof
applied at the beginning of the most recently ended four full fiscal quarter
period of the Issuer for which internal financial statements are available.

 

The first paragraph of this covenant will not
prohibit the incurrence of any of the following items of Indebtedness
(collectively, “Permitted Debt”):

 

(1)               the
incurrence by the Issuer or the Restricted Subsidiaries of Indebtedness under
the Credit Facilities (with letters of credit being deemed to have a principal
amount equal to the maximum potential liability of the Issuer and the
Restricted Subsidiaries thereunder) and related guarantees under the Credit
Facilities; provided that the aggregate principal
amount of all Indebtedness of the Issuer and the Restricted Subsidiaries then
classified as having been incurred pursuant to this clause (1) after giving
effect to such incurrence, including all Permitted Refinancing Indebtedness
incurred to refund, refinance or replace any other Indebtedness incurred
pursuant to this clause (1), does not exceed an amount equal to $172.5 million
less the aggregate amount applied by the Issuer and the Restricted Subsidiaries
to permanently reduce the availability of Indebtedness under the Credit
Facilities pursuant to Section 4.10;

 

(2)               the
guarantee by the Issuer of Indebtedness of Sagamore in an aggregate amount not
to exceed $2.5 million;

 

(3)               the
incurrence by the Issuer and the Restricted Subsidiaries ofExisting
Indebtedness;

 

(4)               the
incurrence by the Issuer of Indebtedness represented by the Notes, including
the Exchange Notes to be issued pursuant to the Registration Rights Agreement,
in accordance with the terms of this Indenture;

 

(5)               the
incurrence by the Issuer or any of the Restricted Subsidiaries of Permitted
Refinancing Indebtedness;

 

(6)               the
incurrence by the Issuer or any of the Restricted Subsidiaries of intercompany
Indebtedness between or among the Issuer and any ofthe
Restricted Subsidiaries; provided, however,that (i) any
subsequent event or issuance or transfer of Equity Interests that results in
any such Indebtedness being held by a Person other than the Issuer or a
Restricted Subsidiary and (ii) any sale or other transfer of any such
Indebtedness to a Person that is not the Issuer or a Restricted Subsidiary
shall be deemed, in each case, to constitute an incurrence of such Indebtedness
by the Issuer or such Restricted Subsidiary, as the case may be, that was not
permitted by this clause (6);

 

51

 

(7)               the
incurrence by the Issuer or any of the Restricted Subsidiaries of Hedging
Obligations that are incurred in the ordinary course of business in connection with
the conduct of their respective businesses and not for speculative purposes;

 

(8)               the
guarantee by the Issuer of Indebtedness of any of the Restricted Subsidiaries
so long as the incurrence of such Indebtedness by such Restricted Subsidiary is
permitted to be incurred by another provision of this Section 4.9;

 

(9)               the
guarantee by any Restricted Subsidiary of Indebtedness of the Issuer or any
Guarantor;

 

(10)         Indebtedness
consisting of customary indemnification, adjustments of purchase price or
similar obligations, in each case, incurred or assumed in connection with the acquisition
of any business or assets;

 

(11)         Indebtedness
incurred by the Issuer or any of the Restricted Subsidiaries constituting reimbursement
obligations with respect to letters of credit issued in the ordinary course of
business, including without limitation to letters of credit in respect to
workers’ compensation claims or self-insurance, or other Indebtedness with
respect to reimbursement type obligations regarding workers’ compensation
claims; provided, however,
that upon the drawing of such letters of credit or the incurrence of such
Indebtedness, such obligations are reimbursed within 30 days following such
drawing or incurrence;

 

(12)         Indebtedness
of the Issuer and the Restricted Subsidiaries represented by Capital Lease
Obligations, mortgage financings or purchase money obligations, in each case
incurred for the purpose of financing all or any part of the purchase price or
cost of construction or improvement of property, plant or equipment whether
through the direct purchase of assets or at least a majority of the Voting
Stock of any person owning such assets, in an aggregate principal amount not to
exceed $5.0 million at any time outstanding;

 

(13)         Obligations
in respect of performance bonds, bankers’ acceptances, workers’ compensation
claims, surety or appeal bonds, payment obligations in connection with
self-insurance or similar obligations and completion or performance guarantees
in the ordinary course of business; and

 

(14)         the
incurrence by the Issuer or any of the Restricted Subsidiaries of additional
Indebtedness, including Attributable Debt incurred after the date of this
Indenture, in an aggregate principal amount (or accreted value, as applicable)
at any time outstanding not to exceed $10.0 million.

 

For purposes of determining compliance with
this Section 4.9, in the event that an item of proposed Indebtedness
meets the criteria of more than one of the categories of Permitted Debt described
in clauses (3) through (14) above, or is entitled to be incurred pursuant to
the first paragraph of this Section 4.9, the Issuer will be permitted to
classify such item of Indebtedness on the date of its incurrence in any manner
that complies with this Section 4.9. 
In addition, the

 

52

 

Issuer may, at any time, change
the classification of an item of Indebtedness, or any portion thereof, to any
other clause or to the first paragraph of this Section 4.9, provided that the Issuer or a Restricted Subsidiary would be
permitted to incur the item of Indebtedness, or portion of the item of
Indebtedness, under the other clause or the first paragraph of this Section 4.9,
as the case may be, at the time of reclassification.  Accrual of interest, accretion or
amortization of original issue discount, the payment of interest on any
Indebtedness in the form of additional Indebtedness with the same terms, and
the payment of dividends on Disqualified Stock or Preferred Stock of a
Restricted Subsidiary in the form of additional shares of the same class of
Disqualified Stock or Preferred Stock, as applicable, will not be deemed to be
an incurrence of Indebtedness for purposes of this Section 4.9.

 

SECTION 4.10                                            Limitation
on Sale of Assets.

 

(A)                              The Issuer will not, and
will not permit any of the Restricted Subsidiaries to, consummate an Asset Sale
unless:

 

(1)                                  the Issuer (or the
Restricted Subsidiary, as the case may be) receives consideration at the time
of the Asset Sale at least equal to the fair market value of the assets or
Equity Interests issued or sold or otherwise disposed of;

 

(2)                                  the fair market value
is determined by the Issuer’s Board of Directors and evidenced by a resolution
of the Board of Directors set forth in an Officer’s Certificate delivered to
the trustee; and

 

(3)                                  at least 75% of the
consideration received in the Asset Sale by the Issuer or such Restricted
Subsidiary is in the form of cash or Cash Equivalents, except to the extent the
Issuer is undertaking a Permitted Asset Swap. 
For purposes of this provision and the next paragraph, each of the
following will be deemed to be cash:

 

(a)                                  any liabilities, as
shown on the Issuer’s most recent consolidated balance sheet, of the Issuer or
any Restricted Subsidiary (other than contingent liabilities and liabilities
that are by their terms subordinated to the Notes or any Guarantee) that are
assumed by the transferee of any such assets pursuant to a customary novation
agreement that releases the Issuer or such Restricted Subsidiary from further liability;
and

 

(b)                                 any securities, Notes
or other obligations received by the Issuer or any such Restricted Subsidiary
from such transferee that are converted by the Issuer or such Restricted
Subsidiary within 180 days into cash or Cash Equivalents, to the extent of the
cash received in that conversion.

 

Notwithstanding the foregoing, the Issuer or
any Restricted Subsidiary will be permitted to consummate an Asset Sale without
complying with the foregoing if:

 

(x)                                   the Issuer or such
Restricted Subsidiary receives consideration at the time of such Asset Sale at
least equal to the fair market value of the assets or other property sold,
issued or otherwise disposed of;

 

53

 

(y)                                 the fair market value
is determined by the Issuer’s Board of Directors and evidenced by a resolution
of the Board of Directors set forth in an Officer’s Certificate delivered to
the Trustee; and

 

(z)                                   at least 75% of the
consideration for such Asset Sale constitutes a controlling interest in a
Permitted Business, assets used or useful in a Permitted Business and/or cash;

 

provided that any
cash (other than any amount deemed cash under Section 4.10(A)(3)(a))
received by the Issuer or such Restricted Subsidiary in connection with any
Asset Sale permitted to be consummated under this paragraph shall constitute
Net Proceeds subject to the provisions of the next paragraph.

 

(B)                                Within 365 days after
the receipt of any Net Proceeds from an Asset Sale, the Issuer or such
Restricted Subsidiary may apply those Net Proceeds at its option:

 

(1)                                  to permanently repay
or repurchase Senior Debt of the Issuer or any Guarantor;

 

(2)                                  to acquire all or
substantially all of the assets of, or a majority of the Voting Stock of, a
Permitted Business if, after giving effect to any such acquisition of Voting
Stock, the Permitted Business is or becomes a Restricted Subsidiary of the
Issuer or is merged with or into the Issuer or a Restricted Subsidiary;

 

(3)                                  to make a capital
expenditure; or

 

(4)                                  to acquire other
assets that are used or useful in a Permitted Business.

 

Pending the final application of any Net
Proceeds, the Issuer may temporarily reduce revolving credit borrowings or
otherwise invest the Net Proceeds in any manner that is not prohibited by this
Indenture.

 

Any Net Proceeds from Asset Sales that are
not applied or invested as provided in the preceding paragraph will constitute “Excess
Proceeds.”  When the aggregate amount of
Excess Proceeds exceeds $10.0 million, the Issuers will make an Asset Sale
Offer to all Holders of Notes and all holders of other Indebtedness that is pari passu with the Notes containing provisions similar to
those set forth in this Indenture with respect to offers to purchase or redeem
with the proceeds of sales of assets to purchase the maximum principal amount
of Notes and such other pari passu
Indebtedness that may be purchased out of the Excess Proceeds.  The offer price is any Asset Sale Offer will
be equal to 100% of principal amount plus accrued and unpaid interest and
Additional Interest, if any, to the date of purchase, and will be payable in
cash.  If any Excess Proceeds remain
after consummation of an Asset Sale Offer, the Issuers may use those Excess
Proceeds for any purpose not otherwise prohibited by this Indenture.  If the aggregate principal amount of Notes
and other pari passu Indebtedness tendered into
such Asset Sale Offer exceeds the amount of Excess Proceeds, the trustee will
select the Notes and such other pari passu
Indebtedness to be purchased on a pro rata basis.  Upon completion of each Asset Sale Offer, the
amount of Excess Proceeds will be reset at zero.

 

54

 

The Issuer and the Co-Issuer shall comply
with the requirements of Rule 14e-1 under the Exchange Act, and any other
applicable laws and regulations in connection with the purchase of Notes
pursuant to an Asset Sale Offer.  To the
extent that the provisions of any securities laws or regulations conflict with
this Section 4.10, the Issuer and the Co-Issuer shall comply with the
applicable securities laws and regulations and will not be deemed to have
breached its obligations under this Section 4.10 by virtue of this
compliance.

 

SECTION 4.11                                            Limitation
on Transactions with Affiliates.

 

The Issuer will not, and will not permit any
of the Restricted Subsidiaries to, make any payment to, or sell, lease,
transfer or otherwise dispose of any of its properties or assets to, or
purchase any property or assets from, or enter into or make or amend any
transaction, contract, agreement, understanding, loan, advance or guarantee
with, or for the benefit of, any Affiliate (each, an “Affiliate Transaction”), unless:

 

(1)                                  the Affiliate
Transaction is on terms that are no less favorable to the Issuer or the relevant
Restricted Subsidiary than those that would have been obtained in a comparable
transaction by the Issuer or such Restricted Subsidiary with an unrelated
Person; and

 

(2)                                  the
Issuer delivers to the Trustee:

 

(a)                                  with respect to any
Affiliate Transaction or series of related Affiliate Transactions involving aggregate
consideration in excess of $2.0 million, a resolution of the Board of Directors
set forth in an Officer’s Certificate certifying that such Affiliate
Transaction complies with this covenant and that such Affiliate Transaction has
been approved by a majority of the disinterested members of the Board of
Directors; and

 

(b)                                 with respect to any
Affiliate Transaction or series of related Affiliate Transactions involving aggregate
consideration in excess of $5.0 million, an opinion as to the fairness to the
Holders of such Affiliate Transaction from a financial point of view issued by
an accounting, appraisal or investment banking firm of national standing.

 

The following items will not be deemed to be
Affiliate Transactions and, therefore, will not be subject to the provisions of
the prior paragraph:

 

(1)                                  any employment
agreement entered into by the Issuer or any of the Restricted Subsidiaries in
the ordinary course of business of the Issuer or such Restricted Subsidiary;

 

(2)                                  transactions between
or among the Issuer and/or the Restricted Subsidiaries;

 

(3)                                  loans, advances,
payment ofreasonable fees, indemnification of
directors, or similar arrangements to officers, directors, employees and
consultants;

 

55

 

(4)                                  sales ofEquity Interests (other than Disqualified Stock) ofthe Issuer to Affiliates of the Issuer;

 

(5)                                  transactions under
any contract or agreement in effect on the date of this Indenture as the same
may be amended, modified or replaced from time to time so long as any
amendment, modification, or replacement is no less favorable to the Issuer and
the Restricted Subsidiaries than the contract or agreement as in effect on the
date of this Indenture;

 

(6)                                  Permitted Investments
and Restricted Payments that are permitted by Section 4.7; and

 

(7)                                  transactions between
the Issuer and Sagamore in the ordinary course of business.

 

SECTION 4.12                                            Limitation
on Liens.

 

The Issuer will not, and will not permit any
of the Restricted Subsidiaries to, directly or indirectly, create, incur,
assume or suffer to exist any Lien of any kind securing Indebtedness or
Attributable Debt on any asset now owned or hereafter acquired, except
Permitted Liens, unless all payments due under the Notes, the guarantees, and
this Indenture are secured on an equal and ratable basis with the obligation so
secured until such obligations are no longer secured by a Lien.

 

SECTION 4.13                                            Payments
for Consent.

 

The Issuer and the Guarantors will not, and
will not permit any of their Subsidiaries to, directly or indirectly, pay or
cause to be paid any consideration to or for the benefit of any Holder of Notes
for or as an inducement to any consent, waiver or amendment of any of the terms
or provisions of this Indenture or the Notes unless such consideration is
offered to be paid and is paid to all Holders of the Notes that consent, waive
or agree to amend in the time frame set forth in the solicitation documents
relating to such consent, waiver or agreement.

 

SECTION 4.14                                            Offer
to Purchase upon Change of Control.

 

If a Change of Control occurs, each Holder of
Notes will have the right to require the Issuers to repurchase all or any part
(equal to $1,000 or an integral multiple of $1,000) of that Holder’s Notes
pursuant to a Change of Control Offer on the terms set forth in this Indenture.
 In the Change of Control Offer, the
Issuers will offer a payment (a “Change of Control Payment”)
in cash equal to 101% of the aggregate principal amount of Notes repurchased
plus accrued and unpaid interest and Additional Interest, if any, on the Notes
repurchased, to the date of purchase. 
Within 60 days following any Change of Control, the Issuers will mail a
notice to each Holder describing the transaction or transactions that constitute
the Change of Control and offering to repurchase Notes on the date of such
Change of Control Payment specified in the notice, which date will be no
earlier than 30 days and no later than 60 days from the date such notice is
mailed, pursuant to the procedures required by this Indenture and described in
such notice.

 

56

 

The Issuers will comply with the requirements
of Rule 14e-1 under the Exchange Act and any other securities laws and
regulations thereunder to the extent those laws and regulations are applicable
in connection with the repurchase of the Notes as a result of a Change of
Control.  To the extent that the
provisions of any securities laws or regulations conflict with the provisions
of this Section 4.14, the Issuers will comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under the provisions of this Section 4.14 by virtue of such
conflict.

 

On the date of such Change of Control Payment,
the Issuers will, to the extent lawful:

 

(1)               accept
for payment all Notes or portions of Notes properly tendered pursuant to the
Change of Control Offer;

 

(2)               deposit
with the paying agent an amount equal to the Change of Control Payment in
respect of all Notes or portions of Notes properly tendered; and

 

(3)               deliver
or cause to be delivered to the Trustee the Notes properly accepted together
with an Officer’s Certificate stating the aggregate principal amount of Notes
or portions of Notes being purchased by the Issuers.

 

The Paying Agent will promptly mail to each Holder
of Notes properly tendered the Change of Control Payment for such Notes, and
the Trustee will promptly authenticate and mail (or cause to be transferred by
book entry) to each Holder a new Note equal in principal amount to any
unpurchased portion of the Notes surrendered, if any; provided
that each new Note will be in a minimum principal amount of $1,000 or an
integral multiple of $1,000.  The Issuer
will publicly announce the results of the Change of Control Offer on or as soon
as practicable after the date of such Change of Control Payment.

 

The Issuers will not be required to make a
Change of Control Offer upon a Change of Control if (i) a third party
makes the Change of Control Offer in the manner, at the times and otherwise in
compliance with the requirements set forth in this Indenture applicable to a
Change of Control Offer made by the Issuers and purchases all Notes properly
tendered and not withdrawn under the Change of Control Offer or (ii) a
notice of redemption has been given pursuant to Section 3.9 of this
Indenture unless and until there is a default in the payment of the applicable
redemption price.  A Change of Control
Offer may be made in advance of a Change of Control or conditional upon the
occurrence of a Change of Control, if a definitive agreement is in place for
the Change of Control at the time the Change of Control Offer is made.

 

Prior to complying with any of the provisions
of this Section 4.14, but in any event within 90 days following a Change
of Control, the Issuers will either repay all outstanding Senior Debt or obtain
the requisite consents, if any, under all agreements governing outstanding
Senior Debt to permit the repurchase of Notes required by this Section 4.14.

 

The provisions described above that require
the Issuers to make a Change of Control Offer following a Change of Control
will be applicable whether or not any other provision of this Indenture is applicable.  Except as described above with respect to a
Change of Control, this Indenture does not contain provisions that permit the
Holders of the Notes to require that the

 

57

 

Issuers repurchase or redeem
the Notes in the event of a takeover, recapitalization or similar transaction.

 

SECTION 4.15                                            Corporate
Existence.

 

Subject to Section 4.14 and Article
V hereof, as the case may be, each Issuer shall do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate existence
and the corporate, partnership, limited liability company or other existence of
each of its Subsidiaries in accordance with the respective organizational
documents (as the same may be amended from time to time) of such Issuer or any
such Subsidiary and the rights (charter and statutory), licenses and franchises
of the Issuer and its Subsidiaries; provided that neither
Issuer shall be required to preserve any such right, license or franchise, or
the corporate, partnership or other existence of any of its Subsidiaries, if
the Board of Directors of such Issuer shall determine that the preservation
thereof is no longer desirable in the conduct of the business of such Issuer
and its Subsidiaries, taken as a whole, and that the loss thereof is not adverse
in any material respect to the Holders.

 

SECTION 4.16                                            Business
Activities.

 

The Issuer will not, and will not permit any
Restricted Subsidiary to, engage in any business other than Permitted
Businesses, except to such extent as would not be material to the Issuer and
its Restricted Subsidiaries taken as a whole.

 

SECTION 4.17                                            Limitations
on Issuances of Guarantees of Indebtedness.

 

The Issuer will not permit any Restricted
Subsidiary, directly or indirectly, to incur Indebtedness or guarantee or
pledge any assets to secure the payment of any other of the Issuer’s
Indebtedness or that of any Restricted Subsidiary unless either the Restricted
Subsidiary

 

(1)                                  is a Guarantor or

 

(2)                                  simultaneously
executes and delivers a supplemental indenture to this Indenture and becomes a
Guarantor which guarantee shall

 

(a)                                  with respect to any
guarantee of Senior Debt, be subordinated in right of payment on the same terms
as the notes are subordinated to the Senior Debt; and

 

(b)                                 with respect to any
guarantee of any other Indebtedness, be senior to or rank equal to the
Restricted Subsidiary’s other Indebtedness or guarantee of or pledge to secure
the other Indebtedness.

 

SECTION 4.18                                            Designation
of Restricted and Unrestricted Subsidiaries.

 

The Board ofDirectors
may designate any Restricted Subsidiary to be an Unrestricted Subsidiary ifthat designation would not cause a Default.  Ifa Restricted
Subsidiary is designated as an Unrestricted Subsidiary, the aggregate fair
market value ofall outstanding Investments

 

58

 

owned by the Issuer and the
Restricted Subsidiaries in the Subsidiary properly designated will be deemed to
be an Investment made as ofthe time ofthe designation and will reduce the amount available for
Restricted Payments pursuant to the first paragraph of Section 4.7 or
Permitted Investments, as determined by the Issuer.  That designation will only be permitted ifthe Investment would be permitted at that time and if the
Restricted Subsidiary otherwise meets the definition of an Unrestricted Subsidiary.  The Board of Directors may redesignate any
Unrestricted Subsidiary to be a Restricted Subsidiary ifthe
redesignation would not cause a Default.

 

SECTION 4.19                                            Further
Instruments and Acts.

 

Upon request by the Trustee, the Issuer shall
execute and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out more effectively the purposes of
this Indenture.

 

SECTION 4.20                                            Limitation
on Business Activities of Barrington Broadcasting Capital Corporation.

 

The Co-Issuer will not hold any material
assets, become liable for any material obligations, engage in any trade or
business, or conduct any business activity, other than (a) as necessary to
maintain its corporate existence, (b) the issuance of Equity Interests to
the Issuer or any Wholly Owned Restricted Subsidiary, the incurrence of
Indebtedness as a co-obligor or guarantor of Indebtedness incurred by the
Issuer, including the Notes, that is permitted to be incurred by the Issuer
under the covenant pursuant to Section 4.9 and (c) activities incidental
thereto.

 

So long as the Issuer or any successor
obligor under the Notes is a limited liability company, partnership or trust
there shall be a co-issuer of the Notes that is a Wholly Owned Restricted
Subsidiary of the Issuer and that is a corporation organized and existing under
the laws of the United States or any state thereof or the District of Columbia.

 

SECTION 4.21                                                 Anti-Layering.

 

The Issuer will not incur, create, issue,
assume, guarantee or otherwise become liable for any Indebtedness that is
subordinate or junior in right of payment to any Senior Debt of the Issuer and
senior in any respect in right of payment to the Notes.  No Guarantor will incur, create, issue, assume,
guarantee or otherwise become liable for any Indebtedness that is subordinate
or junior in right of payment to the Senior Debt of such Guarantor and senior
in any respect in right of payment to such Guarantor’s Guarantee.

 

SECTION 4.22                                                 Sale
and Leaseback Transactions.

 

The Issuer will not, and will not permit any
of the Restricted Subsidiaries to, enter into any sale and leaseback
transaction; provided that the Issuer or any
Guarantor may enter into a sale and leaseback transaction if:

 

59

 

(1)                                  the Issuer or that
Guarantor could have (a) incurred Indebtedness in an amount equal to the
Attributable Debt relating to such sale and leaseback transaction and (b)
incurred a Lien to secure such Indebtedness pursuant to Section 4.12;

 

(2)                                  the gross cash
proceeds of that sale and leaseback transaction are at least equal to the fair
market value, as determined in good faith by the Board of Directors and set
forth in an Officer’s Certificate delivered to the Trustee, of the property
that is the subject of that sale and leaseback transaction; and

 

(3)                                  the transfer of
assets in that sale and leaseback transaction is permitted by, and the Issuer
or such Guarantor applies the proceeds of such transaction in compliance with Section 4.10.

 

ARTICLE
V

 

SUCCESSORS

 

SECTION 5.1                                                  Consolidation,
Merger, Conveyance, Transfer or Lease.

 

The Issuer may not, directly or
indirectly:  (1) consolidate or merge
with or into another Person (whether or not Issuer is the surviving corporation);
or (2) sell, assign, transfer, convey or otherwise dispose of all or
substantially all of the properties or assets of the Issuer and the Restricted
Subsidiaries taken as a whole, in one or more related transactions, to another
Person; unless:

 

(1)                                  either:  (a) the Issuer is the surviving
corporation; or (b) the Person formed by or surviving any such
consolidation or merger (if other than the Issuer) or to which such sale,
assignment, transfer, conveyance or other disposition has been made is a
corporation organized or existing under the laws of the United States, any
state of the United States or the District of Columbia;

 

(2)                                  the Person formed by
or surviving any such consolidation or merger (if other than the Issuer) or the
Person to which such sale, assignment, transfer, conveyance or other
disposition has been made assumes all the obligations of the Issuer under the
Notes, this Indenture and the Registration Rights Agreement pursuant to
agreements reasonably satisfactory to the Trustee;

 

(3)                                  immediately after
such transaction no Default or Event of Default exists; and

 

(4)                                  the Issuer or the
Person formed by or surviving any such consolidation or merger (if other than
the Issuer), or to which such sale, assignment, transfer, conveyance or other
disposition has been made will, on the date of such transaction after giving
pro forma effect thereto and any related financing transactions as if the same
had occurred at the beginning of the applicable four-quarter period, be
permitted to incur at least $1.00 of additional Indebtedness pursuant to the
Leverage Ratio test set forth in the first paragraph of Section 4.9.

 

60

 

The preceding clause (4) will not
prohibit:  (a) a merger between the
Issuer and one of the Issuer’s Wholly Owned Subsidiaries or (b) a merger
between the Issuer and one of the Issuer’s Affiliates incorporated solely for
the purpose of reincorporating in another state of the United States.

 

In addition, the Issuer may not, directly or
indirectly, lease all or substantially all of its properties or assets, in one
or more related transactions, to any other Person.

 

This Section 5.1 will not apply to a
sale, assignment, transfer, conveyance or other disposition of assets between
or among the Issuer and the Restricted Subsidiaries.

