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EXHIBIT 10.5

NEITHER THIS WARRANT NOR THE  SECURITIES  INTO WHICH THIS WARRANT IS EXERCISABLE
HAVE  BEEN  REGISTERED  WITH  THE  SECURITIES  AND  EXCHANGE  COMMISSION  OR THE
SECURITIES   COMMISSION  OF  ANY  STATE  IN  RELIANCE  UPON  AN  EXEMPTION  FROM
REGISTRATION  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED  (THE  "SECURITIES
ACT"),  AND,  ACCORDINGLY,  MAY NOT BE OFFERED  OR SOLD  EXCEPT  PURSUANT  TO AN
EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT OR PURSUANT TO AN
AVAILABLE  EXEMPTION  FROM  THE  REGISTRATION  REQUIREMENTS  THEREUNDER  AND  IN
COMPLIANCE WITH APPLICABLE STATE SECURITIES OR BLUE SKY LAWS.

                               CIRTRAN CORPORATION

                                     WARRANT
                                     -------

Warrant No. ____                                            Dated: June 30, 2006

       CirTran  Corporation,  a  Nevada  corporation  (the  "Company"),   hereby
certifies  that, for value  received,  Albert Hagar,  or his registered  assigns
("Holder"), is entitled,  subject to the terms set forth below, to purchase from
the Company up to a total of Twenty-three  Million (23,000,000) shares of Common
Stock,  $0.001 par value per share (the "Common  Stock"),  of the Company  (each
such share, a "Warrant Share" and all such shares,  the "Warrant  Shares") at an
exercise  price  equal to $0.50  per  share  (as  adjusted  from time to time as
provided in Section 8, the "Exercise Price"),  at any time and from time to time
from and after the date hereof and through  and  including  the later of (1) the
fifth  anniversary  of the date of this Warrant or (2) the fifth  anniversary of
the date on which the  Company's  Common  Stock is first  listed for  trading on
either the Nasdaq  Small Cap Market,  the Nasdaq  Capital  Market,  the American
Stock  Exchange,  or the New York Stock Exchange (the  "Expiration  Date"),  and
subject to the following terms and conditions:

              1.     Registration  of Warrant.  The Company shall  register this
Warrant,  upon  records to be  maintained  by the Company for that  purpose (the
"Warrant Register"),  in the name of the record Holder hereof from time to time.
The  Company  may deem and treat the  registered  Holder of this  Warrant as the
absolute owner hereof for the purpose of any exercise hereof or any distribution
to the Holder, and for all other purposes, and the Company shall not be affected
by notice to the contrary.

              2.     Registration of Transfers and Exchanges.

                     (a)    The  Company  shall  register  the  transfer  of any
portion of this Warrant in the Warrant Register, upon surrender of this Warrant,
with the Form of Assignment  attached  hereto duly completed and signed,  to the
Company at the office  specified in or pursuant to Section  3(b).  Upon any such

<PAGE>

registration   or  transfer,   a  new  warrant  to  purchase  Common  Stock,  in
substantially the form of this Warrant (any such new warrant,  a "New Warrant"),
evidencing  the portion of this  Warrant so  transferred  shall be issued to the
transferee and a New Warrant  evidencing  the remaining  portion of this Warrant
not so  transferred,  if any, shall be issued to the  transferring  Holder.  The
acceptance  of the New  Warrant by the  transferee  thereof  shall be deemed the
acceptance of such  transferee of all of the rights and  obligations of a holder
of a Warrant.

                     (b)    This  Warrant is  exchangeable,  upon the  surrender
hereof by the Holder to the office of the  Company  specified  in or pursuant to
Section 3(b) for one or more New Warrants, evidencing in the aggregate the right
to purchase the number of Warrant Shares which may then be purchased  hereunder.
Any such New Warrant will be dated the date of such exchange.

              3.     Duration and Exercise of Warrants.

                     (a)    This Warrant shall be  exercisable by the registered
Holder on any business day before 5:30 P.M.,  Salt Lake City,  Utah time, at any
time and from time to time on or after  the date  hereof  to and  including  the
Expiration  Date. At 5:30 P.M.,  Salt Lake City,  Utah,  time on the  Expiration
Date,  the portion of this  Warrant not  exercised  prior  thereto  shall be and
become void and of no value. This Warrant may not be redeemed by the Company.

                     (b)    Subject to Sections  2(b), 6 and 11, upon  surrender
of this  Warrant,  with the Form of Election to  Purchase  attached  hereto duly
completed  and  signed,  to the  Company at its  address for notice set forth in
Section 11 and upon payment of the Exercise  Price  multiplied  by the number of
Warrant Shares that the Holder intends to purchase hereunder, in lawful money of
the United States of America,  in cash or by certified or official bank check or
checks, all as specified by the Holder in the Form of Election to Purchase,  the
Company  shall  promptly  (but in no event later than 3 business  days after the
Date of Exercise (as defined  herein))  issue or cause to be issued and cause to
be  delivered  to or upon the  written  order of the  Holder and in such name or
names as the Holder may designate, a certificate for the Warrant Shares issuable
upon such exercise, bearing such restrictive legends as required by the Purchase
Agreement  of even date  herewith  between  the Holder and the  Company,  and by
applicable  state and federal  securities  laws. Any person so designated by the
Holder to receive Warrant Shares shall be deemed to have become holder of record
of such Warrant Shares as of the Date of Exercise of this Warrant.

                     A "Date of  Exercise"  means the date on which the  Company
shall have received (i) this Warrant (or any New Warrant,  as applicable),  with
the Form of  Election  to  Purchase  attached  hereto (or  attached  to such New
Warrant)  appropriately  completed  and duly  signed,  and (ii)  payment  of the
Exercise  Price for the  number of  Warrant  Shares so  indicated  by the holder
hereof to be purchased.

                     (c)    This  Warrant  shall be  exercisable,  either in its
entirety or, from time to time,  for a portion of the number of Warrant  Shares.
If less than all of the Warrant Shares which may be purchased under this Warrant
are exercised at any time, the Company shall issue or cause to be issued, at its

                                      -2-
<PAGE>

expense,  a New Warrant evidencing the right to purchase the remaining number of
Warrant Shares for which no exercise has been evidenced by this Warrant.

              4.     [Reserved.]

              5.     Payment  of Taxes.  The  Company  will pay all  documentary
stamp taxes  attributable to the issuance of Warrant Shares upon the exercise of
this Warrant;  provided,  however, that the Company shall not be required to pay
any tax  which  may be  payable  in  respect  of any  transfer  involved  in the
registration of any  certificates for Warrant Shares or Warrants in a name other
than that of the Holder, and the Company shall not be required to issue or cause
to be issued or deliver or cause to be delivered  the  certificates  for Warrant
Shares  unless or until the person or persons  requesting  the issuance  thereof
shall have paid to the Company the amount of such tax or shall have  established
to the satisfaction of the Company that such tax has been paid. The Holder shall
be responsible for all other tax liability that may arise as a result of holding
or transferring this Warrant or receiving Warrant Shares upon exercise hereof.

              6.     Replacement of Warrant. If this Warrant is mutilated, lost,
stolen or  destroyed,  the Company shall issue or cause to be issued in exchange
and  substitution  for  and  upon  cancellation   hereof,  or  in  lieu  of  and
substitution for this Warrant, a New Warrant,  but only upon receipt of evidence
reasonably  satisfactory  to the Company of such loss,  theft or destruction and
indemnity,  if reasonably satisfactory to it. Applicants for a New Warrant under
such circumstances shall also comply with such other reasonable  regulations and
procedures as the Company may prescribe.

              7.     Reservation of Warrant Shares.  The Company  covenants that
it will at all times  reserve and keep  available  out of the  aggregate  of its
authorized but unissued  Common Stock,  solely for the purpose of enabling it to
issue  Warrant  Shares upon  exercise of this  Warrant as herein  provided,  the
number of  Warrant  Shares  which are then  issuable  and  deliverable  upon the
exercise of this entire Warrant, free from preemptive rights or any other actual
contingent  purchase  rights of persons  other  than the  Holders  (taking  into
account the  adjustments and  restrictions of Section 8). The Company  covenants
that all Warrant Shares that shall be so issuable and  deliverable  shall,  upon
issuance and the payment of the applicable Exercise Price in accordance with the
terms  hereof,  be duly  and  validly  authorized,  issued  and  fully  paid and
nonassessable.

              8.     Certain  Adjustments.  The  Exercise  Price  and  number of
Warrant Shares  issuable upon exercise of this Warrant are subject to adjustment
from time to time as set forth in this Section 8. Upon each such  adjustment  of
the Exercise Price pursuant to this Section 8, the Holder shall thereafter prior
to the Expiration Date be entitled to purchase,  at the Exercise Price resulting
from such  adjustment,  the number of Warrant Shares obtained by multiplying the
Exercise Price in effect  immediately  prior to such adjustment by the number of
Warrant Shares issuable upon exercise of this Warrant  immediately prior to such
adjustment and dividing the product thereof by the Exercise Price resulting from
such adjustment.

                     (a)    If the  Company,  at any time while this  Warrant is
outstanding,  (i) shall pay a stock dividend or otherwise make a distribution or
distributions  on shares of its Common Stock (as defined  below) or on any other

                                      -3-
<PAGE>

class of capital  stock (and not the Common  Stock)  payable in shares of Common
Stock, (ii) subdivide outstanding shares of Common Stock into a larger number of
shares,  or (iii)  combine  outstanding  shares of Common  Stock  into a smaller
number of shares,  the Exercise Price shall be multiplied by a fraction of which
the numerator shall be the number of shares of Common Stock (excluding  treasury
shares, if any) outstanding before such event and of which the denominator shall
be the number of shares of Common  Stock  (excluding  treasury  shares,  if any)
outstanding after such event. Any adjustment made pursuant to this Section shall
become  effective  immediately  after the record date for the  determination  of
stockholders  entitled to receive such dividend or distribution and shall become
effective  immediately  after the effective date in the case of a subdivision or
combination, and shall apply to successive subdivisions and combinations.

                     (b)    In case of any reclassification of the Common Stock,
any consolidation or merger of the Company with or into another person, the sale
or  transfer of all or  substantially  all of the assets of the Company in which
the  consideration  therefor is equity or equity  equivalent  securities  or any
compulsory  share exchange  pursuant to which the Common Stock is converted into
other securities or property, then the Holder shall have the right thereafter to
exercise  this  Warrant only into the shares of stock and other  securities  and
property  receivable  upon or  deemed  to be held by  holders  of  Common  Stock
following such reclassification,  consolidation, merger, sale, transfer or share
exchange,  and the Holder  shall be  entitled  upon such  event to receive  such
amount of securities or property of the Company's business  combination  partner
equal to the amount of Warrant  Shares such Holder  would have been  entitled to
had   such   Holder   exercised   this   Warrant   immediately   prior  to  such
reclassification,  consolidation,  merger, sale, transfer or share exchange. The
terms of any such consolidation,  merger, sale, transfer or share exchange shall
include  such terms so as to continue to give to the Holder the right to receive
the  securities  or property  set forth in this  Section  8(b) upon any exercise
following any such  reclassification,  consolidation,  merger, sale, transfer or
share exchange.

                     (c)    If the  Company,  at any time while this  Warrant is
outstanding, shall distribute to all holders of Common Stock (and not to holders
of this Warrant)  evidences of its  indebtedness or assets or rights or warrants
to  subscribe  for or purchase  any  security  (excluding  those  referred to in
Sections 8(a), (b) and (d)),  then in each such case the Exercise Price shall be
determined by multiplying the Exercise Price in effect  immediately prior to the
record date fixed for  determination  of  stockholders  entitled to receive such
distribution by a fraction of which the denominator  shall be the Exercise Price
determined  as of the record date  mentioned  above,  and of which the numerator
shall be such Exercise Price on such record date less the then fair market value
at such record date of the portion of such assets or evidence of indebtedness so
distributed applicable to one outstanding share of Common Stock as determined by
a nationally  recognized or major  regional  investment  banking firm or firm of
independent  certified public  accountants of recognized  standing (which may be
the firm that  regularly  examines the financial  statements of the Company) (an
"Appraiser")  mutually  selected  in good faith by the  holders of a majority in
interest of the Warrants then  outstanding  and the Company.  Any  determination
made by the Appraiser shall be final.

                     (d)    If, at any time while this  Warrant is  outstanding,
the Company  shall issue or cause to be issued  rights or warrants to acquire or
otherwise  sell or  distribute  shares of Common  Stock to all holders of Common
Stock for a consideration per share less than the Exercise Price then in effect,

                                      -4-
<PAGE>

then,  forthwith upon such issue or sale, the Exercise Price shall be reduced to
the price  (calculated to the nearest cent) determined by dividing (i) an amount
equal  to the sum of (A) the  number  of  shares  of  Common  Stock  outstanding
immediately  prior to such issue or sale multiplied by the Exercise  Price,  and
(B) the  consideration,  if any, received or receivable by the Company upon such
issue or sale by (ii) the total  number of  shares of Common  Stock  outstanding
immediately after such issue or sale.

                     (e)    For the  purposes of this  Section 8, the  following
clauses shall also be applicable:

                            (i)    Record Date. In case the Company shall take a
record of the holders of its Common Stock for the purpose of entitling  them (A)
to  receive a  dividend  or other  distribution  payable  in Common  Stock or in
securities  convertible or  exchangeable  into shares of Common Stock, or (B) to
subscribe for or purchase Common Stock or securities convertible or exchangeable
into  shares of Common  Stock,  then such  record date shall be deemed to be the
date of the  issue or sale of the  shares of  Common  Stock  deemed to have been
issued or sold upon the declaration of such dividend or the making of such other
distribution  or the  date of the  granting  of such  right of  subscription  or
purchase, as the case may be.

                            (ii)   Treasury  Shares.  The  number  of  shares of
Common  Stock  outstanding  at any given time shall not include  shares owned or
held by or for the  account  of the  Company,  and the  disposition  of any such
shares shall be considered an issue or sale of Common Stock.

                     (f)    All calculations  under this Section 8 shall be made
to the nearest cent or the nearest 1/100th of a share, as the case may be.

                     (g)    If:

                            (i)    the Company  shall declare a dividend (or any
                                   other distribution) on its Common Stock; or

                            (ii)   the   Company   shall   declare   a   special
                                   nonrecurring cash dividend on or a redemption
                                   of its Common Stock; or

                            (iii)  the Company  shall  authorize the granting to
                                   all  holders  of the Common  Stock  rights or
                                   warrants to  subscribe  for or  purchase  any
                                   shares  of  capital  stock of any class or of
                                   any rights; or

                            (iv)   the  approval  of  any  stockholders  of  the
                                   Company shall be required in connection  with
                                   any  reclassification  of the Common Stock of
                                   the Company,  any  consolidation or merger to
                                   which  the  Company  is a party,  any sale or
                                   transfer of all or  substantially  all of the
                                   assets  of the  Company,  or  any  compulsory

                                      -5-
<PAGE>

                                   share  exchange  whereby the Common  Stock is
                                   converted  into  other  securities,  cash  or
                                   property; or

                            (v)    the Company  shall  authorize  the  voluntary
                                   dissolution, liquidation or winding up of the
                                   affairs of the Company,

then the Company shall cause to be mailed to each Holder at their last addresses
as they shall appear upon the Warrant Register,  at least 30 calendar days prior
to the  applicable  record or effective  date  hereinafter  specified,  a notice
stating  (x) the date on which a record is to be taken for the  purpose  of such
dividend, distribution, redemption, rights or warrants, or if a record is not to
be taken,  the date as of which  the  holders  of  Common  Stock of record to be
entitled to such dividend, distributions,  redemption, rights or warrants are to
be  determined  or (y) the date on which such  reclassification,  consolidation,
merger,  sale,  transfer or share  exchange is expected to become  effective  or
close,  and the date as of which it is expected  that holders of Common Stock of
record  shall  be  entitled  to  exchange  their  shares  of  Common  Stock  for
securities,  cash or other  property  deliverable  upon  such  reclassification,
consolidation,  merger, sale, transfer, share exchange, dissolution, liquidation
or winding up;  provided,  however,  that the failure to mail such notice or any
defect  therein or in the mailing  thereof  shall not affect the validity of the
corporate action required to be specified in such notice.

              9.     Payment of Exercise Price.  The Holder may pay the Exercise
Price in cash, by delivering immediately available funds to the Company.

              10.    Fractional  Shares.  The  Company  shall not be required to
issue or cause to be issued  fractional  Warrant  Shares on the exercise of this
Warrant.  The number of full  Warrant  Shares  which shall be issuable  upon the
exercise of this Warrant shall be computed on the basis of the aggregate  number
of Warrant Shares  purchasable on exercise of this Warrant so presented.  If any
fraction of a Warrant Share would, except for the provisions of this Section 10,
be issuable on the exercise of this Warrant,  the Company shall,  at its option,
(i) pay an  amount  in cash  equal  to the  Exercise  Price  multiplied  by such
fraction  or (ii) round the number of Warrant  Shares  issuable,  up to the next
whole number.

              11.    Notices.  Any and all  notices or other  communications  or
deliveries hereunder shall be in writing and shall be deemed given and effective
on the earliest of (i) the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile  telephone  number specified in this
Section,  (ii)  the  business  day  following  the date of  mailing,  if sent by
nationally recognized overnight courier service, or (iii) upon actual receipt by
the party to whom such notice is required to be given.  The  addresses  for such
communications  shall be: (1) if to the Company,  to CirTran  Corporation,  4125
South 6000 West, West Valley City, Utah, 84128 or by facsimile to (801) 963-8823
Attention:  Iehab  Hawatmeh,  or (ii) if to the  Holder,  to the  Holder  at the
address or  facsimile  number  appearing  on the Warrant  Register or such other
address  or  facsimile  number as the  Holder  may  provide  to the  Company  in
accordance with this Section 11.

                                      -6-
<PAGE>

              12.    Warrant Agent.

                     (a)    The Company  shall serve as warrant agent under this
Warrant.  Upon thirty (30) days' notice to the Holder, the Company may appoint a
new warrant agent.

                     (b)    Any  corporation  into which the  Company or any new
warrant agent may be merged or any corporation  resulting from any consolidation
to  which  the  Company  or any  new  warrant  agent  shall  be a  party  or any
corporation   to  which  the  Company  or  any  new  warrant   agent   transfers
substantially all of its corporate trust or shareholders services business shall
be a successor  warrant  agent under this  Warrant  without any further act. Any
such  successor  warrant agent shall  promptly cause notice of its succession as
warrant agent to be mailed (by first class mail,  postage prepaid) to the Holder
at the Holder's last address as shown on the Warrant Register.

              13.    Miscellaneous.

                     (a)    This  Warrant  shall be  binding on and inure to the
benefit of the parties  hereto and their  respective  successors  and  permitted
assigns.  This Warrant may be amended only in writing  signed by the Company and
the Holder.

                     (b)    Subject to  Section  13(a),  above,  nothing in this
Warrant shall be construed to give to any person or  corporation  other than the
Company and the Holder any legal or equitable right,  remedy or cause under this
Warrant; this Warrant shall be for the sole and exclusive benefit of the Company
and the Holder.

                     (c)    This Warrant  shall be governed by and construed and
enforced  in  accordance  with the  internal  laws of the State of Utah  without
regard to the principles of conflicts of law thereof.

                     (d)    The headings herein are for convenience only, do not
constitute a part of this Warrant and shall not be deemed to limit or affect any
of the provisions hereof.

                     (e)    In case  any one or more of the  provisions  of this
Warrant  shall be invalid or  unenforceable  in any  respect,  the  validity and
enforceability  of the remaining  terms and provisions of this Warrant shall not
in any way be affected or impaired  thereby and the parties will attempt in good
faith  to  agree  upon a  valid  and  enforceable  provision  which  shall  be a
commercially  reasonable  substitute  therefor,  and  upon  so  agreeing,  shall
incorporate such substitute provision in this Warrant.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.
                            SIGNATURE PAGE FOLLOWS.]

                                      -7-
<PAGE>

                  IN WITNESS WHEREOF,  the Company has caused this Warrant to be
duly executed by its authorized officer as of the date first indicated above.

                                     CirTran Corporation

                                     By: /s/ Iehab Hawatmeh
                                        -----------------------------------

                                     Name:   Iehab Hawatmeh
                                          ---------------------------------

                                     Title: President
                                           --------------------------------

<PAGE>

                          FORM OF ELECTION TO PURCHASE

(To be executed by the Holder to exercise the right to purchase shares of Common
Stock under the foregoing Warrant)

To CirTran Corproation:

       In  accordance  with the Warrant  enclosed  with this Form of Election to
Purchase,  the undersigned hereby  irrevocably elects to purchase  [___________]
shares of Common Stock ("Common  Stock"),  $.001 par value per share, of CirTran
Corporation,  and encloses  herewith  $________ in cash or certified or official
bank check or checks,  which sum  represents  the aggregate  Exercise  Price (as
defined in the  Warrant)  for the number of shares of Common Stock to which this
Form of Election to Purchase relates, together with any applicable taxes payable
by the undersigned pursuant to the Warrant.

       The undersigned requests that certificates for the shares of Common Stock
issuable upon this exercise be issued in the name of

                                                PLEASE INSERT SOCIAL SECURITY OR
                                                TAX IDENTIFICATION NUMBER

                                                ________________________________

________________________________________________________________________________
                         (Please print name and address)

________________________________________________________________________________

________________________________________________________________________________

       If the number of shares of Common Stock issuable upon this exercise shall
not be all of the shares of Common  Stock which the  undersigned  is entitled to
purchase in accordance with the enclosed Warrant,  the undersigned requests that
a New Warrant (as defined in the Warrant)  evidencing  the right to purchase the
shares of Common Stock not issuable pursuant to the exercise evidenced hereby be
issued in the name of and delivered to:

________________________________________________________________________________
                         (Please print name and address)

________________________________________________________________________________

________________________________________________________________________________

Dated:                    ,              Name of Holder:
       __________________   _____

                                         (Print)_____________________________

                                         (By:)_______________________________

                                         (Name:)_____________________________

                                         (Title:)____________________________

                                         (Signature must conform in all respects
                                         to  name of holder as specified on the
                                         face of the Warrant)

<PAGE>

           [To be completed and signed only upon transfer of Warrant]

       FOR VALUE RECEIVED,  the undersigned hereby sells,  assigns and transfers
unto  ________________________________  the  right  represented  by  the  within
Warrant to purchase  ____________ shares of Common Stock of CirTran Corporation,
to which the within Warrant  relates and appoints  ________________  attorney to
transfer  said  right on the books of  CirTran  Corporation,  with full power of
substitution in the premises.

Dated:

---------------, ----

                                        ---------------------------------------
                                        (Signature  must conform in all respects
                                        to name of  holder as  specified on  the
                                        face of the Warrant)

                                        ---------------------------------------
                                        Address of Transferee

                                        ---------------------------------------

                                        ---------------------------------------

In the presence of:

--------------------------

--------------------------------------------------------------------------------Exhibit 4.1

Execution

CREDIT AND
GUARANTY AGREEMENT

dated as of July 5,
2006

among

GRANITE
BROADCASTING CORPORATION,

THE SUBSIDIARIES
OF GRANITE
BROADCASTING CORPORATION,

as Guarantors,

VARIOUS LENDERS,

and

SILVER POINT
FINANCE, LLC,

as Administrative Agent

________________________________________________________

$70,000,000
Senior Secured Credit Facilities

________________________________________________________

 

 

 

TABLE
OF CONTENTS

	
  SECTION 1.

  	
   

  	
  DEFINITIONS AND
  INTERPRETATION

  	
   

  	
  1

  
	
  1.1

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  1.2

  	
   

  	
  Accounting Terms

  	
   

  	
  32

  
	
  1.3

  	
   

  	
  Interpretation, etc

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
   

  	
  LOANS AND
  LETTERS OF CREDIT

  	
   

  	
  33

  
	
  2.1

  	
   

  	
  Term Loans.

  	
   

  	
  33

  
	
  2.2

  	
   

  	
  [Reserved].

  	
   

  	
  34

  
	
  2.3

  	
   

  	
  [Reserved].

  	
   

  	
  34

  
	
  2.4

  	
   

  	
  Pro Rata Shares; Availability of Funds.

  	
   

  	
  34

  
	
  2.5

  	
   

  	
  Use of Proceeds

  	
   

  	
  35

  
	
  2.6

  	
   

  	
  Evidence of Debt; Register; Lenders’ Books and
  Records; Notes.

  	
   

  	
  35

  
	
  2.7

  	
   

  	
  Interest on Loans.

  	
   

  	
  36

  
	
  2.8

  	
   

  	
  Interest Election Requests.

  	
   

  	
  36

  
	
  2.9

  	
   

  	
  Default Interest

  	
   

  	
  37

  
	
  2.10

  	
   

  	
  Fees.

  	
   

  	
  37

  
	
  2.11

  	
   

  	
  Repayment of Loans.

  	
   

  	
  37

  
	
  2.12

  	
   

  	
  Voluntary Prepayments.

  	
   

  	
  38

  
	
  2.13

  	
   

  	
  Mandatory Prepayments.

  	
   

  	
  38

  
	
  2.14

  	
   

  	
  Application of Prepayments.

  	
   

  	
  39

  
	
  2.15

  	
   

  	
  General Provisions Regarding Payments.

  	
   

  	
  39

  
	
  2.16

  	
   

  	
  Ratable Sharing

  	
   

  	
  40

  
	
  2.17

  	
   

  	
  Making or Maintaining LIBOR Rate Loans.

  	
   

  	
  41

  
	
  2.18

  	
   

  	
  Increased Costs; Capital Adequacy; Reserves on LIBOR
  Rate Loans.

  	
   

  	
  43

  
	
  2.19

  	
   

  	
  Taxes; Withholding, etc.

  	
   

  	
  44

  
	
  2.20

  	
   

  	
  Obligation to Mitigate

  	
   

  	
  46

  
	
  2.21

  	
   

  	
  Defaulting Lenders

  	
   

  	
  47

  
	
  2.22

  	
   

  	
  Removal or Replacement of a Lender

  	
   

  	
  47

  
	
  2.23

  	
   

  	
  Notices.

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
   

  	
  CONDITIONS
  PRECEDENT

  	
   

  	
  48

  
	
  3.1

  	
   

  	
  Conditions to Making All Loans

  	
   

  	
  48

  
	
  3.2

  	
   

  	
  Additional Conditions to Tranche A Term Loan.

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
   

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  	
  53

  
	
  4.1

  	
   

  	
  Organization; Requisite Power and Authority;
  Qualification

  	
   

  	
  53

  
	
  4.2

  	
   

  	
  Capital Stock and Ownership

  	
   

  	
  53

  
	
  4.3

  	
   

  	
  Due Authorization

  	
   

  	
  54

  
	
  4.4

  	
   

  	
  No Conflict

  	
   

  	
  54

  
	
  4.5

  	
   

  	
  Governmental Consents

  	
   

  	
  54

  
	
  4.6

  	
   

  	
  Binding Obligation

  	
   

  	
  54

  
	
  4.7

  	
   

  	
  Historical Financial Statements

  	
   

  	
  54

  
	
  4.8

  	
   

  	
  Projections

  	
   

  	
  55

  

 

 

 

 

	
  4.9

  	
   

  	
  No Material Adverse Change

  	
   

  	
  55

  
	
  4.10

  	
   

  	
  No Restricted Junior Payments

  	
   

  	
  55

  
	
  4.11

  	
   

  	
  Adverse Proceedings, etc

  	
   

  	
  55

  
	
  4.12

  	
   

  	
  Payment of Taxes

  	
   

  	
  55

  
	
  4.13

  	
   

  	
  Properties

  	
   

  	
  56

  
	
  4.14

  	
   

  	
  Environmental Matters

  	
   

  	
  56

  
	
  4.15

  	
   

  	
  No Defaults

  	
   

  	
  57

  
	
  4.16

  	
   

  	
  Material Contracts

  	
   

  	
  57

  
	
  4.17

  	
   

  	
  Governmental Regulation

  	
   

  	
  57

  
	
  4.18

  	
   

  	
  Margin Stock

  	
   

  	
  57

  
	
  4.19

  	
   

  	
  Employee Matters

  	
   

  	
  57

  
	
  4.20

  	
   

  	
  Employee Benefit Plans

  	
   

  	
  58

  
	
  4.21

  	
   

  	
  Certain Fees

  	
   

  	
  58

  
	
  4.22

  	
   

  	
  [Reserved]

  	
   

  	
  58

  
	
  4.23

  	
   

  	
  [Reserved]

  	
   

  	
  58

  
	
  4.24

  	
   

  	
  Compliance with Statutes, etc

  	
   

  	
  58

  
	
  4.25

  	
   

  	
  Disclosure

  	
   

  	
  58

  
	
  4.26

  	
   

  	
  Terrorism Laws

  	
   

  	
  59

  
	
  4.27

  	
   

  	
  Insurance

  	
   

  	
  59

  
	
  4.28

  	
   

  	
  Common Enterprise

  	
   

  	
  59

  
	
  4.29

  	
   

  	
  Security Interest in Collateral

  	
   

  	
  59

  
	
  4.30

  	
   

  	
  Affiliate Transactions

  	
   

  	
  60

  
	
  4.31

  	
   

  	
  Intellectual Property

  	
   

  	
  60

  
	
  4.32

  	
   

  	
  Permits, Etc

  	
   

  	
  60

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
   

  	
  AFFIRMATIVE
  COVENANTS

  	
   

  	
  60

  
	
  5.1

  	
   

  	
  Financial Statements and Other Reports.

  	
   

  	
  61

  
	
  5.2

  	
   

  	
  Existence

  	
   

  	
  64

  
	
  5.3

  	
   

  	
  Payment of Taxes and Claims

  	
   

  	
  64

  
	
  5.4

  	
   

  	
  Maintenance of Properties

  	
   

  	
  65

  
	
  5.5

  	
   

  	
  Insurance

  	
   

  	
  65

  
	
  5.6

  	
   

  	
  Books and Records; Inspections

  	
   

  	
  65

  
	
  5.7

  	
   

  	
  [Reserved].

  	
   

  	
  66

  
	
  5.8

  	
   

  	
  Compliance with Laws

  	
   

  	
  66

  
	
  5.9

  	
   

  	
  Environmental.

  	
   

  	
  66

  
	
  5.10

  	
   

  	
  Subsidiaries

  	
   

  	
  68

  
	
  5.11

  	
   

  	
  Additional Material Real Estate Assets

  	
   

  	
  68

  
	
  5.12

  	
   

  	
  Equitable Lien

  	
   

  	
  69

  
	
  5.13

  	
   

  	
  [Reserved]

  	
   

  	
  69

  
	
  5.14

  	
   

  	
  Further Assurances

  	
   

  	
  69

  
	
  5.15

  	
   

  	
  Miscellaneous Business Covenants

  	
   

  	
  69

  
	
  5.16

  	
   

  	
  Use of Proceeds

  	
   

  	
  69

  
	
  5.17

  	
   

  	
  Restructuring Plan.

  	
   

  	
  69

  
	
  5.18

  	
   

  	
  Post Closing Matters

  	
   

  	
  70

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
   

  	
  NEGATIVE
  COVENANTS

  	
   

  	
  70

  
	
  6.1

  	
   

  	
  Indebtedness

  	
   

  	
  70

  

 ii
 

 

 

	
  6.2

  	
   

  	
  Liens

  	
   

  	
  71

  
	
  6.3

  	
   

  	
  No Further Negative Pledges

  	
   

  	
  71

  
	
  6.4

  	
   

  	
  Restricted Junior Payments

  	
   

  	
  71

  
	
  6.5

  	
   

  	
  Restrictions on Subsidiary Distributions

  	
   

  	
  71

  
	
  6.6

  	
   

  	
  Investments

  	
   

  	
  72

  
	
  6.7

  	
   

  	
  Financial Covenants.

  	
   

  	
  73

  
	
  6.8

  	
   

  	
  Fundamental Changes; Disposition of Assets;
  Acquisitions

  	
   

  	
  73

  
	
  6.9

  	
   

  	
  Disposal of Subsidiary Interests

  	
   

  	
  74

  
	
  6.10

  	
   

  	
  Sales and Lease Backs

  	
   

  	
  74

  
	
  6.11

  	
   

  	
  Transactions with Shareholders and Affiliates

  	
   

  	
  74

  
	
  6.12

  	
   

  	
  Conduct of Business

  	
   

  	
  75

  
	
  6.13

  	
   

  	
  [Reserved]

  	
   

  	
  75

  
	
  6.14

  	
   

  	
  Amendments or Waivers of Certain Related Agreements

  	
   

  	
  75

  
	
  6.15

  	
   

  	
  [Reserved]

  	
   

  	
  75

  
	
  6.16

  	
   

  	
  Fiscal Year

  	
   

  	
  75

  
	
  6.17

  	
   

  	
  Deposit Accounts

  	
   

  	
  75

  
	
  6.18

  	
   

  	
  Amendments to Certain Agreements

  	
   

  	
  75

  
	
  6.19

  	
   

  	
  Prepayments of Certain Indebtedness

  	
   

  	
  75

  
	
  6.20

  	
   

  	
  Issuance of Capital Stock

  	
   

  	
  75

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
   

  	
  GUARANTY

  	
   

  	
  76

  
	
  7.1

  	
   

  	
  Guaranty of the Lender Obligations

  	
   

  	
  76

  
	
  7.2

  	
   

  	
  Contribution by Guarantors

  	
   

  	
  76

  
	
  7.3

  	
   

  	
  Payment by Guarantors

  	
   

  	
  76

  
	
  7.4

  	
   

  	
  Liability of Guarantors Absolute

  	
   

  	
  77

  
	
  7.5

  	
   

  	
  Waivers by Guarantors

  	
   

  	
  79

  
	
  7.6

  	
   

  	
  Guarantors’ Rights of Subrogation, Contribution, etc

  	
   

  	
  79

  
	
  7.7

  	
   

  	
  Subordination of Other Obligations

  	
   

  	
  80

  
	
  7.8

  	
   

  	
  Continuing Guaranty

  	
   

  	
  80

  
	
  7.9

  	
   

  	
  Authority of Guarantors or Company

  	
   

  	
  80

  
	
  7.10

  	
   

  	
  Financial Condition of Company

  	
   

  	
  80

  
	
  7.11

  	
   

  	
  Bankruptcy, etc.

  	
   

  	
  81

  
	
  7.12

  	
   

  	
  Discharge of Guaranty Upon Sale of Guarantor

  	
   

  	
  81

  
	
  7.13

  	
   

  	
  Taxes

  	
   

  	
  81

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
   

  	
  EVENTS OF
  DEFAULT

  	
   

  	
  82

  
	
  8.1

  	
   

  	
  Events of Default

  	
   

  	
  82

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
   

  	
  AGENTS

  	
   

  	
  85

  
	
  9.1

  	
   

  	
  Appointment of Agents

  	
   

  	
  85

  
	
  9.2

  	
   

  	
  Powers and Duties

  	
   

  	
  85

  
	
  9.3

  	
   

  	
  General Immunity.

  	
   

  	
  85

  
	
  9.4

  	
   

  	
  Agents Entitled to Act as Lender

  	
   

  	
  86

  
	
  9.5

  	
   

  	
  Lenders’ Representations, Warranties and
  Acknowledgment.

  	
   

  	
  87

  
	
  9.6

  	
   

  	
  Right to Indemnity

  	
   

  	
  87

  
	
  9.7

  	
   

  	
  Successor Administrative Agent.

  	
   

  	
  88

  
	
  9.8

  	
   

  	
  Collateral Documents and Guaranty.

  	
   

  	
  89

  

 iii
 

 

 

	
  9.9

  	
   

  	
  Posting of Approved Electronic Communications.

  	
   

  	
  90

  
	
  9.10

  	
   

  	
  Proofs of Claim

  	
   

  	
  91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  92

  
	
  10.1

  	
   

  	
  Notices

  	
   

  	
  92

  
	
  10.2

  	
   

  	
  Expenses

  	
   

  	
  92

  
	
  10.3

  	
   

  	
  Indemnity.

  	
   

  	
  93

  
	
  10.4

  	
   

  	
  Set Off

  	
   

  	
  93

  
	
  10.5

  	
   

  	
  Amendments and Waivers.

  	
   

  	
  94

  
	
  10.6

  	
   

  	
  Successors and Assigns; Participations.

  	
   

  	
  96

  
	
  10.7

  	
   

  	
  Special Purpose Funding Vehicles

  	
   

  	
  99

  
	
  10.8

  	
   

  	
  Independence of Covenants

  	
   

  	
  99

  
	
  10.9

  	
   

  	
  Survival of Representations, Warranties and
  Agreements

  	
   

  	
  99

  
	
  10.10

  	
   

  	
  No Waiver; Remedies Cumulative

  	
   

  	
  100

  
	
  10.11

  	
   

  	
  Marshalling; Payments Set Aside

  	
   

  	
  100

  
	
  10.12

  	
   

  	
  Severability

  	
   

  	
  100

  
	
  10.13

  	
   

  	
  Obligations Several; Independent Nature of Lenders’
  Rights

  	
   

  	
  100

  
	
  10.14

  	
   

  	
  Headings

  	
   

  	
  100

  
	
  10.15

  	
   

  	
  APPLICABLE LAW

  	
   

  	
  101

  
	
  10.16

  	
   

  	
  CONSENT TO JURISDICTION.

  	
   

  	
  101

  
	
  10.17

  	
   

  	
  WAIVER OF JURY TRIAL

  	
   

  	
  101

  
	
  10.18

  	
   

  	
  Confidentiality

  	
   

  	
  102

  
	
  10.19

  	
   

  	
  Usury Savings Clause

  	
   

  	
  103

  
	
  10.20

  	
   

  	
  Counterparts

  	
   

  	
  103

  
	
  10.21

  	
   

  	
  Effectiveness

  	
   

  	
  103

  
	
  10.22

  	
   

  	
  Patriot Act

  	
   

  	
  103

  
	
  10.23

  	
   

  	
  Disclosure

  	
   

  	
  104

  
	
  10.24

  	
   

  	
  Appointment for Perfection

  	
   

  	
  104

  
	
  10.25

  	
   

  	
  Advertising and Publicity.

  	
   

  	
  104

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
   

  	
  CONVERSION

  	
   

  	
  104

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 iv
 

 

 

	
  APPENDICES:

  	
  A-1

  	
  Tranche A Term Loan Commitments

  	
   

  	
   

  
	
   

  	
  A-2

  	
  Tranche B Term Loan Commitments

  	
   

  	
   

  
	
   

  	
  B

  	
  Notice Addresses

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULES:

  	
  3.1(t)

  	
  Material Events

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Jurisdictions of Organization and Qualification

  	
   

  	
   

  
	
   

  	
  4.2

  	
  Capital Stock and Ownership

  	
   

  	
   

  
	
   

  	
  4.11

  	
  Adverse Proceedings

  	
   

  	
   

  
	
   

  	
  4.13

  	
  Real Estate Assets

  	
   

  	
   

  
	
   

  	
  4.16

  	
  Material Contracts

  	
   

  	
   

  
	
   

  	
  4.21

  	
  Certain Fees

  	
   

  	
   

  
	
   

  	
  4.27

  	
  Insurance

  	
   

  	
   

  
	
   

  	
  4.30

  	
  Affiliate Transactions

  	
   

  	
   

  
	
   

  	
  4.31

  	
  Intellectual Property

  	
   

  	
   

  
	
   

  	
  5.18

  	
  Certain Post Closing Matters

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Certain Indebtedness

  	
   

  	
   

  
	
   

  	
  6.2

  	
  Certain Liens

  	
   

  	
   

  
	
   

  	
  6.6

  	
  Certain Investments

  	
   

  	
   

  
	
   

  	
  6.7(b)

  	
  Minimum Broadcast Cash Flow

  	
   

  	
   

  
	
   

  	
  6.11

  	
  Certain Affiliate Transactions

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS:

  	
  A-1

  	
  Funding Notice

  	
   

  	
   

  
	
   

  	
  A-2

  	
  Interest Election Request

  	
   

  	
   

  
	
   

  	
  B-1

  	
  Tranche A Term Loan Note

  	
   

  	
   

  
	
   

  	
  B-2

  	
  Tranche B Term Loan Note

  	
   

  	
   

  
	
   

  	
  C

  	
  Compliance Certificate

  	
   

  	
   

  
	
   

  	
  D

  	
  Opinions of Counsel

  	
   

  	
   

  
	
   

  	
  E

  	
  Assignment Agreement

  	
   

  	
   

  
	
   

  	
  F

  	
  Certificate Regarding Non-bank Status

  	
   

  	
   

  
	
   

  	
  G

  	
  [Reserved]

  	
   

  	
   

  
	
   

  	
  H

  	
  Counterpart Agreement

  	
   

  	
   

  
	
   

  	
  I

  	
  Form of Indenture Supplement No. 2

  	
   

  	
   

  

 

 v

 

 

CREDIT
AND GUARANTY AGREEMENT

This CREDIT AND GUARANTY AGREEMENT,
dated as of July 5, 2006, is entered into by and among GRANITE BROADCASTING CORPORATION, a Delaware corporation (“Company”), and THE SUBSIDIARIES OF
COMPANY listed on the signature pages hereto, as Guarantors,
the Lenders party hereto from time to time, and SILVER POINT
FINANCE, LLC (“Silver Point”),
as Administrative Agent (in such capacity, “Administrative
Agent”).

RECITALS:

WHEREAS, capitalized terms used
in these Recitals shall have the respective meanings set forth for such terms
in Section 1.1 hereof;

WHEREAS, Lenders have agreed to
extend certain credit facilities to Company, in an aggregate amount not to
exceed $70,000,000, consisting of $40,000,000 aggregate principal amount of
Tranche A Term Loans and $30,000,000 aggregate principal amount of Tranche B
Term Loans, the proceeds of which will be used as provided in Section 2.5
hereof;

WHEREAS, Company has agreed to
secure all of its Obligations by granting to Collateral Agent, for the benefit
of the Secured Parties, a First Priority Lien on substantially all of its
assets, including a pledge of all of the Capital Stock of each of its
Subsidiaries; and

WHEREAS, Guarantors have agreed
to guarantee the obligations of Company hereunder and to secure their
respective Obligations by granting to Collateral Agent, for the benefit of
Secured Parties, a First Priority Lien on substantially all of their respective
assets, including a pledge of all of the Capital Stock of each of their
respective Subsidiaries.

