Document:

EXHIBIT 10.1

 

BEAVER DAM
LIMITED LIABILITY COMPANY

 

OPERATING
AGREEMENT

 

This Operating Agreement (this “Agreement”) is entered into as of the
30th day of May, 1996, by and among David D. Smith, Frederick G. Smith, J.
Duncan Smith, Robert E. Smith, and Sinclair Broadcast Group, Inc., a Maryland
corporation.

 

Explanatory
Statement

 

The parties have agreed to organize and operate a limited liability
company in accordance with the terms of, and subject to the conditions set
forth in, this Agreement.

 

NOW, THEREFORE, for good and valuable consideration, the parties,
intending legally to be bound, agree as follows:

 

Section I

Defined
Terms

 

The following capitalized terms shall have
the meanings specified in this Section I. Other terms are defined in the text
of this Agreement; and, throughout this Agreement, those terms shall have the
meanings respectively ascribed to them.

 

“Act” means the Maryland Limited Liability Company Act, as amended from
time to time.

 

“Adjusted Capital Account Deficit” means, with respect to any Interest
Holder, the deficit balance, if any, in the Interest Holder’s Capital Account
as of the end of the relevant taxable year, after giving effect to the
following adjustments:

 

(i) the deficit shall be decreased by the amounts which the Interest
Holder is obligated to restore pursuant to Section 4.4.2 or is deemed obligated
to restore pursuant to Regulation Sections 1.704-2(g)(1) and (i)(5) (i.e., the
Interest Holder’s share of Minimum Gain and Member Minimum Gain); and

 

(ii) the deficit shall be increased by the items described in
Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5), and (6).

 

“Affiliate” means, with respect to any Member, any Person:  (i) which owns more than fifty percent (50%)
of the voting interests in the Member; (ii) in which the Member owns more than
fifty percent (50%) of the voting interests; or (iii) in which more than fifty

 

 

percent (50%)
of the voting interests are owned by a Person who has a relationship with the
Member described in clause (i) or (ii) above.

 

“Agreement” means this Agreement, as amended from time to time.

 

“Capital Account” means the account maintained by the Company for each
Interest Holder in accordance with the following provisions:

 

(i) an Interest Holder’s Capital Account shall be credited with the
Interest Holder’s Capital Contributions, the amount of any Company liabilities
assumed by the Interest Holder (or which are secured by Company property
distributed to the Interest Holder), the Interest Holder’s allocable share of
Profit and any item in the nature of income or gain specially allocated to such
Interest Holder pursuant to the provisions of Section IV (other than Section
4.3.3); and

 

(ii) an Interest Holder’s Capital Account shall be debited with the
amount of money and the fair market value of any Company property distributed
to the Interest Holder, the Interest Holder’s allocable share of Loss, and any
item in the nature of expenses or losses specially allocated to the Interest
Holder pursuant to the provisions of Section IV (other than Section 4.3.3).

 

If any Interest is transferred pursuant to the terms of this Agreement,
the transferee shall succeed to the Capital Account of the transferor to the
extent the Capital Account is attributable to the transferred Interest. If the
book value of Company property is adjusted pursuant to Section 4.3.3, the
Capital Account of each Interest Holder shall be adjusted to reflect the
aggregate adjustment in the same manner as if the Company had recognized gain
or loss equal to the amount of such aggregate adjustment. It is intended that
the Capital Accounts of all Interest Holders shall be maintained in compliance
with the provisions of Regulation Section 1.704-1(b), and all provisions of
this Agreement relating to the maintenance of Capital Accounts shall be
interpreted and applied in a manner consistent with that Regulation.

 

“Capital Contribution” means the total amount of cash and the fair
market value of any other assets contributed (or deemed contributed under
Regulation Section 1.704-1(b)(2)(iv)(d)) to the Company by a Member, net of
liabilities assumed or to which the assets are subject.

 

“Cash Flow” means all cash funds derived from operations of the Company
(including interest received on reserves), without reduction for any non-cash
charges, but less cash funds used to pay current operating expenses and to pay
or establish reasonable reserves for future expenses, debt payments, capital
improvements, and replacements as determined by the Members. Cash Flow shall be
increased by the reduction of any reserve previously established.

 

“Code” means the Internal Revenue Code of 1986, as amended, or any
corresponding provision of any succeeding law.

 

 

“Company” means the limited liability company organized in accordance
with this Agreement.

 

“Family” means with respect to a Member who is a natural person: (i)
such Member’s spouse, (ii) such Member’s children (without regard to age and
including adopted children and stepchildren), and (iii) trusts for the
exclusive benefit of a Member or any one or more of the of the foregoing
individuals.

 

“Interest” means a Person’s share of the Profits and Losses of, and the
right to receive distributions from, the Company.

 

“Interest Holder” means any Person who holds an Interest, whether as a
Member or as an unadmitted assignee of a Member.

 

“Involuntary Withdrawal” means, with respect to any Member, the
occurrence of any of the events set forth in Act Section 4A-606(3) through (9).

 

“Member” means each Person signing this Agreement and any Person who
subsequently is admitted as a member of the Company.

 

“Member Minimum Gain” has the meaning set forth in Regulation Section
1.704-2(i) for “partner nonrecourse debt minimum gain.”

 

“Membership Rights” means all of the rights of a Member in the Company,
including a Member’s:  (i) Interest; (ii)
right to inspect the Company’s books and records; (iii) right to participate in
the management of and vote on matters coming before the Company; and (iv)
unless this Agreement or the Articles of Organization provide to the contrary,
right to act as an agent of the Company.

 

“Minimum Gain” has the meaning set forth in Regulation Section
1.704-2(d). Minimum Gain shall be computed separately for each Interest Holder
in a manner consistent with the Regulations under Code Section 704(b).

 

“Negative Capital Account” means a Capital Account with a balance of
less than zero.

 

“Percentage” means, as to a Member, the percentage set forth after the
Member’s name on Exhibit A, as amended from time to time, and as to an Interest
Holder who is not a Member, the Percentage of the Member whose Interest has
been acquired by such Interest Holder, to the extent the Interest Holder has
succeeded to that Member’s Interest.

 

“Person” means and includes an individual, corporation, partnership,
association, limited liability company, trust, estate, or other entity.

 

 

“Positive Capital Account” means a Capital Account with a balance
greater than zero.

