Document:

Agreement and Plan of Merger, dated June 15, 2004

 Exhibit 10.1 
  
 AGREEMENT AND PLAN OF MERGER 
  

AGREEMENT AND PLAN OF MERGER, dated as of June 15, 2004 (this “Agreement”), by and among Exult, Inc., a Delaware corporation (the
“Company”), Hewitt Associates, Inc., a Delaware corporation (“Parent”), and Eagle Merger Corp., a Delaware corporation and wholly owned subsidiary of Parent (“Merger Sub”). 
  
 RECITALS 
  
 1. The Boards of Directors of the Company, Parent and Merger Sub have determined that it is in the best interests of their
respective companies and their stockholders to consummate the strategic business combination transaction provided for in this Agreement in which the Company will, on the terms and subject to the conditions set forth in this Agreement, merge with
Merger Sub (the “Merger”), with the Company being the surviving corporation in the Merger (sometimes referred to in such capacity as the “Surviving Corporation”); 
  
 2. For federal income Tax purposes, it is intended that the Merger qualify as
a reorganization under Section 368(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and this Agreement is intended to be and is adopted as a “plan of reorganization” within the meaning of Section 368 of
the Code; 
  
 3. As an inducement and condition to Parent’s
entering into this Agreement, Parent and certain stockholders of the Company (collectively, the “Stockholders”), are entering into stockholders agreements with Parent pursuant to which, among other things, the Stockholders have
agreed to vote in favor of adoption of this Agreement; 
  
 4. As
an inducement and condition to the Company’s entering into this Agreement, the Company and certain stockholders of Parent are entering into a Parent Stockholder Support Agreement pursuant to which, among other things, such Parent stockholders
have agreed to vote in favor of the issuance of Parent Class A Common Stock in the Merger and the other transactions contemplated hereby; and 
  
 The parties desire to make certain representations, warranties and agreements in connection with the Merger and also to prescribe certain conditions to
the Merger. 
  
 Accordingly, the Company, Parent and Merger Sub
agree as follows: 
  
 ARTICLE I 
  
 THE MERGER 
  
 1.1 The Merger. Subject to the terms and conditions of this Agreement,
in accordance with the Delaware General Corporation Law (the “DGCL”), at the Effective Time, Merger Sub will merge with and into the Company. The Company will be the surviving corporation in the Merger and will continue its
corporate existence under the Laws of the State of Delaware. As of the Effective Time, the separate corporate existence of Merger Sub will cease. 

 1.2 Effective Time. The Merger will become effective as set forth in the certificate of merger
(the “Certificate of Merger”) that will be filed with the Secretary of State of the State of Delaware on the Closing Date. The term “Effective Time” will be the date and time when the Merger becomes effective as set
forth in the Certificate of Merger. 
  
 1.3 Effects of the
Merger. At and after the Effective Time, the Merger will have the effects set forth in DGCL Section 259. 
  
 1.4 Conversion of Company Common Stock. At the Effective Time, by virtue of the Merger and without any action on the part of Parent, the Company,
Merger Sub or any holder of Company Common Stock: 
  
 (a)
Conversion of Shares. Subject to Section 2.2(e), each share of common stock, par value $0.0001 per share, of the Company issued and outstanding immediately prior to the Effective Time (the “Company Common Stock”) (except for
shares of Company Common Stock to be cancelled in accordance with Section 1.4(c)) will, at the Effective Time, be converted into the right to receive the Merger Consideration. “Merger Consideration” means 0.2 of a share (the
“Exchange Ratio”) of Class A common stock, par value $0.01 per share, of Parent (the “Parent Class A Common Stock”). 
  
 (b) Cancellation of Shares. As of the Effective Time, all such shares of Company Common Stock will no longer be outstanding and will automatically
be cancelled and retired and will cease to exist and each holder of a certificate representing any such shares of Company Common Stock (a “Certificate”) will cease to have any rights with respect thereto, except the right to receive
the Merger Consideration and any additional cash in lieu of fractional shares of Parent Class A Common Stock to be issued or paid in consideration therefor upon surrender of such Certificate in accordance with Section 2.2, without interest.
Certificates previously representing shares of Company Common Stock will be exchanged for certificates representing whole shares of Parent Class A Common Stock (“Parent Certificates”) and cash in lieu of fractional shares issued in
consideration therefor upon the surrender of such Certificates in accordance with Section 2.2, without any interest thereon. If, prior to the Effective Time, the number of outstanding shares of Company Common Stock has been increased, decreased,
changed into or exchanged for a different number or kind of shares or securities as a result of a reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar change in capitalization,
notwithstanding any prohibitions thereon in this Agreement and the Closing nonetheless occurs, an appropriate and proportionate adjustment will be made to the Exchange Ratio. If, prior to the Effective Time, the number of outstanding shares of
Parent Common Stock has been increased, decreased, changed into or exchanged for a different number or kind of shares or securities as a result of a reorganization, recapitalization, stock dividend, stock split, reverse stock split or other similar
change in 
  

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 capitalization, notwithstanding any prohibitions thereon in this Agreement and the Closing nonetheless occurs, an
appropriate and proportionate adjustment will be made to the Exchange Ratio. 
  
 (c) Cancellation of Company Common Stock. Notwithstanding anything in the Agreement to the contrary, at the Effective Time, all shares of Company Common Stock that are owned by the Company or Parent or any of
their respective wholly owned Subsidiaries will be cancelled and will cease to exist and no stock of Parent or other consideration will be delivered in exchange therefor. 
  
 (d) Alternative Structure. Parent may at any time change the method of effecting the combination (including by
providing for the merger of the Company directly into Parent) so long as such change is consented to by the Company (such consent not to be unreasonably withheld), and no such change shall (i) alter or change the amount or kind of Merger
Consideration to be issued to holders of the capital stock of the Company as provided for in this Agreement, (ii) adversely affect the Tax treatment of the Company’s stockholders as a result of receiving the Merger Consideration or the Tax
treatment of either party pursuant to this Agreement, or (iii) materially delay consummation of the transactions contemplated by this Agreement or require additional material consents or approvals. 
  
 1.5 Parent Capital Stock. At and after the Effective Time, each share
of capital stock of Parent (“Parent Capital Stock”) issued and outstanding immediately prior to the Effective Time will remain issued and outstanding and will not be affected by the Merger. 
  
 1.6 Merger Sub Capital Stock. Each share of common stock of Merger Sub
(“Merger Sub Common Stock”) issued and outstanding immediately prior to the Effective Time will be converted into one share of common stock of the Surviving Corporation, and the Surviving Corporation will thereby become a wholly
owned subsidiary of Parent. 
  
 1.7 Warrants. Effective as
of the Effective Time, the outstanding Company Warrant will be assumed by Parent and will be converted into a warrant to purchase a number of shares of Parent Class A Common Stock at a price in each case determined pursuant to the terms of the
Company Warrant and in accordance with the provisions set forth therein (the “Assumed Warrant”). Except as otherwise provided therein, the Assumed Warrant will be subject to the same terms and conditions (including expiration date,
vesting and exercise provisions) as were applicable to the Company Warrant immediately prior to the Effective Time. 
  
 1.8 Certificate of Incorporation of the Surviving Corporation. At the Effective Time, the certificate of incorporation of Merger Sub attached
hereto as Exhibit A (the “Merger Sub Charter”) will be the certificate of incorporation of the Surviving Corporation until thereafter amended in accordance with applicable Law, except that such certificate of incorporation
will be amended to change the name of the Surviving Corporation to “Exult, Inc.” 
  

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 1.9 Bylaws of the Surviving Corporation. At the Effective Time, the bylaws of Merger Sub attached
hereto as Exhibit B (the “Merger Sub Bylaws”) will be the Bylaws of the Surviving Corporation until thereafter amended in accordance with applicable Law. 
  
 1.10 Directors and Officers of the Surviving Corporation. The directors of Merger Sub immediately prior to the
Effective Time will be the directors of the Surviving Corporation until the next annual meeting (or the earlier of their resignation or removal) and until their respective successors are duly elected and qualified, as the case may be. The officers
of Merger Sub immediately prior the Effective Time will be the officers of the Surviving Corporation until the earlier of their resignation or removal and until their respective successors are duly elected and qualified, as the case may be.

  
 ARTICLE II 
  
 EXCHANGE OF SHARES 
  
 2.1 Parent to Make Shares Available. At or prior to the Effective Time
with respect to Parent Certificates, and promptly thereafter with respect to cash in lieu of fractional shares, Parent will deposit, or will cause to be deposited, with a bank or trust company selected by Parent (the “Exchange
Agent”), for the benefit of the holders of Certificates, for exchange in accordance with this Article II, Parent Certificates and cash in lieu of fractional shares (such cash and certificates for shares of Parent Class A Common Stock,
together with any dividends or distributions with respect thereto, being referred to as the “Exchange Fund”), to be issued pursuant to Section 1.4 and paid pursuant to Section 2.2(e), respectively, in exchange for outstanding shares
of Company Common Stock. 
  
 2.2 Exchange of Shares. (a) As
soon as practicable after the Effective Time, the Exchange Agent will mail to each holder of record of one or more Certificates a letter of transmittal in customary form (which will specify, among other things, that delivery will be effected, and
risk of loss and title to the Certificates will pass, only upon delivery of the Certificates to the Exchange Agent) and instructions for use in effecting the surrender of the Certificates in exchange for Parent Certificates and any cash in lieu of
fractional shares into which the shares of Company Common Stock represented by such Certificate or Certificates have been converted pursuant to this Agreement. Upon proper surrender of a Certificate or Certificates for exchange and cancellation to
the Exchange Agent, together with such properly completed letter of transmittal, duly executed, the holder of such Certificate or Certificates will be entitled to receive in exchange therefor, as applicable, (i) a Parent Certificate representing the
number of whole shares of Parent Class A Common Stock to which such holder of Company Common Stock has become entitled pursuant to the provisions of Article I, (ii) a check representing the amount of any cash in lieu of fractional shares which such
holder has the right to receive in respect of the Certificate or Certificates surrendered pursuant to the provisions of this Article II, and (iii) a check representing the amount of any dividends or distributions then payable pursuant to Section
2.2(b)(i), and the Certificate or Certificates so surrendered will forthwith be cancelled. No interest will be paid or accrued on any cash in lieu of fractional shares or on any unpaid dividends and distributions payable to holders of Certificates.

  

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 (b) No dividends or other distributions declared with respect to Parent Class A Common Stock will be paid
to the holder of any unsurrendered Certificate until the holder thereof surrenders such Certificate in accordance with this Article II. After the surrender of a Certificate in accordance with this Article II, the record holder thereof will be
entitled to receive (i) the amount of dividends or other distributions with a record date after the Effective Time theretofore paid, without any interest thereon, with respect to the whole shares of Parent Class A Common Stock represented by such
Certificate and (ii) at the appropriate payment date, the amount of dividends or other distributions with a record date after the Effective Time but prior to surrender and a payment date subsequent to surrender, with respect to shares of Parent
Class A Common Stock represented by such Certificate. 
  
 (c) If
any Parent Certificate is to be issued in a name other than that in which the Certificate or Certificates surrendered in exchange therefor is or are registered, it will be a condition to the issuance thereof that the Certificate or Certificates so
surrendered are properly endorsed (or accompanied by an appropriate instrument of transfer) and otherwise in proper form for transfer, and that the Person requesting such exchange pays to the Exchange Agent in advance any transfer or other Taxes
required by reason of the issuance of a Parent Certificate in any name other than that of the registered holder of the Certificate or Certificates surrendered, or required for any other reason, or establishes to the satisfaction of the Exchange
Agent that such Tax has been paid or is not payable. 
  
 (d) After
the Effective Time, there will be no transfers on the stock transfer books of the Company or the Surviving Corporation of the shares of Company Capital Stock that were issued and outstanding immediately prior to the Effective Time other than to
settle transfers of Company Common Stock that occurred prior to the Effective Time. If, after the Effective Time, Certificates representing such shares are presented for transfer to the Exchange Agent, they will be cancelled and exchanged for Parent
Certificates as provided in this Article II. 
  
 (e)
Notwithstanding anything to the contrary contained in this Agreement, no certificates or scrip representing fractional shares of Parent Class A Common Stock will be issued upon the surrender of Certificates for exchange, no dividend or distribution
with respect to Parent Class A Common Stock will be payable on or with respect to any fractional share, and such fractional share interests will not entitle the owner thereof to vote or to any other rights of a stockholder of Parent. In lieu of the
issuance of any such fractional share, Parent will pay to each former stockholder of the Company who otherwise would be entitled to receive such fractional share an amount in cash (rounded to the nearest cent) determined by multiplying the Specified
Deal Value by the fraction of a share (rounded to the nearest thousandth when expressed in decimal form) of Parent Class A Common Stock to which such holder would otherwise be entitled to receive pursuant to Section 1.4. For purposes of this
Agreement, “Specified Deal Value” means the weighted average of the closing sale 
  

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 prices of Parent Class A Common Stock on the NYSE Composite Transactions Tape as reported by The Wall Street Journal for
the ten full NYSE trading days immediately preceding the date of the Effective Time. 
  
 (f) Any portion of the Exchange Fund that remains unclaimed by the former stockholders of the Company as of the first anniversary of the Effective Time will be paid to Parent. Any former stockholders of the Company
who have not theretofore complied with this Article II will thereafter look only to Parent for payment of the shares of Parent Class A Common Stock, cash in lieu of any fractional shares and any unpaid dividends and distributions on the Parent Class
A Common Stock deliverable in respect of each share of Company Common Stock, as the case may be, that such stockholder holds as determined pursuant to this Agreement, in each case, without any interest thereon. Notwithstanding the foregoing, none of
Parent, the Company, Merger Sub, the Surviving Corporation, the Exchange Agent or any other Person will be liable to any former holder of shares of Company Common Stock for any amount delivered in good faith to a public official pursuant to
applicable abandoned property, escheat or similar Laws. 
  
 (g) In
the event any Certificate has been lost, stolen or destroyed, upon the making of an affidavit of that fact by the Person claiming such Certificate to be lost, stolen or destroyed and, if reasonably required by Parent, the posting by such Person of a
bond in such amount as Parent may determine is reasonably necessary as indemnity against any claim that may be made against it with respect to such Certificate, the Exchange Agent will issue in exchange for such lost, stolen or destroyed Certificate
the shares of Parent Class A Common Stock and any cash in lieu of fractional shares deliverable in respect thereof pursuant to this Agreement. 
  
 (h) The Exchange Agent will invest any cash included in the Exchange Fund, as directed by Parent, on a daily basis. Any interest and other income
resulting from such investments will be paid to Parent. 
  
 ARTICLE III 
  
 REPRESENTATIONS AND WARRANTIES
OF THE COMPANY 
  
 Except as disclosed in the disclosure
letter (the “Company Disclosure Letter”) delivered by the Company to Parent prior to the execution of this Agreement (which schedule sets forth, among other things, items the disclosure of which is necessary or appropriate either in
response to an express disclosure requirement contained in a provision hereof or as an exception to one or more representations or warranties contained in this Article III, or to one or more of the Company’s covenants contained in Article V),
the Company represents and warrants to Parent and Merger Sub as follows: 
  
 3.1 Corporate Organization. (a) The Company is a corporation duly organized, validly existing and in good standing under the Laws of the State of Delaware. The Company has the corporate power and authority to
own or lease all of its properties and assets and to carry on its business as it is now being conducted, and 
  

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 is duly licensed or qualified to do business in each jurisdiction in which the nature of the business conducted by it or
the character or location of the properties and assets owned or leased by it makes such licensing or qualification necessary, except where the failure to be so licensed or qualified would not have a Material Adverse Effect on the Company. As used in
this Agreement, the term “Material Adverse Effect” means an event or circumstance that has had, or is reasonably likely in the future to have, a material adverse effect on (i) with respect to Parent or the Company, as the case may
be, the business, results of operations or financial condition of such party and its Subsidiaries taken as a whole or (ii) with respect to Parent and the Company, the ability of Parent and Merger Sub, on the one hand, and the Company, on the other
hand, to timely consummate the transactions contemplated by this Agreement. 
  
 (b) True and complete copies of the Fourth Amended and Restated Certificate of Incorporation of the Company (the “Company Charter”) and the Amended and Restated Bylaws of the Company (the
“Company Bylaws”), as in effect as of the date of this Agreement, have previously been made available to Parent. 
  
 (c) Each Company Subsidiary (i) is duly organized and validly existing under the Laws of its jurisdiction of organization, (ii) is duly qualified to do
business and in good standing in all jurisdictions (whether federal, state, local or foreign) where its ownership or leasing of property or the conduct of its business requires it to be so qualified, and (iii) has the corporate power and authority
to own or lease its properties and assets and to carry on its business as now conducted, in the case of clauses (ii) and (iii), except as would not have a Material Adverse Effect on the Company. As used in this Agreement, the word
“Subsidiary” when used with respect to either party, means any corporation, partnership, limited liability company or other organization, whether incorporated or unincorporated, that is consolidated with such party for financial
reporting purposes under U.S. generally accepted accounting principles (“GAAP”), and the terms “Company Subsidiary” and “Parent Subsidiary” will mean any direct or indirect Subsidiary of the Company
or Parent, respectively, and, in the case of Parent, will include Merger Sub prior to the Effective Time and the Surviving Corporation as of and after the Effective Time. 
  
 3.2 Capitalization. (a) The authorized capital stock of the Company consists of (i) 500,000,000 shares of Company
Common Stock, of which, as of the close of business on the business day immediately preceding the date of this Agreement (the “Measurement Date”), 109,890,095 shares were issued and outstanding, and (ii) 15,000,000 shares of Company
Preferred Stock, par value $0.0001 per share (together with Company Common Stock, “Company Capital Stock”), of which, as of the Measurement Date, no shares were issued and outstanding. As of the Measurement Date, no shares of
Company Common Stock were held in the Company’s treasury. As of the Measurement Date, no shares of Company Capital Stock were reserved for issuance except for 3,339,084 shares of Company Common Stock reserved for issuance under the
Company’s 1999 Stock Option/Stock Issuance Plan, 1999 Special Executive Stock Option/Stock Issuance Plan, 2000 Equity Incentive Plan (together with any other plan providing for the award of options or other equity rights, the “Company
Stock Plans”), 1,483,577 shares of Company Common Stock reserved for issuance 
  

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 under the Company’s 2000 Employee Stock Purchase Plan as described in the Company Disclosure Letter (the
“Company Employee Stock Purchase Plan”), 9,353,740 shares of Company Common Stock reserved for issuance upon the conversion of the Company Convertible Notes and 1,000,000 shares of the Company Common Stock reserved for issuance upon
exercise of the Company Warrant outstanding on the date hereof. All of the issued and outstanding shares of Company Capital Stock have been duly authorized and validly issued and are fully paid, nonassessable and free of preemptive rights, with no
personal liability attaching to the ownership thereof. As of the date of this Agreement, except pursuant to this Agreement, the Company Stock Plans and as set forth in Sections 3.2(b) and 3.2(c), the Company does not have and is not bound by any
outstanding subscriptions, options, warrants, calls, commitments or agreements of any character calling for the purchase, issuance or registration of any shares of Company Capital Stock or any other equity securities of the Company or any securities
representing the right to purchase or otherwise receive any shares of Company Capital Stock. The Company has provided Parent with a list of (i) each outstanding and unexercised option to purchase shares of Company Common Stock (“Company
Stock Option”) granted pursuant to the Company Stock Plans, which list specifies (A) the name of the holder of such Company Stock Option, (B) the number of shares of Company Common Stock subject to such Company Stock Option, (C) the
exercise price of such Company Stock Option, (D) the date on which such Company Stock Option was granted, (E) the applicable vesting schedule, and the extent to which such Company Stock Option is vested and exercisable as of the Measurement Date,
and (F) the date on which such Company Stock Option expires and (ii) the aggregate number of all shares of Company Common Stock that are a restricted stock right of any kind, contingent or accrued, granted under the Company Stock Plans (not
including Company Stock Options) (“Company Restricted Stock”) outstanding as of the Measurement Date; since the Measurement Date through the date hereof, the Company has not issued or awarded any options, restricted stock or
restricted stock units under the Company Stock Plans. 
  
 (b) As
of the Measurement Date: 1,000,000 shares of Company Common Stock are subject to issuance pursuant to an outstanding warrant (the “Company Warrant”) to purchase Company Common Stock. Section 3.2(b) of the Company Disclosure Letter
sets forth for the Company Warrant (i) the name of the holder of such Company Warrant, (ii) the number of shares of Company Common Stock subject to such Company Warrant, (iii) the exercise price of such Company Warrant, (iv) the date on which such
Company Warrant was granted, (v) to the extent applicable, the vesting schedule, and the extent to which such Company Warrant is vested and exercisable as of the Measurement Date, and (vi) the date on which such Company Warrant expires. All shares
of Company Common Stock subject to issuance under the Company Warrant, upon issuance on the terms and conditions specified in the instruments pursuant to which they are issuable, would be duly authorized, validly issued, fully paid and
nonassessable. 
  
 (c) No bonds, debentures, notes or other
indebtedness having the right to vote on any matters on which stockholders may vote of the Company is issued or outstanding as of the date hereof. As of the Measurement Date, there were 9,353,740 
  

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 shares of Company Common Stock reserved for issuance upon conversion of the $110,000,000 aggregate principal amount of
the Company’s 2.50% Convertible Senior Notes due October 1, 2010 (the “Company Convertible Notes”). 
  
 (d) All of the issued and outstanding shares of capital stock or other equity ownership interests of each “significant subsidiary” (as such term
is defined under Regulation S-X of the Securities and Exchange Commission (the “SEC”)) of the Company are owned by the Company, directly or indirectly, free and clear of any material liens, pledges, charges and security interests
and similar encumbrances (“Liens”), and all of such shares or equity ownership interests are duly authorized and validly issued and are fully paid, nonassessable and free of preemptive rights. No such significant subsidiary has or
is bound by any outstanding subscriptions, options, warrants, calls, commitments or agreements of any character calling for the purchase or issuance of any shares of capital stock or any other equity security of such subsidiary or any securities
representing the right to purchase or otherwise receive any shares of capital stock or any other equity security of such subsidiary. 
  
 3.3 Authority; No Violation. (a) The Company has full corporate power and authority to execute and deliver this Agreement and to consummate the
transactions contemplated hereby. The execution and delivery of this Agreement by the Company and the consummation of the transactions contemplated hereby have been duly and validly approved by the Board of Directors of the Company (the
“Company Board”). The Company Board has determined that this Agreement and the transactions contemplated hereby are in the best interests of the Company and its stockholders and has directed that this Agreement and the transactions
contemplated by this Agreement be submitted to the Company’s stockholders for adoption at a duly held meeting of such stockholders (the “Company Stockholders Meeting”) and, except for the adoption of this Agreement by the
affirmative vote of the holders of a majority of the outstanding shares of Company Common Stock entitled to vote at such meeting, voting together as a single class (“Company Stockholder Approval”), no other corporate proceedings on
the part of the Company are necessary to approve this Agreement or to consummate the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by the Company and (assuming due authorization, execution and
delivery by Parent and Merger Sub) constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms (except as may be limited by bankruptcy, insolvency, fraudulent transfer, moratorium,
reorganization or similar Laws affecting the rights of creditors generally and the availability of equitable remedies (such exception, the “Bankruptcy Exception”)). 
  
 (b) Neither the execution and delivery of this Agreement by the Company nor the consummation of the transactions
contemplated hereby, nor compliance by the Company with any of the terms or provisions of this Agreement, will (i) violate any provision of the Company Charter or the Company Bylaws or (ii) assuming that the consents, approvals and filings referred
to in Section 3.4 are duly obtained and/or made, (A) violate any order, injunction or decree issued by any court or agency of competent jurisdiction or other legal restraint or prohibition (an “Injunction”) or any federal, state,
local, municipal, foreign or other law, statute, constitution, principle of 
  

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 common law, resolution, ordinance, code, order, writ, edict, decree, rule, regulation, judgement, ruling, policy,
guideline or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Entity (a “Law”) applicable to the Company, any of the Company Subsidiaries or
any of their respective properties or assets or (B) violate, conflict with, result in a breach of any provision of or the loss of any benefit under, constitute a default (or an event which, with notice or lapse of time, or both, would constitute a
default) under, result in the termination of or a right of termination or cancellation under, accelerate the performance required by, or result in the creation of any Lien upon any of the respective properties or assets of the Company or any of the
Company Subsidiaries under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to which the Company or any of the Company Subsidiaries is a
party, or by which they or any of their respective properties or assets may be bound or affected, except for such violations, conflicts, breaches or defaults referred to in clause (ii) that would not, individually or in the aggregate, have a
Material Adverse Effect on the Company. 
  
 (c) Prior to the
execution of this Agreement, to the extent necessary, the Compensation Committee of the Company Board took such action as may be required to assure the treatment of Company Stock Options contemplated by Exhibit 6.7(b) operates as therein
provided with the result that, immediately after the Effective Time, all options and other rights awarded under the Company Stock Plans shall be extinguished without further action. 
  
 3.4 Consents and Approvals. Except for (i) the filing with the SEC of a Joint Proxy Statement in definitive form
relating to the meetings of the Company’s and Parent’s stockholders to be held in connection with this Agreement and the transactions contemplated by this Agreement (the “Joint Proxy Statement”) and of a registration
statement on Form S-4 (the “Form S-4”) in which the Joint Proxy Statement will be included as a prospectus, and declaration of effectiveness of the Form S-4, (ii) the filing of the Certificate of Merger with the Secretary of State
of the State of Delaware pursuant to the DGCL, (iii) any notices or filings under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), (iv) Company Stockholder Approval, and (v) the consents or
approvals listed in Section 3.4 of the Company Disclosure Letter, no consents or approvals of or filings or registrations with any court, administrative agency or commission or other governmental authority or instrumentality (each a
“Governmental Entity”) are necessary in connection with (A) the execution and delivery by the Company of this Agreement and (B) the consummation by the Company of the Merger and the other transactions contemplated by this Agreement.
The consents, approvals, filings and registrations set forth in (i) through (iv) are referred to herein as the “Necessary Consents.” 
  
 3.5 Reports. (a) The Company and each of the Company Subsidiaries have timely filed all reports, registrations and statements, together with any
amendments required to be made with respect thereto, that they were required to file since January 1, 2001 with (i) any state regulatory authority, (ii) the SEC, and (iii) any foreign regulatory authority (collectively, “Regulatory
Agencies”), and all other reports and statements 
  

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 required to be filed by them since January 1, 2001, including any report or statement required to be filed pursuant to
the Laws of the United States, or any Regulatory Agency, and have paid all fees and assessments due and payable in connection therewith, except where the failure to file such report, registration or statement or to pay such fees and assessments
would not, individually or in the aggregate, have a Material Adverse Effect on the Company. No Regulatory Agency has initiated or has pending any proceeding or, to the knowledge of the Company, investigation into the business or operations of the
Company or any of the Company Subsidiaries since January 1, 2001, except where such proceedings or investigation would not, individually or in the aggregate, have a Material Adverse Effect on the Company. There is no unresolved violation, criticism
or exception by any Regulatory Agency with respect to any report or statement relating to any examinations or inspections of the Company or any of the Company Subsidiaries; there has been no formal or informal inquiry by, or disagreement or dispute
with, any Regulatory Agency with respect to the business, operations, policies or procedures of the Company since January 1, 2001 that would, individually or in the aggregate, have a Material Adverse Effect on the Company; and all reports,
registrations and statements referred to in this Section 3.5, including accompanying certifications by officers, complied as to form in all material respects with all applicable legal requirements and did not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. 
  
 (b) The Company has previously made available to Parent an accurate and
complete copy of each (i) final registration statement, prospectus, report, schedule or definitive proxy statement filed by the Company with the SEC (the “Company Reports”) pursuant to the Securities Act of 1933, as amended (the
“Securities Act”) or the Securities Exchange Act of 1934, as amended (the “Exchange Act”) from January 1, 2001 through the date of this Agreement and (ii) communication mailed by the Company to its stockholders and
press release or similar announcement published by the Company, in each case since January 1, 2001 and prior to the date of this Agreement (“Company Public Statements”), and no Company Report or Company Public Statement filed,
mailed or published since January 1, 2001, as of the date of such Company Report or Company Public Statement, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order
to make the statements made therein, in the light of the circumstances under which they were made, not misleading. All Company Reports filed under the Securities Act and the Exchange Act since January 1, 2001, as of their respective dates, complied
as to form in all material respects with the published rules and regulations of the SEC with respect thereto. 
  
 3.6 Financial Statements. (a) The Company has previously made available to Parent copies of (i) the consolidated balance sheet of the Company and
the Company Subsidiaries as of December 31, 2001, 2002 and 2003, and the related consolidated statements of income, changes in stockholders’ equity and cash flows for the years then ended as reported in the Company’s Annual Report on Form
10-K for the fiscal year ended December 31, 2003 (such financial statements, the “Company 2003 Financial 
  

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 Statements”) filed with the SEC under the Exchange Act, accompanied by the audit reports of KPMG LLP and
Arthur Andersen LLP, as applicable, independent public accountants with respect to the Company, and (ii) the unaudited consolidated balance sheet of Company and the Company Subsidiaries as of March 31, 2004, and the related consolidated statements
of income and cash flows of the three-month periods then ended, as reported in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2004 (the “Company Interim Financial Statements,” and together
with the Company 2003 Financial Statements, the “Company Financial Statements”). The December 31, 2003 consolidated balance sheet of the Company (including the related notes, where applicable) included in the Company Financial
Statements fairly presents in all material respects the consolidated financial position of the Company and the Company Subsidiaries as of the date thereof, and the other financial statements included in the Company Financial Statements (including
the related notes, where applicable) fairly present in all material respects the results of the consolidated operations, changes in stockholders’ equity, cash flows and consolidated financial position of the Company and the Company Subsidiaries
for the respective fiscal periods or as of the respective dates therein set forth, subject in the case of the Company Interim Financial Statements to normal year-end audit adjustments in amounts that are immaterial in nature and amount and are
consistent with past experience. Each of the Company Financial Statements (including the related notes, where applicable), as of their respective dates, complied in all material respects with applicable accounting requirements and with the published
rules and regulations of the SEC with respect thereto and each of such statements (including the related notes, where applicable) has been prepared in all material respects in accordance with GAAP consistently applied during the periods involved,
except as indicated in such statements or in the notes thereto. The books and records of the Company and the Company Subsidiaries have been, and are being, maintained in all material respects in accordance with GAAP and any other applicable legal
and accounting requirements and reflect only actual transactions. 
  
 (b) The records, systems, controls, data and information of the Company and the Company Subsidiaries are recorded, stored, maintained and operated under means (including any electronic, mechanical or photographic process, whether
computerized or not) that are under the exclusive ownership and direct control of the Company or the Company Subsidiaries or accountants (including all means of access thereto and therefrom), except for any non-exclusive ownership and non-direct
control that would not have a materially adverse effect on the system of internal accounting controls described in the following sentence. The Company and the Company Subsidiaries have devised and maintain a system of internal accounting controls
sufficient to provide reasonable assurances regarding the reliability of financial reporting and the preparation of financial statements in accordance with GAAP. The Company (i) has designed disclosure controls and procedures to ensure that material
information relating to the Company, including the Company Subsidiaries, is made known to the management of the Company by others within those entities and (ii) has disclosed, based on its most recent evaluation prior to the date hereof, to the
Company’s auditors and the audit committee of the Company Board (A) any significant deficiencies in the design or operation of internal controls which could adversely affect 
  

 12 

 in any material respect the Company’s ability to record, process, summarize and report financial data and have
identified for the Company’s auditors any material weaknesses in internal controls and (B) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal controls. The
Company has made available to Parent a summary of each such disclosure made by management to the Company’s auditors and audit committee since January 1, 2002. 
  
 (c) Except for those liabilities that are reflected or reserved against on the March 31, 2004 consolidated balance sheet of
the Company included in the Company Interim Financial Statements and for liabilities incurred in the ordinary course of business consistent with past practice since March 31, 2004 that are immaterial in nature or amount, since such date, neither the
Company nor any of the Company Subsidiaries has incurred any liability of any nature whatsoever (whether absolute, accrued, contingent or otherwise and whether due or to become due and including any off-balance sheet financings, loans, indebtedness,
make whole or similar liabilities or obligations) that would be required to be reflected in a consolidated balance sheet of the Company or would, individually or in the aggregate, have a Material Adverse Effect on the Company. 
  
 3.7 Absence of Certain Changes or Events. Except as set forth in a
final registration statement, prospectus, report or definitive proxy statement filed since January 1, 2004 by the Company with the SEC pursuant to the Securities Act or the Exchange Act and prior to the Measurement Date: 
  
 (a) since December 31, 2003 through and including the date of this
Agreement, no event or events have occurred that have had or would, individually or in the aggregate, have a Material Adverse Effect on the Company; and 
  
 (b) since December 31, 2003 through and including the date of this Agreement, the Company and the Company Subsidiaries have carried on their respective
businesses in all material respects in the ordinary course and have not taken any action or failed to take any action that would have resulted in a breach of Section 5.1 or 5.2 had such Sections been in effect since December 31, 2003. 
  
 3.8 Legal Proceedings. (a)None of the Company or any of the Company
Subsidiaries is a party to any, and there are no pending or, to the Company’s knowledge, threatened, legal, administrative, arbitral or other proceedings, claims, actions or governmental or regulatory investigations of any nature against the
Company or any of the Company Subsidiaries except as would not, individually or in the aggregate, have a Material Adverse Effect on the Company. 
  
 (b) There is no Injunction, judgment, or regulatory restriction (other than those of general application that apply to similarly situated business process
outsourcing companies or their Subsidiaries) imposed upon the Company, any of the Company Subsidiaries or the assets of the Company or any of the Company Subsidiaries that would, individually or in the aggregate, have a Material Adverse Effect on
the Company or Parent. 
  

 13 

 (c) Neither the Company nor any of the Company Subsidiaries is subject to any cease-and-desist or other
order or enforcement action issued by, or is a party to any written agreement, consent agreement or memorandum of understanding with, or is a party to any commitment letter or similar undertaking to, or is subject to any order or directive by, or
has been ordered to pay any civil money penalty by, or since January 1, 2001, has adopted any policies, procedures or board resolutions at the request or suggestion of any Regulatory Agency or other Governmental Entity that currently restricts in
any material respect the conduct of its business or that in any material manner relates to its management or its business (each item in this sentence, whether or not set forth in the Company Disclosure Letter, a “Company Regulatory
Agreement”), or is obligated to make any payment or incur any other expense pursuant to any Company Regulatory Agreement, nor has the Company or any of the Company Subsidiaries been advised since January 1, 2001 by any Regulatory Agency or
other Governmental Entity that it is considering issuing, initiating, ordering, or requesting any such Company Regulatory Agreement. 
  
 3.9 Taxes and Tax Returns. (a) The Company and the Company Subsidiaries have duly filed all federal, state, foreign and local information returns
and Tax Returns required to be filed by them on or prior to the date of this Agreement (all such returns being accurate and complete in all material respects) and have duly paid or made provision for the payment of all Taxes that have been incurred
or are due or claimed to be due from them by federal, state, foreign or local taxing authorities other than (i) Taxes that are not yet delinquent or are being contested in good faith, have not been finally determined and have been adequately
reserved against or (ii) information returns, Tax Returns or Taxes as to which the failure to file, pay or make provision for would not, individually or in the aggregate, have a Material Adverse Effect on the Company. Section 3.9 of the Company
Disclosure Letter lists those Tax Returns that are currently the subject of audit by the Internal Revenue Service (the “IRS”) or for which written notice of intent to audit has been received from the IRS. Any liability with respect
to deficiencies asserted as a result of any such audit is covered by adequate reserves in accordance with GAAP in the Company Financial Statements. Section 3.9 of the Company Disclosure Letter sets forth all material elections with respect to Taxes
affecting the Company or any of the Company Subsidiaries as of the date of this Agreement. As of the date of this Agreement, neither the Company nor any of the Company Subsidiaries has waived any statute of limitations with respect to Taxes or
agreed to any extension of time with respect to a Tax assessment or deficiency. There are no material disputes pending, or claims asserted, for Taxes or assessments upon the Company or any of the Company Subsidiaries for which the Company does not
have adequate reserves. Neither the Company nor any of the Company Subsidiaries is a party to or is bound by any Tax sharing, allocation or indemnification agreement or arrangement (other than such an agreement or arrangement exclusively between or
among the Company and the Company Subsidiaries). Within the past five years, neither the Company nor any of the Company Subsidiaries has been a “distributing corporation” or a “controlled corporation” in a distribution intended
to qualify under 
  

 14 

 Section 355(a) of the Code. No disallowance of a deduction under Section 162(m) of the Code for employee remuneration of
any amount paid or payable by the Company or any of the Company Subsidiaries under any contract, plan, program or arrangement or understanding would, individually or in the aggregate, have a Material Adverse Effect on the Company. The Company and
each of the Company Subsidiaries have withheld and paid all material Taxes required to have been withheld and paid in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder or any other third party. The
Company does not have and has not had any permanent establishment in any foreign country as defined in the applicable Tax treaty or convention between the United States and such foreign country. The Company is not a party to any joint venture,
partnership or other arrangement or contract which could be treated as a partnership for federal income tax purposes. No item of income or gain reported by the Company for financial accounting purposes in any pre-closing period is required to be
included in taxable income for a post-closing period. Neither the Company nor any of the Company Subsidiaries has any excess loss account (as defined in Treasury Regulation Section 1.1502-19) with respect to the stock of any Subsidiary which would
give rise to a material tax liability. 
  
 (b) As used in this
Agreement, the term “Tax” or “Taxes” means (i) all federal, state, local and foreign income, excise, gross receipts, gross income, ad valorem, profits, gains, property, capital, sales, transfer, use, payroll,
employment, severance, withholding, duties, intangibles, franchise, backup withholding and other taxes, charges, levies or like assessments together with all penalties and additions to tax and interest thereon and (ii) any liability for Taxes
described in clause (i) under Treasury Regulation Section 1.1502-6 (or any similar provision of state, local or foreign Law) and the term “Tax Return” includes all returns, reports and forms (including elections, declarations,
disclosures, schedules, estimates and information returns) required to be filed with or supplied to a Tax authority relating to Taxes. 
  
 (c) The limitation under Section 382 of the Code, Treasury Regulation Section 1.1502-15 or 21 or otherwise on the use of net operating loss carryforwards
of the Company and the Company Subsidiaries that may apply by reason of the Merger or other transactions contemplated by this Agreement will not be reduced by virtue of any prior transaction or change in ownership of the Company or any of the
Company Subsidiaries. For the purposes of this Section 3.9(c), the Section 382 limitation that may apply by reason of the Merger or other transaction contemplated by this Agreement shall be based on the fair market value of the Company Common Stock
on the date of this Agreement. 
  
 3.10 Employee Benefit
Plans. (a) Documents. Section 3.10(a) of the Company Disclosure Letter sets forth a list of the following: (i) all severance and employment agreements of the Company with directors or executive officers, (ii) all material severance
programs and policies of each of the Company or the Company Subsidiaries, (iii) any plan or agreement of the Company or the Company Subsidiaries relating to any of its current or former employees, consultants or directors (each, an
“Employee”) pursuant to which benefits would vest or an amount would become payable or the terms of which would otherwise be altered, in any case by virtue of the 
  

 15 

 transactions contemplated hereby (whether alone or upon the occurrence of any additional or subsequent events), (iv) each
document embodying each Retirement Plan of the Company, and (v) each stock option plan, stock award plan, stock appreciation right plan, phantom stock plan, stock option, other equity or equity-based compensation plan, equity or other equity based
award to any Person (whether payable in cash, shares or otherwise) or other plan or Contract of any nature with any Person (whether or not an Employee) pursuant to which any stock, option, warrant or other right to purchase or acquire capital stock
of the Company or right to payment based on the value of the Company capital stock has been granted or otherwise issued. The Company has delivered or made available to Parent for review each of the items listed on Section 3.10(a) of the Company
Disclosure Letter. For purposes of this Agreement, (A) “Retirement Plan” shall mean a material arrangement for the provision of Retirement Benefit Rights to Employees (and, if applicable, beneficiaries thereof) and (B)
”Retirement Benefit Rights” shall mean, with respect to any Person, any pension, lump sum, gratuity or a like benefit provided or generally intended to be provided on retirement or on death in respect of an Employee’s
relationship as a service provider to such Person or its Subsidiaries; provided, that (x) material post-retirement health benefits and any other self-insured health benefit arrangements and (y) material deferred compensation payments
required to be made to an Employee in respect of the termination of employment, are both deemed to be “Retirement Benefit Rights.” 
  
 (b) Benefit Plan Compliance. (i) As used in this Agreement, the “Benefit Plans” of any Person means each collective bargaining
agreement, bonus, pension, profit sharing, deferred compensation, incentive compensation, stock ownership, stock purchase, stock option, phantom stock, stock-related or performance award, retirement, vacation, severance, disability, death benefit,
hospitalization, medical, loan (other than travel allowances and relocation packages), fringe benefit, disability, sabbatical and other similar plan, arrangement or understanding providing benefits to any Employee of such Person or any of its
Subsidiaries. With respect to any Benefit Plan of the Company or any of the Company Subsidiaries (“Company Benefit Plans”), no event has occurred and there exists no condition or set of circumstances, in connection with which the
Company or any of the Company Subsidiaries would be subject to any material liability under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Code or any other applicable Law. 
  
 (ii) Each Company Benefit Plan has been, in all material respects,
administered and operated in accordance with its terms, with the applicable provisions of ERISA, the Code and all other applicable material Laws and the terms of all applicable collective bargaining agreements. Each Company Benefit Plan, including
any material amendments thereto, that is capable of approval by, and/or registration for and/or qualification for special tax status with, the appropriate taxation, social security and/or supervisory authorities in the relevant country, state,
territory or the like (each, an “Approval”) has received such Approval or there remains a period of time in which to obtain such Approval retroactive to the date of any material amendment or change in Law that has not previously
received such Approval. 
  

 16 

 (iii) To the knowledge of the Company, no material commitment with respect to any material aspect of any
Company Benefit Plan has been made to an Employee of the Company or any of the Company Subsidiaries by an authorized Employee of the Company that is not materially in accordance with the written or otherwise preexisting terms and provisions of such
Company Benefit Plans. To the knowledge of the Company, neither the Company nor any of the Company Subsidiaries has entered into any agreement, arrangement or understanding, whether written or oral, with any trade union, works council or other
Employee representative body or any material number or category of its Employees which would prevent, restrict or materially impede the implementation of any lay-off, redundancy, severance or similar program within its or their respective workforces
(or any part of them). 
  
 (iv) There are no material unresolved
claims or disputes under the terms of, or in connection with, any Company Benefit Plan (other than routine undisputed claims for benefits), and no action, legal or otherwise, has been commenced with respect to any material claim thereunder.

  
 (c) Pensions. Neither the Company nor any Company
Subsidiary is a party to, contributes to, or will be required to contribute to, any material scheme, agreement or arrangement (whether legally enforceable or not) for the provision of any pension, retirement savings benefits or other like benefits
(including the payment after leaving employment of the Company or any Company Subsidiary of medical expenses) for any Employee or for the widow, widower, child or dependant of any such Employee. To the knowledge of the Company, the scheme relating
to U.K. employees discussed in Section 3.10(c) of the Company Disclosure Letter has been operated in compliance with applicable Law and the Company has no due and unpaid obligations in respect of it. 
  
 (d) Defined Benefit Plans; Multiemployer Plans. No Company Benefit
Plan is or at any time was (i) subject to Title IV of ERISA, (ii) subject to the minimum funding standards of Section 302 of ERISA or Section 412 of the Code, (iii) a “multiemployer plan” within the meaning of Section 3(37) or 4001(a)(13)
of ERISA or Section 414(f) of the Code, or (iv) a “multiple employer plan” within the meaning of Section 413(c) of the Code. 
  
 (e) Continuation Coverage. No Company Benefit Plan provides health benefits (whether or not insured), with respect to Employees after retirement or
other termination of service (other than coverage mandated by applicable Laws or benefits, the full cost of which is borne by the Employee) other than individual arrangements the amounts of which are not material. 
  
 (f) Effect of Transaction. The execution of this Agreement and the
consummation of the transactions contemplated hereby will not (either alone or upon the occurrence of any additional or subsequent events) constitute an event under any Company Benefit Plan that will or may result in any material payment (whether of
severance pay or otherwise), acceleration of payment, forgiveness of indebtedness, vesting, distribution, increase in benefits or obligation to fund benefits with respect to any Employee. There is no contract, agreement, plan or arrangement with an

  

 17 

 Employee to which the Company or any of the Company Subsidiaries is a party as of the date of this Agreement, that,
individually or collectively and as a result of the transaction contemplated hereby (whether alone or upon the occurrence of any additional or subsequent events), would reasonably be expected to give rise to the payment of any amount that would not
be deductible pursuant to Section 280G of the Code, except as set forth in Section 3.10(f) of the Company Disclosure Letter. 
  
 (g) Labor. No collective bargaining agreement is being negotiated or renegotiated in any material respect by the Company or any of the Company
Subsidiaries. As of the date of this Agreement, there is no material labor dispute, strike or work stoppage against the Company or any of the Company Subsidiaries pending or, to the knowledge of the Company, threatened which may materially interfere
with the respective business activities of the Company or any of the Company Subsidiaries. As of the date of this Agreement, to the knowledge of the Company, none of the Company, any of the Company Subsidiaries or any of their respective
representatives or Employees has committed any material unfair labor practice in connection with the operation of the respective businesses of the Company or any of the Company Subsidiaries, and there is no material charge or complaint against the
Company or any of the Company Subsidiaries by the National Labor Relations Board or any comparable governmental agency pending or threatened in writing. 
  
 3.11 Compliance with Applicable Law. The Company and each of the Company Subsidiaries hold all licenses, franchises, permits, variances, orders,
approvals and authorizations necessary for the lawful conduct of their respective businesses under and pursuant to each, and have complied in all respects with and are not in default in any respect under any, applicable Law of any Governmental
Entity relating to the Company or any of the Company Subsidiaries, except where the failure to hold such license, franchise, permit, variance, order, approval or authorization or such noncompliance or default would not, individually or in the
aggregate, have a Material Adverse Effect on the Company. 
  
 3.12
Certain Contracts. (a) Section 3.12 of the Company Disclosure Letter lists each contract, undertaking, arrangement, commitment or understanding (whether written or oral) to which the Company or any of the Company Subsidiaries is a party or by
which they are bound (i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) to be performed after the date of this Agreement that has not been filed or incorporated by reference in the
Company Reports filed prior to the date hereof, (ii) that materially restricts the conduct of any material line of business by the Company or upon consummation of the Merger will materially restrict the ability of the Surviving Corporation to engage
in any line of business material to Parent or the Company, (iii) with or to a labor union or guild (including any collective bargaining agreement), (iv) providing for compensation or benefits to any officer or director of the Company, including any
stock option plan, stock appreciation rights plan, restricted stock plan or stock purchase plan, other than the Company Stock Plans, (v) with the 8 largest (measured by revenues in 2003 or the first quarter of 2004) clients of the Company and the
Company Subsidiaries taken as a whole (such specific 8 clients, the “Key Company Clients”), (vi) that is with a Person the termination or breach of which 
  

 18 

 would, individually or in the aggregate, have a Material Adverse Effect on the Company, or (vii) pursuant to which the
Company or any of the Company Subsidiaries received or made aggregate payments for goods or services during the year ended December 31, 2003, or pursuant to which the Company reasonably expects to receive or make such aggregate payments during the
year ending December 31, 2004, in each case in excess of $5,000,000 per contract, arrangement, commitment or understanding (or series of related contracts, arrangements, commitments or understandings). Each contract, arrangement, commitment or
understanding of the type described in this Section 3.12(a), whether or not set forth in the Company Disclosure Letter, is referred to as a “Company Contract,” and neither the Company nor any of the Company Subsidiaries knows of, or
has received notice of, any violation of the above by any of the other parties thereto that would, individually or in the aggregate, have a Material Adverse Effect on the Company. 
  
 (b) With such exceptions that would not, individually or in the aggregate, have a Material Adverse Effect on the Company as
to clauses (i), (ii) and (iii) only, (i) each Company Contract is valid and binding on the Company or any of the Company Subsidiaries, as applicable, and is in full force and effect, (ii) the Company and each of the Company Subsidiaries has in all
material respects performed all obligations required to be performed by it to date under each Company Contract, (iii) no event or condition exists that constitutes or, after notice or lapse of time or both, will constitute, a material default on the
part of the Company or any of the Company Subsidiaries under any such Company Contract, and (iv) neither the execution nor delivery of this Agreement, nor the completion of any of the transactions herein contemplated will result in the termination
or cancellation of, or right under, any such Company Contract. 
  
 3.13 Properties. The Company or one of the Company Subsidiaries (a) has good and marketable title to all the properties and assets reflected in the latest balance sheet included in the Company Interim Financial Statements as being
owned by the Company or one of the Company Subsidiaries or acquired after the date thereof which are material to the Company’s business on a consolidated basis (except properties sold or otherwise disposed of since the date thereof in the
ordinary course of business), free and clear of all Liens, except (i) statutory Liens securing payments not yet due, and (ii) such imperfections or irregularities of title, claims or Liens as do not materially affect the use of the properties or
assets subject thereto or affected thereby or otherwise materially impair business operations at such properties, and (b) is the lessee of all leasehold estates reflected in the latest financial statements included in the Company Interim Financial
Statements or acquired after the date thereof which are material to its business on a consolidated basis (except for leases that have expired by their terms since the date thereof) and is in possession of the properties purported to be leased
thereunder, and each such lease is valid without default thereunder by the lessee or, to the Company’s knowledge, the lessor, except in the case of clauses (a) and (b) above as would not, individually or in the aggregate, have a Material
Adverse Effect on the Company. 
  

 19 

 3.14 Intellectual Property. 
  
 (a) No Infringement. To the knowledge as of the date hereof of the Company, the services and operations of the
Company do not infringe or misappropriate the Intellectual Property of any third party where such infringement or misappropriation would, individually or in the aggregate, have a Material Adverse Effect on the Company. “Intellectual
Property” shall mean any or all of the following and all rights in, arising out of, or associated therewith: (i) all United States, international and foreign patents and applications therefor and all reissues, divisions, renewals,
extensions, provisionals, continuations and continuations-in-part thereof, (ii) all inventions (whether patentable or not), invention disclosures, improvements, trade secrets, proprietary information, know how, technology, technical data and
customer lists, and all documentation relating to any of the foregoing, (iii) all copyrights, copyrights registrations and applications therefor, and all other rights corresponding thereto throughout the world, (iv) all trade names, logos, URLs,
common law trademarks and service marks, trademark and service mark registrations and applications therefor throughout the world, (v) all databases and data collections and all rights therein throughout the world, (vi) all moral and economic rights
of authors and inventors, however denominated, throughout the world, and (vii) any similar or equivalent rights to any of the foregoing anywhere in the world. 
  

(b) No Impairment. There is no contract, undertaking or agreement to which the Company or any Company Subsidiary is party or by which they are
bound that will result in: (i) Parent or any Subsidiary of Parent being bound by any material non-compete or other material restriction on the operation of any business of Parent or the Parent Subsidiaries or (ii) Parent or any Parent Subsidiary
granting any rights or licenses to any material Intellectual Property of Parent or any Parent Subsidiary to any third party (including a covenant not to sue with respect to any material Intellectual Property of Parent or any Parent Subsidiary).

  
 3.15 Environmental Matters. 
  
 (a) Hazardous Material. Except as would not, individually or in the
aggregate, result in a Material Adverse Effect on the Company, no underground storage tanks and no amount of any substance that has been designated by any Governmental Entity or by applicable federal, state or local Law to be radioactive, toxic,
hazardous or otherwise a danger to health or the environment, including PCBs, asbestos, petroleum, urea-formaldehyde and all substances listed as hazardous substances pursuant to the Comprehensive Environmental Response, Compensation, and Liability
Act of 1980, as amended, or defined as a hazardous waste pursuant to the United States Resource Conservation and Recovery Act of 1976, as amended, and the regulations promulgated pursuant to said Laws, but excluding office and janitorial supplies (a
“Hazardous Material”), are present, as a result of the actions of the Company or any of the Company Subsidiaries or any affiliate of the Company, or, to the knowledge of the Company, as a result of any actions of any third party or
otherwise, in, on or under any property, including the land and the improvements, ground water and surface water thereof, that the Company or any of the Company Subsidiaries has at any time owned, operated, occupied or leased. 
  

 20 

 (b) Hazardous Materials Activities. Except as would not, individually or in the aggregate, result
in a Material Adverse Effect on the Company: (i) neither the Company nor any of the Company Subsidiaries has transported, stored, used, manufactured, disposed of, released or exposed its Employees or others to Hazardous Materials in violation of any
Law in effect on or before the Closing Date and (ii) neither the Company nor any of the Company Subsidiaries has disposed of, transported, sold, used, released, exposed its Employees or others to or manufactured any product containing a Hazardous
Material (collectively, “Hazardous Materials Activities”) in violation of any rule, regulation, treaty or statute promulgated by any Governmental Entity in effect prior to or as of the date hereof to prohibit, regulate or control
Hazardous Materials or any Hazardous Material Activity. 
  
 3.16
Clients. (a) Between January 1, 2001 and the date hereof, none of the Key Company Clients has canceled or otherwise terminated its contract or relationship with the Company or any of the Company Subsidiaries or has at any time decreased
significantly its usage of the services of the Company or any of the Company Subsidiaries (except for decreases which are, to the knowledge of the Company, primarily attributable to the satisfactory completion of specific projects in the ordinary
course of business) and, to the knowledge of the Company, there has been no material adverse change in the business relationship of the Company and each of the Company Subsidiaries with any Key Company Client. Except as set forth on Section 3.16 of
the Company Disclosure Letter, to the knowledge of the Company, no such client intends to cancel or otherwise terminate its relationship with the Company or the Company Subsidiaries or to decrease significantly its usage of the services of the
Company or the Company Subsidiaries (except for decreases primarily attributable to the satisfactory completion, to the knowledge of the Company, of specific projects in the ordinary course of business), except for such of the foregoing arising
after the date hereof as would not, individually or in the aggregate, have a Material Adverse Effect on the Company. 
  
 (b) To the knowledge of the Company, there is no dispute with any Key Company Client or delays or other problems in connection with any services rendered
by the Company or the Company Subsidiaries to any Key Customer Client that have given rise or could reasonably be expected to give rise to a liability (in the context of the work at issue) or the need to provide “service credits” or
additional services for the customer involved, in each case that would, individually or in the aggregate, have a Material Adverse Effect on the Company. 
  
 3.17 State Takeover Laws. The Company Board has approved this Agreement and the transactions contemplated hereby as required to render inapplicable
to such agreement and transactions DGCL Section 203 and any similar “takeover” or “interested stockholder” Law (any such Laws, “Takeover Statutes”). 
  
 3.18 Reorganization. As of the date of this Agreement, the Company is not aware of any fact or circumstance that
could reasonably be expected to prevent the Merger from qualifying as a “reorganization” within the meaning of Section 368(a) of the Code. 
  

 21 

 3.19 Opinion. Prior to the execution of this Agreement, the Company has received an opinion from
Morgan Stanley & Co. Incorporated to the effect that as of the date thereof and based upon and subject to the matters set forth therein, the Exchange Ratio is fair to the stockholders of the Company from a financial point of view. Such opinion
has not been amended or rescinded as of the date of this Agreement. 
  
 3.20 Company Information. The information relating to the Company and the Company Subsidiaries that is or will be provided by the Company or its representatives for inclusion in the Joint Proxy Statement and the Form S-4, or in any
other document filed with any other Regulatory Agency in connection with the transactions contemplated by this Agreement will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they are made, not misleading. The Joint Proxy Statement (except for such portions thereof that relate only to Parent or any of the Parent Subsidiaries) will comply in all material
respects with the provisions of the Exchange Act and the rules and regulations thereunder. 
  
 3.21 Vote Required. The Company Stockholder Approval is the only vote of the holders of any class or series of Company Capital Stock necessary to approve and adopt this Agreement and the transactions
contemplated hereby (including the Merger). 
  
 3.22
Broker’s Fees. None of the Company, any Company Subsidiary or any of their respective officers or directors has employed any broker or finder or incurred any liability for any broker’s fees, commissions or finder’s fees in
connection with the Merger or related transactions contemplated by this Agreement, other than Morgan Stanley & Co. Incorporated, the material terms of whose engagement have been disclosed to Parent. 
  
 ARTICLE IV 
  
 REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB 
  
 Except as disclosed in the disclosure letter (the “Parent Disclosure
Letter”) delivered by Parent and Merger Sub to the Company prior to the execution of this Agreement (which schedule sets forth, among other things, items the disclosure of which is necessary or appropriate either in response to an express
disclosure requirement contained in a provision hereof or as an exception to one or more representations or warranties contained in this Article IV, or to one or more of Parent’s or Merger Sub’s covenants contained in Article V), Parent
and Merger Sub represent and warrant to the Company as follows: 
  
 4.1 Corporate Organization. (a) Parent is a corporation duly organized, validly existing and in good standing under the Laws of the State of Delaware. Parent has the corporate power and authority to own or lease all of its properties
and assets and to 
  

 22 

 carry on its business as it is now being conducted, and is duly licensed or qualified to do business in each jurisdiction
in which the nature of the business conducted by it or the character or location of the properties and assets owned or leased by it makes such licensing or qualification necessary, except where the failure to be so licensed or qualified would not,
individually or in the aggregate, have a Material Adverse Effect on Parent. 
  
 (b) True and complete copies of the Amended and Restated Certificate of Incorporation (the “Parent Charter”), the Amended and Restated Bylaws of Parent (the “Parent Bylaws”), the
Merger Sub Charter and the Merger Sub Bylaws, each as in effect as of the date of this Agreement, have previously been made available to the Company. 
  
 (c) Each Parent Subsidiary (i) is duly organized and validly existing under the Laws of its jurisdiction of organization, (ii) is duly qualified to do
business and in good standing in all jurisdictions (whether federal, state, local or foreign) where its ownership or leasing of property or the conduct of its business requires it to be so qualified, and (iii) has all the corporate power and
authority to own or lease its properties and assets and to carry on its business as now conducted, except as would not, individually or in the aggregate, have a Material Adverse Effect on Parent. 
  
 4.2 Capitalization. (a) The authorized capital stock of Parent, as of
the Measurement Date, consists of (A) 1,000,000,000 shares of Parent Common Stock (“Parent Common Stock”), of which, as of the Measurement Date, (i) 750,000,000 shares were authorized and 31,298,249 shares were issued and
outstanding as Parent Class A Common Stock, (ii) 200,000,000 shares were authorized and 62,582,704 shares were issued and outstanding as Parent Class B Common Stock, and (iii) 50,000,000 shares were authorized and 4,519,719 shares were issued and
outstanding as Parent Class C Common Stock and (B) 10,000,000 shares of Parent Preferred Stock, par value $0.01 per share (“Parent Preferred Stock”), of which 1,400,000 shares were authorized and no shares were issued and
outstanding as Parent Series A Preferred Stock. As of the Measurement Date, 273,249 shares of Parent Class A Common Stock were held in Parent’s treasury and no shares of Parent Common Stock or Parent Preferred Stock were reserved for issuance,
except for 25,000,000 shares reserved for issuance upon exercise of options issued pursuant to employee and director stock plans of Parent in effect as of the date of this Agreement (the “Parent Stock Plans”). All of the issued and
outstanding shares of Parent Capital Stock have been duly authorized and validly issued and are fully paid, nonassessable and free of preemptive rights, with no personal liability attaching to the ownership thereof. As of the Measurement Date,
except pursuant to this Agreement, the Parent Stock Plans and stock repurchase plans entered into by Parent from time to time, Parent does not have and is not bound by any outstanding subscriptions, options, warrants, calls, commitments or
agreements of any character calling for the purchase, issuance or registration of any shares of Parent Capital Stock or any other equity securities of Parent or any securities representing the right to purchase or otherwise receive any shares of
Parent Capital Stock. The shares of Parent Class A Common Stock to be issued pursuant to the Merger will be duly authorized and validly issued and, at the Effective Time, all such shares will be fully paid, nonassessable and free of preemptive
rights, with no personal liability attaching to the ownership thereof. 
  

 23 

 (b) All of the issued and outstanding shares of capital stock or other equity ownership interests of each
“significant subsidiary” (as such term is defined under Regulation S-X of the SEC) of Parent are owned by Parent, directly or indirectly, free and clear of any Liens, and all of such shares or equity ownership interests are duly authorized
and validly issued and are fully paid, nonassessable and free of preemptive rights. No such significant subsidiary has or is bound by any outstanding subscriptions, options, warrants, calls, commitments or agreements of any character calling for the
purchase or issuance of any shares of capital stock or any other equity security of such subsidiary or any securities representing the right to purchase or otherwise receive any shares of capital stock or any other equity security of such
subsidiary. 
  
 (c) No bonds, debentures, notes or other
indebtedness having the right to vote on any matter on which Parent’s stockholders may vote are issued and outstanding. 
  
 (d) All of the issued and outstanding shares of Merger Sub Common Stock are owned directly by Parent. Merger Sub was formed solely for the purpose of
engaging in the transactions contemplated hereby, has not engaged in any activities other than in connection with the transactions contemplated by this Agreement and has incurred no liabilities or obligations other than as contemplated hereby.

  
 4.3 Authority; No Violation. (a) Each of Parent and
Merger Sub has the corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement by Parent and Merger Sub and the consummation of the
transactions contemplated hereby have been duly and validly approved by the Board of Directors of Parent (the “Parent Board”), the Board of Directors of Merger Sub (the “Merger Sub Board”) and Parent, as the sole
stockholder of Merger Sub. The Parent Board and the Merger Sub Board have determined that this Agreement and the transactions contemplated hereby are in the best interests of Parent and Merger Sub and their respective stockholders and the Parent
Board has directed that this Agreement and the transactions contemplated hereby and the issuance of the Merger Consideration (the “Share Issuance”) be submitted to Parent’s stockholders for approval at a duly held meeting of
such stockholders (the “Parent Stockholders Meeting”) and, except for approval of this Agreement and the transactions contemplated hereby and the Share Issuance by a majority of the holders of Parent Common Stock, present in person
or by proxy at the Parent Stockholder Meeting (“Parent Stockholder Approval”), no other corporate proceedings on the part of Parent or Merger Sub are necessary to approve this Agreement and to consummate the transactions
contemplated hereby. This Agreement has been duly and validly executed and delivered by Parent and by Merger Sub and (assuming due authorization, execution and delivery by the Company) constitute the valid and binding obligations of Parent and
Merger Sub, enforceable against Parent and Merger Sub in accordance with their terms (except as may be limited by the Bankruptcy Exception). 
  