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

SECTION 1.                           DEFINITIONS
AND INTERPRETATION

1.1                               Definitions.
The following terms used herein, including in the preamble, recitals,
exhibits and schedules hereto, shall have the following meanings:

“Adjusted LIBOR Rate” means, for
any Interest Rate Determination Date with respect to an Interest Period for a
LIBOR Rate Loan, the rate per annum obtained by dividing (and rounding upward
to the next whole multiple of one-sixteenth of one percent (1/16 of 1%)) (i)

 1
 

 

(a) the rate per annum (rounded to the nearest
one-hundredth of one percent (1/100 of 1%)) equal to the rate determined by
Administrative Agent to be the offered rate which appears on the page of
the Telerate Screen which displays an average British Bankers Association
Interest Settlement Rate (such page currently being page number 3740
or 3750, as applicable) for deposits (for delivery on the first day of such
period) with a term equivalent to such period in Dollars, determined as of
approximately 11:00 a.m. (London, England time) on such Interest Rate
Determination Date, or (b) in the event the rate referenced in the
preceding clause (a) does not appear on such page or service or if
such page or service shall cease to be available, the rate per annum
(rounded to the nearest one-hundredth of one percent (1/100 of 1%)) equal to
the rate determined by Administrative Agent to be the offered rate on such
other page or other service which displays an average British Bankers
Association Interest Settlement Rate for deposits (for delivery on the first
day of such period) with a term equivalent to such period in Dollars,
determined as of approximately 11:00 a.m. (London, England time) on such
Interest Rate Determination Date, or (c) in the event the rates referenced
in the preceding clauses (a) and (b) are not available, the rate per
annum (rounded to the nearest one-hundredth of one percent (1/100 of 1%)) equal
to the offered quotation rate to first class banks in the London interbank
market for deposits (for delivery on the first day of the relevant period) in
Dollars of amounts in same day funds comparable to the principal amount of the
applicable Loan, for which the Adjusted LIBOR Rate is then being determined
with maturities comparable to such period as of approximately 11:00 a.m.
(London, England time) on such Interest Rate Determination Date as determined
by Administrative Agent in accordance with its customary practices, by (ii) an
amount equal to (a) one, minus (b) the Applicable Reserve
Requirement.

“Administrative Agent” as
defined in the preamble hereto.

“Administrative Agent’s Account” means
an account at a bank designated by Administrative Agent from time to time as
the account into which Credit Parties shall make all payments to Administrative
Agent for the benefit of Agent and Lenders under this Agreement and the other
Credit Documents.

“Adverse Proceeding” means any
action, suit, proceeding (whether administrative, judicial or otherwise),
governmental investigation or arbitration (whether or not purportedly on behalf
of Company or any of its Subsidiaries) at law or in equity, or before or by any
Governmental Authority, domestic or foreign (including any Environmental
Claims) or other regulatory body or any arbitrator whether pending or, to the
best knowledge of Company or any of its Subsidiaries, threatened in writing
against or affecting Company or any of its Subsidiaries or any property of Company
or any of its Subsidiaries.

“Affected Lender” as defined in Section 2.17(b).

“Affected Loans” as defined in Section 2.17(b).

 2
 

 

“Affiliate” means, as applied to
any Person, any other Person directly or indirectly controlling, controlled by,
or under common control with, that Person. For the purposes of this definition,
“control”
(including, with correlative meanings, the terms “controlling,”  “controlled by” and “under common
control with”), as applied to any Person,
means the possession, directly or indirectly, of the power (i) to vote
five percent (5%) or more of the Securities having ordinary voting power for
the election of directors of such Person, or (ii) to direct or cause the
direction of the management and policies of that Person, whether through the
ownership of voting securities or by contract or otherwise. Notwithstanding
anything to the contrary herein, in no event shall any Agent or Lender be
considered an “Affiliate” of any Credit Party.

“Agent” means each of the
Administrative Agent and the Collateral Agent.

“Aggregate Amounts Due” as
defined in Section 2.16.

“Aggregate Payments” as defined
in Section 7.2.

“Agreement” means this Credit
and Guaranty Agreement, dated as of July 5, 2006, as it may be amended,
supplemented or otherwise modified from time to time and any annexes, exhibits,
schedules to any of the foregoing.

“Applicable Margin” means (i) with
respect to LIBOR Rate Loans, a percentage, per annum, equal to five percent
(5.0%) and (ii) with respect to Base Rate Loans, a percentage , per annum
equal to four percent (4.0%).

“Applicable Reserve Requirement”
means, at any time, for any LIBOR Rate Loan, the maximum rate, expressed as a
decimal, at which reserves (including any basic marginal, special,
supplemental, emergency or other reserves) are required to be maintained with
respect thereto against “Eurocurrency Liabilities” (as such term is defined in
Regulation D) under regulations issued from time to time by the Board of
Governors of the Federal Reserve System or other applicable banking regulator. Without
limiting the effect of the foregoing, the Applicable Reserve Requirement shall
reflect any other reserves required to be maintained by such member banks with
respect to (i) any category of liabilities which includes deposits by
reference to which the applicable Adjusted LIBOR Rate or any other interest
rate of a Loan is to be determined, or (ii) any category of extensions of
credit or other assets which include LIBOR Rate Loans. A LIBOR Rate Loan shall
be deemed to constitute Eurocurrency liabilities and as such shall be deemed
subject to reserve requirements without benefits of credit for proration,
exceptions or offsets that may be available from time to time to the applicable
Lender. The rate of interest on LIBOR Rate Loans shall be adjusted
automatically on and as of the effective date of any change in the Applicable
Reserve Requirement.

 3
 

 

“Asset Sale” means a sale, lease
or sub lease (as lessor or sublessor), sale and leaseback, assignment,
conveyance, transfer or other disposition to, or any exchange of property with,
any Person, in one transaction or a series of transactions, of all or any part
of Company’s or any of its Subsidiaries’ businesses, assets or properties of
any kind, whether real, personal, or mixed and whether tangible or intangible,
whether now owned or hereafter acquired, including the Capital Stock of any of
Company’s Subsidiaries, other than inventory sold or leased in the ordinary
course of business.

“Assignment Agreement” means an
Assignment and Assumption Agreement substantially in the form of Exhibit E,
with such amendments or modifications as may be approved by Administrative
Agent.

“Attributable Debt” means as of
the date of determination thereof, without duplication, (i) in connection
with a sale and leaseback transaction, the net present value (discounted
according to GAAP at the cost of debt implied in the lease) of the obligations
of the lessee for rental payments during the then-remaining term of any
applicable lease, and (ii) the principal balance outstanding under any
synthetic lease, tax retention operating lease, off-balance sheet loan or
similar off-balance sheet financing product to which such Person is a party,
where such transaction is considered borrowed money indebtedness for tax
purposes but is classified as an operating lease in accordance with GAAP.

“Authorized Officer” means, as
applied to any Person, any individual holding the position of chairman of the
board (if an officer), chief executive officer, president, chief financial
officer, treasurer or controller, in each case, whose signatures and incumbency
have been certified to Administrative Agent.

“Bankruptcy Code” means Title 11
of the United States Code entitled “Bankruptcy,” as now and hereafter in
effect, or any successor statute.

“Base Rate” means, for any day,
a rate per annum equal to the greater of (i) the Prime Rate in effect on
such day, and (ii) the Federal Funds Effective Rate in effect on such day plus
2.00%. Any change in the Base Rate due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective on the effective day of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

“Base Rate Loan” means a Loan
bearing interest at a rate determined by reference to the Base Rate.

“Beneficiary” means each Agent
and Lender.

 4
 

 

“Binghamton Acquisition” means the acquisition of certain assets related to
the ownership and operation of a CBS-affiliated broadcast television station
WBNG-TV, Binghamton, New York and its auxiliary facilities.

“Binghamton Acquisition Agreement” means
the Purchase and Sale Agreement dated as of January 13, 2006 by and among
Television Station Group Holdings, LLC, Television Station Group, LLC,
Television Station Group License Subsidiary, LLC, WBNG, Inc. and WBNG
License, Inc., as amended and modified by a side letter dated January 13,
2006 from the Sellers to the Purchaser, a side letter dated January 13,
2006 from the Purchaser and Granite to the Sellers, a side letter dated March 17,
2006 from the Sellers to the Purchaser and a side letter dated April 3,
2006 from the Sellers to the Purchaser, and as further amended in a manner
permitted by this Agreement.

“Broadcast
Cash Flow” means, for any period, operating income or loss
plus depreciation and amortization, restructuring and litigation expenses,
corporate expense, non-cash compensation and program amortization, less program
payments, all as determined on a consolidated basis for the Company and its
Subsidiaries in accordance with GAAP. For purposes of determining Broadcast
Cash Flow, the WB Stations will be treated as if such assets were not assets
held for sale for GAAP purposes until such time as such assets have been
disposed.

“Business Day” means (i) any
day excluding Saturday, Sunday and any day which is a legal holiday under the
laws of the State of New York or is a day on which banking institutions located
in such state are authorized or required by law or other governmental action to
close, and (ii) with respect to all notices, determinations, fundings and
payments in connection with the Adjusted LIBOR Rate or any LIBOR Rate Loans,
the term “Business Day”
shall mean any day which is a Business Day described in clause (i) and
which is also a day for trading by and between banks in Dollar deposits in the
London interbank market.

“Capital Lease” means, as
applied to any Person, any lease of (or other arrangement conveying the right
to use) any property (whether real, personal or mixed) by that Person as lessee
(or the equivalent) that, in conformity with GAAP, is or should be accounted
for as a capital lease on the balance sheet of that Person.

“Capital Stock” means any and
all shares, interests, participations or other equivalents (however designated)
of capital stock of a corporation, any and all equivalent ownership interests
in a Person (other than a corporation), including partnership interests and
membership interests, and any and all warrants, rights or options to purchase
or other arrangements or rights to acquire any of the foregoing.

“Cash” means money, currency or
a credit balance in any demand or Deposit Account.

 5
 

 

“Cash Equivalents” means, as at
any date of determination, (i) marketable securities (a) issued or
directly and unconditionally guaranteed as to interest and principal by the
United States Government, or (b) issued by any agency of the United States
the obligations of which are backed by the full faith and credit of the United
States, in each case maturing within one year after such date; (ii) marketable
direct obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof,
in each case maturing within one year after such date and having, at the time
of the acquisition thereof, a rating of at least A-1 from S&P or at least
P-1 from Moody’s; (iii) commercial paper maturing no more than one
year from the date of creation thereof and having, at the time of the
acquisition thereof, a rating of at least A-1 from S&P or at least P-1
from Moody’s; (iv) certificates of deposit or bankers’ acceptances
maturing within one year after such date and issued or accepted by any Lender
or by any commercial bank organized under the laws of the United States of
America or any state thereof or the District of Columbia that (a) is at
least “adequately capitalized” (as defined in the regulations of its primary Federal
banking regulator), and (b) has Tier 1 capital (as defined in such
regulations) of not less than $250,000,000; and (v) shares of any money
market mutual fund that (a) has at least ninety five percent (95%) of its
assets invested continuously in the types of investments referred to in clauses
(i) and (ii) above, (b) has net assets of not less than
$500,000,000, and (c) has the highest rating obtainable from either
S&P or Moody’s.

“Certificate Regarding Non-Bank Status”
means a certificate substantially in the form of Exhibit F.

“Change of Control” means the
occurrence of one or more of the following events:

(a)     
any sale, lease, exchange or other transfer (in one transaction or a
series of related transactions) of all or substantially all of the assets of
the Company to any “person” or “group” of related “persons” as defined in Rules 13d-3
and 13d-5 under the Exchange Act (whether or not otherwise in compliance
with the provisions of this Agreement), other than to the Permitted Holders;

(b)     
the approval by the holders of Capital Stock of the Company of any plan
or proposal for the liquidation or dissolution of the Company (whether or not
otherwise in compliance with the provisions of this Agreement);

(c)     
any “person” or “group” of related “persons” as defined in Rules 13d-3
and 13d-5 under the Exchange Act (other than the Permitted Holders and
any entity formed solely for the purpose of owning Capital Stock of the Company)
shall become the owner, directly or indirectly, beneficially or of record, of
shares representing more than 35% of the aggregate ordinary voting power
represented by the issued and outstanding Capital Stock of the Company;

(d)     
the replacement of a majority of the board of directors of the Company
over a one-year period (any such period to begin after the date hereof) who
constituted the board of directors of the Company at the beginning of such
period, provided that any 

 6
 

 

director that becomes a director after the date hereof that is “independent”
as defined under the rules and regulations of the New York Stock Exchange
and approved by Administrative Agent (which approval shall not be unreasonably
withheld or delayed in light of the circumstances surrounding the appointment
of such director) shall be deemed to be a director at the beginning of any such
period;

(e)          Company consolidates
with, or merges with or into, any Person, or any Person consolidates with, or
merges with or into, Company, in any such event pursuant to a transaction in
which any of the outstanding Voting Stock of Company or such other Person is
converted into or exchanged for cash, securities or other property, other than
any such transaction where the Voting Stock of Company outstanding immediately
prior to such transaction is converted into or exchanged for Voting Stock of
the surviving or transferee Person constituting a majority of the outstanding
shares of such Voting Stock of such surviving or transferee Person (immediately
after giving effect to such issuance); or

(f)            any event, the
occurrence of which constitutes a change of control of the Company for purposes
of any Existing Indebtedness;

provided,
that, any occurrence of any of the foregoing in connection with a
Restructuring Plan shall be deemed not to be a Change of Control for purposes
of this Agreement.

“Class” means (i) with
respect to Lenders, each of the following classes of Lenders: (a) Lenders
having Tranche A Term Loan Exposure and (b) Lenders having Tranche B Term
Loan Exposure, and (ii) with respect to Loans, each of the following
classes of Loans: (a) Tranche A Term Loans and (b) Tranche B Term
Loans.

“Closing Date” means the date on
which the initial Tranche B Term Loans are made.

“Closing Price per share of Preferred Stock”
on any date shall mean (i) if the Preferred Stock is listed on a national
securities exchange or publicly traded, the Closing Price per share of
Preferred Stock shall be the last sale price, regular way, or, in case no such
sale takes place on such day, the average of the closing bid and asked prices,
regular way, of the Preferred Stock, in either case as reported in the
principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on the relevant national securities exchange or, (ii) if
the Preferred Stock is not listed or admitted to trading on a national
securities exchange, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal national
securities exchange on which the Preferred Stock is listed or admitted to
trading or, (iii) if the Preferred Stock is not listed or admitted to
trading on any national securities exchange, the last quoted sale price or, if
not so quoted, the over-the-counter market, as reported by the National
Association of Securities Dealers, Inc. Automated Quotations System or
such other system then in use, or, (iv) if on any such date the Preferred
Stock is not quoted by any such organization, the average of the closing bid
and asking prices as 

 7
 

 

furnished by a professional market maker making a market in the
Preferred Stock selected by the Administrative Agent.

“Conversion Price” shall be an amount
equal to $150.00 per share, as adjusted from time to time pursuant to Section 11.1.

“Current Market Price” on any date shall
be deemed to be the average of the Closing Prices per share of Preferred Stock
for the twenty (20) consecutive Trading Days commencing thirty (30) Trading
Days immediately prior to such date.

“Collateral” means,
collectively, all of the real, personal and mixed property (including Capital
Stock) in which Liens are purported to be granted pursuant to the Collateral
Documents as security for the Obligations.

“Collateral Agent” means The
Bank of New York, as collateral agent for the Secured Parties under the
Security Agreement.

“Collateral Documents” means the
Security Agreement, the Mortgages and all other instruments, documents and
agreements delivered by any Credit Party pursuant to this Agreement or any of
the other Credit Documents in order to grant to Collateral Agent, for the
benefit of Secured Parties, a Lien on any real, personal or mixed property of
that Credit Party as security for the Obligations, including any Collateral
Documents delivered under Section 3.2(b).

“Commitment” means any Tranche A
Term Loan Commitment or Tranche B Term Loan Commitment.

“Communications” as defined in Section 9.9(a).

“Company” as defined in the
preamble hereto.

“Compliance Certificate” means a
Compliance Certificate substantially in the form of Exhibit C.

“Consolidated Capital Expenditures”
means, for any period, the aggregate of all expenditures of Company and its
Subsidiaries during such period determined on a consolidated basis that, in
accordance with GAAP, are or should be included in “purchase
of property and equipment (including the portion of liabilities under any
Capital Lease that is or should be capitalized in accordance with GAAP) or
which should otherwise be capitalized” or similar
items reflected in the consolidated statement of cash flows of Company and its
Subsidiaries.

 8
 

 

“Contractual Obligation” means,
as applied to any Person, any provision of any Security issued by that Person
or of any indenture, mortgage, deed of trust, contract, undertaking, agreement
or other instrument to which that Person is a party or by which it or any of
its properties is bound or to which it or any of its properties is subject.

“Contributing Guarantors” as
defined in Section 7.2.

“Counterpart Agreement” means a
Counterpart Agreement substantially in the form of Exhibit H delivered by
a Credit Party pursuant to Section 5.10.

“Credit Date” means the date of
a Credit Extension.

“Credit Document” means any of
this Agreement, the Notes, if any, the Collateral Documents, the Fee Letter,
and all other certificates, documents, instruments or agreements executed and
delivered by a Credit Party for the benefit of any Agent or any Lender in
connection herewith.

“Credit Extension” means the
making of a Loan.

“Credit Party” means each Person
(other than any Agent or any Lender, Lender Counterparty or any representative
thereof) from time to time party to a Credit Document.

“Default” means a condition or
event that, after notice or lapse of time or both, would constitute an Event of
Default.

“Default Excess” means, with
respect to any Defaulting Lender, the excess, if any, of such Defaulting Lender’s
Pro Rata Share of the aggregate outstanding principal amount of Loans of all
Lenders (calculated as if all Defaulting Lenders (other than such Defaulting
Lender) had funded all of their respective Defaulted Loans) over the aggregate
outstanding principal amount of all Loans of such Defaulting Lender.

“Default Period” means, with
respect to any Defaulting Lender, the period commencing on the date of the
applicable Funding Default and ending on the earliest of the following
dates:  (i) the date on which all
Commitments are cancelled or terminated and/or the Lender Obligations are
declared or become immediately due and payable, (ii) the date on which (a) the
Default Excess with respect to such Defaulting Lender shall have been reduced
to zero (whether by the funding by such Defaulting Lender of any Defaulted
Loans of such Defaulting Lender or by the non-pro rata application of any
voluntary or mandatory prepayments of the Loans in accordance with the terms of
Section 2.12 or Section 2.13 or by a combination thereof), and (b) such
Defaulting Lender shall have delivered to Company and Administrative Agent a 

 9
 

 

written reaffirmation of its intention to honor its
obligations hereunder with respect to its Commitments, and (iii) the date
on which Company, Administrative Agent and Requisite Lenders waive all Funding
Defaults of such Defaulting Lender in writing.

“Defaulted Loan” as defined in Section 2.21.

“Defaulting Lender” as defined
in Section 2.21.

“Default Rate” means any
interest payable pursuant to Section 2.9.

“Deposit Account” means a
demand, time, savings, passbook or like account with a bank, savings and loan
association, credit union or like organization, other than an account evidenced
by a negotiable certificate of deposit.

“Dollars” and the sign “$” mean
the lawful money of the United States of America.

“Domestic Subsidiary” means any
Subsidiary organized under the laws of the United States of America, any State
thereof or the District of Columbia.

“Eligible Assignee” means (a) any
Lender, any Affiliate of any Lender and any Related Fund (any two or more
Related Funds being treated as a single Eligible Assignee for all purposes
hereof), and (b) any commercial bank, insurance company, investment or
mutual fund or other entity that is an “accredited
investor” (as defined in Regulation D under the
Securities Act) and which extends credit or buys loans as one of its
businesses, and any other Person (other than a natural Person) approved by
Company (so long as no Default or Event of Default has occurred and is
continuing) and Administrative Agent.

“Employee Benefit Plan” means
any “employee benefit plan” as defined in Section 3(3) of ERISA which is or
was sponsored, maintained or contributed to by, or required to be contributed
by, Company, any of its Subsidiaries or any of their respective ERISA
Affiliates.

“Environmental Claim” means any
investigation, notice, notice of violation, claim, action, suit, proceeding,
demand, abatement order or other order or directive (conditional or otherwise),
by any Governmental Authority or any other Person, arising (i) pursuant to
or in connection with any actual or alleged violation of any Environmental Law;
(ii) in connection with any Hazardous Material or any actual or alleged
Hazardous Materials Activity; or (iii) in connection with any actual or
alleged damage, injury, threat or harm to health, safety, natural resources or
the environment.

 10
 

 

“Environmental Laws” means any
and all current or future foreign or domestic, federal or state (or any
subdivision of either of them), statutes, ordinances, orders, rules,
regulations, judgments, Governmental Authorizations, or any other requirements
of Governmental Authorities relating to (i) public health and safety,
protection of the environment or other environmental matters, including those
relating to any Hazardous Materials Activity; (ii) the generation, use,
storage, transportation or disposal of Hazardous Materials; or (iii) occupational
safety and health, industrial hygiene, land use or the protection of human,
plant or animal health or welfare.

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended from time to time, and any
successor thereto, in each case together with the regulations thereunder.

“ERISA Affiliate” means, as
applied to any Person, (i) any corporation which is a member of a
controlled group of corporations within the meaning of Section 414(b) of
the Internal Revenue Code of which that Person is a member; (ii) any trade
or business (whether or not incorporated) which is a member of a group of
trades or businesses under common control within the meaning of Section 414(c) of
the Internal Revenue Code of which that Person is a member; and (iii) any
member of an affiliated service group within the meaning of Section 414(m) or
(o) of the Internal Revenue Code of which that Person, any corporation
described in clause (i) above or any trade or business described in clause
(ii) above is a member. Any former ERISA Affiliate of Company or any of
its Subsidiaries shall continue to be considered an ERISA Affiliate of Company
or any such Subsidiary within the meaning of this definition with respect to
the period such entity was an ERISA Affiliate of Company or such Subsidiary and
with respect to liabilities arising after such period for which Company or such
Subsidiary could be liable under the Internal Revenue Code or ERISA.

“ERISA Event” means (i) a “reportable event” within the
meaning of Section 4043 of ERISA and the regulations issued thereunder
with respect to any Pension Plan (excluding those for which the provision for 30-day
notice to the PBGC has been waived by regulation); (ii) the failure to
meet the minimum funding standard of Section 412 of the Internal Revenue
Code with respect to any Pension Plan (whether or not waived in accordance with
Section 412(d) of the Internal Revenue Code) or the failure to make
by its due date a required installment under Section 412(m) of the
Internal Revenue Code with respect to any Pension Plan or the failure to make
any required contribution to a Multiemployer Plan; (iii) notice of intent
to terminate a Pension Plan in a distress termination described in Section 4041(c) of
ERISA; (iv) the withdrawal by Company, any of its Subsidiaries or any of
their respective ERISA Affiliates from any Pension Plan with two or more
non-related contributing sponsors or the termination of any such Pension Plan
resulting in liability to Company, any of its Subsidiaries or any of their
respective ERISA Affiliates pursuant to Section 4063 or 4064 of ERISA; (v) the
institution by the PBGC of proceedings to terminate any Pension Plan, or the
occurrence of any event or condition which might reasonably constitute grounds
under ERISA for the termination of, or the appointment of a trustee to
administer, any Pension Plan; (vi) the imposition of liability on Company,
any of its Subsidiaries or any of their respective ERISA Affiliates pursuant to
Section

 11
 

 

4062(e) or 4069 of ERISA or by reason of the
application of Section 4212(c) of ERISA; (vii) the withdrawal of
Company, any of its Subsidiaries or any of their respective ERISA Affiliates in
a complete or partial withdrawal (within the meaning of Sections 4203 and 4205
of ERISA) from any Multiemployer Plan if there is any liability or potential
liability therefor, or the receipt by Company, any of its Subsidiaries or any
of their respective ERISA Affiliates of notice from any Multiemployer Plan that
it is in reorganization or insolvency pursuant to Section 4241 or 4245 of
ERISA, or that it intends to terminate or has terminated under Section 4041A
or 4042 of ERISA; (viii) the occurrence of an act or omission which could
give rise to the imposition on Company, any of its Subsidiaries or any of their
respective ERISA Affiliates of fines, penalties, taxes or related charges under
Chapter 43 of the Internal Revenue Code or under Section 409, Section 502(c),
(i) or (l), or Section 4071 of ERISA in respect of any Employee
Benefit Plan; (ix) the assertion of a material claim (other than routine
claims for benefits) against any Employee Benefit Plan or the assets thereof,
or against Company, any of its Subsidiaries or any of their respective ERISA
Affiliates in connection with any Employee Benefit Plan; (x) receipt from
the Internal Revenue Service of notice of the failure of any Pension Plan (or
any other Employee Benefit Plan intended to be qualified under Section 401(a) of
the Internal Revenue Code) to qualify under Section 401(a) of the
Internal Revenue Code, or the failure of any trust forming part of any Pension
Plan to qualify for exemption from taxation under Section 501(a) of
the Internal Revenue Code; or (xi) the imposition of a Lien pursuant to Section 401(a)(29)
or 412(n) of the Internal Revenue Code or pursuant to ERISA with respect
to any Pension Plan.

“Event of Default” means each of
the conditions or events set forth in Section 8.1.

“Exchange Act” means the
Securities Exchange Act of 1934, as amended from time to time, and any
successor statute.

“Excluded Tax” means a “Tax on
the overall net income” of a Person as defined in the definition of “Tax”.

“Existing Indebtedness” means
the outstanding Senior Secured Notes and other obligations outstanding under
the Senior Secured Notes Documents.

“Existing Malara Facility” means
the Credit Agreement dated as of March 8, 2005, as amended through the
date hereof and to the extent permitted by the terms of this Agreement, between
Malara Broadcast Group Inc., as parent guarantor, Malara Broadcast Group of
Fort Wayne LLC, Malara Broadcast Group of Fort Wayne Licensee LLC, Malara
Broadcast Group of Duluth LLC and Malara Broadcast Group of Duluth Licensee
LLC, as borrowers, D.B. Zwirn Special Opportunities Fund, L.P., as
administrative agent, and the lenders party thereto.

“Extraordinary Receipts” means
any cash received by or paid to or for the account of Company or any of it
Subsidiaries not in the ordinary course of business, including 

 12
 

 

any foreign, United States, state or local tax
refunds, pension plan reversions, judgments, proceeds of settlements or other
consideration of any kind in connection with any cause of action, condemnation
awards (and payments in lieu thereof), indemnity payments and any purchase
price adjustment received in connection with any purchase agreement and
proceeds of insurance (excluding, however, any Net Insurance/Condemnation
Proceeds which are subject to section 2.13(b)).

“Facility” means any real
property (including all buildings, fixtures or other improvements located
thereon) now, hereafter or heretofore owned, leased, operated or used by
Company or any of its Subsidiaries or any of their respective predecessors or
Affiliates.

“Fair Share Contribution Amount”
as defined in Section 7.2.

“Fair Share” as defined in Section 7.2.

“Federal
Funds Effective Rate” means for any day, the rate per annum
(expressed, as a decimal, rounded upwards, if necessary, to the next higher
one-hundredth of one percent (1/100 of 1%)) equal to the weighted average of
the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on the Business Day next succeeding such
day; provided, (i) if such day is not a Business Day, the Federal
Funds Rate for such day shall be such rate on such transactions on the next
preceding Business Day as so published on the next succeeding Business Day, and
(ii) if no such rate is so published on such next succeeding Business Day,
the Federal Funds Rate for such day shall be the average of the quotations for
the day of such transactions received by Administrative Agent from three
federal funds brokers of recognized standing selected by it.

“Fee Letter” means the letter
agreement dated July 5, 2006 between Company and Administrative Agent.

“Financial Officer Certification”
means, with respect to the financial statements for which such certification is
required, the certification of the chief financial officer of Company that such
financial statements fairly present, in all material respects, the financial
condition of Company and its Subsidiaries as at the dates indicated and the
results of their operations and their cash flows for the periods indicated, in
each case in conformity with GAAP applied on a consistent basis, subject, in
the case of interim financial statements, to the absence of footnotes and
changes resulting from normal audit and year-end adjustments.

“Financial Plan” means, with
respect to any Fiscal Year, a consolidated plan and financial forecast for such
Fiscal Year and each Fiscal Year (or portion thereof) through the final
maturity date of the Loans, including (i) a forecasted consolidated and
consolidating balance

 

 13

 

 

sheet and forecasted consolidated and consolidating
statements of income and cash flows of Company and its Subsidiaries for each
such Fiscal Year and (ii) forecasted consolidated balance sheet and
forecasted statements of income and cash flows of Company and its Subsidiaries
for each month of each such Fiscal Year.

“First Priority” means, with
respect to any Lien purported to be created in any Collateral pursuant to any
Collateral Document, that such Lien is the only Lien to which such Collateral
is subject, other than any Permitted Lien.

“Fiscal Quarter” means a fiscal
quarter of any Fiscal Year.

“Fiscal Year” means the fiscal
year of Company and its Subsidiaries ending on December 31 of each
calendar year.

“Flood Hazard Property” means
any Real Estate Asset subject to a mortgage in favor of Collateral Agent, for
the benefit of the Secured Parties, and located in an area designated by the
Federal Emergency Management Agency as having special flood or mud slide
hazards.

“Foreign Subsidiary” means any
Subsidiary that is not a Domestic Subsidiary.

“Funding Default” as defined in Section 2.21.

“Funding Guarantor” as defined
in Section 7.2.

“Funding Notice” means a notice
substantially in the form of Exhibit A-1.

“GAAP” means, subject to the
limitations on the application thereof set forth in Section 1.2, United
States generally accepted accounting principles in effect as of the date of
determination thereof.

“Governmental Acts” means any
act or omission, whether rightful or wrongful, of any present or future de jure
or de facto government or Governmental Authority.

“Governmental Authority” means
any federal, state, municipal, national or other government, governmental
department, commission, board, bureau, court, agency or instrumentality or
political subdivision thereof or any entity or officer exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to any government or 

 14
 

 

any court, in each case whether associated with a
state of the United States, the United States, or a foreign entity or
government.

“Governmental Authorization”
means any permit, license, authorization, plan, directive, consent order or
consent decree of or from any Governmental Authority.

“Granting Lender” as defined in Section 10.7.

“Guarantee” means, with respect to any
Person, any obligation, contingent or otherwise, of such Person guaranteeing or
having the economic effect of guaranteeing any Indebtedness or other obligation
of any other Person in any manner, whether directly or indirectly, and including
any obligation of the guarantor, direct or indirect, that is (a) an
obligation of such Person the primary purpose or intent of which is to provide
assurance to an obligee that the obligation of the obligor thereof will be paid
or discharged, or any agreement relating thereto will be complied with, or the
holders thereof will be protected (in whole or in part) against loss in respect
thereof; or (b) a liability of such Person for an obligation of another
through any agreement (contingent or otherwise) (i) to purchase,
repurchase or otherwise acquire such obligation or any security therefor, or to
provide funds for the payment or discharge of such obligation (whether in the
form of loans, advances, stock purchases, capital contributions or otherwise)
or (ii) to maintain the solvency or any balance sheet item, level of
income or financial condition of another if, in the case of any agreement
described under subclauses (i) or (ii) of this clause (b), the
primary purpose or intent thereof is as described in clause (a) above.

“Guaranteed Obligations” as
defined in Section 7.1.

“Guarantor” means each
Subsidiary of Company.

“Guarantor Subsidiary” means
each Guarantor.

“Guaranty” means the guaranty of
each Guarantor set forth in Section 7.

“Hazardous Materials” means any
chemical, material or substance, exposure to which is prohibited, limited or
regulated by any Environmental Law or Governmental Authority or which may or
could pose a hazard to the health and safety of the owners, occupants or any
Persons in the vicinity of any Facility or to the indoor or outdoor
environment.

“Hazardous Materials Activity”
means any past, current, proposed or threatened activity, event or occurrence
involving any Hazardous Materials, including the use, manufacture, possession,
storage, holding, presence, existence, location, Release, threatened Release,
discharge, placement, generation, transportation, processing, construction,
treatment, 

 15
 

 

abatement, removal, remediation, disposal, disposition
or handling of any Hazardous Materials, and any corrective action or response
action with respect to any of the foregoing.

“Highest Lawful Rate” means the
maximum lawful interest rate, if any, that at any time or from time to time may
be contracted for, charged, or received under the laws applicable to any Lender
which are presently in effect or, to the extent allowed by law, under such
applicable laws which may hereafter be in effect and which allow a higher
maximum nonusurious interest rate than applicable laws now allow.

“Historical Financial Statements”
means as of the Closing Date, (i) the audited financial statements of
Company and its Subsidiaries, for the Fiscal Year ended December 31, 2005,
consisting of balance sheets and the related consolidated statements of income,
stockholders’ equity and cash flows for such Fiscal Year, and (ii) the
financial statements of Company and its Subsidiaries, for the Fiscal Quarter
ended March 31, 2006, consisting of balance sheets and the related
consolidated statements of income, stockholders’ equity and cash flows for such
Fiscal Quarter, in the case of clauses (i) and (ii), certified by the
chief financial officer of Company that they fairly present, in all material
respects, the financial condition of Company and its Subsidiaries as at the
dates indicated and the results of their operations and their cash flows for
the periods indicated, subject, if applicable, to changes resulting from audit
and normal year end adjustments.

“Increased Cost Lender” as
defined in Section 2.22.

“Indebtedness,” as applied to any Person, means, without duplication, (i) all
indebtedness for borrowed money; (ii) that portion of obligations with
respect to Capital Leases that is properly classified as a liability on a
balance sheet in conformity with GAAP; (iii) all obligations of such
Person evidenced by notes, bonds or similar instruments or upon which interest
payments are customarily paid and all obligations in respect of drafts accepted
representing extensions of credit whether or not representing obligations for
borrowed money; (iv) any obligation owed for all or any part of the
deferred purchase price of property or services (excluding trade payables
incurred in the ordinary course of business having a term of less than six (6) months
that are not overdue by more than seventy-five (75) days and excluding up to
$22,000,000 of trade payables related to the WB Stations) which purchase price
is (a) due more than six (6) months from the date of incurrence of
the obligation in respect thereof or (b) evidenced by a note or similar
written instrument; (v) all obligations created or arising under any
conditional sale or other title retention agreement with respect to property
acquired by such person, (vi) all indebtedness secured by any Lien on any
property or asset owned or held by that Person regardless of whether the
indebtedness secured thereby shall have been assumed by that Person or is
nonrecourse to the credit of that Person; (vii) the face amount of any
letter of credit or letter of guaranty issued, bankers’ acceptances facilities,
surety bond and similar credit transactions for the account of that Person or
as to which that Person is otherwise liable for reimbursement of drawings or
drafts; (viii) the direct or indirect guaranty, endorsement (otherwise
than for collection or deposit in the ordinary course of business), co-making,
discounting with recourse or sale with recourse by such Person of the
obligation of another; 

 16
 

 

(ix) any obligation of such Person the primary
purpose or intent of which is to provide assurance to an obligee that the
obligation of the obligor thereof will be paid or discharged, or any agreement
relating thereto will be complied with, or the holders thereof will be
protected (in whole or in part) against loss in respect thereof; (x) any
liability of such Person for an obligation of another through any agreement
(contingent or otherwise) (a) to purchase, repurchase or otherwise acquire
such obligation or any security therefor, or to provide funds for the payment
or discharge of such obligation (whether in the form of loans, advances, stock
purchases, capital contributions or otherwise) or (b) to maintain the
solvency or any balance sheet item, level of income or financial condition of
another if, in the case of any agreement described under subclauses (a) or
(b) of this clause (x), the primary purpose or intent thereof is as
described in clause (ix) above; (xi) all obligations of such
Person in respect of any exchange traded or over the counter derivative
transaction, including any interest rate or currency agreement or any other
rate management transaction, whether entered into for hedging or speculative
purposes; (xii) all obligations of such Person, contingent or otherwise,
to purchase, redeem, retire or otherwise acquire for value any Capital Stock of
such Person; (xii) all Attributable Debt of such Person; and (xiii) any
obligations of such Person or its Subsidiaries that would constitute “indebtedness”
for the purpose of any other agreement to which such Person is a party. The
Indebtedness of any Person shall include the Indebtedness of any partnership or
Joint Venture in which such Person is a general partner or joint venturer,
unless such Indebtedness is expressly non-recourse to such Person.

“Indenture Obligations” means “Obligations”
as such term is defined in the Senior Secured Notes Indenture.

“Indemnified Liabilities” means,
collectively, any and all liabilities, obligations, losses, damages (including
natural resource damages), penalties, claims (including Environmental Claims),
costs (including the costs of any investigation, study, sampling, testing,
abatement, cleanup, removal, remediation or other response action necessary to
remove, remediate, clean up or abate any Hazardous Materials Activity),
expenses and disbursements of any kind or nature whatsoever (including the
reasonable fees and disbursements of counsel for Indemnitees in connection with
any investigative, administrative or judicial proceeding commenced or
threatened by any Person, whether or not any such Indemnitee shall be designated
as a party or a potential party thereto, and any fees or expenses incurred by
Indemnitees in enforcing this indemnity), whether direct, indirect or
consequential and whether based on any federal, state or foreign laws,
statutes, rules or regulations (including securities and commercial laws,
statutes, rules or regulations and Environmental Laws), on common law or
equitable cause or on contract or otherwise, that may be imposed on, incurred
by, or asserted against any such Indemnitee, in any manner relating to or
arising out of (i) this Agreement or the other Credit Documents or the
transactions contemplated hereby or thereby (including the Lenders’ agreement
to make Credit Extensions or the use or intended use of the proceeds thereof,
or any enforcement of any of the Credit Documents (including any sale of,
collection from, or other realization upon any of the Collateral or the
enforcement of the Guaranty)); or (ii) any Environmental Claim against or
any Hazardous Materials Activity relating to or arising from, directly or
indirectly, any past or present activity, operation, land ownership, or
practice of Company or any of its Subsidiaries.

 17
 

 

“Indemnitee” as defined in Section 10.3(a).

“Indemnitee Agent Party” as
defined in Section 9.6.

“Indenture Supplement No. 2” means
Indenture Supplement No. 2 dated as of the date hereof to the Senior
Secured Notes Indenture in the form attached hereto as Exhibit I.

“Interest Election Request”
means a Interest Election Request substantially in the form of Exhibit A-2.

“Interest Make-Whole Amount”
means, for any prepayment of a Term Loan, an amount equal to (i) the
principal amount of such Term Loan being prepaid multiplied by (ii) 4.00%
multiplied by (iii) the number of days remaining to the scheduled
Term Loan Maturity Date divided by 183.

“Interest Payment Date” means
with respect to (i) any Base Rate Loan, (a) the last day of each
month, commencing on the first such date to occur after the Closing Date, and (b) the
final maturity date of such Loan; and (ii) any LIBOR Rate Loan, (a) the
last day of each month commencing on the first such date to occur after the
Closing Date, and (b) the last day of each Interest Period applicable to
such Loan.

“Interest Period” means, in
connection with a LIBOR Rate Loan, an interest period of one, two, or three
months, as selected by Company in the applicable Funding Notice or Interest
Election Request, (i) initially, commencing on the Credit Date or Interest
Period Election Date thereof, as the case may be; and (ii) thereafter,
commencing on the day on which the immediately preceding Interest Period
expires; provided, (a) if an Interest Period would otherwise expire
on a day that is not a Business Day, such Interest Period shall expire on the
next succeeding Business Day unless no further Business Day occurs in such
month, in which case such Interest Period shall expire on the immediately
preceding Business Day; (b) any Interest Period that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period)
shall, subject to clauses (c) of this definition, end on the last Business
Day of a calendar month; and (c) no Interest Period with respect to any
portion of any Class of Term Loans shall extend beyond such Class’s Term
Loan Maturity Date.

“Interest Rate Determination Date”
means, with respect to any Interest Period, the date that is two Business Days
prior to the first day of such Interest Period.

“Internal Control Event” means a
material weakness in, or fraud that involves management of Company, which fraud
has a material effect on Company’s internal controls over public reporting, in
each case as described in the Securities Laws.

 18
 

 

“Internal Revenue Code” means
the Internal Revenue Code of 1986, as amended to the date hereof and from time
to time hereafter, and any successor statute.

“Investment” means (i) any
direct or indirect purchase or other acquisition by Company or any of its
Subsidiaries of, or of a beneficial interest in, any of the Securities of any
other Person; (ii) any direct or indirect redemption, retirement, purchase
or other acquisition for value, by any Credit Party from any Person, of any
Capital Stock of such Person; (iii) any direct or indirect loan, advance
or capital contributions by Company or any of its Subsidiaries to any other
Person, including all indebtedness and accounts receivable from that other
Person that are not current assets or did not arise from sales to that other
Person in the ordinary course of business; and (iv) any direct or indirect
Guarantee of any obligations of any other Person other than endorsements for
collection or deposit in the ordinary course of business. The amount of any
Investment shall be the original cost of such Investment plus the cost
of all additions thereto, without any adjustments for increases or decreases in
value, or write-ups, write-downs or write-offs with respect to such Investment.

“Joint Venture” means a joint
venture, partnership or other similar arrangement, whether in corporate,
partnership or other legal form; provided, in no event shall any
corporate Subsidiary of any Person be considered to be a Joint Venture to which
such Person is a party.

“Landlord Collateral Access Agreement”
means a Landlord Waiver and Consent Agreement substantially in a form approved
by the Agents.

“Landlord Consent and Estoppel”
means, with respect to any Leasehold Property, a letter, certificate or other
instrument in writing from the lessor under the related lease, pursuant to
which, among other things, the landlord consents to the granting of a Mortgage
on such Leasehold Property by the Credit Party tenant, such Landlord Consent
and Estoppel to be in form and substance acceptable to Administrative Agent in
its reasonable discretion, but in any event sufficient for Collateral Agent to
obtain a Title Policy with respect to such Mortgage.

“Leasehold Property” means any
leasehold interest of any Credit Party as lessee under any lease of real
property, other than any such leasehold interest designated from time to time
by Administrative Agent in its sole discretion as not being required to be
included in the Collateral.

“Lender” means each financial
institution listed on the signature pages hereto as a Lender, and any
other Person that becomes a party hereto pursuant to an Assignment Agreement
other than any such Person that ceases to be a party hereto pursuant to an
Assignment Agreement.

