Document:

Registration Rights Agreement

Exhibit 4.2

FORM OF REGISTRATION RIGHTS AGREEMENT

            This REGISTRATION
RIGHTS AGREEMENT (“Agreement”) is made as of October __, 2003 by and among Nano-Proprietary, Inc., a Texas corporation
(the “Company”), and the persons listed as the Investors on the signature pages hereto (the “Investors”),
and each person or entity that subsequently becomes a party to this Agreement pursuant to, and in accordance with, the provisions
of Section 11 hereof (collectively, the “Permitted Transferees” and each individually a “Permitted
Transferee”).

            WHEREAS, pursuant to a
Securities Purchase Agreement (the “Securities Purchase Agreement”), dated as of the date hereof, the Company has
agreed to issue and sell to the Investors, and each Investor has agreed to purchase from the Company, up to $2,000,000 of the
Company’s authorized but unissued common stock (the “Shares”), $0.001 par value per share (the “Common
Stock”); and

            WHEREAS, the terms of
the Securities Purchase Agreement provide that it shall be a condition precedent to the closing of the transactions thereunder for
the Company and the Investors to execute and deliver this Agreement.

            NOW, THEREFORE, in
consideration of the premises and mutual covenants contained herein, the parties hereto hereby agree as follows:

            
1.          DEFINITIONS.  As used in this Agreement, the following terms shall have the following respective meanings:

            “Board”
shall mean the board of directors of the Company.

            “Closing”
shall mean the last Closing under the Securities Purchase Agreement.

            “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, and all of the rules and regulations promulgated
thereunder.

            “Holders”
shall mean, collectively, the Investors and the Permitted Transferees; provided, however, that the term
“Holders” shall not include any of the foregoing that ceases to own or hold any Registrable Securities.

            “Qualifying
Holder” shall have the meaning ascribed thereto in Section 11 hereof.

            “Registrable
Securities” shall mean the Shares issued to the Investors pursuant to the Securities Purchase Agreement, and shall include
any shares of the Company’s Common Stock issued with respect to the Registrable Securities as a result of any stock split,
stock dividend, recapitalization, exchange or similar event; provided, however, that all Registrable Securities shall
cease to be Registrable Securities once they have been sold pursuant to a registration statement or may be sold pursuant to Rule
144.

            “Rule 144”
shall mean Rule 144 promulgated under the Securities Act and any successor or substitute rule, law or provision.

            “SEC” shall
mean the Securities and Exchange Commission.

            “Securities
Act” shall mean the Securities Act of 1933, as amended, and all of the rules and regulations promulgated there
under.

            
2.          EFFECTIVENESS.  This Agreement shall become effective and legally binding upon the Closing.

           
3.          MANDATORY REGISTRATION.

                        (a)          By the later to occur of (i) thirty (30) days after the Closing (or, if the date that is thirty (30) days after the Closing is
not a business day, the next business day immediately following such date) or (ii) November 15, 2003, the Company will prepare and
file with the SEC a registration statement on Form S-2 for the purpose of registering under the Securities Act all of the
Registrable Securities for resale by, and for the account of, the Holders as selling stockholders thereunder (the
“Registration Statement”).  The Registration Statement shall permit the Holders to offer and sell, on a delayed or
continuous basis pursuant to Rule 415 under the Securities Act, any or all of the Registrable Securities.  The Company agrees
to use commercially reasonable efforts to cause the Registration Statement to become effective as soon as reasonably practicable
(which shall include using commercially reasonable efforts to respond to any comments of the SEC in respect of the Registration
Statement within ten (10) business days following receipt thereof.  The Company shall use its commercially reasonable efforts
to keep the Registration Statement effective until such date that is the earlier of (i) the date when all of the Registrable
Securities registered thereunder shall have been sold or (ii) two (2) years after the Closing, subject to extension as set forth
below (such date is referred to herein as the “Mandatory Registration Termination Date”).  Thereafter, the Company
shall be entitled to withdraw the Registration Statement and the Holders shall have no further right to offer or sell any of the
Registrable Securities pursuant to the Registration Statement (or any prospectus relating thereto).  In the event the right of
the selling Holders to use the Registration Statement (and the prospectus relating thereto) is delayed or suspended pursuant to
Sections 4(c) or 10 hereof, if the events described in clause (i) or (ii) above of this subsection (a) have not yet occurred, the
Company shall be required to extend the Mandatory Registration Termination Date by the same number of days as such delay or
Suspension Period (as defined in Section 10 hereof), provided that such delay is not the result of the Holders’ failure or
delay to furnish information required under Section 5 hereof.

                        (b)          In the event that the Registration Statement is not filed with the SEC by the later of (i) thirty (30) days after the Closing
(or, if the date that is thirty (30) days after the Closing is not a business day, the next business day immediately following such
date) or (ii) November 15, 2003, or the Company fails to use its commercially reasonable efforts to respond to any comments of the
SEC in respect of the Registration Statement within ten (10) business days following receipt thereof, the Company shall pay, at its
sole option, either in (ii) cash, check or by wire transfer, or (ii) in common stock of the Company at the then current five-day
trading average of such common stock to each Investor, one percent (1.0%) of the aggregate Purchase Price (as defined in the
Securities Purchase Agreement) paid by the Investor for all Shares sold to each such Investor pursuant to the Securities Purchase
Agreement.  For every additional thirty (30) days that the Company continues to be delayed from filing the Registration
Statement with the SEC or continues to fail to use its commercially reasonable efforts to respond to any comments of the SEC in
respect of the Registration Statement, the Company will issue to each Investor, an additional one percent (1.0%) of the Shares sold
to each such Investor pursuant to the Securities Purchase Agreement in accordance with the terms in this Section 3(b). 

                        (c)          Within three (3) business days after a Registration Statement that covers applicable Registrable Securities is declared
effective by the SEC, the Company shall deliver, or shall cause legal counsel to deliver, to the transfer agent for such
Registrable Securities (with copies to the Holders whose Registrable Securities are included in such Registration Statement)
confirmation that such Registration Statement has been declared effective by the SEC in such form as agreed to by counsel to the
Company and counsel to the Holders at such time.

                        (d)          Subject to review and comment by the SEC, the Plan of Distribution set forth in the Registration Statement shall be
substantially as set forth in Exhibit B attached hereto.

          4.          OBLIGATIONS OF THE COMPANY.  In connection with the Company’s obligation under Section 3 hereof to file the
Registration Statement with the SEC and to use commercially reasonable efforts to cause the Registration Statement to become
effective, the Company shall:

                        (a)          Prepare and file with the SEC, as expeditiously as reasonably practicable, such amendments and supplements to the Registration
Statement and the prospectus used in connection therewith as may be necessary to comply with the provisions of the Securities Act
with respect to the disposition of all Registrable Securities covered by the Registration Statement;

                        (b)          Promptly furnish to the selling Holders such number of copies of a prospectus, including a preliminary prospectus, in conformity
with the requirements of the Securities Act, and such other documents (including, without limitation, prospectus amendments and
supplements as are prepared by the Company in accordance with Section 4(a) above) as the selling Holders may reasonably request in
order to facilitate the disposition of such selling Holder’s Registrable Securities;

                        (c)          Promptly notify the selling Holders, at any time when a prospectus relating to the Registration Statement is required to be
delivered under the Securities Act, of the occurrence of any event as a result of which the prospectus included in or relating to
the Registration Statement contains an untrue statement of a material fact or omits any fact necessary to make the statements
therein not misleading in light of the circumstances in which they are made; and, thereafter, the Company will promptly prepare
(and, when completed, give notice to each selling Holder) a supplement or amendment to such prospectus so that, as thereafter
delivered to the purchasers of such Registrable Securities, such prospectus will not contain an untrue statement of a material fact
or omit to state any fact necessary to make the statements therein not misleading in light of the circumstances in which they are
made; provided that upon such notification by the Company, the selling Holders will not offer or sell Registrable Securities until
the Company has notified the selling Holders that it has prepared a supplement or amendment to such prospectus and delivered copies
of such supplement or amendment to the selling Holders (it being understood and agreed by the Company that the foregoing proviso
shall in no way diminish or otherwise impair the Company’s obligation to promptly prepare a prospectus amendment or
supplement as above provided in this Section 4(c) and deliver copies of same as above provided in Section 4(b) hereof);

                        (d)          Use commercially reasonable efforts to register and qualify the Registrable Securities covered by the Registration Statement
under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably appropriate in the opinion of the
Company,  provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do
business, to file a general consent to service of process or to become subject to any material tax in any such states or
jurisdictions, and provided further that (notwithstanding anything in this Agreement to the contrary with respect to the bearing of
expenses) if any jurisdiction in which any of such Registrable Securities shall be qualified shall require that expenses incurred
in connection with the qualification therein of any such Registrable Securities be borne by the selling Holder, then the selling
Holders shall, to the extent required by such jurisdiction, pay their pro rata share of such qualification expenses; and

                        (e)          Promptly after a sale of Registrable Securities pursuant to the Registration Statement (assuming that no stop order is in effect
with respect to the Registration Statement at the time of such sale), the Company shall cooperate with the selling Holder and
provide the transfer agent for the Common Stock with such instructions and legal opinions as may be required in order to facilitate
the issuance to the purchaser (or the selling Holder’s broker) of new unlegended certificates for such Registrable
Securities.

          5.          FURNISH INFORMATION.  It shall be a condition precedent to the obligations of the Company to take any action pursuant to
this Agreement that the selling Holders shall furnish to the Company such information regarding them and the securities held by
them as the Company shall reasonably request and as shall be required in order to effect any registration by the Company pursuant
to this Agreement.

          6.          EXPENSES OF REGISTRATION.  All expenses incurred in connection with the registration of the Registrable Securities pursuant
to this Agreement (excluding underwriting, brokerage and other selling commissions and discounts), including without limitation all
registration and qualification and filing fees, printing, and fees and disbursements of counsel for the Company, shall be borne by
the Company.

          7.          DELAY OF REGISTRATION.  The Holders shall not take any action to restrain, enjoin or otherwise delay any registration as
the result of any controversy which might arise with respect to the interpretation or implementation of this Agreement.

          8.          INDEMNIFICATION AND CONTRIBUTION.

                        (a)          To the extent permitted by law, the Company will indemnify and hold harmless each selling Holder, any investment banking firm
acting as an underwriter for the selling Holder, any broker/dealer acting on behalf of any selling Holder and each officer and
director of such selling Holder, such underwriter, such broker/dealer and each person, if any, who controls such selling Holder,
underwriter or broker/dealer within the meaning of the Securities Act, against any losses, claims, damages or liabilities, joint or
several, to which they may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any untrue or alleged untrue statement of any material
fact contained in the Registration Statement, in any preliminary prospectus or final prospectus relating thereto or in any
amendments or supplements to the Registration Statement or any such preliminary prospectus or final prospectus, or arise out of or
are based upon the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading in light of the circumstances in which they are made, and which were not corrected by a
subsequently filed amendment or supplement thereto; and will reimburse such selling Holder, such underwriter, broker/dealer or such
officer, director or controlling person for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity
agreement contained in this Section 8(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability
or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor
shall the Company be liable in any such case for any such loss, damage, liability or action to the extent that it: (i) arises out
of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in connection with the
Registration Statement, any preliminary prospectus or final prospectus relating thereto or any amendments or supplements to the
Registration Statement or any such preliminary prospectus or final prospectus, in reliance upon and in conformity with written
information furnished expressly for use in connection with the Registration Statement or any such preliminary prospectus or final
prospectus by the selling Holder, any underwriter for them or controlling person with respect to them; or (ii) is in excess of the
gross proceeds received by the Company under the Securities Purchase Agreement.  This Section 8(a) shall not inure to the
benefit of any selling Holder with respect to any person asserting loss, damage, liability or action as a result of a selling
Holder selling Registrable Securities during a Suspension Period (as defined in Section 10 hereof) or selling in violation of
Section 5(c) of the Securities Act.

                        (b)          To the extent permitted by law, each selling Holder will severally and not jointly indemnify and hold harmless the Company, each
of its officers and directors, each person, if any, who controls the Company within the meaning of the Securities Act, any
investment banking firm acting as underwriter for the Company or the selling Holder, or any broker/dealer acting on behalf of the
Company or any other selling Holder, and all other selling Holders against any losses, claims, damages or liabilities to which the
Company or any such director, officer, controlling person, underwriter, or broker/dealer or other selling Holder may become subject
to, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereto)
arise out of or are based upon any untrue or alleged untrue statement of any material fact contained in the Registration Statement
or any preliminary prospectus or final prospectus, relating thereto or in any amendments or supplements to the Registration
Statement or any such preliminary prospectus or final prospectus, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances in which they are made, in each case to the extent and only to the extent that such untrue statement
or alleged untrue statement or omission or alleged omission was made in the Registration Statement, in any preliminary prospectus
or final prospectus relating thereto or in any amendments or supplements to the Registration Statement or any such preliminary
prospectus or final prospectus, in reliance upon and in conformity with written information furnished by such selling Holder
expressly for use in connection with the Registration Statement or any preliminary prospectus or final prospectus related thereto;
and such selling Holders will reimburse any legal or other expenses reasonably incurred by the Company or any such director,
officer, controlling person, underwriter, broker/dealer or other selling Holder in connection with investigating or defending any
such loss, claim, damage, liability or action; provided, however, that the liability of each selling Holder hereunder
shall be limited to the gross proceeds (net of underwriting discounts and commissions, if any) received by such selling Holder from
the sale of Registrable Securities covered by the Registration Statement; and provided, further, however, that
the indemnity agreement contained in this Section 8(b) shall not apply to amounts paid in settlement of any such loss, claim,
damage, liability or action if such settlement is effected without the consent of those selling Holder(s) against which the request
for indemnity is being made (which consent shall not be unreasonably withheld).

                        (c)          Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 8, notify the
indemnifying party in writing of the commencement thereof and the indemnifying party shall have the right to participate in and, to
the extent the indemnifying party desires, jointly with any other indemnifying party similarly noticed, to assume at its expense
the defense thereof with counsel mutually satisfactory to the indemnifying parties with the consent of the indemnified party (which
consent will not be unreasonably withheld, conditioned or delayed).  In the event that the indemnifying party assumes any such
defense, the indemnified party may participate in such defense with its own counsel and at its own expense, provided,
however, that the counsel for the indemnifying party shall act as lead counsel in all matters pertaining to such defense or
settlement of such claim and the indemnifying party shall only pay for such indemnified party’s expenses for the period prior
to the date of its participation on such defense.  The failure to notify an indemnifying party promptly of the commencement of
any such action, if materially prejudicial to his ability to defend such action, shall relieve such indemnifying party of any
liability to the indemnified party under this Section 8 to the extent of such prejudice, but the omission so to notify the
indemnifying party will not relieve him of any liability which he may have to any indemnified party otherwise other than under this
Section 8.

                        (d)          Notwithstanding anything to the contrary herein, without the prior written consent of the indemnified party, the indemnifying
party shall not be entitled to settle any claim, suit or proceeding unless in connection with such settlement the indemnified party
receives an unconditional release with respect to the subject matter of such claim, suit or proceeding and such settlement does not
contain any admission of fault by the indemnified party.

                        (e)          In order to provide for just and equitable contribution under the Securities Act in any case in which (i) the indemnified party
makes a claim for indemnification pursuant to Section 8 hereof but is judicially determined (by the entry of a final judgment or
decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that
such indemnification may not be enforced in such case notwithstanding the fact that the express provisions of Section 8 hereof
provide for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any
indemnified party, then the Company and the applicable selling Holder shall contribute to the aggregate losses, claims, damages or
liabilities to which they may be subject (which shall, for all purposes of this Agreement, include, but not be limited to, all
reasonable costs of defense and investigation and all reasonable attorneys’ fees), in either such case (after contribution
from others) on the basis of relative fault as well as any other relevant equitable considerations.  The relative fault 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 Company on the one hand or the
applicable selling Holder on the other hand, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.  The Company and the Holders agree that it would not be just and
equitable if contribution pursuant to this Section 8(e) were determined by pro rata allocation or by any other method of allocation
which does not take account of the equitable considerations referred to in this Section 8(e).  The amount paid or payable by
an indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in
this Section 8 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection
with investigating or defending any such action or claim.  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.

                       
Notwithstanding any other provision of this Section 8(e), in no event shall (i) any selling Holder be required to undertake
liability to any person under this Section 8(e) for any amounts in excess of the dollar amount of the gross proceeds to be received
by the selling Holder from the sale of such selling Holder’s Registrable Securities (after deducting any fees, discounts and
commissions applicable thereto) pursuant to any Registration Statement under which such Registrable Securities are or were to be
registered under the Securities Act and (ii) any underwriter be required to undertake liability to any person hereunder for any
amounts in excess of the aggregate discount, commission or other compensation payable to such underwriter with respect to the
Registrable Securities underwritten by it and distributed pursuant to the Registration Statement.

          9.          REPORTS UNDER THE EXCHANGE ACT.  With respect to each Holder, from the date of Closing until the date on which all of the
Registrable Securities that such Holder owns or has the right to acquire become freely transferable under Rule 144(k) promulgated
under the Securities Act, the Company agrees to use its best efforts: (i) to make and keep public information available, as those
terms are understood and defined in Rule 144, (ii) to file with the SEC all reports and other documents required to be filed by an
issuer of securities registered under Sections 13 or 15(d) of the Exchange Act, and (iii) if such filings are not available via
EDGAR, to furnish to such Holder as long as the Holder owns or has the right to acquire any Registrable Securities prior to the
applicable termination date described above, a copy of the most recent annual or quarterly report of the Company, and such other
reports and documents so filed by the Company under Sections 13 or 15(d) of the Exchange Act as may be reasonably requested in
availing such Holder of any rule or regulation of the SEC permitting the selling of any such Registrable Securities without
registration.

          10.         DEFERRAL AND LOCK-UP.  Notwithstanding anything in this Agreement to the contrary, if the Company shall furnish to the
selling Holders a certificate signed by the President and Chief Executive Officer of the Company stating that the Board has made
the good faith determination (i) that continued use by the selling Holders of the Registration Statement for purposes of effecting
offers or sales of Registrable Securities pursuant thereto would require, under the Securities Act, disclosure in the Registration
Statement (or the prospectus relating thereto) of material, nonpublic information concerning the Company, its business or prospects
or any proposed transaction involving the Company, (ii) that such disclosure would be premature and would be adverse to the
Company, its business or prospects or any such proposed transaction or would make the successful consummation by the Company of any
such transaction significantly less likely and (iii) that it is therefore essential to suspend the use by the Holders of such
Registration Statement (and the prospectus relating thereto) for purposes of effecting offers or sales of Registrable Securities
pursuant thereto, then the right of the selling Holders to use the Registration Statement (and the prospectus relating thereto) for
purposes of effecting offers or sales of Registrable Securities pursuant thereto shall be suspended for a period (the
“Suspension Period”) of not more than 60 days after delivery by the Company of the certificate referred to above in
this Section 10.  During the Suspension Period, none of the Holders shall offer or sell any Registrable Securities pursuant to
or in reliance upon the Registration Statement (or the prospectus relating thereto).  The Company may not exercise this right
more than one time in any twelve month period after the Closing.

          11.          TRANSFER OF REGISTRATION RIGHTS.  None of the rights of any Holder under this Agreement shall be transferred or assigned to
any person unless (i) such person is a Qualifying Holder (as defined below), (ii) such person agrees to become a party to, and
bound by all of the terms and conditions of, this Agreement by duly executing and delivering to the Company an Instrument of
Adherence in the form attached as Exhibit A hereto, (iii) the transfer or assignment is made in accordance with the applicable
requirements of the Securities Purchase Agreement and (iv) following the transfer or assignment, the further disposition of the
Registrable Securities by such person is restricted under the Securities Act and applicable state securities laws.  For
purposes of this Section 11, the term “Qualifying Holder” shall mean, with respect to any Holder, (a) any corporation,
partnership or other affiliated entity controlling, controlled by, or under common control with, such Holder, or any partner or
former partner, if such Holder is a partnership, or (b) any other direct transferee from such Holder of at least 50% of those
Registrable Securities held or that may be acquired by such Holder.  None of the rights of any Holder under this Agreement
shall be transferred or assigned to any person (including, without limitation, a Qualifying Holder) that acquires Registrable
Securities in the event that and to the extent that such Person is eligible to resell such Registrable Securities pursuant to Rule
144(k) of the Securities Act.

          12.          ENTIRE AGREEMENT.  This Agreement constitutes and contains the entire agreement and understanding of the parties with
respect to the subject matter hereof, and it also supersedes any and all prior negotiations, correspondence, agreements or
understandings with respect to the subject matter hereof.

          13.          MISCELLANEOUS.

                        (a)          This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Texas, and shall be
binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors or
assigns, provided that the terms and conditions of Section 11 hereof are satisfied.  This Agreement shall also be binding upon
and inure to the benefit of any transferee of any of the Registrable Securities provided that the terms and conditions of Section
11 hereof are satisfied.  Notwithstanding anything in this Agreement to the contrary, if at any time any Holder shall cease to
own all of its Registrable Securities, all of such Holder’s rights under this Agreement shall immediately terminate.

                        (b)     (i)     Any notices, reports or other correspondence (hereinafter collectively referred
to as “correspondence”) required or permitted to be given hereunder shall be sent by postage prepaid first class mail,
courier (overnight or same day) or telecopy or delivered by hand to the party to whom such correspondence is required or permitted
to be given hereunder.  The date of giving any notice shall be (i) if delivered by first-class mail, three business days after
so mailed, (ii) if delivered by overnight carrier, one business day after so mailed, (iii) if delivered by hand, on the date of
delivery, or (iv) if delivered by facsimile, upon electronic confirmation of receipt.

                        (ii)        All correspondence to the Company shall be addressed as follows:

                                   
Nano-Proprietary, Inc.

                                   
3006 Longhorn Boulevard, Suite 107

                                   
Austin, Texas  78758

                                   
Attention:  Marc Eller - Chief Executive Officer

                                   
Telephone:  (512) 339-5020

                                                                      
with a copy to:

                                   
Donald T. Locke

                                   
Attorney-at-Law

                                   
434 Fayetteville Street, Suite 600

                                    Raleigh, North Carolina 27601

                        (iii)          All correspondence to any Holder shall be sent to the address set forth on such Holder’s signature page hereto (or, in the
case of a Permitted Transferee, such Permitted Transferee’s Instrument of Adherence hereto).

                        (iv)          Any party may change the address to which correspondence to it is to be addressed by notification as provided for herein.

                        (c)          The parties acknowledge and agree that in the event of any breach of this Agreement, remedies at law may be inadequate, and each
of the parties hereto shall be entitled to seek specific performance of the obligations of the other parties hereto and such
appropriate injunctive relief as may be granted by a court of competent jurisdiction.

                        (d)          This Agreement may be executed in a number of counterparts, each of which together shall for all purposes constitute one
Agreement, binding on all the parties hereto notwithstanding that all such parties have not signed the same counterpart.

  

 

 

            IN WITNESS WHEREOF, the
parties hereto have executed this Registration Rights Agreement as of the date and year first above written.

NANO-PROPRIETARY, INC.

 

By:
                                                                 

Name:  Douglas P. Baker

Title:     Chief Financial Officer

INVESTOR:

Print Name of Investor:

                                                                       

 

By: 
                                                                

Name:

Title:

Investor’s Address and Fax Number for Notice:

                                                                       

                                                                       

                                                                       

  

EXHIBIT A

INSTRUMENT OF ADHERENCE

Reference is hereby made to that certain Registration Rights Agreement, dated as of
October __, 2003, among Nano-Proprietary, Inc., a Texas corporation (the “Company”) and the Investors and the Permitted
Transferees, as amended and in effect from time to time (the “Registration Rights Agreement’).  Capitalized terms
used herein without definition shall have the respective meanings ascribed thereto in the Registration Rights Agreement.

The undersigned, in order to become the owner or holder of, or have the right to acquire,
_______ shares of Registrable Securities, hereby agrees that, from and after the date hereof, the undersigned has become a party to
the Registration Rights Agreement in the capacity of a Permitted Transferee, and is entitled to all of the benefits under, and is
subject to all of the obligations, restrictions and limitations set forth in, the Registration Rights Agreement that are applicable
to Permitted Transferees.  This Instrument of Adherence shall take effect and shall become a part of the Registration Rights
Agreement immediately upon execution.

Print Name of Permitted Transferee:

                                                                       

By: 
                                                                

Name:

Title:

Permitted Transferee’s Address and Fax Number for
Notice:

                                                                       

                                                                       

                                                                       

Accepted:

Nano-Proprietary, Inc.

 

By:
                                                                 

Name:

Title:

Date:
                                                              

 

EXHIBIT B

PLAN OF DISTRIBUTION

We are registering the shares of common stock on behalf of the selling security holders.
Sales of shares may be made by selling security holders, including their respective donees, transferees, pledgees or other
successors-in-interest directly to purchasers or to or through underwriters, broker-dealers or through agents. Sales may be made
from time to time on the NASDAQ OTC BB, any other exchange upon which our shares may trade in the future,
in the over-the-counter market or otherwise, at market prices prevailing at the time of sale, at prices related to market prices,
or at negotiated or fixed prices.  The shares may be sold by one or more of, or a combination of, the following:

  	

a block trade in which the broker-dealer so engaged will attempt to sell the shares as agent but may position and
resell a portion of the block as principal to facilitate the transaction;

    
	

purchases by a broker-dealer as principal and resale by such broker-dealer, including resales for its account,
pursuant to this prospectus;

    
	

ordinary brokerage transactions and transactions in which the broker solicits purchases;

    
	

through options, swaps or derivatives;

    
	

in privately negotiated transactions;

    
	

in making short sales or in transactions to cover short sales; and

    
	

put or call option transactions relating to the shares.

    

The selling security holders may effect these transactions by selling shares directly to
purchasers or to or through broker-dealers, which may act as agents or principals.  These broker-dealers may receive
compensation in the form of discounts, concessions or commissions from the selling security holders and/or the purchasers of shares
for whom such broker-dealers may act as agents or to whom they sell as principals, or both (which compensation as to a particular
broker-dealer might be in excess of customary commissions). The selling security holders may also sell shares of common stock short
and deliver shares covered by this prospectus to close out short positions, provided that the short sale is made after the
registration statement is declared effective and a copy of this prospectus is delivered in connection with the short sale. 
The selling security holders have advised us that they have not entered into any agreements, understandings or arrangements with
any underwriters or broker-dealers regarding the sale of their securities.

The selling security holders may enter into hedging transactions with broker-dealers or
other financial institutions.  In connection with those transactions, the broker-dealers or other financial institutions may
engage in short sales of the shares or of securities convertible into or exchangeable for the shares in the course of hedging
positions they assume with the selling security holders.  The selling security holders may also enter into options or other
transactions with broker-dealers or other financial institutions which require the delivery of shares offered by this prospectus to
those broker-dealers or other financial institutions.  The broker-dealer or other financial institution may then resell the
shares pursuant to this prospectus (as amended or supplemented, if required by applicable law, to reflect those
transactions).

The selling security holders and any broker-dealers that act in connection with the sale
of shares may be deemed to be “underwriters” within the meaning of Section 2(11) of the Securities Act of 1933, and any
commissions received by broker-dealers or any profit on the resale of the shares sold by them while acting as principals may be
deemed to be underwriting discounts or commissions under the Securities Act.  The selling security holders may agree to
indemnify any agent, dealer or broker-dealer that participates in transactions involving sales of the shares against liabilities,
including liabilities arising under the Securities Act.  The Company has agreed to indemnify each of the selling security
holders and each selling security holder has agreed, severally and not jointly, to indemnify the Company against some liabilities
in connection with the offering of the shares, including liabilities arising under the Securities Act.

The selling security holders will be subject to the prospectus delivery requirements of
the Securities Act.  We have informed the selling security holders that the anti-manipulative provisions of Regulation M
promulgated under the Securities Exchange Act of 1934 may apply to their sales in the market.

Selling security holders also may resell all or a portion of the shares in open market
transactions in reliance upon Rule 144 under the Securities Act, provided they meet the criteria and conform to the requirements of
Rule 144.

Upon being notified by a selling security holder that a material arrangement has been
entered into with a broker-dealer for the sale of shares through a block trade, special offering, exchange distribution or
secondary distribution or a purchase by a broker or dealer, we will file a supplement to this prospectus, if required pursuant to
Rule 424(b) under the Securities Act, disclosing:

  	

the name of each such selling security holder and of the participating broker-dealer(s);

    
	

the number of shares involved;

    
	

the initial price at which the shares were sold;

    
	

the commissions paid or discounts or concessions allowed to the broker-dealer(s), where applicable;

    
	

that such broker-dealer(s) did not conduct any investigation to verify the information set out or incorporated by reference in
this prospectus; and

    
	

other facts material to the transactions.

    

In addition, we will file a supplement to this prospectus when a selling security holder
notifies us that a donee or pledgee intends to sell more than 500 shares of common stock.

Expenses Associated with Registration. 

We are paying all expenses and fees in connection with the registration of the shares. The
selling security holders will bear all brokerage or underwriting discounts or commissions paid to broker-dealers in connection with
the sale of the shares.Indenture dated October 10, 2003

 EXHIBIT 4.1 
  
 Execution Version 
  

  

  
 LBI MEDIA HOLDINGS, INC. 
  

  
 INDENTURE 
  
 Dated as of October 10, 2003 
  

  
 U.S. Bank National Association 
  
 Trustee 
  

  

 CROSS-REFERENCE TABLE* 
  

	 Trust Indenture
 Act
Section

	  	Indenture Section

	 310(a)(1)
	  	7.10
	       (a)(2)
	  	7.10
	       (a)(3)
	  	N.A.
	       (a)(4)
	  	N.A.
	       (a)(5)
	  	7.10
	       (b)
	  	7.10
	       (c)
	  	N.A.
	 311(a)
	  	7.11
	       (b)
	  	7.11
	       (c)
	  	N.A.
	 312(a)
	  	2.05
	       (b)
	  	11.03
	       (c)
	  	11.03
	 313(a)
	  	7.06
	       (b)(1)
	  	N.A.
	       (b)(2)
	  	7.06; 7.07
	       (c)
	  	7.06;11.02
	       (d)
	  	7.06
	 314(a)
	  	4.03; 11.02
	       (b)
	  	N.A.
	       (c)(1)
	  	N.A.
	       (c)(2)
	  	N.A.
	       (c)(3)
	  	N.A.
	       (e)
	  	11.05
	       (f)
	  	N.A.
	 315(a)
	  	N.A.
	       (b)
	  	N.A.
	       (c)
	  	N.A.
	       (d)
	  	N.A.
	       (e)
	  	N.A.
	 316(a) (last sentence)
	  	N.A.
	       (a)(1)(A)
	  	N.A.
	       (a)(1)(B)
	  	N.A.
	       (a)(2)
	  	N.A.
	       (b)
	  	N.A.
	       (c)
	  	N.A.
	 317(a)(1)
	  	N.A.
	       (a)(2)
	  	N.A.
	       (b)
	  	N.A.
	 318(a)
	  	N.A.
	       (b)
	  	N.A.
	      (c)	  	11.01

  
 N.A. means not applicable.

	*	This Cross Reference Table is not part of the Indenture. 