 24 

 (b) Neither the execution and delivery of this Agreement by Parent or Merger Sub, nor the consummation of
the transactions contemplated hereby, nor compliance by Parent or Merger Sub, as applicable, with any of the terms or provisions of this Agreement, will (i) violate any provision of the Parent Charter, the Parent Bylaws, the Merger Sub Charter or
the Merger Sub Bylaws or (ii) assuming that the consents, approvals and filings referred to in Section 4.4 are duly obtained and/or made, (A) violate any Injunction or Law applicable to Parent, any of the Parent Subsidiaries or any of their
respective properties or assets or (B) violate, conflict with, result in a breach of any provision of or the loss of any benefit under, constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default)
under, result in the termination of or a right of termination or cancellation under, accelerate the performance required by, or result in the creation of any Lien upon any of the respective properties or assets of Parent or any of the Parent
Subsidiaries under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to which Parent or any of the Parent Subsidiaries is a party, or by
which they or any of their respective properties or assets may be bound or affected, except for such violations, conflicts, breaches or defaults referred to in clause (ii) that would not, individually or in the aggregate, have a Material Adverse
Effect on Parent. 
  
 4.4 Consents and Approvals. Except
for (i) the filing with the SEC of the Joint Proxy Statement and the filing and declaration of effectiveness of the Form S-4, (ii) the filing of the Certificate of Merger with the Secretary of State of the State of Delaware pursuant to the DGCL,
(iii) any notices or filings under the HSR Act, (iv) Parent Stockholder Approval, and (v) the consents or approvals listed in Section 4.4 of the Parent Disclosure Letter, no consents or approvals of or filings or registrations with any Governmental
Entity are necessary in connection with (A) the execution and delivery by Parent or Merger Sub of this Agreement and (B) the consummation by Parent and Merger Sub, as applicable, of the Merger and the other transactions contemplated by this
Agreement. 
  
 4.5 Reports. (a) Parent and each of the
Parent Subsidiaries have timely filed all reports, registrations and statements, together with any amendments required to be made with respect thereto, that they were required to file since January 1, 2001 with the Regulatory Agencies, and all other
reports and statements required to be filed by them since January 1, 2001, including any report or statement required to be filed pursuant to the Laws of the United States, or any Regulatory Agency, and have paid all fees and assessments due and
payable in connection therewith, except where the failure to file such report, registration or statement or to pay such fees and assessments would not, individually or in the aggregate, have a Material Adverse Effect on Parent. No Regulatory Agency
has initiated or has pending any proceeding or, to the knowledge of Parent, investigation into the business or operations of Parent or any of the Parent Subsidiaries since January 1, 2001, except where such proceedings or investigation would not,
individually or in the aggregate, have a Material Adverse Effect on Parent. There is no unresolved violation, criticism or exception by any Regulatory Agency with respect to any report or statement relating to any examinations or inspections of
Parent or any Parent Subsidiaries; there has been no formal or informal inquiry by, or 
  

 25 

 disagreement or dispute with, any Regulatory Agency with respect to the business, operations, policies or procedures of
Parent since January 1, 2001 that would, individually or in the aggregate, have a Material Adverse Effect on Parent; and all reports, registrations and statements referred to in this Section 4.5, including accompanying certifications by officers,
complied as to form with all applicable legal requirements and did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements made therein, in the
light of the circumstances under which they were made, not misleading. 
  
 (b) Parent has previously made available to the Company an accurate and complete copy of each (i) final registration statement, prospectus, report, schedule or definitive proxy statement filed by Parent with the SEC pursuant to the
Securities Act or the Exchange Act (“Parent Reports”) from January 1, 2001 through the date of this Agreement and (ii) communication mailed by Parent to its stockholders and press release or similar announcement published by Parent,
in each case since January 1, 2001 and prior to the date of this Agreement (“Parent Public Statements”), and no Parent Report or Parent Public Statement filed, mailed or published since January 1, 2001 as of the date of such Parent
Report or Parent Public Statement, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements made therein, in the light of circumstances under
which they were made, not misleading. All Parent Reports filed under the Securities Act and the Exchange Act since January 1, 2001, as of their respective dates, complied as to form in all material respects with the published rules and regulations
of the SEC with respect thereto. 
  
 4.6 Financial
Statements. (a) Parent has previously made available to the Company copies of (i) the consolidated balance sheet of Parent and the Parent Subsidiaries (or, as applicable, their predecessors) as of September 30, 2001, 2002 and 2003, and the
related consolidated statements of income, changes in stockholders’ equity and cash flows for the years then ended as reported in Parent’s Annual Report on Form 10-K for the fiscal year ended September 30, 2003 (such financial statements,
the “Parent 2003 Financial Statements”) filed with the SEC under the Exchange Act, accompanied by the audit report of Ernst & Young LLP, independent public accountants with respect to Parent, and (ii) the unaudited consolidated
balance sheet of Parent and the Parent Subsidiaries as of March 31, 2004, and the related consolidated statements of income and cash flows of the three-month periods then ended, as reported in Parent’s Quarterly Report on Form 10-Q for the
quarterly period ended March 31, 2004 (the “Parent Interim Financial Statements,” and together with the Parent 2003 Financial Statements, the “Parent Financial Statements”). The September 30, 2003 consolidated
balance sheet of Parent (including the related notes, where applicable) included in the Parent Financial Statements fairly presents in all material respects the consolidated financial position of Parent and the Parent Subsidiaries as of the date
thereof, and the other financial statements referred to in this Section 4.6 (including the related notes, where applicable) fairly present in all material respects the results of the consolidated operations, cash flows and changes in
stockholders’ equity and consolidated financial position of Parent and the Parent Subsidiaries for the respective fiscal periods or as of 
  

 26 

 the respective dates therein set forth, subject in the case of the Parent Interim Financial Statements to normal year-end
audit adjustments in amounts that are immaterial in nature and amount and are consistent with past experience. Each of the Parent Financial Statements (including the related notes, where applicable), as of their respective dates, complied in all
material respects with applicable accounting requirements and with the published rules and regulations of the SEC with respect thereto and each of such statements (including the related notes, where applicable) has been prepared in all material
respects in accordance with GAAP consistently applied during the periods involved, except, in each case, as indicated in such statements or in the notes thereto. The books and records of Parent and the Parent Subsidiaries have been, and are being,
maintained in all material respects in accordance with GAAP and any other applicable legal and accounting requirements and reflect only actual transactions. 
  
 (b) The records, systems, controls, data and information of Parent and the Parent Subsidiaries are recorded, stored, maintained and operated under means
(including any electronic, mechanical or photographic process, whether computerized or not) that are under the exclusive ownership and direct control of Parent or the Parent Subsidiaries or accountants (including all means of access thereto and
therefrom), except for any non-exclusive ownership and non-direct control that would not reasonably be expected to have a materially adverse effect on the system of internal accounting controls described in the following sentence. Parent and the
Parent Subsidiaries have devised and maintain a system of internal accounting controls sufficient to provide reasonable assurances regarding the reliability of financial reporting and the preparation of financial statements in accordance with GAAP.
Parent (i) has designed disclosure controls and procedures to ensure that material information relating to Parent, including its consolidated Subsidiaries, is made known to the management of Parent by others within those entities and (ii) has
disclosed, based on its most recent evaluation prior to the date hereof, to Parent’s auditors and the audit committee of the Parent Board (A) any significant deficiencies in the design or operation of internal controls which could adversely
affect in any material respect Parent’s ability to record, process, summarize and report financial data and have identified for Parent’s auditors any material weaknesses in internal controls and (B) any fraud, whether or not material, that
involves management or other employees who have a significant role in Parent’s internal controls. Parent has made available to the Company a summary of any such disclosure made by management to Parent’s auditors and audit committee since
January 1, 2002. 
  
 (c) Except for those liabilities that are
reflected or reserved against on March 31, 2004 consolidated balance sheet of Parent included in the Parent Interim Financial Statements and for liabilities incurred in the ordinary course of business consistent with past practice since March 31,
2004, since such date, neither Parent nor any of the Parent Subsidiaries has incurred any liability of any nature whatsoever (whether absolute, accrued, contingent or otherwise and whether due or to become due and including any off balance sheet
financings, loans, indebtedness, make whole or similar liabilities or obligations) that would be required to be reflected in a consolidated balance sheet of Parent or would, individually or in the aggregate, have a Material Adverse Effect on Parent;

  

 27 

 4.7 Absence of Certain Changes or Events. Except as set forth in a final registration statement,
prospectus, report or definitive proxy statement filed since January 1, 2004 with the SEC pursuant to the Securities Act or the Exchange Act and prior to the Measurement Date: 
  
 (a) since September 30, 2003 through and including the date of this Agreement, no event or events have occurred that have
had or would have, individually or in the aggregate, a Material Adverse Effect on Parent; and 
  
 (b) since September 30, 2003 through and including the date of this Agreement, Parent and the Parent Subsidiaries have carried on their respective businesses in all material respects in the ordinary course and have
not taken any action or failed to take any action that would have resulted in a breach of Section 5.3 had such Section been in effect since September 30, 2003. 
  

4.8 Legal Proceedings. (a) None of Parent or any Parent Subsidiary is a party to any, and there are no pending or, to the best of Parent’s
knowledge, threatened, legal, administrative, arbitral or other proceedings, claims, actions or governmental or regulatory investigations of any nature against Parent or any Parent Subsidiary except as would not, individually or in the aggregate,
have a Material Adverse Effect on Parent. 
  
 (b) There is no
Injunction, judgment, or regulatory restriction (other than those of general application that apply to similarly situated human resources outsourcing companies or their Subsidiaries) imposed upon Parent, any Parent Subsidiary or the assets of Parent
or any Parent Subsidiary that would, individually or in the aggregate, have a Material Adverse Effect on Parent. 
  
 (c) Neither Parent nor any of the Parent Subsidiaries is subject to any cease-and-desist or other order or enforcement action issued by, or is a party to
any written agreement, consent agreement or memorandum of understanding with, or is a party to any commitment letter or similar undertaking to, or is subject to any order or directive by, or has been ordered to pay any civil money penalty by, or
since January 1, 2001, has adopted any policies, procedures or board resolutions at the request or suggestion of any Regulatory Agency or other Governmental Entity that currently restricts in any material respect the conduct of its business or that
in any material manner relates to its management or its business (each, whether or not set forth in the Parent Disclosure Letter, a “Parent Regulatory Agreement”), or is obligated to make any payment or incur any other expense
pursuant to any Parent Regulatory Agreement, nor has Parent or any of the Parent Subsidiaries been advised since January 1, 2001, by any Regulatory Agency or other Governmental Entity that it is considering issuing, initiating, ordering or
requesting any such Parent Regulatory Agreement. 
  
 4.9
Compliance with Applicable Law. Parent and each of the Parent Subsidiaries hold all licenses, franchises, permits, variances, orders, approvals and 
  

 28 

 authorizations necessary for the lawful conduct of their respective businesses under and pursuant to each, and have
complied in all respects with and are not in default in any respect under any, applicable Law of any Governmental Entity relating to Parent or any of the Parent Subsidiaries, except where the failure to hold such license, franchise, permit,
variance, order, approval or authorization or such noncompliance or default would not, individually or in the aggregate, have a Material Adverse Effect on Parent. 
  
 4.10 Reorganization. As of the date of this Agreement, Parent is not aware of any fact or circumstance that could
reasonably be expected to prevent the Merger from qualifying as a “reorganization” within the meaning of Section 368(a) of the Code. 
  
 4.11 Parent Information. The information relating to Parent and the Parent Subsidiaries to be contained in the Joint Proxy Statement and the Form
S-4, or the information relating to Parent and the Parent Subsidiaries that is or will be provided by Parent or its representatives for inclusion in any other document filed with any other Regulatory Agency in connection with the transactions
contemplated by this Agreement will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they are made, not misleading.
The Joint Proxy Statement (except for such portions thereof that relate only to the Company or any of the Company Subsidiaries) will comply with the provisions of the Exchange Act and the rules and regulations thereunder in all material respects.
The Form S-4 will comply with the provisions of the Securities Act and the rules and regulations thereunder in all material respects. 
  
 4.12 Vote Required. The Parent Stockholder Approval is the only vote of the holders of any class or series of Parent Capital Stock necessary to
approve and adopt this Agreement and the transactions contemplated hereby (including the Merger). 
  
 4.13 Broker’s Fees. None of Parent, any Parent Subsidiary or any of their respective officers or directors has employed any broker or finder
or incurred any liability for any brokers fees, commissions or finder’s fees in connection with the Merger or related transactions contemplated by this Agreement, other than Goldman, Sachs & Co. 
  
 ARTICLE V 
  
 PRE-CLOSING COVENANTS 
  
 5.1 Conduct of Businesses Prior to the Effective Time. During the period from the date of this Agreement to the Effective Time, except as expressly
contemplated or permitted by this Agreement or a provision of the Company Disclosure Letter making specific reference to this Section 5.1, the Company will, and will cause each of the Company Subsidiaries to, (a) conduct its business in the ordinary
course in all material respects, (b) use reasonable best efforts to maintain and preserve intact its business organization, employees and advantageous business relationships and retain the services of its key officers and key employees, and (c) take
no action that would 
  

 29 

 adversely affect or materially delay the ability of the Company, Parent or Merger Sub to obtain any necessary approvals
of any Regulatory Agency or other Governmental Entity required for the transactions contemplated hereby or to perform its covenants under this Agreement or to consummate the transactions contemplated hereby. 
  
 5.2 Company Forbearances. Without limiting the generality of Section
5.1, during the period from the date of this Agreement to the Effective Time, except as set forth in the Company Disclosure Letter and except as expressly contemplated or permitted by this Agreement subject to Section 6.13, the Company will not, and
will not permit any of the Company Subsidiaries to, without the prior written consent of Parent (in its reasonable discretion): 
  
 (a) incur any indebtedness for borrowed money, assume, guarantee, endorse or otherwise as an accommodation become responsible for the obligations of any
other individual, corporation or other entity (but not including accrual of interest on or maturity of obligations incurred before the date hereof), in excess of $5,000,000 in the aggregate, or make any loan or advance, other than: (A) short-term
indebtedness incurred to refinance short-term indebtedness and indebtedness of the Company or any of its directly or indirectly wholly owned Subsidiaries to the Company or any of the Company Subsidiaries, (B) guarantees of performance obligations of
the Company or any of the Company Subsidiaries in the ordinary course of business consistent with past practice, or (C) non-executive officer employee loans or advances permitted under applicable Law made in the ordinary course of business not to
exceed $1,000,000 in the aggregate; 
  
 (b) (i) adjust, split,
combine or reclassify any of its capital stock; 
  
 (ii) make,
declare or pay any dividend, or make any other distribution on, or directly or indirectly redeem, purchase or otherwise acquire, any shares of its capital stock or any securities or obligations convertible (whether currently convertible or
convertible only after the passage of time or the occurrence of certain events) into or exchangeable for any shares of its capital stock (except (A) dividends paid by any of the Company Subsidiaries to the Company or to any of its wholly owned
Subsidiaries, (B) the acceptance of shares of Company Common Stock as payment of the exercise price of stock options or for withholding taxes incurred in connection with the exercise of Company Stock Options or the vesting of restricted stock or
other Company Restricted Stock, in each case in accordance with past practice and the terms of the applicable award agreements or the Company Stock Plans pursuant to which the awards were granted, (C) repurchases or cancellations of unvested shares
in connection with the termination of the employment relationship with any employee pursuant to stock option or purchase agreements in effect on the date hereof, and (D) as set forth in Section 5.2(b)(ii) of the Company Disclosure Letter);

  
 (iii) grant any stock appreciation rights or grant any
individual, corporation or other entity any right to acquire any shares of its capital stock, other than grants to newly-hired employees of the Company who are not officers or directors of the Company made in the ordinary course of business
consistent with past practice under the Company Stock Plans; or 
  

 30 

 (iv) issue any additional shares of capital stock or securities convertible into shares of capital stock
except (A) the satisfaction of any Company Stock Options, the Company Warrant or the Company Convertible Notes outstanding as of the date of this Agreement or Company Stock Options or other stock based awards issued thereafter in compliance with
this Agreement or (B) pursuant to the Company Employee Stock Purchase Plan, subject to Section 6.7(c); 
  
 (c) except in the ordinary course of business consistent with past practice with respect to employees who are not directors or executive officers of the
Company, or as required by Law, an agreement in effect on the date hereof that is listed in the Company Disclosure Letter or the Company Stock Plans: 
  
 (i) increase any wages, salaries, compensation, pension, or other fringe benefits or perquisites payable to any officer, employee or director;

  
 (ii) pay any pension or retirement allowance not required by
any existing plan or agreement or by applicable Law; 
  
 (iii)
pay any bonus; 
  
 (iv) become a party to, amend or commit itself
to, any pension, retirement, profit-sharing or welfare benefit plan or agreement or employment agreement with or for the benefit of any employee; or 
  
 (v) accelerate the vesting of, or the lapsing of restrictions with respect to, any Company Restricted Stock other than Company Restricted Stock granted
to directors and executive officers; 
  
 (d) sell, transfer,
mortgage, encumber or otherwise dispose of any of its properties or assets that are, individually or in the aggregate with all other such transactions, material to the Company and the Company Subsidiaries, taken as a whole, to any Person other than
a Company Subsidiary, provided, that this shall not prohibit the Company from taking any cost reduction initiatives disclosed to Parent on or prior to the date of this Agreement, including facilities consolidations and attendant
dispositions of assets, that would not present a material risk of delaying the Merger or making it more difficult to obtain any Necessary Consent; 
  
 (e) cancel, release or assign any indebtedness or third party claim that is material, individually or in the aggregate with all other such indebtedness or
claims, to the Company and the Company Subsidiaries, taken as a whole, to any Person, in each case other than in the ordinary course of business consistent with past practice or pursuant to contracts in force at the date of this Agreement;

  
 (f) enter into any new line of business that is material to
the Company and the Company Subsidiaries, taken as a whole, or change any of its technology or 
  

 31 

 operating policies that are material, individually or in the aggregate, to the Company and the Company Subsidiaries,
taken as a whole, except in the ordinary course of business or as required by applicable Law or to accommodate a material client request or need; 
  
 (g) acquire or agree to acquire by merging or consolidating with, or by purchasing any equity interest in or a portion of the assets of, or by any other
manner, any business or any Person or division thereof, or otherwise acquire or agree to acquire any assets which are material, individually or in the aggregate, to its business, other than acquisitions of assets from clients in connection with
providing services to such clients in the ordinary course of business consistent with past practice; 
  
 (h) knowingly take any action, or knowingly fail to take any reasonable action, that is reasonably likely to prevent the Merger from qualifying as a
reorganization within the meaning of Section 368(a) of the Code; 
  
 (i) amend the Company Charter or the Company Bylaws, or otherwise take any action to exempt any Person (other than Parent or the Parent Subsidiaries) from any Takeover Statute or similarly restrictive provisions of its organizational
documents or terminate, amend or waive any provisions of any confidentiality or standstill agreements in place with any third parties; 
  
 (j) settle any material claim, action or proceeding, except in the ordinary course of business consistent with past practice or reserved for in the
accounts of the Company as of the date hereof; 
  
 (k) take any
action that is intended or is reasonably likely to result in any of its representations or warranties set forth in this Agreement being or becoming untrue in any material respect at any time prior to the Effective Time, or in any of the conditions
to the Merger set forth in Article VII not being satisfied or in a violation of any provision of this Agreement, except, in every case, as may be required by applicable Law; 
  
 (l) except as required by GAAP or the SEC as concurred in by its independent auditors, make any material change in its
methods or principles of accounting since March 31, 2004 or make or change any material Tax election; 
  
 (m) take any action that would materially impede or delay the ability of the parties to obtain any necessary approvals of any Regulatory Agency or
Governmental Entity required for the transactions contemplated by this Agreement; 
  
 (n) amend in any material respect or waive any of its material rights under any contract listed or required to be listed on the Company Disclosure Letter, except in the ordinary course of business consistent with past
practice; 
  
 (o) enter into any contract, arrangement, commitment
or understanding that would have been a Company Contract had it been in existence on the date of this Agreement, except in the ordinary course of business consistent with past practice; 
  

 32 

 (p) adopt or recommend a plan of complete or partial dissolution, merger or consolidation,
recapitalization, restructuring or other reorganization (other than the Merger); 
  
 (q) enter into any agreement or commitment the effect of which would be to grant to a third party following the Merger any actual or potential right of license to any material Intellectual Property owned by Parent or
any of the Parent Subsidiaries; 
  
 (r) without limiting the
generality or effect of any of the foregoing, expend funds or incur liabilities for capital expenditures in excess of the amounts set forth in the Company’s 2004 capital expenditure budget delivered by the Company to Parent prior to the date of
this Agreement; or 
  
 (s) agree to take, make any commitment to
take, or adopt any resolutions of its board of directors in support of, any of the actions prohibited by this Section 5.2. 
  
 5.3 Parent and Merger Sub Forbearances. During the period from the date of this Agreement to the Effective Time, except as expressly contemplated
or permitted by this Agreement or in the Parent Disclosure Letter, Parent and Merger Sub will not, and Parent will not permit any of the Parent Subsidiaries to, without the prior written consent of the Company (in its reasonable discretion):

  
 (a) adjust, split, combine or reclassify any of Parent’s
capital stock; 
  
 (b) amend the Parent Charter; 
  
 (c) knowingly take any action, or knowingly fail to take any reasonable
action, that is reasonably likely to prevent the Merger from qualifying as a reorganization within the meaning of Section 368(a) of the Code; 
  
 (d) subject to Section 6.13, take any action that would materially impede or delay the ability of the parties to obtain any necessary approvals of any
Regulatory Agency or other Governmental Entity required for the transactions contemplated hereby; 
  
 (e) adopt or recommend a plan of complete or partial dissolution or liquidation; 
  
 (f) subject to Section 6.13, take any action that is intended or is reasonably likely to result in any of its
representations or warranties set forth in this Agreement being or becoming untrue in any material respect at any time prior to the Effective Time, or in any of the conditions to the Merger set forth in Article VII not being satisfied or in a
violation of any provision of this Agreement, except, in every case, as may be required by applicable Law; 
  
 (g) declare or pay any dividend or other distribution on any class of Parent Common Stock with a record date prior to the Effective Time unless Parent

  

 33 

 irrevocably undertakes to add the per share amount of such dividend or distribution to the Merger Consideration;
provided, however, that this clause (iv) will not apply to repurchases of Parent capital stock or any cash dividends of no more than $0.25 per quarter declared or paid in connection with a decision by the Parent Board approving the
commencement of a regular quarterly dividend for Parent Common Stock; or 
  
 (h) agree to take, make any commitment to take, or adopt any resolutions of the Parent Board in support of, any of the actions prohibited by this Section 5.3. 
  
 ARTICLE VI 
  
 ADDITIONAL AGREEMENTS 
  
 6.1 Regulatory Matters; Third Party Consents. (a) Parent and the
Company will promptly prepare and file with the SEC the Joint Proxy Statement and Parent will promptly prepare and file with the SEC the Form S-4 in which the Joint Proxy Statement will be included as a prospectus. Each of Parent and the Company
will use their commercially reasonable efforts to have the Form S-4 declared effective under the Securities Act as promptly as practicable after such filing, and thereafter mail or deliver the Joint Proxy Statement to its respective stockholders.

  
 (b) Subject to Section 6.13, the parties will cooperate with
each other and use their respective commercially reasonable efforts to promptly prepare and file all necessary documentation, to effect all applications, notices, petitions and filings, to obtain as promptly as practicable all permits, consents,
approvals and authorizations of all third parties and Governmental Entities that are necessary or advisable to consummate the transactions contemplated by this Agreement (including the Merger) and to comply with the terms and conditions of all such
permits, consents, approvals and authorizations of all such Governmental Entities. The Company and Parent will have the right to review in advance, and, to the extent practicable, each will consult the other on, in each case subject to applicable
Laws relating to the exchange of information, all the information relating to the Company or Parent, as the case may be, and any of their respective Subsidiaries, which appear in any filing made with, or written materials submitted to, any third
party or any Governmental Entity in connection with the transactions contemplated by this Agreement. In exercising the foregoing right, each of the parties will act reasonably and as promptly as practicable. The parties will consult with each other
with respect to the obtaining of all permits, consents, approvals and authorizations of all third parties and Governmental Entities necessary or advisable to consummate the transactions contemplated by this Agreement and each party will keep the
other apprised of the status of matters relating to completion of the transactions contemplated by this Agreement. 
  
 (c) Each of Parent and the Company will, upon request, furnish to the other all information concerning itself, its Subsidiaries, directors, officers and
stockholders and such other matters as may be reasonably necessary or advisable in connection with the Joint Proxy Statement, the Form S-4 or any other statement, filing, 
  

 34 

 notice or application made by or on behalf of Parent, the Company or any of their respective Subsidiaries to any
Governmental Entity in connection with the Merger and the other transactions contemplated by this Agreement. 
  
 (d) Each of Parent and the Company will promptly advise the other upon receiving any communication from any Governmental Entity consent or approval of
which is required for consummation of the transactions contemplated by this Agreement. 
  
 6.2 Access to Information. (a) Upon reasonable notice and subject to applicable Laws relating to the exchange of information, each of the Company and Parent will, and will cause each Parent Subsidiary to,
afford to the officers, employees, accountants, counsel and other representatives of the other, reasonable access, during normal business hours during the period prior to the Effective Time, to all its properties, books, contracts, commitments and
records, and, during such period, the parties will, and will cause its Subsidiaries to, make available to the other party (i) a copy of each report, schedule, registration statement and other document filed or received by it during such period
pursuant to the requirements of federal or state securities Laws (other than reports or documents that such party is not permitted to disclose under applicable Law) and (ii) all other information concerning its business, properties and personnel as
the other may reasonably request. Neither the Company nor Parent nor any of their Subsidiaries will be required to provide access to or to disclose information where such access or disclosure would jeopardize the attorney-client privilege of such
party or its Subsidiaries or contravene any Law, rule, regulation, order, judgment, decree, fiduciary duty or binding agreement entered into prior to the date of this Agreement. The parties will make appropriate substitute disclosure arrangements
under circumstances in which the restrictions of the preceding sentence apply. 
  
 (b) All information and materials provided pursuant to this Agreement will be subject to the provisions of the Confidentiality Agreement entered into between the Company and Parent as of March 12, 2004 (the
“Confidentiality Agreement”). 
  
 (c) No
investigation by either of the parties or their respective representatives will affect the representations and warranties of the other set forth in this Agreement. 
  
 6.3 Stockholder Approvals. Each of the Company and Parent will call a meeting of its stockholders to be held as soon
as reasonably practicable for the purpose of obtaining the requisite stockholder approvals required in connection with this Agreement and the Merger, and each will use its reasonable best efforts to cause such meetings to occur as soon as reasonably
practicable on the same date. Each of the Company Board and the Parent Board will use its reasonable best efforts to obtain from its respective stockholders the Company Stockholder Approval and Parent Stockholder Approval. The Parent Board will
recommend that its stockholders vote in favor of the Share Issuance, and the Company Board will recommend that its stockholders vote in favor of the adoption of this Agreement, subject to their respective fiduciary duties in connection with any
Parent Acquisition Proposal in the case of the Parent Board, or, in 
  

 35 

 the case of the Company Board, subject to its fiduciary duties in respect of a Superior Proposal and in compliance by the
Company with Section 6.12. Nothing in this Agreement will prohibit Parent or the Company from taking and disclosing to its stockholders a position required by Rule 14e-2(a) or Rule 14d-9 promulgated under the Exchange Act. In addition, without
limiting the generality or effect of the foregoing, nothing herein will restrict any party from disclosing to its stockholders information that its Board of Directors determines in good faith, after consultation with counsel, it is required to
disclose under applicable Law. 
  
 6.4 Legal Conditions to
Merger. Subject to Section 6.13, each of Parent and the Company will, and will cause its Subsidiaries to, use their commercially reasonable efforts (i) to take, or cause to be taken, all actions necessary, proper or advisable to comply promptly
with all legal requirements that may be imposed on such party or its Subsidiaries with respect to the Merger and, subject to the conditions set forth in Article VII, to consummate the transactions contemplated by this Agreement and (ii) to obtain
(and to cooperate with the other party to obtain) any material consent, authorization, order or approval of, or any exemption by, any Governmental Entity and any other third party that is required to be obtained by the Company or Parent or any of
their respective Subsidiaries in connection with the Merger and the other transactions contemplated by this Agreement. 
  
 6.5 Affiliate Letters. The Company will use its commercially reasonable efforts to cause each director, executive officer and other Person who is
an “affiliate” (for purposes of Rule 145 under the Securities Act) of the Company to deliver to Parent, as soon as practicable after the date of this Agreement, and prior to the date of the meeting of the Company stockholders to be held
pursuant to Section 6.3, a written agreement, in the form of Exhibit C. 
  
 6.6 NYSE Listing. Parent will use its commercially reasonable efforts to cause the shares of Parent Class A Common Stock to be issued, or reserved for issuance, in connection with the Merger to be approved for
listing on the NYSE, subject to official notice of issuance, prior to the Effective Time. 
  
 6.7 Employee Matters. (a) From the Effective Time through the first anniversary of the Effective Time (the “Benefits Provision Date”), except for participation in equity plans (which is covered
by Section 6.7(b)), Parent will, or will cause the Company to, provide employees of the Company and the Company Subsidiaries as of the Effective Time (the “Covered Employees”) employee benefits and compensation plans, programs and
arrangements that, in Parent’s reasonable judgment, in the aggregate (giving effect to the benefits and compensation to be provided pursuant to Section 6.7(b)) are not substantially less valuable to Covered Employees than are the employee
benefits and compensation, excluding severance arrangements, plans, programs and arrangements provided by the Company or the Company Subsidiaries, as the case may be, to such employees as of the Measurement Date, provided, however,
that subject to Section 6.7(b), prior to the Benefits Provision Date Parent will be deemed to be in compliance with this covenant if it makes provision so that Covered Employees become eligible to participate in benefit plans provided to similarly
situated employees of Parent and the Parent Subsidiaries and nothing therein or otherwise will affect the at-will employment status of any employee. 
  

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 (b) Each of Parent and the Company will take the actions indicated to be taken by it on Exhibit
6.7(b) at or prior to the times specified therein. 
  
 (c) The
Company shall take all necessary and appropriate actions with respect to the Company Employee Stock Purchase Plan so that the offering period ending June 30, 2004, is the final offering period for which shares of Company Common Stock are issued
under such plan. 
  
 6.8 Indemnification; Directors’ and
Officers’ Insurance. (a) After the Effective Time, in the event of any threatened or actual claim, action, suit, proceeding or investigation, whether civil, criminal or administrative, including any such claim, action, suit, proceeding or
investigation in which any individual who is now, or has been at any time prior to the date of this Agreement, or who becomes prior to the Effective Time, a director, officer or employee of the Company or any of the Company Subsidiaries or who is or
was serving at the request of the Company or any of the Company Subsidiaries as a director, officer, employee or agent of another Person (the “Indemnified Parties”), is, or is threatened to be, made a party based in whole or in part
on, or arising in whole or in part out of, or pertaining to (i) the fact that such individual is or was a director, officer or employee of the Company or any of the Company Subsidiaries or (ii) this Agreement or any of the transactions contemplated
by this Agreement, whether asserted or arising before or after the Effective Time, Parent will, and will cause the Surviving Corporation to, indemnify, defend and hold harmless, such Indemnified Parties against such claims, actions, suits or
proceedings, to the fullest extent that would be permitted under applicable Delaware corporate Law (including reimbursement for reasonable fees and expenses incurred in advance of the final disposition of any claim, suit, proceeding or investigation
to each Indemnified Party). From and after the Effective Time, Parent will, and will cause the Surviving Corporation to, fulfill and honor in all respects the obligations of the Company to indemnify, defend and hold harmless, the Indemnified Parties
as provided in the Company Charter and the Company Bylaws in effect on the date hereof, and any agreement specifically listed in Section 6.8 of the Company Disclosure Letter, provided, however, to the extent any such matter arises out
of service by any individual as a director or officer of Parent as of or after the Merger, such indemnity shall be provided in accordance with the Parent Charter and Parent Bylaws, as in effect from time to time, and any director and officer
indemnification agreements between Parent and such person. 
  
 (b)
Parent will use its reasonable best efforts to cause the individuals covered by the Company’s directors’ and officers’ liability insurance immediately prior to the Effective Time to be covered for a period of six years after the
Effective Time by the directors’ and officers’ liability insurance as in effect on the Measurement Date, and if that is not practicable, then such insurance not substantially less favorable to the insureds than the policy maintained by the
Company as of the Measurement Date (such other insurance may include so-called “tail” policies, of at least the same coverage and amounts containing terms and conditions that are not less advantageous than the 
  

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 Company’s policy as in effect on the Measurement Date) with respect to acts or omissions occurring prior to the
Effective Time that were committed by such officers and directors in their capacity as such, and provided further, that in no event will Parent be required to expend in any year an amount in excess of 150% of the annual aggregate
premiums currently paid by the Company for such insurance (the “Maximum Premium”). If such insurance coverage cannot be obtained at all, or can only be obtained at an annual premium in excess of the Maximum Premium, Parent will
maintain policies of directors’ and officers’ insurance obtainable for an annual premium equal to the Maximum Premium. Notwithstanding the foregoing, Parent’s obligations under this Section 6.8(b) will be deemed satisfied to the
extent that any such individual is covered for all such periods with respect to such acts or omissions under any directors’ and officers’ liability insurance policy maintained by Parent for its directors and officers. 
  
 (c) This Section 6.8 will survive the Effective Time and is expressly
intended to be for the benefit of, and will be enforceable by the Indemnified Parties and their respective heirs and personal representatives and shall be binding on Parent and the Surviving Corporation and their respective successors and assigns.
In the event that Parent or the Surviving Corporation or their respective successors or assigns (i) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or entity in such consolidation or merger
or (ii) transfers all or substantially all of its properties and assets to any Person, then, and in each case, proper provision shall be made so that the successor and assign of Parent or the Surviving Corporation, as the case may be, honor the
obligations set forth with respect to Parent or the Surviving Corporation, as the case may be, in this Section 6.8. 
  
 6.9 Additional Agreements. In case at any time after the Effective Time any further action is necessary or desirable to carry out the purposes of
this Agreement or to vest the Surviving Corporation with full title to all properties, assets, rights, approvals, immunities and franchises of the Company, the proper officers and directors of each party and their respective Subsidiaries will take
all such necessary action as may be reasonably requested by, and at the sole expense of, Parent. 
  
 6.10 Advice of Changes. Each of Parent and the Company will promptly advise the other of any change or event (a) having or reasonably likely to
have a Parent MAE or a Company MAE, as the case may be, or (b) that it believes would or would be reasonably likely to cause or constitute a material breach of any of its representations, warranties or covenants contained in this Agreement;
provided, however, that (i) no such notification will affect the representations, warranties or covenants of the parties (or remedies with respect thereto) or the conditions to the obligations of the parties under this Agreement and
(ii) a failure to comply with this Section 6.10 will not constitute the failure of any condition set forth in Article VII to be satisfied unless the underlying Material Adverse Effect or material breach would independently result in the failure of a
condition set forth in Article VII to be satisfied. 
  
 6.11
Exemption from Liability Under Section 16(b). Parent and the Company agree that, in order to most effectively compensate and retain Company Insiders in connection with the Merger, both prior to and after the Effective Time, it is desirable
that 
  

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 Company Insiders not be subject to a risk of liability under Section 16(b) of the Exchange Act to the fullest extent
permitted by applicable Law in connection with the conversion of shares of Company Common Stock into shares of Parent Class A Common Stock in the Merger, and for that compensatory and retentive purposes agree to the provisions of this Section 6.11.
Assuming that the Company delivers to Parent the Section 16 Information in a timely fashion, the Parent Board, or a committee of Non-Employee Directors thereof (as such term is defined for purposes of Rule 16b-3(d) under the Exchange Act), will
adopt a resolution providing that the receipt by Company Insiders of Parent Class A Common Stock in exchange for shares of Company Common Stock pursuant to the transactions contemplated by this Agreement, to the extent such securities are listed in
the Section 16 Information, is intended to be exempt from liability pursuant to Section 16(b) under the Exchange Act. For purposes of this Agreement, (a) “Section 16 Information” will mean information accurate in all material
respects regarding Company Insiders, the number of shares of Company Common Stock (including Company Restricted Stock) held by each such Company Insider and expected to be exchanged for Parent Class A Common Stock in the Merger, and the number and
description of Company Stock Options held by each such Company Insider and expected to be cashed-out in connection with the Merger and (b) “Company Insiders” will mean those officers and directors of the Company who are subject to
the reporting requirements of Section 16(a) of the Exchange Act and who are listed in the Section 16 Information. 
  
 6.12 No Shop. (a) Except as otherwise permitted in this Section 6.12, the Company will not, and will cause the Company Subsidiaries and each
officer, director, employee, agent or representative (including any investment banker, financial advisor, attorney, accountant or other retained representative) of the Company or any of the Company Subsidiaries not to, directly or indirectly, (i)
solicit, initiate or knowingly encourage or facilitate (including by way of furnishing information) or take any other action designed to facilitate any inquiries or proposals regarding any merger, reorganization, share exchange, consolidation, sale
of assets, sale of shares of capital stock (including, without limitation, by way of a tender offer) or similar transactions involving the Company or any of the Company Subsidiaries that, if consummated, would constitute an Alternative Transaction
(any of the foregoing inquiries or proposals being referred to herein as an “Acquisition Proposal”), (ii) participate in any discussions or negotiations regarding an Alternative Transaction, or (iii) enter into any agreement
regarding any Alternative Transaction. Notwithstanding the foregoing, the Company Board will be permitted, prior to obtaining Company Stockholder Approval, and subject to compliance with the other terms of this Section 6.12 and to first entering
into a confidentiality agreement with the Person proposing such Acquisition Proposal on terms substantially similar to, and no less favorable to the Company than, those contained in the Confidentiality Agreement, in response to a bona fide written
Acquisition Proposal that constitutes, or could reasonably lead to, a Superior Proposal to consider and participate in discussions and negotiations with respect to such proposal and provide information in connection therewith. 
  

 39 

 (b) As used in this Agreement: 
  
 (i) “Alternative Transaction” means any of (i) a transaction pursuant to which any Person (or group of
persons) other than Parent or the Parent Subsidiaries, directly or indirectly, acquires or would acquire more than 10% of the outstanding shares of Company Common Stock or outstanding voting power or of any new series or new class of preferred stock
that would be entitled to a class or series vote with respect to the Merger, whether from the Company or pursuant to a tender offer or exchange offer or otherwise, (ii) a merger, reorganization, share exchange, consolidation or other business
combination involving the Company (other than the Merger), (iii) any transaction pursuant to which any Person (or group of persons) other than Parent or the Parent Subsidiaries acquires or would acquire control of assets (including for this purpose
the outstanding equity securities of the Company Subsidiaries and securities of the entity surviving any merger or business combination involving any Company Subsidiary) of the Company or any Company Subsidiary representing more than 10% of the fair
market value of all the assets, net revenues or net income of the Company and the Company Subsidiaries, taken as a whole, immediately prior to such transaction, (iv) any other consolidation, business combination, recapitalization or similar
transaction involving the Company or any Company Subsidiary, other than the transactions contemplated by this Agreement, as a result of which the holders of shares of Company Common Stock immediately prior to such transaction do not, in the
aggregate, own at least 90% of each of the outstanding shares of common stock and the outstanding voting power of the surviving or resulting entity in such transaction immediately after the consummation thereof, or (v) any other transaction that is
conditioned or predicated on the Merger not being completed in accordance with the terms of this Agreement or is intended or could reasonably be expected to result in the Merger not being so completed (provided, however, that any
transfers among General Atlantic Partners and its affiliates shall not be deemed an Alternative Transaction); and 
  
 (ii) “Superior Proposal” means a bona fide written proposal (not solicited by or on behalf of the Company or any of the Company
Subsidiaries or any officer, director, employee, agent or representative (including any investment banker, financial advisor, attorney, accountant or other retained representative) of the Company or any of the Company Subsidiaries or otherwise
resulting from a breach of Section 6.12(a)) made by a third party after the date of this Agreement that if consummated would result in such third party (or its stockholders) owning, directly or indirectly, more than 50% of the shares of Company
Common Stock then outstanding (or of the surviving entity in a merger or the direct or indirect parent of the surviving entity in a merger) or all or substantially all the assets of the Company and the Company Subsidiaries, taken as a whole, which
the Company Board determines in good faith (after consultation with a financial advisor of nationally recognized reputation and outside legal counsel) to be (A) more favorable to the stockholders of the Company from a financial point of view than
the Merger and the transactions contemplated by this Agreement (taking into account all the terms and conditions of such proposal and this Agreement including any changes to the financial terms of this Agreement proposed by Parent in response to
such offer or otherwise) and (B) reasonably capable of being completed, taking into account all financial, legal, regulatory and other aspects of such proposal. 
  

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 (c) The Company will notify Parent promptly as practicable (but in no event later than 24 hours) after
receipt of any Acquisition Proposal, or any material modification of or material amendment to any Acquisition Proposal, or any request for nonpublic information relating to the Company or any of the Company Subsidiaries or for access to the
properties, books or records of the Company or the Board of Directors of any Company Subsidiary by any Person that informs the Company Board or any Company Subsidiary that it is considering making, or has made, an Acquisition Proposal. Such notice
to Parent will be made orally and in writing, and will indicate the identity of the Person making the Acquisition Proposal or intending to make or considering making an Acquisition Proposal or requesting non-public information or access to the books
and records of the Company or any Company Subsidiary, and the material terms of any such Acquisition Proposal or modification or amendment to an Acquisition Proposal. The Company will (i) keep Parent informed, on a reasonably current basis, of any
material changes in the status and any material changes or modifications in the terms of any such Acquisition Proposal, indication or request and (ii) provide to Parent as soon as practicable after receipt or delivery thereof with copies of all
correspondence and other written material sent or provided to the Company from any third party in connection with any Acquisition Proposal or sent or provided by the Company to any third party in connection with any Acquisition Proposal. The Company
will also promptly as practicable, and in any event within 24 hours, notify Parent, orally and in writing, if it enters into discussions or negotiations concerning any Acquisition Proposal in accordance with Section 6.12(a). 
  
 (d) Neither the Company Board nor any committee thereof will (i) (A) withdraw
(or modify in a manner adverse to Parent) the recommendation by the Company Board or any such committee of this Agreement and the Merger, (B) determine that this Agreement or the Merger is no longer advisable, (C) recommend that the stockholders of
the Company reject this Agreement or the Merger, or (D) resolve, agree or propose publicly to take any such actions, or (E) recommend the approval or adoption of any Acquisition Proposal, unless in each case, a bona fide written Acquisition Proposal
that constitutes, or could reasonably lead to, a Superior Proposal has been made and the Company Board or a committee thereof determines in good faith (after consultation with outside legal counsel) that failure to take any such action would be
inconsistent with its fiduciary duties under applicable Law, (ii) adopt or approve any Acquisition Proposal, or withdraw its approval of this Agreement or the Merger, or resolve or agree to take any such actions, (iii) without limiting Section
6.12(d)(i), propose publicly to adopt or approve any Acquisition Proposal or propose publicly to withdraw its approval of this Agreement or the Merger or resolve or agree to take any such actions, or (iv) cause or permit the Company or any of the
Company Subsidiaries to enter into any letter of intent, memorandum of understanding, agreement in principle, acquisition agreement, merger agreement, option agreement, joint venture agreement, partnership agreement or other agreement (each, an
“Alternative Acquisition Agreement”) constituting or related to, or which is intended to or is reasonably likely to lead to, any Alternative Acquisition or Acquisition Proposal (other 
  

 41 

 than a confidentiality agreement referred to in Section 6.12(a)) or resolve or agree to take any such actions (each Board
action set forth in clauses (i)-(iv) of this Section 6.12(d) being referred to herein as an “Company Adverse Recommendation Change”). Notwithstanding the foregoing, prior to obtaining Company Stockholder Approval, the Company Board
may in response to a bona fide written Acquisition Proposal that constitutes a Superior Proposal, terminate this Agreement pursuant to Section 8.1(h) and concurrently approve, recommend and authorize the Company to enter into a binding Alternative
Acquisition Agreement containing the terms of a Superior Proposal; provided, however, that (1) the Company Board may not terminate this Agreement pursuant to Section 8.1(h), and any purported termination pursuant to Section 8.1(h) will
be void and of no force or effect, unless the Company has complied with all provisions of this Section 6.12, including the notification provisions in this Section 6.12, and with all applicable requirements of Sections 9.3(b) (including the payment
of the Company Termination Fee prior to or simultaneously with such termination) and (2) the Company may not exercise its right to terminate this Agreement pursuant to Section 8.1(h), (x) until after the second business day following Parent’s
receipt of written notice from the Company advising Parent that the Company Board has received a Superior Proposal and that the Company Board will, subject to any action taken by Parent pursuant to this sentence, cause the Company to accept such
Superior Proposal, which notice will specify the terms and conditions of the Superior Proposal and identify the Person making such Superior Proposal (a “Notice of Superior Proposal”) (it being understood and agreed that any
amendment to the price or any other material term of a Superior Proposal will require a new Notice of Superior Proposal and a new two business day period), and (y) unless after such second business day such Superior Proposal remains a Superior
Proposal and the Company Board so determines in accordance with the definition of “Superior Proposal.” Notwithstanding the foregoing, unless and until this Agreement is terminated in accordance with Section 8.1, nothing in this Section
6.12 will affect the obligations of the Company or the rights of Parent or Merger Sub under any other provision of this Agreement, including the Company’s obligation to seek the Company Stockholder Approval pursuant to Section 6.3. 

 
 (e) The Company will, and will cause the Company Subsidiaries and its or
their officers, directors, agents or representatives (including any investment banker, financial advisor, attorney, accountant or other retained representative) to, immediately cease and cause to be terminated any existing discussions or
negotiations with any persons (other than Parent and its representatives) conducted heretofore with respect to any of the foregoing, and will use reasonable best efforts to cause all persons other than Parent who have been furnished confidential
information regarding the Company in connection with the solicitation of or discussions regarding an Acquisition Proposal within the 12 months prior to the date hereof promptly to return or destroy such information. The Company agrees not to, and to
cause the Company Subsidiaries not to, release any third party from the confidentiality and standstill provisions of any agreement to which the Company or the Company Subsidiaries is or may become a party, and will immediately take all steps
necessary to terminate any approval that may have been heretofore given under any such provisions authorizing any Person to make an Acquisition Proposal, unless the Company Board determines in good faith that such Acquisition Proposal is, or could
reasonably lead to, a Superior Proposal. 
  

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 (f) The Company will ensure that the officers, directors and all employees, agents and representatives
(including any investment bankers, financial advisors, attorneys, accountants or other retained representatives) of the Company or the Company Subsidiaries are aware of the restrictions described in this Section 6.12 as reasonably necessary to avoid
violations thereof. It is understood that any violation of the restrictions set forth in this Section 6.12 by any officer, director, employee, agent or representative (including any investment banker, financial advisor, attorney, accountant or other
retained representative) of the Company or the Company Subsidiaries, at the direction or with the consent of the Company or the Company Subsidiaries, will be deemed to be a breach of this Section 6.12 by the Company. 
  
 6.13 Certain Limitations. Notwithstanding any other provision hereof
or otherwise applicable Law, (a) in no event will the Company or Parent be required to take any action to secure any regulatory or other consent or approval, or the lapse or termination of any waiting period, if the Company Board or the Parent
Board, as applicable, determines in good faith that taking such action would result in any condition to the Company or Parent’s obligation, as applicable, hereunder not being satisfied and (b) in no event will a party be required to agree to a
divestiture, hold-separate or similar restriction on its or the other party’s business, or agree to pay any amount (other than required filing fees and the legal and other incidental fees), in order to secure any governmental consent otherwise
required hereunder or by virtue of the transactions hereby contemplated. 
  
 6.14 Control of the Other Party’s Business. Nothing contained in this Agreement will give Parent, directly or indirectly, the right to control or direct the operations of the Company or will give the
Company, directly or indirectly, the right to control or direct the operations of Parent prior to the Effective Time. Prior to the Effective Time, each of Parent and the Company will exercise, consistent with the terms and conditions of this
Agreement, complete control and supervision over its and its Subsidiaries’ respective operations. 
  
 6.15 Merger Sub Compliance. Parent will cause Merger Sub to comply with all of Merger Sub’s obligations under or relating to this Agreement.
Merger Sub will not engage in any business which is not in connection with the Merger. Parent will vote all of the shares of Merger Sub in favor of the adoption of this Agreement. 
  
 6.16 Company Convertible Notes. Parent will, and will cause the Surviving Corporation to, execute and deliver on the
Closing Date a supplement to the Indenture, dated as of September 30, 2003 (the “Convertible Notes Indenture”), between the Company and J.P. Morgan Trust Company, National Association (as successor in interest to Bank One Trust
Company, N.A.), as trustee in accordance with the terms and conditions of the Convertible Notes Indenture. 
  
 6.17 Board of Directors of Parent. The Board of Directors of Parent will take all actions necessary such that, effective immediately following the
Effective Time, (i) one director of the Company prior to the Effective Time who qualifies as an “independent” director of Parent under the NYSE definition, selected by the Company Board and 
  

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 approved by the Nominating and Corporate Governance Committee of Parent and (ii) the GA Designee (as defined in the
Stockholders Agreement, dated as of the date of this Agreement, among Parent and certain affiliates of General Atlantic Partners) shall each become members of the Parent Board. If Parent’s Nominating and Corporate Governance Committee fails to
approve a director so selected by the Company Board within five business days of notice thereof, the Company may propose one or more Company Directors who so qualify until one of them is so approved. 
  
 ARTICLE VII 
  
 CONDITIONS PRECEDENT 
  
 7.1 Conditions to Each Party’s Obligation To Effect the Merger.
The respective obligations of the parties to effect the Merger shall be subject to the satisfaction at or prior to the Effective Time of the following conditions: 
  
 (a) Stockholder Approvals. Each of the Company Stockholder Approval and the Parent Stockholder Approval shall have
been obtained. 
  
 (b) NYSE Listing. The shares of Parent
Class A Common Stock to be issued to the holders of Company Common Stock upon consummation of the Merger shall have been authorized for listing on the NYSE, subject to official notice of issuance. 
  
 (c) HSR Act. Any waiting period applicable to the consummation of the
Merger under the HSR Act shall have expired or been terminated. 
  
 (d) Form S-4. The Form S-4 shall have become effective under the Securities Act and no stop order suspending the effectiveness of the Form S-4 shall have been issued and no proceedings for that purpose shall have been initiated or
threatened by the SEC. 
  
 (e) No Injunctions or Restraints;
Illegality. No Injunction preventing the consummation of the Merger or any of the other transactions contemplated by this Agreement shall be in effect. No statute, rule, regulation, order, Injunction or decree shall have been enacted, entered,
promulgated or enforced by any Governmental Entity that prohibits or makes illegal consummation of the Merger. 
  
 7.2 Conditions to Obligations of Parent and Merger Sub. The obligation of Parent and Merger Sub to effect the Merger is also subject to the
satisfaction, or waiver by Parent, on behalf of itself and Merger Sub, at or prior to the Effective Time, of the following conditions: 
  
 (a) Representations and Warranties. The representations and warranties of the Company set forth in this Agreement shall be true and correct as of
the date of this Agreement and as of the Effective Time as though made on and as of the Effective Time (except that representations and warranties that by their terms speak specifically as of the date of this Agreement or another date shall be true
and correct as of such date), provided, that this condition shall be deemed satisfied unless all 
  

 44 

 inaccuracies in such representations and warranties in the aggregate constitute a Material Adverse Effect on the Company
at the Closing Date (ignoring solely for purposes of this proviso any reference to Material Adverse Effect or other materiality qualifiers contained in such representations and warranties), and Parent shall have received a certificate signed on
behalf of the Company by the Chief Executive Officer or the Chief Financial Officer of the Company to the foregoing effect. 
  
 (b) Performance of Obligations of the Company. The Company shall have performed in all material respects all obligations required to be performed
by it under this Agreement at or prior to the Closing Date, and Parent shall have received a certificate signed on behalf of the Company by the Chief Executive Officer or the Chief Financial Officer of the Company to such effect. 
  
 (c) Company MAE. There shall not have occurred at any time after the
date of this Agreement any Company MAE. A “Company MAE” means any change, effect, event, occurrence or state of facts that has had or is reasonably likely in the future to have, individually or when considered with other effects, a
material adverse effect on (i) the business, results of operations or financial condition of the Company and the Company Subsidiaries taken as a whole (provided, however, that, with respect to this clause (i), Company MAE will be
deemed to exclude effects to the extent resulting from (A) changes, after the date hereof, in GAAP, (B) actions or omissions of the Company taken with the prior written consent of Parent, (C) matters specifically disclosed on the Company Disclosure
Letter, (D) the Company’s compliance with the terms and conditions of this Agreement, (E) changes affecting any of the industries in which such entity operates generally which do not affect the Company disproportionately, or (F) any events or
changes affecting general worldwide economic or capital market conditions which do not affect the Company disproportionately) or (ii) the ability of such party to timely consummate the transactions contemplated by this Agreement. 
  
 (d) Parent shall have received a written opinion from its legal counsel in
form and substance reasonably satisfactory to it, to the effect that the Merger will constitute a reorganization within the meaning of Section 368(a) of the Code and such opinion shall not have been withdrawn. 
  
 7.3 Conditions to Obligations of the Company. The obligation of the
Company to effect the Merger is also subject to the satisfaction or waiver by the Company at or prior to the Effective Time of the following conditions: 
  
 (a) Representations and Warranties. The representations and warranties of Parent and Merger Sub set forth in this Agreement shall be true and
correct as of the date of this Agreement and as of the Effective Time as though made on and as of the Effective Time (except that representations and warranties that by their terms speak specifically as of the date of this Agreement or another date
shall be true and correct as of such date), provided, that this condition shall be deemed satisfied unless all inaccuracies in such representations and warranties in the aggregate constitute a Material Adverse Effect on Parent at the
Closing Date (ignoring solely for 
  

 45 

 purposes of this proviso any reference to Material Adverse Effect or other materiality qualifiers contained in such
representations and warranties), and the Company shall have received a certificate signed on behalf of Parent and Merger Sub by the Chief Executive Officer or the Chief Financial Officer of Parent to the foregoing effect. 
  
 (b) Performance of Obligations of Parent. Parent and Merger Sub shall
have performed in all material respects all obligations required to be performed by them under this Agreement at or prior to the Closing Date, and the Company shall have received a certificate signed on behalf of Parent and Merger Sub by the Chief
Executive Officer or the Chief Financial Officer of Parent to such effect. 
  
 (c) Parent MAE. There shall not have occurred at any time after the date of this Agreement any Parent MAE. A “Parent MAE” means any change, effect, event, occurrence or state of facts that has
had or is reasonably likely in the future to have, individually or when considered with other effects, a material adverse effect on (i) the business, results of operations or financial condition of Parent and Parent Subsidiaries taken as a whole
(provided, however, that, with respect to this clause (i), Parent MAE will be deemed to exclude effects to the extent resulting from (A) changes, after the date hereof, in GAAP, (B) actions or omissions of Parent taken with the prior
written consent of the Company, (C) matters specifically disclosed on the Parent Disclosure Letter, (D) Parent’s compliance with the terms and conditions of this Agreement, (E) changes affecting any of the industries in which such entity
operates generally which do not affect Parent disproportionately, or (F) any events or changes affecting general worldwide economic or capital market conditions which do not affect Parent disproportionately) or (ii) the ability of such party to
timely consummate the transactions contemplated by this Agreement. 
  
 (d) The Company shall have received a written opinion from its legal counsel in form and substance reasonably satisfactory to it, to the effect that the Merger will constitute a reorganization within the meaning of Section 368(a) of the
Code and such opinion shall not have been withdrawn. 
  
 ARTICLE
VIII 
  
 TERMINATION AND AMENDMENT 
  
 8.1 Termination. This Agreement may be terminated at any time prior to
the Effective Time by action taken or authorized by the Board of Directors of the terminating party, whether before or after approval of the matters presented in connection with the Merger by the stockholders of the Company or Parent: 
  
 (a) by mutual consent of the Company and Parent (on behalf of itself and
Merger Sub) in a written instrument; 
  
 (b) by either the Company
or Parent, upon written notice to the other party, if any Governmental Entity of competent jurisdiction shall have issued a final and nonappealable order permanently enjoining or otherwise prohibiting the consummation of the transactions
contemplated by this Agreement; 
  

 46 

 (c) by either the Company or Parent, upon written notice to the other party, if Company Stockholder
Approval shall not have been obtained at a Company Stockholders Meeting or any adjournment or postponement thereof; provided, however, that the right to terminate this Agreement under this Section 8.1(c) shall not be available to the
Company where the failure to obtain the Company Stockholder Approval shall have been caused by the action or failure to act of the Company and such action or failure to act constitutes a material breach by the Company of this Agreement; 

 
 (d) by either the Company or Parent, upon written notice to the other
party, if Parent Stockholder Approval shall not have been obtained at a Parent Stockholders Meeting or any adjournment or postponement thereof; provided, however, that the right to terminate this Agreement under this Section 8.1(d)
shall not be available to Parent where the failure to obtain Parent Stockholder Approval shall have been caused by the action or failure to act of Parent and such action or failure to act constitutes a material breach by Parent of this Agreement;

  
 (e) by either the Company or Parent, upon written notice to
the other party, if the Merger shall not have been consummated on or before January 31, 2005, unless the failure of the Closing to occur by such date is due to the failure of the party seeking to terminate this Agreement to perform or observe the
covenants and agreements of such party set forth in this Agreement; 
  
 (f) by either the Company or Parent, upon written notice to the other party, if there shall have been a breach of any of the covenants or agreements or any of the representations or warranties set forth in this Agreement on the part of the
Company, in the case of a termination by Parent, or Parent or Merger Sub, in the case of a termination by the Company, which breach, either individually or in the aggregate, would result in, if occurring or continuing on the Closing Date, the
failure of the conditions set forth in Section 7.2 or 7.3, as the case may be, and which is not cured within 45 calendar days following written notice to the party committing such breach or by its nature or timing cannot be cured within such time
period; 
  
 (g) by Parent, upon written notice to the Company, in
the event of a Company Adverse Recommendation Change; 
  
 (h) by
the Company, upon written notice to Parent, if the Company Board shall have exercised its rights set forth in Section 6.12(d); provided, that, in order for the termination of this Agreement pursuant to this paragraph (h) to be deemed
effective, the Company shall have complied with the provisions of Section 6.12, including the notice provisions thereof and the provisions of Section 9.3(b); 
  
 (i) by Parent, if a Company MAE shall have occurred since the date hereof; provided, that if the Material Adverse Effect is one that
“is reasonably likely in the future to have a material adverse effect” but has not yet had such effect, then 
  

 47 

 Parent’s right to terminate under this Section 8.1(i) will be suspended until (i) the Company MAE has actually
become materially adverse, in which case Parent may terminate or (ii) the Company MAE has abated without actually becoming materially adverse, in which case Parent may not terminate as a result of that Company MAE; 
  
 (j) by the Company, if a Parent MAE shall have occurred since the date
hereof; provided, that if the Material Adverse Effect is one that “is reasonably likely in the future to have a material adverse effect” but has not yet had such effect, then the Company’s right to terminate under this
Section 8.1(j) shall be suspended until (i) the Parent MAE has actually become materially adverse, in which case the Company may terminate or (ii) the Parent MAE has abated without actually becoming materially adverse, in which case the Company may
not terminate as a result of that Parent MAE; or 
  
 (k) by
Parent, in order to enter into an agreement for a Parent Acquisition; provided, that in order for the termination of this Agreement pursuant to this Section 8.1(k) to be deemed effective, Parent shall have complied with the provisions
of Section 9.3(c) and shall have given the Company two business days’ notice of its intent to do so. 
  
 8.2 Effect of Termination. In the event of termination of this Agreement by either the Company or Parent as provided in Section 8.1, this Agreement
will forthwith become void and have no effect, and none of the Company, Parent, any of their respective Subsidiaries or any of the officers or directors of any of them will have any liability of any nature whatsoever under this Agreement, or in
connection with the transactions contemplated by this Agreement, except that (i) Sections 6.2(b), 8.2 and 9.3 through 9.11 will survive any termination of this Agreement and (ii) notwithstanding anything to the contrary contained in this Agreement,
none of the Company, Parent nor Merger Sub will be relieved or released from any liabilities or damages arising out of its willful breach of any provision of this Agreement. 
  
 8.3 Amendment. Subject to compliance with applicable Law, this Agreement may be amended by the Company and Parent (on
behalf of itself and Merger Sub), by action taken or authorized by their respective Boards of Directors, at any time before or after approval of the matters presented in connection with Merger by the stockholders of the Company, except that, after
any approval of the transactions contemplated by this Agreement by the stockholders of the Company, there may not be, without further approval of such stockholders, any amendment of this Agreement that changes the amount or the form of the
consideration to be delivered under this Agreement to the holders of Company Common Stock, other than as contemplated by this Agreement. This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties.

  
 8.4 Extension; Waiver. At any time prior to the
Effective Time, the Company and Parent (on behalf of itself and Merger Sub), by action taken or authorized by their respective Board of Directors, may, to the extent legally allowed, (a) extend the time for the performance of any of the obligations
or other acts of the other party, (b) waive any 
  

 48 

 inaccuracies in the representations and warranties contained in this Agreement, and (c) waive compliance with any of the
agreements or conditions contained in this Agreement, except that, after any approval of the transactions contemplated by this Agreement by the stockholders of the Company, there may not be, without further approval of such stockholders, any
extension or waiver of this Agreement or any portion hereof that reduces the amount or changes the form of the consideration to be delivered to the holders of Company Common Stock under this Agreement, other than as contemplated by this Agreement.
Any agreement on the part of a party to any such extension or waiver will be valid only if set forth in a written instrument signed on behalf of such party, but such extension or waiver or failure to insist on strict compliance with an obligation,
covenant, agreement or condition will not operate as a waiver of, or estoppel with respect to, any subsequent or other failure. 
  
 ARTICLE IX 
  
 GENERAL PROVISIONS 
  
 9.1 Closing. On the terms and subject to conditions set forth in this Agreement, the closing of the Merger (the “Closing”) will take place at 10:00 a.m. on a date and at a place to be specified
by the parties, which date will be no later than two business days after the satisfaction or waiver (subject to applicable Law) of the latest to occur of the conditions set forth in Article VII (other than those conditions that by their nature are
to be satisfied or waived at the Closing), unless extended by mutual agreement of the Company and Parent (on behalf of itself and Merger Sub) (the “Closing Date”). 
  
 9.2 Nonsurvival of Representations, Warranties and Covenants. None of the representations, warranties and covenants
set forth in this Agreement or in any instrument delivered pursuant to this Agreement will survive the Effective Time, except for Section 6.8 and for those other covenants and agreements contained in this Agreement that by their terms apply or are
to be performed in whole or in part after the Effective Time. 
  
 9.3 Expenses and Fees. (a) Except as provided below, all costs and expenses incurred in connection with this Agreement and the transactions contemplated by this Agreement will be paid by the party incurring such expense, except that
the costs and expenses of printing and mailing the Joint Proxy Statement, and all filing and other fees paid to the SEC in connection with the Merger, other than the fee under the HSR Act, will be shared equally by the Company and Parent.