 

SECTION 5.2                                                  Successor
Corporation Substituted.

 

Upon any consolidation or merger, or any
sale, assignment, transfer, lease, conveyance or other disposition of all or
substantially all of the assets of the Issuer in accordance with Section 5.1
hereof, the successor corporation formed by such consolidation or into or with
which the Issuer is merged or to which such sale, assignment, transfer, lease,
conveyance or other disposition is made shall succeed to, and be substituted
for (so that from and after the date of such consolidation, merger, sale,
lease, conveyance or other disposition, the provisions of this Indenture referring
to the “Issuer” shall refer instead to the successor corporation and not to the
Issuer), and shall exercise every right and power of, the Issuer under this
Indenture with the same effect as if such successor Person had been named as
the Issuer herein.

 

ARTICLE
VI

 

DEFAULTS
AND REMEDIES

 

SECTION 6.1                                                  Events
of Default.

 

Each of the following constitutes an “Event of Default”:

 

(1)                                  default
for 30 days in the payment when due of interest on, or Additional Interest with
respect to, the Notes (whether or not prohibited by the subordination provisions
of this Indenture);

 

(2)                                  default
in payment when due of principal of, or premium, if any, on the Notes (whether
or not prohibited by the subordination provisions of this Indenture);

 

(3)                                  failure
by the Issuers to comply with the provisions of Section 4.14;

 

(4)                                  failure
by the Issuers for 30 days after written notice of the failure has been given
to the Issuer or the Co-Issuer by the Trustee or by the Holders of at least 25%
of the aggregate principal amount of the Notes then outstanding to comply with
any of their obligations under Sections 4.7, 4.9 or 4.10,
inclusive (in each case, other than a failure to purchase Notes which will constitute
an Event of Default under clause (2) above);

 

61

 

(5)                                  failure
by the Issuer or any of the Restricted Subsidiaries in the performance of, or
breaches any covenant, warranty or other agreement contained in, this Indenture
(other than a default in the performance or breach of a covenant, warranty or
agreement which is specifically dealt with in clauses (1), (2), (3) or (4)
above) and such default or breach continues for a period of 60 days after
written notice of the failure or breach has been given to the Issuer by the
Trustee or by the Holders of at least 25% of the aggregate principal amount of
the Notes then outstanding;

 

(6)                                  default
under any mortgage, indenture or instrument under which there may be issued or
by which there is secured or evidenced any Indebtedness for money borrowed by
the Issuer or any Restricted Subsidiary (or the payment of which is guaranteed
by the Issuer or any Restricted Subsidiary), whether such Indebtedness or
guarantee now exists or is created after the date hereof, if that default (a) is
caused by a failure to pay principal or any such Indebtedness at the final
stated maturity thereof or (b) results in the acceleration of any such
Indebtedness prior to its express maturity, and, in each case, the principal
amount of such Indebtedness, together with the principal amount of any other
such Indebtedness described under clauses (a) and (b) above, aggregate
$5.0 million or more;

 

(7)                                  the
failure by the Issuer or any Restricted Subsidiary to pay final judgments
aggregating in excess of $5.0 million not covered by insurance, which judgments
are not paid, discharged or stayed for a period of 60 days;

 

(8)                                  any
Guarantee of  a Significant Subsidiary
shall be held in any judicial proceeding to be unenforceable or invalid or
shall cease for any reason to be in full force and effect or any Guarantor, or
Person acting on behalf of any Guarantor which is a Significant Subsidiary,
shall deny or disaffirm its obligations under its Guarantee, other than by
reason of the release of the Guarantee(s) in accordance with the terms of this
Indenture; and

 

(9)                                  (i)  the Issuer, the Co-Issuer, any Restricted
Subsidiary that is a Significant Subsidiary or any group of Restricted
Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary,
pursuant to or within the meaning of any Bankruptcy Law:

 

(a)                                  commences
a voluntary case,

 

(b)                                 consents
to the entry of an order for relief against it in an involuntary case,

 

(c)                                  consents
to the appointment of a custodian of it or for all or substantially all of its
property,

 

(d)                                 makes
a general assignment for the benefit of its creditors, or

 

(e)                                  generally
is not paying its debts as they become due;

 

62

 

(ii)               a court of competent jurisdiction enters
an order or decree under any Bankruptcy Law that:

 

(a)                                  is
for relief against the Issuer, the Co-Issuer or any Restricted Subsidiary that
is a Significant Subsidiary or any group of Restricted Subsidiaries that, taken
together, would constitute a Significant Subsidiary, in an involuntary case;

 

(b)                                 appoints
a custodian of the Issuer, the Co-Issuer or any Restricted Subsidiary that is a
Significant Subsidiary or any group of Restricted Subsidiaries that, taken
together, would constitute a Significant Subsidiary or for all or substantially
all of the property of the Issuer, the Co-Issuer or any of its Restricted
Subsidiaries; or

 

(c)                                  orders
the liquidation of the Issuer, the Co-Issuer or any Restricted Subsidiary that
is a Significant Subsidiary or any group of Restricted Subsidiaries that, taken
together, would constitute a Significant Subsidiary and the order or decree remains
unstayed and in effect for 60 consecutive days.

 

SECTION 6.2                                                  Acceleration.

 

If an Event of Default (other than an Event
of Default specified in clause (9) above with respect to the Issuer) shall
occur and be continuing, then and in every such case the Trustee or the Holders
of not less than 25% in aggregate principal amount of the then outstanding
Notes may declare the principal of the Notes and any accrued interest on the
Notes to be due and payable by a notice in writing to the Issuer and the
Trustee specifying the respective Event of Default and that it is a “notice of
acceleration” (the “Acceleration Notice”),
and the same shall become immediately due and payable. Upon such declaration of
acceleration, the aggregate principal of and accrued and unpaid interest on the
outstanding Notes shall immediately become due and payable.  After such acceleration, but before a judgment
or decree based on acceleration, the Holders of a majority in aggregate principal
amount of such outstanding Notes may, under certain circumstances, rescind and
annul such acceleration if all Events of Default, other than the nonpayment of
accelerated principal of or interest on such Notes, have been cured or waived
as provided in this Indenture.

 

The Holders of a majority in aggregate
principal amount of the Notes then outstanding by written notice to the Trustee
may on behalf of the Holders of all of the Notes waive any existing Default or
Event of Default and its consequences under this Indenture:

 

(1)               if
the rescission would not conflict with any judgment or decree;

 

(2)               if
all existing Events of Default have been cured or waived except nonpayment of
principal or interest that has become due solely because of the acceleration;

 

63

 

(3)               to
the extent the payment of such interest is lawful, interest on overdue installments
of interest and overdue principal, which has become due otherwise than by such
declaration of acceleration, has been paid;

 

(4)               if
the Issuers have paid the Trustee its reasonable compensation and reimbursed
the Trustee for its expenses, disbursements and advances; and

 

(5)               in
the event of the cure or waiver of an Event of Default of the type described in
clause (9) of Section 6.1, the Trustee shall have received an Officer’s
Certificate and an opinion of counsel that such Event of Default has been cured
or waived.

 

No such rescission shall affect any
subsequent Default or impair any right consequent thereto.

 

In the event of a declaration of acceleration
of the Notes solely because an Event of Default has occurred and is continuing
as a result of the acceleration of any Indebtedness described in clause (6) of Section
6.1, the declaration of acceleration of the Notes shall be automatically
annulled if the holders of any Indebtedness described in clause (6) of Section
6.1 triggering such Event of Default shall have rescinded the declaration
of acceleration in respect of such Indebtedness within 30 days after the date
of the declaration of acceleration with respect thereto and if (1) the annulment
of the acceleration of the Notes would not conflict with any judgment or decree
of a court of competent jurisdiction and (2) all existing Events of Default,
except nonpayment of principal or interest on the Notes that became due solely
because of the acceleration of the Notes, have been cured or waived.

 

If an Event of Default specified in clause
(9) above with respect to the Issuer occurs and is continuing, then all unpaid
principal of, and premium, if any, and accrued and unpaid interest and
Additional Interest, if any, on all of the outstanding Notes shall ipso facto become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holder of the
Notes.

 

No Holder of any Note will have any right to
institute any proceeding with respect to this Indenture or for any remedy
thereunder, unless such Holder shall have previously given to the Trustee
written notice of a continuing Event of Default and unless also the Holders of
at least 25% in aggregate principal amount of the outstanding Notes shall have
made written request, and offered reasonable indemnity, to the Trustee to
institute such proceeding as Trustee, and the Trustee shall not have received
from the Holders of a majority in aggregate principal amount of the outstanding
Notes a direction inconsistent with such request and shall have failed to
institute such proceeding within 60 days. 
Such limitations do not apply, however, to a suit instituted by a Holder
of a Note for enforcement of payment of the principal of (and premium, if any)
or interest on such Note on or after the respective due dates expressed in such
Note.

 

In the case of any Event of Default occurring
by reason of any willful action (or inaction) taken (or not taken) by or on
behalf of the Issuers with the intention of avoiding payment of the premium
that the Issuers would have had to pay if the Issuers then had elected to redeem
the

 

64

 

Notes pursuant to Section
3.7, an equivalent premium shall also become and be immediately due and
payable to the extent permitted by law upon the acceleration of the Notes.

 

SECTION 6.3                                                  Other
Remedies.

 

If an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy to collect the payment of
principal, premium, if any, interest and Additional Interest, if any, on the
Notes or to enforce the performance of any provision of the Notes or this
Indenture.

 

The Trustee may maintain a proceeding even if
it does not possess any of the Notes or does not produce any of them in the
proceeding.  A delay or omission by the
Trustee or any Holder in exercising any right or remedy accruing upon an Event
of Default shall not impair the right or remedy or constitute a waiver of or
acquiescence in the Event of Default. 
All remedies are cumulative to the extent permitted by law.

 

SECTION 6.4                                                  Waiver
of Past Defaults.

 

The Holders of a majority in aggregate
principal amount of the Notes then outstanding by written notice to the Trustee
may on behalf of the Holders of all of the Notes waive any existing Default or
Event of Default and its consequences under this Indenture except a continuing
Default or Event of Default in the payment of interest on, or the principal of,
the Notes (other than as a result of an acceleration), which shall require the
consent of all of the Holders of the Notes then outstanding.

 

SECTION 6.5                                                  Control
by Majority.

 

The Holders of a majority in aggregate
principal amount of the then outstanding Notes may direct the time, method and
place of conducting any proceeding for exercising any remedy available to the
Trustee or exercising any trust power conferred on it.  However, (i) the Trustee may refuse to follow
any direction that conflicts with law or this Indenture, that the Trustee determines
may be unduly prejudicial to the rights of other Holders or that may involve
the Trustee in personal liability, and (ii) the Trustee may take any other
action deemed proper by the Trustee which is not inconsistent with such
direction.  In case an Event of Default
shall occur (which shall not be cured), the Trustee will be required, in the
exercise of its power, to use the degree of care of a prudent man in the
conduct of his own affairs. 
Notwithstanding any provision to the contrary in this Indenture, the
Trustee is under no obligation to exercise any of its rights or powers under
this Indenture at the direction or request of any Holder, unless such Holder
shall offer to the Trustee security and indemnity satisfactory to it against
any loss, liability or expense.

 

SECTION 6.6                                                  Limitation
on Suits.

 

A Holder may pursue a remedy with respect to
this Indenture or the Notes only if:

 

(a)                                  the
Holder gives to the Trustee written notice of a continuing Event of Default or
the Trustee receives such notice from the Issuer;

 

65

(b)                                 the
Holders of at least 25% in aggregate principal amount of the then outstanding
Notes make a written request to the Trustee to pursue the remedy;

 

(c)                                  such
Holder or Holders offer and, if requested, provide to the Trustee indemnity or
security reasonably satisfactory to the Trustee against any loss, liability or
expense;

 

(d)                                 the
Trustee does not comply with the request within 60 days after receipt of the
request and the offer and, if requested, the provision of such indemnity or
security; and

 

(e)                                  during
such 60-day period the Holders of a majority in aggregate principal amount of
the then outstanding Notes do not give the Trustee a direction inconsistent
with the request.

 

A Holder may not use this Indenture to
prejudice the rights of another Holder or to obtain a preference or priority
over another Holder.

 

SECTION 6.7                                                  Rights
of Holders of Notes to Receive Payment.

 

Notwithstanding any other provision of this
Indenture, the right of any Holder to receive payment of principal, premium, if
any, and interest on or after the respective due dates expressed in the Note
(including in connection with an offer to purchase), or to bring suit for the
enforcement of any such payment on or after such respective dates, shall not be
impaired or affected without the consent of such Holder.

 

SECTION 6.8                                                  Collection
Suit by Trustee.

 

If an Event of Default specified in Section
6.1(1) or (2) hereof occurs and is continuing, the Trustee is
authorized to recover judgment in its own name and as Trustee of an express
trust against the Issuer for the whole amount of principal of, premium and
interest remaining unpaid on the Notes and interest on overdue principal and,
to the extent lawful, interest and such further amount as shall be sufficient
to cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel.

 

SECTION 6.9                                                  Trustee
May File Proofs of Claim.

 

The Trustee is authorized to file such proofs
of claim and other papers or documents as may be necessary or advisable in
order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel) and the Holders allowed in any judicial proceedings relative to
the Issuer (or any other obligor upon the Notes), its creditors or its property
and shall be entitled and empowered to collect, receive and distribute any
money or other securities or property payable or deliverable upon the conversion
or exchange of the Notes or on any such claims and any custodian in any such
judicial proceeding is hereby authorized by each Holder to make such payments
to the Trustee, and in the event that the Trustee shall consent to the making
of such payments directly

 

66

 

to the Holders, to pay to the
Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.7 hereof.  To the extent that the payment of any such
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.7
hereof out of the estate in any such proceeding, shall be denied for any
reason, payment of the same shall be secured by a Lien on, and shall be paid
out of, any and all distributions, dividends, money, securities and other
properties that the Holders may be entitled to receive in such proceeding
whether in liquidation or under any plan of reorganization or arrangement or
otherwise.  Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to or accept
or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder, or
to authorize the Trustee to vote in respect of the claim of any Holder in any
such proceeding.

 

SECTION 6.10                                            Priorities.

 

If the Trustee collects any money or property
pursuant to this Article VI, it shall pay out the money and property in the
following order:

 

First:  to the Trustee, its agents and attorneys for
amounts due under Section 7.7 hereof, including payment of all
reasonable compensation, expense and liabilities incurred, and all advances
made, by the Trustee and the costs and expenses of collection;

 

Second:  to Holders of Notes for amounts due and
unpaid on the Notes for principal, premium, if any, and interest and Additional
Interest ratably, without preference or priority of any kind, according to the
amounts due and payable on the Notes for principal, premium, if any, and
interest and Additional Interest, respectively;

 

Third:  without duplication, to the Holders for any
other Obligations owing to the Holders under this Indenture and the Notes; and

 

Fourth:  to the Issuer or to such party as a court of
competent jurisdiction shall direct.

 

The Trustee may fix a record date and payment
date for any payment to Holders pursuant to this Section 6.10.

 

SECTION 6.11                                            Undertaking
for Costs.

 

In any suit for the enforcement of any right
or remedy under this Indenture or in any suit against the Trustee for any
action taken or omitted by it as a Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay
the costs of the suit, and the court in its discretion may assess reasonable
costs, including reasonable attorneys’ fees and expenses, against any party
litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. 
This Section 6.11 does not apply to a suit by the Trustee, a suit
by a Holder pursuant to Section 6.7 hereof, or a suit by Holders of more
than 10% in principal amount of the then outstanding Notes.

 

67

 

ARTICLE
VII

 

TRUSTEE

 

SECTION 7.1                                                  Duties
of Trustee.

 

(a)                                  If an Event of
Default has occurred and is continuing, the Trustee shall exercise such of the
rights and powers vested in it by this Indenture and use the same degree of
care and skill in its exercise, as a prudent person would exercise or use under
the circumstances in the conduct of his or her own affairs.

 

(b)                                 Except
during the continuance of an Event of Default:

 

(i)                                     the duties of the
Trustee shall be determined solely by the express provisions of this Indenture
or the TIA and the Trustee need perform only those duties that are specifically
set forth in this Indenture or the TIA and no others, and no implied covenants
or obligations shall be read into this Indenture against the Trustee and
permissive rights and powers of the Trustee hereunder shall not constitute its
performance duties; and

 

(ii)                                  in the absence of bad
faith on its part, the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture (but need not confirm or investigate the
accuracy of mathematical calculations or other facts stated therein).

 

However, the
Trustee shall examine the certificates and opinions furnished to it to
determine whether or not they conform to the requirements of this Indenture.

 

(c)                                  The Trustee may not
be relieved from liabilities for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that:

 

(i)                                     this paragraph
does not limit the effect of paragraph (b) of this Section 7.1;

 

(ii)                                  the Trustee shall not
be liable for any error of judgment made in good faith by an officer of the
Trustee, unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts; and

 

(iii)                               the Trustee shall not be
liable with respect to any action it takes or omits to take in good faith in
accordance with a direction received by it pursuant to Section 6.5
hereof.

 

(d)                                 Whether or not therein
expressly so provided, every provision of this Indenture that in any way
relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section
7.1.

 

(e)                                  No provision of this
Indenture shall require the Trustee to expend or risk its own funds or incur
any liability.  The Trustee shall be
under no obligation to exercise any of its rights

 

68

 

and powers under this Indenture
at the request of any Holders, unless such Holder shall have offered to the
Trustee security and indemnity satisfactory to it against any loss, liability
or expense.

 

(f)                                    The Trustee shall
not be liable for interest on any money received by it except as the Trustee
may agree in writing with the Issuers. 
Money held in trust by the Trustee need not be segregated from other
funds except to the extent required by law.

 

SECTION 7.2                                                  Rights
of Trustee.

 

(a)                                  The Trustee may
conclusively rely and shall be fully protected in acting or refraining from
acting on any document (whether in original or facsimile form) believed by it
to be genuine and to have been signed or presented by the proper Person.  The Trustee need not investigate any fact or
matter stated in the document.

 

(b)                                 Before the Trustee
acts or refrains from acting, it may require an Officer’s Certificate or an
Opinion of Counsel or both.  The Trustee
shall not be liable for any action it takes or omits to take in good faith in reliance
on such Officer’s Certificate or Opinion of Counsel.  Prior to taking, suffering or admitting any
action, the Trustee may consult with counsel of the Trustee’s own choosing and
the Trustee shall be fully protected from liability in respect of any action
taken, suffered or omitted by it hereunder in good faith and in conclusive
reliance on the advice or opinion of such counsel.

 

(c)                                  The Trustee may act
through its attorneys and agents and shall not be responsible for the
misconduct or negligence of any attorney or agent appointed with due care.

 

(d)                                 The Trustee shall not
be liable for any action it takes or omits to take in good faith that it
believes to be authorized or within the rights or powers conferred upon it by
this Indenture.  Any request or direction
of the Issuers mentioned herein shall be sufficiently evidenced by an Officer’s
Certificate and any resolution of the Board of Directors may be sufficiently
evidenced by a Board Resolution. 
Whenever in the administration of this Indenture the Trustee shall deem
it desirable that a matter be proved or established prior to taking, suffering
or omitting any action hereunder, the Trustee (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its part, conclusively
rely upon an Officer’s Certificate.

 

(e)                                  Unless otherwise
specifically provided in this Indenture, any demand, request, direction or
notice from the Issuers or a Guarantor shall be sufficient if signed by an
officer of the Issuers or such Guarantor.

 

(f)                                    The Trustee shall
be under no obligation to exercise any of the rights or powers vested in it by
this Indenture at the request or direction of any of the Holders unless such
Holders shall have offered to the Trustee reasonable security or indemnity
satisfactory to the Trustee against the costs, expenses and liabilities that
might be incurred by it in compliance with such request or direction.

 

69

 

(g)                                 The Trustee shall not
be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or documents, but the Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters as it
may see fit, and, if the Trustee shall determine to make such further inquiry
or investigation, it shall be entitled to examine during normal business hours
the books, records and premises of the Issuers, personally or by agent or
attorney at the sole cost of the Issuers, and shall incur no liability or additional
liability of any kind by reason of such inquiry or investigation.

 

(h)                                 The rights,
privileges, protections and benefits given to the Trustee, including, without
limitation, its rights to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and to each
agent, custodian and other Persons employed to act hereunder.

 

(i)                                     The Trustee may
request that the Issuers deliver Officer’s Certificates setting forth the names
of individuals and/or titles of officers authorized at such time to take
specified actions pursuant to this Indenture, which Officer’s Certificates may
be signed by any person authorized to sign an Officer’s Certificate, including
any person specified as so authorized in any such certificate previously
delivered and not superseded.

 

(j)                                     The Trustee shall
not be deemed to have notice or be charged with knowledge of any Default or
Event of Default unless the Trustee shall have received from the Issuers or any
other obligor upon the Notes or from any Holder written notice thereof at its
address set forth in Section 12.2 hereof, and such notice references the
Notes and this Indenture.  In the absence
of any such notice, the Trustee may conclusively assume that no such Default or
Event of Default exists.

 

(k)                                  In no event shall the
Trustee be responsible or liable for special, indirect, or con-sequential loss
or damage of any kind whatsoever (including, but not limited to, loss of
profit) irrespective of whether the Trustee has been advised of the likelihood
of such loss or damage and regardless of the form of action.

 

(l)                                     The Trustee shall
not be required to give any bond or surety in respect of the performance of its
powers and duties hereunder.

 

(m)                               Except with respect to Sections
4.1 and 4.4, the Trustee shall have no duty to inquire as to the
performance of the Issuers with respect to the covenants contained in Article
IV. Delivery of reports, information and documents to the Trustee under Article
IV (other than Section 4.4) is for informational purposes only and the Trustee
shall have no duty to review the same regarding the Issuers’ performance of their
obligations hereunder.

 

SECTION 7.3                                                  Individual
Rights of Trustee.

 

The Trustee in its individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with
the Issuers or any Affiliate of the Issuers with the same rights it would have
if it were not Trustee.  However, in the
event that the Trustee acquires any

 

70

 

conflicting interest it must
eliminate such conflict within 90 days, apply to the Commission for permission
to continue as Trustee or resign.  Any
Agent may do the same with like rights and duties.  The Trustee is also subject to Sections
7.10 and 7.11 hereof.

 

SECTION 7.4                                                  Trustee’s
Disclaimer.

 

The Trustee shall not be responsible for and
makes no representation as to the validity or adequacy of this Indenture or the
Notes, it shall not be accountable for the Issuer’s use of the proceeds from
the Notes or any money paid to the Issuer’s or upon the Issuer’s direction
under any provision of this Indenture, it shall not be responsible for the use
or application of any money received by any Paying Agent other than the
Trustee, and it shall not be responsible for any statement or recital herein or
any statement in the Notes, any statement or recital on any Officer’s Certificate
delivered to the Trustee pursuant to this Indenture other than its certificate
of authentication.

 

SECTION 7.5                                                  Notice
of Defaults.

 

If a Default or Event of Default occurs and
is continuing and if it is actually known to an officer of the Trustee directly
responsible for the administration of this Indenture, the Trustee shall mail to
Holders a notice of the Default or Event of Default within 90 days after it
occurs.  Except in the case of a Default
or Event of Default in payment of principal of, premium, if any, or interest or
Additional Interest on any Note, the Trustee may withhold the notice if and so
long as the board of directors, the executive committee or a trust committee of
directors or Responsible Officers of the Trustee in good faith determines that
withholding the notice is in the interests of the Holders.

 

SECTION 7.6                                                  Reports
by Trustee to Holders of the Notes.

 

Within 60 days after each May 15 beginning
with May 15, 2007, and for so long as Notes remain outstanding, the Trustee
shall mail to the Holders a brief report dated as of such reporting date that
complies with TIA § 313(a) (but if no event described in TIA § 313(a)
has occurred within the twelve months preceding the reporting date, no report
need be transmitted).  The Trustee also
shall comply with TIA § 313(b).  The
Trustee shall also transmit by mail all reports as required by TIA
§ 313(c).

 

A copy of each report at the time of its
mailing to the Holders shall be mailed to the Issuer and filed with the Commission
and each stock exchange on which the Issuer has informed the Trustee in writing
the Notes are listed in accordance with TIA § 313(d).  The Issuer shall promptly notify the Trustee
when the Notes are listed on any stock exchange and of any delisting thereof.

 

SECTION 7.7                                                  Compensation
and Indemnity.

 

The Issuers shall pay to the Trustee from
time to time compensation for its acceptance of this Indenture and services
hereunder as agreed upon in writing.  The
Trustee’s compensation shall not be limited by any law on compensation of a
trustee of an express trust.  The Issuers
shall reimburse the Trustee promptly upon request for all reasonable disbursements,
advances

 

71

 

and expenses incurred or made
by it in addition to the compensation for its services.  Such expenses shall include the reasonable
compensation, disbursements and expenses of the Trustee’s agents and counsel.