 TABLE OF CONTENTS 
  

	 	  	 	  	Page

	ARTICLE 1.
	 DEFINITIONS AND INCORPORATION
 BY REFERENCE

			
	 Section 1.01.
	  	Definitions.	  	1
	 Section 1.02.
	  	Other Definitions.	  	24
	 Section 1.03.
	  	Incorporation by Reference of Trust Indenture Act.	  	24
	 Section 1.04.
	  	Rules of Construction.	  	25
	
	ARTICLE 2.
	THE NOTES
			
	 Section 2.01.
	  	Form and Dating.	  	25
	 Section 2.02.
	  	Execution and Authentication.	  	26
	 Section 2.03.
	  	Registrar and Paying Agent.	  	27
	 Section 2.04.
	  	Paying Agent to Hold Money in Trust.	  	27
	 Section 2.05.
	  	Holder Lists.	  	27
	 Section 2.06.
	  	Transfer and Exchange.	  	28
	 Section 2.07.
	  	Replacement Notes.	  	39
	 Section 2.08.
	  	Outstanding Notes.	  	39
	 Section 2.09.
	  	Treasury Notes.	  	40
	 Section 2.10.
	  	Temporary Notes.	  	40
	 Section 2.11.
	  	Cancellation.	  	40
	 Section 2.12.
	  	Defaulted Interest.	  	40
	
	ARTICLE 3.
	REDEMPTION AND PREPAYMENT
			
	 Section 3.01.
	  	Notices to Trustee.	  	40
	 Section 3.02.
	  	Selection of Notes to Be Redeemed or Purchased.	  	41
	 Section 3.03.
	  	Notice of Redemption.	  	41
	 Section 3.04.
	  	Effect of Notice of Redemption.	  	42
	 Section 3.05.
	  	Deposit of Redemption or Purchase Price.	  	42
	 Section 3.06.
	  	Notes Redeemed or Purchased in Part.	  	42
	 Section 3.07.
	  	Optional Redemption.	  	42
	 Section 3.08.
	  	Mandatory Redemption.	  	43
	 Section 3.09.
	  	Offer to Purchase by Application of Excess Proceeds.	  	43
	
	ARTICLE 4.
	COVENANTS
			
	 Section 4.01.
	  	Payment of Notes.	  	45
	 Section 4.02.
	  	Maintenance of Office or Agency.	  	45
	 Section 4.03.
	  	Reports	  	46
	 Section 4.04.
	  	Compliance Certificate.	  	46
	 Section 4.05.
	  	Taxes.	  	47
	 Section 4.06.
	  	Stay, Extension and Usury Laws.	  	47
	 Section 4.07.
	  	Restricted Payments.	  	47
	 Section 4.08.
	  	Dividend and Other Payment Restrictions Affecting Subsidiaries.	  	51
	 Section 4.09.
	  	Incurrence of Indebtedness and Issuance of Preferred Stock.	  	53
	 Section 4.10.
	  	Asset Sales	  	56

  

 i 

	 Section 4.11.
	  	Transactions with Affiliates.	  	58
	 Section 4.12.
	  	Liens.	  	59
	 Section 4.13.
	  	Corporate Existence.	  	59
	 Section 4.14.
	  	Business Activities	  	60
	 Section 4.15.
	  	Offer to Repurchase Upon Change of Control.	  	60
	 Section 4.16.
	  	 Limitation on Issuances of Equity Interests in Wholly Owned Restricted
 Subsidiaries.
	  	61
	 Section 4.17.
	  	Payments for Consent.	  	62
	 Section 4.18.
	  	Designation of Restricted and Unrestricted Subsidiaries	  	62
	
	ARTICLE 5.
	SUCCESSORS
			
	 Section 5.01.
	  	Merger, Consolidation, or Sale of Assets.	  	62
	 Section 5.02.
	  	Successor Corporation Substituted.	  	63
	
	ARTICLE 6.
	DEFAULTS AND REMEDIES
			
	 Section 6.01.
	  	Events of Default.	  	63
	 Section 6.02.
	  	Acceleration.	  	65
	 Section 6.03.
	  	Other Remedies.	  	66
	 Section 6.04.
	  	Waiver of Past Defaults.	  	66
	 Section 6.05.
	  	Control by Majority.	  	66
	 Section 6.06.
	  	Limitation on Suits.	  	66
	 Section 6.07.
	  	Rights of Holders of Notes to Receive Payment.	  	67
	 Section 6.08.
	  	Collection Suit by Trustee.	  	67
	 Section 6.09.
	  	Trustee May File Proofs of Claim.	  	67
	 Section 6.10.
	  	Priorities.	  	68
	 Section 6.11.
	  	Undertaking for Costs.	  	68
	
	ARTICLE 7.
	TRUSTEE
			
	 Section 7.01.
	  	Duties of Trustee.	  	68
	 Section 7.02.
	  	Rights of Trustee.	  	69
	 Section 7.03.
	  	Individual Rights of Trustee.	  	70
	 Section 7.04.
	  	Trustee’s Disclaimer.	  	70
	 Section 7.05.
	  	Notice of Defaults.	  	70
	 Section 7.06.
	  	Reports by Trustee to Holders of the Notes.	  	70
	 Section 7.07.
	  	Compensation and Indemnity.	  	71
	 Section 7.08.
	  	Replacement of Trustee.	  	72
	 Section 7.09.
	  	Successor Trustee by Merger, etc.	  	72
	 Section 7.10.
	  	Eligibility; Disqualification.	  	73
	 Section 7.11.
	  	Preferential Collection of Claims Against Company.	  	73
	
	ARTICLE 8.
	LEGAL DEFEASANCE AND COVENANT DEFEASANCE
			
	 Section 8.01.
	  	Option to Effect Legal Defeasance or Covenant Defeasance.	  	73
	 Section 8.02.
	  	Legal Defeasance and Discharge.	  	73
	 Section 8.03.
	  	Covenant Defeasance.	  	74
	 Section 8.04.
	  	Conditions to Legal or Covenant Defeasance.	  	74
	 Section 8.05.
	  	 Deposited Money and Government Securities to be Held in Trust; Other
 Miscellaneous Provisions.
	  	75

  

 ii 

	 Section 8.06.
	  	Repayment to Company.	  	75
	 Section 8.07.
	  	Reinstatement.	  	76
	
	ARTICLE 9.
	AMENDMENT, SUPPLEMENT AND WAIVER
			
	 Section 9.01.
	  	Without Consent of Holders of Notes.	  	76
	 Section 9.02.
	  	With Consent of Holders of Notes.	  	77
	 Section 9.03.
	  	Compliance with Trust Indenture Act.	  	78
	 Section 9.04.
	  	Revocation and Effect of Consents.	  	78
	 Section 9.05.
	  	Notation on or Exchange of Notes.	  	78
	 Section 9.06.
	  	Trustee to Sign Amendments, etc.	  	78
	
	ARTICLE 10.
	SATISFACTION AND DISCHARGE
			
	 Section 10.01.
	  	Satisfaction and Discharge.	  	79
	 Section 10.02.
	  	Application of Trust Money.	  	79
	
	ARTICLE 11.
	MISCELLANEOUS
			
	 Section 11.01.
	  	Trust Indenture Act Controls.	  	80
	 Section 11.02.
	  	Notices.	  	80
	 Section 11.03.
	  	Communication by Holders of Notes with Other Holders of Notes.	  	81
	 Section 11.04.
	  	Certificate and Opinion as to Conditions Precedent.	  	81
	 Section 11.05.
	  	Statements Required in Certificate or Opinion.	  	81
	 Section 11.06.
	  	Rules by Trustee and Agents.	  	82
	 Section 11.07.
	  	No Personal Liability of Directors, Officers, Employees and Stockholders.	  	82
	 Section 11.08.
	  	Governing Law.	  	82
	 Section 11.09.
	  	No Adverse Interpretation of Other Agreements.	  	82
	 Section 11.10.
	  	Successors.	  	82
	 Section 11.11.
	  	Severability.	  	82
	 Section 11.12.
	  	Counterpart Originals.	  	82
	 Section 11.13.
	  	Table of Contents, Headings, etc.	  	83

  
 EXHIBITS 
  

	 Exhibit A-1
	  	FORM OF NOTE
	 Exhibit A-2
	  	FORM OF REGULATION S TEMPORARY GLOBAL NOTE
	 Exhibit B
	  	FORM OF CERTIFICATE OF TRANSFER
	 Exhibit C
	  	FORM OF CERTIFICATE OF EXCHANGE
	 Exhibit D
	  	FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

  

 iii 

 INDENTURE dated as of October 10, 2003 between LBI Media Holdings, Inc., a Delaware corporation (the
“Company”) and U.S. Bank National Association, a national banking association, as trustee (the “Trustee”). 
  
 The Company and the Trustee agree as follows for the benefit of each other and for the equal and ratable benefit of the Holders (as defined below) of the
11% Senior Discount Notes due 2013 (the “Notes”): 
  
 ARTICLE 1. 
 DEFINITIONS AND INCORPORATION 
 BY REFERENCE 
  
 Section 1.01. Definitions. 
  
 “144A Global Note” means a Global Note substantially in the form of Exhibit A-1 hereto bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf of, and registered in the name of, the
Depositary or its nominee that will be issued in a denomination equal to the outstanding principal amount at maturity of the Notes sold in reliance on Rule 144A. 
  
 “Accreted Value” means, as of any date of determination prior to October 15, 2008 (or, if in the event of a
Cash Interest Election Date, on or prior to such Cash Interest Election Date), the sum of (a) the initial offering price of each Note and (b) that portion of the excess of the principal amount at maturity of each Note over such initial offering
price as shall have been accreted thereon through such date, such amount to be so accreted on a daily basis at the rate of 11% per annum of the initial offering price of the Notes, compounded semi-annually on each April 15 and October 15 from the
date of issuance of the Notes through the date of determination. 
  
 “Acquired Debt” means, with respect to any specified Person: (1) 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 (2) Indebtedness secured by a Lien encumbering any asset acquired by such
specified Person. 
  
 “Acquisition Debt” means
Indebtedness, the proceeds of which are utilized solely to acquire all or a portion of the assets or a majority of the Voting Stock of an existing radio or television broadcasting business or station or any other business engaged in a Permitted
Business. 
  
 “Additional Notes” means additional
Notes (other than the Initial Notes) issued under this Indenture in accordance with Sections 2.02 and 4.09 hereof, as part of the same series as the Initial Notes. 
  
 “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, co-registrar, Paying Agent or additional paying agent. 
  

 1 

 “Applicable Procedures” means, with respect to any transfer or exchange of or for
beneficial interests in any Global Note, the rules and procedures of the Depositary, Euroclear and Clearstream that apply to such transfer or exchange. 
  
 “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 (which term shall include Media Licenses) owned by the Company and its Subsidiaries taken as a whole will be governed by the provisions of this
Indenture described in Sections 4.15 and/or 5.01 and not by the provisions of Section 4.10; and 
  
 (2) the issuance of Equity Interests by any Restricted Subsidiary of the Company or the sale of Equity Interests in any Restricted
Subsidiary of the Company. 
  
 Notwithstanding the preceding, none
of the following items will be deemed to be an Asset Sale: 
  
 (1) any single transaction or series of related transactions that involves assets or rights having a fair market value of less than $2.0 million; 
  
 (2) a transfer of assets or rights between or among the Company and its Restricted Subsidiaries; 

 
 (3) an issuance of Equity Interests by a Subsidiary of
the Company to the Company or to another Subsidiary of the Company; 
  
 (4) the sale or lease of equipment, inventory, accounts receivable or other assets or rights in the ordinary course of business; 
  
 (5) the disposition of equipment no longer used or useful in the business of the Company or any of its
Restricted Subsidiaries; 
  
 (6) the sale and
leaseback of any assets within 90 days of the acquisition thereof; 
  
 (7) a Relocation; provided, however, that any Net Proceeds received by the Company or any of its Restricted Subsidiaries in exchange therefor will be subject to the restrictions set forth in Section 4.10;

  
 (8) the sale or other disposition of Cash
Equivalents; 
  
 (9) a Restricted Payment that is
permitted by Section 4.07, or a Permitted Investment; 
  
 (10) foreclosures on assets; 
  
 (11)
Permitted Liens; 
  
 (12) the grant of any
license of patents, trademarks, registrations therefor and other similar intellectual property in the ordinary course of business; and 
  

 2 

 (13) the cancellation or forgiveness of any loan made by the Company or any of its
Restricted Subsidiaries (i) permitted by clause (10) of Section 4.07(b) or (ii) permitted by clauses (8), (9), (10) or (14) of the definition of “Permitted Investments.” 
  
 “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state 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, except that in calculating the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person” will
be deemed to have beneficial ownership of all securities that such “person” has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only upon the occurrence of a
subsequent condition. The terms “Beneficially Owns” and “Beneficially Owned” have a corresponding meaning. 
  
 “Board of Directors” means: 
  
 (1) with respect to a corporation, the board of directors of the corporation; 
  
 (2) with respect to a partnership, the general partner of
which is a corporation, the board of directors of the general partner of the partnership; and 
  
 (3) with respect to any other Person, the board or committee of such Person serving a similar function. 
  
 “Broker-Dealer” has the meaning set forth in the
Registration Rights Agreement. 
  
 “Business Day”
means any day other than a Legal Holiday. 
  
 “California
Taxable Income” means the taxable income of Parent for any taxable year computed pursuant to Section 23802 (or any successor provision) of the California Revenue and Tax Code but calculated as if the taxable year of Parent ended on the date
with respect to which such taxable income calculation is made, reduced, but not below zero, by the amount of any Suspended Losses which are treated as incurred by Parent in, and allowed as deductions on the tax returns of Parent’s stockholders
for, such taxable year. 
  
 “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

  

 3 

 (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 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 any lender party to the Credit
Facility or with 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. 
  
 “Cash Interest Election”
means the election of the Company on any Interest Payment Date prior to October 15, 2008 to commence the accrual of cash interest from and after the Cash Interest Election Date. 
  
 “Cash Interest Election Date” means the Interest Payment Date (if such Interest Payment Date is prior to
October 15, 2008) as of which the Company makes a Cash Interest Election. 
  
 “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 (which term shall include Media Licenses) of the Company and its 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 Company; or 
  
 (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 the Company, measured by voting power rather than number of shares. 
  

 4 

 “Clearstream” means Clearstream Banking, S.A. 
  
 “Code” means the Internal Revenue Code of 1986, as amended.

  
 “Company” means LBI Media Holdings, Inc., a
Delaware corporation, and any and all successors 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 (together with any related provision for
taxes) realized by such Person or any of its Restricted Subsidiaries in connection with (a) an Asset Sale (including any sale and leaseback transaction), or (b) the disposition of any securities by such Person or any of its Restricted Subsidiaries
or the extinguishment of any Indebtedness of such Person or any of its 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 its Restricted Subsidiaries for such period (and to the extent not included in the foregoing, Permitted Shareholder Tax Distributions and Permitted Holdings Tax Distributions), to the extent that such provision for taxes, Permitted
Shareholder Tax Distributions or Permitted Holdings Tax Distributions were deducted in computing such Consolidated Net Income; plus 
  
 (3) consolidated interest expense of such Person and its 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, 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 obligations with respect to any sale and leaseback transaction, fees, including but not limited to agency fees, letter of credit fees, commitment fees, commissions,
discounts and other fees and charges incurred in respect of Indebtedness 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 non-cash employee and officer equity compensation expenses, amortization of goodwill and other intangibles, amortization of programming costs (net of program payments made or to be made), barter expenses and impairment
charges under SFAS 142 for broadcast licenses, goodwill or other indefinite lived intangible assets, but excluding amortization of prepaid cash expenses that were paid in a prior period) and other non-cash expenses (excluding any such non-cash
expense to the extent that it represents amortization of a prepaid cash expense that was paid in a prior period) of such Person and its Restricted Subsidiaries for such period, to the extent that such depreciation, amortization, impairment charges
and other non-cash expenses were deducted in computing such Consolidated Net Income; plus 
  
 (5) any extraordinary or non-recurring expenses and charges of such Person and its Restricted Subsidiaries for such period, including,
without limitation, transaction costs in respect of acquisitions, to the extent that such expenses and charges were deducted in computing such Consolidated Net Income; minus 
  

 5 

 (6) non-cash items increasing such Consolidated Net Income for such period, other than
the accrual of revenue in the ordinary course of business; minus 
  
 (7) cash payments related to non-cash charges that increased Consolidated Cash Flow in any prior period; minus 
  
 (8) barter revenues, 
  
 in each case, on a consolidated basis and determined in accordance with GAAP. 
  
 Notwithstanding the foregoing, the provision for taxes based on the income or profits of, and the depreciation and amortization and other non-cash
expenses of, a Subsidiary of the Company will be added to Consolidated Net Income to compute Consolidated Cash Flow of the Company only to the extent that a corresponding amount would be permitted at the date of determination to be dividended,
distributed or loaned to the Company by such Subsidiary without prior governmental approval (that has not been obtained), and without direct or indirect restriction pursuant to the terms of its charter and all agreements, instruments, judgments,
decrees, orders, statutes, rules and governmental regulations applicable to that Subsidiary or its stockholders. 
  
 “Consolidated Net Income” means, with respect to any specified Person for any period, the aggregate of the Net Income of such Person and
its Subsidiaries for such period, on a consolidated basis, determined in accordance with GAAP; provided that: 
  
 (1) the Net Income (but not loss) of any Unrestricted Subsidiary of such Person will be excluded, whether or not distributed to the
specified Person or a Restricted Subsidiary of the Person; 
  
 (2) the Net Income of any Restricted Subsidiary of such Person will be excluded to the extent that the declaration or payment of dividends or similar distributions or loans by that 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 in a pooling of interests transaction 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. 
  
 “Corporate Trust Office of the Trustee” will be at the address of the Trustee specified in Section 11.02 hereof or such other address as to which the Trustee may give notice to the Company. 
  
 “Credit Agreement” means that certain Amended and Restated
Credit Agreement, dated as of July 9, 2002, by and among LBI Media, the guarantors party thereto, Fleet National Bank, as administrative agent, and the lenders party thereto, including any related notes, guarantees, collateral documents, instruments
and agreements executed in connection therewith, and in each case as amended (including any amendment and restatement thereof), modified, renewed, refunded, replaced or refinanced from time to time, including any agreement extending the maturity of,
consolidating or otherwise restructuring (including adding subsidiaries of LBI Media as additional guarantors thereunder) all or any portion of the Indebtedness under such agreement or any successor or replacement agreement and whether by the same
or any other agent, lender or group and whether or not increasing the amount of Indebtedness that may be incurred thereunder. 
  

 6 

 “Credit Facility” or “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, including any agreement extending the maturity of, consolidating or otherwise restructuring (including adding subsidiaries of the Company as additional guarantors thereunder) all or any portion of the Indebtedness under
such agreement or any successor or replacement agreement and whether by the same or any other agent, lender or group and whether or not increasing the amount of Indebtedness that may be incurred thereunder. 
  
 “Custodian” means the Trustee, as custodian with respect to
the Notes in global form, or any successor entity thereto. 
  
 “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. 
  
 “Definitive Note” means a certificated Note registered in the name of the Holder thereof and issued in accordance with Section 2.06
hereof, substantially in the form of Exhibit A-1 hereto except that such Note shall not bear the Global Note Legend and shall not have the “Schedule of Exchanges of Interests in the Global Note” attached thereto. 
  
 “Depositary” means, with respect to the Notes issuable or
issued in whole or in part in global form, the Person specified in Section 2.03 hereof as the Depositary with respect to the Notes, and any and all successors thereto appointed as depositary hereunder and having become such pursuant to the
applicable provision of this Indenture. 
  
 “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 that is 91 days after 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 Company to repurchase such Capital Stock upon the
occurrence of a Change of Control or an Asset Sale shall not constitute Disqualified Stock if the terms of such Capital Stock provide that the Company may not repurchase or redeem any such Capital Stock pursuant to such provisions unless such
repurchase or redemption complies with the provisions of Section 4.07. 
  
 “Dividend Limitation” means, with respect to Parent, the sum of (1) the product of the Maximum Effective California Rate times California Taxable Income except that the product of this clause (1) shall be zero in the
event Parent does not qualify (or subsequently elects not) to be treated as an S Corporation for California income tax purposes, or the Company does not qualify (or subsequently elects not) to be treated as a qualified subchapter S subsidiary; plus
(2) the product of the Maximum Federal Rate and Federal Taxable Income. 
  
 “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). 
  

 7 

 “Equity Offering” means an offering of Capital Stock (other than Disqualified Capital
Stock) of Parent, the Company or any other parent corporation of the Company; provided, however, that in the event of an Equity Offering by Parent or any other parent corporation of the Company, all or a portion of the net proceeds
therefrom are contributed to the Company. 
  
 “Euroclear” means Morgan Guaranty Trust Company of New York, Brussels office, as operator of the Euroclear system. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Exchange Notes” means the Notes issued in the Exchange Offer pursuant to Section 2.06(f) hereof.

  
 “Exchange Offer” has the meaning set forth in
the Registration Rights Agreement. 
  
 “Exchange Offer
Registration Statement” has the meaning set forth in the Registration Rights Agreement. 
  
 “Existing Indebtedness” means Indebtedness of the Company and its Restricted Subsidiaries (other than Indebtedness under the Credit
Agreement) in existence on the date of this Indenture. 
  
 “Existing Parent Notes” means the $30.0 million original aggregate principal amount of Junior Subordinated Notes of Parent, as amended on July 9, 2002 and on October 10, 2003 plus accrued and unpaid interest thereon, issued
and outstanding under the Parent Securities Purchase Documents and any other notes issued thereunder in accordance with the terms thereof as such terms exist on the date of this Indenture, as any of the foregoing may be amended or modified from time
to time after the date of this Indenture in a manner that is not materially adverse to the Holders. 
  
 “Existing Parent Warrants” means the warrants for the purchase of shares of common stock of Parent issued on March 20, 2001, as amended
on July 9, 2002 and on October 10, 2003 pursuant to the Parent Securities Purchase Documents and any other warrants issued thereunder in accordance with the terms thereof as such terms exist on the date of this Indenture, as any of the foregoing may
be amended or modified from time to time after the date of this Indenture in a manner that is not materially adverse to the Holders. 
  
 “FCC” means the Federal Communications Commission or any successor thereto. 
  
 “Federal Taxable Income” means the taxable income of Parent for any taxable year computed pursuant to
Section 1363(b) (or any successor provision) of the Code but calculated as if the taxable year of Parent ended on the date with respect to which such taxable income calculation is made, reduced, but not below zero, by the amount of any Suspended
Losses which are treated as incurred by Parent in, and allowed as deductions on the tax returns of Parent’s stockholders for, such taxable year. 
  
 “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. 
  

 8 

 “Global Notes” means, individually and collectively, each of the Restricted Global Notes
and the Unrestricted Global Notes, substantially in the form of Exhibit A hereto issued in accordance with Section 2.01, 2.06(b)(iii), 2.06(b)(iv), 2.06(d)(ii) or 2.06(f) hereof. 
  
 “Global Note Legend” means the legend set forth in Section 2.06(g)(ii), which is required to be placed on
all Global Notes issued under this Indenture. 
  
 “Governmental Authority” means any nation or government, any federal, state or other political subdivision thereof and any federal, state or local entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government. 
  
 “Government Securities” means direct obligations of, or obligations guaranteed by, the United States of America, and the payment for which the United States pledges its full faith and credit. 
  
 “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. 
  
 “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 currency exchange rates or interest rates. 
  
 “Holder” means a Person in whose name a Note is registered. 
  
 “IAI Global Note” means a Global Note substantially in the form of Exhibit A-1 hereto bearing the Global Note Legend and the Private
Placement Legend and deposited with or on behalf of and registered in the name of the Depositary or its nominee that will be issued in a denomination equal to the outstanding principal amount at maturity of the Notes sold to Institutional Accredited
Investors. 
  
 “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 
  

 9 

 (6) representing any Hedging Obligations (the amount of any such obligations to be equal
at any time to the termination value of such agreement or arrangement giving rise to such obligation that would be payable by such Person at such time), 
  
 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 include the pledge of the Capital Stock of an Unrestricted Subsidiary of such
Person securing Non-Recourse Debt of that Unrestricted Subsidiary. Notwithstanding anything in this definition to the contrary, any obligations of the Company or any of its Restricted Subsidiaries to pay Shop At Home Relocation Profits (including
any Relocation Tax Benefits (as defined in the Shop At Home Acquisition Documents)) to the Shop At Home Sellers under the Shop At Home Acquisition Documents shall not be Indebtedness until such time as such obligations are (i) due and payable
(unless being contested in good faith) or (ii) represented by a separate instrument. 
  
 The amount of any Indebtedness outstanding as of any date will be: 
  
 (1) the then current 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. 
  
 “Indirect Participant” means a Person who holds a beneficial
interest in a Global Note through a Participant. 
  
 “Initial Notes” means the first $68,428,000 aggregate principal amount at maturity of Notes issued under this Indenture on the date hereof. 
  
 “Institutional Accredited Investor” means an institution that is an “accredited investor” as
defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act, who are not also QIBs. 
  
 “Interest Payment Date” means April 15 and October 15 of each year, provided that no cash interest shall be paid on any Interest Payment Date, except as provided in this Indenture and the
Notes. 
  
 “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 employees (including, without limitation, officers) 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 Company or any Subsidiary of the Company sells or otherwise disposes of any Equity Interests of any direct or indirect Subsidiary of the Company such
that, after giving effect to any such sale or disposition, such Person is no longer a Subsidiary of the Company, the Company 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
Company’s Investments in such Subsidiary that were not sold or disposed of in an amount determined as provided in the final paragraph of Section 4.07. The acquisition by the Company or any Subsidiary of the Company 

  

 10 

 
of a Person that holds an Investment in a third Person will be deemed to be an Investment by the Company or such Subsidiary in such third Person in an amount
equal to the fair market value of the Investments held by the acquired Person in such third Person in an amount determined as provided in the final paragraph of Section 4.07. 
  
 “LBI Media” means LBI Media, Inc., a California corporation. 
  
 “Legal Holiday” means a Saturday, a Sunday or a day on which
banking institutions in the City of New York 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 at a place of payment, payment may be made at that place on the next
succeeding day that is not a Legal Holiday, and no interest shall accrue on such payment for the intervening period. 
  
 “Letter of Transmittal” means the letter of transmittal to be prepared by the Company and sent to all Holders of the Notes for use by
such Holders in connection with the Exchange Offer. 
  
 “Leverage Ratio” means, with respect to any specified Person, the ratio of (i) the sum of (A) the aggregate outstanding amount of Indebtedness of each of such Person and its 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, plus (B) the aggregate liquidation preference of all outstanding
Disqualified Stock of such Person and preferred stock of its Restricted Subsidiaries (except preferred stock issued to such Person or a Restricted Subsidiary of such Person) as of the last day of such fiscal quarter (in each case, subject to the
terms described in the next paragraph) to (ii) the aggregate Consolidated Cash Flow of such Person 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, the aggregate outstanding principal amount of Indebtedness of such Person and its Restricted Subsidiaries and the aggregate liquidation preference of all outstanding preferred stock of such Person’s Restricted Subsidiaries for which
such calculation is made shall be determined on a pro forma basis as if the Indebtedness and preferred stock 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 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 such Person and its Restricted Subsidiaries and the issuance of the preferred stock of such Subsidiaries (and the application of the proceeds
therefrom) giving rise to the need to make such calculation and any incurrence (and the application of the proceeds therefrom) or repayment of other Indebtedness or preferred stock, at any time subsequent to the beginning of the Reference Period and
on or prior to the date of determination (including any such incurrence or issuance which is the subject of an Incurrence Notice delivered to the Trustee during such period pursuant to clause (xi) of the definition of Permitted Debt; provided,
however, that Indebtedness shall not include any Acquisition Debt that has been the subject of an Incurrence Notice under clause (xi) of the definition of Permitted Debt at any time after such Incurrence Notice has been withdrawn or after the
passage of 365 days following the giving of such Incurrence Notice if and to the extent such Acquisition Debt has not then been incurred), as if such incurrence or issuance (and the application of the proceeds thereof), or the repayment, 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 (including any such incurrence or issuance which is the subject of an
Incurrence Notice delivered to the 

  

 11 

 
Trustee during such period pursuant to clause (xi) of the definition of Permitted Debt subject to the proviso in clause (i) above), as if such acquisition
(including the incurrence, assumption or liability for any such Indebtedness and the issuance of such 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 cost reductions within the first year after such acquisition the Company reasonably anticipates in good faith if the Company delivers to the Trustee an officer’s
certificate executed by an executive officer of the Company certifying to and describing and quantifying with reasonable specificity such non-recurring expenses. non-recurring costs and cost reductions. Furthermore, in calculating consolidated
interest expense for purposes of the calculation of Consolidated Cash 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 agreements. 
  
 “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. 
  
 “Liquidated
Damages” means the liquidated damages to be paid by the Company in the event of a Registration Default (as defined in the Registration Rights Agreement). 
  
 “LMA” means a local marketing arrangement, joint sales agreement, time brokerage agreement, shared service
agreement, management agreement or similar arrangement pursuant to which a Person, subject to customary preemption rights and other limitations, (i) obtains the right to sell a portion of the advertising inventory of a radio or television station of
which a third party is the licensee, (ii) obtains the right to exhibit programming and sell advertising time during a portion of the air time of a radio or television station or (iii) manages a portion of the operations of a radio or television
station. 
  
 “Management Incentive Contracts”
means employment agreements between Parent and employees providing for payments in the event that the net value of Parent exceeds certain thresholds. 
  
 “Maximum Effective California Rate” means the product of: (1) the maximum California personal income tax rate imposed on individuals
pursuant to Section 17041(a) and (c) (or any successor provisions) of the California Revenue and Tax Code times (2) the difference between one and the Maximum Federal Rate expressed as a decimal. 
  
 “Maximum Federal Rate” means the maximum Federal income tax
rate imposed on individuals pursuant to Section 1(a)-(d) (or any successor provisions) of the Code, as adjusted pursuant to Section 15 (or any successor provision) of the Code, if applicable. 
  
 “Media Licenses” means any license, permit, certificate,
ordinance, approval or other authorization, or any renewal or extension thereof, from the FCC that is necessary for the broadcast or other operations of the Company and its Subsidiaries. 
  

 12 

 “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 its Restricted Subsidiaries or the extinguishment of any Indebtedness of such Person or any of its 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 Company or any of its Restricted Subsidiaries in respect of any Asset
Sale or a Relocation (including, without limitation, any cash received upon the sale or other disposition of any non-cash consideration received in any Asset Sale), net of (i) the costs directly related 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, (ii) taxes paid or estimated to be payable as a result of the Asset Sale (and to the extent not
included in the foregoing, that portion of any Permitted Holdings Tax Distributions and Permitted Shareholder Tax Distributions attributable thereto), in each case, after taking into account any available tax credits or deductions and any tax
sharing arrangements, (iii) amounts required to be applied to the repayment of Indebtedness, (iv) any reserve for adjustment in respect of the sale price of such asset or assets established in accordance with GAAP, and (v) in addition to but without
duplicating any amounts required to be deducted from Net Proceeds under clauses (i) through (iv) above, Net Proceeds in connection with any Relocation shall be net of (a) all reasonable costs (as determined by the Company in its reasonable
discretion) directly related to such Relocation including, without limitation, (1) transaction expenses (including professional advisor’s or broker’s fees and costs and financing and related fees, commissions and expenses, including lender
waiver fees), (2) engineering, construction, equipment and moving costs, (3) marketing costs, (4) the estimated aggregate amount of all obligations of the Company or any of its Restricted Subsidiaries after such Relocation under leases with respect
to which it is the lessee immediately prior to such Relocation, (5) any penalties or liabilities incurred (or estimated to be incurred) by the Company or any of its Restricted Subsidiaries under contracts which cannot be terminated by the Company or
any of its Restricted Subsidiaries prior to such Relocation but which cannot be performed or are no longer necessary (in the sole but reasonable discretion of the Company) by the Company or any of its Restricted Subsidiaries following such
Relocation, (6) costs incurred in seeking governmental consents and permits required as part of such Relocation and (7) costs incurred in seeking FCC consent to move such replaced station’s digital operations to the site of such replacement
station’s analog operations (including all expenses of a type set forth in other clauses of this definition) and (b) Shop At Home Relocation Profits, including any Relocation Tax Benefits (as defined in the Shop At Home Acquisition Documents),
that are paid or payable to the Shop At Home Sellers pursuant to the terms of the Shop At Home Acquisition Documents (it being understood that any estimated amounts under this clause (v) shall be based on good faith estimates of the Company on the
date of the consummation of any Relocation which were reasonable when made but such estimates shall be subject to adjustment within 90 days thereafter). 
  