 

“Profit” and “Loss” means, for each taxable year of the Company (or
other period for which Profit or Loss must be computed) the Company’s taxable
income or loss determined in accordance with Code Section 703(a), with the
following adjustments:

 

(i) all items of income, gain, loss, deduction, or credit required to
be stated separately pursuant to Code Section 703(a)(1) shall be included in
computing taxable income or loss;

 

(ii)  any tax-exempt income of
the Company, not otherwise taken into account in computing Profit or Loss,
shall be included in computing taxable income or loss;

 

(iii) any expenditures of the Company described in Code Section
705(a)(2)(B) (or treated as such pursuant to Regulation Section 1.704-1(b)(2)(iv)(i))
and not otherwise taken into account in computing Profit or Loss, shall be
subtracted from taxable income or loss;

 

(iv)  gain or loss resulting from
any taxable disposition of Company property shall be computed by reference to
the adjusted book value of the property disposed of, notwithstanding the fact
that the adjusted book value differs from the adjusted basis of the property
for federal income tax purposes;

 

(v) in lieu of the depreciation, amortization or cost recovery
deductions allowable in computing taxable income or loss, there shall be taken
into account the depreciation computed based upon the adjusted book value of
the asset; and

 

(vi) notwithstanding any other provision of this definition, any items
which are specially allocated pursuant to Section 4.3 hereof shall not be taken
into account in computing Profit or Loss.

 

“Regulation” means the income tax regulations, including any temporary
regulations, from time to time promulgated under the Code.

 

“SDAT” means the State Department of Assessments and Taxation of
Maryland.

 

“Transfer” means, when used as a noun, any voluntary sale,
hypothecation, pledge, assignment, attachment, or other transfer, and, when
used as a verb, means voluntarily to sell, hypothecate, pledge, assign, or
otherwise transfer.

 

“Voluntary Withdrawal” means a Member’s dissociation with the Company
by means other than a Transfer or an Involuntary Withdrawal.

 

 

Section II

Formation
and Name; Office; Purpose; Term

 

2.1.  Organization.  The parties hereby organize a
limited liability company pursuant to the Act and the provisions of this
Agreement and, for that purpose, have caused Articles of Organization to be
prepared, executed, and filed with SDAT on May 30, 1996.

 

2.2.  Name
of the Company.  The name
of the Company shall be “Beaver Dam Limited Liability Company.” The Company may
do business under that name and under any other name or names upon which the
Members agree. If the Company does business under a name other than that set
forth in its Articles of Organization, then the Company shall file a trade name
application as required by law.

 

2.3.  Purpose.  Company is organized to engage
in any lawful activities permitted by a limited liability company under the
laws of Maryland.

 

2.4.  Term.  The term of the Company began
upon the acceptance of the Articles of Organization by SDAT and shall continue
in existence until January 1, 2200, unless its existence is sooner terminated
pursuant to Section VII of this Agreement.

 

2.5.  Principal
Office.  The principal
office of the Company in the State of Maryland shall be located at 2000 W. 41st
Street, Baltimore, Maryland 21211, or at any other place within the State of
Maryland upon which the Members agree.

 

2.6. Resident Agent.  The name and address of the
Company’s resident agent in the State of Maryland shall be Steven A. Thomas,
Thomas & Libowitz, P.A., USF&G Tower, Suite 1100, 100 Light Street,
Baltimore, Maryland 21202-1053.

 

2.7. Members. 
The name, present mailing address, taxpayer
identification number and Percentage of each Member are set forth on Exhibit A.

 

Section
III

 

Members;
Capital; Capital Accounts

 

3.1.  Initial
Capital Contributions.  Upon
the execution of this Agreement, the Members shall contribute to the Company
cash in the amounts respectively set forth on Exhibit A.

 

3.2.  No
Other Capital Contributions Required.  No
Member shall be required to contribute any additional capital to the Company,
and except as set forth in the Act, no Member shall have any personal liability
for any obligations of the Company.

 

3.3.  No
Interest on Capital Contributions.  Interest
Holders shall not be paid interest on their Capital Contributions.

 

3.4. Return of Capital Contributions.  Except as otherwise provided
in this Agreement, no Interest Holder shall have the right to receive the
return of any Capital Contribution.

 

 

3.5. Form of Return of Capital.  If an Interest Holder is
entitled to receive a return of a Capital Contribution, the Company may
distribute cash, notes, property, or a combination thereof to the Interest
Holder in return of the Capital Contribution.

 

3.6. Capital Accounts.  A separate Capital Account
shall be maintained for each Interest Holder.

 

3.7. Loans. 
Any Member may, at any time, make or cause a loan to be
made to the Company in any amount and on those terms upon which the Company and
the Member agree.

 

Section IV

 

Profit,
Loss, and Distributions

 

4.1.  Distributions
of Cash Flow.  Cash Flow
for each taxable year of the Company shall be distributed to the Interest
Holders in proportion to their Percentages no later than seventy-five (75) days
after the end of the taxable year.

 

4.2.  Allocation
of Profit or Loss.  After
giving effect to the special allocations set forth in Section 4.3, for any
taxable year of the Company, Profit or Loss shall be allocated to the Interest
Holders in proportion to their Percentages.

 

4.3. Regulatory Allocations.

 

4.3.1. Qualified Income
Offset.  No Interest
Holder shall be allocated Losses or deductions if the allocation causes an
Interest Holder to have an Adjusted Capital Account Deficit. If an Interest
Holder receives (1) an allocation of Loss or deduction (or item thereof) or (2)
any distribution which causes the Interest Holder to have an Adjusted Capital
Account Deficit at the end of any taxable year, then all items of income and
gain of the Company (consisting of a pro rata portion of each item of Company
income, including gross income and gain) for that taxable year shall be
allocated to that Interest Holder before any other allocation is made of
Company items for that taxable year, in the amount and in proportions required
to eliminate the excess as quickly as possible. This Section 4.3.1 is intended
to comply with, and shall be interpreted consistently with, the “qualified
income offset” provisions of the Regulations promulgated under Code Section
704(b).