 

The Issuers and the Guarantors, jointly and
severally, shall indemnify the Trustee (which for purposes of this Section
7.7 shall include its officers, directors, employees and agents) against
any and all claims, damage, losses, liabilities or expenses incurred by it
arising out of or in connection with the acceptance or administration of its
duties under this Indenture, including the costs and expenses of enforcing this
Indenture against the Issuers (including this Section 7.7) and defending
itself against any claim (whether asserted by the Issuers or any Holder or any
other Person) or liability in connection with the exercise or performance of
any of its powers or duties hereunder except to the extent any such loss,
claim, damage, liability or expense may be attributable to its negligence or
bad faith.  The Trustee shall notify the
Issuer promptly of any claim for which it may seek indemnity.  Failure by the Trustee to so notify the
Issuers shall not relieve the Issuers of their obligations hereunder.  The Issuers shall defend the claim and the
Trustee shall cooperate in the defense. 
The Trustee may have separate counsel and the Issuers shall pay the
reasonable fees and expenses of one such counsel.  The Issuers need not pay for any settlement
made without its consent, which consent shall not be unreasonably withheld.

 

The obligations of the Issuers and the Guarantors
under this Section 7.7 shall survive the satisfaction and discharge of
this Indenture or the resignation or removal of the Trustee.

 

To secure the Issuers’ payment obligations in
this Section 7.7, the Trustee shall have a Lien prior to the Notes on all
money or property held or collected by the Trustee, except that held in trust
to pay principal or interest, if any, on particular Notes.  Such Lien shall survive the satisfaction and
discharge of this Indenture and the resignation or removal of the Trustee.

 

When the Trustee incurs expenses or renders
services after an Event of Default specified in Section 6.1(9) hereof
occurs, the expenses and the compensation for the services (including the fees
and expenses of its agents and counsel) are intended to constitute expenses of
administration under any Bankruptcy Law.

 

The Trustee shall comply with the provisions
of TIA § 313(b)(2) to the extent applicable.

 

SECTION 7.8                                                  Replacement
of Trustee.

 

A resignation or removal of the Trustee and
appointment of a successor Trustee shall become effective only upon the
successor Trustee’s acceptance of appointment as provided in this Section
7.8.

 

The Trustee may resign in writing at any time
and be discharged from the trust hereby created by so notifying the
Issuer.  The Holders of a majority in
principal amount of the then outstanding Notes may remove the Trustee by so
notifying the Trustee and the Issuer in writing.  The Issuer may remove the Trustee if:

 

(a)                                  the
Trustee fails to comply with Section 7.10 hereof;

 

72

 

(b)                                 the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

 

(c)                                  a
custodian or public officer takes charge of the Trustee or its property; or

 

(d)                                 the
Trustee becomes incapable of acting.

 

If the Trustee resigns or is removed or if a
vacancy exists in the office of Trustee for any reason, the Issuer shall
promptly appoint a successor Trustee. 
Within one year after the successor Trustee takes office, the Holders of
a majority in principal amount of the then outstanding Notes may appoint a
successor Trustee to replace the successor Trustee appointed by the Issuer.

 

If a successor Trustee does not take office
within 60 days after the retiring Trustee resigns or is removed, the retiring
Trustee, the Issuer or the Holders of at least 10% in principal amount of the
then outstanding Notes may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

 

If the Trustee, after written request by any
Holder who has been a Holder for at least six months, fails to comply with Section
7.10 hereof, such Holder may petition any court of competent jurisdiction
for the removal of the Trustee and the appointment of a successor Trustee.

 

A successor Trustee shall deliver a written
acceptance of its appointment to the retiring Trustee and to the Issuer.  Thereupon, the resignation or removal of the
retiring Trustee shall become effective, and the successor Trustee shall have
all the rights, powers and the duties of the Trustee under this Indenture.  The successor Trustee shall mail a notice of
its succession to the Holders.  The
retiring Trustee shall promptly transfer all property held by it as Trustee to
the successor Trustee, provided that
all sums owing to the Trustee hereunder have been paid and subject to the Lien
provided for in Section 7.7 hereof. 
Notwithstanding replacement of the Trustee pursuant to this Section
7.8, the Issuers’ and the Guarantors’ obligations under Section 7.7
hereof shall continue for the benefit of the retiring Trustee.

 

SECTION 7.9                                                  Successor
Trustee by Merger, Etc.

 

If the Trustee or any Agent consolidates,
merges or converts into, or transfers all or substantially all of its corporate
trust business to, another corporation, the successor corporation without any
further act shall be the successor Trustee or any Agent, as applicable.

 

SECTION 7.10                                            Eligibility;
Disqualification.

 

There shall at all times be a Trustee
hereunder that is a corporation organized and doing business under the laws of
the United States of America or of any state thereof that is authorized under
such laws to exercise corporate trustee power and that is subject to
supervision or examination by federal or state authorities.  The Trustee together with its affiliates
shall at all times have a combined capital surplus of at least $50.0 million as
set forth in its most recent annual report of condition.

 

73

 

This Indenture shall always have a Trustee
who satisfies the requirements of TIA §§ 310(a)(l), (2) and (5).  The Trustee is subject to TIA § 310(b)
including the provision in § 310(b)(1); provided
that there shall be excluded from the operation of TIA § 310(b)(1) any indenture
or indentures under which other securities, or conflicts of interest or
participation in other securities, of the Issuer or the Guarantors are
outstanding if the requirements for exclusion set forth in TIA § 310(b)(1)
are met.

 

SECTION 7.11                                            Preferential
Collection of Claims Against the Issuers.

 

The Trustee is subject to TIA § 311(a),
excluding any creditor relationship listed in TIA § 311(b).  A Trustee who has resigned or been removed
shall be subject to TIA § 311(a) to the extent indicated therein.

 

SECTION 7.12                                            Trustee’s
Application for Instructions from the Issuers.

 

Any application by the Trustee for written
instructions from the Issuers may, at the option of the Trustee, set forth in
writing any action proposed to be taken or omitted by the Trustee under this
Indenture and the date on and/or after which such action shall be taken or such
omission shall be effective.  The Trustee
shall not be liable for any action taken by, or omission of, the Trustee in
accordance with a proposal included in such application on or after the date
specified in such application (which date shall not be less than twenty
Business Days after the date any officer of the Issuers actually receives such
application, unless any such officer shall have consented in writing to any earlier
date) unless prior to taking any such action (or the effective date in the case
of an omission), the Trustee shall have received written instructions in
response to such application specifying the action to be taken or omitted.

 

ARTICLE
VIII

 

DEFEASANCE;
DISCHARGE OF THE INDENTURE

 

SECTION 8.1                                                  Option
to Effect Legal Defeasance or Covenant Defeasance.

 

The Issuers may, at the option of its Board
of Directors and evidenced by a Board Resolution set forth in Officer’s Certificates,
at any time, elect to have either Section 8.2 or 8.3 hereof
applied to all outstanding Notes upon compliance with the conditions set forth
below in this Article VIII.

 

SECTION 8.2                                                  Legal
Defeasance.

 

Upon the Issuers’ exercise under Section
8.1 hereof of the option applicable to this Section 8.2, The Issuers
shall, subject to the satisfaction of the conditions set forth in Section
8.4 hereof, be deemed to have been discharged from their obligations with
respect to all outstanding Notes on the date the conditions set forth below are
satisfied (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means that
the Issuers shall be deemed to have paid and discharged the entire Debt
represented by the outstanding Notes, which shall thereafter be deemed to be “outstanding”
only for the purposes of Section 8.5 hereof and the other Sections of
this Indenture referred to in (a) and (b) below, and to have satisfied all of
their other obligations

 

74

 

under such Notes and this Indenture
(and the Trustee, on demand of and at the expense of the Issuers, shall execute
proper instruments acknowledging the same), except for the following provisions
which shall survive until otherwise terminated or discharged hereunder:  (a) the rights of Holders of outstanding
Notes to receive payments in respect of the principal of, premium and
Additional Interest, if any, and interest, if any, on such Notes when such
payments are due from the trust referred to in Section 8.4(1);
(b) the Issuers’ obligations with respect to such Notes under Sections
2.2, 2.3, 2.4, 2.5, 2.6, 2.7, 2.10,
4.1 and 4.2 hereof; (c) the rights, powers, trusts, benefits
and immunities of the Trustee, including without limitation thereunder, under Section
7.7, 8.5 and 8.7 hereof and the Issuers’ obligations in
connection therewith; (d) the Issuers’ rights pursuant to Section 3.7;
and (e) the provisions of this Article VIII.  Subject to compliance with this Article VIII,
the Issuers may exercise their option under this Section 8.2 notwithstanding
the prior exercise of its option under Section 8.3 hereof.

 

SECTION 8.3                                                  Covenant
Defeasance.

 

Upon the Issuers’ exercise under Section
8.1 hereof of the option applicable to this Section 8.3, the Issuers
shall, subject to the satisfaction of the conditions set forth in Section
8.4 hereof, be released from their obligations under the covenants
contained in Sections 4.3, 4.5, 4.7, 4.8, 4.9,
4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16,
4.17, 4.18, 4.19, 4.20, 4.22 and Article
V hereof with respect to the outstanding Notes on and after the date the
conditions set forth below are satisfied (hereinafter, “Covenant
Defeasance”), and the Notes shall thereafter be deemed not “outstanding”
for the purposes of any direction, waiver, consent or declaration or act of
Holders (and the consequences of any thereof) in connection with such
covenants, but shall continue to be deemed “outstanding” for all other purposes
hereunder (it being understood that such Notes shall not be deemed outstanding
for accounting purposes).  For this
purpose, Covenant Defeasance means that, with respect to the outstanding Notes,
the Issuers or any of their Subsidiaries may omit to comply with and shall have
no liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document and such omission to
comply shall not constitute a Default or an Event of Default under Section
6.1 hereof, but, except as specified above, the remainder of this Indenture
and such Notes shall be unaffected thereby. 
In addition, upon the Issuers’ exercise under Section 8.1 hereof
of the option applicable to this Section 8.3, subject to the
satisfaction of the conditions set forth in Section 8.4 hereof, Sections
6.1(4), (5), (6), (7), (8) and (9)
hereof shall not constitute Events of Default; provided
that notwithstanding anything contained herein to the contrary, Section
6.1(9) shall in no event cease to apply prior to the date that is 91 days
following the deposit referred to in Section 8.4(2).

 

Notwithstanding any discharge or release of
any obligations pursuant to Section 8.2 or 8.3, the Issuer’s
obligations in Sections 2.5, 2.6, 2.7, 2.8, 7.7,
8.6 and 8.7 shall survive until the Notes are no longer
outstanding pursuant to the last paragraph of Section 2.8.  After the Notes are no longer outstanding,
the Issuers’ obligations in Sections 7.7, 8.6 and 8.7
shall survive.

 

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SECTION 8.4                                                  Conditions
to Legal or Covenant Defeasance.

 

The following shall be the conditions to the
application of either Section 8.2 or 8.3 hereof to the
outstanding Notes:

 

(1)               the
Issuers must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders of the Notes issued hereunder, cash in U.S. dollars, non-callable
U.S. Government Securities, or a combination of cash in U.S. dollars and
non-callable U.S. Government Securities, in amounts as will be sufficient, in
the opinion of a nationally recognized investment bank, appraisal firm or firm
of independent public accountants, to pay the principal of, or interest and
premium and Additional Interest, if any, on the outstanding Notes issued
hereunder on the stated maturity or on the applicable redemption date, as the
case may be, and the Issuers must specify whether the Notes are being defeased
to maturity or to a particular redemption date;

 

(2)               in
the case of Legal Defeasance, the Issuers have delivered to the Trustee an
opinion of counsel reasonably acceptable to the Trustee confirming that
(a) the Issuers have received from, or there has been published by, the
Internal Revenue Service a ruling or (b) since the date of this Indenture,
there has been a change in the applicable federal income tax law, in either
case to the effect that, and based thereon such opinion of counsel will confirm
that, the Holders of the outstanding Notes will not recognize income, gain or
loss for federal income tax purposes as a result of such Legal Defeasance and
will be subject to federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such Legal Defeasance had
not occurred;

 

(3)               in
the case of Covenant Defeasance, the Issuers have delivered to the Trustee an
opinion of counsel reasonably acceptable to the Trustee confirming that the Holders
of the outstanding Notes will not recognize income, gain or loss for federal
income tax purposes as a result of such Covenant Defeasance and will be subject
to federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Covenant Defeasance had not occurred;

 

(4)               no
Event of Default has occurred and is continuing on the date of such deposit
(other than an Event of Default resulting from the borrowing of funds to be
applied to such deposit);

 

(5)               such
Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under any material agreement or
instrument (other than this Indenture) to which the Issuers or any of the
Restricted Subsidiaries are a party or by which the Issuers or any of the
Restricted Subsidiaries is bound;

 

(6)               the
Issuers must deliver to the Trustee an Officer’s Certificate stating that the
deposit was not made by the Issuers with the intent of preferring the Holders
of Notes over the other creditors of the Issuers or with the intent of
defeating, hindering, delaying or defrauding creditors of the Issuers or
others; and

 

76

 

(7)               the
Issuers must deliver to the Trustee an Officer’s Certificate and an opinion of
counsel (which may be subject to certain qualifications), each stating that all
conditions precedent relating to the Legal Defeasance or the Covenant Defeasance
have been complied with.

 

Notwithstanding the foregoing, the
requirements of clause (2) above with respect to a Legal Defeasance need not be
complied with if all Notes not theretofore delivered to the Trustee for
cancellation (x) have become due and payable or (y) will become due
and payable on the maturity date within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Issuers.

 

SECTION 8.5                  Deposited
Money and U.S. Government Securities to Be Held in Trust; Other Miscellaneous
Provisions.

 

Subject to Section 8.6 hereof, all
money and non-callable U.S. Government Securities (including the proceeds
thereof) deposited with the Trustee (or other qualifying Trustee, collectively
for purposes of this Section 8.5, the “Trustee”)
pursuant to Section 8.4 hereof in respect of the outstanding Notes shall
be held in trust, shall not be invested, and applied by the Trustee, in accordance
with the provisions of such Notes and this Indenture, to the payment, either
directly or through any Paying Agent (including the Issuers or any Subsidiary
acting as Paying Agent) as the Trustee may determine, to the Holders of such
Notes of all sums due and to become due thereon in respect of principal,
premium, if any, and interest and Additional Interest, if any, but such money
need not be segregated from other funds except to the extent required by law.

 

The Issuers shall pay and indemnify the
Trustee against any tax, fee or other charge imposed on or assessed against the
cash or non-callable U.S. Government Securities deposited pursuant to Section
8.4 hereof or the principal and interest received in respect thereof other
than any such tax, fee or other charge which by law is for the account of the
Holders of the outstanding Notes.

 

Anything in this Article VIII to the contrary
notwithstanding, the Trustee shall deliver or pay to the Issuers from time to
time upon the written request of the Issuers and be relieved of all liability
with respect to any money or non-callable U.S. Government Securities held by it
as provided in Section 8.4 hereof which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee (which may be the opinion
delivered under Section 8.4(a) hereof), are in excess of the amount
thereof that would then be required to be deposited to effect an equivalent
Legal Defeasance or Covenant Defeasance.

 

SECTION 8.6                                                  Repayment
to Issuers.

 

Any money deposited with the Trustee or any
Paying Agent, or then held by the Issuers, in trust for the payment of the
principal of, premium, if any, or interest or Additional Interest, if any, on
any Note and remaining unclaimed for one year after such principal and premium,
if any, or interest or Additional Interest has become due and payable shall be
paid to the Issuers on their written request or (if then held by the Issuers)
shall be discharged from such trust; and the Holder

 

77

 

of such Note shall thereafter,
as an unsecured general creditor, look only to the Issuers for payment thereof,
and all liability of the Trustee or such Paying Agent with respect to such
trust money, and all liability of the Issuers as Trustee thereof, shall
thereupon cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Issuers cause to be published once, in the
New York Times and The Wall
Street Journal (national edition), notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less
than 30 days from the date of such notification or publication, any unclaimed
balance of such money then remaining shall be repaid to the Issuers.

 

SECTION 8.7                                                  Reinstatement.

 

If the Trustee or Paying Agent is unable to
apply any United States dollars or non-callable U.S. Government Securities in
accordance with Section 8.2, 8.3 or 8.8 hereof, as the
case may be, by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application,
then the obligations of the Issuers under this Indenture and the Notes shall be
revived and reinstated as though no deposit had occurred pursuant to Section
8.2, 8.3 or 8.8 hereof until such time as the Trustee or
Paying Agent is permitted to apply all such money in accordance with Section
8.2, 8.3 or 8.8 hereof, as the case may be; provided, however, that,
if the Issuers make any payment of principal of, premium, if any, or interest
on any Note following the reinstatement of its obligations, the Issuers shall
be subrogated to the rights of the Holders of such Notes to receive such
payment from the money held by the Trustee or Paying Agent.

 

SECTION 8.8                                                  Discharge.

 

The Issuers and the Guarantors may terminate
the obligations under this Indenture and the Notes when:

 

(1)                                  either:

 

(a)                              all
Notes that have been authenticated, except lost, stolen or destroyed Notes that
have been replaced or paid and Notes for whose payment money has been deposited
in trust and thereafter repaid to the Issuers, have been delivered to the
Trustee for cancellation; or

 

(b)                             all
Notes that have not been delivered to the Trustee for cancellation have become
due and payable by reason of the mailing of a notice of redemption or otherwise
or will become due and payable by reason of the mailing of a notice of
redemption or otherwise within one year and the Issuers or any Guarantor have
irrevocably deposited or caused to be deposited with the Trustee as trust funds
in trust solely for the benefit of the Holders of the Notes, cash in U.S.
dollars, non-callable U.S. Government Securities, or a combination thereof, in
amounts as will be sufficient without consideration of any reinvestment of
interest, to pay and discharge the entire Indebtedness on the Notes not
delivered to the Trustee for cancellation for principal, premium and Additional
Interest, if any, and accrued interest to the date of maturity or redemption;

 

78

 

(2)                                  no
Event of Default has occurred and is continuing on the date of the deposit or
will occur as a result of the deposit and the deposit will not result in a
breach or violation of, or constitute a default under, any other material
instrument to which the Issuers or any Restricted Subsidiary is a party or by
which the Issuers or any Restricted Subsidiary are bound;

 

(3)                                  the
Issuers or any Guarantor have paid or caused to be paid all sums payable by
them under this Indenture; and

 

(4)                                  the
Issuers have delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of the Notes at
maturity or on the redemption date, as the case may be.

 

(5)                                  In
addition, the Issuers must deliver an Officer’s Certificate and an opinion of
counsel (which may be subject to certain qualifications) to the Trustee stating
that all conditions precedent to satisfaction and discharge have been
satisfied.

 

In the case of clause (1) of this Section
8.8, and subject to the next sentence and notwithstanding the foregoing
paragraph, the Issuers’ obligations in Sections 2.5, 2.6, 2.7,
2.8, 4.1, 4.2, 4.15 (as to legal existence of the
Issuers only), 7.7, 8.6 and 8.7 shall survive until the
Notes are no longer outstanding pursuant to the last paragraph of Section
2.8.  After the Notes are no longer
outstanding, the Issuers’ obligations in Sections 7.7, 8.6 and 8.7
shall survive any discharge pursuant to Section 8.8.

 

After such delivery or irrevocable deposit,
the Trustee upon request shall acknowledge in writing the discharge of the
Issuers’ obligations under the Notes and this Indenture except for those surviving
obligations specified above.

 

In connection with a discharge, in the event
the Issuers become insolvent within the applicable preference period after the
date of deposit, monies held for the payment of the Notes may be part of the
bankruptcy estate of the Issuers, disbursement of such monies may be subject to
the automatic stay of the Bankruptcy Code and monies disbursed to Holders may
be subject to disgorgement in favor of the Issuers’ estate.

 

ARTICLE
IX

 

AMENDMENT,
SUPPLEMENT AND WAIVER

 

SECTION 9.1                                                  Without
Consent of Holders of the Notes.

 

Notwithstanding Section 9.2,
without the consent of any Holders, the Issuer, the Co-Issuer, the Guarantors,
if any, and the Trustee, at any time and from time to time, may enter into one
or more indentures supplemental to this Indenture for any of the following
purposes:

 

(1)                                  to
cure any ambiguity, mistake, defect or inconsistency;

 

79

 

(2)                                  to
provide for uncertificated Notes in addition to or in place of certificated
Notes;

 

(3)                                  to
provide for the assumption of the Issuers’ obligations under this Indenture to
the Holders in the case of a merger or consolidation or sale of all or
substantially all of the Issuers’ assets;

 

(4)                                  to
make any change that would provide any additional rights or benefits to the Holders
or that does not adversely affect the legal rights under this Indenture of any
such Holder;

 

(5)                                  to
secure the Notes in accordance with Section 4.12;

 

(6)                                  to
comply with requirements of the Commission in order to effect or maintain the
qualification of this Indenture under the TIA;

 

(7)                                  to
provide for the issuance of Additional Notes in accordance with the limitations
set forth in this Indenture as of its date;

 

(8)                                  to
allow any Guarantor to execute a supplemental indenture and/or Guarantee with
respect to the Notes or to allow the release of a Guarantor (to the extent
permitted by this Indenture); and

 

(9)                                  to
conform the text of this Indenture, Notes or Guarantees to any provision of the
“Description of Notes” in the Offering Memorandum.

 

SECTION 9.2                                                  With
Consent of Holders of Notes.

 

With the consent of the Holders of not less
than a majority in aggregate principal amount of the outstanding Notes, the
Issuer, the Co-Issuer, the Guarantors, if any, and the Trustee may enter into
an indenture or indentures supplemental to this Indenture for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the
Holders under this Indenture, including the definitions herein; provided, however, that no
such supplemental indenture shall, without the consent of the Holder of each
outstanding Note affected thereby:

 

(1)                                  reduce
the principal amount of Notes whose Holders must consent to an amendment,
supplement or waiver;

 

(2)                                  reduce
the principal of or change the fixed maturity of any Note or alter the provisions
with respect to the scheduled redemption of such Notes (other than provisions
relating to Sections 3.9, 4.10 and 4.14 except as set
forth in item (10) below);

 

(3)                                  reduce
the rate of or change the time for payment of interest on any Note;

 

(4)                                  waive
a Default or Event of Default in the payment of principal of, or interest or
premium, or Additional Interest, if any, on the Notes (except a rescission of
acceleration of the Notes by the Holders of at least a majority in aggregate
principal 

 

80

 

amount of the
Notes and a waiver of the payment default that resulted from such
acceleration);

 

(5)                                  make
any Note payable in money other than that stated in the Notes;

 

(6)                                  make
any change in the provisions of this Indenture relating to waivers of past
Defaults or the rights of Holders of Notes to receive payments of principal of,
or interest or premium or Additional Interest, if any, on the Notes;

 

(7)                                  waive
a redemption payment with respect to any Note issued thereunder (other than a
payment required by Sections 3.9, 4.10 and 4.14 except as
set forth in item (10) below);

 

(8)                                  make
any change in the preceding amendment and waiver provisions.

 

Notwithstanding the foregoing, Holders of not
less than 75% of the aggregate principal amount of the Notes then outstanding may
waive or amend any provisions of this Indenture relating to:

 

(1)                                  subordination
that adversely affects the rights of the Holders of the Notes, or

 

(2)                                  the
release of any Guarantor that is a Significant Subsidiary from its obligations
under its Guarantee or this Indenture.

 

SECTION 9.3                                                  Compliance
with Trust Indenture Act.

 

Every amendment or supplement to this
Indenture or the Notes shall be set forth in an amended or supplemental
indenture that complies with the TIA as then in effect.

 

SECTION 9.4                                                  Revocation
and Effect of Consents.

 

Until an amendment, supplement or waiver
becomes effective, a consent to it by a Holder of a Note is a continuing
consent by the Holder and every subsequent Holder of that Note or portion of
the Note that evidences the same debt as the consenting Holder’s Note, even if
notation of the consent is not made on the Note.  However, any such Holder or subsequent Holder
may revoke the consent as to its Note if the Trustee receives written notice of
revocation before the date the waiver, supplement or amendment becomes
effective.  When an amendment, supplement
or waiver becomes effective in accordance with its terms, it thereafter binds
every Holder.

 

The Issuers may, but shall not be obligated
to, fix a record date for determining which Holders consent to such amendment,
supplement or waiver.  If the Issuers fix
a record date, the record date shall be fixed at (i) the later of 30 days prior
to the first solicitation of such consent or the date of the most recent list
of Holders furnished for the Trustee prior to such solicitation pursuant to Section
2.5 hereof or (ii) such other date as the Issuers shall designate.

 

81

 

SECTION 9.5                                                  Notation
on or Exchange of Notes.

 

The Trustee may place an appropriate notation
about an amendment, supplement or waiver on any Note thereafter
authenticated.  The Issuers in exchange
for all Notes may issue and the Trustee shall authenticate new Notes that
reflect the amendment, supplement or waiver.

 

Failure to make the appropriate notation or
issue a new Note shall not affect the validity and effect of such amendment,
supplement or waiver.

 

SECTION 9.6                                                  Trustee
to Sign Amendments, Etc.

 

The Trustee shall sign any amended or
supplemental indenture authorized pursuant to this Article IX if the
amendment or supplement does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. 
The Issuer, the Co-Issuer and the Guarantors may not sign an amendment
or supplemental indenture until their respective Boards of Directors approve
it.  In signing or refusing to sign any
amendment or supplemental indenture the Trustee shall be entitled to receive
and (subject to Section 7.1 hereof) shall be fully protected in relying
upon an Officer’s Certificate and an Opinion of Counsel (which may be subject
to certain qualifications) stating that the execution of such amendment or
supplemental indenture is authorized or permitted by this Indenture, that all
conditions precedent thereto have been met or waived, that such amendment or
supplemental indenture is not inconsistent herewith, and that it will be valid
and binding upon the Issuers in accordance with its terms.