  
 (b) The Company will pay Parent, by wire transfer of
immediately available funds, an amount (the “Company Termination Fee”) equal to $30 million if this Agreement is terminated as follows: 
  
 (i) if Parent shall terminate this Agreement pursuant to Section 8.1(g), then the Company will pay the Company Termination Fee on the business day
following such termination; provided, however, the Company shall not be required to pay the Company Termination Fee if the Company was otherwise entitled to terminate this Agreement pursuant to Sections 8.1(b),(d), (e), (f) or (j);

  

 49 

 (ii) if the Company shall terminate this Agreement pursuant to Section 8.1(h), then the Company will pay
the Company Termination Fee prior to such termination; 
  
 (iii)
if (A) either party shall terminate this Agreement pursuant to Section 8.1(c) or 8.1(e), (B) at any time after the date of this Agreement and at or before the date of the Company Stockholders Meeting a Company Acquisition Proposal shall have been
publicly announced and not withdrawn (a “Public Proposal”) with respect to the Company, and if (C) within 18 months of the date of such termination of this Agreement, the Company or any of the Company Subsidiaries consummates any
Company Acquisition, then the Company will pay the Company Termination Fee on the date of such consummation; and 
  
 (iv) if (A) Parent shall terminate this Agreement pursuant to Section 8.1(f) or 8.1(i), (B) at any time after the date of this Agreement and before such
termination a Public Proposal with respect to the Company shall have been publicly announced and not withdrawn, (C) following the occurrence of such Public Proposal, the Company shall have intentionally breached (and not cured after notice thereof)
any of its representations, warranties, covenants or agreements set forth in this Agreement, which breach shall have materially contributed to the failure of the Effective Time to occur prior to the termination of this Agreement, and if (D) within
18 months of the date of such termination of this Agreement, the Company or any of the Company Subsidiaries consummates any Company Acquisition, then the Company will pay the Company Termination Fee on the date of such consummation. 
  
 For purposes of this Agreement, a “Company Acquisition”
means (i) any merger, reorganization, share exchange, consolidation, recapitalization or other business combination involving the Company or any Company Subsidiary which, upon consummation, would result in a change in the majority of the Company
Board and as a result of which the holders of shares of Company Common Stock immediately prior to such transaction do not, in the aggregate, own at least 50% of the surviving or resulting entity in such transaction, (ii) any transaction pursuant to
which any Person (or group of persons) acquires or would acquire control of voting securities of the Company representing more than 50% of the voting securities of the Company, or (iii) any purchase of all or substantially all of the consolidated
assets of the Company and Company Subsidiaries, taken as a whole, in each case, other than the transactions contemplated by this Agreement, provided, however, that “Company Acquisition” will not include any transaction
whereby General Atlantic Partners and its affiliates acquire more than 50% of the voting securities of the Company unless such transaction is a “Rule 13e-3 transaction” as defined in Rule 13e-3(a)(3) under the Exchange Act (assuming for
this purpose that General Atlantic Partners is an affiliate of the Company) and “Company Acquisition Proposal” means a bona fide proposal by a third party made after the date of this Agreement that, if consummated, would be a
Company Acquisition. 
  

 50 

 (c) If (i) either party shall terminate this Agreement pursuant to Section 8.1(d) or 8.1(e), (ii) at any
time after the date of this Agreement and at or before the date of the Parent Stockholders Meeting a Parent Acquisition Proposal shall have been publicly announced and not withdrawn with respect to Parent, (iii) Parent Stockholder Approval shall
have not been obtained at the time of termination in the case of termination under Section 8.1(e) and the Parent Acquisition Proposal is conditioned or predicated on the Merger not being completed in accordance with the terms of this Agreement or is
intended or could reasonably be expected to result in the Merger not being so completed, and (iv) within 18 months of the date of such termination of this Agreement, Parent or any of the Parent Subsidiaries consummates a Parent Acquisition, then
Parent will pay the Company on the date of such consummation an amount by wire transfer of immediately available funds, equal to $30 million. For purposes of this Agreement, a “Parent Acquisition” means (A) any merger,
reorganization, share exchange, consolidation, recapitalization or other business combination involving Parent or any Parent Subsidiary which, upon consummation, would result in a change in the majority of the Parent Board and as a result of which
the holders of shares of Parent Common Stock immediately prior to such transaction do not, in the aggregate, own at least 50% of the surviving or resulting entity in such transaction, (B) any transaction pursuant to which any Person (or group of
persons) acquires or would acquire control of voting securities of Parent representing more than 50% of the voting securities of Parent, or (C) any purchase of all or substantially all of the consolidated assets of Parent and Parent Subsidiaries,
taken as a whole, and “Parent Acquisition Proposal” means a bona fide proposal by a third party made after the date of this Agreement that, if consummated, would be a Parent Acquisition. 
  
 (d) If Parent terminates this Agreement pursuant to Section 8.1(k), then
Parent will pay to the Company $30 million prior to such termination by wire transfer of immediately available funds. 
  
 (e) If the Company or Parent terminates this Agreement pursuant to Section 8.1(d), then Parent shall pay to the Company the sum of $10 million promptly
following the termination of this Agreement; provided, however, that Parent shall not be required to pay such fee if at the time of termination Parent was otherwise entitled to terminate this Agreement. 
  
 (f) Each of the parties acknowledges that the agreements contained in Section
9.3 are an integral part of the transactions contemplated by this Agreement and that, without these agreements, the other party would not enter into this Agreement; accordingly, if either party fails promptly to pay the amounts due pursuant to
Section 9.3 and, in order to obtain such payment, the non-breaching party commences a suit that results in a judgment against the breaching party for the amounts set forth in Section 9.3, the breaching party will pay to the non-breaching party
interest on the amounts set forth in Section 9.3 at a rate per annum equal to three-month LIBOR (as reported in The Wall Street Journal (Northeast edition) or, if not reported therein, in another authoritative source selected by the non-breaching
party) on the date such payment was required to be made (or if no quotation for three-month LIBOR is available for such date, on the next preceding date for which such a quotation is available) plus 1.5%. 
  

 51 

 9.4 Notices. All notices and other communications in connection with this Agreement will be in
writing and will be deemed given if delivered personally, sent via facsimile (with confirmation), mailed by registered or certified mail (return receipt requested) or delivered by an express courier (with confirmation) to the parties at the
following addresses (or at such other address for a party as will be specified by like notice): 
  

			
	 (a)
	  	if to the Company, to:
		
	 	  	Exult, Inc.
	 	  	121 Innovation Drive, Suite 200
	 	  	Irvine, CA 92612
	 	  	Attention: James Madden
	 	  	Fax: (949) 856-8803
		
	 	  	with a copy to:
		
	 	  	Gibson, Dunn & Crutcher LLP
	 	  	Jamboree Center
	 	  	4 Park Plaza, Suite 1400
	 	  	Irvine, CA 92614
	 	  	Attention: Thomas D. Magill
	 	  	                  E. Michael Greaney
	 	  	Fax: (949) 451-4220
		
	 (b)
	  	if to Parent or Merger Sub, to:
		
	 	  	Hewitt Associates, Inc.
	 	  	100 Half Day Road
	 	  	Lincolnshire, IL 60069
	 	  	Attention: Dale L. Gifford
	 	  	                  Bryan J. Doyle
	 	  	Fax: (847) 295-7634
		
	 	  	with a copy to:
		
	 	  	Jones Day
	 	  	222 East 41st Street
	 	  	New York, NY 10017
	 	  	Attention: Robert A. Profusek
	 	  	                  Marilyn W. Sonnie
	 	  	Fax: (212) 755-7306

  
 9.5
Interpretation. (a) When a reference is made in this Agreement to Articles, Sections, Exhibits or Schedules, such reference will be to a Article or Section of or 
  

 52 

 Exhibit or Schedule to this Agreement unless otherwise indicated. The table of contents and headings contained in this
Agreement are for reference purposes only and will not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement, they will be
deemed to be followed by the words “without limitation.” For purposes of this Agreement, “Person” means any individual (in any capacity) or legal entity, including a Governmental Entity, and “knowledge of the
Company” means the actual knowledge of its executive officers after due inquiry. Unless the context otherwise requires, (i) “or” is disjunctive but not necessarily exclusive, (ii) words in the singular include the plural and vice
versa, (iii) the use in this Agreement of a pronoun in reference to a party hereto includes the masculine, feminine or neuter, as the context may require, and (iv) terms used herein which are defined in GAAP have the meanings ascribed to them
therein. The Company Disclosure Letter and the Parent Disclosure Letter, as well as all other schedules and all exhibits hereto, will be deemed part of this Agreement and included in any reference to this Agreement. This Agreement will not be
interpreted or construed to require any Person to take any action, or fail to take any action, if to do so would violate any applicable Law. Notwithstanding anything in this Agreement to the contrary, the mere inclusion of an item therein as an
exception to a representation or warranty will not be deemed an admission that such item represents a material exception or material fact, event or circumstance or that such item has had or would, individually or in the aggregate, have a Material
Adverse Effect on the Company or Parent, as the case may be. 
  
 (b) The parties have participated jointly in negotiating and drafting this Agreement. In the event that an ambiguity or a question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties,
and no presumption or burden of proof will arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement. 
  
 9.6 Counterparts. This Agreement may be executed in two or more counterparts, all of which will be considered one and the same agreement and will
become effective when counterparts have been signed by each of the parties and delivered to the other party, it being understood that each party need not sign the same counterpart. 
  
 9.7 Entire Agreement. This Agreement (including the documents and the instruments referred to in this Agreement),
together with the Confidentiality Agreement, constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter of this Agreement, other than the
Confidentiality Agreement. 
  
 9.8 Governing Law. This
Agreement will be governed and construed in accordance with the internal Laws of the State of Delaware applicable to contracts made and wholly performed within such state, without regard to any applicable conflict of laws principles. 
  

 53 

 9.9 Publicity. None of the Company, Parent or Merger Sub will, and neither the Company nor Parent
will permit any of its Subsidiaries to, issue or cause the publication of any press release or similar public announcement with respect to, or otherwise make any public statement concerning, the transactions contemplated by this Agreement without
the prior consent (which consent will not be unreasonably withheld) of Parent, in the case of a proposed announcement or statement by the Company, or the Company, in the case of a proposed announcement or statement by Parent or Merger Sub;
provided, however, that either party may, without the prior consent of the other party (but after prior consultation with the other party to the extent practicable under the circumstances) issue or cause the publication of any press
release or other public announcement to the extent required by Law or by the rules and regulations of the NYSE or the National Association of Securities Dealers Automated Quotation System. 
  
 9.10 Assignment; Third Party Beneficiaries. Neither this Agreement nor
any of the rights, interests or obligations under this Agreement may be assigned by any of the parties (whether by operation of Law or otherwise) without the prior written consent of the Company, in the case of Parent or Merger Sub, or Parent, in
the case of the Company. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by each of the parties and their respective successors and assigns. Except as otherwise specifically provided
in Section 6.8, this Agreement (including the documents and instruments referred to in this Agreement) is not intended to and does not confer upon any Person other than the parties hereto any rights or remedies under this Agreement. 
  
 9.11 Enforcement of Agreement. The parties hereto agree that
irreparable damage would occur in the event that this Agreement were not performed in accordance with its specific terms or were otherwise breached. It is accordingly agreed that the parties will be entitled to an injunction or injunctions to
prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof in any court of the United States or any state having jurisdiction, this being in addition to any other remedy to which they are entitled at Law or in
equity. 
  
 [Remainder of Page Intentionally Left Blank]

  

 54 

 IN WITNESS WHEREOF, the Company, Parent and Merger Sub have caused this Agreement to be executed by their
respective officers thereunto duly authorized as of the date first above written. 
  

			
	 EXULT, INC.

		
	 By:
	 	 /s/ James C. Madden, V.

	 Name:
	 	 James C. Madden, V.

	 Title:
	 	 Chief Executive Officer

  
 [Signature
Page to Agreement and Plan of Merger] 

			
	 HEWITT ASSOCIATES, INC.

		
	 By:
	 	 /s/ Dale L. Gifford

	 Name:
	 	 Dale L. Gifford

	 Title:
	 	 Chief Executive Officer

	
	 EAGLE MERGER CORP.

		
	 By:
	 	 /s/ John M. Ryan

	 Name:
	 	 John M. Ryan

	 Title:
	 	 Vice President

  
 [Signature
Page to Agreement and Plan of Merger]Amended and Restated Credit Agreement, dated June 11, 2004

 Exhibit 10.1 
  

  
 AMENDED AND RESTATED 
  
 CREDIT AGREEMENT

  
 dated as of 
  
 June 11, 2004 
  
 among 
  
 LBI MEDIA, INC., 
  
 THE GUARANTORS PARTY HERETO, 
  
 THE LENDERS PARTY HERETO, 
  
 and 
  
 CREDIT SUISSE FIRST BOSTON, 
 as Administrative Agent and Lead Arranger

  

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

			
	 ARTICLE 1
	 	 DEFINITIONS
	  	1
			
	         1.1
	 	 Defined Terms
	  	1
			
	         1.2
	 	 Classification of Loans and Borrowings
	  	42
			
	         1.3
	 	 Terms Generally
	  	42
			
	         1.4
	 	 Accounting Terms; GAAP
	  	43
			
	 ARTICLE 2
	 	 THE CREDITS
	  	43
			
	         2.1
	 	 Revolving Credit Commitments
	  	43
			
	         2.2
	 	 Loans and Borrowings
	  	46
			
	         2.3
	 	 Requests for Borrowings
	  	46
			
	         2.4
	 	 Letters of Credit
	  	48
			
	         2.5
	 	 Funding of Borrowings
	  	52
			
	         2.6
	 	 Interest Elections
	  	53
			
	         2.7
	 	 Termination and Reduction of Commitments
	  	54
			
	         2.8
	 	 Swing Loan Facility
	  	55
			
	         2.9
	 	 Mitigation Obligations; Replacement of Lenders
	  	58
			
	         2.10
	 	 Repayment of Loans; Evidence of Debt
	  	59
			
	         2.11
	 	 Prepayment of Loans
	  	60
			
	         2.12
	 	 Fees
	  	64
			
	         2.13
	 	 Interest
	  	66
			
	         2.14
	 	 Alternate Rate of Interest
	  	67
			
	         2.15
	 	 Increased Costs
	  	68
			
	         2.16
	 	 Break Funding Payments
	  	69
			
	         2.17
	 	 Taxes
	  	70
			
	         2.18
	 	 Payments Generally: Pro Rata Treatment; Sharing of Set-Offs
	  	71
			
	 ARTICLE 3
	 	 GUARANTEE BY GUARANTORS
	  	74
			
	         3.1
	 	 The Guarantee
	  	74
			
	         3.2
	 	 Obligations Unconditional
	  	74
			
	         3.3
	 	 Reinstatement
	  	75
			
	         3.4
	 	 Subrogation
	  	75

  

 -i- 

 TABLE OF CONTENTS 
  
 (continued) 
  

					
	 	 	 	  	Page

	        3.5	 	 Remedies
	  	75
			
	        3.6	 	 Continuing Guarantee
	  	75
			
	        3.7	 	 Rights of Contribution
	  	76
			
	        3.8	 	 General Limitation on Guarantee Obligations
	  	76
			
	        3.9	 	 Waivers
	  	76
			
	ARTICLE 4	 	 REPRESENTATIONS AND WARRANTIES
	  	77
			
	        4.1	 	Organization; Powers	  	77
			
	        4.2	 	 Authorization; Enforceability
	  	77
			
	        4.3	 	 Governmental Approvals; No Conflicts
	  	78
			
	        4.4	 	 Financial Condition; No Material Adverse Change
	  	78
			
	        4.5	 	 Properties
	  	79
			
	        4.6	 	 Litigation and Environmental Matters
	  	80
			
	        4.7	 	 Compliance with Laws and Agreements
	  	80
			
	        4.8	 	 Investment and Holding Company Status
	  	81
			
	        4.9	 	 Taxes
	  	81
			
	        4.10	 	 ERISA
	  	81
			
	        4.11	 	 Disclosure
	  	81
			
	        4.12	 	 Ownership and Capitalization
	  	81
			
	        4.13	 	 Subsidiaries
	  	82
			
	        4.14	 	 Material Indebtedness, Liens and Agreements
	  	82
			
	        4.15	 	 Permits and Licenses
	  	83
			
	        4.16	 	 Federal Reserve Regulations
	  	84
			
	        4.17	 	 Burdensome Restrictions
	  	84
			
	        4.18	 	 Force Majeure
	  	84
			
	        4.19	 	 Labor and Employment Matters.
	  	84
			
	        4.20	 	 Subchapter S Election and QSSS Election
	  	85
			
	        4.21	 	 Senior Indebtedness
	  	85
			
	        4.22	 	 Patriot Act
	  	85
			
	ARTICLE 5	 	 CONDITIONS
	  	85

  

 -ii- 

 TABLE OF CONTENTS 
  
 (continued) 
  

							
	 	 	 	 	 	  	Page

	 	 	5.1	 	Effective Time	  	85
				
	 	 	5.2	 	 Each Extension of Credit
	  	90
		
	 ARTICLE 6 AFFIRMATIVE COVENANTS
	  	90
				
	 	 	6.1	 	 Financial Statements and Other Information
	  	90
				
	 	 	6.2	 	 Notices of Material Events
	  	92
				
	 	 	6.3	 	 Existence; Conduct of Business
	  	93
				
	 	 	6.4	 	 Payment of Obligations
	  	93
				
	 	 	6.5	 	 Maintenance of Properties; Insurance
	  	93
				
	 	 	6.6	 	 Books and Records; Inspection Rights
	  	94
				
	 	 	6.7	 	 Fiscal Year
	  	94
				
	 	 	6.8	 	 Compliance with Laws, Maintenance of FCC Licenses
	  	94
				
	 	 	6.9	 	 Use of Proceeds
	  	95
				
	 	 	6.10	 	 Certain Obligations Respecting Guarantors and Collateral Security
	  	95
				
	 	 	6.11	 	 ERISA
	  	96
				
	 	 	6.12	 	 Environmental Matters; Reporting
	  	96
				
	 	 	6.13	 	 Conforming Leasehold Interests; Matters Relating to Real Property Collateral
	  	97
				
	 	 	6.14	 	 Hedging Agreements
	  	99
				
	 	 	6.15	 	 Post-Closing Obligations
	  	99
				
	 	 	6.16	 	 Employment Agreements
	  	101
		
	 ARTICLE 7 NEGATIVE COVENANTS
	  	101
				
	 	 	7.1	 	 Indebtedness
	  	101
				
	 	 	7.2	 	 Liens
	  	102
				
	 	 	7.3	 	 Contingent Liabilities
	  	104
				
	 	 	7.4	 	 Fundamental Changes; Asset Sales
	  	105
				
	 	 	7.5	 	 Investments; Hedging Agreements
	  	109
				
	 	 	7.6	 	 Restricted Junior Payments
	  	112
				
	 	 	7.7	 	 Transactions with Affiliates
	  	114
				
	 	 	7.8	 	 Restrictive Agreements
	  	114

  

 -iii- 

 TABLE OF CONTENTS 
  
 (continued) 
  

					
	 	 	 	  	Page

			
	        7.9	 	 Sale-Leaseback Transactions
	  	115
			
	        7.10	 	 Certain Financial Covenants
	  	115
			
	        7.11	 	 Lines of Business; Restrictions on the Borrower
	  	116
			
	        7.12	 	 Subordinated Indebtedness
	  	117
			
	        7.13	 	 Modifications of Certain Documents
	  	117
			
	        7.14	 	 Empire Burbank
	  	117
			
	        7.15	 	 Holding Company Restrictions
	  	118
			
	        7.16	 	 License Subsidiaries
	  	120
			
	ARTICLE 8	 	 EVENTS OF DEFAULT
	  	121
			
	        8.1	 	 Events of Default
	  	121
			
	ARTICLE 9	 	 THE ADMINISTRATIVE AGENT
	  	125
			
	        9.1	 	 Appointment and Authorization
	  	125
			
	        9.2	 	 Administrative Agent’s Rights as Lender
	  	125
			
	        9.3	 	 Duties As Expressly Stated
	  	125
			
	        9.4	 	 Reliance By Administrative Agent
	  	126
			
	        9.5	 	 Action Through Sub-Agents
	  	126
			
	        9.6	 	 Resignation of Administrative Agent and Appointment of Successor Administrative Agent
	  	127
			
	        9.7	 	 Lenders’ Independent Decisions
	  	127
			
	        9.8	 	 Indemnification
	  	127
			
	        9.9	 	 Consents Under Other Loan Documents
	  	128
			
	ARTICLE 10	 	 MISCELLANEOUS
	  	128
			
	        10.1	 	 Notices
	  	128
			
	        10.2	 	 Waivers; Amendments
	  	129
			
	        10.3	 	 Expenses; Indemnity; Damage Waiver
	  	130
			
	        10.4	 	 Successors and Assigns
	  	132
			
	        10.5	 	 Survival
	  	135
			
	        10.6	 	 Counterparts; Integration; References to Agreement; Effectiveness
	  	136
			
	        10.7	 	 Severability
	  	136

  

 -iv- 

 TABLE OF CONTENTS 
  
 (continued) 
  

					
	 	 	 	  	Page
			
	 10.8
	 	 Right of Setoff
	  	136
			
	 10.9
	 	 Governing Law; Jurisdiction; Consent to Service of Process
	  	136
			
	 10.10
	 	 WAIVER OF JURY TRIAL
	  	137
			
	 10.11
	 	 Headings
	  	137
			
	 10.12
	 	 Release of Collateral and Guarantees
	  	138
			
	 10.13
	 	 Confidentiality
	  	138
			
	 10.14
	 	 Continued Effectiveness; No Novation
	  	138
			
	 10.15
	 	 USA Patriot Act
	  	139

  

 -v- 

 SCHEDULES & EXHIBITS 
  

			
	Schedule 2.1	  	List of Lenders and Revolving Credit Commitments
	Schedule 4.3	  	Governmental Approvals
	Schedule 4.4	  	Financial Condition; No Material Adverse Change
	Schedule 4.5	  	Properties
	Schedule 4.6	  	Litigation and Environmental Matters
	Schedule 4.7	  	Compliance with Laws and Agreements
	Schedule 4.9	  	Taxes
	Schedule 4.11	  	Management Structure
	Schedule 4.12	  	Organization; Capitalization; Subsidiaries
	Schedule 4.14	  	Material Indebtedness, Liens and Agreements
	Schedule 4.15	  	FCC Licenses
	Schedule 4.19	  	Labor and Employment Matters
	Schedule 5.1(e)(ii)	  	Lien Searches
	Schedule 5.1(e)(iii)	  	Accounts Subject to Control Agreements
	Schedule 7.2(b)	  	Permitted Liens
	Schedule 7.5	  	Investments
	Schedule 7.7	  	Transactions with Affiliates
	Schedule 7.8	  	Restrictive Agreements
		
	Exhibit A	  	Form of Revolving Credit Note
	Exhibit B	  	Form of Swing Loan Note
	Exhibit C	  	Form of Omnibus Confirmation Agreement
	Exhibit D-1	  	Form of Borrowing Request
	Exhibit D-2	  	Form of Interest Election Request
	Exhibit E	  	Form of Lender Joinder Agreement
	Exhibit F	  	Form of Opinion of O’Melveny & Myers LLP for Holdings Merger
	Exhibit G	  	Forms of Solvency Certificate
	Exhibit H	  	Form of Mortgage and Security Agreement
	Exhibit I	  	Form of Leasehold Mortgage
	Exhibit J-1	  	Form of Landlord Waiver and Consent
	Exhibit J-2	  	Form of Licensor Consent
	Exhibit K-1	  	Form of Opinion of O’Melveny & Myers LLP
	Exhibit K-2	  	Form of Opinion of Piper Rudnick LLP
	Exhibit K-3	  	Form of Opinion of Strasburger & Price
	Exhibit L	  	Form of Opinion of FCC Counsel
	Exhibit M	  	Form of Assignment and Acceptance
	Exhibit N	  	Form of Compliance Certificate
	Exhibit O	  	Form of Second Confirmation of Subordination Agreements
	Exhibit P	  	Form of Control Agreement
	Exhibit Q-1	  	Form of Existing Mortgage Amendment – Owned Property
	Exhibit Q-2	  	Form of Existing Mortgage Amendment – Leased Property
	Exhibit R	  	Form of Assumption Agreement
	Exhibit S	  	Form of Holdings Merger Agreement

  

 -vi- 

 AMENDED AND RESTATED CREDIT AGREEMENT 
  
 AMENDED AND RESTATED CREDIT AGREEMENT dated as of June 11, 2004 (this “Agreement”), among LBI MEDIA, INC., THE
GUARANTORS PARTY HERETO, THE LENDERS PARTY HERETO, and CREDIT SUISSE FIRST BOSTON, as Administrative Agent and Lead Arranger. This Agreement amends, restates and supersedes, in its entirety, the Amended and Restated Credit Agreement dated July 9,
2002, among the Borrower, the guarantors party thereto, the lenders party thereto, Fleet, as administrative agent, Fleet Securities, Inc., as sole lead arranger, General Electric Capital Corporation and U.S. Bank, N.A., as co-syndication agents, and
CIT Lending Services Corporation and SunTrust Bank, as co-documentation agents, as amended by that certain First Amendment to Amended and Restated Credit Agreement dated April 15, 2003, that certain Second Amendment to Amended and Restated Credit
Agreement dated October 10, 2003, and as further amended prior to the date hereof (as so amended, the “Existing Credit Agreement”), which collectively amended and restated that certain Credit Agreement dated as of March 20, 2001
among the Borrower, the guarantors party thereto, the lenders party thereto, Fleet, as administrative agent, and Union Bank of California, N.A., as syndication agent, and CIT Lending Services Corporation and General Electric Capital Corporation, as
co-documentation agents (as amended prior to July 9, 2002, the “Original Credit Agreement”). 
  
 RECITALS 
  
 WHEREAS, each of the parties to the Existing Credit Agreement desires to amend and restate the Existing Credit Agreement; 
  
 WHEREAS, it is the intention of the parties hereof that this amendment and restatement of the Existing Credit Agreement shall not constitute a refinancing
of the loans outstanding under the Existing Credit Agreement on the Closing Date, and all obligations hereunder and under the other Loan Documents shall continue to be secured by the grant to the Administrative Agent, on behalf of the Lenders, of a
Lien on the Collateral, and the Credit Parties shall execute and deliver a Omnibus Confirmation Agreement evidencing such intention. 
  
 NOW THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows: 
  
 ARTICLE 1 
  
 Definitions 
  
 1.1 Defined Terms. As used in this Agreement, the following terms have
the meanings specified below: 
  
 “Acquisition”
means any transaction, or any series of related transactions, consummated prior to or after the date hereof, by which (i) any Credit Party acquires the business of, or all or substantially all of the assets of, any firm or corporation which is not a
Credit Party, or any 

 division or station of such firm or corporation, located in a specific geographic area or areas, whether through purchase
of assets, purchase of stock, merger or otherwise or (ii) any Person that was not theretofore a Subsidiary of a Credit Party becomes a Subsidiary of a Credit Party. Notwithstanding anything herein to the contrary, no Relocation shall be deemed to be
an Acquisition. 
  
 “Additional Mortgage” has the
meaning assigned to such term in Section 6.13(b)(i). 
  
 “Additional Mortgage Policies” has the meaning assigned to such term in Section 6.13(b)(vi). 
  
 “Additional Mortgaged Property” has the meaning assigned to such term in Section 6.13(b). 
  
 “Adjusted Base Rate” means, for any day, a rate per annum
equal to the greater of (a) the Prime Rate in effect on such day, and (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%. Any change in the Adjusted Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective from and including the effective date of such change in the Prime Rate or the Federal Funds Effective Rate, respectively. 
  
 “Adjusted LIBO Rate” means, with respect to any LIBOR Borrowing for any Interest Period, an interest rate per annum equal to (a) the LIBO
Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate. 
  
 “Administrative Agent” means CSFB, in its capacity as administrative agent for the Lenders hereunder and any successors appointed pursuant to Section 9.6. 
  
 “Administrative Questionnaire” means an Administrative
Questionnaire in a form supplied by the Administrative Agent. 
  
 “Affiliate” means, with respect to a specified Person, another Person that Controls or is Controlled by or is under common Control with the Person specified. Notwithstanding the foregoing, (a) no individual shall be an
Affiliate solely by reason of his or her being a director, officer or employee of any Credit Party and (b) none of the Credit Parties shall be Affiliates of each other. 
  
 “Alta” means Alta Communications VIII, L.P., Alta-Comm VIII S by S, LLC, Alta Communications VIII-B, L.P.,
Alta VIII Associates, LLC, California State Teachers’ Retirement System, UnionBanCalequities, Inc. and BancBoston Investments Inc., and their respective successors and assigns. 
  
 “Alta Notes” means those certain amended promissory notes issued by Holdings to Alta pursuant to the
Holdings Securities Purchase Agreement, as amended by the Holdings Amendment and the Holdings Second Amendment. 
  
 “Alta Repayment” means the repayment in full of all of the Alta Notes, the cashless exercise of the Alta Warrants, and the conversion of
the Class B Common Stock issued to Alta in connection therewith into Class A Common Stock and the discharge and termination of all of the 
  

 2 

 parties’ obligations under the Holdings Securities Purchase Documents pursuant to the Termination Agreement (subject
to the limitations set forth therein). 
  
 “Alta Repayment
Date” means the date on which the Alta Repayment is consummated. 
  
 “Alta Subordination Agreement” means the Subordination and Intercreditor Agreement dated as of the Original Closing Date among Holdings, Alta and Fleet, as predecessor administrative agent, as amended
by the Holdings Amendment and the Holdings Second Amendment and confirmed by the Confirmation of Subordination Agreements and the Second Confirmation of Subordination Agreements, as amended, supplemented or otherwise modified from time to time.

  
 “Alta Warrants” means those certain amended
warrants issued by Holdings to Alta pursuant to the Holdings Securities Purchase Agreement and that certain Warrant Agreement dated as of March 20, 2001 between Holdings and Alta, as amended by the Holdings Amendment and the Holdings Second
Amendment. 
  
 “Applicable Margin” means, for any
Type of Loans (i) for the Initial Payment Period (as defined below): 
  

					
	Applicable Margin (% per annum)
			
	 Loans

	 	 Base Rate Loans

	 	 LIBOR Loans

			
	 Loans
	 	1.250%	 	2.500%

  
 and 
  
 (ii) for any Payment Period (as defined below) (or any
portion thereof), other than the Initial Payment Period, the respective rates indicated below for Loans of such Type opposite the applicable Total Leverage Ratio indicated below: 
  
 Applicable Margin (% per annum) 
  

							
	 	  	Loans

	 
	 Total Leverage Ratio

	  	 Base Rate
 Loans

	 	 	 LIBOR
 Loans

	 
	 Greater than or equal to 7.00 to 1
	  	1.750	%	 	3.000	%
	 Less than 7.00 to 1 and greater than or equal to 6.50 to 1
	  	1.500	%	 	2.750	%
	 Less than 6.50 to 1 and greater than or equal to 6.00 to 1
	  	1.250	%	 	2.500	%

  

 3 

							
	 	  	Loans

	 
	 Total Leverage Ratio

	  	 Base Rate
 Loans

	 	 	 LIBOR
 Loans

	 
	 Less than 6.00 to 1 and greater than or equal to 5.50 to 1
	  	1.000	%	 	2.250	%
	 Less than 5.50 to 1 and greater than or equal to 5.00 to 1
	  	0.750	%	 	2.000	%
	 Less than 5.00 to 1 and greater than or equal to 4.50 to 1
	  	0.500	%	 	1.750	%
	 Less than 4.50 to 1
	  	0.250	%	 	1.500	%

  
 Notwithstanding the
foregoing, “Applicable Margin” means for any Type of Loan for any Payment Period or portion thereof after the Qualifying IPO Closing Date, the respective rates indicated above for Loans during the Initial Payment Period or during any
Payment Period thereafter for Loans of such Type opposite the applicable Total Leverage Ratio indicated above (as the case may be) minus 0.25%. 
  
 For purposes hereof, a “Payment Period” means (i) initially, the period commencing on the Closing Date to and including the third
Business Day after the date of delivery of the quarterly financial statements required by Section 6.1(b) for the fiscal quarter of the Borrower ended June 30, 2004 (the “Initial Payment Period”) and (ii) thereafter, the period
commencing on the day immediately succeeding the last day of the prior Payment Period to but not including the third Business Day after the earlier of (x) the due date of the next Compliance Certificate required to be delivered by the Borrower to
the Administrative Agent pursuant to Section 6.1(c) concurrently with the delivery by the Borrower of the annual or any of the four quarterly financial statements required by Sections 6.1(a) or 6.1(b), respectively, or (y) the date of the actual
receipt by the Administrative Agent of such Compliance Certificate. The Applicable Margin shall be effective for each Payment Period whether or not such Payment Period coincides with an Interest Period for LIBOR Borrowing. 
  
 The Total Leverage Ratio for any Payment Period except the Initial Payment
Period shall be determined on the basis of the Compliance Certificate required to be delivered to the Administrative Agent pursuant to Section 6.1(c) concurrently with the delivery by the Borrower of the annual or quarterly financial statements
required by Sections 6.1(a) or 6.1(b), respectively, setting forth, among other things, a calculation of the Total Leverage Ratio as at the last day of the fiscal quarter immediately preceding such Payment Period (i.e. the Total Leverage
Ratio set forth in the Compliance Certificate delivered pursuant to Section 6.1(c) that is delivered together with the financial statements for the fiscal quarter ended June 30, 2004 shall be used to determine the Applicable Margin with respect to
the first Payment Period that follows the Initial Payment Period, the Total Leverage Ratio set forth in the Compliance Certificate that is delivered together with the financial statements for the fiscal quarter ended September 30, 2004 shall be used
to determine the Applicable Margin with respect to the second Payment Period that follows the Initial Payment Period, and so forth); provided that upon delivery by the Borrower of 
  

 4 

 the Compliance Certificate concurrently with the delivery of the annual financial statements required by Section 6.1(a),
the Applicable Margin shall be adjusted retroactively, as of the first day of the then current Payment Period, based on the calculation of the Total Leverage Ratio pursuant to such certificate and financial statements to the extent that the Total
Leverage Ratio so calculated differs from the Total Leverage Ratio calculated based on the Compliance Certificate delivered concurrently with the quarterly financial statements for the fourth fiscal quarter of the preceding fiscal year required by
Section 6.1(b). In the event of a retroactive adjustment in the determination of the Applicable Margin in favor of the Borrower, the amount of interest thereby refundable to the Borrower shall be applied on the date of such retroactive adjustment,
to prepay interest payable on the Loans on a pro rata basis, thus permitting the Borrower to deduct such amount from their next interest payment. If the retroactive adjustment is in favor of the Lenders, the amount of interest due to the
Lenders shall be paid in full to the Administrative Agent within five (5) days after written notice of such adjustment is provided to the Borrower. Notwithstanding the foregoing, the Borrower shall include a request for any downward adjustment of
the Applicable Margin with, or as part of, the Compliance Certificate concurrently with the delivery by the Borrower of the annual financial statements required by Section 6.1(a) and, in any event, the Administrative Agent and the Lenders shall not
be required to make any downward adjustment until a request of the Borrower shall have been received and unless such request is received within three months after the date of delivery of such Compliance Certificate. 
  
 “Applicable Percentage” means (a) with respect to any
Revolving Credit Lender for purposes of the definition of LC Exposure and of Section 2.4 or 2.8, the percentage of the total Revolving Credit Commitments represented by such Lender’s Revolving Credit Commitment, and (b) with respect to any
Lender in respect of any indemnity claim under Section 10.3 arising out of an action or omission of the Administrative Agent under this Agreement, the percentage of the total Commitments or, in the event the Commitments are terminated, Loans
hereunder represented by the aggregate amount of such Lender’s Commitment or, in the event the Commitments are terminated, Loans hereunder. 
  
 “Applicable Recipient” has the meaning set forth in Section 2.18. 
  
 “Approved Fund” means, with respect to any Lender that is a fund that invests in commercial loans, any
other fund that invests in commercial loans and is managed or advised by the same investment advisor as such Lender or by an Affiliate of such investment advisor. 
  
 “Assignment and Acceptance” means an assignment and acceptance entered into by a Lender and an assignee
(with the consent of any party whose consent is required by Section 10.4), and accepted by the Administrative Agent, in the form of Exhibit M. 
  
 “Assumption Agreement” means the Assumption Agreement by and between LBI Holdings I, Inc. and Liberman Broadcasting, Inc., a Delaware
corporation, substantially in the form of Exhibit R annexed hereto, to be executed in connection with the IPO, as such agreement may be amended, supplemented or otherwise modified from time to time. 
  

 5 

 “Astor Acquisition” means the acquisition on May 15, 2003 by LBCI and LBI Radio License
Corp. from the Astor Sellers of the assets of radio station KEBN-FM (formerly KMXN-FM). 
  
 “Astor Acquisition Documents” means the Asset Purchase Agreement dated as of December 19, 2002 and all related instruments, agreements and other documents entered into by any Credit Party and the
sellers party thereto in connection with the purchase of KEBN-FM (formerly KMXN-FM). 
  
 “Astor Sellers” means Aries Communications, Inc., a California corporation, and Orange Broadcasting Corp., a California corporation. 
  
 “Base Rate” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans
comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted Base Rate. 
  
 “Basic Documents” means the Loan Documents, and the documents related thereto. 
  
 “Board” means the Board of Governors of the Federal Reserve
System of the United States of America. 
  
 “Borrower” means LBI Media, Inc., a California corporation. 
  
 “Borrower’s knowledge” or any “Credit Party’s knowledge” or any similar phrase or words when used in connection with a statement, representation or warranty means to the
actual knowledge of Jose or Lenard Liberman, the Chief Financial Officer of the Borrower or such Credit Party, as applicable, or any responsible executive officer (as defined in Rule 3b-7 promulgated under the Securities Exchange Act of 1934, as
amended), of the Borrower or such Credit Party, as applicable, after reasonable good faith inquiry made to ascertain the accuracy of the statement, representation or warranty. 
  
 “Borrowing” means Loans of the same Type, made, converted or continued on the same date and, in the case of
LIBOR Loans, as to which a single Interest Period is in effect. 
  
 “Borrowing Request” means a request for a Borrowing satisfying the requirements of Section 2.3 and substantially in the form of Exhibit D-1 annexed hereto. 
  
 “Broadcast Stations” has the meaning assigned to such term
in Section 4.15(b). 
  
 “Burbank Office Property”
means that certain real property located at 1845 Empire Avenue, Burbank, California 91504. 
  
 “Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in Los Angeles, California or New York City are authorized or required by law to remain closed;
provided that, when used in connection with a LIBOR Loan, the term “Business Day” shall also exclude any day on which banks are not open for dealings in U.S. dollar deposits in the London interbank market. 
  

 6 

 “California Taxable Income” shall mean the taxable income of Holdings for any taxable
year computed pursuant to Section 23802 (or any successor provisions) of the California Revenue and Tax Code but calculated as if the taxable year of Holdings ended on the date with respect to which such taxable income calculation is made, reduced,
but not below zero, by the amount of any Suspended Losses which are treated as incurred by Holdings in, and allowed as deductions on the tax returns of Holdings’ stockholders for, such taxable year. 
  
 “Capital Expenditures” means, for any period, the sum for
the Credit Parties (determined on a consolidated basis without duplication in accordance with GAAP) of the aggregate amount of expenditures (including the aggregate amount of Capital Lease Obligations incurred during such period) made to acquire or
construct fixed assets, plant and equipment (including renewals, improvements and replacements, but excluding expenditures for repairs that do not extend the useful life of the asset) during such period computed in accordance with GAAP;
provided that such term shall not include (i) any such expenditures in connection with any replacement or repair of Property affected by a Casualty Event, (ii) any such expenditures in connection with a Relocation with the exception of cash
expenditures not subject to the reimbursement obligations of a Person other than a Credit Party, (iii) for each broadcast station received in any Voluntary Relocation, up to $4,000,000 in such expenditures but only to the extent paid from the cash
proceeds received in such Voluntary Relocation which are used to upgrade or improve such broadcast station, (iv) for each broadcast station received in any Involuntary Relocation, any such expenditures paid from the cash proceeds received in such
Involuntary Relocation which are used to upgrade or improve such broadcast station or (v) the purchase price, any broker’s fees payable and any transaction costs incurred in connection with the KNOR Acquisition or any Acquisition permitted
under the Original Credit Agreement, the Existing Credit Agreement or hereunder. 
  
 “Capital Lease Obligations” of any Person means the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal
property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP. Notwithstanding anything herein to the contrary, any obligations under the Empire Burbank Lease shall not be Capital Lease Obligations. 
  
 “Cash Equivalents” means, as at any date of determination, (i) marketable securities (a) issued or directly
and unconditionally guaranteed as to interest and principal by the United States Government, (b) issued by any agency of the United States the obligations of which are backed by the full faith and credit of the United States, in each case maturing
within one year after such date; (ii) marketable direct obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof, in each case maturing within one year after
such date and having, at the time of the acquisition thereof, the highest rating obtainable from either Standard & Poor’s (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”); (iii)
commercial paper maturing no more than one year from the date of creation thereof and having, at the time of the acquisition thereof, a rating of at least A-1 from S&P or at least P-1 from Moody’s; (iv) certificates of deposit or
bankers’ acceptances maturing within one year after such date and issued or accepted by any Lender or by any commercial bank organized under the laws of the United States of America or any state thereof or the District of 
  

 7 

 Columbia that (1) is at least “adequately capitalized” (as defined in the regulations of its primary Federal
banking regulator) and (2) has Tier 1 capital (as defined in such regulations) of not less than $100,000,000; and (v) shares of any money market mutual fund that (1) has at least 95% of its assets invested continuously in the types of investments
referred to in clauses (i) and (ii) above, (2) has net assets of not less than $500,000,000, and (3) has the highest rating obtainable from either S&P or Moody’s, or (c) other cash equivalent investments agreed to from time to time between
the Borrower and the Administrative Agent. 
  
 “Casualty
Event” means, with respect to any Property of any Person, any loss of or damage to, or any condemnation or other taking of, such Property for which such Person or any of its Subsidiaries receives insurance proceeds, or proceeds of a
condemnation award or other compensation; provided that an Involuntary Relocation shall not be a Casualty Event. 
  
 “Change in Law” means (a) the adoption of any law, rule or regulation after the Closing Date, (b) any change in any law, rule or
regulation or in the interpretation or application thereof by any Governmental Authority after the Closing Date or (c) compliance by any Lender or the Issuing Lender (or, for purposes of Section 2.15(b), by any lending office of such Lender or by
such Lender’s or the Issuing Lender’s holding company, if any) with any request, guideline, order, decree or directive (whether or not having the force of law) of any Governmental Authority or the National Association of Insurance
Commissioners made or issued after the Closing Date. 
  
 “Change of Control” means 
  
 (a) Media
Holdings shall cease to own, directly or indirectly, 100% of the Borrower’s outstanding capital stock and Total Voting Power, 
  
 (b) Holdings shall cease to own, directly or indirectly, 100% of Media Holdings’ outstanding capital stock and Total Voting Power, 
  
 (c) Jose and Lenard Liberman (together with their spouses, lineal descendants
or heirs and devisees and any trusts controlled by them and, after the Qualifying IPO Closing Date, all other Class B Permitted Transferees (as defined in the Restated Certificate of Incorporation of Holdings) but excluding Holdings) shall cease to
collectively own, directly or indirectly, more than (i) prior to the Qualifying IPO Closing Date, 50% or thereafter, 30%, of the economic interests in the outstanding equity securities of Holdings or (ii) 50% of the Total Voting Power of Holdings,

  
 (d) a majority of the seats (other than vacant seats) on the
board of directors of Holdings shall be occupied by Persons who were not (i) nominated by the board of directors of Holdings or by one or more of the stockholders described in clause (c) above nor (ii) appointed or elected by a majority of the
members of the board of directors of Holdings who are described in any of subclauses (i), (ii) or (iii) of this clause (d) nor (iii) appointed or elected by a vote of the stockholders of Holdings in which Jose or Lenard Liberman or either of their
respective spouses (or any trust controlled by any of them) voted to approve the appointment or election of such Person or in which a majority of the Total Voting Power of the stockholders described in clause (c) above voted in favor of the
appointment or election of such Person; 
  

 8 

 (e) the Borrower no longer owns and controls, directly or indirectly, 100% of the capital stock of each
of LBCI, Liberman Television Inc., Liberman Television of Houston, Inc., Liberman Broadcasting of Houston, Inc., Liberman Broadcasting of Dallas, Inc., Liberman Television of Dallas, Inc., and any License Subsidiary, unless one hundred percent
(100%) or any portion of such entity’s capital stock is transferred in accordance with the terms and conditions of this Agreement, 
  
 (f) any Holding Company or the Borrower sells, leases, conveys, transfers, exchanges or otherwise disposes of, in a single transaction or through a series
of related transactions, all of the FCC Licenses owned by such Holding Company, the Borrower and the other Credit Parties to any Person other than any of the Credit Parties; or 
  
 (g) the occurrence of any “Change of Control” as defined in any of the Senior Subordinated Note Indenture, the
Media Holdings Discount Notes Indenture, or prior to the Alta Repayment Date, the Holdings Securities Purchase Documents or the occurrence of a “Change of Control” or any term describing a substantially similar event as provided in any
documents governing any Holding Company Debt incurred in accordance with Section 7.15(a)(iv). 
  
 “Class A Common Stock” means the Class A common stock, par value $0.001 per share, of Holdings. 
  
 “Class B Common Stock” means the Class B common stock, par value $0.001 per share, of Holdings. 
  
 “Closing Date” means the date during which the Effective
Time shall occur. 
  
 “Code” means the Internal
Revenue Code of 1986, as amended from time to time. 
  
 “Collateral” means, collectively, all of the Property (including capital stock and other equity interests) in which Liens are purported to be granted pursuant to the Collateral Documents as security for all obligations of
the Credit Parties hereunder. 
  
 “Collateral
Documents” means the Security Agreement, the Pledge Agreement, the Alta Subordination Agreement, the Investor Subordination Agreement, the Mortgages, the Existing Mortgage Amendments, the Liberman Subordination Agreements, the Control
Agreements and all other agreements, instruments or documents delivered by any Credit Party or any shareholder of a Credit Party pursuant to this Agreement or any of the other Loan Documents in order to grant to the Administrative Agent, on behalf
of the Lenders, a Lien on any real, personal or mixed property of that Credit Party as security for any of the obligations of the Credit Parties hereunder. 
  
 “Commitments” means the Revolving Credit Commitments and the Swing Loan Commitments (a subcommitment of the Revolving Credit Commitment).

  
 “Commitment Fee Rate” has the meaning
specified in Section 2.12. 
  
 “Commitment Utilization
Percentage” means, for any day, the ratio of (a) the sum of (i) the principal amount of the Loans outstanding on such day plus (ii) the face amount of Letters of 
  

 9 

 Credit outstanding on such day to (b) the aggregate amount of Revolving Credit Commitments for such day, expressed as a
percentage. 
  
 “Communications Act” means the
Communications Act of 1934, as amended. 
  
 “Compliance
Certificate” means a certificate duly executed by a Financial Officer of the Borrower (required to be delivered pursuant to Section 6.1(c), 7.4(d)(ii), 7.5(a)(ix)(2) or 7.6(c)), in substantially the form of Exhibit N hereto, (i)
certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating
compliance with Section 7.10 (including, in each case if applicable, a statement of the Total Leverage Ratio for purposes of the definition of Applicable Margin and, for any Compliance Certificate delivered with the financial statements required by
Section 6.1(a), a request by the Borrower for a retroactive adjustment to the Applicable Margin), and, if such certificate is accompanying the annual financial statements required to be delivered pursuant to Section 6.1(a), commencing with the
delivery of the annual financial statements for the fiscal year ending December 31, 2004, setting forth a detailed calculation reasonably satisfactory to the Administrative Agent of the amount of Excess Cash Flow for the Credit Parties’ most
recently completed fiscal year for the purpose of Sections 7.5 and 7.6 and (iii) stating whether there has occurred since the date of the audited financial statements referred to in Section 4.4 any change in GAAP or in the application thereof which
has or could have an effect on the financial statements accompanying such certificate and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate. 
  
 “Confirmation of Pledge Agreement” means the Confirmation of
Pledge Agreement dated as of the Existing Credit Agreement Closing Date among the Administrative Agent and the Credit Parties. 
  
 “Confirmation of Subordination Agreements” means the Confirmation of Subordination Agreements dated as of the Existing Credit Agreement
Closing Date among Alta, Holdings, the Credit Parties and Fleet as predecessor administrative agent. 
  
 “Conforming Leasehold Interest” means any leasehold interest as to which the lessor has agreed in writing for the benefit of the
Administrative Agent (which writing has been delivered to the Administrative Agent), whether under terms of the applicable lease or under the terms of a Landlord Waiver and Consent, to the matters described in the “Landlord Waiver and
Consent” attached hereto as Exhibit J-1, which interest, if a subleasehold interest or sub-subleasehold interest, is not subject to any contrary restrictions contained in a superior lease or sublease. 
  
 “Control” means the possession, directly or indirectly,
through one or more intermediaries, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and
“Controlled” have meanings correlative thereto. 
  
 “Control Agreement” means, with respect to any bank account of any Credit Party except a bank account maintained with the Administrative Agent, a Control Agreement, substantially in the form of Exhibit P, or such
other form that is satisfactory to the Administrative Agent in its 
  

 10 

 reasonable discretion, executed and delivered by such Credit Party, the depository institution at which such account is
maintained and the Administrative Agent at the Original Closing Date or from time to time thereafter, as any such agreement may be amended, supplemented or otherwise modified from time to time. 
  
 “Conversion Elections” means those certain Elections to
Convert to be executed by the applicable holders of the Alta Warrants in connection with the IPO, substantially in the form delivered to the Administrative Agent. 
  
 “Credit Parties” means the Borrower and the Guarantors (except that Empire Burbank will be a Guarantor but
will not be deemed a Credit Party hereunder). 
  
 “CSFB” means Credit Suisse First Boston, a bank organized under the laws of Switzerland acting through its Cayman Islands Branch. 
  
 “Debt Service” means, for any period, the sum, for the Credit Parties (determined on a consolidated basis without duplication in
accordance with GAAP, including without duplication of previous payments), of the following: (a) all regularly scheduled cash principal payments, as such amounts may be adjusted from time to time by reason of any prepayments, of any Total Debt
(including the principal component of any payments in respect of Capital Lease Obligations, but excluding any prepayments of the Loans) made during such period plus (b) all Interest Expense for such period. 
  
 “Default” means any event or condition which constitutes an
Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default. 
  
 “Disclosed Matters” means the actions, suits and proceedings and the environmental matters disclosed in Schedule 4.6. 

 
 “Disposition” means any sale, sale-leaseback, assignment,
conveyance, exchange, long-term lease accorded sales treatment under GAAP, transfer or other disposition (including by means of a merger, consolidation, amalgamation, joint venture or other substantive combination) of any assets, business or
property (whether now owned or hereafter acquired) by any Credit Party to any Person other than a Credit Party, including any Relocation but excluding (a) the granting of Liens permitted hereunder and (b) any sale, assignment, transfer or other
disposition of (i) any property sold or disposed of in the ordinary course of business and on ordinary business terms, (ii) any property no longer used or useful in the business of the Credit Parties and (iii) any Collateral under and as defined in
the Collateral Documents pursuant to an exercise of remedies by the Administrative Agent thereunder, (c) leasing of any property in the ordinary course of business, (d) the sale of marketable securities, including “margin stock” within the
meaning of Regulation U, liquid investments and other financial instruments in connection with the ordinary course cash management of the Credit Parties, (e) forgiveness or cancellation by any Credit Party of any loan by such Credit Party to any of
its Affiliates and (f) other sale, assignment, transfer or other disposition in the ordinary course of business. 
  
 “Disposition Investment” means, with respect to any Disposition, any promissory notes or other evidences of Indebtedness or Investments
received by any Credit Party in connection with such Disposition. 
  

 11 

 “Dividend Limitation” shall mean, with respect to Holdings, the sum of: (i) the product
of the Maximum Effective California Rate times Holdings’ California Taxable Income except that the product in this clause (i) shall be zero (0) in the event Holdings does not qualify (or subsequently elects not) to be treated as an S
Corporation for California income tax purposes, or Media Holdings or the Borrower does not qualify (or subsequently elects not) to be treated as a qualified subchapter S subsidiary; plus, (ii) the product of the Maximum Federal Rate and
Holdings’ Federal Taxable Income. 
  
 “EBITDA” means, for any period of four consecutive fiscal quarters, Net Income of the Credit Parties during such period, plus (to the extent deducted in computing Net Income) (a) the sum of (i) Interest
Expense during such period (including in connection with the LBI Media Intercompany Note) and any interest expense accrued during such period pursuant to the Holdings Securities Purchase Documents, the Media Holdings Discount Notes Indenture, the
Media Holdings Discount Notes and the Holding Company Debt incurred in accordance with Section 7.15(a)(iv), (ii) depreciation and amortization expense during such period (including without limitation charges under SFAS 142 for broadcast licenses,
goodwill or other indefinite lived intangible assets), (iii) the aggregate amount paid, required to be paid or accrued (without duplication) in respect of income, franchise, real estate and other like taxes during such period, (iv) extraordinary
losses during such period, (v) other non cash charges during such period, (vi) (x) Relocation costs, expenses and other amounts set forth in clauses (ii)(A) and (B), and subclauses (a)(i), (a)(v), (a)(vi) and (a)(vii) and (b) of clause (ii)(C) of
the definition of Net Cash Payments and (y) Transaction Costs, in each case, incurred or paid during such period, (vii) for the period commencing on May 20, 2002 and ending on the date of the closing of the El Dorado Acquisitions, payments required
to be made by any of the Credit Parties to the El Dorado Sellers pursuant to the local marketing agreements in respect of the stations not in excess of $150,000 for any calendar month and for a period of not more than twelve (12) calendar months,
(viii) Extraordinary Expenses for such period, (ix) Permitted Shareholder Tax Distributions and Permitted Holdings Tax Distributions during such period, (x) any non-compete payments made in cash during such period to sellers in connection with any
Permitted Acquisition in an aggregate amount not to exceed 20% of the aggregate consideration paid or payable by the Credit Parties in connection with such Permitted Acquisition, (xi) the aggregate amount of any payments made in cash during such
period with respect to any portion of the “Incentive Bonus” which may become payable pursuant to the employment agreements of Winter Horton dated December 18, 2002, Andrew Mars dated November 15, 1998, Xavier Ortiz dated September 1, 1999,
Eduardo Leon dated December 1, 1999 and, subject to Section 6.16, Miguel Banojian that may be entered into after the Closing Date, in each case as amended from time to time (including the aggregate amount of any payments made in cash during such
period with respect to any notes issued with respect thereto), (xii) forgiveness or cancellation of the loan to Lenard Liberman described in Item 5 of Schedule 7.5 annexed hereto plus accrued interest thereon, (xiii) forgiveness or
cancellation of the loans to Jose and Lenard Liberman described in Schedule 7.5 annexed hereto (excluding Item 5) in an aggregate amount not in excess of $500,000 plus accrued interest thereon, and (xiv) for the period commencing January 1,
2003 and ending on the date of the closing of the Astor Acquisition, payments required to be made by any of the Credit Parties to the Astor Sellers pursuant to the local marketing agreement in respect of the radio station to be acquired by the
Credit Parties in such acquisition not in excess of $200,000 for any calendar month and for a period of not more than eight (8) calendar months minus (to the extent not deducted in computing Net Income) (b) the sum of (i)
extraordinary gains during such 
  

 12 

 period, and (ii) cash Program Obligations Payments actually made during such period (or, with respect to Program
Obligations Payments for which the proviso in the definition thereof is applicable, Program Obligations Payments amortized during such period) and (iii) any cash interest paid during such period in respect of the Liberman Subordinated Debt;
provided that (1) for purposes of determining EBITDA for any period during which a Disposition (other than any Relocation) is consummated, EBITDA shall be adjusted in a manner reasonably satisfactory to the Administrative Agent to give effect
to the consummation of the Disposition (other than any Relocation) on a pro-forma basis, as if the Disposition (other than any Relocation) occurred on the first day of such period; (2) for any period for which EBITDA is determined and in which
period an Acquisition permitted to be made hereunder is consummated, EBITDA shall be adjusted in a manner reasonably satisfactory to the Administrative Agent (a) to give effect to the consummation of such Acquisition on a pro-forma basis, as if such
Acquisition occurred on the first day of such period and (b) to reflect certain expense deductions in connection with such Acquisition reasonably acceptable to the Administrative Agent (except that for purposes of determining EBITDA for the fiscal
quarter in which the KMPX Acquisition or the KNOR Acquisition is consummated, EBITDA shall be determined without inclusion of the operating results of KMPX-TV or KNOR-FM, respectively, for such fiscal quarter), and (3) for purposes of determining
EBITDA for the four consecutive fiscal quarter periods ending at the end of the first, second and third full fiscal quarters ending immediately subsequent to the closing of the KMPX Acquisition or the KNOR Acquisition (for example, if the closing
date of the KMPX Acquisition is January 20, 2004, the four consecutive fiscal quarter period ending at the end of the first full fiscal quarter ending immediately subsequent to such closing date would be the four consecutive fiscal quarter period
ending on June 30, 2004), the EBITDA attributable to the station and other assets acquired in connection with the KMPX Acquisition or the KNOR Acquisition, in each case, shall be calculated as follows: for the four fiscal quarter periods ending on
each of the three consecutive full fiscal quarter periods ending immediately subsequent to such Acquisition, the EBITDA attributable to such station and other assets as of the end of the first full fiscal quarter ending immediately subsequent to
such Acquisition shall be based on the EBITDA attributable to such station and other assets for such first full fiscal quarter times 4 (if such EBITDA is greater than zero) or times 1 (if such EBITDA is less than zero), the EBITDA attributable to
such station and other assets as of the end of the second full fiscal quarter ending immediately subsequent to such Acquisition shall be based on the EBITDA attributable to such station and other assets for the two full fiscal quarters then ending
times 2 (if such EBITDA is greater than zero) or times 1 (if such EBITDA is less than zero), and the EBITDA attributable to such station and other assets as of the end of the third full fiscal quarter ending immediately subsequent to such
Acquisition shall be based on the EBITDA attributable to such station and other assets for the three full fiscal quarters then ending times 1 and 1/3 (if such EBITDA is greater than zero) or times 1 (if such EBITDA is less than zero), respectively.

  
 “Effective Time” means the time when the
conditions specified in Section 5.1 are satisfied (or waived in accordance with Section 10.2). 
  
 “El Dorado Acquisitions” means the acquisitions on October 11, 2002 and April 22, 2003, respectively, by Liberman Broadcasting of Houston, Inc. and Liberman Broadcasting of Houston License Corp. from
the El Dorado Sellers of the assets of KQQK-FM and KEYH-AM. 
  

 13 

 “El Dorado Acquisitions Documents” means (a) the AM Asset Purchase Agreement dated April
5, 2002, and (b) the FM Asset Purchase Agreement dated April 5, 2002, and all related instruments, agreements and other documents entered into by any Credit Party and any El Dorado Seller in connection with each such asset purchase agreement, in
each case, as amended, supplemented or modified prior to the date hereof. 
  
 “El Dorado Sellers” means El Dorado Communications, Inc., El Dorado 108, Inc. and KXTJ License, Inc. 
  
 “Election[s] to Purchase” means those certain Elections to Purchase to be executed by the applicable holders of the Alta Warrants in
connection with the IPO, substantially in the form delivered to the Administrative Agent. 
  
 “Eligible Assignee” means (a) any Lender, any Affiliate of any Lender and any Approved Fund of any Lender; and (b) (i) any commercial bank organized under the laws of the United States or any state
thereof; (ii) any savings and loan association or savings bank organized under the laws of the United States or any state thereof; (iii) any commercial bank organized under the laws of any other country or a political subdivision thereof;
provided that (1) such bank is acting through a branch or agency located in the United States or (2) such bank is organized under the laws of a country that is a member of the Organization for Economic Cooperation and Development or a
political subdivision of such country; and (iv) any other entity that is an “accredited investor” (as defined in Regulation D under the Securities Act of 1933, as amended) that extends credit or buys loans as one of its businesses
including insurance companies, mutual funds, financing companies and lease financing companies; provided that no Credit Party or any Affiliate of any Credit Party shall be an Eligible Assignee. 
  
 “Empire Burbank” means Empire Burbank Studios, Inc, a
California corporation and a Wholly-Owned Subsidiary of the Borrower. 
  
 “Empire Burbank Lease” means that certain Lease dated as of July 15, 1999 between Empire Burbank, as lessor, and LBCI, as lessee, relating to occupancy of the Burbank Office Property, (or a replacement lease in
substantially the same form except that the Borrower is the lessee and the term thereof is extended (which replacement lease shall be deemed to be permitted under Section 7.14)), in each case as such lease may be amended or modified in accordance
with Section 7.14. 
  
 “Empire Burbank Loan”
means a loan in the original principal amount of $3,250,000 made by City National Bank to Empire Burbank pursuant to the Empire Burbank Loan Documents and any Permitted Refinancing. 
  
 “Empire Burbank Loan Documents” means the Empire Burbank Mortgage and the other documents evidencing the
Empire Burbank Loan and described on Schedule 4.14, or any replacement documents evidencing a Permitted Refinancing, as such documents or replacement documents may be amended or modified in accordance with Section 7.14. 
  
 “Empire Burbank Mortgage” means that certain deed of trust
encumbering the Burbank Office Property, executed by Empire Burbank in favor of City National Bank securing the Empire Burbank Loan, or any replacement deed of trust evidencing a Permitted Refinancing, as 
  

 14 

 such deed of trust or replacement deed of trust may be amended or modified in accordance with Section 7.14. 

 
 “Empire Burbank Sublease” means that certain Sublease
Agreement between LBCI, as sublessor, and Empire Burbank, as sublessee, (or a replacement sublease in substantially the same form except that the Borrower is the sublessor and the term thereof is extended (which replacement sublease shall be deemed
to be permitted under Section 7.14)), in each case relating to occupancy of certain portions of the Burbank Office Property by Empire Burbank, as such sublease may be amended or modified from time to time. 
  
 “Environmental Laws” means all applicable laws, rules,
regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural
resources, the management, release or threatened release of any Hazardous Material or to health and safety matters. 
  
 “Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of any Credit Party directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any
Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed
or imposed with respect to any of the foregoing. 
  
 “Equity Rights” means, with respect to any Person, any subscriptions, options, warrants, commitments, preemptive rights or agreements of any kind (including any stockholders’ or voting trust agreements) for the
issuance or sale of, or securities convertible into, any additional shares of capital stock of any class, or partnership or other ownership interests of any type in, such Person. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time.

  
 “ERISA Affiliate” means any trade or business
(whether or not incorporated) that, together with the Borrower, is treated as a single employer within the meaning of Section 414(b), (c), (m) or (o) of the Code. Notwithstanding the foregoing, for purposes of any liability related to a
Multiemployer Plan under Title IV of ERISA, the term “ERISA Affiliate” means any trade or business that together with the Borrower is treated as a single employer within the meaning of Section 4001(b) of ERISA. 
  
 “ERISA Event” means (a) any “reportable event”, as
defined in Section 4043 of ERISA or the regulations issued thereunder with respect to any Pension Plan, (b) the existence with respect to any Pension Plan of an “accumulated funding deficiency” (as defined in Section 412 of the Code or
Section 302 of ERISA), whether or not waived, (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any Pension Plan, (d) the incurrence by the
Borrower 
  

 15 

 or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Pension
Plan, (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Pension Plan or Pension Plans or to appoint a trustee to administer any Pension Plan or (f)
the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected
to be, insolvent or in reorganization, within the meaning of Title IV of ERISA. 
  
