Document:

EX-10.1

 

EXECUTED COPY

Exhibit 10.1

$250,000,000

FIVE-YEAR CREDIT AGREEMENT

Dated April 15, 2005

among

HEARST-ARGYLE TELEVISION, INC.

as Borrower

THE LENDERS PARTY HERETO

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

BANK OF AMERICA, N.A. and

WACHOVIA BANK, NATIONAL ASSOCIATION

as Co-Syndication Agents

HARRIS NESBITT and

BNP PARIBAS

as Co-Documentation Agents

	 	 	 
	J.P. MORGAN SECURITIES INC.

	 	BANC OF AMERICA SECURITIES LLC

As Joint Bookrunners and Joint Lead Arrangers

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01. Defined Terms
	 	 	1	 
	SECTION 1.02. Classification of Loans and Borrowings
	 	 	18	 
	SECTION 1.03. Terms Generally
	 	 	18	 
	SECTION 1.04. Accounting Terms; GAAP
	 	 	19	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	THE CREDITS
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01. The Commitments
	 	 	19	 
	SECTION 2.02. Loans and Borrowings
	 	 	19	 
	SECTION 2.03. Requests for Borrowings
	 	 	20	 
	SECTION 2.04. Incremental Commitments
	 	 	21	 
	SECTION 2.05. Swingline Loans
	 	 	22	 
	SECTION 2.06. Letters of Credit
	 	 	24	 
	SECTION 2.07. Funding of Borrowings
	 	 	28	 
	SECTION 2.08. Interest Elections
	 	 	29	 
	SECTION 2.09. Termination and Reduction of the Commitments
	 	 	30	 
	SECTION 2.10. Repayment of Loans; Evidence of Debt
	 	 	30	 
	SECTION 2.11. Prepayment of Loans
	 	 	31	 
	SECTION 2.12. Fees
	 	 	32	 
	SECTION 2.13. Interest
	 	 	33	 
	SECTION 2.14. Alternate Rate of Interest
	 	 	34	 
	SECTION 2.15. Increased Costs
	 	 	35	 
	SECTION 2.16. Break Funding Payments
	 	 	36	 
	SECTION 2.17. Taxes
	 	 	36	 
	SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	37	 
	SECTION 2.19. Mitigation Obligations; Replacement of Lenders
	 	 	39	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01. Organization; Powers
	 	 	40	 
	SECTION 3.02. Authorization; Enforceability
	 	 	40	 
	SECTION 3.03. Governmental Approvals; No Conflicts
	 	 	40	 
	SECTION 3.04. Financial Condition; No Material Adverse Change; Solvency
	 	 	40	 

(i)

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 3.05. Properties
	 	 	41	 
	SECTION 3.06. Litigation and Environmental Matters
	 	 	41	 
	SECTION 3.07. Compliance with Laws and Agreements
	 	 	41	 
	SECTION 3.08. Investment and Holding Company Status
	 	 	42	 
	SECTION 3.09. Taxes
	 	 	42	 
	SECTION 3.10. ERISA
	 	 	42	 
	SECTION 3.11. Disclosure
	 	 	42	 
	SECTION 3.12. Use of Credit
	 	 	43	 
	SECTION 3.13. Material Debt Agreements and Liens
	 	 	43	 
	SECTION 3.14. Subsidiaries
	 	 	43	 
	SECTION 3.15. Station Licenses
	 	 	44	 
	SECTION 3.16. Senior Debt Status
	 	 	44	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	CONDITIONS
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01. Effective Date
	 	 	44	 
	SECTION 4.02. Each Credit Event
	 	 	45	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	AFFIRMATIVE COVENANTS
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01. Financial Statements and Other Information
	 	 	46	 
	SECTION 5.02. Notices of Material Events
	 	 	47	 
	SECTION 5.03. Existence; Conduct of Business
	 	 	48	 
	SECTION 5.04. Payment of Obligations
	 	 	48	 
	SECTION 5.05. Maintenance of Properties; Insurance
	 	 	48	 
	SECTION 5.06. Books and Records; Inspection Rights
	 	 	48	 
	SECTION 5.07. Compliance with Laws
	 	 	49	 
	SECTION 5.08. Use of Proceeds
	 	 	49	 
	SECTION 5.09. Certain Obligations Respecting Subsidiaries
	 	 	49	 
	SECTION 5.10. Senior Debt Status
	 	 	49	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	NEGATIVE COVENANTS
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01. Indebtedness
	 	 	50	 
	SECTION 6.02. Liens
	 	 	51	 
	SECTION 6.03. Fundamental Changes
	 	 	51	 
	SECTION 6.04. Lines of Business
	 	 	52	 
	SECTION 6.05. Restricted Payments
	 	 	52	 
	SECTION 6.06. Transactions with Affiliates
	 	 	53	 
	SECTION 6.07. Restrictive Agreements
	 	 	53	 
	SECTION 6.08. Modifications of Certain Documents
	 	 	54	 

(ii)

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 6.09. Fiscal Year
	 	 	54	 
	SECTION 6.10. Certain Financial Covenants
	 	 	54	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	EVENTS OF DEFAULT
	 	 	 	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	 
	THE ADMINISTRATIVE AGENT
	 	 	 	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	 
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.01. Notices
	 	 	59	 
	SECTION 9.02. Waivers; Amendments
	 	 	60	 
	SECTION 9.03. Expenses; Indemnity; Damage Waiver
	 	 	61	 
	SECTION 9.04. Successors and Assigns
	 	 	62	 
	SECTION 9.05. Survival
	 	 	65	 
	SECTION 9.06. Counterparts; Integration; Effectiveness
	 	 	65	 
	SECTION 9.07. Severability
	 	 	66	 
	SECTION 9.08. Right of Setoff
	 	 	66	 
	SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process
	 	 	66	 
	SECTION 9.10. WAIVER OF JURY TRIAL
	 	 	67	 
	SECTION 9.11. Headings
	 	 	67	 
	SECTION 9.12. Treatment of Certain Information; Confidentiality
	 	 	67	 
	SECTION 9.13. USA Patriot Act
	 	 	68	 

(iii)

 

	 	 	 
	SCHEDULE 2.01

	 	- Commitments
	SCHEDULE 3.13

	 	- Material Debt Agreements and Liens
	SCHEDULE 3.14

	 	- Subsidiaries
	SCHEDULE 6.06

	 	- Certain Affiliate Transactions
	 
	 	 
	EXHIBIT A

	 	- Form of Assignment and Assumption
	EXHIBIT B

	 	- Form of Opinion of Counsel to the Borrower

(iv)

 

 

     FIVE-YEAR CREDIT AGREEMENT dated as of April 15, 2005, among
HEARST-ARGYLE TELEVISION, INC.; the LENDERS party hereto; BANK OF
AMERICA, N.A., and WACHOVIA BANK, NATIONAL ASSOCIATION as
Co-Syndication Agents; HARRIS NESBITT and BNP PARIBAS as
Co-Documentation Agents; and JPMORGAN CHASE BANK, N.A., as
Administrative Agent.

          The Borrower (such term and each other capitalized term used in the preamble or this
introductory paragraph having the meaning specified in Article I) has requested that (a) the
Lenders extend credit to it in the form of Revolving Loans in an aggregate principal amount at any
time outstanding not in excess of $250,000,000, less the LC Exposure and the Swingline Exposure at
such time, (b) the Swingline Lender extend credit to it in the form of Swingline Loans in an
aggregate principal amount at any time outstanding not in excess of $25,000,000 and (c) the Issuing
Lender issue Letters of Credit in an aggregate face amount at any time outstanding not in excess of
$50,000,000. The Lenders, the Swingline Lender and the Issuing Lender are willing to extend such
credit to the Borrower on the terms and subject to the conditions set forth herein. Accordingly,
the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

          SECTION 1.01. Defined Terms. As used in this Agreement, the following terms have the
meanings specified below:

          “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to
the Alternate Base Rate.

          “Acquisition” means an acquisition of additional television broadcasting stations,
additional broadcast industry related assets or other assets or businesses pursuant to a merger or
consolidation, a purchase of stock or assets or the entering into of an LMA Arrangement.

          “Additional Borrower Indebtedness” means Indebtedness of the Borrower incurred in
accordance with the provisions of Section 6.01(g).

          “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, an interest rate per annum equal to (a) the LIBO Rate for such Interest Period multiplied
by (b) the Statutory Reserve Rate.

          “Administrative Agent” means JPMCB, in its capacity as administrative agent for the
Lenders hereunder.

          “Administrative Agent Fee Letter” means the Administrative Agent Fee Letter dated
December 17, 2004 between the Administrative Agent and the Borrower.

 

 

          “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Administrative Agent.

          “Affiliate” means, with respect to a specified Person, another Person that directly,
or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

          “Alternate Base Rate” means, for any day, a rate per annum equal to the greater of (a)
the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day
plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

          “Applicable Margin” means, with respect to any ABR Loan (including any Swingline Loan)
or Eurodollar Loan (except as otherwise provided in any Incremental Credit Agreement with respect
to any Incremental Term Loan), or with respect to the commitment fees payable hereunder, as the
case may be, the applicable rate per annum set forth below under the caption “ABR Loans”,
“Eurodollar Loans” or “Commitment Fee”, as the case may be, based upon the Leverage Ratio as at the
last day of the fiscal quarter most recently ended as to which the Borrower has delivered financial
statements pursuant to Section 5.01 (or, prior to the delivery of the first of such statements
after the Effective Date, upon the Leverage Ratio set forth in the certificate of a Financial
Officer delivered pursuant to Section 4.01(e)):

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Leverage Ratio	 	 	Eurodollar Loans	 	 	 	ABR Loans	 	 	 	Commitment Fee	 	 
	 	Less than or equal to
1.5 to 1.0
	 	 	 	0.500	%	 	 	 	0.000	%	 	 	 	0.150	%	 
	 	Less than or equal to
2.5 to 1.0 but greater
than 1.5 to 1.0
	 	 	 	0.625	%	 	 	 	0.000	%	 	 	 	0.150	%	 
	 	Less than or equal to
3.5 to 1.0 but greater
than 2.5 to 1.0
	 	 	 	0.750	%	 	 	 	0.000	%	 	 	 	0.175	%	 
	 	Less than 4.5 to 1.0
but greater than 3.5
to 1.0
	 	 	 	0.875	%	 	 	 	0.000	%	 	 	 	0.200	%	 
	 	Greater than or equal
to 4.5 to 1.0
	 	 	 	1.000	%	 	 	 	0.000	%	 	 	 	0.250	%	 
	 

          Each change in the “Applicable Margin” based upon any change in the Leverage Ratio shall
become effective for purposes of the accrual of interest and commitment fees hereunder (including
in respect of all then-outstanding Loans and Commitments) on the date three Business Days after the
delivery to the Administrative Agent of the financial statements of the Borrower and its
Subsidiaries indicating such change pursuant to Section 5.01, and shall remain effective for such
purpose until three Business Days after the next delivery of such financial statements to the
Administrative Agent hereunder; provided that, notwithstanding the foregoing, the
Applicable Margin shall be the highest rates provided for in the above schedule

 

 

for any period during which the Borrower shall be in default of its obligation to deliver
financial statements for any fiscal period by the times specified in Section 5.01 (but upon the
cure or waiver of any such Default, this proviso shall no longer be applicable until another such
Default shall occur).

          “Applicable Percentage” means, with respect to any Revolving Lender, the percentage of
the total Revolving Commitments represented by such Lender’s Revolving Commitment. If the
Revolving Commitments have terminated or expired, the Applicable Percentages shall be determined
based upon the Revolving Commitments most recently in effect, giving effect to any assignments.

          “Arrangement Fee Letter” means the Arrangement Fee Letter dated December 17, 2004
between the Arrangers and the Borrower.

          “Arrangers” means J.P. Morgan Securities Inc. and Banc of America Securities LLC.

          “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and a permitted assignee (with the consent of the party or parties whose consent is required
by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other
form approved by the Administrative Agent.

          “Board” means the Board of Governors of the Federal Reserve System of the United
States of America.

          “Borrower” means Hearst-Argyle Television, Inc., a Delaware corporation.

          “Borrowing” means (a) Loans of the same Class and Type made, converted or continued on
the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in
effect or (b) a Swingline Loan.

          “Borrowing Request” means a request by the Borrower for a Borrowing in accordance with
Section 2.03.

          “Broadcast Cash Flow” means, for any period, the EBITDA for such period plus
Corporate Overhead for such period.

          “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed;
provided that, when used in connection with a Eurodollar Loan, the term “Business Day”
shall also exclude any day on which banks are not open for dealings in dollar deposits in the
London interbank market.

          “Capital Lease Obligations” of any Person means the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP, and

 

 

the amount of such obligations shall be the capitalized amount thereof determined in
accordance with GAAP.

          “Change of Control” means that (a) an aggregate of at least 35% of the outstanding
shares of capital stock of the Borrower shall cease to be owned beneficially by (i) Hearst and (ii)
all “Permitted Transferees” under and as defined in the Amended and Restated Certificate of
Incorporation of the Borrower as in effect on the date hereof or (b) Hearst and such “Permitted
Transferees”, collectively, shall cease to be able to elect a majority of the members of the Board
of Directors of the Borrower (or such greater number of the members of such Board of Directors as
shall be necessary, under the Certificate of Incorporation and by-laws of the Borrower, to approve
all actions requiring approval of such Board of Directors assuming full attendance by all members
of such Board of Directors at a meeting thereof).

          “Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender or the Issuing Lender (or, for purposes of Section 2.15(b), by any lending
office of such Lender or by such Lender’s or the Issuing Lender’s holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any Governmental
Authority with which, if the same does not have the force of law, such Lender or the Issuing Lender
believes in good faith that it would be disadvantageous not to comply, in each case made or issued
after the date of this Agreement.

          “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Loans, Incremental Term Loans (with the
Incremental Term Loans made on any one date to constitute a separate Class) or Swingline Loans and,
when used in reference to any Commitment, refers to whether such Commitment is a Revolving
Commitment or an Incremental Term Commitment.

          “Code” means the Internal Revenue Code of 1986, as amended from time to time.

          “Commitment” means a Revolving Commitment or an Incremental Term Commitment, or any
combination thereof (as the context requires).

          “Consolidated Net Income” for any period means the net income of the Borrower and its
Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP,
excluding:

     (a) the proceeds of any life insurance policy,

     (b) any gains arising from (i) the sale or other disposition of any assets (other than
current assets) to the extent that the aggregate amount of the gains during such period
exceeds the aggregate amount of the losses during such period from the sale, abandonment or
other disposition of assets (other than current assets), (ii) any write-up of assets or
(iii) the acquisition of outstanding securities of the Borrower or any Subsidiary,

     (c) any amount representing any interest in the undistributed earnings of any other
Person (other than a Subsidiary),

 

 

     (d) any earnings, prior to the date of acquisition, of any Person acquired in any
manner, and any earnings of any Subsidiary prior to its becoming a Subsidiary,

     (e) any earnings of a successor to or transferee of the assets of the Borrower prior to
its becoming such successor or transferee,

     (f) any deferred credit (or amortization of a deferred credit) arising from the
acquisition of any Person, and

     (g) any extraordinary gains not covered by clause (b) above.

          “Consolidated Net Worth” means, at any date, on a consolidated basis without
duplication for the Borrower and its Subsidiaries, (a) the sum of (i) capital stock taken at par or
stated value plus (ii) capital in excess of par or stated value relating to capital stock plus
(iii) retained earnings (or minus any retained earnings deficit) minus (b) the sum of treasury
stock, capital stock subscribed for and unissued and other contra-equity accounts, all determined
in accordance with GAAP.

          “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

          “Convertible Junior Subordinated Debentures” means the 7.5% Convertible Junior
Subordinated Deferrable Interest Debentures of the Company outstanding on the date hereof in an
amount not exceeding $206,185,601 issued to Hearst-Argyle Trust.

          “Convertible Junior Subordinated Debentures Indenture” means the Indenture dated as of
December 20, 2001 between the Borrower and Wilmington Trust Company.

          “Corporate Overhead” means, for any period, all amounts paid or incurred by the
Borrower and its Subsidiaries (determined on a consolidated basis) during such period in respect of
all items of general corporate overhead and administrative expenses and the like, including (a) all
such amounts paid or payable to any Affiliate of the Borrower other than any Subsidiary and (b) all
Management Fees.

          “Declaration of Trust” means the Amended and Restated Declaration of Trust dated as of
December 20, 2001 between the Hearst-Argyle Trust and the trustees named therein.

          “Default” means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

          “Dividend Payment” means dividends (in cash, property or obligations) on, or other
payments or distributions on account of, or the setting apart of money for a sinking or other
analogous fund for, or the purchase, redemption, retirement or other acquisition of, any shares of
any class of stock of the Borrower or of any warrants, options or other rights to acquire the same
(or, other than in respect of employee compensation arrangements entered into in the ordinary

 

 

course of business, to make any payments to any Person, such as “phantom stock” payments,
where the amount thereof is calculated with reference to the fair market or equity value of the
Borrower or any of its Subsidiaries), but excluding dividends payable solely in shares of any class
of capital stock of the Borrower (other than capital stock that is redeemable prior to the Maturity
Date).

          “dollars” or “$” refers to lawful money of the United States of America.

          “EBITDA” means, for any period, the net income (loss) of the Company and the
Subsidiaries for such period (determined on a consolidated basis by reference to GAAP)
plus, to the extent deducted in computing such consolidated net income for such period, the
sum (without duplication) of (a) consolidated net interest expense (including net interest expense
payable to the Hearst-Argyle Capital Trust), (b) consolidated income tax expense, (c) depreciation
and amortization expense (excluding amortization of program rights), (d) extraordinary or
non-recurring expenses or losses and (e) equity in the net loss of affiliates in which the Borrower
holds a minority interest, minus, to the extent included in computing such consolidated net
income for such period, equity in the net income of affiliates in which the Borrower holds a
minority interest. If during any period for which EBITDA is being determined the Borrower or any
Subsidiary shall have made any Acquisition, then, for all purposes of this Agreement, EBITDA shall
be determined on a pro forma basis for such period as if the relevant Acquisition had been made or
consummated on the first day of such period.

          “Effective Date” means the date on which the conditions specified in Section 4.01 are
satisfied (or waived in accordance with Section 9.02).

          “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into
by any Governmental Authority, relating in any way to the environment, preservation or reclamation
of natural resources, the management, release or threatened release of any Hazardous Material or to
health and safety matters.

          “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the
Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any
Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any contract, agreement
or other consensual arrangement pursuant to which liability is assumed or imposed with respect to
any of the foregoing.

          “Equity Rights” means, with respect to any Person, any subscriptions, options,
warrants, commitments, preemptive rights or agreements of any kind (including any stockholders’ or
voting trust agreements) for the issuance, sale, registration or voting of, or securities
convertible into, any additional shares of capital stock of any class, or partnership or other
ownership interests of any type in, such Person.

 

 

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time.

          “ERISA Affiliate” means any trade or business (whether or not incorporated) that,
together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the
Code, or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a
single employer under Section 414 of the Code.

          “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived;
(c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application
for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the
Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to
the termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC
or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to
appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or of a determination that a Multiemployer Plan
is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

          “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

          “Event of Default” has the meaning assigned to such term in Article VII.

          “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the
Issuing Lender or any other recipient of any payment to be made by or on account of any obligation
of the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income
by the United States of America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any Lender, in which its
applicable lending office is located, (b) any branch profits tax or any similar tax imposed by any
jurisdiction referred to in the preceding clause (a), and (c) in the case of a Foreign Lender
(other than an assignee pursuant to a request by the Borrower under Section 2.19(b)), any
withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign
Lender becomes a party to this Agreement or is attributable to such Foreign Lender’s failure or
inability to comply with Section 2.17(e), except to the extent that such Foreign Lender’s assignor
(if any) was entitled, at the time of assignment, to receive additional amounts from the Borrower
with respect to such withholding tax pursuant to Section 2.17(a).

 

 

          “Existing Senior Debt” means, collectively, the Private Placement Debt, Indebtedness
evidenced by the Senior Notes and the Indebtedness evidenced by the Senior Debentures.

          “FCC” means the Federal Communications Commission or any governmental authority
substituted therefor.

          “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average (rounded upwards, if

necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

          “Fee Letters” means the Administrative Agent Fee Letter and the Arrangement Fee
Letter.

          “Film Obligations” means obligations in respect of the purchase, use, license or
acquisition of programs, programming materials, films and similar assets used in connection with
the business and operation of the Borrower and its Subsidiaries.

          “Financial Officer” means the chief financial officer, vice-president of finance,
principal accounting officer, treasurer or controller of the Borrower.

          “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than the United States of America, any State thereof or the District of Columbia.

          “GAAP” means, subject to the terms of Section 1.04 hereof, generally accepted
accounting principles in the United States of America.

          “Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

          “Guarantee” means a guarantee, an endorsement, a contingent agreement to purchase or
to furnish funds for the payment or maintenance of, or otherwise to be or become contingently
liable under or with respect to, the Indebtedness, other obligations, net worth, working capital or
earnings of any Person, or a guarantee of the payment of dividends or other distributions upon the
stock or equity interests of any Person, or an agreement to purchase, sell or lease (as lessee or
lessor) property, products, materials, supplies or services primarily for the purpose of enabling a
debtor to make payment of such debtor’s obligations or an agreement to assure a creditor against
loss, and including causing a bank or other financial institution to issue a letter of credit or
other similar instrument for the benefit of another Person, but excluding (a)

 

 

endorsements for collection or deposit in the ordinary course of business and (b) typical and
customary indemnification obligations, and representations and warranties, made in connection with
the purchase or sale of property or the issuance of securities. The terms “Guarantee” and
“Guaranteed”, when used as verbs, shall have correlative meanings.

          “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.

          “Hearst” means The Hearst Corporation, a Delaware corporation.

          “Hearst-Argyle Trust” means Hearst-Argyle Capital Trust, a Delaware statutory business
trust and wholly owned unconsolidated Subsidiary of the Borrower.

          “Hearst-Argyle Trust Common Securities” means Hearst-Argyle Trust’s Common Securities.

          “Hearst-Argyle Trust Preferred Securities” means Hearst-Argyle Trust’s 7.5%
Convertible Preferred Securities.

          “Hedging Agreement” means any interest rate protection agreement, foreign currency
exchange agreement, commodity price protection agreement, equity derivative or other interest or
currency exchange rate or commodity price hedging arrangement.

          “Incremental Commitment” means an Incremental Revolving Commitment or an Incremental
Term Commitment, or any combination thereof (as the context requires).

          “Incremental Credit Agreement” shall mean an Incremental Credit Agreement, in form and
substance reasonably satisfactory to the Borrower and the Administrative Agent, among the Borrower,
the Administrative Agent and one or more Incremental Revolving Lenders or Incremental Term Lenders,
as applicable.

          “Incremental Lender” means a Lender with an Incremental Commitment.

          “Incremental Revolving Commitment” means a commitment of any Lender, established
pursuant to Section 2.04, to make Revolving Loans and to acquire participations in Letters of
Credit and Swingline Loans hereunder.

          “Incremental Revolving Lender” means a Lender with an Incremental Revolving
Commitment.

          “Incremental Term Commitment” means a commitment of any Lender, established pursuant
to Section 2.04, to make Incremental Term Loans to the Borrower.

          “Incremental Term Lender” means a Lender with an Incremental Term Commitment or an
outstanding Incremental Term Loan.

 

 

          “Incremental Term Loan” means a Loan made pursuant to clause (b) of Section 2.01.

