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Exhibit 4.1    
  

 
 

YOUNG BROADCASTING INC.
  AMENDED AND RESTATED 1995 STOCK OPTION PLAN
  (as amended as of May 6, 2002)    
  

1. Purpose of the Plan.  

        The purpose of the Young Broadcasting Inc. 1995 Stock Option Plan (the "Plan") is to promote the interests of Young Broadcasting Inc., a Delaware
corporation (the "Company"), and its stockholders by strengthening the Company's ability to attract and retain competent employees, to make service on the Board of Directors of the Company (the
"Board") more attractive to present and prospective non-employee directors of the Company and to provide a means to encourage stock ownership and proprietary interest in the Company by
officers, non-employee directors and valued employees and other individuals upon whose judgment, initiative and efforts the financial success and growth of the Company largely depend. The
Plan became effective on February 6, 1995, by resolution of the Board, subject to ratification of the Plan by a majority vote of the stockholders of the Company at its 1995 Annual Meeting of
Stockholders. 

2. Stock Subject to the Plan.  

        (a)  The
total number of shares of the authorized but unissued or treasury shares of the Common Stock, $.001 par value per share, of the Company ("Common Stock") for which
options and stock appreciation rights ("SARs") may be granted under the Plan shall be 4,550,000 subject to adjustment as provided in Section 14 hereof, which shares may be of any class of
Common Stock; provided, however, that such number of shares may from time to time be reduced to the extent that a corresponding
number of issued and outstanding shares of Common Stock are purchased by the Company and set aside for issue upon the exercise of options. 

        (b)  If
an option granted or assumed hereunder shall expire or terminate for any reason without having been exercised in full, the unpurchased shares subject thereto shall
again be available for subsequent option grants under the Plan; provided, however, that shares as to which an option has been surrendered in connection with the exercise of a related SAR will not
again be available for subsequent option or SAR grants under the Plan. 

        (c)  Stock
issuable upon exercise of an option or SAR granted under the Plan may be subject to such restrictions on transfer, repurchase rights or other restrictions as shall
be determined by the Board. 

3. Administration of the Plan.  

        (a)  The
Plan shall be administered by the Board. No member of the Board shall act upon any matter exclusively affecting an option or SAR granted or to be granted to himself
or herself under the Plan. A majority of the members of the Board shall constitute a quorum, and any action may be taken by a majority of those present and voting at any meeting. The decision of the
Board as to all questions of interpretation and application of the Plan shall be final, binding and conclusive on all persons. The Board may, in its sole discretion, grant options to purchase shares
of Common Stock, grant SARs and issue shares upon exercise of such options and SARs, as provided in the Plan. The Board shall have authority, subject to the express provisions of the Plan, to construe
the respective option and SAR agreements and the Plan, to prescribe, amend and rescind rules and regulations relating to the Plan, to determine the terms and provisions of the respective option and
SAR agreements, which may but need not be identical, and to make all other determinations in the judgment of the Board necessary or desirable for the administration of the Plan. The Board may correct
any defect or supply any omission or reconcile any inconsistency in the Plan or in any option or SAR agreement in the manner and to the extent it shall deem expedient to carry the Plan into effect and
shall be the sole and final judge of such 

 

expediency. No director shall be liable for any action or determination made in good faith. The Board may, in its discretion, delegate its power, duties and responsibilities to a committee,
consisting of two or more members of the Board, all of whom are "Non-Employee Directors" (as hereinafter defined). If a committee is so appointed, all references to the Board herein shall
mean and relate to such committee, unless the context otherwise requires. For the purposes of the Plan, a director or member of such committee shall be deemed to be a "Non-Employee
Director" only if such person qualified as a
"Non-Employee Director" within the meaning of paragraph (b)(3)(i) of Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), as such term is interpreted from time to time. 

4. Type of Options.  

        Options granted pursuant to the Plan shall be authorized by action of the Board (or a committee designated by the Board) and may be designated as either incentive
stock options meeting the requirements of Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"), or non-qualified options which are not intended to meet the
requirements of Section 422 of the Code, the designation to be in the sole discretion of the Board. Options designated as incentive stock options that fail to continue to meet the requirements
of Section 422 of the Code shall be redesignated as non-qualified options automatically on the date of such failure to continue to meet the requirements of Section 422 of the
Code without further action by the Board. 

5. Eligibility.  

        Options designated as incentive stock options may be granted only to officers and key employees of the Company or of any subsidiary corporation (herein called
"subsidiary" or "subsidiaries"), as defined in Section 424 of the Code and the Treasury Regulations promulgated thereunder (the "Regulations"). Directors who are not otherwise employees of the
Company or a subsidiary shall not be eligible to be granted incentive stock options pursuant to the Plan. SARs and options designated as non-qualified options may be granted to
(i) officers and key employees of the Company or of any of its subsidiaries, or (ii) agents and directors of and consultants to the Company, whether or not otherwise employees of the
Company. 

        In
determining the eligibility of an individual to be granted an option or SAR, as well as in determining the number of shares to be optioned to any individual, the Board shall take into
account the recommendation of the Company's Chairman, the position and responsibilities of the individual being considered, the nature and value to the Company or its subsidiaries of his or her
service and accomplishments, his or her present and potential contribution to the success of the Company or its subsidiaries, and such other factors as the Board may deem relevant. 