 19
 

 

“Lender Obligations” means all
liabilities and obligations of every nature of each Credit Party and its Subsidiaries
from time to time owed to the Agents (including former Agents), the Lenders or
any of them under any Credit Document, whether for principal, interest
(including interest which, but for the filing of a petition in bankruptcy with
respect to such Credit Party, would have accrued on any Lender Obligation,
whether or not a claim is allowed against such Credit Party for such interest
in the related bankruptcy proceeding), Interest Make-Whole Amount, fees,
expenses, indemnification or otherwise and whether primary, secondary, direct,
indirect, contingent, fixed or otherwise (including obligations of
performance).

“Lender Secured Parties”  has the meaning assigned
thereto in the Security Agreement.

“LIBOR Rate Loan” means a Loan
bearing interest at a rate determined by reference to the Adjusted LIBOR Rate.

“Lien” means (i) any lien,
mortgage, pledge, assignment, security interest, charge or encumbrance of any
kind (including any agreement to give any of the foregoing, any conditional
sale or other title retention agreement, and any lease in the nature thereof)
and any option, trust or other preferential arrangement having the practical
effect of any of the foregoing, and (ii) in the case of Securities, any
purchase option, call or similar right of a third party with respect to such
Securities.

“Loan” means a Tranche A Term
Loan and a Tranche B Term Loan.

“Local Services Agreement” means
a local services arrangement, joint sales agreement, time brokerage agreement,
shared services agreement, management agreement or similar arrangement between
the Company and a wholly owned Subsidiary of the Company, on the one hand, and
an LSAE, on the other hand, pursuant to which the Company or a wholly owned
Subsidiary (subject only to preemption rights and other limitations required,
in the good faith judgment of the Company, to meet then applicable FCC approval
requirements), (i) obtains the right to sell substantially all of the
advertising inventory of a television station of which the LSAE is the
licensee, (ii) obtains the right to supply up to fifteen percent of such
station’s total weekly broadcast programming hours, or such greater amount as
may be permitted by the FCC, and sell advertising time during substantially all
of such programming on its television station or (iii) provides assistance
to such LSAE with respect to substantially all of the operations of such
station.

 “LSAE” means
a Person (i) whose assets principally consist of licenses and related
assets to operate a television station or stations in a market where the
Company or a Subsidiary of the Company also owns and operates a television
station, (ii) to which the Company provides assistance with respect to
substantially all of the operations of such television station or stations
pursuant to one or more Local Services Agreements, in return for periodic 

 20
 

 

payments (but in no event less frequently than
quarterly) equal to substantially all of such entity’s cash flow (net of
operating cash expenses plus cash principal and interest payments and other
finance charges and expenses), (iii) all of whose assets and certain of
whose liabilities (and all of the equity interests in such Person) are subject
to transferable call options held by the Company (the exercise of which is
subject only to compliance with applicable FCC rules and policies and
approvals required by law, such as FCC approval) with an exercise price not to
exceed the outstanding Indebtedness of such LSAE and (iv) none of whose
direct and indirect owners, or any other Person who receives any economic
benefit from the LSAE, is a Permitted Holder or an Affiliate of the Company or
of an Affiliate of any Permitted Holder (in each case, other than the Company
or a Subsidiary of the Company); provided that the limitations contained in
clauses (i), (ii) (with respect to the amount of such periodic payments)
and (iii) (with respect to the exercise price and the option for the
equity interests of such Persons) may be modified if and to the extent
determined by the Company in good faith as necessary to obtain FCC approval of
such arrangements with respect to such LSAE and its Local Services Agreements.

“Malara Entities” means each of
Malara Broadcast Group Inc., Malara Broadcast Group of Fort Wayne LLC, Malara
Broadcast Group of Fort Wayne Licensee LLC, Malara Broadcast Group of Duluth
LLC and Malara Broadcast Group of Duluth Licensee LLC.

“Margin Stock” as defined in
Regulation U of the Board of Governors of the Federal Reserve System as in
effect from time to time.

“Material Adverse Effect” means
a material adverse effect on and/or material adverse developments with respect
to (i) the business operations, properties, assets, condition (financial
or otherwise) or prospects of Company and its Subsidiaries taken as a whole; (ii) the
ability of any Credit Party to fully and timely perform its Lender Obligations;
(iii) the legality, validity, binding effect, or enforceability against a
Credit Party of a Credit Document to which it is a party; (iv) the
Collateral or the Collateral Agent’s Liens (on behalf of itself and the Secured
Parties) on the Collateral or the priority of such Liens; or (v) the
rights, remedies and benefits available to, or conferred upon, any Agent and
any Lender or any Secured Party under any Credit Document.

“Material Contract” means,
collectively, (i) any contract or other arrangement to which Company or
any of its Subsidiaries is a party (other than the Credit Documents or the
Senior Secured Notes Documents) for which breach, nonperformance, cancellation
or failure to renew could reasonably be expected to have a Material Adverse
Effect and (ii) any agreement or instrument of the Company or any of its
Subsidiaries evidencing or governing Indebtedness with an aggregate outstanding
principal amount in excess of $2,000,000.

“Material Real Estate Asset”
means (i) (a) any fee-owned Real Estate Asset having a fair market
value in excess of $500,000 as of any date of determination, and (b) all
Leasehold Properties other than those with respect to which the aggregate
payments under the term of the lease are less than $250,000 per annum, or (ii) any
Real Estate Asset that the 

 21
 

 

Requisite Lenders have determined is material to the
business, operations, properties, assets, condition (financial or otherwise) or
prospects of Company or any Subsidiary thereof.

“Moody’s” means Moody’s Investor
Services, Inc.

“Mortgage” means each Mortgage
substantially in the form of Exhibit H to the Senior Secured Notes
Indenture (as amended in accordance with Section 5.18), as it may be
further amended, supplemented or otherwise modified from time to time.

“Multiemployer Plan” means any
Employee Benefit Plan which is a “multiemployer
plan” as defined in Section 3(37) of
ERISA.

“NAIC” means The National
Association of Insurance Commissioners, and any successor thereto.

“Narrative Report” means, with
respect to the financial statements for which such narrative report is
required, a narrative report describing the operations of Company and its
Subsidiaries in the form prepared for presentation to senior management thereof
for the applicable month, Fiscal Quarter or Fiscal Year and for the period from
the beginning of the then current Fiscal Year to the end of such period to
which such financial statements relate with comparison to and variances from
the immediately preceding period and budget.

“Net Insurance/Condemnation Proceeds”
means an amount equal to:  (i) any
Cash payments or proceeds received by Company or any of its Subsidiaries (a) under
any casualty, business interruption or “key man” insurance policies in respect of any covered loss
thereunder, or (b) as a result of the taking of any assets of Company or
any of its Subsidiaries by any Person pursuant to the power of eminent domain,
condemnation or otherwise, or pursuant to a sale of any such assets to a
purchaser with such power under threat of such a taking, minus (ii) (a) any
actual and reasonable costs incurred by Company or any of its Subsidiaries in
connection with the adjustment or settlement of any claims of Company or such
Subsidiary in respect thereof, and (b) any bona fide direct costs incurred
in connection with any sale of such assets as referred to in clause (i)(b) of
this definition, including income taxes paid or payable as a result of any gain
recognized in connection therewith (after taking into account any available tax
credits or deductions and any tax-sharing arrangements).

“Non-U.S. Lender” as defined in Section 2.19(e).

“Note” means a Tranche A Term
Loan Note or a Tranche B Term Loan Note.

“Notice” means a Funding Notice
or a Interest Election Request.

 22
 

 

“Obligations” means,
collectively, the Lender Obligations and the Indenture Obligations.

“Obligee Guarantor” as defined
in Section 7.7.

“Organizational Documents” means
(i) with respect to any corporation, its certificate or articles of
incorporation or organization, as amended, and its by laws, as amended, (ii) with
respect to any limited partnership, its certificate of limited partnership, as
amended, and its partnership agreement, as amended, (iii) with respect to
any general partnership, its partnership agreement, as amended, and (iv) with
respect to any limited liability company, its articles of organization, as
amended, and its operating agreement, as amended. In the event any term or
condition of this Agreement or any other Credit Document requires any Organizational
Document to be certified by a secretary of state or similar governmental
official, the reference to any such “Organizational
Document” shall only be to a document of a type
customarily certified by such governmental official.

“Other Taxes” means any and all
present or future stamp, registration, recording, filing, transfer,
documentary, excise or property Taxes, charges or similar levies arising from
any payment made hereunder or from the execution, delivery or enforcement of,
or otherwise with respect to or in connection with, any Credit Document.

“Past Due Interest Payment” means
the interest payment due June 1, 2006, payable by the Company to the
holders of its Senior Secured Notes, together with any default interest due
thereon in accordance with the Senior Secured Notes Indenture, in an aggregate
Dollar amount equal to $19,944,203.91 as of July 5, 2006.

“Patriot Act” means the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept
and Obstruct Terrorism (USA Patriot Act of 2001).

“PBGC” means the Pension Benefit
Guaranty Corporation or any successor thereto.

“Pension Plan” means any
Employee Benefit Plan, other than a Multiemployer Plan, which is subject to Section 412
of the Internal Revenue Code or Section 302 of ERISA.

“Permitted Business Acquisition” means
the acquisition of a television station or stations either (x) directly by
the Company or a Subsidiary of the Company or (y) by an LSAE as long as
such assets are all subject to a Local Services Agreement; provided that any
such acquisition described in clause (x) or (y) results in there
being at least two television stations owned by the Company and its
Subsidiaries (including the LSAE) in a single market.

 23
 

 

“Permitted Holders” means (i) W.
Don Cornwell, (ii) the members of the immediate family of W. Don Cornwell,
(iii) any trust created for the benefit of W. Don Cornwell or his estate
or (iv) any Person that is controlled by W. Don Cornwell.

“Permitted Liens” means each of
the following Liens:

(i) Liens in favor of Collateral Agent for the benefit of Secured
Parties granted pursuant to any Credit Document or Collateral Document and the
Mortgages existing on the date hereof under the Senior Secured Notes Indenture
and the Mortgages in favor of the Lender Secured Parties;

(ii) Liens for taxes, assessments or governmental charges or
claims either (a) not delinquent or (b) contested in good faith by
appropriate proceedings and as to which the Company or any of its Subsidiaries
shall have set aside on its books such reserves as may be required pursuant to
GAAP;

(iii) statutory Liens of landlords and Liens of carriers,
warehousemen, mechanics, suppliers, materialmen, repairmen and other Liens
imposed by law incurred in the ordinary course of business for sums not yet
delinquent or being contested in good faith, if such  reserve or other appropriate provision, if
any, as shall be required by GAAP shall have been made in respect thereof;

(iv) Liens incurred or deposits made in the ordinary course of
business in connection with workers’ compensation, unemployment insurance and
other types of social security, including any Lien securing letters of credit
issued in the ordinary course of business consistent with past practice in
connection therewith, or to  secure the
performance of tenders, statutory obligations, surety and appeal bonds, bids,
leases, government contracts, performance and return-of-money bonds and other
similar obligations (exclusive of obligations for the payment of borrowed
money);

(v) judgment Liens not giving rise to an Event of Default so long
as such Lien is adequately bonded and any appropriate legal proceedings which
may have been duly initiated for the review of such judgment shall not have
been finally terminated or the period within which such proceedings may be
initiated shall not have expired;

(vi) easements, rights-of-way, zoning restrictions, minor defects
and irregularities in title and other similar charges or encumbrances in
respect of real property that do not, individually or in the aggregate, have a
material adverse effect on the value of the real property encumbered thereby
and do not interfere in any material respect with the ordinary conduct of the
business of the Company or any of its Subsidiaries;

 24
 

 

(vii) Liens representing any interest or title of a lessor under
any Capital Lease ; provided that such Liens do not extend to any property or
assets which is not leased property subject to such Capital Lease and
accessions and improvements thereto and proceeds thereof;

(viii) Liens upon specific items of inventory or other goods and
proceeds thereof of any Person securing such Person’s obligations in respect of
bankers’ acceptances issued or created for the account of such Person to
facilitate the purchase, shipment or storage of such inventory or other goods;

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

(x) Liens encumbering deposits made to secure ordinary course
business obligations arising from statutory, regulatory or contractual (other
than with respect to Indebtedness) requirements of the Company or any of its
Subsidiaries, including rights of offset and set-off;

(xi) leases or subleases granted to others not interfering in any
material respect with the business of the Company or any of the Company’s
Subsidiaries and any interest or title of a lessor under any lease permitted by
this Agreement;

(xii) Liens
existing on the date hereof and set forth on Schedule 6.2 hereto;

(xiii) Liens on any assets acquired in
connection with the Binghamton Acquisition for the benefit of holders of the
Senior Secured Notes; provided that such Liens are subject and subordinate to
the First Priority Lien of the Lenders in accordance with the Security
Agreement;

(xiv) Liens on any interest or title of a lessor under any real
property leased by the Company or any of the Company’s Subsidiaries; and

(xv) the Lien created pursuant to Section 12.9 of the
Indenture in connection with the initial deposit by the Company of $1.0 million
in the Trustee Reserve Fund.

“Person” means and includes
natural persons, corporations, limited partnerships, general partnerships,
limited liability companies, limited liability partnerships, joint stock
companies, Joint Ventures, associations, companies, trusts, banks, trust
companies, land trusts, business trusts or other organizations, whether or not
legal entities, and Governmental Authorities.

 25
 

 

“Platform” as defined in Section 9.9(b).

“Pledgor” as defined in the
Security Agreement.

“Prepayment Date” as defined in Section 2.14(c).

“Preferred Stock” means the Company’s
12.75% cumulative exchangeable preferred stock.

“Prime Rate” means the rate of
interest quoted in The Wall Street Journal,
Money Rates Section as the Prime Rate (currently defined as the base rate
on corporate loans posted by at least seventy five percent (75%) of the nation’s
thirty (30) largest banks), as in effect from time to time. The Prime Rate is a
reference rate and does not necessarily represent the lowest or best rate
actually charged to any customer. Any Agent or any other Lender may make
commercial loans or other loans at rates of interest at, above or below the
Prime Rate.

“Principal Office” means, for
Administrative Agent, such Person’s “Principal
Office” as set forth on Appendix B, or such
other office as such Person may from time to time designate in writing to
Company and each Lender.

“Projections” as defined in Section 4.8.

“Pro Rata Share” means (i) with
respect to all payments, computations and other matters relating to the Tranche
A Term Loan of any Lender, the percentage obtained by dividing (a) the
Tranche A Term Loan Exposure of that Lender, by (b) the aggregate Tranche
A Term Loan Exposure of all Lenders and (ii) with respect to all payments,
computations and other matters relating to the Tranche B Term Loan of any
Lender, the percentage obtained by dividing (a) the Tranche B Term Loan
Exposure of that Lender, by (b) the aggregate Tranche B Term Loan Exposure
of all Lenders. For all other purposes with respect to each Lender, “Pro Rata Share” means the percentage obtained by dividing (A) an
amount equal to the sum of the Tranche A Term Loan Exposure and the Tranche B
Term Loan Exposure of that Lender, by (B) an amount equal to the sum of
the aggregate Tranche A Term Loan Exposure and the aggregate Tranche B Term
Loan Exposure of all Lenders.

“Real Estate Asset” means, at
any time of determination, any Leasehold Property or fee-owned real property
then owned by any Credit Party in any real property.

“Record Document” means, with
respect to any Leasehold Property, (i) the lease evidencing such Leasehold
Property or a memorandum thereof, executed and acknowledged by the owner of the
affected real property, as lessor, or (ii) if such

 26
 

 

Leasehold Property was acquired or subleased from the
holder of a Recorded Leasehold Interest, the applicable assignment or sublease
document, executed and acknowledged by such holder, in each case in form sufficient
to give such constructive notice upon recordation and otherwise in form
reasonably satisfactory to the Agents.

“Recorded Leasehold Interest”
means a Leasehold Property with respect to which a Record Document has been
recorded in all places necessary or desirable, in Administrative Agent’s
reasonable judgment, to give constructive notice of such Leasehold Property to
third-party purchasers and encumbrancers of the affected real property.

“Register” as defined in Section 2.6(b).

“Regulation D” means Regulation
D of the Board of Governors of the Federal Reserve System, as in effect from
time to time.

“Reimbursement Date” as defined
in Section 2.3(d).

“Related Agreements” means,
collectively, Indenture Supplement No. 2 and the Senior Secured Notes
Indenture as amended thereby, the Binghamton Acquisition Agreement and the WB
Sale Agreements.

“Related Fund” means, with
respect to any Lender that is an investment fund, any other investment fund
that invests in commercial loans and that is managed or advised by the same
investment advisor as such Lender or by an Affiliate of such investment advisor.
With respect to Silver Point, Related Fund shall also include any swap, special
purpose vehicles purchasing or acquiring security interests in collateralized
loan obligations or any other vehicle through which Silver Point may leverage
its investments from time to time, in each case so long as at the time of such
transfer or assignment Silver Point or its Affiliates manage such swap or other
vehicle.

“Release” means any release,
spill, emission, leaking, pumping, pouring, injection, escaping, deposit,
disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous
Material into the indoor or outdoor environment (including the abandonment or
disposal of any barrels, containers or other closed receptacles containing any
Hazardous Material), including the movement of any Hazardous Material through
the air, soil, surface water or groundwater.

“Replacement Lender” as defined
in Section 2.22.

 27
 

 

“Requisite Class Lenders”
means, at any time of determination, but subject to the provisions of Section 2.21,
(i) for the Class of Lenders having Tranche A Term Loan Exposure,
Lenders holding more than fifty percent (50%) of the aggregate Tranche A Term
Loan Exposure of all Lenders and (ii) for the Class of Lenders having
Tranche B Term Loan Exposure, Lenders holding more than fifty percent (50%) of
the aggregate Tranche B Term Loan Exposure of all Lenders.

“Requisite Lenders” means one or
more Lenders having or holding Tranche A Term Loan Exposure and/or Tranche B
Term Loan Exposure representing more than fifty percent (50%) of the sum of (i) the
aggregate Tranche A Term Loan Exposure of all Lenders and (ii) the
aggregate Tranche B Term Loan Exposure of all Lenders.

“Restricted Junior Payment”
means (i) any dividend or other distribution, direct or indirect, on
account of any shares of any class of stock of Company now or hereafter
outstanding, except a dividend payable solely in shares of Qualified Capital
Stock of the Company to holders of such Capital Stock; (ii) any
redemption, retirement, sinking fund or similar payment, purchase or other
acquisition for value, direct or indirect, of any shares of any class of stock
of Company now or hereafter outstanding; (iii) any payment made to retire,
or to obtain the surrender of, any outstanding warrants, options or other
rights to acquire shares of any class of stock of Company now or hereafter
outstanding; and (iv) any payment or prepayment of principal of, premium,
if any, or interest on, or redemption, purchase, retirement, defeasance
(including in-substance or legal defeasance), sinking fund or similar payment
with respect to, any subordinated Indebtedness.

“S&P” means Standard &
Poor’s Ratings Group, a division of The McGraw Hill Companies, Inc.

“Secured Parties” means the “Senior
Secured Parties” as defined in the Security Agreement.

“Securities” means any stock,
shares, partnership interests, voting trust certificates, certificates of
interest or participation in any profit-sharing agreement or arrangement,
options, warrants, bonds, debentures, notes, or other evidences of
indebtedness, secured or unsecured, convertible, subordinated or otherwise, or
in general any instruments commonly known as “securities” or any certificates of interest, shares or participations
in temporary or interim certificates for the purchase or acquisition of, or any
right to subscribe to, purchase or acquire, any of the foregoing.

“Securities Act” means the
Securities Act of 1933, as amended from time to time, and any successor
statute.

 28
 

 

“Securities Laws” means the
Securities Act, the Exchange Act, Sarbanes-Oxley Act of 2002 and the applicable
accounting and auditing principles, rules, standards and practices promulgated,
approved or incorporated by the Securities and Exchange Commission or the
Public Company Accounting Oversight Board, as each of the foregoing may be
amended and in effect on any applicable date hereunder.

“Security Agreement” means the
Security Agreement dated as of December 22, 2003, by Granite Broadcasting
Corporation, the Guarantors party thereto and the Collateral Agent, as amended
by Amendment No. 1 thereto dated as of the date hereof, and as the same
may be further amended, modified or restated from time to time.

“Senior Secured Notes” means the
Company’s 9 3⁄4 % Senior Secured Notes due 2010.

“Senior Secured Notes Documents” means
the Senior Secured Notes Indenture.

“Senior Secured Notes Indenture” means
the Company’s 9 3⁄4 % Senior Secured Notes Indenture dated as of December 22,
2003 among the Company, as issuer, certain Subsidiaries of the Company, as
guarantors, and The Bank of New York, as trustee, as amended by Indenture
Supplement No. 1 and Indenture Supplement No. 2 and as the same may
be further amended,  restated or modified
from time to time.

“Silver Point” as defined in the
preamble hereto.

“SPC” as defined in Section 10.7.

“Special Acquisition” means an
acquisition by Company or a Malara Entity permitted by Section 6.8(f); provided
that the total acquisition consideration (including related fees and expenses
and assumed funded Indebtedness but excluding any other assumed liabilities) of
the acquired business is not in excess of nine times the increase in Broadcast
Cash Flow of the Company resulting from such acquisition, such increase in
Broadcast Cash Flow to be determined by the Company in good faith on a pro
forma basis for the most recent twelve month period for which unaudited
financial statements are available after giving effect to incremental revenue
or expense and cost reductions determined in good faith by the Company to be
reasonably achievable during the four Fiscal Quarter period succeeding such
acquisition, such calculation to be reasonably acceptable to Administrative
Agent; provided further that the aggregate of the total acquisition
consideration as described above for all Special Acquisitions shall not to
exceed $10,000,000

“Subject Transaction” as defined
in Section 6.7(i).

 29
 

 

“Subsidiary” means, with respect
to any Person, any corporation, partnership, limited liability company,
association, joint venture or other business entity of which more than fifty
percent (50%) of the total voting power of shares of stock or other ownership
interests entitled (without regard to the occurrence of any contingency) to vote
in the election of the Person or Persons (whether directors, managers, trustees
or other Persons performing similar functions) having the power to direct or
cause the direction of the management and policies thereof is at the time owned
or controlled, directly or indirectly, by that Person or one or more of the
other Subsidiaries of that Person or a combination thereof; provided, in
determining the percentage of ownership interests of any Person controlled by
another Person, no ownership interest in the nature of a “qualifying
share” of the former Person shall be deemed
to be outstanding.

“Tax” means any present or
future tax, levy, impost, duty, assessment, charge, fee, deduction or
withholding of any nature and whatever called, by whomsoever, on whomsoever and
wherever imposed, levied, collected, withheld or assessed; provided, “Tax on the overall net income”
of a Person shall be construed as a reference to a tax imposed by the
jurisdiction in which that Person is organized or in which that Person’s applicable
principal office (and/or, in the case of a Lender, its lending office) is
located or in which that Person (and/or, in the case of a Lender, its lending
office) is deemed to be doing business (other than a jurisdiction in which such
Person is treated as doing business as a result of its entering into any Credit
Document or its participation in the transactions governed thereby) on all or
part of the net income, profits or gains (whether worldwide, or only insofar as
such income, profits or gains are considered to arise in or to relate to a
particular jurisdiction, or otherwise) of that Person (and/or, in the case of a
Lender, its applicable lending office).

“Tax-Related Person” means by
Person (including a beneficial owner of an interest in a pass-through entity)
whose income is realized through or determined by reference to an Agent, a
Lender or Participant or any Tax Related Person of any of the foregoing.

“Term Loan” means a Tranche A
Term Loan or a Tranche B Term Loan.

“Term Loan Commitment” means the
Tranche A Term Loan Commitment or the Tranche B Term Loan Commitment of a
Lender, and “Term Loan Commitments” means such
commitments of all Lenders.

“Term Loan Commitment Termination Date”
means the earliest to occur of (i) the date of the termination of the Term
Loan Commitments pursuant to Section 8.1, and (ii) the earlier of the
date that the Binghamton Acquisition is consummated and July 31, 2006.

“Term Loan Maturity Date” means
the Tranche A Term Loan Maturity Date and the Tranche B Term Loan Maturity
Date.

 30
 

 

“Terminated Lender” as defined
in Section 2.22.

“Terrorism Laws”  means any of the following (a) Executive
Order 13224 issued by the President of the United States, (b) the
Terrorism Sanctions Regulations (Title 31 Part 595 of the U.S. Code of Federal
Regulations), (c) the Terrorism List Governments Sanctions Regulations
(Title 31 Part 596 of the U.S. Code of Federal Regulations), (d) the
Foreign Terrorist Organizations Sanctions Regulations (Title 31 Part 597
of the U.S. Code of Federal Regulations), (e) the Patriot Act (as it may
be subsequently codified), (f) all other present and future legal
requirements of any Governmental Authority addressing, relating to, or
attempting to eliminate, terrorist acts and acts of war and (g) any
regulations promulgated pursuant thereto or pursuant to any legal requirements
of any Governmental Authority governing terrorist acts or acts of war.

“Trading Day” means a day on
which the national securities exchange on which the Preferred Stock is then
listed is open for the transaction of business or, if the Preferred Stock or
such other security, as the case may be, is not listed or admitted to trading
on any national securities exchange, any Business Day.

“Tranche A Term Loan” means a
Tranche A Term Loan made by a Lender to Company pursuant to Section 2.1(a)(i).

“Tranche A Term Loan Commitment”
means the commitment of a Lender to make or otherwise fund a Tranche A Term
Loan and “Tranche A Term Loan Commitments” means
such commitments of all Lenders in the aggregate. The amount of each Lender’s
Tranche A Term Loan Commitment, if any, is set forth on Appendix A-1 or
in the applicable Assignment Agreement, subject to any adjustment or reduction
pursuant to the terms and conditions hereof. The aggregate amount of the Tranche
A Term Loan Commitments as of the Closing Date is $40,000,000.

“Tranche A Term Loan Exposure”
means, with respect to any Lender, as of any date of determination, the
outstanding principal amount of the Tranche A Term Loans of such Lender; provided,
at any time prior to the making of the Tranche A Term Loans, the Tranche A Term
Loan Exposure of any Lender shall be equal to such Lender’s Tranche A Term Loan
Commitment.

“Tranche A Term Loan Maturity Date”
means the earlier of (i) December 1, 2006, and (ii) the date
that all Tranche A Term Loans shall become due and payable in full hereunder,
whether by acceleration or otherwise.

“Tranche A Term Loan Note” means
a promissory note in the form of Exhibit B-1, as it may be amended,
supplemented or otherwise modified from time to time.

 31
 

 

“Tranche B Term Loan” means a
Tranche B Term Loan made by a Lender to Company pursuant to Section 2.1(a)(ii).

“Tranche B Term Loan Commitment”
means the commitment of a Lender to make or otherwise fund a Tranche B Term
Loan and  “Tranche B
Term Loan Commitments” means such commitments of all Lenders in the
aggregate. The amount of each Lender’s Tranche B Term Loan Commitment, if any,
is set forth on Appendix A-2 or in the applicable Assignment Agreement,
subject to any adjustment or reduction pursuant to the terms and conditions
hereof. The aggregate amount of the Tranche B Term Loan Commitments as of the
Closing Date is $30,000,000.

“Tranche B Term Loan Exposure”
means, with respect to any Lender, as of any date of determination, the
outstanding principal amount of the Tranche B Term Loans of such Lender;
provided, at any time prior to the making of the Tranche B Term Loans, the
Tranche B Term Loan Exposure of any Lender shall be equal to such Lender’s
Tranche B Term Loan Commitment.

“Tranche B Term Loan Maturity Date”
means the earlier of (i) December 1, 2006, and (ii) the date
that all Tranche B Term Loans shall become due and payable in full hereunder,
whether by acceleration or otherwise.

“Tranche B Term Loan Note” means
a promissory note in the form of Exhibit B-2, as it may be amended,
supplemented or otherwise modified from time to time.

“Transaction Costs” means the
fees, costs and expenses payable by Company or any of Company’s Subsidiaries on
or before the Closing Date in connection with the transactions contemplated by
the Credit Documents.

“Trigger Price” has the meaning ascribed
to such term in Section 11.1(b)(ii).

“Trustee Reserve Fund” means the
account designated by the Trustee pursuant to Section 12.9 of the
Indenture.

“Type of Loan” means a Base Rate
Loan or a LIBOR Rate Loan.

“UCC” means the Uniform
Commercial Code (or any similar or equivalent legislation) as in effect in any
applicable jurisdiction.

 32
 

 

“Unadjusted LIBOR Rate Component”
means that component of the interest costs to Company in respect of a LIBOR
Rate Loan that is based upon the rate obtained pursuant to clause (B)(i) of
the definition of Adjusted LIBOR Rate.

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

“WB Disposition” means the disposition of certain assets related to
the ownership and operation of a WB-affiliated broadcast television station
KBWB(TV), San Francisco, California and its auxiliary facilities and the
disposition of certain assets related to the ownership and operation of a
WB-affiliated broadcast television station WDWB(TV), Detroit, Michigan and its
auxiliary facilities, in each case, pursuant to the applicable WB Sale
Agreement.

“WB Proceeds” has the meaning
assigned thereto in Section 2.13(a).

“WB Sale Agreements” means
the Purchase and Sale Agreement dated as of May 1, 2006, entered into in
respect of the WB Disposition, by and among DS Audible San Francisco, LLC,
Granite Broadcasting Corporation, KBWB, Inc. and KBWB License, Inc.,
the Purchase and Sale Agreement dated as of May 1, 2006, entered into in
respect of the WB Disposition, by and among DS Audible Detroit, LLC, Granite
Broadcasting Corporation, WXON, Inc. and WXON License, Inc., the
Letter Agreement dated May 1, 2006 among DS Audible San Francisco, LLC, DS
Audible Detroit, LLC, Granite Broadcasting Corporation, WXON, Inc. and
WXON License, Inc., KBWB, Inc. and KBWB License, Inc., the form
of Closing Agreement to be executed at closing among DS Audible San Francisco,
LLC, DS Audible Detroit, LLC, Granite Broadcasting Corporation, WXON, Inc.
and WXON License, Inc., KBWB, Inc. and KBWB License, Inc., and
the form of Additional Escrow Agreement to be executed at closing among DS
Audible San Francisco, LLC, DS Audible Detroit, LLC, Granite Broadcasting
Corporation, WXON, Inc. and WXON License, Inc., KBWB, Inc. and
KBWB License, Inc., in each case as amended through the date hereof and as
may be further amended in a manner permitted by this Agreement.

“WB Stations” means KBWB(TV), San
Francisco, California and its auxiliary facilities, and WDWB(TV), Detroit,
Michigan and its auxiliary facilities.

1.2                               Accounting
Terms. Except as otherwise expressly provided herein, all accounting terms
not otherwise defined herein shall have the meanings assigned to them in
conformity with GAAP. Financial statements and other information required to be
delivered by Company to Lenders pursuant to Section 5.1(a), 5.1(b) and
5.1(c) shall be prepared in accordance with GAAP as in effect at the time
of such preparation (and delivered together with the reconciliation statements
provided for in Section 5.1(e), if applicable). Subject to the foregoing,
calculations in connection with the definitions, covenants and other provisions
hereof shall utilize accounting principles and policies in conformity with
those used to prepare the Historical Financial Statements.

 

 33

 

 

1.3                               Interpretation,
etc. Any of the terms defined herein may, unless the context otherwise
requires, be used in the singular or the plural, depending on the reference. References
herein to any Section, Appendix, Schedule or Exhibit shall be to a
Section, an Appendix, a Schedule or an Exhibit, as the case may be, hereof
unless otherwise specifically provided. The use herein of the word “include” or
“including,” when following any general statement, term or matter, shall not be
construed to limit such statement, term or matter to the specific items or
matters set forth immediately following such word or to similar items or
matters, whether or not no limiting language (such as “without limitation” or “but
not limited to” or words of similar import) is used with reference thereto, but
rather shall be deemed to refer to all other items or matters that fall within
the broadest possible scope of such general statement, term or matter.

SECTION 2.                           LOANS AND
LETTERS OF CREDIT

2.1                               Term
Loans.

(a)                         Loan
Commitments. Subject to the terms and conditions hereof,

(i)        each Lender severally agrees to make, at any time
prior to the Term Loan Commitment Termination Date, a Tranche A Term Loan to
Company in an amount not to exceed such Lender’s Tranche A Term Loan
Commitment; and

(ii)     each Lender severally agrees to make, on the Closing
Date and on the date that the Tranche A Term Loan is made,
a Tranche B Term Loan to Company in an aggregate amount not to exceed such
Lender’s Tranche B Term Loan Commitment.

Company may make only one borrowing under the Tranche A Term Loan
Commitment which shall be at any time prior to the Term Loan Commitment
Termination Date. Company may make a maximum of two borrowings under the
Tranche B Term Loan Commitment, which, in the case of the initial Tranche B
Term Loan borrowing, shall be on the Closing Date in an aggregate amount equal
to $27,500,000, and, in the case of the second Tranche B Term Loan borrowing,
shall be on the date that the Tranche A Term Loan is made. Any amount borrowed
under this Section 2.1(a) and subsequently repaid or prepaid may not
be reborrowed. Subject to Sections 2.11 and 2.12, all amounts owed hereunder
with respect to the Tranche A Term Loans and the Tranche B Term Loans shall be
paid in full no later than the Tranche A Term Loan Maturity Date and the
Tranche B Term Loan Maturity Date, respectively. Each Lender’s Term Loan
Commitment shall terminate immediately and without further action on the Term
Loan Commitment Termination Date after giving effect to the funding of such
Lender’s Term Loan Commitment, if any, on such date.

(b)                        Borrowing Mechanics for Term Loans.

(i)        Following the Closing Date, when Company desires that
Lenders make their respective Term

 34
 

 

Loans, Company shall deliver to Administrative Agent a fully
executed and delivered Funding Notice no later than 10:00 a.m. (New York
City time) at least three Business Days (or such shorter period as the
Administrative Agent may agree) in advance of the proposed Credit Date. Except
as otherwise provided herein, a Funding Notice for a Term Loan that is a LIBOR
Rate Loan shall be irrevocable when given, and Company shall be bound to make a
borrowing in accordance therewith. Promptly upon receipt by Administrative
Agent of any Funding Notice, Administrative Agent shall notify each Lender of
the proposed borrowing. Administrative Agent and Lenders may act without
liability upon the basis of written, telecopied or telephonic notice believed
by Administrative Agent in good faith to be from Company (or from any
Authorized Officer thereof designated in writing purportedly from Company to
Administrative Agent). Administrative Agent and each Lender shall be entitled
to rely conclusively on any Authorized Officer’s authority to request a Term
Loan on behalf of Company until Administrative Agent receives written notice to
the contrary. Administrative Agent and Lenders shall have no duty to verify the
authenticity of the signature appearing on any written Funding Notice.

(ii)     Each Lender shall make its Tranche A Term Loan and/or
Tranche B Term Loan, as the case may be, available to Administrative Agent not
later than 12:00 p.m. (New York City time) on the applicable Credit Date,
by wire transfer of same day funds in Dollars, to Administrative Agent’s
Account. Upon satisfaction or waiver of the conditions precedent specified
herein, Administrative Agent shall make the proceeds of the Term Loans
available to Company on the applicable Credit Date by causing an amount of same
day funds in Dollars equal to the proceeds of all such Loans received by
Administrative Agent from Lenders to be credited to the account of Company to
Administrative Agent’s Account or to such other account as may be designated in
writing to Administrative Agent by Company.

2.2                               [Reserved].

2.3                               [Reserved].

2.4                               Pro Rata Shares; Availability of
Funds.

(a)                      Pro Rata
Shares. All Loans shall be made, and all participations purchased, by
Lenders simultaneously and proportionately to their respective Pro Rata Shares,
it being understood that no Lender shall be responsible for any default by any
other Lender in such other Lender’s obligation to make a Loan requested
hereunder or purchase a participation required hereby nor shall any Term Loan
Commitment of any Lender be increased or decreased as a result of a default by
any other Lender in such other Lender’s obligation to make a Loan requested
hereunder or purchase a participation required hereby.

(b)                     Availability
of Funds. Unless Administrative Agent shall have been notified by any
Lender prior to the applicable Credit Date that such Lender does not intend to
make available to Administrative Agent the amount of such Lender’s Loan
requested on such Credit Date, Administrative Agent may assume that such Lender
has made such amount available to Administrative Agent on such Credit Date and
Administrative Agent may, in its sole 

 35
 

 

discretion, but shall not
be obligated to, make available to Company a corresponding amount on such
Credit Date. If such corresponding amount is not in fact made available to
Administrative Agent by such Lender, Administrative Agent shall be entitled to
recover such corresponding amount on demand from such Lender together with
interest thereon, for each day from such Credit Date until the date such amount
is paid to Administrative Agent, at the customary rate set by Administrative
Agent for the correction of errors among banks for three (3) Business Days
and thereafter at the Base Rate. If such Lender does not pay such corresponding
amount forthwith upon Administrative Agent’s demand therefor, Administrative
Agent shall promptly notify Company and Company shall immediately pay such
corresponding amount to Administrative Agent together with interest thereon,
for each day from such Credit Date until the date such amount is paid to
Administrative Agent, at the rate payable hereunder for Base Rate Loans for
such Class of Loans. Nothing in this Section 2.4(b) shall be
deemed to relieve any Lender from its obligation to fulfill its Term Loan
Commitments hereunder or to prejudice any rights that Company may have against
any Lender as a result of any default by such Lender hereunder.

2.5                               Use
of Proceeds. The proceeds of the initial Tranche B Term Loans shall be
applied by Company solely (i) to make the Past Due Interest Payment, (ii) to
pay Transaction Costs, (iii) to pay down past-due accounts payable related
to the WB Stations in an amount
equal to $5,000,000 (or, if less, in the amount of the initial Tranche B Term
Loan proceeds remaining after the payments referred to in the foregoing clauses
(i) and (ii)) and pending such application to be held in the Company’s
central Deposit Account, and (iv) remaining proceeds for general corporate
purposes of Company. The proceeds of the Tranche A Term Loans and the remaining
portion of the Tranche B Term Loan shall be used solely to fund the Binghamton
Acquisition. No portion of the proceeds of any Credit Extension shall be used
in any manner that causes or might cause such Credit Extension or the
application of such proceeds to violate Regulation T, Regulation U or
Regulation X of the Board of Governors of the Federal Reserve System or any
other regulation thereof or to violate the Exchange Act.

2.6                               Evidence of Debt; Register; Lenders’
Books and Records; Notes.

(a)                      Lenders’
Evidence of Debt. Each Lender shall maintain on its internal records an
account or accounts evidencing the Lender Obligations of Company to such
Lender, including the amounts of the Loans made by it and each repayment and
prepayment in respect thereof. Any such recordation shall be conclusive and
binding on Company, absent manifest error; provided, that the failure to make
any such recordation, or any error in such recordation, shall not affect
Company’s Lender Obligations in respect of any applicable Loans; and provided
further, in the event of any inconsistency between the Register and any Lender’s
records, the recordations in the Register shall govern.

(b)                     Register.
Administrative Agent shall maintain at its Principal Office a register for the
recordation of the names and addresses of Lenders and Loans of each Lender from
time to time (the “Register”). The
Register shall be available for inspection by Company or any Lender at any
reasonable time and from time to time upon reasonable prior notice. Administrative
Agent shall record in the Register the Loans, and each repayment or prepayment
in respect of the principal amount of the Loans, and any such recordation shall
be conclusive and binding on Company and each Lender, absent manifest error; provided,
failure to 

 36
 

 

make any such recordation, or any error in such
recordation, shall not affect the Company’s Lender Obligations in respect of
any Loan. Company hereby designates the entity serving as Administrative Agent
to serve as Company’s agent solely for purposes of maintaining the Register as
provided in this Section 2.6, and Company hereby agrees that, to the
extent such entity serves in such capacity, the entity serving as
Administrative Agent and its officers, directors, employees, agents and
affiliates shall constitute “Indemnitees.”

(c)                      Notes.
If so requested by any Lender by written notice to Company (with a copy to
Administrative Agent) at least two (2) Business Days prior to the Closing
Date, or at any time thereafter, Company shall execute and deliver to such
Lender (and/or, if applicable and if so specified in such notice, to any Person
who is an assignee of such Lender pursuant to Section 10.6) on the Closing
Date (or, if such notice is delivered after the Closing Date, promptly after
Company’s receipt of such notice) a Note or Notes to evidence such Lender’s
Tranche A Term Loan or Tranche B Term Loan, as the case may be.

2.7                               Interest on Loans.

(a)                      Except as
otherwise set forth herein, each Loan shall be a LIBOR Rate Loan and shall bear
interest on the unpaid principal amount thereof from the date made through repayment
(whether by acceleration or otherwise) thereof at the Adjusted LIBOR Rate plus
the Applicable Margin; provided that the initial Tranche B Term Loan shall
initially be a Base Rate Loan from the Closing Date to the date that is three (3) Business
Days after the Closing Date, and on such third Business Day, the initial
Tranche B Term Loan shall be automatically converted to a LIBOR Rate Loan with
an initial Interest Period of 3 months.  Except as otherwise provided herein, each Base
Rate Loan shall bear interest on the unpaid principal amount thereof at the
Base Rate plus the Applicable Margin.

(b)                     The Interest
Period shall be selected by Company and notified to Administrative Agent and
Lenders pursuant to the applicable Funding Notice or Interest Election Request,
as the case may be.

(c)                      There shall
be no more than four (4) Interest Periods outstanding at any time. In the
event Company fails to specify an Interest Period in the applicable Funding
Notice or Interest Election Request, Company shall be deemed to have selected
an Interest Period of one month. As soon as practicable after 10:00 a.m. (New
York City time) on each Interest Rate Determination Date, Administrative Agent
shall determine (which determination shall, absent manifest error, be final,
conclusive and binding upon all parties) the interest rate that shall apply to
the LIBOR Rate Loans for which an interest rate is then being determined for
the applicable Interest Period and shall promptly give notice thereof (in
writing or by telephone confirmed in writing) to Company and each Lender.

(d)                     Interest
payable on LIBOR Rate Loans shall be computed on the basis of a 360 day year
for the actual number of days elapsed in the period during which it accrues. Interest
payable on Base Rate Loans 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. In computing interest on any Loan, the date of the
making of such Loan shall be included, and the date of payment of such Loan or
the expiration date of an Interest Period 

 37
 

 

applicable
to such Loan shall be excluded; provided, if a Loan is repaid on the
same day on which it is made, one day’s interest shall be paid on that Loan.

