Document:

Exhibit
10.20

	
  DATE:

  	
  MAY 6, 2005

  
	
  TO:

  	
  YOUNG BROADCASTING INC
  (“Counterparty”)

  
	
  ATTENTION:

  	
  BAKER, STEVEN

  
	
  TEL:

  	
  212-754-7070

  
	
  FAX:

  	
  212-758-1229

  
	
  FROM:

  	
  MERRILL LYNCH CAPITAL
  SERVICES, INC. (“MLCS”)

  
	
  CONTACT:

  	
  CRUZ LIMA, OCTAVIO

  
	
  EMAIL:

  	
  Olima@exchange.ml.com

  
	
  TEL:

  	
  212-449-6634

  
	
  FAX:

  	
  917-778-0836

  
	
  RE:

  	
  SWAP TRANSACTION

  
	
  ML REF:

  	
  05DL06604, 2110353

  

 

Dear Sir or Madam:

The purpose of this communication is to confirm the
terms and conditions of the transaction entered into between us on the Trade
Date specified below (the “Transaction”). This communication constitutes a “Confirmation”
as referred to in the Agreement specified below.

The definitions and provisions contained in the 2000
ISDA Definitions as published by the International Swaps and Derivatives
Association, Inc. (the “Definitions”) are incorporated into this
Confirmation. For these purposes, all references in those Definitions to a “Swap
Transaction” shall be deemed to apply to the Transaction referred to herein. In
the event of any inconsistency between the Definitions and this Confirmation,
the terms of this Confirmation shall govern.

This Confirmation evidences a complete and binding agreement
between you and us as to the terms of the Transaction to which this
Confirmation relates. In addition, you and we agree to use all reasonable
efforts promptly to negotiate, execute and deliver an agreement in the form of
the ISDA Master Agreement (Multicurrency-Cross Border) (the “Master Form”),
with such modifications as you and we will in good faith agree (the “Agreement”).
Upon the execution by you and us of the Agreement, this Confirmation will
supplement, form a part of, and be subject to the Agreement. All provisions
contained in or incorporated by reference in the Agreement upon its execution
will govern this Confirmation except as expressly modified below. Until we
execute and deliver the Agreement, this Confirmation, together with all other documents
referring to the Mater Form (each a “Confirmation”) confirming
transactions (each a “Transaction”) entered into between us (notwithstanding
anything to the contrary in a Confirmation), shall supplement, form a part of,
and be subject to, an agreement in the form of the Master Form as if we
had executed an agreement in such form (but without any Schedule except for the
election of the laws of the State of New York as the governing law and US
Dollars as the Termination Currency) on the Trade date of the first such
Transaction between us. In the event of any inconsistency between the
provisions of that agreement and this Confirmation, this Confirmation will
prevail for the purpose of this Transaction.

 1
 

The
terms of the particular Transaction to which the Confirmation relates are as
follows:

	
  Notional Amount:

  	
  USD 71,000,000.00

  
	
  Trade Date: 

  	
  May 2, 2005

  
	
  Effective Date: 

  	
  May 8, 2006

  
	
  Termination Date:
  

  	
  The earlier of
  (i) May 8, 2008, or (ii) the Early Termination Event as
  defined below under Other Early Termination Event.

  
	
  Fixed Amounts:

  	
   

  
	
  Fixed Rate Payer:
  

  	
  Counterparty

  
	
  Fixed Rate Payer

  	
   

  
	
  Payment Date(s): 

  	
  August 8,
  November 8, February 8 and May 8 in each year, commencing on
  August 8, 2006 and ending on the Termination Date, inclusive, subject to
  adjustment in accordance with the Modified Following Business Day  Convention

  
	
  Fixed Rate: 

  	
  4.342500% per annum

  
	
  Fixed Rate Payer

  Day Count Fraction: 

  	
  Actual/360

  
	
  No Adjustment of

  Period End Dates: 

  	
  Inapplicable

  
	
  Floating Amounts:

  	
   

  
	
  Floating Rate
  Payer: 

  	
  MLCS

  
	
  Floating Rate
  Payer

  Payment Date(s):

  	
  August 8,
  November 8, February 8, and May 8 in each year, commencing on
  August 8, 2006 and ending on the Termination Date, inclusive, subject to
  adjustment in accordance with the Modified Following Business Day Convention

  
	
  Floating Rate
  Option: 

  	
  USD-LIBOR-BBA

  
	
  Designated
  Maturity: 

  	
  Three Month

  
	
  Spread: 

  	
  Inapplicable

  
	