 “Non-Recourse Debt” means Indebtedness: 
  
 (1) as to which neither the Company nor any of its Restricted Subsidiaries (a) provides credit support of any kind (including any
undertaking, agreement or instrument that would constitute Indebtedness), (b) is directly liable as a guarantor or otherwise, or (c) constitutes the lender; and 
  
 (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 of the Company) would permit upon notice, lapse of time or both any holder of any other Indebtedness 

  

 13 

 
(other than the Notes) of the Company or any of its 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. 
  
 “Non-U.S. Person” means a Person who is not a U.S. Person. 
  
 “Notes” has the meaning assigned to it in the preamble to this Indenture. The Initial Notes, the Additional Notes and the Exchange Notes 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 (including post-petition interest) under the documentation governing any Indebtedness. 
  
 “Offering” means the offering of the Notes by the Company. 
  
 “Officer” means, with respect to any Person, the Chairman of
the Board, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary or any Vice President or Executive Vice President of such Person.

  
 “Officers’ Certificate” means a
certificate signed on behalf of the Company by two Officers of the Company, one of whom must be the principal executive officer, the principal financial officer, the treasurer or the principal accounting officer of the Company, that meets the
requirements of Section 11.05 hereof. 
  
 “Opinion of
Counsel” means an opinion from legal counsel who is reasonably acceptable to the Trustee, that meets the requirements of Section 11.05 hereof. Such counsel may be an employee of or counsel to the Company, any Subsidiary of the Company or
the Trustee. 
  
 “Parent” means LBI Holdings I,
Inc., a California corporation, or any successor. 
  
 “Parent Securities Purchase Documents” means the Securities Purchase Agreement governing the Existing Parent Notes, dated as of March 20, 2001, as amended on July 9, 2002 and on October 10, 2003, the Warrant Agreement
governing the Existing Parent Warrants, dated as of March 20, 2001, as amended on July 9, 2002 and on October 10, 2003, and documents related to any of the foregoing, in each case as amended or modified from time to time after October 10, 2003 in a
manner that is not materially adverse to the Holders. 
  
 “Participant” means, with respect to the Depositary, Euroclear or Clearstream, a Person who has an account with the Depositary, Euroclear or Clearstream, respectively (and, with respect to DTC, shall include Euroclear and
Clearstream). 
  
 “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 in a Permitted Business. 
  
 “Permitted Business” means any business of the type engaged
in by the Company or its Restricted Subsidiaries as of the date of this Indenture or any business reasonably related, ancillary or complementary thereto. 
  

 14 

 “Permitted Dividend Amount” means, for any taxable period, the amount (determined by a
Tax Accountant) by which the Dividend Limitation for the taxable year exceeds the aggregate Permitted Shareholder Tax Distributions paid by the Company for such year pursuant to Section 4.07, including distributions paid or loans made by the Company
or LBI Media within 105 days after the end of the taxable year for which a distribution is paid or loan is made; provided, that: 
  
 (1) if, at the end of any taxable year of the Company, the Dividend Limitation for such year exceeds the aggregate Permitted Shareholder
Tax Distributions paid by the Company or LBI Media for such year pursuant to Section 4.07, such excess shall be ignored for purposes of computing the Permitted Dividend Amount for any subsequent period; 
  
 (2) if, at the end of any taxable year of the Company, the
aggregate Permitted Shareholder Tax Distributions paid by the Company or LBI Media for such year pursuant to Section 4.07 exceed the Dividend Limitation, the Permitted Dividend Amount shall be zero and such excess shall be included and credited in
the calculation of the aggregate Permitted Shareholder Tax Distributions paid by the Company or LBI Media for the following taxable year(s); and 
  
 (3) if Parent’s S Corporation election made pursuant to Code Section 1362 (or any successor provision) shall be determined to be
invalid, or is revoked or terminated, or the QSSS Election shall cease to be in effect for the Company or LBI Media, the Permitted Dividend Amount for the Company shall be zero from and after the date of such invalidity, revocation or termination.

  
 For the avoidance of doubt, in determining the amounts that
can be distributed to pay the tax liabilities of the shareholders of the Parent or any of its Subsidiaries under this definition and other provisions of this Indenture, if there are multiple distributions and/or loans with respect to the same tax
liability (e.g., an amount from LBI Media to the Company and the same amount from the Company to Parent), such a series of distributions and/or loans shall be counted once only. 
  
 “Permitted Holdings Tax Distributions” means cash distributions and/or loans (to be computed by the Tax
Accountant) from LBI Media to Parent or the Company and/or the Company to Parent in respect of any taxable year to permit Parent to pay its estimated and final state income tax liabilities which are attributable to the taxable income of the Company
and/or LBI Media for such taxable year calculated as though the Company and LBI Media were S Corporations. If in any year Parent or the Company is required to pay additional taxes with respect to a prior year’s tax return which are attributable
to the taxable income of the Company and/or LBI Media calculated as though the Company and LBI Media were S Corporations (whether because of an audit by a taxing authority, an amended return the filing of which is required in the reasonable judgment
of Parent or otherwise), the amount of Permitted Holdings Tax Distributions which may be paid or loaned in such year shall be increased by the amount of such additional taxes. 
  
 “Permitted Investments” means: 
  
 (1) any Investment in the Company or in a Restricted Subsidiary of the Company; 
  
 (2) any Investment in Cash Equivalents; 
  
 (3) any Investment by the Company or any Restricted
Subsidiary of the Company in a Person, if as a result of such Investment: 
  

 15 

 (a) such Person becomes a Restricted Subsidiary of the Company; 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 Company or a Restricted Subsidiary of the Company; 
  
 (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 (including Investments in Unrestricted Subsidiaries of the Company) solely in exchange for the issuance of Equity Interests (other than Disqualified Stock) of the Company or Parent; 
  
 (6) any Investments received in compromise of obligations 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) loans and advances to employees of the Company and its
Restricted Subsidiaries and loans to Affiliates of the Company and other Persons not in excess of $5.0 million in aggregate principal amount at any time outstanding (including any such loans and advances by LBI Media made since July 9, 2002) and the
cancellation or forgiveness thereof; provided, however, that no such cancellation or forgiveness shall increase the aggregate amount of loans or advances otherwise permitted under this Indenture; 
  
 (9) any intercompany loan made by LBI Media’s
predecessor to Parent prior to July 9, 2002 and the cancellation or forgiveness thereof; 
  
 (10) the receipt by the Company or LBI Media of notes from one or more employees of the Company or any Restricted Subsidiary of the
Company in connection with such employees’ acquisition of shares of Parent’s common stock and any cancellation or forgiveness thereof, so long as no cash is advanced by the Company or any Restricted Subsidiary of the Company to such
officers or employees or Parent in connection with the acquisition of any such obligations or the cancellation or forgiveness thereof; 
  
 (11) escrow deposits made pursuant to Investments permitted hereunder or acquisitions; 
  
 (12) Investments made in connection with, or accepted as
consideration in a Relocation; 
  
 (13)
Investments relating to LMAs entered into in connection with independently owned broadcast properties, not to exceed an aggregate of $10.0 million; 
  
 (14) the $1.9 million loan to Lenard Liberman made by LBI Media on July 9, 2002 and any cancellation or forgiveness thereof; and

  
 (15) 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 (15) that are at the time
outstanding not to exceed $5.0 million. 
  

 16 

 “Permitted Liens” means: 
  
 (1) Liens of the Company, LBI Media or any Senior Subordinated Note Guarantor securing Indebtedness and
other Obligations under Credit Facilities or securing other Indebtedness and other Obligations of any Restricted Subsidiary of the Company permitted by the terms of this Indenture to be incurred; 
  
 (2) Liens in favor of the Company or any Restricted
Subsidiary of the Company; 
  
 (3) Liens on
property of a Person existing at the time such Person is merged with or into or consolidated with the Company or any Restricted Subsidiary of the Company; provided that such Liens were in existence prior to the 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 Company or the Restricted Subsidiary of the Company; 
  
 (4) Liens on property existing at the time of acquisition of the property by the Company or any Restricted
Subsidiary of the Company; provided that such Liens were in existence prior to the 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) permitted by clause (iv) of the second paragraph of Section 4.09 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 on assets of Unrestricted Subsidiaries of the Company that secure Non-Recourse Debt of Unrestricted Subsidiaries of the Company; 
  
 (10) Liens to secure Indebtedness that is pari passu in right of payment with the Notes;
provided that the Notes are equally and ratably secured thereby; 
  
 (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; 
  

 17 

 (14) Liens securing reimbursement obligations with respect to 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 statutory, regulatory, contractual or warranty obligations, including rights of offset and
set-off; 
  
 (16) Liens securing Hedging
Obligations 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 Company or a Restricted Subsidiary of the Company 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 that are not overdue or that 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 Company or a Restricted Subsidiary of the Company in accordance with GAAP; 
  
 (22) Liens encumbering property of the Company or a
Restricted Subsidiary of the Company 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 for borrowed money) entered into in the ordinary course of business of the Company or a Restricted Subsidiary of the Company; and 
  
 (23) bankers’ liens in the nature of rights of setoff
arising in the ordinary course of business of the Company or any of its Restricted Subsidiaries. 
  
 “Permitted Refinancing Indebtedness” means any Indebtedness of the Company or any of its 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 Company or any of its 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); 
  
 (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; 
  

 18 

 (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; and 
  
 (4) such Indebtedness is incurred either by the Company or by the Restricted Subsidiary of the Company who
is the obligor on the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded. 
  
 “Permitted Shareholder Tax Distributions” means cash distributions and/or loans in amounts computed by a Tax Accountant and made by LBI
Media to the Company or to Parent or the shareholders of Parent and/or by the Company to Parent or such shareholders to permit the shareholders of Parent to pay their estimated and final federal and state income tax liabilities attributable to the
income LBI Media and/or the Company calculated as though LBI Media and the Company were S Corporations. Permitted Shareholder Tax Distributions may not be made more frequently than quarterly with respect to each period for which an installment of
estimated tax would be required to be paid by the shareholders of Parent; provided, however, that the amount of such distributions or loans shall not exceed the Permitted Dividend Amount. For purposes of computing the amount of
aggregate Permitted Shareholder Tax Distributions for any taxable year, amounts paid in such taxable year by the Company or LBI Media to the State of California on behalf of nonresident shareholders as estimated taxes or as withholding taxes
pursuant to the California Revenue and Taxation Code shall be treated as Permitted Shareholder Tax Distributions. If nonresident shareholders recontribute to the Company or LBI Media any such amounts paid on their behalf, however, the amounts
contributed shall be subtracted from the amount of aggregate Permitted Shareholder Tax Distributions for the taxable year in which the contributions are made. If, in any year Parent’s shareholders are required to pay additional taxes with
respect to a prior year’s tax return which are attributable to the taxable income of LBI Media and/or the Company calculated as though LBI Media and the Company were S Corporations (whether because of an audit by a taxing authority, an amended
return the filing of which is required in the reasonable judgment of Parent, or otherwise), the amount of Permitted Shareholder Tax Distributions which may be paid in such year shall be increased by the amount of such additional taxes as determined
by a Tax Accountant. Notwithstanding any other provision in this Indenture to the contrary, in the event that in any future tax period Parent fails to qualify as an S Corporation for California and/or other state tax purposes or otherwise fails to
receive the benefits of S Corporation tax treatment, but continues to maintain its S Corporation status for federal income tax purposes, the amount that can be distributed or loaned under this paragraph or any other provisions of this Indenture
shall include and shall be increased by the amount of California and/or other state taxes imposed on such distributions and loans (including the additional distributions and loans under this sentence). 
  
 “Person” means any individual, corporation, partnership,
joint venture, association, joint-stock company, trust, unincorporated organization, limited liability company or government or other entity. 
  
 “principal amount at maturity” means, with respect to the Notes, $1,000 per $1,000 face amount of Notes; provided, however, that if the
Company shall have made a Cash Interest Election, the principal amount at maturity with respect to each Note shall be the Accreted Value of such Note as of the Cash Interest Election Date. 
  
 “Principals” means Jose Liberman and Lenard Liberman.

  

 19 

 “Private Placement Legend” means the legend set forth in Section 2.06(g)(i) to be placed
on all Notes issued under this Indenture except where otherwise permitted by the provisions of this Indenture. 
  
 “Public Equity Offering” means an underwritten primary public offering of common stock of the Company, Parent or any other parent
corporation of the Company. 
  
 “QIB” means a
“qualified institutional buyer” as defined in Rule 144A. 
  
 “QSSS Election” means the election to treat any Person as a qualified Subchapter S subsidiary pursuant to Code Section 1361(b)(3) (or any successor provision). 
  
 “Registration Rights Agreement” means the Registration Rights Agreement, dated as of October 10, 2003, by
and among the Company and the other parties named on the signature pages thereof, as such agreement may be amended, modified or supplemented from time to time, and, with respect to any Additional Notes, one or more registration rights agreements
between the Company and the other parties thereto, as such agreement(s) may be amended, modified or supplemented from time to time, relating to rights given by the Company to the purchasers of Additional Notes to register such Additional Notes under
the Securities Act. 
  
 “Regulation S” means
Regulation S promulgated under the Securities Act. 
  
 “Regulation S Global Note” means a Regulation S Temporary Global Note or Regulation S Permanent Global Note, as appropriate. 
  
 “Regulation S Permanent Global Note” means a permanent Global Note in the form of Exhibit A-1 hereto bearing the Global Note Legend and
the Private Placement Legend and deposited with or on behalf of and registered in the name of the Depositary or its nominee, issued in a denomination equal to the outstanding principal amount at maturity of the Regulation S Temporary Global Note
upon expiration of the Restricted Period. 
  
 “Regulation
S Temporary Global Note” means a temporary Global Note in the form of Exhibit A-2 hereto bearing the Private Placement Legend and deposited with or on behalf of and registered in the name of the Depositary or its nominee, issued in a
denomination equal to the outstanding principal amount at maturity of the Notes initially sold in reliance on Rule 903 of Regulation S. 
  
 “Related Party” means: 
  
 (1) any family member, spouse, heir, devisee, executor or similar legal representative 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).

  
 “Relocation” means with respect to any
television broadcast station, (a) any transaction in which a 700 MHz Holder (or any other Person) offers consideration (which consideration consists of a different frequency or frequencies and/or cash or non-cash consideration) to the Company, LBI
Media or any Senior Subordinated Note Guarantor for the cessation of broadcasting on any of the analogue and/or digital frequencies of such broadcast station in order to accommodate the spectrum needs of such 700 MHz Holder, including the prevention
of interference with such 700 MHz Holder’s operations, and the 

  

 20 

 
Company, LBI Media or any Senior Subordinated Note Guarantor is not ordered or directly or indirectly required by the FCC or any other Governmental Authority
to enter into such transaction, or (b) any transaction in which the FCC or any other Governmental Authority orders or otherwise directly or indirectly requires the Company, LBI Media or any Senior Subordinated Note Guarantor to cease broadcasting on
any of its existing analogue and/or digital frequencies in order to accommodate the spectrum needs of any 700 MHz Holder, including the prevention of interference with such 700 MHz Holder’s operations, with or without any consideration; it
being understood that without limiting the generality of the foregoing, the term “Relocation” will include any Relocation as defined in the Shop At Home Acquisition Documents as in effect on March 20, 2001. 
  
 “Restricted Definitive Note” means a Definitive Note bearing
the Private Placement Legend. 
  
 “Restricted Global
Note” means a Global Note bearing the Private Placement Legend. 
  
 “Restricted Investment” means an Investment other than a Permitted Investment of such Person. 
  
 “Restricted Period” means the 40-day restricted period as defined in Regulation S. 
  
 “Restricted Subsidiary” of a Person means any Subsidiary of
that referent Person that is not an Unrestricted Subsidiary. 
  
 “Rule 144” means Rule 144 promulgated under the Securities Act. 
  
 “Rule 144A” means Rule 144A promulgated under the Securities Act. 
  
 “Rule 903” means Rule 903 promulgated under the Securities Act. 
  
 “Rule 904” means Rule 904 promulgated the Securities Act. 
  
 “S Corporation” means a small business corporation within
the meaning of Code Section 1361 (or any successor provision) for which an election is in effect under Code Section 1362(a) (or any successor provision). 
  
 “SEC” means the Securities and Exchange Commission. 
  
 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Senior Subordinated Note Guarantor” means any Subsidiary of
LBI Media that is a guarantor of the Senior Subordinated Notes pursuant to the terms of the indenture governing the Senior Subordinated Notes. 
  
 “Senior Subordinated Notes” means the 10 1/8% Senior Subordinated Notes due 2012 of LBI Media. 
  
 “700 MHz Holder” means a holder of a 700 MHz license or construction permit. 
  
 “Shelf Registration Statement” means the Shelf Registration
Statement as defined in the Registration Rights Agreement. 
  
 “Shop At Home Acquisition Documents” means that certain Asset Purchase Agreement dated as of November 10, 2000, among LBI Media, Liberman Television of Houston, Inc., KZJL License Corp. and the Shop At Home Sellers, as
amended, in respect of the acquisition by Liberman Television of Houston, Inc. and KZJL License Corp. of the Broadcast Station KZJL-TV in Houston, Texas. 
  

 21 

 “Shop At Home Relocation” means a Relocation that constitutes a Voluntary Relocation or
specified Involuntary Relocation as defined in the Shop At Home Acquisition Documents. 
  
 “Shop At Home Relocation Profits” means Relocation Profits (as defined in the Shop At Home Acquisition Documents) received by LBI Media pursuant to a Shop At Home Relocation which entitles Shop At
Home Sellers to a portion of such Relocation Profit. 
  
 “Shop At Home Sellers” means Shop At Home, Inc., SAH-Houston Corporation, SAH-Houston License Corp. and SAH License, Inc. 
  
 “Significant Subsidiary” means any Subsidiary that would be a “significant subsidiary” as defined in Article 1, Rule 1-02 of
Regulation S-X, promulgated pursuant to the Securities Act, as such Regulation is in effect on the date hereof. 
  
 “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 shall 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 
  
 (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). 
  
 “Suspended Losses” means the aggregate amount of losses and deductions of Parent which have been taken into account by the shareholders
of Parent and disallowed under Code Section 1366(d) (or any successor provision) in a prior taxable year. 
  
 “Tax Accountant” means any one of the four largest nationally recognized independent accounting firms, or any other independent
accounting firm jointly approved by the Trustee and the Company. 
  
 “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date on which this Indenture is qualified under the TIA. 
  
 “Trust Officer,” when used with respect to the Trustee, means any officer within the corporate trust
administration group of the Trustee (or any successor group of the Trustee) or any other officer of the Trustee customarily performing functions similar to those performed by any such officers and also means, with respect to a particular corporate
trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. 
  

 22 

 “Trustee” means the party named as such in the preamble to this Indenture until a
successor replaces it in accordance with the applicable provisions of this Indenture and thereafter means the successor serving hereunder. 
  
 “Unrestricted Global Note” means a permanent Global Note substantially in the form of Exhibit A-1 attached hereto that bears the Global
Note Legend and that has the “Schedule of Exchanges of Interests in the Global Note” attached thereto, and that is deposited with or on behalf of and registered in the name of the Depositary, representing a series of Notes that do not bear
the Private Placement Legend. 
  
 “Unrestricted Definitive
Note” means one or more Definitive Notes that do not bear and are not required to bear the Private Placement Legend. 
  
 “Unrestricted Subsidiary” means any Subsidiary of a Person that is designated by the Board of Directors of such Person as an Unrestricted
Subsidiary pursuant to a resolution of the Board of Directors, 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 Company or any Restricted
Subsidiary of the Company unless the terms of any such agreement, contract, arrangement or understanding are no less favorable to the Company or such Restricted Subsidiary than those that might be obtained at the time from Persons who are not
Affiliates of the Company; 
  
 (3) is a Person
with respect to which neither the Company nor any of its 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 Company or any of its Restricted Subsidiaries. 
  
 Any designation of a Subsidiary of the Company as an Unrestricted Subsidiary
will be evidenced to the Trustee by filing with the Trustee a certified copy of the resolution of the Board of Directors of the Company giving effect to such designation and an Officers’ Certificate certifying that such designation complied
with the preceding conditions and was permitted by the terms of Section 4.07 hereof. If, at any time, any Unrestricted Subsidiary of the Company would fail to meet the preceding requirements as an Unrestricted Subsidiary of the Company, it will
thereafter cease to be an Unrestricted Subsidiary of the Company for purposes of this Indenture and any Indebtedness of such Subsidiary will be deemed to be incurred by a Restricted Subsidiary of the Company as of such date and, if such Indebtedness
is not permitted to be incurred as of such date pursuant to Section 4.09, the Company will be in default under such section. The Board of Directors of the Company 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 the Company of any outstanding Indebtedness of such Unrestricted Subsidiary and such designation will only be permitted if (1)
such Indebtedness is permitted pursuant to Section 4.09, 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. 
  
 “U.S. Person”
means a U.S. person as defined in Rule 902(o) under the Securities Act. 
  

 23 

 “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. 
  
 Section 1.02. Other Definitions. 
  

	 Term

	  	 Defined in
 Section

	 “Affiliate Transaction”
	  	4.11
	 “Asset Sale Offer”
	  	3.09
	 “Authentication Order”
	  	2.02
	 “Change of Control Offer”
	  	4.15
	 “Change of Control Payment”
	  	4.15
	 “Change of Control Payment Date”
	  	4.15
	 “Covenant Defeasance”
	  	8.03
	 “DTC”
	  	2.03
	 “Event of Default”
	  	6.01
	 “Excess Proceeds”
	  	4.10
	 “incur”
	  	4.09
	 “Incurrence Notice”
	  	4.09
	 “Insignificant Subsidiaries”
	  	6.01
	 “Legal Defeasance”
	  	8.02
	 “Offer Amount”
	  	3.09
	 “Offer Period”
	  	3.09
	 “Paying Agent”
	  	2.03
	 “Payment Default”
	  	6.01
	 “Permitted Debt”
	  	4.09
	 “Purchase Date”
	  	3.09
	 “Registrar”
	  	2.03
	 “Restricted Payments”
	  	4.07

  
 Section 1.03. 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. 
  

 24 

 The following TIA term used in this Indenture has the following meaning: 
  
 “obligor” on the Notes means the Company, and any successor
obligor upon the Notes. 
  
 All other terms used in this Indenture
that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA have the meanings so assigned to them. 
  
 Section 1.04. Rules of Construction. 
  
 Unless the context otherwise requires: 
  
 (a) a term has the meaning assigned to it; 
  
 (b) an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP; 
  
 (c) “or” is not exclusive; 
  
 (d) words in the singular include the plural, and in the plural include the
singular; 
  
 (e) “will” shall be interpreted to express
a command; 
  
 (f) provisions apply to successive events and
transactions; and 
  
 (g) references to sections of or rules under
the Securities Act will be deemed to include substitute, replacement of successor sections or rules adopted by the SEC from time to time. 
  
 ARTICLE 2. 
 THE NOTES 
  
 Section 2.01. Form and Dating. 
  
 (a) General. The Notes and the Trustee’s certificate of
authentication will be substantially in the form of Exhibit A hereto. The Notes may have notations, legends or endorsements required by law, stock exchange rule or usage. Each Note will be dated the date of its authentication. The Notes shall be in
denominations of $1,000 and integral multiples thereof. 
  
 The
terms and provisions contained in the Notes will constitute, and are hereby expressly made, a part of this Indenture; and the Company 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. 
  
 (b) Global Notes. Notes issued in global form will be substantially in
the form of Exhibit A-1 or A-2 attached hereto (including the Global Note Legend thereon and the “Schedule of Exchanges of Interests in the Global Note” attached thereto). Notes issued in definitive form will be substantially in the form
of Exhibit A-1 attached hereto (but without the Global Note Legend thereon and without the “Schedule of Exchanges of Interests in the Global Note” attached thereto). Each Global Note will represent such of the outstanding Notes as will be
specified therein and each shall provide that it represents the aggregate principal amount at maturity of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount at maturity of outstanding Notes represented
thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any 

  

 25 

 
endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal amount at maturity of outstanding Notes represented
thereby will be made by the Trustee or the Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder thereof as required by Section 2.06 hereof. 
  
 (c) Temporary Global Notes. Notes offered and sold in reliance on Regulation S will be issued initially in the form
of the Regulation S Temporary Global Note, which will be deposited on behalf of the purchasers of the Notes represented thereby with the Trustee, at its New York office, as custodian for the Depositary, and registered in the name of the Depositary
or the nominee of the Depositary for the accounts of designated agents holding on behalf of Euroclear or Clearstream, duly executed by the Company and authenticated by the Trustee as hereinafter provided. The Restricted Period will be terminated
upon the receipt by the Trustee of: 
  
 (i) a
written certificate from the Depositary, together with copies of certificates from Euroclear and Clearstream certifying that they have received certification of non-United States beneficial ownership of 100% of the aggregate principal amount at
maturity of the Regulation S Temporary Global Note (except to the extent of any beneficial owners thereof who acquired an interest therein during the Restricted Period pursuant to another exemption from registration under the Securities Act and who
will take delivery of a beneficial ownership interest in a 144A Global Note or an IAI Global Note bearing a Private Placement Legend, all as contemplated by Section 2.06(a)(ii) hereof); and 
  
 (ii) an Officers’ Certificate from the Company.

  
 Following the termination of the Restricted Period, beneficial
interests in the Regulation S Temporary Global Note will be exchanged for beneficial interests in Regulation S Permanent Global Notes pursuant to the Applicable Procedures. Simultaneously with the authentication of Regulation S Permanent Global
Notes, the Trustee will cancel the Regulation S Temporary Global Note. The aggregate principal amount at maturity of the Regulation S Temporary Global Note and the Regulation S Permanent Global Notes may from time to time be increased or decreased
by adjustments made on the records of the Trustee and the Depositary or its nominee, as the case may be, in connection with transfers of interest as hereinafter provided. 
  
 (d) Euroclear and Clearstream Procedures Applicable. The provisions of the “Operating Procedures of the
Euroclear System” and “Terms and Conditions Governing Use of Euroclear” and the “General Terms and Conditions of Clearstream” and “Customer Handbook” of Clearstream will be applicable to transfers of beneficial
interests in the Regulation S Temporary Global Note and the Regulation S Permanent Global Notes that are held by Participants through Euroclear or Clearstream. 
  

Section 2.02. Execution and Authentication. 
  
 One Officer will sign the Notes for the Company 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 will
nevertheless be valid. 
  
 A Note will not be valid until
authenticated by the manual signature of the Trustee. The signature will be conclusive evidence that the Note has been authenticated under this Indenture. 
  

 26 

 The Trustee will, upon a written order of the Company signed by an Officer (an “Authentication
Order”), authenticate Notes for original issue up to the aggregate principal amount at maturity that may be validly issued under this Indenture, including Additional Notes. 
  
 The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Notes. 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 an Affiliate
of the Company. 
  
 Section 2.03. Registrar and Paying Agent. 

 
 The Company will maintain an office or agency where Notes may be
presented for registration of transfer or for exchange (“Registrar”) and an office or agency where Notes may be presented for payment (“Paying Agent”). The Registrar will keep a register of the Notes and of their
transfer and exchange. The Company 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 Company may change any Paying Agent or Registrar without notice to any Holder. The Company will notify the Trustee in writing of the name and address of any Agent not a party to this Indenture. If the Company fails to appoint or maintain another
entity as Registrar or Paying Agent, the Trustee shall act as such. The Company or any of its Subsidiaries may act as Paying Agent or Registrar. 
  
 The Company initially appoints The Depository Trust Company (“DTC”) to act as Depositary with respect to the Global Notes. 
  
 The Company initially appoints the Trustee to act as the Registrar and Paying
Agent and to act as Custodian with respect to the Global Notes. 
  
 Section
2.04. Paying Agent to Hold Money in Trust. 
  
 The Company
will require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held by the Paying Agent for the payment of principal, premium or Liquidated
Damages, if any, or interest on the Notes, and will notify the Trustee of any default by the Company 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
Company 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 Company or a Subsidiary) will have no further liability for the money. If the Company or
a Subsidiary acts as Paying Agent, it will segregate and hold in a separate trust fund for the benefit of the Holders all money held by it as Paying Agent. Upon any bankruptcy or reorganization proceedings relating to the Company, the Trustee will
serve as Paying Agent for the Notes. 
  
 Section 2.05. Holder Lists.

  
 The Trustee will 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 Company will furnish to the Trustee at least seven
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 of Notes and the
Company shall otherwise comply with TIA § 312(a). 
  

 27 

 Section 2.06. Transfer and Exchange. 
  
 (a) Transfer and Exchange of Global Notes. A Global Note may not be transferred as a whole except by the Depositary
to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. All Global Notes
will be exchanged by the Company for Definitive Notes if: 
  
 (i) the Company delivers to the Trustee notice from the Depositary that it is unwilling or unable to continue to act as Depositary or that it is no longer a clearing agency registered under the Exchange Act and, in
either case, a successor Depositary is not appointed by the Company within 120 days after the date of such notice from the Depositary; or 
  
 (ii) the Company in its sole discretion determines that the Global Notes (in whole but not in part) should be exchanged for Definitive
Notes and delivers a written notice to such effect to the Trustee; provided that in no event shall the Regulation S Temporary Global Note be exchanged by the Company for Definitive Notes prior to (x) the expiration of the Restricted Period
and (y) the receipt by the Registrar of any certificates required pursuant to Rule 903(b)(3)(ii)(B) under the Securities Act. 
  
 Upon the occurrence of either of the preceding events in (i) or (ii) above, Definitive Notes shall be issued in such names as the Depositary shall
instruct the Trustee. Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 2.07 and 2.10 hereof. Every Note authenticated and delivered in exchange for, or in lieu of, a Global Note or any portion thereof,
pursuant to this Section 2.06 or Section 2.07 or 2.10 hereof, shall be authenticated and delivered in the form of, and shall be, a Global Note. A Global Note may not be exchanged for another Note other than as provided in this Section 2.06(a),
however, beneficial interests in a Global Note may be transferred and exchanged as provided in Section 2.06(b), (c) or (f) hereof. 
  
 (b) Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer and exchange of beneficial interests in the Global Notes will
be effected through the Depositary, in accordance with the provisions of this Indenture and the Applicable Procedures. Beneficial interests in the Restricted Global Notes will be subject to restrictions on transfer comparable to those set forth
herein to the extent required by the Securities Act. Transfers of beneficial interests in the Global Notes also will require compliance with either subparagraph (i) or (ii) below, as applicable, as well as one or more of the other following
subparagraphs, as applicable: 
  
 (i) Transfer
of Beneficial Interests in the Same Global Note. Beneficial interests in any Restricted Global Note may be transferred to Persons who take delivery thereof in the form of a beneficial interest in the same Restricted Global Note in accordance
with the transfer restrictions set forth in the Private Placement Legend; provided, however, that prior to the expiration of the Restricted Period, transfers of beneficial interests in the Regulation S Temporary Global Note may not be made to
a U.S. Person or for the account or benefit of a U.S. Person (other than an Initial Purchaser). Beneficial interests in any Unrestricted Global Note may be transferred to Persons who take delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note. No written orders or instructions shall be required to be delivered to the Registrar to effect the transfers described in this Section 2.06(b)(i). 
  
 (ii) All Other Transfers and Exchanges of Beneficial Interests in Global Notes. In connection with
all transfers and exchanges of beneficial interests that are not subject to Section 2.06(b)(i) above, the transferor of such beneficial interest must deliver to the Registrar either (A) 

  

 28 

 
(1) a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the
Depositary to credit or cause to be credited a beneficial interest in another Global Note in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions given in accordance with the Applicable Procedures containing
information regarding the Participant account to be credited with such increase or (B) (1) a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to
cause to be issued a Definitive Note in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions given by the Depositary to the Registrar containing information regarding the Person in whose name such Definitive
Note shall be registered to effect the transfer or exchange referred to in (1) above; provided that in no event shall Definitive Notes be issued upon the transfer or exchange of beneficial interests in the Regulation S Temporary Global Note
prior to (x) the expiration of the Restricted Period and (y) the receipt by the Registrar of any certificates required pursuant to Rule 903 under the Securities Act. Upon consummation of an Exchange Offer by the Company in accordance with Section
2.06(f) hereof, the requirements of this Section 2.06(b)(ii) shall be deemed to have been satisfied upon receipt by the Registrar of the instructions contained in the Letter of Transmittal delivered by the Holder of such beneficial interests in the
Restricted Global Notes. Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests in Global Notes contained in this Indenture and the Notes or otherwise applicable under the Securities Act, the Trustee shall
adjust the principal amount of the relevant Global Note(s) pursuant to Section 2.06(h) hereof. 
  