 “Event of Default” has the meaning assigned to such term in Section 8.1. 
  
 “Excess Cash Flow” means, for each fiscal year, (a) EBITDA for such period minus (b) (to the extent not deducted in computing
EBITDA) the sum of (i) the aggregate amount of all Capital Expenditures made during such period to the extent paid in cash during such period (excluding payment of Capital Lease Obligations to the extent included in Debt Service for such period and
all Capital Expenditures made by the reinvestment of Net Cash Payments made in accordance with Section 2.11(b)), (ii) Debt Service for such period, (iii) the aggregate amount paid in cash or withheld (and not deducted in the calculation of Excess
Cash Flow in any prior fiscal year) by the Credit Parties in respect of income, real estate, franchise, and other like taxes for such period, (iv) Transaction Costs incurred during such period (other than Transaction Costs relating to the IPO), (v)
Extraordinary Expenses incurred during such period, (vi) the Net Cash Payments of Dispositions made during such period to the extent such proceeds (A) are included in EBITDA and (B) have been used to prepay the Loans or are reinvested, in each case,
pursuant to Section 2.11(b), (vii) loans or Restricted Junior Payments made during such period as permitted by Sections 7.5(a)(ix)(1) or 7.6(a), as applicable, and (viii) except to the extent reimbursed, Relocation costs, expenses and other amounts
set forth in clauses (ii)(A) and (B), and subclauses (a)(i), (a)(v), (a)(vi), (a)(vii) and (b) of clause (ii)(C) of the definition of Net Cash Payments incurred or paid during such period plus (c) the amount of any payment or prepayment
during such period of loans made pursuant to Section 7.5(a)(ix)(1). 
  
 “Exchange Act” means the United States Securities Exchange Act of 1934, as amended. 
  
 “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the Issuing Lender or any other recipient of any payment to
be made by or on account of any obligation of the Borrower hereunder, (a) income, net worth or franchise taxes imposed on (or measured by) its net income or net worth by the United States of America, or by a jurisdiction under the laws of which such
recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending office is located or in which it is taxable solely on account of some connection other than the execution, delivery or
performance of this Agreement or the receipt of income hereunder, (b) any branch profits taxes imposed by the United States of America or any similar tax imposed by any other jurisdiction in which the Borrower is located and (c) in the case of a
Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section 2.9(b)), any withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement or is
attributable to such Foreign Lender’s failure or inability to comply with Section 2.17(e), except to the extent that such Foreign Lender’s assignor (if any) was entitled, at 
  

 16 

 the time of assignment, to receive additional amounts from the Borrower pursuant to Section 2.17(a). 
  
 “Existing Credit Agreement” has the meaning assigned to such
term in the preamble hereof. 
  
 “Existing Credit
Agreement Closing Date” means July 9, 2002. 
  
 “Existing Debt” means Indebtedness described in (a) Schedule 4.14 and denoted “to be repaid on the Closing Date” and (b) Schedule 4.14 and denoted “to remain outstanding after the Closing
Date”. 
  
 “Existing Mortgage Amendment”
means, with respect to any Existing Mortgaged Property, an amendment to and assignment of the Existing Mortgage for such property, substantially in the form of Exhibit Q-1, for owned property and Exhibit Q-2 for leased property or in
such other form as may be approved by the Administrative Agent in its sole and reasonable discretion. 
  
 “Existing Mortgaged Property” has the meaning assigned to such term in Section 5.1(f). 
  
 “Existing Mortgages” means the Mortgages listed on
Schedule 4.5(c). 
  
 “Existing Title
Policies” means the title policies insuring liens of certain of the Existing Mortgages, as listed on Schedule 4.5(c). 
  
 “Existing Title Policy Endorsement” has the meaning assigned to such term in Section 5.1(f)(iv). 
  
 “Extraordinary Expenses” means those certain non-recurring,
extraordinary fees and expenses incurred by Holdings, Media Holdings, the Borrower or any of its Subsidiaries in connection with proposed radio or television acquisitions not to exceed $250,000, individually, or $500,000 in the aggregate.

  
 “FCC” means the Federal Communications
Commission or any governmental authority succeeding to any of its functions. 
  
 “FCC Licenses” means all radio, broadcast and or other licenses, permits, certificates of compliance, franchises, approvals or authorizations granted or issued by the FCC to any Credit Party. Each
reference to “Material FCC Licenses” shall be deemed to include the main station FCC License for each broadcast station but shall be deemed not to include (i) any auxiliary services licenses held by any Credit Party in connection
with such broadcast station, and (ii) any other FCC License which contributes less than 5% of the EBITDA of the Credit Parties for the immediately preceding fiscal year as stated in the Compliance Certificate required to be delivered for such fiscal
year pursuant to Section 6.1(c) or until the first Compliance Certificate is delivered hereunder, as stated in the Compliance Certificate most recently delivered pursuant to the Existing Credit Agreement. 
  

 17 

 “FCC Regulations” means the Communications Act, and all regulations and written policies
promulgated from time to time by the FCC under or in connection with or pertaining to the Communications Act. 
  
 “Federal Funds Effective Rate” means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the
rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the Administrative Agent from three Federal funds brokers of
recognized standing selected by it. 
  
 “Federal Taxable
Income” shall mean the taxable income of Holdings for any taxable year computed pursuant to Section 1363(b) (or any successor provision) of the Code but calculated as if the taxable year of Holdings ended on the date with respect to which
such taxable income calculation is made, reduced, but not below zero, by the amount of any Suspended Losses treated as incurred by Holdings in, and allowed as deductions on the tax returns of Holdings’ stockholders for, such taxable year.

  
 “Financial Officer” means the chief executive
officer, the president, the executive vice president, chief financial officer, principal accounting officer, treasurer or controller of the Borrower. 
  
 “First Priority” means, with respect to any Lien purported to be created in any Collateral pursuant to any Collateral Document, that such
Lien is the most senior Lien (other than Liens permitted pursuant to Section 7.2) to which such Collateral is subject. 
  
 “Fixed Charge Ratio” means, as at any date, the ratio of (a) the sum of (i) EBITDA for the period of four consecutive fiscal
quarters ending on or most recently ended prior to such date plus (ii) cash and Cash Equivalents held by the Credit Parties on such date in excess of $2,000,000, to (b) the sum for the Credit Parties (determined on a consolidated basis
without duplication in accordance with GAAP), of (i) all amounts included in Debt Service for such period; (ii) the aggregate amount of all Capital Expenditures made during such period to the extent paid in cash during such period (excluding payment
of Capital Lease Obligations to the extent included in Debt Service for such period), (iii) the aggregate amount paid, or required to be paid (without duplication), in cash by the Credit Parties in respect of income, franchise, real estate and other
like taxes for such period, (iv) Permitted Shareholder Tax Distributions and Permitted Holdings Tax Distributions made during such period, (v) the aggregate amount of any payments made in cash during such period with respect to any portion of the
“Incentive Bonus” which may become payable pursuant to the employment agreements of Winter Horton dated December 18, 2002, Andrew Mars dated November 15, 1998, Xavier Ortiz dated September 1, 1999, Eduardo Leon dated December 1, 1999 and,
subject to Section 6.16, Miguel Banojian that may be entered into after the Closing Date, in each case as amended from time to time (including the aggregate amount of any payments made in cash during such period with respect to any notes issued with
respect thereto), and (vi) the amount of non-compete payments made in cash during such period to sellers in connection with Permitted Acquisitions in an aggregate amount not to 
  

 18 

 exceed 20% of the aggregate consideration paid or payable by the Credit Parties in connection with such Acquisitions, to
the extent such non-compete payments are added back in the calculation of EBITDA for such period. 
  
 “Fleet” means Fleet National Bank, a national bank, in its capacity as the predecessor administrative agent and issuing lender under the
Existing Credit Agreement and/or as administrative agent and issuing lender under the Original Credit Agreement. 
  
 “Flood Hazard Property” means a Mortgaged Property located in an area designated by the Federal Emergency Management Agency as having
special flood or mud slide hazards. 
  
 “Foreign
Lender” means any Lender that is organized under the laws of a jurisdiction other than that in which the Borrower is located. For purposes of this definition, the United States of America, each State thereof and the District of Columbia
shall be deemed to constitute a single jurisdiction. 
  
 “GAAP” means generally accepted accounting principles in the United States of America. 
  
 “Governmental Authority” means the government of the United States of America, any other nation or any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government and the National Association of Insurance Commissioners. 
  
 “Guarantee” means a guarantee, an endorsement, a contingent agreement to purchase or to furnish funds for the payment or maintenance of, or otherwise to be or become contingently liable under or with respect to, the
Indebtedness, other obligations, net worth, working capital or earnings of any Person, or a guarantee of the payment of dividends or other distributions upon the stock or equity interests of any Person, or an agreement to purchase, sell or lease (as
lessee or lessor) property, products, materials, supplies or services primarily for the purpose of enabling a debtor to make payment of such debtor’s obligations or an agreement to assure a creditor against loss, and including causing a bank or
other financial institution to issue a letter of credit or other similar instrument for the benefit of another Person, but excluding endorsements for collection or deposit in the ordinary course of business. The amount of any Guarantee shall be
deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such
Person is required to perform thereunder). The terms “Guarantee” and “Guaranteed” used as a verb shall have a correlative meaning. 
  
 “Guaranteed Obligations” has the meaning assigned to such term in Section 3.1. 
  
 “Guarantors” means all Subsidiaries of the Borrower.

  
 “Hazardous Materials” means all explosive or
radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, 
  

 19 

 infectious or medical wastes and all other substances or wastes of any nature in each case regulated or subject to
regulation pursuant to any Environmental Law. 
  
 “Hazardous Materials Indemnity Agreement” means that certain Hazardous Materials Indemnity Agreement dated as of the Original Closing Date among Fleet as predecessor administrative agent and the Credit Parties, as confirmed
and amended by the Amendment and Confirmation of Hazardous Materials Indemnity Agreement dated as of the Existing Credit Agreement Closing Date and the Omnibus Confirmation Agreement, as such agreement may be further amended, supplemented or
otherwise modified from time to time. 
  
 “Hedging
Agreement” means any interest rate protection agreement, foreign currency exchange agreement, commodity price protection agreement or other interest or currency exchange rate or commodity price hedging arrangement. 
  
 “Holding Company” means each of (i) Holdings, (ii) Media
Holdings, and (iii) any other holding company formed after the Closing Date which directly or indirectly owns all the equity interest of the Borrower and all of whose equity interests is directly or indirectly owned by Holdings. 
  
 “Holding Company Debt” means any Indebtedness of Holdings in
respect of the Holdings Securities Purchase Documents and any Indebtedness of Media Holdings in respect of the Media Holdings Discount Notes Indenture and any other Indebtedness of any Holding Company incurred in compliance with Section 7.15(a)(iv).

  
 “Holdings” means, prior to the effective time
of the Holdings Merger, LBI Holdings I, Inc., a California corporation and the sole shareholder of Media Holdings, and thereafter Liberman Broadcasting, Inc, a Delaware corporation, and the sole shareholder of Media Holdings immediately after the
Holdings Merger. 
  
 “Holdings Amendment” means
the First Amendment to Securities Purchase Agreement, Warrant Agreement and Subordination and Intercreditor Agreements dated as of the Existing Credit Agreement Closing Date among Holdings, Alta, Fleet as predecessor administrative agent and the
other parties thereto. 
  
 “Holdings Merger”
means the merger of LBI Holdings I, Inc, a California Corporation, with and into Liberman Broadcasting, Inc., a Delaware corporation, as the surviving corporation. 
  
 “Holdings Merger Agreement” means that certain Agreement and Plan of Merger between Liberman Broadcasting
Inc., a Delaware corporation, and LBI Holdings I, Inc. to be executed and delivered with respect to the Holdings Merger, substantially in the form of Exhibit S annexed hereto. 
  
 “Holdings Second Amendment” means the Second Amendment to Securities Purchase Agreement, Warrant Agreement
and Subordination and Intercreditor Agreement dated as of October 10, 2003 among Holdings, Alta and Fleet as predecessor administrative agent. 
  
 “Holdings Securities Purchase Agreement” means the Securities Purchase Agreement dated as of the Original Closing Date among the
purchasers named therein and Holdings as 
  

 20 

 amended by the Holdings Amendment and the Holdings Second Amendment, and as further amended, supplemented or modified in
accordance with the restrictions of Section 7.15, pursuant to which Holdings issued to Alta the Alta Notes and the Alta Warrants. 
  
 “Holdings Securities Purchase Documents” means (a) the Holdings Securities Purchase Agreement, (b) the Alta Notes, (c) the Alta Warrants
and (d) all related instruments, agreements and other documents entered into by Holdings and Alta in connection therewith (including to the extent executed and delivered the Irrevocable Instructions, the Election[s] to Purchase, the Conversion
Election, the Assumption Agreement and the Termination Agreement), in each case, as amended by the Holdings Amendment and the Holdings Second Amendment and as further amended, supplemented or modified in accordance with the restrictions of Section
7.15. 
  
 “Indebtedness” means, for any Person,
without duplication: (a) obligations created, issued or incurred by such Person for borrowed money (whether by loan, advance, the issuance and sale of debt securities or the sale of Property to another Person subject to an understanding or
agreement, contingent or otherwise, to repurchase such Property from such Person); (b) obligations of such Person to pay the deferred purchase or acquisition price of Property or services, other than trade accounts payable (other than for borrowed
money) arising, and accrued expenses incurred, in the ordinary course of business so long as such trade accounts are payable within 180 days after the date of the respective goods are delivered or the respective services are rendered or otherwise
are payable in accordance with customary practices; (c) Capital Lease Obligations of such Person; (d) obligations of such Person in respect of letters of credit or similar instruments issued or accepted by banks and other financial institutions for
the account of such Person; (e) Indebtedness of others secured by a Lien on the Property of such Person, whether or not the respective indebtedness so secured has been assumed by such Person; and (f) Indebtedness of others Guaranteed by such Person.
The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest
in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor. Notwithstanding anything herein to the contrary, (x) the obligations of any Credit Party to pay
Relocation Profits (including any Relocation Tax Benefits (as defined in the Shop At Home Acquisition Documents)) to the Shop At Home Sellers under the Shop At Home Acquisition Documents shall not be Indebtedness until such time as such obligations
are overdue and payable and not being contested in good faith or represented by a separate instrument, (y) any obligations under the Empire Burbank Lease shall not be Indebtedness and (z) any obligations with respect to non-compete payments in
connection with any Permitted Acquisition shall not constitute Indebtedness so long as (i) the aggregate amount of all non-compete payments with respect to such Permitted Acquisition do not exceed 20% of the aggregate consideration paid or payable
in connection with such Permitted Acquisition and (ii) such non-compete payments do not have an interest or similar component. 
  
 “Indemnified Taxes” means all Taxes other than (a) Excluded Taxes and Other Taxes and (b) amounts constituting penalties or interest
imposed with respect to Excluded Taxes or Other Taxes. 
  

 21 

 “Interest Coverage Ratio” means as at any date, the ratio of (a) EBITDA for the
period of four consecutive quarters ending on or most recently ended prior to such date, to (b) Interest Expense for such period. 
  
 “Interest Election Request” means a request by the Borrower to convert or continue a Borrowing in accordance with Section 2.6
substantially in the form of Exhibit D-2 annexed hereto. 
  
 “Interest Expense” means, for any period, the sum, for the Credit Parties (determined on a consolidated basis without duplication in accordance with GAAP), of the following: (a) interest in respect of Total Debt accrued
during such period (whether or not actually paid during such period) plus (b) the net amounts payable (or minus the net amounts receivable) under Hedging Agreements accrued during such period (whether or not actually paid or received
during such period), with fees and costs attributable to such period being calculated assuming such fees and costs are amortized equally over the term of such Hedging Agreement, but excluding (i) reimbursement of legal fees and other similar
transaction costs of the Transactions and (ii) any non-cash amortization of fees and expenses of the Transactions plus (c) all letter of credit fees and expenses incurred after the Effective Time plus (d) any payments in respect of
liquidated damages paid in cash during such period pursuant to any registration rights agreement entered into in connection with any Indebtedness; provided that (i) interest in respect of Indebtedness which is not paid in cash but which is
instead “paid-in-kind” through the issuance of additional notes or other instruments and (ii) any premium paid in connection with the redemptions described in clauses (a), (e) and (g) of the definition of Qualifying IPO Funding
Transactions, in each case, shall not be included in “Interest Expense.” 
  
 “Interest Payment Date” means (a) with respect to any Base Rate Loan, each Quarterly Date and (b) with respect to any LIBOR Loan, the last Business Day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a LIBOR Borrowing with an Interest Period of more than three months’ duration, each Business Day prior to the last day of such Interest Period that would have been the last day of the
Interest Period for such LIBOR Loan had successive three month Interest Periods been applicable to such LIBOR Loan. 
  
 “Interest Period” means with respect to any LIBOR Borrowing, the period commencing on the date of such Borrowing and ending on the
numerically corresponding day in the calendar month that is one, two, three or six months (or, with the consent of the Administrative Agent and provided such periods are available from all Lenders, nine or twelve months) thereafter, as the Borrower
may elect; provided, that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next
calendar month, in which case such Interest Period shall end on the next preceding Business Day and (ii) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day
in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and
thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing. Notwithstanding the foregoing, 
  

 22 

 (x) if any Interest Period for any Revolving Credit Borrowing would otherwise end after
the Revolving Credit Maturity Date, such Interest Period shall end on the Revolving Credit Maturity Date, and 
  
 (y) notwithstanding the foregoing clause (x), no Interest Period shall have a duration of less than one month and, if the Interest Period
for any LIBOR Loan would otherwise be a shorter period, such Loan shall not be available hereunder as a LIBOR Loan for such period. 
  
 “Investment” means, for any Person: (a) the acquisition (whether for cash, Property, services or securities or otherwise) of capital
stock, bonds, notes, debentures, partnership or other ownership interests or other securities of any other Person or any agreement to make any such acquisition (including any “short sale” or any sale of any securities at a time when such
securities are not owned by the Person entering into such short sale) or (b) the making of any deposit with, or advance, loan or other extension of credit to, any other Person (including the purchase of Property from another Person subject to an
understanding or agreement, contingent or otherwise, to resell such Property to such Person, but excluding any such advance, loan or extension of credit having a term not exceeding 180 days representing the purchase price of goods or services sold
by such Person in the ordinary course of business or otherwise are payable in accordance with customary practices). Notwithstanding the foregoing, Capital Expenditures, Acquisitions and Relocations (other than promissory notes or debt or equity
securities acquired in connection with any Relocation) shall not be deemed “Investments” for purposes hereof. 
  
 “Investor Subordination Agreement” means the Investor Subordination Agreement dated as of the Original Closing Date between Alta and
Fleet as predecessor administrative agent as amended by the Holdings Amendment and as confirmed by the Confirmation of Subordination Agreements and the Second Confirmation of Subordination Agreements and as such agreement may hereafter be further
amended, supplemented or otherwise modified from time to time. 
  
 “Involuntary Relocation” means with respect to any television Broadcast Station, any Relocation described in clause (2) of the definition of the term Relocation. Without limiting the generality of the foregoing, the term
Involuntary Relocation shall include any “Specified Involuntary Relocation” as defined in the Shop At Home Acquisition Documents as in effect on March 20, 2001. 
  
 “IP Collateral” means, collectively, any Collateral which is intellectual property of a Credit Party.

  
 “IPO” means the initial public offering of
the Class A Common Stock pursuant to the Registration Statement. 
  
 “IPO Proceeds” means the proceeds received by Holdings in connection with the consummation of a Qualifying IPO minus any underwriting discount. 
  
 “Irrevocable Instructions” means those certain Irrevocable Instruction and Agreements by and between LBI
Holdings I, Inc., Liberman Broadcasting, Inc., a Delaware corporation, and the applicable holders of the Alta Warrants to be executed in connection with the IPO, as such 
  

 23 

 agreements may be amended, supplemented or otherwise modified from time to time, substantially in the form delivered to
the Administrative Agent. 
  
 “Issuing Lender”
means CSFB, in its capacity as an issuer of Letters of Credit hereunder. 
  
 “KMPX Acquisition” means the acquisition on or about January 12, 2004 by certain Credit Parties of the assets of television station KMPX-TV, Decatur, Texas. 
  
 “KMPX Acquisition Documents” means the asset purchase
agreement and all related instruments, agreements and other documents entered into by any Credit Party and the sellers party thereto in connection with the purchase of KMPX-TV. 
  
 “KNOR Acquisition” means the acquisition by Liberman Broadcasting of Dallas, Inc. and Liberman Broadcasting
of Dallas License Corp. from the KNOR Sellers of the assets of station KNOR-FM (93.7 FM, Krum, Texas) for cash consideration not in excess of $15,500,000. 
  
 “KNOR Acquisition Documents” means the Asset Purchase Agreement dated March 18, 2004, entered into by any Credit Party and the KNOR
Sellers and all related instruments, agreements, and other documents in connection with the KNOR Acquisition, as amended, supplemented or otherwise modified from time to time. 
  
 “KNOR Sellers” means A.M. & P.M. Broadcasters, LLC. 
  
 “Landlord Waiver and Consent” means, with respect to any
Leasehold Property, a letter, certificate or other instrument in writing from the lessor under the related lease, in substantially the form of Exhibit J-1 or in such other form reasonably approved by the Administrative Agent. 
  
 “LBCI” means Liberman Broadcasting, Inc., a California
corporation, which, subject to the delivery of the notices required to be delivered under the Loan Documents, will change its name to Liberman Broadcasting of California, Inc. on or about the Qualifying IPO Closing Date. 
  
 “LBI Media Intercompany Note” means that certain Promissory
Note that may be issued on the Qualifying IPO Closing Date by the Borrower to the order of Media Holdings in an aggregate principal amount equal to the amount necessary to complete the redemption described in clause (g) of the definition of
Qualifying IPO Funding Transactions, substantially in the form delivered to the Administrative Agent, as such promissory note may be amended, supplemented or otherwise modified from time to time in accordance with Section 7.13. 
  
 “LC Disbursement” means a payment made by the Issuing Lender
pursuant to a Letter of Credit. 
  
 “LC Exposure”
means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such
time. The LC Exposure of any Revolving Credit Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time. 
  
 “Lead Arranger” means CSFB, in its capacity as lead arranger hereunder. 
  

 24 

 “Leasehold Property” means any leasehold interest of any Credit Party as lessee under
any lease of real property, other than any such leasehold interest not material to the business and operations of the Credit Parties as reasonably designated from time to time by Administrative Agent, as not being required to be included in the
Collateral. 
  
 “Lender Joinder Agreement” means
the Lender Joinder Agreement attached hereto as Exhibit E pursuant to which a New Lender shall become a party to this Agreement. 
  
 “Lenders” means the Persons listed on Part II of Schedule 2.1 (including the Issuing Lender and the Swing Loan Lender) and any
other Person that shall have become a party hereto pursuant to (a) an Assignment and Acceptance, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Acceptance or (b) a Lender Joinder Agreement. 
  
 “Letter of Credit” means any letter of credit issued on a
standby basis or in support of trade obligations of any Credit Party pursuant to this Agreement. 
  
 “Liberman Subordinated Debt” means the Indebtedness incurred pursuant to Section 7.1(f). 
  
 “Liberman Subordination Agreements” means the subordination
agreements, if any, entered into pursuant to Section 7.1(f), as such agreements may be amended or modified in accordance with the terms hereof; and which agreements shall in form and substance reasonably satisfactory to the Administrative Agent;
provided that any such agreements that are substantially the same as those certain Liberman Subordination Agreements dated as of the Original Closing Date among the Borrower, Fleet and each of Jose and Lenard Liberman shall be deemed to be
satisfactory to the Administrative Agent. 
  
 “LIBOR” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO Rate. 
  
 “LIBO Rate” means, with respect to any LIBOR Borrowing for
any Interest Period, the rate per annum determined by the Administrative Agent at approximately 11:00 a.m. (London time) on the date that is two Business Days prior to the beginning of the relevant Interest Period by reference to the British
Bankers’ Association Interest Settlement Rates for deposits in Dollars (as set forth by the Bloomberg Information Service or any successor thereto or any other service selected by the Administrative Agent which has been nominated by the British
Bankers’ Association as an authorized information vendor for the purpose of displaying such rates) for a period equal to such Interest Period; provided that, to the extent that an interest rate is not ascertainable pursuant to the foregoing
provisions of this definition, the “LIBOR” shall be the interest rate per annum determined by the Administrative Agent to be the average of the rates per annum at which deposits in Dollars are offered for such relevant Interest Period to
major banks in the London interbank market in London, England by the Administrative Agent at approximately 11:00 a.m. (London time) on the date that is two Business Days prior to the beginning of such Interest Period. 
  
 “License Subsidiary” means any Wholly-Owned Subsidiary of
the Borrower (or of a Subsidiary of the Borrower) formed solely for the purpose of holding FCC Licenses. 
  

 25 

 “Licensor Consent” means, with respect to any Material Property License, a letter,
certificate or other instrument in writing from the lessor under the related lease, in substantially the form of Exhibit J-2 or in such other form reasonably approved by the Administrative Agent. 
  
 “Lien” means, with respect to any asset, (a) any mortgage,
deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (other than an
operating lease) (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to
such securities. 
  
 “Loan Documents” means this
Agreement, any promissory notes evidencing Revolving Credit Loans and the Swing Loans hereunder, the Collateral Documents and any other instruments or documents delivered or to be delivered from time to time pursuant to this Agreement, as the same
may be supplemented and amended from time to time in accordance with their respective terms. 
  
 “Loans” means the Revolving Credit Loans and the Swing Loans. 
  
 “Material Adverse Effect” means a material adverse effect on (a) the business, assets, operations or financial condition of the Credit
Parties taken as a whole, (b) the ability of any Credit Party to perform any of its respective material obligations under this Agreement or the other Loan Documents or (c) the material rights of or material benefits available to the Lenders under
this Agreement and the other Loan Documents. 
  
 “Material
Indebtedness” means (a) the Senior Subordinated Notes and (b)(i) Indebtedness (other than the Loans or Letters of Credit or the Empire Burbank Loan), or (ii) obligations in respect of one or more Hedging Agreements, of any one or more of
the Credit Parties in each case of clause (i) and clause (ii) in an aggregate principal amount exceeding $10,000,000. For purposes of determining Material Indebtedness, the “principal amount” of the obligations of any Person in respect of
any Hedging Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that such Person would be required to pay if such Hedging Agreement were terminated at such time. 
  
 “Material Leasehold Property” means a Leasehold Property
reasonably determined by the Administrative Agent in good faith consultation with the Borrower to be of material value as Collateral or of material importance to the operations of the Credit Parties, taken as a whole. 
  
 “Material Property License” means a license to use real or
mixed property (excluding FCC Licenses) reasonably determined by the Administrative Agent in good faith consultation with the Borrower to be of material value as Collateral or of material importance to the operations of the Credit Parties, taken as
a whole. 
  
 “Maximum Effective California Rate”
shall mean the product of: (i) the maximum California personal income tax rate imposed on individuals pursuant to Section 17041(a) and (c) (or any successor provisions) of the California Revenue and Tax Code; times (ii) the difference between
one (1) and the Maximum Federal Rate expressed as a decimal. 
  

 26 

 “Maximum Federal Rate” shall mean the maximum Federal income tax rate imposed on
individuals pursuant to Section 1(a)-(d) (or any successor provisions) of the Code, as adjusted pursuant to Section 15 (or any successor provision) of the Code, if applicable. 
  
 “Media Holdings” means LBI Media Holdings, Inc, a Delaware corporation, which is the sole shareholder of
the Borrower and a Wholly-Owned Subsidiary of Holdings. 
  
 “Media Holdings Discount Notes” means Media Holdings’ unsecured 11% Senior Discount Notes due 2013, including any Additional Notes and Exchange Notes (as each such term is defined in the Media Holdings Discount Notes
Indenture), in each case, as amended, supplemented or otherwise modified in accordance with the restrictions of Section 7.15, and as issued pursuant to the Media Holdings Discount Notes Indenture with aggregate gross cash proceeds not in excess of
the sum of (a) $50,000,000 (excluding the amounts referred to in clause (b) of this definition) plus (b) the amount of any increase in the outstanding principal amount of such notes as a consequence of such notes being issued at a discount
(i. e. accreted value). 
  
 “Media Holdings Discount Notes
Indenture” means the Indenture dated as of October 10, 2003 between Media Holdings and U.S. Bank, N.A., as trustee, pursuant to which the Media Holdings Discount Notes were issued, as amended, supplemented or otherwise modified in
accordance with the restrictions of Section 7.15. 
  
 “Mortgage” means (i) a security instrument (whether designated as a deed of trust or a mortgage, leasehold mortgage, assignment of leases and rents or by any similar title) executed and delivered by any Credit Party in
substantially the form of Exhibits H and I or in such other form as may be approved by the Administrative Agent in its sole and reasonable discretion, in each case with such changes thereto as may be recommended by Administrative Agent’s
local counsel based on local laws or customary local practices, (ii) or at Administrative Agent’s option, in the case of an Additional Mortgaged Property, an amendment to an existing Mortgage, in form satisfactory to Administrative Agent,
adding such Additional Mortgaged Property to the Real Property Assets encumbered by such existing Mortgage, in either case as such security instrument or amendment may be amended, supplemented or otherwise modified from time to time.
“Mortgages” means all such instruments, including the Existing Mortgages as amended by the applicable Existing Mortgage Amendments and any Additional Mortgages, collectively. 
  
 “Mortgaged Property” means the Existing Mortgaged Property
or an Additional Mortgaged Property. 
  
 “Multiemployer
Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA. 
  
 “Net Cash Payments” means, 
  
 (i) with respect to any Casualty Event, the aggregate amount of cash proceeds of insurance, cash condemnation awards and other cash compensation received by the Credit Parties in respect of such Casualty Event net of
(A) legal, title, transfer and recording tax expenses, commissions, and fees and expenses directly related to such casualty event (including legal, accounting, brokerage, outside consultant and advisor, advertising and closing costs) incurred by the
Credit Parties in connection therewith and 
  

 27 

 (B) contractually required repayments of Indebtedness to the extent secured by a Lien on such property,
(C) any Federal, state and local income, transfer or other taxes paid or estimated to be payable by Holdings, Media Holdings or any of the Credit Parties in respect of such Casualty Event and (D) any Permitted Shareholder Tax Distributions and
Permitted Holdings Tax Distributions relating to taxes paid or estimated to be payable as a result of such Casualty Event; and 
  
 (ii) with respect to any Disposition, the aggregate amount of all cash payments received by any of the Credit Parties in connection with
such Disposition directly or indirectly, whether at the time of such Disposition or after such Disposition under deferred payment arrangements or Investments entered into or received in connection with such Disposition (including Disposition
Investments); provided that 
  
 (A) Net
Cash Payments shall be net of (I) the amount of any legal, title, transfer and recording tax expenses, commissions and other fees and expenses (including legal, accounting, brokerage, outside consultant and advisor, advertising and closing costs)
paid or payable by Holdings, Media Holdings or any of the Credit Parties in connection with such Disposition and (II) any Federal, state and local income, transfer or other taxes paid or reasonably estimated to be payable by any of the Credit
Parties as a result of such Disposition, but only to the extent that such estimated taxes are in fact paid to the relevant Federal, state or local governmental authority within twelve months after the end of the calendar year in which the date of
such Disposition occurs and (III) to the extent not included in the foregoing, any Permitted Holdings Tax Distributions and Permitted Shareholder Tax Distributions related to taxes paid or estimated to be payable as a result of such Disposition; and

  
 (B) Net Cash Payments shall be net of any
repayments by any of the Credit Parties of Indebtedness to the extent that (I) such Indebtedness is secured by a Lien on the property that is the subject of such Disposition and (II) the transferee of (or holder of a Lien on) such property requires
that such Indebtedness be repaid as a condition to the purchase of such property. 
  
 (C) In addition to but without duplicating any amounts required to be deducted from Net Cash Payments under clauses (A) and (B) above, Net
Cash Payments in connection with any Disposition involving a Relocation shall be net of (a) all reasonable costs (as determined by Borrower (or its successor or assign) in its reasonable discretion) directly related to such Relocation including,
without limitation, (i) transaction expenses (including professional advisor’s or broker’s fees and costs and financing and related fees, commissions and expenses, including lender waiver fees), (ii) engineering, construction, equipment
and moving costs, (iii) marketing costs, (iv) the estimated aggregate amount of all obligations of any Credit Party (or its successor or its assign) after such Relocation under leases with respect to which it is the lessee immediately prior to such
Relocation, (v) any penalties or liabilities incurred (or estimated to be incurred) by any Credit Party (or its success or assign) under contracts which cannot be terminated by such Credit Party (or its successor or assign) prior to such 

 

 28 

 Relocation but which cannot be performed or are no longer necessary (in the sole but reasonable
discretion of the Borrower (or its successor or assign)) by any Credit Party (or its successor or assign) following such Relocation, (vi) costs incurred in seeking governmental consents and permits required as part of such Relocation and (vii) costs
incurred in seeking FCC consent to move such replaced station’s digital operations to the site of such replacement station’s analog operations (including all expenses of a type set forth in other clauses of this definition) and (b) any
Relocation Profits (as defined in the Shop At Home Acquisition Documents), including any Relocation Tax Benefits (as defined in the Shop At Home Acquisition Documents), that are paid or payable to the Shop At Home Sellers or their assignees pursuant
to the terms of the Shop At Home Acquisition Documents. Any estimated amounts under this clause (C) shall be based on good faith estimates of the Borrower on the date of the consummation of any Relocation which were reasonable when made but such
estimates shall be subject to adjustment within 90 days thereafter; 
  
 “Net Income” means net income of the Credit Parties on a consolidated basis determined in accordance with GAAP. 
  
 “New Lender” has the meaning assigned to such term in Section 2.1(b)(ii). 
  
 “Omnibus Confirmation Agreement” means the Omnibus Confirmation Agreement dated as of the date hereof among
the Administrative Agent and the Credit Parties, substantially in the form of Exhibit C, amending and confirming the Credit Parties’ obligations under the Pledge Agreement, the Security Agreement, the Hazardous Materials Indemnity
Agreement and any related agreements, as the same may be amended, supplemented or otherwise modified from time to time. 
  
 “Original Closing Date” means March 20, 2001. 
  
 “Original Credit Agreement” has the meaning assigned to such term in the preamble hereof. 
  
 “Other Taxes” means any and all present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement and the other Loan Documents,
provided that there shall be excluded from “Other Taxes” all Excluded Taxes. 
  
 “Participant” has the meaning assigned to such term in Section 10.4(f). 
  
 “Pension Plan” means any Plan that is a defined benefit pension plan subject to the provisions of Title IV of ERISA or Section 412 of the
Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

  
 “Permitted Acquisition” has the meaning set
forth in Section 7.4. 
  

 29 

 “Permitted Dividend Amount” shall mean, for any taxable period, the amount by which the
Dividend Limitation for the taxable year exceeds the aggregate Permitted Shareholder Tax Distributions paid by the Borrower for such year pursuant to Section 7.5(a)(ix)(1) or 7.6(a) hereof, including distributions paid or loans made by the Borrower
within 105 days after the end of the taxable year for which a distribution is paid or loan is made; provided, that: 
  
 (a) if, at the end of any taxable year of the Borrower, the Dividend Limitation for such year exceeds the aggregate Permitted Shareholder Tax
Distributions paid by the Borrower for such year pursuant to Section 7.5(a)(ix)(1) or 7.6(a) hereof, such excess shall be ignored for purposes of computing the Permitted Dividend Amount for any subsequent period; 
  
 (b) if, at the end of any taxable year of the Borrower, the aggregate
Permitted Shareholder Tax Distributions paid by the Borrower for such year pursuant to Section 7.5(a)(ix)(1) or Section 7.6(a) hereof exceed the Dividend Limitation, the Permitted Dividend Amount shall be zero (0) and such excess shall be included
in the calculation of the aggregate Permitted Shareholder Tax Distributions paid by the Borrower for the following taxable year(s); and 
  
 (c) if Holdings’ S Corporation election made pursuant to Code Section 1362 (or any successor provision) shall be determined to be invalid, or is
revoked or terminated, or the QSSS Election shall cease to be in effect for the Borrower, the Permitted Dividend Amount for the Borrower shall be zero (0) from and after the date of such invalidity, revocation, or termination. 
  
 “Permitted Holdings Tax Distributions” means cash
distributions and/or loans (to be computed by the Tax Accountant) from the Borrower to Media Holdings or Holdings and/or from Media Holdings to Holdings, in respect of any taxable year to permit Holdings to pay its estimated and final state income
tax liabilities which are attributable to the taxable income of Media Holdings and/or the Borrower for such taxable year calculated as though Media Holdings and the Borrower were S Corporations. If in any year Holdings or Media Holdings required to
pay additional taxes with respect to a prior year’s tax return which are attributable to the taxable income of Media Holdings and/or the Borrower calculated as though Media Holdings and the Borrower were S Corporations (whether because of an
audit by a taxing authority, an amended return the filing of which is required in the reasonable judgment of Holdings, Media Holdings or otherwise), the amount of Permitted Holdings Tax Distributions which may be paid or loaned in such year shall be
increased by the amount of such additional taxes. 
  
 “Permitted Investments” means: 
  
 (a)
direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the
United States of America), in each case maturing within one year from the date of acquisition thereof; 
  
 (b) investments in commercial paper maturing within 270 days from the date of acquisition thereof and having, at such date of acquisition, the highest
credit rating obtainable from Standard and Poor’s Ratings Service or from Moody’s Investors Service, Inc.; 
  

 30 

 (c) investments in certificates of deposit, banker’s acceptances and time deposits maturing within
180 days from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States of America or any
State thereof which has a combined capital and surplus and undivided profits of not less than $250,000,000; 
  
 (d) fully collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (a) above and entered into with a
financial institution satisfying the criteria described in clause (c) above; 
  
 (e) investments in money market mutual funds that are rated AAA by Standard & Poor’s Rating Service; and 
  
 (f) Cash Equivalents. 
  
 “Permitted Liens” has the meaning set forth in Section 7.2. 
  
 “Permitted Lines of Business” means the television and radio broadcast business, television and radio
program production, rental of television, radio and related facilities and properties, outdoor advertising, the leasing or licensing of property or tower space, and general business services related to any of the foregoing and any business incident
thereto. 
  
 “Permitted Refinancing” means a
refinancing of the Empire Burbank Loan (other than with the Loans); provided that (i) the terms of the Empire Burbank Loan Documents evidencing such refinancing shall be substantially similar to the terms of the Empire Burbank Loan Documents
existing on March 20, 2001, with such changes as do not materially adversely affect the Administrative Agent or the Lenders (it being understood that (a) no change to those provisions of the Empire Burbank Loan Documents referred to in Section
7.14(a)(i) shall be permitted without the prior written consent of the Administrative Agent and (b) replacement of the lessee under the Empire Burbank Lease of LBCI with the Borrower, replacement of the sublessor under the Empire Burbank Sublease of
LBCI with the Borrower and lengthening the term of either shall not be considered to materially adversely affect the Administrative Agent or any Lender) or with such other terms as shall be approved by the prior written consent of the Administrative
Agent; provided that the aggregate principal amount of the Empire Burbank Loan shall not exceed $3,250,000, (ii) no additional property shall be encumbered by the Empire Burbank Mortgage executed in connection with such refinancing and (iii) prior
to consummation of such refinancing, the Borrower shall deliver to the Administrative Agent copies of all loan documents relating thereto, certified by the Borrower to be true and correct copies thereof and to be all loan documents executed in
connection with such refinancing. 
  
 “Permitted
Shareholder Tax Distributions” means cash distributions and/or loans made by the Borrower to Media Holdings, Holdings or the shareholders of Holdings and/or by Media Holdings to Holdings or such shareholders to permit the shareholders of
Holdings to pay their estimated and final federal and state income tax liabilities attributable to the income of Media Holdings and/or the Borrower calculated as though Media Holdings and/or the Borrower were an S Corporation. Permitted Shareholder
Tax Distributions may be made not more frequently than quarterly with respect to each period for which an installment of estimated tax would be required 
  

 31 

 to be paid by the shareholders of Holdings, provided, however, that the amount of such distributions or loans
shall not exceed the Permitted Dividend Amount. For purposes of computing the amount of aggregate Permitted Shareholder Tax Distributions for any taxable year, amounts paid in such taxable year by Media Holdings and/or the Borrower to the State of
California on behalf of nonresident shareholders as estimated taxes or as withholding taxes pursuant to the California Revenue and Taxation Code shall be treated as Permitted Shareholder Tax Distributions. If nonresident shareholders recontribute to
Media Holdings and/or the Borrower any such amounts paid on their behalf, however, the amounts contributed shall be subtracted from the amount of aggregate Permitted Shareholder Tax Distributions for the taxable year in which the contributions are
made. If in any year Holdings’ shareholders are required to pay additional taxes with respect to a prior year’s tax return which are attributable to the taxable income of Media Holdings and/or the Borrower calculated as though Media
Holdings and/or the Borrower were S Corporations (whether because of an audit by a taxing authority, an amended return the filing of which is required in the reasonable judgment of Holdings, or otherwise), the amount of Permitted Shareholder Tax
Distributions which may be paid in such year shall be increased by the amount of such additional taxes as determined by a Tax Accountant. Notwithstanding any other provision in this Agreement to the contrary, in the event that in any future tax
period Holdings fails to qualify as an S Corporation for California and/or other state tax purposes or otherwise fails to receive the benefits of S Corporation tax treatments, but continues to maintain its S Corporation status for federal income tax
purposes, the amount that can be distributed or loaned under this paragraph or any other provisions of this Agreement shall include and shall be increased by the amount of California and/or other state taxes imposed on such distributions and loans
(including the additional distributions and loans under this sentence). For the avoidance of doubt, in determining the amounts that can be distributed to pay the tax liabilities of the shareholders of Holdings or any of its Subsidiaries under this
definition and other provisions of this Agreement, if there are multiple distributions and/or loans (e.g., an amount from the Borrower to Media Holdings and the same amount from Media Holdings to Holdings), such a series of distributions and/or
loans shall be only counted once. 
  
 “Person”
means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity. 
  
 “Plan” means any employee benefit plan within the meaning of Section 3(3) of ERISA in which the Borrower or
any ERISA Affiliate is an “employer” as defined in Section 3(5) of ERISA including but not limited to any Pension Plan or Multiemployer Plan. 
  
 “Pledge Agreement” means the Pledge Agreement dated as of the Original Closing Date between the Credit Parties and the Administrative
Agent, as confirmed and amended by the Confirmation of Pledge Agreement and the Omnibus Confirmation Agreement, as such agreement may be further amended, supplemented or otherwise modified from time to time, including the addition of new Credit
Parties in accordance with Section 6.10. 
  
 “Post-Default
Rate” means, for Base Rate Loans, a rate per annum equal to the Adjusted Base Rate plus the Applicable Margin plus 2%, and, for LIBOR Loans, a rate per annum equal to the Adjusted LIBO Rate plus the Applicable Margin
plus 2%. 
  

 32 

 “Prime Rate” means the rate of interest per annum announced from time to time by CSFB,
as its prime rate in effect at its principal office in New York, New York; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective. 
  
 “Program Obligations” means all obligations, whether fixed
or contingent, of the Credit Parties in respect of the purchase, use, license or acquisition of programs, programming materials, films and similar assets used in connection with the television broadcast business and operations of the Credit Parties.

  
 “Program Obligations Payments” means, for any
period, the sum (determined on a consolidated basis and without duplication) of all payments by the Credit Parties made or scheduled to be made during such period in respect of Program Obligations; provided that, with respect to any contract
for Program Obligations which requires that the consideration therefor be paid by a Credit Party in one lump-sum payment, or in unequal payments over the term of such contract, such payment (or payments) shall be amortized over the period during
which such programming is available under such contract. 
  
 “Property” means any interest of any kind in property or assets, whether real, personal or mixed, and whether tangible or intangible. 
  

“Proprietary Rights” has the meaning assigned to such term in Section 4.5(b). 
  
 “PTO” means the United States Patent and Trademark Office or
any successor or substitute office in which filings are necessary or, in the reasonable opinion of the Administrative Agent, desirable in order to create or perfect Liens on any IP Collateral. 
  
 “QSSS Election” means the election to treat any Person as a
qualified Subchapter S subsidiary pursuant to Code Section 1361(b)(3) (or any successor provision). 
  
 “Qualifying IPO” means the consummation by Holdings, on or before December 31, 2004, of an initial public offering of common stock with
gross proceeds to Holdings (without deduction of commissions) of $100 million or more. 
  
 “Qualifying IPO Closing Date” means the date on which all the following conditions have been satisfied: (a) a Qualifying IPO has been consummated and (b) the Administrative Agent has received (i)
copies of the Holdings Merger Agreement and the Assumption Agreement, executed by each of the parties thereto, (ii) a copy of the file stamped certificate of merger with respect to the Holdings Merger as filed with the Secretary of State of the
State of California (or, if such file stamped certificate is unavailable, a certificate of the Borrower certifying that a pre-cleared certificate of merger with respect to the Holdings Merger was submitted to the Secretary of State of the State of
California), (iii) a copy of the file stamped certificate of merger with respect to the Holdings Merger as filed with the Secretary of State of the State of Delaware, (iv) an opinion of O’Melveny & Myers LLP, substantially in the form of
Exhibit F annexed hereto, (v) the Borrower shall have mailed or cause to be mailed, within one Business Day after such date, an irrevocable notice of redemption pursuant to the Senior Subordinated Notes Indenture in order to consummate the
optional redemption described in clause (e) of the definition of Qualifying IPO Funding Transactions pursuant to the terms of the 
  

 33 

 Senior Subordinated Notes Indenture no later than 60 days after the Qualifying IPO Funding Date, (vi) Media Holdings
shall have mailed or cause to be mailed, within one Business Day after such date, an irrevocable notice of redemption pursuant to the Media Holdings Discount Notes Indenture in order to consummate the optional redemption described in clause (g) of
the definition of Qualifying IPO Funding Transactions pursuant to the terms of the Media Holdings Discount Notes Indenture no later than 60 days after the Qualifying IPO Funding Date and (vii) a certificate of a Financial Officer of the Borrower to
the effect that the conditions set forth in clauses (a) and (b)(i)-(vi) above have been satisfied. 
  
 “Qualifying IPO Funding Transactions” means the following payments and transactions to occur in connection with a Qualifying IPO:

  
 (a) on the Qualifying IPO Closing Date or within one Business
Day thereafter, Holdings shall make the Alta Repayment; 
  
 (b) on
the Qualifying IPO Closing Date or within one Business Day thereafter, Holdings shall contribute all of the IPO Proceeds (other than the amount required for the Alta Repayment and for the payment of certain Transaction Costs) to Media Holdings;

  
 (c) on the Qualifying IPO Closing Date or within one Business
Day thereafter, Media Holdings shall (i) loan pursuant to the LBI Media Intercompany Note not less than the amount that Media Holdings will require to redeem the Media Holdings Discount Notes and pay the premiums and other amount as described in
clause (g) below and (ii) contribute the remaining amount of the contribution Media Holdings received from Holdings as described in clause (b) above (other than amount required for the payment of certain Transaction Costs) to the Borrower;

  
 (d) on the Qualifying IPO Closing Date or within one Business
Day thereafter, the Borrower shall apply the proceeds of loan and contribution described in clause (c) above (other than amount required to pay certain Transaction Costs) to prepay the Loans in accordance with Section 2.11(b)(vi); 
  
 (e) no later than 90 days after the Qualifying IPO Closing Date, the Borrower
shall redeem approximately 35% in aggregate principal amount of the outstanding Senior Subordinated Notes at a redemption price of 110.125% and pay all accrued and unpaid interest and liquidated damages, if any, thereon; 
  
 (f) the Borrower shall repay, on or prior to the date of the redemption
described in (g) below, all of the LBI Media Intercompany Note; and 
  
 (g) no later than 90 days after the Qualifying IPO Closing Date, Media Holdings shall redeem approximately 40% of the Media Holdings Discount Notes at a redemption price of 111.000% of the Accreted Value thereof (as defined in the Media
Holdings Discount Notes Indenture) at the redemption date and pay all accrued and unpaid interest and liquidated damages, if any, thereon. 
  
 “Quarterly Dates” means the last day of each fiscal quarter of the Credit Parties, the first of which shall be June 30, 2004. 

 

 34 

 “Reaffirmation Agreement” means that certain Reaffirmation Agreement between the
Borrower and each of its Subsidiaries. 
  
 “Real Property
Asset” means, at any time of determination, any fee ownership or leasehold interest then owned by any Credit Party in any real property. 
  
 “Recorded Leasehold Interest” means a Leasehold Property with respect to which a Recorded Document (as hereinafter defined) has been
recorded in all places necessary or desirable, in the Administrative Agent’s reasonable judgment, to give constructive notice of such Leasehold Property to third-party purchasers and encumbrancers of the affected real property. For purposes of
this definition, the term “Recorded Document” means, with respect to any Leasehold Property, (a) the lease evidencing such Leasehold Property or a memorandum thereof, executed and acknowledged by the owner of the affected real
property, as lessor, or (b) if such Leasehold Property was acquired or subleased from the holder of a Recorded Leasehold Interest, the applicable assignment or sublease document, executed and acknowledged by such holder, in each case in form
sufficient to give such constructive notice upon recordation and otherwise in form reasonably satisfactory to the Administrative Agent. 
  
 “Refinancing Indebtedness” means any Indebtedness incurred under Section 7.15(a) that is applied to the extension, renewal, refunding or
replacement of other Indebtedness permitted under such Section 7.15(a) and that (i) the covenants, events of default and mandatory prepayment requirements (whether by sinking fund payments, mandatory redemptions or repurchases or otherwise), of such
Indebtedness are not more restrictive in any material respect on the Borrower and its Subsidiaries than the covenants, events of default and mandatory prepayment requirements in the Loan Documents, (ii) has a maturity date occurring no earlier than
the Holding Company Debt being extended, renewed, refunded or replaced and (iii) has a weighted average life to maturity greater than the Holding Company Debt being extended, renewed, refunded or replaced. 
  
 “Refunded Swing Loans” has the meaning assigned to such term
in Section 2.8. 
  
 “Register” has the meaning
assigned to such term in Section 10.4. 
  
 “Registered
Rights” has the meaning assigned to such term in Section 4.5(b). 
  
 “Registration Statement” means the Registration Statement on Form S-1, filed on February 12, 2004 by Holdings with the Securities and Exchange Commission, as amended from time to time. 
  
 “Reimbursement Obligation” has the meaning assigned to such
term in Section 2.4(e). 
  
 “Reinvestment Date”
has the meaning specified in Section 2.11(b). 
  
 “Related
Parties” means, with respect to any specified Person, such Person’s Affiliates and the respective directors, officers, employees, agents and advisors of such Person and such Person’s Affiliates. 
  

 35 

 “Relocation” means with respect to any television Broadcast Station, (1) any transaction
in which a 700 MHz Holder (or any other Person) offers consideration (which consideration consists of a different frequency or frequencies and/or other cash or non-cash consideration) to any Credit Party for the cessation of broadcasting on any of
the existing analogue and/or digital frequencies of such Broadcast Station in order to accommodate the spectrum needs of such 700 MHz Holder, including the prevention of interference with such 700 MHz Holder’s operations, and such Credit Party
is not ordered or directly or indirectly required by the FCC or any other Governmental Authority to enter into such transaction, or (2) any transaction in which FCC or any other Governmental Authority orders or otherwise directly or indirectly
requires any Credit Party to cease broadcasting on any of its existing analogue and/or digital frequencies in order to accommodate the spectrum needs of any 700 MHz Holder, including the prevention of interference with such 700 MHz Holder’s
operations, with or without any consideration. Without limiting the generality of the foregoing, the term Relocation shall include any “Relocation” as defined in the Shop At Home Acquisition Documents as in effect on March 20, 2001. As
used herein, “700 MHz Holder” means a holder of a 700 MHz license or construction permit. 
  
 “Relocation Profits” has the meaning given such term in the Shop At Home Acquisition Documents. 
  
 “Required Lenders” means Lenders having Loans, LC Exposure
and unused Commitments representing in excess of 50% of the sum of the total Loans, LC Exposure and unused Commitments. 
  
 “Restricted Junior Payment” means (i) any dividend or other distribution, direct or indirect, on account of any shares of any class of
stock of, or other equity interests in, any Credit Party now or hereafter outstanding, except a dividend payable solely in shares of stock or interests of the same class, (ii) any redemption, retirement, sinking fund or similar payment, purchase or
other acquisition for value, direct or indirect, of any shares of any class of stock of, or other equity interests in, any Credit Party now or hereafter outstanding, (iii) any payment made to retire, or to obtain the surrender of, any outstanding
warrants, options or other rights to acquire shares of any class of stock of, or other equity interests in, any Credit Party now or hereafter outstanding, (iv) any payment or prepayment of principal of, premium, if any, or interest on, or redemption
purchase, retirement, defeasance (including economic or legal defeasance), sinking fund or similar payment or liquidated damages with respect to, any Subordinated Indebtedness, Holding Company Debt or other Indebtedness of any Holding Company (other
than any intercompany loans from any of the Credit Parties), (v) any payment made to any Affiliates of any Credit Party or prior to the Qualifying IPO Closing Date, Alta Communications, in respect of management, consulting or other similar services
provided to any Credit Party, and (vi) any portion of “Incentive Bonus” which may become payable pursuant to the employment agreement with Eduardo Leon referred to in Section 5.1(h). Notwithstanding the foregoing, the following shall not
be deemed to be Restricted Junior Payments: (a) any payment to any director, officer or employee of any Credit Party consisting of salary, other compensation (except to the extent described in clause (vi) above) or reimbursement of expenses and (b)
any payments made in respect of the transactions permitted pursuant to Section 7.7. The cancellation or forgiveness of any loan made by any Credit Party with no cash payment by a Credit Party at the time of such forgiveness or cancellation to any of
its Affiliates shall not be deemed to be a Restricted Junior Payment. 
  

 36 

 “Revolving Credit Availability Period” means the period from and including the Effective
Time to but excluding the earlier of (a) the Revolving Credit Maturity Date and (b) the date of termination of the Revolving Credit Commitments. 
  
 “Revolving Credit Commitment” means, with respect to each Lender, the commitment of such Lender to make Revolving Credit Loans and to
acquire participations in Letters of Credit hereunder, as such commitment may be (a) reduced from time to time pursuant to Sections 2.7 and 2.11, (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to
Section 10.4 or (c) adjusted from time to time pursuant to Section 2.1(b). The initial maximum amount of each Lender’s Revolving Credit Commitment is set forth on Part II of Schedule 2.1, or in the Assignment and Acceptance pursuant to
which such Lender shall have assumed its Revolving Credit Commitment, as applicable. The aggregate original amount of the Revolving Credit Commitments is equal to $175,000,000.00. 
  
 “Revolving Credit Commitment Increase” has the meaning assigned to such term in Section 2.1(b)(i).

  
 “Revolving Credit Commitment Increase Date”
has the meaning assigned to such term in Section 2.1(b)(iii). 
  
 “Revolving Credit Exposure” means, with respect to any Revolving Credit Lender at any time, the sum of the outstanding principal amount of such Lender’s Revolving Credit Loans and its LC Exposure at such time and in
the case of the Swing Loan Lender, the aggregate outstanding principal amount of all Swing Loans which have not been refunded pursuant to Section 2.8(d). 
  
 “Revolving Credit Lender” means (a) initially, a Lender that has a Revolving Credit Commitment set forth opposite its name on Part II of
Schedule 2.1 and (b) thereafter, the Lenders from time to time holding Revolving Credit Loans and Revolving Credit Commitments, after (i) giving effect to any assignments thereof permitted by Section 10.4 or (ii) becoming a New Lender in
accordance with Section 2.1(b). 
  
 “Revolving Credit
Loan” means a Loan made pursuant to Section 2.1(a) that utilizes the Revolving Credit Commitment. 
  
 “Revolving Credit Maturity Date” means September 30, 2010. 
  
 “Revolving Credit Maximum Amount” means $225,000,000.00. 
  
 “Revolving Credit Notes” means the amended and restated
promissory notes, substantially in the form of Exhibit A, issued by the Borrower in favor of the Revolving Credit Lenders. 
  
 “S Corporation” means a small business corporation within the meaning of Code Section 1361 (or any successor provision) for which an
election is in effect under Code Section 1362(a) (or any successor provision). 
  

 37 

 “Second Confirmation of Subordination Agreements” means the Second Confirmation of
Subordination Agreements dated as of the date hereof among Alta, Holdings and the Administrative Agent, substantially in the form of Exhibit O annexed hereto. 
  
 “Security Agreement” means the Amended and Restated Security Agreement dated as of the Existing Credit
Agreement Closing Date between the Administrative Agent and the Credit Parties, as confirmed and amended by the Omnibus Confirmation Agreement and thereafter in accordance with Section 6.10, as such agreement may be amended, supplemented or
otherwise modified from time to time. 
  
 “Senior
Debt” means the Total Debt, excluding (i) any Subordinated Indebtedness and (ii) obligations of Credit Parties to pay any liquidated damages under any registration rights agreement entered into in connection with Indebtedness to the extent
such liquidated damages remain unpaid after the applicable due date under such registration rights agreement. 
  
 “Senior Leverage Ratio” means, as at any date of determination thereof, the ratio of (a) Senior Debt to (b) EBITDA for the
period of four consecutive fiscal quarters ending on or most recently ended prior to such date. 
  
 “Senior Subordinated Notes” means the Borrower’s 10 1/8% Senior Subordinated Notes due 2012, including any Additional Notes and
Exchange Notes (as each such term is defined in the Senior Subordinated Note Indenture), in each case as issued pursuant to the Senior Subordinated Note Indenture in an aggregate principal amount not in excess of $200,000,000, as amended,
supplemented or otherwise modified in accordance with the restrictions of Section 7.13. 
  
 “Senior Subordinated Note Indenture” means the Indenture dated as of July 9, 2002, among the Borrower, the Guarantors and U.S. Bank, N.A., as trustee, pursuant to which the Senior Subordinated Notes
were issued, as amended, supplemented or otherwise modified in accordance with the restrictions of Section 7.13. 
  
 “Shop at Home Acquisition” means the acquisition on March 20, 2001 by Liberman Television of Houston, Inc. and KZJL License Corp. from
the Shop at Home Sellers of the Broadcast Station KZJL-TV in Houston, Texas. 
  
 “Shop At Home Acquisition Documents” means the Asset Purchase Agreement, dated November 10, 2000, among the Borrower, Liberman Television of Houston, Inc. and KZJL License Corp. and the Shop At Home
Sellers, as amended by First Amendment to Asset Purchase Agreement dated as of December 22, 2000, the Second Amendment to Asset Purchase Agreement dated as of February 27, 2001 and the Third Amendment to Asset Purchase Agreement dated as of March
15, 2001 and all related instruments, agreements and other documents entered into by any Credit Party and any Shop At Home Seller in connection therewith, in each case, as amended, supplemented or modified in accordance with the restrictions of
Section 7.13. 
  
 “Shop At Home Sellers” means
Shop At Home, Inc., SAH – Houston Corporation, SAH-Houston License Corp. and SAH License, Inc. 
  

 38 

 “Special Counsel” means Palmer & Dodge LLP, in its capacity as special counsel to
CSFB, as Administrative Agent and Lead Arranger. 
  
 “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages
(including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to which the Administrative Agent is subject with respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred
to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed pursuant to such Regulation D. LIBOR Loans shall be deemed to constitute eurocurrency funding and to be subject to such
reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve percentage. 
  
 “Stockholder Voting Agreement” means the Voting Agreement by and between Lenard Liberman and Jose Liberman to be executed in connection with the IPO, substantially in the form delivered to the
Administrative Agent, as such agreement may be amended, supplemented or otherwise modified from time to time. 
  
 “Subordinated Indebtedness” means (a) the Senior Subordinated Notes, (b) the Liberman Subordinated Debt, and (c) any Indebtedness of any
Credit Party, incurred after the Effective Time with the prior written consent of the Required Lenders, which matures in its entirety later than the Loans and by its terms (or by the terms of the instrument under which it is outstanding and to which
appropriate reference is made in the instrument evidencing such Subordinated Indebtedness) is made subordinate and junior in right of payment to the Loans and to all of the Borrower’s other obligations to the Lenders hereunder by provisions
satisfactory in form and substance to the Required Lenders. 
  
 “Subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated
with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association
or other entity (a) of which securities or other ownership interests representing more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled
or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent. References herein to “Subsidiaries” shall, unless
the context requires otherwise, be deemed to be references to Subsidiaries of the Borrower. 
  
 “Suspended Losses” means the aggregate amount of losses and deductions of Holdings which have been taken into account by the shareholders of Holdings and disallowed under Code section 1366(d) (or
successor provisions) in a prior taxable year. 
  
 “Swing
Loan” has the meaning specified in Section 2.8. 
  

 39 

 “Swing Loan Commitment” means the commitment of the Swing Loan Lender to make Swing
Loans, as such commitment may be (a) reduced from time to time pursuant to Sections 2.7 and 2.11 and (b) reduced or increased from time to time pursuant to assignments by the Swing Loan Lender pursuant to Section 10.4. 
  
 “Swing Loan Lender” means CSFB, in its capacity as the Swing
Loan Lender. 
  
 “Swing Loan Note” means the
promissory note, substantially in the form of Exhibit B, issued by the Borrower in favor of the Swing Loan Lender to evidence the Swing Loans. 
  
 “Swing Loan Request” has the meaning assigned to such term in Section 2.8. 
  
 “Swing Loan Commitment” means a sublimit of the Revolving Credit Commitment equal to $5,000,000.

  
 “Tax Accountant” means any one of the five
largest nationally recognized independent accounting firms, or any other independent accounting firm jointly approved by the Administrative Agent and the Borrower. 
  
 “Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, charges or
withholdings imposed by any Governmental Authority. 
  
 “Termination Agreement” means the Termination Agreement among LBI Holdings I, Inc., Liberman Broadcasting, Inc., a Delaware corporation, and Alta to be executed in connection with the IPO, substantially in the form
delivered to the Administrative Agent. 
  
 “Title
Company” means one or more other title insurance companies reasonably satisfactory to the Administrative Agent with, LandAmerica Title Insurance Company and Commonwealth Land Title Company being satisfactory to the Administrative Agent.

  
 “Total Debt” means, as of any date of
determination thereof, the Indebtedness of the Credit Parties (determined on a consolidated basis without duplication in accordance with GAAP) excluding (i) intercompany loans among the Credit Parties, (ii) Indebtedness under the Holdings Securities
Purchase Documents and under the Media Holdings Discount Notes Indenture and documents related thereto and other Holding Company Debt incurred in accordance with Section 7.15(a)(iv), in each case, if and to the extent no Credit Party is obligated
with respect to such Indebtedness, (iii) the Liberman Subordinated Debt, (iv) the Empire Burbank Loan and (v) so long as the LBI Media Intercompany Note is no longer outstanding on the date occurring 90 days after the Qualifying IPO Closing Date,
the LBI Media Intercompany Note. 
  