  Floating Rate
  Payer

  Day Count Fraction: 

  	
  Actual/360

  
	
  No Adjustment of

  Period End Dates: 

  	
  Inapplicable

  
	
  Reset Dates: 

  	
  The first day of each
  Floating Rate Payer Calculation Period

  
	
  Rate Cut-Off
  Dates: 

  	
  Inapplicable

  
	
  Averaging: 

  	
  Inapplicable

  
	
  Compounding: 

  	
  Inapplicable

  
	
  Business Days: 

  	
  New York and London

  

 2
 

 

	
  Calculation
  Agent: 

  	
  MLCS, unless otherwise
  specified in the Agreement

  
	
  Early Termination
  Event:

  	
  MLCS and Couterparty
  agree that MLCS shall have the right to elect that in the event that the
  Agreement is not executed by May 16, 2005, this Transaction shall be
  terminated effective as of May 16, 2005 (or if such a day is not a
  Business Day, on the next succeeding Business Day)(the “Early Termination
  Date”). Such right may be exercised by notice to the other party not less
  than five Business Days preceding the Early Termination Date. In the event
  that MLCS exercises its right to terminate this Transaction, MLCS and Counterparty
  shall attempt to agree on an amount payable by one party to the other on the
  Early Termination Date in respect of such termination. If the parties fail to
  agree on such an amount prior to the second Local Business Day preceding such
  Early Termination Date, MLCS shall determine the “Market Quotation” for this
  Transaction (as defined in Section 14 of the Agreement, but based on Reference
  Marketmakers’ mid-market quotations) for value on the Early Termination Date.
  The Market Quotation shall be paid by the relevant party on the Early
  Termination Date, and this Transaction shall terminate on the Early Termination
  Date with no further rights and obligations of either party, except for the
  obligation to make payment of the Market Quotation, provided, however, that if
  the Agreement and the Credit Support Annex are executed prior to the Early Termination
  Date, then, unless the parties otherwise agree, notwithstanding that notice
  of termination has been given, this Transaction shall not be terminated and the
  Market Quotation shall not be payable hereunder.

  
	
  Additional
  Provisions: 

  	
  It shall be an
  Additional Termination Event if any obligation due and owing by Counterparty
  to MLCS under this Transaction fails to rank at least pari passu with any
  obligation due and owing by Counterparty to any of its senior secured
  creditors.

  
	
  Non-Reliance:

  	
  Each party represents to
  the other party that it is acting for its own account, and has made its own
  independent decisions to enter into this Transaction and as to whether this
  Transaction is appropriate or proper for it based on its own judgement and
  upon advice from such advisors as it has deemed necessary. It is not relying
  on any communication (written or oral) of the other party as investment
  advice or as a recommendation to enter into this Transaction, it being
  understood that information and explanations related to the terms and conditions
  of this Transaction shall not be considered investment advice or a recommendation
  to enter into this Transaction. No communication (written or oral) received
  from the other party shall be deemed to be an assurance or guarantee as to
  the expected results of this Transaction.

  

 3
 

 

	
  Account Details:

  	
   

  
	
  USD payments to MLCS:

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST
  COMPANY AMERICAS, NEW YORK, NY: 021001033)

  
	
   

  	
  FAO: MERRILL LYNCH
  CAPITAL SERVICES, INC., NEW YORK, NY

  
	
   

  	
  Acct: 00-811-874

  
	
  USD payments to
  Counterparty: 

  	
  Please Advise

  

 

Please
confirm that the foregoing correctly sets the terms of our agreement by
executing this Confirmation and returning it to us by facsimile transmission.

	
  Yours sincerely,

  	
   

  
	
  MERRILL LYNCH CAPITAL
  SERVICES, INC.

  	
   

  
	
  By:

  	
  

  	
   

  
	
  Authorized Signatory

  	
   

  
	
  Accepted and confirmed as
  of the

  	
   

  
	
  Trade Date written above:

  	
   

  
	
  YOUNG BROADCASTING INC

  	
   

  
	
  By:

  	
  

  	
   

  
	
  Authorized Signatory

  	
   

  
	
  Name: James A. Morgan

  	
   

  
	
  Title: CFO

  	
   

  

 

 4Exhibit 10.17

 

Summary of
Compensation Arrangements for Executive Officers

 

The following table discloses compensation
received during the three fiscal years ended December 31, 2003-2005 by Mr. McKinnish,
the Company’s Chief Executive Officer, and by each of the four remaining most
highly paid executive officers who served as executive officers during 2005:

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Long-Term Compensation

  Awards

  	
   