 

ARTICLE X

 

SUBORDINATION OF NOTES

 

SECTION 10.1                                            Notes
Subordinated to Senior Debt.

 

Anything herein to the contrary
notwithstanding, each of the Issuers, for itself and its successors, and each
Holder, by his or her acceptance of Notes, agrees that the payment of all Obligations
owing to the Holders in respect of the Notes is subordinated, to the extent and
in the manner provided in this Article X, to the prior payment in full
in cash or Cash Equivalents, or such payment duly provided for to the
satisfaction of the holders of Senior Debt, of all Obligations due in respect
of Senior Debt (including the Obligations with respect to the Credit Facilities,
whether outstanding on the Issue Date or thereafter incurred).  Notwithstanding anything contained in this Article
X to the contrary, (A) payments and distributions of Permitted Junior
Securities and (B) payments and distributions made relating to the Notes
from the trust established pursuant to Article VIII shall not be so
subordinated in right of payment, so long as, with respect to (B), (i) the
conditions specified in Article VIII (without any waiver or modification
of the requirement that the deposits pursuant thereto do not conflict with the
terms of the Credit Facilities or any other Senior Debt) are satisfied on the
date of any deposit pursuant to said trust and (ii) such payments and
distributions did not violate the provisions of this Article X or Section
11.2 of this Indenture when made.

 

This Article X shall constitute a
continuing offer to all Persons who become holders of, or continue to hold,
Senior Debt, and such provisions are made for the benefit of the holders of

 

82

 

Senior Debt and such holders
are made obligees hereunder and any one or more of them may enforce such
provisions.

 

SECTION 10.2                                                 Suspension
of Payment When Senior Debt Is in Default.

 

(a)                                  If any default occurs
and is continuing in the payment when due (after any applicable grace period),
whether at maturity, upon any redemption, by declaration or otherwise, of any
principal of, premium, if any, interest on, or fees with respect to, any
Designated Senior Debt (a “Payment Default”),
then no payment or distribution of any kind or character (other than in
Permitted Junior Securities) shall be made by or on behalf of the Issuer, the
Co-Issuer or any other Person on its or their behalf with respect to any
Obligations on or relating to the Notes or to acquire any of the Notes for cash
or assets or otherwise until the date on which all such defaults are cured or
waived.

 

(b)                                 If any other event of
default (other than a Payment Default) occurs and is continuing with respect to
any Designated Senior Debt (as such event of default is defined in the
instrument creating or evidencing such Designated Senior Debt) permitting the
holders of such Designated Senior Debt then outstanding to accelerate the
maturity thereof (a “Non-Payment Default”)
and if the Representative for the respective issue of Designated Senior Debt
gives notice of the Non-Payment Default to the Trustee stating that such notice
is a payment blockage notice (a “Payment Blockage Notice”),
then during the period (the “Payment Blockage Period”)
beginning upon the delivery of such Payment Blockage Notice and ending on the
earlier of (1) 179 days after the date on which the applicable Payment Blockage
Notice is received, (2) the date on which all such Non-Payment Defaults
have been cured or waived or cease to exist and (3) the date on which the
Trustee receives notice thereof from the Representative for the respective
issue of Designated Senior Debt terminating the Payment Blockage Period, unless
the maturity of any Designated Senior Debt has been accelerated, neither the
Issuer nor the Co-Issuer shall (x) make any payment of any kind or
character with respect to any Obligations on or with respect to the Notes or
(y) acquire any of the Notes for cash or assets or otherwise.  Notwithstanding anything herein to the
contrary, no new Payment Blockage Notice may be delivered unless and until 360
days have elapsed since the effectiveness of the immediately prior Payment
Blockage Notice.  For all purposes of
this Section 10.2(b), no Non-Payment Default which existed or was continuing
on the date of the commencement of any Payment Blockage Period with respect to
the Designated Senior Debt shall be, or be made, the basis for the commencement
of a second Payment Blockage Period by the Representative of such Designated
Senior Debt whether or not within a period of 360 consecutive days, unless such
Non-Payment Default shall have been cured or waived for a period of not less
than 90 consecutive days.  Any subsequent
action, or any breach of any financial covenants for a period ending after the
date of delivery of such Payment Blockage Notice that, in either case, would
give rise to a Non-Payment Default pursuant to any provisions under which a
Non-Payment Default previously existed or was continuing shall constitute a new
Non-Payment Default for this purpose.

 

(c)                                  The foregoing Sections 10.2(a)
and (b) shall not apply to (A) payments and distributions of
Permitted Junior Securities and (B) payments and distributions made
relating to the Notes from the trust established pursuant to Article VIII,
so long as, with respect to (B), (i) the conditions specified in Article
VIII are satisfied on the date of any deposit pursuant to said

 

83

 

trust and (ii) such payments
and distributions did not violate the provisions of this Article X when
made.

 

(d)                                 In the event that,
notwithstanding the foregoing except Section 10.02(c), any payment shall
be received by the Trustee or any Holder when such payment is prohibited by the
foregoing provisions of this Section 10.2, such payment shall be
held in trust for the benefit of, and shall be paid over or delivered to, the
holders of Senior Debt (pro rata to
such holders on the basis of the respective amount of Senior Debt held by such
holders) or their respective Representatives, as their respective interests may
appear.  The Trustee shall be entitled to
rely on information regarding amounts outstanding on the Senior Debt, if any,
received from the holders of the Senior Debt (or their Representatives).

 

Nothing contained in this Article X
shall limit the right of the Trustee or Holders to take any action to
accelerate the maturity of the Notes pursuant to Section 6.2 or to pursue
any rights or remedies hereunder; provided that
all Senior Debt thereafter due or declared to be due shall first be paid in
full in cash or cash equivalents, or such payment duly provided for to the
satisfaction of the holders of such Senior Debt, before the Holders are
entitled to receive any payment of any kind or character with respect to Obligations
on the Notes.

 

SECTION 10.3                Notes
Subordinated to Prior Payment of All Senior Debt on Dissolution, Liquidation or
Reorganization of the Issuer or the Co-Issuer.

 

(a)                                  Upon any payment or
distribution of assets of the Issuer or the Co-Issuer of any kind or character,
whether in cash, assets or securities, to creditors upon any total or partial
liquidation, dissolution, winding-up, reorganization, assignment for the
benefit of creditors or marshaling of assets and liabilities of the Issuer or
the Co-Issuer or in a bankruptcy, reorganization, insolvency, receivership or
other similar proceeding relating to the Issuer or the Co-Issuer or their
respective assets, whether voluntary or involuntary, all Obligations due or to
become due upon all Senior Debt shall first be paid in full in cash or cash
equivalents, or such payment duly provided for to the satisfaction of the
holders of Senior Debt, before any payment or distribution of any kind or
character (other than Permitted Junior Securities) is made on account of any
Obligations on or relating to the Notes, or for the acquisition of any of the
Notes for cash or assets or otherwise. 
Upon any such dissolution, winding-up, liquidation, reorganization,
receivership or similar proceeding, any payment or distribution of assets of
the Issuer or the Co-Issuer of any kind or character, whether in cash, assets
or securities, to which the Holders of the Notes or the Trustee under this
Indenture would be entitled, except for the provisions hereof, shall be paid by
the Issuer or the Co-Issuer or by any receiver, Trustee in bankruptcy,
liquidating Trustee, agent or other Person making such payment or distribution,
or by the Holders or by the Trustee under this Indenture if received by them,
directly to the holders of Senior Debt (pro rata to
such holders on the basis of the respective amounts of Senior Debt held by such
holders) or their respective Representatives, or to the Trustee or Trustees
under any indenture pursuant to which any of such Senior Debt may have been
issued, as their respective interests may appear, for application to the
payment of Senior Debt remaining unpaid until all such Senior Debt has been
paid in full in cash or cash equivalents, or such payment duly

 

84

 

provided for to the
satisfaction of the holders of such Senior Debt, after giving effect to any concurrent
payment, distribution or provision therefor to or for the holders of Senior
Debt.

 

(b)                                 To the extent any
payment of Senior Debt (whether by or on behalf of the Issuer or the Co-Issuer,
as proceeds of security or enforcement of any right of setoff or otherwise) is
declared to be fraudulent or preferential, set aside or required to be paid to
any receiver, Trustee in bankruptcy, liquidating Trustee, agent or other
similar Person under any bankruptcy, insolvency, receivership, fraudulent
conveyance or similar law, then, if such payment is recovered by, or paid over
to, such receiver, Trustee in bankruptcy, liquidating Trustee, agent or other
similar Person, the Senior Debt or part thereof originally intended to be
satisfied shall be deemed to be reinstated and outstanding as if such payment
had not occurred.

 

It is further agreed that any diminution
(whether pursuant to court decree or otherwise, including without limitation
for any of the reasons described in the preceding sentence) of the Issuer’s or
the Co-Issuer’s obligation to make any distribution or payment pursuant to any
Senior Debt, except to the extent such diminution occurs by reason of the
repayment (which has not been disgorged or returned) of such Senior Debt in
cash or cash equivalents, or such payment duly provided for to the satisfaction
of the holders of such Senior Debt, shall have no force or effect for purposes
of the subordination provisions contained in this Article X, with any
turnover of payments as otherwise calculated pursuant to this Article X
to be made as if no such diminution had occurred.

 

(c)                                  In the event that,
notwithstanding the foregoing, any payment or distribution of assets of the
Issuer or the Co-Issuer of any kind or character, whether in cash, assets or securities,
shall be received by any Holder when such payment or distribution is prohibited
by this Section 10.3, such payment or distribution shall be held in
trust for the benefit of, and shall be paid over or delivered to, the holders
of Senior Debt (pro rata to such holders on the basis
of the respective amounts of Senior Debt held by such holders) or their
respective Representatives, or to the Trustee or Trustees under any indenture
pursuant to which any of such Senior Debt may have been issued, as their
respective interests may appear, for application to the payment of Senior Debt
remaining unpaid until all such Senior Debt has been paid in full in cash or
cash equivalents, or such payment duly provided for to the satisfaction of the
holders of such Senior Debt, after giving effect to any concurrent payment,
distribution or provision therefor to or for the holders of such Senior Debt.

 

(d)                                 The consolidation of
the Issuer or the Co-Issuer with, or the merger of the Issuer or the Co-Issuer
with or into, another Person or the liquidation or dissolution of the Issuer or
the Co-Issuer following the conveyance or transfer of all or substantially all
of its assets to another Person upon the terms and conditions provided in Article
V hereof and as long as permitted under the terms of the Senior Debt shall
not be deemed a dissolution, winding-up, liquidation or reorganization for the
purposes of this Section if such other Person shall, as a part of such
consolidation, merger, conveyance or transfer, assume the Issuer’s or the
Co-Issuer’s, as the case may be, obligations hereunder in accordance with Article
V hereof.

 

85

 

SECTION 10.4                                            Payments
May Be Made Prior to Dissolution.

 

Nothing contained in this Article X or
elsewhere in this Indenture shall prevent (i) the Issuers, except under the
conditions described in Sections 10.2 and 10.3, from making
payments at any time for the purpose of making payments of principal of and
interest on the Notes, or from depositing with the Trustee any moneys for such
payments, or (ii) in the absence of actual knowledge by the Trustee that a
given payment would be prohibited by Section 10.2 or 10.3, the
application by the Trustee of any moneys deposited with it for the purpose of
making such payments of principal of, and interest on, the Notes to the Holders
entitled thereto unless at least two Business Days prior to the date upon which
such payment would otherwise become due and payable a Responsible Officer of
the Trustee shall have actually received the written notice provided for in the
first sentence of Section 10.2(b) or in Section 10.7 (provided that, notwithstanding the foregoing, the Holders
receiving any payments made in contravention of Section 10.2 and/or 10.3
(and the respective such payments) shall otherwise be subject to the provisions
of Section 10.2 and Section 10.3).  The Issuer shall give prompt written notice
to the Trustee of any dissolution, winding-up, liquidation or reorganization of
the Issuer or the Co-Issuer, although any delay or failure to give any such
notice shall have no effect on the subordination provisions contained herein.

 

SECTION 10.5                                            Holders
To Be Subrogated to Rights of Holders of Senior Debt.

 

Subject to the payment in full in cash or
cash equivalents, or such payment duly provided for to the satisfaction of
holders of such Senior Debt, of all Senior Debt, the Holders of the Notes shall
be subrogated to the rights of the holders of Senior Debt to receive payments
or distributions of cash, assets or securities of the Issuer and the Co-Issuer
applicable to the Senior Debt until the Notes shall be paid in full; and, for
the purposes of such subrogation, no such payments or distributions to the
holders of the Senior Debt by or on behalf of the Issuer or the Co-Issuer, or
by or on behalf of the Holders by virtue of this Article X, which
otherwise would have been made to the Holders shall, as between the Issuers and
the Holders, be deemed to be a payment by the Issuers to or on account of the
Senior Debt, it being understood that the provisions of this Article X
are and are intended solely for the purpose of defining the relative rights of
the Holders, on the one hand, and the holders of Senior Debt, on the other
hand.

 

SECTION 10.6                                            Obligations
of the Issuers Unconditional.

 

Nothing contained in this Article X or
elsewhere in this Indenture or in the Notes is intended to or shall impair, as
among the Issuer, the Co-Issuer, their respective creditors other than the
holders of Senior Debt, and the Holders, the obligations of the Issuers, which
is absolute and unconditional, to pay to the Holders the principal of and any
interest on the Notes as and when the same shall become due and payable in
accordance with their terms, or is intended to or shall affect the relative
rights of the Holders and respective creditors of the Issuer and the Co-Issuer
other than the holders of the Senior Debt, nor shall anything herein or therein
prevent the Holder of any Note or the Trustee on its behalf from exercising all
remedies otherwise permitted by applicable law upon default under this
Indenture, subject to the rights, if any, in respect of cash, assets or
securities of the Issuer or the Co-Issuer received upon the exercise of any
such remedy.

 

86

 

SECTION 10.7                                            Notice
to Trustee.

 

The Issuer shall give prompt written notice
to the Trustee of any fact known to the Issuer which would prohibit the making
of any payment to or by the Trustee in respect of the Notes pursuant to the
provisions of this Article X, although any delay or failure to give any
such notice shall have no effect on the subordination provisions contained
herein.  Regardless of anything to the
contrary contained in this Article X or elsewhere in this Indenture, the
Trustee shall not be charged with knowledge of the existence of any default or
event of default with respect to any Senior Debt or of any other facts which
would prohibit the making of any payment to or by the Trustee unless and until
the Trustee shall have received notice in writing from the Issuer, or from a
holder of Senior Debt or a Representative therefor and, prior to the receipt of
any such written notice, the Trustee shall be entitled to assume (in the
absence of actual knowledge to the contrary) that no such facts exist.  The Trustee shall be entitled to rely on the
delivery to it of any notice pursuant to this Section 10.7 to establish
that such notice has been given by a holder of Senior Debt (or a Trustee
thereof).

 

In the event that the Trustee determines in
good faith that any evidence is required with respect to the right of any
Person as a holder of Senior Debt to participate in any payment or distribution
pursuant to this Article X, the Trustee may request such Person to furnish
evidence to the satisfaction of the Trustee as to the amounts of Senior Debt
held by such Person, the extent to which such Person is entitled to participate
in such payment or distribution and any other facts pertinent to the rights of
such Person under this Article X, and if such evidence is not furnished
the Trustee may defer any payment to such Person pending judicial determination
as to the right of such Person to receive such payment.

 

SECTION 10.8                                            Reliance
on Judicial Order or Certificate of Liquidating Agent.

 

Upon any payment or distribution of assets of
the Issuer or the Co-Issuer referred to in this Article X, the Trustee,
subject to the provisions of Article VII hereof, and the Holders of the
Notes shall be entitled to conclusively rely upon any order or decree made by
any court of competent jurisdiction in which any insolvency, bankruptcy,
receivership, dissolution, winding-up, liquidation, reorganization or similar
case or proceeding is pending, or upon a certificate of the receiver, Trustee
in bankruptcy, liquidating Trustee, assignee for the benefit of creditors,
agent or other person making such payment or distribution, delivered to the
Trustee or the Holders of the Notes, for the purpose of ascertaining the
persons entitled to participate in such payment or distribution, the holders of
the Senior Debt and other Indebtedness of the Issuer or the Co-Issuer, the
amount thereof or payable thereon, the amount or amounts paid or distributed
thereon and all other facts pertinent thereto or to this Article X.

 

SECTION 10.9                                            Trustee’s
Relation to Senior Debt.

 

The Trustee and any agent of the Issuer, the
Co-Issuer or the Trustee shall be entitled to all the rights set forth in this Article
X with respect to any Senior Debt which may at any time be held by it in
its individual or any other capacity to the same extent as any other holder of
Senior Debt and nothing in this Indenture shall deprive the Trustee or any such
agent of any of its rights as such holder.

 

87

 

With respect to the holders of Senior Debt,
the Trustee undertakes to perform or to observe only such of its covenants and
obligations as are specifically set forth in this Article X, and no
implied covenants or obligations with respect to the holders of Senior Debt
shall be read into this Indenture against the Trustee.  The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Debt.

 

Whenever a distribution is to be made or a
notice given to holders or owners of Senior Debt, the distribution may be made
and the notice may be given to their Representative, if any.

 

SECTION 10.10                   Subordination
Rights Not Impaired by Acts or Omissions of the Issuers or Holders of Senior
Debt.

 

No right of any present or future holders of
any Senior Debt to enforce subordination as provided herein shall at any time
in any way be prejudiced or impaired by any act or failure to act on the part
of the Issuer or the Co-Issuer or by any act or failure to act, in good faith,
by any such holder, or by any noncompliance by the Issuer or the Co-Issuer with
the terms of this Indenture, regardless of any knowledge thereof which any such
holder may have or otherwise be charged with.

 

Without in any way limiting the generality of
the foregoing paragraph, the holders of Senior Debt may, at any time and from
time to time, without the consent of or notice to the Trustee, without
incurring responsibility to the Trustee or the Holders of the Notes and without
impairing or releasing the subordination provided in this Article X or
the obligations hereunder of the Holders of the Notes to the holders of the
Senior Debt, do any one or more of the following:  (i) change the manner, place or terms of
payment or extend the time of payment of, or renew or alter, Senior Debt, or
otherwise amend or supplement in any manner Senior Debt, or any instrument
evidencing the same or any agreement under which Senior Debt is outstanding;
(ii) sell, exchange, release or otherwise deal with any property pledged,
mortgaged or otherwise securing Senior Debt; (iii) release any Person
liable in any manner for the payment or collection of Senior Debt; and
(iv) exercise or refrain from exercising any rights against the Issuer,
the Co-Issuer and any other Person.

 

SECTION 10.11                                      Noteholders
Authorize Trustee To Effectuate Subordination of Notes.

 

Each Holder of Notes by its acceptance of
them authorizes and expressly directs the Trustee on its behalf to take such action
as may be necessary or appropriate to effectuate, as between holders of Senior
Debt and Holders, the subordination provided in this Article X, and
appoints the Trustee its attorney-in-fact for such purposes, including, in the
event of any dissolution, winding-up, liquidation or reorganization of the
Issuer or the Co-Issuer (whether in bankruptcy, insolvency, receivership,
reorganization or similar proceedings or upon an assignment for the benefit of
credits or otherwise) tending towards liquidation of the business and assets of
the Issuer or the Co-Issuer, the filing of a claim for the unpaid balance of
its Notes and accrued interest in the form required in those proceedings.

 

If the Trustee does not file a proper claim
or proof of debt in the form required in such proceeding prior to 30 days
before the expiration of the time to file such claim or claims, then the

 

88

 

holders of the Senior Debt or
their Representative are or is hereby authorized to have the right to file and
are or is hereby authorized to file an appropriate claim for and on behalf of
the Holders of said Notes.  Nothing
herein contained shall be deemed to authorize the Trustee or the holders of
Senior Debt or their Representative to authorize or consent to or accept or
adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder
thereof, or to authorize the Trustee or the holders of Senior Debt or their Representative
to vote in respect of the claim of any Holder in any such proceeding.

 

SECTION 10.12                                           This
Article X Not To Prevent Events of Default.

 

The failure to make a payment on account of
principal of or interest on the Notes by reason of any provision of this Article
X will not be construed as preventing the occurrence of an Event of
Default.

 

SECTION 10.13                                           Trustee’s
Compensation Not Prejudiced.

 

Nothing in this Article X will apply
to amounts due to the Trustee (other than payments of Obligations owing to
Holders in respect of Notes) pursuant to other sections of this Indenture.

 

ARTICLE
XI

 

NOTE
GUARANTEES

 

SECTION 11.1                                            Guarantees.

 

(a)                                  Each Guarantor hereby
jointly and severally, fully, unconditionally and irrevocably guarantees the
Notes and obligations of the Issuers hereunder and thereunder, and guarantees
to each Holder of a Note authenticated and delivered by the Trustee and to the
Trustee on behalf of such Holder, that: 
(i) the principal of and premium, if any, and interest and Additional
Interest, if any, on the Notes shall be paid in full when due, whether at
Stated Maturity, by acceleration, call for redemption or otherwise (including,
without limitation, the amount that would become due but for the operation of
the automatic stay under Section 362(a) of the Bankruptcy Code), together with
interest on the overdue principal, if any, and interest on any overdue interest
and Additional Interest, if any, to the extent lawful, and all other
obligations of the Issuers to the Holders or the Trustee hereunder or
thereunder shall be paid in full or performed, all in accordance with the terms
hereof and thereof; and (ii) in case of any extension of time of payment or
renewal of any Notes or of any such other obligations, the same shall be paid
in full when due or performed in accordance with the terms of the extension or
renewal, whether at Stated Maturity, by acceleration or otherwise.  Each of the Guarantees shall be a guarantee
of payment and not of collection.

 

(b)                                 Each Guarantor hereby
agrees that its obligations hereunder shall be unconditional, irrespective of
the validity, regularity or enforceability of the Notes or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder
with respect to any provisions hereof or thereof, the recovery of any judgment
against the Issuer or the Co-Issuer, any action to enforce the same or any
other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a Guarantor.

 

89

 

(c)                                  Each Guarantor hereby
waives the benefits of diligence, presentment, demand for payment, filing of
claims with a court in the event of insolvency or bankruptcy of the Issuer or
the Co-Issuer, any right to require a proceeding first against the Issuer, the
Co-Issuer or any other Person, protest, notice and all demands whatsoever and
covenants that the Guarantee of such Guarantor shall not be discharged as to
any Note except by complete performance of the obligations contained in such
Note and such Guarantee or as provided for in this Indenture.  Each of the Guarantors hereby agrees that, in
the event of a default in payment of principal or premium, if any or interest
on such Note, whether at its Stated Maturity, by acceleration, call for
redemption, purchase or otherwise, legal proceedings may be instituted by the
Trustee on behalf of, or by, the Holder of such Note, subject to the terms and
conditions set forth in this Indenture, directly against each of the Guarantors
to enforce such Guarantor’s Guarantee without first proceeding against the
Issuer, the Co-Issuer or any other Guarantor. 
Each Guarantor agrees that if, after the occurrence and during the
continuance of an Event of Default, the Trustee or any of the Holders are prevented
by applicable law from exercising their respective rights to accelerate the
maturity of the Notes, to collect interest on the Notes, or to enforce or
exercise any other right or remedy with respect to the Notes, such Guarantor
shall pay to the Trustee for the account of the Holders, upon demand therefor,
the amount that would otherwise have been due and payable had such rights and
remedies been permitted to be exercised by the Trustee or any of the Holders.

 

(d)                                 If any Holder or the
Trustee is required by any court or otherwise to return to the Issuer, the
Co-Issuer or any Guarantor, or any custodian, trustee, liquidator or other
similar official acting in relation to the Issuer, the Co-Issuer or any
Guarantor, any amount paid by any of them to the Trustee or such Holder, the
Guarantee of each of the Guarantors, to the extent theretofore discharged,
shall be reinstated in full force and effect. 
This paragraph (d) shall remain effective notwithstanding any contrary
action which may be taken by the Trustee or any Holder in reliance upon such
amount required to be returned.  This
paragraph (d) shall survive the termination of this Indenture.

 

(e)                                  Each Guarantor
further agrees that, as between each Guarantor, on the one hand, and the
Holders and the Trustee, on the other hand, (x) the maturity of the obligations
guaranteed hereby may be accelerated as provided in Article VI hereof
for the purposes of the Guarantee of such Guarantor, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
obligations guaranteed hereby, and (y) in the event of any acceleration of such
obligations as provided in Article VI hereof, such obligations (whether
or not due and payable) shall forthwith become due and payable by each Guarantor
for the purpose of the Guarantee of such Guarantor.

 

SECTION 11.2                                            Execution
and Delivery of Guarantee.

 

To evidence its Guarantee set forth in Section
11.1, each Guarantor agrees that a notation of such Guarantee substantially
in the form attached hereto as Exhibit B shall be endorsed on each
Note authenticated and delivered by the Trustee.  Such notation of Guarantee shall be signed on
behalf of such Guarantor by an officer of such Guarantor (or, if an officer is
not available, by a board member or director) on behalf of such Guarantor by
manual or facsimile signature.  In case
the officer, board member or director of such Guarantor who shall have signed 

 

90

 

such notation of Guarantee
shall cease to be such officer, board member or director before the Note on
which such Guarantee is endorsed shall have been authenticated and delivered by
the Trustee, such Note nevertheless may be authenticated and delivered as
though the Person who signed such notation of Guarantee had not ceased to be
such officer, board member or director.