6. Restrictions on Incentive Stock Options.  

        Incentive stock options (but not non-qualified options) granted under this Plan shall be subject to the following restrictions: 

        (a)  Limitation on Number of Shares. The aggregate fair market value of the shares of Common Sock with respect to which
incentive stock options are granted, determined as of the date the incentive stock options are granted, exercisable for the first time by an individual during any calendar year shall not exceed
$100,000. If an incentive stock option is granted pursuant to which the aggregate fair market value of shares with respect to which it first becomes exercisable in any calendar year by an individual
exceeds such $100,000 limitation, the portion of such option which is in excess of the $100,000 limitation, and any such options issued subsequently in the same calendar year, shall be treated as a
non-qualified option pursuant to Section 422(d)(1) of the Code. In the event that an individual is eligible to participate in any other stock option plan of the Company or any
parent or 

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subsidiary of the Company which is also intended to comply with the provisions of Section 422 of the Code, such $100,000 limitation shall apply to the aggregate number of shares for which
incentive stock options may be granted under this Plan and all such other plans. 

        (b)  Ten Percent (10%) Stockholder. If any employee to whom an incentive stock option is granted pursuant to the provisions of
this Plan is on the date of grant the owner of stock (as determined under Section 424(d) of the Code) possessing more than 10% of the total combined voting power of all classes of stock of the
Company or any parent or subsidiary of the Company, then the following special provisions shall be applicable to the incentive stock options granted to such individual: 

          (i)  The
option price per share subject to such incentive stock options shall be not less than 110%, of the fair market value of the stock determined at the time such option
was granted. In determining the fair market value under this clause (i), the provisions of Section 8 hereof shall apply. 

        (ii)  The
incentive stock option shall have a term expiring not more than five (5) years from the date of the granting thereof. 

7. Option Agreement.  

        Each option and SAR shall be evidenced by an agreement (the "Agreement") duly executed on behalf of the Company and by the grantee to whom such option or SAR is
granted, which Agreement shall comply with and be subject to the terms and conditions of the Plan. The Agreement may contain such other terms, provisions and conditions which are not inconsistent with
the Plan as may be determined by the Board, provided that options designated as incentive stock options shall meet all of the conditions for incentive stock options as defined in Section 422 of
the Code. No option or SAR shall be granted within the meaning of the Plan and no purported grant of any option or SAR shall be effective until the Agreement shall have been duly executed on behalf of
the Company and the optionee. More than one option and SAR may be granted to an individual. 

8. Option Price.  

        (a)  The
option price or prices of shares of Common Stock for options designated as nonqualified stock options shall be as determined by the Board. 

        (b)  Subject
to the conditions set forth in Section 6(b) hereof, the option price or prices of shares of Common Stock for options designated as incentive stock options
shall be at least the fair market value of such Common Stock at the time the option is granted as determined by the Board in accordance with clause (c) below. 

        (c)  If
the Common Stock is then listed on any national securities exchange, the fair market value shall be the mean between the high and low sales prices, if any, on the
largest such exchange on the date of the grant of the option or, if none, shall be determined by taking a weighted average of the means between the highest and lowest sales on the nearest date before
and the nearest date after the date of grant in accordance with Regulations Section 25.2512-2. If the Common Stock is not then listed on any such exchange, the fair market value
shall be the mean between the closing "Bid" and the closing "Ask" prices, if any, as reported in the National Association of Securities Dealers Automated Quotation System ("NASDAQ") for the date of
the grant of the option, or, if none, shall be determined by taking a weighted average of the means between the highest and lowest sales on the nearest date before and the nearest date after the date
of grant in accordance with Regulations Section 25.2512-2. If the Common Stock is not then either listed on any such exchange or quoted in NASDAQ, the fair market value shall be the
mean between the average of the "Bid" prices, if any, as reported in the National Daily Quotation Service for the Cite of the grant of the option, or, if none, shall be determined by taking a weighted
average of the means between the highest and lowest sales on 

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the nearest date before and the nearest date after the date of grant in accordance with Regulations Section 25.2512-2. If the fair market value of the Common Stock cannot be
determined under the preceding three sentences, it shall be determined in good faith by the Board in accordance with the Regulations promulgated under Section 422 of the Code. 

9. Manner of Payment; Manner of Exercise.  

        (a)  Options
granted under the Plan may provide for the payment of the exercise price by delivery of (i) cash or a check payable to the order of the Company in an
amount equal to the exercise price of such options, (ii) shares of Common Stock owned by the optionee having a fair market value equal in
amount to the exercise price of such options, or, (iii) any combination of (i) and (ii); provided, however, that payment of the exercise price by delivery of shares of Common Stock owned
by such optionee may be made only upon the condition that such payment does not result in a charge to earnings for financial accounting purposes as determined by the Board, unless such condition is
waived by the Board. The fair market value of any shares of Common Stock which may be delivered upon exercise of an option shall be determined by the Board in accordance with Section 8 hereof. 

        (b)  To
the extent that the right to purchase shares under an option has accrued and is in effect, options may be exercised in full at one time or in part from time to time,
by giving written notice, signed by the person or persons exercising the option, to the Company, stating the number of shares with respect to which the option is being exercised, accompanied by
payment in full for such shares as provided in subparagraph (a) above. Upon such exercise, delivery of a certificate for paid-up non-assessable shares shall be made at
the principal office of the Company to the person or persons exercising the option at such time, during ordinary business hours, after three (3) days but not more than ninety (90) days
from the date of receipt of the notice by the Company, as shall be designated in such notice, or at such time, place and manner as may be agreed upon by the Company and the person or persons
exercising the option. 