 (iii) Transfer of Beneficial Interests to Another Restricted Global Note. A beneficial interest in any Restricted Global Note may
be transferred to a Person who takes delivery thereof in the form of a beneficial interest in another Restricted Global Note if the transfer complies with the requirements of Section 2.06(b)(ii) above and the Registrar receives the following:

  
 (A) if the transferee will take delivery in
the form of a beneficial interest in the 144A Global Note, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (1) thereof; 
  
 (B) if the transferee will take delivery in the form of a
beneficial interest in the Regulation S Temporary Global Note or the Regulation S Permanent Global Note, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (2) thereof; and

  
 (C) if the transferee will take delivery in
the form of a beneficial interest in the IAI Global Note, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by item (3) thereof, if applicable.

  
 (iv) Transfer and Exchange of Beneficial
Interests in a Restricted Global Note for Beneficial Interests in the Unrestricted Global Note. A beneficial interest in any Restricted Global Note may be exchanged by any holder thereof for a beneficial interest in an Unrestricted Global Note
or transferred to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note if the exchange or transfer complies with the requirements of Section 2.06(b)(ii) above and: 
  
 (A) such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement and the holder of the beneficial interest to be transferred, in the case of an exchange, or the transferee, in the case of a 

  

 29 

 
transfer, certifies in the applicable Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a Person participating in the distribution of the
Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144) of the Company; 
  
 (B) such transfer is effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement;

  
 (C) such transfer is effected by a
Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 
  
 (D) the Registrar receives the following: 
  
 (1) if the holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a beneficial
interest in an Unrestricted Global Note, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (1)(a) thereof; or 
  
 (2) if the holder of such beneficial interest in a Restricted Global Note proposes to transfer such
beneficial interest to a Person who shall take delivery thereof in the form of a beneficial interest in an Unrestricted Global Note, a certificate from such holder in the form of Exhibit B hereto, including the certifications in item (4) thereof;

  
 and, in each such case set forth in this subparagraph (D), if
the Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the Registrar to the effect that such exchange or transfer is in compliance with the Securities Act and that the
restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act. 
  
 If any such transfer is effected pursuant to subparagraph (B) or (D) above at a time when an Unrestricted Global Note has not yet been issued, the Company
shall issue and, upon receipt of an Authentication Order in accordance with Section 2.02 hereof, the Trustee shall authenticate one or more Unrestricted Global Notes in an aggregate principal amount at maturity equal to the aggregate principal
amount at maturity of beneficial interests transferred pursuant to subparagraph (B) or (D) above. 
  
 Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or transferred to Persons who take delivery thereof in the form of, a
beneficial interest in a Restricted Global Note. 
  
 (c)
Transfer or Exchange of Beneficial Interests for Definitive Notes. 
  
 (i) Beneficial Interests in Restricted Global Notes to Restricted Definitive Notes. If any holder of a beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a
Restricted Definitive Note or to transfer such beneficial interest to a Person who takes delivery thereof in the form of a Restricted Definitive Note, then, upon receipt by the Registrar of the following documentation: 
  
 (A) if the holder of such beneficial interest in a
Restricted Global Note proposes to exchange such beneficial interest for a Restricted Definitive Note, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (2)(a) thereof; 
  

 30 

 (B) if such beneficial interest is being transferred to a QIB in accordance with Rule
144A, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (1) thereof; 
  
 (C) if such beneficial interest is being transferred to a Non-U.S. Person in an offshore transaction in accordance with Rule 903 or Rule
904, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof; 
  
 (D) if such beneficial interest is being transferred pursuant to an exemption from the registration requirements of the Securities Act in
accordance with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof; 
  
 (E) if such beneficial interest is being transferred to an Institutional Accredited Investor in reliance on an exemption from the
registration requirements of the Securities Act other than those listed in subparagraphs (B) through (D) above, a certificate to the effect set forth in Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by
item (3) thereof, if applicable; 
  
 (F) if such
beneficial interest is being transferred to the Company or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(b) thereof; or 
  
 (G) if such beneficial interest is being transferred
pursuant to an effective registration statement under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(c) thereof, 
  
 the Trustee shall cause the aggregate principal amount at maturity of the applicable Global Note to be reduced accordingly
pursuant to Section 2.06(h) hereof, and the Company shall execute and the Trustee shall authenticate and deliver to the Person designated in the instructions a Definitive Note in the appropriate principal amount. Any Definitive Note issued in
exchange for a beneficial interest in a Restricted Global Note pursuant to this Section 2.06(c) shall be registered in such name or names and in such authorized denomination or denominations as the holder of such beneficial interest shall instruct
the Registrar through instructions from the Depositary and the Participant or Indirect Participant. The Trustee shall deliver such Definitive Notes to the Persons in whose names such Notes are so registered. Any Definitive Note issued in exchange
for a beneficial interest in a Restricted Global Note pursuant to this Section 2.06(c)(i) shall bear the Private Placement Legend and shall be subject to all restrictions on transfer contained therein. 
  
 (ii) Beneficial Interests in Regulation S Temporary
Global Note to Definitive Notes. Notwithstanding Sections 2.06(c)(i)(A) and (C) hereof, a beneficial interest in the Regulation S Temporary Global Note may not be exchanged for a Definitive Note or transferred to a Person who takes delivery
thereof in the form of a Definitive Note prior to (x) the expiration of the Restricted Period and (y) the receipt by the Registrar of any certificates required pursuant to Rule 903(b)(3)(ii)(B) under the Securities Act, except in the case of a
transfer pursuant to an exemption from the registration requirements of the Securities Act other than Rule 903 or Rule 904. 
  
 (iii) Beneficial Interests in Restricted Global Notes to Unrestricted Definitive Notes. A holder of a beneficial interest in a
Restricted Global Note may exchange such beneficial 

  

 31 

 
interest for an Unrestricted Definitive Note or may transfer such beneficial interest to a Person who takes delivery thereof in the form of an Unrestricted
Definitive Note only if: 
  
 (A) such exchange or
transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement and the holder of such beneficial interest, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a Person participating in the distribution of the Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144) of the Company; 
  
 (B) such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights Agreement; 
  
 (C) such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 
  
 (D) the Registrar receives the following: 
  
 (1) if the holder of such beneficial interest in a
Restricted Global Note proposes to exchange such beneficial interest for a Definitive Note that does not bear the Private Placement Legend, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (1)(b)
thereof; or 
  
 (2) if the holder of such
beneficial interest in a Restricted Global Note proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form of a Definitive Note that does not bear the Private Placement Legend, a certificate from such
holder in the form of Exhibit B hereto, including the certifications in item (4) thereof; 
  
 and, in each such case set forth in this subparagraph (D), if the Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the Registrar to the effect
that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act.

  
 (iv) Beneficial Interests in Unrestricted
Global Notes to Unrestricted Definitive Notes. If any holder of a beneficial interest in an Unrestricted Global Note proposes to exchange such beneficial interest for a Definitive Note or to transfer such beneficial interest to a Person who
takes delivery thereof in the form of a Definitive Note, then, upon satisfaction of the conditions set forth in Section 2.06(b)(ii) hereof, the Trustee will cause the aggregate principal amount at maturity of the applicable Global Note to be reduced
accordingly pursuant to Section 2.06(h) hereof, and the Company will execute and the Trustee will authenticate and deliver to the Person designated in the instructions a Definitive Note in the appropriate principal amount. Any Definitive Note issued
in exchange for a beneficial interest pursuant to this Section 2.06(c)(iii) will be registered in such name or names and in such authorized denomination or denominations as the holder of such beneficial interest instructs the Registrar through
instructions to the Registrar from or through the Depositary and the Participant or Indirect Participant. The Trustee will deliver such Definitive Notes to the Persons in whose names such Notes are so registered. Any Definitive Note issued in
exchange for a beneficial interest pursuant to this Section 2.06(c)(iii) will not bear the Private Placement Legend. 
  

 32 

 (d) Transfer and Exchange of Definitive Notes for Beneficial Interests. 
  
 (i) Restricted Definitive Notes to Beneficial Interests
in Restricted Global Notes. If any Holder of a Restricted Definitive Note proposes to exchange such Note for a beneficial interest in a Restricted Global Note or to transfer such Restricted Definitive Note to a Person who takes delivery thereof
in the form of a beneficial interest in a Restricted Global Note, then, upon receipt by the Registrar of the following documentation: 
  
 (A) if the Holder of such Restricted Definitive Note proposes to exchange such Note for a beneficial interest in a Restricted Global Note,
a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (2)(b) thereof; 
  
 (B) if such Restricted Definitive Note is being transferred to a QIB in accordance with Rule 144A, a certificate to the effect set forth
in Exhibit B hereto, including the certifications in item (1) thereof; 
  
 (C) if such Restricted Definitive Note is being transferred to a Non-U.S. Person in an offshore transaction in accordance with Rule 903 or Rule 904, a certificate to the effect set forth in Exhibit B hereto, including
the certifications in item (2) thereof; 
  
 (D)
if such Restricted Definitive Note is being transferred pursuant to an exemption from the registration requirements of the Securities Act in accordance with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including the
certifications in item (3)(a) thereof; 
  
 (E) if
such Restricted Definitive Note is being transferred to an Institutional Accredited Investor in reliance on an exemption from the registration requirements of the Securities Act other than those listed in subparagraphs (B) through (D) above, a
certificate to the effect set forth in Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by item (3) thereof, if applicable; 
  
 (F) if such Restricted Definitive Note is being transferred to the Company or any of its Subsidiaries, a
certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(b) thereof; or 
  
 (G) if such Restricted Definitive Note is being transferred pursuant to an effective registration statement under the Securities Act, a
certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(c) thereof, 
  
 the Trustee shall cancel such Restricted Definitive Note, increase or cause to be increased the aggregate principal amount at maturity of, in the case of
clause (A) above, the appropriate Restricted Global Note, in the case of clause (B) above, the 144A Global Note, in the case of clause (C) above, the Regulation S Global Note, and in all other cases, the IAI Global Note. 
  
 (ii) Restricted Definitive Notes to Beneficial Interests
in Unrestricted Global Notes. A Holder of a Restricted Definitive Note may exchange such Note for a beneficial interest in an Unrestricted Global Note or transfer such Restricted Definitive Note to a Person who takes delivery thereof in the form
of a beneficial interest in an Unrestricted Global Note only if: 
  
 (A) such exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement and the Holder, in the case of an 

  

 33 

 
exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a Person
participating in the distribution of the Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144) of the Company; 
  
 (B) such transfer is effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement;

  
 (C) such transfer is effected by a
Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 
  
 (D) the Registrar receives the following: 
  
 (1) if the Holder of such Definitive Note proposes to exchange such Note for a beneficial interest in the Unrestricted Global Note, a
certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(c) thereof; or 
  
 (2) if the Holder of such Definitive Note proposes to transfer such Note to a Person who shall take delivery thereof in the form of a
beneficial interest in the Unrestricted Global Note, a certificate from such Holder in the form of Exhibit B hereto, including the certifications in item (4) thereof; 
  
 and, in each such case set forth in this subparagraph (D), if the Registrar so requests or if the Applicable Procedures so
require, an Opinion of Counsel in form reasonably acceptable to the Registrar to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement
Legend are no longer required in order to maintain compliance with the Securities Act. 
  
 Upon satisfaction of the conditions of any of the subparagraphs in this Section 2.06(d)(ii), the Trustee will cancel the Definitive Notes
so transferred or exchanged and increase or cause to be increased the aggregate principal amount at maturity of the applicable Unrestricted Global Note. 
  
 (iii) Unrestricted Definitive Notes to Beneficial Interests in Unrestricted Global Notes. A Holder of an Unrestricted Definitive
Note may exchange such Note for a beneficial interest in an Unrestricted Global Note or transfer such Definitive Note to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note at any time. Upon
receipt of a request for such an exchange or transfer, the Trustee will cancel the applicable Unrestricted Definitive Note and increase or cause to be increased the aggregate principal amount at maturity of one of the Unrestricted Global Notes.

  
 If any such exchange or transfer from a
Definitive Note to a beneficial interest is effected pursuant to subparagraphs (ii)(B), (ii)(D) or (iii) above at a time when an Unrestricted Global Note has not yet been issued, the Company will issue and, upon receipt of an Authentication Order in
accordance with Section 2.02 hereof, the Trustee will authenticate one or more Unrestricted Global Notes in an aggregate principal amount at maturity equal to the principal amount of Definitive Notes so transferred. 
  

 34 

 (e) Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by a Holder of
Definitive Notes and such Holder’s compliance with the provisions of this Section 2.06(e), the Registrar will register the transfer or exchange of Definitive Notes. Prior to such registration of transfer or exchange, the requesting Holder will
present or surrender to the Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized in writing. In
addition, the requesting Holder will provide any additional certifications, documents and information, as applicable, required pursuant to the following provisions of this Section 2.06(e). 
  
 (i) Restricted Definitive Notes to Restricted Definitive
Notes. Any Restricted Definitive Note may be transferred to and registered in the name of Persons who take delivery thereof in the form of a Restricted Definitive Note if the Registrar receives the following: 
  
 (A) if the transfer will be made pursuant to Rule 144A then
the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (1) thereof; 
  
 (B) if the transfer will be made pursuant to Rule 903 or Rule 904, then the transferor must deliver a certificate in the form of Exhibit B
hereto, including the certifications in item (2) thereof; and 
  
 (C) if the transfer will be made pursuant to any other exemption from the registration requirements of the Securities Act, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the
certifications, certificates and Opinion of Counsel required by item (3) thereof, if applicable. 
  
 (ii) Restricted Definitive Notes to Unrestricted Definitive Notes. Any Restricted Definitive Note may be exchanged by the Holder
thereof for an Unrestricted Definitive Note or transferred to a Person or Persons who take delivery thereof in the form of an Unrestricted Definitive Note if: 
  

(A) such exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement, and the
Holder, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that it is not (1) a broker-dealer, (2) a Person participating in the distribution of the Exchange Notes or (3) a
Person who is an affiliate (as defined in Rule 144) of the Company; 
  
 (B) any such transfer is effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement; 
  
 (C) any such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement
in accordance with the Registration Rights Agreement; or 
  
 (D) the Registrar receives the following: 
  
 (1) if the Holder of such Restricted Definitive Notes proposes to exchange such Notes for an Unrestricted Definitive Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications
in item (1)(d) thereof; or 
  

 35 

 (2) if the Holder of such Restricted Definitive Notes proposes to transfer such Notes to
a Person who shall take delivery thereof in the form of an Unrestricted Definitive Note, a certificate from such Holder in the form of Exhibit B hereto, including the certifications in item (4) thereof; 
  
 and, in each such case set forth in this subparagraph (D), if the Registrar
so requests, an Opinion of Counsel in form reasonably acceptable to the Company to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement
Legend are no longer required in order to maintain compliance with the Securities Act. 
  
 (iii) Unrestricted Definitive Notes to Unrestricted Definitive Notes. A Holder of Unrestricted Definitive Notes may transfer such
Notes to a Person who takes delivery thereof in the form of an Unrestricted Definitive Note. Upon receipt of a request to register such a transfer, the Registrar shall register the Unrestricted Definitive Notes pursuant to the instructions from the
Holder thereof. 
  
 (f) Exchange Offer. Upon the occurrence
of the Exchange Offer in accordance with the Registration Rights Agreement, the Company will issue and, upon receipt of an Authentication Order in accordance with Section 2.02, the Trustee will authenticate (i) one or more Unrestricted Global Notes
in an aggregate principal amount at maturity equal to the principal amount at maturity of the beneficial interests in the Restricted Global Notes tendered into the Exchange Offer by Persons that certify in the applicable Letters of Transmittal that
(x) they are not Broker-Dealers, (y) they are not participating in a distribution of the Exchange Notes and (z) they are not affiliates (as defined in Rule 144) of the Company and (ii) Unrestricted Definitive Notes in an aggregate principal amount
at maturity equal to the principal amount at maturity of the Restricted Definitive Notes accepted for exchange in the Exchange Offer. Concurrently with the issuance of such Notes, the Trustee will cause the aggregate principal amount at maturity of
the applicable Restricted Global Notes to be reduced accordingly, and the Company will execute and the Trustee will authenticate and deliver to the Persons designated by the Holders of Definitive Notes so accepted Definitive Notes in the appropriate
principal amount. 
  
 (g) Legends. The following legends
will appear on the face of all Global Notes and Definitive Notes issued under this Indenture unless specifically stated otherwise in the applicable provisions of this Indenture. 
  
 (i) Private Placement Legend. 
  
 (A) Except as permitted by subparagraph (B) below, each Global Note and each Definitive Note (and all Notes
issued in exchange therefor or substitution thereof) shall bear the legend in substantially the following form: 
  
 “THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE “SECURITIES
ACT”), AND THIS NOTE MAY NOT BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE
EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 
  

 36 

 THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR
OTHERWISE TRANSFERRED, ONLY (1) INSIDE THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A,
(II) OUTSIDE THE UNITED STATES IN A TRANSACTION COMPLYING WITH THE PROVISIONS OF RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 (IF AVAILABLE), (IV) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, OR (V) TO THE ISSUER, ITS SUBSIDIARIES OR ITS DIRECT OR INDIRECT PARENT, IN EACH OF CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES,
AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.” 
  
 (B) Notwithstanding the foregoing, any Global Note or Definitive Note issued pursuant to subparagraphs
(b)(iv), (c)(iii), (c)(iv), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or (f) to this Section 2.06 (and all Notes issued in exchange therefor or substitution thereof) will not bear the Private Placement Legend. 
  
 (ii) Global Note Legend. Each Global Note will bear a
legend in substantially the following form: 
  
 “THIS GLOBAL NOTE IS HELD BY
THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. 
  
 UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.” 
  

 37 

 (iii) Regulation S Temporary Global Note Legend. The Regulation S Temporary Global
Note will bear a legend in substantially the following form: 
  
 “THE RIGHTS
ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTES, ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN). NEITHER THE HOLDER NOR THE BENEFICIAL OWNERS OF THIS
REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF INTEREST HEREON.” 
  
 (h) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests in a particular Global Note have been exchanged for
Definitive Notes or a particular Global Note has been redeemed, repurchased or canceled in whole and not in part, each such Global Note will be returned to or retained and canceled 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 or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note or for Definitive Notes, the principal
amount of Notes represented by such Global Note will be reduced accordingly and an endorsement will be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and if the beneficial
interest is being exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note will be increased accordingly and an endorsement will be made on such
Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such increase. 
  
 (i) General Provisions Relating to Transfers and Exchanges. 
  
 (i) To permit registrations of transfers and exchanges, the Company will execute and the Trustee will
authenticate Global Notes and Definitive Notes upon receipt of an Authentication Order in accordance with Section 2.02 or at the Registrar’s request. 
  
 (ii) No service charge will be made to a Holder of a Global Note or to a Holder of a Definitive Note for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer taxes or similar governmental charge payable upon exchange or
transfer pursuant to Sections 2.10, 3.06, 3.09, 4.10, 4.15 and 9.05 hereof). 
  
 (iii) The Registrar will not be required to register the transfer of or exchange any Note selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part. 
  
 (iv) All Global Notes and Definitive Notes issued upon any
registration of transfer or exchange of Global Notes or Definitive Notes will be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Global Notes or Definitive Notes
surrendered upon such registration of transfer or exchange. 
  
 (v) The Company will not be required (A) to issue, to register the transfer of or to exchange any Notes during a period beginning at the opening of business 15 days before the day of any selection of Notes for
redemption under Section 3.02 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. 
  

 38 

 (vi) Prior to due presentment for the registration of a transfer of any Note, the
Trustee, any Agent and the Company 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
none of the Trustee, any Agent or the Company shall be affected by notice to the contrary. 
  
 (vii) The Trustee will authenticate Global Notes and Definitive Notes in accordance with the provisions of Section 2.02 hereof.

  
 (viii) All certifications, certificates and
Opinions of Counsel required to be submitted to the Registrar pursuant to this Section 2.06 to effect a registration of transfer or exchange may be submitted by facsimile. 
  
 Section 2.07. Replacement Notes. 
  
 If any mutilated Note is surrendered to the Trustee or the Company and the Trustee receives evidence to its satisfaction of the destruction, loss or theft
of any Note, the Company will issue and the Trustee, upon receipt of an Authentication Order, will authenticate a replacement Note if the Trustee’s requirements are met. If required by the Trustee or the Company, an indemnity bond must be
supplied by the Holder that is sufficient in the judgment of the Trustee and the Company to protect the Company, the Trustee, any Agent and any authenticating agent from any loss that any of them may suffer if a Note is replaced. The Company or, if
applicable, the Trustee may charge the Holder of any lost or mutilated Note for its expenses in replacing a Note. In the event any such Note shall have matured, instead of issuing a replacement Note as provided above, the Trustee may pay the same
upon receipt by the Company and the Trustee of indemnity satisfactory to each of them. 
  
 Every replacement Note is an additional obligation of the Company and will be entitled to all of the benefits of this Indenture equally and proportionately with all other Notes duly issued hereunder. 
  
 Section 2.08. Outstanding Notes. 
  
 The Notes outstanding at any time are all the Notes authenticated by the
Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in the interest in a Global Note effected by the Trustee in accordance with the provisions hereof, and those described in this Section as not
outstanding. Except as set forth in Section 2.09 hereof, a Note does not cease to be outstanding because the Company or an Affiliate of the Company holds the Note; however, Notes held by the Company or a Subsidiary of the Company shall not be deemed
to be outstanding for purposes of Section 3.07(a)(i) hereof. 
  
 If a Note is replaced pursuant to Section 2.07 hereof, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Note is held by a protected purchaser. 
  
 If the principal amount of any Note is considered paid under Section 4.01
hereof, it ceases to be outstanding and interest on it ceases to accrue. 
  
 If the Paying Agent (other than the Company, 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 will be deemed to be no longer outstanding and will cease to accrue interest. 
  

 39 

 Section 2.09. Treasury Notes. 
  
 In determining whether the Holders of the required principal amount of Notes have concurred in any direction, waiver or
consent, Notes owned by the Company, or by any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company, will be considered as though not outstanding, except that for the purposes of
determining whether the Trustee will be protected in relying on any such direction, waiver or consent, only Notes that the Trustee knows are so owned will be so disregarded. 
  
 Section 2.10. Temporary Notes. 
  
 Until certificates representing Notes are ready for delivery, the Company may prepare and the Trustee, upon receipt of an Authentication Order, will
authenticate temporary Notes. Temporary Notes will be substantially in the form of certificated Notes but may have variations that the Company considers appropriate for temporary Notes and as will be reasonably acceptable to the Trustee. Without
unreasonable delay, the Company will prepare and the Trustee will authenticate definitive Notes in exchange for temporary Notes. 
  
 Holders of temporary Notes will be entitled to all of the benefits of this Indenture. 
  
 Section 2.11. Cancellation. 
  
 The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar and Paying Agent will forward to the Trustee any Notes
surrendered to them for registration of transfer, exchange or payment. The Trustee and no one else will cancel all Notes surrendered for registration of transfer, exchange, payment, replacement or cancellation and will destroy canceled Notes
(subject to the record retention requirement of the Exchange Act). Certification of the destruction of all canceled Notes will be delivered to the Company. The Company may not issue new Notes to replace Notes that it has paid or that have been
delivered to the Trustee for cancellation. 
  
 Section 2.12. Defaulted
Interest. 
  
 If the Company defaults in a payment of
interest on the Notes, the Company will 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, in each case at the
rate provided in the Notes and in Section 4.01 hereof. The Company will notify the Trustee in writing of the amount of defaulted interest proposed to be paid on each Note and the date of the proposed payment. The Company will fix or cause to be
fixed each such special record date and payment date, provided that no such special record date will be less than 10 days prior to the related payment date for such defaulted interest. At least 15 days before the special record date, the
Company (or, upon the written request of the Company, the Trustee in the name and at the expense of the Company) will 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. 
  
 ARTICLE 3. 
 REDEMPTION AND PREPAYMENT 
  
 Section 3.01. Notices to Trustee. 
  
 If the Company elects to redeem Notes pursuant to the optional redemption provisions of Section 3.07 hereof, it will furnish to the Trustee, at least 35
days, but not more than 60 days before a redemption 
  

 40 

 
date, an Officers’ Certificate setting forth (i) the clause 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. 
  
 Section 3.02. Selection of Notes to Be Redeemed or Purchased. 
  
 If less than all of the Notes are to be redeemed or purchased in an offer to purchase at any time, the Trustee will select Notes for redemption or repurchase as follows: 
  
 (a) if the Notes are listed on any national securities exchange, in
compliance with the requirements of the principal national securities exchange on which the Notes are listed; or 
  
 (b) if the Notes are not listed on any national securities exchange, on a pro rata basis, by lot or by such method as the Trustee deems fair and
appropriate. 
  
 In the event of partial redemption or purchase by lot, the
particular Notes to be redeemed or purchased will be selected, unless otherwise provided herein, not less than 30 nor more than 60 days prior to the redemption or purchase date by the Trustee from the outstanding Notes not previously called for
redemption or purchase. 
  
 The Trustee will promptly notify the
Company in writing of the Notes selected for redemption or purchase and, in the case of any Note selected for partial redemption or purchase, the principal amount thereof to be redeemed or repurchased. Notes and portions of Notes selected will be in
amounts of $1,000 or whole multiples of $1,000; except that if all of the Notes of a Holder are to be redeemed, the entire outstanding amount of Notes held by such Holder, even if not a multiple of $1,000, shall be redeemed or purchased. Except as
provided in the preceding sentence, provisions of this Indenture that apply to Notes called for redemption or purchase also apply to portions of Notes called for redemption or purchase. 
  
 Section 3.03. Notice of Redemption. 
  
 Subject to the provisions of Section 3.09 hereof, at least 30 days but not more than 60 days before a redemption date, the Company will mail or cause to
be mailed, by first class mail, a notice of redemption to each Holder whose Notes are to be redeemed at its registered address, except that redemption notices may be mailed more than 60 days prior to a redemption date if the notice is issued in
connection with a defeasance of the Notes or a satisfaction and discharge of this Indenture pursuant to Article 8 of this Indenture. 
  
 The notice will identify the Notes to be redeemed and will state: 
  
 (a) the redemption date; 
  
 (b) the redemption price; 
  
 (c) if any Note is being redeemed in part, the portion of the principal amount of such Note 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 will be issued upon cancellation of the original Note; 
  
 (d) the name and address of the Paying Agent; 
  
 (e) that Notes called for redemption must be surrendered to the Paying Agent to collect the redemption price; 
  

 41 

 (f) that, unless the Company defaults in making such redemption payment, interest on Notes called for
redemption ceases to accrue on and after the redemption date; 
  
 (g) the paragraph of the Notes and/or Section of this Indenture pursuant to which the Notes called for redemption are being redeemed; and 
  
 (h) 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 Company’s request, the Trustee will give the
notice of redemption in the Company’s name and at its expense; provided, however, that the Company has delivered to the Trustee, at least 45 days prior to the redemption date, an Officers’ Certificate requesting that the Trustee
give such notice and setting forth the information to be stated in such notice as provided in the preceding paragraph. 
  
 Section 3.04. Effect of Notice of Redemption. 
  
 Once notice of redemption is mailed in accordance with Section 3.03 hereof, Notes called for redemption become irrevocably due and payable on the
redemption date at the redemption price. A notice of redemption may not be conditional. 
  
 Section 3.05. Deposit of Redemption or Purchase Price. 
  
 One Business Day prior to the redemption or purchase date, the Company will deposit with the Trustee or with the Paying Agent money sufficient to pay the redemption or purchase price of and accrued interest and Liquidated Damages, if any,
on all Notes to be redeemed or purchased on that date. The Trustee or the Paying Agent will promptly return to the Company any money deposited with the Trustee or the Paying Agent by the Company in excess of the amounts necessary to pay the
redemption or purchase price of, and accrued interest and Liquidated Damages, if any, on, all Notes to be redeemed or purchased. 
  
 If the Company complies with the provisions of the preceding paragraph, on and after the redemption or purchase date, interest will cease to accrue on the
Notes or the portions of Notes called for redemption or purchase. 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 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 or purchase is not so paid upon surrender for redemption because of the failure of the Company 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 4.01 hereof. 
  
 Section 3.06. Notes Redeemed or Purchased in
Part. 
  
 Upon surrender of a Note that is redeemed or
purchased in part, the Company will issue and, upon receipt of an Authentication Order, the Trustee will authenticate for the Holder at the expense of the Company a new Note equal in principal amount to the unredeemed or unpurchased portion of the
Note surrendered. 
  
 Section 3.07. Optional Redemption. 
  
 (a) At any time prior to October 15, 2006, the Company may on any one or
more occasions redeem up to 40% of the aggregate principal amount at maturity of Notes issued under this Indenture at a 

  

 42 

 
redemption price of 111% of the Accreted Value thereof at the redemption date and Liquidated Damages thereon, if any, to the redemption date, or if a Cash
Interest Election has been made, 111% of the principal amount at maturity thereof, plus accrued and unpaid interest and Liquidated Damages thereon, if any, thereon to the applicable redemption date, with all or a portion of the net cash proceeds of
one or more Equity Offerings; provided that: 
  
 (i) at least 60% of the aggregate principal amount at maturity of Notes issued under this Indenture remains outstanding immediately after the occurrence of such redemption (excluding Notes held by the Company and its Affiliates); and

  
 (ii) the redemption occurs within 90 days of
the date of the closing of such Equity Offering. 
  
 (b) Except
pursuant to the preceding paragraph, the Notes will not be redeemable at the Company’s option prior to October 15, 2008. 
  
 (c) On or after October 15, 2008, the Company may redeem all or a part of the Notes upon not less than 30 nor more than 60 days’ notice, at the
redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid interest and Liquidated Damages, if any, on the Notes redeemed, to the applicable redemption date, if redeemed during the twelve-month period
beginning on October 15 of the years indicated below: 
  

	 Year

	  	Percentage

	 
	 2008
	  	105.500	%
	 2009
	  	103.667	%
	 2010
	  	101.833	%
	 2011 and thereafter
	  	100.000	%

  
 (d) Any redemption
pursuant to this Section 3.07 shall be made pursuant to the provisions of Section 3.01 through 3.06 hereof. 
  
 Section 3.08. Mandatory Redemption. 
  
 The Company is not required to make mandatory redemption payments with respect to the Notes. 
  
 Section 3.09. Offer to Purchase by Application of Excess Proceeds. 
  
 In the event that, pursuant to Section 4.10 hereof, the Company is required to commence an offer to all Holders to purchase Notes (an “Asset Sale
Offer”), it will follow the procedures specified below. 
  
 The Asset Sale Offer shall be made to all Holders 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 the extent that any Indebtedness of any Restricted Subsidiary of the Company requires that Restricted Subsidiary to make an offer similar to an Asset Sale Offer, the Company and such Restricted Subsidiary may
make simultaneous offers, with the offer to the Holders being limited to proceeds not used to repurchase the Indebtedness of such Restricted Subsidiary. The Asset Sale Offer will remain open for a period of at least 20 Business Days following its
commencement and not more than 30 Business Days, except to the extent that a longer period is required by applicable law (the “Offer Period”). No later than five Business Days after the termination of the Offer Period (the
“Purchase Date”), the Company will apply all Excess Proceeds (the “Offer Amount”) to 

  

 43 

 
the purchase of Notes and such other pari passu indebtedness (on a pro rata basis, if applicable) or, if less than the Offer Amount has been tendered,
all Notes and other Indebtedness tendered in response to the Asset Sale Offer. Payment for any Notes so purchased will be made in the same manner as interest payments are made. 
  
 If the Purchase Date is on or after an interest record date and on or before the related interest payment date, any accrued
and unpaid interest, and Liquidated Damages, if any, will be paid to the Person in whose name a Note is registered at the close of business on such record date, and no additional interest will be payable to Holders who tender Notes pursuant to the
Asset Sale Offer. 
  