 

Each Guarantor agrees that its Guarantee set
forth in Section 11.1 shall remain in full force and effect and apply to
all the Notes notwithstanding any failure to endorse on each Note a notation of
such Guarantee.  The delivery of any Note
by the Trustee, after the authentication thereof hereunder, shall constitute
due delivery of any Guarantee set forth in this Indenture on behalf of the
Guarantors.

 

SECTION 11.3                                            Severability.

 

In case any provision of any Guarantee shall
be invalid, illegal or unenforceable, the validity, legality, and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

 

SECTION 11.4                                            Limitation
of Guarantors’ Liability.

 

Each Guarantor and by its acceptance hereof
each Holder confirms that it is the intention of all such parties that the
Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance
for purposes of the Federal Bankruptcy Code, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar federal or state law or
the provisions of its local law relating to fraudulent transfer or
conveyance.  To effectuate the foregoing
intention, the Trustee, the Holders and Guarantors hereby irrevocably agree
that the obligations of such Guarantor under its Guarantee shall be limited to
the maximum amount that will not, after giving effect to all other contingent
and fixed liabilities of such Guarantor and after giving effect to any
collections from, rights to receive contribution from or payments made by or on
behalf of any other Guarantor in respect of the obligations of such other
Guarantor under its Guarantee, result in the obligations of such Guarantor
under its Guarantee constituting a fraudulent transfer or conveyance.

 

SECTION 11.5                                            Guarantors
May Consolidate, Etc., on Certain Terms.

 

Except as otherwise provided in this Section
11.5, a Guarantor may not sell or otherwise dispose of all or substantially
all of its assets, or consolidate with or merge with or into (whether or not
such Guarantor is the surviving Person) another Person, other than the Issuer
or another Guarantor, unless:

 

(1)               immediately
after giving effect to such transactions, no Default or Event of Default exists;
and

 

(2)               either:

 

(a)                                  the Person acquiring
the property in any such sale or disposition or the Person formed by or
surviving any such consolidation or merger assumes all the obligations of that
Guarantor under this Indenture, its Guarantee and the

 

91

 

Registration Rights Agreement pursuant to a
supplemental indenture satisfactory to the Trustee; or

 

(b)                                 the Net Proceeds of
any such sale or other disposition of a Guarantor are applied in accordance
with the provisions of Section 4.10.

 

In case of any such consolidation, merger,
sale or conveyance and upon the assumption by the successor Person, by
supplemental indenture, executed and delivered to the Trustee and satisfactory
in form to the Trustee, of the Guarantee and the due and punctual performance
of all of the covenants and conditions of this Indenture and the Registration
Rights Agreement to be performed by the Guarantor, such successor Person shall
succeed to and be substituted for the Guarantor with the same effect as if it
had been named herein as a Guarantor. 
All the Guarantees so issued shall in all respects have the same legal
rank and benefit under this Indenture as the Guarantees theretofore and
thereafter issued in accordance with the terms of this Indenture as though all
such Guarantees had been issued at the date of the execution hereof.

 

Except as set forth in Articles IV and
V hereof, and notwithstanding clauses (1) and (2) above, nothing
contained in this Indenture or in any of the Notes shall prevent any
consolidation or merger of a Guarantor with or into the Issuer or another
Guarantor, or shall prevent any sale or conveyance of the property of a
Guarantor as an entirety or substantially as an entirety to the Issuer or
another Guarantor.

 

SECTION 11.6                                            Releases
Following Sale of Assets and Other Events.

 

Any Guarantor shall be released and relieved
of any obligations under its Guarantee:

 

(a)                                  in
connection with any sale or other disposition of all or substantially all of
the assets of that Guarantor (including by way of merger or consolidation) to a
Person that is not (either before or after giving effect to such transaction) a
Restricted Subsidiary, if sale or other disposition is made in accordance with
the provisions of Section 4.10 hereof;

 

(b)                                 in
connection with any sale of all of the Capital Stock of a Guarantor to a Person
that is not (either before or after giving effect to such transaction) a
Restricted Subsidiary, if the sale is made in accordance with the provisions of
Section 4.10 thereof; or

 

(c)                                  in
connection with any transaction following which the applicable Guarantor is no
longer a Restricted Subsidiary immediately after giving effect to such
transaction if such transaction is made in accordance with Section 4.10;

 

(d)                                 upon
the discharge or release of all guarantees of such Guarantor, and all pledges
of property or assets of such Guarantor securing all other Indebtedness of the
Issuers and the Restricted Subsidiaries, which resulted in the creation of such
Guarantee pursuant to Section 4.17; or

 

92

 

(e)                                  if
the Issuers exercise their legal defeasance option or covenant defeasance
option pursuant to Sections 8.2 or 8.3 or if their obligations
under this Indenture are discharged in accordance with the terms of this Indenture.

 

Upon delivery to the Trustee of an Officer’s
Certificate and an Opinion of Counsel (which may be subject to certain
qualifications) to the effect that such sale or other disposition was made by
the Issuer in accordance with the provisions of this Indenture, including
without limitation Sections 4.10 and 4.17, the Trustee shall
execute any documents reasonably required in order to evidence the release of
any Guarantor from its obligations under its Guarantee.

 

Any Guarantor not released from its
obligations under its Guarantee shall remain liable for the full amount of
principal of and interest on the Notes and for the other obligations of any
Guarantor under this Indenture as provided in this Article XI.

 

SECTION 11.7                                            Release
of a Guarantor.

 

Any Guarantor that is designated by the Board
of Directors of the Issuer as an Unrestricted Subsidiary in accordance with the
terms of this Indenture shall, at such time, be deemed automatically and
unconditionally released and discharged of its obligations under its Guarantee
without any further action on the part of the Trustee or any Holder.  The Trustee shall deliver an appropriate
instrument evidencing such release upon receipt of the Issuer’s request for
such release accompanied by an Officer’s Certificate certifying as to the
compliance with this Section 11.7. 
Any Guarantor not so released shall remain liable for the full amount of
principal of and interest on the Notes as provided in its Guarantee.

 

SECTION 11.8                                            Benefits
Acknowledged.

 

Each Guarantor acknowledges that it will
receive direct and indirect benefits from the financing arrangements
contemplated by this Indenture and that its guarantee and waivers pursuant to
its Guarantee are knowingly made in contemplation of such benefits.

 

ARTICLE
XII

 

MISCELLANEOUS

 

SECTION 12.1                                            Trust
Indenture Act Controls.

 

If any provision of this Indenture limits,
qualifies or conflicts with the duties imposed by TIA § 318(c), the
imposed duties shall control.

 

SECTION 12.2                                            Notices.

 

Any notice or communication by the Issuer,
the Co-Issuer, any Guarantor or the Trustee to the others is duly given if in
writing and delivered in Person or mailed by first class mail (registered or
certified, return receipt requested), telecopier or overnight air courier
guaranteeing next day delivery, to the others address:

 

93

 

	
  If to the
  Issuer, the Co-Issuer or the Guarantors:

  
	
   

  	
   

  
	
   

  	
  Barrington Broadcasting Group LLC

  
	
   

  	
  2500 W. Higgins Road,

  
	
   

  	
  Suite 880

  
	
   

  	
  Hoffman Estates, Illinois 60195

  
	
   

  	
  Facsimile: (847) 755-3045

  
	
   

  	
  Attention: Chief Financial Officer

  
	
   

  	
   

  
	
  With a copy to:

  
	
   

  	
   

  
	
   

  	
  Paul, Hastings, Janofsky & Walker LLP

  
	
   

  	
  75 East 55th Street

  
	
   

  	
  New York, New York 10022

  
	
   

  	
  Facsimile: (212) 230-7697

  
	
   

  	
  Attention: Jeffrey Pellegrino, Esq.

  
	
   

  	
   

  
	
  If to the Trustee:

  
	
   

  	
   

  
	
   

  	
  U.S. Bank National Association

  
	
   

  	
  Corporate Trust Services

  
	
   

  	
  EP-MN-WS3C

  
	
   

  	
  60 Livingston Avenue

  
	
   

  	
  St. Paul, MN 55107

  
	
   

  	
  Attention: Rick Prokosch

  

 

The Issuer, the Co-Issuer or the Trustee, by
notice to the other, may designate additional or different addresses for
subsequent notices or communications.

 

All notices and communications (other than
those sent to Holders) shall be deemed to have been duly given:  at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt acknowledged, if telecopied; and the next
Business Day after timely delivery to the courier, if sent by overnight air
courier promising next Business Day delivery.

 

Any notice or communication to a Holder shall
be mailed by first class mail or by overnight air courier promising next
Business Day delivery to its address shown on the register kept by the
Registrar.  Any notice or communication
shall also be so mailed to any Person described in TIA § 313(c), to the
extent required by the TIA.  Failure to
mail a notice or communication to a Holder or any defect in it shall not affect
its sufficiency with respect to other Holders.

 

If a notice or communication is mailed in the
manner provided above within the time prescribed, it is duly given, whether or
not the addressee receives it, except in the case of notices or communications
given to the Trustee, which shall be effective only upon actual receipt.

 

94

 

If the Issuer or the Co-Issuer mails a notice
or communication to Holders, it shall mail a copy to the Trustee and each Agent
at the same time.

 

SECTION 12.3                                                 Communication
by Holders of Notes with Other Holders of Notes.

 

Holders may communicate pursuant to TIA §
312(b) with other Holders with respect to their rights under this Indenture or
the Notes.  The Issuers, the Trustee, the
Registrar and anyone else shall have the protection of  TIA § 312(c).

 

SECTION 12.4                                                 Certificate
and Opinion as to Conditions Precedent.

 

Upon any request or application by the Issuer
or the Co-Issuer to the Trustee to take any action under this Indenture (other
than the initial issuance of the Notes), the Issuers shall furnish to the
Trustee upon request:

 

(a)                                  an
Officer’s Certificate (which shall include the statements set forth in Section
12.5 hereof) stating that, in the opinion of the signers, all conditions
precedent and covenants, if any, provided for in this Indenture relating to the
proposed action have been satisfied; and

 

(b)                                 an
Opinion of Counsel (which shall include the statements set forth in Section
12.5 hereof) stating that, in the opinion of such counsel, all such
conditions precedent and covenants have been satisfied.

 

SECTION 12.5                                            Statements
Required in Certificate or Opinion.

 

Each certificate or opinion with respect to
compliance with a condition or covenant provided for in this Indenture (other
than a certificate provided pursuant to TIA § 314(a)(4)) shall comply with
the provisions of TIA § 314(e) and shall include:

 

(a)                                  a
statement that the Person making such certificate or opinion has read such
covenant or condition;

 

(b)                                 a
brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion
are based;

 

(c)                                  a
statement that, in the opinion of such Person, he or she has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
satisfied; and

 

(d)                                 a
statement as to whether or not, in the opinion of such Person, such condition
or covenant has been satisfied.

 

95

 

SECTION 12.6                                            Rules
by Trustee and Agents.

 

The Trustee may make reasonable rules for
action by or at a meeting of Holders. 
The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions.

 

SECTION 12.7                                            No
Personal Liability of Directors, Officers, Employees and Stockholders.

 

No director, officer, employee, incorporator
or stockholder of the Issuer, any of its Subsidiaries or any of its direct or
indirect parent corporations, as such, will have any liability for any obligations
of the Issuer, the Co-Issuer or any Guarantor under the Notes, this Indenture,
the Guarantees, or for any claim based on, in respect of, or by reason of, such
obligations or their creation.  Each Holder
of Notes by accepting a Note waives and releases all such liability.  The waiver and release are part of the
consideration for issuance of the Notes. 
The waiver may not be effective to waive liabilities under the federal
securities laws, and it is the view of the Commission that such waiver is
against public policy.

 

SECTION 12.8                                            Governing
Law.

 

THE INTERNAL LAW OF THE STATE OF NEW YORK
SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES AND THE GUARANTEES
WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE
EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.  The parties to this
Indenture each hereby irrevocably submits to the non-exclusive jurisdiction of
any New York State or federal court sitting in the Borough of Manhattan in the
City of New York in any action or proceeding arising out of or relating to the
Notes, the Guarantees or this Indenture, and all such parties hereby
irrevocably agree that all claims in respect of such action or proceeding may
be heard and determined in such New York State or federal court and hereby
irrevocably waive, to the fullest extent that they may legally do so, the
defense of an inconvenient forum to the maintenance of such action or
proceeding.  EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO THIS INDENTURE, THE NOTES, THE GUARANTEES OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

 

SECTION 12.9                                            No
Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret
any other indenture, loan or debt agreement of the Issuers or their
Subsidiaries or of any other Person.  Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.

 

96

 

SECTION 12.10                                      Successors.

 

All agreements of the Issuers and the
Guarantors in this Indenture and the Notes and the Guarantees, as applicable,
shall bind their respective successors and assigns.  All agreements of the Trustee in this
Indenture shall bind its successors and assigns.

 

SECTION 12.11                                      Severability.

 

In case any provision in this Indenture or in
the Notes shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

SECTION 12.12                                      Counterpart
Originals.

 

The parties may sign any number of copies of
this Indenture.  Each signed copy shall
be an original, but all of them together represent the same agreement.

 

SECTION 12.13                                      Table
of Contents, Headings, Etc.

 

The Table of Contents, Cross-Reference Table
and Headings of the Articles and Sections of this Indenture have been inserted
for convenience of reference only, are not to be considered a part of this
Indenture and shall in no way modify or restrict any of the terms or provisions
hereof.

 

SECTION 12.14                                      Acts
of Holders.

 

(a)                                  Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Holders may be embodied in and evidenced
by one or more instruments of substantially similar tenor signed by such
Holders in person or by agent duly appointed in writing; and, except as herein
otherwise expressly provided, such action shall become effective when such
instrument or instruments are delivered to the Trustee and, where it is hereby
expressly required, to the Issuer or the Co-Issuer.  Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the “Act” of Holders signing such instrument
or instruments.  Proof of execution of
any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and conclusive in favor of the
Trustee, the Issuer and the Co-Issuer, if made in the manner provided in this Section
12.14.

 

(b)                                 The fact and date of
the execution by any Person of any such instrument or writing may be proved by
the affidavit of a witness of such execution or by a certificate of a notary
public or other officer authorized by law to take acknowledgments of deeds,
certifying that the individual signing such instrument or writing acknowledged
to such officer the execution thereof. 
Where such execution is by a signer acting in a capacity other than such
signer’s individual capacity, such certificate or affidavit shall also
constitute sufficient proof of such signer’s authority.  The fact and date of the execution of any
such instrument or writing, or the authority of the Person executing the same,
may also be proved in any other manner which the Trustee deems sufficient.

 

97

 

(c)                                  The ownership of
Notes shall be proved by the Holder list maintained under Section 2.5
hereunder.

 

(d)                                 Any request, demand,
authorization, direction, notice, consent, waiver or other Act of the Holder of
any Note shall bind every future Holder of the same Note and the Holder of
every Note issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered to
be done by the Trustee or the Issuer and Co-Issuer in reliance thereon, whether
or not notation of such action is made upon such Note.

 

(e)                                  If the Issuer and
Co-Issuer shall solicit from the Holders any request, demand, authorization,
direction, notice, consent, waiver or other Act, the Issuer and Co-Issuer may,
at their option, by or pursuant to a Board Resolution, fix in advance a record
date for the determination of Holders entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other Act, but the Issuer
and Co-Issuer shall have no obligation to do so.  If such a record date is fixed, such request,
demand, authorization, direction, notice, consent, waiver or other Act may be
given before or after such record date, but only the Holders of record at the
close of business on such record date shall be deemed to be Holders for the
purposes of determining whether Holders of the requisite proportion of
outstanding Notes have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other Act, and for
that purpose the outstanding Notes shall be computed as of such record date; provided that no such authorization, agreement or consent by
the Holders on such record date shall be deemed effective unless it shall
become effective pursuant to the provisions of this Indenture not later than
six months after the record date.

 

[Signatures on following page]

 

98

 

SIGNATURES

 

	
  Dated as of August  11, 2006

  	
  BARRINGTON BROADCASTING

  	
   

  	 

	
   

  	
  GROUP LLC,

  	
   

  	 

	
   

  	
  as Issuer

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Warren Spector

  	
   

  	 

	
   

  	
  Name:    Warren
  Spector

  	
   

  	 

	
   

  	
  Title:      Chief
  Financial Officer

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  BARRINGTON
  BROADCASTING CAPITAL CORPORATION

  	
   

  	 

	
   

  	
  as Co-Issuer

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Warren Spector

  	
   

  
	
   

  	
  Name:    Warren
  Spector

  	
   

  	 

	
   

  	
  Title:      Chief
  Financial Officer

  	
   

  	 

						

 

 

	
   

  	
  BARRINGTON QUINCY LLC

  
	
   

  	
  BARRINGTON JEFFERSON CITY LLC

  
	
   

  	
  BARRINGTON AMARILLO LLC

  
	
   

  	
  BARRINGTON FLINT LLC

  
	
   

  	
  BARRINGTON PEORIA LLC

  
	
   

  	
  BARRINGTON MYRTLE BEACH LLC

  
	
   

  	
  BARRINGTON HARLINGEN LLC

  
	
   

  	
  BARRINGTON KIRKSVILLE LLC

  
	
   

  	
  BARRINGTON COLORADO SPRINGS
  LLC

  
	
   

  	
  BARRINGTON COLUMBIA LLC

  
	
   

  	
  BARRINGTON ALBANY LLC

  
	
   

  	
  BARRINGTON MARQUETTE LLC

  
	
   

  	
  BARRINGTON TOLEDO LLC

  
	
   

  	
  BARRINGTON TRAVERSE CITY LLC

  
	
   

  	
  BARRINGTON SYRACUSE LLC

  
	
   

  	
  BARRINGTON BAY CITY LLC

  
	
   

  	
  BARRINGTON PEORIA LICENSE LLC

  
	
   

  	
  BARRINGTON FLINT LICENSE LLC

  
	
   

  	
  BARRINGTON BAY CITY LICENSE
  LLC

  
	
   

  	
  BARRINGTON MYRTLE BEACH
  LICENSE LLC

  
	
   

  	
  BARRINGTON SYRACUSE LICENSE
  LLC

  
	
   

  	
  BARRINGTON HARLINGEN LICENSE
  LLC

  
	
   

  	
  BARRINGTON TRAVERSE CITY
  LICENSE LLC

  
	
   

  	
  BARRINGTON MARQUETTE LICENSE
  LLC

  
	
   

  	
  BARRINGTON QUINCY LICENSE LLC

  
	
   

  	
  BARRINGTON AMARILLO LICENSE
  LLC

  
	
   

  	
  BARRINGTON COLUMBIA LICENSE
  LLC

  
	
   

  	
  BARRINGTON COLORADO SPRINGS LICENSE
  LLC

  
	
   

  	
  BARRINGTON ALBANY LICENSE LLC

  
	
   

  	
  BARRINGTON KIRKSVILLE LICENSE
  LLC

  
	
   

  	
  BARRINGTON JEFFERSON CITY
  LICENSE LLC

  
	
   

  	
  BARRINGTON TOLEDO LICENSE LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Warren Spector

  
	
   

  	
   

  	
  Name:

  	
  Warren Spector

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  

 

2

 

	
   

  	
   

  	
   

  
	
   

  	
  U.S. BANK NATIONAL ASSOCIATION,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard Prokosch

  
	
   

  	
   

  	
  Name:

  	
  Richard Prokosch

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

3

 

EXHIBIT A

 

FORM OF NOTE

 

(Face of 101⁄2%
Senior Subordinated Note)

101⁄2% Senior Subordinated Notes due 2014

 

[Global Note Legend]

 

UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, TO
THE ISSUERS OR THEIR AGENT FOR REGISTRATION OR TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUIRED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY OR SUCH OTHER REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO.
OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES
OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE.

 

[Restricted
Notes Legend]

 

THIS NOTE AND THE GUARANTEES ENDORSED HEREON HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
STATE SECURITIES LAWS. NEITHER THIS NOTE NOR THE GUARANTEES ENDORSED HEREON NOR
ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS NOTE
AND THE GUARANTEES ENDORSED HEREON BY ITS ACCEPTANCE HEREOF AGREES TO OFFER,
SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE WHICH IS TWO YEARS
AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH AN
ISSUER OR ANY AFFILIATE OF AN ISSUER WAS THE OWNER OF THIS NOTE AND THE
GUARANTEES ENDORSED HEREON (OR ANY PREDECESSOR OF THIS NOTE AND THE GUARANTEES
ENDORSED HEREON) (THE “RESALE RESTRICTION TERMINATION DATE”) ONLY (A)(1) TO
BARRINGTON BROADCASTING GROUP LLC

 

 

A-1

 

OR ANY RESPECTIVE SUBSIDIARY THEREOF, (2) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (3) FOR SO LONG AS THE
NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE
144A”), TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER”
AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A IN A TRANSACTION MEETING THE REQUIREMENTS
OF RULE 144A, (4) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT
OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
SECURITIES ACT (“REGULATION S”) IN AN OFFSHORE TRANSACTION COMPLYING WITH
REGULATION S OR (5) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUERS’ AND
THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (i) PURSUANT
TO CLAUSE (A)(4) PRIOR TO THE END OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD
WITHIN THE MEANING OF REGULATION S OR PURSUANT TO CLAUSE (A)(5) PRIOR TO THE
RESALE RESTRICTION TERMINATION DATE, TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM,
AND (ii) IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE OF
TRANSFER IN THE FORM APPEARING ON THIS NOTE IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE TRUSTEE AND (B) IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER APPLICABLE
JURISDICTIONS. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF A HOLDER AFTER
THE RESALE RESTRICTION TERMINATION DATE.

 

[Regulation S Temporary Global Note legend]

 

THIS GLOBAL
NOTE IS A TEMPORARY GLOBAL NOTE FOR PURPOSES OF REGULATION S UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). NEITHER THIS TEMPORARY GLOBAL NOTE NOR ANY INTEREST
HEREIN MAY BE OFFERED, SOLD OR DELIVERED, EXCEPT AS PERMITTED UNDER THE
INDENTURE REFERRED TO BELOW.

 

NO BENEFICIAL
OWNERS OF THIS TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF
PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED CERTIFICATIONS HAVE BEEN
DELIVERED PURSUANT TO THE TERMS OF THE INDENTURE.

 

A-2

 

	
  No.

  	
  CUSIP NO.

  

 

Barrington Broadcasting
Group LLC 

Barrington Broadcasting Capital Corporation

 

promises to pay to Cede & Co. or registered assigns, the principal
sum of [               ]($[       ])
on August 15, 2014.

 

Interest Payment Dates:  February 15 and August 15, beginning [               ],
20[  ]

 

Record Dates: 
February 1 and August 1

 

Reference is made to further provisions of
this Note set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as set forth at this place.

 

Unless the certificate of authentication
hereon has been executed by the Trustee referred to on the reverse hereof by
manual signature, this Note shall not be entitled to any benefits under the
Indenture referred to on the reverse hereof or be valid or obligatory for any
purpose.

 

A-3

 

	
   

  	
  BARRINGTON BROADCASTING GROUP LLC,

  
	
   

  	
  as Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BARRINGTON
  BROADCASTING CAPITAL

  CORPORATION,

  
	
   

  	
  as Co-Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

A-4

 

This is one of the Notes
referred to in the within-mentioned Indenture:

 

 

	
  Dated: 

  	
   

  	
   

  
	
   

  
	
  U.S. BANK NATIONAL ASSOCIATION

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

A-5

 

(Back of 101⁄2%
Senior Subordinated Note)

101⁄2% Senior Subordinated Notes due 2014

 

Capitalized terms used herein shall have the
meanings assigned to them in the Indenture referred to below unless otherwise
indicated.

 

(1)                                  Interest. Barrington
Broadcasting Group LLC, a Delaware limited liability company, and Barrington
Broadcasting Capital Corporation, a Delaware corporation (together, the “Issuers”),
promise to pay interest on the principal amount of this 101⁄2% Senior
Subordinated Note due 2014 (a “101⁄2% Senior Subordinated Note”) at a fixed rate.
The Issuers will pay interest in United States dollars (except as otherwise
provided herein) semiannually in arrears on February 15 and August 15,
commencing on [            ],
20[  ], or if any such day is not a Business Day, on the next
succeeding Business Day (each an “Interest Payment Date”). Interest on the 101⁄2%
Senior Subordinated Notes shall accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from
[              ],
20[  ]; provided that if there is no
existing Default or Event of Default in the payment of interest, and if this 101⁄2%
Senior Subordinated Note is authenticated between a record date referred to on
the face hereof and the next succeeding Interest Payment Date (but after August
11, 2006), interest shall accrue from such next succeeding Interest Payment
Date, except in the case of the original issuance of 101⁄2% Senior Subordinated
Notes, in which case interest shall accrue from the date of authentication. The
Issuers shall pay interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue principal at the rate equal to 1% per annum in excess of the then applicable interest rate on
the 101⁄2% Senior Subordinated Notes to the extent lawful; it shall pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue installments of interest (without regard to any applicable grace
period) at the same rate to the extent lawful. Interest shall be computed on
the basis of a 360-day year comprised of twelve 30-day months. The interest
rate on the Notes will in no event be higher than the maximum rate permitted by
New York law as the same may be modified by United States law of general
application.