10. Exercise of Options and SARs.  

        Each option and SAR granted under the Plan shall, subject to Section 11(b) and Section 13 hereof, be exercisable at such time or times and during
such period as shall be set forth in the Agreement; provided, however, that no option or SAR granted under the Plan shall have a term in excess of ten (10) years from the date of grant. To the
extent that an option or SAR is not exercised when it becomes initially exercisable, it shall not expire but shall be carried forward and shall be exercisable, on a cumulative basis, until the
expiration of the exercise period. No partial exercise may be made for less than one hundred (100) full shares of Common Stock. The exercise of an option shall result in the cancellation of the
SAR to which it relates with respect to the same number of shares of Common Stock as to which the option was exercised. 

11. Term of Options and SARs; Exercisability.  

        (a)  Term. 

          (i)  Each
option shall expire not more than ten (10) years from the date of the granting thereof except as (a) otherwise provided pursuant to the provisions of
Section 6(b) hereof, and (b) earlier termination as herein provided. 

        (ii)  Except
as otherwise provided in this Section 11, an option or SAR granted to any grantee who ceases to perform services for the Company or one of its
subsidiaries shall terminate three months after the date such grantee ceases to perform services, for the Company or one of its subsidiaries, or on the date on which the option or SAR expires by its
terms, whichever occurs first. 

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        (iii)  If
the grantee ceases to perform services for the Company because of dismissal for cause or because the grantee is in breach of any employment agreement, such option
or SAR will terminate on the date the grantee ceases to perform services for the Company or one of its subsidiaries. 

        (iv)  If
the grantee ceases to perform services for the Company because the grantee has become permanently disabled (within the meaning of Section 22(e)(3) of the
Code), such option or SAR shall terminate twelve months after the date such grantee ceases to perform services for the Company, or on the date on which the option or SAR expires by its terms,
whichever occurs first. 

        (v)  In
the event of the death of any grantee, any option or SAR granted to such grantee shall terminate twelve months after the date of death, or on the date on which the
option or SAR expires by its terms, whichever occurs first. 

        (vi)  Notwithstanding
the provisions of subsections (i)—(v) of this Section 11(a), or any other provision of the Plan, the Board, in its sole
discretion, may in the Agreement or at any other time (x) permit any option to continue in effect in accordance with the terms of the Agreement and this Plan after the grantee ceases to perform
services for the Company, (y) extend the period of time within which such option may be exercised after the grantee ceases to perform services for the Company beyond the time period set forth
in subsection (ii), (iii), (iv) or (v) of this Section 11(a), as applicable, and/or (z) accelerate the vesting and exercisability of any option that is not vested or
otherwise exercisable under the terms of the Agreement or this Plan at or prior to the time the grantee ceases to perform services for the Company. 

        (b)  Exercisability.

          (i)  Except
as provided below, an option or SAR granted to a grantee who ceases to perform services for the Company or one of its subsidiaries shall be exercisable only to
the extent that such option or SAR has accrued and is in effect on the date such grantee ceases to perform services for the Company or one of its subsidiaries. 

        (ii)  An
option or SAR granted to a grantee who ceases to perform services for the Company or one of its subsidiaries because he or she has become permanently disabled (as
defined above) shall be exercisable with respect to the full number of shares covered thereby, whether or not under the provisions of Section 10 hereof the grantee was entitled to do so at the
date he or she became permanently disabled, and may be exercised by a legal representative on behalf of the grantee. 

        (iii)  In
the event of the death of any grantee, the option or SAR granted to such grantee may be exercised with respect to the full number of shares covered thereby, whether
or not under the provisions of Section 10 hereof the grantee was entitled to do so at the date of his or her death, by the estate of such grantee, or by any person or persons who acquired the
right to exercise such option or SAR by bequest or inheritance or by reason of the death of such grantee. 

        (iv)  Notwithstanding
the provisions of subsections (i)—(iii) of this Section 11(b), or any other provision of the Plan, the Board, in its sole
discretion, may in the Agreement or at any other time (x) permit any option to continue in effect in accordance with the terms of the Agreement and this Plan after the grantee ceases to perform
services for the Company, (y) extend the period of time within which such option may be exercised after the grantee ceases to perform services for the Company, and/or (z) accelerate the
vesting and exercisability of any option that is not vested or otherwise exercisable under the terms of the Agreement or this Plan at or prior to the time the grantee ceases to perform services for
the Company. 

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12. Options Not Transferable.  

        The right of any grantee to exercise any option or SAR granted to him or her shall not be assignable or transferable by such grantee other than by will or the
laws of descent, and any such option or SAR shall be exercisable during the lifetime of such grantee only by him; provided, that the Board may permit a grantee, by expressly so providing in the
related Agreement, to assign or transfer, without consideration (and only without consideration), the right to exercise any option or SAR granted to him or her to his or her children, grandchildren or
spouse, to trusts for the benefit of such family members and to partnerships in which such family members are the only partners. Any option or SAR granted under the Plan shall be null and void and
without effect upon the bankruptcy of the grantee to whom the option is granted, or upon any attempted assignment or transfer except as herein provided, including without limitation, any purported
assignment, whether voluntary or by operation of law, pledge, hypothecation or other disposition, attachment, trustee process or similar process, whether legal or equitable, upon such option or SAR. 

13. Terms and Conditions of SARs.  

        (a)  An
SAR may be granted separately or in connection with an option (either at the time of grant or at any time during the term of the option). 

        (b)  The
exercise of an SAR granted in connection with an option shall result in the cancellation of the option to which it relates with respect to the same number of shares
of Common Stock as to which the SAR was exercised. 