 

4.3.2. Minimum Gain
Chargeback.  Except as set
forth in Regulation Section 1.704-2(f)(2), (3), and (4), if, during any taxable
year, there is a net decrease in Minimum Gain, each Interest Holder, prior to
any other allocation pursuant to this Section IV, shall be specially allocated
items of gross income and gain for such taxable year (and, if necessary, subsequent
taxable years) in an amount equal to that Interest Holder’s share of the net
decrease of Minimum Gain, computed in accordance with Regulation Section
1.704-2(g)(2). Allocations of gross income and gain pursuant to this Section
4.3.2 shall be made first from gain recognized from the disposition of Company
assets subject to nonrecourse

 

 

liabilities
(within the meaning of the Regulations promulgated under Code Section 752), to
the extent of the Minimum Gain attributable to those assets, and thereafter,
from a pro rata portion of the Company’s other items of income and gain for the
taxable year. It is the intent of the parties hereto that any allocation
pursuant to this Section 4.3.2 shall constitute a “minimum gain chargeback”
under Regulation Section 1.704-2(f).

 

4.3.3. 
Contributed Property and Book-Ups.  In accordance with Code
Section 704(c) and the Regulations thereunder, as well as Regulation Section
1.704-1(b)(2)(iv)(d)(3), income, gain, loss, and deduction with respect to any
property contributed (or deemed contributed) to the Company shall, solely for
tax purposes, be allocated among the Interest Holders so as to take account of
any variation between the adjusted basis of the property to the Company for
federal income tax purposes and its fair market value at the date of
contribution (or deemed contribution). If the adjusted book value of any
Company asset is adjusted as provided herein, subsequent allocations of income,
gain, loss, and deduction with respect to the asset shall take account of any
variation between the adjusted basis of the asset for federal income tax
purposes and its adjusted book value in the manner required under Code Section
704(c) and the Regulations thereunder.

 

4.4. Liquidation and Dissolution.

 

4.4.1. 
If the Company is liquidated, the assets of the Company shall be
distributed to the Interest Holders in accordance with the balances in their
respective Capital Accounts, after taking into account the allocations of
Profit or Loss pursuant to Section 4.2, if any, and distributions, if any, of
cash or property, pursuant to Section 4.1.

 

4.4.2. 
No Interest Holder shall be obligated to restore a Negative Capital
Account.

 

4.5. General.

 

4.5.1. 
Except as otherwise provided in this Agreement, the timing and amount of
all distributions shall be determined by the Members.

 

4.5.2. 
If any assets of the Company are distributed in kind to the Interest
Holders, those assets shall be valued on the basis of their fair market value,
and any Interest Holder entitled to any interest in those assets shall receive
that interest as a tenant-in-common with all other Interest Holders so
entitled. Unless the Members otherwise agree, the fair market value of the
assets shall be determined by an independent appraiser who shall be selected by
the Members. The Profit or Loss for each unsold asset shall be determined as if
the asset had been sold at its fair market value, and the Profit or Loss shall
be allocated as provided in Section 4.2 and shall be properly credited or
charged to the Capital Accounts of the Interest Holders prior to the
distribution of the assets in liquidation pursuant to Section 4.4.

 

4.5.3. 
All Profit and Loss shall be allocated, and all distributions shall be
made, to the Persons shown on the records of the Company to have been Interest
Holders as

 

 

of the last
day of the taxable year for which the allocation or distribution is to be made.
Notwithstanding the foregoing, unless the Company’s taxable year is separated
into segments, if there is a Transfer or an Involuntary Withdrawal during the
taxable year, the Profit or Loss shall be allocated between the original
Interest Holder and the successor on the basis of the number of days each was
an Interest Holder during the taxable year; provided, however, the Company’s
taxable year shall be segregated into two or more segments in order to account
for Profit, Loss, or proceeds attributable to any extraordinary non-recurring
items of the Company.

 

4.5.4. 
The Members are hereby authorized, upon the advice of the Company’s tax
counsel, to amend this Article IV to comply with the Code and the Regulations
promulgated under Code Section 704(b); provided, however, that no amendment
shall materially affect distributions to an Interest Holder without the
Interest Holder’s prior written consent.

 

Section V

 

Management:  Rights, Powers, and
Duties

 

5.1.  Management.  The Company shall be managed
by the Members. Except as otherwise provided in this Agreement, each Member
shall have the right to act for and bind the Company in the ordinary course of
its business.

 

5.2. Meetings of and Voting by Members.

 

5.2.1. 
A meeting of the Members may be called at any time by any Member.
Meetings of Members shall be held at the Company’s principal place of business
or at any other place in Baltimore, Maryland or in any county bordering
Baltimore, Maryland, designated by the Member calling the meeting. Not less
than ten (10) nor more than ninety (90) days before each meeting, the Member
calling the meeting shall give written notice of the meeting to each Member.
The notice shall state the time, place, and purpose of the meeting.
Notwithstanding the foregoing provisions, each Member waives notice if before
or after the meeting the Member signs a waiver of the notice which is filed
with the records of Members’ meetings, or is present at the meeting in person
or by proxy. Unless this Agreement provides otherwise, at a meeting of Members,
the presence in person or by proxy of Members holding not less than fifty-one
percent (51%) of the Percentages then held by Members constitutes a quorum. A
Member may vote either in person or by written proxy signed by the Member or by
the Member’s duly authorized attorney in fact.

 

5.2.2. 
Except as otherwise provided in this Agreement, the affirmative vote of
the Members holding fifty-one percent (51%) or more of the Percentages then
held by Members shall be required to approve any matter coming before the
Members.

 

5.2.3. 
In lieu of holding a meeting, the Members may vote or otherwise take
action by a written instrument indicating the consent of Members holding fifty-one
percent (51%) or more of the Percentages then held by Members.

 

 

5.2.4. 
Except as otherwise provided in this Agreement, wherever the Act
requires unanimous consent to approve or take any action, that consent shall be
given in writing and, in all cases, shall mean, rather than the consent of all
Members, the consent of the Members holding sixty-six and two-thirds percent
(66-2/3%) or more of the Percentages then held by Members. Notwithstanding
anything to the contrary in this Agreement, the Company shall not Transfer
substantially all of its assets without the consent in writing of the Members
holding sixty-six and two-thirds percent (66-2/3%) or more of the Percentages
then held by Members.

 

5.3. Personal Services.  No Member shall be required to
perform services for the Company solely by virtue of being a Member. Unless
approved by the Members, no Member shall be entitled to compensation for
services performed for the Company. However, upon substantiation of the amount
and purpose thereof, the Members shall be entitled to reimbursement for
expenses reasonably incurred in connection with the activities of the Company.