 “Total Leverage
Ratio” means, as of any date of determination thereof, the ratio of (a) the Total Debt to (b) EBITDA for the period of four consecutive fiscal quarters ending on or most recently ended prior to such date. 
  
 “Total Voting Power” means, with respect to any Person, the
total number of votes which holders of securities or other ownership interests having the ordinary power to vote, in the absence of contingencies but after giving effect to the exercise and/or conversion of all 
  

 40 

 outstanding options, warrants, and other securities which by their terms are convertible into voting securities, are
entitled to cast in the election of directors, general partners or managers of such Person. 
  
 “Transaction Costs” means, for any period, nonrecurring out-of-pocket costs, fees and expenses (including attorneys’ fees) which are incurred by Holdings and its Subsidiaries in connection with
(a) the negotiation, preparation and consummation of the transactions contemplated under this Agreement and the Basic Documents and the Basic Documents (as defined in the Original Credit Agreement and/or the Existing Credit Agreement), and (ii)
obtaining all regulatory approvals, consents, filings or other matters required in connection with the transactions described herein and therein, including, any filing, registration or recording fees and charges and including costs, fees and
expenses incurred after the Original Closing Date, the Existing Credit Agreement Closing Date or the Closing Date, as applicable; provided that the amounts described in this clause (a) with respect to this Agreement, shall not exceed
$3,000,000 in the aggregate for all such amounts incurred since the Original Closing Date, (b) financing agreements and proposed financing agreements related to this Agreement and the Basic Documents and the Basic Documents (as defined in the
Original Credit Agreement and/or the Existing Credit Agreement) (including without limitation all fees and expenses paid to the agents thereunder and their respective counsel and like amounts paid in respect of the Existing Credit Agreement and
obligations described in clause (a) of the definition of Existing Debt and refinancing thereof), (c) the negotiation, preparation and consummation of the transactions contemplated and/or in connection with a Qualifying IPO, including, without
limitation, whether or not a Qualifying IPO occurs, the nonrecurring out-of-pocket costs, fees and expenses incurred by Holdings and its Subsidiaries in connection with (i) the negotiation, preparation and/or consummation of the Holdings Merger, a
Qualifying IPO (including the payment of the underwriting discounts in connection therewith but excluding any periodic reports required by the Securities Exchange Act of 1934, as amended), and the Qualifying IPO Funding Transactions (including the
fees, costs, expenses and premiums paid in connection with the Alta Repayment and the partial redemptions of the Senior Subordinated Notes and the Media Holdings Discount Notes) and (d) the negotiation and consummation of the transactions under the
El Dorado Acquisitions Documents, the Astor Acquisition Documents, the Guajillo Acquisition Documents (as defined in the Existing Credit Agreement) and the KMPX Acquisition Documents and contemplated under the KNOR Acquisition Documents, including
any due diligence, engineering, consulting, environmental, travel and accommodation, appraisal or other similar costs and expenses; provided that the amounts described in this clause (d), excluding the costs and expenses related to any
financing agreements and proposed financing agreements and any financing fees and expenses related thereto, shall not exceed $4,000,000 in the aggregate for all such amounts incurred since the Existing Credit Agreement Closing Date. The term
“Transaction Costs” shall include the initial and the routine periodic rating agency fees related to the issuance of the Senior Subordinated Notes, the Media Holdings Discount Notes and the maintenance of the rating(s) thereon but
excluding any rating agency fees related to subsequent transactions unrelated to the Senior Subordinated Notes, the Media Holdings Discount Notes and excluding any rating agency fees payable in connection with an Acquisition. 
  
 “Transactions” means with respect to each Credit Party and
Holding Company, (i) the execution, delivery and performance by the Borrower or such other Credit Party of the Loan Documents, and the documents related thereto, the borrowing of Loans and the use of the 
  

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 proceeds thereof, the issuance of Letters of Credit hereunder, and (ii) all transactions contemplated by the foregoing.

  
 “Type” when used in reference to any Loan or
Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Adjusted Base Rate. 
  
 “UCC” means the Uniform Commercial Code (or any similar or equivalent legislation) as in effect in any
applicable jurisdiction. 
  
 “U.S. Dollars” or
“$” refers to lawful money of the United States of America. 
  
 “Voluntary Relocation” means with respect to any television Broadcast Station, any Relocation described in clause (1) of the definition of the term Relocation. Without limiting the generality of the
foregoing, the term Voluntary Relocation shall include any “Voluntary Relocation” as defined in the Shop At Home Acquisition Documents as in effect on March 20, 2001. 
  
 “Wholly Owned Subsidiary” means, with respect to any Person at any date, any corporation, limited liability
company, partnership, association or other entity of which securities or other ownership interests representing 100% of the equity or ordinary voting power (other than directors’ qualifying shares) or, in the case of a partnership, 100% of the
general partnership interests are, as of such date, directly or indirectly owned, controlled or held by such Person or one or more Wholly Owned Subsidiaries of such Person or by such Person and one or more Wholly Owned Subsidiaries of such Person.

  
 “Withdrawal Liability” means liability to a
Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA. 
  
 1.2 Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to
by Type (e.g., a “Base Rate Loan” or a “LIBOR Loan”). In similar fashion, Borrowings may be classified and referred to by Type. 
  
 1.3 Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without
limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein),
(b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer
to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this
Agreement and 
  

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 (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to
refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. References in Articles 6 and 7 in respect of the affirmative and negative covenants to be performed by the Credit Parties
shall be interpreted to mean, with respect to Article 6, that the Borrower will, and will cause each of the other Credit Parties to, comply with such covenant, and, with respect to Article 7, that the Borrower will not, and will not permit any of
the other Credit Parties to, violate such covenant. 
  
 1.4
Accounting Terms; GAAP. Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if the Borrower notifies
the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the
Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), the Administrative Agent and the Borrower shall negotiate in good faith to amend any such provision to preserve the
original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders); provided, further, however, regardless of whether any such notice is given before or after such change in GAAP or in the application
thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.

  
 ARTICLE 2 
  
 The Credits 
  
 2.1 Revolving Credit Commitments. 
  
 (a) Revolving Credit Loans. Subject to the terms and
conditions set forth herein, each Revolving Credit Lender agrees to make Revolving Credit Loans to the Borrower from time to time during the Revolving Credit Availability Period in an aggregate principal amount that will not result in such
Lender’s Revolving Credit Loans exceeding such Lender’s maximum Revolving Credit Commitment; provided that the total Revolving Credit Exposure (after giving effect to any requested Revolving Credit Borrowing and any repayment of
Swing Loans effected by any requested Revolving Credit Borrowing) shall not at any time exceed the total Revolving Credit Commitments. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow,
prepay and reborrow Revolving Credit Loans. The amount of each Lender’s Revolving Credit Commitment under the Existing Credit Agreement (which were defined as “Lender”, “Revolving Credit Commitment” and “Revolving
Credit Loan”, respectively, thereunder) immediately prior to the Effective Time are set forth opposite its name on Part I of Schedule 2.1 annexed hereto and the aggregate amount of the Revolving Credit Commitments (which was defined as
“Revolving Credit Commitments” thereunder) at such time was $170,000,000. The amount of each Lender’s Revolving Credit Commitment in effect on the Closing Date are set forth opposite its name on Part II of Schedule 2.1 and the
aggregate amount of the Revolving Credit Commitments in effect on the Closing Date is $175,000,000. For the avoidance of doubt, (i) all “Revolving Credit Loans” made under 
  

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 the Existing Credit Agreement and outstanding immediately prior to the Effective Time shall continue to
be maintained as Revolving Credit Loans under and governed by this Agreement and (ii) the parties hereto further agree that on the Closing Date, all unpaid Obligations under the Existing Credit Agreement (including without limitation all unpaid
interest, fees and expenses) outstanding as of the Closing Date shall be deemed to be owing under and governed by this Agreement. 
  
 (b) Revolving Credit Commitment Increases. 
  
 (i) In the event that the aggregate amount of the Revolving Credit Commitments as of the Closing Date is
less than the Revolving Credit Maximum Amount, the Borrower shall have the right, at any time and from time to time during the Revolving Credit Availability Period, by delivering written notice to the Administrative Agent, to request that the
Revolving Credit Commitments be increased by an amount (an “Revolving Credit Commitment Increase”) up to but not exceeding the difference between (x) the Revolving Credit Maximum Amount and (y) the aggregate amount of the Revolving
Credit Commitments as of the date of such request for an Revolving Credit Commitment Increase. 
  
 (ii) Upon receipt of a written request from the Borrower, the Administrative Agent and the Lead Arranger shall attempt to arrange and
syndicate such Revolving Credit Commitment Increase, by contacting one or more new lenders (the “New Lenders”) or one or more existing Lenders to determine whether such New Lenders desire to enter into Revolving Credit Commitments,
and/or whether any such existing Lender, in its sole discretion, desires to increase the aggregate amount of its Revolving Credit Commitments. Each such Revolving Credit Commitment Increase shall be arranged and syndicated by the Administrative
Agent and the Lead Arranger, and any New Lenders shall be selected by the Administrative Agent and the Lead Arranger in consultation with the Borrower. The Administrative Agent’s and the Lead Arranger’s agreements to arrange and syndicate
any such Revolving Credit Commitment Increase shall not be deemed to constitute a commitment, or an offer, to provide, such Revolving Credit Commitment Increase or a representation, direct or implied, that such arrangement and syndication will be
successful. The Borrower shall pay to the Administrative Agent and the Lead Arranger such fees and expenses in connection with arranging and syndicating each such Revolving Credit Commitment Increase, as may be agreed by the Borrower, the
Administrative Agent and the Lead Arranger, to achieve a successful syndication of such Revolving Credit Commitment Increase, and no portion of such fees shall be allocable to any persons other than the Administrative Agent, the Lead Arranger, a
Lender increasing the aggregate amount of its Revolving Credit Commitments or the New Lenders, unless otherwise agreed by the Administrative Agent and the Lead Arranger. The Administrative Agent and the Lead Arranger shall have no liability to the
Borrower or the Lenders if the Administrative Agent and the Lead Arranger are unable to successfully arrange and syndicate any requested Revolving Credit Commitment Increase. The Borrower may request Revolving Credit Commitment Increases on any
number of occasions, subject to the conditions and provisions set forth herein. No Lender shall have any obligation to increase its Revolving Credit Commitment. 
  

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 (iii) If the Administrative Agent and the Lead Arranger are able to successfully arrange
and syndicate any requested Revolving Credit Commitment Increase, such Revolving Credit Commitment Increase shall become effective on the date specified by the Administrative Agent (each such date being referred to a “Revolving Credit
Commitment Increase Date”) provided that (x) no Default shall exist on the Revolving Credit Commitment Increase Date both before and after giving effect to such proposed Revolving Credit Commitment Increase; (y) the Borrower shall have paid
all fees and expenses in connection with the arrangement and syndication of such Revolving Credit Commitment Increase; and (z) the Borrower shall have delivered or caused to be delivered to the Administrative Agent any certificates or other
documents reasonably requested by the Administrative Agent in connection with such Revolving Credit Commitment Increase including amendments to Mortgages and endorsements to title insurance policies or new title insurance policies (if and to the
extent it is determined that new title policies are necessary to insure the lien of the Mortgages with respect to the Revolving Credit Commitment Increase). In the event the Administrative Agent and the Lead Arranger shall be unable to successfully
arrange and syndicate any requested Revolving Credit Commitment Increase within thirty days of the date of any written request by the Borrower for such Revolving Credit Commitment Increase, such request by the Borrower shall be deemed to have
expired and the Administrative Agent and the Lead Arranger shall have no further obligation to continue such arrangement and syndication efforts; provided that the expiration of such thirty-day period shall not limit the Borrower’s right
to make one or more additional requests for an Revolving Credit Commitment Increase. 
  
 (iv) On each Revolving Credit Commitment Increase Date, subject to the satisfaction of the foregoing terms and conditions, and subject to
the limitations set forth in clause (v) of this Section 2.1(b): (w) each New Lender shall enter into one or more Lender Joinder Agreements or other documents in form and substance reasonably satisfactory to the Administrative Agent, and upon
execution of such Lender Joinder Agreements or other documents, such New Lender shall be deemed to be a “Lender” under this Agreement and the other Loan Documents; (x) the Revolving Credit Commitments shall be adjusted to take into account
the Revolving Credit Commitments of the New Lenders and the increases, if any, of the Revolving Credit Commitments of the existing Lenders, and (y) each existing Lender who is increasing their Revolving Credit Commitments shall have returned to the
Administrative Agent for cancellation its Revolving Credit Note, and the Borrower shall have executed and delivered to the Administrative Agent for the benefit of each New Lender and each existing Lender who is increasing its Revolving Credit
Commitments a new Revolving Credit Note, in each case, in the aggregate principal amount of such Lender’s Revolving Credit Commitment after giving effect to the Revolving Credit Commitment Increase. Each of the Lenders hereby authorizes the
Administrative Agent to revise Part II of Schedule 2.1 on each Revolving Credit Commitment Increase Date to reflect such increase without an amendment to this Agreement. 
  
 (v) Notwithstanding anything to the contrary set forth in this Section 2.1(b), in no event shall any
Revolving Credit Commitment Increase result in (1) any increase or decrease in the amount of any Lender’s Revolving Credit Commitment 
  

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 without such Lender’s prior written consent, or (2) the aggregate amount of the Revolving Credit
Commitments exceeding the Revolving Credit Maximum Amount. 
  
 2.2
Loans and Borrowings. 
  
 (a) Each Loan
shall be made as part of a Borrowing consisting of Loans made by the Lenders ratably in accordance with their respective Commitments. The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its
obligations hereunder; provided that the Commitments of the Lenders are several and no Lender shall be responsible for any other Lender’s failure to make Loans as required. 
  
 (b) Subject to Section 2.14 and except with respect to Swing Loans, each Borrowing shall be comprised
entirely of Base Rate Loans or LIBOR Loans as the Borrower may request in accordance herewith. Each Lender at its option may make any LIBOR Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided
that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement. 
  
 (c) At the commencement of each Interest Period for a LIBOR Borrowing, such Borrowing shall be in an aggregate amount at least equal to
$500,000 or any greater multiple of $100,000. At the time that each Base Rate Borrowing (other than a Swing Loan) is made, such Borrowing shall be in an aggregate amount that is at least equal to $100,000 or any greater multiple of $100,000;
provided that (i) a Base Rate Borrowing of Revolving Credit Loans may be in an aggregate amount that is equal to the entire unused balance of the total Revolving Credit Commitments, and (ii) a Base Rate Borrowing of Revolving Credit Loans may
be in an amount that is required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.4(e). Borrowings of more than one Type may be outstanding at the same time; provided that there shall not at any time be more
than a total of ten LIBOR Borrowings outstanding. 
  
 2.3
Requests for Borrowings. 
  
 (a) To
request a Borrowing (except requests for Swing Loan Borrowings which are subject to Section 2.8(b)), the Borrower shall notify the Administrative Agent of such request by telephone (i) in the case of a LIBOR Borrowing, not later than 1:00 p.m., New
York time, three Business Days before the date of the proposed Borrowing; provided that LIBOR Borrowings shall not be available on the Closing Date unless otherwise consented to by the Administrative Agent in writing, or (ii) in the case of a
Base Rate Borrowing not later than 1:00 p.m., New York time, one Business Day before the date of the proposed Borrowing; provided that any such notice of a Base Rate Borrowing to finance the reimbursement of an LC Disbursement as contemplated
by Section 2.4(e) may be given not later than 1:00 p.m., New York time, on the date of the proposed Borrowing; provided further that the Borrower shall use Swing Loan Borrowings to finance the reimbursement of an LC Disbursement except to the
extent that such Borrowings would cause the aggregate principal balance of all Swing Loans outstanding to exceed the Swing Loan Commitment, in which case the Borrower may use Base Rate Revolving Credit Borrowings to finance such reimbursement, but
only to the extent of such excess. Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed 
  

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 promptly by hand delivery or telecopy to the Administrative Agent of a written Borrowing Request in a
form approved by the Administrative Agent and signed by the Borrower. 
  
 (b) Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.2: 
  

(i) the aggregate amount of such Borrowing; 
  

(ii) the effective date of such Borrowing, which shall be a Business Day; 
  
 (iii) whether such Borrowing is to be a Base Rate Borrowing
or a LIBOR Borrowing; 
  
 (iv) in the case of a
LIBOR Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; 
  
 (v) the location and number of the Borrower’s account to which funds are to be disbursed, which shall
comply with the requirements of Section 2.5; 
  
 (vi) a detailed calculation of the Senior Leverage Ratio and the Total Leverage Ratio, in each case based on the Senior Debt or the Total Debt (in each case, after giving effect to such Borrowing), as applicable, and EBITDA of the Credit
Parties for the period of four consecutive fiscal quarters reported in the Compliance Certificate most recently delivered to the Administrative Agent demonstrating that the Senior Leverage Ratio (after giving effect to such Borrowing) shall not
exceed the maximum Senior Leverage Ratio permitted under Section 7.10(b) for the fiscal quarter most recently ended and that the Total Leverage Ratio (after giving effect to such Borrowing) shall not exceed the maximum Total Leverage Ratio permitted
under Section 7.10(a) for the fiscal quarter most recently ended; provided that for purposes of calculating such ratios (x) prior to the delivery of the first Compliance Certificate required to be delivered hereunder, the Credit Parties shall
use EBITDA reported in the last Compliance Certificate provided under the Existing Credit Agreement and (y) for Loans being requested in connection with an Acquisition such ratios shall be calculated giving pro forma effect to the Acquisition as if
such Acquisition has occurred at the beginning of the applicable period and after reflecting certain expense deductions in connection with such Acquisition reasonably acceptable to the Administrative Agent; and 
  
 (vii) at any time when the outstanding Loans exceed
$150,000,000 minus the aggregate amount of all “Net Proceeds” of “Asset Sales” and “Relocations” applied by the Borrower or any of its “Restricted Subsidiaries” after the Closing Date to repay any term
“Indebtedness” under any “Credit Facility” or to repay any revolving credit “Indebtedness” under any “Credit Facility” and effect a corresponding commitment reduction under a “Credit Facility”
pursuant to Section 4.10 of the Senior Subordinated Note Indenture (all of the foregoing terms in quotation marks are used as defined in the Senior Subordinated Note Indenture), (A) a certification that the Loans, after giving effect to such
Borrowing Request, are not incurred in violation of the Senior 
  

 47 

 Subordinated Note Indenture, including a detailed calculation of the Leverage Ratio (as defined in the
Senior Subordinated Note Indenture) demonstrating that such Leverage Ratio does not exceed 7.0 to 1 after giving effect to the Borrowing Request and (B) the Borrowing Request therefor must be in writing (and no telephonic Borrowing Requests shall be
permitted). 
  
 (c) If no election as to the Type
of Borrowing is specified, then the requested Borrowing shall be a Base Rate Borrowing. If no Interest Period is specified with respect to any requested LIBOR Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one
month’s duration. Promptly following receipt of a Borrowing Request in accordance with this Section 2.3, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of
the requested Borrowing. 
  
 2.4 Letters of Credit.

  
 (a) General. Subject to the terms and
conditions set forth herein, in addition to the Revolving Credit Loans provided for in Section 2.1(a) and the Swing Loans provided for in Section 2.8(a), the Borrower may request the issuance of Letters of Credit for its own account or for the
account of any of its Subsidiaries which is a Guarantor by an Issuing Lender, in a form reasonably acceptable to such Issuing Lender, at any time and from time to time during the Revolving Credit Availability Period. In addition to such form, at the
time of such request, the Borrower shall also deliver to the Administrative Agent the information required to be delivered pursuant to Section 2.3(b)(vi) (assuming, for the calculation of the Senior Leverage Ratio and the Total Leverage Ratio, the
issuance of the requested Letter of Credit) and, if applicable, Section 2.3(b)(vii). Letters of Credit issued hereunder shall constitute utilization of the Revolving Credit Commitments. In the event of any inconsistency between the terms and
conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower with, an Issuing Lender relating to any Letter of Credit, the
terms and conditions of this Agreement shall control. 
  
 (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or
send by telephonic facsimile (fax) (or transmit by electronic communication, if arrangements for doing so have been approved by such Issuing Lender) to an Issuing Lender and the Administrative Agent (two Business Days before the date of the
requested date of issuance, amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, the date of issuance, amendment, renewal or extension, the
date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section 2.4), the amount of such Letter of Credit, the name and address of the beneficiary thereof, whether such Letter of Credit is a documentary or
trade Letter of Credit or a standby Letter of Credit, and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. If requested by such Issuing Lender, the Borrower also shall submit a letter of credit
application on such Issuing Lender’s standard form in connection with any request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of each
Letter of Credit the Borrower shall be deemed to 
  

 48 

 represent and warrant that), after giving effect to such issuance, amendment, renewal or extension (i)
the aggregate LC Exposure of the Issuing Lender (determined for these purposes without giving effect to the participations therein of the Revolving Credit Lenders pursuant to paragraph (d) of this Section 2.4) shall not exceed $5,000,000 and (ii)
the total Revolving Credit Exposure shall not exceed the total Revolving Credit Commitments. If the Issuing Lender is not the Administrative Agent, the Issuing Lender shall notify the Administrative Agent promptly in writing of the issuance,
amendment, renewal or extension of any Letter of Credit, with a summary of the pertinent terms thereof and shall provide the Administrative Agent with a copy of such Letter of Credit and related application and any other documentation related
thereto. The Administrative Agent shall forward to each Lender a copy of each notice delivered by the Borrower under this Section 2.1(b). 
  
 (c) Expiration Date. Each Letter of Credit shall expire (without giving effect to any extension thereof by reason of an
interruption of business) at or prior to the close of business on the earlier of (i) the date 365 days, in the case of standby Letters of Credit, or 180 days, in the case of documentary or trade Letters of Credit, after the date of the issuance of
such Letter of Credit (or, in the case of any renewal or extension thereof, 365 days or 180 days, as applicable, after such renewal or extension) provided that any such Letter of Credit may provide for automatic extensions thereof to a date
not later than 365 days, in the case of standby Letters of Credit, or 180 days, in the case of documentary or trade Letters of Credit, beyond its current expiration date, and (ii) the date that is five Business Days prior to the Revolving Credit
Maturity Date. No Letter of Credit may be extended beyond the date that is five Business Days prior to the Revolving Credit Maturity Date. 
  
 (d) Participations. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) by
an Issuing Lender, and without any further action on the part of such Issuing Lender, such Issuing Lender hereby grants to each Revolving Credit Lender, and each Revolving Lender hereby acquires from such Issuing Lender, a participation in such
Letter of Credit equal to such Revolving Credit Lender’s Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit. In consideration and in furtherance of the foregoing, each Revolving Credit Lender hereby
absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of such Issuing Lender, such Revolving Credit Lender’s Applicable Percentage of each LC Disbursement made by such Issuing Lender and not reimbursed by the
Borrower on the date due as provided in paragraph (e) of this Section 2.4, or of any reimbursement payment required to be refunded to the Borrower for any reason. Each Revolving Credit Lender acknowledges and agrees that its obligation to acquire
participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence
and continuance of a Default or reduction or termination of the Commitments, and that each such payment to the Administrative Agent, for the account of such Issuing Lender shall be made without any offset, abatement, withholding or reduction
whatsoever. 
  
 (e) Reimbursement. If an
Issuing Lender shall make any LC Disbursement in respect of a Letter of Credit, the Borrower shall reimburse (each a “Reimbursement Obligation”) such Issuing Lender in respect of such LC Disbursement by paying to the Administrative
Agent an amount equal to such LC Disbursement not later than 1:00 p.m., New York time, on (i) the 
  

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 Business Day that the Borrower receives notice of such LC Disbursement, if such notice is received prior
to 11:00 a.m., New York time; or (ii) the Business Day immediately following the day that the Borrower receives such notice, if such notice is not received prior to such time, provided that the Borrower may, subject to the conditions to
borrowing set forth herein, request in accordance with Section 2.3 that such payment be financed with a Revolving Credit Base Rate Borrowing in an equivalent amount and, to the extent so financed, the Borrower’s obligation to make such payment
shall be discharged and replaced by the resulting Revolving Credit Base Rate Borrowing. 
  
 If the Borrower fails to make such payment when due, the Administrative Agent shall notify each Revolving Credit Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect thereof and
such Revolving Credit Lender’s Applicable Percentage thereof. Promptly following receipt of such notice, each Revolving Credit Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the Borrower, in
the same manner as provided in Section 2.5 with respect to Revolving Credit Loans made by such Lender (and Section 2.5 shall apply to the payment obligations of the Revolving Credit Lenders, treating each such payment as a Loan for this purpose),
and the Administrative Agent shall promptly pay to the applicable Issuing Lender the amounts so received by it from the Revolving Credit Lenders. Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to
this paragraph, the Administrative Agent shall distribute such payment to the applicable Issuing Lender or, to the extent that the Revolving Credit Lenders have made payments pursuant to this paragraph to reimburse such Issuing Lender, then to such
Lenders and such Issuing Lender as their interests may appear. Any payment made by a Revolving Credit Lender pursuant to this paragraph to reimburse an Issuing Lender for any LC Disbursement shall not constitute a Loan and shall not relieve the
Borrower of its obligation to reimburse such LC Disbursement. 
  
 (f) Obligations Absolute. 
  
 (i) The Borrower’s obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section 2.4 shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with
the terms of this Agreement under any and all circumstances whatsoever and irrespective of (A) any lack of validity or enforceability of any Letter of Credit, or any term or provision therein, (B) any draft or other document presented under a Letter
of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (C) payment by the Issuing Lender under a Letter of Credit against presentation of a draft or other document
that does not comply strictly with the terms of such Letter of Credit and (D) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section 2.4, constitute a legal or
equitable discharge of the Borrower’s obligations hereunder. 
  
 (ii) Neither the Administrative Agent, any Lender nor Issuing Lender, nor any of their Related Parties, shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any
Letter of Credit by the Issuing Lender or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in clause (f)(i) above), or any error, omission, interruption, loss 
  

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 or delay in transmission or delivery of any draft, notice or other communication under or relating to any
Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the Issuing Lender; provided that nothing in this
Section 2.4 shall be construed to excuse the Issuing Lender from liability to the Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Borrower to the extent permitted
by applicable law) suffered by the Borrower that are caused by the Issuing Lender’s gross negligence or willful misconduct when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof.
Subject in all respects to the foregoing, the parties hereto expressly agree that: 
  
 (A) the Issuing Lender may accept documents that appear on their face to be in substantial compliance with the terms of a Letter of
Credit without responsibility for further investigation, regardless of any notice or information to the contrary, and may make payment upon presentation of documents that appear on their face to be in substantial compliance with the terms of such
Letter of Credit; 
  
 (B) the Issuing Lender
shall have the right, in its sole discretion, to decline to accept such documents and to decline to make such payment if such documents are not in strict compliance with the terms of such Letter of Credit; and 
  
 (C) this clause (f)(ii) shall establish the standard of
care to be exercised by the Issuing Lender when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof (and the parties hereto hereby waive, to the extent permitted by applicable law, any
standard of care inconsistent with the foregoing). 
  
 (g) Disbursement Procedures. The Issuing Lender shall, promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under any Letter of Credit. The Issuing Lender shall promptly notify
the Administrative Agent and the Borrower by telephone (confirmed by telecopy) of such demand for payment and whether the Issuing Lender has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving
such notice shall not relieve the Borrower of its obligation to reimburse the Issuing Lender and the Revolving Credit Lenders with respect to any such LC Disbursement. 
  
 (h) Interim Interest. If the Issuing Lender shall make any LC Disbursement in respect of any Letter
of Credit, then, unless the Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but
excluding the date that the Borrower reimburses such LC Disbursement, at the rate per annum then applicable to Revolving Credit Base Rate Loans; provided that, if the Borrower fails to reimburse such LC Disbursement when due pursuant to
paragraph (e) of this Section 2.4, then interest calculated in accordance with Section 2.13(c) shall accrue on the unpaid amount thereof. Interest accrued pursuant to this paragraph shall be for the account of the Issuing Lender, except that
interest 
  

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 accrued on and after the date of payment by any Revolving Credit Lender pursuant to paragraph (e) of this
Section 2.4 to reimburse the Issuing Lender shall be for the account of such Lender to the extent of such payment. 
  
 (i) Cash Collateralization. If either (i) an Event of Default shall occur and be continuing and the Borrower receives notice from
the Administrative Agent or the Required Lenders demanding the deposit of cash collateral pursuant to this paragraph, or (ii) the Borrower shall be required to provide cover for LC Exposure pursuant to Section 2.10(a) or 2.11(b), the Borrower shall
immediately deposit with the Issuing Lender an amount in cash equal to, in the case of an Event of Default, the LC Exposure as of such date plus any accrued and unpaid interest thereon and, in the case of cover pursuant to Section 2.10(a) or
2.11(b), the amount required under Section 2.10(a) or 2.11(b), as the case may be; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable,
without demand or other notice of any kind, upon the occurrence of any Event of Default described in clause (g) or (h) of Section 8.1. Such deposit shall be held by the Administrative Agent as collateral in the first instance for the LC Exposure
under this Agreement and thereafter for the payment of any other obligations of the Credit Parties hereunder. 
  
 2.5 Funding of Borrowings. 
  
 (a) Each Lender shall make each Loan (other than a Swing Loan) to be made by it hereunder on the proposed date thereof by wire transfer of
immediately available funds by 12:00 noon, New York time to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders. The Administrative Agent will make such Loans (other than Swing Loans)
available to the Borrower by promptly crediting the amounts so received, in like funds, to an account of the Borrower designated by the Borrower in the applicable Borrowing Request; provided that (i) Revolving Credit Base Rate Loans made to
finance the reimbursement of an LC Disbursement under any Letter of Credit as provided in Section 2.4(e) shall be remitted by the Administrative Agent to the Issuing Lender and (ii) Revolving Credit Base Rate Loans made to finance the refunding of
Swing Loans as provided in Section 2.8(d)(i) shall be remitted by the Administrative Agent to the Swing Loan Lender. 
  
 (b) Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing (other than a
Swing Loan Borrowing) that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with
paragraph (a) of this Section 2.5 and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative
Agent, then the applicable Lender (and if the applicable Lender fails to pay immediately upon demand, the Borrower) agrees to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and
including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at the Federal Funds Effective Rate. If such Lender pays such amount to the Administrative Agent, then such amount
shall constitute such Lender’s Loan included in such Borrowing. Nothing in this Section 2.5 shall be deemed to relieve any Lender from its obligation 
  

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 to fulfill its Commitments to the extent required by this Agreement or to prejudice any rights that the
Borrower may have against any Lender as a result of any default by such Lender hereunder. 
  
 2.6 Interest Elections. 
  
 (a) Each Borrowing (other than a Swing Loan Borrowing) initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a LIBOR Borrowing, shall have an initial Interest Period as
specified in such Borrowing Request. Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a LIBOR Borrowing, may elect Interest Periods therefor, all as provided in this
Section 2.6; provided however, that notwithstanding any other provision of this Section 2.6, no Swing Loan shall be converted from a Base Rate Borrowing to a LIBOR Borrowing. The Borrower may elect different options for continuations and
conversions with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be
considered a separate Borrowing. 
  
 (b) To make
an election pursuant to this Section 2.6, the Borrower shall notify the Administrative Agent of such election by telephone by the time that a Borrowing Request would be required under Section 2.3(a) if the Borrower were requesting a Borrowing of the
Type resulting from such election to be made on the effective date of such election. Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a
written Interest Election Request signed by the Borrower. 
  
 (c) Each telephonic and written Interest Election Request shall specify the following information in compliance with Section 2.2: 
  
 (i) the Borrowing to which such Interest Election Request applies and, if different options for
continuations or conversions are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall
be specified for each resulting Borrowing); 
  
 (ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day; 
  
 (iii) whether the resulting Borrowing is to be a Base Rate Borrowing or a LIBOR Borrowing; and 
  
 (iv) if the resulting Borrowing is a LIBOR Borrowing, the
Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term “Interest Period”. 
  
 If any such Interest Election Request requests a LIBOR Borrowing but does not specify an Interest Period, then the Borrower shall be deemed
to have selected an Interest Period of one month’s duration. 
  

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 (d) Promptly following receipt of an Interest Election Request, the Administrative Agent
shall advise each affected Lender of the details thereof and of such Lender’s portion of each resulting Borrowing. 
  
 (e) If the Borrower fails to deliver a timely Interest Election Request with respect to a LIBOR Borrowing prior to the end of the Interest
Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to a Base Rate Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default
has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as an Event of Default is continuing (i) no outstanding Borrowing may be converted to or continued as a
LIBOR Borrowing and (ii) unless repaid, each LIBOR Borrowing shall be converted to a Base Rate Borrowing at the end of the Interest Period applicable thereto. 
  

(f) The Borrower shall not be obligated to deliver a Borrowing Request in connection with any election to convert any Borrowing to a
different Type or to continue any Borrowing or, in the case of a LIBOR Borrowing, any election of an Interest Period therefor pursuant this Section 2.6. 
  
 2.7 Termination and Reduction of Commitments. 
  
 (a) Unless previously terminated in accordance with the terms hereof, the Revolving Credit Commitments shall terminate at the close of
business on the Revolving Credit Maturity Date. 
  
 (b) The Borrower may at any time or from time to time reduce the Revolving Credit Commitments or the Swing Loan Commitment; provided that (i) each reduction of the Revolving Credit Commitments or the Swing Loan Commitment shall be in
an amount that is at least equal to $500,000 or any greater multiple of $100,000, and (ii) the Borrower shall not terminate or reduce (A) the Revolving Credit Commitments if, after giving effect to any concurrent repayment in accordance with Section
2.10 or prepayment in accordance with Section 2.11 of the Loans, the total Revolving Credit Exposure would exceed the total Revolving Credit Commitments or (B) the Swing Loan Commitment if, after giving effect to any concurrent repayment of the
Swing Loans in accordance with Section 2.10 or prepayment of the Loans in accordance with Section 2.11, the aggregate principal amount of outstanding Swing Loans would exceed the Swing Loan Commitment, after giving effect to such termination or
reduction. 
  
 (c) The Borrower shall notify the
Administrative Agent of any election to terminate or reduce the Revolving Credit Commitments or the Swing Loan Commitment under paragraph (b) of this Section 2.7 at least three Business Days prior to the effective date of such termination or
reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this Section
2.7 shall be irrevocable; provided that a notice of termination of any Commitments delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked
by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. 
  

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 Any termination or reduction of Revolving Credit Commitments and/or Swing Loan Commitment shall be
permanent. Each reduction of Revolving Credit Commitments shall be made ratably among the Revolving Credit Lenders in accordance with their respective Revolving Credit Commitments. 
  
 2.8 Swing Loan Facility. 
  
 (a) The Swing Loan. Subject to the terms and conditions hereinafter set forth, upon notice by the Borrower made to the Swing Loan
Lender in accordance with Section 2.8(b)(i), the Swing Loan Lender hereby agrees to make Swing Loans to the Borrower from time to time on any Business Day during the period between the Closing Date and the Business Day immediately prior to the
expiration of the Revolving Credit Availability Period in an aggregate principal amount not to exceed the Swing Loan Commitment. The Swing Loans shall be payable with interest accrued thereon on the Business Day immediately prior to the expiration
of the Revolving Credit Availability Period. Amounts borrowed by the Borrower under this Section 2.8 may be repaid and reborrowed, subject to the conditions hereof. At the time that each Swing Loan Borrowing is made, such Borrowing shall be in an
aggregate amount that is at least equal to $100,000 or any greater multiple of $100,000. Notwithstanding any other provisions of this Agreement and in addition to the Swing Loan Commitment limitation set forth above at no time shall the sum of (i)
the aggregate principal amount of all outstanding Swing Loans (after giving effect to all amounts requested and the application of the proceeds thereof) plus (ii) the aggregate principal amount of all outstanding Revolving Credit Loans (after giving
effect to all amounts requested and the application of the proceeds thereof), plus (iii) the aggregate LC Exposure, exceed the aggregate amount of the Revolving Credit Commitments of all the Lenders; provided, however, that subject to the
limitations set forth in this Section 2.8(a) from time to time the ratio of (x) the sum of the aggregate Revolving Credit Exposure of the Swing Loan Lender (both in its capacity as the Swing Loan Lender and in its capacity as a Revolving Credit
Lender) to (y) the sum of the aggregate Revolving Credit Exposure of all Lenders (including the Swing Loan Lender both in its capacity as the Swing Loan Lender and in its capacity as a Revolving Credit Lender) may exceed its Applicable Percentage.

  
 (b) Requests for Swing Loans.

  
 (i) When the Borrower desires the Swing Loan
Lender to make a Swing Loan, it shall send to the Administrative Agent and the Swing Loan Lender a written request (or telephonic notice, if thereafter promptly confirmed in writing) (a “Swing Loan Request”), which request shall set
forth (x) the principal amount of the proposed Swing Loan, and (y) the proposed date of Borrowing of such Swing Loan (which date shall be a Business Day). Each such Swing Loan Request must be received by the Swing Loan Lender not later than 1:00
p.m. (New York time) on the proposed date of Borrowing of the Swing Loan being requested. Each Swing Loan Request shall be irrevocable and binding on the Borrower and shall obligate the Borrower to borrow the Swing Loan from the Swing Loan Lender on
the proposed date of Borrowing. 
  
 (ii) Upon
satisfaction of the applicable conditions set forth in this Agreement, at or before the close of business on the proposed date of Borrowing, the Swing Loan Lender shall make the Swing Loan available to the Borrower by crediting 
  

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 the amount of the Swing Loan to an account designated by the Borrower to the Swing Loan Lender;
provided that Swing Loans made to finance the reimbursement of an LC Disbursement under any Letter of Credit as provided in Section 2.4(e) shall be remitted by the Administrative Agent to the Issuing Lender. 
  
 (iii) Notwithstanding the foregoing, the Swing Loan Lender
shall not advance any Swing Loans after it has received notice from any Lender or any Credit Party that a Default has occurred and is continuing and stating that no new Swing Loans are to be made until such Default has been cured or waived in
accordance with the provisions of this Agreement. 
  
 (c) Interest on Swing Loans. Each Swing Loan shall be a Base Rate Loan and shall bear interest for the account of the Swing Loan Lender thereof until repaid in full at the rate per annum equal to the Base Rate plus the
Applicable Margin for Base Rate Loans. The Borrower promises to pay interest on the Swing Loans in arrears on each Interest Payment Date with respect thereto. All such interest payable with respect to the Swing Loans shall be payable for the account
of the Swing Loan Lender. 
  
 (d) Refundings
of Swing Loans; Participations in Swing Loans. 
  
 (i) The Swing Loan Lender, at any time in its sole and absolute discretion, may, on behalf of the Borrower (which hereby irrevocably directs the Swing Loan Lender to act on its behalf) request each Revolving Credit Lender, including the
Swing Loan Lender, in its capacity as a Revolving Credit Lender, to make a Revolving Credit Loan in an amount equal to such Revolving Credit Lender’s Applicable Percentage of the amount of the Swing Loans (the “Refunded Swing
Loans”) outstanding on the date such notice is given. Upon such request, unless any of the Events of Default described in Section 8.1 (g) or (h) shall have occurred (in which event the procedures of Section 2.8(d)(ii) shall apply), each
Revolving Credit Lender shall make the proceeds of its Revolving Credit Loan available to the Administrative Agent, for the account of the Swing Loan Lender, at the Administrative Agent’s office prior to 11:00 a.m. New York time in funds
immediately available on the Business Day next succeeding the date such notice is given. The proceeds of such Revolving Credit Loans shall be immediately applied to repay the Refunded Swing Loans. 
  
 (ii) If, prior to the making of a Revolving Credit Loan
pursuant to Section 2.8(d)(i), an Event of Default described in Section 8.1 (g) or (h) shall have occurred, each Revolving Credit Lender will, on the date such Revolving Credit Loan was to have been made, purchase an undivided participation interest
in the Refunded Swing Loan in an amount equal to its Applicable Percentage of such Refunded Swing Loan. Each Revolving Credit Lender will immediately transfer to the Swing Loan Lender, in immediately available funds, the amount of its participation
in such Refunded Swing Loan. 
  
 (iii) Whenever,
at any time after the Swing Loan Lender has received from any Revolving Credit Lender such Revolving Credit Lender’s participation interest in a Refunded Swing Loan pursuant to Section 2.8(d)(ii) above, the Swing Loan Lender 
  

 56 

 receives any payment on account thereof, the Swing Loan Lender will distribute to such Revolving Credit
Lender its participation interest in such amount (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Revolving Credit Lender’s participation interest was outstanding and funded);
provided, however, that in the event that such payment received by the Swing Loan Lender is required to be returned, such Revolving Credit Lender will return to the Swing Loan Lender any portion thereof previously distributed by the Swing
Loan Lender to it as such payment is required to be returned by the Swing Loan Lender. 
  
 (iv) If any Revolving Credit Lender does not make available to the Swing Loan Lender any amounts for the purpose of refunding a Swing Loan
pursuant to Section 2.8(d)(i) above or to purchase a participation interest in a Swing Loan pursuant to Section 2.8(d)(ii) above (any such amounts payable by any Revolving Credit Lender being referred to herein as “Refunding or Participation
Amounts”) on the applicable due date with respect thereto, then the applicable Revolving Credit Lender shall pay to the Swing Loan Lender forthwith on demand such Refunding or Participation Amounts with interest thereon for each day from
and including the date such amount is made available to the Swing Loan Lender but excluding the date of payment to the Swing Loan Lender, at the Federal Funds Effective Rate. If such Lender pays such amount to the Swing Loan Lender, then such amount
shall constitute such Revolving Credit Lender’s Loan included in such refunding Borrowing or the consideration for the purchase of such participation interest, as the case may be. 
  
 (v) The failure or refusal of any Revolving Credit Lender to make available to the Swing Loan Lender at the
aforesaid time and place the amount of its Refunding or Participation Amounts (x) shall not relieve any other Revolving Credit Lender from its several obligations hereunder to make available to the Swing Loan Lender the amount of such other
Revolving Credit Lender’s Refunding or Participation Amounts and (y) shall not impose upon such other Revolving Credit Lender any liability with respect to such failure or refusal or otherwise increase the Revolving Credit Commitment of such
other Revolving Credit Lender. 
  
 (vi) Each
Revolving Credit Lender severally agrees that its obligation to make available to the Swing Loan Lender its Refunding or Participation Amount as described above shall (except to the extent expressly set forth in Section 2.8(d)(iv)) be absolute and
unconditional and shall not be affected by any circumstance, including (A) any set-off, counterclaim, recoupment, defense or other right which such Revolving Credit Lender may have against the Swing Loan Lender, the Borrower or any other Person for
any reason whatsoever, (B) the occurrence or continuance of any Default, the termination of the Revolving Credit Commitments or any other condition precedent whatsoever, (C) any adverse change in the condition (financial or otherwise) of any Credit
Party or any other Person, (D) any breach of any of the Loan Documents by any of the Credit Parties or any other Lender, or (E) any other circumstance, happening or event, whether or not similar to any of the foregoing; provided, however,
that the obligation of each Revolving Credit Lender to make available to the Swing Loan Lender its Refunding or Participation Amount in respect of any Swing Loan is subject to the condition that the Swing Loan Lender believes in good faith that all
conditions under Section 5.2 were 
  

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 satisfied at the time such Swing Loan was made; provided further that the Swing Loan Lender shall
have been deemed to have believed in good faith that such conditions were satisfied unless, prior to the making of such Swing Loan, either (1) the Swing Loan Lender shall have received notice from any other Lender or any Credit Party that a Default
existed as such time, or (2) the most recent Compliance Certificate received from the Borrower indicating that a Default has occurred and is continuing and, in either case, such Default had not been cured or waived at the time of the making of such
Swing Loan. 
  
 2.9 Mitigation Obligations; Replacement of
Lenders. 
  
 (a) If any Lender or the Issuing
Lender requests compensation under Section 2.15, or if the Borrower is required to pay any additional amount to any Lender or the Issuing Lender or any Governmental Authority for the account of any Lender or the Issuing Lender pursuant to Section
2.17, then such Lender or the Issuing Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans or Letters of Credit hereunder, or to assign its rights and obligations hereunder to another of its
offices, branches or Affiliates, if, in the judgment of such Lender or the Issuing Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15 or 2.17, as the case may be, in the future and (ii)
would not subject such Lender or the Issuing Lender to any material unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender or the Issuing Lender. The Borrower hereby agrees to pay all reasonable costs and expenses
incurred by any Lender or the Issuing Lender in connection with any such designation or assignment. 
  
 (b) If any Lender requests compensation under Section 2.15, or if the Borrower is required to pay any additional amount to any Lender or
any Governmental Authority for the account of any Lender pursuant to Section 2.17, or if any Lender defaults in its obligation to fund Loans hereunder, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 10.4), all its interests, rights and obligations under this Agreement to an assignee that
shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i) the Borrower shall have received the prior written consent of the Administrative Agent (and, if a Revolving Credit
Commitment is being assigned, the Issuing Lender), which consents shall not unreasonably be withheld or delayed, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans (and participations in LC
Disbursements), accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts)
and (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.15 or payments required to be made pursuant to Section 2.17, such assignment will result in a reduction in such compensation or payments. A Lender
shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. 

 
 (c) If a Lender refuses to consent to an amendment,
modification or waiver of this Agreement that, pursuant to Section 10.2, requires consent of 100% of the Lenders (any such 
  

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 Lender, a “Subject Lender”), so long as (i) no Event of Default shall have occurred and
be continuing and the Borrower has obtained a written commitment from another Lender or an Eligible Assignee to purchase at par (plus accrued interest, fees and other amounts payable to the Subject Lender hereunder) the Subject Lender’s Loans
and assume the Subject Lender’s Commitments and all other obligations of the Subject Lender hereunder, (ii) such Lender is not an Issuing Lender with respect to any Letters of Credit outstanding (unless all such Letters of Credit are terminated
or arrangements satisfactory to such Issuing Lender (such as a “back-to-back” letter of credit) are made), (iii) Lenders having Loans, LC Exposure and unused Commitments of at least 66-2/3% of the total Loans, LC Exposure and unused
Commitments of all Lenders have so consented and (iv) if applicable, the Subject Lender is unwilling to withdraw its refusal to consent within 2 Business Days after receipt by the Subject Lender and Administrative Agent of a written request to do so
from the Borrower, the Borrower may require the Subject Lender to assign all of its Loans and Commitments to such other Lender, Lenders, Eligible Assignee or Eligible Assignees pursuant to the provisions of Section 10.4, provided that, prior
to or concurrently with such replacement, (1) the Borrower has paid to the Subject Lender all amounts required to be paid to such Lender under this Agreement through the effective date of the assignment, (2) the processing fee required to be paid by
Section 10.4(b)(iv) shall have been paid by the Borrower or the Assignee to Administrative Agent, (3) all of the requirements for such assignment contained in Section 10.4, including the consent of Administrative Agent (if required) and the receipt
by Administrative Agent of an executed Assignment and Acceptance Agreement (which each Subject Lender shall be obligated to provide with respect to its interest in the Loans in connection with the Borrower’s exercise of its rights under this
subsection) and other supporting documents, have been fulfilled and (4) each assignee shall consent, at the time of such assignment, to each matter in respect of which such Subject Lender refused to consent. Notwithstanding the foregoing no Subject
Lender shall be obligated to assign its Loans unless such Subject Lender receives payment of the purchase price and all other amounts described in clause (i) above as a condition to such assignment. 
  
 2.10 Repayment of Loans; Evidence of Debt. 
  
 (a) The Borrower hereby unconditionally promises to pay to
the Administrative Agent for the account of each Revolving Credit Lender the then unpaid principal amount of such Lender’s Revolving Credit Loans on the Revolving Credit Maturity Date. In addition, if following any reduction in the Revolving
Credit Commitments or at any other time the aggregate principal amount of the Revolving Credit Exposure shall exceed the aggregate Revolving Credit Commitments, the Borrower shall first, to repay the Swing Loans, second, to repay the
Revolving Credit Loans, and third, to provide cover for LC Exposure as specified in Section 2.4(i), in an aggregate amount equal to such excess. If at any time the aggregate principal amount of Swing Loans outstanding exceeds the Swing Loan
Commitment, then the Borrower shall forthwith repay Swing Loans then outstanding in an amount equal to such excess, together with accrued interest. 
  
 (b) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to
such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. 
  

 59 

 (c) The Administrative Agent (or in the case of the Swing Loans, the Swing Loan Lender )
shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from
the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof. 
  
 (d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section 2.10 shall
be prima facie evidence of the existence and amounts of the obligations recorded therein absent manifest error; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in
any manner affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement. 
  
 (e) Prior to the Closing Date or if any Lender enters into a Commitment after the Closing Date on the date of such Commitment, the
Borrower shall prepare, execute and deliver to each Revolving Credit Lender, a Revolving Credit Note in the principal amount of such Lender’s Revolving Credit Commitment. Thereafter, the Loans of each Lender evidenced by each such promissory
note and interest thereon shall at all times (including after assignment pursuant to Section 10.4) be represented by one or more promissory notes in such form payable to the order of the payee named therein (or, if such promissory note is a
registered note, to such payee and its registered assigns) unless, in connection with an assignment of all or any portion of a promissory note and interest thereon, the assignee informs the Administrative Agent in writing that it does not wish that
its Loans be evidenced by promissory notes. Prior to the Closing Date, the Borrower shall prepare, execute and deliver to the Swing Loan Lender the Swing Loan Note in the principal amount of the Swing Loan Commitment. 
  
 2.11 Prepayment of Loans. 
  
 (a) Optional Prepayments. The Borrower shall have the
right at any time and from time to time to prepay any Borrowing (including any Swing Loan Borrowing) in whole or in part, without premium or penalty (other than LIBOR Loan breakage costs as provided in Section 2.16), subject to prior notice in
accordance with paragraph (d) of this Section 2.11 and provided that each such prepayment shall be in an amount that is at least equal to $500,000 or any greater multiple of $100,000 or any lesser amount remaining outstanding. Each prepayment of
Loans shall be applied in accordance with paragraph (c) of this Section 2.11. 
  
 (b) Mandatory Prepayments. The Borrower shall make prepayments of the Revolving Credit Loans hereunder (and reduce the Revolving Credit Commitments hereunder to the extent provided below in clauses (i) and
(ii)) as follows: 
  
 (i) Sale of Assets.
Without limiting the obligation of the Borrower to obtain the consent of the Required Lenders to any Disposition not otherwise permitted hereunder, the Borrower agrees, on or prior to the occurrence of any Disposition or series of Dispositions by
any Credit Party with aggregate Net Cash Payments in excess of $3,500,000 in any fiscal year, to deliver to the Administrative Agent a statement certified by a Financial Officer of the Borrower, in form and detail reasonably satisfactory to the

  

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 Administrative Agent, of the estimated amount of the Net Cash Payments of such Disposition that will (on
the date of such Disposition) be received by any Credit Party in cash, indicating on such certificate, whether the Borrower intends to reinvest such Net Cash Payments or will be prepaying the Loans, as hereinafter provided, and the Borrower will be
obligated to either (A) reinvest such Net Cash Payments within 170 days after receipt into assets used in a Permitted Line of Business pursuant to one or more Capital Expenditures permitted hereunder or Acquisitions permitted hereunder;
provided that no reinvestment of Net Cash Payments shall be permitted under this clause (A): (x) for the acquisition of fee interests in real property (excluding any real property received or acquired in any Acquisition or Relocation) in
excess of $5,000,000 made in the aggregate after the Closing Date or (y) if and to the extent that such Net Cash Payments would be required to be used to repay any Subordinated Indebtedness or Holding Company Debt or purchase or repurchase any notes
issued thereunder or (B) prepay the Loans hereunder (and provide cover for LC Exposure as specified in Section 2.4(i)), and the Revolving Credit Commitments hereunder shall be subject to automatic reduction, as follows: 
  
 (x) within one Business Day after the date of such Disposition, or on the
date (the “Reinvestment Date”) which is 170 days after such date if the Borrower had indicated on the certificate delivered as hereinabove required that it intended to reinvest the Net Cash Payments of such Disposition, in an
aggregate amount equal to 100% of such estimated or non-reinvested (as applicable) amount of such Net Cash Payments, to the extent received (and not reinvested as provided above) by any Credit Party in cash on the date of such Disposition or, if
applicable, the Reinvestment Date; and 
  
 (y) thereafter,
quarterly, on the date of the delivery by the Borrower to the Administrative Agent pursuant to Section 6.1 of the financial statements for any quarterly fiscal period or fiscal year, to the extent any Credit Party shall receive Net Cash Payments
during the quarterly fiscal period ending on the date of such financial statements in cash under deferred payment arrangements or Disposition Investments entered into or received in connection with any Disposition, an amount equal to (A) 100% of the
aggregate amount of such Net Cash Payments minus (B) any transaction expenses associated with Dispositions and not previously deducted in the determination of Net Cash Payments plus (or minus, as the case may be) (C) any other
adjustment received or paid by any Credit Party pursuant to the respective agreements giving rise to Dispositions and not previously taken into account in the determination of the Net Cash Payments. 
  
 (ii) Proceeds of Casualty Events. Upon the date 180
days following the receipt by any Credit Party of the proceeds of insurance, condemnation awards or other compensation in respect of any Casualty Event affecting any property of any Credit Party (or upon such earlier date as such Credit Party, as
the case may be, shall have determined not to repair or replace the property affected by such Casualty Event), to the extent of Net Cash Payments in excess of $250,000 per occurrence and $500,000 for all 
  

 61 

 occurrences after the Closing Date (except that such exclusions shall not apply after the occurrence and
during the continuation of an Event of Default) the Borrower shall prepay the Loans (and provide cover for LC Exposure as specified in Section 2.4(i)), and, if applicable, the Revolving Credit Commitments shall be subject to automatic reduction, in
an aggregate amount, if any, equal to 100% of the Net Cash Payments from such Casualty Event not theretofore applied or committed to be applied to the repair or replacement of such property (it being understood that if Net Cash Payments committed to
be applied are not in fact applied within 360 days after receipt thereof, then such Net Cash Payments shall be applied to the prepayment of Loans, cover for LC Exposure and, reduction of Revolving Credit Commitments as provided in this clause (ii)
at the expiration of such 360-day period), such prepayment and reduction to be effected in each case in the manner and to the extent specified in paragraph (c) of this Section 2.11. 
  
 (iii) Asset Sale Proceeds Otherwise Required to Pay Subordinated Debt. Notwithstanding anything
herein to the contrary, (A) in the event any radio or television station owned by any Credit Party is sold, as permitted by paragraph (f) of Section 7.4, during the continuance of any Event of Default, all Net Cash Payments shall be applied in the
manner specified in paragraph (c) of this Section 2.11, and (B) in the event that any of the Credit Parties shall have consummated (I) any “Asset Sale” (as defined in the Senior Subordinated Note Indenture), (II) any “Asset Sale”
(as defined in the Media Holdings Discount Notes Indenture), (III) prior to the Alta Repayment Date, any “Sale of the Company” (as defined in the Holdings Securities Purchase Documents) or (IV) any asset sale or similar term as defined in
the documents governing any Holding Company Debt incurred in accordance with Section 7.15(a)(iv) that, in any case, would not be deemed a Disposition requiring a prepayment under this Section 2.11(b), in any such case, the Credit Parties shall
nonetheless prepay the Loans to the extent that the Senior Subordinated Note Indenture, the Media Holdings Discount Notes Indenture, prior to the Alta Repayment Date, the Holdings Securities Purchase Documents or the documents governing such other
Holding Company Debt would require any prepayment or redemption of the Senior Subordinated Notes or any Holding Company Debt or warrants issued by any Holding Company pursuant to the Media Holdings Discount Notes Indenture, the Holdings Securities
Purchase Documents or the documents governing such other Holding Company Debt, respectively. Prepayments of Loans (and cover for LC Exposure) and reductions of Revolving Credit Commitments shall be effected in each case in the manner and to the
extent specified in paragraph (c) of this Section 2.11. 
  
 (iv) Proceeds of Senior Subordinated Notes. On the date of the incurrence by the Borrower of any Indebtedness under the proviso to Section 7.1(k), the Borrower shall deliver to the Administrative Agent a
statement certified by a Financial Officer, in form and detail reasonably satisfactory to the Administrative Agent, of the estimated amount of the net cash proceeds (net of all legal, underwriting and other fees, costs and expenses incurred in
connection with the incurrence of such Indebtedness) from such incurrence of such Indebtedness that will (on the date of such incurrence of Indebtedness) be received by the Borrower and the Borrower will, prepay the Loans hereunder (and provide
cover for LC Exposure as specified in Section 2.4(i)), with no reduction of the Commitments hereunder, on the date of such incurrence of Indebtedness, 
  

 62 

 in an aggregate amount equal to the lesser of (A) 100% of the net cash proceeds (net of all legal,
underwriting and other fees, costs and expenses incurred in connection with the incurrence of such Indebtedness) from such incurrence of Indebtedness received by the Borrower and (B) the sum of the aggregate amount of Loans outstanding plus LC
Exposure then in effect, and such prepayment (other than the amount provided to cover LC Exposure) shall be shared and applied ratably among the Revolving Credit Lenders in proportion to their respective Revolving Credit Commitments (with no
reduction to the Commitments). 
  
 (v)
Proceeds of Media Holdings Discount Notes. On the date of the incurrence by Media Holdings of any Indebtedness under the Media Holdings Discount Notes, the Borrower shall deliver to the Administrative Agent a statement certified by a
financial officer of the Borrower, in form and detail reasonably satisfactory to the Administrative Agent, of the estimated amount of the net cash proceeds (net of all legal, underwriting and other fees, costs and expenses incurred in connection
with the incurrence of such Indebtedness) from such incurrence of such Indebtedness that will (on the date of such incurrence of Indebtedness) be received by Media Holdings and the Borrower will prepay the Loans hereunder (and provide cover for LC
Exposure as specified in Section 2.4(i)), with no reduction of the Commitments hereunder, on the date of such incurrence of Indebtedness, in an aggregate amount equal to the lesser of (A) 100% of the net cash proceeds (net of all legal, underwriting
and other fees, costs and expenses incurred in connection with the incurrence of such Indebtedness) from such incurrence of Indebtedness received by Media Holdings or (B) the sum of the aggregate amount of Loans outstanding plus LC Exposure then in
effect, and such prepayment (other than the amount provided to cover LC Exposure) shall be shared and applied ratably among the Revolving Credit Lenders in proportion to their respective Revolving Credit Commitments (with no reduction to the
Commitments). 
  
 (vi) Qualifying IPO
Prepayment. On the Qualifying IPO Closing Date or within one Business Day thereafter, the Borrower will prepay the Loans hereunder (and provide cover for LC Exposure as specified in Section 2.4(i)), with no reduction of the Commitments
hereunder, in an aggregate amount equal to the lesser of (A) the amount described in clause (d) of the definition of Qualifying IPO Funding Transactions or (B) the sum of the aggregate amount of Loans outstanding plus LC Exposure then in effect, and
such prepayment (other than the amount provided to cover LC Exposure or to prepay the Swing Loans) shall be shared and applied ratably among the Revolving Credit Lenders in proportion to their respective Revolving Credit Commitments (with no
reduction to the Commitments). 
  
 (c)
Application. The Borrower shall have the right at any time to cause voluntary prepayments pursuant to subsection (a) of this Section to be applied to prepay the Loans, and such prepayment shall be applied ratably among the Lenders in clauses
(i) through (iii) below in proportion to their respective Commitments (with no reduction to the Commitments). Subject to the preceding sentence and subject to the prepayment made pursuant to the subsections (b)(iv), (v) and (vi) of this Section
being applied in accordance with such subsections (with no reduction to the Commitments), in the event of any optional prepayment of 
  

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 Borrowings pursuant to subsection (a) of this Section, or any mandatory prepayment of Loans pursuant to
subsection (b) of this Section, the proceeds shall be applied as follows: 
  
 (i) first, to the extent that a repayment of Swing Loans shall at such time be required pursuant to the last sentence of Section 2.10(a), to the repayment of Swing Loans, but only to such extent (with no
reduction in the Commitments); 
  
 (ii)
second, to the extent that Revolving Credit Exposure shall at such time exceed the total Revolving Credit Commitments, such prepayment shall be applied to the repayment of Revolving Credit Loans to be shared and applied ratably among the
Revolving Credit Lenders in proportion to their respective Revolving Credit Commitments (with no reduction to the Commitments); and 
  
 (iii) third, (A) the amount of any optional prepayment shall be applied first, to the repayment of Swing Loans and,
second, to the repayment of Revolving Credit Loans, and (B) the amount of any mandatory prepayment shall be applied first, to the repayment of Swing Loans and, second, to the repayment of Revolving Credit Loans and,
third, to provide cover for LC Exposure, and, in the case of clause (B), to the simultaneous permanent reduction of the Revolving Credit Commitments, in each case to be shared and applied ratably among the Revolving Credit Lenders in
proportion to their respective Revolving Credit Commitments. 
  
 (d) Notification of Prepayments. The Borrower shall notify the Administrative Agent by telephone (confirmed by telecopy) of any prepayment under Sections 2.11(a) or 2.11(b) not later than 1:00 p.m., New York
time, three Business Days before the date of prepayment, except that prepayments of Base Rate Loans pursuant to Section 2.11(a) may be made upon one Business Day’s notice. The Borrower shall notify the Administrative Agent by telephone
(confirmed by telecopy) of any prepayment of Swing Loans under Sections 2.11(a) or 2.11(b) not later than 1:00 p.m., New York time, on the date of such prepayment, which date shall be a Business Day. Each such notice shall be irrevocable and shall
specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment is given in connection with a conditional notice of termination of Revolving Credit Commitments
as contemplated by Section 2.7(c), then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.7. Promptly following receipt of any such notice relating to a Borrowing (other than a Swing Loan
Borrowing), the Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing under paragraph (a) of this Section 2.11 (other than a Swing Loan Borrowing) shall be in an amount that would be
permitted in the case of an advance of a Borrowing of the same Type as provided in Section 2.2. 
  
 (e) Prepayments Accompanied by Interest. Prepayments shall be accompanied by accrued interest to the extent required by Sections
2.8(b) or 2.13. 
  