 Upon the commencement of an Asset Sale
Offer, the Company will send, by first class mail, a notice to the Trustee and each of the Holders, with a copy to the Trustee. The notice will contain all instructions and materials necessary to enable such Holders to tender Notes pursuant to the
Asset Sale Offer. The notice, which will govern the terms of the Asset Sale Offer, will state: 
  
 (a) that the Asset Sale Offer is being made pursuant to this Section 3.09 and Section 4.10 hereof and the length of time the Asset Sale Offer will remain
open; 
  
 (b) the Offer Amount, the purchase price and the
Purchase Date; 
  
 (c) that any Note not tendered or accepted for
payment will continue to accrue interest; 
  
 (d) that, unless the
Company defaults in making such payment, any Note accepted for payment pursuant to the Asset Sale Offer will cease to accrue interest after the Purchase Date; 
  

(e) that Holders electing to have a Note purchased pursuant to an Asset Sale Offer may elect to have Notes purchased in integral multiples of $1,000
only; 
  
 (f) that Holders electing to have a Note purchased
pursuant to any Asset Sale Offer will be required to surrender the Note, with the form entitled “Option of Holder to Elect Purchase” on the reverse of the Note completed, or transfer by book-entry transfer, to the Company, a depositary, if
appointed by the Company, or a Paying Agent at the address specified in the notice at least three days before the Purchase Date; 
  
 (g) that Holders will be entitled to withdraw their election if the Company, the depositary or the Paying Agent, as the case may be, receives, not later
than the expiration of the Offer Period, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Note the Holder delivered for purchase and a statement that such Holder is withdrawing his
election to have such Note purchased; 
  
 (h) that, if the
aggregate principal amount of Notes and other pari passu Indebtedness, as the case may be, surrendered by Holders or holders of such pari passu Indebtedness exceeds the Offer Amount, the Company will select the Notes and other pari
passu Indebtedness to be purchased on a pro rata basis based on the principal amount of Notes and such other pari passu Indebtedness surrendered (with such adjustments as may be deemed appropriate by the Company so that only Notes
in denominations of $1,000, or integral multiples thereof, will be purchased); and 
  
 (i) that Holders whose Notes were purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered (or transferred by book-entry transfer). 
  

 44 

 On or before the Purchase Date, the Company will, to the extent lawful, accept for payment, on a pro
rata basis to the extent necessary, the Offer Amount of Notes and any pari passu Indebtedness or portions thereof tendered pursuant to the Asset Sale Offer, or if less than the Offer Amount has been tendered, all Notes and other pari
passu Indebtedness tendered, and will deliver to the Trustee an Officers’ Certificate stating that such Notes and pari passu Indebtedness or portions thereof were accepted for payment by the Company in accordance with the terms of
this Section 3.09. The Company, the Depositary or the Paying Agent, as the case may be, will promptly (but in any case not later than five 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 Company for purchase, and the Company will promptly issue a new Note, and the Trustee, upon written request from the Company will authenticate and mail or deliver such new Note to such Holder,
in a principal amount equal to any unpurchased portion of the Note surrendered. Any Note not so accepted shall be promptly mailed or delivered by the Company to the Holder thereof. The Company will publicly announce the results of the Asset Sale
Offer on the Purchase Date. 
  
 Other than as specifically
provided in this Section 3.09, any purchase pursuant to this Section 3.09 shall be made pursuant to the provisions of Sections 3.01 through 3.06 hereof. 
  
 ARTICLE 4. 
 COVENANTS 
  
 Section 4.01. Payment of Notes. 
  
 The Company will pay or cause to be paid the principal of, premium, if any,
and interest and Liquidated Damages, if any, on the Notes on the dates and in the manner provided in the Notes. Principal, premium, if any, and interest and Liquidated Damages, if any, will be considered paid on the date due if the Paying Agent, if
other than the Company or a Subsidiary thereof, holds as of 12:00 p.m. Eastern Time on the due date money deposited by the Company in immediately available funds and designated for and sufficient to pay all principal, premium, if any, and interest
then due. The Company will pay all Liquidated Damages, if any, in the same manner on the dates and in the amounts set forth in the Registration Rights Agreement. 
  
 The Company will 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 will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments
of interest and Liquidated Damages (without regard to any applicable grace period) at the same rate to the extent lawful. 
  
 Section 4.02. Maintenance of Office or Agency. 
  
 The Company will maintain in the Borough of Manhattan, the City of New York, an office or agency (which may be an office of the Trustee or an affiliate of
the Trustee, Registrar or co-registrar) where Notes may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Company in respect of the Notes and this Indenture may be served. The Company will 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 Company will fail to maintain any such required office or agency or will 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 Company 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 

  

 45 

 
such designations; provided, however, that no such designation or rescission will in any manner relieve the Company of its obligation to maintain an
office or agency in the Borough of Manhattan, the City of New York for such purposes. The Company will 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 Company hereby designates the Corporate Trust
Office of the Trustee as one such office or agency of the Company in accordance with Section 2.03. 
  
 Section 4.03. Reports 
  
 (a) Whether or not required by the SEC, so long as any Notes are outstanding, the Company will furnish to the Holders of Notes, within the time periods specified in the SEC’s rules and regulations: 
  
 (i) all quarterly and annual financial information that
would be required to be contained in a filing with the SEC on Forms 10-Q and 10-K if the Company were 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 Company’s certified independent accountants; and 
  
 (ii) all current reports that would be required to be filed with the SEC on Form 8-K if the Company were required to file such reports.

  
 If the Company has designated any of its Subsidiaries as
Unrestricted Subsidiaries, then the quarterly and annual financial information required by the preceding sentence 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 the Company and its Restricted Subsidiaries separate from the financial condition and results of
operations of the Unrestricted Subsidiaries of the Company. The Company will be deemed to have satisfied such requirements if Parent files and provides reports, documents and information of the types otherwise required by this paragraph and the
preceding paragraph within the applicable time periods and the Company is not required to file such reports, documents and information separately under the applicable rules and regulations of the SEC (after giving effect to any exemptive relief)
because of the filings by Parent. In addition, following consummation of the Exchange Offer, whether or not required by the SEC, the Company will file a copy of all of the information and reports referred to in clauses (i) and (ii) above with the
SEC for public availability within the time periods specified in the SEC’s rules and regulations (unless the SEC will not accept such a filing) and make such information available to securities analysts and prospective investors upon request.
The Company shall at all times comply with TIA § 314(a). 
  
 (b) For so long as any Notes remain outstanding, the Company will furnish to the Holders 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. 
  
 Section 4.04. Compliance Certificate. 

 
 (a) The Company shall deliver to the Trustee, within 90 days after the
end of each fiscal year, an Officers’ Certificate stating that a review of the activities of the Company and its Subsidiaries and, to the extent applicable, Parent, during the preceding fiscal year has been made under the supervision of the
signing Officers with a view to determining whether the Company 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 the Company has kept, observed, performed and 
  

 46 

 fulfilled each and every covenant contained in this Indenture and that there is no 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 will have occurred, describing all such Defaults or Events of Default of which he or she may have knowledge and what action the Company
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 or interest, if any, on the Notes is
prohibited or if such event has occurred, a description of the event and what action the Company is taking or proposes to take with respect thereto. 
  
 (b) So long as not contrary to the then current recommendations of the American Institute of Certified Public Accountants, the year-end financial
statements delivered pursuant to Section 4.03(a) above shall be accompanied by a written statement of the Company’s independent public accountants (who shall be a firm of established national reputation) that in making the examination necessary
for certification of such financial statements, nothing has come to their attention that would lead them to believe that the Company has violated any provisions of Article 4 or Article 5 hereof or, if any such violation has occurred, specifying the
nature and period of existence thereof, it being understood that such accountants shall not be liable directly or indirectly to any Person for any failure to obtain knowledge of any such violation. 
  
 (c) The Company 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 Officers’ Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto.

  
 Section 4.05. Taxes. 
  
 The Company will pay, and will cause each of its Restricted 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 or where the failure to effect such payment is not adverse in any material respect to the
Holders of the Notes. 
  
 Section 4.06. Stay, Extension and Usury Laws.

  
 The Company covenants (to the extent that it may lawfully
do so) that it will 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 Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law has been enacted. 
  
 Section 4.07. Restricted Payments. 
  
 (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly: 
  
 (i) declare or pay any dividend or make any other payment or
distribution on account of the Company’s or any of its Restricted Subsidiaries’ Equity Interests (including, without limitation, any payment in connection with any merger or consolidation involving the Company or any of its Restricted
Subsidiaries) or to the direct or indirect holders of the Company’s or any of its Restricted Subsidiaries’ Equity Interests in their capacity as such (other 

  

 47 

 
than dividends or distributions payable in Equity Interests (other than Disqualified Stock) of the Company and other than dividends or distributions payable
to the Company or a Restricted Subsidiary of the Company); 
  
 (ii) purchase, redeem or otherwise acquire or retire for value (including, without limitation, in connection with any merger or consolidation involving the Company) any Equity Interests of the Company or any direct or
indirect parent of the Company (other than any such Equity Interests owned by the Company or any of its Restricted Subsidiaries); 
  
 (iii) make any payment on or with respect to, or purchase, redeem, defease or otherwise acquire or retire for value any Indebtedness that
is subordinated to the Notes except a payment of interest or principal at the Stated Maturity thereof (except for payments into a trust within one year of the Stated Maturity of any such subordinated Indebtedness which payments effect a defeasance
or discharge of such Indebtedness); or 
  
 (iv)
make any Restricted Investment (all such payments and other actions set forth in these clauses (i) through (iv) above being collectively referred to as “Restricted Payments”), 
  
 unless, at the time of and after giving effect to such Restricted Payment:

  
 (a) no Default or Event of Default has
occurred and is continuing or would occur as a consequence of such Restricted Payment; and 
  
 (b) (a) in the event that the Company is making such Restricted Payment, the Company 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 clause (C) of the Leverage
Ratio test set forth in the first paragraph of Section 4.09, and (b) in the event that any Restricted Subsidiary of the Company is making such Restricted Payment, the Restricted Subsidiaries of the Company, taken as a whole, 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
clause (A) of the Leverage Ratio test set forth in the first paragraph of Section 4.09; and 
  
 (c) such Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Company and its Restricted
Subsidiaries after the date of this Indenture (excluding Restricted Payments permitted by clauses (2), (3), (4), (5), (7), (8), (9), (10), (13) and, to the extent that any payment made by Parent pursuant to the terms of the Management Incentive
Contracts reduces Consolidated Net Income of the Company, (11) of Section 4.07(b)), is less than the sum, without duplication, of: 
  
 (i) 50% of the aggregate Consolidated Net Income of the Company (it being understood that for purposes of calculating Consolidated Net Income pursuant to
this clause (c)(i) only, any of the Company’s noncash interest expense and amortization of original issue discount shall be excluded) of the Company (or, in the event such Consolidated Net Income shall be a deficit, minus 100% of such deficit)
accrued for the period beginning July 1, 2002 and ending on the last day of the Company’s most recent calendar month for which financial information is available to the Company ending prior to the date of such proposed Restricted Payment, taken
as one accounting period, plus 
  

 48 

 (ii) 100% of the aggregate net cash proceeds received by the Company since the date of this Indenture
from the issue or sale of Equity Interests of the Company (other than Disqualified Stock) or Disqualified Stock or debt securities of the Company that have been converted into such Equity Interests (other than (x) Equity Interests (or Disqualified
Stock or convertible debt securities) sold to a Restricted Subsidiary of the Company and (y) Disqualified Stock or convertible debt securities that have been converted into Disqualified Stock), plus 
  
 (iii) 100% of the net cash proceeds received by the Company as bona fide
equity capital contributions since the date of this Indenture, plus 
  
 (iv) the aggregate amount returned in cash to the Company or any of its Restricted Subsidiaries with respect to Restricted Investments made after the date of this Indenture whether through interest payments, principal
payments, dividends or other distributions, plus 
  
 (v)
the net cash proceeds received by the Company or any of its Restricted Subsidiaries from the disposition (other than to a Restricted Subsidiary), retirement or redemption of all or any portion of Restricted Investments made after the date of this
Indenture, plus 
  
 (vi) 100% of any cash dividends or
other cash distributions received by the Company or a Wholly Owned Restricted Subsidiary of the Company after the date of this Indenture from an Unrestricted Subsidiary of the Company to the extent that such dividends or distributions were not
otherwise included in Consolidated Net Income for such period and to the extent that such dividends or distributions do not represent payments in respect of taxes attributable to the activities of such Unrestricted Subsidiary. 
  
 (b) The provisions of Section 4.07(a) 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 Company, LBI Media or any Senior
Subordinated Note Guarantor or of any Equity Interests of the Company in exchange for, or out of the net cash proceeds of the substantially concurrent sale (other than to a Restricted Subsidiary of the Company) of, Equity Interests of the Company
(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 shall be excluded from clause 4.07(a)(iv)(c)(ii);

  
 (3) the defeasance, redemption, repurchase or other
acquisition of subordinated Indebtedness of the Company, LBI Media or any Senior Subordinated Note Guarantor with the net cash proceeds from an incurrence of Permitted Refinancing Indebtedness; 
  

 49 

 (4) the declaration and payment of any dividend by a Restricted Subsidiary of the Company to the holders
of such Restricted Subsidiary’s Equity Interests on a pro rata basis; 
  
 (5) the declaration and payment of dividends or distributions or the making of loans by LBI Media to the Company, Parent or shareholders of Parent or by the Company to Parent or shareholders of Parent in an amount not
to exceed the Permitted Shareholder Tax Distributions and the Permitted Holdings Tax Distributions, but only if any such declaration, dividend, distribution or loan is with respect to a period during which Parent was an S Corporation or a
substantially similar pass-through entity for federal income tax purposes and a QSSS Election was in effect for LBI Media (and, to the extent such period includes any days on or after the issuance of the Notes, a QSSS Election was in effect for the
Company for such days); 
  
 (6) the declaration and payment of
any dividends or distributions or the making of any loans by the Company or any of its Restricted Subsidiaries to Parent to be used for, and in an amount equal to, the amount of any dividends or distributions paid or loans made by Parent to, or the
repurchase of any Equity Interests of Parent from, the Principals or their Related Parties, provided that the aggregate amount of all such dividends, distributions and loans to Parent do not exceed $1.0 million in any calendar year;

  
 (7) the repurchase of Equity Interests of the Company or any
of its Restricted Subsidiaries deemed to occur upon the exercise of stock options upon surrender of Equity Interests to pay the exercise price of such options; 
  

(8) the declaration and payment of any dividends or distributions or the making of any loans to Parent in an amount not to exceed $1.0 million in any
calendar year to permit Parent to pay its corporate costs and expenses incurred in the ordinary course of business; 
  
 (9) the retirement of any shares of Disqualified Stock of the Company by conversion into, or by exchange for, shares of Disqualified Stock of the
Company, or out of the net cash proceeds of the substantially concurrent sale (other than to a Restricted Subsidiary of the Company) of other shares of Disqualified Stock of the Company; provided that the Disqualified Stock of the Company
that replaces the retired shares of Disqualified Stock of the Company shall not require the direct or indirect payment of the liquidation preference earlier in time than the final stated maturity of the retired shares of Disqualified Stock of the
Company; 
  
 (10) the cancellation or forgiveness of any loan
between any Affiliates of the Company existing on the date of this Indenture or any loan permitted by subparagraphs (5), (6) and (8) above and (11) below (it being understood that any forgiveness or cancellation of such loans made in connection with
any Permitted Holdings Tax Distribution or Permitted Shareholder Tax Distribution shall not reduce the amount of subsequent Permitted Holdings Tax Distributions or Permitted Shareholder Tax Distributions); 
  

 50 

 (11) the declaration and payment of any dividends or distributions or the making of any loans to Parent
for payments required to be made pursuant to the terms of the Management Incentive Contracts in an aggregate amount not to exceed $20.0 million; 
  
 (12) the making of a Restricted Investment by LBI Media or any of its Subsidiaries, but only to the extent in compliance with restrictions as set forth
in Section 4.07 (as in effect on October 10, 2003) of the indenture governing the Senior Subordinated Notes and to the extent in compliance with Section 4.14; provided, however, that the foregoing shall not permit any Restricted Investment in
or to any direct or indirect shareholder of the Company (the term shareholder shall include, but not be limited to, Parent and any other direct or indirect parent entity of the Company, any shareholder thereof and any trustee of any such
shareholder), or any Subsidiary of any such shareholder, other than the Company and its Restricted Subsidiaries; and 
  
 (13) the declaration and payment of any dividends or distributions or the making of any loans to Parent (including through any other parent corporation
of the Company) from the net cash proceeds of an offering of Capital Stock (other than Disqualified Capital Stock) of the Company for the sole purpose of redeeming, repurchasing, retiring, defeasing or otherwise acquiring any amounts owing under the
Existing Parent Notes. 
  
 The declaration and payment of any
dividends or distributions or the making of any loans to Parent permitted by (i) subparagraph (5) above shall not be permitted pursuant thereto for any period during which Parent was not an S Corporation or substantially similar pass-through entity
for federal income tax purposes and (ii) subparagraphs (6) and (11) above shall not be permitted pursuant thereto at any time following any underwritten primary public offering of common stock of LBI Media, the Company or Parent. 
  
 The amount of all Restricted Payments (other than cash) will be the fair
market value on the date of the Restricted Payment of the assets or securities proposed to be transferred or issued by the Company 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 Section 4.07 will be determined by the Board of Directors whose resolution with respect thereto shall 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 $10.0 million. 
  

Section 4.08. Dividend and Other Payment Restrictions Affecting Subsidiaries. 
  
 The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create or permit to
exist or become effective any consensual encumbrance or restriction on the ability of any such Restricted Subsidiary to: 
  
 (a) pay dividends or make any other distributions on its Capital Stock to the Company 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 Company or any of its Restricted Subsidiaries; 
  
 (b) make loans or advances to the Company or any of its Restricted Subsidiaries; or 
  

 51 

 (c) transfer any of its properties or assets to the Company or any of its Restricted Subsidiaries.

  
 However, the preceding restrictions will not apply to
encumbrances or restrictions existing under or by reason of: 
  
 (i) 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 of those agreements; provided that the amendments, modifications, restatements, renewals, increases, supplements, refundings, replacement or refinancings are not materially less favorable to the Holders than those
contained in those agreements on the date of this Indenture; 
  
 (ii) agreements governing Indebtedness of the Company’s Restricted Subsidiaries permitted to be incurred under this Indenture; 
  
 (iii) this Indenture and the Notes; 
  
 (iv) applicable law, rule, regulation or order; 
  
 (v) any instrument governing Indebtedness or Capital Stock
of a Person acquired by the Company or any of its 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; 
  
 (vi) customary non-assignment provisions in leases and other agreements entered into in the ordinary course of business; 
  
 (vii) 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 (c) of the preceding paragraph; 
  
 (viii) 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; 
  
 (ix) Liens securing Indebtedness or other obligations otherwise permitted to be incurred under the provisions of Section 4.12 that limit
the right of the debtor to dispose of the assets subject to such Liens; 
  
 (x) provisions with respect to the disposition or distribution of assets or property in joint venture agreements, asset sale agreements, stock sale agreements and other similar agreements entered into in the ordinary
course of business; 
  
 (xi) restrictions on cash
or other deposits or net worth imposed by customers under contracts or net worth provisions contained in leases and other agreements entered into in the ordinary course of business; 
  

 52 

 (xii) provisions contained in the Parent Securities Purchase Documents; provided,
however, that any amendment or modification of such provisions after the date of this Indenture shall be no more restrictive, taken as a whole, than those provisions contained in the Parent Securities Purchase Documents on the date of this
Indenture; and 
  
 (xiii) customary restrictions
with respect to a Restricted Subsidiary of the Company pursuant to an agreement entered into for the sale or disposition of all or substantially all of the Capital Stock or assets of such Restricted Subsidiary pending the closing of such sale or
disposition; provided, that such restrictions apply solely to the Capital Stock or assets of the Restricted Subsidiary of the Company that is being sold. 
  

Section 4.09. Incurrence of Indebtedness and Issuance of Preferred Stock. 
  
 The Company will not, and will not permit any of its 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 Company will not issue any
Disqualified Stock and will not permit any of its Restricted Subsidiaries to issue any shares of preferred stock; provided, however, that (A) any Restricted Subsidiary of the Company may incur Indebtedness (including Acquired Debt) or issue
preferred stock if the Leverage Ratio of the Restricted Subsidiaries of the Company, taken as a whole at the time of such incurrence or such issuance, as the case may be, would have been no greater than 7.0 to 1, (B) the Company may incur
indebtedness that is pari passu in right of payment with the Notes (including Acquired Debt) or issue Disqualified Stock if the Leverage Ratio of the Company at the time of such incurrence or such issuance, as the case may be, would have been
no greater than 7.5 to 1 (it being understood that neither this clause (B) nor clause (C) below shall prohibit or restrict the Company from guaranteeing any Indebtedness of any Restricted Subsidiary of the Company that was otherwise permitted to be
incurred by the terms of this Indenture) and (C) the Company may incur Indebtedness that is junior in right of payment with the Notes (including Acquired Debt) or issue Disqualified Stock if the Leverage Ratio of the Company at the time of such
incurrence or such issuance, as the case may be, would have been no greater than 8.0 to 1, in the case of (A), (B) or (C) above, after giving pro forma effect to such incurrence or issuance as of such date and to the use of proceeds therefrom, as if
the same had occurred at the beginning of the most recently ended four fiscal quarter period of the Company for which internal financial statements are available. 
  
 The provisions of the first paragraph of this Section 4.09 will not prohibit the incurrence of any of the following items of
Indebtedness (collectively, “Permitted Debt”): 
  
 (i) the incurrence by the Company or any Restricted Subsidiary of the Company of Indebtedness and letters of credit under Credit Facilities in an aggregate principal amount at any one time outstanding under this
clause (i) (with letters of credit being deemed to have a principal amount equal to the maximum potential liability of the Company and its Subsidiaries thereunder) not to exceed $150.0 million less the aggregate amount of all Net Proceeds of
Asset Sales and Relocations applied by the Company or any of its Restricted Subsidiaries after the date of this Indenture to repay any term Indebtedness under a Credit Facility or to repay any revolving credit Indebtedness under a Credit Facility
and effect a corresponding commitment reduction thereunder, in each case for both such term Indebtedness and such revolving credit Indebtedness pursuant to Section 4.10; 
  
 (ii) the incurrence by the Company and its Restricted Subsidiaries of the Existing Indebtedness; 

 

 53 

 (iii) the incurrence by the Company of Indebtedness represented by the Notes and to be
issued on the date of this Indenture and the Exchange Notes to be issued pursuant to the Registration Rights Agreement; 
  
 (iv) the incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness 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 used in the business of the Company
or such Restricted Subsidiary (whether through the direct purchase of assets or through the acquisition of at least a majority of the Voting Stock of any Person owning such assets), in an aggregate principal amount, including all Permitted
Refinancing Indebtedness incurred to refund, refinance or replace any Indebtedness incurred pursuant to this clause (iv), not to exceed $10.0 million at any time outstanding; 
  
 (v) the incurrence by the Company or any of its Restricted Subsidiaries of Permitted Refinancing
Indebtedness in exchange for, or the net proceeds of which are used to refund, refinance or replace, Indebtedness (other than intercompany Indebtedness) that was permitted by this Indenture to be incurred under the first paragraph of this Section
4.09 or any of clauses (ii), (iii), (iv), (v), (viii), (ix) or (xi) of this paragraph; 
  
 (vi) the incurrence by the Company or any of its Restricted Subsidiaries of intercompany Indebtedness between or among the Company and any
of its Restricted Subsidiaries; provided, however, that (a) if the Company is the obligor on such Indebtedness, such Indebtedness must be (i) unsecured and (ii) if the obligee is none of the Company, LBI Media or a Senior Subordinated Note
Guarantor, expressly subordinated to the prior payment in full in cash of all obligations with respect to the Notes; and (b) any subsequent issuance or transfer of Equity Interests that results in any such Indebtedness being held by a Person other
than the Company or a Subsidiary of the Company and any sale or other transfer of any such Indebtedness to a Person that is not either the Company or a Restricted Subsidiary of the Company will be deemed, in each case, to constitute an incurrence of
such Indebtedness by the Company or such Restricted Subsidiary, as the case may be, that was not permitted by this clause (vi); 
  
 (vii) the incurrence by the Company or any of its Restricted Subsidiaries of Hedging Obligations that are incurred for the purpose of
hedging (x) interest rate risk with respect to Indebtedness of the Company or any Restricted Subsidiary of the Company permitted to be incurred under this Indenture and which shall have a notional amount no greater than the payments due with respect
to the Indebtedness being hedged thereby, or (y) currency exchange rate risk in connection with then existing financial obligations or the acquisition of goods or services and not for purposes of speculation; 
  
 (viii) guarantees provided by the Company or any Restricted
Subsidiary of the Company of Indebtedness of the Company or a Restricted Subsidiary of the Company that was permitted to be incurred by another provision of this Section 4.09; 
  
 (ix) Indebtedness incurred by the Company or any of its Restricted Subsidiaries constituting reimbursement
obligations with respect to letters of credit issued in the ordinary course of business, including, without limitation, 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 

  

 54 

 
of such letters of credit or the incurrence of such Indebtedness, such obligations are reimbursed within 30 days following such drawing or incurrence;

  
 (x) Obligations in respect of performance and
surety bonds and completion guarantees provided by the Company or any of its Restricted Subsidiaries in the ordinary course of business; 
  
 (xi) Acquisition Debt of the Company or any Restricted Subsidiary of the Company if (w) such Acquisition Debt is incurred within 365 days
after the date on which the related definitive acquisition agreement was entered into by the Company or such Restricted Subsidiary, (x) the aggregate principal amount of such Acquisition Debt is no greater than the aggregate principal amount of
Acquisition Debt set forth in a notice from the Company to the Trustee (an “Incurrence Notice”) within 30 days after the date on which the related definitive acquisition agreement was entered into by the Company or such Restricted
Subsidiary, which notice shall be executed on the Company’s behalf by an executive officer of the Company in such capacity and shall describe in reasonable detail the acquisition that such Acquisition Debt will be incurred to finance, (y) after
giving pro forma effect to the acquisition described in such Incurrence Notice, the Company or such Restricted Subsidiary could have incurred such Acquisition Debt under this Indenture, including compliance with the first paragraph of this Section
4.09, as of the date upon which the Company delivers such Incurrence Notice to the Trustee and (z) such Acquisition Debt is utilized solely to finance the acquisition described in such Incurrence Notice and any other pending acquisitions previously
described in one or more Incurrence Notices and which satisfy the foregoing provisions (including to repay or refinance indebtedness or other obligations incurred in connection with such acquisition and to pay related fees and expenses);
provided, however, that any Incurrence Notice given hereunder may be withdrawn or the amount of Acquisition Debt referred to therein may be reduced at any time prior to the incurrence of such Acquisition Debt; 
  
 (xii) the incurrence by the Company’s Unrestricted
Subsidiaries of Non-Recourse Debt, provided, however, that if any such Indebtedness ceases to be Non-Recourse Debt of an Unrestricted Subsidiary of the Company, such event will be deemed to constitute an incurrence of Indebtedness by a
Restricted Subsidiary of the Company that was not permitted by this clause (xii); 
  
 (xiii) the incurrence by the Company or any Restricted Subsidiary of the Company of Indebtedness arising from the honoring by a bank or
other financial institution of a check, draft or similar instrument inadvertently drawn against insufficient funds in the ordinary course of business and such Indebtedness is extinguished within five business days after notice thereof; 

 
 (xiv) Indebtedness in respect of the Shop At Home
Relocation Profits to the extent required to be paid to the Shop At Home Sellers pursuant to the Shop At Home Acquisition Documents; and 
  
 (xv) the incurrence by the Company or any of its Restricted Subsidiaries of additional Indebtedness in an aggregate principal amount (or
accreted value, as applicable) at any time outstanding, including all Permitted Refinancing Indebtedness incurred to refund, refinance or replace any Indebtedness incurred pursuant to this clause (xv), not to exceed $10.0 million. 
  
 For purposes of determining compliance with this Section 4.09, 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 (i) through (xv) above, or is entitled to be incurred pursuant to the first paragraph of this 

  

 55 

 
Section 4.09, the Company will be permitted to classify such item of Indebtedness on the date of its incurrence, or later reclassify all or a portion of such
item of Indebtedness, in any manner that complies with this Section 4.09. Indebtedness under the Credit Agreement, including Guarantees of such Indebtedness, on the date on which Notes are first issued and authenticated under this Indenture will be
deemed to have been incurred on such date in reliance on the exception provided by clause (i) of the definition of Permitted Debt. 
  
 Accrual of interest, the accretion of accreted value and the payment of interest in the form of additional Indebtedness will not be deemed to be an
incurrence of Indebtedness for purposes of this Section 4.09. 
  
 Section 4.10.
Asset Sales 
  
 (a) The Company will not, and will not permit
any of its Restricted Subsidiaries to, consummate an Asset Sale unless: 
  
 (i) the Company (or its 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; 
  
 (ii) the fair market
value is determined by the Company’s Board of Directors and evidenced by a resolution of the Board of Directors set forth in an Officers’ Certificate delivered to the Trustee; and 
  
 (iii) at least 75% of the consideration received in the
Asset Sale by the Company or such Restricted Subsidiary is in the form of cash or Cash Equivalents except to the extent the Company or such Restricted Subsidiary is undertaking a Permitted Asset Swap. For purposes of this provision and subparagraph
(z) below, each of the following shall be deemed to be cash: 
  
 (A) any liabilities, as shown on the Company’s most recent consolidated balance sheet, of the Company or any Restricted Subsidiary of the Company (other than contingent liabilities and liabilities that are by
their terms subordinated to the Notes, the Senior Subordinated Notes, or any guarantee of the Senior Subordinated Notes by the Senior Subordinated Note Guarantors) that are assumed by the transferee of any such assets pursuant to a customary
novation agreement that releases the Company or such Restricted Subsidiary from further liability; and 
  
 (B) any securities, notes or other obligations received by the Company or any such Restricted Subsidiary from such transferee converted by
the Company or such Restricted Subsidiary within 90 days into cash or Cash Equivalents, to the extent of the cash or Cash Equivalents received in that conversion. 
  
 The 75% limitation referred to in clause (iii) above will not apply to any Asset Sale in which the cash or Cash Equivalents
portion of the consideration received therefrom, determined in accordance with the preceding provision, is equal to or greater than what the after tax proceeds would have been had such Asset Sale complied with the aforementioned 75% limitation.

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

 56 

 (x) the Company 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; 
  
 (y) the fair market value is determined by the Company’s Board of Directors and evidenced by a resolution of the Board of Directors
set forth in an Officers’ 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 and Cash Equivalents; 
  
 provided, however, that any cash or Cash Equivalents (other than any amount
deemed cash under clause (iii)(A) of the preceding paragraph) received by the Company 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 Company or such Restricted Subsidiary may apply those Net Proceeds at its option: 
  
 (i) to repay senior Indebtedness of the Company or any Indebtedness of any Restricted Subsidiary of the Company, and if such Indebtedness
repaid is revolving credit Indebtedness, to correspondingly reduce commitments with respect thereto; 
  
 (ii) to acquire all or substantially all of the assets of, or a majority of the Voting Stock of, a Permitted Business; 
  
 (iii) to make capital expenditures that are used or useful
in a Permitted Business; or 
  
 (iv) to acquire
other assets that are used or useful in a Permitted Business. 
  