 

5.4. Duties of Parties.

 

5.4.1. A Member shall not be liable,
responsible, or accountable in damages or otherwise to the Company or to any
other Member for any action taken or any failure conferred on the Member by
this Agreement or by law, unless the action taken or omission was made
fraudulently or in bad faith or unless the action or omission constituted gross
negligence.

 

5.4.2. Except as otherwise expressly provided
in Section 5.4.3., nothing in this Agreement shall be deemed to restrict in any
way the rights of any Member, or of any Affiliate of any Member, to conduct any
other business or activity whatsoever, and no Member shall be accountable to
the Company or to any other Member with respect to that business or activity
even if the business or activity competes with the Company’s business. The
organization of the Company shall be without prejudice to the Members’
respective rights (or the rights of their respective Affiliates) to maintain,
expand, or diversify such other interests and activities and to receive and
enjoy profits or compensation therefrom. Each Member waives any rights the
Member might otherwise have to share or participate in such other interests or
activities of any other Member or the Member’s Affiliates.

 

5.4.3. Each Member understands and
acknowledges that the conduct of the Company’s business may involve business
dealings and undertakings with Members and their Affiliates. In any of those
cases, those dealings and undertakings shall be at arm’s length and on
commercially reasonable terms.

 

5.5. Liability and Indemnification.

 

5.5.1. 
A Member shall not be liable, responsible, or accountable, in damages or
otherwise, to any other Member or to the Company for any act performed by the
Member

 

 

with respect
to Company matters, except for fraud, gross negligence, or a breach of this
Agreement.

 

5.5.2. 
The Company shall indemnify each Member for any act performed by the
Member with respect to Company matters, except for fraud, gross negligence, or
a breach of this Agreement.

 

Section VI

 

Transfer
of Interests and Withdrawals of Members

 

6.1. Transfers.

 

6.1.1. 
No Person may Transfer all, or any portion of, or any interest or rights
in, the Person’s Membership Rights or Interest unless the following conditions
(“Conditions of Transfer”) are satisfied.

 

6.1.1.1. the Transfer will not require
registration of Interests or Membership Rights under any federal or state
securities laws;

 

6.1.1.2. 
the transferee delivers to the Company a written agreement to be bound
by the terms of this Agreement;

 

6.1.1.3. the Transfer will not result in the
termination of the Company pursuant to Code Section 708;

 

6.1.1.4. 
the Transfer will not result in the Company being subject to the
Investment Company Act of 1940, as amended;

 

6.1.1.5. the transferor or the transferee
delivers the following information to the Company: (i) the transferee’s
taxpayer identification number, and (ii) the transferee’s initial tax basis in
the Transferred Interest; and

 

6.1.1.6. the transferor complies with the
provisions set forth in Section 6.1.4.

 

6.1.2. If the Conditions of Transfer are
satisfied, then a Member or Interest Holder may Transfer all or any portion of
that Person’s Interest or Membership Rights.

 

6.1.3. Each Member hereby acknowledges the
reasonableness of the prohibition contained in this Section 6.1 in view of the
purposes of the Company and the relationship of the Members. The Transfer of
any Membership Rights or Interests in violation of the prohibition contained in
this Section 6.1 shall be deemed, null, void, and of no force and effect. Any
Person to whom Membership Rights are attempted to be transferred in violation
of this Section shall not be entitled to vote on matters coming before

 

 

the Members,
participate in the management of the Company, act as an agent of the Company,
or have any other rights in or with respect to the Membership Rights.

 

6.1.4. 
Right of First Refusal.

 

6.1.4.1. 
If a Member (individually, a “Transferor”) receives a bona fide written
offer (the “Transferee Offer”) from any other Person (a Transferee”) to
purchase all or any portion of or interest or rights in the Transferor’s Membership
Rights (the “Transferor Interest”) for a purchase price denominated and payable
in United States dollars, then, prior to any Transfer of the Transferor’s
Interest, the Transferor shall first give the remaini­ng Members (the “Remaining
Members”) written notice (the “Transfer Notice”). The Transfer Notice shall
contain each of the following:

 

6.1.4.1.1. 
The identity of the Transferee.

 

6.1.4.1.2. 
A true, correct and complete copy of the Transferee Offer.

 

6.1.4.1.3. 
The Transferor’s offer (the “Offer”) to sell the Transferor Interest to
the Remaining Members for a total price equal to the price set forth in the
Transferee Offer (the “Transfer Purchase Price”), which shall be payable on the
terms of payment set forth in the Transferee Offer.

 

6.1.4.2. 
The Offer shall be and remain irrevocable for a period (the “Offer
Period”) ending at 11:59 P.M., local time at the Company’s principal office, on
the thirtieth (30th) Day following the date the Transfer Notice was given to
the Remaining Members. At any time during the Offer Period, a Remaining Member
may accept the Offer by giving written notice to the Transferor that the
Remaining Member intends to purchase all, but not less than all, of the
Transferor Interest. If two or more Remaining Members desire to accept the
Offer, then, in the absence of an agreement between or among them, each such
Remaining Member shall purchase the Transferor Interest in the proportion that
his respective Percentage bears to the total Percentages of all of the
Remaining Members who desire to accept the Offer. If one or more Remaining
Members accept the Offer, then the parties shall fix a closing date (the “Transfer
Closing Date”) for the purchase which shall be not be earlier than ten (10) nor
later than ninety (90) Days after the expira­tion of the Offer Period.

 

6.1.4.3. 
If any Remaining Member accepts the Offer, the Transfer Purchase Price
shall be paid in immediately available funds on the Transfer Closing Date in
accordance with the terms set forth in the Transferee Offer.

 

6.1.4.4. 
If no Remaining Member accepts the Offer (within the time and in the
manner specified in this Section), then the Transferor shall be free for a
period (the “Free Transfer Period”) of thirty (30) Days from the expiration of
the Offer Period to Transfer the Transferor Interest to the Transferee, for the
same or greater price and on the same terms and conditions as set forth in the
Transfer Notice. The Transfer shall be subject,

 

 

however, to the Conditions of Transfer (other than Section 6.1.1.6). If
the Transferor does not Transfer the Transferor Shares within the Free Transfer
Period, the Transferor’s right to Transfer the Transferor Interest pursuant to
this Section shall cease and terminate.