  	
   

  	
   

  
	
  Name and

  	
   

  	
   

  	
   

  	
  Annual compensation (1)

  	
   

  	
  Restricted

  Stock

  	
   

  	
  Securities

  Underlying

  	
   

  	
  All Other

  	
   

  
	
  Principal
  Position

  	
   

  	
  Year

  	
   

  	
  Salary($)

  	
   

  	
  Bonus($)

  	
   

  	
  Award(s) ($) (4)

  	
   

  	
  Options (#)

  	
   

  	
  Compensation($) (2)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stephen P. Munn 

  	
   

  	
  2005

  	
   

  	
  $

  	
  525,000

  	
   

  	
  $

  	
  225,000

  	
   

  	
  —

  	
   

  	
  10,000

  	
   

  	
  $

  	
  9,333

  	
   

  
	
  Chairman

  	
   

  	
  2004

  	
   

  	
  480,000

  	
   

  	
  100,000

  	
   

  	
  —

  	
   

  	
  5,000

  	
   

  	
  8,667

  	
   

  
	
   

  	
   

  	
  2003

  	
   

  	
  480,000

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  9,333

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Richmond D. McKinnish 

  	
   

  	
  2005

  	
   

  	
  $

  	
  850,000

  	
   

  	
  $

  	
  1,100,000

  	
   

  	
  $

  	
  641,800

  	
   

  	
  70,000

  	
   

  	
  $

  	
  9,333

  	
   

  
	
  President and Chief 

  	
   

  	
  2004

  	
   

  	
  800,000

  	
   

  	
  850,000

  	
   

  	
  —

  	
   

  	
  100,000

  	
   

  	
  10,667

  	
   

  
	
  Executive Officer

  	
   

  	
  2003

  	
   

  	
  725,000

  	
   

  	
  800,000

  	
   

  	
  —

  	
   

  	
  100,000

  	
   

  	
  9,333

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  John W. Altmeyer (3) 

  	
   

  	
  2005

  	
   

  	
  $

  	
  402,300

  	
   

  	
  $

  	
  600,000

  	
   

  	
  $

  	
  64,180

  	
   

  	
  15,000

  	
   

  	
  $

  	
  8,400

  	
   

  
	
  Group President, 

  	
   

  	
  2004

  	
   

  	
  330,000

  	
   

  	
  360,000

  	
   

  	
  99,872

  	
   

  	
  10,000

  	
   

  	
  8,200

  	
   

  
	
  Construction Materials

  	
   

  	
  2003

  	
   

  	
  300,000

  	
   

  	
  275,000

  	
   

  	
  244,280

  	
   

  	
  12,000

  	
   

  	
  8,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Barry Littrell (3) 

  	
   

  	
  2005

  	
   

  	
  $

  	
  343,125

  	
   

  	
  $

  	
  170,000

  	
   

  	
  $

  	
  64,180

  	
   

  	
  10,000

  	
   

  	
  $

  	
  9,333

  	
   

  
	
  Group President,
  Industrial

  	
   

  	
  2004

  	
   

  	
  330,000

  	
   

  	
  170,000

  	
   

  	
  99,872

  	
   

  	
  10,000

  	
   

  	
  8,667

  	
   

  
	
  Components

  	
   

  	
  2003

  	
   

  	
  295,000

  	
   

  	
  210,000

  	
   

  	
  274,815

  	
   

  	
  8,000

  	
   

  	
  8,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Carol P. Lowe (5) 

  	
   

  	
  2005

  	
   

  	
  $

  	
  250,000

  	
   

  	
  $

  	
  250,000

  	
   

  	
  $

  	
  64,180

  	
   

  	
  8,000

  	
   

  	
  $

  	
  9,333

  	
   

  
	
  Vice President and

  	
   

  	
  2004

  	
   

  	
  188,333

  	
   

  	
  200,000

  	
   

  	
  91,665

  	
   

  	
  12,000

  	
   

  	
  8,667

  	
   

  
	
  Chief Financial Officer

  	
   

  	
  2003

  	
   

  	
  137,800

  	
   

  	
  75,000

  	
   

  	
  —

  	
   

  	
  2,000

  	
   

  	
  7,512

  	
   

  

 

(1)          Includes amounts earned
in fiscal year.

(2)          Includes only
contributions by the Company to the Company 401(k) plan.

(3)          Messrs. Altmeyer
and Littrell were appointed Group President, Construction Materials and Group
President, Industrial Components, respectively, on November 2, 2005.