 Pending the final application of any Net Proceeds, the Company or such Restricted Subsidiary 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 paragraphs will constitute “Excess Proceeds.” When the aggregate amount of Excess Proceeds exceeds $10.0 million, the Company 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 in accordance with Section
3.09 hereof to purchase the maximum principal amount of Notes and such other pari passu Indebtedness that may be purchased out of the Excess Proceeds. To the extent that any Indebtedness of any Restricted Subsidiary of the Company requires
that Restricted Subsidiary to make an offer similar to an Asset Sale Offer, the Company and such Restricted Subsidiary may make simultaneous offers, with the offer to the Holders being limited to proceeds not used to repurchase the Indebtedness of
such Restricted Subsidiary. The offer price in any Asset Sale Offer will be equal to 100% of the Accreted Value on the purchase date plus Liquidated Damages thereon, if any, to the purchase date, unless the purchase date is on or after the earlier
to occur of October 15, 2008 and the Cash Election Date, in which case such purchase price shall equal 100% of principal amount at maturity plus accrued and unpaid interest and Liquidated Damages thereon, if any, to the date of purchase, and will be
payable in cash. On or after October 15, 2008 or, if earlier, the Cash Interest Election Date, if the date of purchase is on or after an 

  

 57 

 
interest record date and on or before the related interest payment date, accrued and unpaid interest, if any, will be paid to the Holder in whose name a Note
is registered at the close of business on such record date, and no additional interest will be payable to holders who tender pursuant to the Asset Sale Offer. If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Company may
use those Excess Proceeds for any purpose not otherwise prohibited by this Indenture. If the Accreted Value or aggregate principal amount at maturity of Notes, as the case may be, and other pari passu Indebtedness tendered into such Asset
Sale Offer exceeds the amount of Excess Proceeds, the Trustee shall 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 shall be
reset at zero. 
  
 (c) The Company 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 each repurchase of Notes pursuant to an Asset Sale Offer. To the
extent that the provisions of any securities laws or regulations conflict with the Asset Sale provisions of this Indenture, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its
obligations under the Asset Sale provisions of this Indenture by virtue of such conflict. 
  
 Section 4.11. Transactions with Affiliates. 
  
 The Company will not, and will not permit any of its 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: 
  
 (a) the Affiliate Transaction is on terms that are no less favorable to the
Company or the relevant Restricted Subsidiary of the Company than those that would have been obtained in a comparable transaction by the Company or such Restricted Subsidiary with an unrelated Person; and 
  
 (b) the Company delivers to the Trustee: 
  
 (i) with respect to any Affiliate Transaction or series of
related Affiliate Transactions involving aggregate consideration in excess of $1.0 million, a resolution of the Board of Directors set forth in an Officers’ Certificate certifying that such Affiliate Transaction complies with this Section 4.11
and that such Affiliate Transaction has been approved by a majority of the members of the Board of Directors, which approval, if the Board of Directors includes disinterested members at such time, shall include the approval of at least one
disinterested member; and 
  
 (ii) 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 Company of such Affiliate Transaction from a financial point of view issued by
an accounting, appraisal or investment banking firm of national standing; provided, that upon the election or appointment of one or more disinterested members to the Board of Directors, an opinion as to fairness required by this paragraph
(b)(ii) will only be required for Affiliate Transactions involving aggregate consideration in excess of $10.0 million. 
  
 The following items will not be deemed to be Affiliate Transactions and, therefore, will not be subject to the provisions of the prior paragraph:

  

 58 

 (a) any employment agreement or other compensation arrangement entered into by the Company or any of its
Restricted Subsidiaries in the ordinary course of business and the payment of compensation and the reimbursement of expenses pursuant thereto; 
  
 (b) transactions between or among the Company and/or any of its Restricted Subsidiaries; 
  
 (c) transactions with a Person that is an Affiliate of the Company solely because the Company owns an Equity Interest in, or
controls, such Person; 
  
 (d) payment of reasonable fees and
expenses to directors; 
  
 (e) indemnification of officers and
directors of the Company or any Restricted Subsidiary of the Company pursuant to reasonable and customary indemnification provisions; 
  
 (f) sales of Equity Interests (other than Disqualified Stock) to Affiliates of the Company; 
  
 (g) Restricted Payments that are permitted by the provisions of Section 4.07, and Permitted Investments; 
  
 (h) transactions under any contract or agreement of the Company or any
Restricted Subsidiary of the Company in effect on the date of this Indenture, in each case, as the same may be amended, modified or replaced from time to time so long as any such amendment, modification or replacement is no less favorable to the
Company and its Restricted Subsidiaries than the contract or agreement as in effect on the date of this Indenture; 
  
 (i) services provided to any Unrestricted Subsidiary of the Company in the ordinary course of business, which the Board of Directors has determined,
pursuant to a resolution thereof, are provided on terms at least as favorable to the Company and its Restricted Subsidiaries as those that would have been obtained in a comparable transaction with an unrelated Person; 
  
 (j) payments of commissions and fees to, and on-going business dealings with,
Spanish Media Rep Team, Inc. in the ordinary course of business; and 
  
 (k) any transactions permitted under Section 5.01. 
  
 Section 4.12.
Liens. 
  
 The Company will not, and will not permit any of
its Subsidiaries to, directly or indirectly, create, incur, assume or suffer to exist any Lien of any kind securing Indebtedness or trade payables on any asset now owned or hereafter acquired, except Permitted Liens. 
  
 Section 4.13. Corporate Existence. 
  
 Subject to Article 5 hereof, the Company shall do or cause to be done all
things necessary to preserve and keep in full force and effect: (i) its corporate existence, and the corporate, partnership or other existence of each of its Restricted Subsidiaries, in accordance with the respective organizational documents (as the
same may be amended from time to time) of the Company or any such Restricted Subsidiary; and (ii) the rights (charter and statutory), licenses and franchises of the Company and its Restricted Subsidiaries; provided, however, that the Company
shall not be required to preserve any such right, license or franchise, or the corporate, partnership or other existence of any of its Restricted Subsidiaries, if the Board of Directors shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company and its Subsidiaries, taken as a whole, and that the loss thereof is not adverse in any material respect to the Holders of the Notes. 
  

 59 

 Section 4.14. Business Activities 
  
 Until the consummation of a Public Equity Offering, the Company will not, and will not permit any Subsidiary to, engage in
any business other than Permitted Businesses, except to such extent as would not be material to the Company and its Subsidiaries taken as a whole. 
  
 Section 4.15. Offer to Repurchase Upon Change of Control. 
  
 (a) Upon the occurrence of a Change of Control, the Company will make an offer (a “Change of Control Offer”) to each Holder to repurchase
all or any part (equal to $1,000 or an integral multiple thereof) of each Holder’s Notes at a purchase price equal to 101% of the Accreted Value thereof on the date of purchase plus Liquidated Damages thereon, if any, to the date of purchase
(unless the date of purchase is on or after the earlier to occur of October 15, 2008 and the Cash Interest Election Date, in which case such Change of Control Payment will be equal to 101% of the aggregate principal amount at maturity of the Notes
repurchased plus accrued and unpaid interest and Liquidated Damages thereon, if any, to the date of purchase (the “Change of Control Payment”). Within 30 business days following any Change of Control, the Company will mail a notice
to each Holder describing the transaction or transactions that constitute the Change of Control and stating: 
  
 (i) that the Change of Control Offer is being made pursuant to this Section 4.15 and that all Notes tendered will be accepted for payment;

  
 (ii) the purchase price and the purchase
date, which shall be no earlier than 30 days and no later than 60 days from the date such notice is mailed (the “Change of Control Payment Date”); 
  
 (iii) that any Note not tendered will continue to accrue interest; 
  
 (iv) that, unless the Company defaults in the payment of the
Change of Control Payment, all Notes accepted for payment pursuant to the Change of Control Offer will cease to accrue interest after the Change of Control Payment Date; 
  
 (v) that Holders electing to have any Notes purchased pursuant to a Change of Control Offer will be required
to surrender the Notes, with the form entitled “Option of Holder to Elect Purchase” on the reverse of the Notes completed, to the Paying Agent at the address specified in the notice prior to the close of business on the third Business Day
preceding the Change of Control Payment Date; 
  
 (vi) that Holders will be entitled to withdraw their election if the Paying Agent receives, not later than the close of business on the second Business Day preceding the Change of Control Payment Date, a telegram, telex, facsimile
transmission or letter setting forth the name of the Holder, the principal amount of Notes delivered for purchase, and a statement that such Holder is withdrawing his election to have the Notes purchased; and 
  
 (vii) that Holders whose Notes are being purchased only in
part will be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered, which unpurchased portion must be equal to $1,000 in principal amount or an integral multiple thereof. 
  

 60 

 The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other
securities laws and regulations thereunder to the extent such laws and regulations are applicable in connection with the repurchase of Notes in connection with a Change of Control. To the extent that the provisions of any securities laws or
regulations conflict with the provisions of Sections 3.09 or 4.15 of this Indenture, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under Section 3.09 or this
Section 4.15 by virtue of such conflict. 
  
 (b) On the Change of
Control Payment Date, the Company will, to the extent lawful: 
  
 (i) accept for payment all Notes or portions thereof properly tendered pursuant to the Change of Control Offer; 
  
 (ii) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions thereof properly
tendered; and 
  
 (iii) deliver or cause to be
delivered to the Trustee the Notes properly accepted together with an Officers’ Certificate stating the aggregate principal amount at maturity of Notes or portions thereof being purchased by the Company. 
  
 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 at maturity to any unpurchased portion of the Notes
surrendered, if any; provided that each new Note will be in a principal amount at maturity of $1,000 or an integral multiple thereof. On or after October 15, 2008, or, if earlier, the Cash Interest Election Date, if the Change of Control
Payment Date is on or after an interest record date and on or before the related interest payment date, accrued and unpaid interest, if any, will be paid to the Holder in whose name a Note is registered at the close of business on such record date,
and no additional interest will be payable to Holders who tender pursuant to the Change of Control Offer. 
  
 (c) Prior to complying with any of the provisions of this Section 4.15, but in any event within 90 days following a Change of Control, the Company will
either repay all outstanding Indebtedness of its Restricted Subsidiaries or obtain the requisite consents, if any, under all the agreements governing outstanding Indebtedness of its Restricted Subsidiaries to permit the repurchase of the Notes
required by this Section 4.15. The Company will publicly announce the results of the Change of Control Offer on or as soon as practicable after the Change of Control Payment Date. 
  
 (d) Notwithstanding anything to the contrary in this Section 4.15, the Company will not be required to make a Change of
Control Offer upon a Change of Control if 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 Section 4.15 and Section 3.09 hereof and all other provisions
of this Indenture applicable to a Change of Control Offer made by the Company and purchases all Notes properly tendered and not withdrawn under the Change of Control Offer. 
  
 Section 4.16. Limitation on Issuances of Equity Interests in Wholly Owned Restricted Subsidiaries. 
  
 The Company will not, and will not permit any of its Subsidiaries to,
transfer, convey, sell, lease or otherwise dispose of any Equity Interests in any Wholly Owned Restricted Subsidiary of the Company to any Person (other than the Company or another Wholly Owned Restricted Subsidiary of the Company), unless:

  

 61 

 (i) as a result of such transfer, conveyance, sale, lease or other disposition or as a
result of such issuance described below, such Restricted Subsidiary no longer constitutes a Subsidiary; and 
  
 (ii) the cash Net Proceeds from such transfer, conveyance, sale, lease or other disposition are applied in accordance with Section 4.10
hereof. 
  
 In addition, the Company will not permit any Wholly
Owned Restricted Subsidiary of the Company to issue any of its Equity Interests (other than, if necessary, shares of its Capital Stock constituting directors’ qualifying shares) to any Person other than to the Company or a Wholly Owned
Restricted Subsidiary of the Company unless the terms of clauses (i) and (ii) above are satisfied. 
  
 Section 4.17. Payments for Consent. 
  
 The Company will not, and will not permit any of its 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 4.18. Designation of Restricted and Unrestricted Subsidiaries 
  
 The Board of Directors may designate any Restricted Subsidiary of the Company to be an Unrestricted Subsidiary of the Company if that designation would not cause a Default. If a Restricted Subsidiary of the Company is
designated as an Unrestricted Subsidiary of the Company, the aggregate fair market value of all outstanding Investments owned by the Company and its Restricted Subsidiaries in the Subsidiary properly designated will be deemed to be an Investment
made as of the time of the designation and will reduce the amount available for Restricted Payments under Section 4.07(a) or Permitted Investments, as determined by the Company. That designation will only be permitted if the 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 of the Company to be a Restricted Subsidiary of the Company if
the redesignation would not cause a Default. 
  
 ARTICLE 5.

 SUCCESSORS 
  
 Section 5.01. Merger, Consolidation, or Sale of Assets. 
  
 The Company will not, directly or indirectly: (1) consolidate or merge with or into another Person (whether or not the Company 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 Company and its Restricted Subsidiaries taken as a whole, in one or more related transactions, to another Person
unless: 
  
 (i) either: (a) the Company is the
surviving corporation; or (b) the Person formed by or surviving any such consolidation or merger (if other than the Company) 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; 
  

 62 

 (ii) the Person formed by or surviving any such consolidation or merger (if other than
the Company) or the Person to which such sale, assignment, transfer, conveyance or other disposition shall have been made assumes all the obligations of the Company under the Notes, this Indenture and the Registration Rights Agreement pursuant to
agreements reasonably satisfactory to the Trustee; 
  
 (iii) immediately after such transaction, no Default or Event of Default exists; and 
  
 (iv) the Company or the Person formed by or surviving any such consolidation or merger (if other than the Company), or to which such sale,
assignment, transfer, conveyance or other disposition has been made (a) would, 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 clause (C) of the Leverage Ratio test set forth in the first paragraph of Section 4.09 or (b) would have a lower Leverage Ratio immediately
after the transaction, after giving pro forma effect to the transaction as if the transaction had occurred at the beginning of the applicable four quarter period, than the Company’s Leverage Ratio immediately prior to the transaction.

  
 In addition, the Company 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 5.01 will not prohibit (i) any sale, assignment, transfer, conveyance or other disposition of assets between or among
the Company and any of its Restricted Subsidiaries, (ii) any Restricted Subsidiary of the Company from consolidating with, merging into or transferring all or part of its assets to the Company or any Restricted Subsidiary of the Company or (iii) the
Company from merging with an Affiliate incorporated solely for the purpose of reincorporating the Company in another jurisdiction to realize tax or other benefits. 
  
 Section 5.02. 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 Company in a transaction that is subject to, and that complies with Section 5.01 hereof, the successor corporation formed by such consolidation or into or with which the Company 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 “Company” shall refer instead to the successor corporation and not to the Company), and may exercise every right and power of the Company under this Indenture with the same effect as if such successor Person had
been named as the Company herein; provided, however, that the predecessor Company shall not be relieved from the obligation to pay the principal of and interest on the Notes except in the case of a sale, assignment, transfer, conveyance or
other disposition of all of the Company’s assets in a transaction that is subject to, and that complies with the provisions of, Section 5.01 hereof. 
  
 ARTICLE 6. 
 DEFAULTS AND REMEDIES 

 
 Section 6.01. Events of Default. 
  
 An “Event of Default” occurs if: 
  
 (a) the Company defaults in the payment when due of interest on, or
Liquidated Damages with respect to, the Notes, and such default continues for a period of 30 days; 
  

 63 

 (b) the Company defaults in the payment when due of principal of, or premium, if any, on the Notes, when
the same becomes due and payable at maturity, upon redemption (including in connection with an offer to purchase) or otherwise; 
  
 (c) the Company or any of its Restricted Subsidiaries fails to comply with the provisions of Section 4.15 or 5.01 hereof; 
  
 (d) the Company or any of its Restricted Subsidiaries fails to comply with
the provisions of Section 4.07, 4.09 or 4.10 hereof for 30 days after notice to the Company by the Trustee or the Holders of at least 25% in aggregate principal amount at maturity of the Notes then outstanding; 
  
 (e) the Company or any of its Subsidiaries fails to observe or perform any
other covenant, representation, warranty or other agreement in this Indenture or the Notes for 60 days after notice to the Company by the Trustee or the Holders of at least 25% in aggregate principal amount at maturity of the Notes then outstanding;

  
 (f) a default occurs under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the Company or any of the Restricted Subsidiaries (or the payment of which is guaranteed by the Company or any of the
Restricted Subsidiaries), whether such Indebtedness or Guarantee now exists, or is created after the date hereof, if that default: 
  
 (i) is caused by a failure to pay principal of such Indebtedness at the final stated maturity thereof (giving effect to any applicable
grace periods and any extensions thereof) (a “Payment Default”); or 
  
 (ii) results in the acceleration of such Indebtedness prior to its express maturity 
  
 and, in each case, the principal amount of any such Indebtedness, together
with the principal amount of any other such Indebtedness under which there has been and continues to be a Payment Default or the maturity of which has been and continues to be so accelerated, aggregates $7.5 million or more; 
  
 (g) the Company or any of its Restricted Subsidiaries fails to pay final
judgments aggregating in excess of $7.5 million (not covered by insurance), which judgments are not paid, vacated, discharged, bonded or stayed for a period of 60 days; 
  
 (h) the Company or any of its Significant Subsidiaries or any group of Subsidiaries that, taken as a whole, would constitute
a Significant Subsidiary, pursuant to or within the meaning of Bankruptcy Law: 
  
 (i) commences a voluntary case, 
  
 (ii) consents to the entry of an order for relief against it in an involuntary case, 
  
 (iii) consents to the appointment of a custodian of it or
for all or substantially all of its property, 
  
 (iv) makes a general assignment for the benefit of its creditors, 
  
 (v) generally is not paying its debts as they become due; or 
  

 64 

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

  
 (i) is for relief against the Company or any
of its Significant Subsidiaries or any group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary in an involuntary case; 
  
 (ii) appoints a custodian of the Company or any of its Significant Subsidiaries or any group of Subsidiaries that, taken as a whole, would
constitute a Significant Subsidiary or for all or substantially all of the property of the Company or any of its Significant Subsidiaries or any group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary; or 

 
 (iii) orders the liquidation of the Company or any of its
Significant Subsidiaries or any group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary; 
  
 and the order or decree remains unstayed and in effect for 60 consecutive days. 
  

Section 6.02. Acceleration. 
  
 If any Event of Default (other than an Event of Default specified in clause (h) or (i) of Section 6.01 hereof with respect to the Company, any Significant
Subsidiary or any group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary) occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount at maturity of the then outstanding Notes may declare
all the Notes to be due and payable immediately. Upon any such declaration, the Notes shall become due and payable immediately. Notwithstanding the foregoing, if an Event of Default specified in clause (h) or (i) of Section 6.01 hereof occurs with
respect to the Company, any Restricted Subsidiary that is a Significant Subsidiary or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary, all outstanding Notes shall be due and payable immediately
without further action or notice. The Holders of a majority in aggregate principal amount at maturity of the then outstanding Notes by written notice to the Trustee may on behalf of all of the Holders rescind an acceleration and its consequences if
the rescission would not conflict with any judgment or decree and if all existing Events of Default (except nonpayment of principal, interest or premium that has become due solely because of the acceleration) have been cured or waived. 

 
 In the event of a declaration of acceleration of the Notes because an
Event of Default has occurred and is continuing as a result of the acceleration of any Indebtedness described in clause (f) of Section 6.01, the declaration of acceleration of the Notes shall be automatically annulled if the holders of any
Indebtedness described in clause (f) of Section 6.01 have rescinded the declaration of acceleration in respect of the Indebtedness within 30 days of the date of the declaration and if: (i) the annulment of the acceleration of Notes would not
conflict with any judgment or decree of a court of competent jurisdiction; and (ii) 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 occurs on or after
October 15, 2008 by reason of any willful action (or inaction) taken (or not taken) by or on behalf of the Company with the intention of avoiding payment of the premium that the Company would have had to pay if the Company then had elected to redeem
the Notes pursuant to Section 3.07 hereof, then, upon acceleration of the Notes, an equivalent premium shall also become and be immediately due and payable, to the extent permitted by law, anything in this Indenture or in the Notes to the contrary
notwithstanding. If an Event of Default occurs prior to October 15, 2008 by reason of any willful action (or inaction) taken (or not taken) by or on behalf of the Company with the intention of avoiding the prohibition on redemption of the Notes
prior to such date, 

  

 65 

 
then, upon acceleration of the Notes, an additional premium shall also become and be immediately due and payable in an amount, for each of the years
beginning on October 15 of the years set forth below, as set forth below (expressed as a percentage of the principal amount of the Notes on the date of payment that would otherwise be due but for the provisions of this sentence): 
  

	 Year

	  	Percentage

	 
	 2003
	  	11.000	%
	 2004
	  	9.900	%
	 2005
	  	8.800	%
	 2006
	  	7.700	%
	 2007
	  	6.600	%

  
 Section 6.03. 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, and Liquidated Damages, if any, and interest 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 of a Note 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 6.04. Waiver of Past Defaults. 
  
 Holders of not less than a majority in aggregate principal amount at maturity of the then outstanding Notes by 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 hereunder, except a continuing Default or Event of Default in the payment of interest or Liquidated Damages on, or the principal of, the Notes (including in connection with an offer to purchase); provided,
however, that the Holders of a majority in aggregate principal amount at maturity of the then outstanding Notes by written notice to the Trustee may on behalf of all of the Holders rescind an acceleration and its consequences, including any
related payment default that resulted from such acceleration, if the rescission would not conflict with a judgment or decree and if all existing Events of Default (except nonpayment of principal, interest or premium that has become due solely
because of the acceleration) have been cured or waived. Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no such waiver
shall extend to any subsequent or other Default or impair any right consequent thereon. 
  
 Section 6.05. Control by Majority. 
  
 Holders of
a majority in principal amount at maturity 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 or power conferred on it. However,
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 of Notes or that may involve the Trustee in personal liability. 

 
 Section 6.06. Limitation on Suits. 
  
 A Holder of a Note may pursue a remedy with respect to this Indenture or the
Notes only if: 
  

 66 

 (a) such Holder gives to the Trustee written notice of a continuing Event of Default; 
  
 (b) the Holders of at least 25% in principal amount at maturity of the then
outstanding Notes make a written request to the Trustee to pursue the remedy; 
  
 (c) such Holder of a Note or Holders of Notes offer and, if requested, provide to the Trustee indemnity 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 indemnity; and 
  
 (e) during such 60-day period the Holders of a majority in principal amount of the then outstanding Notes do not give the Trustee a direction inconsistent with the request. 
  
 A Holder of a Note may not use this Indenture to prejudice the rights of
another Holder of a Note or to obtain a preference or priority over another Holder of a Note. 
  
 Section 6.07. Rights of Holders of Notes to Receive Payment. 
  
 Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to receive payment of principal, premium and Liquidated Damages,
if any, and interest on the Note, 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 6.08.
Collection Suit by Trustee. 
  
 If an Event of Default
specified in Section 6.01(a) or (b) occurs and is continuing, the Trustee is authorized to recover judgment in its own name and as trustee of an express trust against the Company for the whole amount of principal of, premium and Liquidated Damages,
if any, 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 6.09. 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 of the Notes allowed in any judicial proceedings relative to the Company (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 property payable or deliverable 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 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 7.07 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 7.07 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 

  

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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 pursuant to this Article 6, it shall pay
out the money in the following order: 
  
 First: to the Trustee, its agents and attorneys for amounts due under Section 7.07 hereof, including payment of all 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 and Liquidated Damages, if any, and interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Notes for principal, premium and
Liquidated Damages, if any and interest, respectively; and 
  
 Third: to the Company 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 of Notes 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, 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 of a Note pursuant to Section 6.07 hereof, or a suit by Holders of more than 10% in principal amount at maturity of the then outstanding Notes. 
  
 ARTICLE 7. 
 TRUSTEE 
  
 Section 7.01. Duties of Trustee. 
  
 (a) If an Event of Default has occurred and is continuing, the Trustee will
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 such person’s own affairs.

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

  
 (i) the duties of the Trustee will be
determined solely by the express provisions of this Indenture and the Trustee need perform only those duties that are specifically set forth in this Indenture and no others, and no implied covenants or obligations shall be read into this Indenture
against the Trustee; and 
  

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 (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. However, the Trustee will examine the certificates and
opinions 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; 
  
 (ii) the Trustee will
not be liable for any error of judgment made in good faith by a Trust Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts; and 
  
 (iii) the Trustee will 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 6.05 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. 
  
 (e) No provision of this Indenture will require the Trustee to expend or risk
its own funds or incur any liability. The Trustee will be under no obligation to exercise any of its rights and powers under this Indenture at the request of any Holders, unless such Holder has offered to the Trustee security and indemnity
satisfactory to it against any loss, liability or expense. 
  
 (f)
The Trustee will not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

  
 Section 7.02. Rights of Trustee. 
  
 (a) The Trustee may conclusively rely upon any document 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 Officers’ Certificate or an Opinion of Counsel or both. The Trustee will not
be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel. The Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel will be full
and complete authorization and protection from liability in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon. 
  
 (c) The Trustee may act through its attorneys and agents and will not be responsible for the misconduct or negligence of any
agent appointed with due care. 
  
 (d) The Trustee will 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. 
  

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 (e) Unless otherwise specifically provided in this Indenture, any demand, request, direction or notice
from the Company will be sufficient if signed by an Officer of the Company. 
  
 (f) The Trustee will 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 against the costs, expenses and liabilities that might be incurred by it in compliance with such request or direction. 
  

Section 7.03. 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 Company or any Affiliate of
the Company with the same rights it would have if it were not Trustee. However, in the event that the Trustee acquires any conflicting interest it must eliminate such conflict within 90 days, apply to the SEC 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 7.04. Trustee’s Disclaimer. 
  
 The Trustee will 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 Company’s use of the proceeds from the Notes or any money paid to the Company or upon the Company’s direction under any provision of this Indenture, it will not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it will not be responsible for any statement or recital herein or any statement in the Notes or any other document in connection with the sale of the Notes or pursuant to this Indenture other
than its certificate of authentication. 
  
 Section 7.05. Notice of Defaults.

  
 If a Default or Event of Default occurs and is continuing
and if it is known to the Trustee, the Trustee will mail to Holders of Notes 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, or
Liquidated Damages, if any, or interest on any Note, the Trustee may withhold the notice if and so long as a committee of its Trust Officers in good faith determines that withholding the notice is in the interests of the Holders of the Notes.

  
 The Trustee shall not be required to take notice or be deemed
to have notice of any Default hereunder, except for Defaults arising from failure to make any required payments to the Trustee or Defaults of which the Trustee has actual knowledge, unless the Trustee is specifically notified in writing of such
Default by the Company or the Holders of twenty-five percent (25%) in aggregate principal amount at maturity of the Notes then outstanding, and all such notices or other instruments required to be delivered to the Trustee must be delivered to the
Corporate Trust Office of the Trustee. 
  
 Section 7.06. Reports by Trustee to
Holders of the Notes. 
  
 (a) Within 60 days after each June
15 beginning with the June 15 following the date of this Indenture, and for so long as Notes remain outstanding, the Trustee will mail to the Holders of the Notes 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 will comply with TIA § 313(b)(2). The Trustee will also transmit by mail all
reports as required by TIA § 313(c). 
  

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 (b) A copy of each report at the time of its mailing to the Holders of Notes will be mailed by the
Trustee to the Company and filed by the Trustee with the SEC and each stock exchange on which the Notes are listed in accordance with TIA § 313(d). The Company will promptly notify the Trustee when the Notes are listed on any stock exchange.

  
 Section 7.07. Compensation and Indemnity. 
  
 (a) The Company will pay to the Trustee from time to time reasonable
compensation for its acceptance of this Indenture and services hereunder. The Trustee’s compensation will not be limited by any law on compensation of a trustee of an express trust. The Company will reimburse the Trustee promptly upon request
for all reasonable disbursements, advances and expenses incurred or made by it in addition to the compensation for its services. Such expenses will include the reasonable compensation, disbursements and expenses of the Trustee’s agents and
counsel. 
  
 (b) The Company will indemnify the Trustee against
any and all 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 Company
(including this Section 7.07) and defending itself against any claim (whether asserted by the Company 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, liability or expense may be attributable to its negligence or bad faith. The Trustee will notify the Company promptly of any claim for which it may seek indemnity. Such notice shall include a copy of any complaint that may
have been filed with respect to that claim or any demand letter or other notification the Trustee has received which the Trustee believes will give rise to a claim for which it may seek indemnification. Failure by the Trustee to so notify the
Company will not relieve the Company of its obligations hereunder, except to the extent that such failure prejudices the availability of defenses or counterclaims or otherwise adversely impacts the ability of the Company to conduct the defense of
such action. The Company will defend the claim and shall have the right to make all decisions with respect to conduct of any litigation or other proceedings with respect to that claim, including but not limited to determining the defenses or
counterclaims to pursue and the right to settle any such claim. The Trustee shall cooperate with the Company in the Company’s conduct of such defense. The Trustee may retain separate counsel to represent it in connection with that defense at
the Trustee’s own expense; provided that, if the Trustee can demonstrate that a conflict of interest exists between the Company and the Trustee which makes it impossible for the Company to defend the Trustee in such matter or the Company
refuses to conduct a defense, the Company shall pay the Trustee’s reasonable legal expenses in conducting that defense. The Company does not need pay for any settlement made without the Company’s consent, which consent will not be
unreasonably withheld. 
  
 (c) The obligations of the Company
under this Section 7.07 will survive the satisfaction and discharge of this Indenture. 
  
 (d) To secure the Company’s payment obligations in this Section 7.07, the Trustee will 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 and interest on particular Notes. Such Lien will survive the satisfaction and discharge of this Indenture. 
  
 (e) When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(h) or (i) 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. 
  

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

  
 Section 7.08. Replacement of Trustee. 
  
 A resignation or removal of the Trustee and appointment of a successor
Trustee will become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section 7.08. 
  
 The Trustee may resign in writing at any time and be discharged from the trust hereby created by so notifying the Company. The Holders of a majority in
principal amount of the then outstanding Notes may remove the Trustee by so notifying the Trustee and the Company in writing. The Company may remove the Trustee if: 
  
 (a) the Trustee fails to comply with Section 7.10 hereof; 
  
 (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 Company will 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 Company. 
  
 If a successor Trustee does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company, or the
Holders of at least 10% in principal amount at maturity 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, 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 will deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Thereupon, the resignation or removal
of the retiring Trustee will become effective, and the successor Trustee will have all the rights, powers and duties of the Trustee under this Indenture. The successor Trustee will mail a notice of its succession to Holders. The retiring Trustee
will promptly transfer all property held by it as Trustee to the successor Trustee; provided all sums owing to the Trustee hereunder have been paid and subject to the Lien provided for in Section 7.07 hereof. Notwithstanding replacement of
the Trustee pursuant to this Section 7.08, the Company’s obligations under Section 7.07 hereof will continue for the benefit of the retiring Trustee. 
  
 Section 7.09. Successor Trustee by Merger, etc. 
  
 If the Trustee 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 will be the successor Trustee. 
  

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 Section 7.10. Eligibility; Disqualification. 
  
 There will 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, that is subject to supervision or examination by federal or state authorities and that has a combined capital and surplus of at
least $100 million as set forth in its most recent published annual report of condition. 
  
 This Indenture will always have a Trustee who satisfies the requirements of TIA § 310(a)(1), (2) and (5). The Trustee is subject to TIA § 310(b). 
  
 Section 7.11. Preferential Collection of Claims Against Company. 
  
 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. 
  
 ARTICLE 8. 
 LEGAL DEFEASANCE AND COVENANT DEFEASANCE 
  
 Section 8.01. Option to Effect Legal Defeasance or Covenant Defeasance. 

 
 The Company may, at the option of its Board of Directors evidenced by a
resolution set forth in an Officers’ Certificate, at any time, elect to have either Section 8.02 or 8.03 hereof be applied to all outstanding Notes upon compliance with the conditions set forth below in this Article 8. 
  
 Section 8.02. Legal Defeasance and Discharge. 
  
 Upon the Company’s exercise under Section 8.01 hereof of the option
applicable to this Section 8.02, the Company will, subject to the satisfaction of the conditions set forth in Section 8.04 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 Company will be deemed to have paid and discharged the entire Indebtedness represented by the outstanding
Notes, which will thereafter be deemed to be “outstanding” only for the purposes of Section 8.05 hereof and the other Sections of this Indenture referred to in (a) and (b) below, and to have satisfied all their other obligations under such
Notes, and this Indenture (and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments acknowledging the same), except for the following provisions which will survive until otherwise terminated or discharged
hereunder: 
  
 (a) the rights of Holders of outstanding Notes to
receive payments in respect of the principal of, or interest or premium and Liquidated Damages, if any, on such Notes when such payments are due from the trust referred to below; 
  
 (b) the Company’s obligations with respect to the Notes concerning issuing temporary Notes, registration of Notes,
mutilated, destroyed, lost or stolen Notes and the maintenance of an office or agency for payment and money for security payments held in trust; 
  
 (c) the rights, powers, trusts, duties and immunities of the Trustee, and the Company’s obligations in connection therewith; and 
  

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 (d) this Article 8. 
  