 2.12 Fees. 
  
 (a) The Borrower agrees to pay to the Administrative Agent
for the account of each Lender a commitment fee, which shall accrue at a rate per annum equal to the percentage 
  

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 set forth below opposite the Commitment Utilization Percentage with respect to each day (the
“Commitment Fee Rate”) of the daily unused amount of the respective Revolving Credit Commitment of such Lender (excluding with respect to the Swing Loan Lender the amount of any Swing Loans) during the period from and including the
date on which the Effective Time shall occur to but excluding the date on which such Revolving Credit Commitment terminates: 
  

			
	 Commitment Utilization Percentage

	  	Commitment Fee Rate

	 Less than 50%
	  	0.500%
	 Greater than or equal to 50%
	  	0.375%

  
 provided,
however, that if the Applicable Margin for LIBOR Loans on any date would be 1.500% per annum (or 1.250% per annum after the Qualifying IPO Closing Date), as determined in accordance with the definition of “Applicable Margin”, then the
Commitment Fee Rate for such day shall be 0.375% notwithstanding the amount of the Commitment Utilization Percentage; provided further that if the Commitment Fee Rate is determined by the operation of the immediately preceding proviso then
upon delivery by the Borrower of the Compliance Certificate concurrently with the delivery of the annual financial statements required by Section 6.1(a), the Commitment Fee Rate shall be adjusted retroactively, as and when the Applicable Margin is
so adjusted, based on the calculation of the Total Leverage Ratio pursuant to such certificate and financial statements to the extent that the Total Leverage Ratio so calculated differs from the Total Leverage Ratio calculated based on the
Compliance Certificate delivered concurrently with the quarterly financial statements for the fourth fiscal quarter of the preceding fiscal year required by Section 6.1(b). In the event of a retroactive adjustment in the determination of the
Commitment Fee Rate in favor of the Borrower, the amount of commitment fee thereby refundable to the Borrower shall be applied on the date of such retroactive adjustment, to prepay the commitment fee payable on the Revolving Credit Loans on a pro
rata basis, thus permitting the Borrower to deduct such amount from its next commitment fee payment. If the retroactive adjustment is in favor of the Lenders, the amount of commitment fee due to the Lenders shall be paid in full to the
Administrative Agent within five (5) days after written notice of such adjustment is provided to the Borrower. Notwithstanding the foregoing, the Borrower shall include a request for any downward adjustment of the Commitment Fee Rate with, or as
part of, the Compliance Certificate concurrently with the delivery by the Borrower of the annual financial statements required by Section 6.1(a) and, in any event, the Administrative Agent and the Lenders shall not be required to make any downward
adjustment until a request of the Borrower shall have been received and unless such request is received within three months after the date of delivery of such Compliance Certificate. Except as set forth above, the Commitment Fee Rate shall be
calculated on each Quarterly Date for each day occurring during the fiscal quarter then ending. 
  

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 (b) Accrued commitment fees shall be payable in arrears on each Quarterly Date and on the
date such Commitments terminate, commencing on the first such date to occur after the Closing Date. All commitment fees shall be computed on the basis of a year of 365 days and shall be payable for the actual number of days elapsed (including the
first day but excluding the last day). 
  
 (c)
The Borrower agrees to pay with respect to Letters of Credit outstanding hereunder the following fees: 
  
 (i) to the Administrative Agent for the account of each Revolving Credit Lender a participation fee with respect to its participations in
Letters of Credit, which shall accrue at a rate per annum equal to the Applicable Margin then used in determining interest on Revolving Credit LIBOR Loans on the average daily amount of such Lender’s LC Exposure (excluding any portion thereof
attributable to unreimbursed LC Disbursements) during the period from and including the Closing Date to but excluding the later of the date on which such Lender’s Revolving Credit Commitment terminates and the date on which there shall no
longer be any Letters of Credit outstanding hereunder, and 
  
 (ii) to the Issuing Lender (x) a fronting fee for its own account, equal to 0.25% per annum on the face amount of each Letter of Credit, payable in arrears on each Quarterly Date, and (y) the Issuing Lender’s
standard fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder. 
  
 Accrued participation fees shall be payable in arrears on each Quarterly Date and on the date the Revolving Credit Commitments terminate, commencing on
the first such date to occur after the date hereof, provided that any such fees accruing after the date on which the Revolving Credit Commitments terminate shall be payable on demand. All participation fees and fronting fees shall be computed
on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). 
  
 (d) The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately
agreed in writing between the Borrower and the Administrative Agent. 
  
 (e) All fees payable hereunder shall be paid on the dates due, in immediately available funds. Fees paid shall not be refundable under any circumstances, absent manifest error in the determination thereof. 

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

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 (c) Notwithstanding the foregoing, (i) all amounts which are not paid when due shall bear
interest until paid in full at the Post-Default Rate and (ii) during the period when any Event of Default shall have occurred and be continuing, immediately upon the delivery of written notice from the Administrative Agent to the Borrower at the
request of the Required Lenders the principal of all Loans hereunder shall bear interest, after as well as before judgment, at the Post-Default Rate. 
  
 (d) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan; provided that (i)
interest accrued at the Post-Default Rate shall be payable on demand, (ii) in the event of any repayment or prepayment of any LIBOR Loan, accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or
prepayment, (iii) in the event of any conversion of any LIBOR Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion and (iv) all accrued interest on all
Loans shall be payable upon expiration of the Revolving Credit Commitments. 
  
 (e) All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Adjusted Base Rate at times when the Adjusted Base Rate is based on the Prime Rate
shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day). The applicable Adjusted Base Rate,
Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error. 
  
 (f) Notwithstanding anything to the contrary set forth herein, the aggregate interest, fees and other amounts required to be paid by the
Borrower to the Lenders or any Lender hereunder are hereby expressly limited so that in no contingency or event whatsoever whether by reason of acceleration of maturity of the Indebtedness evidenced hereby or otherwise, shall the amount paid or
agreed to be paid to the Lenders or any Lender for the use or the forbearance of the Indebtedness evidenced hereby exceed the maximum permissible under applicable law. If under or from any circumstances whatsoever, fulfillment of any provision
hereof or of any of the other Loan Documents at the time of performance of such provision shall be due, shall involve transcending the limit of such validity prescribed by applicable law then the obligation to be fulfilled shall automatically be
reduced to the limits of such validity and if under or from circumstances whatsoever the Lenders or any Lender should ever receive as interest any amount which would exceed the highest lawful rate, the amount of such interest that is excessive shall
be applied to the reduction of the principal balance of the Indebtedness evidenced hereby and not to the payment of interest. This provision shall control every other provision of this Agreement and all provisions of every other Loan Document.

  
 2.14 Alternate Rate of Interest. If prior to the
commencement of any Interest Period for a LIBOR Borrowing: 
  
 (a) the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as
applicable, for such Interest Period; or 
  

 67 

 (b) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO
Rate or the LIBO Rate, as applicable, for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period; 
  
 then the Administrative Agent shall give notice thereof to the Borrower and
the affected Lenders by telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and such Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any such Borrowing to, or continuation of any such Borrowing as, a LIBOR Borrowing shall be ineffective and (ii) if any Borrowing Request requests a LIBOR Borrowing, such Borrowing shall be made as a
Base Rate Borrowing. 
  
 2.15 Increased Costs. 

 
 (a) If any Change in Law shall: 
  
 (i) impose, modify or deem applicable any reserve, special
deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or the Issuing Lender; or 
  
 (ii) impose on any Lender or the Issuing Lender or the
London interbank market any other condition affecting this Agreement or LIBOR Loans made by such Lender or any Letter of Credit or participation therein; 
  
 and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any LIBOR Loan (or of maintaining its
obligation to make any such Loan) or to increase the cost to such Lender or the Issuing Lender of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or the Issuing
Lender hereunder (whether of principal, interest or otherwise), then the Borrower will pay to such Lender or the Issuing Lender, as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Lender, as the case
may be, for such additional costs incurred or reduction suffered. 
  
 (b) If any Lender or the Issuing Lender reasonably determines that any Change in Law regarding capital requirements has or would have the effect of reducing the rate of return on such Lender’s or the Issuing
Lender’s capital or on the capital of such Lender’s or the Issuing Lender’s holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters
of Credit issued the Issuing Lender, to a level below that which such Lender or the Issuing Lender or such Lender’s or the Issuing Lender’s holding company could have achieved but for such Change in Law (taking into consideration such
Lender’s or the Issuing Lender’s policies and the policies of such Lender’s or the Issuing Lender’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender or the Issuing
Lender, as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Lender, or such Lender’s or the Issuing Lender’s holding company, for any such reduction suffered. 
  

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 (c) A certificate of a Lender or the Issuing Lender setting forth the amount or amounts
necessary to compensate such Lender or the Issuing Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section 2.15 shall be delivered to the Borrower and shall be conclusive so long as it reflects a
reasonable basis for the calculation of the amounts set forth therein and does not contain any manifest error. The Borrower shall pay such Lender or the Issuing Lender the amount shown as due on any such certificate within 10 days after receipt
thereof. 
  
 (d) Failure or delay on the part of
any Lender or the Issuing Lender to demand compensation pursuant to this Section 2.15 shall not constitute a waiver of such Lender’s or the Issuing Lender’s right to demand such compensation; provided that the Borrower shall not be
required to compensate a Lender or the Issuing Lender pursuant to this Section 2.15 for any increased costs or reductions incurred more than six months prior to the date that such Lender or the Issuing Lender, as the case may be, notifies the
Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or the Issuing Lender’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to
such increased costs or reductions is (i) retroactive and (ii) occurred within such six-month period, then the six-month period referred to above may be extended to include the period of retroactive effect thereof, but in no event any period prior
to the Closing Date. 
  
 2.16 Break Funding Payments.

  
 (a) In the event of (i) the payment of any
principal of any LIBOR Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (ii) the conversion of any LIBOR Loan other than on the last day of the Interest Period applicable
thereto, (iii) the failure to borrow, convert, continue or prepay any LIBOR Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice is permitted to be revocable and is revoked in accordance herewith) or
(iv) the assignment of any LIBOR Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.9, then, in any such event, the Borrower shall compensate each Lender for the
loss, cost and expense attributable to such event; provided that if the occurrence of any event described in clause (iii) above shall occur solely as a result of any Lender’s failure to make available such Lender’s share of any
LIBOR Borrowing, such Lender shall not be entitled to compensation under this Section 2.16(a) with respect to such event. Nothing in this Section 2.16 shall be deemed to relieve any Lender from its obligation to fulfill its Commitments to the extent
required by this Agreement or to prejudice any rights that the Borrower may have against any Lender as a result of any default by such Lender hereunder. 
  
 (b) In the case of a LIBOR Loan, the loss to any Lender attributable to any such event shall be deemed to include an amount determined by
such Lender to be equal to the excess, if any, of 
  
 (i) the amount of interest that such Lender would pay for a deposit equal to the principal amount of such Loan for the period from the date of such payment, conversion, failure or assignment to the last day of the then current Interest
Period for such Loan (or, in the case of a failure to borrow, convert or continue, the duration of the Interest Period that would have resulted from such borrowing, conversion or 
  

 69 

 continuation) if the interest rate payable on such deposit were equal to the Adjusted LIBO Rate for such
Interest Period (or if such Lender does not accept deposits, then the Adjusted LIBO Rate for such Interest Period), 
  
 over 
  
 (ii) the amount of interest that such Lender would earn on such principal amount for such period if such Lender were to invest such
principal amount for such period at the interest rate that would be bid by such Lender (or an Affiliate of such Lender) for U.S. dollar deposits from other banks in the LIBOR market at the commencement of such period. 
  
 (c) A certificate of any Lender setting forth any amount or
amounts that such Lender is entitled to receive pursuant to this Section 2.16 shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within
10 days after receipt thereof. 
  
 2.17 Taxes. 

 
 (a) Any and all payments by or on account of any
obligation of the Borrower hereunder shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if the Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from such
payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 2.17) the Administrative Agent, any Lender or the Issuing
Lender (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law. 
  
 (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law. 
  
 (c) The Borrower shall indemnify the Administrative Agent, each Lender and the Issuing Lender, within 10
days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section 2.17) paid by the Administrative
Agent, such Lender or the Issuing Lender, as the case may be (and any penalties, interest and reasonable expenses arising therefrom or with respect thereto during the period prior to the Borrower making the payment demanded under this paragraph
(c)), whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender or the
Issuing Lender, or by the Administrative Agent on its own behalf or on behalf of a Lender or the Issuing Lender, shall be conclusive absent manifest error. If the Administrative Agent, a Lender or the Issuing Lender (as the case may be) shall become
aware that it is entitled to claim a refund from a Governmental Authority in respect of any Indemnified Taxes or Other Taxes as to which it has been indemnified by the Borrower, or with respect to which the Borrower has paid increased amounts
pursuant to this Section 2.17, such 
  

 70 

 Lender shall notify the Borrower of the availability of such refund claim and shall exercise reasonable
efforts (at no cost to such Lender) to make the appropriate claim to such Governmental Authority for such a refund. In the event any such Indemnified Taxes or Other Taxes paid by the Borrower to the Administrative Agent, a Lender or the Issuing
Lender are refunded to such Administrative Agent, Lender or Issuing Lender, the Lender receiving such refund shall forthwith pay over such amount to the Administrative Agent and each such refunded amount shall be (i) applied to prepay interest
payable on the Revolving Credit Loans, or to pay any other obligations of the Credit Parties then due hereunder, or (ii) in the event all obligations hereunder and under all of the Loan Documents have been indefeasibly paid in full, refunded to the
Borrower. 
  
 (d) As soon as practicable after
any payment of Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the Administrative Agent the original or a certified copy of any receipt issued by such Governmental Authority to the Borrower
evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent. 
  
 (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of a jurisdiction in which the
Borrower is located, or any treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to the Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable law or
reasonably requested by the Borrower, such properly completed and executed documentation prescribed by applicable law as will permit such payments to be made without withholding or at a reduced rate. 
  
 2.18 Payments Generally: Pro Rata Treatment; Sharing of Set-Offs.

  
 (a) The Borrower shall make each payment
required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or under Sections 2.15, 2.16 or 2.17, or otherwise) prior to 1:00 p.m., New York time, on the date when due, in immediately available
funds, without set-off or counterclaim. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest
thereon. All such payments shall be made to the Administrative Agent at such of its offices in New York as shall be notified to the relevant parties from time to time, except payments to be made directly to the Issuing Lender as expressly provided
herein and except that payments pursuant to Sections 2.15, 2.16 or 2.17 and 10.3 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any other Person
to the appropriate recipient promptly following receipt thereof, and the Borrower shall have no liability in the event timely or correct distribution of such payments is not so made. If any payment hereunder shall be due on a day that is not a
Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder shall be made in
U.S. dollars. 
  
 (b) If at any time insufficient
funds are received by and available to the Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, 
  

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 interest and fees then due hereunder under any circumstances, including during, or as a result of the
exercise by the Administrative Agent or the Lenders of remedies under the Collateral Documents and applicable law, such funds shall be applied (i) first, to pay interest and fees then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of interest and fees then due to such parties, (ii) second, to pay principal and unreimbursed LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and
unreimbursed LC Disbursements then due to such parties and (iii) third, to obligations with respect to Hedging Agreements entered into by a Lender; in each case, regardless of whether such funds are the proceeds of Collateral that is security for
less than all of the Loans. 
  
 (c) If any
Revolving Credit Lender shall obtain any payment (whether voluntary, involuntary, through the exercise of set-off or otherwise) on account of the Revolving Credit Loans made by it (other than pursuant to Sections 2.4, 2.8, 2.15 or 2.17), then, if
there is any Reimbursement Obligation outstanding in respect of which the Issuing Lender has not received payment in full from such Revolving Credit Lender pursuant to Section 2.4(e) (the amount of such Reimbursement Obligation being such Revolving
Credit Lender’s “LC Deficiency Amount”) or if there is any Swing Loan outstanding in respect of which, pursuant to Section 2.8(d)(i) or (ii), the Swing Loan Lender has not received payment in full from such Revolving Credit
Lender pursuant to Section 2.8(d)(i) or (ii) (the amount of such Swing Loan being such Revolving Credit Lender’s “SL Deficiency Amount”), such Revolving Credit Lender shall both (a) purchase a participation in such
Reimbursement Obligation in an amount equal to the amount obtained by multiplying the amount of such payment obtained by such Revolving Credit Lender (the “Payment Amount”) by a fraction, the numerator of which is such LC Deficiency
Amount and the denominator of which is the sum of such LC Deficiency Amount plus such SL Deficiency Amount (such sum being the “Aggregate Deficiency” with respect to such Payment Amount), and (b) purchase a participation in
such Swing Loan in an amount equal to the amount obtained by multiplying such Payment Amount by a fraction, the numerator of which is such SL Deficiency and the denominator of which is such Aggregate Deficiency. If, after giving effect to the
foregoing, any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans (or participations in LC Disbursements) (other than pursuant to Sections 2.4,
2.8, 2.15 or 2.17), resulting in such Lender receiving payment of a greater proportion of the aggregate principal amount of its Loans (and participations in LC Disbursements) and accrued interest thereon than the proportion of such amounts received
by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans (and LC Disbursements) of the other Lenders to the extent necessary so that the benefit of such payments shall
be shared by all the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans (and participations in LC Disbursements); provided that (i) if any such participations are purchased
and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be
construed to apply to any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans (or participations in LC Disbursements) to any assignee or participant, other than to any Credit Party or
any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under 
  

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 applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may
exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation. 
  
 (d) Unless the Administrative Agent shall have received
notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Lender entitled thereto (the “Applicable Recipient”) hereunder that the Borrower will
not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Applicable Recipient the amount due. In such event,
if the Borrower has not in fact made such payment, then each Applicable Recipient severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Applicable Recipient with interest thereon, for each day
from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the Federal Funds Effective Rate. 
  
 (e) If any Lender shall fail to make any payment required to be made by it pursuant to Section 2.4(d),
2.4(e), 2.5(b), 2.8(d)(i) or (ii) or 2.18(d), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender to
satisfy such Lender’s obligations under such Section until all such unsatisfied obligations are fully paid. 
  
 (f) Except to the extent otherwise provided herein: (i) each Borrowing of Revolving Credit Loans from the Lenders under Section 2.1 shall
be made from the Lenders, each payment of commitment fee under Section 2.12 in respect of Commitments shall be made for the account of the Lenders, and each termination or reduction of the amount of the Commitments under Section 2.3 shall be applied
to the Commitments of the Lenders, pro rata according to the amounts of their respective Commitments; (ii) LIBOR Loans having the same Interest Period shall be allocated pro rata among the Lenders according to the amounts of their Commitments (in
the case of the making of Loans) or their Loans (in the case of conversions and continuations of Loans); (iii) each payment or prepayment by the Borrower of principal of Loans shall be made for the account of the Lenders pro rata in accordance with
the respective unpaid principal amounts of the Loans held by such Lenders, except as otherwise set forth in Section 2.11(c); (iv) each payment by the Borrower of interest on Loans shall be made for the account of the Lenders pro rata in accordance
with the amounts of interest on such Loans then due and payable to the Lenders; and (v) each payment by the Borrower of participation fees in respect of Letters of Credit shall be made for the account of the Revolving Credit Lenders pro rata in
accordance with the amount of participation fees then due and payable to the Revolving Credit Lenders. 
  

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 ARTICLE 3 
  

Guarantee by Guarantors 
  
 3.1 The Guarantee. Each Guarantor hereby jointly and severally guarantees to each Lender, the Issuing Lender and the Administrative Agent and their
respective successors and assigns the prompt payment and performance in full when due (whether at stated maturity, by acceleration or otherwise) of the principal of and interest on the Loans made by the Lenders to the Borrower, all LC Disbursements
and all other amounts from time to time owing to the Lenders, the Issuing Lender or the Administrative Agent by the Borrower hereunder or under any other Loan Document, and all other obligations of the Borrower to any Lender hereunder or to any
Lender or the affiliate of any Lender under any Hedging Agreement, in each case strictly in accordance with the terms thereof (such obligations being herein collectively called the “Guaranteed Obligations”). Each Guarantor hereby
further agrees that if the Borrower shall fail to pay in full when due (whether at stated maturity, by acceleration or otherwise) any of the Guaranteed Obligations, each Guarantor will promptly pay the same, without any demand or notice whatsoever,
and that in the case of any extension of time of payment or renewal of any of the Guaranteed Obligations, the same will be promptly paid in full when due (whether at extended maturity, by acceleration or otherwise) in accordance with the terms of
such extension or renewal. 
  
 3.2 Obligations
Unconditional. The obligations of each Guarantor under Section 3.1 are absolute and unconditional irrespective of the value, genuineness, validity, regularity or enforceability of this Agreement, the other Loan Documents or any other agreement
or instrument referred to herein or therein, or any substitution, release or exchange of any other guarantee of or security for any of the Guaranteed Obligations, and, to the fullest extent permitted by applicable law, irrespective of any other
circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it being the intent of this Section 3.2 that the obligations of the Guarantors hereunder shall be absolute and unconditional
under any and all circumstances. Without limiting the generality of the foregoing, it is agreed that the occurrence of any one or more of the following shall not alter or impair the liability of the Guarantors hereunder which shall remain absolute
and unconditional as described above: 
  
 (i) at
any time or from time to time, without notice to such Guarantors, the time for any performance of or compliance with any of the Guaranteed Obligations shall be extended, or such performance or compliance shall be waived; 
  
 (ii) any of the acts mentioned in any of the provisions
hereof or of the other Loan Documents or any other agreement or instrument referred to herein or therein shall be done or omitted; 
  
 (iii) the maturity of any of the Guaranteed Obligations shall be accelerated, or any of the Guaranteed Obligations shall be modified,
supplemented or amended in any respect, or any right hereunder or under the other Loan Documents or any other agreement or instrument referred to herein or therein shall be waived or any 
  

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 other guarantee of any of the Guaranteed Obligations or any security therefor shall be released or
exchanged in whole or in part or otherwise dealt with; or 
  
 (iv) any lien or security interest granted to, or in favor of, the Administrative Agent, the Issuing Lender or any Lender or Lenders as security for any of the Guaranteed Obligations shall fail to be perfected or any
Collateral is released or otherwise compromised or liquidated for less than fair value. 
  
 The Guarantors hereby expressly waive diligence, presentment, demand of payment, protest and all notices whatsoever (except as expressly required hereby) and any requirement that the Administrative Agent, the Issuing Lender or any Lender
exhaust any right, power or remedy or proceed against the Borrower hereunder or under the other Loan Documents or any other agreement or instrument referred to herein or therein, or against any other Person under any other guarantee of, or security
for, any of the Guaranteed Obligations. 
  
 3.3
Reinstatement. The obligations of each Guarantor under this Article 3 shall be automatically reinstated if and to the extent that for any reason any payment by or on behalf of the Borrower in respect of the Guaranteed Obligations is rescinded
or must be otherwise restored by any holder of any of the Guaranteed Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and each of the Guarantors agrees that it will indemnify the Administrative Agent,
the Issuing Lender and each Lender on demand for all reasonable costs and expenses (including reasonable fees and expenses of counsel) incurred by the Administrative Agent, any Lender or the Issuing Lender in connection with such rescission or
restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law. 
  
 3.4 Subrogation. Until such time as the Guaranteed Obligations shall
have been indefeasibly paid in full, each Guarantor hereby waives all rights of subrogation or contribution, whether arising by contract or operation of law (including any such right arising under the Federal Bankruptcy Code of 1978, as amended) or
otherwise by reason of any payment by it pursuant to the provisions of this Article 3. 
  
 3.5 Remedies. Each Guarantor agrees that, as between such Guarantor and the Lenders, the obligations of the Borrower hereunder may be declared to be forthwith due and payable as provided in Section 8.1 or
Section 2.4(i), as applicable (and shall be deemed to have become automatically due and payable in the circumstances provided in Section 8.1 or Section 2.4(i), as applicable) for purposes of Section 3.1 notwithstanding any stay, injunction or other
prohibition preventing such declaration (or such obligations from becoming automatically due and payable) as against the Borrower and that, in the event of such declaration (or such obligations being deemed to have become automatically due and
payable), such obligations (whether or not due and payable by the Borrower) shall forthwith become due and payable by such Guarantor for purposes of Section 3.1. 
  
 3.6 Continuing Guarantee. The guarantee in this Article 3 is a continuing irrevocable guarantee of payment and
performance, and shall apply to all Guaranteed Obligations prior to the indefeasible payment in full of Borrower’s obligations hereunder. 
  

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 3.7 Rights of Contribution. The Guarantors hereby agree, as between themselves, that if any
Guarantor shall become an Excess Funding Guarantor (as defined below) by reason of the payment by such Guarantor of any Guaranteed Obligations, each other Guarantor shall, on demand of such Excess Funding Guarantor (but subject to the next
sentence), pay to such Excess Funding Guarantor an amount equal to such Guarantor’s Pro Rata Share (as defined below and determined, for this purpose, without reference to the properties, debts and liabilities of such Excess Funding Guarantor)
of the Excess Payment (as defined below) in respect of such Guaranteed Obligations. The payment obligation of a Guarantor to any Excess Funding Guarantor under this Section 3.7 shall be subordinate and subject in right of payment to the prior
payment in full of the obligations of such Guarantor under the other provisions of this Article 3 and such Excess Funding Guarantor shall not exercise any right or remedy with respect to such excess until payment and satisfaction in full of all of
such obligations. 
  
 For purposes of this Section 3.7, (i)
“Excess Funding Guarantor” means, in respect of any Guaranteed Obligations, a Guarantor that has paid an amount in excess of its Pro Rata Share of such Guaranteed Obligations, (ii) “Excess Payment” means, in respect
of any Guaranteed Obligations, the amount paid by an Excess Funding Guarantor in excess of its Pro Rata Share of such Guaranteed Obligations and (iii) “Pro Rata Share” means, for any Guarantor, the ratio (expressed as a percentage)
of (x) the amount by which the aggregate present fair saleable value of all properties of such Guarantor (excluding any shares of stock of, or ownership interest in, any other Guarantor) exceeds the amount of all the debts and liabilities of such
Guarantor (including contingent, subordinated, unmatured and unliquidated liabilities, but excluding the obligations of such Guarantor hereunder and any obligations of any other Guarantor that have been Guaranteed by such Guarantor) to (y) the
amount by which the aggregate fair saleable value of all properties of all of the Credit Parties exceeds the amount of all the debts and liabilities (including contingent, subordinated, unmatured and unliquidated liabilities, but excluding the
obligations of the Borrower and the Guarantors hereunder and under the other Loan Documents) of all of the Credit Parties, determined (A) with respect to any Guarantor that is a party hereto at the Effective Time, as of the Effective Time, and (B)
with respect to any other Guarantor, as of the date such Guarantor becomes a Guarantor hereunder. 
  
 3.8 General Limitation on Guarantee Obligations. In any action or proceeding involving any state or non-U.S. corporate law, or any state or Federal
or non-U.S. bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally, if the obligations of any Guarantor under Section 3.1 would otherwise, taking into account the provisions of Section 3.7, be held or
determined to be void, invalid or unenforceable, or subordinated to the claims of any other creditors, on account of the amount of its liability under Section 3.1, then, notwithstanding any other provision hereof to the contrary, the amount of such
liability shall, without any further action by such Guarantor, any Lender, Agent or other Person, be automatically limited and reduced to the highest amount that is valid and enforceable and not subordinated to the claims of other creditors as
determined in such action or proceeding. 
  
 3.9 Waivers.
As used in this paragraph, any reference to “the principal” includes the Borrower, and any reference to “the creditor” includes the Administrative Agent and each of the Lenders. In accordance with Section 2856 of the California
Civil Code (a) each Guarantor waives any and all rights and defenses available to such Guarantor by reason of Sections 2787 to 2855, inclusive, 2899 and 3433 of the California Civil Code, including without limitation any 
  

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 and all rights or defenses any Guarantor may have by reason of protection afforded to the principal with respect to any
of the Guaranteed Obligations, or to any other guarantor of any of the Guaranteed Obligations with respect to any of such guarantor’s obligations under its guaranty, in either case pursuant to the antideficiency or other laws of the State of
California limiting or discharging the principal’s indebtedness or such guarantor’s obligations, including without limitation Section 580a, 580b, 580d, or 726 of the California Code of Civil Procedure; and (b) each Guarantor waives all
rights and defenses arising out of an election of remedies by the creditor, even though that election of remedies, such as a nonjudicial foreclosure with respect to security for a Guaranteed Obligation, has destroyed Guarantor’s rights of
subrogation and reimbursement against the principal by the operation of Section 580d of the Code of Civil Procedure or otherwise; and even though that election of remedies by the creditor, such as nonjudicial foreclosure with respect to security for
an obligation of any other guarantor of any of the Guaranteed Obligations, has destroyed Guarantor’s rights of contribution against such other guarantor. No other provision of this Guaranty shall be construed as limiting the generality of any
of the covenants and waivers set forth in this paragraph. As provided below, this Agreement shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of New York. This paragraph is included solely out of an
abundance of caution, and shall not be construed to mean that any of the above-referenced provisions of California law are in any way applicable to the provisions of this Article 3 or to any of the Guaranteed Obligations. 
  
 ARTICLE 4 
  
 Representations and Warranties 
  
 Each of the Credit Parties and Empire Burbank represents and warrants to the
Lenders, the Issuing Lender and the Administrative Agent, as to itself and each other Credit Party and Empire Burbank that: 
  
 4.1 Organization; Powers. Each Credit Party and Empire Burbank has been duly formed or organized and is validly existing under the laws of
formations or its jurisdiction of organization. Each Credit Party and Empire Burbank has all requisite organizational power and authority to carry on its business as now conducted and is qualified to do business in, and is in good standing in, every
jurisdiction where such qualification is required, except where the failure to have such power or authority or to be so qualified or in good standing, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse
Effect. 
  
 4.2 Authorization; Enforceability. The
Transactions are within the organizational power and authority of each Credit Party and Empire Burbank to the extent such Credit Party or Empire Burbank, as applicable, is a party to the Basic Documents and have been duly authorized by all necessary
organizational action on the part of such Credit Party or Empire Burbank, as applicable, to the extent such Credit Party or Empire Burbank, as applicable, is a party thereto. This Agreement, the Collateral Documents and all other Basic Documents
have been duly authorized, executed and delivered by each Credit Party or Empire Burbank, that is a party thereto and constitute legal, valid and binding obligations of such Credit Party or Empire Burbank, as applicable, enforceable in accordance
with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ 
  

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 rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity
or at law. 
  
 4.3 Governmental Approvals; No Conflicts. As
of the Closing Date except as set forth on Schedule 4.3, the Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, (b) will not violate any applicable law,
policy or regulation or the organizational documents of any Credit Party or Empire Burbank that is a party to the Basic Documents or any order of any Governmental Authority where any violation would have a Material Adverse Effect, (c) will not
violate or result in a default under any material indenture, agreement or other instrument binding upon any Credit Party or Empire Burbank, or any assets, or give rise to a right thereunder to require any payment to be made by any Credit Party or
Empire Burbank, where any such violation or default or right to payment would have a Material Adverse Effect, and (d) except for the Liens created by the Collateral Documents, will not result in the creation or imposition of any material Lien on any
asset of any Credit Party or Empire Burbank. Except as set forth therein, all consents, approvals, registrations, filings and other actions required as set forth in such Schedule 4.3 have been obtained on or before the Closing Date.

  
 4.4 Financial Condition; No Material Adverse Change.

  
 (a) The Borrower has heretofore delivered to
the Lenders the following financial statements: 
  
 (i) the audited consolidated balance sheet, statements of earnings, statements of stockholders’ equity, statements of cash flows and notes to consolidated financial statements of Holdings and the applicable Credit Parties as of and for
fiscal years ended December 31, 2001, 2002 and 2003 respectively, accompanied by an opinion of Ernst & Young, LLP independent public accountants; 
  
 (ii) the unaudited consolidated balance sheet and income statement to consolidated financial statements of Holdings and the applicable
Credit Parties as of and for the three-month period ended March 31, 2004, certified by a Financial Officer of Holdings that such financial statements fairly present in all material respects (subject, in the case of such balance sheet as at March 31,
2004 and such statements of income and cash flows for the three months then ended, to normal year-end audit adjustments) the consolidated financial condition of Holdings and the applicable Credit Parties as at such dates and the consolidated results
of the operations of Holdings and the applicable Credit Parties for the periods ended on such dates and that all such financial statements, including the related schedules thereto have been prepared in accordance with GAAP applied consistently
throughout the periods involved; and 
  
 (iii)
projected statements of cash flow for the Credit Parties for fiscal years 2004 through 2008. 
  
 Such financial statements (except for any portion thereof which represents a projection or assumption as to future events of the date of such statement, including any financial projections and pro formas) in the
Borrower’s opinion present fairly, in all material respects, the respective 
  

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 actual consolidated financial position and results of operations and cash flows of the respective
entities as of such respective dates and for such periods in accordance with GAAP, subject to year-end audit adjustments and the absence of footnotes in the case of such unaudited statements. Such pro forma statements were prepared by the Credit
Parties in good faith and incorporate adjustments that were reasonable when made. Such projections were prepared by the Credit Parties in good faith and were based on assumptions that the Credit Parties believed were reasonable when made.

  
 (b) Since March 31, 2004, there has been no
change in the business, assets, operations or condition, financial or otherwise, of the Credit Parties taken as a whole from that set forth in the March 31, 2004 unaudited consolidated financial statements referred to in clause (ii) of paragraph (a)
above that has a Material Adverse Effect. 
  
 (c)
None of the Credit Parties has on the date hereof any contingent liabilities, liabilities for taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments in each case that are material in
relation to the Credit Parties taken as a whole, except as referred to or reflected or provided for in the balance sheets as at the end of their respective fiscal years ended in 2002 and 2003 and as at the end of the fiscal quarter ended on March
31, 2004, referred to above, as provided for in Schedule 4.4, or as otherwise expressly provided in this Agreement, or as referred to or reflected or provided for in the financial statements described in this Section 4.4. 
  
 4.5 Properties. 
  
 (a) Each of the Credit Parties has good and marketable title
to, or valid, subsisting and enforceable leasehold interests in, all its Property material to its business, except where the failure to have such good and marketable title or leasehold or license interests could not reasonably be expected to have a
Material Adverse Effect. 
  
 (b) As of the
Closing Date, except as disclosed on Schedule 4.5(b), each of the Credit Parties owns, or is licensed to use, all trademarks, service marks, trade names, copyrights, patents and other intellectual property material to its business (including
the call letters with respect to each Broadcast Station) (excluding rights related to software programs and copyrights with respect to the content of news and other programming broadcast or disseminated as part of the Permitted Lines of Business) as
currently conducted except for those failure to own or license which would not reasonably be expected to have a Material Adverse Effect (the “Proprietary Rights”), and, to the Borrower’s knowledge, the use thereof by the Credit
Parties does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect. As of the Closing Date, all such
trademark applications and registrations, trademarks, registered copyrights, patents and patent applications, together with the domain names, web sites, and web site registrations which are owned by or licensed to any Credit Party are listed on
Schedule 4.5(b) (collectively “Registered Rights”). As of the Closing Date, except as set forth on Schedule 4.5, all of the Registered Rights have been duly registered in, filed in or issued by the PTO, the United
States Register of Copyrights, a domain name registrar or other corresponding offices of other jurisdictions as identified on such schedule, and have been properly maintained and renewed in accordance with all applicable provisions of law and

  

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 administrative regulations in the United States or in each such other jurisdiction, as applicable, except
where the failure to so register, file, maintain or renew would not reasonably be expected to result in a Material Adverse Effect. 
  
 (c) As of the Closing Date, Schedule 4.5(c) contains a true, accurate and complete list of (i) all owned Real Property Assets and
(ii) all material leases, subleases or assignments of leases (together with all material amendments, modifications, supplements, renewals or extensions of any thereof) affecting each Real Property Asset of any Credit Party, regardless of whether
such Credit Party is the landlord or tenant (whether directly or as an assignee or successor in interest) under such lease, sublease or assignment. As of the Closing Date, to the Borrower’s knowledge except as specified in clause (ii) of
Schedule 4.5(c), each agreement listed in clause (ii) of the immediately preceding sentence is in full force and effect and, to the Borrower’s knowledge, no material default has occurred and is continuing thereunder, and each such
agreement constitutes the legal, valid and binding obligation of each applicable Credit Party, enforceable against such Credit Party in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles. 
  
 4.6 Litigation and Environmental Matters. 
  
 (a) There are no actions, suits or proceedings by or before any arbitrator or Governmental Authority which have been filed against or, to
the Borrower’s knowledge, threatened against or affecting the Credit Parties (i) as to which there is a reasonable possibility of an adverse determination and that, if adversely determined, could reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect (other than the Disclosed Matters) or (ii) that involve any of the Loan Documents. 
  
 (b) Except for the Disclosed Matters and except with respect to any other matters that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, none of the Credit Parties (i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any
Environmental Law, (ii) to the Borrower’s knowledge, has become subject to any Environmental Liability, (iii) has received notice of any claim with respect to any Environmental Liability or any inquiry, allegation, notice or other communication
from any Governmental Authority which is currently outstanding or pending concerning its compliance with any Environmental Law or (iv) knows of any basis for any Environmental Liability. 
  
 (c) Since the date of this Agreement, there has been no change in the status of (i) the Disclosed Matters
(excluding the Disclosed Matters related to potential Environmental Liabilities) or (ii) to the Borrower’s knowledge, the Disclosed Matters related to potential Environmental Liabilities, that, in each case, individually or in the aggregate,
has resulted in, or materially increased the likelihood of, a Material Adverse Effect. 
  
 4.7 Compliance with Laws and Agreements. Except as set forth on Schedule 4.7, each of the Credit Parties is in compliance with all laws, regulations, policies and orders of any Governmental Authority
applicable to it or its property and all indentures, agreements and other 
  

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 instruments binding upon it or its property, except where the failure to do so, individually or in the aggregate, could
not reasonably be expected to result in a Material Adverse Effect. 
  
 4.8 Investment and Holding Company Status. No Credit Party is (a) an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940, as amended, (b) a “holding company” as
defined in, or subject to regulation under, the Public Utility Holding Company Act of 1935, as amended or (c) a “bank holding company” as defined in, or subject to regulation under, the Bank Holding Company Act of 1956, as amended.

  
 4.9 Taxes. Except as set forth on Schedule 4.9,
each of the Credit Parties has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good
faith by appropriate proceedings and for which such Credit Party has set aside on its books adequate reserves with respect thereto in accordance with GAAP or (b) to the extent that the failure to do so could not reasonably be expected to result in a
Material Adverse Effect. 
  
 4.10 ERISA. No ERISA Event has
occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect. 
  
 4.11 Disclosure. As of the Closing Date, the management structure of
the Credit Parties is set forth on Schedule 4.11. The information, reports, financial statements, exhibits and schedules furnished in writing by or on behalf of the Credit Parties or the Holding Companies to the Administrative Agent or any
Lender, both in connection with the negotiation, preparation or delivery of this Agreement and the other Basic Documents or included herein or therein or delivered pursuant hereto or thereto, prepared by the Administrative Agent in reliance on such
information, when taken as a whole do not contain any untrue statement of material fact or omit to state any material fact necessary to make the statements herein or therein, in light of the circumstances under which they were made, not misleading
in any material respect at the time made or delivered. 
  
 4.12
Ownership and Capitalization. As of the Closing Date, the capital structure and ownership of the Credit Parties and the Holding Companies is correctly described in Schedule 4.12. As of Closing Date after giving effect to the
Transactions occurring on or prior to such date, the authorized, issued and outstanding capital stock of, and other equity interests in, each of the Credit Parties and the Holding Companies consists of the stock and interests described on Schedule
4.12, in each case all of which is duly and validly issued and outstanding, fully paid and nonassessable. As of Closing Date after giving effect to the Transactions occurring on or prior to such date, except as set forth in Schedule 4.12, (x)
there are no outstanding Equity Rights with respect to any Credit Party and (y) there are no outstanding obligations of any Credit Party to repurchase, redeem, or otherwise acquire any shares of capital stock of or other interests in any Credit
Party nor are there any outstanding obligations of any Credit Party to make payments to any Person, such as “phantom stock” payments, where the amount thereof is calculated with reference to the fair market value or equity value of any
Credit Party. 
  

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 4.13 Subsidiaries. 
  
 (a) As of the Closing Date after giving effect to the Transactions occurring on or prior to such date, set
forth in Schedule 4.12 is a complete and correct list of all of the Subsidiaries of the Credit Parties, after giving effect to the Transactions occurring on or prior to such date, together with, for each such Subsidiary, (i) the jurisdiction
of organization of such Subsidiary, (ii) each Person holding ownership interests in such Subsidiary and (iii) the nature of the ownership interests held by each such Person and the percentage of ownership of such Subsidiary represented by such
ownership interests. Except as disclosed in Schedule 4.12, (x) each Credit Party and its respective Subsidiaries owns, free and clear of Liens (other than Liens created pursuant to the Collateral Documents), and has the unencumbered right to
vote, all outstanding ownership interests in each Person shown to be held by it in Schedule 4.12, (y) all of the issued and outstanding capital stock of each such Person organized as a corporation is validly issued, fully paid and
nonassessable and (z) there are no outstanding Equity Rights with respect to such Person. 
  
 (b) Except as set forth in Schedule 7.8 and except for the Senior Subordinated Note Indenture and the documents related thereto,
the Media Holdings Discount Notes Indenture and the documents related thereto, and the Holdings Securities Purchase Documents, none of the Credit Parties is subject to any indenture, agreement, instrument or other arrangement containing any
provision of the type described in Section 7.8, other than any such provision the effect of which has been unconditionally, irrevocably and permanently waived so long as any portion of the Loans or any Commitment is outstanding. 
  
 4.14 Material Indebtedness, Liens and Agreements. 
  
 (a) As of the Closing Date, Schedule 4.14(a) is a
complete and correct list of all Material Indebtedness (other than intercompany loans between or among the Credit Parties and/or to or from Empire Burbank) to, or guarantee of any Material Indebtedness by, any Credit Party or Holding Company, and,
to the extent specified therein, the aggregate principal or face amount outstanding or that may become outstanding with respect thereto is correctly described in Schedule 4.14(a). 
  
 (b) As of the Closing Date, Schedule 4.14(b) is a complete and correct list of each Lien securing
Material Indebtedness of any Credit Party and covering any property of the Credit Parties, and the aggregate Material Indebtedness secured (or which may be secured) by such Liens in the aggregate and the Property covered by each such Lien is
correctly described in the appropriate part of Schedule 4.14(b). 
  
 (c) As of the Closing Date, Schedule 4.14(c) is a complete and correct list of each Material Property License and material equipment lease to which any Credit Party is a party with an indication of whether such
license or lease requires the consent of the licensor or lessor for it to be assignable to the Administrative Agent pursuant to the Collateral Documents and whether such consent has been obtained. 
  
 (d) As of the Closing Date, Schedule 4.14(d) is a
complete and correct list of all programming, advertising, management, network affiliation, engineering, research, service 
  

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 billing, purchase, “LMA”, co-location and other contracts to which any Credit Party is a party
for which breach, nonperformance, cancellation or failure to renew would have a Material Adverse Effect. 
  
 True and complete copies of each agreement listed on the appropriate part of Schedule 4.14 have been delivered to the Administrative Agent or
Special Counsel, together with all amendments, waivers and other modifications thereto. As of the Closing Date, all such agreements are valid, subsisting, in full force and effect, are currently binding and after the Transactions occurring on or
prior to such date will continue to be binding upon each Credit Party that is a party thereto and, to the Credit Parties’ knowledge, binding upon the other parties thereto in accordance with their terms, except where the failure to be so valid,
subsisting, in full force and effect or binding would not reasonably be expected to have a Material Adverse Effect. As of the Closing Date, the Credit Parties are not in default under any such agreements, except where such default would not
reasonably be expected to have a Material Adverse Effect. As of the Closing Date, the licenses and other agreements listed on Schedule 4.14 collectively entitle the Credit Parties to use all Proprietary Rights material to the conduct of the
business of the Credit Parties as presently conducted and as proposed to be conducted after the Transactions occurring on or prior to such date, except where the failure to be so entitled would not reasonably be expected to have a Material Adverse
Effect. 
  
 4.15 Permits and Licenses. 
  
 (a) Each of the Credit Parties has, and is in all material
respects in compliance with respect to, all licenses, permits, approvals and authorizations of Governmental Authorities necessary to conduct its business as presently conducted and to own or lease and operate its properties excluding FCC Licenses.

  
 (b) As of the Closing Date, Schedule
4.15 is a complete and correct list of each Material FCC License granted or assigned to any Credit Party, including those under which the Credit Parties have the right to operate their respective television and radio broadcast stations covered
thereby (“Broadcast Stations”) (and includes, with respect to each such FCC License, the city of license and the call letters, frequency and expiration date thereof). As of the Closing Date, the FCC Licenses listed on Schedule
4.15 with respect to any Broadcast Station owned or operated by the Credit Parties include all material authorizations, licenses and permits issued by the FCC (other than auxiliary services licenses) that are required or necessary for the
operation of such Broadcast Station and conduct of the business of the Credit Parties with respect to such Broadcast Station, as now conducted or proposed to be conducted. As of the Closing Date, the FCC Licenses listed on Schedule 4.15 are
validly issued and in full force and effect. As of the Closing Date, the Credit Parties have fulfilled all of their obligations with respect thereto (including the filing of all registrations, applications, reports, and other documents as required
by the FCC or other Governmental Authority), and have paid all fees and other amounts required to be paid by them under all applicable FCC Regulations, in each case, except where the failure to do so would not result in termination, suspension or
material diminution in scope of a Material FCC License. To the Borrower’s knowledge, no rights of any Credit Party under any Material FCC License conflict with the valid rights of any other Person in any material respect. To the Borrower’s
knowledge, no event has occurred that would be reasonably likely to result in the revocation, termination or material adverse modification of any Material FCC License or affect 
  

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 materially adversely any rights of the Credit Parties thereunder, and none of the Credit Parties has any
reason to believe that any Material FCC License will not be renewed in the ordinary course of business other than FCC Licenses for analog television stations which may expire upon completion of conversion to digital television or loss of any license
solely as a result from a Relocation. 
  
 4.16 Federal Reserve
Regulations. No Credit Party is engaged principally or as one of its important activities in the business of extending credit for the purpose of purchasing or carrying margin stock (as defined in Regulation U of the Board). The making of the
Loans hereunder, the use of the proceeds thereof or of any Letter of Credit as contemplated hereby and the security arrangements contemplated by the Loan Documents will not violate or be inconsistent with any of the provisions of Regulation U, T or
X of the Board of Governors of the Federal Reserve System. 
  
 4.17 Burdensome Restrictions. No Credit Party is a party to or otherwise bound by any indenture, loan or credit agreement or any lease or other agreement or instrument or subject to any charter, corporate or partnership restriction
which has a currently operative provision which would have a Material Adverse Effect. 
  
 4.18 Force Majeure. Since the date of the most recent financial statements referred to in Section 4.4(a)(ii) to the Closing Date, the business, properties and other assets of the Credit Parties have not, as the
result of any fire or other casualty, strike, lockout or other labor trouble, embargo, sabotage, confiscation, contamination, riot, civil disturbance, activity of armed forces or act of God, suffered a Material Adverse Effect. 
  
 4.19 Labor and Employment Matters. 
  
 (a) As of the Closing Date, except as set forth on
Schedule 4.19, (A) no employee of any Credit Party is represented by a labor union, no labor union has been certified or recognized as a representative of any such employee; (B) there are no pending or, to the Borrower’s knowledge,
threatened representation campaigns, elections or proceedings; (C) no Credit Party has any knowledge of any strikes, slowdowns or work stoppages of any kind, or threats thereof; and (D) no Credit Party has engaged in, admitted committing or been
held to have committed any unfair labor practice, in each case except where such occurrence would not reasonably be expected to have a Material Adverse Effect. 
  

(b) As of the Closing Date, Schedule 4.19 sets forth all material employment contracts for members of senior management of the
Credit Parties under which any Credit Party thereof has any obligations to provide compensation or remuneration of any kind (other than obligations to make current wage or salary payments that are terminable at will without notice). 
  
 (c) Except as set forth on Schedule 4.19, each Credit
Party has at all times complied in all material respects, and are in material compliance with, all applicable laws, rules and regulations respecting employment, wages, hours, compensation, benefits, and payment and withholding of taxes in connection
with employment, except where the failure to so comply would not reasonably be expected to have a Material Adverse Effect. 
  

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 (d) Except as set forth on Schedule 4.19, except as could not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect, the Credit Parties have at all times since March 31, 2004 complied with, and are in compliance with, all applicable laws, rules and regulations respecting occupational
health and safety, whether now existing or subsequently amended or enacted, including the Occupational Safety & Health Act of 1970, 29 U.S.C. Section 651 et seq. and the state analogies thereto, all as amended or superseded from time to time,
and any common law doctrine relating to worker health and safety. 
  
 4.20 Subchapter S Election and QSSS Election. As of the Closing Date, Holdings has made an S Corporation election in accordance with Code Section 1362 and an election to treat Media Holdings and the Borrower as a qualified subchapter
S subsidiaries have been made. As of the Closing Date, Holdings has not elected, pursuant to California Revenue and Taxation Code Section 23801, not to be treated as an S Corporation for California income tax purposes. As of the Closing Date, none
of Holdings’ individual shareholders are nonresidents of the State of California. 
  
 4.21 Senior Indebtedness. The obligations of the Credit Parties hereunder and under the other Loan Documents constitute “Senior Debt” and “Designated Senior Debt” under and as defined in the
Senior Subordinated Note Indenture. The provisions of Article 10 of the Senior Subordinated Note Indenture are enforceable by each Lender and each other holder of any obligations of the Credit Parties under the Loan Documents in accordance with
their terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles. 
  
 4.22 Patriot Act. Each Credit Party is in compliance, in all material
respects, with the (i) the Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or
executive order relating thereto, and (ii) the Uniting And Strengthening America By Providing Appropriate Tools Required To Intercept And Obstruct Terrorism (USA Patriot Act of 2001, Title III of Pub. L. 107-56 (signed into law October 26, 2001),
the “Patriot Act”). 
  
 ARTICLE 5

  
 Conditions 
  
 5.1 Effective Time. The obligations of the Lenders to make Revolving
Credit Loans, and of the Issuing Lender to issue Letters of Credit, hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 10.2): 
  
 (a) Counterparts of Agreement. The Administrative
Agent shall have received from each party hereto either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include telecopy transmission of a signed
signature page of this Agreement) that such party has signed a counterpart of this Agreement. 
  

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 (b) Notes. The Administrative Agent shall have received a duly completed and
executed Revolving Credit Note for each Lender, unless waived by the Lender which would otherwise receive any such note. 
  
 (c) Organizational Structure. The organizational structure, capitalization and ownership of the Credit Parties, after giving effect
to the Transactions occurring on or prior to the Closing Date, shall be as set forth on Schedules 4.11 and 4.12. The Administrative Agent shall have had the opportunity to review, and shall be reasonably satisfied with, the Credit
Parties’ state and federal tax assumptions and the capital, organization and structure of the Credit Parties, after giving effect to the Transactions occurring on or prior to the Closing Date. 
  
 (d) Existence and Good Standing. The Administrative
Agent shall have received such documents and certificates as the Administrative Agent or Special Counsel may reasonably request relating to the organization, existence and good standing of Empire Burbank, each Credit Party and Holding Company, the
authorization of the Transactions occurring on the Closing Date and any other legal matters relating to the Credit Parties or Holding Companies, this Agreement, the other Loan Documents or the Transactions occurring on the Closing Date, all in form
and substance reasonably satisfactory to the Administrative Agent and Special Counsel. 
  
 (e) Security Interests in Personal and Mixed Property. To the extent not otherwise satisfied pursuant to Section 5.1(f), the
Administrative Agent shall have received evidence satisfactory to it that the Credit Parties shall have taken or caused to be taken all such actions, executed and delivered or caused to be executed and delivered all such agreements, documents and
instruments, and made or caused to be made all such filings and recordings that may be necessary or, in the opinion of the Administrative Agent, desirable in order to create in favor of the Administrative Agent, for the benefit of the Lenders, a
valid and perfected First Priority security interest in the entire personal and mixed property Collateral; provided, however, that to the extent that the Administrative Agent in its reasonable discretion after good faith consultation with the
Borrower shall determine that the costs of obtaining a security interest in any item of Collateral is excessive in relation to the value of the security to be afforded thereby, the Administrative Agent may waive such requirement with respect to such
item, so long as the Credit Parties covenant that such item shall not become subject to any Liens other than Permitted Liens. Such actions shall include the following: 
  
 (i) Collateral Documents. Delivery to the Administrative Agent of the Omnibus Confirmation Agreement,
the Second Confirmation to Subordination Agreements, duly executed by the parties thereto, together with accurate and complete schedules to all such Collateral Documents; 
  
 (ii) Lien Searches and UCC Termination Statements. Delivery to the Administrative Agent of (A) the
results of recent searches, by one or more Persons satisfactory to the Administrative Agent, as set forth in Schedule 5.1(e)(ii) with respect to UCC financing statements and fixture filings and judgment and tax lien filings which may have
been made with respect to any personal or mixed property of the Credit Parties, together with copies of all such filings disclosed by such search, and UCC termination statements for filing in all applicable jurisdictions as may be necessary to
terminate any effective UCC financing statements or fixture filings encumbering the assets of the Credit 
  

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 Parties (other than any such financing statements or fixture filings in respect of Liens permitted to
remain outstanding pursuant to the terms of this Agreement); 
  
 (iii) Control Agreements. Delivery to the Administrative Agent of a Control Agreement, in form and substance reasonably satisfactory to the Administrative Agent, for the deposit accounts and securities accounts
listed on Schedule 5.1(e)(iii) and maintained by the Credit Parties at Union Bank of California, N.A other than those accounts noted on such schedule as not being subject to a Control Agreement. 
  
 (f) Existing Mortgage Amendments; Etc. The
Administrative Agent shall have received from each Credit Party: 
  
 (i) Existing Mortgage Amendments. With respect to each Real Property Asset listed on Schedule 4.5(c) (each an “Existing Mortgaged Property”), a fully executed and notarized Existing Mortgage
Amendment, in proper form for recording in all appropriate places in all applicable jurisdictions. 
  
 (ii) Leasehold Interests. In the case of each Existing Mortgaged Property, which is a Leasehold Property, copies of any new leases
or any amendments to all existing leases between any Credit Party and any landlord or tenant to the extent such new leases or amendments were executed and delivered after the applicable Existing Mortgages were executed. 
  
 (iii) Matters Relating to Flood Hazard Properties.
(A) Evidence reasonably acceptable to the Administrative Agent as to whether any Existing Mortgaged Property is a Flood Hazard Property and (B) if any Existing Mortgaged Property is a Flood Hazard Property, evidence that the applicable Credit Party
has obtained flood insurance with respect to each Flood Hazard Property in amounts approved by the Administrative Agent, or evidence acceptable to the Administrative Agent that such insurance is not available; 
  
 (iv) Title Insurance. A CLTA Form 110.5 and a CLTA
Form 104.1 endorsement or unconditional commitment therefor with respect to each of the Existing Title Policies issued with respect to an Existing Mortgaged Property located in California, and a Texas Form T-38 and T-3 endorsement or unconditional
commitment therefor and a Nothing Further Certificate with respect to each of the Existing Title Policies issued with respect to an Existing Mortgaged Property located in Texas, (such endorsements, each being referred to herein as an
“Existing Title Policy Endorsement”) and (C) evidence satisfactory to the Administrative Agent that such Credit Party has (I) delivered to the Title Company all certificates and affidavits required by the Title Company in connection
with the issuance of the Existing Title Policy Endorsement and (II) paid to the Title Company or to the appropriate Governmental Authorities or concurrently with the Closing Date shall pay all expenses and premiums of the Title Company in connection
with the issuance of the Existing Title Policy Endorsement and all recording and stamp taxes (including mortgage recording and intangible taxes) payable in connection with recording the Existing Mortgage Amendment in the appropriate real estate
records; and 
  

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 (v) Copies of Documents Relating to Title Exceptions. Copies of all recorded
documents listed as new exceptions to title or otherwise referred to in the Existing Title Policy Endorsement, the Nothing Further Certificate (referred to in clause (iv) above) or CLTA Form 110.5; 
  
 (g) Evidence of Insurance. The Administrative Agent
shall have received a certificate from the Credit Parties’ insurance broker or other evidence satisfactory to them that all insurance required to be maintained pursuant to Section 6.5 is in full force and effect and that the Administrative
Agent on behalf of the Lenders has been named as additional insured, mortgagee and loss payee thereunder to the extent required under Section 6.5. 
  
 (h) Management; Employment and Consulting Contracts. The management structure of the Credit Parties after giving effect to the
Transactions shall be as set forth on Schedule 4.11. To the extent not delivered to the Administrative Agent in connection with the Existing Credit Agreement, the Administrative Agent shall have received copies of, and shall be satisfied with
the form and substance of (i) any and all agreements among any of the holders of capital stock of or other equity interests in the Credit Parties, (ii) any and all material consulting agreements with any Persons and (iii) any stock option plans,
phantom stock incentive programs and similar arrangements provided by the Credit Parties to any Person, in each case as such will be in effect from and after the Closing Date. The employment agreements with Messrs. Eduardo Leon, dated December 1,
1999, Andrew Mars, dated November 15, 1998, Xavier Ortiz, dated September 1, 1999, Winter Horton, dated December 18, 2002, and Brett Zane, dated March 21, 2003 and, subject to Section 6.16, Miguel Banojian that may be entered into after the Closing
Date, as each may have been amended from time to time (and all such amendments have been delivered to the Administrative Agent) constitute all material employment agreements with senior executives of the Credit Parties on the Closing Date.

  
 (i) Necessary Governmental Authorizations
and Consents; Expiration of Waiting Periods, Etc. The Credit Parties have obtained all permits, licenses, authorizations or consents from all Governmental Authorities (including the FCC) and all consents of other Persons with respect to Material
Indebtedness, Liens and agreements listed on Schedule 4.14 (and so identified thereon), in each case that are necessary in connection with the Transactions contemplated by the Basic Documents and occurring on the Closing Date, and the
continued operation of the Broadcast Stations operated and business conducted, and proposed to be conducted, by the Credit Parties, in substantially the same manner as conducted by the Credit Parties prior to the Closing Date, and each of the
foregoing shall be in full force and effect, in each case other than those the failure to obtain or maintain which, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. All applicable waiting
periods shall have expired without any action being taken or threatened by any competent authority which would restrain, prevent or otherwise impose adverse conditions on the Transactions occurring on the Closing Date (including the
Pre-Merger/Hart-Scott-Rodino Act, as amended). No action, request for stay, petition for review or rehearing, reconsideration or appeal with respect to any of the foregoing shall be pending, and the time for any applicable Governmental Authority to
take action to set aside its consent on its own motion shall have expired. 
  

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 (j) Financial Statements. The Administrative Agent shall have received from the
Credit Parties the certified financial statements, operating projections and budgets referred to in Section 4.4 hereof, and the same shall be reasonably satisfactory to the Administrative Agent and the Lenders and shall not be inconsistent with the
information previously provided to the Administrative Agent. 
  
 (k) Solvency Assurances. The Administrative Agent shall have received a certificate, substantially in the form of Exhibit G, from a Financial Officer of the Borrower to the effect that, as of the
Effective Time and after giving effect to the initial Loans hereunder (if any) and to the other Transactions occurring on the Closing Date: 
  
 (i) the aggregate value of all properties of the Credit Parties at their present fair saleable value on a going concern basis
(i.e., the amount that may be realized within a reasonable time, considered to be six months to one year, either through collection or sale at the regular market value, conceiving the latter as the amount that could be obtained for such
properties within such period by a capable and diligent businessman from an interested buyer who is willing to purchase under ordinary selling conditions), exceed the amount of all the debts and liabilities (including contingent, subordinated,
unmatured and unliquidated liabilities) of the Credit Parties; 
  
 (ii) the Credit Parties will not, on a consolidated basis, have unreasonably small capital with which to conduct their business operations as heretofore conducted; and 
  
 (iii) the Credit Parties will have, on a consolidated basis,
sufficient cash flow to enable them to pay their debts as they mature. 
  
 Such certificate shall include a statement to the effect that the financial projections and underlying assumptions contained in such analysis are, fair and reasonable in the opinion of such Financial Officer at the time when made.

  
 (l) No Material Adverse Effect. Since
March 31, 2004, there shall have occurred no Material Adverse Effect (in the reasonable judgment of the Administrative Agent) with respect to the Credit Parties taken as a whole. 
  
 (m) Opinions. The Administrative Agent shall have received favorable written opinions (addressed to
the Administrative Agent and the Lenders and dated the Closing Date) of (i) O’Melveny & Myers LLP, Piper Rudnick, LLP, and Strasburger & Price, each special counsel to the Credit Parties, substantially in the forms of Exhibits
K-1, K-2 and K-3, respectively, and (ii) Wiley, Rein & Fielding, LLP, special FCC counsel to the Credit Parties substantially in the form of Exhibit L (and each Credit Party hereby requests each such counsel to deliver
such opinions). 
  
 (n) Fees and Expenses.
The Administrative Agent and the Issuing Lender shall have received all reasonable fees and other amounts due and payable to such Persons and Special Counsel at or prior to the Effective Time, including, to the extent invoiced, reimbursement or
payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder. 
  

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 (o) Other Documents. The Administrative Agent shall have received all material
contracts and such other documents as the Administrative Agent or any Lender or Special Counsel shall have reasonably requested and the same shall be satisfactory to each of them and Special Counsel. 
  
 5.2 Each Extension of Credit. The obligation of each Lender to make a
Loan on the occasion of any Borrowing, and of the Issuing Lender to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions: 
  
 (a) Representations and Warranties. The representations and warranties of each Credit Party set forth
in this Agreement and the other Loan Documents shall be true and correct on and as of the date of such Borrowing, or (as applicable) the date of issuance, amendment, renewal or extension of such Letter of Credit, both before and after giving effect
thereto and to the use of the proceeds thereof (or, if any such representation or warranty is expressly stated to have been made as of an earlier date, such representation or warranty shall have been true and correct as of such earlier date, and to
the extent any representation or warranty makes reference to one or more of the Schedules to this Agreement, the Credit Parties shall make revisions to the Schedules, reasonably acceptable to the Administrative Agent, to take into account the
consummation of any Acquisitions permitted hereunder and other transactions permitted hereunder). 
  
 (b) No Defaults. At the time of and immediately after giving effect to such Borrowing, or (as applicable) the date of issuance,
amendment, renewal or extension of such Letter of Credit, no Default shall have occurred and be continuing. 
  