 

(2)                                  Method of Payment.
The Issuers will pay interest on the 101⁄2% Senior Subordinated Notes (except
defaulted interest) on the applicable Interest Payment Date to the Persons who
are registered Holders of 101⁄2% Senior Subordinated Notes at the close of
business on the February 1 and August 1 preceding the Interest Payment
Date, even if such 101⁄2% Senior Subordinated Notes are cancelled after such
record date and on or before such Interest Payment Date, except as provided in
Section 2.12 of the Indenture with respect to defaulted interest. The 101⁄2%
Senior Subordinated Notes shall be payable as to principal, premium and interest
at the office or agency of the Issuers maintained for such purpose within or
without the City and State of New York, or, at the option of the Issuers,
payment of interest may be made by check mailed to the Holders at their
addresses set forth in the register of Holders; provided
that payment by wire transfer of immediately available funds shall be required
with respect to principal of, premium, if any, and interest on, all Global
Notes and all other 101⁄2% Senior Subordinated Notes the Holders of which shall
have provided written wire transfer instructions to the Issuers and the Paying
Agent. Such payment shall be in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts.

 

A-6

 

Any payments of principal of this 101⁄2% Senior
Subordinated Note prior to Stated Maturity shall be binding upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. The
amount due and payable at the maturity of this Note shall be payable only upon
presentation and surrender of this Note at an office of the Trustee or the
Trustee’s agent appointed for such purposes.

 

(3)                                  Paying Agent and
Registrar. Initially, U.S. Bank National Association, the Trustee under the
Indenture, shall act as Paying Agent and Registrar. The Issuers may change any
Paying Agent or Registrar without notice to any Holder. The Issuers or any of
its Subsidiaries may act in any such capacity.

 

(4)                                  Indenture and
Subordination. The Issuers issued the 101⁄2% Senior Subordinated Notes under
an Indenture, dated as of August 11, 2006 (the “Indenture”), among the Issuers,
the Guarantors and the Trustee. The terms of the 101⁄2% Senior Subordinated Notes
include those stated in the Indenture and those made a part of the Indenture by
reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code
§§ 77aaa-77bbbb) (the “TIA”). To the extent the provisions of this 101⁄2% Senior
Subordinated Note are inconsistent with the provisions of the Indenture, the
Indenture shall govern. The 101⁄2% Senior Subordinated Notes are subject to all
such terms, and Holders are referred to the Indenture and such Act for a
statement of such terms. The 101⁄2% Senior Subordinated Notes issued on the Issue
Date are senior subordinated obligations of the Issuers limited to $125,000,000
in aggregate principal amount, plus amounts, if any, sufficient to pay premium
and interest on outstanding 101⁄2% Senior Subordinated Notes as set forth in
Paragraph 2 hereof. The Indenture permits the issuance of Additional Notes
subject to compliance with certain conditions.

 

The payment of the Notes will, to the extent
set forth in the Indenture, be subordinated in right of payment to the prior
payment in full in cash or cash equivalents of all Senior Debt. The payment of
principal and interest on the 101⁄2% Senior Subordinated Notes is unconditionally
guaranteed on a senior subordinated basis by the Guarantors.

 

(5)                                  Optional
Redemption.

 

(a)                                  The Notes are subject
to redemption, at the option of the Issuers, in whole or in part, at any time
on or after August 15, 2010, upon not less than 30 nor more than
60 days’ notice at the following Redemption Prices (expressed as
percentages of the principal amount to be redeemed) set forth below, plus
accrued and unpaid interest and Additional Interest, if any, to, but not
including, the redemption date (subject to the right of Holders of record on
the relevant regular record date to receive interest due on an interest payment
date that is on or prior to the redemption date), if redeemed during the
12-month period beginning August 15 of the years indicated:

 

A-7

 

	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  105.250%

  	
   

  
	
  2011

  	
   

  	
  102.625%

  	
   

  
	
  2012 and
  thereafter

  	
   

  	
  100.000%

  	
   

  

 

(b)                                 In addition to the
optional redemption of the Notes in accordance with the provisions of the
preceding paragraph, prior to August 15, 2009, the Issuers may, with the
net cash proceeds of one or more Equity Offerings, redeem up to 35% of the
aggregate principal amount of the outstanding Notes at a Redemption Price of 110.50%
of the principal amount thereof, plus accrued and unpaid interest and
Additional Interest, thereon, if any, to the date of redemption; provided that at least 65% of the principal amount of Notes
originally issued on the Issue Date remains outstanding immediately after the
occurrence of any such redemption (excluding Notes held by the Issuers and their
Subsidiaries) and that any such redemption occurs within 90 days following
the closing of any such Equity Offering.

 

(6)                                  Mandatory
Redemption. The Issuers shall not be required to make mandatory redemption
or sinking fund payments with respect to the 101⁄2% Senior Subordinated Notes.

 

(7)                                  Repurchase at
Option of Holder.

 

(a)                                  Upon the occurrence
of a Change of Control, each Holder will have the right to require the Issuers
to repurchase all or any part (equal to $1,000 or integral multiples of $1,000
thereof) of such Holder’s 101⁄2% Senior Subordinated Notes pursuant to the offer
described below (the “Change of Control Offer”) at an offer price in cash equal
to 101% of the aggregate principal amount thereof plus accrued and unpaid
interest thereon to the date of purchase. Within 30 days following any Change
of Control, the Issuers will mail a notice to each Holder describing the
transaction or transactions that constitute the Change of Control and setting
forth the procedures governing the Change of Control Offer required by the
Indenture.

 

(b)                                 Upon the occurrence of
certain Asset Sales, the Issuers may be required to offer to purchase Notes.

 

(c)                                  Holders of the 101⁄2% Senior
Subordinated Notes that are the subject of an offer to purchase will receive
notice of an Offer to Purchase pursuant to an Asset Sale or a Change of Control
from the Issuers prior to any related purchase date and may elect to have such 101⁄2%
Senior Subordinated Notes purchased by completing the form titled “Option of
Holder to Elect Purchase” appearing below.

 

(8)                                  Notice of
Redemption. Notice of redemption shall be mailed at least 30 days but not
more than 60 days before the redemption date to each Holder whose 101⁄2% Senior
Subordinated Notes are to be redeemed at its registered address. 101⁄2% Senior
Subordinated Notes in denominations larger than $1,000 may be redeemed in part
but only in minimum denominations of $1,000 and integral multiples of $1,000
thereof, unless all of the 101⁄2% Senior Subordinated Notes held by a Holder are
to be redeemed. On and after the redemption date,

 

A-8

 

interest
ceases to accrue on the 101⁄2% Senior Subordinated Notes or portions hereof
called for redemption.

 

(9)                                  Denominations,
Transfer, Exchange. The 101⁄2% Senior Subordinated Notes are in registered
form without coupons in initial denominations of $1,000 and integral multiples
of $1,000 thereof. The transfer of the 101⁄2% Senior Subordinated Notes may be
registered and the 101⁄2% Senior Subordinated Notes may be exchanged as provided
in the Indenture. The Registrar and the Trustee may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and
the Issuers may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Issuers need not exchange or register the
transfer of any 101⁄2% Senior Subordinated Note or portion of a 101⁄2% Senior
Subordinated Note selected for redemption, except for the unredeemed portion of
any 101⁄2% Senior Subordinated Note being redeemed in part. Also, it need not
exchange or register the transfer of any 101⁄2% Senior Subordinated Notes for a
period of 15 days before a selection of 101⁄2% Senior Subordinated Notes to be
redeemed or during the period between a record date and the corresponding
Interest Payment Date.

 

(10)                            Persons Deemed Owners.
The registered Holder of a 101⁄2% Senior Subordinated Note may be treated as its
owner for all purposes.

 

(11)                            Amendment, Supplement
and Waiver. Subject to certain exceptions, the Indenture and the Notes may
be amended or supplemented with the written consent of the Holders of at least
a majority in aggregate principal amount of the Notes then outstanding, and any
existing Default under, or compliance with, any provision of the Indenture may
be waived with the consent of the Holders of a majority in aggregate principal
amount of the Notes then outstanding. Without notice to or consent of any
Holder, the parties thereto may amend or supplement the Indenture, the Notes
and/or the Guarantees to, among other things, cure any ambiguity or omission,
defect or inconsistency in the Indenture, provide for uncertificated Notes in
addition to or in place of certificated Notes, comply with any requirements of
the Commission in connection with the qualification of the Indenture under the
TIA, or make any change that does not materially adversely affect the rights of
any Holder of a Note.

 

(12)                            Defaults and Remedies.
If a Default occurs and is continuing, the Trustee or the Holders of at least
25% in principal amount of the then outstanding Notes generally may declare all
the Notes to be due and payable immediately. Notwithstanding the foregoing, in
the case of a Default arising from certain events of bankruptcy or insolvency
as set forth in the Indenture, with respect to the Issuer, the Co-Issuer or a
Significant Subsidiary, all outstanding Notes will become due and payable
without further action or notice. Holders of the Notes may not enforce the
Indenture or the Notes except as provided in the Indenture. Subject to certain
limitations, Holders of a majority in aggregate principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Holders of the Notes notice of any continuing
Default (except a Default relating to the payment of principal or interest) if
a committee of its Responsible Officers determines in good faith that
withholding notice is in the interest of the Holders. Subject to certain
conditions, the Holders of a majority in aggregate principal amount of the
Notes then outstanding by notice to the Trustee may on behalf of the Holders of
all of the Notes waive any existing Default and its consequences under the

 

A-9

 

Indenture except
a continuing Default in the payment of interest on, or the principal of, or the
premium on, the Notes.

 

(13)                            Trustee Dealings with
the Issuers. The Trustee, in its individual or any other capacity, may make
loans to, accept deposits from, and perform services for the Issuers, the Guarantors
or their respective Affiliates, and may otherwise deal with the Issuers, the
Guarantors or their respective Affiliates, as if it were not the Trustee.

 

(14)                            No Recourse Against
Others. No director, officer, employee, stockholder, general or limited
partner or incorporator, past, present or future, of the Issuers or any of
their Subsidiaries, as such or in such capacity, shall have any personal
liability for any obligations of the Issuers under the Notes, any Guarantee or
the Indenture by reason of his, her or its status as such director, officer,
employee, stockholder, general or limited partner or incorporator.

 

(15)                            Authentication. This
101⁄2% Senior Subordinated Note shall not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent.

 

(16)                            Abbreviations. Customary
abbreviations may be used in the name of a Holder or an assignee, such as:  TEN COM (= tenants in common), TEN ENT
(= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

 

(17)                            CUSIP Numbers. Pursuant
to a recommendation promulgated by the Committee on Uniform Security
Identification Procedures, the Issuers has caused CUSIP numbers to be printed
on the 101⁄2% Senior Subordinated Notes and the Trustee may use CUSIP numbers in
notices of redemption as a convenience to the Holders. No representation is
made as to the accuracy of such numbers either as printed on the 101⁄2% Senior
Subordinated Notes or as contained in any notice of redemption and reliance may
be placed only on the other identification numbers placed thereon.

 

(18)                            [Registration Rights.
In addition to the rights provided to Holders of Notes under the Indenture,
Holders will have all the rights set forth in the Registration Rights
Agreement.](1)

 

The Issuer shall furnish to any Holder upon
written request and without charge a copy of the Indenture. Requests may be
made to:

 

(1)           Include for any Note other than an
Exchange Note.

 

A-10

 

Barrington Broadcasting Group LLC

2500 W. Higgins Road

Suite 880

Hoffman Estates, Illinois  60195

Facsimile:  (847) 755-3045

Attention:  Chief Financial Officer

 

A-11

 

ASSIGNMENT
FORM

 

To assign this 101⁄2% Senior Subordinated Note,
fill in the form below:  (I) or (we)
assign and transfer this 101⁄2% Senior Subordinated Note to

 

	
   

  
	
  (Insert assignee’s Soc. Sec. or tax I.D.
  no.)

  
	
   

  
	
   

  
	
   

  
	
  (Print or type assignee’s name, address and
  zip code)

  
	
   

  
	
  and irrevocably appoint 

  
	
   

  
	
   

  
	
  to transfer this 101⁄2% Senior Subordinated Note on the books of the
  Issuers. The agent may substitute another to act for him.

  
	
   

  
	
  Date:

  	
   

  	
   

  
	
   

  
	
   

  	
  Your Signature:

  	
   

  
	
   

  	
  (Sign exactly as your name

  appears on the face of this 101⁄2%

  Senior Subordinated Note)

  
	
   

  
	
  Signature guarantee:

  
					

 

A-12

 

OPTION OF
HOLDER TO ELECT PURCHASE

 

If you want to elect to have this 101⁄2% Senior
Subordinated Note purchased by the Issuers pursuant to Section 4.10 or 4.14 of
the Indenture, check the box below:

 

o
Section 4.10                                                                 o
Section 4.14

 

If you want to elect to have only part of the
101⁄2% Senior Subordinated Note purchased by the Issuers pursuant to Section 4.10
or Section 4.14 of the Indenture, state the amount you elect to have purchased:  $                     

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
  (Sign exactly as your name

  appears on the 101⁄2%

  Senior Subordinated Note)

  
	
   

  
	
  Tax Identification No.:

  	
   

  
	
   

  	
   

  
	
  Signature guarantee:

  	
   

  
						

 

A-13

 

CERTIFICATE TO BE DELIVERED
UPON

EXCHANGE OF TRANSFER RESTRICTED NOTES

 

Barrington Broadcasting Group LLC

Barrington Broadcasting Capital Corporation

2500 W. Higgins Road

Suite 880

Hoffman Estates, Illinois  60195

Facsimile:  (847) 755-3045

Attention:  Chief Financial Officer

 

U.S. Bank National Association

Corporate Trust Services

EP-MN-WS3C

60 Livingston Avenue

St. Paul, MN  55107

Attention:  Rick Prokosch

 

 

Re:  CUSIP #

 

Reference is hereby made to that certain Indenture dated August 11,
2006 (the “Indenture”) among Barrington Broadcasting
Group LLC, Barrington Broadcasting Capital Corporation, the guarantors party
thereto and U.S. Bank National Association, as Trustee (the “Trustee”). Capitalized terms used but not defined herein
shall have the meanings set forth in the Indenture.

 

This
certificate relates to $                  principal amount of Notes held in (check
applicable space)        book-entry or           
definitive form by the undersigned.

 

The
undersigned                           
(transferor) (check one box below):

 

o                                    hereby requests the
Registrar to deliver in exchange for its beneficial interest in the Global Note
held by the Depositary a Note or Notes in definitive, registered form of
authorized denominations and an aggregate principal amount equal to its
beneficial interest in such Global Note (or the portion thereof indicated
above), in accordance with Section 2.6 of the Indenture;

 

o                                    hereby requests the
Trustee to exchange a Note or Notes to                      
(transferee).

 

In connection
with any transfer of any of the Notes evidenced by this certificate occurring
prior to the expiration of the periods referred to in Rule 144(k) under
the Securities Act of 1933, as amended, the undersigned confirms that such
Notes are being transferred in accordance with its terms:

 

A-14

CHECK ONE
BOX BELOW:

 

	
  (1)

  	
   

  	
  o

  	
   

  	
  to any
  Issuer or any of its subsidiaries; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  o

  	
   

  	
  inside the
  United States to a “qualified institutional buyer” (as defined in
  Rule 144A under the Securities Act of 1933, as amended) that purchases
  for its own account or for the account of a qualified institutional buyer to
  whom notice is given that such transfer is being made in reliance on
  Rule 144A under the Securities Act of 1933, as amended, in each case
  pursuant to and in compliance with Rule 144A thereunder; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  o

  	
   

  	
  outside the
  United States in an offshore transaction within the meaning of
  Regulation S under the Securities Act of 1933, as amended, in compliance
  with Rule 904 thereunder.

  

 

A-15

 

Unless one of
the boxes is checked, the Registrar will refuse to register any of the Notes
evidenced by this certificate in the name of any person other than the
registered Holder thereof.

 

	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  
	
  Signature Guarantee:

  	
   

  
	
   

  	
  (Signature must be guaranteed by a
  participant in a recognized signature guarantee medallion program)

  
			

 

TO BE COMPLETED BY PURCHASER IF
(2) ABOVE IS CHECKED.

 

The undersigned represents and warrants that
it is purchasing this Note for its own account or an account with respect to
which it exercises sole investment discretion and that it and any such account
is a “qualified institutional buyer” within the meaning of Rule 144A under
the Securities Act of 1933, as amended (“Rule 144A”), and is aware that
the sale to it is being made in reliance on Rule 144A and acknowledges
that it has received such information regarding the Issuers as the undersigned
has requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from
registration provided by Rule 144A.

 

	
   

  	
  [Name of Transferee]

  
	
   

  
	
  Dated: 

  	
   

  	
   

  	
   

  
	
   

  	
  NOTICE: To be executed by an executive officer

  
				

 

A-16

 

SCHEDULE OF
EXCHANGES OF 101⁄2% SENIOR SUBORDINATED NOTES

 

The following exchanges of a part of this
Global Note for other 101⁄2% Senior Subordinated Notes have been made:

 

	
  Date of

  Exchange

  	
   

  	
  Amount of

  Decrease in

  Principal

  Amount of This

  Global Note

  	
   

  	
  Amount of

  Increase in

  Principal

  Amount of This

  Global Note

  	
   

  	
  Principal

  Amount of This

  Global Note

  Following Such

  Decrease (or

  Increase)

  	
   

  	
  Signature of

  Authorized

  Officer of

  Trustee or 101⁄2%

  Senior

  Subordinated

  Note Custodian

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-17

 

EXHIBIT B

 

FORM OF
NOTATIONAL GUARANTEE

 

The Guarantor listed below (hereinafter
referred to as the “Guarantor,”
which term includes any successors or assigns under that certain Indenture,
dated as of August 11, 2006, by and among Barrington Broadcasting Group LLC,
Barrington Broadcasting Capital Corporation 
(together, the “Issuers”), the Guarantors party thereto and the Trustee
(as amended and supplemented from time to time, the “Indenture”),
has guaranteed the Notes and the obligations of the Issuers under the
Indenture, which include (i) the due and punctual payment of the principal of,
premium, if any, and interest on the 101⁄2% Senior Subordinated Notes due 2014
(the “Notes”) of the Issuers, whether at
stated maturity, by acceleration or otherwise, the due and punctual payment of
interest on the overdue principal and premium, if any, and (to the extent
permitted by law) interest on any interest, if any, on the Notes, and the due
and punctual performance of all other obligations of the Issuers to the Holders
or the Trustee all in accordance with the terms set forth in Article XI of the
Indenture, (ii) in case of any extension of time of payment or renewal of any
Notes or any such other obligations, that the same will be promptly paid in
full when due or performed in accordance with the terms of the extension or renewal,
whether at stated maturity, by acceleration or otherwise, and (iii) the payment
of any and all costs and expenses (including reasonable attorneys’ fees)
incurred by the Trustee or any Holder in enforcing any rights under this
Guarantee or the Indenture.

 

The obligations of each Guarantor to the
Holders and to the Trustee pursuant to this Guarantee and the Indenture are
expressly set forth in Article XI of the Indenture and reference is hereby made
to such Indenture for the precise terms of this Guarantee.

 

No stockholder, employee, officer, director
or incorporator, as such, past, present or future of each Guarantor shall have
any liability under this Guarantee by reason of his or its status as such
stockholder, employee, officer, director or incorporator.

 

This is a continuing Guarantee and shall
remain in full force and effect and shall be binding upon each Guarantor and
its successors and assigns until full and final payment of all of the Issuers’
obligations under the Notes and Indenture or until released in accordance with
the Indenture and shall inure to the benefit of the successors and assigns of
the Trustee and the Holders, and, in the event of any transfer or assignment of
rights by any Holder or the Trustee, the rights and privileges herein conferred
upon that party shall automatically extend to and be vested in such transferee
or assignee, all subject to the terms and conditions hereof. This is a
Guarantee of payment and not of collectibility.

 

This Guarantee shall not be valid or
obligatory for any purpose until the certificate of authentication on the Note
upon which this Guarantee is noted shall have been executed by the Trustee
under the Indenture by the manual signature of one of its authorized officers. The
Obligations of each Guarantor under its Guarantee shall be limited to the
extent necessary to insure that it does not constitute a fraudulent conveyance
under applicable law.

 

B-1

 

THE TERMS OF
ARTICLE XI OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE.

 

Capitalized terms used herein have the same
meanings given in the Indenture unless otherwise indicated.

 

	
  Dated as of

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Guarantor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  (SEAL)

  

 

C-2

 

EXHIBIT C

 

[FORM OF CERTIFICATE TO BE
DELIVERED

IN CONNECTION WITH TRANSFERS PURSUANT TO RULE 144A]

 

Barrington Broadcasting Group LLC

Barrington Broadcasting Capital Corporation

2500 W. Higgins Road

Suite 880

Hoffman Estates, Illinois  60195

Facsimile:  (847) 755-3045

Attention:  Chief Financial Officer

 

U.S. Bank National Association

Corporate Trust Services

EP-MN-WS3C

60 Livingston Avenue

St. Paul, MN  55107

Attention:  Rick Prokosch

 

 

	
   

  	
  Re:

  	
  Barrington
  Broadcasting Group LLC and Barrington

  
	
   

  	
   

  	
  Broadcasting
  Corporation 101⁄2% Senior Subordinated Notes

  
	
   

  	
   

  	
  due 2014
  (the “Notes”)

  	
   

  

 

Ladies and Gentlemen:

 

In connection with our proposed sale of $              aggregate
principal amount at maturity of the Notes, we hereby certify that such transfer
is being effected pursuant to and in accordance with Rule 144A (“Rule 144A”)
under the United States Securities Act of 1933, as amended (the “Securities Act”),
and, accordingly, we hereby further certify that the Notes are being
transferred to a person that we reasonably believe is purchasing the Notes for
its own account, or for one or more accounts with respect to which such person
exercises sole investment discretion, and such person and each such account is
a “qualified institutional buyer” within the meaning of Rule 144A in a
transaction meeting the requirements of Rule 144A and such Notes are being
transferred in compliance with any applicable blue sky securities laws of any
state of the United States.

 

You the Issuers are entitled to rely upon
this letter and are irrevocably authorized to produce this letter or a copy
hereof to any interested party in any administrative or legal proceedings or
official inquiry with respect to the matters covered hereby.

 

 

C-1

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name of
  Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  

 

C-2

 

EXHIBIT D

 

[FORM OF CERTIFICATE TO BE
DELIVERED

IN CONNECTION WITH TRANSFERS

PURSUANT TO REGULATION S]

 

Barrington Broadcasting Group LLC

Barrington Broadcasting Capital Corporation

2500 W. Higgins Road

Suite 880

Hoffman Estates, Illinois  60195

Facsimile:  (847) 755-3045

Attention:  Chief Financial Officer

 

U.S. Bank National Association

Corporate Trust Services

EP-MN-WS3C

60 Livingston Avenue

St. Paul, MN  55107

Attention:  Rick Prokosch

 

 

	
   

  	
  Re:

  	
  Barrington
  Broadcasting Group LLC

  
	
   

  	
   

  	
  Barrington
  Broadcasting Capital Corporation

  
	
   

  	
   

  	
  101⁄2% Senior
  Subordinated Notes due 2014 (the “Notes”)

  	
   

  

 

Ladies and Gentlemen:

 

In connection with our proposed sale of $            aggregate
principal amount of the Notes, we confirm that such sale has been effected
pursuant to and in accordance with Regulation S under the U.S. Securities
Act of 1933, as amended (the “Securities Act”), and, accordingly, we represent
that:

 

(1)                                  the
offer of the Notes was not made to a person in the United States;

 

(2)                                  either
(a) at the time the buy order was originated, the transferee was outside
the United States or we and any person acting on our behalf reasonably believed
that the transferee was outside the United States or (b) the transaction
was executed in, on or through the facilities of a designated off-shore
securities market and neither we nor any person acting on our behalf knows that
the transaction has been pre-arranged with a buyer in the United States;

 

D-1

 

(3)                                  no
directed selling efforts have been made in the United States in contravention
of the requirements of Rule 903(b) or Rule 904(b) of Regulation S,
as applicable; and

 

(4)                                  the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act.

 

In addition, if the sale is made during a
restricted period and the provisions of Rule 903(b) or Rule 904(b) of
Regulation S are applicable thereto, we confirm that such sale has been
made in accordance with the applicable provisions of Rule 903(b) or
Rule 904(b), as the case may be.

 

D-2

 

The Issuers and you are entitled to rely upon
this letter and are irrevocably authorized to produce this letter or a copy
hereof to any interested party in any administrative or legal proceedings or
official inquiry with respect to the matters covered hereby. Terms used in this
certificate have the meanings set forth in Regulation S.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  

 

D-3Exhibit 4.3

 

REGISTRATION RIGHTS AGREEMENT

 

 

by and among

 

 

Barrington Broadcasting Group LLC

 

Barrington Broadcasting Capital Corporation

 

 

and

 

 

Banc of America Securities LLC

Wachovia Capital Markets, LLC

 

Dated as of August 11, 2006

 

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement (this “Agreement”)
is made and entered into as of August 11 , 2006, by and among Barrington
Broadcasting Group LLC (“Barrington Group”) and Barrington Broadcasting
Capital Corporation (the “Capital Corp.” and together with Barrington
Group, the “Issuers”), the subsidiaries of Barrington Group that are
listed on the signature pages hereto (collectively, the “Guarantors”),
and Banc of America Securities LLC and Wachovia Capital Markets, LLC
(collectively, the “Initial Purchasers”), each of whom has agreed to purchase
the Issuers’ 10 1/2% Senior Subordinated Notes due  2014 (the “Initial Notes”) pursuant to
the Purchase Agreement (as defined below). The Initial Notes will be guaranteed
(the “Guarantees”) by the Guarantors pursuant to the Indenture (as
defined below). The Initial Notes and the Guarantees attached thereto are
herein collectively referred to as the “Initial Securities.”