          “Indebtedness” means, for any Person, the sum (determined on a consolidated basis
without duplication in accordance with GAAP) of the following: (a) obligations created, issued or
incurred by such Person for borrowed money (whether by loan, the issuance and sale of debt
securities or the sale of property to another Person subject to an understanding or agreement,
contingent or otherwise, to repurchase such Property from such Person); (b) obligations of such
Person to pay the deferred purchase or acquisition price of property or services, other than trade
accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the
ordinary course of business so long as such trade accounts payable are payable within 180 days of
the date the respective goods are delivered or the respective services are rendered; (c)
Indebtedness of others secured by a Lien on the property of such Person, whether or not the
respective indebtedness so secured has been assumed by such Person; (d) obligations of such Person
in respect of letters of credit or similar instruments issued or accepted by banks and other
financial institutions for account of such Person; (e) Capital Lease Obligations of such Person;
and (f) Indebtedness of others Guaranteed by such Person; provided that, such term shall
not in any event include (i) for all purposes of this Agreement, the first $200,000,000 principal
amount of obligations of the Borrower and Hearst-Argyle Trust arising under or in respect of the
Preferred Security Agreements, including the Convertible Junior Subordinated Debentures, (ii)
contingent consideration payable in connection with an Acquisition where, as of the date of
determination, the contingency requiring payment of such consideration is unlikely to occur (except
that in any event any such contingent consideration required to be carried as a liability on a
balance sheet of the Borrower and its Subsidiaries, or required to be disclosed in a footnote to
such balance sheet, shall constitute Indebtedness), (iii) obligations under Hedging Agreements,
(iv) Film Obligations or (v) obligations in respect of letters of credit or surety bonds issued in
connection with fiduciary or fidelity obligations of or with respect to such Person in the ordinary
course of business.

          The Indebtedness of any Person shall include the Indebtedness of any other entity (including
any partnership in which such Person is a general partner) to the extent such Person is liable
therefor as a result of such Person’s ownership interest in or other relationship with such entity,
except to the extent the terms of such Indebtedness provide that such Person is not liable
therefor.

          “Indemnified Taxes” means Taxes other than Excluded Taxes.

          “Information Memorandum” means the Confidential Information Memorandum dated April,
2005, prepared in connection with the syndication to the Lenders of the initial Revolving
Commitments under this Agreement.

          “Interest Coverage Ratio” means, for any period, the ratio of (a) EBITDA for such
period to (b) Interest Expense for such period.

          “Interest Election Request” means a request by the Borrower to convert or continue a
Borrowing in accordance with Section 2.08.

 

 

          “Interest Expense” means, for any period, the sum for the Borrower and its
Subsidiaries during such period (determined on a consolidated basis without duplication in
accordance with GAAP) of the following: (a) all interest in respect of Indebtedness (including the
interest component of any payments in respect of Capital Lease Obligations, but excluding any
capitalized financing fees) accrued or capitalized during such period (whether or not actually paid
during such period), plus (b) all interest in respect of obligations arising under the
Preferred Security Agreements, including the Convertible Junior Subordinated Debentures,
plus (c) the net amount payable (or minus the net amount receivable) under Hedging
Agreements during such period (whether or not actually paid or received during such period),
minus all interest income of the Borrower and its Subsidiaries for such period.

          “Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline
Loan), each Quarterly Date, (b) with respect to any Eurodollar Loan, the last day of the Interest
Period applicable to the Borrowing of which such Eurodollar Loan is a part and, in the case of a
Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day prior to
the last day of such Interest Period that occurs at intervals of three months’ duration after the
first day of such Interest Period and (c) with respect to any Swingline Loan, the day that such
Loan is required to be repaid.

          “Interest Period” means, with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding day in the
calendar month that is one, two, three or six months (or, with the consent of each Lender
participating in such Borrowing, nine or twelve months) thereafter, as specified in the applicable
Borrowing Request or Interest Election Request; provided, that (a) if any Interest Period
would end on a day other than a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless such next succeeding Business Day would fall in the next calendar
month, in which case such Interest Period shall end on the next preceding Business Day, (b) any
Interest Period that commences on the last Business Day of a calendar month (or on a day for which
there is no numerically corresponding day in the last calendar month of such Interest Period) shall
end on the last Business Day of the last calendar month of such Interest Period and (c) no Interest
Period may end after the Maturity Date. For purposes hereof, the date of a Borrowing initially
shall be the date on which such Borrowing is made and thereafter shall be the effective date of the
most recent conversion or continuation of such Borrowing.

          “Issuing Lender” means JPMCB, in its capacity as the issuer of Letters of Credit
hereunder, and its successors in such capacity as provided in Section 2.06(j). The Issuing Lender
may, with the consent of the Borrower (not to be unreasonably withheld), arrange for one or more
Letters of Credit to be issued by Affiliates of the Issuing Lender, in which case the term “Issuing
Lender” shall include any such Affiliate with respect to Letters of Credit issued by such
Affiliate.

          “JPMCB” means JPMorgan Chase Bank, N.A.

          “LC Disbursement” means a payment made by the Issuing Lender pursuant to a Letter of
Credit.

 

 

          “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements
that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of
any Revolving Lender at any time shall be its Applicable Percentage of the total LC Exposure at
such time.

          “Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall
have become a party hereto pursuant to an Assignment and Assumption or an Incremental Credit
Agreement, other than any such Person that ceases to be a party hereto pursuant to an Assignment
and Assumption. Unless the context otherwise requires, the term “Lenders” includes each Swingline
Lender.

          “Letter of Credit” means any letter of credit issued pursuant to this Agreement.

          “Letter of Credit Documents” means, with respect to any Letter of Credit,
collectively, any application therefor and any other agreements, instruments, guarantees or other
documents (whether general in application or applicable only to such Letter of Credit) governing or
providing for the rights and obligations of the parties concerned or at risk with respect to such
Letter of Credit.

          “Leverage Ratio” means, at any date, the ratio of (a) the sum, for the Borrower and
its Subsidiaries (determined on a consolidated basis without duplication in accordance with GAAP)
of the aggregate amount of all Indebtedness as at such date to (b) EBITDA for the period of four
consecutive fiscal quarters ending on or most recently prior to such date.

          “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Page 3750 of the Telerate Screen (or on any successor or substitute page of
such Screen, or any successor to or substitute for such Screen, providing rate quotations
comparable to those currently provided on such page of such Screen, as determined by the
Administrative Agent from time to time for purposes of providing quotations of interest rates
applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period, as the rate for dollar
deposits with a maturity comparable to such Interest Period. In the event that such rate is not
available at such time for any reason, then the LIBO Rate with respect to such Eurodollar Borrowing
for such Interest Period shall be the rate at which dollar deposits of $5,000,000 and for a
maturity comparable to such Interest Period are offered by the principal London office of the
Administrative Agent in immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period.

          “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same economic effect as any of
the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call
or similar right of a third party with respect to such securities.

 

 

          “LMA Arrangement” means, with respect to any Person that owns any television
broadcasting station, (a) any so-called “local marketing agreements” or any other arrangements with
any other television broadcasting station (other than with the Borrower or another Subsidiary with
respect to one of the Stations) whereby the parties agree to function cooperatively in terms of
programming, advertising, sales, management, consulting or similar services; or (b) any so-called
“time brokerage agreements” or any other agreements or arrangements under which any Station shall
(i) sell broadcast time to any other television broadcasting station (other than to any other
Station) which programs such broadcast time and sells its own commercial advertising announcements
during such broadcast time or (ii) purchase broadcast time on any other television broadcasting
station (other than on any other Station) for the purpose of programming such broadcast time and
selling its commercial advertisements during such time.

          “Loan Documents” means, collectively, this Agreement, any promissory notes executed
and delivered by the Borrower pursuant hereto, the Letter of Credit Documents and any Incremental
Credit Agreements.

          “Loans” means the loans made by the Lenders to the Borrower pursuant to this Agreement
or any Incremental Credit Agreement.

          “Management Fees” means, for any period, any amounts paid or incurred by the Borrower
or any of its Subsidiaries to any of its Affiliates (excluding to the Borrower and its
Subsidiaries) on account of fees, salaries, administrative expenses and other compensation
(including on account of any regular, special or accrued bonuses); provided that
“Management Fees” for any period shall not include any non-cash stock option expense (or be reduced
by any non-cash stock option gain) in respect of options for the capital stock of the Borrower
issued to any of its or its Subsidiaries’ officers, directors or employees.

          “Margin Stock” means “margin stock” within the meaning of Regulations T, U and X.

          “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
property, operations, prospects or condition (financial or otherwise) of the Borrower and its
Subsidiaries taken as a whole (excluding adverse changes to prospects as a result of changes
affecting the television broadcasting industry generally), (b) the ability of the Borrower to
perform any of its obligations under this Agreement or any of the other Loan Documents or (c) the
rights of or benefits available to the Lenders under this Agreement or any of the other Loan
Documents.

          “Material Indebtedness” means Indebtedness (other than the Loans and Letters of
Credit), or obligations in respect of one or more Hedging Agreements, of any one or more of the
Borrower and its Subsidiaries in an aggregate principal amount exceeding $20,000,000. For purposes
of determining Material Indebtedness, the “principal amount” of the obligations of any
Person in respect of any Hedging Agreement at any time shall be the maximum aggregate amount
(giving effect to any netting agreements) that such Person would be required to pay if such Hedging
Agreement were terminated at such time.

 

 

          “Maturity Date” means April 15, 2010.

          “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

          “Other Taxes” means any and all present or future recording, stamp, documentary,
excise, transfer, sales, property or similar taxes, charges or levies arising from any payment made
under any Loan Document or from the execution, delivery or enforcement of, or otherwise with
respect to, any Loan Document.

          “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
and any successor entity performing similar functions.

          “Permitted Encumbrances” means:

     (a) Liens imposed by law for taxes that are not yet due or are being contested in
compliance with Section 5.04;

     (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like
Liens imposed by law, arising in the ordinary course of business and securing obligations
that are not overdue by more than 30 days or are being contested in compliance with Section
5.04;

     (c) pledges and deposits made in the ordinary course of business in compliance with
workers’ compensation, unemployment insurance and other social security laws or regulations;

     (d) deposits to secure the performance of bids, tenders, trade contracts, leases,
statutory obligations, surety and appeal bonds, performance bonds and other obligations of a
like nature, in each case in the ordinary course of business;

     (e) judgment liens in respect of judgments that do not constitute an Event of Default
under clause (k) of Article VII; and

     (f) easements, zoning restrictions, rights-of-way and similar encumbrances on real
property imposed by law or arising in the ordinary course of business that do not secure any
monetary obligations and do not materially detract from the value of the affected property
or interfere with the ordinary conduct of business of the Borrower or any Subsidiary.

          “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

          “Plan” means any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA,
and in respect of which the Borrower or any ERISA Affiliate is (or, if such plan were terminated,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

 

 

          “Preferred Securities Agreements” means collectively, the Securities Purchase
Agreement, the Declaration of Trust, the Hearst-Argyle Trust Common Securities, the Hearst-Argyle
Trust Preferred Securities, the Preferred Securities Guarantee, the Common Securities Guarantee and
the Convertible Junior Subordinated Debentures Indenture, together with such additional securities
purchase agreements or other documents having substantially identical terms as the foregoing
(except for maturity, conversion price, prepayment or redemption premiums and non-call provisions)
relating or applicable to any one or more additional series of Hearst-Argyle Trust Preferred
Securities and Convertible Junior Subordinated Debentures.

          “Preferred Securities Guarantee” means the Preferred Securities Guarantee dated as of
December 20, 2001 between the borrower and Wilmington Trust Company.

          “Prime Rate” means the rate of interest per annum publicly announced from time to time
by JPMCB as its prime rate in effect at its principal office in New York City; each change in the
Prime Rate shall be effective from and including the date such change is publicly announced as
being effective.

          “Private Placement Debt” means the Indebtedness of the Borrower in respect of its
7.18% Senior Notes due 2010, in an aggregate original principal amount of $450,000,000, which Notes
were issued by the Borrower pursuant to the several separate Note Purchase Agreements, each dated
as of December 1, 1998, between the Borrower and the purchasers referred to therein.

          “Private Placement Debt Documents” means, collectively, the senior notes evidencing
the Private Placement Debt and the several separate Note Purchase Agreements pursuant to which the
Private Placement Debt was issued.

          “Quarterly Dates” means the last Business Day of March, June, September and December
in each year, the first of which shall be the first such day after the date hereof.

          “Register” has the meaning set forth in Section 9.04.

          “Related Parties” means, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents and advisors of such Person
and such Person’s Affiliates.

          “Required Lenders” means, at any time, Lenders having Revolving Exposures, Incremental
Term Loans and unused Commitments representing more than 50% of the sum of the total Revolving
Exposures, outstanding Incremental Term Loans and unused Commitments at such time.

          “Restricted Debt Payment” means any purchase, redemption, retirement or acquisition
for value, or the setting apart of any money for a sinking, defeasance or other analogous fund for
the purchase, redemption, retirement or other acquisition of, or any voluntary payment or
prepayment of the principal of or interest on, or any other amount owing in respect of any
Subordinated Indebtedness, provided that the term “Restricted Debt Payment” shall not
include regularly scheduled payments of principal or interest in respect of Subordinated

 

 

Indebtedness to the extent required pursuant to the instruments evidencing such Subordinated
Indebtedness.

          “Restricted Payments” means, collectively, any Dividend Payment and any Restricted
Debt Payment.

          “Revolving Availability Period” means the period from and including the Effective Date
to but excluding the earlier of (a) the Maturity Date and (b) the date of termination of the
Revolving Commitments.

          “Revolving Commitment” means, with respect to each Lender, the commitment, if any, of
such Lender to make Revolving Loans and to acquire participations in Letters of Credit and
Swingline Loans hereunder, expressed as an amount representing the maximum aggregate amount of such
Lender’s Revolving Exposure hereunder, as such commitment may be (a) reduced from time to time
pursuant to Section 2.09, (b) increased from time to time pursuant to an Incremental Credit
Agreement entered into by such Lender and (c) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 9.04. The initial amount of each Lender’s
Revolving Commitment is set forth on Schedule 2.01 or in the Assignment and Assumption or
Incremental Credit Agreement pursuant to which such Lender shall have assumed or made its Revolving
Commitment, as applicable. The aggregate amount of the Lenders’ Revolving Commitments on the date
hereof is $250,000,000. Unless the context shall otherwise require, after the effectiveness of any
Incremental Revolving Commitment of any Lender, the “Revolving Commitment” of such Lender shall
include such Incremental Revolving Commitment.

          “Revolving Exposure” means, with respect to any Lender at any time, the sum of the
outstanding principal amount of such Lender’s Revolving Loans and its LC Exposure and Swingline
Exposure at such time, after giving effect to any Loans to be made or repaid on such date.

          “Revolving Lender” means a Lender with a Revolving Commitment or, if the Revolving
Commitments have terminated or expired, a Lender with a Revolving Exposure.

          “Revolving Loan” means a Loan made pursuant to clause (a) of Section 2.01.

          “Securities Purchase Agreement” means the Securities Purchase Agreement dated as of
December 20, 2001 among the Hearst-Argyle Trust and the purchasers named therein.

          “Senior Debentures” means the Borrower’s 7.50% Senior Debentures Due 2027.

          “Senior Debenture Indenture” means the Indenture dated as of November 13, 1997, as
amended by the First Supplemental Indenture dated November 13, 1997, between the Borrower and Bank
of Montreal Trust Company, as trustee, pursuant to which the Senior Debentures have been issued.

          “Senior Notes” means the Borrower’s 7.00% Senior Notes Due 2007 and the Borrower’s
7.00% Senior Notes Due 2018.

 

 

          “Senior Notes Indentures” means, collectively, (a) the Indenture dated as of November
13, 1997, between the Borrower and Bank of Montreal Trust Company, as trustee, pursuant to which
the Borrower’s Senior Notes Due 2007 have been issued and (b) the Second Supplemental Indenture
dated as of January 13, 1998, between the Borrower and Bank of Montreal Trust Company, as trustee,
pursuant to which the Borrower’s Senior Notes Due 2018 have been issued.

          “Station Licenses” means all authorizations, licenses or permits issued by the FCC and
granted or assigned to the Borrower or any Subsidiary, or under which the Borrower or any
Subsidiary has the right to operate any Station, together with any extensions or renewals thereof.

          “Stations” means the television broadcasting stations from time to time owned by the
Borrower or any of its Subsidiaries.

          “Statutory Reserve Rate” means, for any day, a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which is the number one minus the
aggregate of the maximum reserve percentages (including any marginal, special, emergency or
supplemental reserves) expressed as a decimal established by the Board and in effect on such day to
which the Administrative Agent is subject for eurocurrency funding (currently referred to as
“Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include
those imposed pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute
eurocurrency funding and to be subject to such reserve requirements without benefit of or credit
for proration, exemptions or offsets that may be available from time to time to any Lender under
such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve percentage. The
Statutory Reserve Rate as of the date hereof is one.

          “Subordinated Indebtedness” means the Convertible Junior Subordinated Debentures and
any Indebtedness that by its terms is subordinate or junior in right of payment to the Loans.

          “subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership, association or other entity
(a) of which securities or other ownership interests representing more than 50% of the equity or
more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as
of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by
the parent and one or more subsidiaries of the parent.

          “Subsidiary” means a subsidiary of the Borrower.

 

 

          “Swingline Exposure” means, at any time, the aggregate principal amount of all
Swingline Loans outstanding at such time. The Swingline Exposure of any Revolving Lender at any
time shall be its Applicable Percentage of the total Swingline Exposure at such time.

          “Swingline Lender” means JPMCB, in its capacity as lender of Swingline Loans
hereunder.

          “Swingline Loan” means a Loan made pursuant to Section 2.05.

          “Syndication Agent” means Bank of America, N.A., in its capacity as syndication agent
hereunder.

          “Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

          “Transactions” means the execution, delivery and performance by the Borrower of this
Agreement, the borrowing of Loans, the use of the proceeds thereof and the issuance of Letters of
Credit hereunder.

          “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the
Adjusted LIBO Rate or the Alternate Base Rate.

          “wholly owned “ means, with respect to any subsidiary of any Person, any corporation,
partnership or other entity of which all of the equity securities, Equity Rights or other ownership
interests (other than, in the case of a corporation, directors’ qualifying shares) are directly or
indirectly owned or controlled by such Person or one or more wholly owned subsidiaries of such
Person or by such Person and one or more wholly owned subsidiaries of such Person.

          “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

          SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement,
Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or by Type (e.g., a
“Eurodollar Loan”) or by Class and Type (e.g., an “ABR Revolving Loan”). Borrowings also may be
classified and referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar
Borrowing”) or by Class and Type (e.g., an “ABR Revolving Borrowing”).

          SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such

 

 

agreement, instrument or other document as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements or modifications
set forth herein), (b) any reference herein to any Person shall be construed to include such
Person’s permitted successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and
words of similar import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement, (e) the words “asset” and “property” shall be construed to have the same meaning
and effect and to refer to any and all tangible and intangible assets and properties, including
cash, securities, accounts and contract rights and (f) any reference to a statute shall be
construed as a reference to such statute as the same may have been amended or re-enacted from time
to time.

          SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided herein,
all terms of an accounting or financial nature shall be construed in accordance with, or derived by
reference to, GAAP, as in effect from time to time, whether or not such terms have a meaning under
GAAP; provided that, if the Borrower notifies the Administrative Agent that the Borrower
requests an amendment to any provision hereof to eliminate the effect of any change occurring after
the date hereof in GAAP or in the application thereof on the operation of such provision (or if the
Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any
provision hereof for such purpose), regardless of whether any such notice is given before or after
such change in GAAP or in the application thereof, then such provision shall be interpreted on the
basis of GAAP as in effect and applied immediately before such change shall have become effective
until such notice shall have been withdrawn or such provision amended in accordance herewith.

ARTICLE II

THE CREDITS

          SECTION 2.01. The Commitments. Subject to the terms and conditions set forth herein,
(a) each Revolving Lender agrees to make Revolving Loans to the Borrower from time to time during
the Revolving Availability Period in an aggregate principal amount that will not result in such
Lender’s Revolving Exposure exceeding such Lender’s Revolving Commitment and (b) each Incremental
Term Lender agrees to make Incremental Term Loans to the Borrower in an aggregate principal amount
not to exceed its Incremental Term Commitment on the date or dates determined in accordance with
Section 2.04. Within the foregoing limits and subject to the terms and conditions set forth
herein, the Borrower may borrow, prepay and reborrow Revolving Loans. Amounts paid or prepaid in
respect of Incremental Term Loans may not be reborrowed.

          SECTION 2.02. Loans and Borrowings.

          (a) Obligation of Lenders. Each Loan (other than a Swingline Loan) shall be made as
part of a Borrowing consisting of Loans of the same Class and Type made by the Lenders ratably in
accordance with their respective Commitments of the applicable Class. The failure of any Lender to
make any Loan required to be made by it shall not relieve any other

 

 

Lender of its obligations hereunder; provided that the Commitments of the Lenders are
several and no Lender shall be responsible for any other Lender’s failure to make Loans as
required.

          (b) Types of Loans. Subject to Section 2.14, each Borrowing (other than a Swingline
Loan) shall be comprised entirely of ABR Loans or Eurodollar Loans, as the Borrower may request in
accordance herewith. Each Swingline Loan shall be an ABR Loan, except as provided in Section
2.05(b). Each Lender at its option may make any Eurodollar Loan by causing any domestic or foreign
branch or Affiliate of such Lender to make such Loan; provided that any exercise of such
option shall not affect the obligation of the Borrower to repay such Loan in accordance with the
terms of this Agreement, except that if the designation of any such foreign branch or Affiliate
shall result (other than by reason of a Change of Law occurring after such designation) in any
costs, reductions or taxes which would not otherwise have been applicable, such Lender shall not be
entitled to compensation for such costs, reductions or taxes unless it shall in good faith have
determined such designation to be necessary or advisable to avoid any material disadvantage to it.

          (c) Minimum Amounts. At the commencement of each Interest Period for any Eurodollar
Borrowing, such Borrowing shall be in an aggregate amount equal to $5,000,000 or a larger multiple
of $1,000,000. At the time that each ABR Borrowing (other than a Swingline Loan) is made, such
Borrowing shall be in an aggregate amount equal to $1,000,000 or a larger multiple of $1,000,000;
provided that an ABR Borrowing may be in an aggregate amount that is equal to the entire
unused balance of the total Commitments of the applicable Class or, in the case of an ABR Revolving
Borrowing, that is required to finance the reimbursement of an LC Disbursement as contemplated by
Section 2.06(f). Each Swingline Loan shall be in an amount equal to $500,000 or a larger multiple
of $100,000. Borrowings of more than one Type and Class may be outstanding at the same time;
provided that there shall not at any time be more than a total of 12 Eurodollar Borrowings
outstanding.

          SECTION 2.03. Requests for Borrowings. To request a Borrowing (other than a Swingline
Loan, as to which the provisions of Section 2.05 shall apply), the Borrower shall notify the
Administrative Agent of such request by telephone (a) in the case of a Eurodollar Borrowing, not
later than 12:00 noon, New York City time, three Business Days before the date of the proposed
Borrowing or (b) in the case of an ABR Borrowing, not later than 12:00 noon, New York City time,
one Business Day before the date of the proposed Borrowing; provided that any such notice
of an ABR Revolving Borrowing to finance the reimbursement of an LC Disbursement as contemplated by
Section 2.06(f) may be given not later than 10:00 a.m., New York City time, on the date of the
proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall be
confirmed promptly by hand delivery or fax to the Administrative Agent of a written Borrowing
Request in a form approved by the Administrative Agent and signed by the Borrower. Each such
telephonic and written Borrowing Request shall specify the following information in compliance with
Section 2.02:

     (i) whether the requested Borrowing is to be a Revolving Borrowing or an Incremental
Term Borrowing;

     (ii) the aggregate amount of the requested Borrowing;

 

 

     (iii) the date of such Borrowing, which shall be a Business Day;

     (iv) whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

     (v) in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable
thereto, which shall be a period contemplated by the definition of the term “Interest
Period”; and

     (vi) the location and number of the Borrower’s account to which funds are to be
disbursed, which shall comply with the requirements of Section 2.07.