(e)                      Except as
otherwise set forth herein, interest on each Loan shall be payable in arrears
on and to (i) each Interest Payment Date applicable to that Loan; (ii) upon
any prepayment of that Loan, whether voluntary or mandatory, to the extent
accrued on the amount being prepaid; and (iii) at maturity, including
final maturity.

2.8                               Interest Election Requests.

The initial Tranche B
Term Loans shall have the Interest Period specified in Section 2.7(a) above.
The initial Tranche A Term Loans shall have the Interest Period specified in
the Funding Notice applicable thereto. Thereafter, the Company may elect the
Interest Period therefor, as provided in this Section. Each telephonic and
written Interest Election Request shall be irrevocable and be delivered to the
Administrative Agent no later than three (3) Business Days prior to the
end of the preceding Interest Period and shall specify the following
information in compliance with Section 2.02:

(i) the Loans to which such Interest Election
Request applies;

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

(iii) the Interest Period therefor after giving
effect to such election, which shall be a period contemplated by the definition
of the term “Interest Period” and permitted under Section 2.7(c).

2.9                               Default
Interest. Upon the occurrence and during the
continuance of an Event of Default, the principal amount of all Loans outstanding
and, to the extent permitted by applicable law, any interest payments on the
Loans or any fees or other amounts owed hereunder, shall thereafter bear
interest (including post petition interest in any proceeding under the
Bankruptcy Code or other applicable bankruptcy laws) payable on demand at a
rate that is two percent (2%) per annum in excess of the interest rate
otherwise payable hereunder with respect to the applicable Loans (or, in the
case of any such fees and other amounts, at a rate which is two percent (2%)
per annum in excess of the interest rate otherwise payable hereunder for Base
Rate Loans); provided, in the case of LIBOR Rate Loans, upon the expiration of
the Interest Period in effect at the time any such increase in interest rate is
effective such LIBOR Rate Loans shall thereupon become Base Rate Loans and
shall thereafter bear interest payable upon demand at a rate which is two
percent (2%) per annum in excess of the interest rate otherwise payable
hereunder for Base Rate Loans. Payment or acceptance of the increased rates of
interest provided for in this Section 2.9 is not a permitted alternative
to timely payment and shall not constitute a waiver of any Event of Default or
otherwise prejudice or limit any rights or remedies of Administrative Agent or
any Lender.

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2.10                        Fees.

Company agrees to pay to
Agents and the Lenders all fees specified in the Fee Letter in the amounts and
at the times specified therein and to Agents such
other fees in the amounts and at the times separately agreed upon.

2.11                        Repayment of Loans.

Company hereby
unconditionally promises to pay to the Administrative Agent for account of the
Lenders the outstanding principal amount of the Loans on the Term Loan Maturity
Date.

2.12                        Voluntary Prepayments.

(a)                      Voluntary
Prepayments.

(i)        At any time and from time to time the Company may
prepay the Tranche A Term Loans on any Business Day in whole or in part
(together with any amounts due pursuant to Section 2.17(c)) in an
aggregate minimum amount of $5,000,000 and integral multiples of $1,000,000 in
excess of that amount. At any time the Company may prepay the Tranche B Term
Loans on any Business Day in whole but not in part (together with any amounts
due pursuant to Section 2.17(c)); provided, that no voluntary
prepayment of the Tranche B Term Loan may be made until the aggregate
outstanding principal amount of the Tranche A Term Loan has been paid in full.

(ii)     All prepayments of Tranche A Term Loans shall be made
upon not less than three (3) Business Days’ prior written or telephonic
notice given to Administrative Agent by 12:00 p.m. (New York City time) on
the date required.  The prepayment of the
Tranche B Term Loans shall be made upon not less than forty-five (45) days’
prior written or telephonic notice given to Administrative Agent by 12:00 p.m.
(New York City time) on the date required. All notices of prepayment shall be
irrevocable, and if given by telephone shall be promptly confirmed in writing
to Administrative Agent (and Administrative Agent will promptly transmit such
telephonic or original notice by telefacsimile or telephone to each Lender). Upon
the giving of any such notice, the principal amount of the Term Loans specified
in such notice shall become due and payable on the prepayment date specified
therein. Any such voluntary prepayment shall be applied as specified in Section 2.14.

(b)                     Interest
Make-Whole. If Company prepays, for any reason (including any mandatory
prepayment pursuant to Section 2.13), all or any part of the principal
balance of any Term Loan on or prior to the Term Loan Maturity Date, Company
shall also pay to Administrative Agent, for the benefit of all Lenders entitled
to a portion of such prepayment the Interest Make-Whole Amount.

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2.13                        Mandatory Prepayments.

(a)                      Proceeds
of WB Disposition. If at the time of the WB Disposition (or any other sale
of a WB Station permitted hereunder) the Tranche A Term Loan is outstanding,
the Credit Parties shall concurrently prepay the Tranche A Term Loan in full
using the net proceeds received by Company or any of its Subsidiaries from,
arising out of, in connection with or relating to, such WB Disposition (or such
other sale of a WB Station) (collectively, “WB Proceeds”)
and shall apply the remaining WB Proceeds in accordance with this Agreement and
Section 4.10 of the Senior Secured Notes Indenture. If at the time of the
WB Disposition no Tranche A Term Loan is outstanding, the Credit Parties may
use $5,000,000 of WB Proceeds for any purpose permitted by the Credit Documents
(other than a prepayment of the Loans); provided that such amount may be
increased to up to $6,000,000 by the amount of funds that have been deposited
by the Company in the Trustee Reserve Fund pursuant to Section 12.9 of the
Indenture and (i) may use the WB Proceeds in excess of $5,000,000 to
consummate the Binghamton Acquisition or any Special Acquisition in accordance
with the Credit Documents and the Senior Secured Notes Indenture and (ii) apply
all remaining WB Proceeds after any such acquisitions in accordance with this
Agreement and Section 4.10 of the Senior Secured Notes Indenture.

(b)                     Insurance/Condemnation
Proceeds. To the maximum extent permitted by the Collateral Documents and
the Senior Secured Notes Indenture, no later than the first Business Day
following the date of receipt by Company or any of its Subsidiaries, or
Administrative Agent as loss payee, of any Net Insurance/Condemnation Proceeds,
Company shall prepay the Tranche A Term Loans in an aggregate amount equal to
such Net Insurance/Condemnation Proceeds; provided, (i) so long as
no Default or Event of Default shall have occurred and be continuing, and (ii) to
the extent that aggregate Net Insurance/Condemnation Proceeds from the Closing
Date through the applicable date of determination do not exceed $250,000,
Company shall have the option, directly or through one or more of its
Subsidiaries to invest such Net Insurance/Condemnation Proceeds within one
hundred eighty (180) days of receipt thereof in long term productive assets of
the general type used in the business of Company and its Subsidiaries, which
investment may include the repair, restoration or replacement of the applicable
assets thereof.

(c)                      Issuance
of Capital Stock. To the maximum extent permitted by the Collateral
Documents and the Senior Secured Notes Indenture, Company shall, on the date of
receipt by Company of any cash proceeds from a capital contribution to, or the
issuance of any Capital Stock of, Company or any of its Subsidiaries, prepay
the Tranche A Term Loans in an aggregate amount equal to one hundred percent
(100%) of such proceeds, net of underwriting discounts and commissions and
other reasonable costs and expenses associated therewith, including reasonable
legal fees and expenses; provided that any Lender, at its option, may
elect not to receive its share of any such payment pursuant to this clause (c) and
such amounts shall be otherwise available to the Company in accordance with the
terms hereof.

(d)                     [Reserved].

(e)                      Extraordinary
Receipts. To the maximum extent permitted by the Collateral Documents and
the Senior Secured Notes Indenture, no later than the first Business 

 40
 

 

Day following the date of receipt by Company or any of
its Subsidiaries of any Extraordinary Receipts, Company shall prepay the
Tranche A Term Loans in an aggregate amount equal to such Extraordinary
Receipts.

(f)                        Prepayment
Certificate. Concurrently with any prepayment of the Loans pursuant to
Sections 2.13(a)-(e), Company shall deliver to Administrative Agent a
certificate of an Authorized Officer demonstrating the calculation of the
amount of the applicable net proceeds, or other applicable proceeds giving rise
to the prepayment, as the case may be. In the event that Company shall
subsequently determine that the actual amount received exceeded the amount set
forth in such certificate, Company shall promptly make an additional prepayment
of the Loans in an amount equal to such excess, and Company shall concurrently
therewith deliver to Administrative Agent a certificate of an Authorized
Officer demonstrating the derivation of such excess.

2.14                        Application of Prepayments.

(a)                      Application
of Voluntary Prepayments of Loans. Any voluntary prepayment pursuant to Section 2.12
shall be applied to repay outstanding Tranche A Term Loans until repaid in
full, and thereafter, applied to repay outstanding Tranche B Term Loans until
repaid in full.

(b)                     Application
of Mandatory Prepayments. Any mandatory prepayment of the Tranche A Term
Loans pursuant to Section 2.13 shall be applied as follows:

first, to the payment of all
expenses and fees to the full extent thereof;

second, to the payment of any
accrued interest at the Default Rate, if any;

third, to the payment of any
Interest Make-Whole Amount;

fourth, to the payment of any
accrued interest (other than Default Rate interest);

fifth, to prepay outstanding
Tranche A Term Loans until repaid in full; and

sixth, to permanently reduce the
Term Loan Commitments to the full extent thereof.

2.15                        General Provisions Regarding
Payments.

(a)                      All payments
by Company of principal, interest, fees and other Lender Obligations shall be
made in Dollars in same day funds, without, recoupment, setoff, counterclaim or
other defense free of any restriction or condition, and delivered to
Administrative Agent not later than 12:00 p.m. (New York City time) on the
date due to Administrative Agent’s Account for the account of Lenders; funds
received by Administrative Agent after that time on such due date shall be
deemed to have been paid by Company on the next Business Day.

 41
 

 

(b)                     All payments
in respect of the principal amount of any Loan shall be accompanied by payment
of accrued interest on the principal amount being repaid or prepaid.

(c)                      Administrative
Agent shall promptly distribute to each Lender at such address as such Lender
shall indicate in writing, such Lender’s applicable Pro Rata Share of all
payments and prepayments of principal and interest due hereunder, together with
all other amounts due thereto, including all fees payable with respect thereto,
to the extent received by Administrative Agent.

(d)                     Subject to
the provisos set forth in the definition of “Interest
Period,” whenever any payment to be made
hereunder shall be stated to be due on a day that is not a Business Day, such
payment shall be made on the next succeeding Business Day and such extension of
time shall be included in the computation of the payment of interest hereunder
or of the commitment fees hereunder.

(e)                      Administrative
Agent shall deem any payment by or on behalf of Company hereunder that is not
made in same day funds prior to 12:00 p.m. (New York City time) to be a
non-conforming payment. Any such payment shall not be deemed to have been
received by Administrative Agent until the later of (i) the time such
funds become available funds, and (ii) the applicable next Business Day. Interest
shall continue to accrue on any principal as to which a non-conforming payment
is made until such funds become available funds (but in no event less than the
period from the date of such payment to the next succeeding applicable Business
Day) at the Default Rate determined pursuant to Section 2.9 from the date
such amount was due and payable until the date such amount is paid in full.

(f)                        If an
Event of Default shall have occurred and not otherwise been waived, and the
maturity of the Lender Obligations shall have been accelerated pursuant to Section 8.1, all payments or proceeds received by Agents hereunder in
respect of any of the Lender Obligations shall be applied in accordance with Section 2.14
hereof.

2.16                        Ratable
Sharing. Lenders hereby agree among themselves that, except as otherwise
provided in the Collateral Documents with respect to amounts realized from the
exercise of rights with respect to Liens on the Collateral, if any of them
shall, whether by voluntary payment (other than a voluntary prepayment of Loans
made and applied in accordance with the terms hereof), through the exercise of
any right of set off or banker’s lien, by counterclaim or cross action or by
the enforcement of any right under the Credit Documents or otherwise, or as
adequate protection of a deposit treated as cash collateral under the
Bankruptcy Code, receive payment or reduction of a proportion of the aggregate
amount of principal, interest, fees and other amounts then due and owing to
such Lender hereunder or under the other Credit Documents (collectively, the “Aggregate Amounts Due” to such Lender) which is greater than
the proportion received by any other Lender in respect of the Aggregate Amounts
Due to such other Lender, then the Lender receiving such proportionately
greater payment shall (a) notify Administrative Agent and each other
Lender of the receipt of such payment and (b) apply a portion of such
payment to purchase participations (which it shall be deemed to have purchased
from each seller of a participation simultaneously upon the receipt by such
seller of its portion of such payment) in the Aggregate Amounts Due to the
other Lenders so that all such recoveries of 

 42
 

 

Aggregate Amounts Due shall be shared by all Lenders
in proportion to the Aggregate Amounts Due to them; provided, if all or part of
such proportionately greater payment received by such purchasing Lender is
thereafter recovered from such Lender upon the bankruptcy or reorganization of
Company or otherwise, those purchases to that extent shall be rescinded and the
purchase prices paid for such participations shall be returned to such
purchasing Lender ratably to the extent of such recovery, but without interest.
Company expressly consents to the foregoing arrangement and agrees that any
holder of a participation so purchased may exercise any and all rights of
banker’s lien, set off or counterclaim with respect to any and all monies owing
by Company to that holder with respect thereto as fully as if that holder were
owed the amount of the participation held by that holder.

2.17                        Making or Maintaining LIBOR Rate
Loans.

(a)                      Inability
to Determine Applicable Interest Rate. In the event that Administrative
Agent shall have reasonably determined (which determination absent manifest
error shall be final and conclusive and binding upon all parties hereto), on
any Interest Rate Determination Date with respect to any LIBOR Rate Loans, that
by reason of circumstances affecting the London interbank market adequate and
fair means do not exist for ascertaining the interest rate applicable to such
LIBOR Rate Loans on the basis provided for in the definition of Adjusted LIBOR
Rate, Administrative Agent shall on such date give notice (by telefacsimile or
by telephone confirmed in writing) to Company and each Lender of such determination,
whereupon (i) no Loans may be made as LIBOR Rate Loans until such time as
Administrative Agent notifies Company and Lenders that the circumstances giving
rise to such notice no longer exist, and (ii) any Funding Notice or
Interest Election Request given by Company with respect to the Loans in respect
of which such determination was made shall be deemed to be rescinded by
Company.

(b)                     Illegality
or Impracticability of LIBOR Rate Loans. In the event that on any date any
Lender shall have reasonably determined (which determination absent manifest
error shall be final and conclusive and binding upon all parties hereto but
shall be made only after consultation with Company and Administrative Agent)
that the making, maintaining or continuation of its LIBOR Rate Loans (i) has
become unlawful as a result of compliance by such Lender in good faith with any
law, treaty, governmental rule, regulation, guideline or order (or would
conflict with any such treaty, governmental rule, regulation, guideline or
order not having the force of law even though the failure to comply therewith
would not be unlawful), or (ii) has become impracticable, as a result of
contingencies occurring after the date hereof which materially and adversely
affect the London interbank market or the position of such Lender in that
market, then, and in any such event, such Lender shall be an “Affected Lender” and it shall on that day give notice (by
telefacsimile or by telephone confirmed in writing) to Company and
Administrative Agent of such determination (which notice Administrative Agent
shall promptly transmit to each other Lender). Thereafter (1) the
obligation of the Affected Lender to make Loans as LIBOR Rate Loans shall be
suspended until such notice shall be withdrawn by the Affected Lender, (2) to
the extent such determination by the Affected Lender relates to a LIBOR Rate
Loan then being requested by Company pursuant to a Funding Notice or a Interest
Election Request, the Affected Lender shall make or convert such Loan to a Base
Rate Loan, (3) the Affected Lender’s obligation to maintain its
outstanding LIBOR Rate Loans (the “Affected Loans”)
shall be terminated at the earlier to occur of the expiration of the Interest
Period then in 

 43
 

 

effect with respect to the Affected Loans or when required
by law, and (4) the Affected Loans shall automatically convert into Base
Rate Loans on the date of such termination. Company shall pay accrued interest
on the amount so converted and all amounts due under Section 2.17(c) in
accordance with the terms thereof due to such conversion. Notwithstanding the
foregoing, to the extent a determination by an Affected Lender as described
above relates to a LIBOR Rate Loan then being requested by Company pursuant to
a Funding Notice or a Interest Election Request, Company shall have the option,
subject to the provisions of Section 2.17(c), to rescind such Funding
Notice or Interest Election Request as to all Lenders by giving notice (by
telefacsimile or by telephone confirmed in writing) to Administrative Agent of
such rescission on the date on which the Affected Lender gives notice of its
determination as described above (which notice of rescission Administrative
Agent shall promptly transmit to each other Lender). Except as provided in the
immediately preceding sentence, nothing in this Section 2.17(b) shall
affect the obligation of any Lender other than an Affected Lender to make or
maintain Loans as LIBOR Rate Loans in accordance with the terms hereof.

(c)                      Compensation
for Breakage or Non-Commencement of Interest Periods. Company shall
compensate each Lender, upon written request by such Lender (which request
shall set forth the basis for requesting such amounts), for all reasonable
losses, expenses and liabilities (including any interest paid or calculated to
be due and payable by such Lender to Lenders of funds borrowed by it to make or
carry its LIBOR Rate Loans and any loss, expense or liability sustained by such
Lender in connection with the liquidation or re employment of such funds but
excluding loss of anticipated profits) which such Lender actually sustains: (i) if
for any reason (other than a default by such Lender) a borrowing of any Loan
(or commencement of any Interest Period) does not occur on a date specified
therefor in a Funding Notice or Interest Election Request, as the case may be; (ii) if
any prepayment or other principal payment of its LIBOR Rate Loans occurs on any
day other than the last day of an Interest Period applicable to that Loan
(whether voluntary, mandatory, automatic, by reason of acceleration, or
otherwise); or (iii) if any prepayment of any of its LIBOR Rate Loans is
not made on any date specified in a notice of prepayment given by Company.

(d)                     Booking of
LIBOR Rate Loans. Any Lender may make, carry or transfer LIBOR Rate Loans
at, to, or for the account of any of its branch offices or the office of an
Affiliate of such Lender.

(e)                      Assumptions
Concerning Funding of LIBOR Rate Loans. Calculation of all amounts payable
to a Lender under this Section 2.17 and under Section 2.18 shall be
made as though such Lender had actually funded each of its relevant LIBOR Rate
Loans through the purchase of a LIBOR deposit bearing interest at the rate
obtained pursuant to clause (i) of the definition of Adjusted LIBOR Rate
in an amount equal to the amount of such LIBOR Rate Loan and having a maturity
comparable to the relevant Interest Period and through the transfer of such
LIBOR deposit from an offshore office of such Lender to a domestic office of
such Lender in the United States of America; provided, however, each Lender may
fund each of its LIBOR Rate Loans in any manner it sees fit and the foregoing
assumptions shall be utilized only for the purposes of calculating amounts
payable under this Section 2.17 and under Section 2.18.

 44
 

 

2.18                        Increased Costs; Capital Adequacy;
Reserves on LIBOR Rate Loans.

(a)                      Compensation
For Increased Costs and Taxes. Subject to the provisions of Section 2.19
(which shall be controlling with respect to the matters covered thereby), in
the event that any Lender shall determine (which determination shall, absent
manifest error, be final and conclusive and binding upon all parties hereto)
that any law, treaty or governmental rule, regulation or order, or any change
therein or in the interpretation, administration or application thereof
(including the introduction of any new law, treaty or governmental rule,
regulation or order), or any determination of a court or governmental
authority, in each case that becomes effective after the date hereof, or
compliance by such Lender with any guideline, request or directive issued or
made after the date hereof by any central bank or other governmental or quasi
governmental authority (whether or not having the force of law): (i) subjects
such Lender (or its applicable lending office) to any additional Tax (other
than any Tax on the overall net income of such Lender) with respect to this
Agreement or any of the other Credit Documents or any of its obligations
hereunder or thereunder or any payments to such Lender (or its applicable
lending office) of principal, interest, fees or any other amount payable
hereunder; (ii) imposes, modifies or holds applicable any reserve
(including any marginal, emergency, supplemental, special or other reserve),
special deposit, compulsory loan, FDIC insurance or similar requirement against
assets held by, or deposits or other liabilities in or for the account of, or
advances or loans by, or other credit extended by, or any other acquisition of
funds by, any office of such Lender (other than any such reserve or other
requirements with respect to LIBOR Rate Loans that are reflected in the
definition of Adjusted LIBOR Rate); or (iii) imposes any other condition
(other than with respect to a Tax matter) on or affecting such Lender (or its
applicable lending office) or its obligations hereunder or the London interbank
market; and the result of any of the foregoing is to increase the cost to such
Lender of agreeing to make, making or maintaining Loans hereunder or to reduce
any amount received or receivable by such Lender (or its applicable lending
office) with respect thereto; then, in any such case, Company shall promptly
pay to such Lender, upon receipt of the statement referred to in the next
sentence, such additional amount or amounts (in the form of an increased rate
of, or a different method of calculating, interest or otherwise as such Lender
in its sole discretion shall determine) as may be necessary to compensate such
Lender for any such increased cost or reduction in amounts received or
receivable hereunder. Such Lender shall deliver to Company (with a copy to
Administrative Agent) a written statement, setting forth in reasonable detail
the basis for calculating the additional amounts owed to such Lender under this
Section 2.18(a), which statement shall be conclusive and binding upon all
parties hereto absent manifest error.

(b)                     Capital
Adequacy Adjustment. In the event that any Lender shall have reasonably
determined that the adoption, effectiveness, phase in or applicability after
the Closing Date of any law, rule or regulation (or any provision thereof)
regarding capital adequacy, or any change therein or in the interpretation or
administration thereof by any Governmental Authority, central bank or
comparable agency charged with the interpretation or administration thereof, or
compliance by any Lender (or its applicable lending office) with any guideline,
request or directive regarding capital adequacy (whether or not having the
force of law) of any such Governmental Authority, central bank or comparable
agency, has or would have the effect of reducing the rate of return on the
capital of such Lender or any corporation controlling such Lender as a
consequence of, or with reference to, such Lender’s Loans, or participations
therein or other obligations hereunder with respect to the Loans to a level
below that which such Lender 

 45
 

 

or such controlling corporation could have achieved
but for such adoption, effectiveness, phase in, applicability, change or
compliance (taking into consideration the policies of such Lender or such
controlling corporation with regard to capital adequacy), then from time to
time, within five Business Days after receipt by Company from such Lender of
the statement referred to in the next sentence, Company shall pay to such
Lender such additional amount or amounts as will compensate such Lender or such
controlling corporation on an after tax basis for such reduction. Such Lender
shall deliver to Company (with a copy to Administrative Agent) a written
statement, setting forth in reasonable detail the basis for calculating the
additional amounts owed to Lender under this Section 2.18(b), which
statement shall be conclusive and binding upon all parties hereto absent
manifest error.

2.19                        Taxes; Withholding, etc.

(a)                      Payments
to Be Free and Clear. All sums payable by any Credit Party hereunder and
under the other Credit Documents shall (except to the extent required by law)
be paid free and clear of, and without any deduction or withholding on account
of, any Tax (other than an Excluded Tax) imposed, levied, collected, withheld
or assessed by or within the United States of America or any political
subdivision in or of the United States of America or any other jurisdiction
from or to which a payment is made by or on behalf of any Credit Party or by any
federation or organization of which the United States of America or any such
jurisdiction is a member at the time of payment.

(b)                     Withholding
of Taxes. If any Credit Party or any other Person is required by law to
make any deduction or withholding on account of any Tax (other than an Excluded
Tax) from any sum paid or payable under any of the Credit Documents: (i) Company
shall notify Administrative Agent of any such requirement or any change in any
such requirement as soon as Company becomes aware of it; (ii) Company
shall pay any such Tax before the date on which penalties attach thereto, such
payment to be made (if the liability to pay is imposed on any Credit Party) for
its own account or (if that liability is imposed on Administrative Agent or
such Lender, as the case may be) on behalf of and in the name of Administrative
Agent or such Lender; (iii) the sum payable by such Credit Party in
respect of which the relevant deduction, withholding or payment, is required
shall be increased to the extent necessary to ensure that, after the making of
that deduction, withholding or payment of all Taxes, Administrative Agent or
such Lender, as the case may be, and each of their Tax Related Persons receives
on the due date and retains a net sum equal to what it would have received and
retained had no such deduction, withholding or payment been required or made;
and (iv) within thirty (30) days after making any such deduction or
withholding, and within thirty (30) days after the due date of payment of any
Tax which it is required by clause (ii) above to pay, Company shall
deliver to Administrative Agent evidence satisfactory to the other affected
parties of such deduction, withholding and payment and of the remittance
thereof to the relevant taxing or other authority; provided, no such additional
amount shall be required to be paid to any Lender under clause (iii) above
except to the extent that any change in law, treaty or governmental rule,
regulation or order after the date hereof (in the case of each Lender listed on
the signature pages hereof on the Closing Date) or after the effective
date of the Assignment Agreement pursuant to which such Lender became a Lender
(in the case of each other Lender) shall result in an increase in the rate of
such deduction, withholding or payment from that in effect at the date hereof
or at the date of such Assignment Agreement in respect of payments to such
Lender.

 46
 

 

(c)                      Other
Taxes In addition, the Credit Parties shall pay all Other Taxes to the
relevant Governmental Authorities in accordance with applicable law. The Credit
Parties shall deliver to Administrative Agent official receipts or other
evidence of such payment reasonably satisfactory to Administrative Agent in
respect of any Taxes or Other Taxes payable hereunder promptly after payment of
such Taxes or Other Taxes.

(d)                     Indemnification.
The Credit Parties shall indemnify each Agent and each Lender, within ten (10) days
after written demand therefor, for the full amount of any Taxes (other than
Excluded Taxes) paid or incurred by such Agent or such Lender or their
respective Tax Related Persons, as the case may be, relating to, arising out
of, or in connection with any Credit Document or any payment or transaction
contemplated hereby or thereby, whether or not such Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority; provided,
however, that the Credit Parties shall not be required to indemnify the
Agents, Lenders and Participants for any Taxes that would be excluded from a
gross-up under Section 2.19(b) or to the extent such Taxes are
covered by Sections 2.19(b) or (c). Such indemnification shall be made on
an after-Tax basis, such that after all required deductions and payments of all
Taxes (other than Excluded Taxes) (including income Taxes and deductions
applicable to amounts payable under this Section 2.19(d)) and payment of
all reasonable expenses, the Agents, the Lenders and each of their respective
Tax Related Persons receives and retains an amount equal to the sum it would
have received and retained had it not paid or incurred or been subject to such
Taxes. A certificate from the relevant Lender or Agent, setting forth in
reasonable detail the basis and calculation of such Taxes shall be conclusive,
absent manifest error.

(e)                      Evidence
of Exemption From U.S. Withholding Tax. Each Lender that is not a United
States Person (as such term is defined in Section 7701(a)(30) of the
Internal Revenue Code) for U.S. federal income tax purposes (a “Non-U.S. Lender”) shall deliver to the Company with a copy
to the Administrative Agent, on or prior to the Closing Date (in the case of
each Lender listed on the signature pages hereof on the Closing Date) or
on or prior to the date of the Assignment Agreement pursuant to which it
becomes a Lender (in the case of each other Lender), and at such other times as
may be necessary in the determination of Company or Administrative Agent (each
in the reasonable exercise of its discretion), (i) two original copies of
Internal Revenue Service Form W-8BEN, W-8IMY or W-8ECI
(or any successor forms), properly completed and duly executed by such Lender,
and such other documentation required under the Internal Revenue Code and
reasonably requested by Company to establish that such Lender is not subject to
deduction or withholding of United States federal income tax with respect to
any payments to such Lender of principal, interest, fees or other amounts
payable under any of the Credit Documents or is subject to deduction or
withholding at a reduced rate, or (ii) if such Lender is not a “bank” or other
Person described in Section 881(c)(3) of the Internal Revenue Code
and cannot deliver Internal Revenue Service Form W 8ECI pursuant to clause
(i) above, a Certificate Regarding Non Bank Status together with two
original copies of Internal Revenue Service Form W-8BEN (or any
successor form), properly completed and duly executed by such Lender, and such
other documentation required under the Internal Revenue Code and reasonably
requested by Company to establish that such Lender is not subject to deduction
or withholding of United States federal income tax with respect to any payments
to such Lender of interest payable under any of the Credit Documents. Each
Lender required to deliver any forms, certificates or other evidence with respect
to United States federal 

 47
 

 

income tax withholding matters pursuant to this Section 2.19(e) hereby
agrees, from time to time after the initial delivery by such Lender of such
forms, certificates or other evidence, whenever a lapse in time or change in
circumstances renders such forms, certificates or other evidence obsolete or
inaccurate in any material respect, that such Lender shall promptly deliver to
Administrative Agent for transmission to Company two new original copies of
Internal Revenue Service Form W-8BEN, W-8IMY or W-8ECI,
or a Certificate Regarding Non Bank Status and two original copies of Internal
Revenue Service Form W-8BEN (or any successor form), as the case may
be, properly completed and duly executed by such Lender, and such other documentation
required under the Internal Revenue Code and reasonably requested by Company to
confirm or establish that such Lender is not subject to deduction or
withholding of United States federal income tax with respect to payments to
such Lender under the Credit Documents or is subject to deduction or
withholding at a reduced rate, or notify Administrative Agent and Company of
its inability to deliver any such forms, certificates or other evidence. Company
shall not be required to pay any additional amount to any Non-U.S. Lender under
Section 2.19(b)(iii) if such Lender shall have failed to deliver the
forms, certificates or other evidence referred to in this Section 2.19(e) that
it is legally entitled to deliver; provided, if such Lender shall have
satisfied the requirements of the first sentence of this Section 2.19(e) on
the Closing Date or on the date of the Assignment Agreement pursuant to which
it became a Lender, as applicable, nothing in this last sentence of Section 2.19(e) shall
relieve Company of its obligation to pay any additional amounts pursuant this Section 2.19
in the event that, as a result of any change in any applicable law, treaty or
governmental rule, regulation or order, or any change in the interpretation,
administration or application thereof, such Lender is no longer properly
entitled to deliver forms, certificates or other evidence at a subsequent date
establishing the fact that such Lender is not subject to withholding as
described herein. Nothing in this Section 2.19 shall be construed to
require a Lender, Agent or Participant to provide any forms or documentation
that it is not legally entitled to provide.

2.20                        Obligation
to Mitigate. Each Lender agrees that, as promptly as practicable after the
officer of such Lender responsible for administering its Loans becomes aware of
the occurrence of an event or the existence of a condition that would cause
such Lender to become an Affected Lender or that would entitle such Lender to
receive payments under Section 2.17, 2.18 or 2.19, it will, to the extent
not inconsistent with the internal policies of such Lender and any applicable
legal or regulatory restrictions, use reasonable efforts to (a) make,
issue, fund or maintain its Credit Extensions, including any Affected Loans,
through another office of such Lender, or (b) take such other measures as
such Lender may deem reasonable, if as a result thereof the circumstances which
would cause such Lender to be an Affected Lender would cease to exist or the
additional amounts which would otherwise be required to be paid to such Lender
pursuant to Section 2.17, 2.18 or 2.19 would be materially reduced and if,
as determined by such Lender in its sole discretion, the making, issuing,
funding or maintaining of such Loans through such other office or in accordance
with such other measures, as the case may be, would not otherwise adversely
affect such Loans or the interests of such Lender; provided, such Lender
will not be obligated to utilize such other office pursuant to this Section 2.20
unless Company agrees to pay all costs and expenses incurred by such Lender as
a result of utilizing such other office as described above. A certificate as to
the amount of any such expenses payable by Company pursuant to this Section 2.20
(setting forth in reasonable detail the basis for requesting such amount)
submitted by such Lender to Company (with a copy to Administrative Agent) shall
be conclusive absent manifest error.

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2.21                        Defaulting
Lenders. Anything contained herein to the contrary notwithstanding, in the
event that any Lender, other than at the direction or request of any regulatory
agency or authority, defaults (a “Defaulting
Lender”) in its obligation to fund (a “Funding Default”) any Term
Loan or its portion of any unreimbursed payment under Section 2.3(e) (in
each case, a “Defaulted Loan”), then (a) during any Default Period with respect to
such Defaulting Lender, such Defaulting Lender shall be deemed not to be a “Lender” for purposes
of voting on any matters (including the granting of any consents or waivers)
with respect to any of the Credit Documents; and (b) to the extent
permitted by applicable law, until such time as the Default Excess with respect
to such Defaulting Lender shall have been reduced to zero, (i) any
voluntary prepayment of Term Loans shall, if
Administrative Agent so directs at the time of making such voluntary
prepayment, be applied to Term Loans of other Lenders as if such Defaulting
Lender had no Term Loans outstanding and the outstanding Term Loan Loans of
such Defaulting Lender were zero, and (ii) any mandatory prepayment of the
Term Loans shall, if Administrative Agent so directs at the time of making such
mandatory prepayment, be applied to the Term Loans of other Lenders (but not to
the Term Loans of such Defaulting Lender) as if such Defaulting Lender had
funded all Defaulted Loans of such Defaulting Lender. No Term Loan Commitment
of any Lender shall be increased or otherwise affected, and, except as
otherwise expressly provided in this Section 2.21, performance by Company
of its obligations hereunder and the other Credit Documents shall not be
excused or otherwise modified as a result of any Funding Default or the
operation of this Section 2.21. The rights and remedies against a
Defaulting Lender under this Section 2.21 are in addition to other rights
and remedies which Company may have against such Defaulting Lender with respect
to any Funding Default and which Administrative Agent or any Lender may have
against such Defaulting Lender with respect to any Funding Default.

2.22                        Removal or
Replacement of a Lender. Anything contained herein to the contrary
notwithstanding, in the event that: (a) (i) any Lender (an “Increased Cost Lender”) shall give notice to Company that
such Lender is an Affected Lender or that such Lender is entitled to receive
payments under Section 2.18, 2.19 or 2.20, (ii) the circumstances
which have caused such Lender to be an Affected Lender or which entitle such
Lender to receive such payments shall remain in effect, and (iii) such
Lender shall fail to withdraw such notice within five Business Days after
Company’s request for such withdrawal; or (b) (i) any Lender shall
become a Defaulting Lender, (ii) the Default Period for such Defaulting
Lender shall remain in effect, and (iii) such Defaulting Lender shall fail
to cure the default as a result of which it has become a Defaulting Lender
within five Business Days after Company’s request that it cure such default; or
(c) in connection with any proposed amendment, modification, termination,
waiver or consent with respect to any of the provisions hereof as contemplated
by Section 10.5(b), the consent of Administrative Agent and Requisite
Lenders shall have been obtained but the consent of one or more of such other
Lenders (each a “Non-Consenting Lender”) whose consent
is required shall not have been obtained; then, with respect to each such
Increased Cost Lender, Defaulting Lender or Non-Consenting Lender (the “Terminated Lender”), Administrative Agent may (which, in the
case of an Increased-Cost Lender, only after receiving written request from
Company to remove such Increased-Cost Lender), by giving written notice to
Company and any Terminated Lender of its election to do so, elect to cause such
Terminated Lender (and such Terminated Lender hereby irrevocably agrees) to
assign its outstanding Loans, in full to one or more Eligible Assignees (each a
“Replacement Lender”) in accordance with
the provisions of Section 10.6 and Terminated Lender shall pay any fees
payable thereunder in connection with 

 49
 

 

such assignment; provided, (1) on the date
of such assignment, the Replacement Lender shall pay to Terminated Lender an
amount equal to the sum of (A) an amount equal to the principal of, and
all accrued interest on, all outstanding Loans of the Terminated Lender, (B) an
amount equal to all unreimbursed drawings that have been funded by such
Terminated Lender, together with all then unpaid interest with respect thereto
at such time and (C) an amount equal to all accrued, but theretofore
unpaid fees owing to such Terminated Lender pursuant to Section 2.10; (2) on
the date of such assignment, Company shall pay any amounts payable to such
Terminated Lender pursuant to Section 2.18 or 2.19; and (3) in the
event such Terminated Lender is a Non-Consenting Lender, each Replacement
Lender shall consent, at the time of such assignment, to each matter in respect
of which such Terminated Lender was a Non Consenting Lender. Upon the
prepayment of all amounts owing to any Terminated Lender, such Terminated
Lender shall no longer constitute a “Lender” for purposes hereof; provided, any rights of such
Terminated Lender to indemnification hereunder shall survive as to such
Terminated Lender.

2.23                        Notices.

Any Notice shall
be executed by an Authorized Officer in a writing delivered to Administrative
Agent. In lieu of delivering a Notice, Company may give Administrative Agent
telephonic notice by the required time of any proposed borrowing or Interest
Election Request as the case may be; provided each such notice shall be
promptly confirmed in writing by delivery of the applicable Notice to
Administrative Agent on or before the applicable date of borrowing,
continuation/conversion or issuance. Neither Administrative Agent nor any
Lender shall incur any liability to Company in acting upon any telephonic
notice referred to above that Administrative Agent believes in good faith to
have been given by a duly authorized officer or other person authorized on
behalf of Company or for otherwise acting in good faith.

SECTION 3.                           CONDITIONS
PRECEDENT

3.1                               Conditions to Making
All Loans. The obligation of each Lender to
make each Loan is subject to the satisfaction, or waiver in accordance with Section 10.5,
of the following conditions:

(a)                      Credit
Documents. Administrative Agent shall have received sufficient copies of
each Credit Document executed and delivered by each applicable Credit Party for
each Lender.

(b)                     Indenture
Supplement. Administrative Agent shall have received a fully executed or
conformed copy of Indenture Supplement No. 2 and any documents executed in
connection therewith, together with copies of each of the opinions of counsel
delivered to the parties thereunder, accompanied by a letter from each such
counsel (to the extent not inconsistent with such counsel’s established
internal policies) authorizing Lenders to rely upon such opinion to the same
extent as though it were addressed to Lenders. Indenture Supplement No. 2
(and the Senior Secured Notes Indenture as amended thereby) shall be in full
force and effect, shall include terms and provisions reasonably satisfactory to
Administrative Agent and no provision thereof shall have been modified or
waived in any respect determined by Administrative Agent to be material, in
each case without the consent of Administrative Agent.

 50
 

 

(c)                      Organizational
Documents; Incumbency. Administrative Agent shall have received (i) sufficient
copies of each Organizational Document of each Credit Party, as applicable,
and, to the extent applicable, certified as of a recent date by the appropriate
governmental official, for each Lender, each dated the Closing Date or a recent
date prior thereto; (ii) signature and incumbency certificates of the
officers of such Person executing the Credit Documents to which it is a party; (iii) resolutions
of the board of directors or similar governing body of each Credit Party
approving and authorizing the execution, delivery and performance of this
Agreement and the other Credit Documents and the Related Agreements to which it
is a party or by which it or its assets may be bound as of the Closing Date,
certified as of the Closing Date by its secretary or an assistant secretary as
being in full force and effect without modification or amendment; (iv) a
good standing certificate from the applicable Governmental Authority of each
Credit Party’s jurisdiction of incorporation, organization or formation and in
each jurisdiction in which it is qualified as a foreign corporation or other
entity to do business, each dated a recent date prior to the Closing Date
(other than the foreign qualification certification of WISE-TV, Inc. which
shall be delivered as soon as reasonably practicable following the Closing
Date); and (v) such other documents as Administrative Agent may reasonably
request.

(d)                     Organizational
and Capital Structure. The organizational structure and capital structure
of Company and its Subsidiaries shall be as set forth on Schedule 4.1.

(e)                      Existing
Indebtedness. Company shall have delivered to Administrative Agent and
Lenders copies of all material documents related to all Existing Indebtedness.

(f)                        Transaction
Costs. Company shall have delivered to Administrative Agent Company’s
reasonable best estimate of the Transaction Costs (other than fees payable to
any Agent).

(g)                     Governmental
Authorizations and Consents. Each Credit Party shall have obtained all
Governmental Authorizations and all consents of other Persons, in each case
that are necessary or advisable in connection with the transactions
contemplated by the Credit Documents and the Related Agreements and each of the
foregoing shall be in full force and effect and in form and substance
reasonably satisfactory to Administrative Agent. All applicable waiting periods
shall have expired without any action being taken or threatened by any
competent authority which would restrain, prevent or otherwise impose adverse
conditions on the transactions contemplated by the Credit Documents or the
Related Agreements or the financing thereof and no action, request for stay,
petition for review or rehearing, reconsideration, or appeal with respect to
any of the foregoing shall be pending, and the time for any applicable agency
to take action to set aside its consent on its own motion shall have expired.

(h)                     Security.
In order to create in favor of Collateral Agent, for the benefit of Secured
Parties, a valid and, subject to any filing and/or recording referred to
herein, perfected First Priority security interest in the Collateral,
Administrative Agent and Collateral Agent shall have received from Company and
each applicable Guarantor:

 51
 

 

(i)                    evidence satisfactory to
Administrative Agent of the compliance by each Credit Party of their
obligations under the Security Agreement and the other Collateral Documents
(including their obligations to execute and deliver UCC financing statements,
originals of securities, instruments and chattel paper and any agreements
governing deposit and/or securities accounts as provided therein);

(ii)                 opinions of counsel (which counsel
shall be reasonably satisfactory to Administrative Agent) with respect to the
creation and perfection of the security interests in favor of Collateral Agent
in such Collateral and such other matters governed by the laws of each
jurisdiction in which any Credit Party or any Collateral is located as any
Agent may reasonably request, in each case in form and substance reasonably
satisfactory to such Agent; and

(iii)              evidence that each Credit Party shall have taken or
caused to be taken any other action, executed and delivered or caused to be
executed and delivered any other agreement, document and instrument (including
without limitation, any intercompany notes evidencing Indebtedness permitted to
be incurred pursuant to Section 6.1(b)) and made or caused to be made any
other filing and recording (other than as set forth herein) reasonably required
by Administrative Agent.

(i)                         [Reserved].

(j)                         Financial
Statements; Projections. Lenders shall have received from Company (i) the
Historical Financial Statements, (ii) pro forma consolidated balance sheet
of Company and its Subsidiaries as at the Closing Date, which pro forma
financial statements shall be in form and substance satisfactory to
Administrative Agent, and (iii) the Projections.

(k)                      Evidence
of Insurance. Administrative Agent shall have received a certificate from
Company’s insurance broker evidencing that all insurance required to be
maintained pursuant to Section 5.5 is in full force and effect, together
with endorsements naming the Collateral Agent, for the benefit of Secured
Parties, as additional insured and loss payee thereunder to the extent required
under Section 5.5.