 ARTICLE 6 
  
 Affirmative Covenants 
  
 Until the Commitments
have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit shall have expired or terminated and all LC Disbursements shall have been
reimbursed, each of the Credit Parties covenants and agrees with the Lenders that: 
  
 6.1 Financial Statements and Other Information. The Borrower will furnish to the Administrative Agent for distribution to each Lender: 
  
 (a) as soon as available and in any event no later than the earlier of (x) 90 days after the end of each
fiscal year of the Credit Parties and (y) five days after the date the financial statements for the Borrower and its Subsidiaries referred to in clause (i) below are required to be filed with the Securities and Exchange Commission (after giving
effect to any extensions): 
  
 (i) consolidated
statements of income and consolidated statements of retained earnings and cash flows of the Credit Parties for such fiscal year and the related consolidated balance sheet of the Credit Parties as at the end of such fiscal year, setting forth in each
case in comparative form the corresponding consolidated figures for the preceding fiscal year, and 
  

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 (ii) an opinion of independent certified public accountants of recognized national
standing (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit) stating that said consolidated financial statements referred to in the preceding clause (i)
fairly present in all material respects the consolidated financial condition and results of operations of the Credit Parties as at the end of, and for, such fiscal year in accordance with GAAP, and a statement of such accountants that, in connection
with their audit, nothing came to their attention that caused them to believe that the Credit Parties failed to comply with the terms, covenants, provisions or conditions of Section 7.10, insofar as they relate to accounting matters, 
  
 (b) as soon as available and in any event within no later
than the earlier of (x) 45 days after the end of each quarterly fiscal period (including the fourth fiscal period) of each fiscal year of the Credit Parties and (y) five days after the date the financial statements for the Borrower and its
Subsidiaries referred to in clause (i) below are required to be filed with the Securities and Exchange Commission (after giving effect to any extensions): 
  
 (i) consolidated statements of income of the Credit Parties for such period and for the period from the beginning of the respective fiscal
year to the end of such period, and the related consolidated balance sheet of the Credit Parties as at the end of such period, together with a comparison against amounts set forth in the budget for statements of income for such period, and

  
 (ii) a certificate of a Financial Officer of
the Credit Parties, which certificate shall state that said consolidated financial statements referred to in the preceding clause (i) fairly present, in all material respects, the consolidated financial condition and results of operations of the
Credit Parties in accordance with generally accepted accounting principles, consistently applied, as at the end of, and for, such period (subject to normal year-end audit adjustments and the omission of footnotes); 
  
 (c) commencing with the financial statements delivered under
clause (b) above for the fiscal quarter ending June 30, 2004, concurrently with any delivery of financial statements under clauses (a) and (b) above, a Compliance Certificate; 
  
 (d) promptly upon the mailing thereof to the holders of any Indebtedness or equity interests in the Credit
Parties or any Holding Company generally, copies of all financial statements, regular reports and other statements so mailed; 
  
 (e) as soon as available and in any event no later than 60 days after the commencement of each fiscal year, a budget for the Credit
Parties for such fiscal year; 
  
 (f) promptly
after the same become publicly available, copies of all registration statements, regular periodic and other reports and statements filed by any Holding Company or any Credit Party with the Securities and Exchange Commission or any Governmental
Authority succeeding to any or all of the functions of said Commission or with any national securities exchange or market quotation system and copies of all press releases by the Holding Company or any Credit Party including, to the extent not
included in the foregoing, 
  

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 any regular periodic and other reports and statements provided by any Holding Company or any Credit Party
to the holders of the Senior Subordinated Notes or the holders of the Media Holdings Discount Notes; 
  
 (g) promptly after receipt thereof, copies of all further material correspondence from the FCC or material notices from the FCC related to
those certain Equal Opportunity Employment audit letters sent by the FCC on May 28, 2004, with respect to radio stations KBUA(FM), San Fernando, California and KEYH(AM), Houston, Texas. and 
  
 (h) promptly following any request therefor, such other
information regarding the operations, business affairs and financial condition of any Credit Party, or compliance with the terms of this Agreement, as the Administrative Agent or the Required Lenders may reasonably request. 
  
 6.2 Notices of Material Events. The Credit Parties, promptly upon
obtaining knowledge thereof, will furnish to the Administrative Agent for distribution to each Lender written notice of the following: 
  
 (a) the occurrence of any Default; 
  
 (b) the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or
affecting any Credit Party or other Affiliate thereof for which there is a reasonable possibility of a determination that would have a Material Adverse Effect; 
  

(c) a final judgment or judgments for the payment of money in excess of $1,000,000 in the aggregate (regardless of insurance coverage),
shall be rendered by one or more courts, administrative tribunals or other bodies having jurisdiction against any Credit Party; 
  
 (d) the occurrence of any ERISA Event related to the Plan of any Credit Party or knowledge after due inquiry of any ERISA Event related to
a Plan of any other ERISA Affiliate that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to result in liability of the Credit Parties in an aggregate amount exceeding $1,000,000; 
  
 (e) the receipt by any Credit Party from the FCC or any
other Governmental Authority of (i) any order or notice of the FCC or any other Governmental Authority or any court of competent jurisdiction which designates any Material FCC License or any other material license, permit or authorization of the
Credit Parties, or any application therefore, for a hearing, or which refuses renewal or extension of, or revokes, materially modifies, terminates or suspends any Material FCC License or other material license, permit or authorization now or
hereafter held by any Credit Party, or (ii) any notice of any competing application filed with respect to any Material FCC License or other material license, permit or authorization now or hereafter held by any Credit Party, or any material
citation, material notice of violation or material order to show cause issued by the FCC or any other Governmental Authority with respect to any Credit Party; 
  

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

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 (g) any communication, written or oral, with the Internal Revenue Service or the
California Franchise Tax Board regarding the validity, revocation, and/or termination of the S Corporation Election or the QSSS Election as well as the timing thereof; 
  
 (h) copies of its federal income tax returns (Forms 1120-S), California income tax returns, and summaries of
all financial information used to calculate the Permitted Shareholder Tax Distributions and Permitted Holdings Tax Distributions; 
  
 (i) for any taxable year of Holdings ending prior to the Qualifying IPO Closing Date, any communications, written or oral, with the
Internal Revenue Service or the California Franchise Tax Board regarding proposed or agreed upon changes in the Federal Taxable Income or the California Taxable Income which would have a Material Adverse Effect; 
  
 (j) for any taxable year of Holdings ending prior to the
Qualifying IPO Closing Date in which the Federal Taxable Income or the California Taxable Income is negative, with copies of Holdings’ shareholders’ individual federal and California income tax returns for the taxable year(s) of its
shareholder(s) ending on or after such year; and 
  
 (k) on the date of the occurrence thereof, notice that (i) any or all of the obligations under the Senior Subordinated Note Indenture or the Media Holdings Discount Notes Indenture have been accelerated, or (ii) that trustee or required
holders of the Senior Subordinated Notes or of the Media Holdings Discount Notes has been given notice that any or all such obligations are to be accelerated. 
  

Each notice delivered under this Section 6.2 shall be accompanied by a statement of a Financial Officer or other executive officer of the Credit Parties setting forth
the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto. 
  
 6.3 Existence; Conduct of Business. Each of the Credit Parties will do or cause to be done all things necessary in the exercise of its reasonable
business judgment to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises material to the conduct of the business of the Credit Parties taken as a whole; provided
that the foregoing shall not prohibit any merger, consolidation, liquidation, dissolution or any discontinuance or sale of such business permitted under Section 7.4. 
  
 6.4 Payment of Obligations. Each of the Credit Parties will pay its obligations, including Tax liabilities, that, if
not paid, could result in a Material Adverse Effect before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) such Credit Party has set
aside on its books adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect. 
  
 6.5 Maintenance of Properties; Insurance. Each of the Credit Parties
will (a) keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted, and (b) maintain insurance, with financially sound and reputable insurance companies, as may be
required by law, and such other insurance in such 
  

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 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, including business interruption, product liability insurance media perils insurance. Without limiting the generality of the foregoing, the Credit Parties will maintain or cause to be maintained (or provide
evidence reasonably acceptable to the Administrative Agent that such insurance is not available at a reasonable cost) replacement value property insurance on the Collateral under such policies of insurance and (x) with respect to each property
located in California on the Closing Date, such policies of earthquake insurance as are currently maintained by the Credit Parties and (y) for each property located in California acquired after the Closing Date such additional policies of earthquake
insurance with similar scope and amounts as the policies maintained by the Credit Parties on the Closing Date, in each case with such insurance companies, in such amounts, with such deductibles, and covering such terms and risks as are at all times
satisfactory to the Administrative Agent in its commercially reasonable judgment. Such policies of insurance with respect to the Credit Parties shall (x) name the Administrative Agent and the Lenders as additional insureds thereunder as their
interests may appear and (y) in the case of each business interruption and property insurance policy, contain a loss payable clause or endorsement, satisfactory in form and substance to the Administrative Agent that names the Administrative Agent
for the benefit of the Lenders as the loss payee thereunder (except with respect to losses of less than $1,000,000 per occurrence, which may be paid directly to Borrower provided no Default is continuing) and provides for at least 30 days’
prior written notice to the Administrative Agent of any modifications or cancellation of such policy except that only 10 days’ prior written notice shall be required for cancellation for non-payment of premium. 
  
 6.6 Books and Records; Inspection Rights. Each of the Credit Parties
will keep proper books of record and account in which entries are made of all material dealings and transactions in relation to its business and activities which fairly record such transactions and activities consistent with past practice. Each of
the Credit Parties will permit any representatives designated by the Administrative Agent or any Lender upon reasonable notice and at reasonable times during normal business hours to visit and inspect its properties, to examine and make extracts
from its books and records, and to discuss its affairs, finances and condition with Jose Liberman, Lenard Liberman or the Borrower’s chief financial officer and Borrower’s independent accountants; provided the Borrower may choose to
be present at or participate in any of such discussions. The Credit Parties, in consultation with the Administrative Agent, if requested by the Administrative Agent, will arrange for a meeting to be held at least once every year with the Lenders and
the Administrative Agent hereunder at which the business and operations of the Credit Parties are discussed. 
  
 6.7 Fiscal Year. None of the Credit Parties will change its fiscal year or the method of determining the last day of the first three fiscal
quarters in each of its fiscal years without the prior written consent of the Administrative Agent, which consent shall not be unreasonably withheld but which may be conditioned on amendments to Section 7.10. 
  
 6.8 Compliance with Laws, Maintenance of FCC Licenses. Each of the
Credit Parties will comply with (i) all laws, rules, regulations and orders including all FCC Regulations, Environmental Laws and all other laws, rules, regulations, policies and orders of any Governmental Authority, (ii) the terms of all FCC
Licenses, and (iii) all contractual obligations, in each case applicable to it or its property, except, in each case, where the failure to do so, 
  

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 individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. Each Credit
Party shall file or cause to be filed all necessary applications for renewal of, and shall preserve in full force and effect all, Material FCC Licenses; provided, however, that any failure to preserve any Material FCC License in full force
and effect which results either from (x) the conversion of analog television stations to digital television or (y) from a Relocation shall not constitute a breach of this Section 6.8. Each Credit Party shall promptly furnish or caused to be
furnished to the Administrative Agent copies of all material applications, reports and filings filed by the Credit Parties with the FCC, and promptly upon the Borrower acquiring knowledge thereof, copies of all material petitions and motions filed
by third parties with the FCC involving the Credit Parties, in each case, with respect to the Material FCC Licenses or the Broadcast Stations. 
  
 6.9 Use of Proceeds. The proceeds of the Loans and the Letters of Credit will be used only for (a) Transaction Costs, (b) Permitted Acquisitions
pursuant to Section 7.4, (c) Capital Expenditures permitted hereunder, (d) closing costs for the Transactions, (e) the Qualifying IPO Funding Transactions to be paid by the Borrower, and (f) general corporate and working capital purposes of the
Credit Parties. No part of the proceeds of any Loan or the Letters of Credit will be used, whether directly or indirectly, to purchase or carry any margin stock or for any purpose that entails a violation of any of the Regulations of the Board,
including Regulations U, T and X. All net proceeds of primary offering portion of the IPO will be applied to the Qualifying IPO Funding Transactions and the payment of Transaction Costs. 
  
 6.10 Certain Obligations Respecting Guarantors and Collateral Security. 
  
 (a) Additional Subsidiaries. In the event that any
Credit Party shall form or acquire any new Subsidiary after the date hereof, such Credit Party will cause such new Subsidiary, 
  
 (i) within ten Business Days after such formation or acquisition: 
  
 (A) to execute and deliver to the Administrative Agent the following documents: (1) a counterpart to this
Agreement (and thereby to become a party to this Agreement, as a “Guarantor” hereunder) and (2) a counterpart to the Pledge Agreement and a counterpart to the Security Agreement (and thereby to become a party to each such agreement);

  
 (B) to take such action (including
delivering such shares of stock and executing and delivering such UCC financing statements) as shall be necessary to create and perfect valid and enforceable First Priority Liens on all assets and property of such Subsidiary, subject only to
Permitted Liens, consistent with the provisions of the applicable Collateral Documents (other than the Mortgages to be provided under clause (ii) below); and 
  

(C) to deliver such proof of corporate action, incumbency of officers and other documents as is consistent with those delivered by
each Credit Party pursuant to Section 5.1 at the Effective Time or as the Administrative Agent shall have reasonably requested; and 
  

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 (ii) within thirty days after such formation or acquisition to execute and deliver to the
Administrative Agent Mortgages and such other instruments, documents and agreements as may be reasonably required by the Administrative Agent as shall be necessary to create and perfect valid and enforceable First Priority Liens, subject only to
Permitted Liens;. 
  
 (b) Ownership of
Subsidiaries. Subject to Section 7.4, no Credit Party shall sell, transfer or otherwise dispose of any shares of stock or other equity interests in any Subsidiary owned by it, nor issue or permit any Subsidiary, to issue, any shares of stock of
any class or other equity interests whatsoever to any Person, except that (i) the Borrower may issue stock or equity to any Holding Company and (ii) any Credit Party may issue stock or equity to another Credit Party provided such stock or equity is
pledged to the Administrative Agent as set forth below. Subject to Section 7.4, each of the Credit Parties will cause each of its Subsidiaries to take such action from time to time as shall be necessary to ensure that the percentage of the equity
capital of any class or character owned by such Credit Party in any Subsidiary on the date hereof (or, in the case of any newly formed or newly acquired Subsidiary, on the date of formation or acquisition) is not at any time decreased, other than by
reason of transfers to another Credit Party. In the event that any additional shares of stock or other equity interests shall be issued by any Credit Party (other than issuance by the Borrower of its capital stock to any Holding Company), the
respective holder of such shares of stock or other equity interests shall forthwith deliver to the Administrative Agent pursuant to the Pledge Agreement the certificates evidencing such shares of stock, accompanied by undated stock powers executed
in blank, and shall take such other action as the Administrative Agent shall request to perfect the security interest created therein pursuant to such pledge agreement. 
  
 6.11 ERISA. Except where a failure to comply with any of the following, individually or in the aggregate, would not
or could not reasonably be expected to result in a Material Adverse Effect, (i) to the extent applicable, the Credit Parties will maintain, and cause each ERISA Affiliate to maintain, each Plan of any Credit Party or any ERISA Affiliate in
compliance with all applicable requirements of ERISA and of the Code and with all applicable rulings and regulations issued under the provisions of ERISA and of the Code and (ii) the Credit Parties will not and, to the extent they have the authority
to do so, will not permit any of the ERISA Affiliates to (a) engage in any transaction with respect to any Plan which would subject any Credit Party to either a civil penalty assessed pursuant to Section 502(i) of ERISA or a tax imposed by Section
4975 of the Code, (b) fail to make full payment when due of all amounts which, under the provisions of any Plan, any of the Credit Parties or any ERISA Affiliate is required to pay as contributions thereto, or permit to exist any accumulated funding
deficiency (as such term is defined in Section 302 of ERISA and Section 412 of the Code), whether or not waived, with respect to any Pension Plan or (c) fail to make any payments to any Multiemployer Plan that any of the Credit Parties or any of the
ERISA Affiliates may be required to make under any agreement relating to such Multiemployer Plan or any law pertaining thereto. 
  
 6.12 Environmental Matters; Reporting. The Credit Parties will observe and comply with, and cause each Affiliate to observe and comply with all
laws, rules, regulations and orders of any government or government agency relating to health, safety, pollution, hazardous materials or other environmental matters to the extent non-compliance could have a Material Adverse Effect. The Credit
Parties will give the Administrative Agent prompt written notice of 
  

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 any violation as to any environmental matter by any Credit Party or Affiliate and of the commencement of any judicial or
administrative proceeding relating to health, safety or environmental matters (a) in which an adverse result would have a material adverse effect on any operating permits, air emission permits, water discharge permits, hazardous waste permits or
other permits held by any Credit Party or Affiliate which are material to the operations of such Credit Party or Affiliate, or (b) which will, or is likely to, have a Material Adverse Effect on such Credit Party or Affiliate to any Person or which
will require a material expenditure by such Credit Party or Affiliate to cure any alleged problem or violation. 
  
 6.13 Conforming Leasehold Interests; Matters Relating to Real Property Collateral. 
  
 (a) If (i) any Credit Party acquires or (ii) at the time any Person becomes a Subsidiary (other than a
Subsidiary that is not required to become a Guarantor), such Person holds, any Material Leasehold Property, the Credit Party or such Person shall cause such Material Leasehold Property to be a Conforming Leasehold Interest but excluding any Material
Leasehold Property where, in the Administrative Agent’s reasonable discretion, the costs of causing such property to become a Conforming Leasehold Interest is excessive in relation to the value of the benefit to be afforded to the Lenders
thereby or where such property is not material to the business and operations of such Credit Party or such Person. 
  
 (b) From and after the Effective Time, in the event that (i) any Credit Party acquires any fee interest in real property or any Material
Leasehold Property or (ii) at the time any Person becomes a Subsidiary (other than a Subsidiary that is not required to become a Guarantor), such Person owns or holds any fee interest in real property or any Material Leasehold Property, in either
case excluding any such Real Property Asset (x) where, in the Administrative Agent’s reasonable discretion, the costs of obtaining a security interest in such Real Property Asset is excessive in relation to the value of the benefit to be
afforded to the Lenders thereby or where such property is not material to the business and operations of such Credit Party or such Person or (y) the encumbering of which requires the consent of any applicable lessor or (in the case of clause (ii)
above) any then-existing senior lienholder, where the Credit Parties are unable to obtain such lessor’s or senior lienholder’s consent (any such non-excluded Real Property Asset described in the foregoing clause (i) or (ii) being a
“Additional Mortgaged Property”), such Credit Party shall deliver to the Administrative Agent, as soon as practicable after such Person acquires such Additional Mortgaged Property or after such Person is acquired the following:

  
 (i) Additional Mortgages. A fully
executed and notarized Mortgage (an “Additional Mortgage”), in proper form for recording in all appropriate places in all applicable jurisdictions, encumbering the interest of such Credit Party in such Additional Mortgaged Property,
and the Administrative Agent shall have the right in its sole discretion, but only after consulting with the Borrower, to record such Additional Mortgage; 
  
 (ii) Leasehold Interests. In the case of any Additional Mortgaged Property consisting of a Leasehold Property, copies of all leases
between any Credit Party and any landlord or tenant; 
  

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 (iii) Landlord Waivers and Consents. In the case of any Additional Mortgaged
Property consisting of a Leasehold Property, (a) a Landlord Waiver and Consent with respect thereto and where required by the terms of any lease, the consent of the mortgagee, ground lessor or other party and (b) evidence that such Leasehold
Property is a Recorded Leasehold Interest; 
  
 (iv) Matters Relating to Flood Hazard Properties. (A) Evidence as to whether any Additional Mortgaged Property is a Flood Hazard Property and (B) if such Additional Mortgaged Property is a Flood Hazard Property, evidence that the
applicable Credit Party has obtained flood insurance with respect to each Flood Hazard Property in amounts reasonably approved by the Administrative Agent, or evidence acceptable to the Administrative Agent that such insurance is not available;

  
 (v) Title Insurance. (A) If required
by the Administrative Agent, ALTA mortgagee title insurance policies or unconditional commitments therefor (the “Additional Mortgage Policies”) issued by the Title Company with respect to the Additional Mortgaged Property, in an
amount reasonably satisfactory to the Administrative Agent, insuring fee simple title to, or a valid leasehold interest in, each such Additional Mortgaged Property vested in such Credit Party and assuring the Administrative Agent that such
Additional Mortgage creates a valid and enforceable First Priority mortgage Lien on such Additional Mortgaged Property, subject only to any standard exceptions as may be reasonably acceptable to the Administrative Agent, which Additional Mortgage
Policy (I) shall include all endorsements for matters reasonably requested by the Administrative Agent and (II) shall provide for affirmative insurance and such reinsurance as the Administrative Agent may reasonably request, all of the foregoing in
form and substance reasonably satisfactory to the Administrative Agent; and (B) evidence reasonably satisfactory to the Administrative Agent that such Credit Party has (I) delivered to the Title Company all certificates and affidavits required by
the Title Company in connection with the issuance of the Additional Mortgage Policy and (II) paid to the Title Company or to the appropriate Governmental Authorities all expenses and premiums of the Title Company in connection with the issuance of
the Additional Mortgage Policy and all recording and stamp taxes (including mortgage recording and intangible taxes) payable in connection with recording the Additional Mortgage in the appropriate real estate records; 
  
 (vi) Copies of Documents Relating to Title
Exceptions. Copies of all recorded documents listed as exceptions to title or otherwise referred to in the Additional Mortgage Policy; 
  
 (vii) Environmental Audit. If reasonably required by the Administrative Agent, reports and other information in form, scope and
substance reasonably satisfactory to the Administrative Agent and prepared by environmental consultants satisfactory to the Administrative Agent, concerning any environmental hazards or liabilities to which any Credit Party may be subject with
respect to such Additional Mortgaged Property; and 
  

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 (viii) Opinions of Counsel. (1) A favorable opinion of counsel (which counsel
shall be reasonably satisfactory to the Administrative Agent and Special Counsel), as to the due authorization, execution and delivery by such Credit Party of such Additional Mortgage and such other matters as the Administrative Agent may reasonably
request, and (2) if required by the Administrative Agent, an opinion of counsel (which counsel shall be reasonably satisfactory to the Administrative Agent and Special Counsel) in the state in which such Additional Mortgaged Property is located with
respect to the enforceability of the form of Additional Mortgages to be recorded in such state and such other matters (including any matters governed by the laws of such state regarding personal property security interests in respect of any
Collateral) as the Administrative Agent may reasonably request, in each case in form and substance reasonably satisfactory to the Administrative Agent. 
  
 (c) If (i) any Credit Party acquires or (ii) at the time any Person becomes a Subsidiary (other than a Subsidiary that is not required to
become a Guarantor), such Person holds, any Material Property License, the Credit Party or such Person shall cause to be delivered to the Administrative Agent, a Licensor Consent with respect thereto excluding any Material Property License where, in
the Administrative Agent’s reasonable discretion, the costs of obtaining such consent is excessive in relation to the value of the benefit to be afforded to the Lenders thereby. 
  
 (d) Notwithstanding the foregoing, the Credit Parties and Empire Burbank shall not be obligated to comply
with this Section 6.13 with regard to the Burbank Office Property so long as the Empire Burbank Loan shall be outstanding, and the Empire Burbank Mortgage shall continue to encumber such property. So long as the Empire Burbank Loan shall be
outstanding, Empire Burbank shall not be required to grant to the Administrative Agent a security interest in any of its assets. 
  
 6.14 Hedging Agreements. The Borrower shall maintain, at all times when the Total Leverage Ratio as at the end of the preceding fiscal quarter for
which financial statements and a Compliance Certificate shall have been delivered pursuant to Section 6.1(c) is greater than or equal to 4.00 to 1, a Hedging Agreement, reasonably satisfactory to the Administrative Agent, that shall cap for the
period from the Existing Credit Agreement Closing Date to the second anniversary thereof the rate of interest payable by the Borrower with respect to its outstanding Indebtedness for borrowed money with respect to the principal amount of such
Indebtedness equal to the excess of (a) 50% of the aggregate outstanding principal amount of Indebtedness for borrowed money and with respect to letters of credit of the Borrower minus (b) any Indebtedness for borrowed money and with respect to
letters of credit of the Borrower that is subject to a fixed rate of interest. 
  
 6.15 Post-Closing Obligations. The Credit Parties agree to use diligent efforts to deliver to the Administrative Agent: 
  

(a) on or before the date that is 30 days after the Closing Date, perfection certificates substantially in the form of Schedule
I to the form of Security Agreement duly executed by a Financial Officer of each Credit Party; 
  

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 (b) on or before the date that is 30 days after the Closing Date, with respect to the
tower site for KQQK-FM located in Beaumont, Liberty County, Texas, a Landlord Waiver and Consent with respect thereto; 
  
 (c) if the Credit Parties shall occupy the transmitter building for KZJL-TV located in De Walt, Fort Bend County, Texas on or after
December 31, 2004, promptly after such date, a Landlord Waiver and Consent with respect thereto; 
  
 (d) on or before the date that is 30 days after the Closing Date, the Credit Parties shall execute and deliver a trademark and service
marks agreement to the Administrative Agent, which agreement shall be in a form substantially the same as the service marks agreement executed in connection with the Existing Credit Agreement and shall be recorded with the USPTO, in order to reflect
the security interest of the Administrative Agent in certain trademarks and service marks owned or used by the Credit Parties since the Existing Credit Agreement Closing Date; and 
  
 (e) to the extent the existing Control Agreement with Union Bank of California, N.A. cannot be amended prior
to the Closing Date to add account no. 9050000130 maintained by the Credit Parties at Union Bank of California, N.A. as an account subject to such control agreement, on or before the date that is 30 days after the Closing Date, the Credit Parties
shall execute and deliver, with respect to such account, a Control Agreement or an amendment to such existing Control Agreement. 
  
 With respect to clauses (b) and (c) above, if the Administrative Agent reasonably believes that the Credit Parties have defaulted in any
of their obligations set forth in this Section 6.15 as a consequence of their failure to exercise diligent efforts, the Administrative Agent shall so deliver written notice to the Credit Parties and the Credit Parties thereafter shall have thirty
(30) days to demonstrate to the reasonable satisfaction of the Administrative Agent that the Credit Parties have exercised diligent efforts. If the Credit Parties are unable to so demonstrate during such thirty (30) day period then the
Administrative Agent shall have the option to declare an Event of Default as a result of such failure by written notice to the Borrower. For purposes of such clauses (b) and (c), diligent efforts means sending the requests for such Landlord Waiver
and Consents to each applicable landlord and making reasonable follow-up telephone calls or other communications requesting the execution and delivery of such Landlord Waiver and Consent but not the obligation to pay money or to bring an action to
obtain such performance. 
  

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 6.16 Employment Agreements. Promptly after the amendment, modification of any of the employment
agreements described in Section 5.1(h)(ii), the Credit Parties will deliver a copy of such amendment or modification to the Administrative Agent. Notwithstanding any provision herein to the contrary, with respect to that certain employment agreement
of Miguel Banojian proposed to be entered into after the Closing Date (and only with respect to such employment agreement), such provisions shall be of no force and effect unless such employment agreement is substantially in the same form as the
other employment agreements referred to in Section 5.1(h). 
  
 ARTICLE 7 
  
 Negative Covenants

  
 Until the Commitments have expired or terminated and the
principal of and interest on each Loan and all fees payable hereunder have been paid in full and all Letters of Credit shall have expired or terminated and all LC Disbursements shall have been reimbursed, the Credit Parties covenant and agree with
the Administrative Agent and the Lenders that: 
  
 7.1
Indebtedness. The Credit Parties and their Subsidiaries shall not create, incur, assume or permit to exist any Indebtedness, except: 
  
 (a) Indebtedness created under the Loan Documents; 
  
 (b) Indebtedness existing on the date hereof which is set forth in Schedule 4.14 and has been
designated on such schedule as Indebtedness that will remain outstanding following the funding of the initial Loans, and any extension, renewal, refunding or replacement of any such Indebtedness that does not increase the principal amount thereof;

  
 (c) Unsecured Indebtedness of any Credit
Party to any other Credit Party; 
  
 (d)
Indebtedness of Empire Burbank under the Empire Burbank Loan Documents; provided that the outstanding principal amount of Indebtedness under the Empire Burbank Loan does not exceed $3,000,000; 
  
 (e) On or after the Qualifying IPO Closing Date, unsecured
Indebtedness of the Borrower to Media Holding pursuant to the LBI Media Intercompany Note and all of such note shall be repaid as and when provided in clause (f) of the definition of Qualifying IPO Funding Transactions; 
  
 (f) Indebtedness to Jose and/or Lenard Liberman (or their
spouses, lineal descendants, or heirs and devises or any trusts controlled by them) but only to the extent such indebtedness is subordinated to the Loans (or any Credit Party’s obligations to the Lenders and the Administrative Agent) pursuant
to subordination agreements substantially identical to the Liberman Subordination Agreements; provided that the aggregate Indebtedness of the Credit Parties under this Section 7.1(f) shall not exceed $5,000,000 at any one time outstanding;

  
 (g) Indebtedness of the Credit Parties
(determined on a consolidated basis without duplication in accordance with GAAP) consisting of Capital Lease Obligations, secured 
  

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 by Liens permitted under Section 7.2(i) and/or in connection with the acquisition of real property (other
than any real property received or acquired in any Acquisition or Relocation) in an aggregate principal amount not exceeding (i) prior to the Qualifying IPO Closing Date, $7,000,000 at any one time outstanding or (ii) thereafter, $20,000,000 at any
one time outstanding; 
  
 (h) Indebtedness (i)
under any Hedging Agreement required under Section 6.14 or otherwise not prohibited under Section 7.5(b) or (ii) for bank overdrafts in the ordinary course of business that are promptly repaid; 
  
 (i) Indebtedness arising from guaranties of Indebtedness of
any Credit Party permitted hereunder or other agreements of any Credit Party providing for indemnification, adjustment of purchase price or similar customary obligations, in each case incurred or assumed in connection with the disposition of any
business or assets of any Credit Party permitted by Section 7.4; provided that the maximum assumable liability in respect of all such Indebtedness shall at no time exceed the gross proceeds actually received by the Credit Parties in
connection with such disposition; 
  
 (j)
Indebtedness in respect of the Relocation Profit to the extent required to be paid to the Shop At Home Sellers pursuant to the Shop At Home Acquisition Documents; 
  
 (k) Unsecured Indebtedness in respect of the Senior Subordinated Notes in an aggregate principal amount not
exceeding $150,000,000; provided the Borrower may incur up to an additional $50,000,000 of unsecured Indebtedness in respect of the Senior Subordinated Notes so long as no Default shall have occurred and be continuing or caused thereby and,
if the interest rate on such additional Indebtedness exceeds 10-1/8% per annum, then subject to the delivery by the Borrower to the Administrative Agent of an officer’s certificate executed by a Financial Officer demonstrating on a pro forma
basis compliance with the covenant set forth in Section 7.10(c) for the period of four consecutive fiscal quarters most recently ended as if such incurrence had occurred on the first day of such period; 
  
 (l) Indebtedness required to be incurred in connection with
any “Incentive Bonus” which may become payable pursuant to Eduardo Leon’s employment agreement; and 
  
 (m) In addition to the foregoing, unsecured Indebtedness in an aggregate principal amount not exceeding (i) prior to the Qualifying IPO
Closing Date, $4,000,000 at any time outstanding or (ii) thereafter, $10,000,000 at any time outstanding; provided that no Indebtedness to any holder of Indebtedness of Holdings shall be permitted to be incurred under this subsection (m)
unless such Indebtedness is subject to a subordination agreement satisfactory in form and substance to the Administrative Agent. 
  
 7.2 Liens. No Credit Party or Subsidiary will create, incur, assume or permit to exist any Lien in favor of any other Person on any Property or
asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except (the following being called “Permitted Liens”): 
  
 (a) Liens created under the Loan Documents; 
  

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 (b) any Lien on any property or asset of any Credit Party or Subsidiary existing on the
date hereof and set forth in Schedule 7.2(b); provided that (i) such Lien shall not apply to any other property or asset of any Credit Party and (ii) such Lien shall secure only those obligations which it secures on the date hereof and
extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof; 
  
 (c) Liens imposed by any Governmental Authority for taxes, assessments or charges not yet due or (in the case of property taxes and
assessments not exceeding $1,000,000 in the aggregate more than 90 days overdue) which are being contested in good faith and by appropriate proceedings if adequate reserves with respect thereto are maintained on the books of any Credit Party or
Subsidiary in accordance with GAAP; 
  
 (d)
landlords’, carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens, and vendors’ Liens imposed by statute or common law not securing the repayment of Indebtedness, arising in the
ordinary course of business which are not overdue for a period of more than 60 days or which are being contested in good faith and by appropriate proceedings and Liens securing judgments (including pre-judgment attachments) but only to the extent
for an amount and for a period not resulting in an Event of Default under Section 8.1(j) hereof; 
  
 (e) pledges or deposits under worker’s compensation, unemployment insurance and other social security legislation and deposits
securing liability to insurance carriers under insurance or self-insurance agreements; 
  
 (f) pledges and deposits to secure the performance of bids, tenders, trade contracts (other than for borrowed money), leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business; 
  
 (g) easements, rights-of-way, restrictions and other similar encumbrances incurred in the ordinary course of business and encumbrances
consisting of zoning restrictions, easements, licenses, restrictions on the use of Property or minor imperfections in title thereto which, in the aggregate, are not material in amount, and which do not, in the aggregate, materially detract from the
value of the Property of any Credit Party or materially interfere with the ordinary conduct of the business of any Credit Party; 
  
 (h) Liens consisting of bankers’ liens and rights of setoff, in each case, arising by operation of law, and Liens on documents
presented in letter of credit drawings; 
  
 (i)
Liens on tangible property, including real or personal property, acquired, constructed or improved by any Credit Party, provided that (A) such Liens secure Indebtedness (including Capital Lease Obligations) permitted by Section 7.1(g), (B)
such Liens and the Indebtedness secured thereby are incurred prior to or within 120 days after such acquisition or the completion of such construction or improvement, (C) the Indebtedness secured thereby does not exceed the cost of acquiring,
constructing or improving such fixed or capital assets, and (D) such security interests shall not apply to any other property or assets of any Credit Party or Subsidiary; 
  

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 (j) the Liens created by (i) the Empire Burbank Mortgage; provided that such Liens
shall apply only to the Burbank Property and any other property of Empire Burbank referred to in such Mortgage on the date the Empire Burbank Loan was funded and (ii) the Empire Burbank Lease; 
  
 (k) Uniform Commercial Code financing statement filings with
respect to Property leased by the Credit Parties; 
  
 (l) Assignments of uncollectible accounts receivable to collection agencies in the ordinary course of business; and 
  
 (m) any zoning or similar law or right reserved to or vested in any Governmental Authority to control or regulate the use of any real
property which does not result in, or could not reasonably be expected to result in, a Material Adverse Effect. 
  
 7.3 Contingent Liabilities. No Credit Party or Subsidiary will Guarantee the Indebtedness or other obligations of any Person, or Guarantee the
payment of dividends or other distributions upon the stock of, or the earnings of, any Person, except: 
  
 (a) endorsements of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business;

  
 (b) Guarantees of obligations of any Credit
Party by any other Credit Party to the extent constituting Indebtedness expressly permitted by Section 7.1, except that no Credit Party shall Guarantee the Empire Burbank Loan; 
  
 (c) Guarantees in effect on the date hereof which are disclosed in Schedule 4.14, and any
replacements thereof in amounts not exceeding such Guarantees; 
  
 (d) obligations to the Issuing Lender in respect of Letters of Credit; 
  
 (e) Guarantees of obligations of any Credit Party by any other Credit Party for obligations to suppliers, customers, franchisees, lessors
and licensees to the extent incurred in the ordinary course of business; 
  
 (f) unsecured Guarantees by the Guarantors of the Senior Subordinated Notes; and 
  
 (g) Guarantees of the Credit Parties in addition to the Guarantees permitted under the foregoing clauses of this Section 7.3 (excluding
any Guarantee of the Empire Burbank Loan); provided that (i) the maximum aggregate principal amount Guaranteed under this clause (g) shall not exceed (A) prior to the Qualifying IPO Closing Date, $2,000,000 at any time outstanding or (B)
thereafter, $5,000,000 at any time outstanding and (ii) the maximum aggregate principal amount Guaranteed under this clause (g) plus principal amount of any Investments permitted under Section 7.5(a)(iii) shall not exceed (A) prior to the
Qualifying IPO Closing Date, $4,000,000 at any time outstanding or (B) thereafter, $10,000,000 at any time outstanding. 
  

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 7.4 Fundamental Changes; Asset Sales. No Credit Party will enter into any transaction of merger or
consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution). No Credit Party will effect any Disposition or Relocation or acquire any business or property from, or capital stock of, or other
equity interests in, or be a party to any acquisition (including any Acquisition) of, any Person except for purchases by any Credit Party of property to be used in the ordinary course of business, Investments permitted hereunder, Capital
Expenditures permitted hereunder, and Acquisitions permitted hereunder. No Credit Party will convey, sell, lease, transfer or otherwise dispose (including any Disposition) of, in one transaction or a series of transactions, any part of its business
or property, whether now owned or hereafter acquired (including receivables and leasehold interests, but excluding (x) obsolete or worn-out property (including leasehold interests), tools or equipment no longer used or useful in its business, and
(y) any inventory or other property sold or disposed of in the ordinary course of business and on ordinary business terms; provided that a Credit Party may (1) lease or sublease real property to the extent such lease or sublease would not
materially interfere with the operation of the businesses of the Credit Parties and (2) enter into any sale, lease, transfer or other disposition described clauses (a) through (f) of the definition of Disposition. The Lenders and the Administrative
Agent (as the case may be) at the Borrower’s expense hereby agree to complete, execute and deliver to the Borrower, upon reasonable prior written notice to the Administrative Agent and upon provision by the Borrower of a draft of such
instrument, any release or termination of security interest required to permit the applicable Credit Party conveying, selling, leasing, transferring or otherwise disposing of any part of its property pursuant to and in accordance with the preceding
sentence to convey, sell, lease, transfer or otherwise dispose of such property free and clear of any Lien under the Collateral Documents. 
  
 Notwithstanding the foregoing provisions of this Section 7.4: 
  
 (a) any Credit Party (other than the Borrower or any License Subsidiary) may be merged or consolidated with or into the Borrower or any
other Credit Party, and any Subsidiary that is not a Credit Party may be merged into any Credit Party (with the Credit Party as the surviving entity); provided that if any such transaction shall be between a Subsidiary and the Borrower or a
Wholly Owned Subsidiary, the Borrower or such Wholly Owned Subsidiary, as applicable, shall be the continuing or surviving corporation; 
  
 (b) any Credit Party (other than the Borrower or any License Subsidiary) may sell, lease, transfer or otherwise dispose of any or all of
its property (upon voluntary liquidation or otherwise) to any other Credit Party; 
  
 (c) the capital stock of, or other equity interests in, any Credit Party may be sold, transferred or otherwise disposed of to the Borrower
or any other Credit Party; 
  
 (d) any Credit
Party may enter into Acquisitions to acquire all or substantially all of the assets or any division, business or broadcast station or capital stock of, or other equity interests in (including acquisitions by merger), any Person (collectively,
“Permitted Acquisitions”), subject to satisfaction of the following conditions: 
  

 105 

 (i) the aggregate consideration paid or exchanged by the Borrower and its Subsidiaries in
connection with any such Acquisition shall not exceed (A) prior to the Qualifying IPO Closing Date, $50,000,000 for such Acquisition or (B) thereafter, $125,000,000 for such Acquisition; 
  
 (ii) both (A) immediately prior to the proposed Acquisition and (B) immediately following the proposed
Acquisition after giving effect to such Acquisition on a pro forma basis incorporating such pro forma assumptions as are satisfactory to the Administrative Agent in its reasonable discretion, the Credit Parties shall be in compliance with the
covenants set forth in Section 7.10; 
  
 (iii)
the business so acquired shall be in the Permitted Lines of Business and shall be located in (A) prior to the Qualifying IPO Closing Date, the United States or (B) thereafter, the United States or any state or territory thereof or Mexico;
provided that the aggregate consideration paid or exchanged by the Borrower and its Subsidiaries after the date hereof in connection with all acquisitions of businesses located in Mexico shall not exceed $50,000,000; 
  
 (iv) the assets so acquired shall be transferred free and
clear of any Liens (except to the extent permitted by Section 7.2), and no Indebtedness shall be incurred, guaranteed, assumed or consolidated in connection with such Acquisition (except to the extent permitted by Section 7.1); 
  
 (v) the Administrative Agent shall have received Lien
searches reasonably satisfactory to the Administrative Agent with respect to the assets of, and equity interests in, any business being acquired; 
  
 (vi) the Administrative Agent shall have received a First Priority perfected security interest in substantially all of the assets being
acquired in such Acquisition (including the assets of any entity acquired) but excluding real property not otherwise required under Section 6.13 and all filings, recordings and other actions with respect thereto shall be reasonably satisfactory in
form and substance to the Administrative Agent; provided, however, that the security interest or mortgage as to any real property asset which is required to be obtained hereunder shall be perfected within a reasonable time after the
consummation of such Acquisition; 
  
 (vii) if
requested, the Administrative Agent shall have received an opinion of counsel in each applicable jurisdiction reasonably satisfactory to it to the effect that the Administrative Agent has been granted a perfected security interest in such assets and
as to such other matters as the Administrative Agent may reasonably require; 
  
 (viii) in connection with such proposed Acquisition, the Borrower shall deliver to the Administrative Agent (i) a copy of the purchase agreement pursuant to which such Acquisition will be consummated, (ii) unless
waived by the Administrative Agent in its reasonable discretion, a consent to the assignment of such purchase agreement to the Administrative Agent for collateral purposes, which consent shall be in form and substance satisfactory to the
Administrative Agent; (iii) a copy of each material 
  

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 services agreement, consulting agreement, lease, credit or financing agreement or other material
agreement relating to such Acquisition to be in effect after the consummation of such Acquisition, (iv) unless waived by the Administrative Agent in its reasonable discretion, an opinion of counsel to the sellers addressed to the Administrative
Agent and the Lenders or permitting them to rely thereon and (v) such other information or reports as the Administrative Agent may reasonably request with respect to such Acquisition; 
  
 (ix) to the extent any representation or warranty herein makes reference to one or more of the Schedules to
this Agreement, the Credit Parties shall make revisions to such Schedules, in each case as of the date of the consummation of such Acquisition and notwithstanding that such representation or warranty may expressly state that it is made as of an
earlier date, reasonably acceptable to the Administrative Agent, solely to take into account the consummation of such Acquisition; 
  
 (x) the Credit Parties shall have obtained all material permits, licenses, authorizations or consents from all Governmental Authorities
(including the FCC and the United States Department of Justice) and all consents of other Persons, in each case that are necessary in connection with such proposed Acquisition, the continued operation of the business being acquired in such proposed
Acquisition, as proposed to be conducted, by the Credit Parties, prior to or concurrently with the consummation thereof, and each of the foregoing shall be in full force and effect, in each case other than those the failure to obtain or maintain
which, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect; 
  
 (xi) subject to the waiver by the Administrative Agent in its reasonable discretion, all applicable waiting periods with respect to such
proposed Acquisition shall have expired without any action being taken or threatened by any competent authority which would restrain, prevent or otherwise impose adverse conditions on such Acquisition (including the Pre-Merger/Hart-Scott-Rodino Act,
as amended), and no action, request for stay, petition for review or rehearing, reconsideration or appeal with respect to any of the foregoing shall be pending, and the time for any applicable Governmental Authority to take action to set aside its
consent on its own motion shall have expired; 
  
 (xii) the Administrative Agent shall have received a certificate from the Credit Parties’ insurance broker or other evidence satisfactory to it that all insurance required to be maintained pursuant to Section 6.5 is in full force and
effect with respect to the assets being acquired in such Acquisition and that the Administrative Agent on behalf of the Lenders has been named as additional insured, mortgagee and loss payee thereunder to the extent required under Section 6.5; and

  
 (xiii) immediately prior to such Acquisition
and after giving effect thereto, no Default shall have occurred and be continuing. 
  

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 (e) The Credit Parties shall be permitted to effect any Relocation, provided that
the following conditions have been satisfied: 
  
 (i) Such Voluntary Relocation shall not, as determined on the date of the consummation of such Voluntary Relocation, have a material adverse effect on the business, assets, operations or financial condition of the Credit Parties, taken as a
whole; 
  
 (ii) The Credit Parties shall give 30
days’ prior written notice to the Administrative Agent of the proposed Relocation which notice shall include a description of all material aspects of the Relocation including the consideration to be received by any Credit Party in connection
therewith; 
  
 (iii) Simultaneously with
informing the Shop At Home Sellers under the Shop At Home Acquisition Documents of any Relocation Profit, the Credit Parties shall so inform the Administrative Agent and thereafter keep the Administrative Agent apprised of the negotiation thereof,
and shall forward to the Administrative Agent copies of all material correspondence, including, without limitation, any “Buyer’s Relocation Profit Notice” or “Challenge Notice” (as such terms are defined in the Shop At Home
Acquisition Documents) and all correspondence pertaining to any implementation of the Valuation Mechanism (as defined in the Shop At Home Acquisition Documents); 
  
 (iv) to the extent any representation or warranty herein makes reference to one or more of the Schedules to
this Agreement, the Credit Parties shall make revisions to such Schedules, in each case as of the date of the consummation of any Relocation and notwithstanding that such representation or warranty may expressly state that it is made as of an
earlier date, reasonably acceptable to the Administrative Agent, solely to take into account the consummation of such Relocation; and 
  
 (v) In connection with any Involuntary Relocation the Credit Parties shall use their best efforts to receive only cash consideration
therefor. 
  
 (f) The Credit Parties shall be
permitted to sell (pursuant to an asset sale, stock sale or otherwise) any radio and television stations in any fiscal year, provided that the aggregate EBITDA attributable to all such stations sold in any fiscal year shall not exceed 20% of the
EBITDA of the Credit Parties for the immediately preceding fiscal year as stated in the Compliance Certificate required to be delivered for such fiscal year pursuant to Section 6.1(c) or, if such Compliance Certificate is not available at the time
of such proposed sale, as demonstrated through financial statements and reports acceptable to the Administrative Agent in its reasonable discretion. 
  
 (g) Upon 30 days prior written notice to the Administrative Agent and with the prior written consent of the Administrative Agent (such
consent not to be unreasonably withheld), the Borrower may merge with an Affiliate incorporated solely for the purpose of reincorporating the Borrower in another jurisdiction to realize tax or other benefits. The Administrative Agent shall give
prompt notice thereof to the Lenders. 
  
 (h)
Upon 10 days prior written notice to the Administrative Agent and so long as no Default shall have occurred and be continuing and no Default shall be caused thereby, any Credit Party (other than the Borrower or any License Subsidiary) may acquire
the stock or assets of, or merge with, Spanish Media Rep Team Inc. (with such Credit Party as the surviving entity). 
  

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 7.5 Investments; Hedging Agreements. 
  
 (a) No Credit Party will make or permit to remain
outstanding any Investment, except in the case of any Credit Party: 
  
 (i) Investments by the Credit Parties in capital stock of, and other equity interests in, their Subsidiaries to the extent outstanding at the Effective Time and as set forth on Schedule 4.12 hereto, Investments
consisting of deferred payment obligations in connection with permitted sales of assets in the aggregate not to exceed $1,000,000 at any one time, advances by any Credit Party to any other Credit Party (which advances, whether existing on the
Closing Date or made thereafter, may be cancelled or forgiven by such Credit Party) and capital contributions by any Credit Party to any other Credit Party; 
  
 (ii) Permitted Investments; 
  
 (iii) advances, loans and extensions of credit to any director, officer or employee of a Credit Party or any other Person, Investments by
the Credit Parties in connection with the satisfaction of accounts receivable or other Indebtedness due from a customer of a Credit Party or claims due and owing to the Credit Parties or otherwise for the benefit the business of the Credit Parties;
provided that (A) the maximum aggregate principal amount of any Investments permitted under Section 7.5(a)(iii) shall not exceed $5,000,000 at any time outstanding and (B) the maximum aggregate principal amount of any Investments permitted
under Section 7.5(a)(iii) plus the principal amount Guaranteed under Section 7.3(g) shall not exceed (1) prior to the Qualifying IPO Closing Date, $4,000,000 at any time outstanding or (2) thereafter, $10,000,000 at any time outstanding, and,
so long as no Default shall have occurred and be continuing and no Default shall be caused thereby, the Credit Parties may forgive or cancel any such advance, loan or extension of credit; 
  
 (iv) Checking and deposit accounts used in the ordinary
course of business maintained with the Administrative Agent or depository institutions who have executed Control Agreements except for (A) the deposit accounts maintained with Wells Fargo Bank, N.A., so long as the Borrower maintains an agreement to
sweep the daily balances in such accounts at the end of each Business Day on which such daily balances exceed a specified balance, not to exceed $400,000 to (1) an account at Union Bank of California, N.A. described on Schedule 1 of the Control
Agreement delivered in connection with the Original Credit Agreement (the “Existing Control Agreement”) or (2) an account covered by a new Control Agreement obtained pursuant to Section 5.1(e)(iii) or otherwise, and (B) the
securities accounts and deposit accounts maintained with Union Bank of California, N.A. for which Control Agreements will not be obtained as described on Schedule 5.1(e)(iii); 
  
 (v) escrow deposits made pursuant to the KNOR Acquisition or other Acquisitions permitted hereunder;

  

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 (vi) the Borrower and its Subsidiaries may continue to own the Investments owned by them
and described in Schedule 7.5 annexed hereto and the Borrower may own intercompany loans made to Holdings prior to the Closing Date and the Borrower may forgive or cancel such loans; 
  
 (vii) the Borrower may acquire and hold obligations of one
or more officers or other employees of the Credit Parties in connection with such officers’ or employees’ acquisition of shares of Holdings’ common stock, so long as no cash is actually advanced by any Credit Party to such officers or
employees or any Holding Company in connection with the acquisition of any such obligations and, so long as no Default shall have occurred and be continuing and no Default shall be caused thereby, the Credit Parties may forgive or cancel any such
advance, loan or extension of credit; 
  
 (viii)
the Credit Parties may accept promissory notes, debt or equity securities or other Investments as consideration in any Relocation, the aggregate amount of which received after the Closing Date shall not exceed $10,000,000; provided, that the
Credit Parties may accept promissory notes, debt or equity securities or other Investments as consideration in an Involuntary Relocation in excess of such amount so long as the receipt of such excess Investments would not result in a Material
Adverse Effect; and 
  
 (ix) (1) with
respect to any period during which Holdings is an S Corporation or a substantially similar pass-through entity for federal income tax purposes and a QSSS Election is in effect for the Borrower, the Borrower may make loans to Media Holdings, Holdings
or the shareholders of Holdings in an amount (together with dividend payments made pursuant to Section 7.6(a)) not in excess of the Permitted Holdings Tax Distributions and the Permitted Shareholder Tax Distributions, (2) so long as no
Default shall have occurred and be continuing and no Default shall be caused thereby, the Borrower may make loans to any Holding Company or the shareholders of Holdings (in each case, together with dividends made from Excess Cash Flow pursuant to
Section 7.6(c)) (i) prior to the Qualifying IPO Closing Date, at any time the Total Leverage Ratio is less than 4.5 to 1 as of the end of any fiscal year with respect thereto, as shown in the financial statements required to be delivered pursuant to
Section 6.1(a) and in the Compliance Certificate required to be delivered in respect of such fiscal year pursuant to Section 6.1(c) (or until the first Compliance Certificate is delivered hereunder with respect to the financial statements required
to be delivered pursuant to Section 6.1(a), as stated in the Compliance Certificate most recently delivered pursuant to the Existing Credit Agreement together with the financial statements required to be delivered pursuant to Section 6.1(a)
thereof), to the extent of Excess Cash Flow for such fiscal year in an aggregate amount not in excess of $5,000,000 and (ii) thereafter, up to 50% of Excess Cash Flow for such fiscal year, (3) so long as no Default shall have occurred and be
continuing or shall be caused thereby, the Borrower may make loans to any Holding Company to pay corporate administrative expenses and other costs and expenses, provided, that the amount of cash loans made pursuant to this clause (3)
(together with the amount of cash distributions made pursuant to Section 7.6(d)) shall not exceed (i) prior to the Qualifying IPO Closing Date, $1,500,000 and (ii) thereafter, $5,000,000, in each case, in any fiscal year, (4) so long as no
Default shall have occurred and be 
  

 110 

 continuing or shall be caused thereby, any Credit Party may make loans to Holdings to enable Holdings to
make the payments with respect to any portion of the “Incentive Bonus” which may become payable pursuant to the employment agreements of Winter Horton dated December 18, 2002, Andrew Mars dated November 15, 1998, Xavier Ortiz dated
September 1, 1999 and, subject to Section 6.16, Miguel Banojian that may be entered into after the Closing Date, in each case as amended from time to time, respectively, or with respect to any notes issued with respect thereto; provided that
the aggregate amount of such loans (together with the aggregate amount of dividends made pursuant to Section 7.6(g)) shall not exceed the amount of such bonuses required to be paid under such employment agreements (including any amounts required to
be paid under any such notes), (5) so long as no Default shall have occurred and be continuing and no Default shall be caused thereby, the Borrower may make loans (together with dividend payments made pursuant to Section 7.6(h)) to Media
Holdings in an amount equal to the scheduled payments of interest on the Media Holdings Discount Notes to the extent required to be paid in cash pursuant to the Media Holdings Discount Notes Indenture, provided, that, in any fiscal year, the
aggregate amount of cash loans made pursuant to this clause (5) during such fiscal year (together with the amount of cash distributions made pursuant to Section 7.6(h) during such fiscal year) shall not exceed the aggregate amount of scheduled
payments of interest on the Media Holdings Discount Notes to the extent required to be paid in cash on or after October 15, 2008 pursuant to the Media Holdings Discount Notes Indenture during such fiscal year (for the avoidance of doubt any cash
interest payments which may become due prior to October 15, 2008 as a result of any election to make cash interest payments with respect to the Media Holdings Discount Notes shall not be deemed to be “required to be paid in cash,” for the
purposes of Sections 7.5 and 7.6), (6) so long as no Default shall have occurred and be continuing and no Default shall be caused thereby, the Borrower may make loans (together with dividend payments made pursuant to Section 7.6(j)) to any
Holding Company in an amount equal to the scheduled payments of interest on the Holding Company Debt incurred in accordance with Section 7.15(a)(iv) to the extent required to be paid in cash pursuant to the documentation governing such Holding
Company Debt and any liquidated damages required to be paid during such fiscal year in connection with any registration rights agreement relating thereto, provided, that, in any fiscal year, the aggregate amount of cash loans made pursuant to
this clause (6) during such fiscal year (together with the amount of cash distributions made pursuant to Section 7.6(j) during such fiscal year) shall not exceed the aggregate amount of scheduled payments of interest on such Holding Company Debt to
the extent required to be paid in cash during such fiscal year, and (7) Borrower may forgive or cancel any of the loans made pursuant to clause (1), (2), (3), (4), (5) or (6) above. 
  
 (b) No Credit Party will enter into any Hedging Agreement,
other than (i) Hedging Agreements required to be entered into pursuant to Section 6.14 of this Agreement and (ii) Hedging Agreements entered into in the ordinary course of business to hedge or mitigate risks to which any Credit Party is exposed in
the conduct of its business or the management of its liabilities. 
  

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 7.6 Restricted Junior Payments. No Credit Party will declare or make any Restricted Junior Payment
at any time; provided, however, that (a) with respect to any period during which Holdings is an S Corporation or a substantially similar pass-through entity for federal income tax purposes and a QSSS Election is in effect for the Borrower, the
Borrower may declare and make dividend payments to Media Holdings in an amount (together with loans made pursuant to Section 7.5(a)(ix)(1)) not in excess of the Permitted Holdings Tax Distributions and the Permitted Shareholder Tax Distributions;
(b) so long as no Default shall have occurred and be continuing and no Default shall be caused thereby, the Borrower may make scheduled payments of interest on the Senior Subordinated Notes to the extent required to be paid in cash pursuant to the
Senior Subordinated Note Indenture; (c) so long as no Default shall have occurred and be continuing and no Default shall be caused thereby, the Borrower may declare and make dividend payments to Media Holdings or any other Holding Company, as
applicable (together with loans made from Excess Cash Flow pursuant to Section 7.5(a)(ix)(2)), (i) prior to the Qualifying IPO Closing Date, at any time the Total Leverage Ratio is less than 4.5 to 1 as of the end of any fiscal year with respect
thereto, as shown in the financial statements required to be delivered pursuant to Section 6.1(a) and Compliance Certificate required to be delivered in respect of such fiscal year pursuant to Section 6.1(c) (or until the first Compliance
Certificate is delivered hereunder with respect to the financial statements required to be delivered pursuant to Section 6.1(a), as stated in the Compliance Certificate most recently delivered pursuant to the Existing Credit Agreement together with
the financial statements required to be delivered pursuant to Section 6.1(a) thereof), to the extent of Excess Cash Flow for such fiscal year in an aggregate amount not in excess of $5,000,000 and (ii) thereafter, up to 50% of Excess Cash Flow for
such fiscal year, (d) so long as no Default shall have occurred and be continuing or shall be caused thereby the Borrower may declare and make Restricted Junior Payments to any Holding Company to pay corporate administrative expenses and other costs
and expenses; provided that the amount of cash distributions made pursuant to this clause (d) (together with the amount of loans made pursuant to Section 7.5(a)(ix)(3)) shall not exceed (i) prior to the Qualifying IPO Closing Date, $1,500,000 and
(ii) thereafter, $5,000,000, in each case, in any fiscal year, (e) the Credit Parties may pay their obligations to Empire Burbank to the extent required to be paid under the Empire Burbank Lease, (f) so long as no Default shall have occurred and be
continuing or shall be caused thereby, LBCI, or any successor entity thereto, may make the payments described in clause (vi) of the definition of Restricted Junior Payment or make the payments with respect to any notes issued under the employment
agreement described in such clause (vi), (g) so long as no Default shall have occurred and be continuing or shall be caused thereby, any Credit Party may make dividend payments to Holdings (through another Holding Company, if applicable), to enable
Holdings to make the payments with respect to any portion of the “Incentive Bonus” which may become payable pursuant to the employment agreements of Winter Horton dated December 18, 2002, Andrew Mars dated November 15, 1998, Xavier Ortiz
dated September 1, 1999 and, subject to Section 6.16, Miguel Banojian that may be entered into after the Closing Date, in each case as amended from time to time, respectively, or with respect to any notes issued with respect thereto; provided that
the aggregate amount of such dividends (together with the aggregate amount of loans made pursuant to Section 7.5(a)(ix)(4)) shall not exceed the amount of such bonuses required to be paid under such employment agreements (including any amounts
required to be paid under any such notes), (h) so long as no Default shall have occurred and be continuing and no Default shall be caused thereby, the Borrower may declare and make dividends (together with loans made pursuant to Section
7.5(a)(ix)(5)) to 
  

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 Media Holdings in an amount equal to the scheduled payments of interest on the Media Holdings Discount Notes to the
extent required to be paid in cash pursuant to the Media Holdings Discount Notes Indenture, provided that, in any fiscal year, the aggregate amount paid pursuant to this clause (h) during such fiscal year (together with the aggregate amount of loans
made pursuant to Section 7.5(a)(ix)(5) during such fiscal year), shall not exceed the aggregate amount of scheduled payments of interest on the Media Holdings Discount Notes to the extent required to be paid in cash on or after October 15, 2008
pursuant to the Media Holdings Discount Notes Indenture during such fiscal year (for the avoidance of doubt any cash interest payments which may become due prior to October 15, 2008 as a result of any election to make cash interest payments with
respect to the Media Holdings Discount Notes shall not be deemed to be “required to be paid in cash,” for the purposes of Sections 7.5 and 7.6) and any liquidated damages required to be paid during such fiscal year in connection with any
registration rights agreement related thereto; (i) the Borrower may make the Qualifying IPO Funding Transaction payments, (j) so long as no Default shall have occurred and be continuing or shall be caused thereby, the Borrower may make dividends
(together with loans made pursuant to Section 7.5(a)(ix)(6)) to any Holding Company in an amount equal to the scheduled payments of interest on Holding Company Debt incurred in accordance with Section 7.15(a)(iv) to the extent required to be paid in
cash pursuant to the documentation governing such Holding Company Debt, provided, that, in any fiscal year, the aggregate amount of dividends made pursuant to this clause (j) during such fiscal year (together with the amount of loans made pursuant
to Section 7.5(a)(ix)(6) during such fiscal year) shall not exceed the aggregate amount of scheduled payments of interest on such Holding Company Debt to the extent required to be paid in cash during such fiscal year and (k) so long as no Default
shall have occurred and be continuing or shall be caused thereby, the Borrower may make payments of interest on the Liberman Subordinated Debt to the extent such payments of interest are permitted to be made under the Liberman Subordination
Agreements. 
  
 Nothing herein shall be deemed to prohibit the
making of any dividend or distribution, or other payment constituting a Restricted Junior Payment under clauses (ii) or (iii) of the definition thereof by any Subsidiary to any Credit Party. Notwithstanding anything herein to the contrary, if part
or all of a Permitted Holdings Tax Distribution or a Permitted Shareholder Tax Distribution is made in the form of a loan (rather than a dividend or other form of distribution), then (i) the terms of such loan shall be determined in the sole
discretion of the Borrower, and (ii) the subsequent cancellation or forgiveness of such loan shall not be treated as a Restricted Junior Payment and shall not reduce the amount of subsequent Permitted Holdings Tax Distributions or Permitted
Shareholder Tax Distributions. 
  
 Notwithstanding anything in
this Agreement or any of the other Loan Documents (including the Alta Subordination Agreement and the Investor Subordination Agreement) to the contrary, each Agent and each Lender hereby consents to the Assumption Agreement, Reaffirmation Agreement,
the Stockholder Voting Agreement, the Termination Agreement, the Election[s] to Purchase, the Irrevocable Instructions, the Conversion Election[s], the Holdings Merger Agreement, the Holdings Merger, the Qualifying IPO, and the Qualifying IPO
Funding Transactions and to the execution, delivery and performance by the Administrative Agent (for itself and on behalf of the Lenders) of the Second Confirmation of Subordination Agreements and the Omnibus Confirmation Agreement. Nothing herein
shall be deemed to prohibit the Alta 
  

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 Repayment on or within one Business Day after the Qualifying IPO Closing Date or any of the other Qualifying IPO Funding
Transactions. 
  
 7.7 Transactions with Affiliates. Except
as expressly permitted by this Agreement (including pursuant to any of the Sections of Articles 6 or 7), no Credit Party will directly or indirectly (a) make any Investment in an Affiliate; (b) transfer, sell, lease, assign or otherwise dispose of
any property to an Affiliate; (c) merge into or consolidate with an Affiliate, or purchase or acquire property from an Affiliate; or (d) enter into any other transaction directly or indirectly with or for the benefit of an Affiliate (including
guarantees and assumptions of obligations of an Affiliate); provided that: 
  
 (i) any Affiliate who is an individual may serve as a director, officer, employee or consultant of any Credit Party, receive compensation
for his or her services in such capacity and benefit from Investments to the extent specified in Section 7.5(a)(iii); 
  
 (ii) the Credit Parties may engage in and continue the transactions with or for the benefit of Affiliates which are described in
Schedule 7.7, and in other similar transactions or transactions entered in the ordinary course of business provided that the terms of such similar transactions or such ordinary course transactions are not less favorable to the Credit Parties
than the terms of a commercially reasonable, arms’ length transaction between non-affiliated parties; provided, further that with respect to any such transaction involving the payment by a Credit Party of consideration in excess of
$5,000,000, the Credit Parties shall provide adequate documentary and other evidence reasonably satisfactory to the Administrative Agent that the terms of such transaction satisfy the immediately preceding proviso; and 
  
 (iii) the Credit Parties may make the payments permitted by
Sections 6.9(e) and (f); 
  
 (iv) the Borrower
may issue the LBI Media Intercompany Note to Media Holdings, borrow funds thereunder and repay such note, in each case, subject to the restrictions and conditions set forth herein; and 
  
 (v) the Credit Parties may enter into and consummate the transactions described in Section 7.4(h).