 

6.1.4.5. 
Any Transfer by the Transferor after the last day of the Free Transfer
Period or made without strict compliance with the terms, provisions and
conditions of this Section and the other terms, provisions and conditions of
this Agreement shall be absolutely null and void and of no force and effect.

 

6.1.5. 
Transfers to Affiliates and Family .  Notwithstanding anything set forth in this
Agreement to the contrary, but provided that the Conditions of Transfer other
than Section 6.1.1.6 are satisfied, any Member may at any time, and from time
to time, Transfer all, or any portion of, or any interest or rights in, the
Member’s Interest or Membership Rights to (i) any other Member, (ii) any member
of the Member’s Family, (or) (iii) any Affiliate of the Member.

 

6.1.6. 
Admission of Transferee as Member.
If the Conditions of Transfer are satisfied, then the transferee shall be
admitted as a Member and shall be entitled to exercise the rights of a Member
after the consent of Members whose Interests represent more than one-half (1/2)
of the aggregate of all of the Interests, except the Interest of the Member
whose Interest is being transferred has been obtained.

 

6.1.7. 
Collective Exercise of Membership Rights
Involving Family Transfers. 
Notwithstanding anything to the contrary in this Agreement, with respect
to any Membership Rights (other than the Interest portion of Membership Rights)
of a particular Member transferred pursuant to clause (ii) of Section 6.1.5,
such Membership Rights must be exercised with respect to the Company and the
other Members not parties to the Transfer, on a collective and en masse basis
with: (i) all of the other transferees of such Membership Rights of such
Member, (ii) all subsequent transferees of such Membership Rights to the extent
such transferees’ Membership Rights were originally derived from such Member,
and (iii) if the Member who transferred such Membership Rights remains a
Member, with such Member as well. To ensure that such Membership Rights are
exercised on a collective en masse basis, the holders of such Membership Rights
shall designate in writing (which writing shall be filed with the records of
the Company) one Person (who shall be the same Person) who shall be a Member
who shall exercise all such Membership Rights of such holders. Any purported
exercise of such Membership Rights with respect to the Company or any other
Member who was not a party to such Transfer of such Membership Rights that is
not done on a collective and en masse basis shall be null and void and of no
force and effect with respect to the Company and such other Members.
Notwithstanding the foregoing provisions of this Section 6.1.7, if such
Membership Rights are subsequently retransferred pursuant to Section 6.1.4, the
provisions of this Section 6.1.7 shall not apply to such Membership Rights that
are so transferred, unless and until they are again retransferred pursuant to
clause (ii) of Section 6.1.5. For purposes of this Section 6.1.7, and in
particular clauses (i)-(iii) of the first sentence of this Section 6.1.7, such
Membership Rights shall then be treated as being derived from the Member who
last acquired them pursuant to Section 6.1.4.

 

 

6.2.  Voluntary
Withdrawal.  No Member
shall have the right or power to Voluntarily Withdraw from the Company.

 

6.3.  Involuntary
Withdrawal.  Immediately
upon the occurrence of an Involuntary Withdrawal, the successor of the
Withdrawn Member shall thereupon become an Interest Holder but shall not become
a Member. If the Company is continued as provided in Section 7.1.3, the
successor Interest Holder shall have all the rights of an Interest Holder but
shall not be entitled to receive in liquidation of the Interest, pursuant to
Section 4A-905(1)(ii) of the Act, the fair market value of the Member’s
Interest as of the date the Member involuntarily withdrew from the Company.

 

Section
VII

 

Dissolution,
Liquidation, and

Termination
of the Company

 

7.1.  Events
of Dissolution.  The
Company shall be dissolved upon the happening of any of the following events:

 

7.1.1. when the period fixed for its duration
in Section 2.4 has expired;

 

7.1.2. upon the unanimous written agreement
of the Members; or

 

7.1.3. upon the death, insanity, retirement,
resignation, expulsion, or bankruptcy of a Member or the occurrence of any
other event which terminated the continued membership of a Member in the
Company, unless Members holding a majority of the Interests in the Company and
more than one-half (1/2) of the Capital Accounts of the Company other than the
Interest and Capital Account held by the Member who dies, becomes insane, retires,
resigns, is expelled, or becomes bankrupt, within ninety (90) days after the
event or occurrence, elect to continue the business of the Company.

 

7.2.  Procedure
for Winding Up and Dissolution.  If
the Company is dissolved, the remaining Members shall wind up its affairs. On
winding up of the Company, the assets of the Company shall be distributed,
first, to creditors of the Company, including Interest Holders who are
creditors, in satisfaction of the liabilities of the Company, and then to the Interest
Holders in accordance with Section 4.4.

 

7.3.  Filing
of Articles of Cancellation.  If
the Company is dissolved, the Members shall promptly file Articles of
Cancellation with SDAT. If there are no remaining Members, the Articles shall
be filed by the last Person to be a Member; if there are no remaining Members,
or a Person who last was a Member, the Articles shall be filed by the legal or
personal representatives of the Person who last was a Member.

 

 

Section
VIII

 

Books,
Records, Accounting, and Tax Elections

 

8.1. Bank Accounts.  All funds of the Company shall
be deposited in a bank account or accounts opened in the Company’s name. The
Members shall determine the institution or institutions at which the accounts
will be opened and maintained, the types of accounts, and the Persons who will
have authority with respect to the accounts and the funds therein.

 

8.2. Books and Records.  The Members shall keep or
cause to be kept complete and accurate books and records of the Company and
supporting documentation of the transactions with respect to the conduct of the
Company’s business. The books and records shall be maintained in accordance
with sound accounting principles and practices and shall be available at the
Company’s principal office for examination by any Member or the Member’s duly
authorized representative at any and all reasonable times during normal
business hours.

 

8.3. Annual Accounting Period.  The annual accounting period
of the Company shall be its taxable year. The Company’s taxable year shall be
selected by the Members, subject to the requirements and limitations of the
Code.