(l)                         Opinions
of Counsel to Credit Parties. Lenders and their respective counsel shall
have received originally executed copies of the favorable written opinions of
Akin, Gump, Strauss, Hauer & Feld, LLP, counsel for Credit Parties, in
the form of Exhibit D, and the favorable written opinions of local counsel
for Credit Parties in each jurisdiction in which any Credit Party is a
registered organization under the UCC and in each jurisdiction in which the
Company or other credit party is required to grant a Mortgage, each dated as of
the Closing Date and covering such matters as Administrative Agent may
reasonably request and otherwise in form and substance reasonably satisfactory
to Administrative Agent (and each Credit Party hereby instructs such counsel to
deliver such opinions to Agents and Lenders).

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(m)                   Fees and Expenses.
Company shall have paid to the Administrative Agent and Lenders, the fees and
expenses payable on the Closing Date referred to in the Fee Letter.

(n)                     [Reserved].

(o)                     Closing
Date. Lenders shall have made the initial Tranche B Term Loans to Company
on or before July 5, 2006.

(p)                     Representations
and Warranties. As of such Credit Date, the representations and warranties
contained herein and in the other Credit Documents shall be true and correct in
all material respects on and as of that Credit Date to the same extent as
though made on and as of that date, except to the extent such representations
and warranties specifically relate to an earlier date, in which case such
representations and warranties shall have been true and correct in all material
respects on and as of such earlier date.

(q)                     No Default.
As of such Credit Date, no event shall have occurred and be continuing or would
result from the consummation of the applicable Credit Extension that would
constitute an Event of Default or a Default.

(r)                        No
Litigation. There shall not exist any action, suit, investigation,
litigation or proceeding or other legal or regulatory developments, pending or
threatened in any court or before any arbitrator or Governmental Authority
that, in the reasonable opinion of Administrative Agent, singly or in the
aggregate, materially impairs any of the transactions contemplated by the
Credit Documents or the Related Agreements, or that could have a Material
Adverse Effect.

(s)                      Due
Diligence. Other than changes occurring in the ordinary course of business,
no information or materials are or should have been available to Company and
its Subsidiaries as of the Closing Date that are materially inconsistent with
the material previously provided to Administrative Agent for its due diligence
review of Company and its Subsidiaries.

(t)                        No
Material Adverse Change. Since December 31, 2005, and except as set
forth in Schedule 3.1(t), no event, circumstance or change shall have occurred
that has caused or evidences, either in any case or in the aggregate, a
Material Adverse Effect.

(v)                     Officer’s
Certificate. The Administrative Agent shall have received a certificate
signed by the President, a Vice President or a Financial Officer of Company,
dated such Credit Date, confirming compliance with the conditions set forth in
clauses (p), (q), (r) and (t) above.

Any Agent or
Requisite Lenders shall be entitled, but not obligated to, request and receive,
prior to the making of any Credit Extension, additional information reasonably
satisfactory to the requesting party confirming the satisfaction of any of the
foregoing if, in the 

 53
 

 

good faith judgment of
such Agent or Requisite Lender such request is warranted under the
circumstances.

Each Lender, by delivering its signature page to this Agreement
and funding a Loan on the Closing Date, shall be deemed to have acknowledged
receipt of, and consented to and approved, each Credit Document and each other
document required to be approved by any Agent, Requisite Lenders or Lenders, as
applicable on the Closing Date.

3.2                               Additional Conditions to Tranche A
Term Loan.

The obligation of each Lender to make its Tranche A Term Loan is
subject to the satisfaction, or waiver in accordance with Section 10.5, of
the following additional conditions precedent:

(a)  Binghamton
Acquisition. (i) Concurrently with the making of the Tranche A Term
Loan hereunder, Company shall have consummated the Binghamton Acquisition in
accordance with the terms of the Binghamton Acquisition Agreement; (ii) Administrative
Agent shall have received a fully executed or conformed copy of the Binghamton
Acquisition Agreement and any documents executed in connection therewith,
together with copies of each of the opinions of counsel delivered to the
parties thereunder (but only to the extent such opinion copies may be
distributed to the Administrative Agent so long as Company requests that such
opinion copies be so distributed); and (iii) the Binghamton Acquisition
Agreement shall be in full force and effect.

(b)                     Binghamton
Collateral. The Collateral Agent shall have been granted a First Priority
Lien on the assets to be acquired under the Binghamton Acquisition Agreement
for the benefit of the Lenders and such Lien and all documentation executed in
connection therewith shall be satisfactory to the Agents.

(c)                      WB
Dispositions. Company shall not have consummated the WB Dispositions.

(d)                     [Reserved].

(e)                      Officer’s
Certificate. The Administrative Agent shall have received a certificate
signed by the President, a Vice President or a Financial Officer of Company,
dated such Credit Date, confirming compliance with the conditions set forth in
the foregoing clauses (a) through (c), and the conditions set forth in clauses
(p), (q), (r) and (t) of Section 3.1.

Any Agent or
Requisite Lenders shall be entitled, but not obligated to, request and receive,
prior to the making of any Credit Extension, additional information reasonably
satisfactory to the requesting party confirming the satisfaction of any of the
foregoing if, in the 

 54
 

 

good faith judgment of
such Agent or Requisite Lender such request is warranted under the
circumstances.

SECTION 4.                           REPRESENTATIONS
AND WARRANTIES

In order to induce Lenders to enter into this Agreement and to make
each Loan to be made thereby, each Credit Party represents and warrants to each
Lender, on the Closing Date and on each Credit Date, that the following
statements are true and correct:

4.1                               Organization;
Requisite Power and Authority; Qualification. Each of Company and its
Subsidiaries (a) is duly organized, validly existing and in good standing
under the laws of its jurisdiction of organization as identified in Schedule
4.1, (b) has all requisite power and authority to own and operate its
properties, to carry on its business as now conducted and as proposed to be
conducted, to enter into the Credit Documents to which it is a party and to
carry out the transactions contemplated thereby and, in the case of Company, to
make the borrowings hereunder, and (c) is qualified to do business and in
good standing in every jurisdiction where its assets are located and wherever
necessary to carry out its business and operations, except in jurisdictions
where the failure to be so qualified or in good standing has not had, and could
not be reasonably expected to have, a Material Adverse Effect.

4.2                               Capital
Stock and Ownership. The Capital Stock of each of Company and its
Subsidiaries has been duly authorized and validly issued and is fully paid and
non-assessable. Except as set forth on Schedule 4.2, as of the date hereof,
there is no existing option, warrant, call, right, commitment or other
agreement to which Company or any of its Subsidiaries is a party requiring, and
there is no membership interest or other Capital Stock of Company or any of its
Subsidiaries outstanding which upon conversion or exchange would require, the
issuance by Company or any of its Subsidiaries of any additional membership
interests or other Capital Stock of Company or any of its Subsidiaries or other
Securities convertible into, exchangeable for or evidencing the right to
subscribe for or purchase, a membership interest or other Capital Stock of
Company or any of its Subsidiaries. Schedule 4.2 sets forth a true, complete
and correct list as of the Closing Date, both before and after giving effect to
the Transactions, of the name of Company and each of its Subsidiaries and
indicates for each such Person its ownership (by holder and percentage
interest) and the type of entity of each of them, and the number and class of
authorized and issued Capital Stock of such Subsidiary. Schedule 4.2 sets forth
a true, complete and correct list as of the Closing Date, both before and after
giving effect to the Transactions, of the name of Company and each of its
Subsidiaries and indicates for each such Person its ownership (by holder and
percentage interest) and the type of entity of each of them, and the number and
class of authorized and issued Capital Stock of such Subsidiary. Except as set
forth on Schedule 4.2, as of the Closing Date, neither Company nor any of its
Subsidiaries has any equity investments in any other corporation or entity.

4.3                               Due
Authorization. The execution, delivery and performance of the Credit
Documents have been duly authorized by all necessary action on the part of each
Credit Party that is a party thereto.

 

 55

 

 

                4.4          No Conflict. The
execution, delivery and performance by Credit Parties of the Credit Documents
to which they are parties and the consummation of the transactions contemplated
by the Credit Documents do not and will not (a) violate any provision of
any law or any governmental rule or regulation applicable to Company or
any of its Subsidiaries, any of the Organizational Documents of Company or any
of its Subsidiaries, or any order, judgment or decree of any court or other
agency of government binding on Company or any of its Subsidiaries; (b) conflict
with, result in a breach of or constitute (with due notice or lapse of time or
both) a default under any Contractual Obligation of Company or any of its
Subsidiaries; (c) result in or require the creation or imposition of any
Lien upon any of the properties or assets of Company or any of its Subsidiaries
(other than any Liens created under any of the Credit Documents in favor of
Collateral  Agent, on behalf of Secured Parties);
(d) result in any default, noncompliance, suspension, revocation,
impairment, forfeiture or nonrenewal of any permit, license, authorization or
approval applicable to its operations or any of its properties or (e) require
any approval of stockholders, members or partners or any approval or consent of
any Person under any Contractual Obligation of Company or any of its
Subsidiaries, except for such approvals or consents which will be obtained on
or before the Closing Date and disclosed in writing to Lenders and except for
any such approvals or consents the failure of which to obtain will not have a
Material Adverse Effect.

                4.5          Governmental Consents.
The execution, delivery and performance by Credit Parties of the
Credit Documents to which they are parties and the consummation of the transactions
contemplated by the Credit Documents do not and will not require any
registration with, consent or approval of, or notice to, or other action to,
with or by, any Governmental Authority except for (i) filings and
recordings with respect to the Collateral to be made, or otherwise delivered to
Collateral Agent for filing and/or recordation, as of the Closing Date and (ii) as
set forth on Schedule 5.18 hereto.

                4.6          Binding Obligation. Each
Credit Document has been duly executed and delivered by each Credit Party that
is a party thereto and is the legally valid and binding obligation of such
Credit Party, enforceable against such Credit Party in accordance with its
respective terms, except as may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or limiting creditors’
rights generally or by equitable principles relating to enforceability (whether
enforcement is sought in equity or at law).

                4.7          Historical Financial
Statements. The Historical Financial Statements were prepared in
conformity with GAAP and fairly present, in all material respects, the
financial position, on a consolidated basis, of the Persons described in such
financial statements as at the respective dates thereof and the results of
operations and cash flows, on a consolidated basis, of the entities described
therein for each of the periods then ended, subject, in the case of any such
unaudited financial statements, to changes resulting from audit and normal year
end adjustments. As of the Closing Date, neither Company nor any of its
Subsidiaries has any contingent liability or liability for taxes, long term
lease or unusual forward or long term commitment that is not reflected in the
Historical Financial Statements or the notes thereto and which in any such case
is material in relation to the business, operations, properties, assets,
condition (financial or otherwise) or prospects of Company and any of its
Subsidiaries taken as a whole. Since the date of the audited Historical
Financial Statements, no Internal Control Event has occurred.

 56
 

 

                4.8          Projections. On and
as of the Closing Date, the Projections of Company and its Subsidiaries for the
period from June 1, 2006 through and including December 31, 2006,
including monthly projections for each month during the Fiscal Year in which
the Closing Date takes place, (the “Projections”)
are based on good faith estimates and assumptions made by the management of
Company and as of the Closing Date, management of Company believed that the
Projections were reasonable and attainable.

                4.9          No Material Adverse
Change. Except as disclosed on Schedule 3.1(t), since December 31,
2005,  no event, circumstance or change
has occurred that has caused or evidences, either in any case or in the
aggregate, a Material Adverse Effect.

                4.10        No Restricted Junior
Payments. Since December 31, 2005, neither Company nor any of
its Subsidiaries has directly or indirectly declared, ordered, paid or made, or
set apart any sum or property for, any Restricted Junior Payment or agreed to do
so.

                4.11        Adverse Proceedings,
etc. Except as disclosed on Schedule 4.11, there are no Adverse
Proceedings, individually or in the aggregate, that (a) relate to any
Credit Document or any Related Agreement or the transactions contemplated
hereby or thereby or (b) could reasonably be expected to have a Material
Adverse Effect. Neither Company nor any of its Subsidiaries (a) is in
violation of any applicable laws (including Environmental Laws) that,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect, or (b) is subject to or in default with respect
to any final judgments, writs, injunctions, decrees, rules or regulations
of any court or any federal, state, municipal or other governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign,
that, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

                4.12        Payment of Taxes. Except
as otherwise permitted under Section 5.3, all tax returns and reports of
Company and its Subsidiaries required to be filed by any of them have been
timely filed, and all taxes shown on such tax returns to be due and payable and
all assessments, fees and other governmental charges upon Company and its
Subsidiaries and upon their respective properties, assets, income, businesses
and franchises which are due and payable have been paid when due and payable. Company
knows of no proposed tax assessment against Company or any of its Subsidiaries
which is not being actively contested by Company or such Subsidiary in good
faith and by appropriate proceedings; provided, such reserves or other
appropriate provisions, if any, as shall be required in conformity with GAAP
shall have been made or provided therefor.

                4.13        Properties.

(a)       Title. Each of Company and its
Subsidiaries has (i) good, sufficient and legal title to (in the case of
fee interests in real property), (ii) valid leasehold interests in (in the
case of leasehold interests in real or personal property), and (iii) good
title to (in the case of all other personal property), all of their respective
properties and assets reflected in their respective Historical Financial
Statements referred to in Section 4.7 and in the most recent financial
statements delivered pursuant to Section 5.1, in each case except for
assets disposed of since the date of such financial statements in the ordinary
course of business or as otherwise permitted under Section 6.8. All such
properties and assets are in working order and 

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condition, ordinary wear and tear excepted, and
except as permitted by this Agreement, all such properties and assets are free
and clear of Liens (other than Permitted Liens).

(b)       Real Estate. As of the Closing
Date, Schedule 4.13 contains a true, accurate and complete list of all Real
Estate Assets, including a description of all Leasehold Properties (together
with all amendments of any thereof), regardless of whether such Credit Party is
the landlord or tenant (whether directly or as an assignee or successor in
interest) with respect to such Leasehold Property. Each lease described on
Schedule 4.13 is in full force and effect and no default has occurred and is
continuing thereunder. Each such lease constitutes the legally valid and
binding obligation of each applicable Credit Party, enforceable against such
Credit Party in accordance with its terms, except as enforcement may be limited
by bankruptcy, insolvency, reorganization, moratorium or similar laws relating
to or limiting creditors’ rights generally or by equitable principles. To the
best knowledge of each Credit Party, without investigation, no other party to
any such lease is in default of its obligations thereunder, and no Credit Party
(or any other party to any such lease) has at any time delivered or received any
notice of default which remains uncured under any such Lease and, as of the
Closing Date, no event has occurred which, with the giving of notice or the
passage of time or both, would constitute a default under any such lease.

                4.14        Environmental Matters.
Neither Company nor any of its Subsidiaries nor any of their
respective Facilities or operations are subject to any outstanding written
order, consent decree or settlement agreement with any Person relating to any
Environmental Law, any Environmental Claim, or any Hazardous Materials Activity
that, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect. Neither Company nor any of its Subsidiaries has
received any letter or request for information under Section 104 of the
Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C.
§ 9604) or any comparable state law. There are and, to each of Company’ and its
Subsidiaries’ knowledge, have been, no conditions, occurrences, or Hazardous
Materials Activities which could reasonably be expected to form the basis of an
Environmental Claim against Company or any of its Subsidiaries that,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect. Neither Company nor any of its Subsidiaries nor, to
any Credit Party’s knowledge, any predecessor of Company or any of its
Subsidiaries has filed any notice under any Environmental Law indicating past
or present treatment of Hazardous Materials at any Facility, and none of Company’
or any of its Subsidiaries’ operations involves the generation, transportation,
treatment, storage or disposal of hazardous waste, as defined under 40 C.F.R. Parts
260 270 or any state equivalent. Compliance with all current or reasonably
foreseeable future requirements pursuant to or under Environmental Laws could
not be reasonably expected to have, individually or in the aggregate, a
Material Adverse Effect. No event or condition has occurred or is occurring
with respect to Company or any of its Subsidiaries relating to any
Environmental Law, any Release of Hazardous Materials, or any Hazardous
Materials Activity which individually or in the aggregate has had, or could
reasonably be expected to have, a Material Adverse Effect.

                4.15        No Defaults. After
giving effect to the application of the initial Tranche B Term Loans to pay the
Past Due Interest Payment on the Closing Date, neither Company nor any of its
Subsidiaries is in default in the performance, observance or fulfillment of any
of the obligations, covenants or conditions contained in any of its Contractual
Obligations, and no condition exists 

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which, with the giving of notice or the lapse of time
or both, could constitute such a default, except where the consequences, direct
or indirect, of such default or defaults, if any, could not reasonably be
expected to have a Material Adverse Effect. After giving effect to the
application of the initial Tranche B Term Loans to pay the Past Due Interest
Payment on the Closing Date, no Default has occurred and is continuing.

                4.16        Material Contracts. Schedule
4.16 contains a true, correct and complete list of all the Material Contracts
in effect on the Closing Date. All such Material Contracts, together with any
updates provided pursuant to Section 5.1(1), are in full force and effect
and no defaults currently exist thereunder (other than as described in Schedule
4.16 or in such updates).

                4.17        Governmental
Regulation. Neither Company nor any of its Subsidiaries is subject
to the Federal Power Act or the Investment Company Act of 1940 or under any
other federal or state statute or regulation which may limit its ability to
incur Indebtedness or which may otherwise render all or any portion of the
Lender Obligations unenforceable. Neither Company nor any of its Subsidiaries
is a “registered investment company” or a company “controlled” by a “registered
investment company” or a “principal underwriter” of a “registered investment
company” as such terms are defined in the Investment Company Act of 1940.

                4.18        Margin Stock. Neither
Company nor any of its Subsidiaries is engaged in the business of extending
credit for the purpose of purchasing or carrying any Margin Stock. No part of
the proceeds of the Loans made to such Credit Party will be used to purchase or
carry any such Margin Stock or to extend credit to others for the purpose of
purchasing or carrying any such Margin Stock or for any purpose that violates,
or is inconsistent with, the provisions of Regulation T, U or X of the Board of
Governors of the Federal Reserve System.

                4.19        Employee Matters. Company
and each of its Subsidiaries have good labor relations. Company, its
Subsidiaries, and their respective employees, agents and representatives have
not committed any material unfair labor practice as defined in the National
Labor Relations Act. Neither Company nor any of its Subsidiaries has been or is
engaged in any unfair labor practice that could reasonably be expected to have
a Material Adverse Effect. There has been and is (a) no unfair labor
practice charge or complaint pending against Company or any of its
Subsidiaries, or to the best knowledge of Company, threatened against any of
them before the National Labor Relations Board or any other Governmental
Authority and no grievance or arbitration proceeding arising out of or under
any collective bargaining agreement or similar agreement that is so pending
against Company or any of its Subsidiaries or to the best knowledge of Company,
threatened against any of them, (b) no labor dispute, strike, lockout,
slowdown or work stoppage in existence or threatened against, involving or
affecting Company or any of its Subsidiaries that could reasonably be expected
to have a Material Adverse Effect, (c) no labor union, labor organization,
trade union, works council, or group of employees of Company or any of its
Subsidiaries has made a pending demand for recognition or certification, and
there are no representation or certification proceedings or petitions seeking a
representation proceeding presently pending or threatened to be brought or
filed with the National Labor Relations Board or any other Governmental
Authority, and (d) to the best knowledge of Company, no union
representation question existing with respect to any of the employees of
Company or any of its Subsidiaries and, to the best knowledge of Company, no
labor union organizing activity with respect to any employees of Company or any
of its Subsidiaries that is taking place, except (with 

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respect to any matter specified in clause (a), (b),
(c), or (d) above, either individually or in the aggregate) such as is not
reasonably likely to have a Material Adverse Effect.

                4.20        Employee Benefit Plans.
Company, each of its Subsidiaries and each of their respective ERISA
Affiliates are in compliance with all applicable provisions and requirements of
ERISA and the Internal Revenue Code and the regulations and published
interpretations thereunder with respect to each Employee Benefit Plan, and have
performed all their obligations under each Employee Benefit Plan except for
instances of non-compliance that could reasonably be expected to have a
Material Adverse Effect. No ERISA Event has occurred or is reasonably expected
to occur that could reasonably be expected to have a Material Adverse Effect. Neither
the Company nor any ERISA Affiliate maintains, sponsors or has any actual or
contingent liability with respect to any Pension Plan or has any obligation to
contribute to a Multiemployer Plan.

                4.21        Certain Fees. Except
as set forth on Schedule 4.21, no broker’s or finder’s fee or commission will
be payable with respect hereto or any of the transactions contemplated hereby.

                4.22        [Reserved].

                4.23        [Reserved].

                4.24        Compliance with
Statutes, etc. Each of Company and its Subsidiaries is in compliance
with its organizational documents and all applicable statutes, regulations and
orders of, and all applicable restrictions imposed by, all Governmental
Authorities, in respect of the conduct of its business and the ownership of its
property (including compliance with all applicable Environmental Laws with
respect to any Real Estate Asset or governing its business and the requirements
of any permits issued under such Environmental Laws with respect to any such
Real Estate Asset or the operations of Company or any of its Subsidiaries),
except such non compliance that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

                4.25        Disclosure. No
representation or warranty of any Credit Party contained in any Credit Document
and none of the reports, financial statements or other documents, certificates
or written statements furnished to Lenders by or on behalf of Company or any of
its Subsidiaries for use in connection with the transactions contemplated
hereby contains any untrue statement of a material fact or omits to state a
material fact (known to Company, in the case of any document not furnished by
either of them) necessary in order to make the statements contained herein or
therein not misleading in light of the circumstances in which the same were
made. Any projections and pro forma financial information contained in such
materials are based upon good faith estimates and assumptions believed by
Company to be reasonable at the time made. There are no agreements, instruments
and corporate or other restrictions to which any Credit Party is subject and
there are no facts known (or which should upon the reasonable exercise of
diligence be known) to Company (other than matters of a general economic
nature) that, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect and that have not been disclosed herein or
in such other documents, certificates and statements furnished to Lenders for
use in connection with the transactions contemplated hereby.

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                4.26        Terrorism Laws. Each
Credit Party is in compliance, in all material respects, with the Terrorism
Laws. No part of the proceeds of the Loans will be used, directly or
indirectly, for any payments to any governmental official or employee,
political party, official of a political party, candidate for political office,
or anyone else acting in an official capacity in violation of the United States
Foreign Corrupt Practices Act of 1977, as amended.

                4.27        Insurance. The
properties of Company and each of its Subsidiaries are adequately insured with
financially sound and reputable insurers and in such amounts, with such
deductibles and covering such risks and otherwise on terms and conditions as
are customarily carried or maintained by Persons of established reputation of
similar size and engaged in similar businesses and such insurance complies with
the requirements of Section 5.5. Schedule 4.27 sets forth a list of all
insurance maintained by or on behalf of the Credit Parties and each of their
Subsidiaries as of the Closing Date and, as of the Closing Date, all premiums
in respect of such insurance have been paid or have not yet been invoiced.

                4.28        Common Enterprise. The
successful operation and condition of each of the Loan Parties is dependent on
the continued successful performance of the functions of the group of the Loan
Parties as a whole and the successful operation of each of the Loan Parties is
dependent on the successful performance and operation of each other Loan Party.
Each Loan Party expects to derive benefit (and its board of directors or other
governing body has determined that it may reasonably be expected to derive
benefit), directly and indirectly, from (i) successful operations of each
of the other Loan Parties and (ii) the credit extended by the Lenders to
the Borrower hereunder, both in their separate capacities and as members of the
group of companies. Each Loan Party has determined that execution, delivery,
and performance of this Agreement and any other Credit Documents to be executed
by such Loan Party is within its purpose, will be of direct and indirect
benefit to such Loan Party, and is in its best interest.

                4.29        Security Interest in
Collateral. The provisions of the Collateral Documents create legal
and valid Liens on all the Collateral in favor of the Collateral Agent, for the
benefit of the Collateral Agent and the Secured Parties, and such Liens
constitute perfected and continuing Liens on the Collateral, securing the
Lender Obligations, enforceable against the applicable Credit Party and all
third parties, and having priority over all other Liens on the Collateral
except in the case of (a) Permitted Liens, to the extent any such
Permitted Liens would have priority over the Liens in favor of the Collateral
Agent pursuant to any applicable law and (b) Liens
perfected only by possession (including possession of any certificate of title)
to the extent the Collateral Agent has not obtained or does not maintain
possession of such Collateral.

                4.30        Affiliate
Transactions.

Except as set forth
on Schedule 4.30, as of the date of this Agreement, there are no existing or
proposed agreements, arrangements, understandings, or transactions between any
Credit Party and any of the officers, members, managers, directors,
stockholders, parents, other interest holders, employees, or Affiliates (other
than Subsidiaries) of any Credit Party or any members of their respective
immediate families, and none of the foregoing Persons are directly or
indirectly indebted to or have any direct or indirect ownership, partnership,
or voting interest in any Affiliate of any Credit Party or any Person with
which any Credit Party has a business relationship or which competes with any
Credit Party.

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                4.31        Intellectual Property. Each
Credit Party and its Subsidiaries owns, or is licensed to use, all trademarks,
tradenames, copyrights, patents and other intellectual property necessary to
its business as currently conducted, a correct and complete list of which, as
of the date of this Agreement, is set forth on Schedule 4.31, and the use
thereof by the Credit Parties and its Subsidiaries does not infringe in any
material respect upon the rights of any other Person, and the Credit Parties
rights thereto are not subject to any licensing agreement or similar
arrangement. Each Credit Party has taken reasonable measures to protect the
secrecy, confidentiality and value of all trade secrets used in its business
(collectively, the “Business Trade Secrets”).
To the best knowledge of each Credit Party, none of the Business Trade Secrets
have been disclosed to any Person other than employees or contractors of the
Credit Parties who had a need to know and use such Business Trade Secrets in
the ordinary course of employment or contract performance and who executed
appropriate confidentiality agreements prohibiting the unauthorized use or
disclosure of such Business Trade Secrets and containing other terms reasonably
necessary or appropriate for the protection and maintenance of such Business
Trade Secrets. To the best knowledge of each Credit Party, no unauthorized
disclosure of any Business Trade Secrets has been made.

                4.32        Permits, Etc. Each
Credit Party has, and is in compliance with, all permits, licenses,
authorizations, approvals, entitlements and accreditations required for such Person
lawfully to own, lease, manage or operate, or to acquire, each business
currently owned, leased, managed or operated, or to be acquired, by such
Person, which, if not obtained, could not reasonably be expected to have a
Material Adverse Effect. No condition exists or event has occurred which, in
itself or with the giving of notice or lapse of time or both, would result in
the suspension, revocation, impairment, forfeiture or non-renewal of any such
permit, license, authorization, approval, entitlement or accreditation, and
there is no claim that any thereof is not in full force and effect, except, to
the extent any such condition, event or claim could not be reasonably be
expected to have a Material Adverse Effect.

SECTION 5.         AFFIRMATIVE
COVENANTS

Each Credit Party covenants and agrees that so long as any Commitment
is in effect and until payment in full of all Lender Obligations, each Credit
Party shall perform, and shall cause each of its Subsidiaries to perform, all
covenants in this Section 5.

                5.1          Financial Statements
and Other Reports.

Unless otherwise provided below, Company will deliver to Administrative
Agent and Lenders:

(a)       Monthly Reports. As soon as
available, and in any event within twenty (20) days after the end of each month
(including June, 2006), (i) the consolidated and consolidating balance
sheet of Company and its Subsidiaries as at the end of such month and the
related consolidated (and with respect to statements of income, consolidating)
statements of income of Company and its Subsidiaries for such month and for the
period from the beginning of 

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the then current Fiscal Year to the end of such month,
setting forth in each case in comparative form the corresponding figures for
the corresponding periods of the previous Fiscal Year and the corresponding
figures from the Financial Plan for the current Fiscal Year, all in reasonable
detail, (ii) a statement showing the components (with reasonable detail)
of Broadcast Cash Flow and information on program payments and capital
expenditures of Company and its Subsidiaries for such month and (iii) a
management prepared cash flow analysis of Company and its Subsidiaries covering
such month and the remainder of Fiscal Year 2006;

(b)       Quarterly Financial Statements. As
soon as available, and in any event within forty-five (45) days after the end of each Fiscal Quarter of each Fiscal
Year (including the fourth Fiscal Quarter), the consolidated and consolidating
balance sheets of Company and its Subsidiaries as at the end of such Fiscal
Quarter and the related consolidated (and with respect to statements of income,
consolidating) statements of income, stockholders’ equity and cash flows of
Company and its Subsidiaries for such Fiscal Quarter and for the period from
the beginning of the then current Fiscal Year to the end of such Fiscal
Quarter, setting forth in each case in comparative form the corresponding
figures for the corresponding periods of the previous Fiscal Year and the
corresponding figures from the Financial Plan for the current Fiscal Year, all
in reasonable detail, together with a Financial Officer Certification and a
Narrative Report with respect thereto (it being understood that the delivery by
the Company of Quarterly Reports on Form 10-Q of the Company and its
consolidated Subsidiaries shall satisfy the requirements of this Section 5.1(b));

(c)       Annual Financial Statements. As
soon as available, and in any event within ninety (90) days after the end of
each Fiscal Year, (i) the consolidated and consolidating balance sheets of
Company and its Subsidiaries as at the end of such Fiscal Year and the related
consolidated (and with respect to statements of income, consolidating)
statements of income, stockholders’ equity and cash flows of Company and its
Subsidiaries for such Fiscal Year, setting forth in each case in comparative
form the corresponding figures for the previous Fiscal Year and the
corresponding figures from the Financial Plan for the Fiscal Year covered by
such financial statements, in reasonable detail, together with a Financial Officer
Certification and a Narrative Report with respect thereto; and (ii) with
respect to such financial statements a report thereon of Ernst &
Young LLP or other independent certified public accountants of
recognized national standing selected by Company, and reasonably satisfactory
to Administrative Agent (which report shall be unqualified as to going concern
and scope of audit (and shall not contain any explanatory paragraph or
paragraph of emphasis with respect to going concern), and shall state that such
consolidated financial statements fairly present, in all material respects, the
consolidated financial position of Company and its Subsidiaries as at the dates
indicated and the results of their operations and their cash flows for the
periods indicated in conformity with GAAP applied on a basis consistent with
prior years (except as otherwise disclosed in such financial statements) and
that the examination by such accountants in connection with such consolidated
financial statements has been made in accordance with generally accepted
auditing standards) (it being understood that the delivery by the Company of
Annual Reports on Form 10-K of the Company and its consolidated
Subsidiaries shall satisfy the requirements of this Section 5.1(c);

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(d)       Compliance Certificate. Together
with each delivery of financial statements of Company and its Subsidiaries
pursuant to Sections 5.1(a), 5.1(b) and
5.1(c), a duly executed and completed Compliance Certificate;

(e)       Statements of Reconciliation after
Change in Accounting Principles. If, as a result of any change in
accounting principles and policies (or the application thereof) from those used
in the preparation of the Historical Financial Statements, the consolidated
financial statements of Company and its Subsidiaries delivered pursuant to Section 5.1(b) or
5.1(c) will differ in any material respect from the consolidated financial
statements that would have been delivered pursuant to such subdivisions had no
such change in accounting principles and policies been made, then, together
with the first delivery of such financial statements after such change, one or
more statements of reconciliation for all such prior financial statements in
form and substance satisfactory to Administrative Agent;

(f)        Notice of Default. Prompt written
notice (i) of any condition or event that constitutes a Default or an
Event of Default or that notice has been given to Company with respect thereto;
(ii) that any Person has given any notice to Company or any of its
Subsidiaries or taken any other action with respect to any event or condition
set forth in Section 8.1(b); or (iii) of the occurrence of any event
or change that has caused or evidences, either in any case or in the aggregate,
a Material Adverse Effect, or (iv) the occurrence of  any Internal Control Event which is required
to be publicly disclosed of which any officer of Company has knowledge which
notice shall be accompanied by a certificate of its Authorized Officers
specifying the nature and period of existence of such condition, event or
change, or specifying the notice given and action taken by any such Person and
the nature of such claimed Event of Default, Default, default, event or
condition, and what action Company has taken, is taking and proposes to take
with respect thereto;

(g)       Notice of Litigation. Prompt
written notice of (i) the institution of, or threat of, any Adverse
Proceeding not previously disclosed in writing by Company to Lenders, or (ii) any
development in any Adverse Proceeding that, in the case of either clause (i) or
(ii) if adversely determined, could be reasonably expected to have a
Material Adverse Effect, or seeks to enjoin or otherwise prevent the
consummation of, or to recover any damages or obtain relief as a result of, the
transactions contemplated hereby, or which arises  in respect of any material Indebtedness of
Company or its Subsidiaries or alleges any criminal misconduct by any Credit
Party together in each case with such other information as may be reasonably
available to Company to enable Lenders and their counsel to evaluate such
matters;

(h)       ERISA. (i) Prompt written
notice of the occurrence of or forthcoming occurrence of any ERISA Event which
could reasonably be expected to result in a material liability, specifying the
nature thereof, what action Company, any of its Subsidiaries or any of their
respective ERISA Affiliates has taken, is taking or proposes to take with
respect thereto and, when known, any action taken or threatened by the Internal
Revenue Service, the Department of Labor or the PBGC with respect thereto; and (ii) with
reasonable promptness, copies of (1) each Schedule B (Actuarial
Information) to the annual report (Form 5500 Series) filed by Company, any
of its Subsidiaries or any of their respective ERISA Affiliates with the Internal
Revenue Service with respect to each Pension Plan; and (2) all notices
received by 

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Company, any of its Subsidiaries or any of their
respective ERISA Affiliates from a Multiemployer Plan sponsor concerning an
ERISA Event;

(i)        Preferred Stock.
At least 30 days prior written notice of any election by Company to exchange
any Preferred Stock in accordance with the terms thereof; provided that this
clause (i) shall not be construed as a consent by Requisite Lenders to
permit any such
election not otherwise permitted hereby.

(j)        Insurance
Report. As soon as practicable and in any event by the last day of each
Fiscal Year, a report in form and substance satisfactory to Administrative
Agent outlining all material insurance coverage maintained as of the date of
such report by Company and its Subsidiaries and all material insurance coverage
planned to be maintained by Company and its Subsidiaries in the immediately
succeeding Fiscal Year;

(k)       Notice of Change in Board of Directors.
With reasonable promptness, written notice of any change in the board of
directors (or similar governing body) of Company or Company;

(l)        Notice Regarding Material Contracts.
Promptly, and in any event within five Business Days after any Material
Contract of Company or any of its Subsidiaries is terminated or amended in a
manner that is materially adverse to Company or such Subsidiary, as the case
may be, or that any Credit Party determines in good faith to be material to
Administrative Agent or the Lenders;

(m)      Environmental Reports and Audits. As
soon as practicable following receipt thereof, copies of all environmental
audits and reports with respect to environmental matters at any Facility or
which relate to any environmental liabilities of Company or its Subsidiaries
which, in any such case, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect;

(n)       Information Regarding Collateral.
(a) Company will furnish to each of the Collateral Agent and the
Administrative Agent prompt written notice, and in any event within thirty (30)
days of such occurrence, of any change (i) in any Credit Party’s corporate
name, (ii) in any Credit Party’s identity or corporate structure, or (iii) in
any Credit Party’s Federal Taxpayer Identification Number. Company agrees not
to effect or permit any change referred to in the preceding sentence unless all
filings have been made under the Uniform Commercial Code or otherwise that are
required in order for Collateral Agent to continue at all times following such
change to have a valid, legal and perfected security interest in all the
Collateral and for the Collateral at all times following such change to have a
valid, legal and perfected security interest as contemplated in the Collateral
Documents. Company will furnish to Administrative Agent prompt written notice
of any Lien (other than Permitted Liens) or claims made or asserted against any
Collateral or interest therein. Company also agrees promptly to notify
Collateral Agent and the Administrative Agent in writing if any material
portion of the Collateral is lost, damaged or destroyed;

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(o)       Tax Returns. As soon as
practicable and in any event within fifteen (15) days following the filing
thereof, copies of each federal income tax return filed by or on behalf of any Credit
Party;

(p)       Violations of Terrorism Laws. Promptly
(i) if any Credit Party obtains knowledge that any Credit Party or any
Person which owns, directly or indirectly, any Capital Securities of any Credit
Party, or any other holder at any time of any direct or indirect equitable,
legal or beneficial interest therein is the subject of any of the Terrorism
Laws, such Credit Party will notify Administrative Agent and (ii) upon the
request of any Lender, such Credit Party will provide any information such
Lender believes is reasonably necessary to be delivered to comply with the
Patriot Act;

(q)       Other Information.  (A) Promptly upon their becoming
available, copies of (i) all financial statements, reports, notices and
proxy statements sent or made available generally by Company to its security
holders acting in such capacity or by any Subsidiary of Company to its security
holders other than Company or another Subsidiary of Company, (ii) all
regular and periodic reports
and all registration statements and prospectuses, if any, filed by Company or
any of its Subsidiaries with any securities exchange or with the Securities and
Exchange Commission or any governmental or private regulatory authority, (iii) all
press releases and other statements made available generally by Company or any
of its Subsidiaries to the public concerning material developments in the
business of Company or any of its Subsidiaries, (B) promptly after
submission to any Governmental Authority, all documents and information
furnished to such Governmental Authority in connection with any investigation
of any Credit Party (other than any routine inquiry), (C) promptly upon
receipt thereof, copies of all financial reports submitted to any Credit Party
by its auditors in connection with any audit of the books thereof and (D) such
other information and data with respect to Company or any of its Subsidiaries
as from time to time may be reasonably requested by Administrative Agent.

                5.2          Existence. Except
as otherwise permitted under Section 6.8, each Credit Party will, and will
cause each of its Subsidiaries to, at all times preserve and keep in full force
and effect its existence and all rights and governmental authorizations,
qualifications, franchises, licenses and permits material to its business and
to conduct its business in each jurisdiction in which its business is
conducted; provided, no Subsidiary of Company shall be required to
preserve any such existence, right or governmental authorizations,
qualifications, franchise, licenses and permits if such Person shall determine
that the preservation thereof is no longer desirable in the conduct of the
business of such Person, and that the loss thereof is not disadvantageous in
any material respect to such Person or to Lenders.

                5.3          Payment of Taxes and
Claims. Each Credit Party will, and will cause each of its
Subsidiaries to, pay all Taxes imposed upon it or any of its properties or
assets or in respect of any of its income, businesses or franchises before any
penalty or fine accrues thereon, and all claims (including claims for labor,
services, materials and supplies) for sums that have become due and payable and
that by law have or may become a Lien upon any of its properties or assets,
prior to the time when any penalty or fine shall be incurred with respect
thereto; provided, no such Tax or claim need be paid if it is being
contested in good faith by appropriate proceedings promptly instituted and
diligently conducted, so long as (a) adequate reserve or other appropriate
provision, as shall be

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required in conformity with GAAP shall have been made
therefor, and (b) in the case of a Tax or claim which has or may become a
Lien against any of the Collateral, such contest proceedings conclusively
operate to stay the sale of any portion of the Collateral to satisfy such Tax
or claim. No Credit Party will, nor will it permit any of its Subsidiaries to,
file or consent to the filing of any consolidated income tax return with any
Person (other than Company or any of its Subsidiaries).

                5.4          Maintenance of
Properties. Each Credit Party will, and will cause each of its
Subsidiaries to, (a) maintain or cause to be maintained in good repair,
working order and condition, ordinary wear and tear excepted, all material
properties used or useful in the business of Company and its Subsidiaries and
from time to time will make or cause to be made all appropriate repairs,
renewals and replacements thereof and (b) comply at all times with the
provisions of all material leases to which it is a party as lessee or under
which it occupies property, so as to prevent any loss or forfeiture thereof or
thereunder.

                5.5          Insurance. Company
will maintain or cause to be maintained, with financially sound and reputable
insurers, (i) business interruption insurance reasonably satisfactory to
Administrative Agent, and (ii) casualty insurance, such public liability
insurance, third party property damage insurance with respect to liabilities,
losses or damage in respect of the assets, properties and businesses of Company
and its Subsidiaries as are customarily carried or maintained under similar
circumstances by Persons of established reputation of similar size and engaged
in similar businesses, in each case in such amounts (giving effect to self
insurance which comports with the requirements of this Section and
provided that adequate reserves therefor are maintained in accordance with
GAAP), with such deductibles, covering such risks and otherwise on such terms
and conditions as shall be customary for such Persons. Without limiting the
generality of the foregoing, Company will maintain or cause to be maintained (a) flood
insurance with respect to each Flood Hazard Property that is located in a
community that participates in the National Flood Insurance Program, in each
case in compliance with any applicable regulations of the Board of Governors of
the Federal Reserve System, and (b) replacement value casualty insurance
on the Collateral under such policies of insurance, with such insurance
companies, in such amounts, with such deductibles, and covering such risks as
are at all times carried or maintained under similar circumstances by Persons
of established reputation of similar size and engaged in similar businesses. Each
such policy of insurance shall (i) name Collateral Agent, on behalf of the
Secured Parties as an additional insured thereunder as its interests may
appear, and (ii) in the case of each casualty insurance policy, contain a
loss payable clause or endorsement, satisfactory in form and substance to
Collateral Agent, that names Collateral Agent, on behalf of Secured Parties, as
the loss payee thereunder and provides for at least thirty (30) days’ prior
written notice to Collateral Agent of any modification or cancellation of such
policy and that no act or default of Company or any other Person shall affect
the right of the Collateral Agent to recover under such policy or policies in
case of loss or damage.

                5.6          Books and Records;
Inspections. Each Credit Party will, and will cause each of its
Subsidiaries to, (a) keep adequate 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 and (b) permit any representatives
designated by Administrative Agent or any Lender (including employees of
Administrative Agent, any Lender or any consultants, accountants, lawyers and
appraisers retained by Administrative Agent) to visit

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and inspect any of the properties of any Credit Party
and any of its respective Subsidiaries, to inspect, copy and take extracts from
its and their financial and accounting records, and to discuss its and their
affairs, finances and accounts with its and their officers and independent
accountants, all upon reasonable notice and at such reasonable times during
normal business hours (so long as no Default or Event of Default has occurred
and is continuing) and as often as may reasonably be requested and by this
provision the Credit Parties authorize such accountants to discuss with
Administrative Agent and Lender and such representatives the affairs, finances
and accounts of Company and its Subsidiaries. The Credit Parties acknowledge
that Administrative Agent, after exercising its rights of inspection, may
prepare and distribute to the Lenders certain reports pertaining to the Credit
Parties’ assets for internal use by Administrative Agent and the Lenders. After
the occurrence and during the continuance of any Event of Default, each Credit
Party shall provide Administrative Agent and each Lender with access to its
customers and suppliers.