If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an
ABR Borrowing. If no Interest Period is specified with respect to any requested Eurodollar
Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s
duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each relevant Lender of the details thereof and of the amount of
such Lender’s Loan to be made as part of the requested Borrowing.

          SECTION 2.04. Incremental Commitments.

          (a) Request for Incremental Commitments. The Borrower may from time to time, by
written notice to the Administrative Agent, request Incremental Commitments, from one or more
Persons, including any existing Lender, who may elect to extend Incremental Commitments and to
become Incremental Lenders; provided that the aggregate principal amount of all Incremental
Commitments made pursuant to this Section shall not exceed $250,000,000; provided
further that each Incremental Lender, if not already a Lender hereunder, shall be subject
to the prior written approval of the Administrative Agent (which approval shall not be unreasonably
withheld or delayed). Such notice shall specify (i) whether the Borrower requests Incremental
Revolving Commitments or Incremental Term Commitments, (ii) the amount of such Incremental
Commitments being requested (which shall be in the minimum aggregate principal amount of
$25,000,000), (iii) the date on which such Incremental Commitments are requested to become
effective (which shall not be less than 10 Business Days nor more than 60 days after the date of
such notice (which time periods may be modified or waived at the discretion of the Administrative
Agent)) and (iv) in the case of a request for Incremental Term Commitments, the proposed terms of
the Incremental Term Loans to be made thereunder. Notwithstanding the foregoing, any Lender may in
its sole discretion decline to provide any requested Incremental Commitment.

          (b) Incremental Credit Agreement. The Borrower and each Incremental Lender shall
execute and deliver to the Administrative Agent an Incremental Credit Agreement evidencing the
Incremental Commitment of such Lender, which, in the case of any Incremental Credit Agreement
establishing Incremental Term Commitments, shall specify the terms of the Incremental Term Loans to
be made thereunder, including the final maturity thereof (which shall not be earlier than the
Maturity Date), any provisions relating to amortization of or mandatory prepayments or offers to
prepay such Loans (it being agreed that the weighted average life to maturity of the Incremental
Term Loans of any Class shall be not less than the remaining

 

 

Revolving Availability Period and that provisions for mandatory prepayments of and offers to
prepay such Loans shall not require any such prepayment or offer to prepay prior to the Maturity
Date), the interest to accrue and be payable thereon and any fees to be payable in respect thereof.
No Incremental Credit Agreement may establish any affirmative or negative covenant of the
Borrower, Event of Default or remedy that by its terms benefits one or more but not all of the
Classes of Commitments or Loans hereunder. No Incremental Term Loan may be secured by any
collateral or guaranteed by any Person that does not secure or guarantee the other Classes of Loans
hereunder. The Administrative Agent shall promptly notify each Lender as to the effectiveness of
each Incremental Credit Agreement.

          (c) Conditions to Effectiveness. No Incremental Commitment shall become effective
under this Section unless (i) on the date of such effectiveness, the conditions set forth in
clauses (a) and (b) of the first sentence of Section 4.02 shall be satisfied and the Administrative
Agent shall have received a certificate to that effect dated such date and executed by the
President, a Vice President or a Financial Officer of the Borrower, and (ii) the Administrative
Agent shall have either received documents consistent with those delivered on the Effective Date
pursuant to clauses (a) through (e) of Section 4.01 or waived the requirement that the Borrower
deliver such documents.

          (d) Pro Rata Holding of Revolving Loans. Each of the parties hereto agrees that the
Administrative Agent may take any and all actions that it may determine to be reasonably necessary
to ensure that, after giving effect to any Incremental Revolving Commitment pursuant to this
Section, the outstanding Revolving Loans are held by the Revolving Lenders in accordance with their
new Applicable Percentages. This may be accomplished at the discretion of the Administrative Agent
(i) by requiring the outstanding Revolving Loans to be prepaid with the proceeds of a new Revolving
Borrowing, (ii) by permitting the Revolving Borrowings outstanding at the time of any increase in
the aggregate Revolving Commitments pursuant to this Section to remain outstanding until the last
days of the respective Interest Periods therefor, even though the Revolving Lenders would hold such
Revolving Borrowings other than in accordance with their new Applicable Percentages, or (iii) by
any combination of the foregoing. Any prepayment described in this paragraph shall be subject to
Section 2.16, but otherwise without premium or penalty.

          SECTION 2.05. Swingline Loans.

          (a) Agreement to Make Swingline Loans. Subject to the terms and conditions set forth
herein, the Swingline Lender agrees to make Swingline Loans to the Borrower from time to time
during the Revolving Availability Period in an aggregate principal amount at any time outstanding
that will not result in (i) the aggregate principal amount of outstanding Swingline Loans exceeding
$25,000,000 or (ii) the aggregate amount of the Lenders’ Revolving Exposures exceeding the
aggregate amount of the Revolving Commitments; provided that the Swingline Lender shall not
be required to make a Swingline Loan to refinance an outstanding Swingline Loan. Within the
foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow,
prepay and reborrow Swingline Loans.

          (b) Interest Rates. Swingline Loans shall be ABR Loans, except that the Swingline
Lender and the Borrower may agree that the interest rate in respect of a Swingline

 

 

Loan be an alternative rate of interest (and with such applicable margins and prepayment
premiums) as may from time to time be offered by the Swingline Lender to the Borrower in its sole
discretion; provided that upon any sale pursuant to Section 2.05(d) of participations in
any Swingline Loan the interest on which is determined by reference to such an alternative rate,
such Swingline Loan shall automatically be converted into an ABR Loan.

          (c) Notice of Swingline Loans by Borrower. To request a Swingline Loan, the Borrower
shall notify the Administrative Agent of such request by telephone (confirmed by fax), not later
than 12:00 noon, New York City time, on the day of the proposed Swingline Loan. Each such notice
shall be irrevocable and shall specify the requested date (which shall be a Business Day) and
amount of the requested Swingline Loan. The Administrative Agent will promptly advise the
Swingline Lender of any such notice received from the Borrower. The Swingline Lender shall make
each Swingline Loan available to the Borrower by means of a credit to the general deposit account
of the Borrower with the Swingline Lender (or, in the case of a Swingline Loan made to finance the
reimbursement of an LC Disbursement as provided in Section 2.06(f), by remittance to the Issuing
Lender) by 3:00 p.m., New York City time, on the requested date of such Swingline Loan.

          (d) Participations by Lenders in Swingline Loans. The Swingline Lender may by written
notice given to the Administrative Agent (with a copy to the Borrower) not later than 10:00 a.m.,
New York City time, on any Business Day require the Revolving Lenders to acquire participations on
such Business Day in all or a portion of the Swingline Loans outstanding. Such notice to the
Administrative Agent shall specify the aggregate amount of Swingline Loans in which Revolving
Lenders will participate. Promptly upon receipt of such notice, the Administrative Agent will give
notice thereof to each Revolving Lender, specifying in such notice such Lender’s Applicable
Percentage of such Swingline Loan or Loans. Each Revolving Lender hereby absolutely and
unconditionally agrees, upon receipt of notice as provided above in this paragraph, to pay to the
Administrative Agent, for the account of the Swingline Lender, such Lender’s Applicable Percentage
of such Swingline Loan or Loans. Each Revolving Lender acknowledges and agrees that its obligation
to acquire participations in Swingline Loans pursuant to this paragraph is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including the occurrence
and continuance of a Default or reduction or termination of the Commitments, and that each such
payment shall be made without any offset, abatement, withholding or reduction whatsoever. Each
Revolving Lender shall comply with its obligation under this paragraph by wire transfer of
immediately available funds in the same manner as provided in Section 2.07 with respect to Loans
made by such Lender (and Section 2.07 shall apply, mutatis mutandis, to the payment
obligations of the Revolving Lenders), and the Administrative Agent shall promptly pay to the
Swingline Lender the amounts so received by it from the Revolving Lenders. The Administrative
Agent shall notify the Borrower of any participations in any Swingline Loan acquired pursuant to
this paragraph, and thereafter payments in respect of such Swingline Loan shall be made to the
Administrative Agent and not to the Swingline Lender. Any amounts received by the Swingline Lender
from the Borrower (or other party on behalf of the Borrower) in respect of a Swingline Loan after
receipt by the Swingline Lender of the proceeds of a sale of participations therein shall be
promptly remitted to the Administrative Agent; any such amounts received by the Administrative
Agent shall be promptly remitted by the Administrative Agent to the Revolving Lenders that shall
have made their payments pursuant to this paragraph and to the Swingline Lender, as their interests

 

 

may appear. The purchase of participations in a Swingline Loan pursuant to this paragraph
shall not relieve the Borrower of any default in the payment thereof.

          SECTION 2.06. Letters of Credit.

          (a) General. Subject to the terms and conditions set forth herein, in addition to the
Loans provided for in Section 2.01, the Borrower may request the Issuing Lender to issue, at any
time and from time to time during the Revolving Availability Period, Letters of Credit for the
Borrower’s account in such form as is acceptable to the Issuing Lender in its reasonable
determination.

          (b) Notice of Issuance, Amendment, Renewal or Extension. To request the issuance of a
Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the
Borrower shall hand deliver or fax (or transmit by electronic communication, if arrangements for
doing so have been approved by the Issuing Lender) to the Issuing Lender and the Administrative
Agent (reasonably in advance of the requested date of issuance, amendment, renewal or extension) a
notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be
amended, renewed or extended, and specifying the date of issuance, amendment, renewal or extension
(which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall
comply with paragraph (d) of this Section), the amount of such Letter of Credit, the name and
address of the beneficiary thereof and such other information as shall be necessary to prepare,
amend, renew or extend such Letter of Credit. If requested by the Issuing Lender, the Borrower
also shall submit a letter of credit application on the Issuing Lender’s standard form in
connection with any request for a Letter of Credit. In the event of any inconsistency between the
terms and conditions of this Agreement and the terms and conditions of any form of letter of credit
application or other agreement submitted by the Borrower to, or entered into by the Borrower with,
the Issuing Lender relating to any Letter of Credit (including, without limitation, any terms or
conditions requiring collateral other than the cash collateral described in paragraph (k) of this
Section), the terms and conditions of this Agreement shall control.

          (c) Limitations on Amounts. A Letter of Credit shall be issued, amended, renewed or
extended only if (and upon issuance, amendment, renewal or extension of each Letter of Credit the
Borrower shall be deemed to represent and warrant that), after giving effect to such issuance,
amendment, renewal or extension, (i) the aggregate LC Exposure shall not exceed $50,000,000 and
(ii) the aggregate amount of the Lenders’ Revolving Exposures shall not exceed the aggregate amount
of the Revolving Commitments.

          (d) Expiration Date. Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (i) the date 12 months after the date of the issuance of such Letter of
Credit (or, in the case of any renewal or extension thereof, 12 months after such renewal or
extension) and (ii) the date that is five Business Days prior to the Maturity Date. A Letter of
Credit may provide for automatic renewals for additional periods of up to one year subject to a
right on the part of the Issuing Lender to prevent any such renewal from occurring by giving notice
to the beneficiary during a specified period in advance of any such renewal, and the failure of the
Issuing Lender to give such notice by the end of such period shall for all purposes hereof be
deemed an extension of such Letter of Credit; provided that in no event shall any

 

 

Letter of Credit, as extended from time to time, expire after the date that is five Business
Days prior to the Maturity Date.

          (e) Participations. By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof), and without any further action on the part of the
Issuing Lender or the Revolving Lenders, the Issuing Lender hereby grants to each Revolving Lender,
and each Revolving Lender hereby acquires from the Issuing Lender, a participation in such Letter
of Credit equal to such Revolving Lender’s Applicable Percentage of the aggregate amount available
to be drawn under such Letter of Credit. Each Revolving Lender acknowledges and agrees that its
obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is
absolute and unconditional and shall not be affected by any circumstance whatsoever, including any
amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a
Default or reduction or termination of the Commitments, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever.

          In consideration and in furtherance of the foregoing, each Revolving Lender hereby absolutely
and unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing
Lender, promptly upon the request of the Issuing Lender, such Revolving Lender’s Applicable
Percentage of each LC Disbursement made by the Issuing Lender and not reimbursed by the Borrower on
the date due as provided in paragraph (f) of this Section, or of any reimbursement payment required
to be refunded by the Issuing Lender to the Borrower for any reason. Each such payment shall be
made in the same manner as provided in Section 2.07 with respect to Loans made by such Revolving
Lender (and Section 2.07 shall apply, mutatis mutandis, to the payment obligations
of the Revolving Lenders), and the Administrative Agent shall promptly pay to the Issuing Lender
the amounts so received by it from the Revolving Lenders. Promptly following receipt by the
Administrative Agent of any payment from the Borrower pursuant to paragraph (f) of this Section,
the Administrative Agent shall distribute such payment to the Issuing Lender or, to the extent that
the Revolving Lenders have made payments pursuant to this paragraph to reimburse the Issuing
Lender, then to such Revolving Lenders and the Issuing Lender as their interests may appear. Any
payment made by a Revolving Lender pursuant to this paragraph to reimburse the Issuing Lender for
any LC Disbursement shall not constitute a Loan and shall not relieve the Borrower of its
obligation to reimburse such LC Disbursement.

          (f) Reimbursement. If the Issuing Lender shall make any LC Disbursement in respect of
a Letter of Credit, the Borrower shall reimburse the Issuing Lender in respect of such LC
Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement not
later than 2:00 p.m., New York City time, on (i) the Business Day that the Borrower receives notice
of such LC Disbursement, if such notice is received prior to 10:00 a.m., New York City time, or
(ii) the Business Day immediately following the day that the Borrower receives such notice, if such
notice is not received prior to such time; provided that, if such LC Disbursement is not
less than $100,000, the Borrower may, so long as no Event of Default described in clause (h) or (i)
of Article VII has occurred and is continuing, request in accordance with Section 2.03 or 2.05 that
such payment be financed with an ABR Revolving Borrowing or a Swingline Loan in an equivalent
amount and, to the extent so financed, the Borrower’s obligation to make such payment shall be
discharged and replaced by the resulting ABR

 

 

Revolving Borrowing or Swingline Loan. If the Borrower fails to make such payment when due,
the Administrative Agent shall notify each Revolving Lender of the applicable LC Disbursement, the
payment then due from the Borrower in respect thereof and such Lender’s Applicable Percentage
thereof.

          (g) Obligations Absolute. The Borrower’s obligation to reimburse LC Disbursements as
provided in paragraph (f) of this Section shall be absolute, unconditional and irrevocable, and
shall be performed strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any
Letter of Credit, or any term or provision therein, (ii) any draft or other document presented
under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any
statement therein being untrue or inaccurate in any respect, (iii) payment by the Issuing Lender
under a Letter of Credit against presentation of a draft or other document that does not comply
strictly with the terms of such Letter of Credit, and (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of
this Section, constitute a legal or equitable discharge of the Borrower’s obligations hereunder.
None of the Administrative Agent, the Lenders or the Issuing Lender, or any of the Related Parties
of any of the foregoing, shall have any liability or responsibility by reason of or in connection
with the issuance or transfer of any Letter of Credit by the Issuing Lender or any payment or
failure to make any payment thereunder (irrespective of any of the circumstances referred to in the
preceding sentence), or any error, omission, interruption, loss or delay in transmission or
delivery of any draft, notice or other communication under or relating to any Letter of Credit
(including any document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of the Issuing Lender;
provided that the foregoing shall not be construed to excuse the Issuing Lender from
liability to the Borrower to the extent of any direct damages (as opposed to consequential damages,
claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable
law) suffered by the Borrower that are caused by the Issuing Lender’s gross negligence or willful
misconduct. The parties hereto expressly agree that:

     (i) the Issuing Lender may accept documents that it believes in good faith appear on
their face to be in substantial compliance with the terms of a Letter of Credit without
responsibility for further investigation, regardless of any notice or information to the
contrary, and may make payment upon presentation of documents that appear on their face to
be in substantial compliance with the terms of such Letter of Credit;

     (ii) the Issuing Lender shall have the right, in its sole discretion, to decline to
accept such documents and to decline to make such payment if such documents are not in
strict compliance with the terms of such Letter of Credit; and

     (iii) this Section shall establish the standard of care to be exercised by the Issuing
Lender when determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof (and the parties hereto hereby waive, to the extent
permitted by applicable law, any standard of care inconsistent with the foregoing).

          (h) Disbursement Procedures. The Issuing Lender shall, within a reasonable time
following its receipt thereof, examine all documents purporting to represent a demand for

 

 

payment under a Letter of Credit. The Issuing Lender shall promptly after such examination
notify the Administrative Agent and the Borrower by telephone (confirmed by fax) of such demand for
payment and whether the Issuing Lender has made or will make an LC Disbursement thereunder;
provided that any failure to give or delay in giving such notice shall not relieve the
Borrower of its obligation to reimburse the Issuing Lender and the Revolving Lenders with respect
to any such LC Disbursement.

          (i) Interim Interest. If the Issuing Lender shall make any LC Disbursement, then,
unless the Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement
is made, the unpaid amount thereof shall bear interest, for each day from and including the date
such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC
Disbursement, at the rate per annum then applicable to ABR Revolving Loans; provided that,
if the Borrower fails to reimburse such LC Disbursement when due pursuant to paragraph (f) of this
Section, then Section 2.13(d) shall apply. Interest accrued pursuant to this paragraph shall be
for the account of the Issuing Lender, except that interest accrued on and after the date of
payment by any Revolving Lender pursuant to paragraph (f) of this Section to reimburse the Issuing
Lender shall be for the account of such Revolving Lender to the extent of such payment.

          (j) Replacement of the Issuing Lender. The Issuing Lender may be replaced at any time
by written agreement among the Borrower, the Administrative Agent, the replaced Issuing Lender and
the successor Issuing Lender. The Administrative Agent shall notify the Lenders of any such
replacement of the Issuing Lender. At the time any such replacement shall become effective, the
Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Lender pursuant
to Section 2.12(b). From and after the effective date of any such replacement, (i) the successor
Issuing Lender shall have all the rights and obligations of the replaced Issuing Lender under this
Agreement with respect to Letters of Credit to be issued by it thereafter and (ii) references
herein to the term “Issuing Lender” shall be deemed to include such successor or any previous
Issuing Lender, or such successor and all previous Issuing Lenders, as the context shall require.
After the replacement of an Issuing Lender hereunder, the replaced Issuing Lender shall remain a
party hereto and shall continue to have all the rights and obligations of an Issuing Lender under
this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall
not be required to issue additional Letters of Credit.

          (k) Cash Collateralization. If an Event of Default shall occur and be continuing and
the Borrower receives notice from the Administrative Agent or the Required Lenders (or, if the
maturity of the Loans has been accelerated, Revolving Lenders with LC Exposure representing more
than 50% of the total LC Exposure) demanding the deposit of cash collateral pursuant to this
paragraph, the Borrower shall immediately deposit into an account with the Administrative Agent, in
the name of the Administrative Agent and for the benefit of the Revolving Lenders, an amount in
cash equal to the LC Exposure as of such date plus any accrued and unpaid interest thereon;
provided that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without demand or other
notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower
described in clause (h) or (i) of Article VII. The Borrower shall also deposit cash collateral
pursuant to this paragraph as and to the extent required by Section 2.11(b). Each such deposit
shall be held by the Administrative Agent as collateral for

 

 

the payment and performance of the obligations of the Borrower under this Agreement. The
Administrative Agent shall have exclusive dominion and control, including the exclusive right of
withdrawal, over such account. Other than any interest earned on the investment of such deposits,
which investments shall be made at the option and sole discretion of the Administrative Agent and
at the Borrower’s risk and expense, such deposits shall not bear interest. Interest or profits, if
any, on such investments shall accumulate in such account. Moneys in such account shall be applied
by the Administrative Agent to reimburse the Issuing Lender for LC Disbursements for which it has
not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the
reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of
the Loans has been accelerated (but subject to the consent of Revolving Lenders with LC Exposure
representing more than 50% of the total LC Exposure), be applied to satisfy other obligations of
the Borrower under this Agreement provided that such moneys shall be promptly returned to
the Borrower upon the satisfaction of such reimbursement obligations. If the Borrower is required
to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of
Default, such amount (to the extent not applied as aforesaid) shall be returned to the Borrower
within three Business Days after all Events of Default have been cured or waived.

          SECTION 2.07. Funding of Borrowings.

          (a) Funding by Lenders. Each Lender shall make each Loan to be made by it hereunder
on the proposed date thereof by wire transfer of immediately available funds by 12:00 noon, New
York City time, to the account of the Administrative Agent most recently designated by it for such
purpose by notice to the Lenders; provided that Swingline Loans shall be made as provided
in Section 2.05. The Administrative Agent will make such Loans available to the Borrower by
promptly crediting the amounts so received, in like funds, to an account of the Borrower maintained
with the Administrative Agent in New York City and designated by the Borrower in the applicable
Borrowing Request; provided that ABR Revolving Borrowings made to finance the reimbursement
of an LC Disbursement as provided in Section 2.06(f) shall be remitted by the Administrative Agent
to the Issuing Lender.

          (b) Presumption by Administrative Agent. Unless the Administrative Agent shall have
received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not
make available to the Administrative Agent such Lender’s share of such Borrowing, the
Administrative Agent may assume that such Lender has made such share available on such date in
accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make
available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made
its share of the applicable Borrowing available to the Administrative Agent, then the applicable
Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such
corresponding amount with interest thereon, for each day from and including the date such amount is
made available to the Borrower to but excluding the date of payment to the Administrative Agent, at
(i) in the case of such Lender, the Federal Funds Effective Rate or (ii) in the case of the
Borrower, the interest rate applicable to ABR Loans of such Class. If such Lender pays such amount
to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such
Borrowing.

 

 

          SECTION 2.08. Interest Elections.

          (a) Elections by Borrower. Each Borrowing initially shall be of the Type specified in
the applicable Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an initial
Interest Period as specified in such Borrowing Request. Thereafter, the Borrower may elect to
convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a
Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this Section. The
Borrower may elect different options with respect to different portions of the affected Borrowing,
in which case each such portion shall be allocated ratably among the Lenders holding the Loans
comprising such Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing. This Section shall not apply to Swingline Borrowings, which may not be
converted or continued.

          (b) Notice of Elections. To make an election pursuant to this Section, the Borrower
shall notify the Administrative Agent of such election by telephone by the time that a Borrowing
Request would be required under Section 2.03 if the Borrower were requesting a Borrowing of the
Type resulting from such election to be made on the effective date of such election. Each such
telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or fax to the Administrative Agent of a written Interest Election Request in a form
approved by the Administrative Agent and signed by the Borrower.

          (c) Information in Election Notices. Each telephonic and written Interest Election
Request shall specify the following information in compliance with Section 2.02:

     (i) the Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the portions thereof
to be allocated to each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) of this paragraph shall be specified for each resulting
Borrowing);

     (ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;

     (iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing; and

     (iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”.

If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an
Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one
month’s duration.

          (d) Notice by Administrative Agent to Lenders. Promptly following receipt of an
Interest Election Request, the Administrative Agent shall advise each relevant Lender of the
details thereof and of such Lender’s portion of each resulting Borrowing.