        (c)  An
SAR granted in connection with an option shall be exercisable or transferable only to the extent that such related option is exercisable or transferable. 

        (d)  Upon
the exercise of an SAR related to an option, the holder will be entitled to receive payment of an amount determined by multiplying: 

          (i)  the
difference obtained by subtracting the purchase price of a share of Common Stock specified in the related option from the fair market value of a share of Common
Stock on the date of exercise of such SAR (as determined by the Board in accordance with Section 8 hereof), by 

        (ii)  the
number of shares as to which such SAR is exercised. 

        (e)  An
SAR granted without relationship to an option shall be exercisable as determined by the Board, but in no event after ten years from the date of grant. 

        (f)    An
SAR granted without relationship to an option will entitle the holder, upon exercise of the SAR, to receive payment of an amount determined by multiplying: 

          (i)  the
difference obtained by subtracting the fair market value of a share of Common Stock on the date the SAR was granted from the fair market value of a share of Common
Stock on the date of exercise of such SAR (as determined by the Board in accordance with Section 8 hereof), by 

        (ii)  the
number of shares as to which such SAR is exercised. 

        (g)  Notwithstanding
subsections (d) and (f) above, the Board may limit the amount payable upon exercise of an SAR. Any such limitation shall be determined as
of the date of grant and noted on the instrument evidencing the SAR granted. 

        (h)  At
the discretion of the Board, payment of the amount determined under subsections (d) and (f) above may be made either in whole shares of Common Stock
valued at their fair market value on the date of exercise of the SAR (as determined by the Board in accordance with Section 8 hereof), or solely in cash, or in a combination of cash and shares.
If the Board decides to make full payment in 

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shares of Common Stock and the amount payable results in a fractional share, payment for the fractional share shall be made in cash. 

        (i)    Neither
an SAR nor an option granted in connection with an SAR granted to a person subject to Section 16(b) of the Exchange Act may be exercised before six months
after the date of grant. 

14. Recapitalization, Reorganization and the Like.  

        In the event that the outstanding shares of Common Stock are changed into or exchanged for a different number or kind of shares or other securities of the Company
or of another corporation by reason of any reorganization, merger, consolidation, recapitalization, reclassification, stock split-up, combination of shares, or dividends payable in capital
stock, appropriate adjustment shall be made in accordance with Section 424(a) of the Code in the number and kind of shares as to which options and SARs may be granted under the Plan and as to
which outstanding options and SARs or portions thereof then unexercised shall be exercisable, to the end that the proportionate interest of the grantee shall be maintained as before the occurrence of
such event; such adjustment in outstanding options and SARs shall be made without change in the total price applicable to the unexercised portion of such options and SARs and with a corresponding
adjustment in the exercise price per share. 

        In
addition, unless otherwise determined by the Board in its sole discretion, in the case of any (i) sale or conveyance to another entity of all or substantially all of the
property and assets of the Company or (ii) Change in Control (as hereinafter defined) of the Company, the purchaser(s) of the Company's assets or stock may, in his, her or its discretion,
deliver to the optionee the same kind of consideration that is delivered to the stockholders of the Company as a result of such sale, conveyance or Change in Control, or the Bond may cancel all
outstanding options and SARs in exchange for consideration in cash or in kind which consideration in both cases shall be equal in value to the value of those shares of stock or other securities the
optionee would have received had the option been exercised (to the extent then exercisable) and no disposition of the shares acquired upon such exercise been made prior to such sale, conveyance or
Change in Control, less the exercise price therefor. Upon receipt of such
consideration, the options and SARs shall immediately terminate and be of no further force and effect. The value of the stock or other securities the grantee would have received if the option had been
exercised shall be determined in good faith by the Board, and in the case of shares of Common Stock, in accordance with the provisions of Section 8 hereof. 

        The
Board shall also have the power and right to accelerate the exercisability of any options or SARs, notwithstanding any limitations in this Plan or in the Agreement upon such a sale,
conveyance or Change in Control. Upon such acceleration, any options or portion thereof originally designated as incentive stock options that no longer qualify as incentive stock options under
Section 422 of the Code as a result of such acceleration shall be redesignated as non-qualified stock options. 

        A
"Change in Control" shall be deemed to have occurred if any person, or any two or more persons acting as a group, and all affiliates of such person or persons, who prior to such time
owned less than fifty percent (50%) of the then outstanding Common Stock shall acquire such additional shares of Common Stock in one or more transactions, or series of transactions, such that
following such transaction or transactions, such person or group and affiliates beneficially own fifty percent (50%) or more of the Common Stock outstanding. 

        If
by reason of a corporate merger, consolidation, acquisition of property or stock, separation, reorganization, or liquidation, the Board shall authorize the issuance or assumption of a
stock option or stock options in a transaction to which Section 424(a) of the Code applies, then, notwithstanding any other provision of the Plan, the Board may grant an option or options upon
such terms and conditions as it may deem appropriate for the purpose of assumption of the old option, or substitution of a new option for the old option, in conformity with the provisions of such
Section 424(a) of the Code and the 

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Regulations thereunder, and any such option shall not reduce the number of shares otherwise available for issuance under the Plan. 

        No
fraction of a share shall be purchasable or deliverable upon the exercise of any option or SAR, but in the event any adjustment hereunder in the number of shares covered by the option
or SAR shall cause such number to include a fraction of a share, such fraction shall be adjusted to the nearest smaller whole number of shares. 