5.7          [Reserved].

5.8          Compliance with Laws. Each
Credit Party will comply, and shall cause each of its Subsidiaries, to comply
with the requirements of all applicable laws, rules, regulations and orders of
any Governmental Authority (including all Environmental Laws), except where
noncompliance could not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect. Each Credit Party shall take all
reasonable and necessary actions to ensure that no portion of the Loans will be
used, disbursed or distributed for any purpose, or to any Person, directly or
indirectly, in violation of any of the Terrorism Laws and shall take all
reasonable and necessary action to comply in all material respects with all
Terrorism Laws with respect thereto.

5.9          Environmental.

(a)       Environmental Disclosure. Company
will deliver to Administrative Agent and Lenders:

(i)   as soon as practicable
following receipt thereof, copies of all environmental audits, investigations,
analyses and reports of any kind or character, whether prepared by personnel of
Company or any of its Subsidiaries or by independent consultants, governmental
authorities or any other Persons, with respect to significant environmental
matters at any Facility or with respect to any Environmental Claims;

(ii)   promptly upon the
occurrence thereof, written notice describing in reasonable detail (1) any
Release required to be reported to any federal, state or local governmental or
regulatory agency under any applicable Environmental Laws, (2) any
remedial action taken by Company or any other Person in response to (A) any
Hazardous Materials Activities the existence of which has a reasonable
possibility of resulting in one or more Environmental Claims having,
individually or in the aggregate, a Material Adverse Effect, or (B) any
Environmental Claims that, individually or in the aggregate, have a reasonable
possibility of resulting in a Material Adverse Effect, and (3)  Company’s
discovery of any occurrence or condition on any real property adjoining or in
the vicinity of any Facility that could cause such Facility or any

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part thereof to be subject to any material restrictions on
the ownership, occupancy, transferability or use thereof under any
Environmental Laws;

(iii)   as soon as practicable
following the sending or receipt thereof by Company or any of its Subsidiaries,
a copy of any and all written communications with respect to (1) any
Environmental Claims that, individually or in the aggregate, have a reasonable
possibility of giving rise to a Material Adverse Effect, (2) any Release
required to be reported to any federal, state or local governmental or
regulatory agency, and (3) any request for information from any
governmental agency that suggests such agency is investigating whether Company
or any of its Subsidiaries may be potentially responsible for any Hazardous
Materials Activity;

(iv)   prompt written notice
describing in reasonable detail (1) any proposed acquisition of stock,
assets, or property by Company or any of its Subsidiaries that could reasonably
be expected to (A) expose Company or any of its Subsidiaries to, or result
in, Environmental Claims that could reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect or (B) affect
the ability of Company or any of its Subsidiaries to maintain in full force and
effect all material Governmental Authorizations required under any
Environmental Laws for their respective operations and (2) any proposed
action to be taken by Company or any of its Subsidiaries to modify current
operations in a manner that could reasonably be expected to subject Company or
any of its Subsidiaries to any additional material obligations or requirements
under any Environmental Laws; and

(v)   with reasonable promptness,
such other documents and information as from time to time may be reasonably
requested by Administrative Agent in relation to any matters disclosed pursuant
to this Section 5.9(a).

(b)   Hazardous
Materials Activities, Etc. Each Credit Party shall promptly take, and shall
cause each of its Subsidiaries promptly to take, any and all actions necessary
to (i) cure any violation of applicable Environmental Laws by such Credit
Party or its Subsidiaries that could reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect, and (ii) make
an appropriate response to any Environmental Claim against such Credit Party or
any of its Subsidiaries and discharge any obligations it may have to any Person
thereunder where failure to do so could reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

(c)   If
counsel to Company or any of its Subsidiaries reasonably determines (1) that
provision to Administrative Agent of a document otherwise required to be
provided pursuant to this Section 5.9 (or any other provision of this
Agreement or any other Credit Document relating to environmental matters) would
jeopardize an applicable attorney-client or work product privilege pertaining
to such document, then Company or its Subsidiary shall not be obligated to
deliver such document to Administrative Agent but shall provide Administrative
Agent with a notice identifying the author and recipient of such document and
generally describing the contents of the document. Upon request

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of
Administrative Agent, Company and its Subsidiaries shall take all reasonable
steps necessary to provide Administrative Agent with the factual information
contained in any such privileged document.

                5.10        Subsidiaries. In
the event that any Person becomes a Domestic Subsidiary of Company, Company
shall (a) concurrently with such Person becoming a Domestic Subsidiary
cause such Domestic Subsidiary to become a Guarantor hereunder and a Grantor
under the Security Agreement by executing and delivering to Administrative
Agent and Collateral Agent a Counterpart Agreement, and (b) take all such
actions and execute and deliver, or cause to be executed and delivered, all
such documents, instruments, agreements, and certificates as are required by
each Credit Party pursuant to Section 3.1. In the event that any Person
becomes a Foreign Subsidiary of Company, and the ownership interests of such
Foreign Subsidiary are owned by Company or by any Domestic Subsidiary thereof,
Company shall, or shall cause such Domestic Subsidiary to, deliver, all such
documents, instruments, agreements, and certificates as are required by each
Credit Party pursuant to Section 3.1, and Company shall take, or shall
cause such Domestic Subsidiary to take, all of the actions that Collateral
Agent shall reasonably request to create in favor of Collateral Agent a First
Priority Lien in favor of Collateral Agent, for the benefit of Secured Parties,
under the Security Agreement in sixty five percent (65%) of such ownership
interests. With respect to each such Subsidiary, Company shall promptly send to
Administrative Agent written notice setting forth with respect to such Person (i) the
date on which such Person became a Subsidiary of Company, and (ii) all of
the data required to be set forth in Schedules 4.1 and 4.2 with respect to all
Subsidiaries of Company; provided, such written notice shall be deemed
to supplement Schedule 4.1 and 4.2 for all purposes hereof.

                5.11        Additional Material
Real Estate Assets. In the event that any Credit Party acquires a
Material Real Estate Asset after the Closing Date or a Real Estate Asset owned
or leased on the Closing Date becomes a Material Real Estate Asset and such
interest has not otherwise been made subject to the Lien of the Collateral
Documents in favor of Collateral Agent, for the benefit of Secured Parties,
then such Credit Party, contemporaneously with acquiring such Material Real
Estate Asset, or promptly after a Real Estate Asset owned or leased on the
Closing Date becomes a Material Real Estate Asset, shall take all such actions
and execute and deliver, or cause to be executed and delivered, all such
mortgages, documents, instruments, agreements, opinions and certificates that
Collateral Agent shall reasonably request to create in favor of Collateral
Agent, for the benefit of Secured Parties, a valid and, subject to any filing
and/or recording referred to herein, perfected First Priority security interest
in such Material Real Estate Assets. Notwithstanding the foregoing, with
respect to any Leased Property which is or becomes a Material Real Estate
Asset, the applicable Credit Party’s obligation with respect thereto shall be
limited to using commercially reasonable efforts to cause the landlord of such
Leased Property to consent and execute and deliver such mortgages, documents,
instruments, agreements, opinions and certificates that Collateral Agent shall
reasonably request (including, if requested, a Landlord Collateral Access
Agreement and a Landlord Consent and Estoppel). In no event shall this
provision be deemed to require any Credit Party to take any action which would
cause a breach of the lease pertaining to any such Leased Property. In addition
to the foregoing, Company shall, at the request of Requisite Lenders, deliver,
from time to time, to Administrative Agent such appraisals as are required by
law or regulation of Real Estate Assets with respect to which Collateral Agent
has been granted a Lien.

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                5.12        Equitable Lien. If any
Credit Party or any of its Subsidiaries shall create or assume any Lien upon
any of its properties or assets, whether now owned or hereafter acquired, other
than Permitted Liens, it shall make or cause to be made effective provisions
whereby the Lender Obligations will be secured by such Lien equally and ratably
with any and all other Indebtedness secured thereby as long as any such Indebtedness
shall be so secured; provided, notwithstanding the foregoing, this covenant
shall not be construed as a consent by Requisite Lenders to the creation or
assumption of any such Lien not otherwise permitted hereby.

                5.13        [Reserved].

                5.14        Further Assurances. At
any time or from time to time upon the request of Administrative Agent, each
Credit Party will, at its expense, promptly execute, acknowledge and deliver
such further documents and do such other acts and things as Administrative
Agent or Collateral Agent may reasonably request in order to effect fully the
purposes of the Credit Documents, including providing Lenders with any
information reasonably requested pursuant to Section 10.22. In furtherance
and not in limitation of the foregoing, each Credit Party shall take such
actions as Administrative Agent or Collateral Agent may reasonably request from
time to time to ensure that the Lender Obligations are guarantied by the
Guarantors and are secured by substantially all of the assets of Company, and
its Subsidiaries and all of the outstanding Capital Stock of Company and its
Subsidiaries.

                5.15        Miscellaneous Business
Covenants. Unless otherwise consented to by Agents and Requisite
Lenders:

(a)       Non-Consolidation. Company will
and will cause each of its Subsidiaries to: 
(i)  maintain entity records and books of account separate from
those of any other entity which is an Affiliate of such entity; (ii) except
with respect to routine cash management and concentration, not commingle its
funds or assets with those of any other entity which is an Affiliate of such
entity; and (iii) generally maintain corporate separateness.

(b)       Cash Management Systems. Company
and its Subsidiaries shall maintain cash management systems reasonably
acceptable to Administrative Agent (it being understood that existing cash
management systems are acceptable to the Administrative Agent), including with
respect to blocked account arrangements in accordance with the Security
Agreement.

(c)       Conduct of Business. Company and
its Subsidiaries shall continue to engage in business of the same general types
as now conducted by them.

                5.16        Use of Proceeds. The
proceeds of the Loans will be used only for as set forth in Section 2.15. No
part of the proceeds of any Loan will be used, whether directly or indirectly,
for any purpose that entails a violation of any law, including Regulations T, U
and X of the Board of Governors of the Federal Reserve System.

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                5.17        Restructuring Plan.

(A) On or
prior to July 14, 2006, the Company shall deliver to the Administrative
Agent a draft proposed restructuring plan of the Company and its Subsidiaries
setting forth the following with respect to such plan:

(i)            a valuation of Company and its
Subsidiaries in the aggregate;

(ii)           transaction structure and steps;

(iii)                               timing;

(iv)                              capital
structure;

(v)                                 recovery
and nature of securities/value by class;

(vi)                              management
equity retention plan;

(vii)                           sources
and uses of funds; and

(viii)                        other
customary items; and

(B) on or
prior to August 15, 2006, Company and its Subsidiaries shall execute an
agreement on the terms of a comprehensive restructuring plan, which agreement
and plan shall be in form and substance acceptable to the Requisite Lenders in
their sole discretion (such an acceptable plan, a ”Restructuring Plan”).

                5.18        Post Closing Matters. Company
shall, and shall cause each of the Credit Parties to, satisfy the requirements
set forth on Schedule 5.18 on or before the date specified for such
requirement.

SECTION 6.         NEGATIVE
COVENANTS

Each Credit Party covenants and agrees that, so long as any Commitment
is in effect and until payment in full of all Lender Obligations, such Credit
Party shall perform, and shall cause each of its Subsidiaries to perform, all
covenants in this Section 6.

                6.1          Indebtedness. No
Credit Party shall, nor shall it permit any of its Subsidiaries to, directly or
indirectly, create, incur (including make any election to exchange any
Preferred Stock for Indebtedness), assume or guaranty, or otherwise become or
remain directly or indirectly liable with respect to any Indebtedness, except:

(a)       the Lender Obligations;

(b)       Indebtedness of any Guarantor Subsidiary
to Company or to any other Guarantor Subsidiary, or of Company to any Guarantor
Subsidiary; provided, (i) all such Indebtedness shall be evidenced
by promissory notes and all such notes shall be subject to a First Priority
Lien pursuant to the Security Agreement, (ii) all such Indebtedness shall
be unsecured, and (iii) any payment by any such Guarantor Subsidiary under
any guaranty of the Lender Obligations shall result in a pro tanto reduction of
the amount of any Indebtedness owed by such Subsidiary to Company or to any of
its Subsidiaries for whose benefit such payment is made;

(c)       [Reserved];

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(d)       [Reserved];

(e)       Indebtedness which may be deemed to exist
pursuant to any guaranties, performance, surety, statutory, appeal or similar
obligations incurred in the ordinary course of business;

(f)        Indebtedness in respect of netting
services, overdraft protections and otherwise in connection with customary
Deposit Accounts maintained by a Credit Party as part of its ordinary cash
management program;

(g)       Performance guaranties in the ordinary
course of business and consistent with historic practices of the obligations of
suppliers, customers, franchisees and licensees of Company and its
Subsidiaries;

(h)       Indebtedness in respect of any
refinancing on or prior to August 15, 2006 of the Existing Malara Facility
with a new credit facility from the Lenders and guarantees of any such
Indebtedness; and

(i)        Existing Indebtedness (and guarantees of
Existing Indebtedness) and any other Indebtedness described in Schedule 6.1,
but not any extensions, renewals or replacements of such Existing Indebtedness
or other Indebtedness.

                6.2          Liens. Except
for Permitted Liens, no Credit Party shall, nor shall it permit any of its
Subsidiaries to, directly or indirectly, create, incur, assume or permit to
exist any Lien on or with respect to any property or asset of any kind
(including any document or instrument in respect of goods or accounts
receivable and any Security) of Company or any of its Subsidiaries, whether now
owned or hereafter acquired, or any income or profits therefrom, or file or
permit the filing of, or permit to remain in effect, any financing statement or
other similar notice of any Lien with respect to any such property, asset,
income or profits under the UCC of any State or under any similar recording or
notice statute.

                6.3          No Further Negative
Pledges. No Credit Party shall, nor shall it permit any of its
Subsidiaries to, enter into any agreement prohibiting the creation or
assumption of any Lien upon any of its properties or assets, whether now owned
or hereafter acquired.

                6.4          Restricted Junior
Payments. No Credit Party shall, nor
shall it permit any of its Subsidiaries or Affiliates through any manner or
means or through any other Person to, directly or indirectly, declare, order,
pay, make or set apart, or agree to declare, order, pay, make or set apart, any
sum for any Restricted Junior Payment.

                6.5          Restrictions on
Subsidiary Distributions. Except as provided herein, no Credit Party
shall, nor shall it permit any of its Subsidiaries to, create or otherwise
cause or suffer to exist or become effective any consensual encumbrance or
restriction of any kind on the ability of any Subsidiary of Company to (a) pay
dividends or make any other distributions on any of such Subsidiary’s Capital
Stock owned by Company or any other Subsidiary of Company, (b) repay or
prepay any Indebtedness owed by such Subsidiary to Company or any other
Subsidiary of Company, (c) make loans or advances to Company or any other
Subsidiary of Company, or (d) transfer any of its property or assets to
Company or any other Subsidiary of Company other than 

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restrictions (i) by reason of customary
provisions restricting assignments, subletting or other transfers contained in
leases, licenses, joint venture agreements and similar agreements entered into
in the ordinary course of business, (ii) contained in agreements governing
Indebtedness permitted by Sections 6.1(h) or (i), (iii) customary
non-assignment provisions of any contract or any lease governing a leasehold
interest of any Subsidiary of the Company; (iv) contained in the
Collateral Documents; (v) on the transfer of assets subject to any Lien
permitted under this Agreement imposed by the holder of such Lien; (vi) imposed
by any agreement to sell assets or Capital Stock permitted under this Agreement
to any Person pending the closing of such sale; (vii) that restricts in a
customary manner the subletting, assignment or transfer of any property or
asset that is subject to a lease, license or similar contract, or the
assignment or transfer of any such lease, license or other contract; (viii) on
cash or other deposits or net worth imposed by customers under contracts
entered into in the ordinary course of business; or (ix) that are or were
created by virtue of any transfer of, agreement to transfer or option or right
with respect to any property, assets or Capital Stock not otherwise prohibited
under this Agreement. No Credit Party shall, nor shall it permit its
Subsidiaries to, enter into any Contractual Obligation which would prohibit a
Subsidiary of Company from becoming a Credit Party.

                6.6          Investments. No
Credit Party shall, nor shall it permit any of its Subsidiaries to, directly or
indirectly, make or own any Investment in any Person, including without
limitation any Joint Venture, except:

(a)       Investments in Cash and Cash Equivalents;

(b)       equity Investments owned as of the
Closing Date in any Subsidiary and Investments made after the Closing Date in
any wholly owned Subsidiaries of Company;

(c)       Investments (i) in any Securities
received in satisfaction or partial satisfaction thereof from financially
troubled account debtors, and (ii) constituting deposits, prepayments and
other credits to suppliers made in the ordinary course of business consistent
with the past practices of Company and its Subsidiaries;

(d)       intercompany loans to the extent
permitted under Section 6.1(b);

(e)       Consolidated Capital Expenditures
permitted by Section 6.7(e);

(f)        Investments in any Credit Party by any
Subsidiary of Company;

(g)       Investments in prepaid expenses,
negotiable instruments held for collection and lease, utility, workers’
compensation and performance and other similar deposits and prepaid expenses
made in the ordinary course of business;

(h)       Investments described in Schedule 6.6;
and

(i)        the initial deposit by the Company of
$1.0 million in the Trustee Reserve Fund as contemplated pursuant to Section 12.9
of the Indenture.

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Notwithstanding the foregoing, in no event shall any
Credit Party make any Investment which results in or facilitates in any manner
any Restricted Junior Payment not otherwise permitted under the terms of Section 6.4.
Notwithstanding the foregoing, no Investment otherwise permitted by clause (d) shall
be permitted if any Default or Event of Default has occurred and is continuing
or would result therefrom.

                6.7          Financial Covenants.

(a)       [Reserved].

(b)       Minimum Broadcast Cash Flow. Company
shall not permit the cumulative amount of Broadcast Cash Flow less corporate
expenses (excluding restructuring and litigation expenses), from June 1,
2006 through the end of each of July, August, September and October,
respectively, to be less than the amount for such period set forth on Schedule
6.7(b).

(c)       Maximum Consolidated Capital
Expenditures. Company shall not, and shall not permit its Subsidiaries to,
make or incur Consolidated Capital Expenditures, during the term of this
Agreement in excess of $4,038,000.

                6.8          Fundamental Changes;
Disposition of Assets; Acquisitions. No Credit Party shall, nor
shall it permit any of its Subsidiaries to, enter into any transaction of
merger or consolidation, or liquidate, wind up or dissolve itself (or suffer
any liquidation or dissolution), or convey, sell, lease or sub lease (as lessor
or sublessor), exchange, transfer or otherwise dispose of, in one transaction
or a series of transactions, all or any part of its business, assets or
property of any kind whatsoever, whether real, personal or mixed and whether
tangible or intangible, whether now owned or hereafter acquired, or acquire by
purchase or otherwise (other than purchases or other acquisitions of inventory,
materials and equipment and Capital Expenditures in the ordinary course of
business) the business, property or fixed assets of, or stock or other evidence
of beneficial ownership of, any Person or any division or line of business or
other business unit of any Person, except:

(a)       any Subsidiary of Company may be merged
with or into Company or any Guarantor Subsidiary, or be liquidated, wound up or
dissolved, or all or any part of its business, property or assets may be
conveyed, sold, leased, transferred or otherwise disposed of, in one
transaction or a series of transactions, to Company or any Guarantor
Subsidiary; provided, in the case of such a merger, Company or such
Guarantor Subsidiary, as applicable, shall be the continuing or surviving
Person;

(b)       sales or other dispositions of assets (i) that
do not constitute Asset Sales or (ii) made to Company or any Guarantor
Subsidiary;

(c)       the Binghamton Acquisition;

(d)       disposals of obsolete or worn out
property, the proceeds of which are less than $100,000 and
when aggregated with all other dispositions made pursuant to this clause (d) from
the Closing Date to the date of determination are less than $250,000;
provided that the consideration received for such assets shall be in an
amount at least equal to the fair

 

 75

 

 

market
value thereof (determined in good faith by the board of directors of Company
(or similar governing body));

(e)       the WB Dispositions;

(f)        subject to Section 2.13(a), up to
two (2) Special Acquisitions; and

(g)       Investments made in accordance with Section 6.6;
and

(h)       if Silver Point and/or its Affiliates
and/or Related Funds do not have or hold Tranche A Term Loan Exposure and
Tranche B Term Loan Exposure in the aggregate representing at least fifty
percent (50%) of the sum of (i) the aggregate Tranche A Term Loan Exposure
of all Lenders and (ii) the aggregate Tranche B Term Loan Exposure of all
Lenders, the limitation set forth in this Section 6.8 with respect to
acquisitions will not apply to acquisitions of assets and properties that will
be used in the business of the Company and its Subsidiaries as existing on the
Closing Date or in businesses reasonably related thereto or a Permitted
Business Acquisition; provided that in the case of any acquisition
(including any Permitted Business Acquisition) permitted by this clause (h), (A) the
total acquisition consideration (including related fees and expenses and
assumed funded debt but excluding any other assumed liabilities) of the
acquired business is not in excess of nine times the increase in Broadcast Cash
Flow of the Company resulting from such acquisition, such increase in Broadcast
Cash Flow to be determined by the Company in good faith on a pro forma basis
for the most recent twelve month period for which unaudited financial
statements are available after giving effect to incremental revenue or expense
and cost reductions determined in good faith by the Company to be reasonably
achievable during the four Fiscal Quarter period succeeding such acquisition,
such calculation to be reasonably acceptable to Administrative Agent, (B) the
primary purpose of such acquisition is to acquire, and there is acquired, a
television station with a Big 4 (ABC, CBS, NBC or Fox) network affiliation
agreement in place or the creation (through ownership by the Company and its
Subsidiaries) of a duopoly in a market and (C) that the Company shall use
all reasonable best efforts to promptly dispose of any other asserts acquired
in such acquisition or Permitted Business Acquisition.

                6.9          Disposal of
Subsidiary Interests. Except for any sale of all of its interests in
the Capital Stock of any of its Subsidiaries in compliance with the provisions
of Section 6.8, no Credit Party shall, nor shall it permit any of its
Subsidiaries to, (a) directly or indirectly sell, assign, pledge or
otherwise encumber or dispose of any Capital Stock of any of its Subsidiaries,
except to qualify directors if required by applicable law; or (b) directly
or indirectly to sell, assign, pledge or otherwise encumber or dispose of any
Capital Stock of any of its Subsidiaries, except to another Credit Party
(subject to the restrictions on such disposition otherwise imposed hereunder),
or to qualify directors if required by applicable law.

                6.10        Sales and Lease Backs.
No Credit Party shall, nor shall it permit any of its Subsidiaries
to, directly or indirectly, become or remain liable as lessee or as a guarantor
or other surety with respect to any lease of any property (whether real,
personal or mixed), whether now owned or hereafter acquired, which such Credit
Party (a) has sold or transferred or is to sell or to transfer to any
other Person (other than Company or any of its Subsidiaries) or (b) intends
to use 

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for substantially the same purpose as any other
property which has been or is to be sold or transferred by such Credit Party to
any Person (other than Company or any of its Subsidiaries) in connection with
such lease.

                6.11        Transactions with
Shareholders and Affiliates. No Credit Party shall, nor shall it
permit any of its Subsidiaries to, directly or indirectly, enter into or permit
to exist any transaction (including the purchase, sale, lease or exchange of
any property or the rendering of any service) with any holder of five percent
(5%) or more of any class of Capital Stock of Company or any of its Subsidiaries
or with any Affiliate of Company or of any such holder, in each case, without
the prior written consent of the Administrative Agent; provided, the
foregoing restriction shall not apply to (a) any transaction between
Company and any Guarantor Subsidiary; (b) reasonable and customary fees
paid to members of the board of directors (or similar governing body) of
Company and its Subsidiaries; (c) compensation arrangements for officers
and other employees of Company and its Subsidiaries entered into in the
ordinary course of business; and (d) transactions described in Schedule
6.11.

                6.12        Conduct of Business. From
and after the Closing Date, no Credit Party shall, nor shall it permit any of
its Subsidiaries to, engage in any business other than the businesses engaged
in by such Credit Party on the Closing Date .

                6.13        [Reserved].

                6.14        Amendments or Waivers
of Certain Related Agreements. No Credit Party shall nor shall it
permit any of its Subsidiaries to, agree to any amendment, restatement,
supplement or other modification to, or waiver of, any of its rights under any
Related Agreement after the Closing Date, without obtaining the prior written
consent of Administrative Agent and Requisite Lenders; provided that no
prior written consent shall be needed for any amendment, restatement,
supplement or other modification to, or waiver of, the Binghamton Acquisition
Agreement that is not adverse to the Company, the Administrative Agent or the
Lenders. The Credit Parties shall promptly give notice to the Administrative
Agent of any amendment, restatement, supplement, modification or waiver
permitted by the proviso of the foregoing sentence.

                6.15        [Reserved].

                6.16        Fiscal Year. No
Credit Party shall, nor shall it permit any of its Subsidiaries to change its
Fiscal Year end from December 31st.

                6.17        Deposit Accounts. Other
than as permitted by the Security Agreement, (i) no Credit Party shall
establish or maintain a Deposit Account that is not subject to a Deposit
Account Control Agreement (as defined in the Security Agreement) and (ii) no
Credit Party will deposit proceeds in a Deposit Account which is not subject to
a Deposit Account Control Agreement as provided in the Security Agreement.

                6.18        Amendments to Certain
Agreements. No Credit Party shall (a) amend or permit any
amendments to any Credit Party’s Organizational Documents; (b) amend or
permit any amendments to, or terminate or waive any provision of, any Material
Contract if such amendment, termination, or waiver would be adverse to
Administrative Agent or the Lenders; or 

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(c) amend or permit any amendments or
modifications of any agreement or instrument evidencing or governing the terms
of the Preferred Stock.

                6.19        Prepayments of Certain
Indebtedness. No Credit Party shall, directly or indirectly, voluntarily
purchase, redeem, defease or prepay any principal of, premium, if any, interest
or other amount payable in respect of any Indebtedness prior to its scheduled
maturity, other than the Lender Obligations or intercompany Indebtedness
permitted by this Agreement.

                6.20        Issuance of Capital
Stock. No Credit Party shall, nor shall it permit any of its
Subsidiaries to, issue or sell or enter into any agreement or arrangement for
the issuance and sale of any shares of its Capital Stock, any securities
convertible into or exchangeable for its Capital Stock, or any warrants,
options or other rights for the purchase or acquisition of shares of its
Capital Stock, except:

(a) as provided in Section 11.1;

(b) the issuance of
Preferred Stock by Company;

(c) the issuance of
any new class of preferred stock by Company; provided that such
preferred stock (i) matures no earlier than December 31, 2011, (ii) is
non-cash pay until at least December 31, 2011, (iii) is not
convertible or exchangeable into any other security or for any value and (iv) is
not Voting Stock and does not have any equity voting rights, control rights,
rights to elect directors or similar rights except for voting rights as may be
otherwise required by the mandatory provisions of applicable law;

(d)  the issuance of
any common stock by a Subsidiary of Company to the Company; and

(e) the issuance of
any common stock by Company; provided that such common stock is not
Voting Stock and does not have any equity voting rights, control rights, rights
to elect directors or similar rights except for voting rights as may be
otherwise required by the mandatory provisions of applicable law.

SECTION 7.         GUARANTY

                7.1          Guaranty of the
Lender Obligations. Subject to the provisions of Section 7.2,
the Guarantors jointly and severally hereby irrevocably and unconditionally
guaranty to Administrative Agent for the ratable benefit of the Beneficiaries
the due and punctual payment in full of all Lender Obligations when the same
shall become due, whether at stated maturity, by required prepayment,
declaration, acceleration, demand or otherwise (including amounts that would
become due but for the operation of the automatic stay under Section 362(a) of
the Bankruptcy Code, 11 U.S.C. §362(a)) (collectively, the “Guaranteed Obligations”).

                7.2          Contribution by
Guarantors. All Guarantors desire to allocate among themselves
(collectively, the “Contributing Guarantors”),
in a fair and equitable manner, their obligations arising under this Guaranty. Accordingly,
in the event any payment or distribution is made on any date by a Guarantor (a “Funding Guarantor”) under this Guaranty such that its 

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Aggregate Payments exceeds its Fair Share as of such
date, such Funding Guarantor shall be entitled to a contribution from each of
the other Contributing Guarantors in an amount sufficient to cause each
Contributing Guarantor’s Aggregate Payments to equal its Fair Share as of such
date. “Fair Share” means, with respect to a
Contributing Guarantor as of any date of determination, an amount equal to (a) the
ratio of (i) the Fair Share Contribution Amount with respect to such
Contributing Guarantor, to (ii) the aggregate of the Fair Share
Contribution Amounts with respect to all Contributing Guarantors multiplied by,
(b) the aggregate amount paid or distributed on or before such date by all
Funding Guarantors under this Guaranty in respect of the obligations Guaranteed.
“Fair Share Contribution Amount” means,
with respect to a Contributing Guarantor as of any date of determination, the
maximum aggregate amount of the obligations of such Contributing Guarantor
under this Guaranty that would not render its obligations hereunder or
thereunder subject to avoidance as a fraudulent transfer or conveyance under Section 548
of the Bankruptcy Code or any comparable applicable provisions of state law;
provided, solely for purposes of calculating the Fair Share Contribution Amount
with respect to any Contributing Guarantor for purposes of this Section 7.2,
any assets or liabilities of such Contributing Guarantor arising by virtue of
any rights to subrogation, reimbursement or indemnification or any rights to or
obligations of contribution hereunder shall not be considered as assets or
liabilities of such Contributing Guarantor. “Aggregate
Payments” means, with respect to a Contributing Guarantor as of any
date of determination, an amount equal to (1) the aggregate amount of all
payments and distributions made on or before such date by such Contributing
Guarantor in respect of this Guaranty (including in respect of this Section 7.2),
minus (2) the aggregate amount of all payments received on or before such
date by such Contributing Guarantor from the other Contributing Guarantors as
contributions under this Section 7.2. The amounts payable as contributions
hereunder shall be determined as of the date on which the related payment or
distribution is made by the applicable Funding Guarantor. The allocation among
Contributing Guarantors of their obligations as set forth in this Section 7.2
shall not be construed in any way to limit the liability of any Contributing
Guarantor hereunder. Each Guarantor is a third party beneficiary to the
contribution agreement set forth in this Section 7.2.

                7.3          Payment by Guarantors.
Subject to Section 7.2, the Guarantors hereby jointly and severally agree,
in furtherance of the foregoing and not in limitation of any other right which
any Beneficiary may have at law or in equity against any Guarantor by virtue
hereof, that upon the failure of Company to pay any of the Guaranteed
Obligations when and as the same shall become due, whether at stated maturity,
by required prepayment, declaration, acceleration, demand or otherwise
(including amounts that would become due but for the operation of the automatic
stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. §362(a)),
Guarantors will upon demand pay, or cause to be paid, in Cash, to
Administrative Agent for the ratable benefit of Beneficiaries, an amount equal
to the sum of the unpaid principal amount of all Guaranteed Obligations then
due as aforesaid, accrued and unpaid interest on such Guaranteed Obligations
(including interest which, but for Company’s becoming the subject of a case
under the Bankruptcy Code, would have accrued on such Guaranteed Obligations,
whether or not a claim is allowed against Company for such interest in the
related bankruptcy case) and all other Guaranteed Obligations then owed to
Beneficiaries as aforesaid.

                7.4          Liability of
Guarantors Absolute. Each Guarantor agrees that its obligations
hereunder are irrevocable, absolute, independent and unconditional and shall
not be affected by 

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any circumstance which constitutes a legal or
equitable discharge of a guarantor or surety other than payment in full of the
Guaranteed Obligations. In furtherance of the foregoing and without limiting
the generality thereof, each Guarantor agrees as follows:

(a)       this Guaranty is a guaranty of payment
when due and not of collectability. This Guaranty is a primary obligation of
each Guarantor and not merely a contract of surety;

(b)       Administrative Agent may enforce this
Guaranty upon the occurrence of an Event of Default notwithstanding the
existence of any dispute between Company and any Beneficiary with respect to
the existence of such Event of Default;

(c)       the obligations of each Guarantor
hereunder are independent of the obligations of Company and the obligations of
any other guarantor (including any other Guarantor) of the obligations of
Company, and a separate action or actions may be brought and prosecuted against
such Guarantor whether or not any action is brought against Company or any of
such other guarantors and whether or not Company is joined in any such action
or actions;

(d)       payment by any Guarantor of a portion,
but not all, of the Guaranteed Obligations shall in no way limit, affect,
modify or abridge any Guarantor’s liability for any portion of the Guaranteed
Obligations which has not been paid; and without limiting the generality of the
foregoing, if Administrative Agent is awarded a judgment in any suit brought to
enforce any Guarantor’s covenant to pay a portion of the Guaranteed
Obligations, such judgment shall not be deemed to release such Guarantor from
its covenant to pay the portion of the Guaranteed Obligations that is not the
subject of such suit, and such judgment shall not, except to the extent
satisfied by such Guarantor, limit, affect, modify or abridge any other
Guarantor’s liability hereunder in respect of the Guaranteed Obligations;

(e)       any Beneficiary, upon such terms as it
deems appropriate, without notice or demand and without affecting the validity
or enforceability hereof or giving rise to any reduction, limitation,
impairment, discharge or termination of any Guarantor’s liability hereunder,
from time to time may (i) renew, extend, accelerate, increase the rate of
interest on, or otherwise change the time, place, manner or terms of payment of
the Guaranteed Obligations; (ii) settle, compromise, release or discharge,
or accept or refuse any offer of performance with respect to, or substitutions
for, the Guaranteed Obligations or any agreement relating thereto and/or
subordinate the payment of the same to the payment of any other obligations; (iii) request
and accept other guaranties of the Guaranteed Obligations and take and hold
security for the payment hereof or the Guaranteed Obligations; (iv) release,
surrender, exchange, substitute, compromise, settle, rescind, waive, alter,
subordinate or modify, with or without consideration, any security for payment
of the Guaranteed Obligations, any other guaranties of the Guaranteed
Obligations, or any other obligation of any Person (including any other
Guarantor) with respect to the Guaranteed Obligations; (v) enforce and
apply any security now or hereafter held by or for the benefit of such
Beneficiary in respect hereof or the Guaranteed Obligations and direct the
order or manner of sale thereof, or exercise any other right or remedy that
such Beneficiary may have against any such security, in each case as such
Beneficiary in its discretion may determine consistent herewith or any
applicable security agreement, including foreclosure on any such security
pursuant to one or more judicial or nonjudicial sales, whether or not every
aspect of any 

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such sale is commercially reasonable, and even though such
action operates to impair or extinguish any right of reimbursement or
subrogation or other right or remedy of any Guarantor against Company or any
security for the Guaranteed Obligations; and (vi) exercise any other
rights available to it under the Credit Documents; and

(f)        this Guaranty and the obligations of
Guarantors hereunder shall be valid and enforceable and shall not be subject to
any reduction, limitation, impairment, discharge or termination for any reason
(other than payment in full of the Guaranteed Obligations), including the
occurrence of any of the following, whether or not any Guarantor shall have had
notice or knowledge of any of them: (i) any failure or omission to assert
or enforce or agreement or election not to assert or enforce, or the stay or
enjoining, by order of court, by operation of law or otherwise, of the exercise
or enforcement of, any claim or demand or any right, power or remedy (whether
arising under the Credit Documents, at law, in equity or otherwise) with
respect to the Guaranteed Obligations or any agreement relating thereto, or
with respect to any other guaranty of or security for the payment of the
Guaranteed Obligations; (ii) any rescission, waiver, amendment or
modification of, or any consent to departure from, any of the terms or provisions
(including provisions relating to events of default) hereof, any of the other
Credit Documents or any agreement or instrument executed pursuant thereto, or
of any other guaranty or security for the Guaranteed Obligations, in each case
whether or not in accordance with the terms hereof or such Credit Document or
any agreement relating to such other guaranty or security; (iii) the
Guaranteed Obligations, or any agreement relating thereto, at any time being
found to be illegal, invalid or unenforceable in any respect; (iv) the
application of payments received from any source (other than payments received
pursuant to the other Credit Documents or from the proceeds of any security for
the Guaranteed Obligations, except to the extent such security also serves as
collateral for indebtedness other than the Guaranteed Obligations) to the
payment of indebtedness other than the Guaranteed Obligations, even though any
Beneficiary might have elected to apply such payment to any part or all of the
Guaranteed Obligations; (v) any Beneficiary’s consent to the change,
reorganization or termination of the corporate structure or existence of
Company or any of its Subsidiaries and to any corresponding restructuring of
the Guaranteed Obligations; (vi) any failure to perfect or continue
perfection of a security interest in any collateral which secures any of the
Guaranteed Obligations; (vii) any defenses, set offs or counterclaims
which Company may allege or assert against any Beneficiary in respect of the
Guaranteed Obligations, including failure of consideration, breach of warranty,
payment, statute of frauds, statute of limitations, accord and satisfaction and
usury; and (viii) any other act or thing or omission, or delay to do any
other act or thing, which may or might in any manner or to any extent vary the
risk of any Guarantor as an obligor in respect of the Guaranteed Obligations.

                7.5          Waivers by Guarantors.
Each Guarantor hereby waives, for the benefit of Beneficiaries: (a) any
right to require any Beneficiary, as a condition of payment or performance by
such Guarantor, to (i) proceed against Company, any other guarantor
(including any other Guarantor) of the Guaranteed Obligations or any other
Person, (ii) proceed against or exhaust any security held from Company,
any such other guarantor or any other Person, (iii) proceed against or
have resort to any balance of any Deposit Account or credit on the books of any
Beneficiary in favor of Company or any other Person, or (iv) pursue any
other remedy in the power of any Beneficiary whatsoever; (b) any defense
arising by reason of the incapacity, lack of authority or any disability or
other defense of Company or any other Guarantor including any 

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defense based on or arising out of the lack of
validity or the unenforceability of the Guaranteed Obligations or any agreement
or instrument relating thereto or by reason of the cessation of the liability
of Company or any other Guarantor from any cause other than payment in full of
the Guaranteed Obligations; (c) any defense based upon any statute or rule of
law which provides that the obligation of a surety must be neither larger in
amount nor in other respects more burdensome than that of the principal; (d) any
defense based upon any Beneficiary’s errors or omissions in the administration
of the Guaranteed Obligations, except behavior which amounts to bad faith; (e) (i) any
principles or provisions of law, statutory or otherwise, which are or might be
in conflict with the terms hereof and any legal or equitable discharge of such
Guarantor’s obligations hereunder, (ii) the benefit of any statute of
limitations affecting such Guarantor’s liability hereunder or the enforcement
hereof, (iii) any rights to set offs, recoupments and counterclaims, and (iv) promptness,
diligence and any requirement that any Beneficiary protect, secure, perfect or
insure any security interest or lien or any property subject thereto; (f) notices,
demands, presentments, protests, notices of protest, notices of dishonor and
notices of any action or inaction, including acceptance hereof, notices of
default hereunder or under any agreement or instrument related thereto, notices
of any renewal, extension or modification of the Guaranteed Obligations or any
agreement related thereto, notices of any extension of credit to Company and
notices of any of the matters referred to in Section 7.4 and any right to
consent to any thereof; and (g) any defenses or benefits that may be
derived from or afforded by law which limit the liability of or exonerate
guarantors or sureties, or which may conflict with the terms hereof.

                7.6          Guarantors’ Rights of
Subrogation, Contribution, etc. Until the Guaranteed Obligations
shall have been indefeasibly paid in full, each Guarantor hereby waives any
claim, right or remedy, direct or indirect, that such Guarantor now has or may
hereafter have against Company or any other Guarantor or any of its assets in
connection with this Guaranty or the performance by such Guarantor of its
obligations hereunder, in each case whether such claim, right or remedy arises
in equity, under contract, by statute, under common law or otherwise and
including without limitation (a) any right of subrogation, reimbursement
or indemnification that such Guarantor now has or may hereafter have against
Company with respect to the Guaranteed Obligations, (b) any right to
enforce, or to participate in, any claim, right or remedy that any Beneficiary
now has or may hereafter have against Company, and (c) any benefit of, and
any right to participate in, any collateral or security now or hereafter held
by any Beneficiary. In addition, until the Guaranteed Obligations shall have
been indefeasibly paid in full, each Guarantor shall withhold exercise of any
right of contribution such Guarantor may have against any other guarantor (including
any other Guarantor) of the Guaranteed Obligations, including any such right of
contribution as contemplated by Section 7.2. Each Guarantor further agrees
that, to the extent the waiver or agreement to withhold the exercise of its
rights of subrogation, reimbursement, indemnification and contribution as set
forth herein is found by a court of competent jurisdiction to be void or
voidable for any reason, any rights of subrogation, reimbursement or
indemnification such Guarantor may have against Company or against any
collateral or security, and any rights of contribution such Guarantor may have
against any such other guarantor, shall be junior and subordinate to any rights
any Beneficiary may have against Company, to all right, title and interest any
Beneficiary may have in any such collateral or security, and to any right any
Beneficiary may have against such other guarantor. If any amount shall be paid
to any Guarantor on account of any such subrogation, reimbursement,
indemnification or contribution rights at any time when all Guaranteed
Obligations shall not have been finally and indefeasibly paid in full, such
amount shall be held in trust for 

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Administrative Agent on behalf of Beneficiaries and
shall forthwith be paid over to Administrative Agent for the benefit of
Beneficiaries to be credited and applied against the Guaranteed Obligations,
whether matured or unmatured, in accordance with the terms hereof.

                7.7          Subordination of
Other Obligations. Any Indebtedness of Company or any Guarantor now
or hereafter held by any Guarantor (the “Obligee Guarantor”)
is hereby subordinated in right of payment to the Guaranteed Obligations, and
any such indebtedness collected or received by the Obligee Guarantor after an
Event of Default has occurred and is continuing shall be held in trust for
Administrative Agent on behalf of Beneficiaries and shall forthwith be paid
over to Administrative Agent for the benefit of Beneficiaries to be credited
and applied against the Guaranteed Obligations but without affecting, impairing
or limiting in any manner the liability of the Obligee Guarantor under any
other provision hereof.

