Document:

Form S-8 Ex 4.03 Incentive Stock Compensation Plan

Exhibit 4.03
THE HARTFORD 2014 INCENTIVE STOCK PLAN
1. Purpose
 The purpose of the Plan is to motivate and reward superior performance on the part of Key Employees of The Hartford Financial Services Group, Inc. (“The Hartford” or “the Company”) and its subsidiaries and affiliates and to thereby attract and retain Key Employees of superior ability. In addition, the Plan is intended to further opportunities for stock ownership by such Key Employees and Directors in order to increase their proprietary interest in The Hartford and, as a result, their interest in the success of the Company. Awards will be made, in the discretion of the Committee, to Key Employees (including officers and directors who are also Key Employees) whose responsibilities and decisions directly affect the performance of any Participating Company and its subsidiaries, and also to Directors. Such incentive awards may consist of Options, Rights, Performance Shares, Restricted Stock, Restricted Units or any combination of the foregoing, as the Committee may determine.
 2. Definitions
 When used herein, the following terms shall have the following meanings:
 “Act” means the Securities Exchange Act of 1934, as amended.
 “Award” means an award granted to any Key Employee or Director in accordance with the provisions of the Plan in the form of Options, Rights, Performance Shares, Restricted Stock or Restricted Units, or any combination of the foregoing, as applicable.
 “Award Document” means the written notice, agreement, or other document evidencing each Award granted under the Plan. Such Award Document may be in an electronic, internet, intranet or other non-paper form, including any acceptance thereof and actions thereunder by an Award recipient.
 “Beneficial Owner” means any Person who, directly or indirectly, has the right to vote or dispose of or has “beneficial ownership” (within the meaning of Rule 13d-3 under the Act) of any securities of a company, including any such right pursuant to any agreement, arrangement or understanding (whether or not in writing),  provided that : (a) a Person shall not be deemed the Beneficial Owner of any security as a result of an agreement, arrangement or understanding to vote such security (i) arising solely from a revocable proxy or consent given in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the Act and the applicable rules and regulations thereunder, or (ii) made in connection with, or to otherwise participate in, a proxy or consent solicitation made, or to be made, pursuant to, and in accordance with, the applicable provisions of the Act and the applicable rules and regulations thereunder, in either case described in clause (i) or (ii) above, whether or not such agreement, arrangement or understanding is also then reportable by such Person on Schedule 13D under the Act (or any comparable or successor report); and (b) a Person engaged in business as an underwriter of securities shall not be deemed to be the Beneficial Owner of any security acquired through such Person’s participation in good faith in a firm commitment underwriting until the expiration of forty days after the date of such acquisition.

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 “Beneficiary” means the beneficiary or beneficiaries designated pursuant to the Plan to receive the amount, if any, payable under the Plan upon the death of an Award recipient.
 “Board” means the Board of Directors of the Company.
 “Change of Control” means the occurrence of an event defined in Section 9 of the Plan.
 “Code” means the Internal Revenue Code of 1986, as amended. For purposes of this Plan, references to sections of the Code shall be deemed to include references to any applicable regulations thereunder and any successor or similar provision.
“Committee” means the Compensation and Management Development Committee of the Board or such other committee as may be designated by the Board to administer the Plan. If the Committee does not exist or cannot function for any reason, the Board may take any action under the Plan that would otherwise be the responsibility of the Committee.
 “Company” means The Hartford Financial Services Group, Inc. and its successors and assigns.
 “Director” means a member of the Board who is not an employee of any Participating Company.
 “Dividend Equivalents” means an amount credited with respect to an outstanding Restricted Unit equal to the cash dividends paid or property distributions awarded upon one share of Stock. Any Dividend Equivalents on unearned performance-based Awards, if accrued, but will only be paid as and when the underlying performance-based Awards are vested and payable.
 “Eligible Employee” means an Employee as defined in the Plan; provided, however, that except as the Board or the Committee, pursuant to authority delegated by the Board, may otherwise provide on a basis uniformly applicable to all persons similarly situated, “Eligible Employee” shall not include any “Ineligible Person,” which includes: (a) a person who (i) holds a position with the Company’s “HARTEMP” Program, (ii) is hired to work for a Participating Company through a temporary employment agency, or (iii) is hired to a position with a Participating Company with notice on his or her date of hire that the position will terminate on a certain date; (b) a person who is a leased employee (within the meaning of Code Section 414(n)(2)) of a Participating Company or is otherwise employed by or through a temporary help firm, technical help firm, staffing firm, employee leasing firm, or professional employer organization, regardless of whether such person is an Employee of a Participating Company, and (c) a person who performs services for a Participating Company as an independent contractor or under any other non-employee classification, or who is classified by a Participating Company as, or determined by a Participating Company to be, an independent contractor, regardless of whether such person is characterized or ultimately determined by the Internal Revenue Service or any other Federal, State or local governmental authority or regulatory body to be an employee of a Participating Company or its affiliates for income or wage tax purposes or for any other purpose.
 
Notwithstanding any provision in the Plan to the contrary, if any person is an Ineligible Person, or otherwise does not qualify as an Eligible Employee, or otherwise is ineligible to participate in the Plan, 

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and such person is later required by a court or governmental authority or regulatory body to be classified as a person who is eligible to participate in the Plan, such person shall not be eligible to participate in the Plan, notwithstanding such classification, unless and until designated as an Eligible Employee by the Committee, and if so designated, the participation of such person in the Plan shall be prospective only.
 “Employee” means any person regularly employed by a Participating Company, but shall not include any person who performs services for a Participating Company as an independent contractor or under any other non-employee classification, or who is classified by a Participating Company as, or determined by a Participating Company to be, an independent contractor.
 “Fair Market Value,” unless otherwise indicated in the provisions of this Plan, means a price that is based on the opening, closing, actual, high, low, or average selling prices of one share of Stock reported on the New York Stock Exchange or other established stock exchange (or exchanges) on the applicable date, the preceding trading day, the next succeeding trading day, or an average of trading days, as determined by the Committee in its discretion. Unless the Committee determines otherwise, such Fair Market Value shall be deemed, as of any date, to be equal to the reported closing price for one share of Stock on the New York Stock Exchange or, if no sales of Stock have taken place on such date, the reported closing price on the most recent date on which selling prices were quoted, the determination to be made in the discretion of the Committee.
 “Incentive Stock Option” means a stock option qualified under Section 422 of the Code.
“Key Employee” means an Eligible Employee (including any officer or director who is also an Eligible Employee) whose responsibilities and decisions, in the judgment of the Committee, directly affect the performance of the Company and its subsidiaries.
 “Option” means an option awarded under Section 5 of the Plan to purchase Stock of the Company, which option may be an Incentive Stock Option or a non-qualified stock option.
 “Participating Company” means the Company or any subsidiary or other affiliate of the Company; provided, however, for Incentive Stock Options only, “Participating Company” means the Company or any corporation which at the time such Option is granted qualifies as a “subsidiary” of the Company under Section 424(f) of the Code.
 “Performance Share” means a performance share awarded under Section 6 of the Plan.
 “Person” has the meaning ascribed to such term in Section 3(a)(9) of the Act, as supplemented by Section 13(d)(3) of the Act; provided, however, that Person shall not include: (a) the Company, any subsidiary of the Company or any other Person controlled by the Company, (b) any trustee or other fiduciary holding securities under any employee benefit plan of the Company or of any subsidiary of the Company, or (c) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of securities of the Company.
 “Plan” means The Hartford 2014 Incentive Stock Plan, as the same may be amended, administered or interpreted from time to time.

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 “Plan Year” means the calendar year.
 “Restricted Stock” means Stock awarded under Section 7 of the Plan subject to such restrictions as the Committee deems appropriate or desirable.
 “Restricted Unit” means a contractual right awarded under Section 7 of the Plan to receive pursuant to the Plan one share of Stock at the end of a specified period of time, subject to such restrictions as the Committee deems appropriate or desirable.
 “Restriction Period” means, in the case of Performance Shares, Restricted Stock or Restricted Units the period established by the Committee pursuant to Section 6 or 7, as applicable, during which shares of Stock or other rights of the recipient of such an Award (or his or her permissive assigns) remain subject to forfeiture pending completion of a period of service or such other criteria or conditions as the Committee shall specify.
 “Retirement” means (i) satisfaction of the requirements for early or normal retirement under the final average pay formula of the Retirement Plan, (ii) attaining at least age 65 with at least five years of service, (iii) attaining at least age 50 with at least 10 years of service, where age plus service equals or exceeds 70, or (iv) satisfaction of such other definition as is set forth in the Award Document and/or any administrative rules or other terms and conditions adopted by the Committee as in effect at the time the award is granted, provided such event results in such Key Employee’s separation from employment with the Company.
 “Retirement Plan” means The Hartford Retirement Plan for U.S. Employees, as amended from time to time.
 “Right” means a stock appreciation right awarded under Section 5 of the Plan.
 “Stock” means the common stock ($.01 par value) of The Hartford.
 “The Hartford” means the Company and its subsidiaries, and their successors and assigns.

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“Third Party Service Provider” means any consultant, agent, advisor, or independent contractor who renders services to The Hartford that (a) are not in connection with the offer and sale of The Hartford’s securities in a capital raising transaction, and (b) do not directly or indirectly promote or maintain a market for The Hartford’s securities.
 “Total Disability” means the complete and permanent inability of a Key Employee to perform all of his or her duties under the terms of his or her employment with any Participating Company, as determined by the Committee upon the basis of such evidence, including independent medical reports and data, as the Committee deems appropriate or necessary.
 “Transferee” means any person or entity to whom or to which a non-qualified stock option has been transferred and assigned in accordance with Section 5(h) of the Plan. Unless the Committee shall expressly permit otherwise, with respect to any Key Employee or Director, only (i) the Key Employee’s or Director’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse, mother-in-law, father-in-law, son-in-law or daughter-in-law (including adoptive relationships), (ii) trusts for the exclusive benefit of one or more such persons and/or the Key Employee or Director, and (iii) another entity owned solely by one or more such persons and/or the Key Employee or Director shall be a Transferee.
 3. Shares Subject to the Plan
 Subject to adjustments in accordance with Section 13, the aggregate number of shares of Stock which may be awarded under the Plan shall be subject to a maximum limit applicable to all Awards for the duration of the Plan (the “Maximum Limit”). The Maximum Limit shall be 12,000,000 shares of Stock, which shall consist of (i) a number of shares of Stock not previously authorized for issuance under any plan, plus (ii) the number of shares of Stock remaining available for issuance under The Hartford 2010 Incentive Stock Plan but not subject to outstanding awards as of March 17, 2014. The maximum number of shares of Stock with respect to which Awards may be granted under the Plan in the form of Incentive Stock Options shall be 12,000,000.
 Subject to adjustments in accordance with Section 13, and subject to the Maximum Limit set forth above on the number of Shares that may be awarded in the aggregate under the Plan, the maximum number of shares that may be awarded to Directors under the Plan shall be 1,000,000 shares of Stock. Additionally, a Director may not be granted an Award covering more than 50,000 shares of Stock in any Plan Year, except that this annual limit on Director Awards shall be 100,000 shares of Stock for any Director serving as Chairman of the Board and provided, however, that in the Plan Year in which an individual is first appointed or elected as a Director, the limit applicable to such Director shall be increased by 50,000 shares of Stock.
 

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In addition to the foregoing, in any Plan Year: (a) no individual Key Employee may receive an Award of Options or Rights for more than 2,000,000 shares, and (b) no individual Key Employee may receive an Award of Restricted Stock, Restricted Units or Performance Shares for more than 500,000 shares.
Except with respect to shares of Stock equivalent to a maximum of five percent of the Maximum Limit authorized above in this Section 3, and except as may be provided in Section 9 regarding a Change of Control, any Full Value Awards which vest on the basis of a Key Employee’s continued employment with the Company shall not provide for vesting, other than vesting upon death, Total Disability or Retirement, or such other circumstances, such as a reduction in force or a divestiture or sale of a business or unit, that the Committee finds that a waiver of the applicable restrictions (or any portion thereof) would be in the best interests of the Company, which is more rapid than pro rata annual vesting over a three year period, and any Full Value Awards which vest upon the attainment of performance objectives shall provide for a performance period of at least twelve months. For purposes of this paragraph, a “Full Value Award” is an Award other than in the form of an Option or Right, which is settled by the issuance of Stock.
 Notwithstanding the foregoing, Awards of Restricted Units attributable to a Key Employee’s voluntary deferral of an amount which would otherwise have been payable to the Key Employee in cash shall not be subject to the restrictions set forth in this paragraph and shall not be counted against the five percent limit referenced above.
	
	
	 

Subject to the above limitations, shares of Stock to be issued under the Plan may be made available from the authorized but unissued shares, or shares held by the Company in treasury or from shares purchased in the open market.
 For the purpose of computing the total number of shares of Stock available for Awards under the Plan, there shall be counted against the foregoing limitations the number of shares of Stock subject to issuance upon exercise or settlement of Awards and the number of shares of Stock which equals the value of Performance Share Awards based upon their target payout, in each case determined as at the dates on which such Awards are granted. If any Awards under the Plan are forfeited, terminated, surrendered, exchanged, expire unexercised, or are settled in cash in lieu of Stock (including to effect tax withholding) or for the net issuance of a lesser number of shares than the number subject to the Award, the shares of Stock which were theretofore subject to such Awards shall again be available for Awards under the Plan to the extent of such forfeiture, termination, expiration, or cash or net settlement of such Awards. If any award under the prior The Hartford 2010 Incentive Stock Plan or under the prior The Hartford 2005 Incentive Stock Plan that was outstanding as of March 17, 2014, is forfeited, terminated, surrendered, exchanged, expires unexercised, or is settled in cash in lieu of Stock (including to effect tax withholding) or for the net issuance of a lesser number of shares than the number subject to the award, the shares of Stock subject to such award (or the relevant portion thereof) shall be available for Awards under the Plan and such shares shall be added to the Maximum Limit to the extent of such forfeiture, termination, expiration, or cash or net settlement of such awards.
 

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The Committee may grant other types of equity-based or equity-related awards (“Stock-Based Awards”) not otherwise described by the terms of this Plan (including the grant or offer for sale of unrestricted shares of Stock) in such amounts (subject to the Maximum Limit and other limitations provided for herein) and subject to such terms and conditions as the Committee shall determine. Such Stock-Based Awards may be granted as an inducement to enter the employ of The Hartford or in satisfaction of any obligation of The Hartford to a Key Employee, whether pursuant to this Plan or otherwise, that would otherwise have been payable in cash or in respect of any other obligation of The Hartford. Such Stock-Based Awards may entail the transfer of actual Stock, or payment in cash or otherwise of amounts based on the value of Stock and may include, without limitation, awards designed to comply with or take advantage of the applicable local laws of jurisdictions other than the United States. The Committee shall specify the extent to which the award recipient shall have the right to receive Stock-Based Awards following termination of employment with The Hartford; such provisions need not be uniform among all Stock-Based Awards, and may reflect distinctions based on the reasons for such termination. Except as the Committee shall otherwise specify at or after grant, Stock-Based Awards may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution, and during the award recipient’s lifetime only by the recipient.
 
4. Grant of Awards and Award Documents
 (a) Subject to the provisions of the Plan, the Committee shall: (i) determine and designate from time to time those Key Employees and Directors or groups of Key Employees and Directors to whom Awards are to be granted, (ii) determine the form or forms of Award to be granted to any Key Employee and any Director; (iii) determine the amount or number of shares of Stock subject to each Award; and (iv) determine the terms and conditions of each Award. The Committee may in its discretion also make awards to Third Party Service Providers on substantially the same terms and conditions as Awards are made to Key Employees, subject to such modifications as are necessary to reflect the different nature of the services provided.
 (b) Each Award granted under the Plan shall be evidenced by an Award Document. Such Award Document shall be subject to and incorporate the express terms and conditions of each Award, if any, required under the Plan or required by the Committee.
5. Options and Rights
 (a) With respect to Options and Rights, the Committee shall: (i) authorize the granting of Incentive Stock Options, non-qualified stock options, or a combination of Incentive Stock Options and non-qualified stock options; (ii) authorize the granting of Rights which may or may not be granted in connection with all or part of any Option granted under this Plan; (iii) determine the number of shares of Stock subject to each Option or the number of shares of Stock that shall be used to determine the value of a Right; and
(iv) determine the time or times when and the manner in which each Option or Right shall be exercisable and the duration of the exercise period.

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 (b) Any option issued hereunder which is intended to qualify as an Incentive Stock Option shall be subject to such limitations or requirements as may be necessary for the purposes of Section 422 of the Code or any regulations and rulings thereunder to the extent and in such form as determined by the Committee in its discretion.
 (c) The exercise period for an Option and a Right shall not exceed ten years from the date of grant.
 (d) The Option price per share shall be determined by the Committee at the time any Option is granted and shall be not less than the Fair Market Value of one share of Stock on the date the Option is granted. The grant price related to each Right shall be determined by the Committee at the time any Right is granted; however, such grant price shall not be less than the Fair Market Value of one share of Stock on the date the Right is granted.
 (e) No part of any Option or Right may be exercised until the Key Employee who has been granted the Award shall have remained in the employ of a Participating Company for such period after the date of grant as the Committee may specify, if any, and the Committee may further require exercisability in installments.
 (f) Except as provided in Section 9, the purchase price of the shares of Stock as to which an Option is exercised shall be paid to the Company at the time of exercise either in cash, Stock already owned by the optionee, or a combination of the foregoing having a total Fair Market Value equal to the purchase price. The Committee shall determine acceptable methods for tendering Stock as payment upon exercise of an Option and may impose such limitations and prohibitions on the use of Stock for such purpose as it deems appropriate.
 (g) Unless otherwise set forth in the Award Document, in case of a Key Employee’s termination of employment with all Participating Companies, the following provisions shall apply:
 (i) If a Key Employee who has been granted an Option or Right shall die before such Option or Right has expired, his or her Option or Right may be exercised in full by: (A) the person or persons to whom the Key Employee’s rights under the Option or Right pass upon his or her death pursuant to the terms of the Plan, or if no such person has such right, by his or her executors or administrators; (B) his or her Transferee(s) (with respect to non-qualified Options or Rights); or (C) his or her Beneficiary designated pursuant to the Plan, at any time, or from time to time, within five years after the date of the Key Employee’s death or within such other period, and subject to such terms and conditions as the Committee may specify, but not later than the expiration date specified in Section 5(c) above. Any such Options or Rights not fully exercisable immediately prior to such optionee’s death shall become fully exercisable upon such death unless the Committee, in its sole discretion, shall otherwise determine.
 (ii) If the Key Employee’s employment with all Participating Companies terminates (A) because of his or her Total Disability, or (B) because of his or her voluntary termination of employment due to Retirement, he or she may exercise his or her Options or Rights in full at any time, or from time to time, within five years after the date of the termination of his or her employment, or within such other period, and subject to such terms and conditions as the Committee may specify, but not later than the expiration date specified in Section 5(c) above. Any such Options or Rights not fully exercisable immediately prior to 

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such optionee’s Total Disability or Retirement shall become fully exercisable upon such Total Disability or Retirement unless the Committee, in its sole discretion, shall otherwise determine at the time of grant.
 (iii) If the Key Employee shall be terminated for cause as determined by the Committee, all of such Key Employee’s Options or Rights outstanding at the date of such termination (whether or not then exercisable) shall be canceled without further action by the Key Employee, the Committee or the Company coincident with the effective date of such termination.
 (iv) Except as provided in Section 5(g)(ii) and Section 9, if a Key Employee’s employment terminates for any other reason (including a voluntary resignation), he or she may exercise his or her Options or Rights, to the extent that he or she shall have been entitled to do so at the date of the termination of his or her employment, at any time, or from time to time, within four months after the date of the termination of his or her employment, or within such other period, and subject to such terms and conditions, as the Committee may specify, but not later than the expiration date specified in Section 5(c) above. All Options and Rights held by such Key Employee or any of his or her assigns that are not eligible to be exercised upon the date of such termination shall be canceled without further action by the Key Employee, the Committee or the Company coincident with the effective date of such termination.
 (v) Any Options or Rights not exercised within the period established in accordance with this Section 5(g) shall be subject to Section 5(l) herein.
 (h) Except as provided in this Section 5(h) or required by applicable law, no Option or Right granted under the Plan shall be transferable other than upon the death of the recipient of such Option or Right. During the lifetime of the optionee, an Option or Right shall be exercisable only by the Key Employee or Director to whom the Option or Right is granted. Notwithstanding the foregoing, all or a portion of a non-qualified Option or Right may be transferred and assigned by such persons designated by the Committee, to such persons or groups of persons designated as permissible Transferees by the Committee, and upon such terms and conditions as the Committee may from time to time authorize and determine in its sole discretion. Notwithstanding the preceding sentence, no Award under the Plan may be transferred for value (as defined in the General Instructions to Form S-8 with respect to the registration, pursuant to the Securities Act of 1933, of employee benefit plan securities and/or interests).
 (i) Except as provided in Section 9, if a Director’s service on the Board terminates for any reason, including without limitation, termination due to death, disability or retirement, such Director (or Beneficiary, in the event of death) may exercise any Option or Right granted to him or her only to the extent determined by the Committee as set forth in such Director’s Award Document and/or any administrative rules or other terms and conditions adopted by the Committee from time to time applicable to such Option or Right granted to such Director.
 (j) With respect to an Incentive Stock Option, the Committee shall specify such terms and provisions as the Committee may determine to be necessary or desirable in order to qualify such Option as an “incentive stock option” within the meaning of Section 422 of the Code.
 (k) With respect to the exercisability and settlement of Rights:

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 (i) Except as expressly provided below, upon exercise of a Right, a Key Employee or Director shall be entitled, subject to such terms and conditions as the Committee may specify, to receive all or a portion of the excess of (A) the Fair Market Value of a specified number of shares of Stock at the time of exercise, as determined by the Committee, over (B) a specified amount which shall not, subject to Section 5(d), be less than the Fair Market Value of such specified number of shares of Stock at the time the Right is granted. Payment of any such excess shall be made as the Committee shall specify in cash, the issuance or transfer to the Key Employee or Director of whole shares of Stock with a Fair Market Value at such time equal to any excess, or a combination of cash and shares of Stock with a combined Fair Market Value at such time equal to any such excess, all as determined by the Committee. The Company will not issue a fractional share of Stock and, if a fractional share would otherwise be issuable, the Company shall pay cash equal to the Fair Market Value of the fractional share of Stock at such time.
 (ii) Notwithstanding Section 5(k)(i), the Committee may specify at grant that payment of any excess referenced in the first sentence of Section 5(k)(i) shall not be paid until a specified date or, if earlier, upon the termination of the Key Employee’s employment, the cessation of the Director’s service on the Board or, subject to Section 9(b)(vi), a Change of Control. To the extent permissible without adverse tax consequences for the Key Employee or Director, the Committee may permit the Key Employee or Director to elect when such payment is made. Amounts, if any, deferred pursuant to this Section 5(k)(ii) shall be subject to such terms and conditions as the Committee shall determine, including the manner in which any deemed earnings on such deferred amounts shall be determined.
 (iii) In the event of the exercise of such Right, the Company’s obligation in respect of any related Option or such portion thereof will be discharged by payment of the Right so exercised.
 (l) Each outstanding Option and Right shall be deemed to be exercised, in the manner set forth below, at the close of business on the scheduled expiration date of such Option or Right if at such time the Option or Right by its terms remains exercisable and, if so exercised, would result in a distribution to the holder of such Option or Right of at least one share of Stock of the Company net of any applicable tax withholding requirements (a “Deemed Exercise”). Such Deemed Exercise may be effected without notification by the Director or Key Employee to the Company or by the Company to the Key Employee or Director. Upon such Deemed Exercise, the Company shall issue and deliver to the Director or Key Employee the greatest number of whole shares of Stock equal to the quotient of (i) divided by (ii), with the quotient reduced as necessary to satisfy any applicable tax withholding requirements, where (i) and (ii) are: 
(i) The product of (x) the number of shares of Stock as to which the Option or Right is being deemed exercised and (y) the excess of the Fair Market Value on the Deemed Exercise date over the exercise price per share of such Option or the specified amount for such Right, and
 (ii) The Fair Market Value on such date,
 with any remainder being payable in cash to the Participant. If, on the scheduled expiration date of any Option or Right, the exercise of such Option or Right would not result in a Deemed Exercise, then such Option or Right shall be canceled without further action by the Key Employee or Director, the Committee 

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or the Company on the date following the last date on which such Option or Right may have been exercised in accordance with this Section 5.
 6. Performance Shares
 (a) Subject to the provisions of the Plan, the Committee shall: (i) determine and designate from time to time those Key Employees and Directors or groups of Key Employees and Directors to whom Awards of Performance Shares are to be made, (ii) determine the performance period (the “Performance Period”) and performance objectives (the “Performance Objectives”) applicable to such Awards, (iii) determine whether to impose a Restriction Period following the completion of the Performance Period applicable to any Key Employees and Directors or groups of Key Employees and Directors, (iv) determine the form of settlement of a Performance Share, and (v) generally determine the terms and conditions of each such Award. At any date, each Performance Share shall have a value equal to the Fair Market Value of a share of Stock at such date; provided that the Committee may limit the aggregate amount payable upon the settlement of any Award. 
(b) The Committee shall determine a Performance Period of not less than one nor more than five years. Performance Periods may overlap and Key Employees or Directors may participate simultaneously with respect to Performance Shares for which different Performance Periods are prescribed. 
(c) The Committee may impose a Restriction Period of any duration with respect to any shares of stock issued in payment of a Performance Share Award, which shall apply immediately following the completion of the Performance Period to which it relates.
 (d) The Committee shall determine the Performance Objectives of Awards of Performance Shares. Performance Objectives may vary from Key Employee to Key Employee, Director to Director and between groups of Key Employees and Directors, and shall be based upon one or more of the following objective criteria or derivative thereof, as the Committee deems appropriate: (A) earnings per share, (B) return on equity, (C) cash flow, (D) return on total capital, (E) return on assets, (F) economic value added, (G) increase in surplus, (H) reductions in operating expenses, (I) increases in operating margins, (J) earnings before income taxes and depreciation, (K) total shareholder return, (L) return on invested capital, (M) cost reductions and savings, (N) earnings before interest, taxes, depreciation and amortization (“EBITDA”), (O) pre-tax operating income, (P) net income, (Q) after-tax operating income, (R) book value or book value per share, (S) core earnings or core earnings per share and/or (T) productivity improvements. The objective criteria shall be (i) determined solely by reference to any one or more of the above performance factors of the Company (or the performance factors of any subsidiary or affiliate of the Company or any division or unit thereof), or (ii) based on any one or more of the above performance factors of the Company (or the performance factors of any subsidiary or affiliate of the Company or any division or unit thereof), as compared with the performance factors of other companies or entities, or (iii) based on a Key Employee’s attainment of personal objectives with respect to any one or more of the performance factors of the Company (or the performance factors of any subsidiary or affiliate of the Company or any division or unit thereof), or with respect to any one or more of the following: growth and profitability, customer satisfaction, leadership effectiveness, business development, negotiating transactions and sales or developing long term business goals. If during the course of a Performance 

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Period there shall occur significant events which the Committee expects to have a substantial effect on the applicable Performance Objectives during such period, the Committee may revise such Performance Objectives.
 (e) At the beginning of a Performance Period, the Committee shall determine for each Key Employee or group of Key Employees the number of Performance Shares or the percentage of Performance Shares which shall be paid to the Key Employee or member of the group of Key Employees following completion of the Performance Period or if later, following any applicable Restriction Period, if the applicable Performance Objectives are met in whole or in part.
 (f) If a Key Employee terminates service with all Participating Companies during a Performance Period or any applicable Restriction Period: (i) because of death, (ii) because of Total Disability, (iii) because of his or her voluntary termination of employment due to Retirement, or (iv) under other circumstances where the Committee in its sole discretion finds that a waiver would be in the best interests of the Company; that Key Employee may, as determined by the Committee, be entitled to payment in settlement of such Performance Shares at the end of the Performance Period or if later, at the end of any applicable Restriction Period, based upon the extent to which the Performance Objectives were satisfied at the end of such Performance Period and prorated for the portion of the Performance Period together with any applicable Restriction Period during which the Key Employee was actively employed by any Participating Company. If a Key Employee terminates service with all Participating Companies during a Performance Period or any applicable Restriction Period for any other reason, then such Key Employee shall not be entitled to any Award with respect to that Performance Period and shall forfeit any shares of Stock subject to a Restriction Period unless the Committee shall otherwise determine.
 (g) Except as provided in Section 9, if a Director’s service on the Board terminates for any reason, including, without limitation, termination due to death, disability or retirement, prior to the lapse of any applicable Restriction Period, such Director (or Beneficiary, in the event of death) shall be or become vested in, or entitled to payment in respect of, such Award to the extent determined by the Committee as set forth in such Director’s Award Document and/or any administrative rules or other terms and conditions adopted by the Committee from time to time applicable to such Award granted to such Director; provided that, to the extent that any such rules or terms and conditions establish a payment term not associated directly with the vesting of any such Award, only the payment terms established under such rules or terms and conditions as are in effect at the date the Award is granted to the Director shall apply to such Award.
 (h) Each Award of a Performance Share shall be paid in whole shares of Stock, or cash, or a combination of Stock and cash either as a lump sum payment or, if the Committee shall so determine at the time of grant, in annual installments, with payment to commence as soon as practicable (but in any event within 90 days) after the end of the relevant Performance Period or if later, at the end of any applicable Restriction Period.
 (i) Except as otherwise required by applicable law, no Performance Share granted under the Plan shall be transferable other than on account of death in accordance with the terms of the Plan.

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 (j) Notwithstanding anything else contained in the Plan to the contrary, unless the Committee otherwise determines at the time of grant, any Award of Performance Shares, to an officer of the Company or a Subsidiary who is subject to the reporting requirements of Section 16(a) of the Act, shall become vested, if at all, upon the determination by the Committee that Performance Objectives established by the Committee have been attained, in whole or in part, to the extent required to ensure that such Award is deductible by the Company or such Subsidiary pursuant to Section 162(m) of the Code. To the extent such Award is so intended to qualify as performance-based compensation under Section 162(m), notwithstanding anything else in the Plan to the contrary, the Committee shall not have any discretionary power or authority to increase the amount payable with respect to such Award after it has been granted, and shall be deemed not to have and may not exercise with respect to such Award any authority or discretion afforded to it under the Plan that would cause the Award to fail to so qualify.
 7. Restricted Stock and Restricted Units
 (a) Except as provided in Section 9, Restricted Stock and Restricted Units shall be subject to a Restriction Period specified by the Committee. The Committee may provide for the lapse of a Restriction Period in installments where deemed appropriate, and it may also require the achievement of predetermined performance objectives in order for such Restriction Period to lapse. Except as otherwise provided in the Plan or as specified by the Committee, certificates for shares related to an Award of Restricted Stock or Restricted Units shall be delivered to a Key Employee or Director as soon as administratively practicable (but in no event later than 90 days) following the end of the applicable Restriction Period.
 (b) Except when the Committee determines otherwise pursuant to Section 7(d), if a Key Employee terminates employment with all Participating Companies for any reason before the expiration of the Restriction Period, all shares of Restricted Stock and all rights with respect to any Award of Restricted Units still subject to restriction shall be forfeited by the Key Employee and shall be reacquired by the Company.
 (c) Except as otherwise provided in this Section 7 or required by applicable law, no shares of Restricted Stock received by a Key Employee or Director and no rights conveyed by an Award of Restricted Units shall be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of during the Restriction Period.
 (d) In the event that a Key Employee’s employment terminates due to (i) death, (ii) Total Disability, (iii) a voluntary termination of employment due to Retirement, or (iv) such other circumstances, such as a reduction in force or a divestiture or sale of a business or unit, that the Committee finds that a waiver of the applicable restrictions (or any portion thereof) would be in the best interests of the Company, such Key Employee (or Beneficiary, in the event of death) shall be or become vested in, or entitled to payment in respect of, Restricted Stock or Restricted Units then held by such Key Employee to the extent determined by the Committee and set forth in such Key Employee’s Award Documents and/or any administrative rules or other terms and conditions adopted by the Committee from time to time applicable to such Restricted Stock or Restricted Units granted to such Key Employee; provided that, while the Committee may waive or modify the vesting conditions, the payment terms in effect under such Award 

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Documents, rules or terms and conditions at the date the Award is granted to the Key Employee shall not be modified. With respect to any Award of Restricted Units, unless otherwise expressly provided herein or otherwise determined by the Committee (and specified in writing) at the time of grant, any amount payable to the Key Employee or his or her Beneficiary in accordance with this Section 7(d) shall be paid within 90 days following the later of such Key Employee’s termination of employment or the achievement of any predetermined performance objective. For this purpose a Key Employee shall be deemed to have terminated employment when a separation from service occurs, as determined in accordance with the Company’s policies and practices determined pursuant to Section 409A of the Code. If a Key Employee is a “specified employee” as determined in accordance with Section 409A of the Code, then payment to the Key Employee shall be made following the later of (i) six months after the date the Key Employee separates from service or (ii) the achievement of any predetermined performance objective, provided that, if earlier, payment shall be made as soon as administratively practicable (but in no event later than 90 days) following the end of the applicable Restriction Period determined without regard to this paragraph. In the event that a Restricted Unit Award vests and is paid on account of an involuntarily termination of employment for which severance is payable, then, notwithstanding any other provision of the Plan, such Award shall be payable within 90 days of the date of such employment termination (provided, however, that if such 90-day period spans two calendar years, payment will be made in the second of such two calendar years not later than March 15 thereof), unless, at that date, the Key Employee is a “specified employee”, in which case payment will be made six months after the date the Key Employee separates from service.
 (e) Except as provided in Section 9, if a Director’s service on the Board terminates for any reason, including without limitation termination due to death, disability or retirement, prior to the lapse of any applicable Restriction Period, such Director (or Beneficiary, in the event of death) shall be or become vested in, or entitled to payment in respect of, such Award to the extent determined by the Committee as set forth in such Director’s Award Document and/or any administrative rules or other terms and conditions adopted by the Committee from time to time applicable to such Award granted to such Director; provided that, to the extent that any such rules or terms and conditions establish a payment term not associated directly with the vesting of any such Award, only the payment terms established under such rules or terms and conditions as are in effect at the date the Award is granted to the Director shall apply to such Award.
 (f) The Committee may require, on such terms and conditions as it deems appropriate or desirable, that the certificates for Stock delivered under the Plan in respect of any grant of Restricted Stock may be held in custody by a bank or other institution, or that the Company may itself hold such shares in custody until the Restriction Period expires or until restrictions thereon otherwise lapse, or later as provided in Section 14 hereof. The Committee may require, as a condition of any Award of Restricted Stock that the Key Employee or Director shall have delivered a stock power endorsed in blank relating to the Restricted Stock. Notwithstanding any provision of the Plan to the contrary, Restricted Stock may be evidenced on a book entry or electronic basis or pursuant to other arrangements (including, without limitation, in an omnibus or nominee account administered by a third party) until restrictions thereon otherwise lapse, in lieu of issuing physical certificates to the Key Employee or Director.
 

14

(g) At the discretion of the Committee, the Restricted Unit account of a Key Employee or Director may be credited with Dividend Equivalents during the Restricted Period which shall be subject to the same terms and conditions (and become payable and be paid) as the Restricted Units to which they relate. Unless the Committee shall otherwise determine at or after grant, all Dividend Equivalents payable in respect of Restricted Units shall be deemed reinvested in that number of Restricted Units determined based on the Fair Market Value on the date the corresponding dividend on the Stock is payable to stockholders.
 (h) Nothing in this Section 7 shall preclude a Key Employee or Director from exchanging any shares of Restricted Stock subject to the restrictions contained herein for any other shares of Stock that are similarly restricted.
 (i) Subject to Section 7(f) and Section 8, a stock certificate shall be issued in the name of each Key Employee or Director awarded Restricted Stock under the Plan. Such certificate shall be registered in the name of the Key Employee or Director, and shall bear an appropriate legend reciting the terms, conditions and restrictions, if any, applicable to such Award and shall be subject to appropriate stop-transfer orders. Upon the lapse of the Restriction Period or the Key Employee or Director otherwise vesting in respect to Restricted Stock, such shares shall no longer be subject to the restrictions imposed under this Section 7 and the Company shall issue or have issued new share certificates, or otherwise render available the shares represented by the certificate, without the legend referred to herein in exchange for those certificates previously issued. Upon the lapse of the Restriction Period or the Key Employee or Director otherwise becoming entitled to payment in respect to any Restricted Units, the Company shall deliver (or otherwise render available) to the Key Employee or Director (or, if applicable, his or her beneficiary or permitted assigns, one share of Stock for each Restricted Unit as to which restrictions have lapsed (including any such Restricted Units related to any Dividend Equivalents credited with respect to such Restricted Units). The Committee may, in its sole discretion, elect to pay cash or part cash and part Stock in lieu of delivering only Stock for Restricted Units. If a cash payment is made in lieu of delivering Stock, the amount of such cash payment for each share of Stock to which a Key Employee or Director is entitled shall be equal to the Fair Market Value on the date on which the Restriction Period lapsed with respect to the related Restricted Unit. Notwithstanding the foregoing, the Committee may, to the extent possible without adverse tax consequences to the Key Employee or Director, require or permit the deferral of payment in respect of Restricted Units to a date or dates (including, without limitation, the date the Key Employee’s employment or a Director’s services on the Board terminates) subsequent to the date that the Restriction Period lapses on such terms and conditions (including, without limitation, the manner in which the amounts payable shall be deemed invested during the period of deferral) as it shall determine from time to time.
 (j) Except for the restrictions set forth herein and unless otherwise determined by the Committee, a Key Employee or Director shall have all the rights of a shareholder with respect to shares of Restricted Stock, including but not limited to, the right to vote and the right to receive dividends. A Key Employee or Director shall not have any right, in respect of Restricted Units awarded pursuant to the Plan, to vote on any matter submitted to the Company’s stockholders until such time, if at all, as the shares of Stock attributable to such Restricted Units have been issued.

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 (k) In addition, the Committee may permit Key Employees and Directors or any group of Key Employees and Directors to elect to receive Restricted Units in exchange for or in lieu of other compensation (including salaries, annual bonuses, annual retainer and meeting fees) that would otherwise have been payable to such Key Employees and Directors in cash. The Committee shall establish the terms and conditions of any such Restricted Units, including the Restriction Period applicable thereto, and the date on which Stock shall be issued in respect thereof. The Committee shall establish the terms and conditions applicable to any election by a Key Employee or Director to receive Restricted Units (including the time at which any such election shall be made).
 (l) Notwithstanding anything else contained in the Plan to the contrary, the Committee may determine at the time of grant that any Award of Restricted Stock or Restricted Units to a Key Employee or Director shall become vested, if at all, only upon the determination by the Committee that Performance Objectives established by the Committee have been attained, in whole or in part. In such case, the Performance Objectives determined by the Committee may vary from Key Employee to Key Employee, Director to Director and between groups of Key Employees and Directors, and shall be established by the Committee and determined by applying the standards (and selecting from the criteria) applicable to Performance Shares under Section 6(d). If there shall occur significant events which the Committee expects to have a substantial effect on the applicable Performance Objectives, the Committee may revise such Performance Objectives. Unless the Committee otherwise determines at the time of grant, any Award of Restricted Stock or Restricted Units that is subject to performance-based vesting in accordance with this Section 7(l), to an officer of the Company or a Subsidiary who is subject to the reporting requirements of Section 16(a) of the Act, shall be subject to the same requirements and restrictions as apply to a Performance Share Award under Section 6(j).
 8. Issuance of Stock
 (a) The Company shall not be required to issue or deliver any shares of Stock prior to: (i) the listing of such shares on any stock exchange on which the Stock may then be listed, (ii) the completion of any registration or qualification of such shares under any federal or state law, or any ruling or regulation of any government body which the Company shall, in its sole discretion, determine to be necessary or advisable, and (iii) the satisfaction of any tax withholding obligations as provided in Section 14 hereof.
 (b) All shares of Stock delivered under the Plan shall also be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Stock is then listed and any applicable federal or state securities laws, and the Committee may cause a legend or legends to be placed on any such certificates to make appropriate reference to such restrictions. In making such determination, the Committee may rely upon an opinion of counsel for the Company.
 (c) Except to the extent such shares are subject to forfeiture during any applicable Restriction Period, each Key Employee or Director who receives Stock in settlement of or as part of an Award, shall have all of the rights of a shareholder with respect to such shares, including the right to vote the shares and receive dividends and other distributions. No Key Employee or Director awarded an Option, a Right, a Restricted Unit or a Performance Share shall have any right as a shareholder with respect to any shares of Stock 

16

covered by his or her Option, Right, Restricted Unit or Performance Share prior to the date of issuance to him or her of such shares.
 9. Change of Control
 (a) For purposes of this Plan, a Change of Control shall occur:
 (i) if a report on Schedule 13D shall be filed with the Securities and Exchange Commission pursuant to Section 13(d) of the Act disclosing that any Person, other than the Company or a subsidiary of the Company or any employee benefit plan sponsored by the Company or a subsidiary of the Company is the Beneficial Owner of forty percent or more of the outstanding stock of the Company entitled to vote in the election of directors of the Company;
 (ii) if any Person other than the Company or a subsidiary of the Company or any employee benefit plan sponsored by the Company or a subsidiary of the Company shall purchase shares pursuant to a tender offer or exchange offer to acquire any stock of the Company (or securities convertible into stock) for cash, securities or any other consideration, provided that after consummation of the offer, the Person in question is the Beneficial Owner of twenty percent or more of the outstanding stock of the Company entitled to vote in the election of directors of the Company (calculated as provided in paragraph (d) of Rule 13d-3 under the Act in the case of rights to acquire stock);
 (iii) upon the consummation of any merger, consolidation, recapitalization or reorganization of the Company approved by the stockholders of the Company, other than any such transaction immediately following which the persons who were the Beneficial Owners of the outstanding securities of the Company entitled to vote in the election of directors of the Company immediately prior to such transaction are the Beneficial Owners of at least 55% of the total voting power represented by the securities of the entity surviving such transaction entitled to vote in the election of directors of such entity (or the ultimate parent of such entity) in substantially the same relative proportions as their ownership of the securities of the Company entitled to vote in the election of directors of the Company immediately prior to such transaction; provided that, such continuity of ownership (and preservation of relative voting power) shall be deemed to be satisfied if the failure to meet such threshold (or to preserve such relative voting power) is due solely to the acquisition of voting securities by an employee benefit plan of the Company, such surviving entity or any subsidiary of such surviving entity;
 (iv) upon the consummation of any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all the assets of the Company approved by the stockholders of the Company; or
 (v) if within any 24 month period, the persons who were directors of the Company immediately before the beginning of such period (the “Incumbent Directors”) shall cease (for any reason other than death) to constitute at least a majority of the Board or the board of directors of any successor to the Company, provided that any director who was not a director at the beginning of such period shall be deemed to be an Incumbent Director if such director (A) was elected to the Board by, or on the recommendation of or with the approval of, at least two-thirds of the directors who then qualified as Incumbent Directors either actually or by prior operation of this clause (v), and (B) was not designated by a Person who has entered 

17

into an agreement with the Company to effect a transaction described in Section 9(a)(iii) or Section 9(a)(iv) of the Plan.
(b) Notwithstanding any provision in this Plan to the contrary, but subject to Section 9(c) below, upon the occurrence of a Change of Control:
 (i) Each Option and Right outstanding on the date such Change of Control occurs, and which is not then fully vested and exercisable, shall immediately vest and become exercisable to the full extent of the original grant for the remainder of its term.
 (ii) The surviving or resulting corporation may, in its discretion, provide for the assumption or replacement of each outstanding Option and Right granted under the Plan on terms which are no less favorable to the optionee than those applicable to the Options and Rights immediately prior to the Change of Control.
 (iii) Except to the extent otherwise expressly provided in Section 9(b)(vi), the restrictions applicable to shares of Restricted Stock or to Restricted Units held by Key Employees pursuant to Section 7 shall lapse upon the occurrence of a Change of Control, and such Key Employees shall receive immediately unrestricted certificates for all of such shares.
 (iv) If a Change of Control occurs during the course of a Performance Period or any Restriction Period applicable to an Award of Performance Shares pursuant to Section 6, then a Key Employee shall be deemed to have satisfied the Performance Objectives at the target level specified in the Key Employee’s Award agreement or, if greater, otherwise specified by the Committee at or after grant, and to have completed any applicable Restriction Period effective on the date of such occurrence. Except to the extent otherwise expressly provided in Section 9(b)(vi), distribution of amounts payable in connection with an Award of Performance Shares shall be made immediately following (but in no event later than 30 days following) the occurrence of the Change of Control.
 (v) Without limiting the foregoing provisions of this Section 9(b), in the event of a Change of Control the Committee may, in its discretion, provide any of the following either absolutely or subject to the election of such Key Employees:
a. Each Option and Right shall be surrendered or exercised for an immediate lump sum cash amount equal to the excess of the Fair Market Value of the Stock subject to such Option or Right determined as of the time of such surrender or exercise over the exercise price;
 b. Each Restricted Stock, Restricted Unit and Award of Performance Shares shall be exchanged for an immediate lump sum cash amount equal to the number of outstanding units or shares awarded to such Key Employee multiplied by the Fair Market Value of a share of Stock as of the date of such exchange.
 (vi) Notwithstanding the foregoing provisions of this Section 9(b), no distribution or payment shall be made upon or in connection with the occurrence of a Change of Control with respect to any Award that the Committee shall determine does not qualify for any applicable exemption from the application of Section 409A of the Code (such as by reason of being a stock right or qualifying as a short-term deferral). To the extent that, pursuant to the immediately preceding sentence, an Award is not distributable or 

18

payable upon the occurrence of a Change of Control, distribution or payment of such Award shall be made at the time otherwise specified under the Plan or the Award Documents without regard to the occurrence of a Change of Control (including any six month delay in payment applicable to a “specified employee”, as determined in accordance with Section 409A of the Code). Without limiting the generality of the foregoing, nothing in this Section 9(b)(vi) shall be construed to prevent any Key Employee’s rights in respect of any Award from becoming non-forfeitable upon the occurrence of a Change of Control.
 (c) Notwithstanding Section 9(b), no acceleration of exercisability, vesting, issuance of shares, cash settlement or other payment shall occur with respect to any Award granted to a Key Employee if the Committee reasonably determines in good faith prior to the occurrence of a Change of Control that such Award shall be honored or assumed, or new rights substituted therefor (such honored, assumed or substituted award hereinafter called an “Alternative Award”) by the Key Employee’s employer (or the parent or a subsidiary of such employer) immediately following the Change of Control, provided that any such Alternative Award must:
 (i) relate to a class of equity that is (or will be within 5 business days following the Change of Control) listed to trade on a recognized securities market;
 (ii) provide the Key Employee with rights and entitlements substantially equivalent to or better than the rights and entitlements applicable under such Award, including, but not limited to, an identical or better exercise or vesting schedule and identical or better timing and methods of payment, including all provisions applicable in respect of such Award that provide for accelerated vesting (with respect to Performance Shares, if the Change of Control occurs during the course of a Performance Period applicable to the Award, then (A) the Key Employee shall be deemed to have satisfied the Performance Objectives at the target level specified in the Key Employee’s Award agreement or, if greater, otherwise specified by the Committee at or after grant, and (B) any Alternative Award shall be in the form of restricted stock or restricted stock units, without a performance objective, unless otherwise determined by the Committee);
 (iii) have substantially equivalent economic value to the Award (as determined by the Committee as constituted immediately prior to the Change of Control); and
(iv) have terms and conditions which provide that if the Key Employee’s employment is terminated upon or within two years following such Change of Control by the Key Employee’s employer other than for Cause or by the Key Employee for Good Reason, a Key Employee’s rights under each such Alternative Award shall become fully vested and exercisable (for purposes of this clause (iv), Good Reason and Cause shall be as defined in the Company severance pay plan applicable to the Key Employee prior to the occurrence of the Change of Control and, if, such terms are not defined in such severance pay plan, as such terms are defined in The Hartford Executive Severance Pay Plan I, applicable to Key Employees in Tiers 3 and 4, as in effect on January 1, 2014); provided, however, that with respect to any Award that does not qualify for any applicable exemption from the application of Section 409A of the Code, the payment or distribution of the Alternative Award shall only be made at the time otherwise specified under the Plan or the Award Documents without regard to the occurrence of the Change of Control (including 

19

any six month delay in payment applicable to a “specified employee”, as determined in accordance with Section 409A of the Code). 
(d) Notwithstanding any provision in this Plan to the contrary, in the event of a Change of Control as described in Section 9(a)(iii) or Section 9(a)(iv) of the Plan, in the case of an awardee whose employment or service involuntarily terminates on or after the date of a shareholder approval described in either of such Sections but before the date of a consummation described in either of such Sections, and the consummation occurs within 60 days of such date of termination, then the date of termination of such an awardee’s employment or service shall be deemed for purposes of the Plan to be the day following the date of the applicable consummation. 
10. Beneficiary
 (a) Each Key Employee, Director and/or his or her Transferee may file with the Company a written designation of one or more persons as the Beneficiary who shall be entitled to receive the Award, if any, payable under the Plan upon his or her death. A Key Employee, Director or Transferee may from time to time revoke or change his or her Beneficiary designation without the consent of any prior Beneficiary by filing a new designation with the Company. The last such designation received by the Company shall be controlling; provided, however, that no designation, or change or revocation thereof, shall be effective unless received by the Company prior to the Key Employee’s, Director’s or Transferee’s death, as the case may be, and in no event shall it be effective as of a date prior to such receipt.
 (b) If no such Beneficiary designation is in effect at the time of death of a Key Employee, Director or Transferee, as the case may be, or if no designated Beneficiary survives the Key Employee, Director or Transferee or if such designation conflicts with applicable law, the spouse of the Key Employee, Director or Transferee, as the case may be, or, if none, his or her estate, shall be entitled to receive the Award, if any, payable under the Plan upon his or her death. If the Committee is in doubt as to the right of any person to receive such Award, the Company may retain such Award, without liability for any interest thereon, until the Committee determines the rights thereto, or the Company may pay such Award into any court of appropriate jurisdiction and such payment shall be a complete discharge of the liability of the Company therefore.
 11. Administration of the Plan
 (a) All decisions, determinations or actions of the Committee made or taken pursuant to grants of authority under the Plan shall be made or taken in the sole discretion of the Committee and shall be final, conclusive and binding on all persons for all purposes.
 (b) The Committee shall have full power, discretion and authority to interpret, construe and administer the Plan and any part thereof, and its interpretations and constructions thereof and actions taken thereunder shall be, except as otherwise determined by the Board, final, conclusive and binding on all persons for all purposes. Except to the extent otherwise expressly provided in the Plan, any action, authority or power reserved to the Committee shall be within the Committee’s sole and absolute discretion.

20

 (c) The Committee’s decisions and determinations under the Plan need not be uniform and may be made selectively among Key Employees and Directors, whether or not such Key Employees and Directors are similarly situated.
 (d) The Committee may, in its sole discretion, delegate such of its powers as it deems appropriate to the Company’s Executive Vice President, Human Resources (or other person holding a similar position) or the Company’s Chief Executive Officer, except that Awards to executive officers shall be made, and matters related thereto shall be determined, solely by the Committee or the Board or any other appropriate committee of the Board.
 12. Amendment, Extension or Termination
 The Board or the Committee may, at any time, amend or modify the Plan and, specifically, may make such modifications to the Plan as it deems necessary to avoid the application of Section 162(m) of the Code and the Treasury regulations issued thereunder. However, no amendment shall, without approval by a majority of the Company’s stockholders, (i) alter the group of persons eligible to participate in the Plan, or (ii) except as provided in Section 13, increase the maximum number of shares of Stock which are available for Awards under the Plan, or, (iii) with respect to all Options and Rights, allow the Committee to reprice the Options or Rights, within the meaning of the New York Stock Exchange listing requirements and gxz accepted accounting principles. The Board may suspend or terminate the Plan at any time without the consent of any person. Notwithstanding anything in this Plan to the contrary, the Plan shall not be amended, modified, suspended or terminated during the period in which a Change of Control is threatened. For purposes of the preceding sentence, a Change of Control shall be deemed to be threatened for the period beginning on the date of any threatened Change of Control, and ending upon the earlier of: (I) the second anniversary of the date of such threatened Change of Control, (II) the date a Change of Control occurs, or (III) the date the Board or the Committee determines in good faith that a Change of Control is no longer threatened. Solely for this purpose, a threatened Change of Control shall occur if (i) a Person shall commence a tender offer, which if successfully consummated, would result in such Person being the Beneficial Owner of at least 20% of the stock of the Company entitled to vote in the election of directors of the Company; (ii) the Company enters into an agreement, the consummation of which would constitute a Change of Control; (iii) proxies are solicited for the election of directors of the Company by anyone other than the Company, which, if such directors were elected, would result in the occurrence of a Change of Control as described in Section 9(a)(v); or (iv) any other event shall occur which is deemed to be a threatened Change of Control for this purpose by the Board, the Committee, or any other appropriate committee of the Board in its sole discretion. Further, notwithstanding anything in this Plan to the contrary, no amendment, modification, suspension or termination following a Change of Control shall adversely impair or reduce the rights of any person with respect to a prior Award without the consent of such person. Notwithstanding the preceding provisions, the Board or the Committee may amend the Plan or an Award Document to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or an Award Document to any present or future law relating to plans of this or similar nature and the administrative regulations and rulings promulgated thereunder (including, but not limited to, amendments deemed necessary or advisable to avoid payments being subject to additional tax under Code Section 409A).