15. No Special Employment Rights.  

        Nothing contained in the Plan or in any option or SAR granted under the Plan shall confer upon any grantee any right with respect to the continuation of his or
her employment by the Company (or any subsidiary) or interfere in any way with the right of the Company (or any subsidiary), subject to the terms of any separate employment agreement to the contrary,
at any time to terminate such employment or to increase or decrease the compensation of the grantee from the rate in existence at
the time of the grant of an option or SAR. Whether an authorized leave of absence, or absence in military or government service, shall constitute termination of employment shall be determined in
accordance with Regulations Section 1.421-7(h)(2). 

16. Withholding.  

        The Company's obligation to deliver shares upon the exercise of any non-qualified option or SAR granted under the Plan shall be subject to the option
holder's satisfaction of all applicable Federal, state and local income and employment tax withholding requirements. The Company and optionee may agree to withhold shares of Common Stock purchased
upon exercise of an option or SAR to satisfy the abovementioned withholding requirements; provided, however, that no such agreement may be made by a grantee who is an "officer" or "director" within
the meaning of Section 16 of the Exchange Act, except pursuant to a standing election to so withhold shares of Common Stock purchased upon exercise of an option, such election to be made not
less than six months prior to such exercise and which election may be revoked only upon six months prior written notice. 

17. Restrictions on Issuance of Shares.  

        (a)  Notwithstanding
the provisions of Section 9 hereof, the Company may delay the issuance of shares covered by the exercise of an option or SAR and the delivery of a
certificate for such shares until one of the following conditions shall be satisfied: 

          (i)  The
shares with respect to which such option or SAR has been exercised are at the tine of the issue of such shares effectively registered or qualified under applicable
Federal and state securities acts now in force or as hereafter amended; or 

        (ii)  Counsel
for the Company shall have given an opinion, which opinion shall not be unreasonably conditioned or withheld, that such shares are exempt from registration and
qualification under applicable Federal and state securities acts now in force or as hereafter amended. 

        (b)  It
is intended that all exercises of options and SARs shall be effective, and the Company shall use its best efforts to bring about compliance with the above conditions,
within a reasonable time, except that the Company shall be under no obligation to qualify shares or to cause a registration statement or a post-effective amendment to any registration
statement to be prepared for the purpose of covering the issue of shares in respect of which any option may be exercised, except as otherwise agreed to by the Company in writing. 

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18. Purchase for Investment; Rights of Holder on Subsequent Registration.  

        Unless the shares to be issued upon exercise of an option or SAR granted under the Plan have been effectively registered under the Securities Act of 1933, as
amended (the "1933 Act"), the Company shall be under no obligation to issue any shares covered by any option or SAR unless the person who exercises such option, in whole or in part, shall give a
written representation and undertaking to the Company which is satisfactory in form and scope to counsel for the Company and upon which, in the opinion of such counsel, the Company may reasonably
rely, that he or she is acquiring the shares issued pursuant to such exercise of the option or SAR for his or her own account as an investment and not with a view to, or for sale in connection with,
the distribution of any such shares, and that he or she will make no transfer of the same except in compliance with any rules and regulations in force at the time of such transfer under the 1933 Act,
or any other applicable law, and that if shares are issued without such registration, a legend to this effect may be endorsed upon the securities so issued. 

        In
the event that the Company shall, nevertheless, deem it necessary or desirable to register under the 1933 Act or other applicable statutes any shares with respect to which an option
or SAR shall have been exercised, or to qualify any such shares for exemption from the 1933 Act or other applicable statutes, then the Company may take such action and may require from each grantee
such information in writing for use in any registration statement, supplementary registration statement, prospectus, preliminary prospectus or offering circular as is reasonably necessary for such
purpose and may require reasonable indemnity to the Company and its officers and directors from such holder against all losses, claims, damages and liabilities arising from such use of the information
so furnished and caused by any untrue statement of any material fact therein or caused by the omission to state a material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances under which they were made. 

19. Loans.  

        At the discretion of the Board, the Company may loan to the optionee some or all of the purchase price of the shares acquired upon exercise of an option granted
under the Plan. 

20. Modification of Outstanding Options and SARs.  

        Subject to limitations contained herein, the Board may authorize the amendment of any outstanding option or SAR with the consent of the grantee when and subject
to such conditions as are deemed to be in the best interests of the Company and in accordance with the purposes of the Plan. 

21. Approval of Stockholders.  

        The Plan shall be subject to approval by a majority vote of the stockholders of the Company voting in person or by proxy at the Company's 1995 Annual Meeting of
Stockholders. The Plan became effective on February 7, 1995 by resolution of the Board. The Board may grant options and SARs under the Plan prior to such stockholder approval, but any such
option shall become effective as of the date of grant only upon such approval and, accordingly, no such option may be exercisable prior to such approval. 

22. Termination and Amendment of Plan.  

        Unless sooner terminated as herein provided, the Plan shall terminate on February 6, 2005. The Board may at any time terminate the Plan or make such
modification or amendment thereof as it deems advisable; provided, however, that (i) the Board may not, without approval by a majority vote of the stockholders of the Company, increase the
maximum number of shares for which options and SARs may be granted or change the designation of the class of persons eligible to receive options and SARs 

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under the Plan, and (ii) any such modification or amendment of the Plan shall be approved by a majority vote of the stockholders of the Company to the extent that such stockholder approval is
necessary to comply with applicable provisions of the Code, rules promulgated pursuant to Section 16 of the Exchange Act, applicable state law, or applicable National Association of Securities
Dealers, Inc. or exchange listing requirements. Termination or any modification or amendment of the Plan shall not, without the consent of an optionee, affect his or her rights under an option
or SAR theretofore granted to him or her. 