(4)          Mr. McKinnish holds
10,000 restricted Shares which are valued at $691,500 on December 31,
2005. Mr. Altmeyer holds 6,750 restricted Shares which are valued at
$466,763 on December 31, 2005. Mr. Littrell holds 7,250 restricted
Shares which are valued at $501,338 on December 31, 2005. Mrs. Lowe holds
2,500  restricted Shares which are valued
at $172,875 on December 31, 2005. During the period these Shares remain
restricted, Messrs. McKinnish, Altmeyer, Littrell and Mrs. Lowe will
receive any dividends declared on such Shares.

(5)          Mrs. Lowe was appointed
Vice President and Chief Financial Officer effective May 6, 2004.

 

1

 

In addition, at its February 8, 2006 meeting, the
Compensation Committee approved the following annual salaries for 2006 for the
named executive officers:  (i) Stephen
P. Munn - $525,000, (ii) Richmond D. McKinnish - $900,000, (iii) John
W. Altmeyer - $475,000, (iv) Barry Littrell - $425,000, and (v) Carol
P. Lowe - $300,000. The Compensation Committee also awarded the named executive
officers options to acquire shares of the Company’s common stock (the “Shares”)
and restricted Shares as follows: (i) Stephen P. Munn – 10,000 options, (ii) Richmond
D. McKinnish – 70,000 options and 10,000 restricted Shares, (iii) John W.
Altmeyer – 20,000 options and 1,000 restricted Shares, (iv) Barry Littrell
– 12,000 options and 1,000 restricted Shares, and (v) Carol P. Lowe –
10,000 options and 1,000 restricted Shares. The options were awarded at an
option price of $68.86, which was equal to the closing market price of the
Shares on the date of grant. All options expire ten (10) years following
the date of grant. Each restricted Share was valued at $68.86, which was equal
to the closing market price of the Share on the date of grant. The restricted
Shares vest on December 31, 2008. During the period the Shares remain
restricted, and Mrs. Lowe and Messrs. McKinnish, Altmeyer and
Littrell will receive any dividend declared on such Shares.

 

The pension plans of the Company and its subsidiaries
provide defined benefits including a cash balance formula whereby participants
accumulate a cash balance benefit based upon a percentage of compensation
allocation made annually to the participants’ cash balance accounts. The
allocation percentage ranges from 2% to 7% and is determined on the basis of
each participant’s years of service. The cash balance account is further
credited with interest annually. The interest credit is based on the One Year
Treasury Constant Maturities as published in the Federal Reserve Statistical
Release over the one year period ending on the December 31st immediately
preceding the applicable plan year (with a minimum of 4.00%). The interest rate
for the plan year ending December 31, 2005 was 4.00%. Compensation covered
by the pension plan of the Company and its subsidiaries includes total cash
remuneration in the form of salaries and bonuses, including amounts
deferred under Sections 401(k) and 125 of the Internal Revenue Code of 1986, as
amended (the “Code”).

 

The annual annuity benefit payable starting
at normal retirement age (age 65 with five years of service) as accrued through
December 31, 2005 under the pension plans of the Company and its
subsidiaries for the executives named in the Summary Compensation table were as
follows:  Mr. Munn, $400,000; Mr. McKinnish,
$542,011; Mr. Altmeyer, $53,573; Mr. Littrell, $21,902, and Mrs. Lowe,
$7,150;

 

Section 401(a)(17) of the Code currently
places a limit of $210,000 on the amount of annual compensation covered under a
qualified pension plan such as the one maintained by the Company (the “Retirement
Plan”). Under an unfunded supplemental pension plan maintained by the Company,
the Company will make payments as permitted by the Code to plan participants in
an amount equal to the difference, if any, between the benefits that would have
been payable under the Retirement Plan without regard to the limitations
imposed by the Code and the actual benefits payable under the Retirement Plan
as so limited.

 

Each named executive officer participates in
the Company’s executive severance program providing for benefits in the event
of a “change of control” (defined generally as an acquisition of twenty percent
(20%) or more of the outstanding voting shares of the Company or a change in
the majority of the Company’s Board of Directors). In the event of a
termination of the named executive officer’s employment within three (3) years
of a “change in control,” the officer is entitled to three (3) years’
compensation, including bonus, retirement benefits equal to the benefits the
officer would have received had the officer completed three additional years of
employment, continuation of all life, accident, health, savings and other
fringe benefits for three years, and relocation assistance. A copy of the
Company’s form Executive Severance Agreement is on file as an Exhibit to
the Company’s Annual Report on Form 10-K for the year-ended December 31,
1990 and is incorporated herein by reference.

 

2

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