                7.8          Continuing Guaranty.
This Guaranty is a continuing guaranty and shall remain in effect until all of
the Guaranteed Obligations shall have been indefeasibly paid in full. Each
Guarantor hereby irrevocably waives any right to revoke this Guaranty as to
future transactions giving rise to any Guaranteed Obligations.

                7.9          Authority of
Guarantors or Company. It is not necessary for any Beneficiary to inquire
into the capacity or powers of any Guarantor or Company or the officers,
directors or any agents acting or purporting to act on behalf of any of them.

                7.10        Financial Condition of
Company. Any Credit Extension may be made to Company or continued from
time to time, without notice to or authorization from any Guarantor regardless
of the financial or other condition of Company at the time of any such grant or
continuation. No Beneficiary shall have any obligation to disclose or discuss
with any Guarantor its assessment, or any Guarantor’s assessment, of the
financial condition of Company. Each Guarantor has adequate means to obtain
information from Company on a continuing basis concerning the financial
condition of Company and its ability to perform its obligations under the
Credit Documents, and each Guarantor assumes the responsibility for being and
keeping informed of the financial condition of Company and of all circumstances
bearing upon the risk of nonpayment of the Guaranteed Obligations. Each Guarantor
hereby waives and relinquishes any duty on the part of any Beneficiary to
disclose any matter, fact or thing relating to the business, operations or
conditions of Company now known or hereafter known by any Beneficiary.

                7.11        Bankruptcy, etc.

(a)       So long as any Guaranteed Obligations
remain outstanding, no Guarantor shall, without the prior written consent of
Administrative Agent acting pursuant to the instructions of Requisite Lenders,
commence or join with any other Person in commencing any bankruptcy,
reorganization or insolvency case or proceeding of or against Company or any
other Guarantor or admit in writing or in any legal proceeding that it is
unable to pay its debts as they become due. The obligations of Guarantors
hereunder shall not be reduced, limited, impaired, discharged, deferred,
suspended or terminated by any case or proceeding, voluntary or involuntary,
involving the bankruptcy, insolvency, receivership, reorganization, liquidation
or arrangement of Company or any 

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other Guarantor or by any defense which Company or any other
Guarantor may have by reason of the order, decree or decision of any court or
administrative body resulting from any such proceeding.

(b)       Each Guarantor acknowledges and agrees
that any interest on any portion of the Guaranteed Obligations which accrues
after the commencement of any case or proceeding referred to in clause (a) above
(or, if interest on any portion of the Guaranteed Obligations ceases to accrue
by operation of law by reason of the commencement of such case or proceeding,
such interest as would have accrued on such portion of the Guaranteed
Obligations if such case or proceeding had not been commenced) shall be
included in the Guaranteed Obligations because it is the intention of
Guarantors and Beneficiaries that the Guaranteed Obligations which are
guaranteed by Guarantors pursuant hereto should be determined without regard to
any rule of law or order which may relieve Company of any portion of such
Guaranteed Obligations. Guarantors will permit any trustee in bankruptcy,
receiver, debtor in possession, assignee for the benefit of creditors or
similar person to pay Administrative Agent, or allow the claim of
Administrative Agent in respect of, any such interest accruing after the date
on which such case or proceeding is commenced.

(c)       In the event that all or any portion of
the Guaranteed Obligations are paid by Company, the obligations of Guarantors
hereunder shall continue and remain in full force and effect or be reinstated,
as the case may be, in the event that all or any part of such payment(s) are
rescinded or recovered directly or indirectly from any Beneficiary as a
preference, fraudulent transfer or otherwise, and any such payments which are
so rescinded or recovered shall constitute Guaranteed Obligations for all
purposes hereunder.

                7.12        Discharge of Guaranty
Upon Sale of Guarantor. If all of the Capital Stock of any Guarantor
or any of its successors in interest hereunder shall be sold or otherwise
disposed of (including by merger or consolidation) in accordance with the terms
and conditions hereof, the Guaranty of such Guarantor or such successor in
interest, as the case may be, hereunder shall automatically be discharged and
released without any further action by any Beneficiary or any other Person
effective as of the time of such Asset Sale.

                7.13        Taxes. The
provision of Section 2.19 shall apply, mutatis  mutandi, to
the Guarantors and payments thereby.

SECTION 8.         EVENTS
OF DEFAULT

                8.1          Events of Default.
If any one or more of the following conditions or events shall occur:

(a)       Failure to Make Payments When Due.
Failure by Company to pay (i) when due the principal of and premium, if
any, on any Loan whether at stated maturity, by acceleration or otherwise; (ii) when
due any installment of principal of any Loan, by notice of voluntary
prepayment, by mandatory prepayment or otherwise; or (iii) within three (3) days
when due any interest on any Loan or any fee or any other amount due hereunder.

(b)       Default in Other Agreements.
(i) Failure of any Credit Party to pay when due any principal of or
interest on or any other amount payable in respect of one or more 

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items of Indebtedness (other than Indebtedness
referred to in Section 8.1(a)) if the aggregate principal amount of such
Indebtedness, together with any other Indebtedness in default, is $2,000,000 or
more; (ii) breach or default by any Credit Party or any of their
respective Subsidiaries with respect to any other material term of (1) one
or more items of Indebtedness in the individual or aggregate principal amounts
referred to in clause (i) above, or (2) any loan agreement, mortgage,
indenture or other agreement or instrument relating to such item(s) of
Indebtedness if the effect of such breach or default is to cause, or to permit
the holder or holders of that Indebtedness (or a trustee on behalf of such
holder or holders), to cause, that Indebtedness to become or be declared due
and payable (or subject to a compulsory repurchase or redeemable) or to require
the prepayment, redemption, repurchase or defeasance of, or to cause Company or
any of its Subsidiaries to make any offer to prepay, redeem, repurchase or
defease such Indebtedness, prior to its stated maturity or the stated maturity
of any underlying obligation, as the case may be; or (iii) default in the
performance of or compliance with any other term contained in any loan
agreement, mortgage, indenture, other agreement or instrument and such default
shall not have been remedied or waived within fifteen (15) days and could
reasonably be expected to have a Material Adverse Effect; or

(c)       Breach of Certain Covenants. Failure
of any Credit Party to perform or comply with any term or condition contained
in Section 2.5, Section 5.1, Section 5.2, Section 5.17, Section 5.18
or Section 6; or

(d)       Breach of Representations, etc. Any
representation, warranty, certification or other statement made or deemed made
by any Credit Party in any Credit Document or Related Agreement or in any
statement or certificate at any time given by any Credit Party or any of its
Subsidiaries in writing pursuant hereto or thereto or in connection herewith or
therewith shall be false in any material respect as of the date made or deemed
made; or

(e)       Other Defaults Under Credit Documents.
Any Credit Party shall default in the performance of or compliance with any
term contained herein or any of the other Credit Documents, other than any such
term referred to in any other Section of this Section 8.1, and such
default shall not have been remedied or waived within fifteen (15) days; or

(f)        Involuntary Bankruptcy; Appointment
of Receiver, etc. (i) A court of competent jurisdiction shall enter a
decree or order for relief in respect of the Company or any of its Subsidiaries
in an involuntary case under the Bankruptcy Code or under any other applicable
bankruptcy, insolvency or similar law now or hereafter in effect, which decree
or order is not stayed; or any other similar relief shall be granted under any
applicable federal or state law; or (ii) an involuntary case shall be
commenced against the Company or any of its Subsidiaries under the Bankruptcy
Code or under any other applicable bankruptcy, insolvency or similar law now or
hereafter in effect; or a decree or order of a court having jurisdiction in the
premises for the appointment of a receiver, liquidator, sequestrator, trustee,
custodian or other officer having similar powers over Company or any of its
Subsidiaries, or over all or a substantial part of its property, shall have
been entered; or there shall have occurred the involuntary appointment of an
interim receiver, trustee or other custodian of Company or any of its
Subsidiaries for all or a substantial part of its property; or a warrant of
attachment, execution or similar process shall have been issued against any
substantial part of the property of Company 

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or any of its Subsidiaries, and any such event
described in this clause (ii) shall continue for thirty (30) days without
having been dismissed, bonded or discharged; or

(g)       Voluntary Bankruptcy; Appointment of
Receiver, etc. (i) The Company or any of its Subsidiaries shall have
an order for relief entered with respect to it or shall commence a voluntary
case under the Bankruptcy Code or under any other applicable bankruptcy,
insolvency or similar law now or hereafter in effect, or shall consent to the
entry of an order for relief in an involuntary case, or to the conversion of an
involuntary case to a voluntary case, under any such law, or shall consent to
the appointment of or taking possession by a receiver, trustee or other
custodian for all or a substantial part of its property; or the Company or any
of its Subsidiaries shall make any assignment for the benefit of creditors; or (ii) the
Company or any of its Subsidiaries shall be unable, or shall fail generally, or
shall admit in writing its inability, to pay its debts as such debts become
due; or the board of directors (or similar governing body) of the Company or
any of its Subsidiaries (or any committee thereof) shall adopt any resolution
or otherwise authorize any action to approve any of the actions referred to
herein or in Section 8.1(f); or

(h)       Judgments and Attachments. One or
more money judgments, writs or warrants of attachment or similar process
involving in the aggregate at any time an amount in excess of $2,000,000 shall
be entered or filed against the Company or any of its Subsidiaries or any of
their respective assets and shall remain undischarged, unvacated, unbonded or
unstayed for a period of thirty (30) days (or in any event later than the date
that enforcement proceedings shall have been commenced by any creditor upon
such judgment order or five (5) days prior to the date of any proposed
sale thereunder); or

(i)        Dissolution. Any order, judgment
or decree shall be entered against any Credit Party decreeing the dissolution
or split up of such Credit Party and such order shall remain undischarged or
unstayed for a period in excess of thirty (30) days; or

(j)        Employee Benefit Plans. (i) There
shall occur one or more ERISA Events which individually or in the aggregate
results in or might reasonably be expected to result in liability of Company,
any of its Subsidiaries or any of their respective ERISA Affiliates in excess
of $2,000,000 during the term hereof; or (ii) there exists any fact or
circumstance that reasonably could be expected to result in the imposition of a
Lien or security interest under Section 401(a)(29) or 412(n) of the
Internal Revenue Code or under ERISA; or

(k)       Change of Control. A Change of
Control shall occur;

(l)        Guaranties, Collateral Documents and
other Credit Documents. At any time after the execution and delivery
thereof, (i) the Guaranty for any reason, other than the satisfaction in
full of all Lender Obligations, shall cease to be in full force and effect
(other than in accordance with its terms) or shall be declared to be null and
void or any Guarantor shall repudiate its obligations thereunder, (ii) this
Agreement or any Collateral Document ceases to be in full force and effect
(other than by reason of a release of Collateral in accordance with the terms
hereof or thereof or the satisfaction in full of the Obligations in accordance
with the terms hereof) or shall be declared null and void, or Collateral Agent
shall not have or shall cease to have a valid and perfected Lien in any Collateral
purported to be covered by the Collateral 

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Documents with the priority required by the relevant
Collateral Document, in each case for any reason other than the failure of
Collateral Agent or any Secured Party to take any action within its control, or
(iii) any Credit Party shall contest the validity or enforceability of any
Credit Document in writing or deny in writing that it has any further
liability, including with respect to future advances by Lenders, under any
Credit Document to which it is a party;

(m)      Refinancing of Existing Malara Facility.
The failure of the Malara Entities to refinance the Existing Malara Facility
with a new credit facility from the Lenders by August 15, 2006;

(n)       Amendments to Malara Facility. Any
amendment or modification of the Existing Malara Facility shall be made without
the prior written consent of the Administrative Agent; or

(o)       Indenture Supplement. The failure
of the Company to execute and deliver a valid and binding supplement to the
Senior Secured Notes Indenture on or prior to July 31, 2006 in accordance
with the supplemental agreement dated as of the date hereof between Company,
the Guarantors party thereto and the Qualified Holders (as defined therein)
party thereto, provided that the foregoing shall not be an Event of Default if
such failure results from the failure of the Qualified Holders to execute and
deliver such supplement in substance as contemplated by the supplemental
agreement or with modifications requested to facilitate the agreement by the
relevant trustee or the Company that are not adverse to the Qualified Holders.

                THEN,
(1) upon the occurrence of any Event of Default described in Section 8.1(f) or
8.1(g), automatically, and (2) upon the occurrence of any other Event of
Default, upon notice to Company by Administrative Agent (with the consent of
the Requisite Lenders), (A) the Commitments, if any, of each Lender having
such Commitments shall immediately terminate; (B) each of the following
shall immediately become due and payable, in each case without presentment,
demand, protest or other requirements of any kind, all of which are hereby
expressly waived by each Credit Party: (I) the unpaid principal amount of
and accrued interest on the Loans and (II) all other Obligations; and (C) Administrative
Agent may cause Collateral Agent to enforce any and all Liens and security
interests created pursuant to Collateral Documents.

SECTION 9.         AGENTS

                9.1          Appointment of Agents.
Silver Point is hereby appointed Administrative Agent hereunder and under the
other Credit Documents and each Lender hereby authorizes Silver Point, in such
capacity, to act as its agent in accordance with the terms hereof and the other
Credit Documents. The Bank of New York is hereby appointed Collateral Agent
hereunder and under the other Credit Documents, and each Lender hereby
authorizes Collateral Agent to act as its agent hereunder in accordance with
the terms hereof and the other Credit Documents. Each Agent hereby agrees to
act upon the express conditions contained herein and the other Credit
Documents, as applicable. The provisions of this Section 9 are solely for
the benefit of Agents and Lenders and no Credit Party shall have any rights as
a third party beneficiary of any of the provisions thereof. In performing its
functions and duties hereunder,

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each Agent shall act solely as an agent of Lenders and
does not assume and shall not be deemed to have assumed any obligation towards
or relationship of agency or trust with or for the Company or any of its
Subsidiaries.

                9.2          Powers and Duties.
Each Lender irrevocably authorizes each Agent to take such action on such
Lender’s behalf and to exercise such powers, rights and remedies and perform
such duties hereunder and under the other Credit Documents as are specifically
delegated or granted to such Agent by the terms hereof and thereof, together
with such actions, powers, rights and remedies as are reasonably incidental
thereto. Each Agent shall have only those duties and responsibilities that are
expressly specified herein and the other Credit Documents. Each Agent may
exercise such powers, rights and remedies and perform such duties by or through
its agents or employees. No Agent shall have or be deemed to have, by reason
hereof or any of the other Credit Documents, a fiduciary relationship in
respect of any Lender; and nothing herein or any of the other Credit Documents,
expressed or implied, is intended to or shall be so construed as to impose upon
any Agent any obligations in respect hereof or any of the other Credit
Documents except as expressly set forth herein or therein.

                9.3          General Immunity.

(a)       No Responsibility for Certain Matters.
No Agent shall be responsible to any Lender for the execution, effectiveness,
genuineness, validity, enforceability, collectability or sufficiency hereof or
any other Credit Document or for any representations, warranties, recitals or
statements made herein or therein or made in any written or oral statements or
in any financial or other statements, instruments, reports or certificates or
any other documents furnished or made by any Agent to Lenders or by or on
behalf of any Credit Party to any Agent or any Lender in connection with the
Credit Documents and the transactions contemplated thereby or for the financial
condition or business affairs of any Credit Party or any other Person liable
for the payment of any Obligations, nor shall any Agent be required to
ascertain or inquire as to the performance or observance of any of the terms,
conditions, provisions, covenants or agreements contained in any of the Credit
Documents or as to the use of the proceeds of the Loans or as to the existence
or possible existence of any Event of Default or Default or to make any
disclosures with respect to the foregoing. Anything contained herein to the
contrary notwithstanding, Administrative Agent shall not have any liability
arising from confirmations of the amount of outstanding Loans or the component
amounts thereof.

(b)       Exculpatory Provisions. No Agent
nor any of its officers, partners, directors, employees or agents shall be
liable to Lenders for any action taken or omitted by any Agent under or in
connection with any of the Credit Documents except to the extent caused by such
Agent’s gross negligence or willful misconduct as determined by a court of
competent jurisdiction in a final, nonappealable order. Each Agent shall be
entitled to refrain from any act or the taking of any action (including the
failure to take an action) in connection herewith or any of the other Credit
Documents or from the exercise of any power, discretion or authority vested in
it hereunder or thereunder unless and until such Agent shall have received
instructions in respect thereof from Requisite Lenders (or such other Lenders
as may be required to give such instructions under Section 10.5) or, in
the case of the Collateral Agent, in accordance with the any applicable
Collateral Document, and, upon receipt of such instructions from Requisite
Lenders (or such

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other Lenders, as the case may be), or in accordance with the
applicable Collateral Document, as the case may be, such Agent shall be
entitled to act or (where so instructed) refrain from acting, or to exercise
such power, discretion or authority, in accordance with such instructions. Without
prejudice to the generality of the foregoing, (i) each Agent shall be
entitled to rely, and shall be fully protected in relying, upon any
communication, instrument or document believed by it to be genuine and correct
and to have been signed or sent by the proper Person or Persons, and shall be
entitled to rely and shall be protected and free from liability in relying on
opinions and judgments of attorneys (who may be attorneys for the Credit Parties),
accountants, experts and other professional advisors selected by it; and (ii) no
Lender shall have any right of action whatsoever against any Agent as a result
of such Agent acting or (where so instructed) refraining from acting hereunder
or any of the other Credit Documents in accordance with the instructions of
Requisite Lenders (or such other Lenders as may be required to give such
instructions under Section 10.5) or, in the case of the Collateral Agent,
in accordance with the applicable Collateral Document.

(c)       Notice of Default. The
Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default, except with respect to Events of
Default in the payment of principal, interest and fees required to be paid to
Administrative Agent for the account of the Lenders, unless Administrative
Agent shall have received written notice from a Lender or the Borrower
referring to this Agreement, describing such Default or Event of Default and
stating that such notice is a “notice of default.”  The Administrative Agent will notify the
Lenders of its receipt of any such notice. The Administrative Agent shall take
such action with respect to any such Default or Event of Default as may be
directed by the Requisite Lenders in accordance with Section 8; provided,
however, that unless and until Administrative Agent has received any
such direction, Administrative Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such Default
or Event of Default as it shall deem advisable or in the best interest of the
Lenders.

9.4          Agents
Entitled to Act as Lender. The
agency hereby created shall in no way impair or affect any of the rights and
powers of, or impose any duties or obligations upon, any Agent in its
individual capacity as a Lender hereunder. With respect to its participation in
the Loans, each Agent shall have the same rights and powers hereunder as any
other Lender and may exercise the same as if it were not performing the duties
and functions delegated to it hereunder, and the term “Lender” shall, unless
the context clearly otherwise indicates, include each Agent in its individual
capacity. Any Agent and its Affiliates may accept deposits from, lend money to,
own securities of, and generally engage in any kind of banking, trust,
financial advisory or other business with the Company or any of its Affiliates
as if it were not performing the duties specified herein, and may accept fees
and other consideration from Company for services in connection herewith and
otherwise without having to account for the same to Lenders.

9.5           Lenders’ Representations, Warranties and Acknowledgment.

 

(a)       Each Lender represents and warrants that
it has made its own independent investigation of the financial condition and
affairs of Company and its Subsidiaries, without reliance upon any Agent or any
other Lender and based on such documents and information as it has deemed
appropriate, in connection with Credit Extensions hereunder and that it has
made

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and shall continue to make its own appraisal of the creditworthiness of
Company and its Subsidiaries. No Agent shall have any duty or responsibility,
either initially or on a continuing basis, to make any such investigation or
any such appraisal on behalf of Lenders or to provide any Lender with any
credit or other information with respect thereto, whether coming into its
possession before the making of the Loans or at any time or times thereafter,
and no Agent shall have any responsibility with respect to the accuracy of or
the completeness of any information provided to Lenders.

 

(b)       Each Lender, by delivering its signature page to
this Agreement and funding its Tranche A Term Loan and/or Tranche B Term Loan,
shall be deemed to have acknowledged receipt of, and consented to and approved,
each Credit Document and each other document required to be approved by any
Agent, Requisite Lenders or Lenders, as applicable on the Closing Date.

9.6           Right to Indemnity. Each Lender, in
proportion to its Pro Rata Share, severally agrees to indemnify each Agent,
their Affiliates and their respective officers, partners, directors, trustees,
employees, representatives and agents of each Agent (each, an “Indemnitee Agent
Party”), to the extent that such Indemnitee Agent Party shall not have been
reimbursed by any Credit Party, for and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses
(including counsel fees and disbursements) or disbursements of any kind or
nature whatsoever which may be imposed on, incurred by or asserted against such
Indemnitee Agent Party in exercising its powers, rights and remedies or
performing its duties hereunder or under the other Credit Documents or
otherwise in its capacity as such Indemnitee Agent Party in any way relating to
or arising out of this Agreement or the other Credit Documents, IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART,
OUT OF THE COMPARATIVE, CONTRIBUTORY, OR SOLE NEGLIGENCE OF SUCH AGENT;
provided, no Lender shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from such Indemnitee Agent Party’s gross
negligence or willful misconduct as determined by a court of competent
jurisdiction in a final, nonappealable order. If any indemnity furnished to any
Indemnitee Agent Party for any purpose shall, in the opinion of such Indemnitee
Agent Party, be insufficient or become impaired, such Indemnitee Agent Party
may call for additional indemnity and cease, or not commence, to do the acts
indemnified against until such additional indemnity is furnished; provided, in no
event shall this sentence require any Lender to indemnify any Indemnitee Agent
Party against any liability, obligation, loss, damage, penalty, action,
judgment, suit, cost, expense or disbursement in excess of such Lender’s Pro
Rata Share thereof; and provided further, this sentence shall not be deemed to
require any Lender to indemnify any Indemnitee Agent Party against any
liability, obligation, loss, damage, penalty, action, judgment, suit, cost,
expense or disbursement described in the proviso in the immediately preceding
sentence.

 

9.7          Successor Administrative Agent.

(a)       Administrative Agent may resign at any
time by giving thirty (30) days’ prior written notice thereof to Lenders and
Company. Upon any such notice of resignation, Requisite Lenders shall have the
right, upon five Business Days’ notice to Company, to appoint a successor
Administrative Agent. If no successor shall have been so appointed by the
Requisite

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Lenders
and shall have accepted such appointment within thirty (30) days after the retiring
Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may, on behalf of the Lenders, appoint a successor
Administrative Agent from among the Lenders. Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor Administrative
Agent, that successor Administrative Agent shall thereupon succeed to and
become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent and the retiring Administrative Agent shall
promptly (i) transfer to such successor Administrative Agent all sums,
Securities and other items of Collateral held by it, together with all records
and other documents necessary or appropriate in connection with the performance
of the duties of the successor Administrative Agent under the Credit Documents,
and (ii) execute and deliver to such successor Administrative Agent such
amendments to financing statements, and take such other actions, as may be
necessary or appropriate in connection with the assignment to such successor
Administrative Agent of the security interests created under the Collateral
Documents, whereupon such retiring Administrative Agent shall be discharged
from its duties and obligations hereunder. After any retiring Administrative
Agent’s resignation hereunder as Administrative Agent, the provisions of this Section 9
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent hereunder.

(b)       Notwithstanding anything herein to the
contrary, Administrative Agent may assign its rights and duties as
Administrative Agent hereunder to an Affiliate of Silver Point without the
prior written consent of, or prior written notice to, Company or the Lenders; provided
that Company and the Lenders may deem and treat such assigning Administrative
Agent as Administrative Agent for all purposes hereof, unless and until such
assigning Administrative Agent provides written notice to Company and the
Lenders of such assignment. Upon such assignment such Affiliate shall succeed
to and become vested with all rights, powers, privileges and duties as
Administrative Agent hereunder and under the other Credit Documents.

(c)       Delegation of Duties. Administrative
Agent may perform any and all of its duties and exercise its rights and powers
under this Agreement or under any other Credit Document by or through any one
or more sub-agents appointed by Administrative Agent. Administrative Agent and
any such sub-agent may perform any and all of its duties and exercise its
rights and powers by or through their respective Affiliates. The exculpatory,
indemnification and other provisions of this Section 9.3 and Section 9.6
shall apply to any the Affiliates of Administrative 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. All
of the rights, benefits and privileges (including the exculpatory and
indemnification provisions) of this Section 9.3 and of Section 9.6
shall apply to any such sub-agent and to the Affiliates of any such sub-agent,
and shall apply to their respective activities as sub-agent as if such sub-agent
and Affiliates were named herein. Notwithstanding anything herein to the
contrary, with respect to each sub-agent appointed by Administrative Agent, (i) such
sub-agent shall be a third party beneficiary under this Agreement with respect
to all such rights, benefits and privileges (including exculpatory and rights
to indemnification) and shall have all of the rights, benefits and privileges
of a third party beneficiary, including an independent right of action to
enforce such rights, benefits and privileges (including exculpatory rights and
rights to indemnification) directly, without the consent or joinder of any
other Person, against any or all of the Credit Parties

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and
the Lenders, (ii) such rights, benefits and privileges (including exculpatory
rights and rights to indemnification) shall not be modified or amended without
the consent of such sub-agent, and (iii) such sub-agent shall only have
obligations to Administrative Agent and not to any Credit Party, Lender or any
other Person and no Credit Party, Lender or any other Person shall have the
rights, directly or indirectly, as a third party beneficiary or otherwise,
against such sub-agent.

9.8          Collateral Documents and Guaranty.

(a)       Agents under Collateral Documents and
Guaranty. Each Lender hereby further irrevocably authorizes Administrative
Agent or Collateral Agent, as applicable, on behalf of and for the benefit of
Lenders, to be the agent for and representative of Lenders with respect to the
Guaranty, the Collateral and the Collateral Documents. Subject to Section 10.5,
without further written consent or authorization from Lenders, Administrative
Agent or Collateral Agent, as applicable, may execute any documents or instruments
necessary to (i) release any Lien encumbering any item of Collateral that
is the subject of a sale or other disposition of assets permitted hereby or to
which Requisite Lenders (or such other Lenders as may be required to give such
consent under Section 10.5) have otherwise consented, or (ii) release
any Guarantor from the Guaranty pursuant to Section 7.12 or with respect
to which Requisite Lenders (or such other Lenders as may be required to give
such consent under Section 10.5) have otherwise consented.

(b)       Right to Realize on Collateral and
Enforce Guaranty. Anything contained in any of the Credit Documents to the
contrary notwithstanding, Company, Administrative Agent, Collateral Agent and
each Lender hereby agree that (i) no Lender shall have any right
individually to realize upon any of the Collateral or to enforce the Guaranty,
it being understood and agreed that all powers, rights and remedies hereunder
may be exercised solely by Administrative Agent, on behalf of Lenders in
accordance with the terms hereof and all powers, rights and remedies under the
Collateral Documents may be exercised solely by Collateral Agent, and (ii) in
the event of a foreclosure by Collateral Agent on any of the Collateral
pursuant to a public or private sale, Collateral Agent or any Lender may be the
purchaser of any or all of such Collateral at any such sale and Collateral
Agent, as agent for and representative of Secured Parties (but not any Lender
or Lenders in its or their respective individual capacities unless Requisite
Lenders shall otherwise agree in writing) shall be entitled, for the purpose of
bidding and making settlement or payment of the purchase price for all or any
portion of the Collateral sold at any such public sale, to use and apply any of
the Obligations as a credit on account of the purchase price for any collateral
payable by Collateral Agent at such sale.

9.9          Posting of Approved Electronic
Communications.

(a)       Delivery of Communications. Each
Credit Party hereby agrees, unless directed otherwise by Administrative Agent
or unless the electronic mail address referred to below has not been provided
by Administrative Agent to such Credit Party that it will, or will cause its
Subsidiaries to, provide to Administrative Agent all information, documents and
other materials that it is obligated to furnish to Administrative Agent or to
the Lenders pursuant to the Credit Documents, including all notices, requests,
financial statements, financial and other reports, certificates and other
information materials, but excluding any such

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communication that (i) is or relates to a Funding
Notice or a Interest Election Request, (ii) relates to the payment of any
principal or other amount due under this Agreement prior to the scheduled date
therefor, (iii) provides notice of any Default under this Agreement or any
other Credit Document or (iv) is required to be delivered to satisfy any
condition precedent to the effectiveness of this Agreement and/or any Loan or
other extension of credit hereunder (all such non-excluded communications being
referred to herein collectively as “Communications”),
by transmitting the Communications in an electronic/soft medium that is
properly identified in a format acceptable to Administrative Agent to an
electronic mail address as directed by Administrative Agent. In addition, each
Credit Party agrees, and agrees to cause its Subsidiaries, to continue to
provide the Communications to Administrative Agent or the Lenders, as the case
may be, in the manner specified in the Credit Documents but only to the extent
requested by Administrative Agent.

(b)       Platform. Each Credit Party
further agrees that Administrative Agent may make the Communications available
to the Lenders by posting the Communications on Intralinks or a substantially
similar electronic transmission system (the “Platform”).

(c)       No Warranties as to Platform. THE
PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”. THE INDEMNITEES DO NOT
WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS OR THE ADEQUACY OF
THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN
THE COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY,
INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS
IS MADE BY THE INDEMNITEES IN CONNECTION WITH THE COMMUNICATIONS OR THE
PLATFORM. IN NO EVENT SHALL THE INDEMNITEES HAVE ANY LIABILITY TO ANY LENDER OR
ANY OTHER PERSON FOR DAMAGES OF ANY KIND, WHETHER OR NOT BASED ON STRICT
LIABILITY AND INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR
CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR
OTHERWISE) ARISING OUT OF ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS
THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY INDEMNITEES IS
FOUND IN A FINAL, NONAPPEALABLE ORDER BY A COURT OF COMPETENT JURISDICTION TO
HAVE RESULTED PRIMARILY FROM SUCH INDEMNITEE’S GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT.

(d)       Delivery Via Platform. Administrative
Agent agrees that the receipt of the Communications by Administrative Agent at
its electronic mail address set forth above shall constitute effective delivery
of the Communications to Administrative Agent for purposes of the Credit
Documents. Each Lender agrees that receipt of notice to it (as provided in the
next sentence) specifying that the Communications have been posted to the
Platform shall constitute effective delivery of the Communications to such
Lender for purposes of the Credit Documents. Each Lender agrees to notify
Administrative Agent in writing (including by electronic communication) from
time to time of such Lender’s electronic mail address to which the foregoing
notice may be sent by electronic transmission and that the foregoing notice may
be sent to such electronic mail address.

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(e)       No Prejudice to Notice Rights. Nothing
herein shall prejudice the right of Administrative Agent or any Lender to give
any notice or other communication pursuant to any Credit Document in any other
manner specified in such Credit Document.

9.10        Proofs of Claim. The Lenders and Company
hereby agree that after the occurrence of an Event of Default pursuant to
Sections 8.1(f) or (g), in case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to Company or any of the
Guarantors, Administrative Agent (irrespective of whether the principal of any
Loan shall then be due and payable as herein expressed or by declaration or
otherwise and irrespective of whether Administrative Agent shall have made any
demand on any of Company or any of the Guarantors) shall be entitled and
empowered, by intervention in such proceeding or otherwise:

            (a) to
file and prove a claim for the whole amount of principal and interest owing and
unpaid in respect of the Loans and any other Obligations that are owing and
unpaid and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the Lenders, Administrative Agent and
other Agents (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders, Administrative Agent and other
agents and their agents and counsel and all other amounts due Lenders,
Administrative Agent and other agents hereunder) allowed in such judicial
proceeding; and

            (b) to
collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same;

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Lender to make such payments to
Administrative Agent and, in the event that Administrative Agent shall consent
to the making of such payments directly to the Lenders, to pay to
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of Administrative Agent and its agents and counsel,
and any other amounts due Administrative Agent and other agents hereunder. Nothing
herein contained shall be deemed to authorize Administrative Agent to authorize
or consent to or accept or adopt on behalf of any Lender any plan of
reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of any Lenders or to authorize Administrative Agent
to vote in respect of the claim of any Lender in any such proceeding. Further,
nothing contained in this Section 9.10 shall affect or preclude the
ability of any Lender to (i) file and prove such a claim in the event that
Administrative Agent has not acted within ten (10) days prior to any
applicable bar date and (ii) require an amendment of the proof of claim to
accurately reflect such Lender’s outstanding Obligations.

SECTION 10.       MISCELLANEOUS

10.1        Notices. Unless otherwise specifically
provided herein, any notice or other communication herein required or permitted
to be given to a Credit Party or an Agent, shall be sent to such Person’s
address as set forth on Appendix B or in the other

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relevant Credit Document, and in the case of any
Lender, the address as indicated on Appendix B or otherwise indicated to
Administrative Agent in writing. Each notice hereunder shall be in writing and
may be personally served, telexed or sent by telefacsimile or United States
mail or courier service and shall be deemed to have been given when delivered
in person or by courier service and signed for against receipt thereof, upon receipt
of telefacsimile or telex, or three Business Days after depositing it in the
United States mail with postage prepaid and properly addressed; provided,
no notice to any Agent shall be effective until received by such Agent.

10.2        Expenses. Whether or not the transactions
contemplated hereby shall be consummated, Company agrees to pay promptly, and
in any event within five (5) days after written demand therefore, (a) all
reasonable and documented costs and expenses of preparation of the Credit
Documents and any consents, amendments, waivers or other modifications thereto;
(b) all the costs of furnishing all opinions by counsel for Company and
the other Credit Parties; (c) the fees, expenses and disbursements of
counsel to Agents in connection with the negotiation, preparation, execution
and administration of the Credit Documents and any consents, amendments,
waivers or other modifications thereto and any other documents or matters
requested by Company; (d) all the actual and documented costs and expenses
of creating and perfecting Liens in favor of Collateral Agent, for the benefit
of Secured Parties pursuant hereto, including filing and recording fees,
expenses and amounts owed pursuant to Section 2.19(c) and (d), search
fees, title insurance premiums and fees, expenses and disbursements of counsel
to each Agent and of counsel providing any opinions that any Agent or Requisite
Lenders may request in respect of the Collateral or the Liens created pursuant
to the Collateral Documents; (e) all reasonable and documented costs and
fees, expenses and disbursements of any external auditors, accountants,
consultants or appraisers; (f) all reasonable and documented costs and
expenses (including the fees, expenses and disbursements of counsel (excluding
allocated costs of internal counsel) and of any appraisers, consultants,
advisors and agents employed or retained by any Agent and its counsel) in
connection with the custody or preservation of any of the Collateral; (g) all
reasonable and documented costs and expenses incurred by each Agent in
connection with the syndication of the Loans and Commitments and the
negotiation, preparation and execution of the Credit Documents and any
consents, amendments, waivers or other modifications thereto and the
transactions contemplated thereby; and (h) after the occurrence of a
Default or an Event of Default, all costs and expenses, including attorneys’
fees (excluding allocated costs of internal counsel) and costs of settlement,
incurred by any Agent and Lenders in enforcing any Obligations of or in
collecting any payments due from any Credit Party hereunder or under the other
Credit Documents by reason of such Default or Event of Default (including in
connection with the sale of, collection from, or other realization upon any of
the Collateral or the enforcement of the Guaranty) or in connection with any
refinancing or restructuring of the credit arrangements provided hereunder in
the nature of a “work out”
or pursuant to any insolvency or bankruptcy cases or proceedings, including without
limitation the costs of any financial advisor or other outside experts retained
by the Administrative Agent or any Lender. Promptly upon becoming aware, the
Administrative Agent shall notify Company if at any time the aggregate amounts
of advisors and/or consultants fees reimbursable by the Company hereunder
exceeds $1,000,000; provided that any failure to give such notice shall not
relieve Company of its obligation to pay such amounts in accordance with the
terms hereof.

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10.3        Indemnity.

(a)       Except for Taxes, which shall be governed
exclusively by Section 2.19, in addition to the payment of expenses
pursuant to Section 10.2, whether or not the transactions contemplated
hereby shall be consummated, each Credit Party agrees to defend (subject to
Indemnitees’ selection of counsel), indemnify, pay and hold harmless, each
Agent and Lender, their Affiliates and their respective officers, partners,
directors, trustees, employees, representatives and agents of each Agent and
each Lender (each, an “Indemnitee”), from and against any and all Indemnified Liabilities, IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART,
OUT OF THE COMPARATIVE, CONTRIBUTORY, OR SOLE NEGLIGENCE OF SUCH AGENT;
provided, no Credit Party shall have any obligation to any Indemnitee hereunder
with respect to any Indemnified Liabilities to the extent such Indemnified
Liabilities arise from the gross negligence or willful misconduct of that
Indemnitee. To the extent that the undertakings to defend, indemnify, pay and
hold harmless set forth in this Section 10.3 may be unenforceable in whole
or in part because they are violative of any law or public policy, the
applicable Credit Party shall contribute the maximum portion that it is
permitted to pay and satisfy under applicable law to the payment and
satisfaction of all Indemnified Liabilities incurred by Indemnitees or any of
them.

(b)       To the extent permitted by applicable
law, no Credit Party shall assert, and each Credit Party hereby waives, any
claim against Lenders, Agents and their respective Affiliates, directors,
employees, attorneys or agents, on any theory of liability, for special,
indirect, consequential or punitive damages 
(as opposed to direct or actual damages) (whether or not the claim
therefor is based on contract, tort or duty imposed by any applicable legal
requirement) arising out of, in connection with, as a result of, or in any way
related to, this Agreement or any Credit Document or any agreement or
instrument contemplated hereby or thereby or referred to herein or therein, the
transactions contemplated hereby or thereby, any Loan or the use of the
proceeds thereof or any act or omission or event occurring in connection
therewith, and each Credit Party hereby waives, releases and agrees not to sue
upon any such claim or any such damages, whether or not accrued and whether or
not known or suspected to exist in its favor.

10.4        Set Off. In addition to any rights now or
hereafter granted under applicable law and not by way of limitation of any such
rights, upon the occurrence of any Event of Default each Lender and its
respective Affiliates is hereby authorized by each Credit Party at any time or
from time to time subject to the consent of Administrative Agent (such consent
not to be unreasonably withheld or delayed), without notice to any Credit Party
or to any other Person (other than Administrative Agent), any such notice being
hereby expressly waived, to set off and to appropriate and to apply any and all
deposits (general or special, including Indebtedness evidenced by certificates
of deposit, whether matured or unmatured, but not including trust accounts (in
whatever currency)) and any other Indebtedness at any time held or owing by
such Lender to or for the credit or the account of any Credit Party (in whatever
currency) against and on account of the obligations and liabilities of any
Credit Party to such Lender hereunder and under the other Credit Documents,
including all claims of any nature or description arising out of or connected
hereto or with any other Credit Document, irrespective of whether or not (a) such
Lender shall have made any demand hereunder, (b) the principal of or the
interest on the Loans or any other amounts due hereunder shall have become due
and payable pursuant to Section 2 and although such obligations and

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liabilities, or any of them, may be contingent or
unmatured or (c) such obligation or liability is owed to a branch or
office of such Lender different from the branch or office holding such deposit
or obligation or such Indebtedness.

10.5        Amendments and Waivers.

(a)       Requisite Lenders’ Consent. Subject
to Sections 10.5(b) and 10.5(c), no amendment, modification, termination
or waiver of any provision of the Credit Documents, or consent to any departure
by any Credit Party therefrom, shall in any event be effective without the
written concurrence of (i) in the case of this Agreement, Administrative
Agent and the Requisite Lenders or (ii) in the case of any other Credit Document,
Administrative Agent and, if party thereto, the Collateral Agent, with the
consent of the Requisite Lenders.

(b)       Affected Lenders’ Consent. Without
the written consent of each Lender 
(other than a Defaulting Lender) that would be affected thereby, no
amendment, modification, termination, or consent shall be effective if the
effect thereof would:

(i) extend the scheduled final
maturity of any Loan or Note of such Lender;

(ii) waive, reduce or postpone
any scheduled repayment due such Lender (but not prepayment);

(iii) reduce the rate of
interest on any Loan of such Lender (other than any amendment to the definition
of “Default Rate”
(which may be affected by consent of the Requisite Lenders) and any waiver of
any increase in the interest rate applicable to any Loan pursuant to Section 2.9)
or any fee payable hereunder;

(iv) extend the time for
payment of any such interest or fees to such Lender;

(v) reduce the principal amount
of any Loan;

(vi) amend, modify, terminate
or waive any provision of this Section 10.5(b) or Section 10.5(c);

(vii) amend
the definition of “Requisite Lenders”
or “Pro Rata Share”;
provided, with the consent of Administrative Agent and the Requisite
Lenders, additional extensions of credit pursuant hereto may be included in the
determination of “Requisite Lenders”
or “Pro Rata Share” on substantially the
same basis as the Term Loan Commitments and the Term Loans are included on the
Closing Date;

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(viii) release all or
substantially all of the Collateral or all or substantially all of the
Guarantors from the Guaranty except as expressly provided in the Credit
Documents; or

(ix) consent to the assignment
or transfer by any Credit Party of any of its rights and obligations under any
Credit Document;

provided, however, that the Fee
Letter may be amended or modified, or the rights or privileges thereunder
waived, in a writing executed only by the parties thereto.

(c)       Other Consents. No amendment,
modification, termination or waiver of any provision of the Credit Documents,
or consent to any departure by any Credit Party therefrom, shall:

(i)   amend
the definition of “Requisite Class Lenders”
without the consent of Requisite Class Lenders of each Class; provided,
with the consent of Administrative Agent and the Requisite Lenders, additional
extensions of credit pursuant hereto may be included in the determination of
such “Requisite Class Lenders” on
substantially the same basis as the Term Loan Commitments and the Term Loans
are included on the Closing Date;

(ii)  alter
the required application of any repayments or prepayments as between Classes
pursuant to Section 2.14 without the consent of Requisite Class Lenders
of each Class which is being allocated a lesser repayment or prepayment as
a result thereof; provided, Administrative Agent and the Requisite
Lenders may waive, in whole or in part, any prepayment so long as the
application, as between Classes, of any portion of such prepayment which is
still required to be made is not altered; or

(iii) amend,
modify, terminate or waive any provision of Section 9 as the same applies
to any Agent, or any other provision hereof as the same applies to the rights
or obligations of any Agent, in each case without the consent of such Agent.

Notwithstanding anything to the contrary herein, no
Defaulting Lender shall have any right to approve or disapprove any amendment,
modification, waiver or consent hereunder, except that the Commitment of such
Lender may not be increased or extended without the consent of such Lender.