23. Limitation of Rights in the Underlying Shares.  

        A holder of an option or SAR shall not be deemed for any purpose to be a stockholder of the Company with respect to such option or SAR except to the extent that
such option or SAR shall have been exercised with respect thereto and, in addition, a stock certificate shall have been issued theretofore and delivered to the holder. 

24. Notices.  

        Any communication or notice required or permitted to be given under the Plan shall be in writing, and mailed by registered or certified mail or delivered by hand,
if to the Company, to its principal place of business, attention: Chairman, and, if to the holder of an option or SAR, to the address as appearing on the records of the Company. 

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Exhibit 4.1

YOUNG BROADCASTING INC. AMENDED AND RESTATED 1995 STOCK OPTION PLAN (as amended as of May 6, 2002)[CR Strategies LOGO]	 	66 Witherspoon St. Suite 355

Princeton, NJ 08542

800-582-8022
 www.clinregstrategies.com

August 19, 2002 

Taffy
J. Williams, Ph.D.

President and CEO

Photogen Technologies Inc.

140 Union Square Drive

New Hope, PA 18938 

Re:    Engagement Letter To Provide Clinical, Regulatory, and New Product Development Services To Photogen Technologies Inc.  

Dear Dr. Williams: 

        This
letter and the attached Business Terms set out Clinical Regulatory Strategies, LLC's ("CRS"') proposal to provide consulting services to Photogen Technologies Inc.
("Photogen" or the "Company") for the period August 1, 2002 through September 30, 2003. CRS personnel will serve as members of the Company's New Product Development team, will aid in
identifying and evaluating relevant business development opportunities, will assist in building a superior new product development capability for the Company and will provide service and support to
the Company's management team. CRS will document activities and accomplishments in monthly status reports submitted to the President and CEO and other designated Photogen management personnel. Billing
will be designated according to project area. 

        During
the term of the engagement, Mark Carvlin will provide locum tenens management services equivalent to the Senior Vice President, Development of Photogen and assume the
responsibilities associated with this position as well as coordinating the product development activities of associates at CRS, the staff at Photogen and other external contractors as needed to
develop PH-50, N1177 and alternate formulations and other projects approved by the management of Photogen. Pursuant to a work plan developed with and/or approved by Photogen's CEO and
other Photogen management personnel, Dr. Carvlin, working with these parties, will establish, obtain approval and
execute the development plan, ensure that project timelines are met, and participate in the design of research and discovery initiatives on an as needed basis. While 100% of Dr. Carvlin's time
may not be spent on Photogen activities, he is expected to be present at Photogen on the same schedule as if he were a full time member of the senior management team. 

        For
this project CRS' fees will be determined on a time and materials basis, calculated from the cumulative person-days that we are on the assignment. We expect that the CRS
person-days for the period will amount to 1.5 full time equivalents (FTE). The CRS team will be comprised of Oye Olukotun, Mark Carvlin and Tom Fritz. Mark Carvlin will serve as the
On-Site Manager for CRS and is expected to spend no less than 3 days per week (30.6 FTE) on this project. Tom Fritz is expected to spend
on average 3 days per week (0.6 FTE) on the engagement and Oye Olukotun is expected to spend on average 1 day per week (0.2 FTE) on the engagement. 

        As
part of this engagement, CRS will assist in identifying and recruiting qualified individuals to work directly for Photogen as full time employees. It is understood that the Company
wishes to have its employees assume full responsibility for its products and that CRS professionals will transition off of the projects by transferring knowledge, information, skills, and contacts in
an orderly, gradual manner. In the event that CRS or Photogen elects to terminate this Agreement, CRS will allow for the same orderly transfer of knowledge, information, skills and contacts. 

        This
Agreement is subject to approval by the Company's Board of Directors (or an appropriate committee of the Board). 

 

        We
appreciate the opportunity to work with you on this important assignment. To confirm our authorization of the project, please sign and return one copy of this letter, retaining the
other copy for your records. 

	Sincerely yours,	 	 
	

/s/  OYE OLUKOTUN      
 Oye Olukotun, MD

Chief Executive Officer	
 	

 
	
Acknowledged and agreed to this 29th day of August 2002 by:
	
 /s/  TAFFY WILLIAMS      
 Taffy J. Williams, Ph.D.

President and CEO

Photogen Technologies, Inc.	
 	

 

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Business Terms  

Term of Engagement:  

	August 1, 2002	 	Start Date
	September 30, 2003	 	Completion Date

        CRS will provide locum tenens management, expertise, assistance and guidance to Photogen for the term of the engagement as the company develops and executes its
development of PH-50, N1177 and other product and/or business opportunities as may be determined by Photogen. 

        In
consideration of the fact that new drug development is a lengthy and complex process and that the completion date of the engagement might not coincide with critical steps in this
process, CRS will be obliged, at the Company's direction, to extend the engagement for an additional 3 months (to December 31, 2003) under the same terms and conditions. Thirty days
before the end of the extended engagement period the Company will notify CRS whether it wishes to extend the agreement beyond December 31, 2003. 

Deliverables:  

	•
	Mark
Carvlin to assume the role and responsibilities equivalent to the Senior Vice President, Development for Photogen on an interim basis for the term of
the engagement.

	•
	Provide
additional expertise in the areas of preclinical development, regulatory affairs, manufacturing and clinical development to the PH-50 and
N1177 product development teams.