 Section 8.03. Covenant Defeasance. 
  
 Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section 8.03, the Company will, subject to the satisfaction of
the conditions set forth in Section 8.04 hereof, be released from their obligations under the covenants contained in Sections 4.03, 4.04, 4.05, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16, 4.17 and 4.18 hereof and clause (iv) of
Section 5.01 hereof with respect to the outstanding Notes on and after the date the conditions set forth in Section 8.04 are satisfied (hereinafter, “Covenant Defeasance”), and the Notes will 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 will continue to be deemed “outstanding” for all other
purposes hereunder (it being understood that such Notes will not be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes, the Company may omit to comply with and will
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 will not constitute a Default or an Event of Default under Section 6.01 hereof, but, except as specified above, the remainder of this Indenture and such Notes will be
unaffected thereby. In addition, upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section 8.03, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, Sections 6.01(c) through
6.01(g) hereof will not constitute Events of Default. 
  
 Section 8.04.
Conditions to Legal or Covenant Defeasance. 
  
 In order to
exercise either Legal Defeasance or Covenant Defeasance: 
  
 (a)
the Company must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders, cash in United States dollars, non-callable Government Securities, or a combination thereof, in such amounts as will be sufficient, in the opinion of a
nationally recognized firm of independent public accountants, to pay the principal of, interest, premium and Liquidated Damages, if any, on the outstanding Notes on the stated maturity thereof or on the applicable redemption date, as the case may
be, and the Company must specify whether the Notes are being defeased to maturity or to a particular redemption date; 
  
 (b) in the case of an election under Section 8.02 hereof, the Company has delivered to the Trustee an Opinion of Counsel confirming that (A) the Company
has received from, or there has been published by, the Internal Revenue Service a ruling or (B) since the date hereof, 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 shall 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; 
  
 (c) in the case of an election under Section 8.03 hereof, the Company must deliver to the Trustee an Opinion of Counsel 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; 
  

 74 

 (d) no Default or Event of Default shall have occurred and be continuing on the date of such deposit
(other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit); 
  
 (e) 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 Company or any of its Restricted Subsidiaries is a party or by which the Company or any of its Restricted Subsidiaries is bound; 
  
 (f) the Company must deliver to the Trustee an Officers’ Certificate stating that the deposit was not made by the
Company with the intent of preferring the Holders over the other creditors of the Company or with the intent of defeating, hindering, delaying or defrauding creditors of the Company or others; and 
  
 (g) the Company must deliver to the Trustee an Officers’ Certificate and
an Opinion of Counsel, each stating that all conditions precedent relating to the Legal Defeasance or the Covenant Defeasance have been complied with. 
  
 Section 8.05. Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions. 
  
 Subject to Section 8.06 hereof, all money and non-callable Government
Securities (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 hereof in respect of the outstanding Notes
will be held in trust 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 Company 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, but such money need not be segregated from other funds except to the extent required by law. 
  
 The Company will pay and indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against the cash or non-callable Government Securities deposited pursuant to Section 8.04 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 Eight to the contrary notwithstanding, the Trustee will deliver or pay to the Company from time to time upon the request of the Company any money or non-callable Government Securities held by it as provided in Section 8.04 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 8.04(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 8.06. Repayment to Company. 
  
 Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of, premium, or
Liquidated Damages, if any, or interest on any Note and remaining unclaimed for two years after such principal, and premium, or Liquidated Damages, if any, or interest has become due and payable shall be paid to the Company on its request or (if
then held by the Company) will be discharged from such trust; and the Holder of such Note will thereafter look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all
liability of the Company as trustee thereof, will thereupon cease. 
  

 75 

 Section 8.07. Reinstatement. 
  
 If the Trustee or Paying Agent is unable to apply any United States dollars or non-callable Government Securities in
accordance with Section 8.02 or 8.03 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 Company’s obligations under
this Indenture and the Notes will be revived and reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03 hereof until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section 8.02
or 8.03 hereof, as the case may be; provided, however, that, if the Company makes any payment of principal of, premium, or Liquidated Damages, if any, or interest on any Note following the reinstatement of its obligations, the Company will 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. 
  
 ARTICLE 9. 
 AMENDMENT, SUPPLEMENT AND WAIVER

  
 Section 9.01. Without Consent of Holders of Notes. 
  
 Notwithstanding Section 9.02 of this Indenture, the Company and the Trustee
may amend or supplement this Indenture or the Notes without the consent of any Holder of a Note: 
  
 (a) to cure any ambiguity, defect or inconsistency; 
  
 (b) to provide for uncertificated Notes in addition to or in place of certificated Notes; 
  
 (c) to provide for the assumption of the Company’s obligations to the Holders of the Notes by a successor to the
Company pursuant to Article 5 hereof; 
  
 (d) to make any change
that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect the legal rights hereunder of any such Holder; 
  
 (e) to comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA;
or 
  
 (f) to provide for the issuance of Additional Notes in
accordance with the limitations set forth in this Indenture as of the date hereof. 
  
 Upon the request of the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or supplemental Indenture, and upon receipt by the Trustee of the documents described
in Section 7.02 hereof, the Trustee will join with the Company in the execution of any amended or supplemental Indenture authorized or permitted by the terms of this Indenture and to make any further appropriate agreements and stipulations that may
be therein contained, but the Trustee will not be obligated to enter into such amended or supplemental Indenture that affects its own rights, duties or immunities under this Indenture or otherwise. 
  

 76 

 Section 9.02. With Consent of Holders of Notes. 
  
 Except as provided below in this Section 9.02, the Company and the Trustee may amend or supplement this Indenture
(including, without limitation, Section 3.09, 4.10 and 4.15 hereof) and the Notes with the consent of the Holders of at least a majority in principal amount at maturity of the Notes then outstanding voting as a single class (including, without
limitation, consents obtained in connection with a tender offer or exchange offer for, or purchase of, the Notes), and, subject to Sections 6.04 and 6.07 hereof, any existing Default or Event of Default (other than a Default or Event of Default in
the payment of the principal of, premium, or Liquidated Damages, if any, or interest on the Notes, except a payment default resulting from an acceleration that has been rescinded) or compliance with any provision of this Indenture or the Notes may
be waived with the consent of the Holders of a majority in principal amount at maturity of the then outstanding Notes voting as a single class (including consents obtained in connection with a tender offer or exchange offer for, or purchase of, the
Notes). Section 2.08 hereof shall determine which Notes are considered to be “outstanding” for purposes of this Section 9.02. 
  
 Upon the request of the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or supplemental
Indenture, and upon the filing with the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents described in Section 7.02 hereof, the Trustee will join
with the Company in the execution of such amended or supplemental Indenture unless such amended or supplemental Indenture directly affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the
Trustee may in its discretion, but will not be obligated to, enter into such amended or supplemental Indenture. 
  
 It is not necessary for the consent of the Holders of Notes under this Section 9.02 to approve the particular form of any proposed amendment or waiver,
but it is sufficient if such consent approves the substance thereof. 
  
 After an amendment, supplement or waiver under this Section becomes effective, the Company will mail to the Holders of Notes affected thereby a notice briefly describing the amendment, supplement or waiver. Any failure of the Company to
mail such notice, or any defect therein, will not, however, in any way impair or affect the validity of any such amended or supplemental Indenture or waiver. Subject to Sections 6.04 and 6.07 hereof, the Holders of a majority in aggregate principal
amount at maturity of the Notes then outstanding voting as a single class may waive compliance in a particular instance by the Company with any provision of this Indenture or the Notes. However, without the consent of each Holder affected, an
amendment or waiver under this Section 9.02 may not (with respect to any Notes held by a non-consenting Holder): 
  
 (a) reduce the principal amount at maturity of Notes whose Holders must consent to an amendment, supplement or waiver; 
  
 (b) reduce the principal of or Accreted Value, as may be, of any Note or
change the fixed maturity of any Note or alter or waive any of the provisions with respect to the redemption of the Notes except as provided above with respect to Sections 3.09, 4.10 and 4.15 hereof; 
  
 (c) reduce the rate of or change the time for payment of interest, including
default interest, on any Note; 
  
 (d) waive a Default or Event of
Default in the payment of principal of, or interest or premium, or Liquidated Damages, if any, on the Notes (except a rescission of acceleration of the Notes by the Holders of at least a majority in aggregate principal amount at maturity of the then
outstanding Notes and a waiver of the payment default that resulted from such acceleration); 
  

 77 

 (e) make any Note payable in money other than that stated in the Notes; 
  
 (f) 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 Liquidated Damages, if any, on the Notes; 
  
 (g) waive a redemption payment with respect to any Note except as provided above with respect to Sections 3.09, 4.10 and 4.15 hereof; or 
  
 (h) make any change in Section 6.04 or 6.07 hereof or in the foregoing
amendment and waiver provisions. 
  
 Section 9.03. Compliance with Trust
Indenture Act. 
  
 Every amendment or supplement to this
Indenture or the Notes will be set forth in a amended or supplemental Indenture that complies with the TIA as then in effect. 
  
 Section 9.04. 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 of a Note and
every subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a Note 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. An amendment, supplement or waiver becomes effective in accordance with its terms and
thereafter binds every Holder. 
  
 Section 9.05. 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 Company in exchange for all Notes may issue and the Trustee shall, upon receipt of an Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver. 
  
 Failure to make the appropriate notation
or issue a new Note will not affect the validity and effect of such amendment, supplement or waiver. 
  
 Section 9.06. Trustee to Sign Amendments, etc. 
  
 The Trustee will sign any amended or supplemental indenture authorized pursuant to this Article 9 if the amendment or supplement does not adversely affect the rights, duties, liabilities or immunities of the Trustee.
The Company may not sign an amendment or supplemental indenture until the Board of Directors approves it. In executing any amended or supplemental indenture, the Trustee will be entitled to receive and (subject to Section 7.01 hereof) will be fully
protected in relying upon, in addition to the documents required by Section 11.04 hereof, an Officers’ Certificate and an Opinion of Counsel stating that the execution of such amended or supplemental indenture is authorized or permitted by this
Indenture. 
  

 78 

 ARTICLE 10. 
 SATISFACTION AND DISCHARGE 
  
 Section 10.01.
Satisfaction and Discharge. 
  
 This Indenture will be
discharged and will cease to be of further effect as to all Notes issued hereunder, when: 
  
 (a) either: 
  
 (i) 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 theretofore been deposited in trust and thereafter repaid to the Company) have been
delivered to the Trustee for cancellation; or 
  
 (ii) 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 within one year and the Company has
irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust solely for the benefit of the Holders, cash in U.S. dollars, non-callable Government Securities, or a combination thereof, in such 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 Liquidated Damages, if any, and accrued interest to the date of
maturity or redemption; 
  
 (b) no Default or Event of Default has
occurred and is continuing on the date of such deposit or will occur as a result of such deposit and such deposit will not result in a breach or violation of, or constitute a default under, any other instrument to which the Company is a party or by
which the Company is bound; 
  
 (c) the Company has paid or caused
to be paid all sums payable by it under this Indenture; and 
  
 (d) the Company has delivered irrevocable instructions to the Trustee under this Indenture to apply the deposited money toward the payment of the Notes at maturity or the redemption date, as the case may be. 
  
 In addition, the Company must deliver an Officers’ Certificate and an Opinion of Counsel
to the Trustee stating that all conditions precedent to satisfaction and discharge have been satisfied. 
  
 Notwithstanding the satisfaction and discharge of this Indenture, if money has been deposited with the Trustee pursuant to subclause (ii) of clause (a) of
this Section, the provisions of Section 10.02 and Section 8.06 will survive. 
  
 Section 10.02. Application of Trust Money. 
  
 Subject to the provisions of Section 8.06, all money deposited with the Trustee pursuant to Section 10.01 shall be held in trust and applied by it, in accordance with the provisions of the Notes and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any) and interest for whose payment such money has been
deposited with the Trustee; but such money need not be segregated from other funds except to the extent required by law. 
  

 79 

 If the Trustee or Paying Agent is unable to apply any money or Government Securities in accordance with
Section 10.01 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under this Indenture and
the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 10.01; provided that if the Company has made any payment of principal of, premium, if any, or interest on any Notes because of the reinstatement
of its obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money or Government Securities held by the Trustee or Paying Agent. 
  
 ARTICLE 11. 
 MISCELLANEOUS 
  
 Section
11.01. 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 will control. 
  
 Section 11.02. Notices. 
  
 Any notice or communication by the Company 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), telex, telecopier or overnight air courier guaranteeing next day delivery, to the others’ address: 
  
 If to the Company: 
  
 LBI Media Holdings, Inc. 
 1845 West Empire
Avenue 
 Burbank, CA 91504 
 Telecopier No.: (818) 729-5678 
 Attention: Brett Zane, Chief Financial Officer 
  
 With a copy to: 
  
 O’Melveny & Myers LLP 
 400 South Hope Street 
 Los Angeles, CA 90071

 Telecopier No.: (213) 430-6000 
 Attention: Joseph K. Kim 
  
 If to the Trustee:

  
 U.S. Bank National Association 
 1420 Fifth Avenue, 7th Floor 
 Seattle, WA 98101 
 Telecopier No.: (206) 344-4630 
 Attention: Corporate Trust Services 
  

 80 

 The Company or the Trustee, by notice to the others may designate additional or different addresses for
subsequent notices or communications. 
  
 All notices and
communications (other than those sent to Holders) will 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 the next Business Day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery. 
  
 Any notice or communication to a Holder will be mailed by first class mail, certified or registered, return receipt
requested, or by overnight air courier guaranteeing next day delivery to its address shown on the register kept by the Registrar. Any notice or communication will 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 will 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. 
  
 If the Company mails a notice or communication to Holders,
it will mail a copy to the Trustee and each Agent at the same time. 
  
 Section
11.03. 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 Company, the Trustee, the Registrar and anyone else shall have the
protection of TIA § 312(c). 
  
 Section 11.04. Certificate and Opinion as
to Conditions Precedent. 
  
 Upon any request or application
by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee: 
  
 (a) an Officers’ Certificate in form and substance reasonably satisfactory to the Trustee (which will include the statements set forth in Section
11.05 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 stating that, in the opinion of such counsel, all
such conditions precedent and covenants have been satisfied. 
  
 Section 11.05.
Statements Required in Certificate or Opinion. 
  
 Each
certificate or Opinion of Counsel 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)) will comply with the provisions of TIA § 314(e) and
will include: 
  
 (a) a statement that the Person making such
certificate or rendering such 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; 
  

 81 

 (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. 
  
 Section 11.06. 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 11.07. No Personal Liability of Directors, Officers, Employees and Stockholders. 
  
 No director, officer, employee, incorporator or stockholder of the Company or any of its Restricted Subsidiaries, as such,
will have any liability for any obligations of the Company or any of its Restricted Subsidiaries under the Notes, this Indenture, the Registration Rights Agreement or for any claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder 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.

  
 Section 11.08. Governing Law. 
  
 THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO
CONSTRUE THIS INDENTURE AND, THE NOTES 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. 
  
 Section 11.09. No Adverse Interpretation of Other Agreements. 
  
 This Indenture may not be used to interpret any other indenture, loan or
debt agreement of the Company or its Subsidiaries or of any other Person. Any such indenture, loan or debt agreement may not be used to interpret this Indenture. 
  
 Section 11.10. Successors. 
  
 All agreements of the Company in this Indenture and the Notes will bind its successors. All agreements of the Trustee in this Indenture will bind its
successors. 
  
 Section 11.11. Severability. 
  
 In case any provision in this Indenture or in the Notes is be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired thereby. 
  
 Section 11.12. Counterpart Originals. 
  
 The parties may sign any number of copies of this Indenture. Each signed copy will be an original, but all of them together represent the same agreement.

  

 82 

 Section 11.13. 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 will in no way modify or restrict any of the terms or provisions hereof. 
  
 [Signatures on following page] 
  

 83 

 SIGNATURES 
  
 Dated as of October 10, 2003 
  

	LBI MEDIA HOLDINGS, INC.
		
	 By:
	 	 /s/ Brett Zane

	 	 	 Name:
	 	 Brett Zane

	 	 	 Title:
	 	 Chief Financial Officer

	
	U.S. BANK NATIONAL ASSOCIATION
		
	 By:
	 	 /s/ Thomas Zrust

	 	 	 Name:
	 	 Thomas Zrust

	 	 	 Title:
	 	 Vice President

  

 S-1 

 EXHIBIT A-1 
 [Face of Note] 

  
 CUSIP/CINS 52109AAA6 
  
 11% Senior
Discount Notes due 2013 
  

	 No.
	  	$                    

  
 LBI MEDIA HOLDINGS,
INC. 
  

	 promise to pay to

	 or registered assigns,

	
	 the principal sum of

	 Dollars on October 15, 2013.

	
	 Interest Payment Dates: April 15 and October 15

	
	 Record Dates: April 1 and October 1

	
	 Dated:

  

	LBI MEDIA HOLDINGS, INC.
		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

  

	This is one of the Notes referred to in the within-mentioned Indenture:
	
	U.S. BANK NATIONAL ASSOCIATION
	   as Trustee

		
	 By:
	 	  

	 	 	Authorized Signatory

  

  

 A-1-1 

 [Back of Note] 
 11% Senior Discount Notes due 2013 
  
 [Insert
the Global Note Legend, if applicable pursuant to the provisions of the Indenture] 
  
 [Insert the Private Placement Legend, if applicable pursuant to the provisions of the Indenture] 
  
 Capitalized terms used herein have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 
  
 1. INTEREST. LBI Media Holdings, Inc., a
Delaware corporation (the “Company”), promises to pay interest on the Accreted Value of this Note at the rate and times and in the manner specified below and will pay the Liquidated Damages, if any, payable pursuant to Section 6 of the
Registration Rights Agreement referred to below. No cash interest will accrue on the Notes prior to October 15, 2008, but the Accreted Value of each Note will increase (representing amortization of original issue discount) between the date of
original issuance and October 15, 2008 at a rate of 11% per annum, calculated on a semi-annual bond equivalent basis using a 360-day year comprised of twelve 30-day months. Beginning on October 15, 2008, cash interest on the Notes will accrue at the
rate of 11% per annum until maturity. The Company will pay cash interest and Liquidated Damages, if any, semi-annually in arrears on April 15 and October 15 of each year, or if any such day is not a Business Day, on the next succeeding Business Day
(each an “Interest Payment Date”) commencing April 15, 2009; provided, however, that at any time prior to October 15, 2008, the Company may elect on any Interest Payment Date to commence the accrual of cash interest from and
after the Cash Interest Election Date, in which case the principal amount at maturity of each Note will, on such Interest Payment Date, be reduced to the Accreted Value of such Note as of such Interest Payment Date, and cash interest (accruing at
the rate of 11% per annum from the Cash Interest Election Date) shall be payable with respect to such Note on each Interest Payment Date thereafter. Cash interest on the Notes will accrue from the most recent date to which interest has been paid or,
if no interest has been paid, from the earlier of October 15, 2008 and the Cash Interest Election Date; provided that if there is no existing Default in the payment of interest, and if this Note is authenticated between a record date referred to on
the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date. The Company will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue principal and premium, if any, from time to time on demand at a rate that is 1% per annum in excess of the rate then in effect; it will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest and Liquidated Damages (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months.

  
 2. METHOD OF
PAYMENT. The Company will pay interest on the Notes (except defaulted interest) and Liquidated Damages, if any, to the Persons who are registered Holders of Notes at the close of business on April 1 or October 1
next preceding the Interest Payment Date, even if such Notes are canceled 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 Notes will be
payable as to principal, premium and Liquidated Damages, if any, and interest at the office or agency of the Company maintained for such purpose within or without the City and State of New York, or, at the option of the Company, payment of interest
and Liquidated Damages, if any, may be made by check mailed on the Interest Payment Date to the Holders at their addresses set forth in the register of Holders, provided that payment by wire transfer of immediately available funds will be
required with respect to principal of and interest, premium and Liquidated Damages, if any, on, all Global Notes and all other Notes the Holders of which will have provided wire transfer instructions to the Company or the Paying Agent. Such payment
will 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-1-2 

 3. PAYING AGENT AND
REGISTRAR. Initially, U.S. Bank National Association, a national banking association, the Trustee under the Indenture, will act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar
without notice to any Holder. The Company or any of its Subsidiaries may act in any such capacity. 
  
 4. INDENTURE. The Company issued the Notes under an Indenture dated as of October 10, 2003 (the
“Indenture”) between the Company and the Trustee. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§
77aaa-77bbbb). The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for a statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the
provisions of the Indenture shall govern and be controlling. The Notes (including any Additional Notes issued in accordance with the limitations set forth in the Indenture) are unsecured obligations of the Company. 
  
 5. OPTIONAL REDEMPTION. 
  
 (a) Except as set forth in subparagraph (b) of this Paragraph 5, the Company
will not have the option to redeem the Notes prior to October 15, 2008. Thereafter, the Company will have the option to redeem the Notes, in whole or in part, upon not less than 30 nor more than 60 days’ notice, at the redemption prices
(expressed as percentages of principal amount) set forth below plus accrued and unpaid interest and Liquidated Damages, if any, on the Notes to be redeemed, to the applicable redemption date, if redeemed during the twelve-month period beginning on
October 15 of the years indicated below: 
  

	 Year

	  	Percentage

	 
	 2008
	  	105.500	%
	 2009
	  	103.667	%
	 2010
	  	101.833	%
	 2011 and thereafter
	  	100.000	%

  
 (b) Notwithstanding
the provisions of subparagraph (a) of this Paragraph 5, at any time prior to October 15, 2006, the Company may on one or more occasions redeem up to 40% of the aggregate principal amount at maturity of Notes with all or a portion of the net cash
proceeds of one or more Equity Offerings at a redemption price equal to 111% of the Accreted Value thereof at the redemption date and Liquidated Damages thereon, if any, to the redemption date, or if a Cash Interest Election has been made, 111% of
the principal amount at maturity of Notes, plus accrued and unpaid interest and Liquidated Damages, if any, thereon to the applicable redemption date; provided that at least 60% of the aggregate principal amount at maturity of the Notes
issued under the Indenture remains outstanding immediately after the occurrence of such redemption (excluding Notes held by the Company and its Affiliates) and that such redemption occurs within 90 days of the date of the closing of such Equity
Offering. 
  
 6. MANDATORY
REDEMPTION. 
  
 The Company will not be
required to make mandatory redemption payments with respect to the Notes. 
  

 A-1-3 

 7. REPURCHASE AT OPTION HOLDER.

  
 (a) If there is a Change of Control, the Company will be
required to make an offer (a “Change of Control Offer”) to repurchase all or any part (equal to $1,000 or an integral multiple thereof) of each Holder’s Notes at a purchase price equal to 101% of the Accreted Value thereof on the date
of purchase plus Liquidated Damages thereon, if any, to the date of purchase (unless the date of purchase is on or after the earlier to occur of October 15, 2008 and the Cash Interest Election Date, in which case such Change of Control Payment will
be equal to 101% of the aggregate principal amount at maturity of Notes purchased plus accrued and unpaid interest and Liquidated Damages thereon, if any, to the date of purchase) (the “Change of Control Payment”). Within 30 days following
any Change of Control, the Company will mail a notice to each Holder setting forth the procedures governing the Change of Control Offer as required by the Indenture. 
  
 (b) If the Company or a Subsidiary consummates any Asset Sales, within ten Business Days of each date on which the aggregate
amount of Excess Proceeds exceeds $10.0 million, the Company will commence an 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 the
Indenture with respect to offers to purchase or redeem with the proceeds of sales of assets (as “Asset Sale Offer”) pursuant to Section 3.09 of the Indenture to purchase the maximum principal amount of Notes (including any Additional
Notes) that may be purchased out of the Excess Proceeds. To the extent that any Indebtedness of any Restricted Subsidiary of the Company requires that Restricted Subsidiary to make an offer similar to an Asset Sale Offer, the Company and such
Restricted Subsidiary may make simultaneous offers, with the offer to the Holders being limited to proceeds not used to repurchase the Indebtedness of such Restricted Subsidiary. The offer price in any Asset Sale Offer will be in cash in an amount
equal to 100% of the Accreted Value on the purchase date plus Liquidated Damages thereon, if any, to the purchase date, unless the purchase date is on or after the earlier to occur of October 15, 2008 and the Cash Election Date, in which case such
purchase price shall equal 100% of the principal amount at maturity thereof plus accrued and unpaid interest and Liquidated Damages thereon, if any, to the date fixed for the closing of such offer, in accordance with the procedures set forth in the
Indenture. To the extent that the Accreted Value or aggregate amount of Notes (including any Additional Notes), as the case may be, and other pari passu Indebtedness tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds,
the Company (or such Subsidiary) may use such deficiency for any purpose not otherwise prohibited by the Indenture. If the Accreted Value or aggregate principal amount at maturity of Notes, as the case may be, and other pari passu
Indebtedness surrendered by Holders thereof exceeds the amount of Excess Proceeds, the Trustee shall select the Notes and other pari passu Indebtedness to be purchased on a pro rata basis. Holders of Notes that are the subject of an
offer to purchase will receive an Asset Sale Offer from the Company prior to any related purchase date and may elect to have such Notes purchased by completing the form entitled “Option of Holder to Elect Purchase” on the reverse of the
Notes. 
  
 8. NOTICE OF
REDEMPTION. Notice of redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its registered address. Notes in denominations
larger than $1,000 may be redeemed in part but only in whole multiples of $1,000, unless all of the Notes held by a Holder are to be redeemed. On and after the redemption date interest ceases to accrue on Notes or portions thereof called for
redemption. 
  
 9. DENOMINATIONS,
TRANSFER, EXCHANGE. The Notes are in registered form without coupons in denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be registered and 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 Company may require a Holder to pay any taxes and fees required by law or permitted
by the Indenture. The Company need not exchange or register the transfer of any Note or portion of a Note selected for 
  

 A-1-4 

 
redemption, except for the unredeemed portion of any Note being redeemed in part. Also, the Company need not exchange or register the transfer of any Notes
for a period of 15 days before a selection of 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 Note may be treated as its owner
for all purposes. 
  
 11. AMENDMENT,
SUPPLEMENT AND WAIVER. Subject to certain exceptions, the Indenture, or the Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal
amount at maturity of the then outstanding Notes and Additional Notes, if any, voting as a single class, and any existing default or compliance with any provision of the Indenture or the Notes may be waived with the consent of the Holders of a
majority in principal amount at maturity of the then outstanding Notes and Additional Notes, if any, voting as a single class. Without the consent of any Holder of a Note, the Indenture or the Notes may be amended or supplemented to cure any
ambiguity, defect or inconsistency, to provide for uncertificated Notes in addition to or in place of certificated Notes, to provide for the assumption of the Company’s obligations to Holders of the Notes in case of a merger or consolidation,
to make any change that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect the legal rights under the Indenture of any such Holder, to comply with the requirements of the SEC in order to
effect or maintain the qualification of the Indenture under the Trust Indenture Act or to provide for the issuance of Additional Notes in accordance with the limitations set forth in the Indenture. 
  
 12. DEFAULTS AND
REMEDIES. Events of Default include: (i) default for 30 days in the payment when due of interest or Liquidated Damages on the Notes; (ii) default in payment when due of principal of or premium, if any, on the Notes
when the same becomes due and payable at maturity, upon redemption (including in connection with an offer to purchase) or otherwise, (iii) failure by the Company or any of its Restricted Subsidiaries to comply with Section 4.15 or 5.01 of the
Indenture; (iv) failure by the Company or any of its Restricted Subsidiaries for 30 days after notice to the Company by the Trustee or the Holders of at least 25% in principal amount at maturity of the Notes then outstanding to comply with Section
4.07, 4.09 or 4.10 of the Indenture; (v) failure by the Company or any of its Subsidiaries for 60 days after notice to the Company by the Trustee or the Holders of at least 25% in principal amount at maturity of the Notes then outstanding to observe
or perform any other covenant, representation, warranty or other agreement in the Indenture or the Notes; (vi) default under certain other agreements relating to Indebtedness of the Company which default is caused by a failure to pay principal of
such Indebtedness at the final stated maturity thereof (giving effect to any applicable grace periods and any extensions thereof) or results in the acceleration of such Indebtedness prior to its express maturity; (vii) certain final judgments for
the payment of money that remain undischarged, unpaid, unrestricted, unbonded or unstayed for a period of 60 days; and (viii) certain events of bankruptcy or insolvency with respect to the Company or any of its Significant Subsidiaries. If any Event
of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount at maturity of the then outstanding Notes may declare all the Notes to be due and payable. Notwithstanding the foregoing, in the case of an Event of
Default arising from certain events of bankruptcy or insolvency, all outstanding Notes will become due and payable without further action or notice. Holders may not enforce the Indenture or the Notes except as provided in the Indenture. Subject to
certain limitations, Holders of a majority in principal amount at maturity 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 or Event of Default (except a Default or Event of Default relating to the payment of principal or interest) if it determines that withholding notice is in their interest. The Holders of a majority in aggregate principal amount at maturity 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 or Event of Default and its consequences under the Indenture except a continuing Default or Event of Default in the
payment of interest on, or the principal of, the Notes. The 

  

 A-1-5 

 
Company is required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the Company is required upon becoming aware
of any Default or Event of Default, to deliver to the Trustee a statement specifying such Default or Event of Default. 
  
 13. TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual or any
other capacity, may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the Trustee. 
  
 14. NO RECOURSE AGAINST
OTHERS. A director, officer, employee, incorporator or stockholder, of the Company or any of its Restricted Subsidiaries, as such, will not have any liability for any obligations of the Company or any of its
Restricted Subsidiaries under the Notes or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder by accepting a Note waives and releases all such liability. The waiver and release
are part of the consideration for the issuance of the Notes. 
  
 15. AUTHENTICATION. This Note will 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. ADDITIONAL RIGHTS OF
HOLDERS OF RESTRICTED GLOBAL NOTES AND RESTRICTED DEFINITIVE NOTES. In addition to the rights
provided to Holders of Notes under the Indenture, Holders of Restricted Global Notes and Restricted Definitive Notes will have all the rights set forth in the Registration Rights Agreement dated as of October 10, 2003, among the Company and the
other parties named on the signature pages thereof or, in the case of Additional Notes, Holders of Restricted Global Notes and Restricted Definitive Notes will have the rights set forth in one or more registration rights agreements, if any, between
the Company and the other parties thereto, relating to rights given by the Company to the purchasers of any Additional Notes (collectively, the “Registration Rights Agreement”). 
  
 18. CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to the
accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 
  
 19. GOVERNING LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO
CONSTRUE THE NOTES 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. 
  

 A-1-6 

 The Company will furnish to any Holder upon written request and without charge a copy of the Indenture
and/or the Registration Rights Agreement. Requests may be made to: 
  
 LBI Media
Holdings, Inc. 
 1845 West Empire Avenue 
 Burbank, CA 91504

 Attention: Brett Zane, Chief Financial Officer 
  

 A-1-7 

 ASSIGNMENT FORM 
  
 To assign this Note, fill in the form below: 
  

	 (I) or (we) assign and transfer this Note to:

	 	  	 (Insert assignee’s legal name)

	  

	(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 Note on the books of the Company. The agent may substitute another to act for him.
	Date:             

  

	 Your Signature:
	 	  

	(Sign exactly as your name appears on the face of this Note)

  

	 Signature Guarantee*:
                                       
 

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  
  

 A-1-8 

 OPTION OF HOLDER TO ELECT
PURCHASE 
  
 If you want to elect to have this Note
purchased by the Company pursuant to Section 4.10 or 4.15 of the Indenture, check the appropriate box below: 
  
 XSection 4.10
                     XSection 4.15 
  
 If you want to elect to have only part of the Note purchased by the Company
pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased: 
  
 $                     
  
 Date:                     

  

	 Your Signature:

	              (Sign exactly as your name appears on the face of this
Note)
	
	 Tax Identification No.:

  
 Signature Guarantee*:
                     

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  

 A-1-9 

 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE* 
  
 The following exchanges of a part of this Global Note for an interest in
another Global Note or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an interest in this Global Note, 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
Note Custodian

	*	This schedule should be included only if the Note is issued in global form. 