 

 

          (e) Presumptions if No Notice; Event of Default. If the Borrower fails to deliver a
timely Interest Election Request with respect to a Eurodollar Borrowing prior to the end of the
Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at
the end of such Interest Period such Borrowing shall be converted to an ABR Borrowing.
Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is
continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the
Borrower, then, so long as an Event of Default is continuing (i) no outstanding Borrowing may be
converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar
Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable
thereto.

          SECTION 2.09. Termination and Reduction of the Commitments.

          (a) Scheduled Termination. Unless previously terminated, (i) the Revolving
Commitments shall terminate on the Maturity Date and (ii) any Incremental Term Commitments shall
terminate on the date specified in the applicable Incremental Credit Agreement.

          (b) Voluntary Termination or Reduction. The Borrower may at any time terminate, or
from time to time reduce, the Commitments of any Class; provided that (i) each reduction of
the Commitments of any Class pursuant to this Section shall be in an amount that is $5,000,000 or a
larger multiple of $1,000,000 and (ii) the Borrower shall not terminate or reduce the Revolving
Commitments if, after giving effect to any concurrent prepayment of Loans in accordance with
Section 2.11, the aggregate amount of the Lenders’ Revolving Exposures would exceed the aggregate
amount of the Revolving Commitments.

          (c) Notice of Termination or Reduction. The Borrower shall notify the Administrative
Agent of any election to terminate or reduce the Commitments of any Class under paragraph (b) of
this Section at least three Business Days prior to the effective date of such termination or
reduction, specifying such election and the effective date thereof. Promptly following receipt of
any notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice
delivered by the Borrower pursuant to this Section shall be irrevocable; provided that a
notice of termination of the Revolving Commitments delivered by the Borrower may state that such
notice is conditioned upon the effectiveness of other credit facilities, in which case such notice
may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified
effective date) if such condition is not satisfied.

          (d) Effect of Termination or Reduction. Any termination or reduction of the
Commitments of any Class shall be permanent. Each reduction of the Commitments of any Class shall
be made ratably among the Lenders in accordance with their respective Commitments of such Class.

          SECTION 2.10. Repayment of Loans; Evidence of Debt.

          (a) Repayment. The Borrower hereby unconditionally promises to pay the Loans
outstanding hereunder as follows:

     (i) to the Administrative Agent for the account of each Lender, the outstanding
principal amount of each Revolving Loan of such Lender on the Maturity Date,

 

 

     (ii) to the Administrative Agent for the account of each Incremental Term Lender, the
outstanding principal amount of each Incremental Term Loan of such Lender in such amounts
and on such dates as provided in the applicable Incremental Credit Agreement, and

     (iii) to the Swingline Lender, the outstanding principal amount of each Swingline Loan
on the earlier of the Maturity Date and the first date after such Swingline Loan is made
that is the last day of a calendar month and that is at least two Business Days after such
Swingline Loan is made.

          (b) Maintenance of Loan Accounts by Lenders. Each Lender shall maintain in accordance
with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such
Lender resulting from each Loan made by such Lender, including the amounts of principal and
interest payable and paid to such Lender from time to time hereunder.

          (c) Maintenance of Loan Accounts by Administrative Agent. The Administrative Agent
shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the
Class and Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal
or interest due and payable or to become due and payable from the Borrower to each Lender hereunder
and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of
the Lenders and each Lender’s share thereof.

          (d) Effect of Loan Accounts. The entries made in the accounts maintained pursuant to
paragraph (b) or (c) of this Section shall be prima facie evidence of the existence and amounts of
the obligations recorded therein; provided that the failure of any Lender or the
Administrative Agent to maintain such accounts or any error therein shall not in any manner affect
the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement.

          (e) Promissory Notes. Any Lender may request that Loans of any Class made by it be
evidenced by a promissory note. In such event, the Borrower shall prepare, execute and deliver to
such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender,
to such Lender and its registered assigns) and in a form approved by the Administrative Agent and
reasonably acceptable to the Borrower. Thereafter, the Loans evidenced by such promissory note and
interest thereon shall at all times (including after assignment pursuant to Section 9.04) be
represented by one or more promissory notes in such form payable to the order of the payee named
therein (or, if such promissory note is a registered note, to such payee and its registered
assigns).

          SECTION 2.11. Prepayment of Loans.

          (a) Optional Prepayments. The Borrower shall have the right at any time and from time
to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance with
paragraph (c) of this Section; provided that any prepayments made pursuant to this
paragraph in respect of (i) ABR Loans shall be in an aggregate amount of $5,000,000 or a larger
multiple of $1,000,000 and (ii) Eurodollar Loans shall be in an aggregate amount of $10,000,000 or
a larger multiple of $1,000,000.

 

 

          (b) Mandatory Prepayments. In the event that the aggregate principal amount of the
Lenders’ Revolving Exposures shall at any time exceed the aggregate amount of the Revolving
Commitments, the Borrower shall prepay the Revolving Loans or Swingline Loans (and, after all such
outstanding Loans are repaid, deposit cash collateral in an account with the Administrative Agent
as specified in Section 2.06(k)) in an aggregate amount equal to such excess.

          (c) Notices. The Borrower shall notify the Administrative Agent (and, in the case of
prepayment of a Swingline Loan, the Swingline Lender) by telephone (confirmed by fax) of any
prepayment hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not later than 11:00
a.m., New York City time, two Business Days before the date of prepayment, (ii) in the case of
prepayment of an ABR Borrowing (other than a Swingline Loan), not later than 11:00 a.m., New York
City time, one Business Day before the date of prepayment or (iii) in the case of prepayment of a
Swingline Loan, not later than 12:00 noon, New York City time, on the date of prepayment. Each
such notice shall be irrevocable and shall specify the prepayment date, the principal amount of
each Borrowing or portion thereof to be prepaid and in the case of a mandatory prepayment, a
reasonably detailed calculation of the amount of such prepayment; provided that, if a
notice of prepayment is given in connection with a conditional notice of termination of the
Revolving Commitments as contemplated by Section 2.09, then such notice of prepayment may be
revoked if such notice of termination is revoked in accordance with Section 2.09. Promptly
following receipt of any such notice (other than a notice relating solely to Swingline Loans), the
Administrative Agent shall advise the relevant Lenders of the contents thereof. Each prepayment of
a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments
shall be accompanied by accrued interest to the extent required by Section 2.13.

          SECTION 2.12. Fees.

          (a) Commitment Fee. The Borrower shall pay to the Administrative Agent for account of
each Revolving Lender a commitment fee, which shall accrue at the Applicable Margin on the daily
average unutilized amount of such Lender’s Revolving Commitment (for which purpose the LC Exposure
(but not the Swingline Exposure) of such Lender shall be deemed to be utilization of such Lender’s
Revolving Commitment and the aggregate principal amount of any Swingline Loans shall be deemed to
be a utilization of the Swingline Lender’s Revolving Commitment), for the period from and including
the date hereof to but excluding the date on which such Commitment terminates. Accrued commitment
fees shall be payable on each Quarterly Date and on the date on which the Revolving Commitments
terminate. All commitment fees shall be computed on the basis of a year of 360 days and shall be
payable for the actual number of days elapsed (including the first day but excluding the last day).

          (b) Letter of Credit Fees. The Borrower agrees to pay (i) to the Administrative Agent
for the account of each Revolving Lender a participation fee with respect to its participations in
Letters of Credit, which shall accrue at a rate per annum equal to the Applicable Margin used to
determine interest on Eurodollar Revolving Loans, on the average daily amount of such Lender’s LC
Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the
period from and including the Effective Date to but excluding the later of the date on which such
Lender’s Revolving Commitment terminates and the date on

 

 

which such Lender ceases to have any LC Exposure, and (ii) to the Issuing Lender a fronting
fee, which shall accrue at the rate of 3/16 of 1% per annum on the average daily amount of the LC
Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the
period from and including the Effective Date to but excluding the later of the date of termination
of the Revolving Commitments and the date on which there ceases to be any LC Exposure, as well as
the Issuing Lender’s standard fees with respect to the issuance, amendment, renewal or extension of
any Letter of Credit or processing of drawings thereunder. Participation fees and fronting fees
accrued through and including each Quarterly Date shall be payable on the third Business Day
following such Quarterly Date, commencing on the first such date to occur after the Effective Date;
provided that all such fees shall be payable on the date on which the Revolving Commitments
terminate and any such fees accruing after the date on which the Revolving Commitments terminate
shall be payable on demand. Any other fees payable to the Issuing Lender pursuant to this
paragraph shall be payable within 10 days after demand. All participation fees and fronting fees
shall be computed on the basis of a year of 360 days and shall be payable for the actual number of
days elapsed (including the first day but excluding the last day).

          (c) Administrative Agent Fees. The Borrower agrees to pay to the Administrative
Agent, for its own account, fees payable in the amounts and at the times separately agreed upon
between the Borrower and the Administrative Agent (it being understood that if the Administrative
Agent shall resign or be removed, a ratable portion of any fees theretofore paid to the
Administrative Agent for the period during which such resignation or removal shall occur shall be
promptly paid by the Administrative Agent to the Borrower to the extent the Borrower is required to
pay fees for the balance of such period to a replacement Administrative Agent).

          (d) Payment of Fees. All fees payable hereunder shall be paid on the dates due, in
immediately available funds, to the Administrative Agent (or to the Issuing Lender, in the case of
fees payable to it) for distribution, in the case of commitment fees and participation fees, to the
Lenders entitled thereto. Except as otherwise expressly provided in paragraph (c) of this Section,
fees paid shall not be refundable under any circumstances.

          SECTION 2.13. Interest.

          (a) ABR Borrowings. The Loans comprising each ABR Borrowing (other than Swingline
Loans, as to which paragraph (c) of this Section shall apply) shall bear interest at a rate per
annum equal to the Alternate Base Rate plus the Applicable Margin.

          (b) Eurodollar Borrowings. The Loans comprising each Eurodollar Borrowing shall bear
interest at a rate per annum equal to the Adjusted LIBO Rate for the Interest Period in effect for
such Borrowing plus the Applicable Margin.

          (c) Swingline Borrowings. Each Swingline Loan shall bear interest at a rate per annum
equal to the Alternate Base Rate plus the Applicable Margin, or at such alternate rate of interest
as may be applicable thereto as contemplated by Section 2.05(b).

 

 

          (d) Default Interest. Notwithstanding the foregoing, if any principal of or interest
on any Loan or any fee or other amount payable by the Borrower hereunder is not paid when due,
whether at stated maturity, upon acceleration, by mandatory prepayment or otherwise, such overdue
amount (or, in case the amount in default is principal of a Loan, all amounts outstanding
hereunder) shall bear interest, after as well as before judgment, at a rate per annum equal to (i)
in the case of overdue principal of any Loan, 2% plus the rate otherwise applicable to such Loan as
provided above or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as
provided in paragraph (a) of this Section.

          (e) Payment of Interest. Accrued interest on each Loan shall be payable in arrears on
each Interest Payment Date for such Loan and, in the case of Revolving Loans, upon termination of
the Revolving Commitments; provided that (i) interest accrued pursuant to paragraph (d) of
this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any
Loan (other than a prepayment of an ABR Revolving Loan prior to the Maturity Date), accrued
interest on the principal amount repaid or prepaid shall be payable on the date of such repayment
or prepayment and (iii) in the event of any conversion of any Eurodollar Borrowing prior to the end
of the current Interest Period therefor, accrued interest on the Loans comprising such Borrowing
shall be payable on the effective date of such conversion.

          (f) Computation. All interest hereunder shall be computed on the basis of a year of
360 days, except that interest computed by reference to the Alternate Base Rate at times when the
Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days
(or 366 days in a leap year), and in each case shall be payable for the actual number of days
elapsed (including the first day but excluding the last day). The applicable Alternate Base Rate
or Adjusted LIBO Rate shall be determined by the Administrative Agent, and such determination shall
be conclusive absent manifest error.

          SECTION 2.14. Alternate Rate of Interest. If prior to the commencement of any
Interest Period for a Eurodollar Borrowing:

     (a) the Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for ascertaining the
Adjusted LIBO Rate for such Interest Period; or

     (b) the Administrative Agent is advised by the Lenders representing a majority in
interest with respect to such Borrowing that the Adjusted LIBO Rate for such Interest Period
will not adequately and fairly reflect the cost to such Lenders of making or maintaining
their Loans included in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by
telephone or fax as promptly as practicable thereafter and, until the Administrative Agent notifies
the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i)
any Interest Election Request that requests the conversion of any Borrowing of the affected Class
to, or continuation of any Borrowing of the affected Class as, a Eurodollar Borrowing shall be
ineffective and (ii) if any Borrowing Request requests a Eurodollar Borrowing of the affected
Class, such Borrowing shall be made as an ABR Borrowing.

 

 

          SECTION 2.15. Increased Costs.

          (a) Generally. If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or the
Issuing Lender; or

     (ii) impose on any Lender or the Issuing Lender or the London interbank market any
other condition affecting this Agreement or Eurodollar Loans made by such Lender or any
Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to
increase the cost to such Lender or the Issuing Lender of participating in, issuing or maintaining
any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or
the Issuing Lender hereunder (whether of principal, interest or otherwise), then the Borrower will
pay to such Lender or the Issuing Lender, as the case may be, such additional amount or amounts as
will compensate such Lender or the Issuing Lender, as the case may be, for such additional costs
incurred or reduction suffered.

          (b) Capital Requirements. If any Lender or the Issuing Lender determines that any
Change in Law regarding capital requirements has or would have the effect of reducing the rate of
return on such Lender’s or the Issuing Lender’s capital or on the capital of such Lender’s or the
Issuing Lender’s holding company, if any, as a consequence of this Agreement or the Loans made by,
or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by the
Issuing Lender, to a level below that which such Lender or the Issuing Lender or such Lender’s or
the Issuing Lender’s holding company could have achieved but for such Change in Law (taking into
consideration such Lender’s or the Issuing Lender’s policies and the policies of such Lender’s or
the Issuing Lender’s holding company with respect to capital adequacy), then from time to time the
Borrower will pay to such Lender or the Issuing Lender, as the case may be, such additional amount
or amounts as will compensate such Lender or the Issuing Lender or such Lender’s or the Issuing
Lender’s holding company for any such reduction suffered.

          (c) Certificates from Lenders. A certificate of a Lender or the Issuing Lender
setting forth the amount or amounts necessary to compensate such Lender or the Issuing Lender or
its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section, and
setting forth in reasonable detail the manner in which such amount or amounts have been determined,
shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower
shall pay such Lender or the Issuing Lender, as the case may be, the amount shown as due on any
such certificate within 10 days after receipt thereof.

          (d) Delay in Requests. Failure or delay on the part of any Lender or the Issuing
Lender to demand compensation pursuant to this Section shall not constitute a waiver of such
Lender’s or the Issuing Lender’s right to demand such compensation; provided that the
Borrower

 

 

shall not be required to compensate a Lender or the Issuing Lender pursuant to this Section
for any increased costs or reductions incurred more than six months prior to the date that such
Lender or the Issuing Lender, as the case may be, notifies the Borrower of the Change in Law giving
rise to such increased costs or reductions and of such Lender’s or the Issuing Lender’s intention
to claim compensation therefor; provided further that, if the Change in Law giving
rise to such increased costs or reductions is retroactive, then the six-month period referred to
above shall be extended to include the period of retroactive effect thereof.

          SECTION 2.16. Break Funding Payments. In the event of (a) the payment of any
principal of any Eurodollar Loan other than on the last day of an Interest Period applicable
thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan
other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow,
convert, continue or prepay any Loan on the date specified in any notice delivered pursuant hereto
(regardless of whether such notice is permitted to be revocable under Section 2.11(c) and is
revoked in accordance herewith) or (d) the assignment of any Eurodollar Loan other than on the last
day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to
Section 2.19, then, in any such event, the Borrower shall compensate each Lender for the loss, cost
and expense attributable to such event. In the case of a Eurodollar Loan, the loss to any Lender
attributable to any such event shall be deemed to include an amount determined by such Lender to be
equal to the excess, if any, of (i) the amount of interest that such Lender would pay for a deposit
equal to the principal amount of such Loan for the period from the date of such payment,
conversion, failure or assignment to the last day of the then current Interest Period for such Loan
(or, in the case of a failure to borrow, convert or continue, the duration of the Interest Period
that would have resulted from such borrowing, conversion or continuation) if the interest rate
payable on such deposit were equal to the Adjusted LIBO Rate for such Interest Period, over (ii)
the amount of interest that such Lender would earn on such principal amount for such period if such
Lender were to invest such principal amount for such period at the interest rate that would be bid
by such Lender (or an affiliate of such Lender) for dollar deposits from other banks in the
eurodollar market at the commencement of such period. A certificate of any Lender setting forth
any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be
delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay
such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

          SECTION 2.17. Taxes.

          (a) Payments Free of Taxes. Any and all payments by or an account of any obligation
of the Borrower hereunder or under any other Loan Document shall be made free and clear of and
without deduction for any Indemnified Taxes or Other Taxes; provided that if the Borrower
shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the
sum payable shall be increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section) the Administrative Agent,
Lender or Issuing Lender, as the case may be, receives an amount equal to the sum it would have
received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii)
the Borrower shall pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

 

 

          (b) Payment of Other Taxes by Borrower. In addition, the Borrower shall pay any Other
Taxes to the relevant Governmental Authority in accordance with applicable law.

          (c) Indemnification by Borrower. The Borrower shall indemnify the Administrative
Agent, each Lender and the Issuing Lender, within 10 days after written demand therefor, for the
full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes
imposed or asserted on or attributable to amounts payable under this Section) paid by the
Administrative Agent, such Lender or the Issuing Lender, as the case may be, and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability delivered to
the Borrower by a Lender or the Issuing Lender, or by the Administrative Agent on its own behalf or
on behalf of a Lender or the Issuing Lender, shall be conclusive absent manifest error.

          (d) Receipt for Payments. As soon as practicable after any payment of Indemnified
Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to the Administrative Agent.

          (e) Foreign Lenders. Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which the Borrower is located, or
any treaty to which such jurisdiction is a party, with respect to payments under this Agreement
shall deliver to the Borrower (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law or reasonably requested by the Borrower, such properly completed and
executed documentation prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate.

          SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

          (a) Payments by the Borrower. The Borrower shall make each payment required to be
made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements,
under Section 2.15, 2.16 or 2.17, or otherwise) or under any other Loan Document (except to the
extent otherwise provided therein) prior to 12:00 noon, New York City time, on the date when due,
in immediately available funds, without set-off or counterclaim. Any amounts received after such
time on any date may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating interest thereon. All
such payments shall be made to the Administrative Agent at its offices at 270 Park Avenue, New
York, New York, except as otherwise expressly provided in the relevant Loan Document and except
that payments expressly provided herein to be made directly to the Issuing Lender or the Swingline
Lender shall be so made and payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be made
directly to the Persons entitled thereto. The Administrative Agent shall distribute any such
payments received by it for the account of any other Person to the appropriate recipient promptly
following receipt thereof. If any payment hereunder shall be due on a day that is not a Business
Day, the date for payment shall be extended to the next succeeding Business Day and, in the case of
any payment accruing interest,

 

 

interest thereon shall be payable for the period of such extension. All payments hereunder or
under any other Loan Document shall be made in dollars.

          (b) Application if Payments Insufficient. If at any time insufficient funds are
received by and available to the Administrative Agent to pay fully all amounts of principal,
unreimbursed LC Disbursements, interest and fees then due hereunder, then such funds as shall
actually have been received shall be applied (i) first, to pay interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest
and fees then due to such parties, and (ii) second, to pay principal and unreimbursed LC
Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with the
amounts of principal and unreimbursed LC Disbursements then due to such parties.

          (c) Pro Rata Treatment. Except to the extent otherwise provided herein with respect
to Swingline Loans, each Borrowing, each payment or prepayment of principal of any Borrowing, each
payment of interest on Loans, each payment of commitment fees and participation fees in respect of
Letters of Credit, each reduction of any Commitment and each conversion of any Borrowing to or
continuation of any Borrowing as a Borrowing of any Type shall be allocated pro rata among the
Lenders in accordance to their respective applicable Commitments.

          (d) Sharing of Payments by Lenders. If any Lender shall, by exercising any right of
set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on
any of its Loans (other than Swingline Loans) or participations in LC Disbursements or Swingline
Loans resulting in such Lender receiving payment of a greater proportion of the aggregate amount of
its Loans and participations in LC Disbursements and Swingline Loans and accrued interest thereon
then due than the proportion received by any other Lender, then the Lender receiving such greater
proportion shall purchase (for cash at face value) participations in the Loans (other than
Swingline Loans) and participations in LC Disbursements and Swingline Loans of other Lenders to the
extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on their respective Loans
(other than Swingline Loans) and participations in LC Disbursements and Swingline Loans;
provided that (i) if any such participations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations shall be rescinded and the purchase
price restored to the extent of such recovery, without interest, and (ii) the provisions of this
paragraph shall not be construed to apply to any payment made by the Borrower pursuant to and in
accordance with the express terms of this Agreement or any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its Loans or
participations in LC Disbursements to any assignee or participant, other than to the Borrower or
any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply).
The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under
applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements
may exercise against the Borrower rights of set-off and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of the Borrower in the amount of
such participation.

          (e) Presumptions of Payment. Unless the Administrative Agent shall have received
notice from the Borrower prior to the date on which any payment is due to the

 

 

Administrative Agent for the account of the Lenders or the Issuing Lender hereunder that the
Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made
such payment on such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders or the Issuing Lender, as the case may be, the amount due. In such
event, if the Borrower has not in fact made such payment, then each of the Lenders or the Issuing
Lender, as the case may be, severally agrees to repay to the Administrative Agent forthwith on
demand the amount so distributed to it with interest thereon, for each day from and including the
date such amount is distributed to it to but excluding the date of payment to the Administrative
Agent, at the Federal Funds Effective Rate.

          (f) Certain Deductions by Administrative Agent. If any Lender shall fail to make any
payment required to be made by it pursuant to Section 2.05(d), 2.06(e) or (f), 2.07(b) or 2.18(e),
then the Administrative Agent may, in its discretion (notwithstanding any contrary provision
hereof), apply any amounts thereafter received by the Administrative Agent for the account of such
Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied
obligations are fully paid.

          SECTION 2.19. Mitigation Obligations; Replacement of Lenders.

          (a) Designation of Different Lending Office. If any Lender requests compensation
under Section 2.15, or if the Borrower is required to pay any additional amount to any Lender or
any Governmental Authority for the account of any Lender pursuant to Section 2.17, then such Lender
shall, at Borrower’s request, use reasonable efforts to designate a different lending office for
funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another
of its offices, branches or affiliates, if, in the good faith judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15 or
2.17, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed
cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby
agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.

          (b) Replacement of Lenders. If any Lender requests compensation under Section 2.15,
or if the Borrower is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.17, or if any Lender defaults in its
obligation to fund Loans hereunder, then the Borrower may, at its sole expense and effort, upon
notice to such Lender and the Administrative Agent, require such Lender to assign and delegate,
without recourse (in accordance with and subject to the restrictions contained in Section 9.04),
all its interests, rights and obligations under this Agreement to an assignee that shall assume
such obligations (which assignee may be another Lender, if a Lender accepts such assignment);
provided that (i) unless the assignee is an existing Lender, the Borrower shall have
received the prior written consent of the Administrative Agent (and, if a Revolving Commitment is
being assigned, the Issuing Lender and the Swingline Lender), which consent shall not unreasonably
be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and participations in LC Disbursements and Swingline Loans, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the
extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of
all other amounts) and (iii) in the case of any such assignment resulting

 

 

from a claim for compensation under Section 2.15 or payments required to be made pursuant to
Section 2.17, such assignment will result in a reduction in such compensation or payments. A
Lender shall not be required to make any such assignment and delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require
such assignment and delegation cease to apply.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

          The Borrower represents and warrants to the Lenders that:

          SECTION 3.01. Organization; Powers. Each of the Borrower and its Subsidiaries is duly
organized, validly existing and in good standing under the laws of the jurisdiction of its
organization, has all requisite power and authority to carry on its business as now conducted and,
except where the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business in, and is in good
standing in, every jurisdiction where such qualification is required.