	•
	Identify,
interact and establish working relationships with Contract Research Organizations (CRO's) needed to assist in the development of PH-50,
leading to a successful IND filing and first-in-man Phase I studies for the IV route of administration.

	•
	Ensure
that preclinical and clinical studies meet US FDA and international (ICH) guidelines for compliance.

	•
	Perform
a SWOT analysis of N1177 that results in a set of recommendations as to how best to proceed with the development of N1177. Given that the company
elects to pursue the development of this compound, then CRS will augment Photogen's staff in the clinical and regulatory areas.

	•
	Work
closely with Photogen's senior management to identify and acquire strategic assets and business opportunities to build company/shareholder value.

	•
	Assist
Photogen to identify, interview and recruit highly qualified personnel as needed to staff departments.

	•
	Preparation
submission of an IND for PH-50 to include assistance in:

	a.
	Preparation,
presentation and prosecution of the IND, and general regulatory support for PH-50

	b.
	Pre-IND
package

	c.
	Pre-IND
meeting

	d.
	IND
(including Phase I protocol and 1st year CDP) 

	•
	Strive
to contain cost while working to ensure the highest quality of development possible.

	•
	A
monthly report detailing CRS activities, accomplishments and issues, including as necessary variances and any revisions to project fees and expenses, on
the engagement will be provided to the Company. 

Expenses:  

        CRS will bill you at cost for all out-of-pocket expenses directly incurred on this engagement including travel, industry research,
communications, and report and presentation preparation. All expenses incurred will be in accordance with Photogen's Business Expense and Travel Policy. We will obtain your prior approval for any out
of the ordinary expenditures. 

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Rates:  

	Managing Partner (Oye Olukotun)	 	$375/hour ($3,000/day)
	Partner(s) (M. Carvlin, T. Fritz)	 	$250/hour ($2,000/day)
	 	 	 

Payment:  

        For this project CRS' fees will be determined on a time and materials basis, calculated from the cumulative person-days that we are on the assignment. 

        CRS
will invoice Photogen monthly for its professional fees and expenses incurred during the prior month. The first invoice will be submitted August 31, 2001. 

        The
total professional fees for this engagement are not to exceed $408,000 (exclusive of expenses) without your prior written approval. CRS will closely monitor project fees and expenses
and, if necessary, will seek approval from Photogen to exceed $408,000 no later than 45 days in advance of this amount being reached. 

        Billing
will include an itemized accounting by project. 

        Invoices
are due within 30 days after receipt. 

        Although
we feel that the proposed time and resources are adequate to bring this effort to a successful conclusion, completion within these limits depends on changes in the direction of
the work that are dictated by you. We will bring to your attention as soon as recognized any factors that will affect these estimates. 

Stock Warrant:  

        Within 30 days of execution of this contract Photogen and CRS will execute a warrant agreement in addition to fees related to the services outlined in this
agreement as an addendum to this agreement. 

Confidentiality:  

        CRS's ability to carry out the required work is heavily dependent upon its past experience in providing similar services to others, and CRS expects to continue
such work in the future. However, CRS recognizes the importance
of protecting Photogen's rights to its ideas, inventions, discoveries, trade secrets, confidential information and good will and agrees as follows: 

        CRS
agrees that it will not, at any time during or for five years after the termination of CRS' engagement with Photogen (or such longer period designated by Photogen in writing with
respect to specific items of Proprietary Information), communicate, disclose, or otherwise make available to any person or entity, or use for its own account or benefit (except in the course of CRS'
engagement with Photogen) or for the benefit of any other person or entity, any information or materials proprietary to Photogen that relate to Photogen's business or affairs that are of a
confidential nature, including, but not limited to, techniques, formulas, processes, products, product ideas, trade secrets, inventions (whether patentable or not), information or materials relating
to existing or proposed pharmaceutical or biopharmaceutical products (in all and various stages of development), drug delivery and/or diagnostics, "know-how", marketing techniques and
materials, marketing and development plans, customer lists and other customer information (including current and future prospects), partnering/strategic partnering information and plans, price lists,
pricing policies, personnel information, marketing and financial information (collectively, "Proprietary Information"). Proprietary Information includes any and all such information and materials,
whether or not obtained by CRS with the knowledge and permission of Photogen, and whether or not developed, devised or otherwise created in whole or in part by CRS' efforts. 

        The
confidentiality obligations contained within this Agreement will survive the termination, expiration or cancellation of this Agreement. 

Use of CRS Name and Work Products:  

        In connection with this engagement, CRS may furnish Photogen with presentations, analyses or other such materials. Photogen understands and agrees that any such
materials will be furnished solely for their information and internal use in connection with the engagement and may not be used for any other purpose or be published, quoted, copied, condensed,
paraphrased or delivered to any other party without the prior written consent of CRS, such consent not to be unreasonably withheld. Photogen further agrees not to refer to CRS or attribute any 

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information to CRS in the press, for advertising or promotional purposes, or for the purposes of informing or influencing the investment community without the prior written consent of CRS. 

Indemnification:  

        Photogen hereby agrees to indemnify and hold CRS harmless from and against all claims, liabilities, losses, damages, and expenses as they are incurred, including
legal fees arising out of any action brought by a third party that is directly related to the services provided by CRS under this Agreement. Photogen shall not, however, be liable under the foregoing
indemnity agreement to the extent that any such claims, liabilities, losses, damages, and expenses result from the negligence, willful misfeasance or breach of any of its obligations under this
Agreement by CRS. 