 

8.4. Reports. 
Within seventy-five (75) days after the end of each
taxable year of the Company, the Members shall cause to be sent to each Person
who was a Member at any time during the taxable year then ended a complete
accounting of the affairs of the Company for the taxable year then ended. In
addition, within seventy five (75) days after the end of each taxable year of
the Company, the Members shall cause to be sent to each Person who was an
Interest Holder at any time during the taxable year then ended, that tax
information concerning the Company which is necessary for preparing the
Interest Holder’s income tax returns for that year. At the request of any
Member, and at the Member’s expense, the Members shall cause an audit of the
Company’s books and records to be prepared by independent accountants for the
period requested by the Member.

 

Section IX

 

General
Provisions

 

9.1.  Assurances.  Each Member shall execute all
such certificates and other documents and shall do all such filing, recording,
publishing, and other acts as the Members deem appropriate to comply with the
requirements of law for the formation and operation of the Company and to
comply with any laws, rules, and regulations relating to the acquisition,
operation, or holding of the property of the Company.

 

9.2.  Notifications.  Any notice, demand, consent,
election, offer, approval, request, or other communication (collectively, a “notice”)
required or permitted under this Agreement must be in writing and either
delivered personally or sent by certified or registered mail, postage prepaid,
return receipt requested. A notice must be addressed to an Interest Holder at
the Interest Holder’s last known address on the records of the Company. A
notice to the Company must be addressed to the Company’s principal office. A
notice 

 

 

delivered
personally will be deemed given only when acknowledged in writing by the person
to whom it is delivered. A notice that is sent by mail will be deemed given
three (3) business days after it is mailed. Any party may designate, by notice
to all of the others, substitute addresses or addressees for notices; and,
thereafter, notices are to be directed to those substitute addresses or
addressees.

 

9.3.  Specific
Performance.  The parties
recognize that irreparable injury will result from a breach of any provision of
this Agreement and that money damages will be inadequate to fully remedy the
injury. Accordingly, in the event of a breach or threatened breach of one or
more of the provisions of this Agreement, and subject to the provisions of
Section 9.8 of this Agreement, any party who may be injured (in addition to any
other remedies which may be available to that party) shall be entitled to one
or more preliminary or permanent orders (i) restraining and enjoining any act
which would constitute a breach or (ii) compelling the performance of any
obligation which, if not performed, would constitute a breach.

 

9.4.  Complete
Agreement.  This Agreement
constitutes the complete and exclusive statement of the agreement among the
Members. It supersedes all prior written and oral statements, including any
prior representation, statement, condition, or warranty. Except as expressly
provided otherwise herein, this Agreement may not be amended without the
written consent of all of the Members.

 

9.5.  Applicable
Law.  All questions
concerning the construction, validity, and interpretation of this Agreement and
the performance of the obligations imposed by this Agreement shall be governed
by the internal law, not the law of conflicts, of the State of Maryland.

 

9.6.  Section
Titles.  The headings
herein are inserted as a matter of convenience only, and do not define, limit,
or describe the scope of this Agreement or the intent of the provisions hereof.

 

9.7.  Binding
Provisions.  This
Agreement is binding upon, and inures to the benefit of, the parties hereto and
their respective heirs, executors, administrators, personal and legal
representatives, successors, and permitted assigns.

 

9.8. Arbitration. 
The parties hereto agree that the provisions of the
Maryland Uniform Arbitration Act and the Federal Arbitration Act are applicable
to this Agreement.  Any question,
dispute, claim and/or controversy arising out of, relating to or in connection
with this Agreement (including, without limitation, the scope or applicability
of this Section 9.8) or any breach or alleged breach of this Agreement, shall
be submitted to arbitration conducted in accordance with the rules and
procedures of the American Arbitration Association (and if there is a conflict
between such rules and procedures on the one hand, and/or the Federal
Arbitration Act or the Maryland Uniform Arbitration Act on the other hand, the
rules and procedures of the American Arbitration Association shall
control).  Arbitration proceedings shall
be held in Baltimore, Maryland.  The
decision in the arbitration proceeding shall be final and may be entered and
enforced in any court of

 

 

competent jurisdiction.  Nothing within this Section 9.8 shall be
deemed to preclude any party hereto from seeking interim or provisional relief
or protection from a court of competent jurisdiction, whether before, during or
after any arbitration proceeding.

 

9.9.  Approval
or Ratification.  The
obligations of Sinclair Broadcast Group, Inc. under this Agreement are subject
to the approval or ratification of this Agreement by its Board of Directors.

 

9.10.  Terms.  Common nouns and pronouns
shall be deemed to refer to the masculine, feminine, neuter, singular and
plural, as the identity of the Person may in the context require.

 

9.11.  Separability
of Provisions.  Each
provision of this Agreement shall be considered separable; and if, for any
reason, any provision or provisions herein are determined to be invalid and
contrary to any existing or future law, such invalidity shall not impair the
operation of or affect those portions of this Agreement which are valid.

 

9.12.  Counterparts.  This Agreement may be executed
simultaneously in two or more counterparts each of which shall be deemed an
original, and all of which, when taken together, constitute one and the same
document.  The signature of any party to
any counterpart shall be deemed a signature to, and may be appended to, any
other counterpart.

 

 

IN WITNESS WHEREOF,
the parties have executed, or caused this Agreement to be executed, under seal,
as of the date set forth hereinabove.

 

	
  WITNESS OR ATTEST:

  	
   

  	
  MEMBERS:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Hyris Feldman

  	
   

  	
  /s/ David D. Smith

  	
  (SEAL)

  
	
   

  	
   

  	
  David D. Smith

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Hyris Feldman

  	
   

  	
  /s/ Frederick G. Smith

  	
  (SEAL)

  
	
   

  	
   

  	
  Frederick G. Smith

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Hyris Feldman

  	
   

  	
  /s/ J. Duncan Smith

  	
  (SEAL)

  
	
   

  	
   

  	
  J. Duncan Smith

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Hyris Feldman

  	
   

  	
  /s/ Robert E. Smith

  	
  (SEAL)

  
	
   

  	
   

  	
  Robert E. Smith

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SINCLAIR BROADCAST GROUP, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Cam Smart

  	
   

  	
  By:

  	
    /s/ David B. Amy

  	
   

  	
  (SEAL)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  David
  B. Amy

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President and Chief Financial Officer

  	
   

  
									

 

 

Beaver Dam
Limited Liability Company

Operating
Agreement

 

Exhibit A

 

List of
Members, Capital, and Percentages

 

	
  Name, Address,

  and Taxpayer

  I.D. Number

  	
   

  	
  Initial

  Cash Capital

  Contribution

  	
   

  	
  Percentages

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  David D. Smith

  	
   

  	
  $

  	
  111,203.48

  	
   

  	
  13.75

  	
  %

  
	
  802 Hillstead Drive

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lutherville, MD 21093

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ###-##-####

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Frederick G. Smith

  	
   

  	
  $

  	
  111,203.48

  	
   

  	
  13.75

  	
  %

  
	
  7 Timberpark Court

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lutherville, MD 21093

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ###-##-####

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J. Duncan Smith

  	
   

  	
  $

  	
  111,203.48

  	
   

  	
  13.75

  	
  %

  
	
  1345 Ivy Hill Road

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cockeysville, MD 21030

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ###-##-####

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Robert E. Smith

  	
   

  	
  $

  	
  111,203.48

  	
   

  	
  13.75

  	
  %

  
	
  3600 Butler Road

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Glyndon, MD 21071

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ###-##-####

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Broadcast Group, Inc.