          SECTION 3.02. Authorization; Enforceability. The Transactions are within the
Borrower’s corporate powers and have been duly authorized by all necessary corporate and, if
required, stockholder action. This Agreement has been duly executed and delivered by the Borrower
and constitutes, and each of the other Loan Documents to which it is a party when executed and
delivered by the Borrower and the other parties thereto will constitute, a legal, valid and binding
obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except
as such enforceability may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or
similar laws of general applicability affecting the enforcement of creditors’ rights and (b) the
application of general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

          SECTION 3.03. Governmental Approvals; No Conflicts. The Transactions (a) do not
require any material consent or approval of, registration or filing with, or any other action by,
any Governmental Authority, except such as have been obtained or made and are in full force and
effect, (b) will not violate any applicable law or regulation or the charter, by-laws or other
organizational documents of the Borrower or any of its Subsidiaries or any order of any
Governmental Authority, (c) will not violate or result in a default under any indenture, agreement
or other instrument binding upon the Borrower or any of its Subsidiaries or assets, or give rise to
a right thereunder to require any payment to be made by any such Person and (d) will not result in
the creation or imposition of any Lien on any asset of the Borrower or any of its Subsidiaries.

          SECTION 3.04. Financial Condition; No Material Adverse Change; Solvency.

          (a) Financial Statements. The Borrower has heretofore delivered, or made available,
to the Lenders the audited consolidated balance sheet and related statements of income,
stockholders’ equity and cash flows of the Borrower and its Subsidiaries as of and for the fiscal
year ended December 31, 2004, reported on by Deloitte & Touche LLP, independent public accountants.
Such financial statements present fairly, in all material respects, the financial

 

 

position and results of operations and cash flows of the Borrower and its consolidated
Subsidiaries as of such dates and for such periods in accordance with GAAP.

          (b) No Material Adverse Change. Since December 31, 2004, there has been no material
adverse change in the business, condition (financial or otherwise), operations, properties or
prospects (excluding adverse changes to prospects as a result of changes affecting the television
broadcasting industry generally) of the Borrower and its Subsidiaries, taken as a whole.

          (c) Solvency. After giving effect to the Transactions, none of the Borrower or any of
its Subsidiaries is insolvent nor will any of them be left with unreasonably small capital with
which to engage in its business or incurred debts beyond its ability to pay such debts as they
mature.

          SECTION 3.05. Properties.

          (a) Real and Personal Property. Each of the Borrower and its Subsidiaries has good
title to, or valid leasehold interests in, all its real and personal property material to its
business, subject only to Liens permitted by Section 6.02 and except for minor defects in title or
interests that do not interfere with their ability to conduct their business as currently conducted
or to utilize such properties for their intended purposes.

          (b) Trademarks and Licenses, etc. Each of the Borrower and its Subsidiaries owns or
is licensed to use all trademarks, tradenames, copyrights, patents and other intellectual property
material to its business, and to the knowledge of the Borrower, the use thereof by the Borrower and
its Subsidiaries does not infringe upon the rights of any other Person, except for any such
infringements that, individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.

          SECTION 3.06. Litigation and Environmental Matters.

          (a) Litigation. There are no actions, suits or proceedings by or before any
arbitrator or Governmental Authority now pending against or, to the knowledge of the Borrower,
threatened against or affecting the Borrower or any of its Subsidiaries (i) as to which there is a
reasonable likelihood of an adverse determination and that, if adversely determined, could
reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or
(ii) that involve this Agreement or the Transactions.

          (b) Environmental Matters. Except for any matters that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect, neither the
Borrower nor any of its Subsidiaries (i) has failed to comply with any Environmental Law or to
obtain, maintain or comply with any permit, license or other approval required under any
Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received
notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for any
Environmental Liability.

          SECTION 3.07. Compliance with Laws and Agreements. Each of the Borrower and its
Subsidiaries is in compliance with all laws, regulations and orders of any Governmental

 

 

Authority applicable to it or its property and all indentures, agreements and other
instruments binding upon it or its property, except where the failure to do so, individually or in
the aggregate, could not reasonably be expected to result in a Material Adverse Effect. No Default
has occurred and is continuing.

          SECTION 3.08. Investment and Holding Company Status. Neither the Borrower nor any of
its Subsidiaries is (a) an “investment company” as defined in, or subject to regulation under, the
Investment Company Act of 1940 or (b) a “holding company” as defined in, or subject to regulation
under, the Public Utility Holding Company Act of 1935.

          SECTION 3.09. Taxes. The Borrower and its Subsidiaries are members of an affiliated
group of corporations filing consolidated returns for Federal income tax purposes, of which the
Borrower is the “common parent” (within the meaning of Section 1504 of the Code). Except with
respect to tax sharing arrangements among the Borrower and its Subsidiaries and the Tax Sharing
Agreement between Hearst and the Borrower dated August 29, 1997, there is no tax sharing allocation
or similar agreement to which the Borrower or any of its Subsidiaries is subject that is currently
in effect providing for the manner in which tax payments owing by members of such affiliated group
are allocated among members of the group. The Borrower has filed all Tax returns and reports
required to have been filed and has paid all Taxes required to have been paid by it, except (a)
Taxes that are being contested in good faith by appropriate proceedings and for which such Person
has set aside on its books adequate reserves or (b) to the extent that the failure to do so could
not reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse Effect. The
present value of all accumulated benefit obligations under each Plan (based on the assumptions used
for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the
most recent financial statements reflecting such amounts, exceed the fair market value of the
assets of such Plan, and the present value of all accumulated benefit obligations of all
underfunded Plans (based on the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most recent financial statements reflecting such
amounts, exceed the fair market value of the assets of all such underfunded Plans, in either case
by an amount that could reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.11. Disclosure. The Borrower has disclosed to the Lenders (i) all
agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries
is subject, and (ii) all other matters known to it that, in the case of either of the foregoing
clauses (i) and (ii), individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect. None of the reports, financial statements, certificates or other written
information (including the Information Memorandum) relating to and produced by the Borrower and
furnished by or on behalf of the Borrower to the Lenders in connection with the negotiation of this
Agreement and the other Loan Documents or delivered hereunder or thereunder (as modified or
supplemented by other information so furnished) contains any material misstatement of fact or omits
to state any material fact necessary to make the statements therein, when taken as

 

 

a whole, in the light of the circumstances under which they were made, not materially
misleading; provided that, with respect to projected financial information (the
“Projections”), the Borrower represents only that such information was prepared in good faith based
upon assumptions believed to be reasonable at the time in light of circumstances in effect on the
date prepared, it being understood that the Projections do not constitute a representation or
warranty as to the future performance of the Borrower and its Subsidiaries and that actual results
may vary from the Projections.

          SECTION 3.12. Use of Credit. Neither the Borrower nor any of its Subsidiaries is
engaged principally, or as one of its important activities, in the business of extending credit for
the purpose, whether immediate, incidental or ultimate, of buying or carrying Margin Stock, and no
part of the proceeds of any extension of credit hereunder will be used to buy or carry any Margin
Stock or to refinance indebtedness originally incurred for such purpose.

          SECTION 3.13. Material Debt Agreements and Liens.

          (a) Material Debt Agreements. Part A of Schedule 3.13 is a complete and correct list
of each credit agreement, loan agreement, indenture, purchase agreement, guarantee, letter of
credit or other arrangement providing for or otherwise relating to any Indebtedness or any
extension of credit (or commitment for any extension of credit) to, or guarantee by, the Borrower
or any of its Subsidiaries outstanding on the date hereof the aggregate principal or face amount of
which equals or exceeds (or may equal or exceed) $10,000,000, and the aggregate principal or face
amount outstanding or that may become outstanding under each such arrangement is correctly
described in Part A of Schedule 3.13.

          (b) Liens. Part B of Schedule 3.13 is a complete and correct list of each Lien
securing Indebtedness of any Person outstanding on the date hereof, to the extent the aggregate
principal or face amount of such Indebtedness equals or exceeds (or may equal or exceed)
$10,000,000, and covering any property of the Borrower or any of its Subsidiaries, and the
aggregate Indebtedness secured (or that may be secured) by each such Lien and the property covered
by each such Lien is correctly described in Part B of Schedule 3.13.

          SECTION 3.14. Subsidiaries.

          (a) Subsidiaries. Set forth in Part A of Schedule 3.14 is a complete and correct list
of all of the Subsidiaries of the Borrower as of the date hereof, together with, for each such
Subsidiary, (i) each Person (other than the holders of shares of stock of the Borrower) holding
ownership interests in such Subsidiary and (ii) the nature of the ownership interests held by each
such Person and the percentage of ownership of such Subsidiary represented by such ownership
interests. As at the date hereof, except as disclosed in Part A of Schedule 3.14, (x) each of the
Borrower and its Subsidiaries owns, free and clear of Liens, and has the unencumbered right to
vote, all outstanding ownership interests in each Person shown to be held by it in Part A of
Schedule 3.14, (y) all of the issued and outstanding capital stock of each such Person organized as
a corporation is validly issued, fully paid and nonassessable and (z) there are no outstanding
Equity Rights with respect to such Person.

 

 

          (b) No Indenture Restrictions, etc. None of the Subsidiaries of the Borrower is on
the date hereof subject to any indenture, agreement, instrument or other arrangement of the type
described in Section 6.08.

          SECTION 3.15. Station Licenses. (a) Other than as disclosed in the Information
Memorandum, as at the date hereof, and as at the most recent date on which a Station License shall
have been acquired pursuant to any Acquisition:

     (i) The Station Licenses are validly issued in the name of, or the FCC has consented to
the assignment of or transfer of control of such Station Licenses to, the Borrower or one or
more of its Subsidiaries.

     (ii) Each Station License is in full force and effect, and the Borrower and its
Subsidiaries have fulfilled and performed in all material respects all of their obligations
with respect thereto and have full power and authority to operate thereunder.

          (b) All operating assets, rights and other property relating to, and material to the
operations of, any Station, are owned (or are available for use under lease, license or other
arrangements entered into with third parties) by the Borrower or one or more of its Subsidiaries.

          SECTION 3.16. Senior Debt Status. The Loans and the other obligations of the Borrower
hereunder constitute “Senior Indebtedness” under and as defined in the Junior Convertible
Subordinated Debentures Indenture.

ARTICLE IV

CONDITIONS

          SECTION 4.01. Effective Date. The obligations of the Lenders to make Loans, and of
the Issuing Lender to issue Letters of Credit hereunder, shall not become effective until the date
on which each of the following conditions is satisfied (or waived in accordance with Section 9.02):

     (a) Executed Counterparts. The Administrative Agent shall have received from
each party hereto either (i) a counterpart of this Agreement signed on behalf of such party
or (ii) written evidence satisfactory to the Administrative Agent (which may include fax
transmission of a signed signature page of this Agreement) that such party has signed a
counterpart of this Agreement.

     (b) Opinion of Counsel to the Borrower. The Administrative Agent shall have
received a written opinion (addressed to the Administrative Agent and the Lenders and dated
the Effective Date) of Clifford Chance US LLP, counsel for the Borrower, substantially in
the form of Exhibit B. The Borrower hereby requests such counsel to deliver such opinion.

     (c) Corporate Documents. The Administrative Agent shall have received such
documents and certificates as the Administrative Agent or its counsel may reasonably request
relating to the organization, existence and good standing of the Borrower, the

 

 

authorization of the Transactions and any other legal matters relating to the Borrower,
this Agreement or the Transactions, all in form and substance reasonably satisfactory to the
Administrative Agent and its counsel.

     (d) Officer’s Certificate. The Administrative Agent shall have received a
certificate, dated the Effective Date and signed by the President, a Vice President or a
Financial Officer of the Borrower, confirming compliance with the conditions set forth in
Section 4.02(a) and (b).

     (e) Leverage Ratio. The Administrative Agent shall have received a certificate
of a Financial Officer setting forth a calculation of the Leverage Ratio as at the Effective
Date.

     (f) Payment of Fees and Expenses. The Administrative Agent shall have received
the unpaid balance of all accrued and unpaid fees and other amounts that are then due and
payable on or prior to the Effective Date, including, to the extent invoiced, reimbursement
or payment of all out-of-pocket expenses (including fees, charges and disbursements of
counsel, subject to the limitations on such fees, charges and disbursements of counsel set
forth in the Fee Letters) required to be reimbursed or paid by the Borrower hereunder or
under any other Loan Document.

          The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and
such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the
Lenders to make Loans and of the Issuing Lender to issue Letters of Credit hereunder shall not
become effective unless each of the foregoing conditions is satisfied (or waived pursuant to
Section 9.02) on or prior to 3:00 p.m., New York City time, on April 30, 2005 (and, in the event
such conditions are not so satisfied or waived, the Commitments shall terminate at such time).

          SECTION 4.02. Each Credit Event. The obligation of each Lender to make a Loan on the
occasion of any Borrowing, and of the Issuing Lender to issue, amend, renew or extend any Letter of
Credit, is subject to the satisfaction of the following conditions:

     (a) the representations and warranties of the Borrower set forth in this Agreement
shall be true and correct in all material respects on and as of the date of such Borrowing
or the date of issuance, amendment, renewal or extension of such Letter of Credit, as
applicable, unless such representation or warranty is expressly stated to have been made as
of a specific date (such as the date hereof or the Effective Date), in which case such
representation and warranty shall be true and correct in all material respects on and as of
such specific date; and

     (b) at the time of and immediately after giving effect to such Borrowing or the
issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no
Default shall have occurred and be continuing.

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be
deemed to constitute a representation and warranty by the Borrower on the date thereof as to the
matters specified in the preceding sentence.

 

 

ARTICLE V

AFFIRMATIVE COVENANTS

          Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit
shall have expired or terminated and all LC Disbursements shall have been reimbursed, the Borrower
covenants and agrees with the Lenders that:

          SECTION 5.01. Financial Statements and Other Information. The Borrower will furnish
to the Administrative Agent and each Lender:

     (a) as soon as available and in any event within 90 days after the end of each fiscal
year of the Borrower, consolidated statements of operations, stockholders’ equity and cash
flows of the Borrower and its Subsidiaries for such fiscal year and the related consolidated
balance sheets of the Borrower and its Subsidiaries as at the end of such fiscal year,
setting forth in each case in comparative (or, for periods prior to any Acquisition,
comparative historical) form the corresponding consolidated figures for the preceding fiscal
year, and accompanied by an opinion thereon of independent certified public accountants of
recognized national standing, which opinion shall state that said consolidated financial
statements fairly present the consolidated financial condition and results of operations of
the Borrower and its Subsidiaries as at the end of, and for, such fiscal year in accordance
with GAAP, consistently applied (except as noted pursuant to clause (c) below);

     (b) as soon as available and in any event within 60 days after the end of each of the
first three quarterly fiscal periods of each fiscal year of the Borrower, consolidated
statements of operations, stockholders’ equity and cash flows of the Borrower and its
Subsidiaries for such period and for the period from the beginning of the respective fiscal
year to the end of such period, and the related consolidated balance sheets of the Borrower
and its Subsidiaries as at the end of such period, setting forth in each case in comparative
(or for periods prior to any Acquisition, comparative historical) form the corresponding
consolidated figures for the corresponding periods in the preceding fiscal year (except
that, in the case of balance sheets, such comparison shall be to the last day of the prior
fiscal year), accompanied by a certificate of a Financial Officer, which certificate shall
state that said consolidated financial statements fairly present the consolidated financial
condition and results of operations of the Borrower and its Subsidiaries, in each case in
accordance with GAAP, consistently applied (except as noted pursuant to clause (c) below) as
at the end of, and for, such period (subject to normal year-end audit adjustments);

     (c) concurrently with any delivery of financial statements under clause (a) or (b) of
this Section, a certificate of a Financial Officer (i) certifying as to whether a Default
has occurred and, if a Default has occurred, specifying the details thereof and any action
taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed
calculations demonstrating compliance with Sections 6.01, 6.05 and 6.10 and (iii) stating
whether any change in GAAP or in the application thereof has occurred since the date of

 

 

the audited financial statements referred to in Section 3.04 that affects (or in the
future is reasonably likely to affect) in any material respect the presentation of financial
information with respect to the Borrower and its Subsidiaries required hereunder and, if any
such change has occurred, specifying the effect of such change on the financial statements
accompanying such certificate;

     (d) promptly after the same become publicly available, copies of all periodic and other
reports, proxy statements and other materials filed by the Borrower or any of its
Subsidiaries with the Securities and Exchange Commission, or any Governmental Authority
succeeding to any or all of the functions of said Commission, or with any national
securities exchange, or distributed by the Borrower to its stockholders generally or to
holders of any class of Indebtedness generally, as the case may be;

     (e) promptly upon their becoming available, copies of any and all periodic or special
reports filed by the Borrower or any of its Subsidiaries with the FCC or with any other
Federal, state or local governmental authority, if such reports indicate any material
adverse change in the business, operations, affairs or condition of the Borrower and its
Subsidiaries, taken as a whole, or if copies thereof are requested by any Lender or the
Administrative Agent, and copies of any and all notices and other communications from the
FCC or from any other Federal, state or local governmental authority with respect to the
Borrower, any of its Subsidiaries or any Station that raises any matters that could,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect;
and

     (f) promptly following any request therefor, such other information regarding the
operations, business affairs and financial condition of the Borrower or any of its
Subsidiaries, or compliance with the terms of this Agreement and the other Loan Documents,
as the Administrative Agent or any Lender may reasonably request.

          Information required to be delivered pursuant to this Section 5.01 shall be deemed to have
been delivered if such information, or one or more annual or quarterly reports containing such
information, shall have been posted by the Administrative Agent on an IntraLinks or similar site to
which the Lenders have been granted access (and a confirming electronic correspondence is delivered
or caused to be delivered by the Administrative Agent to such addresses as a Lender may designate
for this purpose providing notice of such posting) or shall be available on the website of the
Securities and Exchange Commission at http://www.sec.gov (and a confirming electronic
correspondence is delivered or caused to be delivered by the Borrower to the Administrative Agent
providing notice of such availability); provided that the Borrower shall deliver paper
copies of such information to any Lender that requests such delivery. Information required to be
delivered pursuant to this Section 5.01 may also be delivered by electronic communications pursuant
to procedures approved by the Administrative Agent.

          SECTION 5.02. Notices of Material Events. Promptly upon becoming aware thereof, the
Borrower will furnish to the Administrative Agent and each Lender prompt written notice of the
following:

     (a) the occurrence of any Default;

 

 

     (b) the filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting the Borrower or any of its
Affiliates that, if adversely determined, could reasonably be expected to result in a
Material Adverse Effect;

     (c) the occurrence of any ERISA Event that, alone or together with any other ERISA
Events that have occurred, could reasonably be expected to result in a Material Adverse
Effect; and

     (d) any other development that results in, or could reasonably be expected to result
in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer
or other executive officer of the Borrower setting forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect thereto.

          SECTION 5.03. Existence; Conduct of Business. The Borrower will, and will cause each
of its Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in
full force and effect its legal existence and the rights, licenses, permits, privileges and
franchises material to the conduct of its business; provided that the foregoing shall not
prohibit any merger, consolidation, liquidation or dissolution permitted under Section 6.03(a) or
disposition permitted under Section 6.03(b).

          SECTION 5.04. Payment of Obligations. The Borrower will, and will cause each of its
Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, could
reasonably be expected to result in a Material Adverse Effect before the same shall become
delinquent or in default, except where (a) the validity or amount thereof is being contested in
good faith by appropriate proceedings, (b) the Borrower or such Subsidiary has set aside on its
books adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make
payment pending such contest could not reasonably be expected to result in a Material Adverse
Effect.

          SECTION 5.05. Maintenance of Properties; Insurance. The Borrower will, and will cause
each of its Subsidiaries to, (a) keep and maintain all property material to the conduct of its
business in good working order and condition, ordinary wear and tear excepted, and (b) maintain,
with financially sound and reputable insurance companies, insurance in such amounts and against
such risks as are customarily maintained by companies engaged in the same or similar businesses
operating in the same or similar locations, provided that the Borrower will in any event
maintain (with respect to itself and each of its Subsidiaries) casualty insurance and insurance
against claims for damages with respect to defamation, libel, slander, privacy or other similar
injury to person or reputation (including misappropriation of personal likeness), in such amounts
as are then customary for Persons engaged in the same or similar business similarly situated.

          SECTION 5.06. Books and Records; Inspection Rights. The Borrower will, and will cause
each of its Subsidiaries to, keep proper books of record and account in which full, true

 

 

and correct entries are made of all dealings and transactions in relation to its business and
activities. The Borrower will, and will cause each of its Subsidiaries to, permit any
representatives designated by the Administrative Agent or, if an Event of Default has occurred and
is continuing, any Lender (which representatives shall be subject to the confidentiality provisions
of Section 9.12), upon reasonable prior notice, and, unless an Event of Default has occurred and is
continuing, at the cost and expense of the Administrative Agent, to visit and inspect its
properties, to examine and make extracts from its books and records, and to discuss its affairs,
finances and condition with its officers and independent accountants, all at such reasonable times
and as often as reasonably requested.

          SECTION 5.07. Compliance with Laws. The Borrower will, and will cause each of its
Subsidiaries to, comply with all laws, rules, regulations and orders of any Governmental Authority,
including Environmental Laws applicable to it or its property, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

          SECTION 5.08. Use of Proceeds. The proceeds of the Revolving Loans and Swingline
Loans will be used for general corporate purposes of the Borrower and its Subsidiaries, including,
without limitation, the financing of Acquisitions, share repurchases, dividends and debt
prepayments permitted hereunder. The proceeds of the Incremental Term Loans of any Class will be
used for the purposes specified in the Incremental Credit Agreement establishing Loans of such
Class. No part of the proceeds of any Loan will be used, whether directly or indirectly, for any
purpose that entails a violation of any of the Regulations of the Board, including Regulations U
and X.

          SECTION 5.09. Certain Obligations Respecting Subsidiaries. Subject to the provisions
of Section 6.03(b), the Borrower will, and will cause each of its Subsidiaries to, take such action
from time to time as shall be necessary to ensure that each of the Stations and Station Licenses
directly or indirectly owned by it on the date hereof are owned by wholly owned Subsidiaries.

          SECTION 5.10. Senior Debt Status. In the event that the Borrower shall at any time
issue or have outstanding any Indebtedness that by its terms is subordinated to any other
Indebtedness of the Borrower, the Borrower shall take or cause such Subsidiary to take all such
actions as shall be necessary to cause the Loans and the other obligations of the Borrower
hereunder to constitute senior indebtedness (however denominated) in respect of such subordinated
Indebtedness and to enable the Lenders to have and exercise any payment blockage or other remedies
available or potentially available to holders of senior indebtedness under the terms of such
subordinated Indebtedness. Without limiting the foregoing, the Loans and the other obligations of
the Borrower hereunder are hereby designated as “senior indebtedness” and, if relevant, as
“designated senior indebtedness” in respect of all such subordinated Indebtedness and are further
given all such other designations as shall be required under the terms of any such subordinated
Indebtedness in order that the Lenders may have and exercise any payment blockage or other remedies
available or potentially available to holders of senior indebtedness under the terms of such
subordinated indebtedness.