  

 A-1-10 

 EXHIBIT A-2 
  
 [Face of Regulation S Temporary Global Note] 

  
 CUSIP/CINS U5139BAA3 
  
 11% Senior Discount Notes due 2013 
  

	 No.
	  	$                

  
 LBI MEDIA HOLDINGS,
INC. 
  

	 promise to pay to

	 or registered assigns,

	
	 the principal sum of

	 Dollars on October 15, 2013.

	
	 Interest Payment Dates: April 15 and October 15

	
	 Record Dates: April 1 and October 1

	
	 Dated:

  
  

	LBI MEDIA HOLDINGS, INC.
		
	 By:
	 	 
	 	

	 	 	 Name:

	 	 	 Title:

  

	This is one of the Notes referred to in the within-mentioned Indenture:
	
	U.S. BANK NATIONAL ASSOCIATION
	   as Trustee

		
	 By:
	 	  

	 	 	Authorized Signatory

  

  

 A-2-1 

 [Back of Regulation S Temporary Global Note] 
 11% Senior Discount Notes due 2013 
  
 THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTES, ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN). NEITHER THE HOLDER NOR THE BENEFICIAL
OWNERS OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF INTEREST HEREON. 
  
 THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY
CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE,
(III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. 
  
 UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE
MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR
A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS
MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER
OF THIS NOTE IS NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 
  
 THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED,
ONLY (1) INSIDE THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE 
  

 A-2-2 

 SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED STATES IN A TRANSACTION
COMPLYING WITH THE PROVISIONS OF RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 (IF AVAILABLE), (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, OR (V) TO THE ISSUER, ITS SUBSIDIARIES OR ITS DIRECT OR INDIRECT PARENT, IN EACH OF CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. 
  
 Capitalized terms used herein will have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 
  
 1. INTEREST. LBI Media Holdings, Inc., a
Delaware corporation (the “Company”), promises to pay interest on the Accreted Value of this Note at the rate and times and in the manner specified below and will pay the Liquidated Damages, if any, payable pursuant to Section 5 of the
Registration Rights Agreement referred to below. No cash interest will accrue on the Notes prior to October 15, 2008, but the Accreted Value of each Note will increase (representing amortization of original issue discount) between the date of
original issuance and October 15, 2008 at a rate of 11% per annum, calculated on a semi-annual bond equivalent basis using a 360-day year comprised of twelve 30-day months. Beginning on October 15, 2008, cash interest on the Notes will accrue at the
rate of 11% per annum until maturity. The Company will pay cash interest and Liquidated Damages, if any, semi-annually in arrears on April 15 and October 15 of each year, or if any such day is not a Business Day, on the next succeeding Business Day
(each an “Interest Payment Date”) commencing April 15, 2009; provided, however, that at any time prior to October 15, 2008, the Company may elect on any Interest Payment Date to commence the accrual of cash interest from and
after the Cash Interest Election Date, in which case the principal amount at maturity of each Note will, on such Interest Payment Date, be reduced to the Accreted Value of such Note as of such Interest Payment Date, and cash interest (accruing at
the rate of 11% per annum from the Cash Interest Election Date) shall be payable with respect to such Note on each Interest Payment Date thereafter. Cash interest on the Notes will accrue from the most recent date to which interest has been paid or,
if no interest has been paid, from the earlier of October 15, 2008 and the Cash Interest Election Date; provided that if there is no existing Default in the payment of interest, and if this Note is authenticated between a record date referred to on
the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date. The Company will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue principal and premium, if any, from time to time on demand at a rate that is 1% per annum in excess of the rate then in effect; it will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest and Liquidated Damages (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months.

  
 Until this Regulation S Temporary Global Note is exchanged for
one or more Regulation S Permanent Global Notes, the Holder hereof shall not be entitled to receive payments of interest hereon; until so exchanged in full, this Regulation S Temporary Global Note shall in all other respects be entitled to the same
benefits as other Notes under the Indenture. 
  
 2.
METHOD OF PAYMENT. The Company will pay interest on the Notes (except defaulted interest) and Liquidated Damages, if any, to the Persons who are registered Holders of Notes at the
close of business on April 1 or October 1 next preceding the Interest Payment Date, even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in 
  

 A-2-3 

 Section 2.12 of the Indenture with respect to defaulted interest. The Notes will be payable as to principal, premium and
Liquidated Damages, if any, and interest at the office or agency of the Company maintained for such purpose within or without the City and State of New York, or, at the option of the Company, payment of interest and Liquidated Damages, if any, may
be made by check mailed on the Interest Payment Date to the Holders at their addresses set forth in the register of Holders, provided that payment by wire transfer of immediately available funds will be required with respect to principal of
and interest, premium and Liquidated Damages, if any, on, all Global Notes and all other Notes the Holders of which will have provided wire transfer instructions to the Company or the Paying Agent. Such payment will 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. 
  
 3. PAYING AGENT AND REGISTRAR. Initially, U.S. Bank National
Association, a national banking association, the Trustee under the Indenture, will act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar without notice to any Holder. The Company or any of its Subsidiaries may act
in any such capacity. 
  
 4.
INDENTURE. The Company issued the Notes under an Indenture dated as of October 10, 2003 (the “Indenture”) between the Company and the Trustee. The terms of the Notes include those stated in the
Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for
a statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. The Notes (including any Additional Notes issued in
accordance with the limitations set forth in the Indenture) are unsecured obligations of the Company. 
  
 5. OPTIONAL REDEMPTION. 
  
 (c) Except as set forth in subparagraph (b) of this Paragraph 5, the Company will not have the option to redeem the Notes
prior to October 15, 2008. Thereafter, the Company will have the option to redeem the Notes, in whole or in part, upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of principal amount) set
forth below plus accrued and unpaid interest and Liquidated Damages, if any, on the Notes to be redeemed, to the applicable redemption date, if redeemed during the twelve-month period beginning on October 15 of the years indicated below: 

 

	 Year

	  	Percentage

	 
	 2008
	  	105.500	%
	 2009
	  	103.667	%
	 2010
	  	101.833	%
	 2011 and thereafter
	  	100.000	%

  
 (d) Notwithstanding
the provisions of subparagraph (a) of this Paragraph 5, at any time prior to October 15, 2006, the Company may on one or more occasions redeem up to 40% of the aggregate principal amount at maturity of Notes with all or a portion of the net cash
proceeds of one or more Equity Offerings at a redemption price equal to 111% of the Accreted Value thereof at the redemption date and Liquidated Damages thereon, if any, to the redemption date, or if a Cash Interest Election has been made, 111% of
the principal amount at maturity of the Notes, plus accrued and unpaid interest and Liquidated Damages, if any, thereon to the applicable redemption date; provided that at least 60% of the aggregate principal amount at maturity of the Notes
issued under the Indenture remains outstanding immediately after the occurrence of such redemption (excluding Notes held by the Company and its Affiliates) and that such redemption occurs within 90 days of the date of the closing of such Equity
Offering. 
  

 A-2-4 

 6. MANDATORY REDEMPTION. 
  
 The Company will not be required to make mandatory redemption payments with
respect to the Notes. 
  
 7. REPURCHASE
AT OPTION OF HOLDER. 
  
 (e) If there is a Change of Control, the Company will be required to make an offer (a “Change of Control Offer”) to repurchase all or any part (equal to $1,000 or an integral multiple thereof) of each
Holder’s Notes at a purchase price equal to 101% of the Accreted Value thereof on the date of purchase plus Liquidated Damages thereon, if any, to the date of purchase (unless the date of purchase is on or after the earlier to occur of October
15, 2008 and the Cash Interest Election Date, in which case such Change of Control Payment will be equal to 101% of the aggregate principal amount at maturity of Notes purchased plus accrued and unpaid interest and Liquidated Damages thereon, if
any, to the date of purchase) (the “Change of Control Payment”). Within 30 days following any Change of Control, the Company will mail a notice to each Holder setting forth the procedures governing the Change of Control Offer as required
by the Indenture. 
  
 (f) If the Company or a Subsidiary
consummates any Asset Sales, within ten Business Days of each date on which the aggregate amount of Excess Proceeds exceeds $10.0 million, the Company will commence an 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 the Indenture with respect to offers to purchase or redeem with the proceeds of sales of assets (as “Asset Sale Offer”) pursuant to Section 3.09 of the
Indenture to purchase the maximum principal amount of Notes (including any Additional Notes) that may be purchased out of the Excess Proceeds. To the extent that any Indebtedness of any Restricted Subsidiary of the Company requires that Restricted
Subsidiary to make an offer similar to an Asset Sale Offer, the Company and such Restricted Subsidiary may make simultaneous offers, with the offer to the Holders being limited to proceeds not used to repurchase the Indebtedness of such Restricted
Subsidiary. The offer price in any Asset Sale Offer will be in cash in an amount equal to 100% of the Accreted Value on the purchase date plus Liquidated Damages thereon, if any, to the purchase date, unless the purchase date is on or after the
earlier to occur of October 15, 2008 and the Cash Election Date, in which case such purchase price shall equal 100% of the principal amount at maturity thereof plus accrued and unpaid interest and Liquidated Damages thereon, if any, to the date
fixed for the closing of such offer, in accordance with the procedures set forth in the Indenture. To the extent that the Accreted Value or aggregate principal amount at maturity of Notes (including any Additional Notes), as the case may be, and
other pari passu Indebtedness tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds, the Company (or such Subsidiary) may use such deficiency for any purpose not otherwise prohibited by the Indenture. If the Accreted Value
or aggregate principal amount of Notes, as the case may be, and other pari passu Indebtedness surrendered by Holders thereof exceeds the amount of Excess Proceeds, the Trustee shall select the Notes and other pari passu Indebtedness to
be purchased on a pro rata basis. Holders of Notes that are the subject of an offer to purchase will receive an Asset Sale Offer from the Company prior to any related purchase date and may elect to have such Notes purchased by completing the
form entitled “Option of Holder to Elect Purchase” on the reverse of the Notes. 
  
 8. NOTICE OF REDEMPTION. Notice of redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each Holder
whose Notes are to be redeemed at its registered address. Notes in denominations larger than $1,000 may be redeemed in part but only in whole multiples of $1,000, unless all of the Notes held by a Holder are to be redeemed. On and after the
redemption date interest ceases to accrue on Notes or portions thereof called for redemption. 
  

 A-2-5 

 9. DENOMINATIONS, TRANSFER, EXCHANGE.
The Notes are in registered form without coupons in denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be registered and 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 Company may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Company need not exchange or register the
transfer of any Note or portion of a Note selected for redemption, except for the unredeemed portion of any Note being redeemed in part. Also, the Company need not exchange or register the transfer of any Notes for a period of 15 days before a
selection of Notes to be redeemed or during the period between a record date and the corresponding Interest Payment Date. 
  
 This Regulation S Temporary Global Note is exchangeable in whole or in part for one or more Global Notes only (i) on or after the termination of the
40-day restricted period (as defined in Regulation S) and (ii) upon presentation of certificates (accompanied by an Opinion of Counsel, if applicable) required by Article 2 of the Indenture. Upon exchange of this Regulation S Temporary Global Note
for one or more Global Notes, the Trustee shall cancel this Regulation S Temporary Global Note. 
  
 10. PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated as its owner
for all purposes. 
  
 11. AMENDMENT,
SUPPLEMENT AND WAIVER. Subject to certain exceptions, the Indenture, or the Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal
amount at maturity of the then outstanding Notes and Additional Notes, if any, voting as a single class, and any existing default or compliance with any provision of the Indenture or the Notes may be waived with the consent of the Holders of a
majority in principal amount at maturity of the then outstanding Notes and Additional Notes, if any, voting as a single class. Without the consent of any Holder of a Note, the Indenture or the Notes may be amended or supplemented to cure any
ambiguity, defect or inconsistency, to provide for uncertificated Notes in addition to or in place of certificated Notes, to provide for the assumption of the Company’s obligations to Holders of the Notes in case of a merger or consolidation,
to make any change that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect the legal rights under the Indenture of any such Holder, to comply with the requirements of the SEC in order to
effect or maintain the qualification of the Indenture under the Trust Indenture Act or to provide for the issuance of Additional Notes in accordance with the limitations set forth in the Indenture. 
  
 12. DEFAULTS AND
REMEDIES. Events of Default include: (i) default for 30 days in the payment when due of interest or Liquidated Damages on the Notes; (ii) default in payment when due of principal of or premium, if any, on the Notes
when the same becomes due and payable at maturity, upon redemption (including in connection with an offer to purchase) or otherwise, (iii) failure by the Company or any of its Restricted Subsidiaries to comply with Section 4.15 or 5.01 of the
Indenture; (iv) failure by the Company or any of its Restricted Subsidiaries for 30 days after notice to the Company by the Trustee or the Holders of at least 25% in principal amount at maturity of the Notes then outstanding to comply with Section
4.07, 4.09 or 4.10 of the Indenture; (v) failure by the Company or any of its Subsidiaries for 60 days after notice to the Company by the Trustee or the Holders of at least 25% in principal amount at maturity of the Notes then outstanding to observe
or perform any other covenant, representation, warranty or other agreement in the Indenture or the Notes; (vi) default under certain other agreements relating to Indebtedness of the Company which default is caused by a failure to pay principal of
such Indebtedness at the final stated maturity thereof (giving effect to any applicable grace periods and any extensions thereof) or results in the acceleration of such Indebtedness prior to its express maturity; (vii) certain final judgments for
the payment of money that remain undischarged, unpaid, unrestricted, unbonded or unstayed for a period of 60 days; and (viii) certain events of bankruptcy or insolvency with respect to the Company or any of its Significant Subsidiaries. If any Event
of Default occurs and is continuing, the 
  

 A-2-6 

 Trustee or the Holders of at least 25% in principal amount at maturity of the then outstanding Notes may declare all the
Notes to be due and payable. Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency, all outstanding Notes will become due and payable without further action or notice. Holders may
not enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain limitations, Holders of a majority in principal amount at maturity 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 or Event of Default (except a Default or Event of Default relating to the payment of principal or interest) if it determines that withholding notice is in
their interest. The Holders of a majority in aggregate principal amount at maturity 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 or Event of Default and its
consequences under the Indenture except a continuing Default or Event of Default in the payment of interest on, or the principal of, the Notes. The Company is required to deliver to the Trustee annually a statement regarding compliance with the
Indenture, and the Company is required upon becoming aware of any Default or Event of Default, to deliver to the Trustee a statement specifying such Default or Event of Default. 
  
 13. TRUSTEE DEALINGS WITH COMPANY. The
Trustee, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the Trustee. 

 
 14. NO RECOURSE AGAINST
OTHERS. A director, officer, employee, incorporator or stockholder, of the Company or any of its Restricted Subsidiaries, as such, will not have any liability for any obligations of the Company or any of its
Restricted Subsidiaries under the Notes or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder by accepting a Note waives and releases all such liability. The waiver and release
are part of the consideration for the issuance of the Notes. 
  
 15. AUTHENTICATION. This Note will 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. ADDITIONAL RIGHTS OF
HOLDERS OF RESTRICTED GLOBAL NOTES AND RESTRICTED DEFINITIVE NOTES. In addition to the rights
provided to Holders of Notes under the Indenture, Holders of Restricted Global Notes and Restricted Definitive Notes will have all the rights set forth in the Registration Rights Agreement dated as of October 10, 2003, among the Company and the
other parties named on the signature pages thereof or, in the case of Additional Notes, Holders of Restricted Global Notes and Restricted Definitive Notes will have the rights set forth in one or more registration rights agreements, if any, between
the Company and the other parties thereto, relating to rights given by the Company to the purchasers of any Additional Notes (collectively, the “Registration Rights Agreement”). 
  
 18. CUSIP NUMBERS. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to the accuracy of such
numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 
  

 A-2-7 

 19. GOVERNING LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL
GOVERN AND BE USED TO CONSTRUE THE NOTES 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 Company will furnish to any Holder upon written request and without
charge a copy of the Indenture and/or the Registration Rights Agreement. Requests may be made to: 
  
 LBI Media Holdings, Inc. 
 1845 West Empire Avenue 
 Burbank, CA 91504 
 Attention: Brett Zane, Chief Financial Officer 
  

 A-2-8 

 ASSIGNMENT FORM 
  
 To assign this Note, fill in the form below: 
  

	 (I) or (we) assign and transfer this Note to:

                                        
                                        
                                        
                 (Insert assignee’s legal name) 
  

	

	(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 Note on the books of the Company. The agent may substitute another to act for him. 
  
 Date:                     

  

	 Your Signature:

	            (Sign exactly as your name appears on the face of this Note)

  
 Signature Guarantee*:
                                        

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  
  

 A-2-9 

 OPTION OF HOLDER TO ELECT
PURCHASE 
  
 If you want to elect to have this Note
purchased by the Company pursuant to Section 4.10 or 4.15 of the Indenture, check the appropriate box below: 
  
 XSection 4.10
                     XSection 4.15 
  
 If you want to elect to have only part of the Note purchased by the Company
pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased: 
  
 $                     
  
 Date:
                     
  

	 Your Signature:

	              (Sign exactly as your name appears on the face of this
Note)
	
	 Tax Identification No.:

  
 Signature Guarantee*:                              

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  

 A-2-10 

 SCHEDULE OF EXCHANGES OF REGULATION S TEMPORARY GLOBAL NOTE 
  
 The following exchanges of a part of this Regulation S Temporary Global Note
for an interest in another Global Note, or of other Restricted Global Notes for an interest in this Regulation S Temporary Global Note, 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
Note Custodian

  
  

 A-2-11 

 EXHIBIT B 
  

FORM OF CERTIFICATE OF TRANSFER 
  
 LBI Media Holdings, Inc. 
 1845 West Empire Avenue 
 Burbank, CA 91504 
  
 U.S. Bank National Association 
 1420 Fifth Avenue, 7th Floor 
 Seattle, WA 98101 
  
 Re: 11% Senior Discount Notes due 2013 
  
 Reference is hereby made to the Indenture, dated as of October 10, 2003 (the “Indenture”), between LBI
Media Holdings, Inc., a Delaware corporation, as issuer (the “Company”), and U.S. Bank National Association, a national banking association, as Trustee. Capitalized terms used but not defined herein shall have the meanings given to them in
the Indenture. 
  
                                 , (the “Transferor”)
owns and proposes to transfer the Note[s] or interest in such Note[s] specified in Annex A hereto, in the principal amount of
$                     in such Note[s] or interests (the “Transfer”), to
                                        
(the “Transferee”), as further specified in Annex A hereto. In connection with the Transfer, the Transferor hereby certifies that: 
  
 [CHECK ALL THAT APPLY] 
  
 1.  ̈ Check if Transferee will
take delivery of a beneficial interest in the 144A Global Note or a Definitive Note Pursuant to Rule 144A. The Transfer is being effected pursuant to and in accordance with Rule 144A under the Securities Act of 1933, as amended (the
“Securities Act”), and, accordingly, the Transferor hereby further certifies that the beneficial interest or Definitive Note is being transferred to a Person that the Transferor reasonably believed and believes is purchasing the
beneficial interest or Definitive Note 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 Transfer is in compliance with any applicable blue sky securities laws of any state of the United States. Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the 144A Global Note and/or the Definitive Note
and in the Indenture and the Securities Act. 
  
 2.  ̈ Check if Transferee will take delivery of a beneficial interest in the Temporary Regulation S Global Note, the Regulation S Global Note
or a Definitive Note pursuant to Regulation S. The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly, the Transferor hereby further certifies that (i) the
Transfer is not being made to a person in the United States and (x) at the time the buy order was originated, the Transferee was outside the United States or such Transferor and any Person acting on its behalf reasonably believed and believes that
the Transferee was outside the United States or (y) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither such Transferor nor any Person acting on its behalf knows that the transaction
was prearranged with a buyer in the United States, (ii) no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act, (iii) the transaction is not part of a
plan or scheme to evade the registration requirements of the Securities Act and (iv) if the proposed transfer is being made prior to the expiration of the Restricted Period, the transfer is not being made to a 

  

 B-1 

 
U.S. Person or for the account or benefit of a U.S. Person (other than an Initial Purchaser). Upon consummation of the proposed transfer in accordance with
the terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to the restrictions on Transfer enumerated in the Private Placement Legend printed on the Regulation S Global Note, the Temporary Regulation S Global
Note and/or the Definitive Note and in the Indenture and the Securities Act. 
  
 3.  ̈ Check and complete if Transferee will take delivery of a beneficial interest in the IAI Global Note
or a Definitive Note pursuant to any provision of the Securities Act other than Rule 144A or Regulation S. The Transfer is being effected in compliance with the transfer restrictions applicable to beneficial interests in Restricted Global
Notes and Restricted Definitive Notes and pursuant to and in accordance with the Securities Act and any applicable blue sky securities laws of any state of the United States, and accordingly the Transferor hereby further certifies that (check one):

  
 (a)  ̈ such Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act; 
  
 or 
  
 (b)  ̈ such Transfer is being
effected to the Company or a subsidiary thereof; 
  
 or 

 
 (c)  ̈ such Transfer is being effected pursuant to an effective registration statement under the Securities Act and in compliance with the prospectus delivery requirements of the
Securities Act; 
  
 or 
  
 (d)  ̈ such Transfer is being effected to an Institutional Accredited Investor and pursuant to an exemption from the registration requirements of the Securities Act other than Rule 144A,
Rule 144 or Rule 904, and the Transferor hereby further certifies that it has not engaged in any general solicitation within the meaning of Regulation D under the Securities Act and the Transfer complies with the transfer restrictions applicable to
beneficial interests in a Restricted Global Note or Restricted Definitive Notes and the requirements of the exemption claimed, which certification is supported by (1) a certificate executed by the Transferee in the form of Exhibit D to the Indenture
and (2) if such Transfer is in respect of a principal amount of Notes at the time of transfer of less than $250,000, an Opinion of Counsel provided by the Transferor or the Transferee (a copy of which the Transferor has attached to this
certification), to the effect that such Transfer is in compliance with the Securities Act. Upon consummation of the proposed transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will be
subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the IAI Global Note and/or the Definitive Notes and in the Indenture and the Securities Act. 
  
 4.  ̈ Check if
Transferee will take delivery of a beneficial interest in an Unrestricted Global Note or of an Unrestricted Definitive Note. 
  
 (a)  ̈ Check if Transfer is pursuant to Rule
144. (i) The Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any state of
the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement 

  

 B-2 

 
Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of
the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on Restricted Definitive Notes and in
the Indenture. 
  
 (b)  ̈ Check if Transfer is Pursuant to Regulation S. (i) The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and in
compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any state of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are
not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on Restricted Definitive Notes and in the Indenture. 
  

(c)  ̈ Check if Transfer is Pursuant to
Other Exemption. (i) The Transfer is being effected pursuant to and in compliance with an exemption from the registration requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky securities laws of any State of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will not be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global Notes or Restricted Definitive Notes and in the Indenture. 
  
 This certificate and the statements contained herein are made for your benefit and the benefit of the Company. 
  

	  

	[Insert Name of Transferor]
		
	By:	 	 
	 	

	   Name:

	   Title:

  
 Dated:
                                        

  

 B-3 

 ANNEX A TO CERTIFICATE OF TRANSFER 
  

	1.	The Transferor owns and proposes to transfer the following: 

  
 [CHECK ONE OF (a) OR (b)] 
  
 (a)  ̈ a beneficial interest in the: 

 
 (i)     ̈ 144A Global Note (CUSIP                 ), or 
  
 (ii)    ̈ Regulation S Global Note (CUSIP                 ), or 
  
 (iii)   ̈ IAI Global Note (CUSIP                 ); or 
  
 (b)  ̈ a Restricted Definitive Note. 
  

	2.	After the Transfer the Transferee will hold: 

  
 [CHECK ONE] 
  
 (a)  ̈ a beneficial interest in the: 

 
 (i)     ̈ 144A Global Note (CUSIP                 ), or 
  
 (ii)    ̈ Regulation S Global Note (CUSIP                 ), or 
  
 (iii)   ̈ IAI Global Note (CUSIP                 ); or 
  
 (iv)   ̈ Unrestricted Global Note (CUSIP                 ); or 
  
 (b)  ̈ a Restricted Definitive Note; or 
  
 (c)  ̈ an Unrestricted Definitive Note, 
  
 in accordance with the terms of the Indenture. 
  

 B-4 

 EXHIBIT C 
  

FORM OF CERTIFICATE OF EXCHANGE 
  
 LBI Media Holdings, Inc. 
 1845 West Empire Avenue 
 Burbank, CA 91504 
  
 U.S. Bank National Association 
 1420 Fifth Avenue, 7th Floor 
 Seattle, WA 98101 
  
 Re: 11% Senior Discount Notes due 2013 
  
 (CUSIP) 
  
 Reference is hereby made to the Indenture, dated as of October 10, 2003 (the “Indenture”), between LBI Media Holdings, Inc., a Delaware
corporation, as issuer (the “Company”), and U.S. Bank National Association, a national banking association, as Trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture. 
  
                                       
      , (the “Owner”) owns and proposes to exchange the Note[s] or interest in such Note[s] specified herein, in the principal amount of
$                         in such Note[s] or interests (the “Exchange”). In connection with the Exchange,
the Owner hereby certifies that: 
  
 1. Exchange of
Restricted Definitive Notes or Beneficial Interests in a Restricted Global Note for Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global Note 
  
 (a)  ̈ Check if
Exchange is from beneficial interest in a Restricted Global Note to beneficial interest in an Unrestricted Global Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a beneficial interest
in an Unrestricted Global Note in an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Global Notes and pursuant to and in accordance with the Securities Act of 1933, as amended (the “Securities Act”), (iii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest in an Unrestricted Global Note is being acquired in compliance with any applicable blue sky securities laws of any state of
the United States. 
  
 (b)  ̈ Check if Exchange is from beneficial interest in a Restricted Global Note to Unrestricted Definitive Note. In connection with the Exchange of the Owner’s beneficial
interest in a Restricted Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the Definitive Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with
the transfer restrictions applicable to the Restricted Global Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order
to maintain compliance with the Securities Act and (iv) the Definitive Note is being acquired in compliance with any applicable blue sky securities laws of any state of the United States. 
  
 (c)  ̈ Check if
Exchange is from Restricted Definitive Note to beneficial interest in an Unrestricted Global Note. In connection with the Owner’s Exchange of a Restricted Definitive Note for 

  

 C-1 

 
a beneficial interest in an Unrestricted Global Note, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own
account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest is being acquired in compliance with any applicable blue sky securities laws of any
state of the United States. 
  
 (d)  ̈ Check if Exchange is from Restricted Definitive Note to Unrestricted Definitive Note. In connection with the Owner’s Exchange of a Restricted Definitive Note
for an Unrestricted Definitive Note, the Owner hereby certifies (i) the Unrestricted Definitive Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the Unrestricted Definitive Note is being acquired in compliance with any applicable blue sky securities laws of any state of the United States. 
  
 2. Exchange of Restricted Definitive Notes or Beneficial Interests in
Restricted Global Notes for Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes 
  
 (a)  ̈ Check if Exchange is from beneficial
interest in a Restricted Global Note to Restricted Definitive Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a Restricted Definitive Note with an equal principal amount, the Owner
hereby certifies that the Restricted Definitive Note is being acquired for the Owner’s own account without transfer. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the Restricted Definitive Note issued
will continue to be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Definitive Note and in the Indenture and the Securities Act. 
  
 (b)  ̈ Check if Exchange is from Restricted Definitive Note to beneficial interest in a Restricted Global Note. In connection with the Exchange of the Owner’s Restricted Definitive Note for a beneficial interest
in the [CHECK ONE]  ̈ 144A Global Note,  ̈ Regulation S Global Note,  ̈ IAI Global Note with an equal principal amount, the Owner hereby certifies (i) the beneficial interest is
being acquired for the Owner’s own account without transfer and (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and pursuant to and in accordance with the Securities
Act, and in compliance with any applicable blue sky securities laws of any state of the United States. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the beneficial interest issued will be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on the relevant Restricted Global Note and in the Indenture and the Securities Act. 
  

 C-2 

 This certificate and the statements contained herein are made for your benefit and the benefit of the
Company. 
  

	  

	[Insert Name of Transferor]
		
	By:	 	 
	 	

	   Name:

	   Title:

  
 Dated:
                                        

  

 C-3 

 EXHIBIT D 
  

FORM OF CERTIFICATE FROM 
 ACQUIRING
INSTITUTIONAL ACCREDITED INVESTOR 
  
 LBI Media
Holdings, Inc. 
 1845 West Empire Avenue 
 Burbank, CA 91504 
  
 U.S. Bank National Association 
 1420 Fifth Avenue, 7th Floor 
 Seattle, WA 98101 
  
 Re: 11% Senior Discount Notes due 2013 
  
 Reference is hereby made to the Indenture, dated as of October 10, 2003 (the “Indenture”), between LBI Media Holdings, Inc., a Delaware
corporation, as issuer (the “Company”), and U.S. Bank National Association, a national banking association, as Trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture. 
  
 In connection with our proposed purchase of
$                     aggregate principal amount of: 
  

(a)  ̈            a beneficial interest in a Global Note, or 
  
 (b)  ̈            a Definitive Note, 
  
 we confirm that: 
  
 1. We understand that any subsequent transfer of the Notes or any interest therein is subject to certain restrictions and conditions set forth in the
Indenture and the undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Notes or any interest therein except in compliance with, such restrictions and conditions and the Securities Act of 1933, as amended (the
“Securities Act”). 
  
 2. We understand that the
offer and sale of the Notes have not been registered under the Securities Act, and that the Notes and any interest therein may not be offered or sold except as permitted in the following sentence. We agree, on our own behalf and on behalf of any
accounts for which we are acting as hereinafter stated, that if we should sell the Notes or any interest therein, we will do so only (A) to the Company or any subsidiary thereof, (B) in accordance with Rule 144A under the Securities Act to a
“qualified institutional buyer” (as defined therein), (C) to an institutional “accredited investor” (as defined below) that, prior to such transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer) to you and to
the Company a signed letter substantially in the form of this letter and, if such transfer is in respect of a principal amount of Notes, at the time of transfer of less than $250,000, an Opinion of Counsel in form reasonably acceptable to the
Company to the effect that such transfer is in compliance with the Securities Act, (D) outside the United States in accordance with Rule 904 of Regulation S under the Securities Act, (E) pursuant to the provisions of Rule 144(k) under the Securities
Act or (F) pursuant to an effective registration statement under the Securities Act, and we further agree to provide to any person purchasing the Definitive Note or beneficial interest in a Global Note from us in a transaction meeting the
requirements of clauses (A) through (E) of this paragraph a notice advising such purchaser that resales thereof are restricted as stated herein. 
  
 3. We understand that, on any proposed resale of the Notes or beneficial interest therein, we will be required to furnish to you and the Company such
certifications, legal opinions and other information as you and the Company may reasonably require to confirm that the proposed sale complies 

  

 D-1 

 
with the foregoing restrictions. We further understand that the Notes purchased by us will bear a legend to the foregoing effect. 
  
 4. We are an institutional “accredited investor” (as defined in
Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of our investment in the Notes, and we and any
accounts for which we are acting are each able to bear the economic risk of our or its investment. 
  
 5. We are acquiring the Notes or beneficial interest therein purchased by us for our own account or for one or more accounts (each of which is an
institutional “accredited investor”) as to each of which we exercise sole investment discretion. 
  
 You and the Company 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. 
  

	  

	[Insert Name of Accredited Investor]
		
	By:	 	 
	 	

	   Name:

	   Title:

  
 Dated:
                                        

  

 D-2

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