        CRS
agrees to indemnify, defend and hold Photogen and its subsidiaries, affiliates, directors, officers, employees, agents and representatives (collectively, the "Photogen Parties")
harmless from and against all losses, claims, damages, causes of action, liabilities, costs and expenses (including without limitation, all reasonable attorneys'
fees, costs and expenses) arising out of or relating to (i) the violation by CRS of any applicable law, order or regulation; or (ii) the negligence, willful misconduct or breach of any
obligations under this Agreement on the part of CRS in connection with the services provided under this Agreement. 

        The
indemnity obligations contained within this Agreement will survive the termination, expiration or cancellation of this Agreement. 

Standard for Performance of Services and Compliance with Policies:  

        CRS shall perform all services under this Agreement in a timely, professional and ethical manner. CRS shall comply with all corporate policies established or
observed from time to time by Photogen that are applicable to the services being provided and that Consultant is made aware of. 

Inventions:  

        If during the course of CRS' performance of the services hereunder, CRS conceives or actually reduces to practice a new invention, whether or not patentable, or
an improvement of an existing invention or any other item of intellectual property involving the Photogen compounds, the Proprietary Information or any other Photogen intellectual property or
resources (inclusive of new uses, formulations, therapeutic combination, or methods of treatment) for which CRS is providing consultation services under this Agreement, CRS shall promptly notify
Photogen. The new invention or use shall be promptly disclosed to Photogen's CEO, and shall be the sole property of and is hereby assigned to Photogen. CRS shall take all actions, including executing
documents, necessary to fully effectuate the foregoing. 

Termination:  

        Either Photogen or CRS may terminate the Agreement, at any time with or without cause upon thirty (30) days' written notice from Photogen to CRS (or in the
case of termination of this Agreement by CRS, written notice from CRS to Photogen). In the event that CRS elects to terminate this agreement, CRS will allow for an orderly transfer of knowledge,
information, skills and contacts. 

        The
termination of this Agreement shall not relieve either party of its obligation to the other in respect of (i) maintaining the confidentiality of information,
(ii) obtaining consents for advertising purposes and publications, (iii) compensation for services performed prior to termination, and as appropriate, services performed pursuant to the
transfer of knowledge (iv) assignments of patents and inventions, and (v) retention of records. 

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Other:  

        Any change in this engagement letter shall be confirmed in writing. All communication and notices required to be in writing under this Agreement shall be
delivered personally, by courier, sent by telegram, or mailed to the parties at the addresses set forth below, or such other addresses as the parties may designate in writing. 

	If to Photogen:	 	If to CRS:
	

Photogen Technologies, Inc	
 	

Clinical Regulatory Strategies, LLC
	140 Union Square Drive	 	66 Witherspoon St. Suite 355
	New Hope, PA 18938	 	Princeton, NJ 08542
	

Attention: Taffy Williams, Ph.D.	
 	

Attention: Oye Olukotun, MD
	President and CEO	 	Chief Executive Officer

        This letter shall be interpreted according to the laws of the State of New Jersey. In performing services hereunder, CRS is an independent contractor for
Photogen. Employees of CRS are not and shall not be considered employees of Photogen for any purpose. 

        Nothing
shall be construed to create a partnership, joint venture or agency relationship between the parties. Photogen will have title to all documentation, records, raw data or other
work product generated during the performance of the Services. Copies of all documentation, records, and raw data will be provided to Photogen with the final report unless otherwise specified. 

        Neither
this Agreement nor any rights or obligations hereunder may be assigned or subcontracted by CRS without the prior written consent of Photogen. 

        Any
and all disputes arising under, or in connection with, this Agreement shall be resolved by submission to final and binding arbitration in accordance with the
then-prevailing commercial Arbitration Rules ("Rules") of the American Arbitration Association. A single arbitrator shall be chosen in accordance with the Rules and the proceedings shall
be conducted in Mercer County, New Jersey. In addition, the arbitrator shall base his award upon substantial evidence and in accordance with New Jersey law but shall have no power or jurisdiction to
award any punitive or exemplary damages. Each party shall be responsible for its own costs including attorney's fees and expert witness fees. Arbitration fees shall be equally shared by the parties. A
party may seek non-monetary relief (such as an injunction) from a court of competent jurisdiction in addition to arbitration. 

        This
Agreement represents the entire understanding between the parties, and supersedes all other agreements, express or implied, between the parties concerning the subject matter hereof. 

        If
any provision of this Agreement is determined in a final, non-appealable ruling to be invalid or unenforceable, such invalidity or unenforceability shall not affect the
remaining provisions of this Agreement and the affected provision shall be modified to the extent necessary to be valid and enforceable and to reflect the intent of the parties to the fullest extent
possible. 

ADDENDUM  

        Photogen will grant to CRS a warrant to purchase 760,000 shares of Common Stock (prior to consideration of the proposed stock reverse split) of the Company. The
option shall be granted as of the date of closing of the current institutional financing, have a term of five years from the date of grant, have an exercise price equal to the closing price of the
Company's Common Stock on the date of the closing of the institutional financing and shall vest only upon achievement of milestones attained within the term of the engagement according to the
following schedule: 

	Milestone
	 	Amount

	File USA IND with FDA for PH-50	 	20%
	Inject first patient in USA Phase 1 (or Phase 2) for PH-50 or analog	 	35%
	Completion of USA Phase 1 (or Phase 2) for PH-50 or analog	 	35%
	Initiation of Clinical Trials (Phase 1, 1/2, 2) for N1177—or alternative product	 	10%

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