  
 7.8 Restrictive Agreements. No Credit Party will,
directly or indirectly, enter into, incur or permit to exist any agreement or other arrangement (other than this Agreement, the Senior Subordinated Note Indenture and the documents related thereto, the Media Holdings Discount Notes Indenture and the
documents related thereto, any documents governing any Holding Company Debt incurred in accordance with Section 7.15(a)(iv) and the Holdings Securities Purchase Documents) that prohibits, restricts or imposes any condition upon (a) the ability of
any Credit Party to create, incur or permit to exist any Lien upon any of its property or assets, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect to any shares of its capital stock or other equity interests
or to make or repay loans or advances to any other Credit Party or to Guarantee Indebtedness of any other Credit Party; provided that (i) 
  

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 the foregoing shall not apply to restrictions and conditions imposed by law, this Agreement, the Senior Subordinated Note
Indenture and the documents related thereto, the Media Holdings Discount Notes Indenture and the documents thereto, the Holdings Securities Purchase Documents or any documents governing any Holding Company Debt permitted to be incurred pursuant to
Sections 7.15(a)(iv), (ii) the foregoing shall not apply to restrictions and conditions existing on the date hereof identified on Schedule 7.8 (but shall apply to any extension or renewal of, or any amendment or modification expanding the
scope of, any such restriction or condition), (iii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary, its assets or other Dispositions pending such sale or
Disposition; provided such restrictions and conditions apply only to the Subsidiary or assets that are to be sold or Disposed of, as the case may be, and such sale or Disposition is permitted hereunder, (iv) clause (a) of the foregoing shall
not apply to restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by this Agreement and (v) clause (a) of the foregoing shall not apply to customary provisions in leases and other contracts restricting the
assignment thereof. 
  
 7.9 Sale-Leaseback Transactions. No
Credit Party will, directly or indirectly, enter into any arrangements with any Person (other than another Credit Party; provided the Administrative Agent receives prior written notice of such transaction, copies of all documents and an opportunity
to comment thereon) whereby such Credit Party shall sell or transfer (or request another Person to purchase) any property, real, personal or mixed, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease
such property from any Person. 
  
 7.10 Certain Financial
Covenants. All of the following covenants shall be measured at the end of each fiscal quarter of the Credit Parties, based on the four immediately preceding fiscal quarters of the Credit Parties, except as otherwise set forth below. 

 
 (a) Total Leverage Ratio. The Credit Parties will
not permit the Total Leverage Ratio at the end of any fiscal quarter occurring during the periods below to exceed the ratio set opposite such period below: 
  

			
	 Period

	  	Ratio

	 Closing Date through September 30, 2004
	  	Not Applicable
	 October 1, 2004 through December 31, 2004
	  	7.50 to 1
	 January 1, 2005 through December 31, 2005
	  	7.25 to 1
	 January 1, 2006 through December 31, 2006
	  	6.75 to 1
	 January 1, 2007 through December 31, 2007
	  	6.50 to 1
	 January 1, 2008 through December 31, 2008
	  	6.25 to 1
	 January 1, 2009 and thereafter
	  	6.00 to 1

  

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 (b) Senior Leverage Ratio. The Credit Parties will not permit the Senior Leverage
Ratio at the end of any fiscal quarter occurring during the periods below to exceed the ratio set opposite such period below: 
  

			
	 Period

	  	Ratio

	 Closing Date through September 30, 2005
	  	4.50 to 1
	 October 1, 2005 through December 31, 2006
	  	4.25 to 1
	 January 1, 2007 and thereafter
	  	4.00 to 1

  
 (c)
Interest Coverage Ratio. The Credit Parties will not permit the Interest Coverage Ratio at the end of any fiscal quarter occurring during the periods below to be less than the ratio set opposite such period below: 
  

			
	 Period

	  	Ratio

	 Closing Date through December 31, 2004
	  	1.50 to 1
	 January 1, 2005 through December 31, 2005
	  	1.60 to 1
	 January 1, 2006 through December 31, 2006
	  	1.70 to 1
	 January 1, 2007 and thereafter
	  	1.75 to 1

  
 (d)
Capital Expenditures. The Credit Parties will not permit the aggregate amount of Capital Expenditures in any fiscal year to exceed the amount below set forth opposite such period: 
  

				
	 Period

	  	Amount

	 Fiscal Year ending December 31, 2004
	  	$	15,000,000
	 Fiscal Year ending December 31, 2005
	  	$	15,000,000
	 Fiscal Year ending December 31, 2006
	  	$	18,000,000
	 Fiscal Year ending December 31, 2007
	  	$	21,000,000
	 Fiscal Year ending December 31, 2008 and each fiscal year ending thereafter
	  	$	24,000,000

  
 ; provided,
however that to the extent that actual Capital Expenditures permitted hereunder in any fiscal year shall be less than the maximum amount permitted hereunder for such fiscal year, the excess of the maximum amount permitted hereunder over the
actual Capital Expenditures shall be available for Capital Expenditures hereunder in the immediately succeeding fiscal year but may not be carried over into any subsequent fiscal year. For purposes of this Section 7.10(d), Capital Expenditures made
by the reinvestment of Net Cash Payments in accordance with Section 2.11(b) shall not be deemed Capital Expenditures. 
  
 (e) Fixed Charge Ratio. The Credit Parties will not permit the Fixed Charge Ratio at the end of any fiscal quarter occurring after
the Closing Date to be less than 1.05 to 1. 
  
 7.11 Lines of
Business; Restrictions on the Borrower. No Credit Party shall engage to any substantial extent in any line or lines of business activity other than (i) the Permitted Lines of Business, and (ii) such other lines of business as may be consented to
by the Required Lenders and the Administrative Agent. The Borrower shall not own any assets, other than holding the equity interests of its Subsidiaries, cash and cash equivalents, and Investments permitted hereunder and shall not conduct any
business, other than performing managerial functions 
  

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 relating the business of the Credit Parties and entering into and performing the Basic Documents, the Basic Documents (as
defined in the Existing Credit Agreement), the Empire Burbank Lease, the Empire Burbank Sublease and other documents to which it is a party to the extent the execution of such documents is not otherwise prohibited hereunder (excluding by operation
of this sentence) including agreements with respect to Acquisitions permitted hereunder and all activities reasonably incident thereto. 
  
 7.12 Subordinated Indebtedness. No Credit Party will purchase, redeem, retire or otherwise acquire for value, or set apart any money for a sinking,
defeasance or other analogous fund for the purchase, redemption, retirement or other acquisition of, or make any payment or prepayment of the principal of or interest on, or any other amount owing in respect of, any Subordinated Indebtedness, except
(a) to the extent permitted by the Liberman Subordination Agreements, (b) scheduled payments of interest in respect of the Senior Subordinated Notes and (c) the Qualifying IPO Funding Transactions. 
  
 7.13 Modifications of Certain Documents. No Credit Party will consent
to any modification, supplement or waiver of any of the provisions of any agreements, instruments or documents in respect of any Subordinated Indebtedness, the effect of which is to (i) increase principal, interest, fees, reimbursements or other
amounts payable with respect thereto or create any additional payment obligations thereunder, (ii) accelerate any scheduled or otherwise required payments of principal, interest, fees, reimbursements or other amounts, (iii) cause any covenants or
other agreements to be more restrictive upon, or burdensome to the Credit Parties in any material respect, (iv) alter any event of default provisions contained in any Subordinated Indebtedness in a manner materially adverse to the Credit Parties,
(v) modify any of the subordination provisions thereof, (vi) designate any Indebtedness (other than the Loans and the other obligations of the Credit Parties under the Loan Documents) as “Designated Senior Debt” for purposes of the Senior
Subordinated Note Indenture, or (vii) make any other change which could reasonably be expected to have a Material Adverse Effect, in each case, without the prior consent of the Required Lenders or the Administrative Agent on their behalf. No Credit
Party will consent to any modification, supplement or waiver of any of the provisions of any of the Shop At Home Acquisition Documents in a manner materially adverse to the Credit Parties, without the prior consent of the Required Lenders or the
Administrative Agent on their behalf. Without limiting the generality of the foregoing except as expressly permitted by this Agreement, no Credit Party will Guarantee any Subordinated Indebtedness or any Holding Company Debt or any other
Indebtedness of any Holding Company without the prior consent of the Required Lenders and the Administrative Agent. 
  
 7.14 Empire Burbank. 
  
 (a) Empire Burbank shall not (i) amend, modify or change, or consent or agree to any amendment, modification or change to, the Empire
Burbank Loan Documents in a manner which materially adversely affects the Administrative Agent or the Lenders (it being understood that no amendment or modification to Section 10.1 (regarding the pledge of Empire Burbank stock to the Administrative
Agent, and the exercise of the Administrative Agent’s rights in connection therewith), Section 13, or Section 14.3 (regarding notice to the Administrative Agent) thereof shall be permitted without the prior written consent of the Administrative
Agent) or (ii) amend, modify or change, or consent or agree to any amendment, modification or change 
  

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 to, the Empire Burbank Lease in a manner which materially adversely affects the Administrative Agent or
the Lenders (it being understood that no amendment or modification to the last sentence of Section 5.2 of the Empire Burbank Lease (regarding the rights of creditors to enter the premises to exercise rights and remedies regarding personal property
of LBCI) shall be permitted without the prior written consent of the Administrative Agent) without the prior written consent of the Administrative Agent, which consent shall not be unreasonably withheld or delayed. Notwithstanding anything to the
contrary in this Agreement or any of the other Loan Documents, so long as no Default shall have occurred and be continuing and no Default shall be caused thereby, Empire Burbank may at any time pay or prepay in full or in part the obligations owing
under the Empire Burbank Loan Documents (whether or not such payment or prepayment is made with the proceeds of a Permitted Refinancing), provided that if such payment or prepayment is made with proceeds of the Loans, Empire Burbank shall
provide to the Administrative Agent the documentation required to be delivered by Credit Parties for Additional Mortgaged Property as set forth in Section 6.13(b) as soon a practicable after such prepayment. 
  
 (b) The Borrower agrees to deliver to the Administrative
Agent prompt written notice of any written declaration of default made by the lender under the Empire Burbank Loan Documents. 
  
 (c) Empire Burbank shall not (i) engage in any business other than the ownership of the Burbank Office Property (and any additions to such
Property), the leasing of such Property pursuant to the Empire Burbank Lease, the subleasing of certain portions thereof under the Empire Burbank Sublease, the subleasing or renting to third parties of certain sound stages, production equipment,
studios and related office space included in such Property (or any additions to such Property) for use by such third parties or Empire Burbank as production facilities and businesses incidental thereto and guaranteeing the obligations under the Loan
Documents, the obligations under the Senior Subordinated Notes and the Senior Subordinated Note Indenture and the documents related thereto or (ii) own any assets other than the Burbank Office Property and any additions to such Property, its
interests under the Empire Burbank Lease and the Empire Burbank Sublease and certain production and related equipment for use by third parties in connection with the subleasing of such sound stages and studios and additional assets necessary or
advisable for the conduct in the ordinary course of its business described in clause (i). 
  
 7.15 Holding Company Restrictions. 
  
 (a) The Holding Companies shall not create, incur, assume or permit to exist any Indebtedness which requires the payment in cash of any principal or interest in respect thereof prior to March 31, 2011, without the
written consent of the Required Lenders, except for (i) the Indebtedness incurred or to be incurred by (A) Holdings pursuant to the Holdings Securities Purchase Documents and (B) Media Holdings pursuant to the Media Holdings Discount Notes
Indenture, the net cash proceeds of which additional Indebtedness incurred after the Closing Date shall be contributed as capital to the Borrower and shall be applied to the Loans in accordance with Section 2.11(b)(v) and any Refinancing
Indebtedness, (ii) intercompany Indebtedness incurred by any Holding Company and owing to the Borrower or any other Credit Party or any other Holding Company, (iii) the Indebtedness which may be required to be incurred by 
  

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 Holdings under the employment agreement described in Section 5.1(h) to the extent that payments under the phantom stock
incentive provisions of such agreements are not permitted by this Agreement or any other document to be made in cash and any Refinancing Indebtedness, and (iv) in addition to any of the foregoing clauses (i), (ii) and (iii), Indebtedness incurred by
any Holding Company after the date hereof (and any Refinancing Indebtedness) so long as (1) no Default exists at the time of such incurrence or would result therefrom, (2) no installments of principal of such Holding Company Debt shall be payable
(whether by sinking fund payments, mandatory redemptions or repurchases or otherwise) earlier than the date six months after the Revolving Credit Maturity Date, (3) the covenants, events of default and mandatory prepayment requirements (whether by
sinking fund payments, mandatory redemptions or repurchases or otherwise), of such Holding Company Debt are not more restrictive in any material respect on the Borrower and its Subsidiaries than the covenants, events of default and mandatory
prepayment requirements in the Loan Documents, (4) the aggregate principal amount of all such Holding Company Debt (and any Refinancing Indebtedness) incurred after the date hereof does not exceed $25,000,000 at any one time outstanding, (5) no
Liens are created by the Borrower or any Subsidiary to secure such Indebtedness, (6) no Credit Party shall guaranty any such Holding Company Debt, and (7) the Borrower furnishes to the Administrative Agent on the date of such incurrence a
certificate of a Financial Officer demonstrating in reasonable detail compliance with the foregoing conditions. 
  
 (b) Except for the Qualifying IPO Funding Transactions and the execution, delivery and performance of agreements in connection therewith (including the
Assumption Agreement, the Termination Agreement and documents related thereto), no Holding Company will purchase, redeem, retire or otherwise acquire for value, or set apart any money for a sinking, defeasance or other analogous fund for the
purchase, redemption, retirement or other acquisition of, or make any payment or prepayment of the principal of, or interest on, or any other amount owing in respect of, (i) the Holdings Securities Purchase Documents, except, subject to the
provisions of the Alta Subordination Agreement, to the extent required by the Holdings Securities Purchase Documents or (ii) the Media Holdings Discount Notes, except (A) to the extent required by the Media Holdings Discount Notes Indenture (for the
avoidance of doubt any cash interest payments which may become due prior to October 15, 2008 as a result of any election to make cash interest payments with respect to the Media Holdings Discount Notes shall not be deemed to be a payment of interest
required by the Media Holdings Discount Notes Indenture) or (B) if no Default shall have occurred and be continuing, permitted by the Media Holdings Discount Notes Indenture. 
  
 (c) Except for the Qualifying IPO Funding Transactions and the execution, delivery and performance of agreements in
connection therewith (including the Assumption Agreement, the Termination Agreement and documents related thereto), no Holding Company will consent to any modification, supplement or waiver of any of the provisions of the Media Holdings Discount
Notes Indenture, the Holdings Securities Purchase Documents or any document relating to any other Holding Company Debt permitted hereunder, the effect of which is to (i) increase principal, interest, fees, reimbursements or other amounts payable
with respect thereto or create any additional payment obligations thereunder, (ii) accelerate any scheduled or otherwise required payments of principal, interest, fees, reimbursements or other amounts, (iii) cause any amount of interest payable
‘in kind” to be payable in cash, (iv) cause any covenants or other agreements to be more restrictive upon, or burdensome to, such Holding Company, in any respect materially adverse to the Credit Parties, (v) alter any event of default
provisions 
  

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 contained in the Media Holdings Discount Notes Indenture or the Holdings Securities Purchase Documents in any material
respect, or (vi) make any other change which could reasonably be expected to have a Material Adverse Effect, in each case, without the prior written consent of the Required Lenders or the Administrative Agent on their behalf. 
  
 (d) Media Holdings shall not conduct any business or own any assets other
than holding all of the equity interests issued by the Borrower or any other Holding Company, holding cash and cash equivalents, making any loans to or from any other Holding Company or any Credit Party, or any loans to any shareholder of Holdings,
forgiving or canceling any such loans or any other loans to its Affiliates, performing managerial functions relating to the businesses of the Credit Parties, entering into and performing its obligations under the Media Holdings Discount Notes
Indenture, the LBI Media Intercompany Note, any documents relating to any other Holding Company Indebtedness permitted hereunder, the Basic Documents to which it is a party, the Basic Documents (as defined in the Existing Credit Agreement and/or the
Original Credit Agreement) to which it is a party, and any activities reasonably incident to the foregoing. 
  
 (e) Holdings shall not conduct any business or own any assets other than holding all of the equity interests issued by Media Holdings (or, if a new
Holding Company is created after the Closing Date, all of the equity interests of such Holding Company to the extent applicable), holding cash and cash equivalents, making any loans to or from any other Holding Company or any Credit Party or any
loans to any shareholder of Holdings, forgiving or canceling any such loans or any other loans to its Affiliates, making distributions or loans to its shareholders with the proceeds of Permitted Shareholder Tax Distributions or Permitted Holdings
Tax Distributions, performing managerial functions relating to the businesses of the Credit Parties and the other Holding Companies, performing all activities in connection with (and entering into and performing any agreements in respect of), the
Holdings Securities Purchase Documents, any other Holding Company Debt, the key employee agreements to which it is or will be a party (and service agreements with any Credit Party relating to such employment agreements), any stock incentive plans or
other employee benefit plans for the issuance of equity or any interests in its equity, any transactions pursuant to which Holdings issues its equity or any interests in its equity as consideration for acquisitions and other transactions, the
Holdings Merger, a Qualifying IPO, and the Qualifying IPO Funding Transactions, and engaging in all activities entered into (and entering into and performing any agreements related thereto) in order to perform its roles and functions as may be
necessary or desirable as a publicly traded holding company, and performing such roles and functions as may be necessary or desirable as a publicly traded holding company. 
  
 (f) Media Holdings shall not pledge, encumber or hypothecate any of the capital stock of the Borrower. Holdings shall not
pledge, encumber or hypothecate any of the capital stock of Media Holdings. 
  
 7.16 License Subsidiaries. 
  
 (a) Other than ancillary FCC Licenses owned by Empire Burbank (none of which are Material FCC Licenses), the Credit Parties will cause each FCC License which is owned or acquired by any Credit Party to be held in a
License Subsidiary at all times (and provided that any FCC License relating to a Broadcast Station located outside the Designated Market Areas of those Broadcast Stations owned on the Closing Date, and acquired after the date 
  

 120 

 hereof shall, at the reasonable request of the Required Lenders, be held in a separate License
Subsidiary). 
  
 (b) The Credit Parties shall not
allow any License Subsidiary to (i) own any right, franchise or other asset except for FCC Licenses transferred to it by a Credit Party and FCC Licenses acquired by it directly or (ii) engage in any business or make any Investment other than holding
such FCC Licenses. 
  
 (c) Notwithstanding the
foregoing, no License Subsidiary shall be permitted, under any circumstances, to create, incur, assume or suffer to exist: 
  
 (i) any Indebtedness, other than Indebtedness to the Credit Parties or under the Loan Documents and the Indebtedness as a guarantor under
the Senior Subordinated Note Indenture; 
  
 (ii)
any Lien, other than Liens created under the Loan Documents; and 
  
 (iii) any Guarantee, other than the Guarantee of the Loans and the Guarantee of the Senior Subordinated Note Indenture and the Senior Subordinated Notes. 
  
 ARTICLE 8 
  
 Events of Default 
  
 8.1 Events of Default. 
  
 If any of the following events (“Events of Default”) shall occur: 
  
 (a) the Credit Parties shall fail to pay to the Administrative Agent or the Lenders (i) any principal of any
Loan or any Reimbursement Obligation in respect of any LC Disbursement, on the due date thereof, (ii) any interest on, any Loan, within three Business Days after the same shall become due and payable, whether at the due date thereof or at a date
fixed for prepayment thereof or otherwise, or (iii) any other amount payable under this Agreement or any fee payable under this Agreement or any other agreement, within five Business Days after the same shall become due and payable, whether at the
due date thereof or at a date fixed for prepayment thereof, by acceleration of such due or prepayment date, or otherwise; 
  
 (b) any representation or warranty made or deemed made by or on behalf of any Credit Party or Empire Burbank in or in connection with this
Agreement or any amendment or modification hereof or of any Loan Document, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any amendment or modification hereof or of
any Loan Document, shall prove to have been incorrect when made or deemed made in any material respect; 
  
 (c) (i) any Credit Party shall fail to observe or perform any covenant, condition or agreement contained in Sections 6.2, 6.3, 6.7, 6.8,
6.9, 6.10, 6.14 or in Article 7, (ii) 
  

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 any Holding Company shall fail to observe or perform any covenant, condition or agreement contained in
Section 7.15, or (iii) any Credit Party shall fail to observe or perform any other covenant, condition or agreement contained in Article 6 and such failure described in this clause (iii) shall continue unremedied for a period of 30 days after the
earlier of (x) actual knowledge by a Financial Officer of any Credit Party or (y) notice thereof from the Administrative Agent (given at the request of any Lender) to the Borrower; 
  
 (d) (i) any Credit Party shall fail to observe or perform any covenant, condition or agreement contained in
this Agreement (other than those specified in clauses (a), (b) or (c) of this Article) or any other Loan Document or (ii) Empire Burbank shall fail to observe or perform any covenant, condition or agreement contained in Section 7.14, and such
failure described in clause (i) or (ii) shall continue unremedied for a period of 30 days after notice thereof from the Administrative Agent (given at the request of any Lender) to the Borrower; 
  
 (e) any Credit Party shall fail to make any payment (whether
of principal or interest and regardless of amount) in respect of any Material Indebtedness (other than obligations under the Loan Documents) of any Credit Party, when and as the same shall become due and payable, after giving effect to any grace
period with respect thereto; 
  
 (f) any event or
condition occurs that results in any Material Indebtedness of any Credit Party becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any
such Material Indebtedness or any trustee or agent on its or their behalf to cause any such Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity except for
prepayments, repurchases, redemptions or defeasances of secured Material Indebtedness of any Credit Party resulting from the voluntary sale or transfer of property securing such Indebtedness; 
  
 (g) an involuntary proceeding shall be commenced or an
involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of any Credit Party or Holding Company or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy,
insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Credit Party or Holding Company or for a substantial part of its
assets, and, in any such case, such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be entered; 
  
 (h) any Credit Party or Holding Company shall (i) voluntarily commence any proceeding or file any petition
seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or petition described in clause (g) of this Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Credit Party or Holding
Company or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the
purpose of effecting 
  

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 any of the foregoing; provided that none of the foregoing events of this clause (h) shall be
deemed to have occurred as a result of the consummation of the Holdings Merger; 
  
 (i) any Credit Party or Holding Company shall become unable, admit in writing or fail generally to pay its debts as they become due;

  
 (j) a final judgment or judgments for the
payment of money in excess of $10,000,000 in the aggregate (exclusive of judgment amounts fully covered by insurance where the insurer has admitted liability in respect of such judgment) shall be rendered by one or more courts, administrative
tribunals or other bodies having jurisdiction against any Credit Party and the same shall not be vacated or discharged (or provision shall not be made for such discharge), or a stay of execution thereof shall not be procured, within 60 days from the
date of entry thereof and the relevant Credit Party shall not, within said period of 60 days, or such longer period during which execution of the same shall have been stayed, appeal therefrom and cause the execution thereof to be stayed during such
appeal; 
  
 (k) an ERISA Event shall have
occurred that, in the opinion of the Required Lenders, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Effect; 
  
 (l) there shall have been asserted against any Credit Party
claims or liabilities, whether accrued, absolute or contingent, based on or arising from the generation, storage, transport, handling or disposal of Hazardous Materials by any Credit Party or any of its Affiliates, or any predecessor in interest of
any Credit Party or any of its Affiliates, or relating to any site or facility owned, operated or leased by any Credit Party or any of its Subsidiaries or Affiliates, which claims or liabilities (insofar as they are payable by any Credit Party but
after deducting any portion thereof which is reasonably expected to be paid by other credit worthy Persons jointly and severally liable therefor), in the judgment of the Required Lenders are reasonably likely to be determined adversely to any Credit
Party, and the amount thereof is, singly or in the aggregate, reasonably likely to have a Material Adverse Effect; 
  
 (m) any Change of Control shall have occurred; 
  

(n) any of the following shall occur: (i) the Liens created by the Collateral Documents shall at any time (other than by reason of the
Administrative Agent relinquishing such Lien) cease in any material respect to constitute valid and perfected Liens on the Collateral intended to be covered thereby; (ii) except for expiration in accordance with its respective terms, any Collateral
Document shall for whatever reason be terminated, or shall cease to be in full force and effect; or (iii) the enforceability of any Collateral Document shall be contested in writing by any Credit Party; 
  
 (o) any Credit Party or Empire Burbank shall assert in
writing that its obligations hereunder or under the Collateral Documents shall be invalid or unenforceable; 
  
 (p) any Holding Company shall fail to observe or perform any covenant, condition or agreement in respect of any Holding Company Debt with
an aggregate principal amount exceeding $10,000,000 that results in such Holding Company Debt becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the 
  

 123 

 lapse of time or both) the holder or holders of any Holding Company Debt with an aggregate principal
amount exceeding $10,000,000 or any trustee or agent on its or their behalf to cause such Holding Company Debt to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity except for
prepayments, repurchases, redemptions or defeasances resulting from the voluntary sale or transfer of property securing such Holding Company Debt to the extent permitted hereunder; 
  
 (q) Jose or Lenard Liberman shall default in the observance or performance of their respective obligations
under the Liberman Subordination Agreements (if any) and such default shall continue unremedied for a period of 30 days after the earlier of (x) actual knowledge by a Financial Officer of any Credit Party or (y) notice thereof from the
Administrative Agent (given at the request of any Lender) to the Borrower; 
  
 (r) other than as a result of a sale or other Disposition permitted hereunder or from the conversion of any Broadcast Station to digital television or in connection with any Relocation, except any such conversion or
Relocation which causes a Material Adverse Effect, any Credit Party shall lose, fail to keep in force, suffer the termination, suspension or revocation of, or terminate, forfeit or suffer an adverse amendment to, any main station FCC License(s)
(excluding any auxiliary service licenses) held by any Credit Party which contribute(s) in the aggregate in excess of 10% of the EBITDA of the Credit Parties for the immediately preceding fiscal year as stated in the Compliance Certificate required
to be delivered for such fiscal year pursuant to Section 6.1(c) or, if such Compliance Certificate is not available at the time of such loss, termination, suspension or revocation, as demonstrated through financial statements and reports acceptable
to the Administrative Agent in its reasonable discretion; or 
  
 (s) any Credit Party shall permit its on-the-air broadcast operations to be interrupted at any time for more than seven days, whether or not consecutive, during any period of ten consecutive days, if such interruption
is likely to have a Material Adverse Effect unless (and only so long as), substantially all damages, liabilities and other effects of such interruption of service (including any adverse effect on the Credit Parties’ ability to perform its
obligations under this Agreement) are fully covered by business interruption insurance; 
  
 then, and in every such event (other than an event described in clause (g) or (h) of this Section 8.1), and at any time thereafter during the continuance of such event, the Administrative Agent may, and at the request
of the Required Lenders shall, by notice to the Credit Parties, take either or both of the following actions, at the same or different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, (ii) declare the
Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due
and payable, together with accrued interest thereon and all fees and other obligations of the Credit Parties accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which
are hereby waived by the Credit Parties, and (iii) the Administrative Agent may exercise all of the rights hereunder or under the Collateral Documents or applicable law, including the rights as secured party and mortgagee under the Collateral
Documents; and in case of any event described in clause (g) or (h) of this Section 8.1, the Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued 
  

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 interest thereon and all fees and other obligations of the Credit Parties accrued hereunder, shall
automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Credit Parties, and the Administrative Agent shall be permitted to exercise such rights hereunder or under
the Collateral Documents or applicable law, including the rights as secured party and mortgagee under the Collateral Documents to the extent permitted by applicable law. 
  
 ARTICLE 9 
  
 The Administrative Agent 
  
 9.1 Appointment and Authorization. Each of the Lenders and the Issuing Lender hereby irrevocably appoints the Administrative Agent as its agent and
authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms of this Agreement and the other Loan Documents, together with such actions and powers as are
reasonably incidental thereto. 
  
 9.2 Administrative
Agent’s Rights as Lender. The Lender or other financial institution serving as the Administrative Agent or the Issuing Lender hereunder shall have the same rights and powers in its capacity as a Lender hereunder as any other Lender and may
exercise the same as though it were not the Administrative Agent or the Issuing Lender, and such institution and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with any Credit Party or any
Subsidiary or other Affiliate of any thereof as if it were not the Administrative Agent or the Issuing Lender hereunder. 
  
 9.3 Duties As Expressly Stated. Neither the Administrative Agent nor the Issuing Lender shall have any duties or obligations except those expressly
set forth in this Agreement and the other Loan Documents. Without limiting the generality of the foregoing, (a) neither the Administrative Agent nor the Issuing Lender shall be subject to any fiduciary or other implied duties, regardless of whether
a Default has occurred and is continuing, (b) neither the Administrative Agent nor the Issuing Lender shall have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly
contemplated by this Agreement and the other Loan Documents that the Administrative Agent or Issuing Lender is required to exercise in writing by the Required Lenders (or such other number or percentage of the Lenders as is required hereunder with
respect to such action), and (c) except as expressly set forth herein and in the other Loan Documents, neither the Administrative Agent nor the Issuing Lender shall have any duty to disclose, or shall be liable for the failure to disclose, any
information relating to any Credit Party or any of their respective Subsidiaries that is communicated to or obtained by the financial institution serving as the Administrative Agent or the Issuing Lender or any of its Affiliates or Approved Funds in
any capacity. Neither the Administrative Agent nor the Issuing Lender shall be liable for any action taken or not taken by it with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as is
required hereunder with respect to such action) or all of the Lenders if expressly required, or in the absence of its own gross negligence or willful misconduct. Neither the Administrative Agent nor the Issuing Lender shall be deemed to have
knowledge of any Default unless and until written notice thereof is given to the Administrative Agent or the Issuing Lender by the Borrower or a Lender, and the Administrative Agent shall not be responsible for 
  

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 or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in, or in connection
with, this Agreement or the other Loan Documents, (ii) the contents of any certificate, report or other document delivered hereunder or under any of the other Loan Documents or in connection herewith of therewith, (iii) the performance or observance
of any of the covenants, agreements or other terms or conditions set forth herein or in any other Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, the other Loan Documents or any other agreement,
instrument or document, or (v) the satisfaction of any condition set forth in Article 5 or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent or the Issuing Lender. Neither the
Administrative Agent nor the Issuing Lender shall, except to the extent the Administrative Agent expressly instructed by the Required Lenders with respect to collateral security under the Collateral Documents, be required to initiate or conduct any
litigation or collection proceedings hereunder or under any other Loan Document; provided, however, that the Administrative Agent shall not be required to take any action which exposes the Administrative Agent to personal liability or which
is contrary to the Loan Documents or applicable law. 
  
 9.4
Reliance By Administrative Agent. The Administrative Agent and the Issuing Lender shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document
or other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative Agent and the Issuing Lender also may rely upon any statement made to it orally or by telephone and believed by it to be made by
the proper Person, and shall not incur any liability for relying thereon. The Administrative Agent and the Issuing Lender may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it,
and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. The Administrative Agent and the Issuing Lender shall be fully justified in failing or refusing to take any
action under this Agreement or any other Credit Document unless it shall first receive such advice or concurrence of the Required Lenders (or, if so specified by this Agreement, all Lenders) as it deems appropriate or it shall first be indemnified
to its satisfaction by the Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action (it being understood that this provision shall not release the Administrative Agent
from performing any action with respect to the Borrower expressly required to be performed by it pursuant to the terms hereof) under this Agreement. The Administrative Agent and the Issuing Lender shall in all cases be fully protected in acting, or
in refraining from acting, under this Agreement and the other Loan Documents in accordance with a request of the Required Lenders (or, if so specified by this Agreement, all Lenders), and such request and any action taken or failure to act pursuant
thereto shall be binding upon all the Lenders and all future holders of the Loans. 
  
 9.5 Action Through Sub-Agents. The Administrative Agent and the Issuing Lender may perform any and all of its duties, and exercise its rights and powers, by or through any one or more sub-agents appointed by
the Administrative Agent or the Issuing Lender. The Administrative Agent and the Issuing Lender and any such sub-agent may perform any and all its duties and exercise its rights and powers through its Related Parties. The exculpatory provisions of
the preceding paragraphs shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and the Issuing Lender and any such sub-agent, and shall apply to its 
  

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 activities in connection with the syndication of the credit facilities provided for herein as well as activities of the
Administrative Agent or the Issuing Lender. 
  
 9.6 Resignation
of Administrative Agent and Appointment of Successor Administrative Agent. Subject to the appointment and acceptance of a successor Administrative Agent, as provided in this paragraph, the Administrative Agent may resign at any time upon 30
days’ notice to the Lenders, the Issuing Lender and the Borrower. Upon any such resignation, the Required Lenders shall have the right, with the prior written consent of the Borrower (which shall not be unreasonably withheld or delayed), to
appoint a successor Administrative Agent. If no successor shall have been so appointed and shall have accepted such appointment within 30 days after such retiring Administrative Agent gives notice of its resignation, then such retiring
Administrative Agent may, on behalf of the Lenders and the Issuing Lender, appoint a successor Administrative Agent, which shall be a bank with an office in Los Angeles, California or New York, New York, or an Affiliate of any such bank. Upon the
acceptance of its appointment as Administrative Agent hereunder, by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring
Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless
otherwise agreed between the Borrower and such successor. After an Administrative Agent’s resignation hereunder, the provisions of this Article and Section 10.3 shall continue in effect for the benefit of such retiring Administrative Agent, its
sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Administrative Agent. 
  
 9.7 Lenders’ Independent Decisions. Each Lender acknowledges that it has, independently and without reliance
upon the Administrative Agent, the Issuing Lender or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges
that it will, independently and without reliance upon the Administrative Agent, the Issuing Lender or any other Lender and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in
taking or not taking action under or based upon this Agreement and the other Loan Documents, any related agreement or any document furnished hereunder or thereunder. Except as explicitly provided herein, neither the Administrative Agent nor the
Issuing Lender has any duty or responsibility, either initially or on a continuing basis, to provide any Lender with any credit or other information with respect to such operations, business, property, condition or creditworthiness, whether such
information comes into its possession on or before the first Event of Default or at any time thereafter. Neither the Administrative Agent nor the Issuing Lender shall be deemed a trustee or other fiduciary on behalf of any party. 
  
 9.8 Indemnification. Each Lender agrees to indemnify and hold harmless
the Administrative Agent, the Lead Arranger and the Issuing Lender (to the extent not reimbursed under Section 10.3, but without limiting the obligations of the Borrower under Section 10.3), ratably in accordance with the aggregate principal amount
of the respective Commitments of and/or Loans and LC Exposure held by the Lenders (or, if all of the Commitments shall have been terminated or expired, ratably in accordance with the aggregate outstanding amount of the 
  

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 Loans and LC Exposure held by the Lenders), for any and all liabilities (including pursuant to any Environmental Law),
obligations, losses, damages, penalties, actions, judgments, deficiencies, suits, costs, expenses (including reasonable attorney’s fees) or disbursements of any kind and nature whatsoever that may be imposed on, incurred by or asserted against
the Administrative Agent, the Lead Arranger or the Issuing Lender (including by any Lender) arising out of or by reason of any investigation in or in any way relating to or arising out of any Loan Document or any other documents contemplated by or
referred to therein for any action taken or omitted to be taken by the Administrative Agent, the Lead Arranger or the Issuing Lender under or in respect of any of the Loan Documents or other such documents or the transactions contemplated thereby
(including the costs and expenses that the Borrower is obligated to pay under Section 10.3, but excluding, unless a Default has occurred and is continuing, normal administrative costs and expenses incident to the performance of its agency duties
hereunder) or the enforcement of any of the terms hereof or thereof or of any such other documents; provided, however, that no Lender shall be liable for any of the foregoing to the extent they are determined by a court of competent
jurisdiction in a final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of the party to be indemnified. The agreements set forth in this Section 9.8 shall survive the payment of all Loans and other
obligations hereunder and shall be in addition to and not in lieu of any other indemnification agreements contained in any other Loan Document. 
  
 9.9 Consents Under Other Loan Documents. Except as otherwise provided in this Agreement and the other Loan Documents, the Administrative Agent may,
with the prior consent of the Required Lenders (but not otherwise), consent to any modification, supplement or waiver under any of the other Loan Documents. 
  
 ARTICLE 10 
  
 Miscellaneous 
  
 10.1 Notices. Except in the case of notices and other communications expressly permitted to be given by telephone, all notices and other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telephonic facsimile (fax), as follows: 
  
 (a) if to any Credit Party, to LBI Media, Inc., 1845 West Empire Avenue, Burbank, CA 91504, Attention: Executive Vice President (fax no.
(818) 558-4244), with copies to: O’Melveny & Myers LLP, 400 South Hope Street, Los Angeles, CA 90071, Attention: Joseph K. Kim (fax no. (213) 430-6407). 
  
 (b) if to the Administrative Agent, to Credit Suisse First Boston, Eleven Madison Avenue, 23rd Floor, New York, New York 10010, Attention: William O’Daly (fax no. (212) 325-8072), with a copy to Palmer & Dodge
LLP, 111 Huntington Avenue, Boston, Massachusetts 02199, Attention: George Ticknor (fax no. (617) 227-4420); 
  
 (c) if to any Lender (including to CSFB in its capacity as the Issuing Lender), to it at its address (or fax number) set forth in its
Administrative Questionnaire. 
  

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 Any party hereto may change its address or fax number for notices and other communications hereunder by notice to the
other parties hereto. All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt. 
  
 10.2 Waivers; Amendments. 
  
 (a) No failure or delay by the Administrative Agent, the
Issuing Lender or any Lender in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or
power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Administrative Agent, the Issuing Lender and the Lenders hereunder are cumulative and are not exclusive of any rights
or remedies that they would otherwise have. No waiver of any provision of this Agreement or consent to any departure by any Credit Party or Subsidiary therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of
this Section 10.2, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall
not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any Lender or the Issuing Lender may have had notice or knowledge of such Default at the time. 
  
 (b) Neither this Agreement nor any other Loan Document nor
any provision hereof or thereof may be waived, amended or modified except to the extent this Agreement or any other Loan Document provides for revisions to the schedules hereto or thereto with the approval of the Administrative Agent or pursuant to
an agreement or agreements in writing entered into by the Borrower and the Required Lenders or by the Borrower and the Administrative Agent with the written consent of the Required Lenders and the Administrative Agent; provided that no such
agreement shall: 
  
 (i) increase the Commitment
of any Lender without the written consent of such Lender and the Administrative Agent, except that the consent of the Administrative Agent shall not be required with respect to any Revolving Credit Commitment Increase; 
  
 (ii) reduce the principal amount of any Loan or LC
Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written consent of each Lender affected thereby; 
  
 (iii) postpone the scheduled date of payment of the principal amount of any Loan or LC Disbursement other than mandatory prepayments of
the Loans required under Section 2.11(b), or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such payment, change the maturity date of any Loan, or postpone the scheduled date of expiration of any
Commitment, or postpone the ultimate expiration date of any Letter of Credit beyond the Revolving Credit Maturity Date, without the written consent of each Lender affected thereby; 
  

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 (iv) change Section 2.11(c) in a manner that would alter the application of prepayments
thereunder, or change Section 2.18(b) or (c) in a manner that would alter the pro rata sharing of payments required thereby, without in each case the written consent of each Lender; 
  
 (v) change any of the provisions of this Section 10.2 or the definition of “Required Lenders” or
any other provision hereof specifying the number or percentage of Lenders required to waive, amend or modify any rights hereunder or under any other Loan Document or make any determination or grant any consent hereunder or thereunder, without the
written consent of each Lender; 
  
 (vi) release
any of the Guarantors from its obligations in respect of its Guarantee under Article 3 or release all or substantially all of the Collateral (or terminate any Lien with respect thereto), except as expressly permitted in the Loan Documents, without
the written consent of each Lender; or 
  
 (vii)
waive any of the conditions precedent specified in Section 5.1 without the consent of each Lender and the Administrative Agent; 
  
 provided further that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent, the Swing
Loan Lender or the Issuing Lender hereunder without the prior written consent of such Agent, the Swing Loan Lender or the Issuing Lender, as the case may be. 
  

(c) None of the Collateral Documents nor any provision thereof may be waived, amended or modified except pursuant to an agreement or
agreements in writing entered into by the Credit Parties party thereto, and by the Administrative Agent with the written consent of the Required Lenders. 
  
 10.3 Expenses; Indemnity; Damage Waiver. 
  
 (a) The Credit Parties jointly and severally agree to pay, or reimburse the Administrative Agent, the Lead Arranger or the Lenders, as
applicable, for paying, (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent, the Lead Arranger and their Affiliates, including the reasonable fees, charges and disbursements of Special Counsel, any FCC counsel or local
counsel, in connection with the syndication of the credit facilities provided for herein, the preparation of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not
the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing Lender in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand
for payment thereunder, (iii) all out-of-pocket expenses incurred by the Administrative Agent, the Issuing Lender, the Lead Arranger or any Lender, including the reasonable fees, charges and disbursements of any counsel for the Administrative Agent,
the Issuing Lender, the Lead Arranger or any Lender, in connection with the enforcement or protection of its rights in connection with this Agreement and the other Loan Documents, including its rights under this Section 10.3, or in connection with
the Loans made or Letters of Credit issued hereunder, including in connection with any workout, restructuring or 
  

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 negotiations in respect thereof, and (iv) all Other Taxes levied by any Governmental Authority in respect
of this Agreement or any of the other Loan Documents or any other document referred to herein or therein and all costs, expenses, taxes, assessments and other charges incurred in connection with any filing, registration, recording or perfection of
any security interest contemplated by any Collateral Document or any other document referred to therein. 
  
 (b) The Credit Parties jointly and severally agree to indemnify the Administrative Agent, the Lead Arranger, the Issuing Lender and each
Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses,
including the fees, charges and disbursements of any counsel for any Indemnitee and settlement costs, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of this
Agreement, the other Loan Documents or any agreement or instrument contemplated hereby, the performance or failure to perform by the parties hereto and thereto of their respective obligations hereunder or thereunder or the consummation of the
Transactions or any other transactions contemplated hereby or thereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by the Issuing Lender to honor a demand for payment under a Letter of Credit if the
documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by any Credit Party
or any of their Subsidiaries, or any Environmental Liability related in any way to any Credit Party or any of their Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses (are determined by a court of competent jurisdiction by final and nonappealable judgment to have) resulted from the gross negligence or willful misconduct of such Indemnitee. 
  
 (c) To the extent that the Credit Parties fail to pay any
amount required to be paid by them to the Administrative Agent under paragraph (a) or (b) of this Section 10.3, each Lender severally agrees to pay to the Administrative Agent such Lender’s Applicable Percentage (determined as of the time that
the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or
asserted against the Administrative Agent in its capacity as such. To the extent that the Credit Parties fail to pay any amount required to be paid by them to the Lead Arranger under paragraph (a) or (b) of this Section 10.3, each Lender severally
agrees to pay to the Lead Arranger such Lender’s Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the unreimbursed expense or
indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Lead Arranger in its capacity as such. To the extent that the Credit Parties fail to pay any amount required to be paid by
them to the Issuing Lender under paragraph (a) or (b) of this Section 10.3, each Revolving Credit Lender severally agrees to pay to the Issuing Lender such Lender’s Applicable Percentage (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the 
  

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 unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may
be, was incurred by or asserted against the Issuing Lender in its capacity as such. 
  
 (d) To the extent permitted by applicable law, none of the Credit Parties shall assert, and each Credit Party hereby waives, any claim
against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, the other Loan Documents or
any agreement or instrument contemplated hereby or thereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof. 
  
 (e) All amounts due under this Section 10.3 shall be payable promptly after written demand therefor. 
  
 10.4 Successors and Assigns. 
  
 (a) The provisions of this Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that no Credit Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of
each Lender and the Administrative Agent (and any attempted assignment or transfer by any Credit Party without such consent shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other
than the parties hereto, their respective successors and assigns permitted hereby and, to the extent expressly contemplated hereby, the Related Parties of the Administrative Agent, the Issuing Lender and the Lenders) any legal or equitable right,
remedy or claim under or by reason of this Agreement. 
  
 (b) Any Lender may assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it) and may assign Revolving Credit
Commitment and Revolving Credit Loans; provided that: 
  
 (i) except in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund of a Lender, the Borrower and the Administrative Agent (and, in the case of an assignment of all or a portion of a
Revolving Credit Commitment or any Lender’s obligations in respect of its LC Exposure, the Issuing Lender) each must give its prior written consent to such assignment (which consent shall not be unreasonably withheld, delayed or conditioned),

  
 (ii) except in the case of an assignment to a
Lender or an Affiliate of a Lender or Approved Fund of a Lender or an assignment of the entire remaining amount of the assigning Lender’s Loans or Commitment, the amount of the Loans or Commitment of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Acceptance with respect to such assignment is delivered to the Administrative Agent) shall not be less than the lesser of $5,000,000 or the entire Commitment of such assigning Lender, unless
the Borrower and the Administrative Agent otherwise consent; provided that for such purposes, the amount of outstanding 
  

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 Loans and unused Commitments shall be determined without regard to any Swing Loans then outstanding;

  
 (iii) the parties to each assignment (other
than an assignment to a Lender or its Affiliate or Approved Fund) shall execute and deliver to the Administrative Agent an Assignment and Acceptance, together with a processing and recordation fee of $3,000, and 
  
 (iv) the assignee shall be an Eligible Assignee and shall
deliver to the Administrative Agent an Administrative Questionnaire; 
  
 provided further that any consent of the Borrower otherwise required under this paragraph shall not be required (i) if an Event of Default has occurred and is continuing, (ii) in the event of an assignment to an existing Lender, or
(iii) in the event of an assignment by General Electric Capital Corporation following a determination by such Lender or its affiliate, the National Broadcasting Company (“NBC”), that continued ownership of rights or obligations hereunder
would (A) violate FCC rules pertinent to attributable ownership or (B) cause NBC to forgo investments or acquisition opportunities in any of the markets in which the Borrower then operates, then, in each case, such Lender shall consult with the
Borrower and the Administrative Agent regarding proposed assignees and use reasonable efforts to cause such assignment to an assignee reasonably acceptable to the Borrower and the Administrative Agent. 
  
 Notwithstanding the foregoing, the restrictions of this Section 10.4(b)(ii)
shall not apply until the date on which the primary syndication of the Commitments has been completed. 
  
 (c) Upon acceptance and recording pursuant to paragraph (e) of this Section 10.4, from and after the effective date specified in each
Assignment and Acceptance, the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all of the assigning Lender’s rights
and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.15, 2.16, 2.17 and 10.3 with respect to matters described therein occurring or accruing prior to the
effective date of any such Assignment and Acceptance). Notwithstanding anything therein to the contrary, no Approved Fund shall be entitled to receive any greater amount pursuant to Sections 2.15, 2.16 and 2.17 than the transferor Lender would have
been entitled to receive in respect of the assignment effected by such transferor Lender had no assignment occurred. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with paragraph (b) of this
Section 10.4 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (f) of this Section. 
  
 (d) The Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of
its offices in New York, New York or Los Angeles, California a copy of each Assignment and Acceptance and Lender Joinder Agreement delivered to it and a register for the recordation of the names and addresses of the Lenders, the identity of the
Swing 
  

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 Loan Lender and the amount of the Swing Loan Commitment and the Commitment of, and principal amount of
the Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive (absent manifest error), and the Borrower, the Administrative
Agent, the Issuing Lender and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary (absent manifest
error). The Register shall be available for inspection by the Borrower, the Issuing Lender and any Lender or the Administrative Agent, at any reasonable time and from time to time upon reasonable prior notice. 
  
 (e) (i) Upon its receipt of a duly completed Assignment and
Acceptance executed by an assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this
Section 10.4 and any written consent to such assignment required by paragraph (b) of this Section 10.4, the Administrative Agent shall accept such Assignment and Acceptance and record the information contained therein in the Register. No assignment
shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph, and (ii) upon its receipt of a duly completed Lender Joinder Agreement executed by a New Lender and Administrative Agent in
accordance with Section 2.1(b), and the New Lender’s completed Administrative Questionnaire, the Administrative Agent shall accept such Lender Joinder Agreement and record the information contained therein in the Register. 
  
 (f) Any Lender may, without the consent of or notice to the
Borrower, the Administrative Agent or the Issuing Lender, sell participations to one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including
all or a portion of its Commitment and the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) the Borrower, the Administrative Agent, the Issuing Lender and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under
this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any
provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to Section
10.2(b), or Section 10.2(c), that affects such Participant. Subject to paragraph (g) of this Section 10.4, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.15. 2.16 and 2.17 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section 10.4. 
  

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 (g) A Participant shall not be entitled to receive any greater payment under Section 2.15
or 2.17 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent. A
Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.17 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 2.17(e) as though it were a Lender. 
  
 (h) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any such pledge or assignment to a Federal
Reserve Bank; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such assignee for such Lender as a party hereto. 
  
 (i) Anything in this Section 10.4 to the contrary
notwithstanding, no Lender may assign or participate any interest in any Loan held by it hereunder to any Credit Party or any of its Affiliates or Subsidiaries without the prior consent of each Lender and the Administrative Agent. 
  
 (j) A Lender may furnish any information concerning any
Credit Party, Holding Company or Subsidiary in the possession of such Lender from time to time to assignees and participants (including prospective assignees and participants) subject, however, to and so long as the recipient agrees in writing to be
bound by, the provisions of Section 10.13. In addition, the Administrative Agent may furnish any information concerning any Credit Party or any of its Subsidiaries or Affiliates in the Administrative Agent’s possession to any Affiliate of the
Administrative Agent, subject, however, to the provisions of Section 10.13. The Credit Parties shall assist any Lender in effectuating any assignment or participation pursuant to this Section 10.4 (including during syndication) in whatever manner
such Lender reasonably deems necessary, including participation in meetings with prospective transferees. 
  
 (k) Each Lender listed on the signature pages hereof hereby agrees (i) that it is an Eligible Assignee described in the definition
thereof. Each Lender that becomes a party hereto pursuant to an Assignment and Acceptance shall be deemed to agree that the agreements of such Lender contained in Section 3 of such Assignment and Acceptance are incorporated herein by this reference.

  
 10.5 Survival. All covenants, agreements,
representations and warranties made by the Credit Parties and Subsidiaries herein and in the other Loan Documents, and in the certificates or other instruments delivered in connection with or pursuant to this Agreement and the other Loan Documents,
shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the other Loan Documents and the making of any Loans and issuance of any Letters of Credit, regardless of any
investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, the Issuing Lender or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any
credit is extended hereunder, and shall continue in full force and effect so long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement or the other Loan Documents is outstanding and

  

 135 

 unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The
provisions of Sections 2.15, 2.16, 2.17 and 10.3 and Article 9 shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the
Letters of Credit and the Commitments or the termination of this Agreement or any other Loan Document or any provision hereof or thereof. 
  
 10.6 Counterparts; Integration; References to Agreement; Effectiveness. This Agreement may be executed in counterparts (and by different parties
hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and any separate letter agreements with respect to fees payable to the
Administrative Agent or its counsel and to certain other lenders constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to
the subject matter hereof. Whenever there is a reference in any Collateral Document or UCC Financing Statement to the “Credit Agreement” to which the Administrative Agent, the Lenders and the Credit Parties are parties, such reference
shall be deemed to be made to this Agreement among the parties hereto. Except as provided in Section 5.1, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have
received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement. 
  
 10.7 Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular
provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 
  
 10.8 Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender is hereby authorized at any time and from time to
time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender to or for the credit or the
account of the Borrower against any of and all the obligations of the Borrower now or hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement and
although such obligations may be unmatured. The rights of each Lender under this Section 10.8 are in addition to any other rights and remedies (including other rights of setoff) that such Lender may have. 
  
 10.9 Governing Law; Jurisdiction; Consent to Service of Process.

  
 (a) This Agreement and all issues arising
with respect hereto, including the validity or enforceability of any agreement contained herein and the issue of usury with respect 
  

 136 

 to the transactions contemplated hereby, shall be construed in all respects in accordance with and
governed by the law of the State of New York. 
  
 (b) Each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the courts of State of New York and of the United States District Court for the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or the other Loan Documents, or for recognition or enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York court (or, to the extent permitted by law, in such Federal court). Each of the parties hereto agrees that
a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that the Administrative
Agent, the Issuing Lender or any Lender may otherwise have to bring any action or proceeding relating to this Agreement against any Credit Party or Subsidiary or its properties in the courts of any jurisdiction. 
  
 (c) Each party hereto hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or the other Loan Documents in
any court referred to in paragraph (b) of this Section 10.9. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any
such court. 
  
 (d) Each party to this Agreement
irrevocably consents to service of process in the manner provided for notices in Section 10.1. Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law. 
  
 10.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT
OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.10. 
  
 10.11 Headings. Article and Section headings and the Table of Contents
used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 
  

 137 

 10.12 Release of Collateral and Guarantees. The Administrative Agent and the Lenders agree that if
all of the capital stock of or other equity interests in, or any assets of, any Subsidiary that is owned by the Credit Parties is sold to any Person as permitted by the terms of this Agreement and the Collateral Documents, or if any Subsidiary is
merged or consolidated with or into any other Person as permitted by the terms of this Agreement and such Subsidiary is not the continuing or surviving corporation, the Administrative Agent shall, upon request of the Borrower (and upon the receipt
by the Administrative Agent of such evidence as the Administrative Agent or any Lender may reasonably request to establish that such sale, designation, merger or consolidation is permitted by the terms of this Agreement), terminate the Guarantee of
such Subsidiary under Article 3 and authorize the Administrative Agent to release the Lien created by the Collateral Documents on any capital stock of or other equity interests in such Subsidiary and on any assets of such Subsidiary. 
  
 10.13 Confidentiality. Each Lender agrees to keep confidential
information obtained by it pursuant hereto and the other Loan Documents confidential in accordance with such Lender’s customary practices and agrees that it will only use such information in connection with the transactions contemplated by this
Agreement and not disclose any of such information other than (a) to such Lender’s employees, representatives, directors, attorneys, auditors (including any external auditors), agents, professional advisors, trustees or Affiliates who are
advised of the confidential nature of such information or to any direct or indirect contractual counter party in swap agreements or such contractual counter party’s professional advisor (so long as such auditors, contractual counterparty or
professional advisor to such contractual counter party agrees to be bound by the provisions of this Section 10.13), (b) to the extent such information presently is or hereafter becomes available to such Lender on a non-confidential basis from any
source of such information that is in the public domain at the time of disclosure (so long as such information does not become publicly available as a result of a breach of this Section 10.13), (c) to the extent disclosure is required by law
(including applicable securities law), regulation, subpoena or judicial order or process (provided that notice of such requirement or order shall be promptly furnished to the Borrower unless such notice is legally prohibited) or requested or
required by bank, securities, insurance or investment company regulators or auditors or any administrative body or commission (including the Securities Valuation Office of the National Association of Insurance Commissioners) to whose jurisdiction
such Lender may be subject, (d) to any rating agency to the extent required in connection with any rating to be assigned to such Lender, (e) to assignees or participants or prospective assignees or participants who agree to be bound by the
provisions of this Section 10.13, (f) to the extent required in connection with any litigation between any Credit Party and any Lender with respect to the Loans or this Agreement and the other Loan Documents or (g) with the Borrower’s prior
written consent. 
  
 10.14 Continued Effectiveness; No
Novation. Notwithstanding anything contained herein, the terms of this Agreement are not intended to and do not serve to effect a novation of the obligations, liabilities or indebtedness of the Credit Parties under the Existing Credit Agreement.
Instead, it is the express intention of the parties hereto to reaffirm, amend and restate the obligations, liabilities and indebtedness created under or otherwise evidenced by the Existing Credit Agreement that is evidenced by the notes provided for
therein and secured by the collateral contemplated thereby and hereby (it being understood that it was the intention of the parties to the Existing Credit Agreement to reaffirm, amend and restate the obligations, liabilities and indebtedness created
under or otherwise evidenced by the Original Credit Agreement that is 
  

 138 

 evidenced by the notes provided for therein and secured by the collateral contemplated thereby). The Credit Parties
acknowledge and confirm that the liens and security interests granted pursuant to the Loan Documents secure the obligations, liabilities and indebtedness of the Credit Parties to the Lenders under the Existing Credit Agreement, as amended and
restated hereby, and that the term “Secured Obligations” used in certain of the Loan Documents (or any other term used herein to describe or refer to the obligations, liabilities and indebtedness of the Credit Parties) describes and refers
to the Credit Parties’ obligations, liabilities and indebtedness hereunder and under the Existing Credit Agreement, as amended and restated hereby, as the same had been amended, modified, supplemented or restated prior to the date hereof and as
the same may be further amended, modified, supplemented or restated from time to time. The Loan Documents and all agreements, documents and instruments executed and delivered in connection with any of the foregoing shall each be deemed to be amended
to the extent necessary to give effect to the provisions of this Agreement. Cross-references in the Loan Documents to particular section or subsection numbers in the Original Credit Agreement or the Existing Credit Agreement shall be deemed to be
cross-references to the corresponding sections or subsections, as applicable, of this Agreement. 
  
 10.15 USA Patriot Act. Each Lender hereby notifies the Borrower that pursuant to the requirements of the Patriot Act, it is required to obtain,
verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Patriot Act, and the
Borrower agrees to provide such information from time to time to any Lender upon reasonable request. 
  

 139 

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

					
	 BORROWER
  
 LBI MEDIA, INC., a California corporation

		
	By:	 	/s/    Brett Zane        
	 	 	Name:	 	Brett Zane
	 	 	Title:	 	Chief Financial Officer

					
	 GUARANTORS
  
 LIBERMAN TELEVISION OF HOUSTON, INC., a California corporation
 KZJL LICENSE CORP., a California corporation
 LIBERMAN TELEVISION, INC., a California corporation
 KRCA TELEVISION, INC., a California corporation
 KRCA LICENSE
CORP., a California corporation
 LIBERMAN BROADCASTING, INC., a California corporation
 LBI RADIO LICENSE CORP., a California corporation
 LIBERMAN
BROADCASTING OF HOUSTON, INC., a California corporation
 LIBERMAN BROADCASTING OF HOUSTON LICENSE CORP., a California corporation
 LIBERMAN BROADCASTING OF DALLAS, INC., a California corporation
 LIBERMAN BROADCASTING OF DALLAS LICENSE CORP., a California corporation
 LIBERMAN TELEVISION OF DALLAS, INC.,
 a California corporation
 LIBERMAN TELEVISION OF DALLAS LICENSE CORP.,
a California corporation
 EMPIRE BURBANK STUDIOS, INC.,
 a
California Corporation
  
  

	 By:
	 	/s/    Brett Zane
	 	 	Name:	 	Brett Zane
	 	 	Title:	 	Chief Financial Officer

  

 141 

					
	 HOLDING COMPANIES
  
 Solely with respect to provisions of Section 7.15:
  
  
 LBI HOLDINGS
I, INC.,
 a California corporation

		
	By:	 	/s/    Brett Zane
	 	 	Name:	 	Brett Zane
	 	 	Title:	 	Chief Financial Officer
	
	 LBI MEDIA HOLDINGS, INC.,
 a Delaware
corporation

		
	By:	 	/s/    Brett Zane
	 	 	Name:	 	Brett Zane
	 	 	Title:	 	Chief Financial Officer

  

 142 

					
	ADMINISTRATIVE AGENT/ LEAD ARRANGER
	
	CREDIT SUISSE FIRST BOSTON, CAYMAN ISLANDS BRANCH,
	as Administrative Agent, Lead Arranger and Lender
		
	By:	 	 /s/    William
O’Daly        

	 	 	Name:	 	William O’Daly
	 	 	Title:	 	Director
		
	By:	 	 /s/    Doreen B. Welch

	 	 	Name:	 	Doreen B. Welch
	 	 	Title:	 	Associate

					
	LENDERS
	
	U.S. BANK, N.A.
		
	By:	 	 /s/    Jaycee A.
Earll        

	 	 	Name:	 	Jaycee A. Earll
	 	 	Title:	 	Vice President

  

					
	CIT LENDING SERVICES CORPORATION
		
	By:	 	 /s/    Douglas
Maher        

	 	 	Name:	 	Douglas Maher
	 	 	Title:	 	Vice President

  

					
	 SUNTRUST BANK

		
	 By:
	 	 /s/    Kip Hurd

	 	 	Name:	 	Kip Hurd
	 	 	Title:	 	Vice President

  
  

					
	UBS LOAN FINANCE LLC
		
	By:	 	 /s/    Wilfred V. Saint

	 	 	Name:	 	Wilfred V. Saint
	 	 	Title:	 	Director
	 	 	 	 	Banking Products Services, U.S.

					
	 	 	 
		
	By:	 	 /s/    Juan Zuniga

	 	 	Name:	 	Juan Zuniga
	 	 	Title:	 	Associate Director
	 	 	 	 	Banking Products Services, U.S.

					
	WEBSTER BANK, NATIONAL ASSOCIATION
			
	By:	 	 	 	 /s/    Robert E.
Meditz        

	 	 	Name:	 	Robert E. Meditz
	 	 	Title:	 	Vice President

					
	CIBC INC.
		
	By:	 	 /s/    Jonathan
Rabinowitz        

	 	 	Name:	 	Jonathan Rabinowitz
	 	 	Title:	 	Executive Director
	 	 	 	 	CIBC World Markets Corp.
	 	 	 	 	as Agent

					
	UNION BANK OF CALIFORNIA, N.A.
		
	By:	 	/s/    Peter C. Connoy
	 	 	Name:	 	Peter C. Connoy
	 	 	Title:	 	Senior Vice President

  

 150 

					
	DEUTSCHE BANK TRUST COMPANY AMERICAS
		
	By:	 	 /s/    Gregory
Shefrin        

	 	 	Name:	 	Gregory Shefrin
	 	 	Title:	 	Director

 The following have become parties to this Credit Agreement as of the date set forth next to their respective signatures:

  

													
	 	 	 	 	 	 	 ADDITIONAL GUARANTORS
  
 [NAME OF GUARANTOR]

							
	Dated:	 	 	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Name:	 	 
	 	 	 	 	 	 	 	 	 	 	Title:	 	 

 SCHEDULE 2.1 
  
 Commitments 
  
 Part I Existing Credit Agreement Commitments 
  

				
	 LENDER

	  	REVOLVING CREDIT
COMMITMENT

	 CREDIT SUISSE FIRST BOSTON
	  	$	20,000,000.00
	 UNION BANK OF CALIFORNIA, N.A.
	  	$	30,000,000.00
	 CIT LENDING SERVICES CORPORATION
	  	$	20,000,000.00
	 U.S. BANK, N.A.
	  	$	20,000,000.00
	 SUNTRUST BANK
	  	$	30,000,000.00
	 WEBSTER BANK
	  	$	10,000,000.00
	 UBS LOAN FINANCE LLC
	  	$	15,000,000.00
	 CIBC INC.
	  	$	5,000,000.00
	 DEUTSCHE BANK TRUST COMPANY AMERICAS
	  	$	20,000,000.00
	 TOTALS:
	  	$	170,000,000.00

  
 Part
II Closing Date Revolving Credit Commitments 
  

				
	 LENDER

	  	REVOLVING CREDIT
COMMITMENT

	 CREDIT SUISSE FIRST BOSTON
	  	$	20,000,000.00
	 UNION BANK OF CALIFORNIA, N.A.
	  	$	30,000,000.00
	 CIT LENDING SERVICES CORPORATION
	  	$	20,000,000.00
	 U.S. BANK, N.A.
	  	$	20,000,000.00
	 SUNTRUST BANK
	  	$	30,000,000.00
	 WEBSTER BANK
	  	$	10,000,000.00
	 UBS LOAN FINANCE LLC
	  	$	15,000,000.00
	 CIBC INC.
	  	$	10,000,000.00
	 DEUTSCHE BANK TRUST COMPANY AMERICAS
	  	$	20,000,000.00
	 TOTALS:
	  	$	175,000,000.00

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