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 13. Adjustments in Event of Change in Common Stock
 In the event of any reorganization, merger, recapitalization, consolidation, liquidation, special cash dividend, stock dividend, stock split, reclassification, combination of shares, rights offering, split-up or extraordinary dividend (including a spin-off) or divestiture, or any other change in the corporate structure or shares, the Committee shall make such adjustment in the Stock subject to Awards, including Stock subject to purchase by an Option or issuable in respect of Restricted Units, or the terms, conditions or restrictions on Stock or Awards, including the price payable upon the exercise of such Option and the number of shares subject to Restricted Stock or Restricted Unit Awards, as shall be necessary to preserve Key Employee rights substantially proportionate to those rights existing immediately prior to such transaction or event.
 14. Miscellaneous
 (a) If a Change of Control has not occurred and if the Committee determines that a Key Employee has taken action inimical to the best interests of any Participating Company, the Committee may, in its sole discretion, terminate in whole or in part such portion of any Option or Right as has not yet become exercisable at the time of termination, terminate any Performance Share Award for which the Performance Period or any applicable Restriction Period has not been completed or terminate any Award of Restricted Stock or Restricted Units for which the Restriction Period has not lapsed.
 (b) Except as provided in Section 9, nothing in this Plan or any Award granted hereunder shall confer upon any employee any right to continue in the employ of any Participating Company or interfere in any way with the right of any Participating Company to terminate his or her employment at any time. No Award payable under the Plan shall be deemed salary or compensation for the purpose of computing benefits under any employee benefit plan or other arrangement of any Participating Company for the benefit of its employees unless the Company shall determine otherwise. No Key Employee shall have any claim to an Award until it is actually granted under the Plan. To the extent that any person acquires a right to receive payments from the Company under this Plan, such right shall be no greater than the right of an unsecured general creditor of the Company. All payments to be made hereunder shall be paid from the general funds of the Company and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts except as provided in Section 7(f) with respect to Restricted Stock.
 (c) The Committee shall have the right to make such provisions as deemed appropriate in its sole discretion to satisfy any obligation of the Company to withhold federal, state or local income or other taxes (including FICA obligations) incurred by reason of the operation of the Plan or an Award under the Plan, including but not limited to at any time: (i) requiring a Key Employee to submit payment to the Company for such taxes before making settlement of any Award of Stock or other amount due under the Plan, (ii) withholding such taxes from wages or other amounts due to the Key Employee before making settlement of any Award of Stock or other amount due under the Plan, (iii) making settlement of any Award of Stock or other amount due under the Plan to a Key Employee part in Stock and part in cash to facilitate satisfaction of such withholding obligations, or (iv) receiving Stock already owned by, or withholding Stock otherwise due to, the Key Employee in an amount determined necessary to satisfy such 

22

withholding obligations; provided, however, that, notwithstanding any language herein to the contrary, any Key Employee who is an executive officer of the Company (within the meaning of Section 16 of the Act) shall have the right to satisfy his or her obligations to the Company pursuant to this Section 14(c) by instructing the Company not to deliver to the Key Employee Stock otherwise deliverable to the Key Employee in an amount sufficient to satisfy such obligations to the Company.
 (d) The Committee may permit deferrals of compensation pursuant to the Plan or any subplan hereof which meet the requirements of Code Section 409A and the regulations thereunder. Additionally, to the extent any Award is subject to Code Section 409A, notwithstanding any provision herein to the contrary, the Plan does not permit the acceleration of the time or schedule of any distribution related to such Award, except as permitted by Code Section 409A and the regulations and rulings promulgated thereunder.
 (e) The Plan and the grant of Awards shall be subject to all applicable federal and state laws, rules, and regulations and to such approvals by any government or regulatory agency as may be required. The Plan and each Award Document shall be governed by the laws of the State of Delaware, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another jurisdiction. Unless otherwise provided in the Award Document, recipients of an Award under the Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of Connecticut to resolve any and all issues that may arise out of or relate to the Plan or any related Award Document.
 (f) The Company shall have the right at any time to recoup any amount paid or payable hereunder to the fullest extent that, in the view of management, such recoupment either (i) is required by applicable law or listing standards, or (ii) is determined by the Company to be necessary in accordance with Company policy or business circumstances or appropriate in light of a Key Employee’s action, or failure to act, which is inimical to the best interests of any Participating Company.
 (g) The terms of the Plan shall be binding upon the Company and its successors and assigns.
 (h) Captions preceding the sections hereof are inserted solely as a matter of convenience and in no way define or limit the scope or intent of any provision hereof. 
15. Effective Date, Term of Plan and Shareholder Approval
 The effective date of the Plan shall be May 21, 2014. No Award shall be granted under this Plan after the Plan’s termination date. The Plan’s termination date shall be the earlier of: (a) May 21, 2024, or (b) the date on which the Maximum Limit (as defined in Section 3 of the Plan) is reached; provided, however, that the Plan will continue in effect for existing Awards as long as any such Award is outstanding.

23Exhibit 4.1

 

EXECUTION VERSION

 

INDENTURE, dated as of July 23, 2014, among SINCLAIR TELEVISION GROUP, INC., a Maryland corporation (the “Company”), the Guarantors identified on Annex A hereto (collectively, the “Guarantors”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association organized under the laws of the United States of America, as trustee (the “Trustee”).

 

RECITALS OF THE COMPANY

 

The Company has duly authorized the creation of an issue of (i) 5.625% Senior Notes due 2024, Series A (the “Series A Securities”) and an issue of 5.625% Senior Notes due 2024, Series B (the “Series B Securities” and, together with the Series A Securities, the “Initial Securities”) of substantially the tenor and amount hereinafter set forth and (ii) if and when issued, an unlimited principal amount of additional notes having identical terms and conditions as the Initial Securities, other than issue date, issue price and the first interest payment date (the “Additional Securities” and, together with the Initial Securities, the “Securities”), and to provide therefor the Company has duly authorized the execution and delivery of this Indenture.

 

Each Guarantor has duly authorized the issuance of a guarantee (the “Guarantees”) of the Securities, of substantially the tenor hereinafter set forth, and to provide therefor, each Guarantor has duly authorized the execution and delivery of this Indenture and the Guarantee.

 

This Indenture is subject to, and shall be governed by, the provisions of the Trust Indenture Act that are required to be part of and to govern indentures qualified under the Trust Indenture Act.

 

All acts and things necessary have been done to make (i) the Securities, when executed by the Company and authenticated and delivered hereunder and duly issued by the Company, the valid obligations of the Company, (ii) the Guarantees, when executed by each of the Guarantors and delivered hereunder, the valid obligation of each of the Guarantors and (iii) this Indenture a valid agreement of the Company and each of the Guarantors in accordance with the terms of this Indenture.

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

For and in consideration of the premises and the purchase of the Securities by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the Securities, as follows:

 

 

ARTICLE ONE

 

DEFINITIONS AND OTHER PROVISIONS OF
 GENERAL APPLICATION

 

Section 101.  Definitions.

 

For all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires:

 

(a)                           the terms defined in this Article One have the meanings assigned to them in this Article One, and include the plural as well as the singular;

 

(b)                           all other terms used herein which are defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein;

 

(c)                            all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP;

 

(d)                           the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision; and

 

(e)                            all references to $, US$, dollars or United States dollars shall refer to the lawful currency of the United States of America.

 

“Acquired Indebtedness”means Indebtedness of a Person (i) existing at the time such Person becomes a Subsidiary or (ii) assumed in connection with the acquisition of assets from such Person, in each case, other than Indebtedness incurred in connection with, or in contemplation of, such Person becoming a Subsidiary or such acquisition.  Acquired Indebtedness shall be deemed to be incurred on the date of the related acquisition of assets from any Person or the date the acquired Person becomes a Subsidiary.

 

“Additional Securities” has the meaning specified in the Recitals.

 

“Affiliate” means, with respect to any specified Person, (i) any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person, (ii) any executive officer or director of such specified Person or (iii) any other Person 10% or more of the voting Equity Interests of which are beneficially owned or held directly or indirectly by such specified Person.  For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such Person directly or

 

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indirectly, whether through ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

 

“Agent Member” means any member of, or participant in, the Depositary.

 

“Applicable Premium” means, with respect to a Security on any Redemption Date, the greater of: (1) 1.0% of the principal amount of such Security; and (2) the excess, if any, of (a) the present value as of such Redemption Date of (1) the Redemption Price of such Security on August 1, 2019, (each such Redemption Price being described in the table in Section 1101(a) plus (2) all required interest payments due on such Security through August 1, 2019 (excluding accrued but unpaid interest to the Redemption Date), computed using a discount rate equal to the Treasury Rate as of such Redemption Date plus 50 basis points, over (b) the then-outstanding principal of such Security.

 

“Applicable Procedures” means, with respect to any transfer or transaction involving a Global Security or beneficial interests therein, the rules and procedures of the Depositary for such Security, Euroclear and/or Clearstream, in each case to the extent applicable to such transaction and as in effect at the time of such transfer or transaction.

 

“Asset Sale” means any sale, issuance, conveyance, transfer, lease or other disposition (including, without limitation, by way of merger, consolidation or Sale and Leaseback Transaction) (collectively, a “transfer”), directly or indirectly, in one or a series of related transactions, of (i) any Equity Interest of any Restricted Subsidiary; (ii) all or substantially all of the properties and assets of any division or line of business of the Company or any Restricted Subsidiary; or (iii) any other properties or assets of the Company or any Restricted Subsidiary, other than in the ordinary course of business.  For the purposes of this definition, the term “Asset Sale” shall not include (A) any transfer of properties and assets (x) that is governed by Section 801(a), (y) that is by the Company to any Wholly Owned Restricted Subsidiary that is a Guarantor, or by any Restricted Subsidiary to the Company or any Wholly Owned Restricted Subsidiary that is a Guarantor in accordance with the terms of this Indenture or (z) that aggregates not more than $50,000,000 in gross proceeds or (B) any Restricted Payment permitted by Section 1009 or a Permitted Investment.

 

“Asset Swap” means an Asset Sale by the Company or any Restricted Subsidiary in exchange for properties or assets that will be used in the business of the Company and the Restricted Subsidiaries existing on the Issue Date or reasonably related thereto.

 

“Average Life to Stated Maturity” means, as of the date of determination with respect to any Indebtedness, the quotient obtained by dividing (i) the sum of the products of (a) the number of years from the date of determination to the date or dates of each

 

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successive scheduled principal payment of such Indebtedness multiplied by (b) the amount of each such principal payment by (ii) the sum of all such principal payments.

 

“Bank Credit Agreement” means the Fifth Amended and Restated Bank Credit Agreement, dated as of April 9, 2013, between the Company, the guarantors party thereto, the lenders named therein and J.P. Morgan Chase Bank, N.A., as agent, J.P. Morgan Securities LLC, as sole lead arranger and bookrunner, Wells Fargo Bank, Wells Fargo Securities, LLC and SunTrust Robinson Humphrey, Inc., as joint lead arrangers and joint bookrunners, Deutsche Bank Securities Inc. and RBC Capital Markets, LLC, as co-arrangers, Wells Fargo Bank, National Association, as syndication agent, and SunTrust Bank, as documentation agent, as such agreement may be amended, renewed, extended, substituted, refinanced, restructured, replaced, supplemented or otherwise modified from time to time (including, without limitation, any successive renewals, extensions, substitutions, refinancings, restructurings, replacements, supplementations or other modifications of the foregoing and including, for the avoidance of doubt, any renewals, extensions, substitutions, refinancings, restructurings, replacements, supplements or any other modifications through any indenture, note purchase agreement or similar instrument).  For all purposes under this Indenture, “Bank Credit Agreement” shall include any amendments, renewals, extensions, substitutions, refinancings, restructurings, replacements, supplements or any other modifications that increase the principal amount of the Indebtedness or the commitments to lend thereunder and have been made in compliance with Section 1008; provided that, solely for purposes of the definition of “Permitted Indebtedness,” no such increase may result in the principal amount of Indebtedness of the Company under the Bank Credit Agreement exceeding the amount permitted by Section 1008(b)(i) unless such excess amount of Indebtedness is permitted under Section 1008(b)(xiii) and classified thereunder, in which case it would be deemed “Permitted Indebtedness.”

 

“Bankruptcy Law” means Title 11, United States Bankruptcy Code of 1978, as amended, or any similar United States federal or state law relating to bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization or relief of debtors or any amendment to, succession to or change in any such law.

 

“Board of Directors” means the board of directors of Parent, the Company or any Guarantor, as the case may be, or any duly authorized committee of such board.

 

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of Parent, the Company or any Guarantor, as the case may be, to have been duly adopted by the Board of Directors of such entity and to be in full force and effect on the date of such certification, and delivered to the Trustee.

 

“Broadcast Licenses” means (a) the licenses, permits, authorizations or certificates to construct, own or operate the Stations granted by the FCC, and all

 

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extensions, additions and renewals thereto or thereof, and (b) the licenses, permits, authorizations or certificates which are necessary to construct, own or operate the Stations granted by administrative law courts or any state, county, city, town, village or other local government authority, and all extensions, additions and renewals thereto or thereof.

 

“Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City or the city in which the Corporate Trust Office is located are authorized or required by law to remain closed.

 

“Capital Lease Obligation” means any obligation of the Company and the Restricted Subsidiaries on a Consolidated basis under any capital lease of real or personal property which, in accordance with GAAP, has been recorded as a capitalized lease obligation.

 

“Change of Control” means the occurrence of any of the following events:  (i) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), other than Permitted Holders, is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a Person shall be deemed to have beneficial ownership of all shares that such Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 50% of the total outstanding Voting Stock of the Company or Parent, provided that, in the case of Parent, the Permitted Holders “beneficially own” (as so defined) a lesser percentage of such Voting Stock than such other Person and do not have the right or ability by voting power, contract or otherwise to elect or designate for election a majority of the Board of Directors of the Company or Parent; (ii) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors of the Company or Parent (together with any new directors whose election to such Board or whose nomination for election by the shareholders of the Company or Parent, was approved by a vote of at least 66-2/3% of the directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of such Board of Directors then in office; (iii) the Company or Parent consolidates with or merges with or into any Person or conveys, transfers or leases all or substantially all of its assets to any Person, or any corporation consolidates with or merges into or with the Company or Parent, in any such event pursuant to a transaction in which the outstanding Voting Stock of the Company or Parent is changed into or exchanged for cash, securities or other property, other than any such transaction where the outstanding Voting Stock of the Company or Parent is not changed or exchanged at all (except to the extent necessary to reflect a change in the jurisdiction of incorporation of the Company or Parent) or where (A) the outstanding Voting Stock of the Company or Parent is changed into or exchanged for (x) Voting Stock of the surviving corporation which is not Disqualified Equity Interests or (y) cash, securities and

 

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other property (other than Equity Interests of the surviving corporation) in an amount which could be paid by the Company or Parent as a Restricted Payment in accordance with Section 1009 (and such amount shall be treated as a Restricted Payment subject to the provisions described under Section 1009) and (B) no “person” or “group” other than Permitted Holders owns immediately after such transaction, directly or indirectly, more than the greater of (1) 50% of the total outstanding Voting Stock of the surviving corporation and (2) the percentage of the outstanding Voting Stock of the surviving corporation owned, directly or indirectly, by Permitted Holders immediately after such transaction; or (iv) the Company or Parent is liquidated or dissolved or adopts a plan of liquidation or dissolution other than in a transaction which complies with the provisions described under Article Eight.

 

“Clearstream” means Clearstream Banking, société anonyme, or any successor securities clearing agency.

 

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

 

“Commission” means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or if at any time after the execution of this Indenture such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time.

 

“Company” means the Person named as the “Company” in the first paragraph of this instrument until a successor Person shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor Person.

 

“Company Request” or “Company Order” means a written request or order signed in the name of the Company by two of its Officers and delivered to the Trustee.

 

“Consolidated Interest Expense” means, without duplication, for any period, the sum of (a) the cash interest expense of the Company and its Consolidated Restricted Subsidiaries for such period, on a Consolidated basis, including, without limitation, (i) amortization of debt discount, (ii) the net cost under interest rate contracts (including amortization of discounts), (iii) the interest portion of any deferred payment obligation and (iv) accrued interest, plus (b) the interest component of the Capital Lease Obligations paid, accrued and/or scheduled to be paid or accrued by the Company during such period, and all capitalized interest of the Company and its Consolidated Restricted Subsidiaries, in each case as determined in accordance with GAAP consistently applied, minus (c) cash interest income of the Company and its Consolidated Restricted Subsidiaries for such period, on a Consolidated basis, in each case as determined in accordance with GAAP consistently applied.

 

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“Consolidated Net Income (Loss)” means, for any period, the Consolidated net income (or loss) of the Company and its Consolidated Restricted Subsidiaries for such period as determined in accordance with GAAP consistently applied, adjusted, to the extent included in calculating such net income (or loss), (a) by excluding, without duplication, (i) all extraordinary gains but not losses (less all fees and expenses relating thereto), (ii) the portion of net income (or loss) of the Company and its Consolidated Restricted Subsidiaries allocable to interests in unconsolidated Persons or Unrestricted Subsidiaries, except to the extent of the amount of dividends or distributions actually paid to the Company or its Consolidated Restricted Subsidiaries by such other Person during such period, (iii) any gain or loss, net of taxes, realized upon the termination of any employee pension benefit plan, (iv) net gains but not losses (less all fees and expenses relating thereto) in respect of dispositions of assets other than in the ordinary course of business, (v) the net income of the Company or any Restricted Subsidiary to the extent that the declaration of dividends or similar distributions by the Company or that Restricted Subsidiary of that income is not at the time permitted, directly or indirectly, by operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to the Company, that Restricted Subsidiary or its shareholders, (vi) any impairment charge or asset write-off, in each case, pursuant to GAAP and the amortization of intangibles and other assets or any depreciation expense, in each case, pursuant to GAAP, or (vii) expenses relating to the issuance of the Securities and the Initial Debt Transactions, and (b) by including, to the extent excluded in calculating such net income (or loss), without duplication, any cash contributions to the Company or any Restricted Subsidiary by Unrestricted Subsidiaries.

 

Solely for purposes of the calculation of Consolidated Net Income (Loss) under Section 1009, any cash amounts dividended, distributed, loaned or otherwise transferred to Parent by the Company or the Restricted Subsidiaries pursuant to Section 1009(b)(vii), without duplication of any amounts otherwise deducted in calculating Consolidated Net Income (Loss), the funds for which are provided by the Company and/or the Restricted Subsidiaries shall be deducted in calculating the Consolidated Net Income (Loss) of the Company and the Restricted Subsidiaries.

 

“Consolidation” means, with respect to any Person, the consolidation of the accounts of such Person and each of its subsidiaries (other than any Unrestricted Subsidiaries) if and to the extent the accounts of such Person and each of its subsidiaries (other than any Unrestricted Subsidiaries) would normally be consolidated with those of such Person, all in accordance with GAAP consistently applied.  The term “Consolidated” shall have a similar meaning.

 

“Contract Stations” means (a) each television or radio station identified as such in Schedule I to this Indenture, (b) each television or radio station that is the subject of an acquisition referred to in clause (b) of the definition of “Acquisitions” in the Bank

 

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Credit Agreement consummated by the Company or any Subsidiary on or after the Issue Date and (c) any television or radio station with which the Company or any Subsidiary has entered into any Local Marketing Agreement on or after the Issue Date, in each case until such time, if any, as the Company or any Subsidiary acquires the Broadcast License of such television or radio station and such station becomes an Owned Station.

 

“Corporate Trust Office” means the office of the Trustee or an affiliate or agent thereof at which at any particular time the corporate trust business for the purposes of this Indenture shall be principally administered, which office at the date of execution of this Indenture is located at U.S. Bank National Association, Two James Center, 1021 East Cary Street, 18th Floor, Richmond, Virginia 23219, Attention: Melody M. Scott.

 

“Cumulative Consolidated Interest Expense” means, as of any date of determination, Consolidated Interest Expense from October 29, 2009 to the end of the Company’s most recently ended full fiscal quarter prior to such date, taken as a single accounting period.

 

“Cumulative Operating Cash Flow” means, as of any date of determination, Operating Cash Flow from October 29, 2009 to the end of the Company’s most recently ended full fiscal quarter prior to such date, taken as a single accounting period.

 

“Cunningham” means Cunningham Broadcasting Corporation, a Maryland corporation.

 

“Debt to Operating Cash Flow Ratio” means, as of any date of determination, the ratio of (a) the aggregate principal amount of all outstanding Indebtedness of the Company and the Restricted Subsidiaries as of such date on a Consolidated basis plus the aggregate liquidation preference or redemption amount of all Disqualified Equity Interests of the Company (excluding any such Disqualified Equity Interests held by the Company or a Wholly Owned Restricted Subsidiary of the Company), to (b) Operating Cash Flow of the Company and the Restricted Subsidiaries on a Consolidated basis for the four most recent full fiscal quarters ending immediately prior to such date, determined on a pro forma basis (and after giving pro forma effect to (i) the incurrence of such Indebtedness and (if applicable) the application of the net proceeds therefrom, including to refinance other Indebtedness, as if such Indebtedness was incurred, and the application of such proceeds occurred, at the beginning of such four-quarter period; (ii) the incurrence, repayment or retirement of any other Indebtedness by the Company and the Restricted Subsidiaries since the first day of such four-quarter period as if such Indebtedness was incurred, repaid or retired at the beginning of such four-quarter period (except that, in making such computation, the amount of Indebtedness under any revolving credit facility shall be computed based upon the average balance of such Indebtedness at the end of each month during such four-quarter period); (iii) in the case of Acquired Indebtedness, the related acquisition, as if such acquisition had occurred at the

 

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beginning of such four-quarter period; and (iv) any acquisition or disposition by the Company and the Restricted Subsidiaries of any company or any business or any assets out of the ordinary course of business, or any related repayment of Indebtedness, in each case since the first day of such four-quarter period, assuming such acquisition or disposition had been consummated on the first day of such four-quarter period).

 

“Default” means any event which is, or after notice or passage of any time or both would be, an Event of Default.

 

“Designated Noncash Consideration” means the Fair Market Value of non-cash consideration (other than any Local Marketing Agreement valuation treated as cash) received by the Company or any Restricted Subsidiary in connection with an Asset Sale (other than an Asset Swap) that is conclusively designated pursuant to an Officers’ Certificate.  The aggregate Fair Market Value of the Designated Noncash Consideration, taken together with the Fair Market Value at the time of receipt of all other Designated Noncash Consideration then held by the Company or the Restricted Subsidiaries, may not exceed $25.0 million at any one time outstanding.

 

“Depositary” means, with respect to the Securities issued in the form of Global Securities, if any, The Depository Trust Company, a New York limited purpose corporation, its nominees and successors, or any other Person designated as the Depositary by the Company pursuant to Section 305(b), in each case registered as a “clearing agency” under the Exchange Act and maintaining a book-entry system that qualifies for treatment as “registered form” under Section 163(f) of the Code.

 

“Designated SBG Subsidiary” means (a) KDSM, LLC and KDSM Licensee, LLC and (b) each other subsidiary of Parent that is designated as a “Designated SBG Subsidiary” after the Issue Date pursuant to this Indenture or the Bank Credit Agreement, in each case so long as such subsidiary remains a Designated SBG Subsidiary.  Parent and the Company may, at any time or from time to time upon not less than five Business Days’ notice to the Trustee (or such shorter period that is acceptable to the Trustee), designate any subsidiary of Parent (other than the Company or any of its directly or indirectly owned Subsidiaries) (including any acquired or newly formed subsidiary of Parent) to be a “Designated SBG Subsidiary” for purposes of this Indenture.  The designation by Parent and the Company of any subsidiary of Parent as a Designated SBG Subsidiary hereunder shall be effective subject to satisfaction of the following conditions: (i) immediately before and after giving effect to such designation, no Default shall have occurred or be continuing and (ii) the Trustee shall have received a certificate of a senior officer of Parent and the Company certifying that the conditions to the designation of such Designated SBG Subsidiary under this Indenture have been satisfied.

 

“Disqualified Equity Interests” means any Equity Interests that, either by their terms or by the terms of any security into which they are convertible or exchangeable or

 

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otherwise, are, or upon the happening of an event or passage of time would be, required to be redeemed prior to any Stated Maturity of the principal of the Securities or are redeemable at the option of the Holder thereof at any time prior to any such Stated Maturity (other than upon a change of control of or sale of assets by the Company in circumstances where the Holders of the Securities would have similar rights), or are convertible into or exchangeable for debt securities at any time prior to any such Stated Maturity at the option of the holder thereof.

 

“Equity Interest” of any Person means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) corporate stock or other equity participations, including partnership interests, whether general or limited, of such Person, including any Preferred Equity Interests.

 

“Equity Offering” means a public or private offering for cash by the Company or Parent, as the case may be, of its Equity Interests, other than (x) public offerings with respect to the Company’s or Parent’s Equity Interests registered on Form S-4 or S-8, (y) an issuance to any Subsidiary or (z) any offering of Equity Interests issued in connection with a transaction that constitutes a Change of Control.

 

“Euroclear” means the Euroclear Clearance System or any successor securities clearing agency.

 

“Event of Default” has the meaning specified in Article Five.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Exchange Offer” means the exchange offer by the Company of Series B Securities for Series A Securities to be effected pursuant to Section 2(a) of the Registration Rights Agreement.

 

“Exchange Offer Registration Statement” means the registration statement under the Securities Act contemplated by Section 2(a) of the Registration Rights Agreement.

 

“Existing Senior Notes” means the Company’s 8.375% Senior Notes due 2018, 6.125% Senior Notes due 2022, 5.375% Senior Notes due 2021 and 6.375% Senior Notes due 2021.

 

“Fair Market Value” means, with respect to any asset or property, the sale value that would be obtained in an arm’s-length transaction between an informed and willing seller under no compulsion to sell and an informed and willing buyer under no compulsion to buy.

 

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“FCC” means the Federal Communications Commission and any successor agency thereto.

 

“Film Contract” means contracts with suppliers that convey the right to broadcast specified films, videotape motion pictures, syndicated television programs or sports or other programming.

 

“Financial Officer” means the chief financial officer, chief accounting officer or treasurer of the Company or Parent.

 

“Generally Accepted Accounting Principles” or “GAAP” means generally accepted accounting principles in the United States, consistently applied, which are in effect on the Issue Date.

 

“Global Security” means a Security in book-entry form in the form prescribed in Sections 202 through 205 evidencing all or part of the Securities, issued to the Depositary or its nominee and registered in the name of the Depositary or such nominee.

 

“Guarantee” means the guarantee by any Guarantor of the Company’s Indenture Obligations pursuant to a guarantee given in accordance with this Indenture, including, without limitation, the Guarantees by the Guarantors included in Article Thirteen of this Indenture and any Guarantee delivered pursuant to Section 1013.

 

“Guaranteed Debt” of any Person means, without duplication, all Indebtedness of any other Person referred to in the definition of Indebtedness contained in this Section 101 guaranteed directly or indirectly in any manner by such Person, or in effect guaranteed directly or indirectly by such Person through an agreement (i) to pay or purchase such Indebtedness or to advance or supply funds for the payment or purchase of such Indebtedness, (ii) to purchase, sell or lease (as lessee or lessor) property, or to purchase or sell services, primarily for the purpose of enabling the debtor to make payment of such Indebtedness or to assure the holder of such Indebtedness against loss, (iii) to supply funds to, or in any other manner invest in, the debtor (including any agreement to pay for property or services without requiring that such property be received or such services be rendered), (iv) to maintain working capital or equity capital of the debtor, or otherwise to maintain the net worth, solvency or other financial condition of the debtor or (v) otherwise to assure a creditor against loss; provided that the term “guarantee” shall not include endorsements for collection or deposit, in either case in the ordinary course of business.

 

“Guarantor” means (1) initially Parent, the subsidiaries of the Company listed as guarantors in Annex A of this Indenture, each SBG Guarantor and any other guarantor of the Indenture Obligations and (2) each of the Company’s Subsidiaries and each Designated SBG Subsidiary which becomes a Guarantor of the Securities pursuant to the

 

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provisions of this Indenture, and their successors, in each case, until released from its respective Guarantee pursuant to this Indenture.

 

“Guarantor Pari Passu Indebtedness” means Indebtedness of a Guarantor that ranks equally in right of payment to its Guarantee.

 

“Hedging Agreement” means any swap agreement, cap agreement, collar agreement, put or call, futures contract, forward contract or similar agreement or arrangement entered into to protect against or mitigate the effect of fluctuations in the price of the Company’s publicly issued common stock or in interest rates, foreign exchange rates or prices of commodities used in the business of the Company and its Subsidiaries and any master agreement relating to any of the foregoing.

 

“Holder” means a Person in whose name a Security is registered in the Security Register.

 

“Indebtedness” means, with respect to any Person, without duplication, (i) all indebtedness of such Person for borrowed money or for the deferred purchase price of property or services, excluding any trade payables and other accrued current liabilities arising in the ordinary course of business, but including, without limitation, all obligations, contingent or otherwise, of such Person in connection with any letters of credit issued under letter of credit facilities, acceptance facilities or other similar facilities and in connection with any agreement to purchase, redeem, exchange, convert or otherwise acquire for value any Equity Interests of such Person, or any warrants, rights or options to acquire such Equity Interests, now or hereafter outstanding, (ii) all obligations of such Person evidenced by bonds, notes, debentures or other similar instruments, (iii) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even if the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), but excluding trade payables arising in the ordinary course of business, (iv) all obligations under Interest Rate Agreements of such Person (but excluding any terminated derivatives being amortized), (v) all Capital Lease Obligations of such Person, (vi) all Indebtedness referred to in clauses (i) through (v) above of other Persons and all dividends of other Persons, the payment of which is secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien, upon or with respect to property (including, without limitation, accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such Indebtedness, (vii) all Guaranteed Debt of such Person, (viii) all Disqualified Equity Interests valued at the greater of their voluntary or involuntary maximum fixed repurchase price plus accrued and unpaid dividends, and (ix) any amendment, supplement, modification, deferral, renewal, extension, refunding or refinancing of any liability of the types referred to in clauses (i) through (viii) above; provided, however, that the term Indebtedness shall not

 

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include any obligations of the Company and the Restricted Subsidiaries with respect to Film Contracts entered into in the ordinary course of business.  The amount of Indebtedness of any Person at any date shall be, without duplication, the principal amount that would be shown on a balance sheet of such Person prepared as of such date in accordance with GAAP and the maximum determinable liability of any Guaranteed Debt referred to in clause (vii) above at such date.  The Indebtedness of the Company and the Restricted Subsidiaries shall not include any Indebtedness of Unrestricted Subsidiaries so long as such Indebtedness is non-recourse to the Company and the Restricted Subsidiaries.  For purposes hereof, the “maximum fixed repurchase price” of any Disqualified Equity Interests which do not have a fixed repurchase price shall be calculated in accordance with the terms of such Disqualified Equity Interests as if such Disqualified Equity Interests were purchased on any date on which Indebtedness shall be required to be determined pursuant to this Indenture, and if such price is based upon, or measured by, the Fair Market Value of such Disqualified Equity Interests, such Fair Market Value to be determined in good faith by the Board of Directors of the issuer of such Disqualified Equity Interests.  The amount of any Indebtedness outstanding as of any date shall be (1) the accreted value thereof in the case of any Indebtedness issued with original issue discount or the aggregate principal amount outstanding in the case of Indebtedness issued with interest payable in kind and (2) the principal amount or liquidation preference thereof, together with any interest thereon that is more than 30 days past due, in the case of any other Indebtedness.

 

“Indenture” means this instrument as originally executed and as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof, including, for all purposes of this instrument and any such supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of and govern this instrument and any such supplemental indenture, respectively.

 

“Indenture Obligations” means the obligations of the Company and any other obligor under this Indenture or under the Securities, including any Guarantor, to pay principal, premium, if any, and interest when due and payable, and all other amounts due or to become due under or in connection with this Indenture, the Securities and the performance of all other obligations to the Trustee and the Holders under this Indenture and the Securities, according to the terms hereof and thereof.

 

“Independent Director” means a director of Parent or the Company other than a director (i) who (apart from being a director of Parent, the Company or any Subsidiary) is an employee, insider, associate or Affiliate of Parent, the Company or a Subsidiary or has held any such position during the previous five years or (ii) who is a director, an employee, insider, associate or Affiliate of another party to the transaction in question.

 

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“Initial Debt Transactions” means (1) the issuance of the Securities by the Company and the Guarantees by the Guarantors, and (2) the amendment of the Bank Credit Agreement, in each case as described in the Offering Memorandum.

 

“Initial Purchasers”shall mean J.P. Morgan Securities LLC, RBC Capital Markets, LLC, Wells Fargo Securities, LLC, SunTrust Robinson Humphrey, Inc., Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Mitsubishi UFJ Securities (USA), Inc., Moelis & Company LLC and LionTree Advisors LLC, as initial purchasers of the Securities.

 

“Initial Securities” has the meaning specified in the Recitals.

 

“Institutional Accredited Investor” means any institutional “accredited investor” as defined in Rules 501(a)(1), (2), (3) and (7) under the Securities Act who is not a QIB.

 

“Institutional Accredited Investor Transfer Certificate” means a certificate substantially in the form set forth in Exhibit C.

 

“Institutional Accredited Investor Global Securities” means one or more permanent Global Securities in registered form representing the aggregate principal amount of Securities sold to Institutional Accredited Investors in reliance on Regulation D under the Securities Act.

 

“Interest Payment Date” means the Stated Maturity of an installment of interest on the Securities.

 

“Interest Rate Agreements” means one or more of the following agreements which shall be entered into from time to time by one or more financial institutions:  interest rate protection agreements (including, without limitation, interest rate swaps, caps, floors, collars and similar agreements) and any obligations in respect of any Hedging Agreements.

 

“Investment Grade Rating” means a rating equal to or higher than Baa3 by Moody’s (or the equivalent rating by a nationally recognized statistical rating agency or agencies, as the case may be, selected by the Company (as certified by a resolution of the Board of Directors of Parent or the Company) which shall be substituted for Moody’s) or BBB- by S&P (or the equivalent rating by a nationally recognized statistical rating agency or agencies, as the case may be, selected by the Company (as certified by a resolution of the Board of Directors of Parent or the Company) which shall be substituted for S&P).

 

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“Investment Grade Rating Event” means the first day on which the Securities are assigned an Investment Grade Rating by both Rating Agencies and no Default or Event of Default has occurred and is continuing.

 

“Investments” means, with respect to any Person, directly or indirectly, any advance, loan (including guarantees), or other extension of credit or capital contribution to (by means of any transfer of cash or other property to others or any payment for property or services for the account or use of others), or any purchase, acquisition or ownership by such Person of any Equity Interests, bonds, notes, debentures or other securities or assets issued or owned by any other Person and all other items that would be classified as investments on a balance sheet prepared in accordance with GAAP.

 

“Issue Date” means July 23, 2014.

 

“License Subsidiary” means (a) with respect to each Station that is an Owned Station on the Issue Date, the Subsidiary of the Company listed as the holder of the Broadcast Licenses for such Owned Station and (b) with respect to any Owned Station hereafter acquired by the Company or any of its Subsidiaries, the Subsidiary of the Company formed, created, or acquired after the Issue Date that holds the Broadcast Licenses for such Owned Station, and in each case any other Subsidiary into which any such License Subsidiary may be merged pursuant to the Bank Credit Agreement as in effect on the Issue Date.

 

“Lien” means any mortgage, charge, pledge, lien (statutory or otherwise), privilege, security interest, hypothecation or other encumbrance upon or with respect to any property of any kind (including any conditional sale or other title retention agreement, any leases in the nature thereof, and any agreement to give any security interest), real or personal, movable or immovable, now owned or hereafter acquired.

 

“Local Marketing Agreement” means a local marketing arrangement, sale agreement, time brokerage agreement, management agreement, outsourcing agreement, joint sale agreement, shared services agreement, program services agreement or similar arrangement pursuant to which a Person (i) obtains the right to sell at least a majority of the advertising inventory of a television station on behalf of a third party, (ii) purchases at least a majority of the air time of a television station to exhibit programming and sell advertising time, (iii) manages the selling operations of a television station with respect to at least a majority of the advertising inventory of such station, (iv) manages or controls the acquisition of programming for a television station, (v) acts as a program consultant for a television station, (vi) manages the operation of a television station generally, (vii) obtains the right to negotiate retransmission consent on behalf of a third party, (viii) provides non-programming related management and/or consulting services to a television station, (ix) consults, manages, sells or negotiates uses of excess spectrum or (x) any put or option agreement entered into in connection with any agreement referred to in clauses

 

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(i) through (ix) above that provides a right to acquire or sell the license or non-license assets of a television station.

 

“Material Third-Party Licensee” shall have the meaning assigned to such term in the Bank Credit Agreement.

 

“Maturity” means, when used with respect to any Security, the date on which the principal of such Security becomes due and payable as therein provided or as provided in this Indenture, whether at Stated Maturity, the Offer Date, or the Redemption Date and whether by declaration of acceleration, Offer in respect of Excess Proceeds, Change of Control, call for redemption or otherwise.

 

“Moody’s” means Moody’s Investors Service, Inc. and any successor to the rating agency business thereto.

 

“Net Cash Proceeds” means (a) with respect to any Asset Sale by any Person, the proceeds thereof in the form of cash or Temporary Cash Investments including payments in respect of deferred payment obligations when received in the form of, or stock or other assets when disposed of for, cash or Temporary Cash Investments (except to the extent that such obligations are financed or sold with recourse to the Company or any Restricted Subsidiary) net of (i) brokerage commissions and other reasonable fees and expenses (including fees and expenses of counsel and investment bankers) related to such Asset Sale, (ii) provisions for all taxes payable as a result of such Asset Sale, (iii) payments made to retire Indebtedness where payment of such Indebtedness is secured by the assets or properties the subject of such Asset Sale, (iv) amounts required to be paid to any Person (other than the Company or any Restricted Subsidiary) owning a beneficial interest in the assets subject to the Asset Sale and (v) appropriate amounts to be provided by the Company or any Restricted Subsidiary, as the case may be, as a reserve, in accordance with GAAP, against any liabilities associated with such Asset Sale and retained by the Company or any Restricted Subsidiary, as the case may be, after such Asset Sale, including, without limitation, pension and other post-employment benefit liabilities, liabilities related to environmental matters and liabilities under any indemnification obligations associated with such Asset Sale, all as reflected in an Officers’ Certificate delivered to the Trustee and (b) with respect to any issuance or sale of Equity Interests, or debt securities or Equity Interests that have been converted into or exchanged for Equity Interests, as referred to under Section 1009, the proceeds of such issuance or sale in the form of cash or Temporary Cash Investments, including payments in respect of deferred payment obligations when received in the form of, or stock or other assets when disposed for, cash or Temporary Cash Investments (except to the extent that such obligations are financed or sold with recourse to the Company or any Restricted Subsidiary), net of attorney’s fees, accountant’s fees and brokerage, consultation, underwriting and other fees and expenses actually incurred in connection with such issuance or sale and net of taxes paid or payable as a result thereof.

 

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“Offering Memorandum” means the final offering memorandum related to the issuance of the Securities, dated July 9, 2014.

 

“Officer” means, with respect to any Person, the Chairman of the Board, Vice Chairman, the President, a Vice President (regardless of vice presidential designation), the Chief Financial Officer, the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary.

 

“Officers’ Certificate” means a certificate signed by two Officers, one of whom must be the Chairman of the Board, Vice Chairman, the President, the Chief Financial Officer or the Treasurer, of the Company or any Guarantor, as the case may be, and delivered to the Trustee.

 

“Operating Cash Flow” means, for any period, the Consolidated Net Income (Loss) of the Company and the Restricted Subsidiaries for such period, plus (a) extraordinary net losses and net losses on sales of assets outside the ordinary course of business during such period, to the extent such losses were deducted in computing Consolidated Net Income (Loss), plus (b) provision for taxes based on income or profits, to the extent such provision for taxes was included in computing such Consolidated Net Income (Loss), and any provision for taxes utilized in computing the net losses under clause (a) hereof, plus (c) Consolidated Interest Expense of the Company and the Restricted Subsidiaries for such period, plus (d) depreciation, amortization and all other non-cash charges, to the extent such depreciation, amortization and other non-cash charges were deducted in computing such Consolidated Net Income (Loss) (including amortization of goodwill and other intangibles, including Film Contracts and write-downs of Film Contracts), plus (e) to the extent deducted from Consolidated Net Income (Loss), all transaction costs relating to the Initial Debt Transactions, plus (f) cash distributions received from Unrestricted Subsidiaries, minus (g) any cash payments contractually required to be made with respect to Film Contracts (to the extent not previously included in computing such Consolidated Net Income (Loss)).

 

“Opinion of Counsel” means a written opinion of legal counsel who shall be acceptable to the Trustee.  The counsel may be an employee or consultant of or counsel to Parent, the Company, any Guarantor or the Trustee.

 

“Opinion of Independent Counsel” means a written opinion of legal counsel issued by someone who is not an employee or consultant of Parent, the Company or any Guarantor and who shall be acceptable to the Trustee.

 

“Outstanding” when used with respect to Securities means, as of the date of determination, all Securities theretofore authenticated and delivered under this Indenture, except:

 

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(a)                           Securities theretofore cancelled by the Trustee or delivered to the Trustee for cancellation;

 

(b)                           Securities, or portions thereof, for whose payment or redemption money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent (other than the Company or any Affiliate thereof) in trust or set aside and segregated in trust by the Company or such Affiliate (if the Company or such Affiliate shall act as the Paying Agent) for the Holders; provided that if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor reasonably satisfactory to the Trustee has been made;

 

(c)                            Securities, except to the extent provided in Sections 402 and 403, with respect to which the Company has effected defeasance or covenant defeasance as provided in Article Four; and

 

(d)                           Securities in exchange for or in lieu of which other Securities have been authenticated and delivered pursuant to this Indenture, other than any such Securities in respect of which there shall have been presented to the Trustee proof reasonably satisfactory to it that such Securities are held by a bona fide purchaser in whose hands the Securities are valid obligations of the Company; provided, however, that in determining whether the Holders of the requisite principal amount of Outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Securities owned by the Company, any Guarantor, or any other obligor upon the Securities or any Affiliate of the Company, any Guarantor, or such other obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Securities which the Trustee knows to be so owned shall be so disregarded.  Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the reasonable satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not the Company, any Guarantor or any other obligor upon the Securities or any Affiliate of the Company, any Guarantor or such other obligor.

 

“Owned Stations” means (a) each television or radio station identified as such in Schedule II to this Indenture and (b) any television or radio station the Broadcast Licenses of which are owned or held by the Company or any of its Subsidiaries on or after the Issue Date.

 

“Parent” means Sinclair Broadcast Group, Inc., a corporation incorporated under the laws of the State of Maryland, and any successor thereto permitted by the applicable provisions of this Indenture, and thereafter “Parent” shall mean such successor Person.

 

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“Pari Passu Indebtedness” means any Indebtedness of the Company or any Guarantor that is pari passu in right of payment to the Securities or any Guarantee, as the case may be.

 

“Paying Agent” means any Person authorized by the Company to pay the principal of, premium, if any, or interest on any Securities on behalf of the Company.

 

“Permitted Holders” means as of the date of determination (i) any of David D. Smith, Frederick G. Smith, J. Duncan Smith and Robert E. Smith; (ii) family members or the relatives of the Persons described in clause (i); (iii) any trusts created for the benefit of the Persons described in clause (i), (ii) or (iv) or any trust for the benefit of any such trust; or (iv) in the event of the incompetence or death of any of the Persons described in clauses (i) and (ii), such Person’s estate, executor, administrator, committee or other personal representative or beneficiaries, in each case who at any particular date shall beneficially own or have the right to acquire, directly or indirectly, Equity Interests of Parent or the Company.  Parent and each Wholly Owned Restricted Subsidiary shall be a “Permitted Holder”with respect to the Company.

 

“Permitted Indebtedness” has the meaning specified in Section 1008.

 

“Permitted Investment” means (i) Investments in the Company or any Wholly Owned Restricted Subsidiary; (ii) Indebtedness of the Company or a Restricted Subsidiary described in Section 1008(b)(v) and 1008(b)(vi); (iii) Temporary Cash Investments; (iv) Investments acquired by the Company or any Restricted Subsidiary in connection with an Asset Sale permitted under Section 1012 to the extent such Investments are non-cash proceeds as permitted under such covenant; (v) guarantees of Indebtedness otherwise permitted by this Indenture; (vi) Investments in existence on the Issue Date; (vii) loans up to an aggregate of $1,000,000 outstanding at any time to employees pursuant to benefits available to the employees of the Company or any Restricted Subsidiary from time to time in the ordinary course of business; (viii) any Investments in the Securities; (ix) a Guarantee by any Guarantor and any other guarantee given by a Guarantor of any Indebtedness of the Company in accordance with this Indenture; (x) Investments by the Company or any Restricted Subsidiary in a Person, if as a result of such Investment (I) such Person becomes a Restricted Subsidiary or (II) such Person is merged, consolidated with or into, or transfers or conveys substantially all of its assets to, or is liquidated into, the Company or a Restricted Subsidiary; (xi) other Investments relating to broadcast divisions that do not exceed $200,000,000 at any time outstanding; (xii) any Investments in any subsidiary of Parent (other than Restricted Subsidiaries) to allow for the payment of general and administrative overhead of subsidiaries of Parent so long as the aggregate payments pursuant to this clause (xii) shall not in any fiscal year exceed an amount equal to $30,000,000 minus any payments made pursuant to Section 1009(b)(vii)(d); (xiii) any Investments in any subsidiary of Parent (other than Restricted Subsidiaries) that allow for the payment of unfunded commitments

 

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relating to operating divisions other than broadcast divisions, so long as the amount of all payments pursuant to this clause (xiii) shall not exceed an amount equal to $100,000,000 in the aggregate minus any payments made pursuant to Section 1009(b)(vii)(f); (xiv) (a) Investments in Local Marketing Agreement purchase options (other than Local Marketing Agreement purchase options with Cunningham or a wholly-owned subsidiary of Cunningham or purchase options in existence as of the date hereof) in an amount of up to $250,000,000  in the aggregate plus customary closing fees and expenses and (b) Investments in Local Marketing Agreement purchase options with Cunningham or a wholly-owned subsidiary of Cunningham; and (xv) if otherwise permitted pursuant to FCC rules and regulations and the terms and conditions of the Bank Credit Agreement, the acquisition of any television station which is subject to an option agreement, merger agreement or any similar agreement existing between Parent, the Company and any of their respective subsidiaries and the owners of such television station.

 

“Permitted Subsidiary Indebtedness” means:

 

(i)                               Indebtedness of any Guarantor under Capital Lease Obligations incurred in the ordinary course of business; and

 

(ii)                            Indebtedness of any Guarantor (a) issued to finance or refinance the purchase or construction of any assets of such Guarantor or (b) secured by a Lien on any assets of such Guarantor where the lender’s sole recourse is to the assets so encumbered, in either case (x) to the extent the purchase or construction prices for such assets are or should be included in “property and equipment” in accordance with GAAP and (y) if the purchase or construction of such assets is not part of any acquisition of a Person or business unit.

 

“Person” means any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivisions thereof.

 

“Predecessor Security” of any particular Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 308 in exchange for a mutilated Security or in lieu of a lost, destroyed or stolen Security shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Security.

 

“Preferred Equity Interest”, as applied to the Equity Interests of any Person, means an Equity Interest of any class or classes (however designated) which is preferred as to the payment of dividends or distributions, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such person, over Equity Interests of any other class of such Person.

 

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“Prospectus” means the prospectus included in a Registration Statement, including any preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus supplement, including any such prospectus supplement with respect to the terms of the offering of any portion of the Initial Securities covered by a Shelf Registration Statement, and by all other amendments and supplements to such prospectus, including post-effective amendments, and in each case including all material incorporated by reference therein.

 

“QIB” means a qualified institutional buyer under Rule 144A of the Securities Act.

 

“Qualified Equity Interests” of any Person means any and all Equity Interests of such Person other than Disqualified Equity Interests.

 

“Rating Agency” means each of S&P and Moody’s, or if S&P or Moody’s or both shall not make a rating on the Securities publicly available, a nationally recognized statistical rating agency or agencies, as the case may be, selected by the Company (as certified by a resolution of the Board of Directors of Parent or the Company) which shall be substituted for S&P and Moody’s, or both, as the case may be.

 

“Redemption Date” when used with respect to any Security to be redeemed pursuant to any provision in this Indenture means the date fixed for such redemption by or pursuant to this Indenture.

 

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

 

“Refinancing Date” means the date of the amendment and restatement of the Bank Credit Agreement as described in the Offering Memorandum under the heading “Summary—Recent Developments—Amendment and Restatement of Bank Credit Agreement.”

 

“Registration Rights Agreement” means the Registration Rights Agreement, dated as of July 23, 2014, among the Company, the Guarantors and the Initial Purchasers.

 

“Registration Statement” means any registration statement of the Company which covers any of the Initial Securities pursuant to the provisions of the Registration Rights Agreement, and all amendments and supplements to any such Registration Statement, including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference therein.

 

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“Regular Record Date” for the interest payable on any Interest Payment Date means the 15th day (whether or not a Business Day) next preceding such Interest Payment Date.

 

“Regulation S” means Regulation S under the Securities Act.

 

“Regulation S Global Securities” means one or more permanent Global Securities in registered form representing the aggregate principal amount of Securities sold in reliance on Regulation S under the Securities Act.

 

“Responsible Officer” when used with respect to the Trustee means any officer assigned to the Corporate Trust Office or the agent of the Trustee appointed hereunder, including any vice president, assistant vice president, assistant secretary, or any other officer or assistant officer of the Trustee or the agent of the Trustee appointed hereunder to whom any corporate trust matter is referred because of his or her knowledge of and familiarity with the particular subject.

 

“Restricted Payment” has the meaning specified in Section 1009.

 

“Restricted Securities Legend” means a legend substantially in the form of the legend required in the form of Security set forth in Section 202 to be placed upon a Restricted Security.

 

“Restricted Security” means each Security required pursuant to Section 306 to bear a Restricted Securities Legend.

 

“Restricted Subsidiary” means a Subsidiary of the Company (including, for the avoidance of doubt, any Designated SBG Subsidiary) other than an Unrestricted Subsidiary.

 

“Rule 144A” means Rule 144A under the Securities Act.

 

“Rule 144A Global Securities” means one or more permanent Global Securities in registered form representing the aggregate principal amount of Securities sold in reliance on Rule 144A under the Securities Act.

 

“Rule 144A Information” shall be such information with respect to the Company and the Guarantors as is specified pursuant to Rule 144A(d)(4) under the Securities Act (or any successor provision thereto).

 

“S&P” means Standard & Poor’s Ratings Services, a division of Standard & Poor’s Financial Services LLC, a division of The McGraw-Hill Companies, Inc., and any successor to the rating agency business thereto.

 

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“Sale and Leaseback Transaction” means any transaction or series of related transactions pursuant to which the Company or a Restricted Subsidiary sells or transfers any property or asset in connection with the leasing, or the resale against installment payments, of such property or asset to the seller or transferor.

 

“SBG Guarantor” means each Designated SBG Subsidiary and each other subsidiary of Parent that becomes a Guarantor after the Issue Date pursuant to the terms of this Indenture, in each case, so long as such subsidiary remains an SBG Guarantor under this Indenture.

 

“Secured Debt to Operating Cash Flow Ratio” means, as of the date of determination, the ratio of (a) the aggregate principal amount of all outstanding secured Indebtedness of the Company and the Restricted Subsidiaries as of such date on a Consolidated basis to (b) Operating Cash Flow of the Company and the Restricted Subsidiaries on a Consolidated basis for the four most recent full fiscal quarters ending immediately prior to such date, determined on a pro forma basis (and after giving pro forma effect to (1) the incurrence of such Indebtedness and (if applicable) the application of the net proceeds therefrom, including to refinance other Indebtedness, as if such Indebtedness was incurred, and the application of such proceeds occurred, at the beginning of such four-quarter period; (2) the incurrence, repayment or retirement of any other Indebtedness by the Company and the Restricted Subsidiaries since the first day of such four-quarter period as if such Indebtedness was incurred, repaid or retired at the beginning of such four-quarter period (except that, in making such computation, the amount of Indebtedness under any revolving credit facility shall be computed based upon the average balance of such Indebtedness at the end of each month during such four-quarter period); (3) in the case of Acquired Indebtedness, the related acquisition as if such acquisition had occurred at the beginning of such four-quarter period; and (4) any acquisition or disposition by the Company and the Restricted Subsidiaries of any company or any business or any assets out of the ordinary course of business, or any related repayment of Indebtedness, in each case since the first day of such four-quarter period, assuming such acquisition or disposition had been consummated on the first day of such four-quarter period).

 

“Securities” has the meaning specified in the Recitals.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Security Register” and “Security Registrar” have the respective meanings specified in Section 306.

 

“Separation Transaction” means the sale or separation of the non-television business of Parent and its subsidiaries in whole or in part, whether by asset sale or otherwise.

 

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“Series A Securities” has the meaning specified in the Recitals.

 

“Series B Securities” has the meaning specified in the Recitals.

 

“Shelf Registration Statement” means a “shelf” registration statement of the Company pursuant to Section 2(b) of the Registration Rights Agreement, which covers all or a portion of the Registrable Securities (as defined in the Registration Rights Agreement) on an appropriate form under Rule 415 under the Securities Act, or any similar rule that may be adopted by the Commission, and all amendments and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference therein.