 

This Agreement is made pursuant to the
Purchase Agreement, dated August 3, 2006 (the “Purchase Agreement”),
among the Issuers, the Guarantors and the Initial Purchasers (i) for the
benefit of the Initial Purchasers and (ii) for the benefit of the holders from
time to time of the Initial Securities, including the Initial Purchasers. In
order to induce the Initial Purchasers to purchase the Initial Securities, the
Issuers have agreed to provide the registration rights set forth in this
Agreement. The execution and delivery of this Agreement is a condition to the
obligations of the Initial Purchasers set forth in Section 5(g) of the Purchase
Agreement.

 

The parties hereby agree as follows:

 

SECTION 1.           Definitions. As used in this Agreement, the following
capitalized terms shall have the following meanings:

 

Broker-Dealer:  Any broker or dealer
registered under the Exchange Act.

 

Business Day:  Any day other than a Saturday, Sunday or U.S.
federal holiday or a day on which banking institutions or trust companies
located in New York, New York are authorized or obligated to be closed.

 

Closing Date: 
The date of this Agreement.

 

Commission: 
The Securities and Exchange Commission.

 

Consummate: 
A registered Exchange Offer shall be deemed “Consummated”
for purposes of this Agreement upon the occurrence of (i) the filing and
effectiveness under the Securities Act of the Exchange Offer Registration
Statement relating to the Exchange Securities to be issued in the Exchange
Offer, (ii) the maintenance of such Registration Statement continuously
effective and the keeping of the Exchange Offer open for a period not less than
the minimum period required pursuant to Section 3(b) hereof, and (iii) the
delivery by the Issuers to the Registrar under the Indenture of Exchange
Securities in the same aggregate principal amount as the aggregate principal
amount of Initial Securities that were tendered by Holders thereof pursuant to
the Exchange Offer.

 

Effectiveness Target Date:  As defined in
Section 5 hereof.

 

 

Exchange Act: 
The Securities Exchange Act of 1934, as
amended.

 

Exchange Offer:  The registration by
the Issuers under the Securities Act of the Exchange Securities pursuant to a
Registration Statement pursuant to which the Issuers offer the Holders of all
outstanding Transfer Restricted Securities the opportunity to exchange all such
outstanding Transfer Restricted Securities held by such Holders for Exchange
Securities in an aggregate principal amount equal to the aggregate principal
amount of the Transfer Restricted Securities tendered in such exchange offer by
such Holders.

 

Exchange Offer Registration Statement:  The Registration
Statement relating to the Exchange Offer, including the related Prospectus.

 

Exchange Securities:  The 10 1/2% Senior
Subordinated Notes due 2014, of the same series under the Indenture as the
Initial Notes and the Guarantees attached thereto, to be issued to Holders in
exchange for Transfer Restricted Securities pursuant to this Agreement.

 

Holders: 
As defined in Section 2(b) hereof.

 

Indemnified Holder:  As defined in
Section 8(a) hereof.

 

Indenture: 
The Indenture, dated as of August 11, 2006, by
and among the Issuers, the Guarantors and U.S. Bank National Association, as
trustee (the “Trustee”), pursuant to which the Securities are to be
issued, as such Indenture is amended or supplemented from time to time in accordance
with the terms thereof.

 

Initial Purchasers:  As defined in the
preamble hereto.

 

Initial Notes:  As defined in the
preamble hereto.

 

Initial Placement:  The issuance and
sale by the Issuers of the Initial Securities to the Initial Purchasers
pursuant to the Purchase Agreement.

 

Initial Securities:  As defined in the
preamble hereto.

 

NASD:  National
Association of Securities Dealers, Inc.

 

Person: 
An individual, partnership, corporation, trust
or unincorporated organization, or a government or agency or political subdivision
thereof.

 

Prospectus: 
The prospectus included in a Registration
Statement, as amended or supplemented by any prospectus supplement and by all
other amendments thereto, including post-effective amendments, and all material
incorporated by reference into such Prospectus.

 

Registration Default:  As defined in
Section 5 hereof.

 

Registration Statement:  Any registration
statement of the Issuers relating to (a) an offering of Exchange Securities
pursuant to an Exchange Offer or (b) the registration for resale of Transfer
Restricted Securities pursuant to the Shelf Registration Statement, which is
filed pursuant 

 

2

 

to the
provisions of this Agreement, in each case, including the Prospectus included
therein, all amendments and supplements thereto (including post-effective
amendments) and all exhibits and material incorporated by reference therein.

 

Securities Act:  The Securities Act
of 1933, as amended.

 

Shelf Filing Deadline:  As defined in
Section 4(a) hereof.

 

Shelf Registration Statement:  As defined in
Section 4(a) hereof.

 

Transfer Restricted Securities:  Each Initial
Security, until the earliest to occur of (a) the date on which such Initial
Security is exchanged in the Exchange Offer for an Exchange Security entitled
to be resold to the public by the Holder thereof without complying with the
prospectus delivery requirements of the Securities Act, (b) the date on which
such Initial Security has been effectively registered under the Securities Act
and disposed of in accordance with a Shelf Registration Statement and (c) the
date on which such Initial Security is distributed to the public pursuant to
Rule 144 under the Securities Act or by a Broker-Dealer pursuant to the “Plan
of Distribution” contemplated by the Exchange Offer Registration Statement
(including delivery of the Prospectus contained therein).

 

Trust Indenture Act:  The Trust Indenture
Act of 1939, as amended.

 

Underwritten Registration or Underwritten
Offering:  A
registration in which securities of the Issuers are sold to an underwriter for
reoffering to the public.

 

SECTION 2.           Securities Subject to this Agreement.

 

(a)           Transfer Restricted Securities. The securities entitled to
the benefits of this Agreement are the Transfer Restricted Securities.

 

(b)           Holders of Transfer Restricted Securities. A Person is
deemed to be a holder of Transfer Restricted Securities (each, a “Holder”)
whenever such Person owns Transfer Restricted Securities.

 

SECTION 3.           Registered Exchange Offer.

 

(a)           Unless
the Exchange Offer shall not be permissible under applicable law or Commission
policy (after the procedures set forth in Section 6(a) hereof have been
complied with), each of the Issuers and the Guarantors shall (i) cause to be
filed with the Commission as soon as practicable after the Closing Date, but in
no event later than 180 days after the Closing Date (or if such 180th day is
not a Business Day, the next succeeding Business Day), a Registration Statement
under the Securities Act relating to the Exchange Securities and the Exchange Offer,
(ii) use its commercially reasonable efforts to cause such Registration
Statement to become effective at the earliest possible time, but in no event
later than 360 days after the Closing Date (or if such 360th day is not a
Business Day, the next succeeding Business Day), (iii) in connection with the
foregoing, (A) file all pre-effective amendments to such Registration Statement
as may be necessary in order to cause such Registration Statement to become effective,
(B) if applicable, file a 

 

3

 

post-effective amendment to such Registration
Statement pursuant to Rule 430A under the Securities Act and (C) cause all
necessary filings in connection with the registration and qualification of the
Exchange Securities to be made under the state securities or blue sky laws of
such jurisdictions as are necessary to permit Consummation of the Exchange
Offer, and (iv) upon the effectiveness of such Registration Statement, commence
the Exchange Offer. The Exchange Offer shall be on the appropriate form
permitting registration of the Exchange Securities to be offered in exchange
for the Transfer Restricted Securities and to permit resales of Initial
Securities held by Broker-Dealers as contemplated by Section 3(c) hereof.

 

(b)           The
Issuers and the Guarantors shall cause the Exchange Offer Registration
Statement to be effective continuously, and shall keep the Exchange Offer open,
for a period of not less than the minimum period required under applicable
federal and state securities laws to Consummate the Exchange Offer; provided, however, that in no event shall such period be
less than 30 days after the date notice of the Exchange Offer is mailed to
the Holders. The Issuers shall cause the Exchange Offer to comply in all
material respects with all applicable federal and state securities laws. No
securities other than the Exchange Securities shall be included in the Exchange
Offer Registration Statement. The Issuers shall use their commercially
reasonable efforts to cause the Exchange Offer to be Consummated on the
earliest practicable date after the Exchange Offer Registration Statement has
become effective, but in no event later than 30 Business Days after the date on
which the Exchange Offer Registration Statement was declared effective by the
Commission.

 

(c)           The
Issuers shall indicate in a “Plan of Distribution” section contained in the
Prospectus forming a part of the Exchange Offer Registration Statement that any
Broker-Dealer who holds Initial Securities that are Transfer Restricted
Securities and that were acquired for its own account as a result of
market-making activities or other trading activities (other than Transfer Restricted
Securities acquired directly from the Issuers), may exchange such Initial
Securities pursuant to the Exchange Offer; however, such Broker-Dealer may be
deemed to be an “underwriter” within the meaning of the Securities Act and
must, therefore, deliver a prospectus meeting the requirements of the Securities
Act in connection with any resales of the Exchange Securities received by such
Broker-Dealer in the Exchange Offer, which prospectus delivery requirement may
be satisfied by the delivery by such Broker-Dealer of the Prospectus contained
in the Exchange Offer Registration Statement. Such “Plan of Distribution”
section shall also contain all other information with respect to such resales
by Broker-Dealers that the Commission may require in order to permit such
resales pursuant thereto, but such “Plan of Distribution” shall not name any
such Broker-Dealer or disclose the amount of Initial Securities held by any
such Broker-Dealer except to the extent required by the Commission as a result
of a change in policy after the date of this Agreement.

 

Each of the Issuers and the Guarantors shall
use its commercially reasonable efforts to keep the Exchange Offer Registration
Statement continuously effective, supplemented and amended as required by the
provisions of Section 6(c) hereof to the extent necessary to ensure that it is
available for resales of Initial Securities acquired by Broker-Dealers for
their own accounts as a result of market-making activities or other trading
activities, and to ensure that it conforms with the requirements of this
Agreement, the Securities Act and the policies, rules and regulations of the Commission
as announced from time to time, for a period ending on the earlier 

 

4

 

of (i) 90
days from the date on which the Exchange Offer Registration Statement is
declared effective and (ii) the date on which a Broker-Dealer is no longer
required to deliver a prospectus in connection with market-making or other
trading activities.

 

The Issuers shall provide sufficient copies
of the latest version of such Prospectus to Broker-Dealers promptly upon
request at any time for a period not to exceed 90 days after the Consummation
of the Exchange Offer in order to facilitate such resales.

 

SECTION 4.           Shelf Registration.

 

(a)           Shelf Registration. If (i) the Issuers are not required to
file an Exchange Offer Registration Statement or to consummate the Exchange
Offer because the Exchange Offer is not permitted by applicable law or
Commission policy (after the procedures set forth in Section 6(a) hereof have
been complied with), (ii) for any reason the Exchange Offer is not Consummated
within 360 days after the Closing Date (or if such 360th day is not a
Business Day, the next succeeding Business Day), or (iii) with respect to any
Holder of Transfer Restricted Securities (A) such Holder is prohibited by
applicable law or Commission policy from participating in the Exchange Offer,
or (B) such Holder may not resell the Exchange Securities acquired by it in the
Exchange Offer to the public without delivering a prospectus and that the Prospectus
contained in the Exchange Offer Registration Statement is not appropriate or
available for such resales by such Holder, or (C) such Holder is a
Broker-Dealer and holds Initial Securities acquired directly from the Issuers or
one of their affiliates, then, upon such Holder’s request, the Issuers and the
Guarantors shall

 

(x)            cause to be filed a shelf
registration statement pursuant to Rule 415 under the Securities Act, which may
be an amendment to the Exchange Offer Registration Statement (in either event,
the “Shelf Registration Statement”) on or prior to the earliest to occur
of (1) the 30th day after the date on which the Issuers determine that they are
not required to file the Exchange Offer Registration Statement (or if such 30th
day is not a Business Day, the next succeeding Business Day) and (2) the 30th
day after the date on which the Issuers receive notice from a Holder of
Transfer Restricted Securities as contemplated by clause (iii) above; provided, however, that
in no event shall the Issuers be required to file a Shelf Registration Statement
on or before the date which is 180 days after the Closing Date (such earliest date
being the “Shelf Filing Deadline”), which Shelf Registration Statement
shall provide for resales of all Transfer Restricted Securities the Holders of
which shall have provided the information required pursuant to Section 4(b)
hereof; and

 

(y)           use their commercially reasonable efforts
to cause such Shelf Registration Statement to be declared effective by the Commission
on or before the 360th day after the Shelf Filing Deadline (or if such 360th day
is not a Business Day, the next succeeding Business Day).

 

Each of the Issuers and the Guarantors shall
use its commercially reasonable efforts to keep such Shelf Registration Statement
continuously effective, supplemented and amended as required by the provisions
of Sections 6(b) and (c) hereof to the extent necessary to ensure that it is
available for resales of Initial Securities by the Holders of Transfer
Restricted Securities entitled 

 

5

 

to the benefit
of this Section 4(a), and to ensure that it conforms with the requirements of
this Agreement, the Securities Act and the policies, rules and regulations of
the Commission as announced from time to time, for a period of two years
following the effective date of such Shelf Registration Statement (or such shorter
period that will terminate when all the Initial Securities covered by such
Shelf Registration Statement cease to be outstanding, or have been sold
pursuant to such Shelf Registration Statement).

 

(b)           Provision by Holders of Certain Information in Connection with the
Shelf Registration Statement. No Holder of Transfer Restricted
Securities may include any of its Transfer Restricted Securities in any Shelf
Registration Statement pursuant to this Agreement unless and until such Holder
furnishes to the Issuers in writing, within 20 Business Days after receipt of a
request therefor, such information as the Issuers may reasonably request for
use in connection with any Shelf Registration Statement or Prospectus or
preliminary Prospectus included therein. Each Holder as to which any Shelf
Registration Statement is being effected agrees to furnish promptly to the Issuers
all information required to be disclosed in order to make the information
previously furnished to the Issuers by such Holder not materially misleading.

 

SECTION 5.           Additional Interest. If (i) any of the Registration
Statements required by this Agreement is not filed with the Commission on or
prior to the date specified for such filing in this Agreement, (ii) any of such
Registration Statements required by this Agreement has not been declared
effective by the Commission on or prior to the date specified for such effectiveness
in this Agreement (the “Effectiveness Target Date”), (iii) the Exchange
Offer has not been Consummated within 30 Business Days after the
Effectiveness Target Date with respect to the Exchange Offer Registration
Statement or (iv) any Registration Statement required by this Agreement is
filed and declared effective but shall thereafter cease to be effective or fail
to be usable for its intended purpose without being succeeded immediately by a
post-effective amendment to such Registration Statement that cures such failure
and that is itself immediately declared effective (each such event referred to
in clauses (i) through (iv), a “Registration Default”), the Issuers
hereby agree that the interest rate borne by the Transfer Restricted Securities
shall be increased by 0.25% per annum during the 90-day period immediately
following the occurrence of any Registration Default and shall increase by
0.25% per annum at the end of each subsequent 90-day period, but in no event
shall such increase exceed 1.00% per annum. Following the cure of all
Registration Defaults relating to any particular Transfer Restricted Securities,
the interest rate borne by the relevant Transfer Restricted Securities will be
reduced to the original interest rate borne by such Transfer Restricted Securities;
provided, however, that, if after
any such reduction in interest rate, a different Registration Default occurs,
the interest rate borne by the relevant Transfer Restricted Securities shall
again be increased pursuant to the foregoing provisions.

 

All obligations of the Issuers and the
Guarantors set forth in the preceding paragraph that are outstanding with
respect to any Transfer Restricted Security at the time such security ceases to
be a Transfer Restricted Security shall survive until such time as all such
obligations with respect to such security shall have been satisfied in full.

 

6

 

SECTION 6.           Registration Procedures.

 

(a)           Exchange Offer Registration Statement. In connection with
the Exchange Offer, the Issuers and the Guarantors shall comply with all of the
provisions of Section 6(c) hereof, shall use their commercially reasonable efforts
to effect such exchange to permit the sale of Transfer Restricted Securities being
sold in accordance with the intended method or methods of distribution thereof,
and shall comply with all of the following provisions:

 

(i)            If in the
reasonable opinion of counsel to the Issuers there is a question as to whether
the Exchange Offer is permitted by applicable law, each of the Issuers and the
Guarantors hereby agrees to seek a no-action letter or other favorable decision
from the Commission allowing the Issuers and the Guarantors to Consummate an
Exchange Offer for such Initial Securities. Each of the Issuers and the
Guarantors hereby agrees to pursue the issuance of such a decision to the
Commission staff level but shall not be required to take commercially
unreasonable action to effect a change of Commission policy. Each of the
Issuers and the Guarantors hereby agrees, however, to (A) participate in
telephonic conferences with the Commission, (B) deliver to the Commission staff
an analysis prepared by counsel to the Issuers setting forth the legal bases,
if any, upon which such counsel has concluded that such an Exchange Offer
should be permitted and (C) diligently pursue a favorable resolution by the
Commission staff of such submission.

 

(ii)           As a condition to
its participation in the Exchange Offer pursuant to the terms of this Agreement,
each Holder of Transfer Restricted Securities shall furnish, upon the request
of the Issuers, prior to the Consummation thereof, a written representation to
the Issuers (which may be contained in the letter of transmittal contemplated
by the Exchange Offer Registration Statement) to the effect that (A) it is not
an affiliate of the Issuers, (B) it is not engaged in, and does not intend to
engage in, and has no arrangement or understanding with any Person to
participate in, a distribution of the Exchange Securities to be issued in the Exchange
Offer and (C) it is acquiring the Exchange Securities in its ordinary course of
business. In addition, all such Holders of Transfer Restricted Securities shall
otherwise cooperate in the Issuers’ preparations for the Exchange Offer. Each
Holder hereby acknowledges and agrees that any Broker-Dealer and any such
Holder using the Exchange Offer to participate in a distribution of the
securities to be acquired in the Exchange Offer (1) could not under Commission
policy as in effect on the date of this Agreement rely on the position of the
Commission enunciated in Morgan Stanley and Co., Inc. (available June 5,
1991) and Exxon Capital Holdings Corporation (available May 13, 1988),
as interpreted in the Commission’s letter to Shearman & Sterling dated July
2, 1993, and similar no-action letters (which may include any no-action letter
obtained pursuant to clause (i) above), and (2) must comply with the
registration and prospectus delivery requirements of the Securities Act in connection
with a secondary resale transaction and that such a secondary resale transaction
should be covered by an effective registration statement containing the selling
security holder information required by Item 507 or 508, as applicable, of
Regulation S-K if the resales are of Exchange Securities obtained by such
Holder in exchange for Initial Securities acquired by such Holder directly from
the Issuers.

 

7

 

(b)           Shelf Registration Statement. In connection with the Shelf
Registration Statement, each of the Issuers and the Guarantors shall comply
with all the provisions of Section 6(c) hereof and shall use its commercially
reasonable efforts to effect such registration to permit the sale of the
Transfer Restricted Securities being sold in accordance with the intended
method or methods of distribution thereof, and pursuant thereto each of the
Issuers and the Guarantors will as expeditiously as possible prepare and file
with the Commission a Registration Statement relating to the registration on
any appropriate form under the Securities Act, which form shall be available
for the sale of the Transfer Restricted Securities in accordance with the
intended method or methods of distribution thereof.

 

(c)           General Provisions. In connection with any Registration
Statement and any Prospectus required by this Agreement to permit the sale or
resale of Transfer Restricted Securities (including, without limitation, any
Registration Statement and the related Prospectus required to permit resales of
Initial Securities by Broker-Dealers), each of the Issuers and the Guarantors
shall:

 

(i)            use its commercially
reasonable efforts to keep such Registration Statement continuously effective for
the applicable period set forth in Section 3 or 4 hereof, as applicable, and
provide all requisite financial statements (including, if required by the
Securities Act or any regulation thereunder, financial statements of the
Guarantors for the period specified in Section 3 or 4 hereof, as applicable);
upon the occurrence of any event that would cause any such Registration
Statement or the Prospectus contained therein (A) to contain a material
misstatement or omission or (B) not to be effective and usable for resale of
Transfer Restricted Securities during the period required by this Agreement,
the Issuers shall file promptly an appropriate amendment to such Registration
Statement, in the case of clause (A), correcting any such misstatement or omission,
and, in the case of either clause (A) or (B), use their commercially reasonable
efforts to cause such amendment to be declared effective and such Registration
Statement and the related Prospectus to become usable for their intended
purpose(s) as soon as practicable thereafter;

 

(ii)           prepare and file with
the Commission such amendments and post-effective amendments to the applicable
Registration Statement as may be necessary to keep the Registration Statement
effective for the applicable period set forth in Section 3 or 4 hereof, as
applicable, or such shorter period as will terminate when all Transfer
Restricted Securities covered by such Registration Statement cease to be
outstanding or have been sold; cause the Prospectus to be supplemented by any
required Prospectus supplement, and as so supplemented to be filed pursuant to
Rule 424 under the Securities Act, and to comply fully with the applicable
provisions of Rules 424 and 430A under the Securities Act in a timely manner;
and comply in all material respects with the provisions of the Securities Act
with respect to the disposition of all securities covered by such Registration
Statement during the applicable period in accordance with the intended method
or methods of distribution by the sellers thereof set forth in such
Registration Statement or supplement to the Prospectus;

 

(iii)          advise the selling
Holders promptly and, if requested by such Persons, to confirm such advice in
writing, (A) when the Prospectus or any Prospectus supplement or 

 

8

 

post-effective
amendment has been filed, and, with respect to any Registration Statement or
any post-effective amendment thereto, when the same has become effective, (B)
of any request by the Commission for amendments to the Registration Statement
or amendments or supplements to the Prospectus or for additional information
relating thereto, (C) of the issuance by the Commission of any stop order
suspending the effectiveness of the Registration Statement under the Securities
Act or of the suspension by any state securities commission of the
qualification of the Transfer Restricted Securities for offering or sale in any
jurisdiction, or the initiation of any proceeding for any of the preceding
purposes, (D) of the existence of any fact or the happening of any event that
makes any statement of a material fact made in the Registration Statement, the
Prospectus, any amendment or supplement thereto, or any document incorporated
by reference therein untrue, or that requires the making of any additions to or
changes in the Registration Statement or the Prospectus in order to make the
statements therein not misleading. If at any time the Commission shall issue
any stop order suspending the effectiveness of the Registration Statement, or
any state securities commission or other regulatory authority shall issue an
order suspending the qualification or exemption from qualification of the
Transfer Restricted Securities under state securities or blue sky laws, each of
the Issuers and the Guarantors shall use its commercially reasonable efforts to
obtain the withdrawal or lifting of such order at the earliest possible time;

 

(iv)          furnish without
charge to each of the Initial Purchasers and each selling Holder named in any
Registration Statement before filing with the Commission, copies of any
Registration Statement or any Prospectus included therein or any amendments or
supplements to any such Registration Statement or Prospectus (including all
documents incorporated by reference after the initial filing of such
Registration Statement), which documents will be subject to the review and comment
of such Holders in connection with such sale, if any, for a period of at least
five Business Days, and the Issuers will not file any such Registration
Statement or Prospectus or any amendment or supplement to any such Registration
Statement or Prospectus (including all such documents incorporated by
reference) to which Holders of a majority in aggregate principal amount of
Transfer Restricted Securities covered by such Registration Statement shall reasonably
object in writing within five Business Days after the receipt thereof (such
objection to be deemed timely made upon confirmation of telecopy transmission
within such period). The objection of any such Persons shall be deemed to be
reasonable if such Registration Statement, amendment, Prospectus or supplement,
as applicable, as proposed to be filed, contains a material misstatement or omission;

 

(v)           promptly prior to
the filing of any document that is to be incorporated by reference into a
Registration Statement or Prospectus, provide copies of such document to the
Initial Purchasers and to each selling Holder named in any Registration
Statement, make the Issuers’ and the Guarantors’ representatives available for
discussion of such document and other customary due diligence matters, and
include such information in such document prior to the filing thereof as such
selling Holders reasonably may request;

 

(vi)          make available at
reasonable times for inspection by each selling Holder named in any Registration
Statement and any attorney or accountant retained by such 

 

9

 

Persons, all
financial and other records, pertinent corporate documents and properties of
each of the Issuers and the Guarantors and cause the Issuers’ and the
Guarantors’ officers, directors and employees to supply all information
reasonably requested by any such Holder, attorney or accountant in connection
with such Registration Statement or any post-effective amendment thereto subsequent
to the filing thereof and prior to its effectiveness;

 

(vii)         if requested by any
selling Holders, promptly incorporate in any Registration Statement or
Prospectus, pursuant to a supplement or post-effective amendment if necessary,
such information as such selling Holders may reasonably request to have
included therein, including, without limitation, information relating to the “Plan
of Distribution” of the Transfer Restricted Securities, information with
respect to the principal amount of Transfer Restricted Securities being sold,
the purchase price being paid therefor and any other terms of the offering of
the Transfer Restricted Securities to be sold in such offering; and make all
required filings of such Prospectus supplement or post-effective amendment as
soon as practicable after the Issuers are notified of the matters to be
incorporated in such Prospectus supplement or post-effective amendment;

 

(viii)        cause the Transfer
Restricted Securities covered by the Registration Statement to be rated with
the appropriate rating agencies, if so requested by the Holders of a majority
in aggregate principal amount of Transfer Restricted Securities covered thereby;

 

(ix)           furnish to each
selling Holder, without charge, at least one copy of the Registration
Statement, as first filed with the Commission, and of each amendment thereto,
including financial statements and schedules, all documents incorporated by reference
therein and all exhibits (including exhibits incorporated therein by
reference);

 

(x)            deliver to each selling
Holder without charge, as many copies of the Prospectus (including each preliminary
prospectus) and any amendment or supplement thereto as such Persons reasonably
may request; each of the Issuers and the Guarantors hereby consents to the use
of the Prospectus and any amendment or supplement thereto by each of the
selling Holders in connection with the offering and the sale of the Transfer
Restricted Securities covered by the Prospectus or any amendment or supplement
thereto;

 

(xi)           in connection with any
Underwritten Offering, enter into such agreements (including an underwriting
agreement), and make such representations and warranties, and take all such
other actions in connection therewith in order to expedite or facilitate the
disposition of the Transfer Restricted Securities pursuant to any Registration
Statement contemplated by this Agreement, all to such extent as may be reasonably
requested by any Holder of Transfer Restricted Securities or underwriter in
connection with any such Underwritten Offering and in connection therewith:

 

(A)          obtain an opinion of counsel for the
Issuers and the Guarantors, covering such matters as such parties may
reasonably request;

 

10

 

(B)           obtain a comfort letter in the customary
form and covering matters of the type customarily requested to be covered in
comfort letters by underwriters in connection with primary underwritten
offerings;

 

(C)           set forth in full or incorporate by
reference in the underwriting agreement, if any, the indemnification provisions
and procedures of Section 8 hereof with respect to all parties to be
indemnified pursuant to said Section; and

 

(D)          deliver such other documents and
certificates as may be reasonably requested by such parties to evidence compliance
with Section 6(c)(xi) hereof and with any customary conditions contained in the
underwriting agreement or other agreement entered into by the Issuers or any of
the Guarantors pursuant to this Section 6(c)(xi), if any.