  	
   

  	
  $

  	
  363,938.66

  	
   

  	
  45.00

  	
  %

  
	
  2000 W. 41st Street

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Baltimore, MD 21211

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  52-1494660EXHIBIT
10.2

 

FIRST
AMENDMENT TO OPERATING AGREEMENT

AND
AGREEMENT TO RETIRE

 

THIS FIRST AMENDMENT TO OPERATING AGREEMENT
AND AGREEMENT TO RETIRE (this “Amendment”) is made as of the 18th
day of April, 1997 (the “Effective Date”), by and among BEAVER DAM LIMITED
LIABILITY COMPANY, a Maryland limited liability company (the “Company”), party
of the first part, DAVID D. SMITH, FREDERICK G. SMITH, J. DUNCAN SMITH and
ROBERT E. SMITH (collectively, the “Remaining Members”), parties of the second
part, and SINCLAIR BROADCAST GROUP, INC., a Maryland corporation (“SBG”), party
of the third part.

 

Explanatory
Statement

 

A.            The
Remaining Members and SBG are all of the members of the Company. The Remaining
Members and SBG entered into an Operating Agreement (the “Operating Agreement”)
with respect to the Company dated May 30, 1996. Except as otherwise defined
herein, capitalized terms used herein other than proper nouns shall have the
respective meanings ascribed to them in the Operating Agreement.

 

B.            The
Percentages are held as follows:

 

	
  David

  	
   

  	
  13.75

  	
  %

  
	
  Frederick

  	
   

  	
  13.75

  	
  %

  
	
  Duncan

  	
   

  	
  13.75

  	
  %

  
	
  Robert

  	
   

  	
  13.75

  	
  %

  
	
  SBG

  	
   

  	
  45.00

  	
  %

  

 

C.            The
parties hereto have agreed that SBG’s entire right, title and interest in and
to the Company (the “Redemption Interest”) shall be retired and redeemed by the
Company and that SBG shall withdraw from the Company all as set forth herein.

 

D.            The
Remaining Members wish to amend Exhibit A to the Operating Agreement.

 

E.             The
parties wish to enter into such other covenants and agreements as are more fully
hereafter set forth.

 

 

NOW, THEREFORE, in consideration of the
premises and the mutual covenants more fully hereafter set forth, the parties
hereto agree as follows:

 

1.             Assignment;
Deliveries.

 

1.1. For the payment by the Company to SBG of
Three Hundred Sixty-Three Thousand Nine Hundred Thirty-Eight Thousand Dollars
and Sixty-Six Cents ($407,033.84), receipt of which is hereby acknowledged by
SBG, SBG hereby assigns, transfers and conveys to the Company all of SBG’s
right, title and interest in and to all of the Redemption Interest (including,
without limitation, SBG’s Membership Rights) in redemption thereof, all
effective as of the Effective Date. It is understood and agreed by the parties
hereto that from and after the Effective Date, SBG shall no longer be a Member
(or be an Interest Holder) or have any Membership Rights whatsoever and that as
of the Effective Date SBG has withdrawn from the Company.

 

2.             Liability,
Profits and Assets.  SBG shall be
relieved of (and is hereby released by the Company and the Remaining Members
from) any liability for any and all debts, obligations and liabilities of the
Company or under the Operating Agreement, to the extent that, on or after the
Effective Date, such debts, obligations or liabilities arise, increase or
accrue (collectively, the “Future Debts, Obligations and Liabilities”), and SBG
shall not be entitled to any share of the profits, losses, assets or
distributions of the Company (except for SBG’s share of the profits,
distributions, assets and losses, if any, that SBG was entitled to on or before
the Effective Date). The Remaining Members shall be entitled to all of the
profits, distributions, assets and losses of the Company (except for the
profits, distributions, assets or losses, if any, SBG was entitled to on or
before the Effective Date) that SBG would have otherwise been entitled to but
for this Amendment and the transactions contemplated hereby, and the Remaining
Members hereby assume from SBG all Future Debts, Obligations and Liabilities
that SBG would have been liable for but for this Amendment and the transactions
contemplated hereby. The Remaining Members hereby jointly and severally agree
to defend, indemnify and hold harmless SBG from, against, and in respect of,
any and all claims, costs, expenses, fees (including, without limitation, the
reasonable fees of counsel), liabilities, obligations, losses, damages,
actions, suits, or proceedings, of any nature, in connection with or arising
from under or out of the Future Debts, Obligations and Liabilities.

 

3.             Amendment
to Operating Agreement; Consent.  The
parties hereto agree that the provisions of Exhibit A to the Operating
Agreement are hereby amended as of the Effective Date by deleting them in their
entirety and by inserting in lieu thereof the provisions of Exhibit A to this
Amendment. The Remaining Members and SBG all consent to the Company entering
into this Agreement

 

4.             SBG
Board Approval or Ratification.  If
not previously approved or ratified by SBG’s Board of Directors, this Amendment
and the parties’ obligations, covenants and agreements hereunder are subject to
the approval or ratification of this Amendment by SBG’s Board of Directors.

 

 

5.             Attorneys’
Fees.  In the event of a breach or
threatened breach of this Amendment, the breaching party or the party
threatening to breach, as the case may be, shall pay the reasonable attorneys’
fees, costs and other expenses of the other party incurred as a result of or in
connection with such breach or threatened breach, including, without limitation,
any such attorneys’ fees, costs or other expenses incurred by such other party
in any litigation to recover damages hereunder or to otherwise enforce this
Amendment.