 

“Significant Subsidiary” means, at any date of determination: (1) each Guarantor or Restricted Subsidiary that, together with its Subsidiaries that constitute Restricted Subsidiaries, (A) for the most recent fiscal year of Parent accounted for more than 10% of the consolidated revenues of Parent and the Restricted Subsidiaries or (B) as of the end of such fiscal year, owned more than 10% of the consolidated assets of Parent and the Restricted Subsidiaries, all as set forth on the consolidated financial statements of Parent and the Restricted Subsidiaries for such year in conformity with GAAP; and (2) any Restricted Subsidiary which, when aggregated with all other Restricted Subsidiaries that are not otherwise Significant Subsidiaries and as to which any event described Section 501 (g) or (h) has occurred, would constitute a Significant Subsidiary under clause (1) of this definition.

 

“Special Record Date” for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 309.

 

“Stated Maturity” when used with respect to any Indebtedness or any installment of interest thereon, means the date specified in such Indebtedness as the fixed date on which the principal of such Indebtedness or such installment of interest is due and payable.

 

“Stations” means the Owned Stations and the Contract Stations.

 

“Subordinated Indebtedness” means Indebtedness of the Company or any Guarantor subordinated in right of payment to the Securities or any Guarantee, as the case may be.

 

“Subsidiary” means any Person a majority of the equity ownership or the Voting Stock of which is at the time owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the Company and one or more other Subsidiaries; provided that each Designated SBG Subsidiary shall be deemed to be a Subsidiary of the 

 

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Company for all purposes of the Securities and this Indenture (unless the context requires otherwise).

 

“Successor Security” of any particular Security means every Security issued after, and evidencing all or a portion of the same debt as that evidenced by, such particular Security.  For the purposes of this definition, any Security authenticated and delivered under Section 308 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Security.

 

“Temporary Cash Investments” means (i) any evidence of Indebtedness, maturing not more than one year after the date of acquisition, issued by the United States of America, or an instrumentality or agency thereof and guaranteed fully as to principal, premium, if any, and interest by the United States of America, (ii) any certificate of deposit, maturing not more than one year after the date of acquisition, issued by, or time deposit of, a commercial banking institution that is a member of the Federal Reserve System and that has combined capital and surplus and undivided profits of not less than $500,000,000, whose debt has a rating, at the time as of which any investment therein is made, of “P-1” (or higher) according to Moody’s or “A-1” (or higher) according to S&P, (iii) commercial paper, maturing not more than one year after the date of acquisition, issued by a corporation (other than an Affiliate or Subsidiary of the Company) organized and existing under the laws of the United States of America with a rating, at the time as of which any investment therein is made, of “P-1” (or higher) according to Moody’s or “A-1” (or higher) according to S&P and (iv) any money market deposit accounts issued or offered by a domestic commercial bank having capital and surplus in excess of $500,000,000.

 

“Treasury Rate” means the yield to maturity at the time of computation of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least two Business Days prior to the Redemption Date (or, if such Statistical Release is no longer published, any publicly available source or similar market data)) most nearly equal to the period from the Redemption Date to August 1, 2019; provided, however, that if the period from the Redemption Date to August 1, 2019 is not equal to the constant maturity of a United States Treasury security for which a weekly average yield is given, the Treasury Rate shall be obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of United States Treasury securities for which such yields are given, except that if the period from the Redemption Date to August 1, 2019 is less than one year, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year shall be used.

 

“Trust Indenture Act” means the Trust Indenture Act of 1939, as amended.

 

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“Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument, until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean such successor Trustee.

 

“Unrestricted Subsidiary” means (i) any Subsidiary of the Company that at the time of determination shall be an Unrestricted Subsidiary (as designated by the Board of Directors of the Company, as provided below) and (ii) any Subsidiary of an Unrestricted Subsidiary.  The Board of Directors of Parent or the Company may designate any Subsidiary of the Company (including any newly acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary (and remove any Designated SBG Subsidiary as a Restricted Subsidiary and a Subsidiary) if all of the following conditions apply:  (a) such Subsidiary is not liable, directly or indirectly, with respect to any Indebtedness other than Unrestricted Subsidiary Indebtedness and (b) any Investment in such Subsidiary made as a result of designating such Subsidiary an Unrestricted Subsidiary shall not violate the provisions of Section 1018.  Any such designation by the Board of Directors of Parent or the Company shall be evidenced to the Trustee by filing with the Trustee a Board Resolution giving effect to such designation and an Officers’ Certificate certifying that such designation complies with the foregoing conditions.  The Board of Directors of Parent or the Company may designate any Unrestricted Subsidiary as a Restricted Subsidiary; provided that immediately after giving effect to such designation, the Company could incur $1.00 of additional Indebtedness (other than Permitted Indebtedness) pursuant to the restrictions under Section 1008(a).

 

“Unrestricted Subsidiary Indebtedness” of any Unrestricted Subsidiary means Indebtedness of such Unrestricted Subsidiary (i) as to which neither the Company nor any Restricted Subsidiary is directly or indirectly liable (by virtue of the Company or any such Restricted Subsidiary being the primary obligor on, guarantor of, or otherwise liable in any respect to, such Indebtedness), except Guaranteed Debt of the Company or any Restricted Subsidiary to any Affiliate, in which case (unless the incurrence of such Guaranteed Debt resulted in a Restricted Payment at the time of incurrence) the Company shall be deemed to have made a Restricted Payment equal to the principal amount of any such Indebtedness to the extent guaranteed at the time such Affiliate is designated an Unrestricted Subsidiary and (ii) which, upon the occurrence of a default with respect thereto, does not result in, or permit any holder of any Indebtedness of the Company or any Restricted Subsidiary to declare, a default on such Indebtedness of the Company or any Restricted Subsidiary or cause the payment thereof to be accelerated or payable prior to its Stated Maturity.

 

“Voting Stock” means stock of the class or classes pursuant to which the holders thereof have the general voting power under ordinary circumstances to elect at least a majority of the board of directors, managers or trustees of a corporation 

 

26

 

(irrespective of whether or not at the time stock of any other class or classes shall have or might have voting power by reason of the happening of any contingency).

 

“Wholly Owned Restricted Subsidiary” means a Restricted Subsidiary all the Equity Interest of which is owned by the Company or another Wholly Owned Restricted Subsidiary.  The Wholly Owned Restricted Subsidiaries of the Company currently consist of all of the Company’s Restricted Subsidiaries.

 

27

 

Section 102.  Other Definitions.

 

	
Term
    	
 
    	
Defined in
   Section
    
	
“Act”
    	
 
    	
105
    
	
“Additional Interest”
    	
 
    	
202
    
	
“Agent Members”
    	
 
    	
305
    
	
“Change of Control Offer”
    	
 
    	
1015
    
	
“Change of Control Purchase Date”
    	
 
    	
1015
    
	
“Change of Control Purchase Notice”
    	
 
    	
1015
    
	
“Change of Control Purchase Price”
    	
 
    	
1015
    
	
“covenant defeasance”
    	
 
    	
403
    
	
“Defaulted Interest”
    	
 
    	
309
    
	
“defeasance”
    	
 
    	
402
    
	
“Defeasance Redemption Date”
    	
 
    	
404
    
	
“Defeased Securities”
    	
 
    	
401
    
	
“Deficiency”
    	
 
    	
1012
    
	
“Excess Proceeds”
    	
 
    	
1012
    
	
“incur”
    	
 
    	
1008
    
	
“Offer”
    	
 
    	
1012
    
	
“Offer Date”
    	
 
    	
1012
    
	
“Offered Price”
    	
 
    	
1012
    
	
“Pari Passu Debt Amount” 
    	
 
    	
1012
    
	
“Pari Passu Offer”
    	
 
    	
1012
    
	
“Permitted Indebtedness”
    	
 
    	
1008
    
	
“Permitted Payments”
    	
 
    	
1009
    
	
“Physical Securities”
    	
 
    	
305
    
	
“refinancing”
    	
 
    	
1008
    
	
“Required Filing Dates”
    	
 
    	
1019
    
	
“Restricted Payments”
    	
 
    	
1009
    
	
“Restricted Period”
    	
 
    	
201
    
	
“Security Amount”
    	
 
    	
1012
    
	
“Surviving Entity”
    	
 
    	
801
    
	
“U.S. Government Obligations”
    	
 
    	
404
    

 

Section 103.  Compliance Certificates and Opinions.

 

Upon any application or request by the Company to the Trustee to take any action under any provision of this Indenture (except in connection with the issuance of the Initial Securities on the Issue Date), the Company, any Guarantor and any other obligor on the Securities shall furnish to the Trustee an Officers’ Certificate stating that all conditions precedent, if any, provided for in this Indenture (including any covenants 

 

28

 

compliance with which constitutes a condition precedent) relating to the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with, except that, in the case of any such application or request as to which the furnishing of such documents, certificates and/or opinions is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or opinion need be furnished.

 

Every certificate or Opinion of Counsel with respect to compliance with a condition or covenant provided for in this Indenture shall include:

 

(a)                                a statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein relating thereto;

 

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

 

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

 

(d)                                a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with.

 

Section 104.  Form of Documents Delivered to Trustee.

 

In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents.

 

Any certificate or opinion of an officer of the Company, any Guarantor or other obligor of the Securities may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows that the certificate or opinion or representations with respect to the matters upon which his certificate or opinion is based are erroneous.  Any such certificate or opinion may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Company, any Guarantor or other obligor of the Securities stating that the information with respect to such factual matters is in the 

 

29

 

possession of the Company, any Guarantor or other obligor of the Securities, unless such counsel knows that the certificate or opinion or representations with respect to such matters are erroneous.  Opinions of Counsel required to be delivered to the Trustee may have qualifications customary for opinions of the type required and counsel delivering such Opinions of Counsel may rely on certificates of the Company or government or other officials customary for opinions of the type required, including certificates certifying as to matters of fact, including that various financial covenants have been complied with.

 

Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument.

 

Section 105.  Acts of Holders.

 

(a)                                Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee and, where it is hereby expressly required, to the Company.  Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument or instruments.  Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture, if made in the manner provided in this Section 105.  The fact and date of the execution by any person of any such instrument or writing or the authority of the person executing the same, may also be proved in any other manner which the Trustee deems sufficient in accordance with such reasonable rules as the Trustee may determine.

 

(b)                                The ownership of Securities shall be proved by the Security Register.

 

(c)                                 Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any Security shall bind every future Holder of the same Security or the Holder of every Security issued upon the transfer thereof or in exchange therefor or in lieu thereof, in respect of anything done, suffered or omitted to be done by the Trustee, any Paying Agent or the Company or any Guarantor in reliance thereon, whether or not notation of such action is made upon such Security.

 

(d)                                If the Company shall solicit from the Holders any request, demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its option, by or pursuant to a Board Resolution, fix in advance a record date for the determination of such Holders entitled to give such request, demand, authorization,

 

30

 

direction, notice, consent, waiver or other Act, but the Company shall have no obligation to do so.  Notwithstanding Trust Indenture Act Section 316(c), any such record date shall be the record date specified in or pursuant to such Board Resolution, which shall be a date not more than 30 days prior to the first solicitation of Holders generally in connection therewith and no later than the date such solicitation is completed.

 

In the absence of any such record date fixed by the Company, regardless as to whether a solicitation of the Holders is occurring on behalf of the Company or any Holder, the Trustee may, at its option, fix in advance a record date for the determination of such Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other Act, but the Trustee shall have no obligation to do so.  Any such record date shall be a date not more than 30 days prior to the first solicitation of Holders generally in connection therewith and no later than a date such solicitation is completed.

 

If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act may be given before or after such record date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders for purposes of determining whether Holders of the requisite proportion of Securities then Outstanding have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for this purpose the Securities then Outstanding shall be computed as of such record date; provided that no such request, demand, authorization, direction, notice, consent, waiver or other Act by the Holders on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after the record date.

 

Section 106.  Notices, etc., to Trustee, the Company and any Guarantor.

 

Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with:

 

(a)                                the Trustee by any Holder or by the Company or any Guarantor or any other obligor of the Securities shall be sufficient for every purpose hereunder if in writing and mailed, first-class postage prepaid, or delivered by recognized overnight courier, to or with the Trustee at the Corporate Trust Office, Attention: U.S. Bank Corporate Trust Services, or at any other address previously furnished in writing to the Holders, the Company, any Guarantor or any other obligor of the Securities by the Trustee; or

 

(b)                                the Company or any Guarantor shall be sufficient for every purpose (except as provided in Section 501(c)) hereunder if in writing and mailed, first-class postage prepaid, or delivered by recognized overnight courier, to the Company or such 

 

31

 

Guarantor addressed to it at Sinclair Television Group, Inc., 10706 Beaver Dam Road, Hunt Valley, Maryland 21030, Attention: President, or at any other address previously furnished in writing to the Trustee by the Company;

 

Section 107.  Notice to Holders; Waiver.

 

Where this Indenture provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, or delivered by recognized overnight courier, to each Holder affected by such event, at his address as it appears in the Security Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice.  In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other Holders.  Any notice when mailed to a Holder in the aforesaid manner shall be conclusively deemed to have been received by such Holder whether or not actually received by such Holder.  Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice.  Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.

 

In case by reason of the suspension of regular mail service or by reason of any other cause, it shall be impracticable to mail notice of any event as required by any provision of this Indenture, then any method of giving such notice as shall be reasonably satisfactory to the Trustee shall be deemed to be a sufficient giving of such notice.

 

Section 108.  Conflict with Trust Indenture Act.

 

If any provision hereof limits, qualifies or conflicts with any provision of the Trust Indenture Act or another provision which is required or deemed to be included in this Indenture by any of the provisions of the Trust Indenture Act, the provision or requirement of the Trust Indenture Act shall control.  If any provision of this Indenture modifies or excludes any provision of the Trust Indenture Act that may be so modified or excluded, the latter provision shall be deemed to apply to this Indenture as so modified or to be excluded, as the case may be.

 

Section 109.  Effect of Headings and Table of Contents.

 

The Article and Section headings herein and the Table of Contents are for convenience only, are not intended to be considered a part hereof and shall not affect the construction hereof or modify or restrict any of the terms or provisions hereof.

 

32

 

Section 110.  Successors and Assigns.

 

All covenants and agreements in this Indenture by the Company and each Guarantor shall bind their respective successors and assigns, whether so expressed or not. All covenants and agreements in this Indenture by the Trustee shall bind its successors, whether so expressed or not.

 

Section 111.  Separability Clause.

 

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

 

Section 112.  Benefits of Indenture.

 

Nothing in this Indenture or in the Securities or the Guarantees, express or implied, shall give to any Person (other than the parties hereto and their successors hereunder, any Paying Agent and the Holders) any benefit or any legal or equitable right, remedy or claim under this Indenture.

 

Section 113.  Governing Law.

 

THIS INDENTURE AND THE SECURITIES AND THE GUARANTEES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF).

 

Section 114.  Legal Holidays.

 

In any case where any Interest Payment Date, Redemption Date or Stated Maturity of any Security shall not be a Business Day, then (notwithstanding any other provision of this Indenture or of the Securities) payment of interest or principal or premium, if any, need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the Interest Payment Date or Redemption Date or at the Stated Maturity and no interest shall accrue with respect to such payment for the period from and after such Interest Payment Date, Redemption Date or Stated Maturity, as the case may be, to the next succeeding Business Day.

 

Section 115.  Schedules and Exhibits.

 

All schedules and exhibits attached hereto are by this reference made a part hereof with the same effect as if herein set forth in full.

 

33

 

Section 116.  Counterparts.

 

This Indenture may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page to this Indenture by facsimile, .pdf transmission, email or other electronic means shall be effective as delivery of a manually executed counterpart of this Indenture.

 

ARTICLE TWO

 

SECURITY FORMS

 

Section 201.  Forms Generally.

 

The Securities and the Trustee’s certificate of authentication shall be in substantially the forms set forth in this Article Two, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with the rules of any securities exchange, any organizational document or governing instrument or applicable law or as may, consistently herewith, be determined by the officers executing such Securities, as evidenced by their execution of the Securities.  Any portion of the text of any Security may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Security.

 

The definitive Securities shall be printed, lithographed or engraved or produced by any combination of these methods or may be produced in any other manner permitted by the rules of any securities exchange on which the Securities may be listed, all as determined by the officers executing such Securities, as evidenced by their execution of such Securities.

 

Series A Securities offered and sold in reliance on Rule 144A shall be issued initially in the form of one or more Rule 144A Global Securities, substantially in the form set forth in Section 202, deposited upon issuance with the Trustee, as custodian for the Depositary, registered in the name of the Depositary or its nominee, in each case for credit by the Depositary to an account of a direct or indirect participant of the Depositary, duly executed by the Company and authenticated by the Trustee as hereinafter provided.  The aggregate principal amount of the Rule 144A Global Securities may from time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian for the Depositary or its nominee, as hereinafter provided.

 

34

 

Series A Securities offered and sold in reliance on Regulation S shall be issued in the form of one or more Regulation S Global Securities, substantially in the form set forth in Section 202, deposited upon issuance with the Trustee, as custodian for the Depositary, registered in the name of the Depositary or its nominee, in each case for credit by the Depositary to an account of a direct or indirect participant of the Depositary, duly executed by the Company and authenticated by the Trustee as hereinafter provided; provided, however, that upon such deposit through and including the 40th day after the later of the commencement of the offering of Securities and the original issue date of the Securities (such period through and including such 40th day, the “Restricted Period”), all such Securities shall be credited to or through accounts maintained at the Depositary by or on behalf of Euroclear or Clearstream unless exchanged for interests in the Rule 144A Global Securities in accordance with the transfer and certification requirements described below.  The aggregate principal amount of the Regulation S Global Securities may from time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian for the Depositary or its nominee, as hereinafter provided.

 

Series A Securities resold to Institutional Accredited Investors in the United States shall be issued initially in the form of one or more Institutional Accredited Investor Global Securities, substantially in the form set forth in Section 202, deposited upon issuance with the Trustee, as custodian for the Depositary, registered in the name of the Depositary or its nominee, in each case for credit by the Depositary to an account of a direct or indirect participant of the Depositary, duly executed by the Company and authenticated by the Trustee as hereinafter provided.  The aggregate principal amount of the Institutional Accredited Investor Global Securities may from time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian for the Depositary or its nominee, as hereinafter provided.

 

Series B Securities exchanged for Series A Securities shall be issued initially in the form of one or more Series B Global Securities, substantially in the form set forth in Section 202, deposited upon issuance with the Trustee, as custodian for the Depositary, registered in the name of the Depositary or its nominee, in each case for credit to an account of a direct or indirect participant of the Depositary, duly executed by the Company and authenticated by the Trustee as hereinafter provided.  The aggregate principal amount of the Series B Global Securities may from time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian for the Depositary or its nominee, as hereinafter provided.

 

The terms and provisions contained in the form of Securities set forth in Sections 202 through 205 shall constitute, and are expressly made, a part of this Indenture and, to the extent applicable, the Company, the Guarantors and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby.

 

35

 

Section 202.  Form of Face of Security.

 

(a)                                The form of the face of any Series A Security authenticated and delivered hereunder shall be substantially as follows:

 

Unless and until (i) a Series A Security is sold under an effective Registration Statement or (ii) a Series A Security is exchanged for a Series B Security in connection with an effective Registration Statement, in each case pursuant to the Registration Rights Agreement, then each Series A Security shall bear the legend set forth below (the “Restricted Securities Legend”) on the face thereof:

 

SINCLAIR TELEVISION GROUP, INC.

 

 

5.625% SENIOR NOTE DUE 2024, SERIES A

 

[If the Security is a Restricted Security, insert — THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.  NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.  THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS ONE YEAR (IN THE CASE OF NOTES SOLD PURSUANT TO RULE 144A) OR 40 DAYS (IN THE CASE OF NOTES SOLD PURSUANT TO REGULATION S) AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(A)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN 

 

36

 

CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM.  THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

 

	
No.
    	
$
    

 

SINCLAIR TELEVISION GROUP, INC., a Maryland corporation (herein called the “Company,” which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to               or registered assigns, the principal sum of                 United States dollars ($                ), or such other amount as shall be set forth in the Schedule of Increases or Decreases in Global Note attached hereto, on August 1, 2024, at the office or agency of the Company referred to below, and to pay interest thereon from July 23, 2014, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semiannually on February 1 and August 1 in each year, commencing February 1, 2015 at the rate of 5.625% per annum, plus Additional Interest, if any, in United States dollars, until the principal hereof is paid or duly provided for.

 

The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date shall, as provided in such Indenture, be paid to the Person in whose name this Series A Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the January 15 or July 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date.  Any such interest not so punctually paid, or duly provided for, and interest on such defaulted interest at the interest rate borne by the Series A Securities, to the extent lawful, shall forthwith cease to be payable to the Holder on such Regular Record Date, and may be paid to the Person in whose name this Series A Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of Series A Securities not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Series A Securities may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.

 

The Holder of this Series A Security is entitled to the benefits of the Registration Rights Agreement, dated as of July 23, 2014, among the Company, the Guarantors and the Initial Purchasers, pursuant to which, subject to the terms and conditions thereof, the Company is obligated, among other things, to consummate the 

 

37

 

Exchange Offer pursuant to which the Holder of this Series A Security shall have the right to exchange this Series A Security for 5.625% Senior Notes due 2024, Series B (herein called the “Series B Securities”) in like principal amount as provided therein.  The Series A Securities and the Series B Securities are together referred to as the “Securities.”  The Series A Securities rank pari passu in right of payment with the Series B Securities.

 

If a default under Section 2(d) of the Registration Rights Agreement occurs, additional interest (“Additional Interest”) shall accrue on this Series A Security at a rate of 0.25% per annum (increasing by an additional 0.25% per annum after each consecutive 90-day period that occurs after the date on which such default occurs up to a maximum additional interest rate of 1.00% per annum) from and including the date on which any such default shall occur to but excluding the date on which all such defaults have been cured.  Any Additional Interest due pursuant to the preceding sentence will be payable in cash on the Interest Payment Date related to the Series A Securities.  The Additional Interest shall be determined by multiplying the applicable Additional Interest rate by the principal amount of the Series A Securities, multiplied by a fraction the numerator of which is the number of days such Additional Interest rate was applicable during such period, and the denominator of which is 360.

 

Payment of the principal of, premium, if any, and interest on this Series A Security shall be made at the office or agency of the Company maintained for that purpose, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that payment of interest may be made at the option of the Company by check mailed to the address of the Person entitled thereto as such address shall appear on the Security Register.  If any of the Series A Securities are held by the Depositary, payments of interest to the Depositary may be made by wire transfer to the Depositary.  Interest shall be computed on the basis of a 360-day year of twelve 30-day months.

 

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

 

This Series A Security is entitled to the benefits of Guarantees by each of the Guarantors of the punctual payment when due of the Indenture Obligations made in favor of the Trustee for the benefit of the Holders.  Reference is hereby made to Article Thirteen of the Indenture for a statement of the respective rights, limitations of rights, duties and obligations under the Guarantees of each of the Guarantors.

 

All references in this Series A Security or in the Indenture to accrued and unpaid interest shall be deemed to include, to the extent applicable, a reference to Additional Interest.

 

38

 

Unless the certificate of authentication hereon has been duly executed by the Trustee referred to on the reverse hereof or by the authenticating agent appointed as provided in the Indenture by manual signature, this Series A Security shall not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose.

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by the manual or facsimile signature of its authorized officers.

 

 

	
Dated:
    	
 
    	
SINCLAIR TELEVISION GROUP, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Secretary
    	
 
    	
 
    	
 
    

 

(b)                                The form of the face of any Series B Security authenticated and delivered hereunder shall be substantially as follows:

 

SINCLAIR TELEVISION GROUP, INC.

 

 

5.625% SENIOR NOTE DUE 2024, SERIES B

 

	
No.
    	
$                 
    

 

SINCLAIR TELEVISION GROUP, INC., a Maryland corporation (herein called the “Company,” which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to               or registered assigns, the principal sum of                 United States dollars ($                  ), or such other amount as shall be set forth in the Schedule of Increases or Decreases in Global Note attached hereto, on August 1, 2024, at the office or agency of the Company referred to below, and to pay interest thereon from July 23, 2014, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semiannually on February 1 and August 1 in each year, commencing February 1, 2015, at the rate of 5.625% per annum, plus Additional Interest, if any, in United States dollars, until the principal hereof is paid or duly provided for; provided that to the extent interest has not been paid or duly provided for with respect to the Series A Security exchanged for this 

 

39

 

Series B Security, interest on this Series B Security shall accrue from the most recent Interest Payment Date to which interest on the Series A Security which was exchanged for this Series B Security has been paid or duly provided for.

 

The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date shall, as provided in such Indenture, be paid to the Person in whose name this Series B Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the January 15 or July 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date.  Any such interest not so punctually paid, or duly provided for, and interest on such defaulted interest at the interest rate borne by the Series B Securities, to the extent lawful, shall forthwith cease to be payable to the Holder on such Regular Record Date, and may be paid to the Person in whose name this Series B Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of Series B Securities not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Series B Securities may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.

 

This Series B Security was issued pursuant to the Exchange Offer pursuant to which the 5.625% Senior Notes due 2024, Series A (herein called the “Series A Securities”) in like principal amount were exchanged for the Series B Securities.  The Series B Securities rank pari  passu in right of payment with the Series A Securities.

 

In addition, pursuant to the Registration Rights Agreement, for any period in which the Series A Security exchanged for this Series B Security was outstanding, if a default under Section 2(d) of the Registration Rights Agreement occurs, additional interest shall accrue on the Series A Security at a rate of 0.25% per annum (increasing by an additional 0.25% per annum after each consecutive 90-day period that occurs after the date on which such default occurs up to a maximum additional interest rate of 1.00% per annum) from and including the date on which any such default shall occur to but excluding the date on which all such defaults have been cured.  Any Additional Interest due pursuant to the preceding sentence shall be payable in cash on the Interest Payment Date related to the Series A Securities.  The Additional Interest shall be determined by multiplying the applicable Additional Interest rate by the principal amount of the Series A Securities, multiplied by a fraction the numerator of which is the number of days such Additional Interest rate was applicable during such period, and the denominator of which is 360.

 

Payment of the principal of, premium, if any, and interest on this Series B Security shall be made at the office or agency of the Company maintained for that

 

40

 

purpose, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that payment of interest may be made at the option of the Company by check mailed to the address of the Person entitled thereto as such address shall appear on the Security Register.  If any of the Series B Securities are held by the Depositary, payments of interest to the Depositary may be made by wire transfer to the Depositary.  Interest shall be computed on the basis of a 360-day year of twelve 30-day months.

 

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

 

This Series B Security is entitled to the benefits of Guarantees by each of the Guarantors of the punctual payment when due of the Indenture Obligations made in favor of the Trustee for the benefit of the Holders.  Reference is hereby made to Article Thirteen of the Indenture for a statement of the respective rights, limitations of rights, duties and obligations under the Guarantees of each of the Guarantors.

 

All references in this Series B Security or in the Indenture to accrued and unpaid interest shall be deemed to include, to the extent applicable, a reference to Additional Interest.

 

Unless the certificate of authentication hereon has been duly executed by the Trustee referred to on the reverse hereof or by the authenticating agent appointed as provided in the Indenture by manual signature, this Series B Security shall not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose.

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by the manual or facsimile signature of its authorized officers.

 

 

	
Dated:
    	
 
    	
SINCLAIR TELEVISION GROUP, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Secretary
    	
 
    	
 
    	
 
    

 

41

 

Section 203.  Form of Reverse of Securities.

 

(a)                                The form of the reverse of the Series A Securities shall be substantially as follows:

 

SINCLAIR TELEVISION GROUP, INC.

 

 

5.625% SENIOR NOTE DUE 2024, SERIES A

 

This Security is one of a duly authorized issue of Securities of the Company designated as its 5.625% Senior Notes due 2024, Series A (herein called the “Securities”), initially limited (except as otherwise provided in the Indenture referred to below) in aggregate principal amount to $550,000,000, which may be issued under an indenture (herein called the “Indenture”), dated as of July 23, 2014, among the Company, the Guarantors and U.S. Bank National Association, as trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties, obligations and immunities thereunder of the Company, the Guarantors, the Trustee and the Holders of the Securities, and of the terms upon which the Securities and the Guarantees are, and are to be, authenticated and delivered. To the extent any provision of this Security conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.

 

The Company may, from time to time, without notice to or the consent of the Holders of the Securities, create and issue further Securities (“Additional Securities”) under the Indenture ranking equally with the Securities in all respects, subject to the limitations described in Section 1008 of the Indenture.  Such Additional Securities shall be consolidated and form a single series with the Securities, vote together with the Securities and have the same terms as to status, redemption or otherwise as the Securities.

 

The Indenture contains provisions for defeasance at any time of (a) the entire Indebtedness on the Securities and (b) certain restrictive covenants and related Defaults and Events of Default, in each case upon compliance or noncompliance with certain conditions set forth therein.

 

The Securities are subject to redemption at any time on or after August 1, 2019, at the option of the Company, in whole or in part, on not less than 15 nor more than 60 days’ prior notice by first-class mail in amounts of $2,000 or an integral multiple of $1,000 in excess thereof at the following redemption prices (expressed as a percentage of the principal amount), if redeemed during the 12-month period beginning August 1 of the years indicated below:

 

42

 

	
Year
    	
 
    	
Redemption
   Price
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
2019 
    	
 
    	
102.813
    	
%
    
	
2020 
    	
 
    	
101.875
    	
%
    
	
2021 
    	
 
    	
100.938
    	
%
    
	
2022 and thereafter 
    	
 
    	
100.000
    	
%
    

 

in each case together with accrued and unpaid interest, if any, to the Redemption Date (subject to the right of Holders of record on relevant record dates to receive interest due on an interest payment date).  If less than all of the Securities are to be redeemed, the Trustee shall select the Securities or portions thereof to be redeemed pro rata, by lot or by any other method the Trustee shall deem fair and reasonable, subject to the requirements of the Depositary.

 

Notices of redemption may be given prior to the completion of any event or transaction related to such redemption, and any redemption or notice may, at the Company’s discretion, be subject to one or more conditions precedent, including, but not limited to, completion of an Equity Offering.  In addition, if such redemption or notice is subject to satisfaction of one or more conditions precedent, such notice shall state that, in the Company’s discretion, the redemption date may be delayed until such time as any or all such conditions precedent shall be satisfied, or such redemption may not occur and such notice may be rescinded in the event that any or all such conditions precedent shall not have been satisfied by the redemption date, or by the redemption date so delayed.

 

In addition, at any time on or prior to August 1, 2017, the Company may redeem up to 35% of the principal amount of Securities issued under the Indenture with the net proceeds of an Equity Offering of the Company or Parent at 105.625% of the aggregate principal amount, together with accrued and unpaid interest, if any, to the Redemption Date (subject to the right of Holders of record on relevant record dates to receive interest due on an interest payment date); provided that (1) at least 65% of the principal amount of Securities issued under the Indenture remains outstanding after each such redemption and (2) the redemption occurs within 90 days after the closing of such Equity Offering.

 

At any time prior to August 1, 2019, upon not less than 15 nor more than 60 days’ prior notice, the Company may redeem the Securities, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus the Applicable Premium plus accrued and unpaid interest, if any, to the Redemption Date (subject to the right of Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date).

 

43

 

The Trustee shall select the Securities or portions thereof to be redeemed pro rata, by lot or by any other method the Trustee shall deem fair and reasonable, subject to the requirements of the Depositary.

 

Upon the occurrence of a Change of Control, each Holder may require the Company to repurchase all or a portion of such Holder’s Securities in whole or in part in amounts of $2,000 and integral multiples of $1,000 thereof, at a purchase price in cash in an amount equal to 101% of the principal amount of such Securities, plus accrued and unpaid interest, if any, to the date of purchase.

 

Under certain circumstances, in the event the Net Cash Proceeds received by the Company or a Restricted Subsidiary from any Asset Sale, which proceeds are not used to permanently repay secured Indebtedness that is secured by a Permitted Lien, invested in properties or assets that (as determined by the Board of Directors of Parent or the Company) replace the properties or assets that were the subject of the Asset Sale, or invested in properties or assets that will be used in the businesses of the Company or the Restricted Subsidiaries existing on the Issue Date or reasonably related thereto, exceed $50,000,000 the Company shall be required to apply such proceeds to the repayment of the Securities and, at the option of the Company, certain Indebtedness ranking pari passu to the Securities.

 

In the case of any redemption of Securities, interest installments whose Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such Securities of record as of the close of business on the relevant record date referred to on the face hereof.  Securities (or portions thereof) for whose redemption and payment provision is made in accordance with the Indenture shall cease to bear interest from and after the date of redemption.

 

In the event of redemption of this Security in part only, a new Security or Securities for the unredeemed portion hereof shall be issued in the name of the Holder hereof upon the cancellation hereof.

 

If an Event of Default shall occur and be continuing, the principal amount of all the Securities may be declared due and payable in the manner and with the effect provided in the Indenture.

 

If this Security is in certificated form, then as provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable on the Security Register of the Company, upon surrender of this Security for registration of transfer at the office or agency of the Company maintained for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or its attorney duly authorized in writing, and thereupon one or more new Securities, of 

 

44

 

authorized denominations and for the same aggregate principal amount, shall be issued to the designated transferee or transferees.

 

If this Security is a Global Security, except as described below, it is not exchangeable for a Security or Securities in certificated form.  The Securities shall be delivered in certificated form if (i) the Depositary ceases to be registered as a clearing agency under the Exchange Act or is not willing or no longer able to provide securities depository services with respect to the Securities and a successor depositary is not appointed by the Company within 90 days, (ii) the Company, in its sole discretion, so determines and notifies the Trustee in writing that it elects to cause the issuance of the Securities in certificated form or (iii) there shall have occurred and be continuing an Event of Default or an event which, with the giving of notice or lapse of time or both, would constitute an Event of Default with respect to the Securities represented by such Global Security. Upon any such issuance, the Trustee is required to register such certificated Security in the name of, and cause the same to be delivered to, such Person or Persons (or the nominee of any thereof).  All such certificated Securities would be required to include the Restricted Securities Legend, except as otherwise provided in the Indenture.

 

Upon the written request of a Holder of a Security, the Company shall promptly furnish or cause to be furnished Rule 144A Information to such Holder or to a prospective purchaser of such Security who such Holder informs the Company is reasonably believed to be a QIB, as the case may be, in order to permit compliance by such Holder with Rule 144A under the Securities Act.

 

The Indenture permits, with certain exceptions (including certain amendments permitted without the consent of any Holders) as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the Guarantors and the rights of the Holders under the Indenture and the Guarantees at any time by the Company, the Guarantors and the Trustee with the consent of the Holders of a specified percentage in aggregate principal amount of the Securities at the time Outstanding.  The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Securities at the time Outstanding, on behalf of the Holders of all the Securities, to waive compliance by the Company and the Guarantors with certain provisions of the Indenture and the Guarantees and certain past Defaults under the Indenture and the Guarantees and their consequences.  Any such consent or waiver by or on behalf of the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent or waiver is made upon this Security.

 

No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, any Guarantor or any other 

 

45

 

obligor upon the Securities (in the event such other obligor is obligated to make payments in respect of the Securities), which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Security at the times, place, and rate, and in the coin or currency, herein prescribed.

 

The Securities are issuable only in fully registered form without coupons in denominations of $2,000 and any integral multiple of $1,000 in excess thereof.  As provided in the Indenture and subject to certain limitations therein set forth, the Securities are exchangeable for a like aggregate principal amount of Securities of a different authorized denomination, as requested by the Holder surrendering the same.

 

No service charge shall be made for any registration of transfer or exchange or redemption of Securities, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

Prior to and at the time of due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes (subject to provisions with respect to record dates for the payment of interest), whether or not this Security is overdue, and neither the Company, the Trustee nor any agent shall be affected by notice to the contrary.

 

THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF).

 

All terms used in this Security which are defined in the Indenture and not otherwise defined herein shall have the meanings assigned to them in the Indenture.

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you wish to have this Security purchased by the Company pursuant to Section 1012 or Section 1015, as applicable, of the Indenture, check the Box:  [      ].

 

If you wish to have a portion of this Security purchased by the Company pursuant to Section 1012 or Section 1015 as applicable, of the Indenture, state the amount (in original principal amount):

 

$                               .

 

46

 

	
Date:
    	
 
    	
 
    	
Your Signature:
    	
 
    
	
(Sign exactly as your name   appears on the other side of this Security)
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Signature Guarantee:
    	
 
    	
 
    	
 
    	
 
    
						

 

[Signature must be guaranteed by an eligible Guarantor Institution (banks, stock brokers, savings and loan associations and credit unions) with membership in an approved guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15]

 

(b)                                The form of the reverse of the Series B Securities shall be substantially as follows:

 

SINCLAIR TELEVISION GROUP, INC.

 

 

5.625% SENIOR NOTE DUE 2024, SERIES B

 

This Security is one of a duly authorized issue of Securities of the Company designated as its 5.625% Senior Notes due 2024, Series B (herein called the “Securities”), initially limited (except as otherwise provided in the Indenture referred to below) in aggregate principal amount to $550,000,000, which may be issued under an indenture (herein called the “Indenture”), dated as of July 23, 2014, among the Company, the Guarantors and U.S. Bank National Association, as trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties, obligations and immunities thereunder of the Company, the Guarantors, the Trustee and the Holders of the Securities, and of the terms upon which the Securities and the Guarantees are, and are to be, authenticated and delivered. To the extent any provision of this Security conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.

 

The Company may, from time to time, without notice to or the consent of the Holders of the Securities, create and issue further Securities (“Additional Securities”) under the Indenture ranking equally with the Securities in all respects, subject to the limitations described in Section 1008 of the Indenture.  Such Additional Securities shall be consolidated and form a single series with the Securities, vote together with the Securities and have the same terms as to status, redemption or otherwise as the Securities.

 

47

 

The Indenture contains provisions for defeasance at any time of (a) the entire Indebtedness on the Securities and (b) certain restrictive covenants and related Defaults and Events of Default, in each case upon compliance or noncompliance with certain conditions set forth therein.

 

The Securities are subject to redemption at any time on or after August 1, 2019, at the option of the Company, in whole or in part, on not less than 15 nor more than 60 days’ prior notice by first-class mail in amounts of $2,000 or an integral multiple of $1,000 in excess thereof at the following redemption prices (expressed as a percentage of the principal amount), if redeemed during the 12-month period beginning August 1 of the years indicated below:

 

	
Year
    	
 
    	
Redemption
   Price
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
2019
    	
 
    	
102.813
    	
%
    
	
2020
    	
 
    	
101.875
    	
%
    
	
2021
    	
 
    	
100.938
    	
%
    
	
2022 and thereafter
    	
 
    	
100.000
    	
%
    

 

in each case together with accrued and unpaid interest, if any, to the Redemption Date (subject to the right of Holders of record on relevant record dates to receive interest due on an interest payment date).  If less than all of the Securities are to be redeemed, the Trustee shall select the Securities or portions thereof to be redeemed pro rata, by lot or by any other method the Trustee shall deem fair and reasonable, subject to the requirements of the Depositary.

 

Notices of redemption may be given prior to the completion of any event or transaction related to such redemption, and any redemption or notice may, at the Company’s discretion, be subject to one or more conditions precedent, including, but not limited to, completion of an Equity Offering.  In addition, if such redemption or notice is subject to satisfaction of one or more conditions precedent, such notice shall state that, in the Company’s discretion, the redemption date may be delayed until such time as any or all such conditions precedent shall be satisfied, or such redemption may not occur and such notice may be rescinded in the event that any or all such conditions precedent shall not have been satisfied by the redemption date, or by the redemption date so delayed.

 

In addition, at any time on or prior to August 1, 2017, the Company may redeem up to 35% of the principal amount of Securities issued under the Indenture with the net proceeds of an Equity Offering of the Company or Parent at 105.625% of the aggregate principal amount, together with accrued and unpaid interest, if any, to the Redemption Date (subject to the right of Holders of record on relevant record dates to receive interest due on an interest payment date); provided that (1) at least 65% of the 

 

48

 

principal amount of Securities issued under the Indenture remains outstanding after each such redemption and (2) the redemption occurs within 90 days after the closing of such Equity Offering.

 

At any time prior to August 1, 2019, upon not less than 15 nor more than 60 days’ prior notice, the Company may redeem the Securities, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus the Applicable Premium plus accrued and unpaid interest, if any, to the Redemption Date (subject to the right of Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date).

 

The Trustee shall select the Securities or portions thereof to be redeemed pro rata, by lot or by any other method the Trustee shall deem fair and reasonable, subject to the requirements of the Depositary.

 

Upon the occurrence of a Change of Control, each Holder may require the Company to repurchase all or a portion of such Holder’s Securities in whole or in part in amounts of $2,000 and integral multiples of $1,000 thereof, at a purchase price in cash in an amount equal to 101% of the principal amount of such Securities, plus accrued and unpaid interest, if any, to the date of purchase.

 

Under certain circumstances, in the event the Net Cash Proceeds received by the Company or a Restricted Subsidiary from any Asset Sale, which proceeds are not used to permanently repay secured Indebtedness that is secured by a Permitted Lien, invested in properties or assets that (as determined by the Board of Directors of Parent or the Company) replace the properties or assets that were the subject of the Asset Sale, or invested in properties or assets that will be used in the businesses of the Company or the Restricted Subsidiaries existing on the Issue Date or reasonably related thereto, exceed $50,000,000 the Company shall be required to apply such proceeds to the repayment of the Securities and, at the option of the Company, certain Indebtedness ranking pari passu to the Securities.

 

In the case of any redemption of Securities, interest installments whose Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such Securities of record as of the close of business on the relevant record date referred to on the face hereof.  Securities (or portions thereof) for whose redemption and payment provision is made in accordance with the Indenture shall cease to bear interest from and after the date of redemption.

 

In the event of redemption of this Security in part only, a new Security or Securities for the unredeemed portion hereof shall be issued in the name of the Holder hereof upon the cancellation hereof.

 

49

 

If an Event of Default shall occur and be continuing, the principal amount of all the Securities may be declared due and payable in the manner and with the effect provided in the Indenture.

 

If this Security is in certificated form, then as provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable on the Security Register of the Company, upon surrender of this Security for registration of transfer at the office or agency of the Company maintained for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or its attorney duly authorized in writing, and thereupon one or more new Securities, of authorized denominations and for the same aggregate principal amount, shall be issued to the designated transferee or transferees.

 

If this Security is a Global Security, except as described below, it is not exchangeable for a Security or Securities in certificated form.  The Securities shall be delivered in certificated form if (i) the Depositary ceases to be registered as a clearing agency under the Exchange Act or is not willing or no longer able to provide securities depository services with respect to the Securities and a successor depositary is not appointed by the Company within 90 days, (ii) the Company, in its sole discretion, so determines and notifies the Trustee in writing that it elects to cause the issuance of the Securities in certificated form or (iii) there shall have occurred and be continuing an Event of Default or an event which, with the giving of notice or lapse of time or both, would constitute an Event of Default with respect to the Securities represented by such Global Security. Upon any such issuance, the Trustee is required to register such certificated Security in the name of, and cause the same to be delivered to, such Person or Persons (or the nominee of any thereof).  All such certificated Securities would be required to include the Restricted Securities Legend, except as otherwise provided in the Indenture.

 

The Indenture permits, with certain exceptions (including certain amendments permitted without the consent of any Holders) as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the Guarantors and the rights of the Holders under the Indenture and the Guarantees at any time by the Company, the Guarantors and the Trustee with the consent of the Holders of a specified percentage in aggregate principal amount of the Securities at the time Outstanding.  The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Securities at the time Outstanding, on behalf of the Holders of all the Securities, to waive compliance by the Company and the Guarantors with certain provisions of the Indenture and the Guarantees and certain past Defaults under the Indenture and the Guarantees and their consequences.  Any such consent or waiver by or on behalf of the Holder of this Security shall be conclusive and binding upon

 

50

 

such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent or waiver is made upon this Security.

 

No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, any Guarantor or any other obligor upon the Securities (in the event such other obligor is obligated to make payments in respect of the Securities), which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Security at the times, place, and rate, and in the coin or currency, herein prescribed.

 

The Securities are issuable only in fully registered form without coupons in denominations of $2,000 and any integral multiple of $1,000 in excess thereof.  As provided in the Indenture and subject to certain limitations therein set forth, the Securities are exchangeable for a like aggregate principal amount of Securities of a different authorized denomination, as requested by the Holder surrendering the same.

 

No service charge shall be made for any registration of transfer or exchange or redemption of Securities, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

Prior to and at the time of due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes (subject to provisions with respect to record dates for the payment of interest), whether or not this Security is overdue, and neither the Company, the Trustee nor any agent shall be affected by notice to the contrary.

 

THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF).

 

All terms used in this Security which are defined in the Indenture and not otherwise defined herein shall have the meanings assigned to them in the Indenture.

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you wish to have this Security purchased by the Company pursuant to Section 1012 or Section 1015, as applicable, of the Indenture, check the Box:  [      ].

 

51

 

If you wish to have a portion of this Security purchased by the Company pursuant to Section 1012 or Section 1015 as applicable, of the Indenture, state the amount (in original principal amount):

 

$                               .

 

	
Date:
    	
 
    	
 
    	
Your Signature:
    	
 
    

 

(Sign exactly as your name appears on the other side of this Security)

 

	
Signature Guarantee:
    	
 
    	
 
    

 

[Signature must be guaranteed by an eligible Guarantor Institution (banks, stock brokers, savings and loan associations and credit unions) with membership in an approved guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15]

 

Section 204.  Additional Provisions Required in Global Security.

 

Any Global Security issued hereunder shall, in addition to the provisions contained in Sections 202 and 203, bear a legend in substantially the following form:

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY.  THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

If The Depository Trust Company is acting as the Depositary, insert — UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT AND ANY SUCH CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC

 

52

 

(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

Section 205.  Form of Trustee’s Certificate of Authentication.

 

The Trustee’s certificate of authentication shall be included on the Securities and shall be substantially in the form as follows:

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION.

 

This is one of the Securities referred to in the within-mentioned Indenture.

 

	
 
    	
U.S. BANK NATIONAL ASSOCIATION,
    
	
 
    	
As Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Signatory
    

 

Section 206.  Form of Guarantee of Each of the Guarantors.

 

The form of Guarantee shall be set forth on the Securities substantially as follows:

 

GUARANTEES

 

For value received, each of the undersigned hereby fully, unconditionally and irrevocably guarantees, as primary obligor and not merely as a surety, jointly and severally, to the each Holder of this Security and the Trustee the payment of principal of, premium, if any, and interest on this Security in the amounts and at the time when due and interest on the overdue principal and interest, if any, of this Security, if lawful, and the payment or performance of all other obligations and liabilities of the Company under the Indenture or the Securities to the Holder of this Security and the Trustee, all in accordance with and subject to the terms and limitations of this Security and Article Thirteen of the Indenture.  Reference is hereby made to the Indenture for the precise terms of the Guarantee.

 

	
 
    	
GUARANTORS:
    
	
 
    	
 
    
	
 
    	
SINCLAIR BROADCAST GROUP, INC.
    

 

53

 

	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: David Amy
    
	
 
    	
 
    	
Title: Executive Vice President/Chief Operating Officer
    
	
 
    	
 
    
	
 
    	
SINCLAIR   MEDIA I, INC.
    
	
 
    	
WSMH, INC.
    
	
 
    	
WGME, INC.
    
	
 
    	
SINCLAIR   MEDIA III, INC.
    
	
 
    	
WYZZ   LICENSEE, INC.
    
	
 
    	
WSYX   LICENSEE, INC.
    
	
 
    	
SINCLAIR   ACQUISITION VII, INC.
    
	
 
    	
SINCLAIR   ACQUISITION VIII, INC.
    
	
 
    	
SINCLAIR   ACQUISITION IX, INC.
    
	
 
    	
SINCLAIR   ACQUISITION X, INC.
    
	
 
    	
MONTECITO   BROADCASTING CORPORATION
    
	
 
    	
CHANNEL   33, INC.
    
	
 
    	
NEW   YORK TELEVISION, INC.
    
	
 
    	
BIRMINGHAM   (WABM-TV) LICENSEE, INC.
    
	
 
    	
RALEIGH   (WRDC-TV) LICENSEE, INC.
    
	
 
    	
SAN   ANTONIO (KRRT-TV) LICENSEE, INC.
    
	
 
    	
WVTV   LICENSEE, INC.
    
	
 
    	
CHESAPEAKE   TELEVISION, INC.
    
	
 
    	
SINCLAIR   TELEVISION OF SEATTLE, INC.
    
	
 
    	
FISHER   PROPERTIES, INC.
    
	
 
    	
SINCLAIR MEDIA SERVICES COMPANY
    
	
 
    	
SINCLAIR TELEVISION MEDIA, INC.
    
	
 
    	
FISHER MILLS, INC.
    
	
 
    	
SINCLAIR TELEVISION OF WASHINGTON, INC.
    
	
 
    	
SINCLAIR   PROPERTIES, LLC
    
	
 
    	
 
    
	
 
    	
KBSI   LICENSEE L.P.
    
	
 
    	
WMMP   LICENSEE L.P.
    
	
 
    	
By:
    	
Sinclair   Properties, LLC, General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
WKEF   LICENSEE L.P.
    