 

 

ARTICLE VI

NEGATIVE COVENANTS

          Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees payable hereunder have been paid in full and all Letters of Credit have expired
or terminated and all LC Disbursements shall have been reimbursed or covered, the Borrower
covenants and agrees with the Lenders that:

          SECTION 6.01. Indebtedness. The Borrower will not, nor will it permit any of its
Subsidiaries to, create, incur, assume or permit to exist any Indebtedness, except:

     (a) Indebtedness created hereunder and under the other Loan Documents;

     (b) Indebtedness existing on the date hereof and set forth in Part A of Schedule 3.13,
together with any extensions, renewals, refinancings or replacements of any such
Indebtedness so long as the principal amount thereof is not increased and no additional
Subsidiaries become obligors or guarantors in respect thereof;

     (c) Indebtedness of any Subsidiary to the Borrower or any other Subsidiary;

     (d) Guarantees by the Borrower of Indebtedness of any Subsidiary and by any Subsidiary
of Indebtedness of any other Subsidiary;

     (e) Indebtedness of the Borrower and its Subsidiaries in respect of the deferred
payment of insurance premiums in an aggregate principal amount not exceeding $10,000,000 at
any time outstanding;

     (f) Indebtedness of any Person that becomes a Subsidiary after the Effective Date;
provided that such Indebtedness exists at the time such Person becomes a Subsidiary
and is not created in contemplation of or in connection with such Person becoming a
Subsidiary;

     (g) other Indebtedness of the Borrower incurred after the Effective Date,
provided that at the time thereof and after giving effect thereto, no Default shall
have occurred and be continuing and the Borrower shall be in pro forma compliance with
Section 6.10 (the determination of such pro forma compliance to be calculated, as at the end
of and for the period of four fiscal quarters most recently ended prior to the date of such
incurrence for which financial statements of the Borrower and its Subsidiaries are
available, under the assumption that such incurrence shall have occurred at the beginning of
such period) and the Borrower shall have delivered to the Administrative Agent a certificate
of a Financial Officer showing such calculations in reasonable detail to demonstrate such
compliance; and

     (h) other Indebtedness of the Subsidiaries in an aggregate principal amount not
exceeding $50,000,000 at any time outstanding.

 

 

          SECTION 6.02. Liens. The Borrower will not, nor will it permit any of its
Subsidiaries to, create, incur, assume or permit to exist any Lien on any property or asset now
owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts
receivable) or rights in respect of any thereof, except:

     (a) Permitted Encumbrances;

     (b) any Lien on any property or asset of the Borrower or any of its Subsidiaries
existing on the date hereof and either set forth in Part B of Schedule 3.13 or not required
to be so listed pursuant to Section 3.13(b); provided that (i) such Lien shall not
extend to any other property or asset of the Borrower or any of its Subsidiaries and (ii)
such Lien shall secure only those obligations that it secures on the date hereof;

     (c) any Lien existing on any property or asset of any Person that becomes a Subsidiary
after the Effective Date prior to the time such Person becomes a Subsidiary;
provided that (i) such Lien is not created in contemplation of or in connection with
such Person becoming a Subsidiary, (ii) such Lien shall not apply to any other property or
assets of the Borrower or any Subsidiary, (iii) such Lien shall secure only those
obligations that it secures on the date such Person becomes a Subsidiary and (iv) the
aggregate amount of Indebtedness or other obligations secured by Liens permitted by this
clause shall not exceed $50,000,000 at any time;

     (d) Liens on fixed or capital assets acquired, constructed or improved by the Borrower
or any Subsidiary; provided that (i) such security interests secure Indebtedness
permitted by Section 6.01, (ii) such security interests and the Indebtedness secured thereby
are incurred prior to or within 90 days after such acquisition or the completion of such
construction or improvement, (iii) the Indebtedness secured thereby does not exceed the cost
of acquiring, constructing or improving such fixed or capital assets and (iv) such security
interests shall not apply to any other property or assets of the Borrower or any Subsidiary;
and

     (e) other Liens on any property or asset of the Borrower or any of its Subsidiaries,
provided that the aggregate amount of Indebtedness or other obligations secured by
Liens permitted by this clause shall not exceed $50,000,000 at any time.

          SECTION 6.03. Fundamental Changes.

          (a) Mergers and Consolidations. The Borrower will not, nor will it permit any of its
Subsidiaries to, enter into any transaction of merger, consolidation or amalgamation, or liquidate,
wind up or dissolve itself (or suffer any liquidation or dissolution); provided that,
subject to Section 6.04, and so long as after giving effect thereto no Default shall have occurred
and be continuing, (i) any Subsidiary may merge into or consolidate with the Borrower or another
Subsidiary so long as the Borrower or (if the Borrower is not a party) a Subsidiary is the
continuing or surviving party, (ii) any Subsidiary may liquidate or dissolve into the Borrower or a
Subsidiary and (iii) the Borrower and its Subsidiaries may enter into the transactions permitted
under clauses (B) and (C) of clause (ii) of paragraph (b) of this Section.

 

 

          (b) Dispositions. The Borrower will not, nor will it permit any of its Subsidiaries
to, sell, transfer, lease or otherwise dispose of all or any substantial part of its assets, except
that, if at the time thereof and immediately after giving effect thereto no Default shall have
occurred and be continuing, (i) any Subsidiary may sell, transfer, lease, exchange or otherwise
dispose of its assets to the Borrower or another Subsidiary and (ii) the Borrower and any of its
Subsidiaries may sell, transfer, lease, exchange or otherwise dispose of (in one transaction or in
a series of transactions and, in the case of clauses (B) and (C) below, in any form, including by
way of a merger or consolidation the effect of which is to result in the disposition of the
respective Station):

     (A) any part of its assets in the ordinary course of business and on ordinary business
terms,

     (B) any Station to the extent that the Borrower or a Subsidiary is required to sell
such Station in order to comply with the FCC’s cross-ownership restrictions set forth in 47
C.F.R. §73.3555(b),

     (C) any one or more Stations, so long as (x) the sum of (i) the amount of Broadcast
Cash Flow for the most recently ended period of four fiscal quarters attributed to such
Station or Stations and (ii) the amount of Broadcast Cash Flow for the most recently ended
period of four fiscal quarters attributed to all Stations sold, transferred, leased,
exchanged or otherwise disposed of during such period (other than any such sale that is
referred to in clause (B) above) does not exceed 25% of the aggregate Broadcast Cash Flow
for such period and (y) the sum of (i) the amount of Broadcast Cash Flow for the most
recently ended period of five consecutive fiscal years attributed to such Station or
Stations and (ii) the amount of Broadcast Cash Flow for the most recently ended period of
five consecutive fiscal years attributed to all Stations sold, transferred, leased,
exchanged or otherwise disposed of during such period (other than any sale that is referred
to in clause (B) above) does not exceed 50% of the aggregate Broadcast Cash Flow for such
period, and

     (D) any non-broadcast assets.

          SECTION 6.04. Lines of Business. The Borrower will not, nor will it permit its
Subsidiaries to, engage in any business or line of business activity other than the businesses in
which the Borrower and its Subsidiaries have heretofore been engaged and businesses reasonably
related thereto.

          SECTION 6.05. Restricted Payments. The Borrower will not, nor will it permit any of
its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any
Restricted Payment; provided that the Borrower may make any Restricted Payment so long as
(a) at the time thereof, and after giving effect thereto, no Default shall have occurred and be
continuing and (b) if after giving effect thereto the Leverage Ratio shall be greater than or equal
to 4.50 to 1, the amount of such Restricted Payment, together with the total amount of all other
Restricted Payments made by the Borrower during the then current fiscal year of the Borrower, shall
not exceed $50,000,000 in the aggregate. Nothing herein shall be deemed to prohibit the payment of
dividends by any Subsidiary to the Borrower or to any other Subsidiary.

 

 

          SECTION 6.06. Transactions with Affiliates. The Borrower will not, nor will it permit
any of its Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or
purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except the following:

     (a) transactions at prices and on terms and conditions not less favorable to the
Borrower or such Subsidiary than could be obtained on an arm’s-length basis from unrelated
third parties;

     (b) transactions between or among the Borrower and its wholly owned Subsidiaries not
involving any other Affiliate;

     (c) any Restricted Payment permitted by Section 6.05 and any merger or consolidation
permitted under Section 6.03(a);

     (d) the options on certain television stations granted by Hearst in favor of the
Borrower and described in Section 9.01(i) of the Amended and Restated Agreement and Plan of
Merger dated as of March 26, 1997 by and among Hearst, HAT Merger Sub, Inc., a Delaware
corporation, HAT Contribution Sub, Inc., a Delaware corporation, and the Borrower;

     (e) arrangements between Hearst and the Borrower with respect to payroll, insurance,
data processing, employee benefits, tax services, auditing, accounting, corporate,
financial, legal and other administrative items that are on terms and conditions not less
favorable to the Borrower than those arrangements historically existing between Hearst and
the Borrower’s Stations and reflected in the projections set forth in the Information
Memorandum, it being understood that such arrangements may provide for an increase in
payments to Hearst based upon an increase in the size of the business of the Borrower and
its Subsidiaries (resulting in an increase in payroll, insurance, data processing, employee
benefits, tax services, auditing, accounting, corporate, financial, legal and other
administrative items);

     (f) transactions between or among the Borrower and/or any wholly owned Subsidiary, on
the one hand, and Hearst and/or any Person in which Hearst has an interest, on the other
hand, provided such transaction is approved by the Borrower’s independent directors;
and

     (g) those agreements listed on Schedule 6.06.

          SECTION 6.07. Restrictive Agreements. The Borrower will not, and will not permit any
of its Subsidiaries to, directly or indirectly, enter into, incur or permit to exist any agreement
or other arrangement that prohibits, restricts or imposes any condition upon (a) the ability of the
Borrower or any Subsidiary to create, incur or permit to exist any Lien upon any of its property or
assets, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect
to any shares of its capital stock or to make or repay loans or advances to the Borrower or any
other Subsidiary or to Guarantee Indebtedness of the Borrower or any other Subsidiary;
provided that (i) the foregoing shall not apply to restrictions and conditions imposed by
law or by this Agreement, (ii) the foregoing shall not apply to customary restrictions and

 

 

conditions contained in agreements relating to the sale of a Subsidiary pending such sale,
provided that such restrictions and conditions apply only to the Subsidiary that is to be
sold and such sale is permitted hereunder, (iii) clause (a) of the foregoing shall not apply to
restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by
this Agreement if such restrictions or conditions apply only to the property or assets securing
such Indebtedness, (iv) clause (a) of the foregoing shall not apply to customary provisions in
leases and other contracts restricting the assignment thereof and (v) the foregoing shall not apply
to any Indebtedness of the Borrower that is pari passu in right of payment with the obligations of
the Borrower hereunder (i.e., not subordinated in right of payment to such obligations).

          SECTION 6.08. Modifications of Certain Documents. Without the prior consent of the
Administrative Agent (to be given upon the approval of the Required Lenders), the Borrower will not
consent to any modification, supplement or waiver of any of the provisions of the Private Placement
Debt Documents, Senior Notes Indentures or Senior Debenture Indenture, or any agreement, instrument
or other document evidencing or relating to Additional Borrower Indebtedness, in a manner that, in
any case, would be materially adverse to the Lenders.

          SECTION 6.09. Fiscal Year. The Borrower will not change the last day of its fiscal
year on more than one occasion in any two-year period.

          SECTION 6.10. Certain Financial Covenants.

          (a) Leverage Ratio. The Borrower will not permit the Leverage Ratio to exceed 5.0 to
1.0 at any time:

          (b) Interest Coverage Ratio. The Borrower will not permit the Interest Coverage Ratio
to be less than (i) 2.0 to 1.0 for any period of four consecutive fiscal quarters ending prior to
September 30, 2006, or (ii) 2.5 to 1.0 for any period of four consecutive fiscal quarters ending on
or after September 30, 2006.

          (c) Consolidated Net Worth. The Borrower will not at any time permit its Consolidated
Net Worth to be less than the sum of (i) $1,044,500,000 plus (ii) 25% of Consolidated Net Income
for each fiscal year ending on or subsequent to December 31, 2004, for which Consolidated Net
Income is positive.

ARTICLE VII

EVENTS OF DEFAULT

          If any of the following events (“Events of Default”) shall occur:

     (a) the Borrower shall fail to pay any principal of any Loan or any reimbursement
obligation in respect of any LC Disbursement when and as the same shall become due and
payable, whether at the due date thereof or at a date fixed for prepayment thereof or
otherwise;

     (b) the Borrower shall fail to pay any interest on any Loan or (after notice from any
Lender or the Administrative Agent) any fee or any other amount (other than an

 

 

amount referred to in clause (a) of this Article) payable under this Agreement or under
any other Loan Document, when and as the same shall become due and payable, and such failure
shall continue unremedied for a period of three Business Days;

     (c) any representation or warranty made or deemed made by or on behalf of the Borrower
in or in connection with this Agreement or any other Loan Document or any amendment or
modification hereof or thereof, or in any report, certificate, financial statement or other
document furnished pursuant to or in connection with this Agreement or any other Loan
Document or any amendment or modification hereof or thereof, shall prove to have been
incorrect when made or deemed made in any material respect;

     (d) the Borrower shall fail to observe or perform any covenant, condition or agreement
contained in Section 5.02, 5.03 (with respect to the Borrower’s existence) or 5.08 or in
Article VI;

     (e) the Borrower shall fail to observe or perform any covenant, condition or agreement
contained in this Agreement (other than those specified in clause (a), (b) or (d) of this
Article) or any other Loan Document and such failure shall continue unremedied for a period
of 30 or more days after notice thereof from the Administrative Agent (given at the request
of any Lender) is received by the Borrower;

     (f) the Borrower or any of its Subsidiaries shall fail to make any payment (whether of
principal or interest and regardless of amount) in respect of any Material Indebtedness,
when and as the same shall become due and payable and such failure shall continue beyond any
applicable grace or cure period;

     (g) any event or condition occurs that results in any Material Indebtedness becoming
due prior to its scheduled maturity or that enables or permits (with or without the giving
of notice, the lapse of time or both) the holder or holders of any Material Indebtedness or
any trustee or agent on its or their behalf to cause any Material Indebtedness to become
due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to
its scheduled maturity; provided that this clause (g) shall not apply to secured
Indebtedness that becomes due as a result of the voluntary sale or transfer of the property
or assets securing such Indebtedness;

     (h) an involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i) liquidation, reorganization or other relief in respect of the Borrower or
any of its Subsidiaries or the debts of the Borrower or any of its Subsidiaries, or of a
substantial part of the assets of the Borrower or any of its Subsidiaries, under any
Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Borrower or any of its Subsidiaries or for a
substantial part of the assets of the Borrower or any of its Subsidiaries, and, in any such
case, such proceeding or petition shall continue undismissed for 60 days or an order or
decree approving or ordering any of the foregoing shall be entered;

 

 

     (i) the Borrower or any of its Subsidiaries shall (i) voluntarily commence any
proceeding or file any petition seeking liquidation, reorganization or other relief under
any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or petition described in clause (h) of this Article,
(iii) apply for or consent to the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for it or for a substantial part of its
assets, (iv) file an answer admitting the material allegations of a petition filed against
it in any such proceeding, (v) make a general assignment for the benefit of creditors or
(vi) take any action for the purpose of effecting any of the foregoing;

     (j) the Borrower or any of its Subsidiaries shall become unable, admit in writing its
inability or fail generally to pay its debts as they become due;

     (k) one or more judgments for the payment of money in an aggregate amount in excess of
$25,000,000 shall be rendered against the Borrower or any of its Subsidiaries or any
combination thereof and the same shall remain undischarged for a period of 30 consecutive
days during which execution shall not be effectively stayed, or any action shall be legally
taken by a judgment creditor to attach or levy upon any assets of the Borrower to enforce
any such judgment;

     (l) an ERISA Event shall have occurred that, in the reasonable judgment of the Required
Lenders, when taken together with all other ERISA Events that have occurred, could
reasonably be expected to result in a Material Adverse Effect;

     (m) a Change of Control shall occur;

     (n) the main station license of any Station shall be revoked or canceled or expire by
its term and not be renewed, or shall be modified in a manner materially adverse to the
Borrower or the Subsidiary operating such Station; provided that a modification of
the main station license to digital operation in compliance with the general rules of the
FCC and the Communications Act of 1934, as amended, shall not be considered a materially
adverse modification of such main station license; or

     (o) any material authorizations, licenses or permits issued by the FCC (other than the
main station license of any Station) shall be revoked or canceled or expire by their terms
and not be renewed, or shall be modified in a manner materially adverse to the Borrower or
the Subsidiary operating such Station, and such revocation, cancellation, expiration,
non-renewal or modification could reasonably be expected to result in a Material Adverse
Effect;

then, and in every such event (other than an event with respect to the Borrower described in clause
(h) or (i) of this Article), and at any time thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Required Lenders shall, by notice to the
Borrower, take either or both of the following actions, at the same or different times:

     (i) terminate the Commitments, and thereupon the Commitments shall terminate
immediately, and

 

 

     (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in
which case any principal not so declared to be due and payable may thereafter be declared to
be due and payable), and thereupon the principal of the Loans so declared to be due and
payable, together with accrued interest thereon and all fees and other obligations of the
Borrower accrued hereunder, shall become due and payable immediately, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by the Borrower;

and in case of any event with respect to the Borrower described in clause (h) or (i) of this
Article, the Commitments shall automatically terminate and the principal of the Loans then
outstanding, together with accrued interest thereon and all fees and other obligations of the
Borrower accrued hereunder, shall automatically become due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by the Borrower.

ARTICLE VIII

THE ADMINISTRATIVE AGENT

          Each of the Lenders and the Issuing Lender hereby irrevocably appoints the Administrative
Agent as its agent hereunder and under the other Loan Documents and authorizes the Administrative
Agent to take such actions on its behalf and to exercise such powers as are delegated to the
Administrative Agent by the terms hereof or thereof, together with such actions and powers as are
reasonably incidental thereto.

          The Person serving as the Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent, and such Person and its Affiliates may accept deposits from, lend money to
and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.

          The Administrative Agent shall not have any duties or obligations except those expressly set
forth herein and in the other Loan Documents. Without limiting the generality of the foregoing,
(a) the Administrative Agent shall not be subject to any fiduciary or other implied duties,
regardless of whether a Default has occurred and is continuing, (b) the Administrative Agent shall
not have any duty to take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that
the Administrative Agent is required to exercise in writing by the Required Lenders, and (c) except
as expressly set forth herein and in the other Loan Documents, the Administrative Agent shall not
have any duty to disclose, and shall not be liable for the failure to disclose, any information
relating to the Borrower or any of its Subsidiaries that is communicated to or obtained by the bank
serving as Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent
shall not be liable for any action taken or not taken by it with the consent or at the request of
the Required Lenders or in the absence of its own gross negligence or willful misconduct. The
Administrative Agent shall be deemed not to have knowledge of any Default unless and until written
notice thereof is given to the Administrative Agent by the Borrower or a Lender, and the
Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i)
any statement, warranty or representation made in or

 

 

in connection with this Agreement or any other Loan Document, (ii) the contents of any
certificate, report or other document delivered hereunder or thereunder or in connection herewith
or therewith, (iii) the performance or observance of any of the covenants, agreements or other
terms or conditions set forth herein or therein, (iv) the validity, enforceability, effectiveness
or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or
document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein or
therein, other than to confirm receipt of items expressly required to be delivered to the
Administrative Agent.

          The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing believed by it to be genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any liability for relying
thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the
Borrower), independent accountants and other experts selected by it, and shall not be liable for
any action taken or not taken by it in accordance with the advice of any such counsel, accountants
or experts.

          The Administrative Agent may perform any and all its duties and exercise its rights and powers
by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative
Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the preceding paragraphs
shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any
such sub-agent, and shall apply to their respective activities in connection with the syndication
of the credit facilities provided for herein as well as activities as Administrative Agent.

          Subject to the appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying the Lenders, the
Issuing Lender and the Borrower. Upon any such resignation, the Required Lenders shall have the
right to appoint a successor subject to the consent of the Borrower (such consent not to be
unreasonably withheld or delayed); provided that no such consent of the Borrower shall be
required if an Event of Default has occurred and is continuing. If no successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment within 30 days after the
retiring Administrative Agent gives notice of its resignation, then the retiring Administrative
Agent may, on behalf of the Lenders and the Issuing Lender, appoint a successor Administrative
Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank.
Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such
successor shall succeed to and become vested with all the rights, powers, privileges and duties of
the retiring Administrative Agent and the retiring Administrative Agent shall be discharged from
its duties and obligations hereunder. The fees payable by the Borrower to a successor
Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrower and such successor (and, as provided in Section 2.12(c), the retiring
Administrative Agent shall make available to the Borrower a ratable portion of any fees theretofore
paid to the Administrative Agent for the period during

 

 

which the resignation or removal of such retiring Administrative Agent shall occur to the
extent the Borrower is required to pay fees for the balance of such period to the successor
Administrative Agent). After the Administrative Agent’s resignation hereunder, the provisions of
this Article and Section 9.03 shall continue in effect for its benefit in respect of any actions
taken or omitted to be taken by it while it was acting as Administrative Agent.

          Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each
Lender also acknowledges that it will, independently and without reliance upon the Administrative
Agent or any other Lender and based on such documents and information as it shall from time to time
deem appropriate, continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any other Loan Document or any related agreement or any document furnished
hereunder or thereunder.

          Except as otherwise provided in Section 9.02(b) with respect to this Agreement, the
Administrative Agent may, with the prior consent of the Required Lenders (but not otherwise),
consent to any modification, supplement or waiver under any of the Loan Documents.

          It is agreed that the Co-Syndication Agents and Co-Documentation Agents shall, in their
capacities as such, have no duties or responsibilities under this Agreement or any other Loan
Document. Neither the Co-Syndication nor the Co-Documentation Agents, in their capacities as such,
have or be deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges
that it has not relied, and will not rely, on the Co-Syndication Agents or the Co-Documentation
Agents in deciding to enter into this Agreement or any other Loan Document or in taking or not
taking any action hereunder or thereunder.

ARTICLE IX

MISCELLANEOUS

          SECTION 9.01. Notices. Except in the case of notices and other communications
expressly permitted to be given by telephone, all notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by fax, as follows:

     (a) if to the Borrower, to Hearst-Argyle Television, Inc., 888 7th Avenue,
Suite 2700, New York, New York 10106, Attention of Harry T. Hawks (Fax No. 212-887-6855);

     (b) if to the Administrative Agent, the Issuing Lender or the Swingline Lender, to
JPMorgan Chase Bank, N.A., Loan and Agency Services Group, 1111 Fannin Street, Floor 10,
Houston, TX 77002, Attention of Dakisha Allen (Fax No. 713-750-2666), with a copy to
JPMorgan Chase Bank, N.A., 270 Park Avenue, New York, New York 10017, Attention of Peter
Thauer (Fax No. 212-270-4584); and

 

 

     (c) if to a Lender, to it at its address (or fax number) set forth in its
Administrative Questionnaire.

Any party hereto may change its address or fax number for notices and other communications
hereunder by notice to the other parties hereto. All notices and other communications given to any
party hereto in accordance with the provisions of this Agreement shall be deemed to have been given
on the date of receipt.

          SECTION 9.02. Waivers; Amendments.

          (a) No Deemed Waivers; Remedies Cumulative. No failure or delay by the Administrative
Agent, the Issuing Lender or any Lender in exercising any right or power hereunder shall operate as
a waiver thereof, nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights and remedies of
the Administrative Agent, the Issuing Lender and the Lenders hereunder are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of
this Agreement or consent to any departure by the Borrower therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver
or consent shall be effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of
Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative
Agent, any Lender or the Issuing Lender may have had notice or knowledge of such Default at the
time.