 

(xii)          prior to any public
offering of Transfer Restricted Securities, cooperate with the selling Holders
in connection with the registration and qualification of the Transfer
Restricted Securities under the state securities or blue sky laws of such jurisdictions
as the selling Holders may request and do any and all other acts or things
necessary or advisable to enable the disposition in such jurisdictions of the
Transfer Restricted Securities covered by the Shelf Registration Statement; provided, however, that none of the Issuers or the
Guarantors shall be required to register or qualify as a foreign corporation
where it is not then so qualified or to take any action that would subject it
to the service of process in suits or to taxation, other than as to matters and
transactions relating to the Registration Statement, in any jurisdiction where
it is not then so subject;

 

(xiii)         issue, upon the
request of any Holder of Initial Securities covered by the Shelf Registration
Statement, Exchange Securities having an aggregate principal amount equal to
the aggregate principal amount of Initial Securities surrendered to the Issuers
by such Holder in exchange therefor or being sold by such Holder; such Exchange
Securities to be registered in the name of such Holder or in the name of the
purchaser(s) of such Securities, as the case may be; in return, the Initial
Securities held by such Holder shall be surrendered to the Issuers for cancellation;

 

(xiv)        if a Shelf
Registration Statement is filed pursuant to Section 4 hereof, cooperate
with the selling Holders to facilitate the timely preparation and delivery of
certificates representing Transfer Restricted Securities to be sold and not
bearing any restrictive legends; and enable such Transfer Restricted Securities
to be in such denominations and registered in such names as the Holders may
request at least two Business Days prior to any sale of Transfer Restricted
Securities;

 

(xv)         use commercially
reasonable efforts to cause the Transfer Restricted Securities covered by the
Registration Statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary to enable the seller
or sellers thereof to consummate the disposition of such Transfer Restricted
Securities, subject to the proviso contained in Section 6(c)(xii) hereof;

 

11

 

(xvi)        if any fact or event
contemplated by Section 6(c)(iii)(D) hereof shall exist or have occurred,
prepare a supplement or post-effective amendment to the Registration Statement
or related Prospectus or any document incorporated therein by reference or file
any other required document so that, as thereafter delivered to the purchasers
of Transfer Restricted Securities, the Prospectus will not contain an untrue
statement of a material fact or omit to state any material fact necessary in
order to make the statements therein not misleading;

 

(xvii)       provide a CUSIP
number for all Transfer Restricted Securities not later than the effective date
of the Registration Statement covering such Transfer Restricted Securities and
provide the Trustee under the Indenture with printed certificates for such Transfer
Restricted Securities which are in a form eligible for deposit with The
Depository Trust Company and take all other action necessary to ensure that all
such Transfer Restricted Securities are eligible for deposit with The Depository
Trust Company;

 

(xviii)      cooperate with each
Holder of Transfer Restricted Securities covered by any Registration Statement
and assist in any filings required to be made with the NASD and in the
performance of any due diligence investigation by any underwriter (including
any “qualified independent underwriter”) that is required to be retained in
accordance with the rules and regulations of the NASD;

 

(xix)         otherwise use commercially
reasonable efforts to comply in all material respects with all applicable rules
and regulations of the Commission, and make generally available to its security
holders, as soon as practicable, a consolidated earnings statement meeting the
requirements of Rule 158 (which need not be audited) for the twelve-month
period beginning with the first month of the Issuers’ first fiscal quarter
commencing after the effective date of the Registration Statement;

 

(xx)          cause the Indenture
to be qualified under the Trust Indenture Act not later than the effective date
of the first Registration Statement required by this Agreement, and, in
connection therewith, cooperate with the Trustee and the Holders of Transfer
Restricted Securities to effect such changes to the Indenture as may be
required for such Indenture to be so qualified in accordance with the terms of
the Trust Indenture Act; and to execute and use its commercially reasonable efforts
to cause the Trustee to execute, all documents that may be required to effect
such changes and all other forms and documents required to be filed with the
Commission to enable such Indenture to be so qualified in a timely manner;

 

(xxi)         cause all Transfer
Restricted Securities covered by the Registration Statement to be listed on
each securities exchange or automated quotation system on which similar
securities issued by the Issuers are then listed if requested by the Holders of
a majority in aggregate principal amount of Initial Securities; and

 

(xxii)        provide promptly to
each Holder upon request each document filed with the Commission pursuant to
the requirements of Section 13 and Section 15 of the Exchange Act.

 

12

 

Each Holder agrees by acquisition of a
Transfer Restricted Security that, upon receipt of any notice from the Issuers of
(A) a suspension of the use of a Shelf Registration Statement or (B) the
existence of any fact of the kind described in Section 6(c)(iii)(D) hereof,
such Holder will forthwith discontinue disposition of Transfer Restricted Securities
pursuant to the applicable Registration Statement until the end of such
suspension and such Holder’s receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 6(c)(xvi) hereof, or until it is
advised in writing (the “Advice”) by the Issuers that the use of the
Prospectus may be resumed, and has received copies of any additional or
supplemental filings that are incorporated by reference in the Prospectus. If
so directed by the Issuers, each Holder will deliver to the Issuers (at the Issuers’
expense) all copies, other than permanent file copies then in such Holder’s
possession, of the Prospectus covering such Transfer Restricted Securities that
was current at the time of receipt of such notice. In the event the Issuers
shall give any such notice, the time period regarding the effectiveness of such
Registration Statement set forth in Section 3 or 4 hereof, as applicable, shall
be extended by the number of days during the period from and including the date
of the giving of such notice pursuant to Section 6(c)(iii)(D) hereof to and
including the date when each selling Holder covered by such Registration
Statement shall have received the copies of the supplemented or amended
Prospectus contemplated by Section 6(c)(xvi) hereof or shall have received the
Advice. Notwithstanding the foregoing, the Issuers and the Guarantors (A) may
give any such notice only twice during any 365-day period, any such delays and
suspensions shall not exceed 60 days in the aggregate and there shall not be
more than two suspensions in effect during any 365-day period; and (B) shall
not be obligated to pay Additional Interest pursuant to Section 5 hereof during
any suspension of the use of the Shelf Registration Statement if such
suspension has been effected in accordance with this last paragraph of Section
6;  provided,
however, if any such delay or suspension
continues for a period in excess of 30 days, Additional Interest shall be
payable in accordance with Section 5 from the 31st day of such delay
or suspension until such Registration Default is cured.

 

SECTION 7.           Registration Expenses.

 

(a)           All
expenses incident to the Issuers’ and the Guarantors’ performance of or compliance
with this Agreement will be borne by the Issuers and the Guarantors, jointly
and severally, regardless of whether a Registration Statement becomes
effective, including, without limitation: (i) all registration and filing fees
and expenses (including filings made by any Initial Purchaser or Holder with
the NASD (and, if applicable, the fees and expenses of any “qualified
independent underwriter” and its counsel that may be required by the rules and
regulations of the NASD)); (ii) all fees and expenses of compliance with
federal securities and state securities or blue sky laws; (iii) all expenses of
printing (including printing certificates for the Exchange Securities to be
issued in the Exchange Offer and printing of Prospectuses), messenger and
delivery services and telephone; (iv) all fees and disbursements of counsel for
the Issuers, the Guarantors and, subject to Section 7(b) hereof, the Holders of
Transfer Restricted Securities; (v) all application and filing fees in
connection with listing the Exchange Securities on a securities exchange or automated
quotation system pursuant to the requirements thereof; and (vi) all fees and
disbursements of independent certified public accountants of the Issuers and
the Guarantors (including the expenses of any special audit and comfort letters
required by or incident to such performance).

 

13

 

Each of the Issuers and the Guarantors will,
in any event, bear its internal expenses (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expenses of any annual audit and the fees and expenses
of any Person, including special experts, retained by the Issuers or the
Guarantors.

 

(b)           In
connection with any Shelf Registration Statement required by this Agreement,
the Issuers and the Guarantors, jointly and severally, will reimburse the
Initial Purchasers and the Holders of Transfer Restricted Securities being
registered pursuant to the Shelf Registration Statement for the reasonable fees
and disbursements of not more than one counsel, who shall be Cahill Gordon
& Reindel LLP or such other counsel as may be chosen by the Holders of a
majority in principal amount of the Transfer Restricted Securities for whose
benefit such Shelf Registration Statement is being prepared.

 

SECTION 8.           Indemnification.

 

(a)           The
Issuers and the Guarantors, jointly and severally, agree to indemnify and hold
harmless (i) each Holder and (ii) each Person, if any, who controls (within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act)
any Holder (any of the Persons referred to in this clause (ii) being
hereinafter referred to as a “controlling person”) and (iii) the respective
officers, directors, partners, employees, representatives and agents of any
Holder or any controlling person (any Person referred to in clause (i), (ii) or
(iii) may hereinafter be referred to as an “Indemnified Holder”), to the
fullest extent lawful, from and against any and all losses, claims, damages, liabilities,
judgments, actions and expenses (including, without limitation, and as
incurred, reimbursement of all reasonable costs of investigating, preparing,
pursuing, settling, compromising, paying or defending any claim or action, or
any investigation or proceeding by any governmental agency or body, commenced
or threatened, including the reasonable fees and expenses of counsel to any
Indemnified Holder), joint or several, directly or indirectly caused by,
related to, based upon, arising out of or in connection with any untrue
statement or alleged untrue statement of a material fact contained in any
Registration Statement or Prospectus (or any amendment or supplement thereto),
or any omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading,
except insofar as such losses, claims, damages, liabilities or expenses are
caused by an untrue statement or omission or alleged untrue statement or
omission that is made in reliance upon and in conformity with information
relating to any of the Holders furnished in writing to the Issuers by any of
the Holders expressly for use therein. This indemnity agreement shall be in
addition to any liability which the Issuers or any of the Guarantors may otherwise
have.

 

In case any action or proceeding (including
any governmental or regulatory investigation or proceeding) shall be brought or
asserted against any of the Indemnified Holders with respect to which indemnity
may be sought against the Issuers or the Guarantors, such Indemnified Holder
(or the Indemnified Holder controlled by such controlling person) shall
promptly notify the Issuers and the Guarantors in writing; provided,
however, that the failure to give such notice shall not relieve any
of the Issuers or the Guarantors of their respective obligations pursuant to
this Agreement. Such Indemnified Holder shall have the right to employ its own
counsel in any such action and the fees and expenses of such counsel shall be
paid, as incurred, by the Issuers and the Guarantors (regardless of whether it
is ultimately determined that an Indemnified Holder 

 

14

 

is not
entitled to indemnification hereunder). The Issuers and the Guarantors shall
not, in connection with any one such action or proceeding or separate but
substantially similar or related actions or proceedings in the same
jurisdiction arising out of the same general allegations or circumstances, be
liable for the reasonable fees and expenses of more than one separate firm of
attorneys (in addition to any local counsel) at any time for such Indemnified
Holders, which firm shall be designated by the Holders. The Issuers and the Guarantors
shall be liable for any settlement of any such action or proceeding effected
with the Issuers’ and the Guarantors’ prior written consent, which consent
shall not be withheld unreasonably, and each of the Issuers and the Guarantors
agrees to indemnify and hold harmless any Indemnified Holder from and against
any loss, claim, damage, liability or expense by reason of any settlement of
any action effected with the written consent of the Issuers and the Guarantors.
The Issuers and the Guarantors shall not, without the prior written consent of
each Indemnified Holder, settle or compromise or consent to the entry of judgment
in or otherwise seek to terminate any pending or threatened action, claim,
litigation or proceeding in respect of which indemnification or contribution
may be sought hereunder (whether or not any Indemnified Holder is a party
thereto), unless such settlement, compromise, consent or termination includes
an unconditional release of each Indemnified Holder from all liability arising
out of such action, claim, litigation or proceeding.

 

(b)           Each
Holder of Transfer Restricted Securities agrees, severally and not jointly, to
indemnify and hold harmless the Issuers, the Guarantors and the respective
directors, officers of the Issuers and the Guarantors who sign a Registration
Statement, and any Person controlling (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) the Issuers or any of the
Guarantors, and the respective officers, directors, partners, employees, representatives
and agents of each such Person, to the same extent as the foregoing indemnity
from the Issuers and the Guarantors to each of the Indemnified Holders, but
only with respect to claims and actions based on information relating to such
Holder furnished in writing by such Holder expressly for use in any Registration
Statement. In case any action or proceeding shall be brought against the
Issuers, the Guarantors or their respective directors or officers or any such
controlling person in respect of which indemnity may be sought against a Holder
of Transfer Restricted Securities, such Holder shall have the rights and duties
given the Issuers and the Guarantors, and the Issuers, the Guarantors, their
respective directors and officers and such controlling person shall have the
rights and duties given to each Holder by the preceding paragraph.

 

(c)           If
the indemnification provided for in this Section 8 is unavailable to an indemnified
party under Section 8(a) or (b) hereof (other than by reason of exceptions
provided in those Sections) in respect of any losses, claims, damages,
liabilities, judgments, actions or expenses referred to therein, then each
applicable indemnifying party, in lieu of indemnifying such indemnified party,
shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages, liabilities or expenses in such
proportion as is appropriate to reflect the relative benefits received by the
Issuers and the Guarantors, on the one hand, and the Holders, on the other
hand, from the Initial Placement (which in the case of the Issuers and the
Guarantors shall be deemed to be equal to the total net proceeds to the Issuers
and the Guarantors from the Initial Placement), the amount of Additional
Interest which did not become payable as a result of the filing of the Registration
Statement resulting in such losses, claims, damages, liabilities, judgments
actions or expenses, and such Registration Statement, or if such allocation is
not permitted by applicable law, the relative fault of the Issuers and the
Guarantors, on the one hand, 

 

15

 

and the Holders, on the other hand, in
connection with the statements or omissions which resulted in such losses,
claims, damages, liabilities or expenses, as well as any other relevant equitable
considerations. The relative fault of the Issuers and the Guarantors, on the
one hand, and of the Indemnified Holder, on the other hand, shall be determined
by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Issuers or any of the
Guarantors, on the one hand, or the Indemnified Holders, on the other hand, and
the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission. The amount paid or payable by
a party as a result of the losses, claims, damages, liabilities and expenses
referred to above shall be deemed to include, subject to the limitations set
forth in the second paragraph of Section 8(a) hereof, any legal or other fees
or expenses reasonably incurred by such party in connection with investigating
or defending any action or claim.

 

The Issuers, the Guarantors and each Holder
of Transfer Restricted Securities agree that it would not be just and equitable
if contribution pursuant to this Section 8(c) were determined by pro rata
allocation (even if the Holders were treated as one entity for such purpose) or
by any other method of allocation which does not take account of the equitable
considerations referred to in the immediately preceding paragraph. The amount
paid or payable by an indemnified party as a result of the losses, claims,
damages, liabilities or expenses referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action or claim. Notwithstanding
the provisions of this Section 8, none of the Holders (and its related
Indemnified Holders) shall be required to contribute, in the aggregate, any
amount in excess of the amount by which the total discount received by such
Holder with respect to the sale of the Transfer Restricted Securities pursuant
to a Registration Statement exceeds the amount of any damages which such Holder
has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation. The Holders’ obligations to contribute pursuant
to this Section 8(c) are several in proportion to the respective principal
amount of Initial Securities held by each of the Holders hereunder and not
joint.

 

SECTION 9.           Rule 144A. Each of
the Issuers and the Guarantors hereby agrees with each Holder, for so
long as any Transfer Restricted Securities remain outstanding, to make
available to any Holder or beneficial owner of Transfer Restricted Securities
in connection with any sale thereof and any prospective purchaser of such
Transfer Restricted Securities from such Holder or beneficial owner, the information
required by Rule 144A(d)(4) under the Securities Act in order to permit resales
of such Transfer Restricted Securities pursuant to Rule 144A under the
Securities Act.

 

SECTION 10.         Miscellaneous.

 

(a)           Remedies. Each of the
Issuers and the Guarantors hereby agrees that monetary damages would not be
adequate compensation for any loss incurred by reason of a breach by it 

 

16

 

of the provisions of this Agreement and
hereby agree to waive the defense in any action for specific performance that a
remedy at law would be adequate.

 

(b)           No Inconsistent Agreements. Each of the Issuers and the Guarantors will not on or after the
date of this Agreement enter into any agreement with respect to its securities
that is inconsistent with the rights granted to the Holders in this Agreement
or otherwise conflicts with the provisions hereof. None of the Issuers or any
of the Guarantors have previously entered into any agreement granting any
registration rights with respect to its securities to any Person. The rights
granted to the Holders hereunder do not in any way conflict with and are not
inconsistent with the rights granted to the holders of the Issuers’ or any of
the Guarantors’ securities under any agreement in effect on the date hereof.

 

(c)           Adjustments Affecting the Securities. The Issuers will not
take any action, or permit any change to occur, with respect to the initial Securities
that would materially and adversely affect the ability of the Holders to
Consummate any Exchange Offer.

 

(d)           Amendments and Waivers. The provisions of this Agreement may
not be amended, modified or supplemented, and waivers or consents to or
departures from the provisions hereof may not be given unless the Issuers have (i) in
the case of Section 5 hereof and this Section 10(d)(i), obtained the
written consent of Holders of all outstanding Transfer Restricted Securities
and (ii) in the case of all other provisions hereof obtained the written
consent of Holders of a majority of the outstanding principal amount of Transfer
Restricted Securities (excluding any Transfer Restricted Securities held by the
Issuers or its Affiliates). Notwithstanding the foregoing, a waiver or consent
to departure from the provisions hereof that relates exclusively to the rights
of Holders whose securities are being tendered pursuant to the Exchange Offer
and that does not affect directly or indirectly the rights of other Holders
whose securities are not being tendered pursuant to such Exchange Offer may be
given by the Holders of a majority of the outstanding principal amount of
Transfer Restricted Securities being tendered or registered; provided, however, that, with respect to
any matter that directly or indirectly affects the rights of any Initial Purchaser
hereunder, the Issuers shall obtain the written consent of each such Initial Purchaser
with respect to which such amendment, qualification, supplement, waiver,
consent or departure is to be effective.

 

(e)           Notices. All notices and other communications provided for
or permitted hereunder shall be made in writing by hand-delivery, first-class
mail (registered or certified, return receipt requested), telex, telecopier, or
air courier guaranteeing overnight delivery:

 

(i)            if to a Holder, at
the address set forth on the records of the Registrar under the Indenture, with
a copy to the Registrar under the Indenture; and

 

(ii)           if to the Issuers:

 

Barrington
Broadcasting Company

2500 W.
Higgins Road,

Suite 880

Hoffman Estates,
Illinois  60195

 

17

 

Facsimile:  (847) 755-3045

Attention:  Chief Financial Officer

 

With a copy
to:

 

Paul,
Hastings, Janofsky & Walker LLP

Park Avenue
Tower

75 E. 55th
Street

New York, New York
 10022

Facsimile:  (212) 230-7697

Attention:  Jeffrey Pellegrino

 

All such notices and communications shall be
deemed to have been duly given:  at the
time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when answered back, if
telexed; when receipt acknowledged, if telecopied; and on the next Business
Day, if timely delivered to an air courier guaranteeing overnight delivery.

 

Copies of all such notices, demands or other
communications shall be concurrently delivered by the Person giving the same to
the Trustee at the address specified in the Indenture.

 

(f)            Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the parties,
including, without limitation, and without the need for an express assignment,
subsequent Holders of Transfer Restricted Securities; provided,
however, that this Agreement shall not inure to the benefit of or be
binding upon a successor or assign of a Holder unless and to the extent such
successor or assign acquired Transfer Restricted Securities from such Holder.

 

(g)           Counterparts. This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

 

(h)           Headings. The headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect the meaning hereof.

 

(i)            Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO THE CONFLICTS OF LAW RULES THEREOF.

 

(j)            Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired
thereby.

 

18

 

(k)           Entire Agreement. This Agreement, together with the Purchase
Agreement, the Initial Securities and the Indenture, is intended by the parties
as a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted by the Issuers with
respect to the Transfer Restricted Securities. This Agreement supersedes all
prior agreements and understandings between the parties with respect to such subject
matter.

 

19

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date first written above.

 

	
   

  	
  BARRINGTON BROADCASTING GROUP LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul McNicol

  
	
   

  	
   

  	
  Name:

  	
  Paul McNicol

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BARRINGTON BROADCASTING CAPITAL

  
	
   

  	
      CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul McNicol

  
	
   

  	
   

  	
  Name:

  	
  Paul McNicol

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  

 

20

 

	
   

  	
  BARRINGTON QUINCY LLC

  
	
   

  	
  BARRINGTON JEFFERSON CITY LLC

  
	
   

  	
  BARRINGTON AMARILLO LLC

  
	
   

  	
  BARRINGTON FLINT LLC

  
	
   

  	
  BARRINGTON PEORIA LLC

  
	
   

  	
  BARRINGTON MYRTLE BEACH LLC

  
	
   

  	
  BARRINGTON HARLINGEN LLC

  
	
   

  	
  BARRINGTON KIRKSVILLE LLC

  
	
   

  	
  BARRINGTON COLORADO SPRINGS LLC

  
	
   

  	
  BARRINGTON COLUMBIA LLC

  
	
   

  	
  BARRINGTON ALBANY LLC

  
	
   

  	
  BARRINGTON MARQUETTE LLC

  
	
   

  	
  BARRINGTON TOLEDO LLC

  
	
   

  	
  BARRINGTON TRAVERSE CITY LLC

  
	
   

  	
  BARRINGTON SYRACUSE LLC

  
	
   

  	
  BARRINGTON BAY CITY LLC

  
	
   

  	
  BARRINGTON PEORIA LICENSE LLC

  
	
   

  	
  BARRINGTON FLINT LICENSE LLC

  
	
   

  	
  BARRINGTON BAY CITY LICENSE LLC

  
	
   

  	
  BARRINGTON MYRTLE BEACH LICENSE 

  
	
   

  	
            LLC

  
	
   

  	
  BARRINGTON SYRACUSE LICENSE LLC

  
	
   

  	
  BARRINGTON HARLINGEN LICENSE LLC

  
	
   

  	
  BARRINGTON TRAVERSE CITY LICENSE 

  
	
   

  	
            LLC

  
	
   

  	
  BARRINGTON MARQUETTE LICENSE LLC

  
	
   

  	
  BARRINGTON QUINCY LICENSE LLC

  
	
   

  	
  BARRINGTON AMARILLO LICENSE LLC

  
	
   

  	
  BARRINGTON COLUMBIA LICENSE LLC

  
	
   

  	
  BARRINGTON COLORADO SPRINGS 

  
	
   

  	
            LICENSE
  LLC

  
	
   

  	
  BARRINGTON ALBANY LICENSE LLC

  
	
   

  	
  BARRINGTON KIRKSVILLE LICENSE LLC

  
	
   

  	
  BARRINGTON JEFFERSON CITY LICENSE

  
	
   

  	
            LLC

  
	
   

  	
  BARRINGTON TOLEDO LICENSE LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul McNicol

  
	
   

  	
   

  	
  Name:

  	
  Paul McNicol

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  

 

21

 

The foregoing Registration Rights Agreement
is hereby confirmed and accepted as of the date first above written:

 

	
  BANC OF AMERICA SECURITIES LLC

  
	
  WACHOVIA CAPITAL MARKETS, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Banc of
  America Securities LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Aaron
  Peyton

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Aaron Peyton

  
	
   

  	
  Title:

  	
  Vice
  President

  
					

 

22

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