	
 
    	
By:
    	
Sinclair   Communications, LLC, General Partner
    
	
 
    	
By:
    	
Sinclair   Television Group, Inc., Sole Member of Sinclair Communications, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
WGME   LICENSEE, LLC
    
	
 
    	
By:
    	
WGME, Inc.,   Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
WICD   LICENSEE, LLC
    
	
 
    	
WICS   LICENSEE, LLC
    

 

54

 

	
 
    	
SINCLAIR   TELEVISION OF ILLINOIS, LLC
    
	
 
    	
By:
    	
Illinois   Television, LLC, Member
    
	
 
    	
By:
    	
Sinclair   Communications LLC, Sole Member of Illinois Television, LLC
    
	
 
    	
By:
    	
Sinclair   Television Group, Inc., Sole Member of Sinclair Communications, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
WSMH   LICENSEE, LLC
    
	
 
    	
By:
    	
WSMH, Inc.,   Member
    
	
 
    	
 
    	
 
    
	
 
    	
WPGH   LICENSEE, LLC
    
	
 
    	
KDNL   LICENSEE, LLC
    
	
 
    	
WCWB   LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair   Media I, Inc., Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
KLGT   LICENSEE, LLC
    
	
 
    	
By:
    	
WUCW,   LLC, Sole Member
    
	
 
    	
By:
    	
Sinclair   Communications, LLC, Sole Member
    
	
 
    	
By:
    	
Sinclair   Television Group, Inc., Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
WCGV   LICENSEE, LLC
    
	
 
    	
By:
    	
Milwaukee   Television, LLC, Sole Member
    
	
 
    	
By:
    	
Sinclair   Communications, LLC Sole Member of Milwaukee Television, LLC
    
	
 
    	
By:
    	
Sinclair   Television Group, Inc., Sole Member of
    
	
 
    	
 
    	
Sinclair   Communications, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
KOKH   LICENSEE, LLC
    
	
 
    	
By:
    	
KOKH,   LLC, Sole Member of KOKH Licensee, LLC
    
	
 
    	
By:
    	
Sinclair   Communications, LLC, Sole Member of KOKH, LLC
    
	
 
    	
By:
    	
Sinclair   Television Group, Inc., Sole Member of
    
	
 
    	
 
    	
Sinclair   Communications, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
WCHS   LICENSEE, LLC
    
	
 
    	
WVAH   LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair   Media III, Inc., Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
CHESAPEAKE   TELEVISION LICENSEE, LLC
    
	
 
    	
KABB   LICENSEE, LLC
    
	
 
    	
WLOS   LICENSEE, LLC
    
	
 
    	
SAN   ANTONIO TELEVISION, LLC
    
	
 
    	
KEYE   LICENSEE, LLC
    

 

55

 

	
 
    	
KUTV   LICENSEE, LLC
    
	
 
    	
WTVX   LICENSEE, LLC
    
	
 
    	
WPEC LICENSEE, LLC
    
	
 
    	
WWMT LICENSEE, LLC
    
	
 
    	
WRGB LICENSEE, LLC
    
	
 
    	
WCWN LICENSEE, LLC
    
	
 
    	
KTVL LICENSEE, LLC
    
	
 
    	
KFDM LICENSEE, LLC
    
	
 
    	
WUCW, LLC
    
	
 
    	
WWHO LICENSEE, LLC
    
	
 
    	
WFGX LICENSEE, LLC
    
	
 
    	
KUPN LICENSEE, LLC
    
	
 
    	
WEAR LICENSEE, LLC
    
	
 
    	
ILLINOIS TELEVISION, LLC
    
	
 
    	
KGAN LICENSEE, LLC
    
	
 
    	
KFXA LICENSEE, LLC
    
	
 
    	
WUPN LICENSEE, LLC
    
	
 
    	
WUTV LICENSEE, LLC
    
	
 
    	
WXLV LICENSEE, LLC
    
	
 
    	
WMSN LICENSEE, LLC
    
	
 
    	
WUHF LICENSEE, LLC
    
	
 
    	
MILWAUKEE TELEVISION, LLC
    
	
 
    	
WTAT LICENSEE, LLC
    
	
 
    	
WRLH LICENSEE, LLC
    
	
 
    	
WRGT LICENSEE, LLC
    
	
 
    	
KSAS LICENSEE, LLC
    
	
 
    	
WHP LICENSEE, LLC
    
	
 
    	
WKRC LICENSEE, LLC
    
	
 
    	
WOAI LICENSEE, LLC
    
	
 
    	
WTTA LICENSEE, LLC
    
	
 
    	
KFOX LICENSEE, LLC
    
	
 
    	
KRXI LICENSEE, LLC
    
	
 
    	
WTOV LICENSEE, LLC
    
	
 
    	
WJAC LICENSEE, LLC
    
	
 
    	
WFXL LICENSEE, LLC
    
	
 
    	
KVII LICENSEE, LLC
    
	
 
    	
KXRM LICENSEE, LLC
    
	
 
    	
WACH LICENSEE, LLC
    
	
 
    	
KGBT LICENSEE, LLC
    
	
 
    	
KTVO LICENSEE, LLC
    
	
 
    	
WPDE LICENSEE, LLC
    
	
 
    	
KHQA LICENSEE, LLC
    
	
 
    	
WSTQ LICENSEE, LLC
    
	
 
    	
WPBN LICENSEE, LLC
    
	
 
    	
KRCG LICENSEE, LLC
    

 

56

 

	
 
    	
WLUC LICENSEE, LLC
    
	
 
    	
WHOI LICENSEE, LLC
    
	
 
    	
WNWO LICENSEE, LLC
    
	
 
    	
KPTH LICENSEE, LLC
    
	
 
    	
WOLF LICENSEE, LLC
    
	
 
    	
WGFL LICENSEE, LLC
    
	
 
    	
WQMY LICENSEE, LLC
    
	
 
    	
SINCLAIR TELEVISION OF EL PASO, LLC
    
	
 
    	
WTVZ LICENSEE, LLC
    
	
 
    	
WLFL LICENSEE, LLC
    
	
 
    	
WRDC, LLC
    
	
 
    	
WTTO LICENSEE, LLC
    
	
 
    	
WTWC LICENSEE, LLC
    
	
 
    	
KOCB LICENSEE, LLC
    
	
 
    	
WDKY LICENSEE, LLC
    
	
 
    	
KOKH, LLC
    
	
 
    	
WZTV LICENSEE, LLC
    
	
 
    	
WNAB LICENSEE, LLC
    
	
 
    	
WTVC LICENSEE, LLC
    
	
 
    	
WUXP LICENSEE, LLC
    
	
 
    	
WGXA LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair   Communications, LLC, Sole Member
    
	
 
    	
By:
    	
Sinclair   Television Group, Inc., Sole Member of Sinclair Communications, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
SINCLAIR   PROGRAMMING COMPANY, LLC
    
	
 
    	
SINCLAIR   COMMUNICATIONS, LLC
    
	
 
    	
CHESAPEAKE   MEDIA I, LLC
    
	
 
    	
SINCLAIR   TELEVISION OF FRESNO, LLC
    
	
 
    	
SINCLAIR   TELEVISION OF OMAHA, LLC
    
	
 
    	
SINCLAIR   NETWORKS GROUP, LLC
    
	
 
    	
SINCLAIR   DIGITAL GROUP, LLC
    
	
 
    	
By:
    	
Sinclair   Television Group, Inc., Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
KDSM, LLC
    
	
 
    	
By:
    	
Sinclair   Broadcast Group, Inc., Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
KDSM   LICENSEE, LLC
    
	
 
    	
By:
    	
KDSM,   LLC, Sole Member of KDSM Licensee,
    
	
 
    	
 
    	
LLC
    
	
 
    	
By:
    	
Sinclair   Broadcast Group, Inc., Sole Member of KDSM, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
WDKA   LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair   Properties, LLC, Sole Member
    

 

57

 

	
 
    	
SINCLAIR BROADCASTING OF SEATTLE, LLC
    
	
 
    	
SINCLAIR TELEVISION OF PORTLAND, LLC
   SINCLAIR RADIO OF SEATTLE, LLC
    
	
 
    	
SINCLAIR MEDIA OF BOISE, LLC
    
	
 
    	
SINCLAIR TELEVISION OF OREGON, LLC
    
	
 
    	
SINCLAIR MEDIA OF SEATTLE, LLC
    
	
 
    	
SINCLAIR MEDIA OF WASHINGTON, LLC
    
	
 
    	
SINCLAIR INTERACTIVE MEDIA, LLC
    
	
 
    	
SINCLAIR SEATTLE LICENSEE, LLC
    
	
 
    	
SINCLAIR BAKERSFIELD LICENSEE, LLC
    
	
 
    	
SINCLAIR BOISE LICENSEE, LLC
    
	
 
    	
SINCLAIR YAKIMA LICENSEE, LLC
    
	
 
    	
SINCLAIR LEWISTON LICENSEE, LLC
    
	
 
    	
SINCLAIR PORTLAND LICENSEE, LLC
    
	
 
    	
SINCLAIR EUGENE LICENSEE, LLC
    
	
 
    	
SINCLAIR RADIO OF SEATTLE LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair Television Media, Inc., Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
SINCLAIR KENNEWICK LICENSEE, LLC
    
	
 
    	
SINCLAIR La GRANDE LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair Television of Washington, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
KFRE LICENSEE, LLC
    
	
 
    	
KMPH LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair Television of Fresno, LLC, Sole Member
    
	
 
    	
By:
    	
Sinclair Television Group, Inc., Sole Member of
    
	
 
    	
 
    	
Sinclair Television of Fresno, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
KPTM LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair Television of Omaha, LLC, Sole Member
    
	
 
    	
By:
    	
Sinclair Television Group, Inc., Sole Member of
    
	
 
    	
 
    	
Sinclair Television of Omaha, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
KDBC LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair Television of El Paso, LLC, Sole Member
    
	
 
    	
By:
    	
Sinclair Communications LLC, Sole Member of
    
	
 
    	
 
    	
Sinclair Television of El Paso, LLC
    
	
 
    	
By:
    	
Sinclair Television Group, Inc., Sole Member of
    
	
 
    	
 
    	
Sinclair Communications, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
David Amy, in his capacity as Executive Vice President, Secretary or   Manager, as the case may be
    

 

58

 

ARTICLE THREE

THE SECURITIES

 

Section 301.  Title and Terms.

 

The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited.  The aggregate principal amount of Initial Securities which shall be authenticated and delivered under this Indenture is $550,000,000 in principal amount of Initial Securities, except for Initial Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Initial Securities pursuant to Section 303, 304, 305, 306, 307, 308, 906, 1012, 1015 or 1108.  In addition, the Company may, from time to time, without notice to or the consent of the Holders of Securities, create and issue Additional Securities under this Indenture ranking equally with the Initial Securities in all respects, subject to the limitations described in Section 1008 hereof.  Such Additional Securities may be consolidated and form a single series with the Initial Securities, vote together with the Initial Securities and have the same terms as to status, redemption or otherwise as the Initial Securities.

 

Notwithstanding anything to the contrary contained herein, the Company may not issue any Additional Securities, unless immediately after giving effect to such issuance, no Default or Event of Default shall have occurred and be continuing.

 

The Securities shall be known and designated as the “5.625% Senior Notes due 2024,” in the case of either Series A or Series B, of the Company.  Additional Securities shall be known and designated as the “5.625% Senior Notes due 2024” of the Company.

 

With respect to any Additional Securities, the Company shall set forth in (a) a Board Resolution and (b) (i) an Officers’ Certificate or (ii) one or more indentures supplemental hereto, the following information:

 

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

 

(2)                                         the issue price and the issue date of such Additional Securities.

 

Unless otherwise specified herein, the Initial Securities and the Additional Securities shall be considered collectively as a single class for all purposes of this Indenture and are together referred to as the “Securities.”  Holders of the Initial Securities and the Additional Securities shall vote and consent together on all matters to which such

 

59

 

Holders are entitled to vote or consent as one class, and none of the Holders of the Initial Securities or the Additional Securities shall have the right to vote or consent as a separate class on any matter to which such Holders are entitled to vote or consent.  Each of the Initial Securities and the Additional Securities will rank pari passu in right of payment with each other.

 

The Stated Maturity of the Securities shall be August 1, 2024, and the Securities shall each bear interest at the rate of 5.625% plus Additional Interest, if any, from July 23, 2014 or from the most recent Interest Payment Date to which interest has been paid, as the case may be, payable on February 1, 2015 and semiannually thereafter on February 1 and August 1, in each year, until the principal thereof is paid or duly provided for.

 

The principal of, premium, if any, and interest on the Securities shall be payable at the office or agency of the Company maintained for such purpose; provided, however, that at the option of the Company, interest may be paid (i) by check mailed to addresses of the Persons entitled thereto as such addresses shall appear on the Security Register or (ii) by wire transfer in immediately available funds to an account specified (not later than one Business Day prior to the applicable Interest Payment Date) by the Holder thereof.  If any of the Securities are held by the Depositary, payments of interest may be made by wire transfer to the Depositary.  The Trustee is hereby initially designated as the Paying Agent under this Indenture.

 

The Securities shall be redeemable as provided in Article Eleven.

 

The obligations of the Company pursuant to the Securities shall be guaranteed by each and every Guarantor as provided in Article Thirteen of this Indenture.

 

The Securities shall be redeemable, at the option of the Holder, upon a Change of Control as provided in Section 1015 of this Indenture.

 

At the election of the Company, the entire Indebtedness on the Securities or certain of the Company’s obligations and covenants and certain Events of Default thereunder may be defeased as provided in Article Four.

 

Section 302.  Denominations.

 

The Securities shall be issuable only in fully registered form without coupons in denominations of $2,000 and any integral multiple of $1,000 in excess thereof.

 

60

 

Section 303.  Execution, Authentication, Delivery and Dating.

 

The Securities shall be executed on behalf of the Company by one of its Chairman of the Board, its President or one of its Vice Presidents attested by its Secretary or one of its Assistant Secretaries.

 

Securities bearing the manual or facsimile signatures of individuals who were at any time the proper officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Securities or did not hold such offices on the date of such Securities.

 

At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities executed by the Company to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Securities; and the Trustee in accordance with such Company Order shall authenticate and deliver such Securities as provided in this Indenture and not otherwise.

 

Each Security shall be dated the date of its authentication.

 

No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a certificate of authentication substantially in the form provided for herein duly executed by the Trustee by manual signature of an authorized officer, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered hereunder.

 

In case the Company or any Guarantor, pursuant to Article Eight, shall be consolidated, merged with or into any other Person or shall sell, assign, convey, transfer or lease substantially all of its properties and assets to any Person, and the successor Person resulting from such consolidation, or surviving such merger, or into which the Company or such Guarantor shall have been merged, or the Person which shall have received a sale, assignment, conveyance, transfer or lease as aforesaid, shall have executed an indenture supplemental hereto with the Trustee pursuant to Article Eight, any of the Securities authenticated or delivered prior to such consolidation, merger, sale, assignment, conveyance, transfer or lease may, from time to time, at the request of the successor Person, be exchanged for other Securities executed in the name of the successor Person with such changes in phraseology and form as may be appropriate, but otherwise in substance of like tenor as the Securities surrendered for such exchange and of like principal amount; and the Trustee, upon Company Request of the successor Person, shall authenticate and deliver Securities as specified in such request for the purpose of such exchange.  If Securities shall at any time be authenticated and delivered in any new name of a successor Person pursuant to this Section 303 in exchange or substitution for or upon registration of transfer of any Securities, such successor Person, at the option of the

 

61

 

Holders but without expense to them, shall provide for the exchange of all Securities at the time Outstanding for Securities authenticated and delivered in such new name.

 

The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities on behalf of the Trustee.  Unless limited by the terms of such appointment, an authenticating agent may authenticate Securities whenever the Trustee may do so.  Each reference in this Indenture to authentication by the Trustee includes authentication by such agent.  An authenticating agent has the same rights as any Security Registrar or Paying Agent to deal with the Company and its Affiliates.

 

Section 304.  Temporary Securities.

 

Pending the preparation of definitive Securities, the Company may execute, and upon Company Order, the Trustee shall authenticate and deliver, temporary Securities which are printed, lithographed, typewritten or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as conclusively evidenced by their execution of such Securities.

 

After the preparation of definitive Securities, the temporary Securities shall be exchangeable for definitive Securities upon surrender of the temporary Securities at the office or agency of the Company designated for such purpose pursuant to Section 1002, without charge to the Holder.  Upon surrender for cancellation of any one or more temporary Securities the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal amount of definitive Securities of authorized denominations.  Until so exchanged the temporary Securities shall in all respects be entitled to the same benefits under this Indenture as definitive Securities.

 

Section 305.  Global Securities.

 

(a)  Each Global Security initially shall (i) be registered in the name of the Depositary for such Global Security or the nominee of such Depositary, (ii) be deposited with, or on behalf of, the Depositary or with the Trustee as custodian for such Depository, for credit to the respective accounts of the purchasers (or to such other accounts as they may direct) and (iii) bear legends as set forth in Sections 202(a) and 204; provided, however, the Securities are eligible to be in the form of a Global Security.

 

Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under this Indenture with respect to any Global Security held on their behalf by the Depositary, or the Trustee as its custodian, or under the Global Security, and the Depositary may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of such Global Security for all purposes whatsoever.

 

62

 

Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company from giving effect to any written certification, proxy or other authorization furnished by the Depositary or shall impair, as between the Depositary and its Agent Members, the operation of customary practices governing the exercise of the rights of a holder of any Security.

 

(b)  Transfers of the Global Security shall be limited to transfers of such Global Security in whole, but not in part, to the Depositary, its successors or their respective nominees.  Interests of beneficial owners in a Global Security may be transferred in accordance with the rules and procedures of the Depositary and the provisions of Section 307.  Under the circumstances described in this clause (b), beneficial owners shall obtain physical securities in the form set forth in Sections 202, 203, 204 (if applicable) and 205 (“Physical Securities”) in exchange for their beneficial interests in a Global Security in accordance with the Depositary’s and the Securities Registrar’s procedures.  In connection with the execution, authentication and delivery of such Physical Securities, the Security Registrar shall reflect on its books and records a decrease in the principal amount of the Global Security equal to the principal amount of such Physical Securities and the Company shall execute and the Trustee shall authenticate and deliver one or more Physical Securities having an equal aggregate principal amount.  The Securities shall be delivered in certificated form if (i) the Depositary ceases to be registered as a clearing agency under the Exchange Act or is not willing or no longer able to provide securities depository services with respect to the Securities and a successor depositary is not appointed by the Company within 90 days, (ii) the Company, in its sole discretion, so determines and notifies the Trustee in writing that it elects to cause the issuance of the Securities in certificated form or (iii) there shall have occurred and be continuing an Event of Default or an event which, with the giving of notice or lapse of time or both, would constitute an Event of Default with respect to the Securities represented by such Global Security.

 

(c)  In connection with any transfer of a portion of the beneficial interest in a Global Security pursuant to subsection (b) of this Section 305 to beneficial owners who are entitled to hold Physical Securities, the Security Registrar shall reflect on its books and records the date and a decrease in the principal amount of a Global Security in an amount equal to the principal amount of the beneficial interest in the Global Security to be transferred, and the Company shall execute, and the Trustee shall authenticate and deliver, one or more Physical Securities of like tenor and amount.

 

(d)  In connection with the transfer of the entire Global Security to beneficial owners pursuant to subsection (b) of this Section 305, a Global Security shall be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and deliver, to each beneficial owner identified by the

 

63

 

Depositary in exchange for its beneficial interest in a Global Security, an equal aggregate principal amount of Physical Securities of authorized denominations.

 

(e)  Any Physical Security delivered in exchange for an interest in Global Securities pursuant to subsection (c) or subsection (d) of this Section 305 shall, except as otherwise provided in Section 307, bear the Restricted Securities Legend.

 

(f)  The registered Holder of a Global Security may grant proxies and otherwise authorize any person, including Agent Members and Persons that may hold interests through Agent Members, to take any action which a Holder is entitled to take under this Indenture or the Securities.

 

(g)  The Depositary or its nominee, as registered owner of a Global Security, shall be the Holder of such Global Security for all purposes under this Indenture and the Securities, and owners of beneficial interests in a Global Security shall hold such interests pursuant to the Depositary’s customary procedures.  Accordingly, any such owner’s beneficial interest in a Global Security shall be shown only on, and the transfer of such interest shall be effected only through, records maintained by the Depositary or its nominee or its Agent Members.

 

Section 306.  Registration, Registration of Transfer and Exchange.

 

The Company shall cause to be kept at the Corporate Trust Office of the Trustee, or such other office as the Trustee may designate, a register (the register maintained in such office and in any other office or agency designated pursuant to Section 1002 being herein sometimes referred to as the “Security Register”) in which, subject to such reasonable regulations as the Security Registrar may prescribe, the Company shall provide for the registration of Securities and of transfers of Securities.  The Trustee or an agent thereof or of the Company shall initially be the “Security Registrar” for the purpose of registering Securities and transfers of Securities as herein provided.

 

Upon surrender for registration of transfer of any Security at the office or agency of the Company designated pursuant to Section 1002, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Securities of any authorized denomination or denominations, of a like aggregate principal amount.

 

Furthermore, any Holder of a Global Security shall, by acceptance of such Global Security, agree that transfers of beneficial interest in such Global Security may be effected only through a book-entry system maintained by the Holder of such Global Security (or its agent), and that ownership of a beneficial interest in the Securities shall be required to be reflected in a book entry.

 

64

 

At the option of the Holder, Securities may be exchanged for other Securities of any authorized denomination or denominations, of a like aggregate principal amount, upon surrender of the Securities to be exchanged at such office or agency.  Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Securities of the same series which the Holder making the exchange is entitled to receive; provided that no exchange of Series A Securities for Series B Securities shall occur until an Exchange Offer Registration Statement shall have been declared effective by the Commission and that the Series A Securities exchanged for the Series B Securities shall be cancelled.

 

All Securities issued upon any registration of transfer or exchange of Securities shall be the valid obligations of the Company, evidencing the same Indebtedness, and entitled to the same benefits under this Indenture, as the Securities surrendered upon such registration of transfer or exchange.

 

Every Security presented or surrendered for registration of transfer, or for exchange or redemption shall (if so required by the Company or the Trustee) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar, duly executed by the Holder thereof or his attorney duly authorized in writing.

 

No service charge shall be made to a Holder for any registration of transfer or exchange or redemption of Securities, but the Company may require payment of a sum sufficient to pay all documentary, stamp or similar issue or transfer taxes or other governmental charges that may be imposed in connection with any registration of transfer or exchange of Securities, other than exchanges pursuant to Section 303, 304, 305, 306, 307, 308, 906, 1012, 1015 or 1108 not involving any transfer.

 

The Company shall not be required (a) to issue, register the transfer of or exchange any Security during a period beginning at the opening of business (i) 15 days before the date of selection of Securities for redemption under Section 1104 and ending at the close of business on the day of such selection or (ii) 15 days before an Interest Payment Date and ending on the close of business on the Interest Payment Date, or (b) to register the transfer of or exchange any Security so selected for redemption in whole or in part, except the unredeemed portion of Securities being redeemed in part.

 

Every Restricted Security shall be subject to the restrictions on transfer provided in the legend required to be set forth on the face of each Restricted Security pursuant to Section 202(a), and the restrictions set forth in this Section 306, and the Holder of each Restricted Security, by such Holder’s acceptance thereof (or interest therein), agrees to be bound by such restrictions on transfer.

 

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Any Restricted Security as to which such restrictions on transfer shall have expired in accordance with their terms or shall have terminated may, upon surrender of such Restricted Security for exchange to the Security Registrar in accordance with the provision of this Section 306 (accompanied, in the event that such restrictions on transfer have terminated pursuant to Rule 144 (or any successor provision), by an Opinion of Counsel satisfactory to the Company and the Trustee, to the effect that the transfer of such Restricted Security has been made in compliance with Rule 144 (or any such successor provision)), be exchanged for a new Security, of like tenor and aggregate principal amount, which shall not bear the Restricted Securities Legend.  The Company shall inform the Trustee of the effective date of any Registration Statement registering the Securities under the Securities Act no later than two Business Days after such effective date.

 

Except as provided in the preceding paragraph, any Security authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, any Global Security, whether pursuant to this Section 306, Section 304, 308, 906 or 1108 or otherwise, shall also be a Global Security and bear the legend specified in Section 202(a).

 

Section 307.  Special Transfer Provisions.Unless and until (i) a Security is sold under an effective Registration Statement, or (ii) a Security is exchanged for a Series B Security in connection with the Exchange Offer, in each case pursuant to the Registration Rights Agreement, the following provisions shall apply (except to the extent inconsistent with the Applicable Procedures):

 

(a)                      Transfers and Exchanges Between Rule 144A Global Securities, Institutional Accredited Investors Global Security and Regulation S Global Securities. (i)  Rule 144A Global Security or Institutional Accredited Investors Global Security to Regulation S Global Security.  If the owner of a beneficial interest in the Rule 144A Global Security or Institutional Accredited Investors Global Security wishes at any time to transfer such interest to a Person who wishes to acquire the same in the form of a beneficial interest in the Regulation S Global Security, such transfer may be effected only in accordance with the provisions of this paragraph (i) and the Applicable Procedures.  Upon receipt by the Trustee, as Security Registrar, of (a) an order given by the Depositary or its authorized representative directing that a beneficial interest in the Regulation S Global Security in a specified principal amount be credited to a specified Agent Member’s account and that a beneficial interest in the Rule 144A Global Security or Institutional Accredited Investors Global Security, as applicable, in an equal principal amount be debited from another specified Agent Member’s account and (b) a Regulation S Certificate in the form of Exhibit A hereto, satisfactory to the Trustee and duly executed by the owner of such beneficial interest in

 

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the Rule 144A Global Security or Institutional Accredited Investors Global Security, as applicable, or his attorney duly authorized in writing, then the Trustee, as Security Registrar but subject to paragraph (iv) below, shall reduce the principal amount of the Rule 144A Global Security or Institutional Accredited Investors Global Security, as applicable, and increase the principal amount of the Regulation S Global Security by such specified principal amount.

 

(ii)                                  Regulation S Global Security or Institutional Accredited Investors Global Security to Rule 144A Global Security.  If the owner of a beneficial interest in the Regulation S Global Security or Institutional Accredited Investors Global Security wishes at any time to transfer such interest to a Person who wishes to acquire the same in the form of a beneficial interest in the Rule 144A Global Security, such transfer may be effected only in accordance with this paragraph (ii) and subject to the Applicable Procedures.  Upon receipt by the Trustee, as Security Registrar, of (a) an order given by the Depositary or its authorized representative directing that a beneficial interest in the Rule 144A Global Security in a specified principal amount be credited to a specified Agent Member’s account and that a beneficial interest in the Regulation S Global Security or Institutional Accredited Investors Global Security, as applicable, in an equal principal amount be debited from another specified Agent Member’s account and (b) if such transfer is to occur during the Restricted Period, a Restricted Securities Certificate in the form of Exhibit B hereto, satisfactory to the Trustee and duly executed by the owner of such beneficial interest in the Regulation S Global Security or Institutional Accredited Investors Global Security, as applicable, or his attorney duly authorized in writing, then the Trustee, as Security Registrar, shall reduce the principal amount of the Regulation S Global Security or Institutional Accredited Investors Global Security, as applicable, and increase the principal amount of the Rule 144A Global Security by such specified principal amount.

 

(iii)                               Regulation S Global Security or Rule 144A Global Security to Institutional Accredited Investors Global Security. If the owner of a beneficial interest in the Regulation S Global Security or Rule 144A Global Security wishes at any time to transfer such interest to a Person who wishes to acquire the same in the form of a beneficial interest in the Institutional Accredited Investors Global Security, such transfer may be effected only in accordance with this paragraph (iii) and subject to the Applicable Procedures. Upon receipt by the Trustee, as Security Registrar, of (a) an order given by the Depositary or its authorized representative directing that a beneficial interest in the Institutional Accredited Investors Global Security

 

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in a specified principal amount be credited to a specified Agent Member’s account and that a beneficial interest in the Regulation S Global Security or Rule 144A Global Security, as applicable, in an equal principal amount be debited from another specified Agent Member’s account and (b) an Institutional Accredited Investor Transfer Certificate in the form of Exhibit C hereto, satisfactory to the Trustee and duly executed by the owner of such beneficial interest in the Regulation S Global Security or Rule 144A Global Security, as applicable, or his attorney duly authorized in writing, then the Trustee, as Security Registrar, shall reduce the principal amount of the Regulation S Global Security or Rule 144A Global Security, as applicable, and increase the principal amount of the Institutional Accredited Investors Global Security by such specified principal amount.

 

(iv)                              Exchanges between Global Securities and Non-Global Securities.  A beneficial interest in a Global Security may be exchanged for a Security that is not a Global Security as provided in Section 305(b), provided that, if such interest is a beneficial interest in the Rule 144A Global Security, or if such interest is a beneficial interest in the Regulation S Global Security and such exchange is to occur during the Restricted Period, then such interest shall bear the Restricted Securities Legend (subject in each case to Section 307(b).

 

(v)                                 Regulation S Global Security to be Held Through Euroclear or Clearstream during Restricted Period.  The Company shall use its best efforts to cause the Depositary to ensure that, until the expiration of the Restricted Period, beneficial interests in the Regulation S Global Security may be held only in or through accounts maintained at the Depositary by Euroclear or Clearstream (or by Agent Members acting for the account thereof), and no person shall be entitled to effect any transfer or exchange that would result in any such interest being held otherwise than in or through such an account; provided that this paragraph (v) shall not prohibit any transfer or exchange of such an interest in accordance with paragraph (ii) above.

 

(b)                                Restricted Securities Legend.  Rule 144A Global Securities and their Successor Securities, Regulation S Global Securities and their Successor Securities, Institutional Accredited Investors Global Securities and their Successor Securities and Physical Securities and their Successor Securities shall bear a Restricted Securities Legend, subject to the following:

 

(i)                                     subject to the following clauses of this Section 307(b), a Security or any portion thereof which is exchanged, upon transfer or

 

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otherwise, for a Global Security or any portion thereof shall bear the Restricted Securities Legend borne by such Global Security while represented thereby;

 

(ii)                                  subject to the following clauses of this Section 307(b), a new Security which is not a Global Security and is issued in exchange for another Security (including a Global Security) or any portion thereof, upon transfer or otherwise, shall bear the Restricted Securities Legend borne by such other Security;

 

(iii)                               Securities received pursuant to the Exchange Offer, and all other Securities sold or otherwise disposed of pursuant to an effective registration statement under the Securities Act, together with their respective Successor Securities, shall not bear a Restricted Securities Legend;

 

(iv)                              at any time after the Securities may be freely transferred without registration under the Securities Act or without being subject to transfer restrictions pursuant to the Securities Act, a new Security which does not bear a Restricted Securities Legend may be issued in exchange for or in lieu of a Security (other than a Global Security) or any portion thereof which bears such a legend if the Trustee has received an Unrestricted Securities Certificate substantially in the form of Exhibit D hereto, satisfactory to the Trustee and duly executed by the Holder of such legended Security or his attorney duly authorized in writing, and after such date and receipt of such certificate, the Trustee shall authenticate and deliver such a new Security in exchange for or in lieu of such other Security as provided in this Article Three; and

 

(v)                                 a new Security which does not bear a Restricted Securities Legend may be issued in exchange for or in lieu of a Security (other than a Global Security) or any portion thereof which bears such a legend if, in the Company’s judgment, placing such a legend upon such new Security is not necessary to ensure compliance with the registration requirements of the Securities Act, and the Trustee, at the direction of the Company, shall authenticate and deliver such a new Security as provided in this Article Three.

 

(c)                                 General.  By its acceptance of any Security bearing the Restricted Securities Legend, each Holder of such a Security acknowledges the restrictions on transfer of such Security set forth in this Indenture and in the Restricted Securities Legend and agrees that it shall transfer such Security only as provided in this Indenture.

 

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The Security Registrar shall retain copies of all letters, notices and other written communications received pursuant to Section 306 or this Section 307.  The Company shall have the right to inspect and make copies of all such letters, notices or other written communications at any reasonable time upon the giving of reasonable written notice to the Security Registrar.

 

Section 308.  Mutilated, Destroyed, Lost and Stolen Securities.

 

If (a) any mutilated Security is surrendered to the Trustee, or (b) the Company and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Security, and there is delivered to the Company, each Guarantor and the Trustee, such security or indemnity, in each case, as may be required by them to save each of them harmless, then, in the absence of notice to the Company, any Guarantor or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall execute and upon its written request the Trustee shall authenticate and deliver, in exchange for any such mutilated Security or in lieu of any such destroyed, lost or stolen Security, a replacement Security of like tenor and principal amount, bearing a number not contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a replacement Security, pay such Security.

 

Upon the issuance of any replacement Securities under this Section 308, the Company may require the payment of a sum sufficient to pay all documentary, stamp or similar issue or transfer taxes or other governmental charges that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

 

Every replacement Security issued pursuant to this Section 308 in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company and the Guarantors, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all benefits of this Indenture equally and proportionately with any and all other Securities duly issued hereunder.

 

The provisions of this Section 308 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities.

 

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Section 309.  Payment of Interest; Interest Rights Preserved.

 

Interest on any Security which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name that Security is registered at the close of business on the Regular Record Date for such interest.

 

Any interest on any Security which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date and interest on such defaulted interest at the then applicable interest rate borne by the Securities, to the extent lawful (such defaulted interest and interest thereon herein collectively called “Defaulted Interest”) shall forthwith cease to be payable to the Holder on the Regular Record Date; and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in subsection (a) or (b) below:

 

(a)                                 The Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Securities are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner.  The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Security and the date (not less than 30 days after such notice) of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this subsection provided.  Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment.  The Trustee shall promptly notify the Company in writing of such Special Record Date.  In the name and at the expense of the Company, the Trustee shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each Holder at his address as it appears in the Security Register, not less than 10 days prior to such Special Record Date.  Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Securities are registered on such Special Record Date and shall no longer be payable pursuant to the following subsection (b).

 

(b)                                 The Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any

 

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securities exchange on which the Securities may be listed, and upon such notice as may be required by such exchange, if, after written notice given by the Company to the Trustee of the proposed payment pursuant to this subsection, such payment shall be deemed practicable by the Trustee.

 

Subject to the foregoing provisions of this Section 309, each Security delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security.

 

Section 310.  Persons Deemed Owners.

 

The Company, any Guarantor, the Trustee and any agent of the Company, any Guarantor or the Trustee may treat the Person in whose name any Security is registered as the owner of such Security for the purpose of receiving payment of principal of, premium, if any, and (subject to Section 309) interest on such Security and for all other purposes whatsoever, whether or not such Security is overdue, and neither the Company, any Guarantor, the Trustee nor any agent of the Company, any Guarantor or the Trustee shall be affected by notice to the contrary.  No holder of any beneficial interest in any Global Security held on its behalf by a Depositary shall have any rights under this Indenture with respect to such Global Security, and such Depositary may be treated by the Company, any Guarantor, the Trustee and any agent of the Company, any Guarantor or the Trustee as the owner of such Global Security for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein shall prevent the Company, any Guarantor, the Trustee or any agent of the Company, any Guarantor or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depositary or impair, as between the Depositary and such holders of beneficial interests, the operation of customary practices governing the exercise of the rights of the Depositary (or its nominee) as Holder of any Security.

 

Section 311.  Cancellation.

 

All Securities surrendered for payment, purchase, redemption, registration of transfer or exchange shall be delivered to the Trustee and, if not already cancelled, shall be promptly cancelled by it.  The Company and any Guarantor may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company or such Guarantor may have acquired in any manner whatsoever, and all Securities so delivered shall be promptly cancelled by the Trustee.  No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section 311, except as expressly permitted by this Indenture.  All cancelled Securities held by the Trustee shall be destroyed and certification of their destruction delivered to the Company unless by a Company Order the Company shall direct that the cancelled Securities be returned to it.  The Trustee shall provide the

 

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Company a list of all Securities that have been cancelled from time to time as requested by the Company.  The Company may not issue new Securities to replace Securities it has paid or delivered to the Trustee for cancellation.

 

Section 312.  Computation of Interest.

 

Interest on the Securities shall be computed on the basis of a 360-day year of twelve 30-day months.

 

Section 313.  CUSIP and ISIN Numbers.

 

The Company in issuing the Securities may use “CUSIP” and “ISIN” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” and “ISIN” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers.

 

ARTICLE FOUR
                                                  
 DEFEASANCE AND COVENANT DEFEASANCE

 

Section 401.  Company’s Option to Effect Defeasance or Covenant Defeasance.

 

The Company may, at its option by Board Resolution, at any time, with respect to the Securities, elect to have either Section 402 or Section 403 be applied to all of the Outstanding Securities (the “Defeased Securities”), upon compliance with the conditions set forth below in this Article Four.

 

Section 402.  Defeasance and Discharge.

 

Upon the Company’s exercise under Section 401 of the option applicable to this Section 402, the Company, each of the Guarantors and any other obligor upon the Securities, if any, shall be deemed to have been discharged from its obligations with respect to the Defeased Securities under this Indenture on the date the conditions set forth below are satisfied (hereinafter, “defeasance”).  For this purpose, such defeasance means that the Company, each of the Guarantors, if any, and any other obligor under this Indenture shall be deemed to have paid and discharged the entire Indebtedness represented by the Defeased Securities, which shall thereafter be deemed to be “Outstanding” only for the purposes of Section 405 and the other Sections of this

 

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Indenture referred to in (a) and (b) below, and to have satisfied all its other obligations under such Securities and this Indenture insofar as such Securities are concerned (and the Trustee, at the expense of the Company, and, upon written request, shall execute proper instruments acknowledging the same), except for the following which shall survive until otherwise terminated or discharged hereunder:  (a) the rights of Holders of Defeased Securities to receive, solely from the trust fund described in Section 404 and as more fully set forth in such Section, payments in respect of the principal of, premium, if any, and interest on such Securities when such payments are due, (b) the Company’s obligations with respect to such Defeased Securities under Sections 304, 305, 306, 307, 308, 1002 and 1003, (c) the rights, powers, trusts, duties and immunities of the Trustee hereunder, including, without limitation, the Trustee’s rights under Section 606, and (d) this Article Four.  Subject to compliance with this Article Four, the Company may exercise its option under this Section 402 notwithstanding the prior exercise of its option under Section 403 with respect to the Securities.

 

Section 403.  Covenant Defeasance.

 

Upon the Company’s exercise under Section 401 of the option applicable to this Section 403, the Company and each Guarantor shall be released from its obligations under any covenant or provision contained or referred to in Sections 1006 through 1018, inclusive, on and after the date the conditions set forth below are satisfied (hereinafter, “covenant defeasance”), and the Defeased Securities shall thereafter be deemed to be not “Outstanding” for the purposes of any direction, waiver, consent or declaration or Act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “Outstanding” for all other purposes hereunder.  For this purpose, such covenant defeasance means that, with respect to the Defeased Securities, the Company and each Guarantor may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such Section or Article, whether directly or indirectly, by reason of any reference elsewhere herein to any such Section or Article or by reason of any reference in any such Section or Article to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 501(c) or (d), but, except as specified above, the remainder of this Indenture and such Defeased Securities shall be unaffected thereby.

 

Section 404.  Conditions to Defeasance or Covenant Defeasance.

 

The following shall be the conditions to application of either Section 402 or Section 403 to the Defeased Securities:

 

(1)                                The Company shall irrevocably have deposited or caused to be deposited with the Trustee (or another trustee satisfying the requirements of Section 608 who shall agree to comply with the provisions of this Article Four applicable to it) as trust

 

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funds in trust for the purpose of making the following payments, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such Securities, (a) United States dollars in an amount, or (b) U.S. Government Obligations which through the scheduled payment of principal and interest in respect thereof in accordance with their terms shall provide, not later than one day before the due date of any payment, money in an amount, or (c) a combination thereof, sufficient, in the opinion of a nationally recognized firm of independent public accountants or a nationally recognized investment banking firm expressed in a written certification thereof delivered to the Trustee, to pay and discharge and which shall be applied by the Trustee (or other qualifying trustee) to pay and discharge the principal of, premium, if any, and interest on the Defeased Securities on the Stated Maturity of such principal or installment of principal or interest (or on any date after the initial Redemption Date, if any, for such Defeased Securities, (such date being referred to as the “Defeasance Redemption Date”), if when exercising under Section 401 either its option applicable to Section 402 or its option applicable to Section 403, the Company shall have delivered to the Trustee an irrevocable notice to redeem all of the Outstanding Securities on the Defeasance Redemption Date); provided that the Trustee shall have been irrevocably instructed to apply such United States dollars or the proceeds of such U.S. Government Obligations to said payments with respect to the Securities.  For this purpose, “U.S. Government Obligations” means securities that are (i) direct obligations of the United States of America for the timely payment of which its full faith and credit is pledged or (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America the timely payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, which, in either case, are not callable or redeemable at the option of the issuer thereof, and shall also include a depository receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act), as custodian with respect to any such U.S. Government Obligation or a specific payment of principal of or interest on any such U.S. Government Obligation held by such custodian for the account of the holder of such depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation or the specific payment of principal of or interest on the U.S. Government Obligation evidenced by such depository receipt.

 

(2)                                In the case of an election under Section 402, the Company shall have delivered to the Trustee an Opinion of Independent Counsel in the United States stating that (A) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (B) since the Issue Date, there has been a change in the applicable federal income tax law, in either case to the effect that, and based thereon such Opinion of Independent Counsel in the United States shall confirm that, the holders and beneficial owners of the Outstanding Securities will not recognize income, gain or loss

 

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for federal income tax purposes as a result of such defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such defeasance had not occurred.

 

(3)                                In the case of an election under Section 403, the Company shall have delivered to the Trustee an Opinion of Independent Counsel in the United States to the effect that the holders and beneficial owners of the Outstanding Securities will not recognize income, gain or loss for federal income tax purposes as a result of such covenant defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such covenant defeasance had not occurred.

 

(4)                                No Default or Event of Default shall have occurred and be continuing on the date of such deposit or insofar as subsections 501(g) and (h) are concerned, at any time during the period ending on the 91st day after the date of deposit.

 

(5)                                Such defeasance or covenant defeasance shall not cause the Trustee for the Securities to have a conflicting interest with respect to any securities of the Company or any Guarantor.

 

(6)                                Such defeasance or covenant defeasance shall not result in a breach or violation of, or constitute a Default under, this Indenture or any other material agreement or instrument to which the Company or any Guarantor is a party or by which it is bound.

 

(7)                                The Company shall have delivered to the Trustee an Opinion of Independent Counsel to the effect that (A) the trust funds will not be subject to any rights of holders of Pari Passu Indebtedness or Guarantor Pari Passu Indebtedness, including, without limitation, those arising under this Indenture and (B) after the 91st day following the deposit, the trust funds will not be subject to the effect of any applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally.

 

(8)                                The Company shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by the Company with the intent of preferring the holders of the Securities or any Guarantee over the other creditors of the Company or any Guarantor with the intent of defeating, hindering, delaying or defrauding creditors of the Company, any Guarantor or others.

 

(9)                                No event or condition shall exist that would prevent the Company from making payments of the principal of, premium, if any, and interest on the Securities on the date of such deposit or at any time ending on the 91st day after the date of such deposit.

 

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(10)                         The Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Independent Counsel, each stating that all conditions precedent provided for relating to either the defeasance under Section 402 or the covenant defeasance under Section 403 (as the case may be) have been complied with as contemplated by this Section 404.

 

Opinions of Counsel or Opinions of Independent Counsel required to be delivered under this Section 404 may have qualifications customary for opinions of the type required and counsel delivering such opinions may rely on certificates of the Company or government or other officials customary for opinions of the type required, including certificates certifying as to matters of fact, including that various financial covenants have been complied with.

 

Section 405.  Deposited Money and U.S. Government Obligations to Be Held in Trust; Other Miscellaneous Provisions.

 

Subject to the provisions of the last paragraph of Section 1003, all United States dollars and U.S. Government Obligations (including the proceeds thereof) deposited with the Trustee or other qualifying trustee as permitted under Section 404 (collectively, for purposes of this Section 405, the “Trustee”) pursuant to Section 404 in respect of the Defeased Securities shall be held in trust and applied by the Trustee, in accordance with the provisions of such Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of such Securities of all sums due and to become due thereon in respect of principal, premium, if any, and interest, but such money need not be segregated from other funds except to the extent required by law.

 

The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the U.S. Government Obligations deposited pursuant to Section 404 or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of the Defeased Securities.

 

Anything in this Article Four to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon Company Request any United States dollars or U.S. Government Obligations held by it as provided in Section 404 which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, are in excess of the amount thereof which would then be required to be deposited to effect defeasance or covenant defeasance.

 

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Section 406.  Reinstatement.

 

If the Trustee or Paying Agent is unable to apply any United States dollars or U.S. Government Obligations in accordance with Section 402 or 403, as the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company’s and each Guarantor’s obligations under this Indenture and the Securities and the provisions of Article Thirteen hereof shall be revived and reinstated as though no deposit had occurred pursuant to Section 402 or 403, as the case may be, until such time as the Trustee or Paying Agent is permitted to apply all such United States dollars or U.S. Government Obligations in accordance with Section 402 or 403, as the case may be; provided, however, that if the Company makes any payment to the Trustee or Paying Agent of principal of, premium, if any, or interest on any Security following the reinstatement of its obligations, the Trustee or Paying Agent shall promptly pay any such amount to the Holders of the Securities and the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money held by the Trustee or Paying Agent.

 

ARTICLE FIVE
                                                  
 REMEDIES

 

Section 501.  Events of Default.

 

“Event of Default” means, wherever used herein, any one of the following events which has occurred and is continuing (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

 

(a)                                there shall be a default in the payment of any interest on any Security (including any Additional Interest) when it becomes due and payable, and such default shall continue for a period of 30 days;

 

(b)                                there shall be a default in the payment of the principal of (or premium, if any, on) any Security at its Maturity (upon acceleration, optional or mandatory redemption, required repurchase or otherwise);

 

(c)                                 (i) there shall be a default in the performance, or breach, of any covenant or agreement of the Company or any Guarantor under the Securities, the Guarantees or this Indenture (other than a default in the performance or breach of a covenant or agreement which is specifically dealt with in clause (a) or (b) or in clause (ii), (iii) or (iv) of this clause (c)) and such default or breach shall continue for a period of 45

 

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days after written notice has been given, by certified mail, (1) to the Company by the Trustee or (z) to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Securities; (ii) there shall be a default in the performance or breach of the provisions of Article Eight; (iii) the Company shall have failed to make or consummate an Offer in accordance with the provisions of Section 1012; or (iv) the Company shall have failed to make or consummate a Change of Control Offer in accordance with the provisions of Section 1015;

 

(d)                                one or more defaults shall have occurred under any agreements, indentures or instruments under which the Company, any Guarantor or any Restricted Subsidiary then has outstanding Indebtedness in excess of $75,000,000 in the aggregate and, if not already matured at its final maturity in accordance with its terms, such Indebtedness shall have been accelerated;

 

(e)                                 any Guarantee shall for any reason cease to be, or be asserted in writing by any Guarantor or the Company not to be, in full force and effect, and enforceable in accordance with its terms, except to the extent contemplated by this Indenture and any such Guarantee;

 

(f)                                  one or more judgments, orders or decrees for the payment of money in excess of $75,000,000 either individually or in the aggregate (net of amounts covered by insurance, bond, surety or similar instrument), shall be entered against the Company, any Guarantor, or any Restricted Subsidiary or any of their respective properties and shall not be discharged and either (a) any creditor shall have commenced an enforcement proceeding upon such judgment, order or decree or (b) there shall have been a period of 60 consecutive days during which a stay of enforcement of such judgment or order, by reason of an appeal or otherwise, shall not be in effect;

 

(g)                                 there shall have been the entry by a court of competent jurisdiction of (i) a decree or order for relief in respect of the Company, Parent or any Significant Subsidiary in an involuntary case or proceeding under any applicable Bankruptcy Law or (ii) a decree or order adjudging the Company, Parent or any Significant Subsidiary bankrupt or insolvent, or seeking reorganization, arrangement, adjustment or composition of or in respect of the Company, Parent or any Significant Subsidiary under any applicable federal or state law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Company, Parent or any Significant Subsidiary or of any substantial part of their respective properties, or ordering the winding up or liquidation of their affairs, and any such decree or order for relief shall continue to be in effect, or any such other decree or order shall be unstayed and in effect, for a period of 60 consecutive days; or

 

(h)                                (i) the Company, Parent or any Significant Subsidiary commences a voluntary case or proceeding under any applicable Bankruptcy Law or any other case or

 

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proceeding to be adjudicated bankrupt or insolvent, (ii) the Company, Parent or any Significant Subsidiary consents to the entry of a decree or order for relief in respect of the Company, Parent or any Significant Subsidiary in an involuntary case or proceeding under any applicable Bankruptcy Law or to the commencement of any bankruptcy or insolvency case or proceeding against it, (iii) the Company, Parent or any Significant Subsidiary files a petition or answer or consent seeking reorganization or relief under any applicable federal or state law, (iv) the Company, Parent or any Significant Subsidiary (1) consents to the filing of such petition or the appointment of, or taking possession by, a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company, Parent or any Significant Subsidiary or of any substantial part of its respective properties, (2) makes an assignment for the benefit of creditors or (3) admits in writing its inability to pay its debts generally as they become due, or (v) the Company, Parent or any Significant Subsidiary takes any corporate action in furtherance of any such actions in this paragraph (h).

 

The Company shall deliver to the Trustee within five Business Days after the occurrence thereof, written notice, in the form of an Officers’ Certificate, of any Default, its status and what action the Company is taking or proposes to take with respect thereto.  Unless the Corporate Trust Office of the Trustee has received written notice of an Event of Default of the nature described in this Section 501, the Trustee shall not be deemed to have knowledge of such Event of Default for the purposes of Article Five or for any other purpose.

 

Section 502.  Acceleration of Maturity; Rescission and Annulment.

 

If an Event of Default (other than an Event of Default specified in Sections 501(g) and (h)), shall occur and be continuing, the Trustee or the Holders of not less than 25% in aggregate principal amount of the Outstanding Securities may, and the Trustee at the request of the Holders of not less than 25% in aggregate principal amount of the Outstanding Securities shall, declare all unpaid principal of, premium, if any, and accrued interest on all the Securities to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by the Holders of the Securities); provided that so long as the Bank Credit Agreement is in effect, such declaration shall not become effective until the earlier of (a) five Business Days after receipt of such notice of acceleration from the Holders or the Trustee by the agent under the Bank Credit Agreement or (b) acceleration of the Indebtedness under the Bank Credit Agreement.  Thereupon the Trustee may, at its discretion, proceed to protect and enforce the rights of the Holders of the Securities by appropriate judicial proceeding.  If an Event of Default specified in clause (g) or (h) of Section 501 occurs and is continuing, then all the Securities shall ipso facto become and be immediately due and payable, in an amount equal to the principal amount of the Securities, together with accrued and unpaid interest, if any, to the date the Securities become due and payable, without any declaration or other

 

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act on the part of the Trustee or any Holder.  The Trustee or, if notice of acceleration is given by the Holders, the Holders shall give notice to the agent under the Bank Credit Agreement of any such acceleration.

 

At any time after such declaration of acceleration has been made but before a judgment or decree for payment of the money due has been obtained by the Trustee, the Holders of a majority in aggregate principal amount of the Outstanding Securities, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if:

 

(a)                                                   the Company has paid or deposited with the Trustee a sum sufficient to pay

 

(i)                   all sums paid or advanced by the Trustee under this Indenture and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel,

 

(ii)                all overdue interest on all Securities,

 

(iii)             the principal of and premium, if any, on any Securities which have become due otherwise than by such declaration of acceleration and interest thereon at a rate borne by the Securities, and

 

(iv)            to the extent that payment of such interest is lawful, interest upon overdue interest at the rate borne by the Securities; and

 

(b)                                                   all Events of Default, other than the non-payment of principal of the Securities which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 513.

 

No such rescission shall affect any subsequent Default or impair any right consequent thereon provided in Section 513.

 

Section 503.  Collection of Indebtedness and Suits for Enforcement by Trustee.

 

The Company and each Guarantor covenant that if

 

(a)                                 default is made in the payment of any interest on any Security when such interest becomes due and payable and such default continues for a period of 30 days, or

 

(b)                                 default is made in the payment of the principal of or premium, if any, on any Security at the Stated Maturity thereof,

 

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the Company and any such Guarantor shall, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Securities, the whole amount then due and payable on such Securities for principal and premium, if any, and interest, with interest upon the overdue principal and premium, if any, and, to the extent that payment of such interest shall be legally enforceable, upon overdue installments of interest, at the rate borne by the Securities; and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 

If the Company or any Guarantor, as the case may be, fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may, subject to the provisions of Sections 602 and 606 hereof, institute a judicial proceeding for the collection of the sums so due and unpaid and may prosecute such proceeding to judgment or final decree, and may enforce the same against the Company or any Guarantor or any other obligor upon the Securities and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Company or any Guarantor or any other obligor upon the Securities, wherever situated.

 

If an Event of Default occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders under this Indenture, the Securities or the Guarantees by such appropriate private or judicial proceedings as the Trustee shall deem most effectual to protect and enforce such rights, including, seeking recourse against any Guarantor pursuant to the terms of any Guarantee, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein or therein, or to enforce any other proper remedy, including, without limitation, seeking recourse against any Guarantor pursuant to the terms of a Guarantee, or to enforce any other proper remedy, subject however to Section 512.

 

Section 504.  Trustee May File Proofs of Claim.

 

In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor, including each Guarantor, upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise,

 

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(a)                                                   to file and prove a claim for the whole amount of principal, and premium, if any, and interest owing and unpaid in respect of the Securities and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding, and

 

(b)                                                   to collect and receive any moneys, securities or other property payable or deliverable upon any conversion or exchange of Securities or upon any such claims and to distribute the same;

 

and any custodian, in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 606.

 

Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

Section 505.  Trustee May Enforce Claims without Possession of Securities.

 

All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name and as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered.

 

Section 506.  Application of Money Collected.

 

Any money collected by the Trustee pursuant to this Article Five or otherwise on behalf of the Holders or the Trustee pursuant to this Article Five or through any proceeding or any arrangement or restructuring in anticipation or in lieu of any proceeding contemplated by this Article Five shall be applied, subject to applicable law, in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal, premium, if any, or interest, upon

 

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presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

 

FIRST:  To the payment of all amounts due the Trustee under Section 606;

 

SECOND:  To the payment of the amounts then due and unpaid upon the Securities for principal, premium, if any, and interest, in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal, premium, if any, and interest; and

 

THIRD:  The balance, if any, to the Person or Persons entitled thereto, including the Company, provided that all sums due and owing to the Holders and the Trustee have been paid in full as required by this Indenture.

 

Section 507.  Limitation on Suits.

 

No Holder of any Securities shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless

 

(a)                                                   such Holder has previously given written notice to the Trustee of a continuing Event of Default;

 

(b)                                                   the Holders of not less than 25% in principal amount of the Outstanding Securities shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as trustee hereunder;

 

(c)                                                    such Holder or Holders have offered to the Trustee an indemnity satisfactory to the Trustee against the costs, expenses and liabilities to be incurred in compliance with such request;

 

(d)                                                   the Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and

 

(e)                                                    no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount of the Outstanding Securities;

 

it being understood and intended that no one or more Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture or any Guarantee to affect, disturb or prejudice the rights of any other Holders, or to obtain or to seek to obtain priority or preference over any other Holders or to enforce any right under

 

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this Indenture, except in the manner provided in this Indenture or any Guarantee and for the equal and ratable benefit of all the Holders.

 

Section 508.  Unconditional Right of Holders to Receive Principal, Premium and Interest.

 

Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right on the terms stated herein, which is absolute and unconditional, to receive payment of the principal of, premium, if any, and (subject to Section 309) interest on such Security on the respective Stated Maturities expressed in such Security (or, in the case of redemption or repurchase, on the Redemption Date or repurchase date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder.

 

Section 509.  Restoration of Rights and Remedies.

 

If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture or the Guarantees and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case the Company, each of the Guarantors, the Trustee and the Holders shall, subject to any determination in such proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted.

 

Section 510.  Rights and Remedies Cumulative.

 

No right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

Section 511.  Delay or Omission Not Waiver.

 

No delay or omission of the Trustee or of any Holder of any Security to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.  Every right and remedy given by this Article Five or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

 

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Section 512.  Control by Holders.

 

The Holders of not less than a majority in aggregate principal amount of the Outstanding Securities shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, provided that

 

(a)                                                   such direction shall not be in conflict with any rule of law or with this Indenture, the Securities or any Guarantee or expose the Trustee to personal liability; and

 

(b)                                                   the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction.

 

Section 513.  Waiver of Past Defaults.

 

The Holders of not less than a majority in aggregate principal amount of the Outstanding Securities (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, Securities) may on behalf of the Holders of all the Securities waive any past Default hereunder and its consequences, except a Default or Event of Default

 

(a)                                                   in the payment of the principal of, premium, if any, or interest (including Additional Interest) on any Security; or

 

(b)                                                   in respect of a covenant or a provision hereof which under Article Nine cannot be modified or amended without the consent of a higher percentage of the principal amount of the Outstanding Securities affected.

 

Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

 

Section 514.  Undertaking for Costs.

 

All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this

 

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Section 514 shall not apply to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in principal amount of the Outstanding Securities, or to any suit instituted by any Holder for the enforcement of the payment of the principal of, premium, if any, or interest on any Security on or after the respective Stated Maturities expressed in such Security (or, in the case of redemption, on or after the Redemption Date).

 

Section 515.  Waiver of Stay, Extension or Usury Laws.

 

Each of the Company and any Guarantor covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury or other law wherever enacted, now or at any time hereafter in force, which would prohibit or forgive the Company or any Guarantor from paying all or any portion of the principal of, premium, if any, or interest on the Securities contemplated herein or in the Securities or which may affect the covenants or the performance of this Indenture; and each of the Company and any Guarantor (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted.

 

ARTICLE SIX
  
 THE TRUSTEE

 

Section 601.  Notice of Defaults.

 

Within 30 days after the Trustee has received written notice from the Company of the occurrence of any Default under Section 501 hereof, the Trustee shall transmit by mail to all Holders, as their names and addresses appear in the Security Register, notice of such Default, unless such Default shall have been cured or waived; provided, however, that, except in the case of a Default in the payment of the principal of, premium, if any, or interest on any Security, the Trustee shall be protected in withholding such notice if and so long as a trust committee of Responsible Officers of the Trustee in good faith determines that the withholding of such notice is in the interest of the Holders.