(d)       Execution of Amendments, etc. Administrative
Agent may, but shall have no obligation to, with the concurrence of any Lender,
execute amendments, modifications, waivers or consents on behalf of such Lender.
Any waiver or consent shall be effective only in the specific instance and for
the specific purpose for which it was given. No 

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notice to or demand on any Credit Party in any case
shall entitle any Credit Party to any other or further notice or demand in similar
or other circumstances. Any amendment, modification, termination, waiver or
consent effected in accordance with this Section 10.5 shall be binding
upon each Lender at the time outstanding, each future Lender and, if signed by
a Credit Party, on such Credit Party.

10.6        Successors and Assigns; Participations.

(a)       Generally. This Agreement shall be
binding upon the parties hereto and their respective successors and assigns and
shall inure to the benefit of the parties hereto and the successors and assigns
of Lenders. No Credit Party’s rights or obligations hereunder nor any interest
therein may be assigned or delegated by any Credit Party without the prior
written consent of all Lenders (and any attempted assignment or transfer by any
Credit Party without such consent shall be null and void). 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, Affiliates
of each of the Agents and Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

(b)       Register. Company, Administrative
Agent and Lenders shall deem and treat the Persons listed as Lenders in the
Register as the holders and owners of the corresponding Commitments and Loans
listed therein for all purposes hereof, and no assignment or transfer of any
such Commitment or Loan shall be effective, in each case, unless and until an
Assignment Agreement effecting the assignment or transfer thereof shall have
been delivered to and accepted by Administrative Agent and recorded in the
Register as provided in Section 10.6(e). Prior to such recordation, all
amounts owed with respect to the applicable Commitment or Loan shall be owed to
the Lender listed in the Register as the owner thereof, and any request,
authority or consent of any Person who, at the time of making such request or
giving such authority or consent, is listed in the Register as a Lender shall be
conclusive and binding on any subsequent holder, assignee or transferee of the
corresponding Commitments or Loans. Solely for the purposes of maintaining the
Register and for tax purposes only Administrative Agent shall be deemed to be
acting on behalf of the Credit Parties.

(c)       Right to Assign. Each Lender shall
have the right at any time to sell, assign or transfer all or a portion of its
rights and obligations under this Agreement, including all or a portion of its
Commitment or Loans owing to it or other Lender Obligations (provided, however,
that each such assignment shall be of a uniform, and not varying, percentage of
all rights and obligations under and in respect of any Loan and any related
Commitments) to any Person otherwise constituting an Eligible Assignee with the
consent of Administrative Agent; provided, each such assignment pursuant
to this Section 10.6(c)(ii) shall be in an aggregate amount of not
less than $2,000,000 (or such lesser amount as may be agreed to by
Administrative Agent or as shall constitute the aggregate amount of the Tranche
A Term Loans or Tranche B Term Loans of the assigning Lender) with respect to
the assignment of Term Loans.

(d)       Mechanics. The assigning Lender
and the assignee thereof shall execute and deliver to Administrative Agent an
Assignment Agreement, together with such forms, certificates or other evidence,
if any, with respect to United States federal income tax 

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withholding
matters as the assignee under such Assignment Agreement may be required to
deliver to Administrative Agent pursuant to Section 2.19(e).

(e)       Notice of Assignment. Upon its
receipt and acceptance of a duly executed and completed Assignment Agreement,
any forms, certificates or other evidence required by this Agreement in
connection therewith, Administrative Agent shall record the information
contained in such Assignment Agreement in the Register, shall give prompt
notice thereof to Company and shall maintain a copy of such Assignment
Agreement.

(f)        Representations and Warranties of
Assignee. Each Lender, upon execution and delivery hereof or upon executing
and delivering an Assignment Agreement, as the case may be, represents and
warrants as of the Closing Date or as of the applicable Effective Date (as
defined in the applicable Assignment Agreement) that (i) it is an Eligible
Assignee; (ii) it has experience and expertise in the making of or
investing in commitments or loans such as the applicable Commitments or Loans,
as the case may be; and (iii) it will make or invest in, as the case may be,
its Commitments or Loans for its own account in the ordinary course of its
business and without a view to distribution of such Commitments or Loans within
the meaning of the Securities Act or the Exchange Act or other federal
securities laws (it being understood that, subject to the provisions of this Section 10.6,
the disposition of such Loans or any interests therein shall at all times
remain within its exclusive control).

(g)       Effect of Assignment. Subject to
the terms and conditions of this Section 10.6, as of the “Effective Date”
specified in the applicable Assignment Agreement: (i) the assignee
thereunder shall have the rights and obligations of a “Lender” hereunder to the
extent such rights and obligations hereunder have been assigned to it pursuant
to such Assignment Agreement and shall thereafter be a party hereto and a “Lender”
for all purposes hereof; (ii) the assigning Lender thereunder shall, to
the extent that rights and obligations hereunder have been assigned thereby
pursuant to such Assignment Agreement, relinquish its rights (other than any
rights which survive the termination hereof under Section 10.8) and be
released from its obligations hereunder (and, in the case of an Assignment
Agreement covering all or the remaining portion of an assigning Lender’s rights
and obligations hereunder, such Lender shall cease to be a party hereto; provided,
anything contained in any of the Credit Documents to the contrary
notwithstanding, such assigning Lender shall continue to be entitled to the
benefit of all indemnities hereunder as specified herein with respect to
matters arising out of the prior involvement of such assigning Lender as a
Lender hereunder); (iii) the Commitments shall be modified to reflect the
Commitment of such assignee and any Commitment of such assigning Lender, if
any; and (iv) if any such assignment occurs after the issuance of any Note
hereunder, the assigning Lender shall, upon the effectiveness of such
assignment or as promptly thereafter as practicable, surrender its applicable
Notes to Administrative Agent for cancellation, and thereupon Company shall
issue and deliver new Notes, if so requested by the assignee and/or assigning
Lender, to such assignee and/or to such assigning Lender, with appropriate
insertions, to reflect the new Commitments and/or outstanding Loans of the
assignee and/or the assigning Lender.

(h)       Participations. Each Lender shall
have the right at any time to sell one or more participations to any Person
(other than Company, any of its Subsidiaries or any of its Affiliates) in all
or any part of its Commitments, Loans, Notes or in any other Lender 

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Obligation.
The holder of any such participation (a “Participant”), other than an Affiliate of the Lender granting
such participation, shall not be entitled to require such Lender to take or
omit to take any action hereunder except with respect to any amendment,
modification or waiver that would (i) extend the final scheduled maturity
of any Loan or Note in which such Participant is participating, or reduce the
rate or extend the time of payment of interest or fees thereon (except any
amendment to the definition of “Default Rate” or in connection with a waiver of
applicability of any post default increase in interest rates) or reduce the
principal amount thereof, or increase the amount of the Participant’s
participation over the amount thereof then in effect (it being understood that
a waiver of any Default or Event of Default or of a mandatory reduction in the
Commitment shall not constitute a change in the terms of such participation,
and that an increase in any Commitment or Loan shall be permitted without the
consent of any Participant if the Participant’s participation is not increased
as a result thereof), (ii) consent to the assignment or transfer by any
Credit Party of any of its rights and obligations under this Agreement, or (iii) release
all or substantially all of the Collateral under the Collateral Documents or
all or substantially all of the Guarantors from the Guaranty (in each case,
except as expressly provided in the Credit Documents) supporting the Loans
hereunder in which such Participant is participating. Company agrees that each
Participant shall be entitled, through the participating Lender, to the
benefits of Sections 2.17(c), 2.18 and 2.19 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to clause (c) of
this Section; provided, (i) a Participant shall not be entitled to
receive any greater payment under Section 2.18 or 2.19 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 Company’s prior written consent, and (ii) a
Participant that would be a Non-U.S. Lender if it were a Lender shall not be
entitled to the benefits of Section 2.19 unless Company is notified of the
participation sold to such Participant and such Participant agrees, for the
benefit of Company, to comply with Section 2.19 as though it were a Lender.
To the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 10.4 as though it were a Lender, provided such
Participant agrees to be subject to Section 2.16 as though it were a
Lender.

(i)        Certain Other Assignments. In
addition to any other assignment permitted pursuant to this Section 10.6,
any Lender may assign, pledge and/or grant a security interest in, all or any
portion of its Loans, the other Obligations owed by or to such Lender, and its
Notes, if any, to secure obligations of such Lender including any Federal
Reserve Bank as collateral security pursuant to Regulation A of the Board of
Governors of the Federal Reserve System and any operating circular issued by
such Federal Reserve Bank; provided, no Lender, as between Company and
such Lender, shall be relieved of any of its obligations hereunder as a result
of any such assignment and pledge, and provided  further, in no
event shall the applicable Federal Reserve Bank, pledgee or trustee be
considered to be a “Lender” or be entitled to require the assigning Lender to
take or omit to take any action hereunder.

10.7        Special Purpose Funding Vehicles. Notwithstanding
anything to the contrary contained herein, any Lender (“Granting
Lender”) may grant to a special purpose funding vehicle (a “SPC”), identified as such in writing from time to time by
the Granting Lender to Administrative Agent and Company, the option to provide
to Company all or any part of any Loan that such Granting Lender would
otherwise be obligated to make to Company pursuant to this Agreement; provided
that (x) nothing herein shall constitute a commitment by any SPC to make
any Loans and (y) if an SPC elects not to exercise such option or
otherwise fails to provide 

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all or any part of such Loan, the Granting Lender
shall be obligated to make such Loan pursuant to the terms hereof. The making
of a Loan by an SPC hereunder shall utilize the Commitment of the Granting
Lender to the same extent, and as if, such Loan were made by such Granting
Lender. Each party hereto hereby agrees that no SPC shall be liable for any
indemnity or similar payment obligation under this Agreement (all liability for
which shall remain with the Granting Lender). In furtherance of the foregoing,
each party hereto hereby agrees (which agreement shall survive the termination
of this Agreement) that, prior to the date that is one year and one day after
the payment in full of all outstanding commercial paper or other senior
indebtedness of any SPC, it will not institute against, or join any other
person in instituting against, such SPC any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under the laws of the United
States or any State thereof. In addition, notwithstanding anything to the
contrary contained in this clause, any SPC may (i) with notice to, but
without the prior written consent of, Company or Administrative Agent and
without paying any processing fee therefor, assign all or a portion of its
interests in any Loans to the Granting Lender or to any financial institutions
(consented to by Company and Administrative Agent) providing liquidity and/or
credit support to or for the account of such SPC to support the funding or
maintenance of Loans and (ii) disclose on a confidential basis any
non-public information relating to its Loans to any rating agency, commercial
paper dealer or provider of any surety, guarantee or credit or liquidity
enhancement to such SPC. This Section may not be amended without the
written consent of the SPC. Company acknowledges and agrees, subject to the
next sentence, that, to the fullest extent permitted under applicable law, each
SPC, for purposes of Sections 2.16, 2.17, 2.18, 2.19, 10.2, 10.3 and 10.4,
shall be considered a Lender. Company shall not be required to pay any amount
under Sections 2.16, 2.17, 2.18, 2.19, 10.2, 10.3 and 10.4 that is greater than
the amount which it would have been required to pay had no grant been made by a
Granting Lender to a SPC.

10.8        Independence of Covenants. All covenants
hereunder shall be given independent effect so that if a particular action or
condition is not permitted by any of such covenants, the fact that it would be
permitted by an exception to, or would otherwise be within the limitations of,
another covenant shall not avoid the occurrence of a Default or an Event of
Default if such action is taken or condition exists.

                10.9        Survival of
Representations, Warranties and Agreements. All representations,
warranties and agreements made herein shall survive the execution and delivery
hereof and the making of any Credit Extension. Notwithstanding anything herein
or implied by law to the contrary, the agreements of each Credit Party set
forth in Sections 2.17(c), 2.18, 2.19, 10.2, 10.3 and 10.4 and the agreements
of Lenders set forth in Sections 2.16, 9.3(b) and 9.6 shall survive the
payment of the Loans, the cancellation or expiration of the Letters of Credit
and the reimbursement of any amounts drawn thereunder, and the termination
hereof.

10.10      No Waiver; Remedies Cumulative. No failure or
delay on the part of any Agent or any Lender in the exercise of any power,
right or privilege hereunder or under any other Credit Document shall impair
such power, right or privilege or be construed to be a waiver of any default or
acquiescence therein, nor shall any single or partial exercise of any such
power, right or privilege preclude other or further exercise thereof or of any
other power, right or privilege. The rights, powers and remedies given to each
Agent and each Lender hereby are cumulative and shall be in addition to and
independent of all rights, powers and remedies existing by virtue of any
statute or rule of law or in any of the other Credit Documents. Any 

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forbearance or failure to exercise, and any delay in
exercising, any right, power or remedy hereunder shall not impair any such
right, power or remedy or be construed to be a waiver thereof, nor shall it
preclude the further exercise of any such right, power or remedy.

10.11      Marshalling; Payments Set Aside. Neither any
Agent nor any Lender shall be under any obligation to marshal any assets in
favor of any Credit Party or any other Person or against or in payment of any
or all of the Obligations. To the extent that any Credit Party makes a payment
or payments to Administrative Agent or Lenders (or to Administrative Agent, on
behalf of Lenders), or Administrative Agent, Collateral Agent or Lenders
enforce any security interests or exercise their rights of setoff, and such
payment or payments or the proceeds of such enforcement or setoff or any part
thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside and/or required to be repaid to a trustee, receiver or
any other party under any bankruptcy law, any other state or federal law,
common law or any equitable cause, then, to the extent of such recovery, the
obligation or part thereof originally intended to be satisfied, and all Liens,
rights and remedies therefor or related thereto, shall be revived and continued
in full force and effect as if such payment or payments had not been made or
such enforcement or setoff had not occurred.

                10.12      Severability.
In case any provision in or obligation hereunder or any Note or other Credit
Document shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.

                10.13      Obligations Several;
Independent Nature of Lenders’ Rights. The obligations of Lenders
hereunder are several and no Lender shall be responsible for the obligations or
Commitment of any other Lender hereunder. Nothing contained herein or in any
other Credit Document, and no action taken by Lenders pursuant hereto or
thereto, shall be deemed to constitute Lenders as a partnership, an
association, a joint venture or any other kind of entity. The amounts payable
at any time hereunder to each Lender shall be a separate and independent debt,
and each Lender shall be entitled to protect and enforce its rights arising out
hereof and it shall not be necessary for any other Lender to be joined as an
additional party in any proceeding for such purpose.

                10.14      Headings.
Section headings herein are included herein for convenience of reference
only and shall not constitute a part hereof for any other purpose or be given
any substantive effect.

                10.15      APPLICABLE LAW.
THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                10.16      CONSENT TO
JURISDICTION.

(a)         ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY CREDIT PARTY
ARISING OUT OF OR RELATING HERETO OR ANY OTHER CREDIT DOCUMENT, OR ANY OF THE
OBLIGATIONS, MAY BE BROUGHT IN 

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ANY STATE
OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW
YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH CREDIT PARTY, FOR ITSELF
AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (i) ACCEPTS GENERALLY
AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; (ii) WAIVES
ANY DEFENSE OF FORUM NON CONVENIENS; (iii) AGREES THAT SERVICE OF ALL
PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED
OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE CREDIT PARTY AT
ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 10.1 AND TO ANY PROCESS
AGENT SELECTED IN ACCORDANCE WITH SECTION 3.1(bb) ABOVE IS SUFFICIENT TO
CONFER PERSONAL JURISDICTION OVER THE APPLICABLE CREDIT PARTY IN ANY SUCH
PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING
SERVICE IN EVERY RESPECT; AND (iv) AGREES THAT AGENTS AND LENDERS RETAIN
THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS
AGAINST ANY CREDIT PARTY IN THE COURTS OF ANY OTHER JURISDICTION.

(b)         EACH CREDIT PARTY HEREBY AGREES THAT PROCESS MAY BE
SERVED ON IT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE ADDRESSES
PERTAINING TO IT AS SPECIFIED IN SECTION 10.1. ANY AND ALL SERVICE OF
PROCESS AND ANY OTHER NOTICE IN ANY SUCH ACTION, SUIT OR PROCEEDING SHALL BE
EFFECTIVE AGAINST ANY CREDIT PARTY IF GIVEN BY REGISTERED OR CERTIFIED MAIL,
RETURN RECEIPT REQUESTED, OR BY ANY OTHER MEANS OR MAIL WHICH REQUIRES A SIGNED
RECEIPT, POSTAGE PREPAID, MAILED AS PROVIDED ABOVE.

                10.17      WAIVER OF JURY TRIAL. EACH
OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER
ANY OF THE OTHER CREDIT DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE
SUBJECT MATTER OF THIS LOAN TRANSACTION OR THE LENDER/BORROWER RELATIONSHIP
THAT IS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL
ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND
THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT
CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND
STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL
INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED
ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO
RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER
WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL
AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS 

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FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS
WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY
OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO
THIS SECTION 10.16 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS
WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS HERETO OR ANY OF THE OTHER CREDIT DOCUMENTS OR TO ANY OTHER
DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS MADE HEREUNDER. IN THE EVENT OF
LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY
THE COURT.

                10.18      Confidentiality.
Each Lender shall hold all non-public information regarding Company and its
Subsidiaries and their businesses clearly identified as such by Company and
obtained by such Lender pursuant to the requirements hereof  in accordance with such Lender’s customary
procedures for handling confidential information of  such nature, it being understood and agreed
by Company that, in any event, a Lender may make (i) disclosures of such
information to Affiliates of such Lender and to their directors, officers,
employees, agents and advisors (and to other persons authorized by a Lender or
Agent to organize, present or disseminate such information in connection with
disclosures otherwise made in accordance with this Section 10.17), who
shall be advised of the confidential nature of the disclosures, (ii) disclosures
of such information reasonably required by any bona fide or potential assignee,
transferee or participant in connection with the contemplated assignment,
transfer or participation by such Lender of any Loans or any participations
therein, who shall be advised of the confidential nature of the disclosures, (iii) disclosure
to any rating agency when required by it, provided that, prior to any
disclosure, such rating agency shall undertake in writing to preserve the
confidentiality of any confidential information relating to the Credit Parties
received by it from any of the Agents or any Lender, (iv) disclosures to
any Lender’s financing sources, provided that prior to any disclosure, such
financing source is informed of the confidential nature of the information, (v) disclosure
of information which (A) becomes publicly available other than as a result
of a breach of this Section 10.17 or (B) becomes available to
Administrative Agent or any Lender on a non-confidential basis from a source
other than Company, and (vi) disclosures required or requested by any
governmental agency or representative thereof or by the NAIC or pursuant to
legal or judicial process; provided, unless specifically prohibited by
applicable law or court order, each Lender shall make reasonable efforts to
notify Company of any request by any governmental agency or representative
thereof (other than any such request in connection with any examination of the
financial condition or other routine examination of such Lender by such governmental
agency) for disclosure of any such non-public information prior to disclosure
of such information. Notwithstanding the foregoing, on or after the Closing
Date, Administrative Agent may, at its own expense, issue news releases and
publish “tombstone”
advertisements and other announcements relating to this transaction in
newspapers, trade journals and other appropriate media.

                10.19      Usury Savings Clause.
Notwithstanding any other provision herein, the aggregate interest rate charged
or agreed to be paid with respect to any of the Obligations, including all
charges or fees in connection therewith deemed in the nature of interest under
applicable law shall not exceed the Highest Lawful Rate. If the rate of
interest (determined without regard to the preceding sentence) under this
Agreement at any time exceeds the Highest 

 105
 

 

Lawful Rate, the outstanding amount of the Loans made
hereunder shall bear interest at the Highest Lawful Rate until the total amount
of interest due hereunder equals the amount of interest which would have been
due hereunder if the stated rates of interest set forth in this Agreement had
at all times been in effect. In addition, if when the Loans made hereunder are
repaid in full the total interest due hereunder (taking into account the increase
provided for above) is less than the total amount of interest which would have
been due hereunder if the stated rates of interest set forth in this Agreement
had at all times been in effect, then to the extent permitted by law, Company
shall pay to Administrative Agent an amount equal to the difference between the
amount of interest paid and the amount of interest which would have been paid
if the Highest Lawful Rate had at all times been in effect. Notwithstanding the
foregoing, it is the intention of Lenders and Company to conform strictly to
any applicable usury laws. Accordingly, if any Lender contracts for, charges,
or receives any consideration which constitutes interest in excess of the
Highest Lawful Rate, then any such excess shall be cancelled automatically and,
if previously paid, shall at such Lender’s option be applied to the outstanding
amount of the Loans made hereunder or be refunded to Company. In determining
whether the interest contracted for, charged, or received by Administrative
Agent or a Lender exceeds the Highest Lawful Rate, such Person may, to the
extent permitted by applicable law, (a) characterize any payment that is
not principal as an expense, fee, or premium rather than interest, (b) exclude
voluntary prepayments and the effects thereof, and (c) amortize, prorate,
allocate, and spread in equal or unequal parts the total amount of interest,
throughout the contemplated term of the Obligations hereunder.

                10.20      Counterparts.
This Agreement may be executed in any number of counterparts, each of which
when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same instrument.

                10.21      Effectiveness.
This Agreement shall become effective upon the execution of a counterpart
hereof by each of the parties hereto and receipt by Company and Administrative
Agent of written or telephonic notification of such execution and authorization
of delivery thereof.

                10.22      Patriot Act.
Each Lender and Administrative Agent (for itself and not on behalf of any
Lender) hereby notifies Company that pursuant to the requirements of the
Patriot Act, it is required to obtain, verify and record information that
identifies Company, which information includes the name and address of Company and
other information that will allow such Lender or Administrative Agent, as
applicable, to identify Company in accordance with the Patriot Act.

                10.23      Disclosure. Each
Credit Party and each Lender hereby acknowledges and agrees that Administrative
Agent and/or its Affiliates and Related Funds from time to time may hold
investments in, and make other loans to, or have other relationships with any
of the Credit Parties and their respective Affiliates. In addition, each Credit
Party and each Lender hereby acknowledges that that the Administrative Agent
and/or affiliates of the Administrative Agent and/or its Related Funds have
also purchased certain equity interests in the Company.

                10.24      Appointment for
Perfection. Each Lender hereby appoints each other Lender as its
agent for the purpose of perfecting Liens, for the benefit of Administrative
Agent and the Lenders, in assets which, in accordance with Article 9 of
the UCC or any other applicable law can be perfected only by possession. Should
any Lender (other than Administrative Agent)

 106
 

 

obtain possession of any such Collateral, such Lender
shall notify Administrative Agent thereof, and, promptly upon Administrative
Agent’s request therefore shall deliver such Collateral to Administrative Agent
or otherwise deal with such Collateral in accordance with Administrative Agent’s
instructions.

10.25    Advertising and Publicity.

No Credit Party
shall issue or disseminate to the public (by advertisement, including without
limitation any “tombstone” advertisement, press release or otherwise), submit
for publication or otherwise cause or seek to publish any information
describing the credit or other financial accommodations made available by
Lenders pursuant to this Agreement and the other Credit Documents without the
prior written consent of Administrative Agent. Nothing in the foregoing shall
be construed to prohibit any Credit Party from making any submission or filing
which it is required to make by applicable law or pursuant to judicial process;
provided, that, (i) such filing or submission shall contain only such
information as is necessary to comply with applicable law or judicial process
and (ii) unless specifically prohibited by applicable law or court order,
Company shall promptly notify Administrative Agent of the requirement to make
such submission or filing and provide Administrative Agent with a copy thereof.

SECTION 11.       CONVERSION

                11.1        Conversion. The
outstanding principal amount of any Tranche B Term Loan held by a Lender may,
at any time or from time to time (including during any prepayment notice
period) at the option of such Lender, be converted into shares of Preferred
Stock on the terms and conditions set forth in this Section 11.1.

(a)  The
outstanding principal amount of any Tranche B Term Loan held by a Lender shall
be convertible in the manner hereinafter set forth into a number of fully-paid
and nonassessable shares of Preferred Stock equal to the result obtained
(calculated to the nearest 1/1,000th of a share) by dividing the principal
amount being converted by the Conversion Price.

(b)  The Conversion Price shall be adjusted from
time to time as follows:

(i)  In case
the Company shall at any time after the Closing Date declare a dividend, or
make a distribution, on the outstanding shares of Preferred Stock in shares of
Preferred Stock or subdivide or reclassify the outstanding shares of Preferred
Stock into a greater number of shares of Preferred Stock or combine or
reclassify the outstanding shares of Preferred Stock into a smaller number of
shares of Preferred Stock, then, and in each such case,

(A) the
Conversion Price as in effect immediately prior to such event shall be adjusted
by multiplying such Conversion Price by a fraction, the numerator of which is
the number of shares of Preferred Stock outstanding immediately prior to such
event and the denominator of which is the number of shares of Preferred Stock
outstanding immediately after such event; and

 

 107

 

(B) such
adjustment shall become effective (I) in the case of any such dividend or
distribution, immediately after the close of business on the record date for
the determination of holders of shares of Preferred Stock entitled to receive
such dividend or distribution, or (II) in the case of any such
subdivision, reclassification or combination, at the close of business on the
day upon which such corporate action becomes effective.

(ii)  In case
the Company shall issue shares of Preferred Stock (or rights, options or
warrants to purchase or other securities convertible into or exchangeable for
shares of Preferred Stock) at any time after the Closing Date at a price per
share less than the Current Market Price on the date of issuance of such shares
(or the date of issuance of such rights, options, warrants or other convertible
or exchangeable securities) (the “Trigger Price”),
other than in a transaction to which subparagraph (i) of
this paragraph (b) is applicable, then

(A) the
Conversion Price as in effect immediately prior to such issuance shall be
adjusted by multiplying such Conversion Price by a fraction, (I) the
numerator of which is the sum of (1) the number of shares of Preferred
Stock outstanding immediately prior to such event and (2) the number of shares
of Preferred Stock which the aggregate consideration receivable by the Company
for the total number of shares of Preferred Stock so issued (or issuable upon
the exercise or conversion of any such rights, options, warrants or other
convertible or exchangeable securities) would purchase at the Trigger Price as
in effect immediately prior to such issuance, and (II) the denominator of
which is the sum of (1) the number of shares of Preferred Stock
outstanding immediately prior to such event and (2) the number of
additional shares of Preferred Stock issued (or issuable upon the exercise or
conversion of any such rights, options, warrants or other convertible or
exchangeable securities); and

(B) such
adjustment shall become effective immediately after the date of such issuance.

For purposes of
this subparagraph (ii), the aggregate
consideration receivable by the Company in connection with the issuance of
shares of Preferred Stock or of rights, options or warrants to purchase or
other securities convertible into or exchangeable for shares of Preferred Stock
shall be deemed to be equal to the sum of the net offering price (after
deduction of underwriting discounts or commissions and expenses payable to
third parties, if any) of all such securities plus the aggregate amount, if
any, payable upon exercise of any such rights, options or warrants or
conversion or exchange of any such convertible or exchangeable securities into
or for shares of Preferred Stock.

(iii)  In
case the Company shall, by dividend or otherwise, distribute to all holders of
its Preferred Stock evidences of its indebtedness or assets (other than any
dividend or distribution referred to in subparagraph (i) of
this paragraph (b) or 

 108
 

 

distributions of
any rights or warrants referred to in subparagraph (ii) of
this paragraph (b)) then, and in each such
case,

(A) the
Conversion Price as in effect immediately prior to such event shall be adjusted
by multiplying such Conversion Price by a fraction, the numerator of which is
the Current Market Price on the date fixed for such determination less the then
fair market value of the portion of the assets or evidences of indebtedness so
distributed applicable to one share of Preferred Stock and the denominator of
which is the Current Market Price.

(B)  such
adjustment shall become effective immediately prior to the opening of business
on the day following the date fixed for the determination of stockholders
entitled to receive such distribution.

(iv)  In case
the Company shall be a party to any transaction (including, without limitation,
a merger, consolidation, sale of all or substantially all of the Company’s
assets or recapitalization of the Preferred Stock and excluding any transaction
to which subparagraph (i) or (ii) of this paragraph (b) is
applicable) in which the previously outstanding Preferred Stock shall be
changed into or, pursuant to the operation of law or the terms of the
transaction to which the Company is a party, exchanged for different securities
of the Company or common stock or other securities of another corporation or
interests in a noncorporate entity or other property (including cash) or any
combination of any of the foregoing, then, as a condition of the consummation
of such transaction, lawful and adequate provision shall be made so that each
Lender with respect to a Tranche B Term Loan shall be entitled, upon
conversion, to an amount per share equal to (A) the aggregate amount of
stock, securities, cash and/or any other property (payable in kind), as the
case may be, into which or for which each share of Preferred Stock is changed
or exchanged times (B) the number of
shares of Preferred Stock into which the then outstanding principal amount of
such Lender’s Tranche B Term Loan is convertible immediately prior to the
consummation of such transaction.

(c)  The Company shall not effect any transaction
described in subparagraph (iv) of paragraph (b) above unless, prior to the consummation
of such transaction, the resulting or surviving corporation or other
corporation issuing or delivering such shares, other securities or property or
otherwise, shall make appropriate provision with respect to the rights and
interests of the Tranche B Term Loan Lenders to the end that the provisions
hereof (including without limitation provisions for adjustments of the
Conversion Price) shall thereafter be applicable, as nearly as reasonably may
be, to any such other shares of stock and other securities and property
deliverable upon conversion of the then outstanding principal amount of the
Tranche B Term Loans or other convertible stock or securities received by the
Tranche B Term Loan Lenders in place thereof; and any such resulting or
surviving corporation or other corporation issuing or delivering such shares,
other securities or property shall expressly assume, by written instrument
executed and mailed to the Administrative Agent, the obligation to deliver,
upon the exercise of the conversion privilege, such shares, securities or
property as the then outstanding principal amount of the Tranche B Term Loans,
or other convertible stock or securities received by the Tranche B Term Loan
Lenders in place thereof; shall be entitled to receive, pursuant to the 

 109
 

 

provisions hereof, and to make provision for the shares, securities or
property other than Preferred Stock shall be issuable or deliverable upon
conversion as aforesaid, then all references to Preferred Stock in paragraph (b) of
this Section 11.1 shall be deemed to apply, so far as provided and as
nearly as is reasonable, to any such shares, other securities or property. The
resulting or surviving corporation or other corporation issuing or delivering
such shares, other securities or property or otherwise shall be deemed
substituted for the Company for all purposes of this Agreement.

(d)  A Tranche B Term Loan Lender may exercise
the right to convert the outstanding principal amount of its Tranche B Term
Loan into shares of Preferred Stock by delivering to the Company a written
notice stating that such Lender elects to convert the then outstanding
principal amount of its Tranche B Term Loan or a specified amount thereof, in
accordance with the provisions of this Section 11.1 and specifying the
name or names in which such Lender wishes the certificate or certificates for
shares of Preferred Stock to be issued. In case such notice shall specify a
name or names other than that of the Lender, such notice shall be accompanied
by payment of all transfer taxes payable upon the issuance of shares of
Preferred Stock in such name or names. Other than such taxes, the Company will
pay any and all issue and other taxes (other than taxes based on income) that
may be payable in respect of any issue or delivery of shares of Preferred Stock
on conversion of the outstanding principal amount of a Tranche B Term Loan
pursuant hereto. As promptly as practicable after receipt of the conversion
notice referenced above and, if applicable, payment of all transfer taxes (or
the demonstration to the satisfaction of the Company that such taxes have been
paid), the Company shall deliver or cause to be delivered certificates, affixed
with such legends as the Company shall deem necessary for purposes of Federal
or state securities laws, representing the number of validly issued, fully paid
and nonassessable full shares of Preferred Stock to which the Lender shall be
entitled. Such conversion shall be deemed to have been made at the close of
business on the date of giving of such notice, and the person or persons in
whose name any certificate or certificates for shares of Preferred Stock shall
be issuable upon such conversion shall be deemed to have become the holder or
holders of record of the shares represented thereby on such date (regardless of
the delivery of any certificates by the Company as provided in this subparagraph (d) hereof). The Company shall not be
required to convert while the transfer books of the Company for the Preferred
Stock are closed for any purpose (but not for any period in excess of ten (10) Business
Days); but the election of a Tranche B Term Loan Lender to convert all or a portion
of its Tranche B Term Loan during any period while such books are so closed
shall become effective for conversion immediately upon the reopening of such
books, as if the conversion had been made on the date such election was
delivered, and at the conversion rate in effect at the date such election was
delivered.

(e)  In any case in which Section 11.1(b) shall
require that an adjustment as a result of any event becomes effective after a
record date for such event, the Company may elect to defer until after the
occurrence of such event (i) issuing to the applicable Lender after such
record date and before the occurrence of such event the additional shares of
Preferred Stock issuable upon such conversion over and above the shares of
Preferred Stock issuable upon such conversion on the basis of the conversion
rate prior to adjustment and (ii) (y) in the case of conversion of
all of the outstanding principal amount of such Lender’s Tranche B Term Loan,
pay a cash adjustment and (z) in the case of conversion of less than all
of the outstanding 

 110
 

 

principal amount of such Lender’s Tranche B Term Loan, increase the
outstanding principal amount of such Lender’s Tranche B Term Loan, in lieu of a
fractional share of Preferred Stock pursuant to paragraph (f) below;
and, in lieu of the shares the issuance of which is so deferred, the Company
shall issue due bills or other appropriate evidence of the right to receive
such shares.

(f)  In connection with the conversion of a
Tranche B Term Loan, no fractions of shares of Preferred Stock shall be issued,
but in lieu thereof the Company shall, (i) in the case of conversion of
all of the then total outstanding principal amount of a Lender’s Tranche B Term
Loan, pay a cash adjustment and (ii) in the case of conversion of less
than the then total outstanding principal amount of such Lender’s Tranche B
Term Loan, increase the outstanding principal amount of such Lender’s Tranche B
Term Loan, in respect of such fractional interest in an amount equal to such
fractional interest multiplied by the Current Market Price per share of
Preferred Stock on the day on which such outstanding principal amount is deemed
to have been converted.

(g)  The Company shall at all times reserve and
keep available out of its authorized and unissued Preferred Stock, solely for
the purpose of effecting the conversions permitted by this Section 11.1,
such number of shares of Preferred Stock as shall from time to time be
sufficient to effect the conversion of all of the then outstanding aggregate
principal amount of Tranche B Term Loans. The Company shall from time to time,
subject to and in accordance with the General Corporation Law of the State of
Delaware, increase the authorized amount of Preferred Stock if at any time the
number of authorized shares of Preferred Stock remaining unissued shall not be
sufficient to permit the conversion at such time of all of the then outstanding
aggregate principal amount of Tranche B Term Loans. The Company shall cause any
shares of Preferred Stock issued upon conversion to be listed for trading on
any securities exchange on which the Preferred Stock is at the time listed, and
shall deliver such notices as may be required by such exchange in connection
with any such issuance.

(h)  [Reserved].

(i)  Notwithstanding anything to the contrary
contained herein, no adjustment in the Conversion Price pursuant to this Section 11.1
shall be required unless such adjustment would require an increase or decrease
of at least 1% in such Conversion Price, provided, however,
that any adjustments which, by reason of this paragraph
(i), are not required to be made shall be carried forward and taken
into account in any subsequent adjustment.

(j)  Upon the expiration of any rights, options
or warrants to purchase or other securities convertible into or exchangeable
for shares of Preferred Stock for which an adjustment to the Conversion Price
is made hereunder, if any thereof shall not have been exercised, converted or
exchanged, the Conversion Price shall, upon such expiration, be readjusted and
shall thereafter be such as it would have been had it been originally adjusted
(or had the original adjustment not been required, as the case may be) on the
basis of (i) the only shares of Preferred Stock so issued were the shares
of Preferred Stock, if any, actually issued or sold upon the exercise of such
rights, options or warrants to purchase or securities convertible into or
exchangeable for shares of Preferred Stock and (ii) such shares of
Preferred Stock, if any, were 

 111
 

 

issued or sold for the consideration actually received by the Company
upon such exercise plus the consideration, if any, of all such rights, options
or warrants to purchase or securities convertible into or exchangeable for
shares of Preferred Stock, whether or not exercised; provided,
however, that no such readjustment shall have the effect of
increasing the Conversion Price by an amount in excess of the amount of the
adjustment initially made in respect of the issuance, sale or grant of such
rights, options or warrants to purchase, or securities convertible into or
exchangeable for, shares of Preferred Stock.

(k)  Prior to the conversion of its Tranche B
Term Loan, no Tranche B Term Loan Lender shall not be entitled to any rights of
a stockholder of the Company with respect to the Preferred Stock into which the
Tranche B Term Loans are convertible, including without limitation the right to
vote or to receive dividends or other distributions, and shall not be entitled
to receive any notice of any proceedings of the Company with respect to the
Preferred Stock, except as provided herein.

Section 11.2. Reports as to Adjustments. Whenever
the Conversion Price is adjusted as provided in Section 11.1, the Company
shall promptly mail to the Administrative Agent a notice stating that the
Conversion Price has been adjusted and setting forth the new Conversion Price
and the new number of shares of Preferred Stock (or describing the new stock,
securities, cash or other property) into which the then outstanding principal
amount of the Tranche B Term Loans is convertible as a result of such
adjustment, a brief statement of the facts requiring such adjustment and the
computation thereof, and when such adjustment became effective.

Section 11.3. No Deemed Consent. Notwithstanding
anything to the contrary in this Article XI, nothing in this Article XI
shall be construed as a consent by Requisite Lenders to declare or take any
action not otherwise permitted by this Agreement.

[Remainder of page intentionally left blank]

 112

 

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

	
  

  	
   

  	
  GRANITE BROADCASTING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Lawrence I. Wills

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Lawrence I. Wills

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Senior Vice President - Chief Financial
  Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CHANNEL 11 LICENSE, INC.

  
	
   

  	
   

  	
  GRANITE RESPONSE TELEVISION, INC.

  
	
   

  	
   

  	
  KBJR LICENSE, INC.

  
	
   

  	
   

  	
  KBJR, INC.

  
	
   

  	
   

  	
  KBWB LICENSE, INC.

  
	
   

  	
   

  	
  KBWB, INC.

  
	
   

  	
   

  	
  KSEE LICENSE, INC.

  
	
   

  	
   

  	
  KSEE TELEVISION, INC.

  
	
   

  	
   

  	
  QUEEN CITY BROADCASTING OF NEW YORK, INC.

  
	
   

  	
   

  	
  WEEK-TV LICENSE, INC.

  
	
   

  	
   

  	
  WKBW-TV LICENSE, INC.

  
	
   

  	
   

  	
  WTVH, LLC

  
	
   

  	
   

  	
  WTVH LICENSE, INC.

  
	
   

  	
   

  	
  WXON LICENSE, INC.

  
	
   

  	
   

  	
  WXON, INC.

  
	
   

  	
   

  	
  WISE-TV, INC.

  
	
   

  	
   

  	
  WISE-TV LICENSE, LLC

  
	
   

  	
   

  	
  WBNG, INC.

  
	
   

  	
   

  	
  WBNG LICENSE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Lawrence I. Wills

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Lawrence I. Wills

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Vice President, Secretary and Treasurer

  

 

 

 

CREDIT AND GUARANTY AGREEMENT

 

 

 

	
  

  	
   

  	
  WTVH, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  GRANITE BROADCASTING

  CORPORATION, the Sole Member of

  WTVH, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Lawrence I. Wills

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Lawrence I. Wills

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Senior Vice President - Chief Financial
  Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
						

 

 

 

 

 

CREDIT AND GUARANTY AGREEMENT

 

 

	
  

  	
   

  	
  SILVER POINT FINANCE, LLC,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  as Administrative Agent

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Richard Petrilli

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Richard Petrilli

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Authorized Signatory

  

 

 

 

 

CREDIT AND GUARANTY AGREEMENT

 

 

	
  

  	
   

  	
  FIELD POINT III, LTD,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Richard Petrilli

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Richard Petrilli

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Authorized Signatory

  

 

 

 

 

 

CREDIT AND GUARANTY AGREEMENT

 

 

	
  

  	
   

  	
  FIELD POINT IV, LTD,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Richard Petrilli

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Richard Petrilli

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Authorized Signatory

  

 

 

 

 

 

 

CREDIT AND GUARANTY AGREEMENT

 

 

	
  

  	
   

  	
  SPF CDO I, LLC,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  as Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Richard Petrilli

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Richard Petrilli

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Authorized Signatory

  

 

 

 

 

 

CREDIT AND GUARANTY AGREEMENT

 

APPENDIX A-1

TO CREDIT AND
GUARANTY AGREEMENT

 

 

Tranche
A Term Loan Commitments

 

	
  Lender

  	
   

  	
  Tranche A 

  Term Loan Commitment

  	
   

  	
  Pro

  Rata Share

  	
   

  
	
  Field Point III,
  Ltd.

  	
   

  	
  $

  	
  30,000,000.00

  	
   

  	
  75.0%

  	
   

  
	
  SPF CDO I, Ltd.

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  	
  25.0%

  	
   

  
	
  Total

  	
   

  	
  $

  	
  40,000,000.00

  	
   

  	
  100%

  	
   

  

 

 

APPENDIX A-2

TO CREDIT AND
GUARANTY AGREEMENT

 

Tranche
B Term Loan Commitments

	
  Lender

  	
   

  	
  Tranche B 

  Term Loan Commitment

  	
   

  	
  Pro

  Rata Share

  	
   

  
	
  Field Point III,
  Ltd.

  	
   

  	
  $

  	
  9,000,000.00

  	
   

  	
  45.0%

  	
   

  
	
  Field Point IV,
  Ltd.

  	
   

  	
  $

  	
  13,500,000.00

  	
   

  	
  30.0%

  	
   

  
	
  SPF CDO I, Ltd.

  	
   

  	
  $

  	
  7,500,000.00

  	
   

  	
  25.0%

  	
   

  
	
  Total

  	
   

  	
  $

  	
  30,000,000.00

  	
   

  	
  100%

  	
   

  

 

 Appendix A-2

 

APPENDIX B

TO CREDIT AND
GUARANTY AGREEMENT

 

Notice
Addresses

TO ANY CREDIT PARTY

767 Third Avenue, 34th Floor

New York, New York 10017

Attention: Lawrence I. Wills

Telecopier: (212) 826-2858

in each case, with a copy
to:

Akin Gump Strauss Hauer & Feld LLP
1333 New Hampshire Avenue, N.W. 

Washington, DC 20036-1564
Attention: Russell Parks

Telecopier: (202) 887-4288

 

SILVER POINT FINANCE, LLC

as Administrative Agent

Silver Point Finance, LLC,
   as Administrative Agent

Two Greenwich Plaza, 1st Floor

Greenwich, CT  06830

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