          (b) Amendments. Except as provided in paragraph (c) of this Section, neither this
Agreement nor any provision hereof may be waived, amended or modified except pursuant to an
agreement or agreements in writing entered into by the Borrower and the Required Lenders or by the
Borrower and the Administrative Agent with the consent of the Required Lenders; provided
that no such agreement shall (i) increase any Commitment of any Lender or the aggregate amount of
any extension of credit required to be made by any Lender pursuant to its Commitments without the
written consent of such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or
reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written
consent of each Lender affected thereby, (iii) postpone the date of any scheduled payment of the
principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable
hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled
date of any expiration of any Commitment, without the written consent of each Lender affected
thereby, (iv) change Section 2.18(c) or (d) in a manner that would alter the pro
rata sharing of payments required thereby, without the written consent of each Lender, (v)
change any of the provisions of this Section or the percentage set forth in definition of the term
“Required Lenders” or any other provision hereof specifying the number or percentage of Lenders (or
Lenders holding Loans or Commitments of any Class) required to waive, amend or modify any rights
hereunder or make any determination or grant any consent hereunder, without the written consent of
each Lender (or each Lender holding Loans or Commitments of such Class, as the case may be), or
(vi) change any provisions of any Loan Document in a manner that by its terms adversely affects the
rights in respect of payments due to Lenders holding Loans of any Class differently than those
holding Loans of any other Class,

 

 

without the written consent of Lenders holding a majority in interest of the outstanding Loans
and unused Commitments of each affected Class; and provided further that no such
agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent,
the Issuing Lender or the Swingline Lender hereunder without the prior written consent of the
Administrative Agent, the Issuing Lender or the Swingline Lender, as the case may be.

          (c) Each of the parties hereto hereby agrees that, notwithstanding anything in this Section to
the contrary, upon the effectiveness of any Incremental Credit Agreement, this Agreement shall be
deemed amended to the extent (but only to the extent) reasonably determined by the Administrative
Agent to be necessary to reflect the existence and terms of the Incremental Term Loans evidenced
thereby; provided, however, that no such amendment shall affect the terms of the Revolving
Loans as set forth in this Agreement. Any such deemed amendment may be memorialized in writing by
the Administrative Agent with the Borrower’s consent (not to be unreasonably withheld or delayed)
and furnished to the other parties hereto.

          SECTION 9.03. Expenses; Indemnity; Damage Waiver.

          (a) Costs and Expenses. The Borrower shall pay (i) all reasonable out-of-pocket
expenses incurred by the Administrative Agent and its Affiliates, including the reasonable fees,
charges and disbursements of counsel for the Administrative Agent (subject to the limitations on
such fees, charges and disbursements of counsel set forth in the Fee Letters), in connection with
the syndication of the credit facilities provided for herein, the preparation of this Agreement and
the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or
thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii)
all reasonable out-of-pocket expenses incurred by the Issuing Lender in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment
thereunder and (iii) all out-of-pocket expenses incurred by the Administrative Agent, the Issuing
Lender or any Lender, including the fees, charges and disbursements of any counsel for the
Administrative Agent, the Issuing Lender or any Lender, in connection with the enforcement or
protection of its rights in connection with this Agreement and the other Loan Documents, including
its rights under this Section, or in connection with the Loans made or Letters of Credit issued
hereunder, including in connection with any workout, restructuring or negotiations in respect
thereof.

          (b) Indemnification by Borrower. The Borrower shall indemnify the Administrative
Agent, the Issuing Lender and each Lender, and each Related Party of any of the foregoing Persons
(each such Person being called an “Indemnitee”), against, and hold each Indemnitee harmless
from, any and all losses, claims, damages, liabilities and related expenses, including the fees,
charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any
Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of
this Agreement or any agreement or instrument contemplated hereby, the performance by the parties
hereto of their respective obligations hereunder or the consummation of the Transactions or any
other transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use of the
proceeds therefrom (including any refusal by the Issuing Lender to honor a demand for payment under
a Letter of Credit if the documents presented in connection with such demand do not strictly comply
with the terms of such Letter of Credit), or (iii) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the

 

 

foregoing, whether based on contract, tort or any other theory and regardless of whether any
Indemnitee is a party thereto (and regardless of whether such matter is instituted by a third party
or by the Borrower or any Subsidiary); provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related
expenses resulted from the gross negligence or willful misconduct of such Indemnitee.

          (c) Reimbursement by Lenders. To the extent that the Borrower fails to pay any amount
required to be paid by it to the Administrative Agent, the Issuing Lender or the Swingline Lender
under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the
Administrative Agent, the Issuing Lender or the Swingline Lender, as the case may be, such Lender’s
pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity
payment is sought) of such unpaid amount; provided that the unreimbursed expense or
indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by
or asserted against the Administrative Agent, such Issuing Lender or the Swingline Lender in its
capacity as such. For purposes of this paragraph, a Lender’s “pro rata share” shall be determined
based upon its share of the sum of the total Revolving Exposures, outstanding Incremental Term
Loans and unused Commitments at the time.

          (d) Waiver of Consequential Damages, etc. To the extent permitted by applicable law,
the Borrower shall not assert, and the Borrower hereby waives, any claim against any Indemnitee, on
any theory of liability, for special, indirect, consequential or punitive damages (as opposed to
direct or actual damages) arising out of, in connection with, or as a result of, this Agreement or
any agreement or instrument contemplated hereby, the Transactions, any Loan or Letter of Credit or
the use of the proceeds thereof.

          (e) Payments. All amounts due under this Section shall be payable promptly after
written demand (attaching any relevant invoices) therefor.

          SECTION 9.04. Successors and Assigns.

          (a) Assignments Generally. The provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns permitted
hereby (including any Affiliate of the Issuing Lender that issues any Letter of Credit), except
that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted assignment or
transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign
or otherwise transfer its rights or obligations hereunder except in accordance with this Section.
Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns permitted hereby and, to
the extent expressly contemplated hereby (including any Affiliate of the Issuing Lender that issues
any Letter of Credit), Participants (to the extent provided in paragraph (c) of this Section) and,
to the extent expressly contemplated hereby, the Related Parties of each of the Administrative
Agent, the Issuing Lender and the Lenders) any legal or equitable right, remedy or claim under or
by reason of this Agreement.

          (b) Assignments by Lenders. (i) Subject to the conditions set forth in paragraph
(b)(ii) of this Section, any Lender may assign to one or more assignees all or a portion

 

 

of its rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans at the time owing to it) with the prior written consent (such consent not
to be unreasonably withheld or delayed) of:

     (A) the Borrower, provided that no consent of the Borrower shall be required
for an assignment to a Lender, an Affiliate of a Lender or, if an Event of Default has
occurred and is continuing, any other assignee;

     (B) the Administrative Agent; and

     (C) in the case of an assignment of all or a portion of a Revolving Commitment, the
Swingline Lender and the Issuing Lender.

     (ii) Assignments shall be subject to the following additional conditions:

     (A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans of
any Class, the amount of the Commitment or Loans of the assigning Lender subject to each
such assignment (determined as of the date the Assignment and Assumption with respect to
such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000
or, in the case of any Incremental Term Commitment or an Incremental Term Loan, $1,000,000,
and the minimum Commitment of an assigning Lender shall not be less than $5,000,000 after
giving effect to any partial assignment, in each case unless each of the Borrower and the
Administrative Agent otherwise consents, provided that no such consent of the
Borrower shall be required if an Event of Default has occurred and is continuing;

     (B) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement, provided
that this clause shall not be construed to prohibit the assignment of a proportionate part
of all the assigning Lender’s rights and obligations in respect of one Class of Commitments
or Loans;

     (C) the assignor and assignee party to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a processing and
recordation fee of $3,500; and

     (D) the assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire.

     (iii) Subject to acceptance and recording thereof pursuant to paragraph (d) of this
Section, from and after the effective date specified in each Assignment and Assumption the
assignee thereunder shall be a party hereto and, to the extent of the interest assigned by
such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned
by such Assignment and Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease

 

 

to be a party hereto but shall continue to be entitled to the benefits of Sections
2.15, 2.16, 2.17 and 9.03). Any assignment or transfer by a Lender of rights or obligations
under this Agreement that does not comply with this Section shall be treated for purposes of
this Agreement as a sale by such Lender of a participation in such rights and obligations in
accordance with paragraph (e) of this Section.

          (c) Maintenance of Register by Administrative Agent. The Administrative Agent, acting
for this purpose as an agent of the Borrower, shall maintain at one of its offices a copy of each
Assignment and Assumption delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitments of, and principal amount of the Loans and LC
Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the
“Register”). The entries in the Register shall be conclusive, absent manifest error, and
the Borrower, the Issuing Lender and the Lenders may treat each Person whose name is recorded in
the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for inspection by the
Borrower, the Issuing Lender and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.

          (d) Effectiveness of Assignments. Upon its receipt of a duly completed Assignment and
Assumption executed by an assigning Lender and an assignee, the assignee’s completed Administrative
Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and
recordation fee referred to in paragraph (b) of this Section and any written consent to such
assignment required by paragraph (b) of this Section, the Administrative Agent shall accept such
Assignment and Assumption and record the information contained therein in the Register. No
assignment shall be effective for purposes of this Agreement unless it has been recorded in the
Register as provided in this paragraph.

          (e) Participations. Any Lender may, without the consent of the Borrower, the
Administrative Agent, the Issuing Lender or the Swingline Lender, sell participations to one or
more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights
and obligations under this Agreement and the other Loan Documents (including all or a portion of
its Commitments and the Loans owing to it); provided that (i) such Lender’s obligations
under this Agreement and the other Loan Documents shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of such obligations and
(iii) the Borrower, the Administrative Agent, the Issuing Lender and the other Lenders shall
continue to deal solely and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement and the other Loan Documents. Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and the other Loan Documents and to approve any amendment,
modification or waiver of any provision of this Agreement or any other Loan Document;
provided that such agreement or instrument may provide that such Lender will not, without
the consent of the Participant, agree to any amendment, modification or waiver described in the
first proviso to Section 9.02(b) that affects such Participant. Subject to paragraph (f) of this
Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections
2.15, 2.16 and 2.17 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section.

 

 

          (f) Limitations on Rights of Participants. A Participant shall not be entitled to
receive any greater payment under Section 2.15 or 2.17 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant, unless the sale of
the participation to such Participant is made with the Borrower’s prior written consent. A
Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 2.17 unless the Borrower is notified of the participation sold to such
Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section
2.17(e) as though it were a Lender, provided that in no event shall the Borrower be
required to pay a greater sum to such Participant than it would have been required to pay to the
Lender from which such Participant acquired such participation.

          (g) Pledges. Any Lender may at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure obligations of such Lender, including
any such pledge or assignment to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its obligations hereunder or
substitute any such assignee for such Lender as a party hereto.

          SECTION 9.05. Survival. All covenants, agreements, representations and warranties
made by the Borrower herein and in the certificates or other instruments delivered in connection
with or pursuant to this Agreement shall be considered to have been relied upon by the other
parties hereto and shall survive the execution and delivery of this Agreement and the making of any
Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other
party or on its behalf and notwithstanding that the Administrative Agent, the Issuing Lender or any
Lender may have had notice or knowledge of any Default or incorrect representation or warranty at
the time any credit is extended hereunder, and shall continue in full force and effect so long as
the principal of or any accrued interest on any Loan or any fee or any other amount payable under
this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the
Commitments have not expired or terminated. The provisions of Sections 2.15, 2.16, 2.17 and 9.03
and Article VIII shall survive and remain in full force and effect regardless of the consummation
of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination
of the Letters of Credit and the Commitments or the termination of this Agreement or any provision
hereof.

          SECTION 9.06. Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement and any separate letter agreements with respect to fees payable to the
Administrative Agent constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall
become effective when it shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns. Delivery of an
executed counterpart of a signature page of this Agreement by fax shall be effective as delivery of
a manually executed counterpart of this Agreement.

 

 

          SECTION 9.07. Severability. Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

          SECTION 9.08. Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender is hereby authorized at any time and from time to time, to the fullest
extent permitted by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any time owing by such
Lender to or for the credit or the account of the Borrower against any of and all the obligations
of the Borrower now or hereafter existing under this Agreement held by such Lender, irrespective of
whether or not such Lender shall have made any demand under this Agreement and although such
obligations may be unmatured. The rights of each Lender under this Section are in addition to
other rights and remedies (including other rights of setoff) which such Lender may have.

          SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process.

          (a) Governing Law. This Agreement shall be construed in accordance with and governed
by the law of the State of New York.

          (b) Submission to Jurisdiction. Each of the parties hereto hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the
Supreme Court of the State of New York sitting in New York County and of the United States District
Court of the Southern District of New York, and any appellate court from any thereof, in any action
or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of
any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined in such New York
State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees
that a final judgment in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in
this Agreement shall affect any right that the Administrative Agent, the Issuing Lender or any
Lender may otherwise have to bring any action or proceeding relating to this Agreement against the
Borrower or its properties in the courts of any jurisdiction.

          (c) Waiver of Venue. Each of the parties hereto hereby irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do so, any objection
which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement in any court referred to in paragraph (b) of this Section.
Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the
defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

          (d) Service of Process. Each party to this Agreement irrevocably consents to service
of process in the manner provided for notices in Section 9.01. Nothing in this Agreement

 

 

will affect the right of any party to this Agreement to serve process in any other manner
permitted by law.

          SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

          SECTION 9.11. Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

          SECTION 9.12. Treatment of Certain Information; Confidentiality.

          (a) Confidentiality. Each of the Administrative Agent, the Issuing Lender and the
Lenders agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and
agents, including accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential on the terms set forth in this
Agreement), (b) to the extent requested by any regulatory authority or administrative body or
commission, (c) to the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party to this Agreement, (e) in connection with the
exercise of any remedies hereunder or under any other Loan Document or any suit, action or
proceeding relating to this Agreement or any other Loan Document or the enforcement of rights
hereunder or thereunder, (f) subject to the execution of an agreement containing provisions
substantially the same as those of this Section, to any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations under this Agreement or
to any direct, indirect, actual or prospective counterparty (and its advisor) to any swap,
derivative or securitization transaction related to the Obligations under this Agreement, (g) with
the consent of the Borrower or (h) to the extent such Information becomes publicly available other
than as a result of a breach of this Section. For the purposes of this Section,
“Information” means all information received from the Borrower relating to the Borrower or
its business, other than any such information that is available to the Administrative Agent, the
Issuing Lender or any Lender on a nonconfidential basis prior to disclosure by the Borrower.
Unless specifically prohibited by applicable law or court order or in the case of clause (b) above,
each Lender and the Administrative Agent shall, prior to disclosure thereof, notify the Borrower of
any request for disclosure of any such non-public information (A) by any governmental agency or
representative thereof (other than any such request in connection with an examination of the
financial condition such Lender by

 

 

such governmental agency) or (B) pursuant to legal process (including agency subpoenas). Any
Person required to maintain the confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has exercised the same
degree of care to maintain the confidentiality of such Information as such Person would accord to
its own confidential information.

          SECTION 9.13. USA Patriot Act. Each Lender that is subject to the requirements of the
USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot
Act”) hereby notifies Borrower that pursuant to the requirements of the Patriot Act, it is required
to obtain, verify and record information that identifies the Borrower, which information includes
the name and address of the Borrower and other information that will allow such Lender to identify
the Borrower in accordance with the Patriot Act.

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	HEARST-ARGYLE TELEVISION, INC.,
	 
	 	 	 	 	 	 
	

	 	     by	 	 	 	 
	 	 	 	 	/s/ Harry T. Hawks

	 	 	 	 	 
	

	 	 	 	Name:
	 	Harry T. Hawks
	

	 	 	 	Title:
	 	Executive Vice President
 and Chief Financial
Officer
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.,
 individually
and as Administrative Agent, 
Swingline
Lender and Issuing Lender,
	 
	 	 	 	 	 	 
	

	 	     by	 	 	 	 
	 	 	 	 	/s/ Peter B. Thauer

	 	 	 	 	 
	

	 	 	 	Name:
	 	Peter B. Thauer
	

	 	 	 	Title:
	 	Vice President

 

 

SIGNATURE PAGE TO

THE FIVE-YEAR CREDIT AGREEMENT OF

HEARST-ARGYLE TELEVISION, INC.

	 	 	 	 	 
	 	 	Name of Institution: BANK OF AMERICA, N.A.
	 
	 	 	 	 
	

	 	     by	 	 
	

	 	 	 	/s/ Christopher T. Ray
	

	 	 	 	 
	

	 	 	 	Name: Christopher T. Ray
	

	 	 	 	Title:   Vice President

 

 

SIGNATURE PAGE TO

THE FIVE-YEAR CREDIT AGREEMENT OF

HEARST-ARGYLE TELEVISION, INC.

	 	 	 	 	 
	 	 	Name of Institution: BNP PARIBAS
	 
	 	 	 	 
	

	 	     by	 	 
	

	 	 	 	/s/ Ola Anderssen
	

	 	 	 	 
	

	 	 	 	Name: Ola Anderssen
	

	 	 	 	Title:   Director
	 
	 	 	 	 
	

	 	     by	 	 
	

	 	 	 	/s/ Stephanie Rogers
	

	 	 	 	 
	

	 	 	 	Name: Stephanie Rogers
	

	 	 	 	Title:   Vice President

 

 

SIGNATURE PAGE TO

THE FIVE-YEAR CREDIT AGREEMENT OF

HEARST-ARGYLE TELEVISION, INC.

	 	 	 	 	 
	 	 	Name of Institution: HARRIS NESBITT

FINANCING, INC.
	 
	 	 	 	 
	

	 	     by	 	 
	

	 	 	 	/s/ Naghmeh Hashemifard
	

	 	 	 	 
	

	 	 	 	Name: Naghmeh Hashemifard
	

	 	 	 	Title:    Vice President

 

 

SIGNATURE PAGE TO

THE FIVE-YEAR CREDIT AGREEMENT OF

HEARST-ARGYLE TELEVISION, INC.

	 	 	 	 	 
	 	 	Name of Institution: MIZUHO CORPORATE BANK
LTD.
	 
	 	 	 	 
	

	 	     by	 	 
	

	 	 	 	/s/ Mark Gronich
	

	 	 	 	 
	

	 	 	 	Name: March Gronich
	

	 	 	 	Title:   Senior Vice President

 

 

SIGNATURE PAGE TO

THE FIVE-YEAR CREDIT AGREEMENT OF

HEARST-ARGYLE TELEVISION, INC.

	 	 	 	 	 
	 	 	Name of Institution: THE BANK OF NEW YORK
	 
	 	 	 	 
	

	 	     by	 	 
	

	 	 	 	/s/ Kristen E. Talaber
	

	 	 	 	 
	

	 	 	 	Name: Kristen E. Talaber
	

	 	 	 	Title:   Vice President

 

 

SIGNATURE PAGE TO

THE FIVE-YEAR CREDIT AGREEMENT OF

HEARST-ARGYLE TELEVISION, INC.

	 	 	 	 	 
	 	 	Name of Institution: THE ROYAL BANK OF
SCOTLAND PLC
	 
	 	 	 	 
	

	 	     by	 	 
	

	 	 	 	/s/ Matthew Jones
	

	 	 	 	 
	

	 	 	 	Name: Matthew Jones
	

	 	 	 	Title:   Senior Vice President

 

 

SIGNATURE PAGE TO

THE FIVE-YEAR CREDIT AGREEMENT OF

HEARST-ARGYLE TELEVISION, INC.

	 	 	 	 	 
	 	 	Name of Institution: UFJ BANK LIMITED
	 
	 	 	 	 
	

	 	     by	 	 
	

	 	 	 	/s/ Tarik Hussain
	

	 	 	 	 
	

	 	 	 	Name: Tarik Hussain
	

	 	 	 	Title:    Vice President

 

 

SIGNATURE PAGE TO

THE FIVE-YEAR CREDIT AGREEMENT OF

HEARST-ARGYLE TELEVISION, INC.

	 	 	 	 	 
	 	 	Name of Institution: WACHOVIA BANK, N.A.
	 
	 	 	 	 
	

	 	     by	 	 
	

	 	 	 	/s/ James F. Heatwole
	

	 	 	 	 
	

	 	 	 	Name: James F. Heatwole
	

	 	 	 	Title:   Director

 

 

SIGNATURE PAGE TO

THE FIVE-YEAR CREDIT AGREEMENT OF

HEARST-ARGYLE TELEVISION, INC.

	 	 	 	 	 
	 	 	Name of Institution: WELLS FARGO BANK,
NATIONAL ASSOCIATION
	 
	 	 	 	 
	

	 	     by	 	 
	

	 	 	 	/s/ Steven Buehler
	

	 	 	 	 
	

	 	 	 	Name: Steven Buehler
	

	 	 	 	Title:   Vice President
	 
	 	 	 	 
	

	 	     by	 	 
	

	 	 	 	/s/ Charlie Reed
	

	 	 	 	 
	

	 	 	 	Name: Charlie Reed
	

	 	 	 	Title:   Vice President

 

 

Schedule 2.01

COMMITMENTS

	 	 	 	 	 	 	 	 
	 
	 	Lender	 	 	Revolving Commitment	 	 
	 	JPMorgan Chase Bank, N.A.
	 	 	$	30,000,000	 	 
	 	Bank of America, N.A.
	 	 	$	30,000,000	 	 
	 	Wachovia Bank, N.A.
	 	 	$	27,500,000	 	 
	 	Harris Nesbitt Financing, Inc.
	 	 	$	27,500,000	 	 
	 	BNP Paribas
	 	 	$	27,500,000	 	 
	 	The Royal Bank of Scotland plc
	 	 	$	27,500,000	 	 
	 	The Bank of New York
	 	 	$	20,000,000	 	 
	 	Wells Fargo Bank, National Association
	 	 	$	20,000,000	 	 
	 	Mizuho Corporate Bank Ltd.
	 	 	$	20,000,000	 	 
	 	UFJ Bank Limited
	 	 	$	20,000,000	 	 
	 	Total
	 	 	$	250,000,000	 	 
	 

 

 

Schedule 3.13

MATERIAL AGREEMENTS AND LIENS

PART A – MATERIAL AGREEMENTS

	 	 	 	 	 
	 	 	Aggregate Principal	 
	Description	 	Amount Outstanding	 
	Indenture, dated November 13, 1997, by and among the
Borrower and Bank of Montreal Trust Company, as
supplemented, dated November 13, 1997 related to
$125,000,000 7% Senior Notes due 2007 and to
$175,000,000 7.5% Debentures due 2027, and as
supplemented by the Second Supplemental Indenture,
dated January 13, 1998 relating to $200,000,000 7%
Senior Notes due January 15, 2018.
	 	$	432,110,000	 
	 
	 	 	 	 
	Note Purchase Agreement, dates as of December 1, 1998,
by and among the Borrower and the parties listed on
the signature pages thereto related to 7.18% Senior
Notes due 2010.
	 	$	450,000,000	 
	 
	 	 	 	 
	Preferred Securities Guarantee Agreement between
Hearst-Argyle Television, Inc. and Wilmington Trust
Company Dated as of December 20, 2001.
	 	$	130,000,000	 

PART B – LIENS

None.

 

 

Schedule 3.14

LIST OF SUBSIDIARIES OF THE COMPANY

	 	 	 
	Entity Name*	 	State of Organization
	HEARST-ARGYLE STATIONS, INC.

	 	NEVADA
	WAPT HEARST-ARGYLE TELEVISION, INC.

	 	CALIFORNIA
	KHBS HEARST-ARGYLE TELEVISION, INC.