 

Section 602.  Certain Rights of Trustee.

 

Subject to the provisions of Trust Indenture Act Sections 315(a) through 315(d):

 

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(a)                                                   the Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of Indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

 

(b)                                                   any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution;

 

(c)                                                    the Trustee may consult with counsel and any written advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon in accordance with such advice or Opinion of Counsel;

 

(d)                                                   the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture, the Securities or the Guarantees at the request or direction of any of the Holders pursuant to this Indenture, the Securities or the Guarantees unless such Holders shall have offered to the Trustee security or indemnity satisfactory to the Trustee against the costs, expenses and liabilities which might be incurred therein or thereby in compliance with such request or direction;

 

(e)                                                    the Trustee shall not be liable for any action taken or omitted by it in good faith and believed by it to be authorized or within the discretion, rights or powers conferred upon it by this Indenture other than any liabilities arising out of the negligence of the Trustee;

 

(f)                                                     the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, approval, appraisal, bond, debenture, note, coupon, security or other paper or document; provided, that the Trustee in its discretion may make such further inquiry or investigation into such facts or matters as it may deem fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney;

 

(g)                                                    the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder;

 

(h)                                                   no provision of this Indenture, the Securities or the Guarantees shall require the Trustee to expend or risk its own funds or otherwise incur any financial

 

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liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers;

 

(i)                               the Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company, except as otherwise provided herein;

 

(j)                              money held in trust by the Trustee need not be segregated from other funds except to the extent required by law, except as otherwise provided herein;

 

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

 

Section 603.  Trustee Not Responsible for Recitals, Dispositions of Securities or Application of Proceeds Thereof.

 

The recitals contained herein and in the Securities, except the Trustee’s certificates of authentication, shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness.  The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities, except that the Trustee represents that it is duly authorized to execute and deliver this Indenture, authenticate the Securities and perform its obligations hereunder and that the statements made by it in any Statement of Eligibility and Qualification on Form T-1 supplied to the Company are true and accurate subject to the qualifications set forth therein.  The Trustee shall not be accountable for the use or application by the Company of Securities or the proceeds thereof.

 

Section 604.  Trustee and Agents May Hold Securities; Collections; etc.

 

The Trustee, any Paying Agent, Security Registrar or any other agent of the Company, in its individual or any other capacity, may become the owner or pledgee of Securities, with the same rights it would have if it were not the Trustee, Paying Agent, Security Registrar or such other agent and, subject to Trust Indenture Act Sections 310 and 311, may otherwise deal with the Company and receive, collect, hold and retain collections from the Company with the same rights it would have if it were not the Trustee, Paying Agent, Security Registrar or such other agent.

 

Section 605.  Money Held in Trust.

 

All moneys received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be

 

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segregated from other funds except to the extent required by mandatory provisions of law.  Except for funds or securities deposited with the Trustee pursuant to Article Four, the Trustee may invest all moneys received by the Trustee, until used or applied as herein provided, in Temporary Cash Investments in accordance with the written directions of the Company.  The Trustee shall not be liable for any losses incurred in connection with any investments made in accordance with this Section 605, unless the Trustee acted with gross negligence or in bad faith.  With respect to any losses on investments made under this Section 605, the Company is liable for the full extent of any such loss.

 

Section 606.  Compensation and Indemnification of Trustee and Its Prior Claim.

 

The Company covenants and agrees to pay to the Trustee from time to time, and the Trustee shall be entitled to, such compensation for all services rendered by it hereunder (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust) set forth in a letter agreement executed by the Company and the Trustee, as such agreement may be amended or supplemented, and the Company covenants and agrees to pay or reimburse the Trustee and each predecessor Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by or on behalf of it in accordance with any of the provisions of this Indenture (including the reasonable compensation and the expenses and disbursements of its counsel and of all agents and other persons not regularly in its employ) except any such expense, disbursement or advance as may arise from its negligence or bad faith.  The Company also covenants to indemnify the Trustee and each predecessor Trustee for, and to hold it harmless against, any loss, liability, tax, assessment or other governmental charge (other than taxes applicable to the Trustee’s compensation hereunder) or expense incurred without negligence or bad faith on such Trustee’s part, arising out of or in connection with the acceptance or administration of this Indenture or the trusts hereunder and such Trustee’s duties hereunder, including enforcement of this Indenture and also including any liability which the Trustee may incur as a result of failure to withhold, pay or report any tax, assessment or other governmental charge, and the costs and expenses of defending itself against or investigating any claim of liability (whether asserted by any Holder, the Company or any other Person) in connection with the exercise or performance of any of its powers or duties under this Indenture.  The obligations of the Company under this Section 606 to compensate and indemnify the Trustee and each predecessor Trustee and to pay or reimburse the Trustee and each predecessor Trustee for expenses, disbursements and advances shall constitute an additional obligation hereunder and shall survive the satisfaction and discharge of this Indenture.

 

All payments and reimbursements pursuant to this Section 606 shall be made with interest at the rate borne by the Securities.

 

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As security for the performance of the obligations of the Company under this Section 606, the Trustee shall have a Lien prior to the Securities upon all property and funds held or collected by the Trustee, except funds held in trust for the payment of principal of (and premium, if any) or interest on particular Securities.  The Trustee’s right to receive payment of any amounts due under this Section 606 shall not be subordinate to any other liability or indebtedness of the Company, and the Securities shall be subordinate to the Trustee’s right to receive such payment.

 

Section 607.  Conflicting Interests.

 

The Trustee shall comply with the provisions of Section 310(b) of the Trust Indenture Act.

 

Section 608.  Corporate Trustee Required; Eligibility.

 

There shall at all times be a Trustee hereunder which shall be eligible to act as trustee under Trust Indenture Act Section 310(a)(1) and which shall have a combined capital and surplus of at least $250,000,000, to the extent there is an institution eligible and willing to serve.  The Trustee shall be a participant in the Depository Trust Company and FAST distribution systems.  If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of federal, state, territorial or District of Columbia supervising or examining authority, then for the purposes of this Section 608, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.  If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section 608, the Trustee shall resign immediately in the manner and with the effect hereinafter specified in this Article Six.  The Corporate Trust Office shall initially be located at Two James Center, 1021 East Cary Street, 18th Floor, Richmond, Virginia 23219.

 

Section 609.  Resignation and Removal; Appointment of Successor Trustee.

 

(a)                                                   No resignation or removal of the Trustee and no appointment of a successor trustee pursuant to this Article Six shall become effective until the acceptance of appointment by the successor trustee under Section 610.

 

(b)                                                   The Trustee, or any trustee or trustees hereafter appointed, may at any time resign by giving written notice thereof to the Company.  Upon receiving such notice of resignation, the Company shall promptly appoint a successor trustee by written instrument executed by authority of the Board of Directors of the Company, a copy of which shall be delivered to the resigning Trustee and a copy to the successor trustee.  If an instrument of acceptance by a successor trustee shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee

 

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may, or any Holder who has been a bona fide Holder of a Security for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor trustee.  Such court may thereupon, after such notice, if any, as it may deem proper, appoint a successor trustee.

 

(c)                                                    The Trustee may be removed at any time by an Act of the Holders of not less than a majority in aggregate principal amount of the Outstanding Securities, delivered to the Trustee and to the Company.

 

(d)                                                   If at any time:

 

(1)                                 the Trustee shall fail to comply with the provisions of Trust Indenture Act Section 310(b) after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least six months, or

 

(2)                                 the Trustee shall cease to be eligible under Section 608 and shall fail to resign after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least six months, or

 

(3)                                 the Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation,

 

then, in any case, (i) the Company by a Board Resolution may remove the Trustee, or (ii) subject to Section 514, the Holder of any Security who has been a bona fide Holder of a Security for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee.  Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.

 

(e)                                                    If the Trustee shall be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause, the Company, by a Board Resolution, shall promptly appoint a successor trustee.  If, within one year after such removal or incapability, or the occurrence of such vacancy, a successor trustee shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding Securities delivered to the Company and the retiring Trustee, the successor trustee so appointed shall, forthwith upon its acceptance of such appointment, become the successor trustee and supersede the successor trustee appointed by the Company.  If no successor

 

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trustee shall have been so appointed by the Company or the Holders of the Securities and accepted appointment in the manner hereinafter provided, the Holder of any Security who has been a bona fide Holder for at least six months may, subject to Section 514, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee.

 

(f)                                                     The Company shall give notice of each resignation and each removal of the Trustee and each appointment of a successor trustee by mailing written notice of such event by first-class mail, postage prepaid, to the Holders of Securities as their names and addresses appear in the Security Register.  Each notice shall include the name of the successor trustee and the address of its Corporate Trust Office or agent hereunder.

 

Section 610.  Acceptance of Appointment by Successor.

 

Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee as if originally named as Trustee hereunder; but, nevertheless, on the written request of the Company or the successor trustee, upon payment of its charges then unpaid, such retiring Trustee shall, pay over to the successor trustee all moneys at the time held by it hereunder and shall execute and deliver an instrument transferring to such successor trustee all such rights, powers, duties and obligations.  Upon request of any such successor trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor trustee all such rights and powers.  Any Trustee ceasing to act shall, nevertheless, retain a prior claim upon all property or funds held or collected by such Trustee or such successor trustee to secure any amounts then due such Trustee pursuant to the provisions of Section 606.

 

No successor Trustee with respect to the Securities shall accept appointment as provided in this Section 610 unless at the time of such acceptance such successor trustee shall be eligible to act as trustee under the provisions of Trust Indenture Act Section 310(a) and this Article Six and shall have a combined capital and surplus of at least $250,000,000 and have a Corporate Trust Office or an agent selected in accordance with Section 608.

 

Upon acceptance of appointment by any successor Trustee as provided in this Section 610, the Company shall give notice thereof to the Holders of the Securities, by mailing such notice to such Holders at their addresses as they shall appear on the Security Register.  If the acceptance of appointment is substantially contemporaneous with the resignation, then the notice called for by the preceding sentence may be combined with the notice called for by Section 609.  If the Company fails to give such notice within

 

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10 days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be given at the expense of the Company.

 

Section 611.  Merger, Conversion, Consolidation or Succession to Business.

 

Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided such corporation shall be eligible under Trust Indenture Act Section 310(a) and this Article Six and shall have a combined capital and surplus of at least $250,000,000 and have a Corporate Trust Office or an agent selected in accordance with Section 608 without the execution or filing of any paper or any further act on the part of any of the parties hereto.

 

In case at the time such successor to the Trustee shall succeed to the trusts created by this Indenture any of the Securities shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor Trustee and deliver such Securities so authenticated; and, in case at that time any of the Securities shall not have been authenticated, any successor to the Trustee may authenticate such Securities either in the name of any predecessor hereunder or in the name of the successor trustee; and in all such cases such certificate shall have the full force which it is anywhere in the Securities or in this Indenture provided that the certificate of the Trustee shall have; provided that the right to adopt the certificate of authentication of any predecessor Trustee or to authenticate Securities in the name of any predecessor Trustee shall apply only to its successor or successors by merger, conversion or consolidation.

 

Section 612.  Preferential Collection of Claims Against Company.

 

If and when the Trustee shall be or become a creditor of the Company (or other obligor under the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of claims against the Company (or any such other obligor).  A Trustee who has resigned or been removed shall be subject to the Trust Indenture Act Section 311(a) to the extent indicated therein.

 

Section 613.  Identifying Information.

 

To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.  For a non-individual person such as a business entity, a charity, a trust or other legal entity, the Trustee will

 

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ask for documentation to verify its formation and existence as a legal entity.  The Trustee may also ask to see financial statements, licenses, and identification and authorization documents from individuals claiming authority to represent the entity or other relevant documentation.

 

ARTICLE SEVEN
                                                  
 HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

Section 701.  Company to Furnish Trustee Names and Addresses of Holders.

 

The Company shall furnish or cause to be furnished to the Trustee

 

(a)                                                   semiannually, not more than 15 days after each Regular Record Date, a list, in such form as the Trustee may reasonably require, of the names and addresses of the Holders as of such Regular Record Date; and

 

(b)                                                   at such other times as the Trustee may request in writing, within 30 days after receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished;

 

provided, however, that if and so long as the Trustee shall be the Security Registrar, no such list need be furnished.

 

Section 702.  Disclosure of Names and Addresses of Holders.

 

Holders may communicate pursuant to Trust Indenture Act Section 312(b) with other Holders with respect to their rights under this Indenture or the Securities, and the Trustee shall comply with Trust Indenture Act Section 312(b).  The Company, the Trustee, the Security Registrar and any other Person shall have the protection of Trust Indenture Act 312(c).  Every Holder of Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held accountable by reason of the disclosure of any information as to the names and addresses of the Holders in accordance with Trust Indenture Act Section 312, regardless of the source from which such information was derived, and that the Trustee shall not be held accountable by reason of mailing any material pursuant to a request made under Trust Indenture Act Section 312.

 

Section 703.  Reports by Trustee.

 

Within 60 days after May 15 of each year commencing with the first May 15 after the first issuance of Securities, the Trustee shall transmit by mail to all Holders, as

 

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their names and addresses appear in the Security Register, as provided in Trust Indenture Act Section 313(c), a brief report dated as of such May 15 in accordance with and to the extent required by Trust Indenture Act Section 313(a).

 

ARTICLE EIGHT
  
 CONSOLIDATION, MERGER,
 CONVEYANCE, TRANSFER OR LEASE

 

Section 801.  Company or Any Guarantor May Consolidate, etc., Only on Certain Terms.

 

(a)                                                   The Company shall not, in a single transaction or a series of related transactions, consolidate with or merge with or into any other Person or sell, assign, convey, transfer, lease or otherwise dispose of all or substantially all of its properties and assets to any Person or group of affiliated Persons, or permit any of its Subsidiaries to enter into any such transaction or transactions if such transaction or transactions, in the aggregate, would result in a sale, assignment, conveyance, transfer, lease or disposition of all or substantially all of the properties and assets of the Company and its Subsidiaries on a Consolidated basis to any other Person or group of affiliated Persons, unless at the time and after giving effect thereto:

 

(i)                                     either (1) the Company shall be the continuing corporation, or (2) the Person (if other than the Company) formed by such consolidation or into which the Company is merged or the Person which acquires by sale, assignment, conveyance, transfer, lease or disposition of all or substantially all of the properties and assets of the Company and its Subsidiaries on a Consolidated basis (the “Surviving Entity”) shall be a corporation duly organized and validly existing under the laws of the United States of America, any state thereof or the District of Columbia and such Person assumes, by a supplemental indenture in a form reasonably satisfactory to the Trustee, all the obligations of the Company under the Securities and this Indenture and the Registration Rights Agreement, and this Indenture and the Registration Rights Agreement shall remain in full force and effect;

 

(ii)                                  immediately before and immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing;

 

(iii)                               immediately before and immediately after giving effect to such transaction on a pro forma basis (on the assumption that the transaction occurred on the first day of the four-quarter period immediately prior to the

 

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consummation of such transaction with the appropriate adjustments with respect to the transaction being included in such pro forma calculation), the Company (or the Surviving Entity if the Company is not the continuing obligor under this Indenture) could incur $1.00 of additional Indebtedness under Section 1008 (other than Permitted Indebtedness);

 

(iv)                              each Guarantor, if any, unless it is the other party to the transactions described above, shall have by supplemental indenture confirmed that its Guarantee shall apply to such Person’s obligations under this Indenture and the Securities;

 

(v)                                 if any of the property or assets of the Company or any of its Subsidiaries would thereupon become subject to any Lien, the provisions of Section 1011 are complied with; and

 

(vi)                              the Company or the Surviving Entity shall have delivered, or caused to be delivered, to the Trustee, in form and substance reasonably satisfactory to the Trustee, an Officers’ Certificate and an Opinion of Counsel, each to the effect that such consolidation, merger, transfer, sale, assignment, lease or other transaction and the supplemental indenture in respect thereto comply with this Indenture and that all conditions precedent herein provided for relating to such transaction have been complied with.

 

(b)                                                   Each Guarantor shall not, and the Company shall not permit a Guarantor to, in a single transaction or series of related transactions merge or consolidate with or into any other corporation (other than the Company or any other Guarantor) or other entity, or sell, assign, convey, transfer, lease or otherwise dispose of all or substantially all of its properties and assets on a Consolidated basis to any entity (other than the Company or any other Guarantor) unless at the time and after giving effect thereto:

 

(i)                                     either (1) such Guarantor shall be the continuing corporation or (2) the entity (if other than such Guarantor) formed by such consolidation or into which such Guarantor is merged or the entity which acquires by sale, assignment, conveyance, transfer, lease or disposition the properties and assets of such Guarantor shall be a corporation duly organized and validly existing under the laws of the United States, any state thereof or the District of Columbia and shall expressly assume by an indenture supplemental hereto, executed and delivered to the Trustee, in a form reasonably satisfactory to the Trustee, all the obligations of such Guarantor under the Securities, the Guarantees, this Indenture and the Registration Rights Agreement;

 

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(ii)                                  immediately before and immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing; and

 

(iii)                               such Guarantor shall have delivered to the Trustee, in form and substance reasonably satisfactory to the Trustee, an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger, sale, assignment, conveyance, transfer, lease or disposition and such supplemental indenture comply with this Indenture, and thereafter all obligations of the predecessor shall terminate.

 

The provisions of this Section 801(b) shall not apply to any transaction (including any Asset Sale made in accordance with Section 1012) with respect to any Guarantor if the Guarantee of such Guarantor is released in connection with such transaction in accordance with Section 1013(b).

 

(c)  Notwithstanding the foregoing paragraphs (a) and (b), the Company may dissolve inactive Subsidiaries so long as the book value of such Subsidiary does not exceed $2,500,000.

 

Section 802.  Successor Substituted.

 

Upon any consolidation or merger, or any sale, assignment, conveyance, transfer, lease or disposition of all or substantially all of the properties and assets of the Company or any Guarantor in accordance with Section 801, the successor Person formed by such consolidation or into which the Company or such Guarantor, as the case may be, is merged or the successor Person to which such sale, assignment, conveyance, transfer, lease or disposition is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company or such Guarantor, as the case may be, under this Indenture, the Securities and/or such Guarantee, as the case may be, with the same effect as if such successor had been named as the Company or such Guarantor, as the case may be, herein, in the Securities and/or in such Guarantee, as the case may be.  When a successor assumes all the obligations of its predecessor under this Indenture, the Securities or a Guarantee, as the case may be, the predecessor shall be released from those obligations; provided that in the case of a transfer by lease, the predecessor shall not be released from the payment of principal and interest on the Securities or a Guarantee, as the case may be, and the Registration Rights Agreement.

 

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ARTICLE NINE
  
 SUPPLEMENTAL INDENTURES

 

Section 901.  Supplemental Indentures and Agreements without Consent of Holders.

 

Without the consent of any Holders, the Company and the Guarantors, when authorized by a Board Resolution and upon delivery to the Trustee of an Opinion of Counsel to the effect that such supplemental indentures or agreements are permitted under the Indenture, and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, or agreements or other instruments with respect to any Guarantee, in form and substance reasonably satisfactory to the Trustee, for any of the following purposes:

 

(a)                                                   to evidence the succession of another Person to the Company, any Guarantor or any other obligor upon the Securities, and the assumption by any such successor of the covenants of the Company or such Guarantor or obligor herein and in the Securities and in any Guarantee, in each case in compliance with the provisions of this Indenture;

 

(b)                                                   to add to the covenants of the Company, any Guarantor or any other obligor upon the Securities for the benefit of the Holders, or to surrender any right or power herein conferred upon the Company, any Guarantor or any other obligor upon the Securities, as applicable, herein, in the Securities or in any Guarantee;

 

(c)                                                    to cure any ambiguity, to correct or supplement any provision herein which may be defective or inconsistent with any other provision herein or in any Guarantee, or to make any other provisions with respect to matters or questions arising under this Indenture, the Securities or any Guarantee; provided that, in each case, such provisions shall not adversely affect the interests of the Holders;

 

(d)                                                   to comply with the requirements of the Commission in order to effect or maintain the qualification of this Indenture under the Trust Indenture Act, as contemplated by this Indenture or otherwise;

 

(e)                                                    to add a Guarantor pursuant to the requirements of Section 1013;

 

(f)                                                     to evidence and provide the acceptance of the appointment of a successor trustee hereunder;

 

(g)                                                    to mortgage, pledge, hypothecate or grant a security interest in favor of the Trustee for the benefit of the Holders as additional security for the payment and performance of the Indenture Obligations, in any property or assets, including any which are required to be mortgaged, pledged or hypothecated, or in which a security interest is required to be granted to the Trustee pursuant to this Indenture or otherwise; or

 

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(h)                                                   to provide for uncertificated Securities in place of or in addition to certificated Securities.

 

Section 902.  Supplemental Indentures and Agreements with Consent of Holders.

 

With the consent of the Holders of not less than a majority in aggregate principal amount of the Outstanding Securities, by Act of said Holders delivered to the Company, each Guarantor, and the Trustee, the Company, and each Guarantor (if a party thereto) when authorized by a Board Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto or agreements or other instruments with respect to any Guarantee in form and substance satisfactory to the Trustee for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders under this Indenture, the Securities or any Guarantee; provided, however, that no such supplemental indenture, agreement or instrument shall, without the consent of the Holder of each Outstanding Security affected thereby:

 

(a)                                                   change the Stated Maturity of the principal of, or any installment of interest on, any Security, or reduce the principal amount thereof or the rate of interest thereon or any premium payable upon the redemption thereof, or change the coin or currency in which the principal of any Security or any premium or the interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date) (other than the provisions of Section 1012);

 

(b)                                                   amend, change or modify the obligation of the Company to make and consummate a Change of Control Offer in the event of a Change of Control in accordance with Section 1015, including amending, changing or modifying any definitions with respect thereto;

 

(c)                                                    reduce the percentage in principal amount of the Outstanding Securities, the consent of whose Holders is required for any supplemental indenture, or the consent of whose Holders is required for any waiver or compliance with certain provisions of this Indenture or certain defaults hereunder and their consequences provided for in this Indenture or with respect to any Guarantee;

 

(d)                                                   modify any of the provisions of this Section 902 or Sections 513 or 1021, except to increase the percentage in principal amount of the Outstanding Securities, the consent of whose Holders is required for any such actions or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Security affected thereby;

 

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(e)                                                    except as otherwise permitted under Article Eight, consent to the assignment or transfer by the Company or any Guarantor of any of its rights and obligations under this Indenture; or

 

(f)                                                     amend or modify any of the provisions of this Indenture relating to the ranking of the Securities or any Guarantee in any manner adverse to the Holders of the Securities or any Guarantee;

 

provided, further that no such modification or amendment may without the consent of the holders of 66 2/3% of the Outstanding Securities affected thereby, amend, change or modify the obligation of the Company to make and consummate an Offer with respect to any Asset Sale of Asset Sales in accordance with Section 1012, including amending, changing or modifying any definitions with respect thereto.

 

Upon the written request of the Company and each Guarantor, accompanied by a copy of a Board Resolution authorizing the execution of any such supplemental indenture or Guarantee, and upon the filing with the Trustee of evidence of the consent of Holders as aforesaid, the Trustee shall, subject to Section 903, join with the Company and each Guarantor in the execution of such supplemental indenture or Guarantee.

 

It shall not be necessary for any Act of Holders under this Section 902 to approve the particular form of any proposed supplemental indenture or Guarantee or agreement or instrument relating to any Guarantee, but it shall be sufficient if such Act shall approve the substance thereof.

 

Section 903.  Execution of Supplemental Indentures and Agreements.

 

In executing, or accepting the additional trusts created by, any supplemental indenture, agreement or instrument permitted by this Article Nine or the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and (subject to Trust Indenture Act Section 315(a) through 315(d) and Section 602 hereof) shall be fully protected in relying upon, an Opinion of Counsel and an Officers’ Certificate stating that the execution of such supplemental indenture, agreement or instrument is authorized or permitted by this Indenture.  The Trustee may, but shall not be obligated to, enter into any such supplemental indenture, agreement or instrument which affects the Trustee’s own rights, duties or immunities under this Indenture, any Guarantee or otherwise.

 

Section 904.  Effect of Supplemental Indentures.

 

Upon the execution of any supplemental indenture under this Article Nine, this Indenture shall be modified in accordance therewith, and such supplemental indenture 

 

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shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder shall be bound thereby.

 

Section 905.  Conformity with Trust Indenture Act.

 

Every supplemental indenture executed pursuant to this Article Nine shall conform to the requirements of the Trust Indenture Act as then in effect.

 

Section 906.  Reference in Securities to Supplemental Indentures.

 

Securities authenticated and delivered after the execution of any supplemental indenture pursuant to this Article Nine may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture.  If the Company shall so determine, new Securities so modified as to conform, in the opinion of the Trustee and the Board of Directors, to any such supplemental indenture may be prepared and executed by the Company and each Guarantor and authenticated and delivered by the Trustee in exchange for Outstanding Securities.

 

ARTICLE TEN

COVENANTS

 

Each of the Company and Parent (solely with respect to each of the Designated SBG Subsidiaries and with respect to Sections 1006, 1007, 1014 and 1019) covenants and agrees that:

 

Section 1001.  Payment of Principal, Premium and Interest.

 

The Company shall duly and punctually pay the principal of, premium, if any, and interest on the Securities in accordance with the terms of the Securities and this Indenture.

 

Section 1002.  Maintenance of Office or Agency.

 

The Company shall maintain an office or agency where Securities may be presented or surrendered for payment.  The Company also shall maintain an office or agency where Securities may be surrendered for registration of transfer, redemption or exchange and where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served.  The Company shall give prompt written notice to the Trustee of the location and any change in the location of any such offices or agencies.  If at any time the Company shall fail to maintain any such required offices or agencies or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the office of the agent of the

 

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Trustee described above and the Company hereby appoints such agent as its agent to receive all such presentations, surrenders, notices and demands.

 

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

 

Section 1003.  Money for Security Payments to Be Held in Trust.

 

If the Company shall at any time act as its own Paying Agent, it shall, on or before each due date of the principal of, premium, if any, or interest on any of the Securities, segregate and hold in trust for the benefit of the Holders entitled thereto a sum sufficient to pay the principal, premium, if any, or interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided, and shall promptly notify the Trustee of its action or failure so to act.

 

If the Company is not acting as Paying Agent, the Company shall, before each due date of the principal of, premium, if any, or interest on any Securities, deposit with a Paying Agent a sum in same day funds sufficient to pay the principal, premium, if any, or interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless such Paying Agent is the Trustee) the Company shall promptly notify the Trustee of such action or any failure so to act.

 

If the Company is not acting as Paying Agent, the Company shall cause each Paying Agent other than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section 1003, that such Paying Agent shall:

 

(a)                                                   hold all sums held by it for the payment of the principal of, premium, if any, or interest on Securities in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided;

 

(b)                                                   give the Trustee notice of any Default by the Company or any Guarantor (or any other obligor upon the Securities) in the making of any payment of principal, premium, if any, or interest;

 

(c)                                                    at any time during the continuance of any such Default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent; and

 

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(d)                                                   acknowledge, accept and agree to comply in all aspects with the provisions of this Indenture relating to the duties, rights and disabilities of such Paying Agent.

 

The Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money.

 

In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor, including each Guarantor, upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee shall serve as the Paying Agent.

 

Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of, premium, if any, or interest on any Security and remaining unclaimed for two years after such principal and premium, if any, or interest has become due and payable shall promptly be paid to the Company on Company Request, or (if then held by the Company) shall be discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once, in The New York Times and The Wall Street Journal (national edition), notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining shall promptly be repaid to the Company.

 

Section 1004.  Corporate Existence.

 

Subject to Article Eight, the Company shall do or cause to be done all things necessary to preserve and keep in full force and effect the corporate existence and related rights and franchises (charter and statutory) of the Company and each Subsidiary; provided, however, that the Company shall not be required to preserve any such right or franchise or the corporate existence of any such Subsidiary if the Board of Directors of the Company shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries as a whole and that the loss

 

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thereof would not reasonably be expected to have a material adverse effect on the ability of the Company to perform its obligations hereunder; and provided, further, however, that the foregoing shall not prohibit a sale, transfer or conveyance of a Subsidiary or any of its assets in compliance with the terms of this Indenture.

 

Section 1005.  Payment of Taxes and Other Claims.

 

The Company shall pay or discharge or cause to be paid or discharged, on or before the date the same shall become due and payable, (a) all taxes, assessments and governmental charges levied or imposed upon the Company or any Subsidiary shown to be due on any return of the Company or any Subsidiary or otherwise assessed or upon the income, profits or property of the Company or any Subsidiary if failure to pay or discharge the same could reasonably be expected to have a material adverse effect on the ability of the Company or any Guarantor to perform its obligations hereunder and (b) all lawful claims for labor, materials and supplies, which, if unpaid, would by law become a Lien upon the property of the Company or any Subsidiary, except for any Lien permitted to be incurred under Section 1011 if failure to pay or discharge the same could reasonably be expected to have a material adverse effect on the ability of the Company or any Guarantor to perform its obligations hereunder; provided, however, that the Company shall not be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or claim whose amount, applicability or validity is being contested in good faith by appropriate proceedings properly instituted and diligently conducted and in respect of which appropriate reserves (in the good faith judgment of management of the Company) are being maintained in accordance with generally accepted accounting principles consistently applied.

 

Section 1006.  Maintenance of Properties.

 

(a) Property.  The Company and Parent shall cause all material properties owned by the Company, Parent or any Subsidiary or used or held for use in the conduct of its business or the business of any Subsidiary to be maintained and kept in good condition, repair and working order (ordinary wear and tear excepted) and supplied with all necessary equipment and shall cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Company or Parent may be consistent with sound business practice and necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided, however, that nothing in this Section 1006 shall prevent the Company or Parent from discontinuing the maintenance of any of such properties if such discontinuance is, in the judgment of the Company or Parent, desirable in the conduct of its business or the business of any Subsidiary and not reasonably expected to have a material adverse effect on the ability of the Company to perform its obligations hereunder.

 

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(b) Licenses.  The Company and Parent shall, and shall cause each of the Restricted Subsidiaries to (i) do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises (including material broadcast licenses for Owned Stations) and (ii) keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted.

 

Section 1007.  Insurance.

 

The Company and Parent shall, and shall cause each of the Restricted Subsidiaries to maintain, with financially sound and reputable insurance companies, insurance in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses operating in the same or similar locations, provided that the Company shall in any event maintain with respect to itself, each of its subsidiaries and each Owned Station, and shall use its reasonable best efforts to cause each Material Third-Party Licensee for each Contract Station (or the Person that owns the Capital Stock of such Material Third-Party Licensee) to maintain with respect to itself and such Contact Station, casualty insurance and insurance against such claims and damages with respect to defamation, libel, slander, privacy or other similar injury to person or reputation (including misappropriation of personal likeness) in such amounts that are customarily maintained by Persons engaged in the same or similar businesses operating in the same or similar locations.

 

Section 1008.  Limitation on Indebtedness.

 

(a)                                                   The Company shall not, and shall not permit any Restricted Subsidiary to, create, incur, assume or directly or indirectly guarantee or in any other manner become directly or indirectly liable for (“incur”) any Indebtedness (including Acquired Indebtedness), except that the Company may incur Indebtedness and a Guarantor may incur Permitted Subsidiary Indebtedness if, in each case, the Debt to Operating Cash Flow Ratio of the Company and the Restricted Subsidiaries at the time of the incurrence of such Indebtedness, after giving pro forma effect thereto, is 7:1 or less.

 

(b)                                                   The foregoing limitation shall not apply to the incurrence of any of the following (collectively, “Permitted Indebtedness”):

 

(i)                           (A) Indebtedness of the Company under the Bank Credit Agreement and (B) any Indebtedness incurred to refinance, restructure, replace or substitute the Company’s Indebtedness under the Bank Credit Agreement in an aggregate principal amount at any one time outstanding not to exceed an aggregate principal amount equal to (1) prior to the Refinancing Date, (a) the term loans outstanding under the Bank Credit Agreement as of the Issue Date plus (b) the delayed draw term loans that may be drawn under the Bank Credit Agreement as of the Issue Date plus (c) amounts committed as of

 

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the Issue Date under any revolving credit facility thereunder plus (d) additional borrowings the Company may request under the Bank Credit Agreement as of the Issue Date in accordance with the “accordion” feature thereof and (2) on and after the Refinancing Date, (a) the term loans outstanding under the Bank Credit Agreement as of the Refinancing Date plus (b) delayed draw term loans that may be drawn under the Bank Credit Agreement as of the Refinancing Date plus (c) amounts committed as of the Refinancing Date under any revolving credit facility thereunder plus (d) additional borrowings the Company may request under the Bank Credit Agreement as of the Refinancing Date in accordance with the “accordion” feature thereof;

 

(ii)                        Indebtedness of the Company pursuant to the Securities (other than any Additional Securities) and Indebtedness of any Guarantor pursuant to a Guarantee;

 

(iii)                     Indebtedness of any Guarantor consisting of a guarantee of the Company’s Indebtedness under the Bank Credit Agreement and the Existing Senior Notes;

 

(iv)                    Indebtedness of the Company or any Restricted Subsidiary outstanding on the Issue Date other than any Indebtedness incurred pursuant to clause (i);

 

(v)                       Indebtedness of the Company owing to a Restricted Subsidiary; provided that any Indebtedness of the Company owing to a Restricted Subsidiary that is not a Guarantor is made pursuant to an intercompany note in the form attached to this Indenture as Exhibit E and is subordinated in right of payment from and after such time as the Securities shall become due and payable (whether at Stated Maturity, acceleration or otherwise) to the payment and performance of the Company’s obligations under the Securities; provided, further, that any disposition, pledge or transfer of any such Indebtedness to a Person (other than a disposition, pledge or transfer to a Wholly Owned Restricted Subsidiary or a pledge to or for the benefit of the lenders under the Bank Credit Agreement) shall be deemed to be an incurrence of such Indebtedness by the obligor not permitted by this clause (v);

 

(vi)                    Indebtedness of a Wholly Owned Restricted Subsidiary owing to the Company or another Wholly Owned Restricted Subsidiary; provided that, with respect to Indebtedness owing to a Wholly Owned Restricted Subsidiary that is not a Guarantor, (1) any such Indebtedness is made pursuant to an intercompany note in the form attached to this Indenture as Exhibit E and (2) any such Indebtedness shall be subordinated in right of payment from and after such time as the obligations under the Guarantee by such Wholly Owned Restricted Subsidiary shall become due and payable to the payment and performance of such Wholly Owned Restricted Subsidiary’s obligations under its Guarantee; provided, further, that (1) any disposition, pledge or transfer of any such Indebtedness to a Person (other than a disposition, pledge or transfer to the Company or a Wholly Owned Restricted Subsidiary or pledge to or for the benefit of the lenders under 

 

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the Bank Credit Agreement) shall be deemed to be an incurrence of such Indebtedness by the obligor not permitted by this clause (vi) and (2) any transaction pursuant to which any Wholly Owned Restricted Subsidiary, which has Indebtedness owing to the Company or any other Wholly Owned Restricted Subsidiary, ceases to be a Wholly Owned Restricted Subsidiary shall be deemed to be the incurrence of Indebtedness by such Wholly Owned Restricted Subsidiary that is not permitted by this clause (vi);

 

(vii)                 (a) Indebtedness pursuant to guarantees of any Restricted Subsidiary made in accordance with the provisions of Section 1013 and (b) guarantees by the Company or any Restricted Subsidiary of Indebtedness of third parties substantially all of the operations of which are pursuant to one or more Local Marketing Agreements with one or more of the Parent, the Company or any Restricted Subsidiary;

 

(viii)              Indebtedness pursuant to obligations of the Company entered into in the ordinary course of business and not for speculative purposes pursuant to Interest Rate Agreements designed to protect the Company against fluctuations in interest rates in respect of the Company’s Indebtedness;

 

(ix)                    Indebtedness incurred pursuant to any renewals, extensions, substitutions, refundings, refinancings or replacements (collectively, a “refinancing”) of any Indebtedness described in Section 1008(a) and clauses (ii), (iii), (iv) and (v) above, including any successive refinancings in an aggregate principal amount (or if issued with original issue discount, an aggregate issue price) not in excess of the aggregate principal amount of such Indebtedness so refinanced, plus the lesser of (I) the stated amount of any premium, interest or other payment required to be paid in connection with such a refinancing pursuant to the terms of the Indebtedness being refinanced or (II) the amount of premium, interest or other payment actually paid at such time to refinance the Indebtedness, plus, in either case, the amount of expenses of the Company incurred in connection with such refinancing and (A) in the case of Subordinated Indebtedness such new Indebtedness is expressly subordinated in right of payment to the Securities or the Guarantees, as the case may be, at least to the same extent as the Subordinated Indebtedness to be refinanced and (B) in the case of Pari Passu Indebtedness or Subordinated Indebtedness, such refinancing does not reduce the Average Life to Stated Maturity or the Stated Maturity of such Indebtedness;

 

(x)                       Indebtedness created due to a change in generally accepted accounting principles of the United States, as applied to the Company and the Restricted Subsidiaries, or international financial reporting standards, should such standards become applicable to the Company and the Restricted Subsidiaries;

 

(xi)                    Indebtedness represented by Capital Lease Obligations, mortgage financings or purchase money obligations, in each case, incurred for the purpose of financing all or any part of the purchase price, or cost of construction or improvement, of 

 

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property (real or personal), plant or equipment used in the business of the Company or any of the Restricted Subsidiaries, and any renewals, extensions, substitutions, refinancings, or replacements of such Indebtedness, in an aggregate principal amount not to exceed $150,000,000 at any time outstanding; and

 

(xii)                 Indebtedness of the Company in addition to that described in clauses (i) through (xi) above, and any renewals, extensions, substitutions, refinancings, or replacements of such Indebtedness, so long as the aggregate principal amount of all such Indebtedness shall not exceed $300,000,000 at any one time outstanding.

 

In the event that Indebtedness meets the criteria of more than one of the types of Indebtedness described in the subsections (a) and (b) of this Section 1008, the Company, in its sole discretion, shall classify such item of Indebtedness on the date of incurrence and may later reclassify such item of Indebtedness in any manner that complies with this covenant and only be required to include the amount and type of such Indebtedness in one of such clauses; provided that all Indebtedness outstanding on the Issue Date under the Bank Credit Agreement shall be deemed incurred under subsection (b)(i) and not subsections (a) or (b)(iv) of this Section 1008 and may not later be reclassified.

 

Section 1009.  Limitation on Restricted Payments.

 

(a)                                                   The Company shall not, and shall not permit any Restricted Subsidiary to, directly or indirectly:

 

(i)                           declare or pay any dividend on, or make any distribution to holders of, any of the Company’s Equity Interests (other than dividends or distributions payable solely in its Qualified Equity Interests);

 

(ii)                        purchase, redeem or otherwise acquire or retire for value, directly or indirectly, any Equity Interest of the Company or any Affiliate thereof including any Subsidiary (except Equity Interests held by the Company or a Wholly Owned Restricted Subsidiary that is a Guarantor);

 

(iii)                     make any principal payment on, or repurchase, redeem, defease, retire or otherwise acquire for value, prior to any scheduled principal payment, sinking fund or maturity, any Subordinated Indebtedness;

 

(iv)                    declare or pay any dividend or distribution on any Equity Interests of any Restricted Subsidiary to any Person (other than the Company or any of its Wholly Owned Restricted Subsidiaries that are Guarantors);

 

(v)                       incur, create or assume any guarantee of Indebtedness of any Affiliate (other than a Wholly Owned Restricted Subsidiary); or

 

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(vi)                    make any Investment in any Person (other than any Permitted Investments)

 

(any of the foregoing payments described in clauses (i) through (vi), other than any such action that is a Permitted Payment, collectively, “Restricted Payments”) unless after giving effect to the proposed Restricted Payment (the amount of any such Restricted Payment, if other than cash, as determined by the Board of Directors of the Company, whose determination shall be conclusive and evidenced by a Board Resolution), (1) no Default or Event of Default shall have occurred and be continuing and such Restricted Payment shall not be an event which is, or after notice or lapse of time or both, would be, an “event of default” under the terms of any Indebtedness of the Company or the Restricted Subsidiaries; (2) immediately after giving effect to such transaction on a pro forma basis, the Company could incur $1.00 of additional Indebtedness (other than Permitted Indebtedness) under Section 1008(a); and (3) the aggregate amount of all such Restricted Payments declared or made after the Issue Date does not exceed the sum of:

 

(A)                               an amount equal to the Company’s Cumulative Operating Cash Flow less 1.4 times the Company’s Cumulative Consolidated Interest Expense;

 

(B)                               the aggregate Net Cash Proceeds received after October 29, 2009 by the Company from capital contributions (other than from a Subsidiary) or from the issuance or sale (other than to Parent any of the Company’s Subsidiaries) of Qualified Equity Interests of the Company or, to the extent such net cash proceeds are actually contributed to the Company as equity, Parent (except, in each case, to the extent such proceeds are used to purchase, redeem or otherwise retire Equity Interests or Subordinated Indebtedness as set forth below);

 

(C)                               (i) to the extent that any Investment constituting a Restricted Payment (including an Investment in an Unrestricted Subsidiary) that was made after October 29, 2009 is sold or otherwise liquidated or repaid, 100% of the amount (to the extent not included in Cumulative Operating Cash Flow) equal to the Net Cash Proceeds or Fair Market Value of marketable securities received with respect to such Investment (less the cost of the disposition of such Investment and net of taxes) and (ii) any cash contribution received by the Company from the Parent as a result of any Investment constituting a Restricted Payment (including an Investment in an Unrestricted Subsidiary) that was made after October 29, 2009 (to the extent not included in Cumulative Operating Cash Flow); and

 

(D)                               $200,000,000.

 

(b)                                                   Notwithstanding the foregoing, and in the case of clauses (ii) through (vii) below, so long as there is no Default or Event of Default continuing, the foregoing

 

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provisions shall not prohibit the following actions (clauses (i) through (viii) being referred to as “Permitted Payments”):

 

(i)                           the payment of any dividend within 60 days after the date of declaration thereof, if at such date of declaration such payment would be permitted by the provisions of paragraph (a) of this Section 1009 and such payment shall be deemed to have been paid on such date of declaration for purposes of the calculation required by paragraph (a) of this Section 1009;

 

(ii)                        any transaction with an officer or director of the Company or Parent entered into in the ordinary course of business (including compensation or employee benefit arrangements with any officer or director of the Company or Parent, including the payment of longevity bonuses in accordance therewith);

 

(iii)                     the repurchase, redemption, or other acquisition or retirement of any of the Company’s or Parent’s Equity Interests in exchange for (including any such exchange pursuant to the exercise of a conversion right or privilege where in connection therewith cash is paid in lieu of the issuance of fractional shares or scrip), or out of the Net Cash Proceeds of, a substantially concurrent issue and sale for cash (other than to a Subsidiary of the Company) of the Company’s or Parent’s Qualified Equity Interests or from substantially concurrent contributions to the equity capital of the Company; provided that the Net Cash Proceeds from the issuance of such Qualified Equity Interests are excluded from clause (3)(B) of paragraph (a) of this Section 1009;

 

(iv)                    any repurchase, redemption, defeasance, retirement, refinancing or acquisition for value or payment of principal of any Subordinated Indebtedness in exchange for, or out of the net proceeds of, a substantially concurrent issuance and sale for cash (other than to Parent or any of the Company’s Subsidiaries) of any the Company’s or Parent’s Qualified Equity Interests or from substantially concurrent contributions to the equity capital of the Company, provided that the Net Cash Proceeds from the issuance of such Qualified Equity Interests are excluded from clause (3)(B) of paragraph (a) of this Section 1009;

 

(v)                       the repurchase, redemption, defeasance, retirement, refinancing or acquisition for value or payment of principal of any Subordinated Indebtedness (other than Disqualified Equity Interests) (a “refinancing”) through the issuance of new Subordinated Indebtedness of the Company, provided that any such new Indebtedness (1) shall be in a principal amount that does not exceed the principal amount so refinanced or, if such Subordinated Indebtedness provides for an amount less than the principal amount thereof to be due and payable upon a declaration or acceleration thereof, then such lesser amount as of the date of determination), plus the lesser of (I) the stated amount of any premium, interest or other payment required to be paid in connection with such a refinancing pursuant to the terms of the Indebtedness being refinanced or (II) the

 

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amount of premium, interest or other payment actually paid at such time to refinance the Indebtedness, plus, in either case, the amount of expenses of the Company incurred in connection with such refinancing; (2) has an Average Life to Stated Maturity greater than the remaining Average Life to Stated Maturity of the Securities; (3) has a Stated Maturity for its final scheduled principal payment later than the Stated Maturity for the final scheduled principal payment of the Securities; and (4) is expressly subordinated in right of payment to the Securities and the Guarantees, as the case may be, at least to the same extent as the Subordinated Indebtedness to be refinanced;

 

(vi)                    the distribution, dividend or other transfer of notes receivable (reflecting Indebtedness owed by any non-Designated SBG Subsidiary to the Company) in existence as of the Issue Date by the Company to Parent or any Unrestricted Subsidiary in connection with a Separation Transaction; provided that immediately after giving effect to such distribution, dividend or other transfer, on a pro forma basis the Company could incur $1.00 of additional Indebtedness under Section 1008(a) (other than Permitted Indebtedness);

 

(vii)                 payments of cash dividends, distributions, loans or other transfers by the Company to Parent in amounts required (but not in excess thereof) for Parent to pay, in each case without duplication: (a) foreign, federal, state and local incomes taxes; to the extent such income taxes are either (1) attributable to the income of the Company and the Restricted Subsidiaries and, to the extent of the amount actually received from its Unrestricted Subsidiaries, in amounts required to pay such taxes to the extent attributable to the income of such Unrestricted Subsidiaries or (2) attributable to the income of Parent but not any of its subsidiaries, provided that in the case of clause (1) above, the amount of such payments in any fiscal year does not exceed the amount that the Company and the Restricted Subsidiaries would be required to pay in respect of foreign, federal, state and local taxes for such fiscal year were the Company, the Restricted Subsidiaries and its Unrestricted Subsidiaries (to the extent described above) to pay such taxes separately from any such parent entity; (b)  fees and expenses (including franchise or similar taxes) required to maintain its corporate existence, customary salary, bonus and other benefits payable to, and indemnities provided on behalf of, officers, directors and employees of any direct or indirect parent of the Company, if applicable, and general corporate overhead expenses of any direct or indirect parent of the Company in each case to the extent such fees and expenses are attributable to the ownership or operation of the Company, if applicable, and the Restricted Subsidiaries (provided, that for so long as such direct or indirect parent owns no assets other than the Equity Interests in the Company or another direct or indirect parent of the Company, such fees and expenses shall be deemed for purposes of this clause (ix) to be so attributable to such ownership or operation); (c) amounts payable on Parent’s lease(s) for the corporate headquarters; (d) general and administrative overhead (except for longevity bonuses) of subsidiaries of Parent (other than Restricted Subsidiaries) so long as the aggregate payments pursuant to this clause (d)

 

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shall not in any fiscal year exceed an amount equal to $30,000,000 minus any payments made pursuant to clause (xii) of the definition of Permitted Investment; (e) capital expenditures of Parent so long as the amount of all payments pursuant to this clause (e) shall not exceed $25,000,000 in the aggregate; (f) unfunded commitments relating to operating divisions other than broadcast, so long as the amount of all payments pursuant to this clause (f) shall not exceed in the aggregate an amount equal to $100,000,000 minus any payments made pursuant to clause (xiii) of the definition of Permitted Investment; (g) cash dividends on the Parent’s shares of common stock in the aggregate amount per fiscal quarter not to exceed $0.20 per share for each share of common stock of the Parent outstanding as of the one record date for dividends payable in respect of such fiscal quarter (as such amount shall be appropriately adjusted for any stock splits, stock dividends, reverse stock splits, stock consolidations and similar transactions); and (h) repurchases of the Parent’s shares of common stock pursuant to open market or privately negotiated transactions in an aggregate amount not to exceed $185,000,000; and

 

(viii)              other Restricted Payments; provided, that, the Secured Debt to Oeprating Cash Flow Ratio of the Company and its Restricted Subsidiaries at the time of the making of any such Restricted Payment, after giving pro forma effect thereto, is no more than 3.75 to 1;

 

provided that, notwithstanding anything herein to the contrary, no Designated SBG Subsidiary shall be permitted to make any dividend or other distributions, in cash or property (other than in its additional ownership interests), to Parent or any subsidiary of Parent that directly owns the ownership interests of such Designated SBG Subsidiary, including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such ownership interests or any option, warrant or other right to acquire any such ownership interests.

 

Section 1010.  Limitation on Transactions with Affiliates.

 

The Company shall not, and shall not permit any of the Restricted Subsidiaries to, directly or indirectly, enter into or suffer to exist any transaction or series of related transactions (including, without limitation, the sale, purchase, exchange or lease of assets, property or services) with any Affiliate of the Company (other than the Company or a Wholly Owned Restricted Subsidiary) unless (a) such transaction or series of transactions is in writing and on terms that are no less favorable to the Company or such Restricted Subsidiary, as the case may be, than would be available in a comparable transaction in arm’s-length dealings with an unrelated third party, (b) with respect to any transaction or series of transactions involving aggregate payments in excess of $20,000,000, the Company delivers an Officers’ Certificate to the Trustee certifying that such transaction or series of related transactions complies with clause (a) above and such transaction or series of related transactions has been approved by a majority of the members of the Board of Directors of the Company (and approved by a majority of Independent Directors

 

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or, in the event there is only one Independent Director, by such Independent Director) and (c) with respect to any transaction or series of transactions involving aggregate payments in excess of $25,000,000, an opinion to the Company or such Restricted Subsidiary from an independent investment banking, accounting or appraisal firm of nationally recognized standing that the terms of such transaction are not materially less favorable than those that might reasonably have been obtained in a comparable transaction at such time on an arm’s-length basis from a Person that is not an Affiliate.  Notwithstanding the foregoing, this provision shall not apply to (A) any transaction with an officer or director of the Company or Parent entered into in the ordinary course of business (including compensation or employee benefit arrangements with any officer or director of the Company or Parent), (B) any transaction entered into by the Company or one of its Wholly Owned Restricted Subsidiaries with a Wholly Owned Restricted Subsidiary of the Company, (C) transactions in existence on the Issue Date and (D) any Restricted Payment permitted by Section 1009.

 

Section 1011.  Limitation on Liens.

 

(a) The Company shall not, and shall not permit any Restricted Subsidiary to, directly or indirectly, create, incur or affirm any Lien of any kind upon any of its property or assets (including any intercompany notes), now owned or acquired after the Issue Date, or any income or profits therefrom, except if the Securities are directly secured equally and ratably with (or prior to in the case of Liens with respect to Subordinated Indebtedness) the obligation or liability secured by such Lien, excluding, however, from the operation of the foregoing any of the Permitted Liens.

 

(b) Notwithstanding the foregoing, any Lien securing the Securities granted pursuant to this Section 1011 shall be automatically and unconditionally released and discharged upon (a) the release by the holders of the Indebtedness described above of their Lien on the property or assets of the Company or any Restricted Subsidiary (including any deemed release upon payment in full of all obligations under such Indebtedness), (b) any sale, exchange or transfer to any Person other than the Company or any Restricted Subsidiary of all or substantially all the assets of any Restricted Subsidiary creating such Lien in each case in accordance with the terms of this Indenture, (c) payment in full of the principal of, and accrued and unpaid interest, if any, on the Securities, or (d) a defeasance or discharge of the Securities in accordance with the procedures described under Article Four or Article Twelve.

 

(c)                                                    The following, collectively, shall constitute the “Permitted Liens”:

 

(i)                                                       any Lien existing as of the Issue Date (other than Liens permitted under clause (iii) below);

 

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(ii)                            any Lien arising by reason of (1) any judgment, decree or order of any court not constituting 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, decree or order shall not have been finally terminated or the period within which such proceedings may be initiated shall not have expired; (2) taxes not yet delinquent or which are being contested in good faith; (3) security for payment of workers’ compensation or other insurance; (4) good faith deposits in connection with tenders, leases, contracts (other than contracts for the payment of money); (5) zoning restrictions, easements, licenses, reservations, provisions, covenants, conditions, waivers, restrictions on the use of property or minor irregularities of title (and with respect to leasehold interests, mortgages, obligations, liens and other encumbrances incurred, created, assumed or permitted to exist and arising by, through or under a landlord or owner of the leased property, with or without consent of the lessee), none of which materially impairs the use of any parcel of property material to the operation of the business of the Company or any Subsidiary or the value of such property for the purpose of such business; (6) deposits to secure public or statutory obligations, or in lieu of surety or appeal bonds; (7) surveys, exceptions, title defects, encumbrances, reservations of, or rights of others for, rights of way, sewers, electric lines, telegraph or telephone lines and other similar purposes or zoning or other restrictions as to the use of real property not interfering with the ordinary conduct of the business of the Company or any of its Subsidiaries; or (8) operation of law in favor of mechanics, materialmen, laborers, employees or suppliers, incurred in the ordinary course of business for sums which are not yet delinquent or are being contested in good faith by negotiations or by appropriate proceedings which suspend the collection thereof;

 

(iii)                                                 any Lien now or hereafter existing on property of the Company or any of the Restricted Subsidiaries securing Indebtedness incurred pursuant to Section 1008(b)(i) and provided that the provisions of Section 1013 are complied with;

 

(iv)                                                any Lien securing Acquired Indebtedness created prior to (and not created in connection with or in contemplation of) the incurrence of such Indebtedness by the Company or any Restricted Subsidiary, in each case which Indebtedness is permitted under the provisions of Section 1008; provided that any such Lien only extends to the assets that were subject to such Lien securing such Acquired Indebtedness prior to the related transaction by the Company or its Subsidiaries;

 

(v)                                                   any Lien securing Permitted Subsidiary Indebtedness;

 

(vi)                                                Liens securing the Securities and Guarantees and any obligations owing to the Trustee under this Indenture;

 

(vii)                                             Liens on property of the Company or any Restricted Subsidiary with respect to obligations that do not exceed $50,000,000 at any one time outstanding;

 

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(viii)                                          any Lien on property of the Company or any Restricted Subsidiary securing Indebtedness incurred pursuant to Section 1008(b)(ii), provided that the provisions described under Section 1013 are complied with;

 

(ix)                                                any extension, renewal, refinancing or replacement, in whole or in part, of any Lien described in the foregoing clauses (a) and (c) through (h) so long as the Lien is limited to the same property and assets that secured the original Lien; and

 

(x)                                                   any Lien securing Indebtedness of the Company and any Restricted Subsidiary; provided, that the Secured Debt to Operating Cash Flow Ratio of the Company and the Restricted Subsidiaries at the time of the incurrence of such Indebtedness, after giving pro forma effect thereto and to the application of the proceeds, is 6.0:1 or less.

 

Section 1012.  Limitation on Sale of Assets.

 

(a)                                                   The Company shall not, and shall not permit any of the Restricted Subsidiaries to, directly or indirectly, consummate an Asset Sale unless (i) at least 75% of the consideration from such Asset Sale (exclusive of assumed senior Indebtedness to which the Company and the Restricted Subsidiaries have received a full and unconditional release from such liability in connection with such Asset Sale) is received in cash and (ii) the Company or such Restricted Subsidiary receives consideration at the time of such Asset Sale at least equal to the Fair Market Value of the shares or assets sold (other than in the case of an involuntary Asset Sale, as determined by the Board of Directors of the Company and evidenced in a Board Resolution or in connection with an Asset Swap, the Fair Market Value as determined in writing by a nationally recognized investment banking or appraisal firm); provided, however, that in the event that the Company or any Restricted Subsidiary engages in an Asset Sale with any third party and receives in consideration therefor, or simultaneously with such Asset Sale enters into, a Local Marketing Agreement with such third party or any affiliate thereof, the Fair Market Value of such Local Marketing Agreement (as determined in writing by a nationally recognized investment banking or appraisal firm) shall be deemed cash and considered when determining whether such Asset Sale complies with the foregoing clauses (i) and (ii).  Notwithstanding the foregoing, clause (i) of the preceding sentence shall not be applicable to any Asset Swap.  Any Designated Noncash Consideration received by the Company or any Restricted Subsidiary in an Asset Sale shall be deemed cash for purposes of clause (i) of this provision.

 

(b)                                                   If all or a portion of the Net Cash Proceeds of any Asset Sale are required to be applied (by the terms of such secured Indebtedness) to permanently repay any secured Indebtedness that is secured by a Permitted Lien, the Company and the Restricted Subsidiaries may apply such Net Cash Proceeds to the repayment thereof within 12 months of the Asset Sale. If all or a portion of the Net Cash Proceeds of any

 

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Asset Sale are not required to be applied to repay permanently any secured Indebtedness that is secured by a Permitted Lien then outstanding as required by the terms thereof, or the Company determines not to apply such Net Cash Proceeds to the permanent prepayment of such secured Indebtedness that is secured by a Permitted Lien or if no such secured Indebtedness that is secured by a Permitted Lien that by its terms requires the repayment thereof is then outstanding, then the Company may, within 12 months of the Asset Sale, (1) invest the Net Cash Proceeds in properties and assets that (as determined by the Board of Directors) replace the properties and assets that were the subject of the Asset Sale or in properties and assets that will be used in any businesses conducted or proposed to be conducted (as described in the Offering Memorandum) by the Company or the Restricted Subsidiaries on the Issue Date or reasonably related thereto, (2) permanently repay any secured Indebtedness that is secured by a Permitted Lien or (3) repay senior Indebtedness of the Company or any Guarantor (including the Securities and related Guarantees), so long as the Company or such Guarantor equally and ratably reduce a pro rata principal amount of the Securities (A) through open market purchases (provided that such purchases are at or above 100% of the principal amount thereof), (B) by redeeming the Securities if the Securities are then redeemable as provided in Section 1101 or (C) by making an offer (in accordance with the procedures set forth below for an Offer) to all Holders of the Securities to purchase at a purchase price equal to 100%  of the principal amount thereof, plus accrued and unpaid interest, if any, a pro rata principal amount of the Securities; provided, however, that the Company or the applicable Restricted Subsidiary shall be deemed to have complied with this clause (b) if, within 12 months of such Asset Sale, the Company or the applicable Restricted Subsidiary shall have commenced and not completed or abandoned an expenditure or Investment, or a binding agreement with respect to an expenditure or Investment , in compliance with this clause (b), and that expenditure or Investment is substantially completed within a date that is 12 months and 180 days after the date of such Asset Sale.  The amount of such Net Cash Proceeds not used or invested as set forth in the first two sentence of this clause (b) constitutes “Excess Proceeds.” Pending the final application of any Net Cash Proceeds pursuant to this clause (b), the Company or the applicable Restricted Subsidiary may apply such Net Cash Proceeds temporarily to reduce Indebtedness outstanding under a revolving credit facility or otherwise invest such Net Cash Proceeds in any manner not prohibited by this Indenture.

 

(c)                                                    Within 30 days after the aggregate amount of Excess Proceeds exceeds $50,000,000, the Company shall apply the Excess Proceeds to the repayment of the Securities and, at the option of the Company, any Pari Passu Indebtedness required to be repurchased under the instrument governing such Pari Passu Indebtedness as follows:  (i) the Company shall make an offer to purchase (an “Offer”) from all Holders of the Securities in accordance with the procedures set forth in this Indenture in the maximum principal amount (expressed as a multiple of $1,000) of Securities that may be purchased out of an amount (the “Security Amount”) equal to the product of such Excess Proceeds

 

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multiplied by a fraction, the numerator of which is the outstanding principal amount of the Securities, and the denominator of which is the sum of the outstanding principal amount of the Securities and such Pari Passu Indebtedness (subject to proration in the event such amount is less than the aggregate Offered Price of all Securities tendered) and (ii) to the extent required by such Pari Passu Indebtedness to permanently reduce the principal amount of such Pari Passu Indebtedness, the Company shall make an offer to purchase or otherwise repurchase or redeem Pari Passu Indebtedness (a “Pari Passu Offer”) in an amount (the “Pari Passu Debt Amount”) equal to the excess of the Excess Proceeds over the Security Amount; provided that in no event shall the Pari Passu Debt Amount exceed the principal amount of such Pari Passu Indebtedness plus the amount of any premium required to be paid to repurchase such Pari Passu Indebtedness.  The offer price shall be payable in cash in an amount equal to 100% of the principal amount of the Securities plus accrued and unpaid interest, if any, to the date (the “Offer Date”) such Offer is consummated (the “Offered Price”), in accordance with the procedures set forth in this Indenture.  To the extent that the aggregate Offered Price of the Securities tendered pursuant to the Offer is less than the Security Amount relating thereto or the aggregate amount of Pari Passu Indebtedness that is purchased is less than the Pari Passu Debt Amount (the amount of such shortfall, if any, constituting a “Deficiency”), the Company shall use such Deficiency in the business of the Company and the Restricted Subsidiaries.  Upon completion of the purchase of all the Securities tendered pursuant to an Offer and repurchase of the Pari Passu Indebtedness pursuant to a Pari Passu Offer, the amount of Excess Proceeds, if any, shall be reset at zero.  The Company may make an Offer before the end of the 366 days and/or in an amount of less than $50,000,000.

 

(d)                                                   Whenever the Excess Proceeds received by the Company exceed $50,000,000, such Excess Proceeds shall be set aside by the Company in a separate account pending (i) deposit with the depositary or a Paying Agent of the amount required to purchase the Securities or Pari Passu Indebtedness tendered in an Offer or a Pari Passu Offer, (ii) delivery by the Company of the Offered Price to the Holders of the Securities or Pari Passu Indebtedness tendered in an Offer or a Pari Passu Offer and (iii) application, as set forth above, of Excess Proceeds in the business of the Company and the Restricted Subsidiaries.  Such Excess Proceeds may be invested in Temporary Cash Investments, provided that the maturity date of any such Investment made after the amount of Excess Proceeds exceeds $50,000,000 shall not be later than the Offer Date.  The Company shall be entitled to any interest or dividends accrued, earned or paid on such Temporary Cash Investments, provided that the Company shall not withdraw such interest from the separate account if an Event of Default has occurred and is continuing.

 

(e)                                                    If the Company becomes obligated to make an Offer pursuant to clause (c) above, the Securities shall be purchased by the Company, at the option of the Holder thereof, in whole or in part in amounts of $2,000 or an integral multiple of $1,000 in excess thereof, on a date that is not earlier than 45 days and not later than 60 days from

 

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the date the notice is given to Holders, or such later date as may be necessary for the Company to comply with the requirements under the Exchange Act, subject to proration in the event the Security Amount is less than the aggregate Offered Price of all Securities tendered.

 

(f)                                                     The Company shall comply with the applicable tender offer rules, including Rule 14e-1 under the Exchange Act, and any other applicable securities laws or regulations in connection with an Offer, provided that to the extent that the provisions of any such securities laws or regulations conflict with any provisions of such an Offer, the Company shall comply with those securities laws and regulations and shall not be deemed to have breached its obligations under any provisions of such an Offer by virtue of such conflict.

 

(g)                                                    The Company shall not, and shall not permit any Restricted Subsidiary to, create or permit to exist or become effective any restriction (other than restrictions existing under Indebtedness as in effect on the Issue Date as such Indebtedness may be refinanced from time to time, provided that such restrictions are no less favorable to the Holders of Securities than those existing on the Issue Date) that would materially impair the ability of the Company to make an Offer to purchase the Securities or, if such Offer is made, to pay for the Securities tendered for purchase.

 

(h)                                                   Subject to paragraph (f) above, within 30 days after the date on which the amount of Excess Proceeds equals or exceeds $50,000,000, the Company shall send or cause to be sent by first-class mail, postage prepaid, to the Trustee and to each Holder of the Securities, at his address appearing in the Security Register, a notice stating or including:

 

(1)                                 that the Holder has the right to require the Company to repurchase, subject to proration, such Holder’s Securities at the Offered Price;

 

(2)                                 the Offer Date;

 

(3)                                 the instructions a Holder must follow in order to have its Securities purchased in accordance with paragraph (c) of this Section 1012; and

 

(4)                                 such other information, if any, concerning the business of the Company which the Company in good faith believes will enable such Holders to make an informed investment decision.

 

(i)                                                       Holders electing to have Securities purchased hereunder shall be required to surrender such Securities at the address specified in the notice at least three Business Days prior to the Offer Date.  Holders shall be entitled to withdraw their

 

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election to have their Securities purchased pursuant to this Section 1012 if the Company receives, not later than three Business Days prior to the Offer Date, a telegram, telex, facsimile transmission or letter setting forth (1) the name of the Holder, (2) the certificate number of the Security in respect of which such notice of withdrawal is being submitted, (3) the principal amount of the Security (which shall be $2,000 or an integral multiple of $1,000 in excess thereof) delivered for purchase by the Holder as to which his election is to be withdrawn, (4) a statement that such Holder is withdrawing his election to have such principal amount of such Security purchased, and (5) the principal amount, if any, of such Security (which shall be $2,000 or an integral multiple of $1,000 in excess thereof) that remains subject to the original notice of the Offer and that has been or shall be delivered for purchase by the Company.

 

(j)                                                      The Company shall (i) not later than the Offer Date, accept for payment Securities or portions thereof tendered pursuant to the Offer, (ii) not later than 10:00 a.m. (New York City time) on the Offer Date, deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 1003) an amount of money in same day funds (or New York Clearing House funds if such deposit is made prior to the Offer Date) sufficient to pay the aggregate Offered Price of all the Securities or portions thereof which are to be purchased on that date and (iii) not later than the Offer Date, deliver to the Paying Agent (if other than the Company) an Officers’ Certificate stating the Securities or portions thereof accepted for payment by the Company.

 

Subject to applicable escheat laws, as provided in the Securities, the Trustee and the Paying Agent shall return to the Company any cash that remains unclaimed, together with interest, if any, thereon, held by them for the payment of the Offered Price; provided, however, that (x) to the extent that the aggregate amount of cash deposited by the Company with the Trustee in respect of an Offer exceeds the aggregate Offered Price of the Securities or portions thereof to be purchased, the Trustee shall hold such excess for the Company and (y) unless otherwise directed by the Company in writing, promptly after the Business Day following the Offer Date the Trustee shall return any such excess to the Company together with interest or dividends, if any, thereon.

 

(k)                                                   Securities to be purchased shall, on the Offer Date, become due and payable at the Offered Price and from and after such date (unless the Company shall default in the payment of the Offered Price) such Securities shall cease to bear interest.  Such Offered Price shall be paid to such Holder promptly following the later of the Offer Date and the time of delivery of such Security to the relevant Paying Agent at the office of such Paying Agent by the Holder thereof in the manner required.  Upon surrender of any such Security for purchase in accordance with the foregoing provisions, such Security shall be paid by the Company at the Offered Price; provided, however, that installments of interest whose Stated Maturity is on or prior to the Offer Date shall be payable to the 

 

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Holders of such Securities, or one or more Predecessor Securities, registered as such on the relevant Regular Record Dates according to the terms and the provisions of Section 309; provided, further, that Securities to be purchased are subject to proration in the event the Excess Proceeds are less than the aggregate Offered Price of all Securities tendered for purchase, with such adjustments as may be appropriate by the Trustee so that only Securities in denominations of $2,000 or multiples of $1,000 in excess thereof, shall be purchased.  If any Security tendered for purchase shall not be so paid upon surrender thereof by deposit of funds with the Trustee or a Paying Agent in accordance with paragraph (j) above, the principal thereof shall, until paid, bear interest from the Offer Date at the rate borne by such Security.  Any Security that is to be purchased only in part shall be surrendered to a Paying Agent at the office of such Paying Agent (with, if the Company, the Security Registrar or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Security Registrar or the Trustee duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing), and the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security, without service charge, one or more new Securities of any authorized denomination as requested by such Holder in an aggregate principal amount equal to, and in exchange for, the portion of the principal amount of the Security so surrendered that is not purchased.

 

Section 1013.  Limitation on Issuances of Guarantees of and Pledges for Indebtedness.

 

(a)                                                   The Company shall not permit any Restricted Subsidiary, other than the Guarantors, directly or indirectly, to guarantee, assume or in any other manner become liable with respect to any Indebtedness of the Company (other than guarantees in existence on the Issue Date) unless such guarantee is otherwise permitted under this Indenture and such Restricted Subsidiary simultaneously executes and delivers a supplemental indenture to this Indenture providing for a guarantee of the Securities by such Restricted Subsidiary, which guarantee shall be on the same terms as the guarantee of such Indebtedness, except that the guarantee of the Securities need not be secured; provided that if such Indebtedness is Subordinated Indebtedness, any such assumption, guarantee or other liability of such Restricted Subsidiary with respect to such Indebtedness shall be subordinated to such Restricted Subsidiary’s guarantee of the Securities at least to the same extent as such Indebtedness is subordinated to the Securities.

 

(b)                                                   Each guarantee created pursuant to the provisions described in the foregoing paragraph is referred to as a “Guarantee” and the issuer of each such Guarantee is referred to as a “Guarantor.”  Notwithstanding the foregoing, any Guarantee by a Restricted Subsidiary of the Securities shall provide by its terms that it shall be automatically and unconditionally released and discharged upon (i) any sale, exchange or 

 

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transfer, to any Person not an Affiliate of the Company, of all of the Company’s or Parent’s Equity Interest in, or all or substantially all the assets of, such Restricted Subsidiary, which is in compliance with this Indenture or (ii) the release by the holders of the Indebtedness of the Company described in clause (a) above of their guarantee by such Restricted Subsidiary (including any deemed release upon payment in full of all obligations under such Indebtedness), at a time when (A) no other Indebtedness of the Company has been secured or guaranteed by such Restricted Subsidiary, as the case may be, or (B) the holders of all such other Indebtedness which is secured or guaranteed by such Restricted Subsidiary also release their Guarantee by, such Restricted Subsidiary (including any deemed release upon payment in full of all obligations under such Indebtedness).

 

(c)                                                    Notwithstanding the foregoing, any Guarantee by a Restricted Subsidiary of the Securities shall be automatically and unconditionally released and discharged at any time such Restricted Subsidiary is released from all of its obligations under any Guarantee of any Indebtedness under the Bank Credit Agreement.

 

Section 1014.  Restriction on Transfer of Assets.

 

The Company and the Guarantors shall not sell, convey, transfer or otherwise dispose of their respective assets or property to any of the Company’s Restricted Subsidiaries (other than any Guarantor), except for sales, conveyances, transfers or other dispositions made in the ordinary course of business and except for capital contributions to any Restricted Subsidiary, the only material assets of which are Broadcast Licenses, in each case subject to compliance with Section 1012.  For purposes of this provision, any sale, conveyance, transfer, lease or other disposition of property or assets, having a Fair Market Value in excess of (a) $1,000,000 for any sale, conveyance, transfer, lease or disposition or series of related sales, conveyances, transfers, leases and dispositions and (b) $20,000,000 in the aggregate for all such sales, conveyances, transfers, leases or dispositions in any fiscal year of the Company shall not be considered “in the ordinary course of business.”

 

Section 1015.  Purchase of Securities upon a Change of Control.

 

(a)                                                   If a Change of Control shall occur at any time, then each Holder of Securities shall have the right to require that the Company purchase such Holder’s Securities in whole or in part in amounts of $2,000 and integral multiples of $1,000 thereof, at a purchase price (the “Change of Control Purchase Price”) in cash in an amount equal to 101% of the principal amount of such Securities, plus accrued and unpaid interest, if any, to the date of purchase (the “Change of Control Purchase Date”), pursuant to the offer described in subsection (c) of this Section 1015 (the “Change of Control Offer”) and in accordance with the procedures set forth in Subsections (b), (c), (d) and (e) of this Section 1015.

 

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(b)                                                   Within 30 days following any Change of Control, unless the Company has exercised its rights to redeem all of the Securities as described under Section 1101, the Company shall notify the Trustee thereof and give written notice (a “Change of Control Purchase Notice”) of such Change of Control to each Holder by first-class mail, postage prepaid, at his address appearing in the Security Register stating or including:

 

(1)                                 that a Change of Control has occurred, the date of such event, and that such Holder has the right to require the Company to repurchase such Holder’s Securities at the Change of Control Purchase Price;

 

(2)                                 the circumstances and relevant facts regarding such Change of Control (including but not limited to information with respect to pro forma historical income, cash flow and capitalization after giving effect to such Change of Control);

 

(3)                                 (i) the most recently filed Annual Report on Form 10-K (including audited consolidated financial statements) of the Company, the most recent subsequently filed Quarterly Report on Form 10-Q, as applicable, and any Current Report on Form 8-K of the Company filed subsequent to such Quarterly Report (or in the event the Company is not required to prepare any of the foregoing Forms, the comparable information required to be prepared by the Company, Parent and any Guarantor pursuant to Section 1019), (ii) a description of material developments in the Company’s business subsequent to the date of the latest of such reports and (iii) such other information, if any, concerning the business of the Company which the Company in good faith believes will enable such Holders to make an informed investment decision;

 

(4)                                 that the Change of Control Offer is being made pursuant to Section 1015(a) and that all Securities properly tendered pursuant to the Change of Control Offer shall be accepted for payment at the Change of Control Purchase Price;

 

(5)                                 the Change of Control Purchase Date which shall be a Business Day no earlier than 30 days nor later than 60 days from the date such notice is mailed, or such later date as is necessary to comply with requirements under the Exchange Act;

 

(6)                                 the Change of Control Purchase Price;

 

(7)                                 the names and addresses of the Paying Agent and the offices or agencies referred to in Section 1002;

 

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(8)                                 that Securities must be surrendered on or prior to the Change of Control Purchase Date to the Paying Agent at the office of the Paying Agent or to an office or agency referred to in Section 1002 to collect payment;

 

(9)                                 that the Change of Control Purchase Price for any Security which has been properly tendered and not withdrawn shall be paid promptly following the Change of Control Offer Purchase Date;

 

(10)                          the procedures for withdrawing a tender of Securities and Change of Control Purchase Notice;

 

(11)                          that any Security not tendered shall continue to accrue interest; and

 

(12)                          that, unless the Company defaults in the payment of the Change of Control Purchase Price, any Security accepted for payment pursuant to the Change of Control Offer shall cease to accrue interest after the Change of Control Purchase Date.

 

(c)                                                    Upon receipt by the Company of the proper tender of Securities, the Holder of the Security in respect of which such proper tender was made shall (unless the tender of such Security is properly withdrawn) thereafter be entitled to receive solely the Change of Control Purchase Price with respect to such Security.  Upon surrender of any such Security for purchase in accordance with the foregoing provisions, such Security shall be paid by the Company at the Change of Control Purchase Price; provided, however, that installments of interest whose Stated Maturity is on or prior to the Change of Control Purchase Date shall be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such on the relevant Regular Record Dates according to the terms and the provisions of Section 309.  If any Security tendered for purchase shall not be so paid upon surrender thereof, the principal thereof (and premium, if any, thereon) shall, until paid, bear interest from the Change of Control Purchase Date at the rate borne by such Security.  Holders electing to have Securities purchased shall be required to surrender such Securities to the Paying Agent at the address specified in the Change of Control Purchase Notice at least two Business Days prior to the Change of Control Purchase Date.  Any Security that is to be purchased only in part shall be surrendered to a Paying Agent at the office of such Paying Agent (with, if the Company, the Security Registrar or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Security Registrar or the Trustee, as the case may be, duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing), and the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security, without service charge, one or more new Securities of any authorized denomination as requested by such Holder in an 

 

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aggregate principal amount equal to, and in exchange for, the portion of the principal amount of the Security so surrendered that is not purchased.

 

(d)                                                   The Company shall (i) not later than the Change of Control Purchase Date, accept for payment Securities or portions thereof tendered pursuant to the Change of Control Offer, (ii) not later than 11:00 a.m. (New York City time) on the Change of Control Purchase Date, deposit with the Paying Agent an amount of cash sufficient to pay the aggregate Change of Control Purchase Price of all the Securities or portions thereof which are to be purchased as of the Change of Control Purchase Date and (iii) not later than the Change of Control Purchase Date, deliver to the Paying Agent an Officers’ Certificate stating the Securities or portions thereof accepted for payment by the Company.  The Paying Agent shall promptly mail or deliver to Holders of Securities so accepted payment in an amount equal to the Change of Control Purchase Price of the Securities purchased from each such Holder, and the Company shall execute and the Trustee shall promptly authenticate and mail or deliver to such Holders a new Security equal in principal amount to any unpurchased portion of the Security surrendered.  Any Securities not so accepted shall be promptly mailed or delivered by the Paying Agent at the Company’s expense to the Holder thereof.  The Company shall publicly announce the results of the Change of Control Offer on the Change of Control Purchase Date.  For purposes of this Section 1015, the Company shall choose a Paying Agent which shall not be the Company.

 

(e)                                                    A Change of Control Purchase Notice may be withdrawn before or after delivery by the Holder to the Paying Agent at the office of the Paying Agent of the Security to which such Change of Control Purchase Notice relates, by means of a written notice of withdrawal delivered by the Holder to the Paying Agent at the office of the Paying Agent or to the office or agency referred to in Section 1002 to which the related Change of Control Purchase Notice was delivered not later than three Business Days prior to the Change of Control Purchase Date specifying, as applicable:

 

(1)                                 the name of the Holder;

 

(2)                                 the certificate number of the Security in respect of which such notice of withdrawal is being submitted;

 

(3)                                 the principal amount of the Security (which shall be $2,000 or an integral multiple of $1,000 in excess thereof) delivered for purchase by the Holder as to which such notice of withdrawal is being submitted; and

 

(4)                                 the principal amount, if any, of such Security (which shall be $2,000 or an integral multiple of $1,000 in excess thereof) that remains subject to the original Change of Control Purchase Notice and that has been or shall be delivered for purchase by the Company.

 

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(f)                                                     Subject to applicable escheat laws, as provided in the Securities, the Trustee and the Paying Agent shall return to the Company any cash that remains unclaimed, together with interest or dividends, if any, thereon, held by them for the payment of the Change of Control Purchase Price; provided, however, that (x) to the extent that the aggregate amount of cash deposited by the Company pursuant to clause (ii) of paragraph (d) above exceeds the aggregate Change of Control Purchase Price of the Securities or portions thereof to be purchased, then the Trustee shall hold such excess for the Company and (y) unless otherwise directed by the Company in writing, promptly after the Business Day following the Change of Control Purchase Date the Trustee shall return any such excess to the Company together with interest, if any, thereon.

 

(g)                                                    The Company shall comply with the applicable tender offer rules, including Rule 14e-1 under the Exchange Act, and any other applicable securities laws or regulations in connection with a Change of Control Offer, provided that to the extent that the provisions of any such securities laws or regulations conflict with the Change of Control Offer provisions of the Securities, the Company shall comply with those securities laws and regulations and shall not  be deemed to have breached its obligations under the Change of Control Offer provisions of the Securities by virtue of any such conflict.

 

(h)                                                   The Company shall not be required to make a Change of Control Offer if a third party makes an offer in the manner, at the times and otherwise in compliance with the requirements for a Change of Control Offer to be made by the Company and such third party purchases all the Securities properly tendered and not withdrawn under its offer.

 

Section 1016.  Limitation on Subsidiary Equity Interests.

 

The Company shall not permit any Restricted Subsidiary  to issue any Equity Interests, except for (a) Equity Interests issued to and held by the Company or a Wholly Owned Restricted Subsidiary or, in the case of any Designated SBG Subsidiary, the Company, and (b) Equity Interests issued by a Person prior to the time (A) such Person becomes a Restricted Subsidiary, (B) such Person merges with or into a Restricted Subsidiary or (C) a Restricted Subsidiary merges with or into such Person; provided that such Equity Interests were not issued or incurred by such Person in anticipation of the type of transaction contemplated by subclause (A), (B) or (C).

 

Section 1017.  Limitation on Dividends and Other Payment Restrictions Affecting Subsidiaries.

 

The Company shall not, and shall not permit any of the Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on the ability of any Restricted Subsidiary of the Company 

 

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to (i) pay dividends or make any other distribution on its Equity Interests, (ii) pay any Indebtedness owed to the Company or a Restricted Subsidiary of the Company, (iii) make any Investment in the Company or a Restricted Subsidiary of the Company or (iv) transfer any of its properties or assets to the Company or any Restricted Subsidiary, except (a) any encumbrance or restriction pursuant to an agreement in effect on the Issue Date or contained in any other indenture or instrument governing debt or preferred securities that are no more restrictive than those contained in this Indenture; (b) any encumbrance or restriction, with respect to a Restricted Subsidiary that is not a Subsidiary of the Company on the Issue Date, in existence at the time such Person becomes a Restricted Subsidiary of the Company and not incurred in connection with, or in contemplation of, such Person becoming a Restricted Subsidiary, provided, that such encumbrances and restrictions are not applicable to the Company or any Restricted Subsidiary or the properties or assets of the Company or any Restricted Subsidiary other than such Subsidiary which is becoming a Restricted Subsidiary; (c) any encumbrance or restriction existing under, by reason of or with respect to any agreement of the Company or any Restricted Subsidiary; provided that (1) such encumbrances or restrictions are ordinary and customary in light of the type of agreement involved and (2) such encumbrances shall not affect in any material respect the Company’s or any Guarantor’s ability to make principal and interest payments on the Securities, as determined in good faith by the Company; (d) any encumbrance or restriction existing under any agreement that extends, renews, refinances or replaces the agreements containing the encumbrances or restrictions in the foregoing clauses (a), (b) and (c), or in this clause (d), provided that the terms and conditions of any such encumbrances or restrictions are not materially less favorable to the Holders of the Securities than those under or pursuant to the agreement evidencing the Indebtedness so extended, renewed, refinanced or replaced or are not more restrictive than those set forth in this Indenture; and (e) any encumbrance or restriction created pursuant to an asset sale agreement, stock sale agreement or similar instrument pursuant to which an Asset Sale permitted under Section 1012 is to be consummated, so long as such restriction or encumbrance shall be effective only for a period from the execution and delivery of such agreement or instrument through a termination date not later than 270 days after such execution and delivery.

 

Section 1018.  Limitation on Unrestricted Subsidiaries.

 

The Company shall not make, and shall not permit any of the Restricted Subsidiaries to make, any Investments in Unrestricted Subsidiaries if, at the time thereof, the aggregate amount of such Investments would exceed the amount of Restricted Payments then permitted to be made pursuant to Section 1009.  Any Investments in Unrestricted Subsidiaries permitted to be made pursuant to this covenant (i) shall be treated as the payment of a Restricted Payment in calculating the amount of Restricted Payments made by the Company and (ii) may be made in cash or property.

 

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Section 1019.  Provision of Financial Statements.

 

(a) Whether or not Parent is subject to Section 13(a) or 15(d) of the Exchange Act, Parent shall, to the extent permitted under the Exchange Act, file with the Commission the annual reports, quarterly reports and other documents which Parent would have been required to file with the Commission pursuant to such Sections 13(a) or 15(d) if Parent were so subject, such documents to be filed with the Commission on or prior to the respective dates by which Parent would have been required so to file such documents if Parent were so subject (the “Required Filing Dates”); provided, however, that if Parent is not permitted by the Commission to file such reports with the Commission, Parent shall post the annual reports, quarterly reports and other documents that it would have been required to file with the Commission pursuant to Section 13(a) or 15(d) if it were so subject on its website accessible to each Holder of Securities by the applicable Required Filing Date.  Parent shall also in any event (x) within 15 days of each Required Filing Date (i) transmit by mail to all Holders, as their names and addresses appear in the Security Register, without cost to such Holders and (ii) file with the Trustee copies of the annual reports, quarterly reports and other documents which Parent would have been required to file with the Commission pursuant to Section 13(a) or 15(d) of the Exchange Act if Parent were subject to such Sections and (y) if Parent’s filing such documents with the Commission is not permitted under the Exchange Act, promptly upon written request and payment of the reasonable cost of duplication and delivery, supply copies of such documents to any prospective Holder at the Company’s cost.  Notwithstanding the foregoing, Parent shall be deemed to have furnished such reports referred to above to the Holders if it has filed such reports with the Commission via the Commission’s Electronic Data Gathering, Analysis, and Retrieval Filing System (EDGAR) and such reports are publicly available.  So long as any of the Securities remain outstanding, the Company shall make available to any prospective purchaser of Securities or beneficial owner of Securities in connection with any sale of Securities the information required by Rule 144A(d)(4) under the Securities Act so long as such Securities are not freely transferable under the Securities Act.

 

(b) If at any time the financial statements of Parent do not include the consolidated balance sheets, consolidated statements of operations and consolidated statements of cash flows of the Company and the Guarantors presented in accordance with Rule 3-10 of Regulation S-X under the Securities Act, then the Company shall furnish to each Holder of Securities (including by posting on a website accessible to each holder of Securities) (a) within 120 days after the end of each fiscal year of the Company, the audited consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows of the Company and its Subsidiaries (excluding Unrestricted Subsidiaries) as of the end of and for such year, setting forth in comparative form the figures for the previous fiscal year, all reported on by PricewaterhouseCoopers LLP or other independent public accountants of recognized national standing and (b) within 60 

 

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days after the end of each of the first three quarters of each fiscal year of the Company, the unaudited consolidated balance sheet and related statements of operations, stockholder’s equity and cash flows of the Company and its Subsidiaries (excluding Unrestricted Subsidiaries) as of the end of and for such fiscal quarter and then elapsed portion of such fiscal year, setting forth in comparative form the figures for the corresponding period or periods of the previous fiscal year, all certified by a Financial Officer of the Company or Parent as permitted by GAAP.

 

Section 1020.  Statement by Officers as to Default.

 

(a)                                                   The Company shall deliver to the Trustee, on or before a date not more than 60 days after the end of each fiscal quarter and not more than 120 days after the end of each fiscal year of the Company ending after the Issue Date, a written statement signed by two Officers of the Company or Parent, one of whom shall be the principal executive officer or a Financial Officer of the Company or Parent,  stating whether or not, after a review of the activities of the Company during such year or such quarter and of the Company’s performance under this Indenture, to the best knowledge, based on such review, of the signers thereof, the Company has fulfilled all its obligations and is in compliance with all conditions and covenants under this Indenture throughout such year or quarter, as the case may be, and, if there has been a Default specifying each Default and the nature and status thereof.

 

(b)                                                   When any Default or Event of Default has occurred and is continuing, or if the Trustee or any Holder or the trustee for or the holder of any other evidence of Indebtedness of the Company or any Subsidiary gives any notice or takes any other action with respect to a claimed default (other than with respect to Indebtedness in the principal amount of less than $5,000,000), the Company shall deliver to the Trustee by registered or certified mail or by telegram, telex or facsimile transmission followed by hard copy an Officers’ Certificate specifying such Default, Event of Default, notice or other action within five Business Days of its occurrence.

 

Section 1021.  Waiver of Certain Covenants.

 

The Company or any Guarantor may omit in any particular instance to comply with any term, provision or condition set forth in Sections 1006 through 1011, 1013, 1014 and 1016 through 1019, if, before or after the time for such compliance, the Holders of not less than a majority in aggregate principal amount of the Securities at the time Outstanding shall, by Act of such Holders, waive such compliance in such instance with such covenant or condition, but no such waiver shall extend to or affect such covenant or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee in respect of any such covenant or condition shall remain in full force and effect.

 

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Section 1022.  Effectiveness of Covenants upon an Investment Grade Rating Event.

 

(a) Upon and after the occurrence of an Investment Grade Rating Event, the covenants under Sections 1008, 1009, 1010, 1012, 1013, 1014, 1016, 1017, 1018 and 1019 shall be suspended.

 

(b) Upon and after the occurrence of an Investment Grade Rating Event, the provision set forth in Section 801(a)(iii) shall be suspended.

 

During any period that the foregoing covenants have been suspended, the Company’s Board of Directors may not designate any of the Company’s Subsidiaries as Unrestricted Subsidiaries pursuant to Section 1018.

 

Notwithstanding the foregoing, if the rating assigned by either Rating Agency should subsequently decline to below an Investment Grade Rating, the foregoing covenants shall be reinstituted as of and from the date of such rating decline; provided, however, no Default, Event of Default or breach of any kind shall be deemed to exist or have occurred under this Indenture, the Securities or the Guarantees with respect to the foregoing suspended covenants based on, and none of the Company or any of the Restricted Subsidiaries or Guarantors shall bear any liability for, any actions taken or events occurring during the period the foregoing covenants were suspended, or any actions taken at any time pursuant to any contractual obligation arising prior to the date the foregoing covenants were reinstated, regardless of whether such actions or events would have been permitted if the applicable suspended covenants remained in effect during such period. On the date the foregoing covenants are reinstated, all Indebtedness incurred during the suspension period shall be deemed to have been outstanding on the Issue Date, so that it is classified as permitted under Section 1008(b)(iv). Calculations under the reinstated Section 1009 shall be made as if Section 1009 had been in effect since the Issue Date except that no Default or Event of Default shall be deemed to have occurred solely by reason of a Restricted Payment made while Section 1009 was suspended.

 

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

 

Section 1101.  Rights of Redemption.

 

(a)                                                   Except as described in this Section 1101, the Securities are not redeemable until August 1, 2019. The Securities will be subject to redemption at any time on or after August 1, 2019, at the Company’s option, in whole in part, on not less than 15 

 

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nor more than 60 days’ prior notice in amounts of $2,000 or an integral multiple of $1,000 in excess thereof at the following Redemption Prices (expressed as percentages of the principal amount), if redeemed during the twelve-month period beginning August 1 of the years indicated below:

 

	
Year
    	
 
    	
Redemption
   Price
    	
 
    
	
2019 
    	
 
    	
102.813
    	
%
    
	
2020 
    	
 
    	
101.875
    	
%
    
	
2021 
    	
 
    	
100.938
    	
%
    
	
2022 and thereafter 
    	
 
    	
100.000
    	
%
    

 

in each case together with accrued and unpaid interest, if any, to the Redemption Date (subject to the right of the Holders of record on relevant record dates to receive interest due on an Interest Payment Date).

 

(b)  At any time on or prior to August 1, 2017, the Company may redeem up to 35% of the principal amount of Securities issued under this Indenture with the net proceeds of an Equity Offering of the Company or Parent at 105.625% of the aggregate principal amount, together with accrued and unpaid interest, if any, to the Redemption Date (subject to the right of Holders of record on relevant record dates to receive interest due on an Interest Payment Date); provided that (1) at least 65% of the principal amount of Securities issued under this Indenture remains outstanding after each such redemption; and (2) the redemption occurs within 90 days after the closing of such Equity Offering.

 

(c) At any time prior to August 1, 2019, upon not less than 15 nor more than 60 days’ prior notice, the Company may redeem the Securities, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus the Applicable Premium plus accrued and unpaid interest, if any, to the Redemption Date (subject to the right of Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date).

 

Section 1102.  Applicability of Article.

 

Redemption of Securities at the election of the Company or otherwise, as permitted or required by any provision of this Indenture, shall be made in accordance with such provision and this Article Eleven.

 

Section 1103.  Election to Redeem; Notice to Trustee.

 

If the Company elects to redeem any Securities pursuant to Section 1101, the Company shall furnish to the Trustee, at least 5 Business Days before notice of 

 

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redemption is required to be mailed or caused to be mailed to Holders pursuant to Section 1105 but not more than 60 days before a Redemption Date, an Officers’ Certificate setting forth (a) the paragraph or subparagraph of such Security and/or Section of this Indenture pursuant to which the redemption shall occur, (b) the Redemption Date, (c) the principal amount of the Securities to be redeemed and (d) the redemption price.  The Company shall deliver to the Trustee such documentation and records as shall enable the Trustee to select the Securities to be redeemed pursuant to Section 1104.

 

Section 1104.  Selection by Trustee of Securities to Be Redeemed.

 

If less than all the Securities are to be redeemed, the particular Securities or portions thereof to be redeemed shall be selected not more than 30 days prior to the Redemption Date by the Trustee, from the Outstanding Securities not previously called for redemption, pro rata, by lot or such other method as the Trustee shall deem fair and reasonable, and the amounts to be redeemed may be equal to $2,000 or any integral multiple of $1,000 in excess thereof, subject to the requirements of the Depositary.

 

The Trustee shall promptly notify the Company and the Security Registrar in writing of the Securities selected for redemption and, in the case of any Securities selected for partial redemption, the principal amount thereof to be redeemed.

 

For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to redemption of Securities shall relate, in the case of any Security redeemed or to be redeemed only in part, to the portion of the principal amount of such Security which has been or is to be redeemed.

 

Section 1105.  Notice of Redemption.

 

Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than 15 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed, at his address appearing in the Security Register.

 

All notices of redemption shall state:

 

(a)                                                   the Redemption Date;

 

(b)                                                   the Redemption Price;

 

(c)                                                    if less than all Outstanding Securities are to be redeemed, the identification of the particular Securities to be redeemed;

 

(d)                                                   in the case of a Security to be redeemed in part, the principal amount of such Security to be redeemed and that after the Redemption Date upon surrender of 

 

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such Security, new Security or Securities in the aggregate principal amount equal to the unredeemed portion thereof shall be issued;

 

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

 

(f)                                                     that on the Redemption Date the Redemption Price shall become due and payable upon each such Security or portion thereof, and that (unless the Company shall default in payment of the Redemption Price) interest thereon shall cease to accrue on and after said date;

 

(g)                                                    the place or places where such Securities are to be surrendered for payment of the Redemption Price; and

 

(h)                                                   the CUSIP number, if any, relating to such Securities.

 

Notice of redemption of Securities to be redeemed at the election of the Company shall be given by the Company or, at the Company’s written request, by the Trustee in the name and at the expense of the Company.

 

The notice if mailed in the manner herein provided shall be conclusively presumed to have been given, whether or not the Holder receives such notice.  In any case, failure to give such notice to any Holder of any Security designated for redemption as a whole or in part, or any defect in any such notice, shall not affect the validity of the proceedings for the redemption of any other Security.

 

Notices of redemption may be given prior to the completion of any event or transaction related to such redemption, and any redemption or notice may, at the Company’s discretion, be subject to one of more conditions precedent, including, but not limited to, completion of an Equity Offering.  In addition, if such redemption or notice is subject to satisfaction of one or more conditions precedent, such notice shall state that, in the Company’s discretion, the redemption date may be delayed until such time as any or all such conditions precedent shall be satisfied, or such redemption may not occur and such notice may be rescinded in the event that any or all such conditions precedent shall not have been satisfied by the redemption date, or by the redemption date so delayed.

 

Section 1106.  Deposit of Redemption Price.

 

On or prior to any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 1003) an amount of money in same day funds sufficient to pay the Redemption Price of and (except if the Redemption Date shall be an Interest Payment Date) accrued interest on, all the Securities or portions thereof which are to be redeemed on that date.  When the Redemption Date falls on an Interest 

 

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Payment Date, payments of interest due on such date are to be paid as provided hereunder as if no such redemption were occurring.

 

Section 1107.  Securities Payable on Redemption Date.

 

Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified (together with accrued interest, if any, to the Redemption Date), and from and after such date (unless the Company shall default in the payment of the Redemption Price and accrued interest) such Securities shall cease to bear interest.  Upon surrender of any such Security for redemption in accordance with said notice, such Security shall be paid by the Company at the Redemption Price together with accrued interest, if any, to the Redemption Date (subject to the rights of Holders of record on the relevant Regular Record Date to receive interest due on the relevant Interest Payment Date); provided, however, that installments of interest whose Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such on the relevant Regular Record Dates according to the terms and the provisions of Section 309.

 

If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal and premium, if any, shall, until paid, bear interest from the Redemption Date at the rate borne by such Security.

 

If the optional Redemption Date is on or after a Regular Record Date and on or before the related Interest Payment Date, the accrued and unpaid interest, if any, shall be paid to the Person in whose name the Security is registered at the close of business on such Record Date, and no additional interest will be payable to Holders whose Securities will be subject to redemption by the Company.

 

Section 1108.  Securities Redeemed or Purchased in Part.

 

Any Security which is to be redeemed or purchased only in part shall be surrendered to the Paying Agent at the office or agency maintained for such purpose pursuant to Section 1002 (with, if the Company, the Security Registrar or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company, the Security Registrar or the Trustee duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing), and the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new Security or Securities, of any authorized denomination as requested by such Holder in aggregate principal amount equal to, and in exchange for, the unredeemed portion of the principal of the Security so surrendered that is not redeemed or purchased; provided, that each such new Security shall be in a principal amount of $2,000 or integral multiples of $1,000 in excess thereof.

 

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Section 1109.  Calculations with respect to Redemptions.

 

The Company or its agents shall be responsible for making all calculations called for in connection with any redemption of the Notes. The Company shall make all calculations in good faith and using commercially reasonable standards, and absent manifest error, such calculations shall be final and binding on Holders of the Notes.

 

ARTICLE TWELVE

SATISFACTION AND DISCHARGE

 

Section 1201.  Satisfaction and Discharge of Indenture.

 

This Indenture shall cease to be of further effect (except as to surviving rights of registration of transfer or exchange of Securities herein, rights to payment, including Additional Interest, and rights to replacement of stolen, lost or mutilated Securities expressly provided for) and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when

 

(a)                                                   either

 

(1)                                 all the Securities theretofore authenticated and delivered (other than (i) Securities which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 308 or (ii) all Securities for whose payment United States dollars have theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 1003) have been delivered to the Trustee for cancellation; or

 

(2)                                 all such Securities not theretofore delivered to the Trustee for cancellation (x) have become due and payable, (y) shall become due and payable at their Stated Maturity within one year, or (z) are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company, and the Company or any Guarantor, in the case of (2)(x),(y) or (z) above, has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust for the purpose an amount in United States dollars sufficient to pay and discharge the entire Indebtedness on the Securities not theretofore delivered to the Trustee for cancellation, for the principal of, premium, if any, and accrued interest at such Stated Maturity or Redemption Date;

 

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(b)                                                   the Company or any Guarantor has paid or caused to be paid all other sums payable hereunder by the Company or any Guarantor; and

 

(c)                                                    the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel stating that (i) all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with and (ii) such satisfaction and discharge shall not result in a breach or violation of or constitute a default under, this Indenture or any other material agreement or instrument to which the Company or any Guarantor is a party or by which the Company or any Guarantor is bound.

 

Opinions of Counsel required to be delivered under this Section 1201 may have qualifications customary for opinions of the type required and counsel delivering such Opinions of Counsel may rely on certificates of the Company or government or other officials customary for opinions of the type required, including certificates certifying as to matters of fact, including that various financial covenants have been complied with.

 

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 606 and, if United States dollars shall have been deposited with the Trustee pursuant to subclause (2) of subsection (a) of this Section 1201, the obligations of the Trustee under Section 1202 and the last paragraph of Section 1003 shall survive.

 

Section 1202.  Application of Trust Money.

 

Subject to the provisions of the last paragraph of Section 1003, all United States dollars deposited with the Trustee pursuant to Section 1201 shall be held in trust and applied by it, in accordance with the provisions of the Securities and this Indenture (including, without limitation, Section 605), to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal of, premium, if any, and interest on the Securities for whose payment such United States dollars have been deposited with the Trustee.

 

ARTICLE THIRTEEN

GUARANTEE

 

Section 1301.  Guarantors’ Guarantee.

 

For value received, each of the Guarantors, in accordance with this Article Thirteen, hereby absolutely, fully, unconditionally and irrevocably guarantees, jointly and 

 

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severally with each other Guarantor, to the extent lawful, to the Trustee and the Holders, as if the Guarantors were the principal debtor, the punctual payment and performance when due of all Indenture Obligations (including, without limitation, interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to the Company or any Guarantor whether or not a claim for post-filing or post-petition interest is allowed in such proceeding and, which for purposes of this Guarantee shall also be deemed to include all commissions, fees, charges, costs and other expenses (including reasonable legal fees and disbursements of one counsel in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances) arising out of or incurred by the Trustee or the Holders in connection with the enforcement of this Guarantee).

 

Each Guarantor agrees that its obligations under this Indenture and its Guarantee shall rank equally in right of payment with other Indebtedness of such Guarantor, except to the extent such other Indebtedness is expressly subordinated to its obligations under this Indenture and its Guarantee, in which case its obligations under this Indenture and its Guarantee shall rank senior in right of payment to such other Indebtedness.  Each Guarantor further agrees (to the extent lawful) that its obligations under this Indenture and its Guarantee may be extended or renewed, in whole or in part, without notice or further assent from it, and that it shall remain bound under this Article Thirteen notwithstanding any extension or renewal of its obligations under this Indenture or its Guarantee.

 

Section 1302.  Continuing Guarantee; No Right of Set-Off; Independent Obligation.

 

(a)                                                   This Guarantee shall be a continuing guarantee of the payment and performance of all Indenture Obligations and shall remain in full force and effect until the payment in full of all of the Indenture Obligations and shall apply to and secure any ultimate balance due or remaining unpaid to the Trustee or the Holders; and this Guarantee shall not be considered as wholly or partially satisfied by the payment or liquidation at any time or from time to time of any sum of money for the time being due or remaining unpaid to the Trustee or the Holders.  Each Guarantor, jointly and severally, covenants and agrees to comply with all obligations, covenants, agreements and provisions applicable to it in this Indenture including those set forth in Article Eight.  Without limiting the generality of the foregoing, each of the Guarantors’ liability shall extend to all amounts which constitute part of the Indenture Obligations and would be owed by the Company under this Indenture and the Securities but for the fact that they are unenforceable, reduced, limited, impaired, suspended or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving the Company.

 

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(b)                                                   Each Guarantor, jointly and severally, hereby guarantees that the Indenture Obligations shall be paid to the Trustee without set-off or counterclaim or other reduction whatsoever (whether for taxes, withholding or otherwise) in lawful currency of the United States of America.

 

(c)                                                    Each Guarantor, jointly and severally, guarantees that the Indenture Obligations shall be paid strictly in accordance with their terms regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Holders of the Securities.

 

(d)                                                   Each Guarantor’s liability under this Guarantee to pay or perform or cause the performance of the Indenture Obligations shall arise forthwith after demand for payment or performance by the Trustee has been given to the Guarantors in the manner prescribed in Section 106 hereof.

 

(e)                                                    Except as provided herein, the provisions of this Article Thirteen cover all agreements between the parties hereto relative to this Guarantee and none of the parties shall be bound by any representation, warranty or promise made by any Person relative thereto which is not embodied herein; and it is specifically acknowledged and agreed that this Guarantee has been delivered by each Guarantor free of any conditions whatsoever and that no representations, warranties or promises have been made to any Guarantor affecting its liabilities hereunder, and that the Trustee shall not be bound by any representations, warranties or promises now or at any time hereafter made by the Company to any Guarantor.

 

Section 1303.  Guarantee Absolute.

 

The obligations of the Guarantors hereunder are independent of the obligations of the Company under the Securities and this Indenture and a separate action or actions may be brought and prosecuted against any Guarantor whether or not an action or proceeding is brought against the Company and whether or not the Company is joined in any such action or proceeding.  The liability of the Guarantors hereunder is irrevocable, absolute and unconditional and (to the extent permitted by law) the liability and obligations of the Guarantors hereunder shall not be released, discharged, mitigated, waived, impaired or affected in whole or in part by:

 

(a)                                           any defect or lack of validity or enforceability in respect of any Indebtedness or other obligation of the Company or any other Person under this Indenture or the Securities, or any agreement or instrument relating to any of the foregoing;

 

(b)                                           any grants of time, renewals, extensions, indulgences, releases, discharges or modifications which the Trustee or the 

 

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Holders may extend to, or make with, the Company, any Guarantor or any other Person, or any change in the time, manner or place of payment of, or in any other term of, all or any of the Indenture Obligations, or any other amendment or waiver of, or any consent to or departure from, this Indenture or the Securities, including any increase or decrease in the Indenture Obligations;

 

(c)                                            the taking of security from the Company, any Guarantor or any other Person, and the release, discharge or alteration of, or other dealing with, such security;

 

(d)                                           the occurrence of any change in the laws, rules, regulations or ordinances of any jurisdiction by any present or future action of any governmental authority or court amending, varying, reducing or otherwise affecting, or purporting to amend, vary, reduce or otherwise affect, any of the Indenture Obligations and the obligations of any Guarantor hereunder;

 

(e)                                            the abstention from taking security from the Company, any Guarantor or any other Person or from perfecting, continuing to keep perfected or taking advantage of any security;

 

(f)                                             any loss, diminution of value or lack of enforceability of any security received from the Company, any Guarantor or any other Person, and including any other guarantees received by the Trustee;

 

(g)                                            any other dealings with the Company, any Guarantor or any other Person, or with any security;

 

(h)                                           the Trustee’s or the Holders’ acceptance of compositions from the Company or any Guarantor;

 

(i)                                               the application by the Holders or the Trustee of all monies at any time and from time to time received from the Company, any Guarantor or any other Person on account of any indebtedness and liabilities owing by the Company or any Guarantor to the Trustee or the Holders, in such manner as the Trustee or the Holders deems best and the changing of such application in whole or in part and at any time or from time to time, or any manner of application of collateral, if any, or proceeds thereof, to all or any of the Indenture Obligations, or the manner of sale of any such collateral;

 

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(j)                                    the release or discharge of the Company or any Guarantor of the Securities or of any Person liable directly as surety or otherwise by operation of law or otherwise for the Securities, other than an express release in writing given by the Trustee, on behalf of the Holders, of the liability and obligations of any Guarantor hereunder;

 

(k)                                 any change in the name, business, capital structure or governing instrument of the Company or any Guarantor or any refinancing or restructuring of any of the Indenture Obligations;

 

(l)                                     the sale of the Company’s or any Guarantor’s business or any part thereof;

 

(m)                             subject to Section 1314, any merger or consolidation, arrangement or reorganization of the Company, any Guarantor, any Person resulting from the merger or consolidation of the Company or any Guarantor with any other Person or any other successor to such Person or merged or consolidated Person or any other change in the corporate existence, structure or ownership of the Company or any Guarantor;

 

(n)                                 the insolvency, bankruptcy, liquidation, winding-up, dissolution, receivership or distribution of the assets of the Company or its assets or any resulting discharge of any obligations of the Company (whether voluntary or involuntary) or of any Guarantor or the loss of corporate existence;

 

(o)                                 subject to Section 1314, any arrangement or plan of reorganization affecting the Company or any Guarantor;

 

(p)                                 any other circumstance (including any statute of limitations) that might otherwise constitute a defense available to, or discharge of, the Company or any Guarantor; or

 

(q)                                 any modification, compromise, settlement or release by the Trustee, or by operation of law or otherwise, of the Indenture Obligations or the liability of the Company or any other obligor under the Securities, in whole or in part, and any refusal of payment by the Trustee, in whole or in part, from any other obligor or other guarantor in connection with any of the Indenture Obligations, whether or not with notice to, or further assent by, or any reservation of rights against, each of the Guarantors.

 

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Section 1304.  Right to Demand Full Performance.