	 	CALIFORNIA
	KMBC HEARST-ARGYLE TELEVISION, INC.

	 	CALIFORNIA
	WBAL HEARST-ARGYLE TELEVISION, INC.

	 	CALIFORNIA
	WCVB HEARST-ARGYLE TELEVISION, INC.

	 	CALIFORNIA
	WISN HEARST-ARGYLE TELEVISION, INC.

	 	CALIFORNIA
	WTAE HEARST-ARGYLE TELEVISION, INC.

	 	CALIFORNIA
	OHIO/OKLAHOMA HEARST-ARGYLE TELEVISION, INC.

	 	NEVADA
	JACKSON HEARST-ARGYLE TELEVISION, INC.

	 	DELAWARE
	ARKANSAS HEARST-ARGYLE TELEVISION, INC.

	 	DELAWARE
	HEARST-ARGYLE SPORTS, INC.

	 	DELAWARE
	HEARST-ARGYLE PROPERTIES, INC.

	 	DELAWARE
	HATV INVESTMENTS, INC.

	 	DELAWARE
	DES MOINES HEARST-ARGYLE TELEVISION, INC.

	 	DELAWARE
	ORLANDO HEARST-ARGYLE TELEVISION, INC.

	 	DELAWARE
	NEW ORLEANS HEARST-ARGYLE TELEVISION, INC.

	 	DELAWARE
	WYFF HEARST-ARGYLE TELEVISION, INC.

	 	CALIFORNIA
	WXII HEARST-ARGYLE TELEVISION, INC.

	 	CALIFORNIA
	KOAT HEARST-ARGYLE TELEVISION, INC.

	 	CALIFORNIA
	WLKY HEARST-ARGYLE TELEVISION, INC.

	 	CALIFORNIA
	KETV HEARST-ARGYLE TELEVISION, INC.

	 	CALIFORNIA
	WGAL HEARST-ARGYLE TELEVISION, INC.

	 	CALIFORNIA
	HEARST-ARGYLE CAPITAL TRUST

	 	DELAWARE

	*	 	All subsidiaries are wholly owned.

 

 

Schedule 6.06

CERTAIN AFFILIATE TRANSACTIONS

	1.  	Services Agreement, dated August 29, 1997, by and between Hearst and the Borrower, as
amended from time to time.
	 
	2.  	Management Services Agreement, dated August 29, 1997, by and between Hearst and the
Borrower, as amended from time to time.
	 
	3.  	Studio Lease Agreement, dated August 29, 1997, by and between Hearst and the Borrower,
as amended from time to time.
	 
	4.  	Television Option Agreement, dated August 29, 1997, by and between Hearst and the
Borrower, as amended from time to time.
	 
	5.  	Tax Sharing Agreement, dated August 29, 1997, by and between Hearst and the Borrower.
	 
	6.  	License Agreement, dated August 29, 1997, by and between Hearst and the Borrower.
	 
	7.  	Registration Rights Agreement, dated August 29, 1997, by and among the holders party
thereto and the Borrower.
	 
	8.  	Registration Rights Agreement, dated May 25, 1998, by and among the Borrower and each
of Emily Rauh Pulitzer, David E. Moore and Michael E. Pulitzer.
	 
	9.  	FCC Agreement, dated May 25, 1998, by and among Pulitzer Publishing Company, Pulitzer
Inc. and the Borrower.
	 
	10.  	Retransmission Rights Agency Agreement, dated March 8, 2000, by and between the
Borrower and Lifetime Entertainment Services.
	 
	11.  	Retransmission Rights Agency Agreement, dated June 30, 2004, by and between the
Borrower and Lifetime Entertainment Services.
	 
	12.  	License and Support Service Agreement, dated as of November 19, 2004, by and between
the Borrower and WideOrbit Inc.

 

 

Exhibit A

[FORM OF]

ASSIGNMENT AND ASSUMPTION

          Reference is made to the Credit Agreement dated as of April 15, 2005 (as amended, supplemented
or otherwise modified from time to time, the “Credit Agreement”), among Hearst-Argyle Television,
Inc., a Delaware corporation; the Lenders named therein; Bank of America, N.A., and Wachovia Bank,
National Association as Co-Syndication Agents; Harris Nesbitt and BNP Paribas as Co-Documentation
Agents; and JPMorgan Chase Bank, N.A., as Administrative Agent for the Lenders. Terms defined in
the Credit Agreement are used herein with the same meanings.

          The Assignor named below hereby sells and assigns, without recourse, to the Assignee named
below and the Assignee hereby purchases and assumes, without recourse, from the Assignor, effective
as of the Assignment Date set forth below, the interests set forth below (the “Assigned Interest”)
in the Assignor’s rights and obligations under the Credit Agreement and the other Loan Documents,
including, without limitation, the interests set forth below in the Commitment of the Assignor on
the Assignment Date and Loans owing to the Assignor which are outstanding on the Assignment Date,
together with the participations in Letters of Credit, LC Disbursements and Swingline Loans held by
the Assignor on the Assignment Date, but excluding accrued interest and fees to and excluding the
Assignment Date. The Assignee hereby acknowledges receipt of a copy of the Credit Agreement. From
and after the Assignment Date (i) the Assignee shall be a party to and be bound by the provisions
of the Credit Agreement and, to the extent of the Assigned Interest, have the rights and
obligations of a Lender thereunder and under the other Loan Documents and (ii) the Assignor shall,
to the extent of the Assigned Interest, relinquish its rights and be released from its obligations
under the Credit Agreement.

          This Assignment and Assumption is being delivered to the Administrative Agent together with
(i) if the Assignee is a Foreign Lender, any documentation required to be delivered by the Assignee
pursuant to Section 2.17(e) of the Credit Agreement, duly completed and executed by the Assignee,
and (ii) if the Assignee is not already a Lender under the Credit Agreement, an Administrative
Questionnaire in the form supplied by the Administrative Agent, duly completed by the Assignee.
The [Assignee/Assignor] shall pay the fee payable to the Administrative Agent pursuant to Section
9.04(b) of the Credit Agreement.

          This Assignment and Assumption shall be governed by and construed in accordance with the laws
of the State of New York.

Date of Assignment:

Legal Name of Assignor:

Legal Name of Assignee:

Assignee’s Address for Notices:

 

 

Effective Date of Assignment

(“Assignment Date”):

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Percentage Assigned of	 	 
	 	 	 	 	 	 	 	 	 	Facility/Commitment (set	 	 
	 	 	 	 	 	 	 	 	 	forth, to at least 8	 	 
	 	 	 	 	 	 	 	 	 	decimals, as a percentage	 	 
	 	 	 	 	 	 	 	 	 	of the Facility and the	 	 
	 	 	 	 	 	 	 	 	 	aggregate Commitments of	 	 
	 	Facility	 	 	Principal Amount Assigned	 	 	 	all Lenders thereunder)	 	 
	 	Commitment Assigned:
	 	 	$	 	 	 	 	 	 	%	 
	 	Revolving Loans:
	 	 	$	 	 	 	 	 	 	 	 
	 

The terms set forth above are hereby agreed to:

	 	 	 	 	 	 	 
	 	 	 	 	[Name of Assignor], as Assignor
	 
	 	 	 	 	 	 
	

	 	 	 	By:	 	 
	

	 	 	 	 	 	 
	

	 	 	 	 	 	Name:
	

	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 
	 	 	 	 	[Name of Assignee], as Assignee
	 
	 	 	 	 	 	 
	

	 	 	 	By:	 	 
	

	 	 	 	 	 	 
	

	 	 	 	 	 	Name:
	

	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 
	The undersigned hereby consent to the within assignment: 1
	 
	 	 	 	 	 	 
	HEARST-ARGYLE TELEVISION,
INC.,	 	JPMorgan Chase Bank, N.A., as
Administrative Agent,
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	

	 	 
	 	 	 	 
	

	 	Name:
	 	 	 	Name:
	

	 	Title:
	 	 	 	Title:

	1	 	Consents to be included to the extent
required by Section 9.04(b) of the Credit Agreement.

 

 

Exhibit B

To the financial institutions
  
set forth on Exhibit A hereto

April 15, 2005

April 15, 2005

To the financial institutions

set forth on Exhibit A hereto

		
	Re: 	Five-Year Credit Agreement dated as of April 15, 2005 among Hearst-Argyle Television, Inc. as
borrower, the lenders parties thereto, JPMorgan Chase Bank, N.A. as Administrative Agent, Bank
of America, N.A. and Wachovia Bank, National Association as co-syndication agents and Bank of
Montreal and BNP Paribas as co-documentation agents (the “Credit Agreement”)

Ladies and Gentlemen:

We have acted as counsel to Hearst-Argyle Television, Inc., a Delaware corporation (the
“Company”), in connection with its execution and delivery of the Credit Agreement. This
opinion is being rendered to you in compliance with Section 4.01(b) of the Credit Agreement.
Capitalized terms used but not defined herein have the respective meanings given to such terms in
the Credit Agreement.

In furnishing this opinion letter, we have examined an executed copy of the Credit Agreement. In
addition, we have examined originals or copies, certified or otherwise identified to our
satisfaction, of such other documents, corporate records and instruments as we have deemed
necessary or appropriate for the purpose of rendering the opinions set forth below.

In our examination, we have assumed (i) the due organization, valid existence and good standing of
each party to the Credit Agreement, (ii) the requisite power and authority of each party to the
Credit Agreement to execute, deliver and perform its obligations under the Credit Agreement, (iii)
the due authorization, execution and delivery of the Credit Agreement by each of the parties
thereto, (iv) the genuineness of all signatures, (v) the legal capacity of natural persons, (vi)
the authenticity of all documents submitted to us as originals and (vii) the conformity to original
documents of all documents submitted to us as certified or photostatic copies and the authenticity
of the originals of such copies.

As to any facts material to this opinion letter that we did not independently establish or verify,
we have, with your consent, relied upon statements and certificates of responsible officers of the
Company, certificates of public officials and the representations and warranties of the Company set
forth in the Credit Agreement. We have assumed, without independent investigation, that such
statements, certificates and representations are accurate.

 

 

Based upon the foregoing and upon such examination of law as we have deemed necessary, and subject
to the limitations, qualifications, exceptions and assumptions set forth herein, we are of the
opinion that:

     The Credit Agreement constitutes the legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, except as may be limited by
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or transfer or other
similar laws relating to or affecting the rights of creditors generally and except as the
enforceability of the Credit Agreement is subject to the application of general principles of
equity (regardless of whether considered in a proceeding in equity or at law), including, without
limitation, (a) the possible unavailability of specific performance, injunctive relief or any other
equitable remedy and (b) concepts of materiality, reasonableness, good faith and fair dealing.

     The Transactions (a) do not require any consent or approval of, registration or filing with,
or any other action by, any federal or New York State Governmental Authority, except such as have
been obtained or made and are in full force and effect, (b) will not violate any applicable federal
or New York State law or regulation or the charter, by-laws or other organizational documents of
the Company or any order of any federal or New York State Governmental Authority applicable to the
Company, (c) will not violate or result in a default under any indenture, note purchase agreement,
credit agreement or other material agreement known to us and binding upon the Borrower or its
assets, or give rise to a right thereunder to require any payment to be made by any such Person,
and (d) will not result in the creation or imposition of any Lien on any asset of the Borrower. We
express no opinion in this paragraph 2 with respect to any covenant, restriction or provision of
any agreement or instrument regarding financial covenants, ratios or tests or that is dependant
upon or derived from the financial condition or results of operations of the Company or its
Subsidiaries.

The opinions set forth in this letter are further subject to and qualified in all respects by the
following:

	(a)  	We are members of the Bar of the State of New York. We do not express any opinion as to the
laws of any jurisdiction other than the State of New York and the federal laws of the United
States of America.

	(b)  	This opinion letter is limited to the matters stated herein and no opinion may be inferred or
implied beyond the matters expressly stated.

	(c)  	We express no opinion regarding the applicability or effect of, or compliance with, federal
or state antitrust laws, environmental laws, ERISA, the Communications Act of 1934, as amended
or any order, rules or regulations issued thereunder or pertaining thereto.

	(d)  	We express no opinion with respect to any indemnification or reimbursement obligation or
limitation on liability contained in the Credit Agreement, insofar as such provision provides
exculpation or exemption from, or requires indemnification or reimbursement of a party for,
its own action or inaction, where such action or inaction involves such party’s gross
negligence, recklessness or wilful or unlawful misconduct or to the extent any such provision
is contrary to public policy.

 

 

	(e)  	We express no opinion with respect to the enforceability of provisions in the Credit
Agreement to the effect that terms may not be waived or modified except in writing.

	(f)  	We express no opinion as to (i) the applicability of, or compliance by any Lender or the
Administrative Agent with, any federal, state or local law or regulation and would affect such
Lender’s or the Administrative Agent’s right and power to take any actions or exercise any
rights or remedies under the Credit Agreement (including, without limitation, provisions
regarding the giving of notice, service of process, deficiency proceedings and the order in
which actions will be taken) and (ii) any provision that purports to waive rights to object to
jurisdiction or venue.

	(g)  	We express no opinion as to the last sentence of Section 2.18(d) of the Credit Agreement to
the extent that such section purports to grant rights of set-off to any purchaser of a
participating interest in a Loan.

	(h)  	With respect to the submission to the jurisdiction of the United States District Court for
the Southern District of New York in Section 9.09 of the Credit Agreement, we note the
limitation of 28 U.S.C. § 1332 on federal court jurisdiction in cases where diversity of
citizenship is lacking, and we also note that such submission and the waivers contained in
such section cannot supersede that court’s discretion in determining whether to transfer any
action from one federal court to another under 28 U.S.C. § 1404(a).

This opinion letter is being furnished only to you and is solely for your benefit and your
permitted assignees under the Credit Agreement, and is not to be quoted, relied upon or otherwise
referred to, in whole or in part, for any other purpose without, in each instance, our express
prior written consent. We hereby disclaim any duty or obligation to advise you of any change in
facts, laws, statutes, ordinances, rules or regulations occurring after the date hereof even though
such change may affect the opinions expressed herein.

Very truly yours,

 

 

Exhibit A

Financial Institutions

JPMorgan Chase Bank, N.A.

Bank of America, N.A.

Wachovia Bank, N.A.

Harris Nesbitt Financing, Inc.

BNP Paribas

The Royal Bank of Scotland plc

The Bank of New York

Wells Fargo Bank, National Association

Mizuho Corporate Bank Ltd.

UFJ Bank Limited<PAGE>

                                                              Exhibit 10.1

                              ALLEGHANY CORPORATION

                        Restricted Stock Award Agreement

     Restricted Stock Award Agreement (this "Agreement"), dated as of December
21, 2004, between Alleghany Corporation, a Delaware corporation ("Alleghany"),
and Roger B. Gorham (the "Participant").

     Section 1. Restricted Stock Award. Alleghany hereby grants to the
Participant, on the terms and conditions hereinafter set forth, a restricted
stock award of 3,565 shares of the common stock, par value $1.00 per share (the
"Common Stock") of Alleghany (the "Restricted Shares"). This grant has been made
by the Compensation Committee of the Board of Directors of Alleghany (the
"Committee") pursuant to the terms of the Alleghany Corporation 2002 Long-Term
Incentive Plan (the "Plan") and is intended to qualify as "performance-based
compensation" for purposes of Section 162(m) of the Internal Revenue Code of
1986, as amended. The applicable terms of the Plan are incorporated herein by
reference. Any terms used but not defined herein shall have the meanings
ascribed thereto in the Plan. Any ambiguity between any term used in this
Agreement and a term used in the Plan shall be resolved in favor of and in
accordance with the term used in the Plan. Any interpretation, determination or
decision made or taken by the Committee regarding the Plan or this Agreement
shall be final and binding upon Alleghany and the Participant.

     Section 2. Vesting of Restricted Shares. Subject to Section 3 hereof, the
Restricted Shares shall vest and become nonforfeitable as follows:

     (a)  If Alleghany achieves average annual compound growth in Stockholders'
          Equity Per Share equal to 10% or more as measured over a calendar year
          period commencing January 1, 2005 and ending on December 31, 2008,
          2009, 2010 or 2011, the Restricted Shares will vest and become
          nonforfeitable upon the certification by the Committee that such
          performance goal has been met.

     (b)  If the performance goal set forth in (a) above has not been achieved
          as of December 31, 2011, the Restricted Shares will vest and become
          nonforfeitable when Alleghany achieves average annual compound growth
          in Stockholders' Equity Per Share equal to 7% or more as measured over
          a calendar year period commencing January 1, 2005 and ending on
          December 31, 2012, 2013 or 2014 and upon the certification by the
          Committee that such performance goal has been met.

     (c)  If the performance goals provided above are not achieved as of
          December 31, 2014, the Participant will forfeit all of the Restricted
          Shares.

     (d)  "Stockholders' Equity Per Share" shall mean the stockholders' equity
          per share of Common Stock of Alleghany, determined, except
<PAGE>

          as otherwise herein provided, on the basis of the same accounting
          principles used in the preparation of Alleghany's consolidated balance
          sheet for the calendar year in question which is included in
          Alleghany's Annual Report to Stockholders for such calendar year.
          Stockholders' Equity Per Share shall be determined and certified in
          writing by the Committee, with such adjustments as the Committee shall
          deem to be required to take account of the effects on Stockholders'
          Equity Per Share of any stock dividend, unusual cash distributions,
          spin-off, stock split, recapitalization, merger, consolidation or
          other similar event and will also be automatically adjusted to reflect
          reinvestment of the value of dividends and distributions other than
          stock dividends. The Committee's determination with respect to any
          such adjustments shall be final and binding.

     Section 3. Custody and Delivery of Shares. Alleghany shall hold the
certificate or certificates representing the Restricted Shares subject to this
Award until such Restricted Shares have vested pursuant to Section 2 hereof.
Contemporaneous with the execution of this Agreement, the Participant shall
execute and deliver to Alleghany one or more irrevocable stock powers related
thereto to facilitate the transfer of the Restricted Shares subject to this
Award to Alleghany (or its assignee or nominee) if such Restricted Shares are
forfeited pursuant hereto. Upon the vesting of the Restricted Shares subject to
this Award pursuant to Section 2 hereof, Alleghany shall deliver or cause to be
delivered the certificate or certificates representing such Restricted Shares to
the Participant, shall destroy the related stock power or powers, and shall pay
all original issue or transfer taxes and all fees and expenses incident to such
delivery.

     Section 4. Termination of Employment. If the Participant's employment with
Alleghany is terminated for any reason prior to the occurrence of any otherwise
applicable vesting date provided in Section 2 hereof, the Participant shall (i)
forfeit his interest in any Restricted Shares that have not yet become vested,
(ii) assign, transfer, and deliver any certificates evidencing ownership of such
Restricted Shares to Alleghany, and (iii) cease for all purposes to be a
stockholder with respect to such Restricted Shares; provided, however, that if,
subsequent to December 31, 2006, Alleghany terminates the Participant's
employment other than for Cause or other than in the case of Total Disability,
and, as of the calendar year end immediately preceding such termination, the
performance goal set forth in Section 2(b) has been satisfied in all respects
except for the passage of the required period of time, the following number of
Restricted Shares shall vest and become nonforfeitable upon written
certification by the Committee that such pro rated performance goal has been
achieved: 3,565 multiplied by a fraction the numerator of which is the number of
full calendar years beginning January 1, 2005 and ending on or before the date
of such termination, and the denominator of which is ten. For purposes hereof,
"Cause" shall mean conviction of a felony; willful failure to implement
reasonable directives of the President, Chairman or the Board of Directors of
Alleghany after written notice, which failure is not corrected within ten days
following notice thereof; or gross misconduct in connection with the performance
of any of Participant's duties; and "Total Disability" shall mean Participant's
inability to discharge his duties due to physical or

                                      -2-

<PAGE>

mental illness or accident for one or more periods totaling six months during
any consecutive twelve-month period.

     Section 5. Rights as a Stockholder. Subject to the otherwise applicable
provisions of the Plan and this Agreement, the Participant will have all rights
of a stockholder of the shares of Common Stock in respect of which the
Restricted Shares are granted to the Participant hereunder, including the right
to vote the shares and receive all dividends and other distributions paid in
respect thereof; provided, however, that Alleghany shall retain all cash
dividends or other cash distributions on the Restricted Shares until they vest,
using such cash to purchase shares of Common Stock at the Fair Market Value
thereof on the date paid, and the Participant shall deliver any stock dividends
or other non-cash distributions on the Restricted Shares until they vest
(including, without limitation, shares of any corporation distributed in a
spin-off), together with appropriate stock transfer or other assignment
documents, to Alleghany. The Common Stock acquired with the cash dividends or
other cash distributions on the Restricted Shares or distributed as a stock
dividend and any other non-cash distributions on the Restricted Shares (the
"Distribution Amounts") shall be held by Alleghany until the Restricted Shares
in respect of which such Distribution Amounts were paid vest and become
nonforfeitable, at which time such Distribution Amounts shall also vest and
become nonforfeitable, and the certificates or other evidence of the
Distribution Amounts shall be delivered, or caused to be delivered, by
Alleghany. Alleghany shall also destroy the related stock power or powers, and
shall pay all original issue or transfer taxes and all fees and expenses
incident to such delivery. To the extent that any Restricted Shares are
forfeited pursuant to the terms of this Agreement, the Distribution Amounts paid
in respect thereof shall also be forfeited.

     Section 6. Restrictions on Transfer. Neither this Agreement nor any
Restricted Shares covered hereby or dividends or other distributions paid in
respect thereof may be sold, assigned, transferred, encumbered, hypothecated or
pledged by the Participant, other than to Alleghany as a result of forfeiture of
the Restricted Shares and dividends or other distributions as provided herein,
or unless such Restricted Shares and dividends or other distributions have
vested and become nonforfeitable in accordance herewith. Any such disposition by
the Participant shall be made in compliance with all applicable securities laws.
The Participant hereby represents and warrants to Alleghany that the Restricted
Shares are being acquired for investment and not with a view to the distribution
thereof, and not with any present intention of distributing the same.

     Section 7. Tax Withholding. Alleghany's obligation to deliver the
Restricted Shares to the Participant pursuant to Section 3 hereof and any
Distribution Amount is subject to the Participant's making provision for the
payment or withholding of any taxes required to be paid or withheld pursuant to
any applicable law in respect of the receipt of, or lapse of forfeiture
restrictions with respect to, such Restricted Shares and the payment or delivery
of any Distribution Amounts. At the written election of Participant, and upon
the approval of the Committee, any such required withholding payments may be
made in Restricted Shares or Distribution Amounts, in each case valued at Fair
Market Value on the date of payment.

                                      -3-
<PAGE>

     Section 8. No Right of Employment. Nothing in this Agreement shall confer
upon the Participant any right to continue as an employee of Alleghany or to
interfere in any way with the right of Alleghany to terminate the Participant's
employment at any time.

     Section 9. Entire Agreement. This Agreement contains the entire
understanding of Alleghany and the Participant with respect to the subject
matter hereof. Any amendment or modification of this Agreement shall not be
binding unless in writing and signed by Alleghany and the Participant.

     Section 10. Governing Law. This Agreement shall be governed by and
enforceable in accordance with the laws of the State of New York, without giving
effect to the principles of conflict of laws thereof.

     IN WITNESS WHEREOF, the Participant has duly executed this Agreement and
Alleghany has duly caused this Agreement to be executed in its name and on its
behalf, all as of December 21, 2004.

                                            ALLEGHANY CORPORATION

                                            By: Weston M. Hicks
                                            -------------------------
                                            Weston M. Hicks
                                            President

                                            PARTICIPANT

                                            /s/ Roger B. Gorham
                                            -------------------------
                                            Roger B. Gorham

                                      -4-

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