 

In the event of any demand for payment or performance by the Trustee from any Guarantor hereunder, the Trustee or the Holders shall have the right to demand its full claim and to receive all dividends or other payments in respect thereof until the Indenture Obligations have been paid in full, and the Guarantors shall continue to be jointly and severally liable hereunder for any balance which may be owing to the Trustee or the Holders by the Company under this Indenture and the Securities.  The retention by the Trustee or the Holders of any security, prior to the realization by the Trustee or the Holders of its rights to such security upon foreclosure thereon, shall not, as between the Trustee and any Guarantor, be considered as a purchase of such security, or as payment, satisfaction or reduction of the Indenture Obligations due to the Trustee or the Holders by the Company or any part thereof.

 

Section 1305.  Waivers.

 

(a)                                                   Each Guarantor hereby expressly waives (to the extent permitted by law) notice of the acceptance of this Guarantee and notice of the existence, renewal, extension or the non-performance, non-payment, or non-observance on the part of the Company of any of the terms, covenants, conditions and provisions of this Indenture or the Securities or any other notice whatsoever to or upon the Company or such Guarantor with respect to the Indenture Obligations.  Each Guarantor hereby acknowledges communication to it of the terms of this Indenture and the Securities and all of the provisions therein contained and consents to and approves the same.  Each Guarantor hereby expressly waives (to the extent permitted by law) diligence, presentment, protest and demand for payment.

 

(b)                                                   Without prejudice to any of the rights or recourses which the Trustee or the Holders may have against the Company, each Guarantor hereby expressly waives (to the extent permitted by law) any right to require the Trustee or the Holders to:

 

(i)                                   initiate or exhaust any rights, remedies or recourse against the Company, any Guarantor or any other Person;

 

(ii)                                value, realize upon, or dispose of any security of the Company or any other Person held by the Trustee or the Holders; or

 

(iii)                             initiate or exhaust any other remedy which the Trustee or the Holders may have in law or equity;

 

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before requiring or becoming entitled to demand payment from such Guarantor under this Guarantee.

 

(c)                                                    With respect to this Section 1305, to the extent applicable to any Guarantor, each Guarantor expressly waives application of Sections 26-7 through 26-9 of the North Carolina General Statutes.

 

Section 1306.  The Guarantors Remain Obligated in Event the Company Is No Longer Obligated to Discharge Indenture Obligations.

 

It is the express intention of the Trustee and the Guarantors that if for any reason the Company has no legal existence, is or becomes under no legal obligation to discharge the Indenture Obligations owing to the Trustee or the Holders by the Company or if any of the Indenture Obligations owing by the Company to the Trustee or the Holders becomes irrecoverable from the Company by operation of law or for any reason whatsoever, this Guarantee and the covenants, agreements and obligations of the Guarantors contained in this Article Thirteen shall nevertheless be binding upon the Guarantors, as principal debtor, until such time as all such Indenture Obligations have been paid in full to the Trustee and all Indenture Obligations owing to the Trustee or the Holders by the Company have been discharged, or such earlier time as Section 402 shall apply to the Securities and the Guarantors shall be responsible for the payment thereof to the Trustee or the Holders upon demand.

 

Section 1307.  Fraudulent Conveyance; Contribution;  Subrogation.

 

(a)                                                   Each Guarantor that is a Subsidiary of the Company, and by its acceptance hereof each Holder, hereby confirms that it is the intention of all such parties that the Guarantee by such Guarantor pursuant to its Guarantee not constitute a fraudulent transfer or conveyance for purposes of the Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law.  To effectuate the foregoing intention, the Holders and such Guarantor hereby irrevocably agree that the obligations of such Guarantor under its Guarantee shall be limited to the maximum amount which, after giving effect to all other contingent and fixed liabilities of such Guarantor as of the Issue Date, and after giving effect to any collections from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under its Guarantee or pursuant to its contribution obligations under this Indenture, shall result in the obligations of such Guarantor under its Guarantee not constituting such fraudulent transfer or conveyance.

 

(b)                                                   Each Guarantor that makes a payment or distribution under its Guarantee shall be entitled to a contribution from each other Guarantor, if any, in a pro

 

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rata amount based on the net assets of each Guarantor, determined in accordance with GAAP.

 

(c)                                                    Each Guarantor hereby waives all rights of subrogation or contribution, whether arising by contract or operation of law (including, without limitation, any such right arising under federal bankruptcy law) or otherwise by reason of any payment by it pursuant to the provisions of this Article Thirteen.

 

Section 1308.  Guarantee Is in Addition to Other Security.

 

This Guarantee shall be in addition to and not in substitution for any other guarantees or other security which the Trustee may now or hereafter hold in respect of the Indenture Obligations owing to the Trustee or the Holders by the Company and (except as may be required by law) the Trustee shall be under no obligation to marshal in favor of each of the Guarantors any other guarantees or other security or any moneys or other assets which the Trustee may be entitled to receive or upon which the Trustee or the Holders may have a claim.

 

Section 1309.  Release of Security Interests.

 

Without limiting the generality of the foregoing and except as otherwise provided in this Indenture, each Guarantor hereby consents and agrees, to the fullest extent permitted by applicable law, that the rights of the Trustee hereunder, and the liability of the Guarantors hereunder, shall not be affected by any and all releases for any purpose of any collateral, if any, from the Liens and security interests created by any collateral document and that this Guarantee shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Indenture Obligations is rescinded or must otherwise be returned by the Trustee upon the insolvency, bankruptcy or reorganization of the Company or otherwise, all as though such payment had not been made.

 

Section 1310.  No Bar to Further Actions.

 

Except as provided by law, no action or proceeding brought or instituted under Article Thirteen and this Guarantee and no recovery or judgment in pursuance thereof shall be a bar or defense to any further action or proceeding which may be brought under Article Thirteen and this Guarantee by reason of any further default or defaults under Article Thirteen and this Guarantee or in the payment of any of the Indenture Obligations owing by the Company.

 

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Section 1311.  Failure to Exercise Rights Shall Not Operate as a Waiver; No Suspension of Remedies.

 

(a)                                                   No failure to exercise and no delay in exercising, on the part of the Trustee or the Holders, any right, power, privilege or remedy under this Article Thirteen and this Guarantee shall operate as a waiver thereof, nor shall any single or partial exercise of any rights, power, privilege or remedy preclude any other or further exercise thereof, or the exercise of any other rights, powers, privileges or remedies.  The rights and remedies herein provided for are cumulative and not exclusive of any rights or remedies provided in law or equity.

 

(b)                                                   Nothing contained in this Article Thirteen shall limit the right of the Trustee or the Holders to take any action to accelerate the maturity of the Securities pursuant to Article Five or to pursue any rights or remedies hereunder or under applicable law.

 

Section 1312.  Trustee’s Duties; Notice to Trustee.

 

(a)                                                   Any provision in this Article Thirteen or elsewhere in this Indenture allowing the Trustee to request any information or to take any action authorized by, or on behalf of any Guarantor, shall be permissive and shall not be obligatory on the Trustee except as the Holders may direct in accordance with the provisions of this Indenture or where the failure of the Trustee to request any such information or to take any such action arises from the Trustee’s negligence, bad faith or willful misconduct.

 

(b)                                                   The Trustee shall not be required to inquire into the existence, powers or capacities of the Company, any Guarantor or the officers, directors or agents acting or purporting to act on their respective behalf.

 

Section 1313.  Successors and Assigns.

 

All terms, agreements and conditions of this Article Thirteen shall extend to and be binding upon each Guarantor and its successors and permitted assigns and shall enure to the benefit of and may be enforced by the Trustee and its successors and assigns; provided, however, that the Guarantors may not assign any of their rights or obligations hereunder other than in accordance with Article Eight.

 

Section 1314.  Release of Guarantee.

 

Concurrently with the payment in full of all of the Indenture Obligations, the Guarantors shall be released from and relieved of their obligations under this Article Thirteen.  Upon the delivery by the Company to the Trustee of an Officer’s Certificate and, if requested by the Trustee, an Opinion of Counsel to the effect that the transaction giving rise to the release of this Guarantee was made by the Company in accordance with the provisions of this Indenture and the Securities, the Trustee shall execute any

 

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documents reasonably required in order to evidence the release of the Guarantors from their obligations under this Guarantee.  If any of the Indenture Obligations are revived and reinstated after the termination of this Guarantee, then all of the obligations of the Guarantors under this Guarantee shall be revived and reinstated as if this Guarantee had not been terminated until such time as the Indenture Obligations are paid in full, and each Guarantor shall enter into an amendment to this Guarantee, reasonably satisfactory to the Trustee, evidencing such revival and reinstatement.

 

This Guarantee shall terminate with respect to each Guarantor and shall be automatically and unconditionally released and discharged as provided in Section 1013(b) or Section 1013(c), as the case may be.

 

Each Guarantor shall be released from its obligations under this Indenture and its Guarantee if the Company designates such Guarantor as an Unrestricted Subsidiary and such designation complies with the other applicable provisions of this Indenture or in connection with any legal defeasance of the Securities in accordance with Section 402.

 

The release of a Guarantor from its Guarantee and its obligations under this Indenture in accordance with the provisions of this Section 1314 shall not preclude the future applications of Section 1013(a) to such Person.

 

Section 1315.  Execution of Guarantee.

 

To evidence the Guarantee, each Guarantor hereby agrees to execute the guarantee substantially in the form set forth in Section 206, to be endorsed on each Security authenticated and delivered by the Trustee and that this Indenture shall be executed (1) on behalf of each corporate Guarantor by its Chairman of the Board, its President, one of its Vice Presidents or its Secretary, (2) on behalf of each Guarantor that is a partnership, by one or more of its general partners and (3) by each Guarantor that is a limited liability company, by one or more of its managers or by its sole member.  The signature of any of these officers, partners, managers, or members on the Securities may be manual or facsimile.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, all as of the day and year first above written.

 

	
 
    	
SINCLAIR TELEVISION   GROUP, INC., as Issuer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David B. Amy
    
	
 
    	
 
    	
Name:
    	
David Amy
    
	
 
    	
 
    	
Title:
    	
Secretary
    

 

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GUARANTORS:
    
	
 
    	
 
    
	
 
    	
SINCLAIR BROADCAST   GROUP, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David B. Amy
    
	
 
    	
 
    	
Name:
    	
David Amy
    
	
 
    	
 
    	
Title:
    	
Executive Vice President/Chief Operating Officer
    
	
 
    	
 
    	
 
    
	
 
    	
SINCLAIR   MEDIA I, INC.
    
	
 
    	
WSMH, INC.
    
	
 
    	
WGME, INC.
    
	
 
    	
SINCLAIR   MEDIA III, INC.
    
	
 
    	
WYZZ   LICENSEE, INC.
    
	
 
    	
WSYX   LICENSEE, INC.
    
	
 
    	
SINCLAIR   ACQUISITION VII, INC.
    
	
 
    	
SINCLAIR   ACQUISITION VIII, INC.
    
	
 
    	
SINCLAIR   ACQUISITION IX, INC.
    
	
 
    	
SINCLAIR   ACQUISITION X, INC.
    
	
 
    	
MONTECITO   BROADCASTING CORPORATION
    
	
 
    	
CHANNEL   33, INC.
    
	
 
    	
NEW   YORK TELEVISION, INC.
    
	
 
    	
BIRMINGHAM   (WABM-TV) LICENSEE, INC.
    
	
 
    	
RALEIGH   (WRDC-TV) LICENSEE, INC.
    
	
 
    	
SAN   ANTONIO (KRRT-TV) LICENSEE, INC.
    
	
 
    	
WVTV   LICENSEE, INC.
    
	
 
    	
CHESAPEAKE   TELEVISION, INC.
    
	
 
    	
SINCLAIR   TELEVISION OF SEATTLE, INC.
    
	
 
    	
FISHER   PROPERTIES, INC.
    
	
 
    	
SINCLAIR MEDIA SERVICES COMPANY
    
	
 
    	
SINCLAIR TELEVISION MEDIA, INC.
    
	
 
    	
FISHER MILLS, INC.
    
	
 
    	
SINCLAIR TELEVISION OF WASHINGTON, INC.
    
	
 
    	
SINCLAIR   PROPERTIES, LLC
    
	
 
    	
 
    
	
 
    	
KBSI   LICENSEE L.P.
    
	
 
    	
WMMP   LICENSEE L.P.
    
	
 
    	
By: 
    	
Sinclair Properties, LLC, General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
WKEF   LICENSEE L.P.
    
	
 
    	
By:
    	
Sinclair Communications, LLC, General Partner
    
	
 
    	
By:
    	
Sinclair   Television Group, Inc., Sole Member of Sinclair Communications, LLC
    

 

147

 

	
 
    	
WGME   LICENSEE, LLC
    
	
 
    	
By:
    	
WGME, Inc., Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
WICD   LICENSEE, LLC
    
	
 
    	
WICS   LICENSEE, LLC
    
	
 
    	
SINCLAIR   TELEVISION OF ILLINOIS, LLC
    
	
 
    	
By:
    	
Illinois Television, LLC, Member
    
	
 
    	
By:
    	
Sinclair   Communications LLC, Sole Member of Illinois Television, LLC
    
	
 
    	
By:
    	
Sinclair   Television Group, Inc., Sole Member of Sinclair Communications, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
WSMH   LICENSEE, LLC
    
	
 
    	
By:
    	
WSMH, Inc., Member
    
	
 
    	
 
    	
 
    
	
 
    	
WPGH   LICENSEE, LLC
    
	
 
    	
KDNL   LICENSEE, LLC
    
	
 
    	
WCWB   LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair Media I, Inc., Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
KLGT   LICENSEE, LLC
    
	
 
    	
By:
    	
WUCW, LLC, Sole Member
    
	
 
    	
By:
    	
Sinclair Communications, LLC, Sole Member
    
	
 
    	
By:
    	
Sinclair Television Group, Inc., Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
WCGV   LICENSEE, LLC
    
	
 
    	
By:
    	
Milwaukee Television, LLC, Sole Member
    
	
 
    	
By:
    	
Sinclair   Communications, LLC Sole Member of Milwaukee Television, LLC
    
	
 
    	
By:
    	
Sinclair   Television Group, Inc., Sole Member of Sinclair Communications, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
KOKH   LICENSEE, LLC
    
	
 
    	
By:
    	
KOKH, LLC, Sole Member of KOKH Licensee, LLC
    
	
 
    	
By:
    	
Sinclair   Communications, LLC, Sole Member of KOKH, LLC
    
	
 
    	
By:
    	
Sinclair   Television Group, Inc., Sole Member of Sinclair Communications, LLC
    
	
 
    	
 
    
	
 
    	
WCHS   LICENSEE, LLC
    
	
 
    	
WVAH   LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair Media III, Inc., Sole Member
    

 

148

 

	
 
    	
CHESAPEAKE   TELEVISION LICENSEE, LLC
    
	
 
    	
KABB   LICENSEE, LLC
    
	
 
    	
WLOS   LICENSEE, LLC
    
	
 
    	
SAN   ANTONIO TELEVISION, LLC
    
	
 
    	
KEYE   LICENSEE, LLC
    
	
 
    	
KUTV   LICENSEE, LLC
    
	
 
    	
WTVX   LICENSEE, LLC
    
	
 
    	
WPEC LICENSEE, LLC
    
	
 
    	
WWMT LICENSEE, LLC
    
	
 
    	
WRGB LICENSEE, LLC
    
	
 
    	
WCWN LICENSEE, LLC
    
	
 
    	
KTVL LICENSEE, LLC
    
	
 
    	
KFDM LICENSEE, LLC
    
	
 
    	
WUCW, LLC
    
	
 
    	
WWHO LICENSEE, LLC
    
	
 
    	
WFGX LICENSEE, LLC
    
	
 
    	
KUPN LICENSEE, LLC
    
	
 
    	
WEAR LICENSEE, LLC
    
	
 
    	
ILLINOIS TELEVISION, LLC
    
	
 
    	
KGAN LICENSEE, LLC
    
	
 
    	
KFXA LICENSEE, LLC
    
	
 
    	
WUPN LICENSEE, LLC
    
	
 
    	
WUTV LICENSEE, LLC
    
	
 
    	
WXLV LICENSEE, LLC
    
	
 
    	
WMSN LICENSEE, LLC
    
	
 
    	
WUHF LICENSEE, LLC
    
	
 
    	
MILWAUKEE TELEVISION, LLC
    
	
 
    	
WTAT LICENSEE, LLC
    
	
 
    	
WRLH LICENSEE, LLC
    
	
 
    	
WRGT LICENSEE, LLC
    
	
 
    	
KSAS LICENSEE, LLC
    
	
 
    	
WHP LICENSEE, LLC
    
	
 
    	
WKRC LICENSEE, LLC
    
	
 
    	
WOAI LICENSEE, LLC
    
	
 
    	
WTTA LICENSEE, LLC
    
	
 
    	
KFOX LICENSEE, LLC
    
	
 
    	
KRXI LICENSEE, LLC
    
	
 
    	
WTOV LICENSEE, LLC
    
	
 
    	
WJAC LICENSEE, LLC
    
	
 
    	
WFXL LICENSEE, LLC
    
	
 
    	
KVII LICENSEE, LLC
    
	
 
    	
KXRM LICENSEE, LLC
    
	
 
    	
WACH LICENSEE, LLC
    
	
 
    	
KGBT LICENSEE, LLC
    
	
 
    	
KTVO LICENSEE, LLC
    

 

149

 

	
 
    	
WPDE LICENSEE, LLC
    
	
 
    	
KHQA LICENSEE, LLC
    
	
 
    	
WSTQ LICENSEE, LLC
    
	
 
    	
WPBN LICENSEE, LLC
    
	
 
    	
KRCG LICENSEE, LLC
    
	
 
    	
WLUC LICENSEE, LLC
    
	
 
    	
WHOI LICENSEE, LLC
    
	
 
    	
WNWO LICENSEE, LLC
    
	
 
    	
KPTH LICENSEE, LLC
    
	
 
    	
WOLF LICENSEE, LLC
    
	
 
    	
WGFL LICENSEE, LLC
    
	
 
    	
WQMY LICENSEE, LLC
    
	
 
    	
SINCLAIR TELEVISION OF EL PASO, LLC
    
	
 
    	
WTVZ LICENSEE, LLC
    
	
 
    	
WLFL LICENSEE, LLC
    
	
 
    	
WRDC, LLC
    
	
 
    	
WTTO LICENSEE, LLC
    
	
 
    	
WTWC LICENSEE, LLC
    
	
 
    	
KOCB LICENSEE, LLC
    
	
 
    	
WDKY LICENSEE, LLC
    
	
 
    	
KOKH, LLC
    
	
 
    	
WZTV LICENSEE, LLC
    
	
 
    	
WNAB LICENSEE, LLC
    
	
 
    	
WTVC LICENSEE, LLC
    
	
 
    	
WUXP LICENSEE, LLC
    
	
 
    	
WGXA LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair Communications, LLC, Sole Member
    
	
 
    	
By:
    	
Sinclair   Television Group, Inc., Sole Member of Sinclair Communications, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
SINCLAIR   PROGRAMMING COMPANY, LLC
    
	
 
    	
SINCLAIR   COMMUNICATIONS, LLC
    
	
 
    	
CHESAPEAKE   MEDIA I, LLC
    
	
 
    	
SINCLAIR   TELEVISION OF FRESNO, LLC
    
	
 
    	
SINCLAIR   TELEVISION OF OMAHA, LLC
    
	
 
    	
SINCLAIR   NETWORKS GROUP, LLC
    
	
 
    	
SINCLAIR   DIGITAL GROUP, LLC
    
	
 
    	
By:
    	
Sinclair Television Group, Inc., Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
KDSM, LLC
    
	
 
    	
By:
    	
Sinclair Broadcast Group, Inc., Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
KDSM   LICENSEE, LLC
    
	
 
    	
By:
    	
KDSM, LLC, Sole Member of KDSM Licensee, LLC
    

 

150

 

	
 
    	
By:
    	
Sinclair   Broadcast Group, Inc., Sole Member of KDSM, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
WDKA   LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair Properties, LLC, Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
SINCLAIR   BROADCASTING OF SEATTLE, LLC 
    
	
 
    	
SINCLAIR   TELEVISION OF PORTLAND, LLC 
    
	
 
    	
SINCLAIR   RADIO OF SEATTLE, LLC
    
	
 
    	
SINCLAIR   MEDIA OF BOISE, LLC
    
	
 
    	
SINCLAIR TELEVISION OF OREGON, LLC
    
	
 
    	
SINCLAIR MEDIA OF SEATTLE, LLC
    
	
 
    	
SINCLAIR MEDIA OF WASHINGTON, LLC
    
	
 
    	
SINCLAIR INTERACTIVE MEDIA, LLC
    
	
 
    	
SINCLAIR SEATTLE LICENSEE, LLC
    
	
 
    	
SINCLAIR BAKERSFIELD LICENSEE, LLC
    
	
 
    	
SINCLAIR BOISE LICENSEE, LLC
    
	
 
    	
SINCLAIR YAKIMA LICENSEE, LLC
    
	
 
    	
SINCLAIR LEWISTON LICENSEE, LLC
    
	
 
    	
SINCLAIR PORTLAND LICENSEE, LLC
    
	
 
    	
SINCLAIR EUGENE LICENSEE, LLC
    
	
 
    	
SINCLAIR RADIO OF SEATTLE LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair Television   Media, Inc., Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
SINCLAIR KENNEWICK LICENSEE, LLC
    
	
 
    	
SINCLAIR La GRANDE LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair Television of   Washington, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
KFRE LICENSEE, LLC
    
	
 
    	
KMPH LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair Television of   Fresno, LLC, Sole Member
    
	
 
    	
By:
    	
Sinclair Television Group, Inc., Sole Member of Sinclair   Television of Fresno, LLC
    
	
 
    	
 
    
	
 
    	
KPTM LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair Television of   Omaha, LLC, Sole Member
    
	
 
    	
By:
    	
Sinclair Television Group, Inc., Sole Member of Sinclair   Television of Omaha, LLC
    
	
 
    	
 
    
	
 
    	
KDBC LICENSEE, LLC
    
	
 
    	
By:
    	
Sinclair Television of El   Paso, LLC, Sole Member
    
	
 
    	
By:
    	
Sinclair Communications LLC, Sole Member of Sinclair Television of El   Paso, LLC
    
	
 
    	
By:
    	
Sinclair Television Group, Inc., Sole Member of Sinclair   Communications, LLC
    

 

151

 

	
 
    	
By:
    	
/s/ David B. Amy
    
	
 
    	
 
    	
David Amy, in his capacity as Executive Vice President, Secretary or   Manager, as the case may be
    

 

152

 

	
 
    	
U.S. BANK NATIONAL ASSOCIATION, as Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Melody M. Scott
    
	
 
    	
 
    	
Name:
    	
Melody M. Scott
    
	
 
    	
 
    	
Title:
    	
AVP
    

 

 

ANNEX A

 

GUARANTORS

 

	
1
    	
Sinclair Broadcast Group, Inc., a Maryland corporation
    
	
2
    	
Sinclair Media I, Inc., a Maryland corporation
    
	
3
    	
WSMH, Inc., a Maryland corporation
    
	
4
    	
WGME, Inc., a Maryland corporation
    
	
5
    	
Sinclair Media III, Inc., a Maryland corporation
    
	
6
    	
WYZZ Licensee, Inc., a Delaware corporation
    
	
7
    	
WSYX Licensee, Inc., a Maryland corporation
    
	
8
    	
Sinclair Acquisition VII, Inc., a Maryland corporation
    
	
9
    	
Sinclair Acquisition VIII, Inc., a Maryland corporation
    
	
10
    	
Sinclair Acquisition IX, Inc., a Maryland corporation
    
	
11
    	
Sinclair Acquisition X, Inc., a Maryland corporation
    
	
12
    	
Montecito Broadcasting Corporation, a Delaware corporation
    
	
13
    	
Channel 33, Inc., a Nevada corporation
    
	
14
    	
New York Television, Inc., a Maryland corporation
    
	
15
    	
Sinclair Properties, LLC, a Virginia limited liability company
    
	
16
    	
KBSI Licensee L.P., a Virginia limited partnership
    
	
17
    	
WMMP Licensee L.P., a Virginia limited partnership
    
	
18
    	
WKEF Licensee L.P., a Virginia limited partnership
    
	
19
    	
WGME Licensee, LLC, a Maryland limited liability company
    
	
20
    	
WICD Licensee, LLC, a Maryland limited liability company
    
	
21
    	
WICS Licensee, LLC, a Maryland limited liability company
    
	
22
    	
KGAN Licensee, LLC, a Maryland limited liability company
    
	
23
    	
WSMH Licensee, LLC, a Maryland limited liability company
    
	
24
    	
WPGH Licensee, LLC, a Maryland limited liability company
    
	
25
    	
KDNL Licensee, LLC, a Maryland limited liability company
    
	
26
    	
WCWB Licensee, LLC, a Maryland limited liability company
    
	
27
    	
WTVZ Licensee, LLC, a Maryland limited liability company
    
	
28
    	
Chesapeake Television Licensee, LLC, a Maryland limited liability   company
    
	
29
    	
KABB Licensee, LLC, a Maryland limited liability company
    
	
30
    	
WLOS Licensee, LLC, a Maryland limited liability company
    
	
31
    	
KLGT Licensee, LLC, a Maryland limited liability company
    
	
32
    	
WCGV Licensee, LLC, a Maryland limited liability company
    
	
33
    	
KUPN Licensee, LLC, a Maryland limited liability company
    
	
34
    	
WEAR Licensee, LLC, a Maryland limited liability company
    
	
35
    	
WLFL Licensee, LLC, a Maryland limited liability company
    
	
36
    	
WTTO Licensee, LLC, a Maryland limited liability company
    
	
37
    	
WTWC Licensee, LLC, a Maryland limited liability company
    
	
38
    	
KOCB Licensee, LLC, a Maryland limited liability company
    
	
39
    	
WDKY Licensee, LLC, a Maryland limited liability company
    
	
40
    	
KOKH Licensee, LLC, a Maryland limited liability company
    

 

 

	
41
    	
WUPN Licensee, LLC, a Maryland limited liability company
    
	
42
    	
WUXP Licensee, LLC, a Maryland limited liability company
    
	
43
    	
WCHS Licensee, LLC, a Maryland limited liability company
    
	
44
    	
Birmingham (WABM-TV) Licensee, Inc., a Maryland corporation
    
	
45
    	
Raleigh (WRDC-TV) Licensee, Inc., a Maryland corporation
    
	
46
    	
San Antonio (KRRT-TV) Licensee, Inc., a Maryland corporation
    
	
47
    	
WVTV Licensee, Inc., a Maryland corporation
    
	
48
    	
WUHF Licensee, LLC, a Nevada limited liability company
    
	
49
    	
WMSN Licensee, LLC, a Nevada limited liability company
    
	
50
    	
WRLH Licensee, LLC, a Nevada limited liability company
    
	
51
    	
WUTV Licensee, LLC, a Nevada limited liability company
    
	
52
    	
WXLV Licensee, LLC, a Nevada limited liability company
    
	
53
    	
WZTV Licensee, LLC, a Nevada limited liability company
    
	
54
    	
WVAH Licensee, LLC, a Nevada limited liability company
    
	
55
    	
WTAT Licensee, LLC, a Nevada limited liability company
    
	
56
    	
WRGT Licensee, LLC, a Nevada limited liability company
    
	
57
    	
KDSM Licensee, LLC, a Maryland limited liability company
    
	
58
    	
KDSM, LLC, a Maryland limited liability company
    
	
59
    	
KFXA Licensee, LLC, a Nevada limited liability company
    
	
60
    	
San Antonio Television, LLC, a Delaware limited liability company
    
	
61
    	
Sinclair Communications, LLC, a Maryland limited liability company
    
	
62
    	
Sinclair Programming Company, LLC, a Maryland limited liability   company
    
	
63
    	
WDKA Licensee, LLC, a Nevada limited liability company
    
	
64
    	
WFGX Licensee, LLC, a Nevada limited liability company
    
	
65
    	
WNAB Licensee, LLC, a Nevada limited liability company
    
	
66
    	
KOKH, LLC, a Nevada limited liability company
    
	
67
    	
WRDC,   LLC, a Nevada limited liability company
    
	
68
    	
Milwaukee Television, LLC, a Wisconsin   limited liability company
    
	
69
    	
KEYE   Licensee, LLC, a Nevada limited liability company
    
	
70
    	
KUTV   Licensee, LLC, a Nevada limited liability company
    
	
71
    	
WTVX   Licensee, LLC, a Nevada limited liability company
    
	
72
    	
WPEC   Licensee, LLC, a Nevada limited liability company
    
	
73
    	
WWMT   Licensee, LLC, a Nevada limited liability company
    
	
74
    	
WRGB   Licensee, LLC, a Nevada limited liability company
    
	
75
    	
WCWN   Licensee, LLC, a Nevada limited liability company
    
	
76
    	
KTVL   Licensee, LLC, a Nevada limited liability company
    
	
77
    	
KFDM   Licensee, LLC, a Nevada limited liability company
    
	
78
    	
WTVC   Licensee, LLC, a Nevada limited liability company
    
	
79
    	
WUCW, LLC, a Maryland limited liability   company
    
	
80
    	
WWHO Licensee, LLC, a Nevada limited   liability company
    
	
81
    	
Illinois Television, LLC, a Maryland limited   liability company
    
	
82
    	
KSAS Licensee, LLC, a Nevada   limited liability company
    
	
83
    	
WHP Licensee, LLC, a Nevada   limited liability company
    
	
84
    	
WKRC Licensee, LLC, a Nevada   limited liability company
    
	
85
    	
WOAI Licensee, LLC, a Nevada   limited liability company
    
	
86
    	
WTTA Licensee, LLC, a Nevada   limited liability company
    

 

 

	
87
    	
KFOX Licensee, LLC, a Nevada limited liability company
    
	
88
    	
KRXI Licensee, LLC, a Nevada limited liability company
    
	
89
    	
WTOV Licensee, LLC, a Nevada limited liability company
    
	
90
    	
WJAC Licensee, LLC, a Nevada limited liability company
    
	
91
    	
WFXL Licensee, LLC, a Nevada limited liability company
    
	
92
    	
KVII Licensee, LLC, a Nevada limited liability company
    
	
93
    	
KXRM Licensee, LLC, a Nevada limited liability company
    
	
94
    	
WACH Licensee, LLC, a Nevada limited liability company
    
	
95
    	
KGBT Licensee, LLC, a Nevada limited liability company
    
	
96
    	
KTVO Licensee, LLC, a Nevada limited liability company
    
	
97
    	
WPDE Licensee, LLC, a Nevada limited liability company
    
	
98
    	
KHQA Licensee, LLC, a Nevada limited liability company
    
	
99
    	
WSTQ Licensee, LLC, a Nevada limited liability company
    
	
100
    	
WPBN Licensee, LLC, a Nevada limited liability company
    
	
101
    	
KRCG Licensee, LLC, a Nevada limited liability company
    
	
102
    	
WLUC Licensee, LLC, a Nevada limited liability company
    
	
103
    	
WHOI Licensee, LLC, a Nevada limited liability company
    
	
104
    	
WNWO Licensee, LLC, a Nevada limited liability company
    
	
105
    	
Chesapeake Television, Inc., a Maryland corporation
    
	
106
    	
Sinclair Television of Illinois, LLC, a Nevada limited liability   company
    
	
107
    	
Chesapeake   Media I, LLC, a Nevada limited liability company
    
	
108
    	
Fisher   Mills, Inc., a Washington corporation
    
	
109
    	
Fisher   Properties, Inc., a Washington corporation
    
	
110
    	
KPTH   Licensee, LLC, a Nevada limited liability company
    
	
111
    	
Sinclair   Bakersfield Licensee, LLC, a Nevada limited liability company
    
	
112
    	
Sinclair   Boise Licensee, LLC, a Nevada limited liability company
    
	
113
    	
Sinclair   Broadcasting of Seattle, LLC, a Delaware limited liability company
    
	
114
    	
Sinclair   Eugene Licensee, LLC, a Nevada limited liability company
    
	
115
    	
Sinclair   Interactive Media, LLC, a Delaware limited liability company
    
	
116
    	
Sinclair   Kennewick Licensee, LLC, a Nevada limited liability company
    
	
117
    	
Sinclair   La Grande Licensee, LLC, a Nevada limited liability company
    
	
118
    	
Sinclair   Lewiston Licensee, LLC, a Nevada limited liability company
    
	
119
    	
Sinclair   Media of Boise, LLC, a Delaware limited liability company
    
	
120
    	
Sinclair   Media of Seattle, LLC, a Delaware limited liability company
    
	
121
    	
Sinclair   Media of Washington, LLC, a Delaware limited liability company
    
	
122
    	
Sinclair   Media Services Company, a Washington corporation
    
	
123
    	
Sinclair   Portland Licensee, LLC, a Nevada limited liability company
    
	
124
    	
Sinclair   Radio of Seattle, LLC, a Delaware limited liability company
    
	
125
    	
Sinclair   Radio of Seattle Licensee, LLC, a Nevada limited liability company
    
	
126
    	
Sinclair   Seattle Licensee, LLC, a Nevada limited liability company
    
	
127
    	
Sinclair   Television Media, Inc., a Washington corporation
    
	
128
    	
Sinclair   Television of Oregon, LLC, a Delaware limited liability company
    
	
129
    	
Sinclair   Television of Portland, LLC, a Delaware limited liability company
    
	
130
    	
Sinclair   Television of Seattle, Inc., a Washington corporation
    
	
131
    	
Sinclair   Television of Washington, Inc., a Washington corporation
    
	
132
    	
Sinclair   Yakima Licensee LLC, a Nevada limited liability company
    

 

 

	
133
    	
WOLF   Licensee, LLC, a Nevada limited liability company
    
	
134
    	
WGFL   Licensee, LLC, a Nevada limited liability company
    
	
135
    	
WQMY   Licensee, LLC, a Nevada limited liability company
    
	
136
    	
Sinclair   Television of Omaha, LLC, a Delaware limited liability company
    
	
137
    	
Sinclair   Television of Fresno, LLC, a Delaware limited liability company
    
	
138
    	
Sinclair   Television of El Paso, LLC, a Delaware limited liability company
    
	
139
    	
KFRE   Licensee, LLC, a Delaware limited liability company
    
	
140
    	
KMPH   Licensee, LLC, a Delaware limited liability company
    
	
141
    	
KPTM   Licensee, LLC, a Delaware limited liability company
    
	
142
    	
KDBC   Licensee, LLC, a Delaware limited liability company
    
	
143
    	
WGXA   Licensee, LLC, a Nevada limited liability company
    
	
144
    	
Sinclair   Digital Group, LLC, a Maryland limited liability company
    
	
145
    	
Sinclair   Networks Group, LLC, a Maryland limited liability company
    

 

 

Schedule I

 

Contract Stations

 

The channels indicated below are based on the new digital channel allotments.

 

	
Market
    	
 
    	
Stations
    	
 
    	
Status
    	
 
    	
Actual RE
   Channel
    	
 
    	
Affiliation
    	
 
    	
License Subsidiary
    
	
Asheville, North Carolina and Greenville/ Spartanburg/Anderson, South   Carolina
    	
 
    	
WMYA-TV
    	
 
    	
Contract
    	
 
    	
14
    	
 
    	
MNT
    	
 
    	
N/A
    
	
Baltimore, Maryland
    	
 
    	
WNUV(TV)
    	
 
    	
Contract
    	
 
    	
40
    	
 
    	
CW
    	
 
    	
N/A
    
	
Baltimore, Maryland
    	
 
    	
WUTB(TV)
    	
 
    	
Contract
    	
 
    	
41
    	
 
    	
MNT
    	
 
    	
N/A
    
	
Beaumont / Port Arthur, Texas
    	
 
    	
KBTV-TV
    	
 
    	
Contract
    	
 
    	
40
    	
 
    	
FOX
    	
 
    	
N/A
    
	
Birmingham, Alabama
    	
 
    	
WDBB(TV)
    	
 
    	
Contract
    	
 
    	
18
    	
 
    	
CW
    	
 
    	
N/A
    
	
Cedar Rapids/Waterloo/Iowa City/Dubuque, Iowa
    	
 
    	
KFXA(TV)
    	
 
    	
Contract
    	
 
    	
27
    	
 
    	
FOX
    	
 
    	
N/A
    
	
Champaign / Springfield / Decatur, IL
    	
 
    	
WBUI(TV)
    	
 
    	
Contract
    	
 
    	
22
    	
 
    	
CW
    	
 
    	
N/A
    
	
 
    	
 
    	
WCCU(TV)
    	
 
    	
Contract
    	
 
    	
26
    	
 
    	
FOX
    	
 
    	
 
    
	
 
    	
 
    	
WRSP-TV
    	
 
    	
Contract
    	
 
    	
44
    	
 
    	
FOX
    	
 
    	
 
    

 

 

	
Market
    	
 
    	
Stations
    	
 
    	
Status
    	
 
    	
Actual RE
   Channel
    	
 
    	
Affiliation
    	
 
    	
License Subsidiary
    
	
Charleston, South Carolina
    	
 
    	
WTAT-TV
    	
 
    	
Contract
    	
 
    	
24
    	
 
    	
FOX
    	
 
    	
N/A
    
	
Charleston/Huntington, West Virginia
    	
 
    	
WVAH-TV
    	
 
    	
Contract
    	
 
    	
19
    	
 
    	
FOX
    	
 
    	
N/A
    
	
Cincinnati, Ohio
    	
 
    	
WSTR-TV
    	
 
    	
Contract
    	
 
    	
33
    	
 
    	
MNT
    	
 
    	
N/A
    
	
Columbus, Ohio
    	
 
    	
WTTE(TV)
    	
 
    	
Contract
    	
 
    	
36
    	
 
    	
FOX
    	
 
    	
N/A
    
	
Columbus, Ohio
    	
 
    	
WWHO(TV)
    	
 
    	
Contract
    	
 
    	
46
    	
 
    	
CW
    	
 
    	
N/A
    
	
Dayton, Ohio
    	
 
    	
WRGT-TV
    	
 
    	
Contract
    	
 
    	
30
    	
 
    	
FOX
    	
 
    	
N/A
    
	
Eugene, Oregon
    	
 
    	
KMCB(TV)
    	
 
    	
Contract
    	
 
    	
22
    	
 
    	
NBC
    	
 
    	
N/A
    
	
 
    	
 
    	
KMTR(TV)
    	
 
    	
Contract
    	
 
    	
17
    	
 
    	
NBC
    	
 
    	
 
    
	
 
    	
 
    	
KTCW(TV)
    	
 
    	
Contract
    	
 
    	
45
    	
 
    	
NBC
    	
 
    	
 
    
	
Flint-Saginaw-Bay City, Michigan
    	
 
    	
WBSF(TV)
    	
 
    	
Contract
    	
 
    	
46
    	
 
    	
CW
    	
 
    	
N/A
    
	
Flint-Saginaw-Bay City, Michigan
    	
 
    	
WEYI-TV
    	
 
    	
Contract
    	
 
    	
30
    	
 
    	
NBC
    	
 
    	
N/A
    
	
Harrisburg/Lancaster/Lebanon/York, Pennsylvania
    	
 
    	
WLYH-TV
    	
 
    	
Contract
    	
 
    	
23
    	
 
    	
CW
    	
 
    	
N/A
    
	
Myrtle Beach-Florence, South Carolina
    	
 
    	
WWMB(TV)
    	
 
    	
Contract
    	
 
    	
21
    	
 
    	
CW
    	
 
    	
N/A
    
	
Nashville, Tennessee
    	
 
    	
WNAB(TV)
    	
 
    	
Contract/Ownership Pending
    	
 
    	
23
    	
 
    	
CW
    	
 
    	
N/A
    
	
Omaha, Nebraska
    	
 
    	
KXVO(TV)
    	
 
    	
Contract
    	
 
    	
38
    	
 
    	
CW
    	
 
    	
N/A
    
	
Paducah-Cape Girardeau-Harrisburg-Mt Vernon
    	
 
    	
WDKA(TV)
    	
 
    	
Contract
    	
 
    	
49
    	
 
    	
MNT
    	
 
    	
N/A
    

 

 

	
Market
    	
 
    	
Stations
    	
 
    	
Status
    	
 
    	
Actual RE
   Channel
    	
 
    	
Affiliation
    	
 
    	
License Subsidiary
    
	
Mobile, Alabama-Pensacola, Florida
    	
 
    	
WJTC(TV)
    	
 
    	
Contract
    	
 
    	
45
    	
 
    	
N/A
    	
 
    	
N/A
    
	
 
    	
 
    	
WPMI-TV
    	
 
    	
Contract
    	
 
    	
15
    	
 
    	
NBC
    	
 
    	
 
    
	
Portland-Auburn, Maine
    	
 
    	
WPFO(TV)
    	
 
    	
Contract
    	
 
    	
23
    	
 
    	
FOX
    	
 
    	
N/A
    
	
Reno, Nevada
    	
 
    	
KAME-TV
    	
 
    	
Contract
    	
 
    	
20
    	
 
    	
MNT
    	
 
    	
N/A
    
	
Reno, Nevada
    	
 
    	
KRNV-DT
    	
 
    	
Contract
    	
 
    	
7
    	
 
    	
NBC
    	
 
    	
N/A
    
	
Rochester, New York
    	
 
    	
WHAM-TV
    	
 
    	
Contract
    	
 
    	
13
    	
 
    	
ABC
    	
 
    	
N/A
    
	
Salt Lake City, Utah
    	
 
    	
KENV-DT
    	
 
    	
Contract
    	
 
    	
10
    	
 
    	
NBC
    	
 
    	
N/A
    
	
San Antonio, Texas
    	
 
    	
KMYS(TV)
    	
 
    	
Contract
    	
 
    	
32
    	
 
    	
CW
    	
 
    	
N/A
    
	
Sioux City, Iowa
    	
 
    	
KMEG(TV)
    	
 
    	
Contract
    	
 
    	
39
    	
 
    	
CBS
    	
 
    	
N/A
    
	
Syracuse, New York
    	
 
    	
WTVH(TV)
    	
 
    	
Contract
    	
 
    	
47
    	
 
    	
CBS
    	
 
    	
N/A
    
	
Traverse City-Cadillac, Michigan
    	
 
    	
WGTQ(TV)
    	
 
    	
Contract
    	
 
    	
8
    	
 
    	
ABC
    	
 
    	
N/A
    
	
 
    	
 
    	
WGTU(TV)
    	
 
    	
Contract
    	
 
    	
29
    	
 
    	
ABC
    	
 
    	
 
    
	
Wichita-Hutchinson, Kansas
    	
 
    	
KMTW(TV)
    	
 
    	
Contract
    	
 
    	
35
    	
 
    	
MNT
    	
 
    	
N/A
    

 

 

Schedule II

 

Owned Stations

 

The channels indicated below are based on the new digital channel allotments.

 

	
Market
    	
 
    	
Stations
    	
 
    	
Channel
    	
 
    	
Affiliation
    	
 
    	
License Subsidiary
    
	
Albany, Georgia
    	
 
    	
WFXL(TV)
    	
 
    	
12
    	
 
    	
FOX
    	
 
    	
WFXL Licensee, LLC
    
	
Albany-Schenectady-Troy, New York
    	
 
    	
WCWN(TV)
    	
 
    	
43
    	
 
    	
CW
    	
 
    	
WCWN Licensee, LLC
    
	
Albany-Schenectady-Troy, New York
    	
 
    	
WRGB(TV)
    	
 
    	
6
    	
 
    	
CBS
    	
 
    	
WRGB Licensee, LLC
    
	
Amarillo, Texas
    	
 
    	
KVIH-TV
    	
 
    	
12
    	
 
    	
CW
    	
 
    	
KVII Licensee, LLC
    
	
 
    	
 
    	
KVII-TV
    	
 
    	
7
    	
 
    	
ABC
    	
 
    	
 
    
	
Austin, Texas
    	
 
    	
KEYE-TV
    	
 
    	
43
    	
 
    	
CBS
    	
 
    	
KEYE Licensee, LLC
    
	
Bakersfield, California
    	
 
    	
KBAK-TV
    	
 
    	
33
    	
 
    	
CBS
    	
 
    	
Sinclair Bakersfield   Licensee, LLC
    
	
 
    	
 
    	
KBFX-CD
    	
 
    	
29
    	
 
    	
FOX
    	
 
    	
 
    
	
Baltimore, Maryland
    	
 
    	
WBFF(TV)
    	
 
    	
46
    	
 
    	
FOX
    	
 
    	
Chesapeake Television   Licensee, LLC
    
	
Beaumont-Port Arthur, Texas
    	
 
    	
KFDM(TV)
    	
 
    	
25
    	
 
    	
CBS
    	
 
    	
KFDM Licensee, LLC
    
	
Birmingham, Alabama
    	
 
    	
WABM(TV)
    	
 
    	
36
    	
 
    	
MNT
    	
 
    	
Birmingham (WABM-TV)   Licensee, Inc.
    
	
 
    	
 
    	
WTTO(TV)
    	
 
    	
28
    	
 
    	
CW
    	
 
    	
WTTO Licensee, LLC
    

 

 

	
Market
    	
 
    	
Stations
    	
 
    	
Channel
    	
 
    	
Affiliation
    	
 
    	
License Subsidiary
    
	
Boise, Idaho
    	
 
    	
KBOI-TV
    	
 
    	
9
    	
 
    	
CBS
    	
 
    	
Sinclair Boise Licensee,   LLC
    
	
 
    	
 
    	
KYUU-LD
    	
 
    	
28
    	
 
    	
CW
    	
 
    	
 
    
	
Buffalo, New York
    	
 
    	
WNYO-TV
    	
 
    	
49
    	
 
    	
MNT
    	
 
    	
New York   Television, Inc.
    
	
 
    	
 
    	
WUTV(TV)
    	
 
    	
14
    	
 
    	
FOX
    	
 
    	
WUTV Licensee, LLC
    
	
Cedar Rapids-Waterloo-Iowa City-Dubuque, Iowa
    	
 
    	
KGAN(TV)
    	
 
    	
29
    	
 
    	
CBS
    	
 
    	
KGAN Licensee, LLC
    
	
Champaign-Springfield-Decatur, Illinois
    	
 
    	
WICD(TV)
    	
 
    	
41
    	
 
    	
ABC
    	
 
    	
WICD Licensee, LLC
    
	
 
    	
 
    	
WICS(TV)
    	
 
    	
42
    	
 
    	
ABC
    	
 
    	
WICS Licensee, LLC
    
	
Charleston, South Carolina
    	
 
    	
WMMP(TV)
    	
 
    	
36
    	
 
    	
MNT
    	
 
    	
WMMP Licensee L.P.
    
	
Charleston-Huntington, West Virginia
    	
 
    	
WCHS-TV
    	
 
    	
41
    	
 
    	
ABC
    	
 
    	
WCHS Licensee, LLC
    
	
Chattanooga, Tennessee
    	
 
    	
WTVC(TV)
    	
 
    	
9
    	
 
    	
ABC
    	
 
    	
WTVC Licensee, LLC
    
	
Cincinnati, Ohio
    	
 
    	
WKRC-TV
    	
 
    	
12
    	
 
    	
CBS
    	
 
    	
WKRC Licensee, LLC
    
	
Colorado Springs-Pueblo, Colorado
    	
 
    	
KXRM-TV
    	
 
    	
22
    	
 
    	
FOX
    	
 
    	
KXRM Licensee, LLC
    
	
 
    	
 
    	
KXTU-LD
    	
 
    	
20
    	
 
    	
CW
    	
 
    	
 
    

 

 

	
Market
    	
 
    	
Stations
    	
 
    	
Channel
    	
 
    	
Affiliation
    	
 
    	
License Subsidiary
    
	
Columbia,   South Carolina
    	
 
    	
WACH(TV)
    	
 
    	
48
    	
 
    	
FOX
    	
 
    	
WACH Licensee, LLC
    
	
Columbia-Jefferson City, Missouri
    	
 
    	
KRCG(TV)
    	
 
    	
12
    	
 
    	
CBS
    	
 
    	
KRCG Licensee, LLC
    
	
Columbus, Ohio
    	
 
    	
WSYX(TV)
    	
 
    	
48
    	
 
    	
ABC
    	
 
    	
WSYX Licensee, Inc.
    
	
Dayton, Ohio
    	
 
    	
WKEF(TV)
    	
 
    	
51
    	
 
    	
ABC
    	
 
    	
WKEF Licensee L.P.
    
	
Des Moines-Ames, Iowa
    	
 
    	
KDSM-TV
    	
 
    	
16
    	
 
    	
FOX
    	
 
    	
KDSM Licensee, LLC
    
	
El Paso, Texas
    	
 
    	
KDBC-TV
    	
 
    	
18
    	
 
    	
CBS
    	
 
    	
KDBC Licensee , LLC
    
	
 
    	
 
    	
KFOX-TV
    	
 
    	
15
    	
 
    	
FOX
    	
 
    	
KFOX Licensee, LLC
    
	
Eugene, Oregon
    	
 
    	
KCBY-TV
    	
 
    	
11
    	
 
    	
CBS
    	
 
    	
Sinclair Eugene Licensee,   LLC
    
	
 
    	
 
    	
KPIC(TV)
    	
 
    	
19
    	
 
    	
CBS
    	
 
    	
South West Oregon TV   Broadcasting Corp.
    
	
 
    	
 
    	
KVAL-TV
    	
 
    	
13
    	
 
    	
CBS
    	
 
    	
Sinclair Eugene Licensee,   LLC
    
	
Flint/Saginaw/Bay City, Michigan
    	
 
    	
WSMH(TV)
    	
 
    	
16
    	
 
    	
FOX
    	
 
    	
WSMH Licensee, LLC
    

 

 

	
Market
    	
 
    	
Stations
    	
 
    	
Channel
    	
 
    	
Affiliation
    	
 
    	
License Subsidiary
    
	
Fresno-Visalia, California
    	
 
    	
KFRE-TV
    	
 
    	
36
    	
 
    	
CW
    	
 
    	
KFRE Licensee , LLC
    
	
 
    	
 
    	
KMPH-TV
    	
 
    	
28
    	
 
    	
FOX
    	
 
    	
KMPH Licensee, LLC
    
	
Grand Rapids-Kalamazoo-Battle Creek, Michigan
    	
 
    	
WWMT(TV)
    	
 
    	
8
    	
 
    	
CBS
    	
 
    	
WWMT Licensee, LLC
    
	
Greensboro/Winston-Salem/High Point, North Carolina
    	
 
    	
WMYV(TV)
    	
 
    	
33
    	
 
    	
MNT
    	
 
    	
WUPN Licensee, LLC
    
	
 
    	
 
    	
WXLV-TV
    	
 
    	
29
    	
 
    	
ABC
    	
 
    	
WXLV Licensee, LLC
    
	
Greenville-Spartanburg, South Carolina-Asheville, North Carolina
    	
 
    	
WLOS(TV)
    	
 
    	
13
    	
 
    	
ABC
    	
 
    	
WLOS Licensee, LLC
    
	
Harlingen-Weslaco-Brownsville-McAllen, Texas
    	
 
    	
KGBT-TV
    	
 
    	
31
    	
 
    	
CBS
    	
 
    	
KGBT Licensee, LLC
    
	
Harrisburg/Lancaster/Lebanon/York, Pennsylvania
    	
 
    	
WHP-TV
    	
 
    	
21
    	
 
    	
CBS
    	
 
    	
WHP Licensee, LLC
    
	
Johnstown-Altoona, Pennsylvania
    	
 
    	
WJAC-TV
    	
 
    	
34
    	
 
    	
NBC
    	
 
    	
WJAC Licensee, LLC
    
	
Las Vegas, Nevada
    	
 
    	
KVCW(TV)
    	
 
    	
29
    	
 
    	
CW
    	
 
    	
Channel 33, Inc.
    
	
 
    	
 
    	
KVMY(TV)
    	
 
    	
22
    	
 
    	
MNT
    	
 
    	
KUPN Licensee, LLC
    
	
Lexington, Kentucky
    	
 
    	
WDKY-TV
    	
 
    	
31
    	
 
    	
FOX
    	
 
    	
WDKY Licensee, LLC
    
	
Madison, Wisconsin
    	
 
    	
WMSN-TV
    	
 
    	
49
    	
 
    	
FOX
    	
 
    	
WMSN Licensee, LLC
    

 

 

	
Market
    	
 
    	
Stations
    	
 
    	
Channel
    	
 
    	
Affiliation
    	
 
    	
License Subsidiary
    
	
Marquette, Michigan
    	
 
    	
WLUC-TV
    	
 
    	
35
    	
 
    	
NBC
    	
 
    	
WLUC Licensee, LLC
    
	
Medford-Klamath Falls, Oregon
    	
 
    	
KTVL(TV)
    	
 
    	
10
    	
 
    	
CBS
    	
 
    	
KTVL Licensee, LLC
    
	
Milwaukee, Wisconsin
    	
 
    	
WCGV-TV
    	
 
    	
25
    	
 
    	
MNT
    	
 
    	
WCGV Licensee, LLC
    
	
 
    	
 
    	
WVTV(TV)
    	
 
    	
18
    	
 
    	
CW
    	
 
    	
WVTV Licensee, Inc.
    
	
Minneapolis/St. Paul, Minnesota
    	
 
    	
WUCW(TV)
    	
 
    	
22
    	
 
    	
CW
    	
 
    	
KLGT Licensee, LLC
    
	
Mobile,   Alabama-Pensacola, Florida
    	
 
    	
WEAR-TV
    	
 
    	
17
    	
 
    	
ABC
    	
 
    	
WEAR Licensee, LLC
    
	
 
    	
 
    	
WFGX(TV)
    	
 
    	
50
    	
 
    	
MNT
    	
 
    	
WFGX Licensee, LLC
    
	
Myrtle Beach-Florence, South Carolina
    	
 
    	
WPDE-TV
    	
 
    	
16
    	
 
    	
ABC
    	
 
    	
WPDE Licensee, LLC
    
	
Nashville, Tennessee
    	
 
    	
WUXP-TV
    	
 
    	
21
    	
 
    	
MNT
    	
 
    	
WUXP Licensee, LLC
    
	
 
    	
 
    	
WZTV(TV)
    	
 
    	
15
    	
 
    	
FOX
    	
 
    	
WZTV Licensee, LLC
    
	
Norfolk-Portsmouth-Newport News, Virginia
    	
 
    	
WTVZ-TV
    	
 
    	
33
    	
 
    	
MNT
    	
 
    	
WTVZ Licensee, LLC
    
	
Oklahoma City, Oklahoma
    	
 
    	
KOCB(TV)
    	
 
    	
33
    	
 
    	
CW
    	
 
    	
KOCB Licensee, LLC
    
	
 
    	
 
    	
KOKH-TV
    	
 
    	
24
    	
 
    	
FOX
    	
 
    	
KOKH Licensee, LLC
    

 

 

	
Market
    	
 
    	
Stations
    	
 
    	
Channel
    	
 
    	
Affiliation
    	
 
    	
License Subsidiary
    
	
Omaha, Nebraska
    	
 
    	
KPTM(TV)
    	
 
    	
43
    	
 
    	
FOX
    	
 
    	
KPTM Licensee, LLC
    
	
Ottumwa, IA-Kirksville, Missouri
    	
 
    	
KTVO(TV)
    	
 
    	
33
    	
 
    	
ABC
    	
 
    	
KTVO Licensee, LLC
    
	
Paducah-Cape Girardeau-Harrisburg-Mt. Vernon
    	
 
    	
KBSI(TV)
    	
 
    	
22
    	
 
    	
FOX
    	
 
    	
KBSI Licensee L.P.
    
	
Peoria-Bloomington, Illinois
    	
 
    	
WHOI(TV)
    	
 
    	
19
    	
 
    	
ABC
    	
 
    	
WHOI Licensee, LLC
    
	
Pittsburgh, Pennsylvania
    	
 
    	
WPGH-TV
    	
 
    	
43
    	
 
    	
FOX
    	
 
    	
WPGH Licensee, LLC
    
	
Pittsburgh, Pennsylvania
    	
 
    	
WPMY(TV)
    	
 
    	
42
    	
 
    	
MNT
    	
 
    	
WCWB Licensee, LLC
    
	
Portland, Oregon
    	
 
    	
KATU(TV)
    	
 
    	
43
    	
 
    	
ABC
    	
 
    	
Sinclair Portland   Licensee, LLC
    
	
 
    	
 
    	
KUNP(TV)
    	
 
    	
16
    	
 
    	
Univision
    	
 
    	
Sinclair LaGrande   Licensee, LLC
    
	
 
    	
 
    	
KUNP-LD
    	
 
    	
47
    	
 
    	
Univision
    	
 
    	
 
    
	
Portland-Auburn, Maine
    	
 
    	
WGME-TV
    	
 
    	
38
    	
 
    	
CBS
    	
 
    	
WGME Licensee, LLC
    
	
Quincy, IL-Hannibal, MO-Keokuk, Iowa
    	
 
    	
KHQA-TV
    	
 
    	
7
    	
 
    	
CBS
    	
 
    	
KHQA Licensee, LLC
    
	
Raleigh/Durham, North Carolina
    	
 
    	
WLFL(TV)
    	
 
    	
27
    	
 
    	
CW
    	
 
    	
WLFL Licensee, LLC
    
	
 
    	
 
    	
WRDC(TV)
    	
 
    	
28
    	
 
    	
MNT
    	
 
    	
Raleigh (WRDC-TV)   Licensee, Inc.
    
	
Reno, Nevada
    	
 
    	
KRXI-TV
    	
 
    	
44
    	
 
    	
FOX
    	
 
    	
KRXI Licensee, LLC
    
	
Richmond-Petersburg, Virginia
    	
 
    	
WRLH-TV
    	
 
    	
26
    	
 
    	
FOX
    	
 
    	
WRLH Licensee, LLC
    

 

 

	
Market
    	
 
    	
Stations
    	
 
    	
Channel
    	
 
    	
Affiliation
    	
 
    	
License Subsidiary
    
	
Rochester, New York
    	
 
    	
WUHF(TV)
    	
 
    	
28
    	
 
    	
FOX
    	
 
    	
WUHF Licensee, LLC
    
	
Salt Lake City, Utah
    	
 
    	
KMYU(TV)
    	
 
    	
9
    	
 
    	
MNT
    	
 
    	
KUTV Licensee, LLC
    
	
 
    	
 
    	
KUTV(TV)
    	
 
    	
34
    	
 
    	
CBS
    	
 
    	
 
    
	
San Antonio, Texas
    	
 
    	
KABB(TV)
    	
 
    	
30
    	
 
    	
FOX
    	
 
    	
KABB Licensee, LLC
    
	
San Antonio, Texas
    	
 
    	
WOAI-TV
    	
 
    	
48
    	
 
    	
NBC
    	
 
    	
WOAI Licensee, LLC
    
	
Seattle-Tacoma, Washington
    	
 
    	
KOMO-TV
    	
 
    	
38
    	
 
    	
ABC
    	
 
    	
Sinclair Seattle Licensee,   LLC
    
	
Seattle-Tacoma, Washington
    	
 
    	
KUNS-TV
    	
 
    	
50
    	
 
    	
Univision
    	
 
    	
Sinclair Seattle Licensee,   LLC
    
	
Sioux City, Iowa
    	
 
    	
KBVK-LP
    	
 
    	
21
    	
 
    	
FOX
    	
 
    	
KPTH Licensee, LLC
    
	
 
    	
 
    	
KPTH(TV)
    	
 
    	
49
    	
 
    	
FOX
    	
 
    	
 
    
	
 
    	
 
    	
KPTP-LD
    	
 
    	
31
    	
 
    	
FOX
    	
 
    	
 
    
	
Spokane, Washington
    	
 
    	
KLEW-TV
    	
 
    	
32
    	
 
    	
CBS
    	
 
    	
Sinclair Lewiston   Licensee, LLC
    
	
St. Louis, Missouri
    	
 
    	
KDNL-TV
    	
 
    	
31
    	
 
    	
ABC
    	
 
    	
KDNL Licensee, LLC
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Syracuse, New York
    	
 
    	
WSTM-TV
    	
 
    	
24
    	
 
    	
NBC
    	
 
    	
WSTQ Licensee, LLC
    
	
 
    	
 
    	
WSTQ-LP
    	
 
    	
14
    	
 
    	
CW
    	
 
    	
 
    
	
Tallahassee, Florida-Thomasville, Georgia
    	
 
    	
WTWC-TV
    	
 
    	
40
    	
 
    	
NBC
    	
 
    	
WTWC Licensee, LLC
    
	
Tampa-St. Petersburg-Sarasota, Florida
    	
 
    	
WTTA(TV)
    	
 
    	
32
    	
 
    	
MNT
    	
 
    	
WTTA Licensee, LLC
    
	
Toledo, Ohio
    	
 
    	
WNWO-TV
    	
 
    	
49
    	
 
    	
NBC
    	
 
    	
WNWO Licensee, LLC
    

 

 

	
Market
    	
 
    	
Stations
    	
 
    	
Channel
    	
 
    	
Affiliation
    	
 
    	
License Subsidiary
    
	
Traverse City-Cadillac, Michigan
    	
 
    	
WPBN-TV
    	
 
    	
47
    	
 
    	
NBC
    	
 
    	
WPBN Licensee, LLC
    
	
 
    	
 
    	
WTOM-TV
    	
 
    	
35
    	
 
    	
NBC
    	
 
    	
 
    
	
West Palm Beach-Fort Pierce, Florida
    	
 
    	
WTCN-CA
    	
 
    	
43
    	
 
    	
MNT
    	
 
    	
WTVX Licensee, LLC
    
	
 
    	
 
    	
WTVX(TV)
    	
 
    	
34
    	
 
    	
CW
    	
 
    	
 
    
	
 
    	
 
    	
WWHB-CA
    	
 
    	
48
    	
 
    	
Azteca
    	
 
    	
 
    
	
 
    	
 
    	
WPEC(TV)
    	
 
    	
13
    	
 
    	
CBS
    	
 
    	
WPEC Licensee, LLC
    
	
Wheeling, West Virginia-Steubenville, Ohio
    	
 
    	
WTOV-TV
    	
 
    	
9
    	
 
    	
NBC
    	
 
    	
WTOV Licensee, LLC
    
	
Wichita - Hutchinson, Kansas
    	
 
    	
KAAS-LP
    	
 
    	
31
    	
 
    	
FOX
    	
 
    	
KSAS Licensee, LLC
    
	
 
    	
 
    	
KSAS-LP
    	
 
    	
29
    	
 
    	
FOX
    	
 
    	
 
    
	
 
    	
 
    	
KAAS-TV
    	
 
    	
17
    	
 
    	
FOX
    	
 
    	
 
    
	
 
    	
 
    	
KOCW(TV)
    	
 
    	
14
    	
 
    	
FOX
    	
 
    	
 
    
	
 
    	
 
    	
KSAS-TV
    	
 
    	
26
    	
 
    	
FOX
    	
 
    	
 
    
	
Yakima-Pasco-Richland-Kennewick,   Washington
    	
 
    	
KEPR-TV
    	
 
    	
18
    	
 
    	
CBS
    	
 
    	
Sinclair Yakima Licensee, LLC
    
	
 
    	
 
    	
KIMA-TV
    	
 
    	
33
    	
 
    	
CBS
    	
 
    	
 
    
	
 
    	
 
    	
KUNW-CD
    	
 
    	
30
    	
 
    	
Univision
    	
 
    	
Sinclair Kennewick Licensee, LLC
    
	
 
    	
 
    	
KVVK-CD
    	
 
    	
15
    	
 
    	
Univision
    	
 
    	
 
    
	
 
    	
 
    	
KORX-CA
    	
 
    	
16
    	
 
    	
Univision
    	
 
    	
 
    

 

 

EXHIBIT A

 

[Form of Regulation S Certificate]

 

REGULATION S CERTIFICATE

 

(For transfers pursuant to § 307(a)(i) of the Indenture referred to below)

 

U.S. Bank National Association,

as Securities Registrar

Two James Center

1021 East Cary Street

18th Floor

Richmond, Virginia 23219

 

Re:                             5.625% Senior Notes due 2024 of Sinclair Television

Group, Inc. (the “Securities”)

 

Reference is made to the Indenture, dated as of July 23, 2014 (the “Indenture”), among Sinclair Television Group, Inc., a Maryland corporation (the “Company”), the guarantors party thereto, and U.S. Bank National Association, as trustee.  Terms used herein and defined in the Indenture or in Regulation S or Rule 144 under the U.S. Securities Act of 1933, as amended (the “Securities Act”), are used herein as so defined.

 

This certificate relates to US$                         aggregate principal amount of Securities, which are evidenced by the following certificate(s) (the “Specified Securities”):

 

CUSIP No(s).

 

CERTIFICATE No(s).

 

CURRENTLY IN BOOK-ENTRY FORM: Yes o No o (check one)

 

The person in whose name this certificate is executed below (the “Undersigned”) hereby certifies that either (i) it is the sole beneficial owner of the Specified Securities or (ii) it is acting on behalf of all the beneficial owners of the Specified Securities and is duly authorized by them to do so.  Such beneficial owner or owners are referred to herein collectively as the “Owner.”  If the Specified Securities are represented by a Global Security, they are held through a Depositary or an Agent Member in the name of the Undersigned, as or on behalf of the Owner.  If the Specified Securities are not represented

 

 

by a Global Security, they are registered in the name of the Undersigned, as or on behalf of the Owner.

 

The Owner has requested that the Specified Securities be transferred to a person (the “Transferee”) who shall take delivery in the form of a Regulation S Global Security.  In connection with such transfer, the Owner hereby certifies that, unless such transfer is being effected pursuant to an effective registration statement under the Securities Act, it is being effected in accordance with Rule 904 or Rule 144 under the Securities Act and all applicable securities laws of the states of the United States and other jurisdictions.  Accordingly, the Owner hereby further certifies as follows:

 

(1)                                 Rule 904 Transfers.  If the transfer is being effected in accordance with Rule 904:

 

(A)                               the Owner is not a distributor of the Securities, an affiliate of the Company or any such distributor or a person acting on behalf of any of the foregoing;

 

(B)                               the offer of the Specified Securities was not made to a person in the United States;

 

(C)                               either:

 

(i)  at the time the buy order was originated, the Transferee was outside the United States or the Owner and any person acting on its behalf reasonably believed that the Transferee was outside the United States, or

 

(ii)  the transaction is being executed in, on or through the facilities of the Eurobond market, as regulated by the Association of International Bond Dealers, or another designated offshore securities market and neither the Owner nor any person acting on its behalf knows that the transaction has been prearranged with a buyer in the United States;

 

(D)                               no directed selling efforts have been made in the United States by or on behalf of the Owner or any affiliate thereof;

 

 

(E)                                if the Owner is a dealer in securities or has received a selling concession, fee or other remuneration in respect of the Specified Securities, and the transfer is to occur during the Restricted Period, then the requirements of Rule 904(b)(1) have been satisfied; and

 

(F)                                 the transaction is not, and is not a part of, a plan or scheme to evade the registration requirements of the Securities Act.

 

(2)                                 Rule 144 Transfers.  If the transfer is being effected pursuant to Rule 144, the transfer is occurring after a holding period of at least one year (computed in accordance with paragraph (d) of Rule 144) has elapsed since the date the Specified Securities were last acquired from the Company or from an affiliate (as such term is defined in Rule 144) of the Company, whichever is later, and the Owner is not, and during the preceding three months has not been, an affiliate of the Company.

 

 

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

 

	
Dated:
    	
 
    
	
 
    	
(Print the name of the Undersigned, as such term is defined in the   second paragraph of this certificate.)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
(If the Undersigned is a corporation, partnership or fiduciary, the   title of the person signing on behalf of the Undersigned must be stated.)
    

 

 

EXHIBIT B

 

[Form of Restricted Securities Transfer Certificate]

 

RESTRICTED SECURITIES TRANSFER CERTIFICATE

 

(For transfers pursuant to Section 307(a)(ii) of

the Indenture referred to below)

 

U.S. Bank National Association,

as Securities Registrar

Two James Center

1021 East Cary Street

18th Floor

Richmond, Virginia 23219

 

Re:                             5.625% Senior Notes due 2024 (the “Securities”)

 

Reference is made to the Indenture, dated as of July 23, 2014 (the “Indenture”), among Sinclair Television Group, Inc., a Maryland corporation (the “Company”), the guarantors party thereto and U.S. Bank National Association, as trustee.  Terms used herein and defined in the Indenture, Rule 144A or Rule 144 under the U.S. Securities Act of 1933, as amended (the “Securities Act”), are used herein as so defined.

 

This certificate relates to US$                           aggregate principal amount of Securities, which are evidenced by the following certificate(s) (the “Specified Securities”):

 

CUSIP No(s).

 

CERTIFICATE No(s).

 

CURRENTLY IN BOOK-ENTRY FORM: Yes o No o (check one)

 

The person in whose name this certificate is executed below (the “Undersigned”) hereby certifies that either (i) it is the sole beneficial owner of the Specified Securities or (ii) it is acting on behalf of all the beneficial owners of the Specified Securities and is duly authorized by them to do so. Such beneficial owner or owners are referred to herein collectively as the “Owner.”  If the Specified Securities are represented by a Global Security, they are held through a Depositary or an Agent Member in the name of the Undersigned, as or on behalf of the Owner. If the Specified Securities

 

 

are not represented by a Global Security, they are registered in the name of the Undersigned, as or on behalf of the Owner.

 

The Owner has requested that the Specified Securities be transferred to a person (the “Transferee”) who shall take delivery in the form of a Restricted Security. In connection with such transfer, the Owner hereby certifies that, unless such transfer is being effected pursuant to an effective registration statement under the Securities Act, it is being effected in accordance with Rule 144A or Rule 144 under the Securities Act and all applicable securities laws of the states of the United States.  Accordingly, the Owner hereby further certifies as:

 

(1)                                 Rule 144A Transfers.  If the transfer is being effected in accordance with Rule 144A:

 

(A)                               the Specified Securities are being transferred to a person that the Owner and any person acting on its behalf reasonably believe is a “qualified institutional buyer” within the meaning of Rule 144A, acquiring for its own account or for the account of a qualified institutional buyer; and

 

(B)                               the Owner and any person acting on its behalf have taken reasonable steps to ensure that the Transferee is aware that the Owner may be relying on Rule 144A in connection with the transfer; and

 

(C)                               the transaction is not, and is not part of, a plan or scheme to evade the registration requirements of the Securities Act.

 

(2)                                 Rule 144 Transfers.  If the transfer is being effected pursuant to Rule 144, the transfer is occurring after a holding period of at least one year (computed in accordance with paragraph (d) of Rule 144) has elapsed since the date the Specified Securities were last acquired from the Company or from an affiliate (as such term is defined in Rule 144) of the Company, whichever is later, and the Owner is not, and during the preceding three months has not been, an affiliate of the Company.

 

 

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

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
(Print the name of the Undersigned, as such term is defined in the   second paragraph of this certificate.)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
(If the Undersigned is a corporation, partnership or fiduciary, the   title of the person signing on behalf of the Undersigned must be stated.)
    

 

 

EXHIBIT C

 

[Form of Restricted Securities Transfer Certificate]

 

RESTRICTED SECURITIES TRANSFER CERTIFICATE

 

(For transfers pursuant to Section 307(a)(iii) of

the Indenture referred to below)

 

U.S. Bank National Association,

as Securities Registrar

Two James Center

1021 East Cary Street

18th Floor

Richmond, Virginia 23219

 

Re:                             5.625% Senior Notes due 2024 (the “Securities”)

 

Reference is made to the Indenture, dated as of July 23, 2014 (the “Indenture”), among Sinclair Television Group, Inc., a Maryland corporation (the “Company”), the guarantors party thereto and U.S. Bank National Association, as trustee.  Terms used herein and defined in the Indenture, or Rule 144 under the U.S. Securities Act of 1933, as amended (the “Securities Act”), are used herein as so defined.

 

This certificate relates to US$                           aggregate principal amount of Securities, which are evidenced by the following certificate(s) (the “Specified Securities”):

 

CUSIP No(s).

 

CERTIFICATE No(s).

 

CURRENTLY IN BOOK-ENTRY FORM: Yes o No o (check one)

 

The person in whose name this certificate is executed below (the “Undersigned”) hereby certifies that either (i) it is the sole beneficial owner of the Specified Securities or (ii) it is acting on behalf of all the beneficial owners of the Specified Securities and is duly authorized by them to do so. Such beneficial owner or owners are referred to herein collectively as the “Owner.”  If the Specified Securities are represented by a Global Security, they are held through a Depositary or an Agent Member in the name of the Undersigned, as or on behalf of the Owner. If the Specified Securities are not represented by a Global Security, they are registered in the name of the Undersigned, as or on behalf of the Owner.

 

 

The Owner has requested that the Specified Securities be transferred to a person (the “Transferee”) who shall take delivery in the form of a Restricted Security. In connection with such transfer, the Owner hereby certifies that, unless such transfer is being effected pursuant to an effective registration statement under the Securities Act, it is being effected to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of the Securities Act), who purchase for their own account or for the account of such institutional “accredited investor” at least $250,000 principal amount of the Securities, or in accordance with Rule 144 under the Securities Act and all applicable securities laws of the states of the United States and other jurisdictions.  Accordingly, the Owner hereby certifies as follows:

 

(1)                                 Transfers to Institutional Accredited Investors.  If the transfer is to an institutional “accredited investor”:

 

(A)                               the Specified Securities are being transferred to a person that the Owner and any person acting on its behalf reasonably believe is an institutional “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7), acquiring for its own account or for the account of an institutional “accredited investor” at least $250,000 principal amount of Securities;

 

(B)                               the Owner and any person acting on its behalf have taken reasonable steps to ensure that the Transferee is aware that the Owner may be relying on its status an institutional “accredited investor” in connection with the transfer; and

 

(C)                               the transaction is not, and is not part of, a plan or scheme to evade the registration requirements of the Securities Act.

 

(2)                                 Rule 144 Transfers.  If the transfer is being effected pursuant to Rule 144, the transfer is occurring after a holding period of at least one year (computed in accordance with paragraph (d) of Rule 144) has elapsed since the date the Specified Securities were last acquired from the Company or from an affiliate (as such term is defined in Rule 144) of the Company, whichever is later, and the Owner is not, and during the preceding three months has not been, an affiliate of the Company.

 

 

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

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
(Print the name of the Undersigned, as such term is defined in the   second paragraph of this certificate.)
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

(If the Undersigned is a corporation, partnership or fiduciary, the title of the person signing on behalf of the Undersigned must be stated.)

 

 

EXHIBIT D

 

[Form of Unrestricted Securities Certificate]

 

UNRESTRICTED SECURITIES CERTIFICATE

 

(For removal of Securities Act Legends pursuant to § 307(b))

 

U.S. Bank National Association,

as Securities Registrar

Two James Center

1021 East Cary Street

18th Floor

Richmond, Virginia 23219

 

Re:          5.625% Senior Notes due 2024 of Sinclair

Television Group, Inc. (the “Securities”)

 

Reference is made to the Indenture, dated as of July 23, 2014 (the “Indenture”), among Sinclair Television Group, Inc., a Maryland corporation (the “Company”), the guarantors party thereto, and U.S. Bank National Association, as trustee.  Terms used herein and defined in the Indenture or in Rule 144 under the U.S. Securities Act of 1933, as amended (the “Securities Act”), are used herein as so defined.

 

This certificate relates to US$                           aggregate principal amount of Securities, which are evidenced by the following certificate(s) (the “Specified Securities”):

 

CUSIP No(s).

 

CERTIFICATE No(s).

 

CURRENTLY IN BOOK-ENTRY FORM: Yes o No o (check one)

 

The person in whose name this certificate is executed below (the “Undersigned”) hereby certifies that either (i) it is the sole beneficial owner of the Specified Securities or (ii) it is acting on behalf of all the beneficial owners of the Specified Securities and is duly authorized by them to do so.  Such beneficial owner or owners are referred to herein collectively as the “Owner.”  If the Specified Securities are represented by a Global Security, they are held through the Depositary or an Agent Member in the name of the Undersigned, as or on behalf of the Owner.  If the Specified Securities are not represented by a Global Security, they are registered in the name of the Undersigned, as or on behalf

 

 

of the Owner.

 

The Owner has requested that the Specified Securities be exchanged for Securities bearing no Restricted Securities Legend pursuant to Section 307(b) of the Indenture.  In connection with such exchange, the Owner hereby certifies that the exchange is occurring after a holding period of at least one year (computed in accordance with paragraph (d) of Rule 144) has elapsed since the Specified Securities were last acquired from the Company or from an affiliate of the Company, whichever is later, and the Owner is not, and during the preceding three months has not been, an affiliate of the Company.  The Owner also acknowledges that any future transfers of the Specified Securities must comply with all applicable securities laws of the states of the United States and other jurisdictions.

 

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

 

	
Dated:
    	
 
    
	
 
    	
(Print the name of the Undersigned, as such term is defined in the   second paragraph of this certificate.)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

(If the Undersigned is a corporation, partnership or fiduciary, the title of the person signing on behalf of the Undersigned must be stated.)

 

 

EXHIBIT E

 

[Form of Intercompany Note]

 

INTERCOMPANY NOTE

 

, 20[  ]

 

Evidences of all loans or advances (“Loans”) hereunder shall be reflected on the grid attached hereto.  FOR VALUE RECEIVED,                           , a                      corporation (the “Maker”), HEREBY PROMISES TO PAY ON DEMAND to the order of                              (the “Holder”) the principal sum of the aggregate unpaid principal amount of all Loans (plus accrued interest thereon) at any time and from time to time made hereunder to which has not been previously paid.

 

All capitalized terms used herein that are defined in, or by reference in, the Indenture among Sinclair Television Group, Inc., a Maryland corporation (the “Company”), the guarantors party thereto and U.S. Bank National Association, as trustee, dated as of July 23, 2014 (the “Indenture”), have the meanings assigned to such terms therein, or by reference therein, unless otherwise defined.

 

ARTICLE I

 

TERMS OF INTERCOMPANY NOTE

 

Section 1.01  Note Forgivable.  Unless the Maker of the Loan hereunder is either of the Company or any Guarantor, the Holder may not forgive any amounts owing under this intercompany note.

 

Section 1.02  Interest; Prepayment.  (a)  The interest rate (“Interest Rate”) on the Loans shall be a rate per annum reflected on the grid attached hereto.

 

(b)        The interest, if any, payable on each of the Loans shall accrue from the date such Loan is made and, subject to Section 2.01, shall be payable upon demand of the Holder.

 

(c)        If the principal or accrued interest, if any, of the Loans is not paid on the date demand is made, interest on the unpaid principal and interest shall accrue at a rate equal to the Interest Rate, if any, plus 100 basis points per annum from maturity until the principal and interest on such Loans are fully paid.

 

(d)        Subject to Section 2.01, any amounts hereunder may be prepaid at any time by the Maker.

 

 

Section 1.03.  Subordination.  All loans made to either of the Company or any Guarantor shall be subordinated in right of payment to the payment and performance of the obligations of the Company and any Subsidiary under the Indenture, the Securities, the Guarantees or any other Indebtedness ranking senior to or pari passu with the Securities, or any Guarantors, including, without limitation, any Indebtedness incurred under the Bank Credit Agreement; provided that with respect to a Subsidiary in any specific instance, such Subsidiary is also an obligor under the Indenture, the Securities, a Guarantee or such other senior or pari passu Indebtedness, as the case may be, whether as a borrower, guarantor or pledgor of collateral.

 

ARTICLE II

 

EVENTS OF DEFAULT

 

Section 2.01.  Events of Default.  If after the date of issuance of this Loan (i) an Event of Default has occurred under the Indenture, (ii) an “Event of Default” (as defined) has occurred under the Bank Credit Agreement, or any refinancing of the Bank Credit Agreement or (iii) an “event of default” (as defined) on any other Indebtedness of the Company or any Guarantor then (x) in the event of the Maker is not either one of the Company or a Guarantor, all amounts owing under the Loans hereunder shall be immediately due and payable to the Holder, and (y) in the event the Maker is either the Company or, the amounts owing under the Loans hereunder shall not be due and payable, the amounts owing under the Loans hereunder shall not be due and payable; provided, however, that if such Event of Default or event of default has been waived, cured or rescinded, such amounts shall no longer be due and payable in the case of clause (x), and such amounts may be payable in the case of clause (y).  If the Holder is a Subsidiary, then the Holder hereby agrees that if it receives any payments or distributions on any Loan from the Company or a Guarantor which is not payable pursuant to clause (y) of the prior sentence after any Event of Default or event or default described in clauses (i), (ii) or (iii) above has occurred, is continuing and has not been waived, cured or rescinded, it shall pay over and deliver forthwith to the Company or such Guarantor, as the case may be, all such payments and distributions.

 

ARTICLE III

 

MISCELLANEOUS

 

Section 3.01  Amendments, Etc.  No amendment or waiver of any provision of this intercompany note, or consent to depart herefrom is permitted at any time for any reason, except with the consent of the Holders of not less than a majority in aggregate principal amount of the Outstanding Securities.

 

 

Section 3.02  Assignment.  No party to this Agreement may assign, in whole or in part, any of its rights and obligations under this intercompany note, except to its legal successor in interest.

 

Section 3.03  Third Party Beneficiaries.  The holders of the Securities or any other Indebtedness ranking pari passu with or senior to, the Securities or any Guarantees, including without limitation, any Indebtedness incurred under the Bank Credit Agreement, shall be third party beneficiaries to this intercompany note and shall have the right to enforce this intercompany note against the Company or any of their Subsidiaries.

 

Section 3.04  Headings.  Article and Section headings in this intercompany note are included for convenience of reference only and shall not constitute a part of this intercompany note for any other purpose.

 

Section 3.05  Entire Agreement.  This intercompany note sets forth the entire agreement or the parties with respect to its subject matter and supersedes all previous understandings, written or oral, in respect thereof.

 

Section 3.06  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF).

 

Section 3.07  Waivers.  The Maker hereby waives presentment, demand for payment, notice of protest and all other demands and notices in connection with the delivery, acceptance, performance or enforcement hereof.

 

 

	
 
    	
By:
    	
 
    

 

 

BORROWINGS, MATURITIES, AND PAYMENTS OF PRINCIPAL

 

	
 
    	
 
    	
Amount of
    	
 
    	
Maturity of
    	
 
    	
Amount
    	
 
    	
Unpaid
    	
 
    	
 
    
	
 
    	
 
    	
Borrowing/
    	
 
    	
Borrowing/
    	
 
    	
Principal Paid
    	
 
    	
Principal
    	
 
    	
Notation
    
	
Date
    	
 
    	
Principal
    	
 
    	
Principal
    	
 
    	
or Prepaid
    	
 
    	
Balance
    	
 
    	
Made by
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

SINCLAIR TELEVISION GROUP, INC., as Issuer,

 

THE GUARANTORS IDENTIFIED ON ANNEX A HERETO, as Guarantors,

 

and

 

U.S. BANK NATIONAL ASSOCIATION, as Trustee

 

 

INDENTURE

 

Dated as of July 23, 2014

 

 

$550,000,000

 

5.625% Senior Notes due 2024

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
PAGE
    
	
 
    	
 
    
	
PARTIES
    	
1
    
	
 
    	
 
    
	
RECITALS
    	
1
    
	
 
    	
 
    
	
ARTICLE ONE
    	
DEFINITIONS AND OTHER PROVISIONS   OF GENERAL APPLICATION
    	
2
    
	
 
    	
 
    	
 
    
	
Section 101.
    	
Definitions
    	
2
    
	
 
    	
“Acquired   Indebtedness”
    	
2
    
	
 
    	
“Additional   Securities”
    	
2
    
	
 
    	
“Affiliate”
    	
2
    
	
 
    	
“Agent   Member”
    	
3
    
	
 
    	
“Applicable   Premium”
    	
3
    
	
 
    	
“Applicable   Procedures”
    	
3
    
	
 
    	
“Asset   Sale”
    	
3
    
	
 
    	
“Asset   Swap”
    	
3
    
	
 
    	
“Average   Life to Stated Maturity”
    	
3
    
	
 
    	
“Bank   Credit Agreement”
    	
4
    
	
 
    	
“Bankruptcy   Law”
    	
4
    
	
 
    	
“Board of   Directors”
    	
4
    
	
 
    	
“Board   Resolution”
    	
4
    
	
 
    	
“Broadcast   Licenses”
    	
4
    
	
 
    	
“Business   Day”
    	
5
    
	
 
    	
“Capital   Lease Obligation”
    	
5
    
	
 
    	
“Change   of Control”
    	
5
    
	
 
    	
“Clearstream”
    	
6
    
	
 
    	
“Code”
    	
6
    
	
 
    	
“Commission”
    	
6
    
	
 
    	
“Company”
    	
6
    
	
 
    	
“Company   Request” or “Company Order”
    	
6
    
	
 
    	
“Consolidated   Interest Expense”
    	
6
    
	
 
    	
“Consolidated   Net Income (Loss)”
    	
7
    
	
 
    	
“Consolidation”
    	
7
    
	
 
    	
“Contract   Stations”
    	
7
    
	
 
    	
“Corporate   Trust Office”
    	
8
    
	
 
    	
“Cumulative   Consolidated Interest Expense”
    	
8
    
	
 
    	
“Cumulative   Operating Cash Flow”
    	
8
    
				

 

i

 

	
 
    	
“Cunningham”
    	
8
    
	
 
    	
“Debt to   Operating Cash Flow Ratio”
    	
8
    
	
 
    	
“Default”
    	
9
    
	
 
    	
“Designated   Noncash Consideration”
    	
9
    
	
 
    	
“Depositary”
    	
9
    
	
 
    	
“Designated   SBG Subsidiary”
    	
9
    
	
 
    	
“Disqualified   Equity Interests”
    	
9
    
	
 
    	
“Equity   Interest”
    	
10
    
	
 
    	
“Equity   Offering”
    	
10
    
	
 
    	
“Euroclear”
    	
10
    
	
 
    	
“Event of   Default”
    	
10
    
	
 
    	
“Exchange   Act”
    	
10
    
	
 
    	
“Exchange   Offer”
    	
10
    
	
 
    	
“Exchange   Offer Registration Statement”
    	
10
    
	
 
    	
“FCC”
    	
11
    
	
 
    	
“Film   Contract”
    	
11
    
	
 
    	
“Financial   Officer”
    	
11
    
	
 
    	
“Generally   Accepted Accounting Principles” or “GAAP”
    	
11
    
	
 
    	
“Global   Security”
    	
11
    
	
 
    	
“Guarantee”
    	
11
    
	
 
    	
“Guaranteed   Debt”
    	
11
    
	
 
    	
“Guarantor”
    	
11
    
	
 
    	
“Guarantor   Pari Passu Indebtedness”
    	
12
    
	
 
    	
“Hedging   Agreement”
    	
12
    
	
 
    	
“Holder”
    	
12
    
	
 
    	
“Indebtedness”
    	
12
    
	
 
    	
“Indenture”
    	
13
    
	
 
    	
“Indenture   Obligations”
    	
13
    
	
 
    	
“Independent   Director”
    	
13
    
	
 
    	
“Initial   Debt Transactions”
    	
14
    
	
 
    	
“Initial   Purchasers”
    	
14
    
	
 
    	
“Initial   Securities”
    	
14
    
	
 
    	
“Institutional   Accredited Investor”
    	
14
    
	
 
    	
“Institutional   Accredited Investor Transfer Certificate”
    	
14
    
	
 
    	
“Institutional   Accredited Investor Global Securities”
    	
14
    
	
 
    	
“Interest   Payment Date”
    	
14
    
	
 
    	
“Interest   Rate Agreements”
    	
14
    
	
 
    	
“Investment   Grade Rating”
    	
14
    
	
 
    	
“Investment   Grade Rating Event”
    	
15
    
	
 
    	
“Investments”
    	
15
    
	
 
    	
“Issue   Date”
    	
15
    
	
 
    	
“License   Subsidiary”
    	
15
    

 

ii

 

	
 
    	
“Lien”
    	
15
    
	
 
    	
“Local   Marketing Agreement”
    	
15
    
	
 
    	
“Material   Third-Party Licensee”
    	
16
    
	
 
    	
“Maturity”
    	
16
    
	
 
    	
“Moody’s”
    	
16
    
	
 
    	
“Net Cash   Proceeds”
    	
16
    
	
 
    	
“Offering   Memorandum”
    	
17
    
	
 
    	
“Officer”
    	
17
    
	
 
    	
“Officers’   Certificate”
    	
17
    
	
 
    	
“Operating   Cash Flow”
    	
17
    
	
 
    	
“Opinion   of Counsel”
    	
17
    
	
 
    	
“Opinion   of Independent Counsel”
    	
17
    
	
 
    	
“Outstanding”
    	
17
    
	
 
    	
“Owned   Stations”
    	
18
    
	
 
    	
“Parent”
    	
18
    
	
 
    	
“Pari   Passu Indebtedness”
    	
19
    
	
 
    	
“Paying   Agent”
    	
19
    
	
 
    	
“Permitted   Holders”
    	
19
    
	
 
    	
“Permitted   Indebtedness”
    	
19
    
	
 
    	
“Permitted   Investment”
    	
19
    
	
 
    	
“Permitted   Subsidiary Indebtedness”
    	
20
    
	
 
    	
“Person”
    	
20
    
	
 
    	
“Predecessor   Security”
    	
20
    
	
 
    	
“Preferred   Equity Interest”
    	
20
    
	
 
    	
“Prospectus”
    	
21
    
	
 
    	
“QIB”
    	
21
    
	
 
    	
“Qualified   Equity Interests”
    	
21
    
	
 
    	
“Rating   Agency”
    	
21
    
	
 
    	
“Redemption   Date”
    	
21
    
	
 
    	
“Redemption   Price”
    	
21
    
	
 
    	
“Registration   Rights Agreement”
    	
21
    
	
 
    	
“Registration   Statement”
    	
21
    
	
 
    	
“Regular   Record Date”
    	
22
    
	
 
    	
“Regulation   S”
    	
22
    
	
 
    	
“Regulation S   Global Securities”
    	
22
    
	
 
    	
“Responsible   Officer”
    	
22
    
	
 
    	
“Restricted   Payment”
    	
22
    
	
 
    	
“Restricted   Securities Legend”
    	
22
    
	
 
    	
“Restricted   Security”
    	
22
    
	
 
    	
“Restricted   Subsidiary”
    	
22
    
	
 
    	
“Rule 144A”
    	
22
    
	
 
    	
“Rule 144A   Global Securities”
    	
22
    

 

iii

 

	
 
    	
“Rule 144A   Information”
    	
22
    
	
 
    	
“S&P”
    	
22
    
	
 
    	
“Sale and   Leaseback Transaction”
    	
23
    
	
 
    	
“SBG   Guarantor”
    	
23
    
	
 
    	
“Secured   Debt to Operating Cash Flow Ratio”
    	
23
    
	
 
    	
“Securities”
    	
23
    
	
 
    	
“Securities   Act”
    	
23
    
	
 
    	
“Security   Register” and “Security Registrar”
    	
23
    
	
 
    	
“Separation   Transaction”
    	
23
    
	
 
    	
“Series A   Securities”
    	
24
    
	
 
    	
“Series B   Securities”
    	
24
    
	
 
    	
“Shelf   Registration Statement”
    	
24
    
	
 
    	
“Significant   Subsidiary”
    	
24
    
	
 
    	
“Special   Record Date”
    	
24
    
	
 
    	
“Stated   Maturity”
    	
24
    
	
 
    	
“Stations”
    	
24
    
	
 
    	
“Subordinated   Indebtedness”
    	
24
    
	
 
    	
“Subsidiary”
    	
24
    
	
 
    	
“Successor   Security”
    	
25
    
	
 
    	
“Temporary   Cash Investments”
    	
25
    
	
 
    	
“Treasury   Rate”
    	
25
    
	
 
    	
“Trust   Indenture Act”
    	
25
    
	
 
    	
“Trustee”
    	
26
    
	
 
    	
“Unrestricted   Subsidiary”
    	
26
    
	
 
    	
“Unrestricted   Subsidiary Indebtedness”
    	
26
    
	
 
    	
“Voting   Stock”
    	
26
    
	
 
    	
“Wholly   Owned Restricted Subsidiary”
    	
27
    
	
Section 102.
    	
Other Definitions
    	
28
    
	
Section 103.
    	
Compliance Certificates and Opinions
    	
28
    
	
Section 104.
    	
Form of Documents Delivered to Trustee
    	
29
    
	
Section 105.
    	
Acts of Holders
    	
30
    
	
Section 106.
    	
Notices, etc., to Trustee, the Company   and any Guarantor
    	
31
    
	
Section 107.
    	
Notice to Holders; Waiver
    	
32
    
	
Section 108.
    	
Conflict with Trust Indenture Act
    	
32
    
	
Section 109.
    	
Effect of Headings and Table of Contents
    	
32
    
	
Section 110.
    	
Successors and Assigns
    	
33
    
	
Section 111.
    	
Separability Clause
    	
33
    
	
Section 112.
    	
Benefits of Indenture
    	
33
    
	
Section 113.
    	
Governing Law
    	
33
    
	
Section 114.
    	
Legal Holidays
    	
33
    
	
Section 115.
    	
Schedules and Exhibits
    	
33
    
	
Section 116.
    	
Counterparts
    	
34
    

 

iv

 

	
ARTICLE TWO
    	
SECURITY FORMS
    	
34
    
	
 
    	
 
    	
 
    
	
Section 201.
    	
Forms Generally
    	
34
    
	
Section 202.
    	
Form of Face of Security
    	
36
    
	
Section 203.
    	
Form of Reverse of Securities
    	
41
    
	
Section 204.
    	
Additional Provisions Required in Global Security
    	
52
    
	
Section 205.
    	
Form of Trustee’s Certificate of   Authentication
    	
53
    
	
Section 206.
    	
Form of Guarantee of Each of the   Guarantors
    	
53
    
	
 
    	
 
    	
 
    
	
ARTICLE THREE
    	
THE SECURITIES
    	
60
    
	
 
    	
 
    	
 
    
	
Section 301.
    	
Title and Terms
    	
60
    
	
Section 302.
    	
Denominations
    	
61
    
	
Section 303.
    	
Execution, Authentication, Delivery and   Dating
    	
61
    
	
Section 304.
    	
Temporary Securities
    	
63
    
	
Section 305.
    	
Global Securities
    	
63
    
	
Section 306.
    	
Registration, Registration of Transfer and Exchange
    	
65
    
	
Section 307.
    	
Special Transfer Provisions
    	
67
    
	
Section 308.
    	
Mutilated, Destroyed, Lost and Stolen   Securities
    	
71
    
	
Section 309.
    	
Payment of Interest; Interest Rights   Preserved
    	
71
    
	
Section 310.
    	
Persons Deemed Owners
    	
73
    
	
Section 311.
    	
Cancellation
    	
73
    
	
Section 312.
    	
Computation of Interest
    	
74
    
	
Section 313.
    	
CUSIP and ISIN Numbers
    	
74
    
	
 
    	
 
    	
 
    
	
ARTICLE FOUR
    	
DEFEASANCE AND COVENANT DEFEASANCE
    	
74
    
	
 
    	
 
    	
 
    
	
Section 401.
    	
Company’s Option to Effect Defeasance or Covenant   Defeasance
    	
74
    
	
Section 402.
    	
Defeasance and Discharge
    	
74
    
	
Section 403.
    	
Covenant Defeasance
    	
75
    
	
Section 404.
    	
Conditions to Defeasance or Covenant   Defeasance
    	
75
    
	
Section 405.
    	
Deposited Money and U.S. Government Obligations to   Be Held in Trust; Other Miscellaneous Provisions
    	
78
    
	
Section 406.
    	
Reinstatement
    	
78
    
	
 
    	
 
    	
 
    
	
ARTICLE FIVE
    	
REMEDIES
    	
79
    
	
 
    	
 
    	
 
    
	
Section 501.
    	
Events of Default
    	
79
    
	
Section 502.
    	
Acceleration of Maturity; Rescission and   Annulment
    	
81
    
	
Section 503.
    	
Collection of Indebtedness and Suits for Enforcement   by Trustee
    	
82
    
	
Section 504.
    	
Trustee May File Proofs of Claim
    	
83
    
					

 

v

 

	
Section 505.
    	
Trustee May Enforce Claims without   Possession of Securities
    	
84
    
	
Section 506.
    	
Application of Money Collected
    	
84
    
	
Section 507.
    	
Limitation on Suits
    	
85
    
	
Section 508.
    	
Unconditional Right of Holders to Receive Principal,   Premium and Interest
    	
86
    
	
Section 509.
    	
Restoration of Rights and Remedies
    	
86
    
	
Section 510.
    	
Rights and Remedies Cumulative
    	
86
    
	
Section 511.
    	
Delay or Omission Not Waiver
    	
86
    
	
Section 512.
    	
Control by Holders
    	
87
    
	
Section 513.
    	
Waiver of Past Defaults
    	
87
    
	
Section 514.
    	
Undertaking for Costs
    	
87
    
	
Section 515.
    	
Waiver of Stay, Extension or Usury Laws
    	
88
    
	
 
    	
 
    	
 
    
	
ARTICLE SIX
    	
THE TRUSTEE
    	
88
    
	
 
    	
 
    	
 
    
	
Section 601.
    	
Notice of Defaults
    	
88
    
	
Section 602.
    	
Certain Rights of Trustee
    	
88
    
	
Section 603.
    	
Trustee Not Responsible for Recitals, Dispositions   of Securities or Application of Proceeds Thereof
    	
90
    
	
Section 604.
    	
Trustee and Agents May Hold Securities;   Collections; etc.
    	
90
    
	
Section 605.
    	
Money Held in Trust
    	
90
    
	
Section 606.
    	
Compensation and Indemnification of Trustee and Its   Prior Claim
    	
91
    
	
Section 607.
    	
Conflicting Interests
    	
92
    
	
Section 608.
    	
Corporate Trustee Required; Eligibility
    	
92
    
	
Section 609.
    	
Resignation and Removal; Appointment of   Successor Trustee
    	
92
    
	
Section 610.
    	
Acceptance of Appointment by Successor
    	
94
    
	
Section 611.
    	
Merger, Conversion, Consolidation or   Succession to Business
    	
95
    
	
Section 612.
    	
Preferential Collection of Claims Against   Company
    	
95
    
	
Section 613.
    	
Identifying Information
    	
95
    
	
 
    	
 
    	
 
    
	
ARTICLE SEVEN
    	
HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
    	
96
    
	
 
    	
 
    	
 
    
	
Section 701.
    	
Company to Furnish Trustee Names and   Addresses of Holders
    	
96
    
	
Section 702.
    	
Disclosure of Names and Addresses of   Holders
    	
96
    
	
Section 703.
    	
Reports by Trustee
    	
96
    
	
 
    	
 
    	
 
    
	
ARTICLE EIGHT
    	
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
    	
97
    
	
 
    	
 
    	
 
    
	
Section 801.
    	
Company or Any Guarantor   May Consolidate, etc., Only on Certain Terms
    	
97
    
					

 

vi

 

	
Section 802.
    	
Successor Substituted
    	
99
    
	
 
    	
 
    	
 
    
	
ARTICLE NINE
    	
SUPPLEMENTAL INDENTURES
    	
99
    
	
 
    	
 
    	
 
    
	
Section 901.
    	
Supplemental Indentures and Agreements without   Consent of Holders
    	
100
    
	
Section 902.
    	
Supplemental Indentures and Agreements with Consent   of Holders
    	
101
    
	
Section 903.
    	
Execution of Supplemental Indentures and   Agreements
    	
102
    
	
Section 904.
    	
Effect of Supplemental Indentures
    	
102
    
	
Section 905.
    	
Conformity with Trust Indenture Act
    	
103
    
	
Section 906.
    	
Reference in Securities to Supplemental   Indentures
    	
103
    
	
 
    	
 
    	
 
    
	
ARTICLE TEN
    	
COVENANTS
    	
103
    
	
 
    	
 
    	
 
    
	
Section 1001.
    	
Payment of Principal, Premium and   Interest
    	
103
    
	
Section 1002.
    	
Maintenance of Office or Agency
    	
103
    
	
Section 1003.
    	
Money for Security Payments to Be Held   in Trust
    	
104
    
	
Section 1004.
    	
Corporate Existence
    	
105
    
	
Section 1005.
    	
Payment of Taxes and Other Claims
    	
106
    
	
Section 1006.
    	
Maintenance of Properties
    	
106
    
	
Section 1007.
    	
Insurance
    	
107
    
	
Section 1008.
    	
Limitation on Indebtedness
    	
107
    
	
Section 1009.
    	
Limitation on Restricted Payments
    	
110
    
	
Section 1010.
    	
Limitation on Transactions with   Affiliates
    	
114
    
	
Section 1011.
    	
Limitation on Liens
    	
115
    
	
Section 1012.
    	
Limitation on Sale of Assets
    	
117
    
	
Section 1013.
    	
Limitation on Issuances of Guarantees of and Pledges   for Indebtedness
    	
122
    
	
Section 1014.
    	
Restriction on Transfer of Assets
    	
123
    
	
Section 1015.
    	
Purchase of Securities upon a Change of   Control
    	
123
    
	
Section 1016.
    	
Limitation on Subsidiary Equity   Interests
    	
127
    
	
Section 1017.
    	
Limitation on Dividends and Other Payment   Restrictions Affecting Subsidiaries
    	
127
    
	
Section 1018.
    	
Limitation on Unrestricted Subsidiaries
    	
128
    
	
Section 1019.
    	
Provision of Financial Statements
    	
129
    
	
Section 1020.
    	
Statement by Officers as to Default
    	
130
    
	
Section 1021.
    	
Waiver of Certain Covenants
    	
130
    
	
Section 1022.
    	
Effectiveness of Covenants upon an Investment Grade   Rating Event
    	
131
    
				

 

vii

 

	
ARTICLE ELEVEN
    	
REDEMPTION OF SECURITIES
    	
131
    
	
 
    	
 
    	
 
    
	
Section 1101.
    	
Rights of Redemption
    	
131
    
	
Section 1102.
    	
Applicability of Article
    	
132
    
	
Section 1103.
    	
Election to Redeem; Notice to Trustee
    	
132
    
	
Section 1104.
    	
Selection by Trustee of Securities to   Be Redeemed
    	
133
    
	
Section 1105.
    	
Notice of Redemption
    	
133
    
	
Section 1106.
    	
Deposit of Redemption Price
    	
134
    
	
Section 1107.
    	
Securities Payable on Redemption Date
    	
135
    
	
Section 1108.
    	
Securities Redeemed or Purchased in   Part
    	
135
    
	
Section 1109.
    	
Calculations with respect to Redemptions
    	
136
    
	
 
    	
 
    	
 
    
	
ARTICLE TWELVE
    	
SATISFACTION AND DISCHARGE
    	
136
    
	
 
    	
 
    	
 
    
	
Section 1201.
    	
Satisfaction and Discharge of Indenture
    	
136
    
	
Section 1202.
    	
Application of Trust Money
    	
137
    
	
 
    	
 
    	
 
    
	
ARTICLE THIRTEEN
    	
GUARANTEE
    	
137
    
	
 
    	
 
    	
 
    
	
Section 1301.
    	
Guarantors’ Guarantee
    	
137
    
	
Section 1302.
    	
Continuing Guarantee; No Right of Set-Off;   Independent Obligation
    	
138
    
	
Section 1303.
    	
Guarantee Absolute
    	
139
    
	
Section 1304.
    	
Right to Demand Full Performance
    	
142
    
	
Section 1305.
    	
Waivers
    	
142
    
	
Section 1306.
    	
The Guarantors Remain Obligated in Event the Company   Is No Longer Obligated to Discharge Indenture Obligations
    	
143
    
	
Section 1307.
    	
Fraudulent Conveyance; Contribution;  Subrogation
    	
143
    
	
Section 1308.
    	
Guarantee Is in Addition to Other   Security
    	
144
    
	
Section 1309.
    	
Release of Security Interests
    	
144
    
	
Section 1310.
    	
No Bar to Further Actions
    	
144
    
	
Section 1311.
    	
Failure to Exercise Rights Shall Not Operate as a   Waiver; No Suspension of Remedies
    	
144
    
	
Section 1312.
    	
Trustee’s Duties; Notice to Trustee
    	
145
    
	
Section 1313.
    	
Successors and Assigns
    	
145
    
	
Section 1314.
    	
Release of Guarantee
    	
145
    
	
Section 1315.
    	
Execution of Guarantee
    	
146
    
				

 

viii

 

ACKNOWLEDGMENTS

 

	
ANNEX A
    	
Guarantors
    
	
 
    	
 
    
	
SCHEDULE I
    	
Contract Stations
    
	
 
    	
 
    
	
SCHEDULE II
    	
Owned Stations
    
	
 
    	
 
    
	
EXHIBIT A
    	
Form of Regulation S Certificate
    
	
 
    	
 
    
	
EXHIBIT B
    	
Form of Restricted Securities Transfer Certificate
    
	
 
    	
 
    
	
EXHIBIT C
    	
Form of Restricted Securities Transfer Certificate
    
	
 
    	
 
    
	
EXHIBIT D
    	
Form of Unrestricted Securities Certificate
    
	
 
    	
 
    
	
EXHIBIT E
    	
Form of Intercompany Note
    

 

ix

 

Reconciliation and tie between Trust Indenture Act of 1939

and Indenture

 

	
Trust Indenture
   Act Section
    	
 
    	
Indenture
   Section
    
	
 
    	
 
    	
 
    
	
§ 310
    	
(a)
    	
 
    	
610, 611
    
	
 
    	
(a)(1)
    	
 
    	
608
    
	
 
    	
(a)(2)
    	
 
    	
608
    
	
 
    	
(b)
    	
 
    	
607, 609
    
	
§ 311
    	
(a)
    	
 
    	
612
    
	
§ 312
    	
(a)
    	
 
    	
701
    
	
 
    	
(b)
    	
 
    	
702
    
	
 
    	
(c)
    	
 
    	
702
    
	
§ 313
    	
(a)
    	
 
    	
703
    
	
 
    	
(c)
    	
 
    	
703, 1019
    
	
§ 314
    	
(a)
    	
 
    	
1019
    
	
 
    	
(a)(4)
    	
 
    	
1020
    
	
 
    	
(c)(1)
    	
 
    	
103
    
	
 
    	
(c)(2)
    	
 
    	
103
    
	
 
    	
(e)
    	
 
    	
103
    
	
§ 315
    	
(a)
    	
 
    	
602, 903
    
	
 
    	
(b)
    	
 
    	
601, 602, 903
    
	
 
    	
(c)
    	
 
    	
602, 903 
    
	
 
    	
(d)
    	
 
    	
602, 903
    
	
 
    	
(e)
    	
 
    	
514
    
	
§ 316
    	
(a)(last sentence)
    	
 
    	
101
    
	
 
    	
(a)(1)(A) 
    	
 
    	
(“Outstanding”) 
    
	
 
    	
(a)(1)(B) 
    	
 
    	
502, 512
    
	
 
    	
(b) 
    	
 
    	
513
    
	
 
    	
(c)
    	
 
    	
508
    
	
 
    	
 
    	
105
    
	
§ 317
    	
(a)(1)
    	
 
    	
503
    
	
 
    	
(a)(2)
    	
 
    	
504
    
	
 
    	
(b)
    	
 
    	
1003
    
	
§ 318
    	
(a)
    	
 
    	
108
    

 

Note:                                     This reconciliation and tie shall not, for any purpose, be deemed to be a part of this Indenture.

 

x

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