 

6.             Miscellaneous.

 

6.1.  Section Headings.  Section headings are inserted for
convenience only and shall not limit or otherwise affect any of the provisions
of this Amendment

 

6.2.  Entire
Agreement.  This Amendment, any
supplements hereto or thereto, and any instruments or documents delivered or to
be delivered in connection herewith or therewith represents the entire
agreement and understanding concerning the subject matter hereof and thereof
between the parties hereto, and supersede all other prior agreements,
understanding, negotiations and discussions, representations, warranties, commitments,
proposals, offers and contracts concerning the subject matter hereof, whether
oral or written.

 

6.3.  Waivers;
Amendments.  Any of the terms or
conditions of this Amendment may be waived but only in writing by the party
which is entitled to the benefit thereof, and this Agreement may be amended or
modified in whole or in part only by an agreement in writing, executed by all
of the parties to this Agreement.

 

6.4.  Binding
Nature of Amendment.  This Amendment
shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, personal representatives, successors and assigns.

 

6.5.  Word
Usage.  As used herein, any reference
to the masculine, feminine or neuter gender shall include all genders, the
plural shall include the singular, and the singular shall include the plural.

 

6.6.  Governing
Law.  This Amendment shall be
governed by, and interpreted in accordance with, the law of the State of
Maryland.

 

6.7.  Counterparts.  This Amendment may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

6.8.  Severability.  In the event that any provision of this
Agreement shall be found to be unenforceable in any action or proceeding, the
remaining provisions shall remain in full force and effect.

 

 

6.9.  Survival.  This Amendment shall survive the closing of
the transactions contemplated hereby.

 

6.10.  Arbitration.  The parties hereto agree that the provisions
of the Maryland Uniform Arbitration Act and the Federal Arbitration Act are
applicable to this Amendment. Any question, dispute, claim and/or controversy
arising out of, relating to or in connection with this Amendment (including,
without limitation, the scope or applicability of this Section 6.10) or
any breach or alleged breach of this Amendment, shall be submitted to
arbitration conducted in accordance with the rules and procedures of the
American Arbitration Association (and if there is a conflict between such rules
and procedures on the one hand, and/or the Federal Arbitration Act or the
Maryland Uniform Arbitration Act on the other hand, the rules and procedures of
the American Arbitration Association shall control). Arbitration proceedings
shall be held in Baltimore, Maryland. The decision in the arbitration
proceeding shall be final and may be entered and enforced in any court of
competent jurisdiction. Nothing within this Section 6.10 shall be deemed
to preclude any party hereto from seeking interim or provisional relief or
protection from a court of competent jurisdiction, whether before, during or
after any arbitration proceeding.

 

 

IN WITNESS WHEREOF, the parties hereto have
executed or caused this Amendment to be executed, under seal, effective as of
the date first set forth above.

 

	
  WITNESS OR ATTEST:

  	
  BEAVER DAM LIMITED

  LIABILITY COMPANY

  
	
   

  	
   

  
	
    /s/ Hyris Feldman

  	
   

  	
   /s/ David D. Smith

  	
  (SEAL)

  
	
   

  	
  David D. Smith

  
	
   

  	
   

  
	
   

  	
   

  
	
    /s/ Hyris Feldman

  	
   

  	
    /s/ Frederick G. Smith

  	
  (SEAL)

  
	
   

  	
  Frederick G. Smith

  
	
   

  	
   

  
	
   

  	
   

  
	
    /s/ Hyris Feldman

  	
   

  	
    /s/ J. Duncan Smith

  	
  (SEAL)

  
	
   

  	
  J. Duncan Smith

  
	
   

  	
   

  
	
   

  	
   

  
	
    /s/ Hyris Feldman

  	
   

  	
    /s/ Robert E. Smith

  	
  (SEAL)

  
	
   

  	
  Robert E. Smith

  
	
   

  	
   

  
	
   

  	
  SINCLAIR BROADCAST GROUP, INC.

  
	
   

  	
   

  
	
    /s/ Cam Smart

  	
   

  	
  By:

  	
    /s/ David B. Amy

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:

  	
   David B. Amy

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and Chief

  Financial Officer

  	
   

  
									

 

 

Beaver Dam Limited Liability
Company

Operating Agreement

 

Exhibit A

 

List of Members, Capital, and
Percentages

(as of April 18th,
1997)

 

	
  Name, Address,

  and Taxpayer

  I.D. Number

  	
   

  	
  Cash Capital

  Contribution

  	
   

  	
  Percentages

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  David D.
  Smith

  	
   

  	
  $

  	
  116,203.48

  	
   

  	
  13.75

  	
  %

  
	
  802
  Hillstead Drive

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lutherville,
  MD 21093

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ###-##-####

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Frederick G.
  Smith

  	
   

  	
  $

  	
  251,881.42

  	
   

  	
  28.75

  	
  %

  
	
  7 Timber
  Park Court

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lutherville,
  MD 21093

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ###-##-####

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J. Duncan
  Smith

  	
   

  	
  $

  	
  251,881.43

  	
   

  	
  28.75

  	
  %

  
	
  1345 Ivy
  Hill Road

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cockeysville,
  MD 21030

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ###-##-####

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Robert E.
  Smith

  	
   

  	
  $

  	
  251,881.43

  	
   

  	
  28.75

  	
  %

  
	
  3600 Butler
  Road

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Glyndon, MD
  21071

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ###-##-####

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

April 18, 1997

 

Mr. David Amy, Chief Financial Officer

Sinclair Broadcast Group, Inc.

2000 W. 41st Street

Baltimore, MD 21211

 

Dear David,

 

Please find enclosed a check in the amount of
$407,033.84 to reimburse Sinclair Broadcast for their capital contribution,
$380,273.66, plus 8% interest, $26,760.18. Sinclair’s 40% interest is being
bought by Fred, Duncan and Rob Smith through Beaver Dam Limited Partnership.

 

Thank you for Sinclair’s initial interest in
Beaver Dam LP and we wish Sinclair the best of luck in all their future
endeavors.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  /s/
  Frederick G. Smith

  	
   

  
	
   

  	
  /s/ J.
  Duncan Smith

  	
   

  
	
   

  	
  /s/ Robert
  E. Smith

  	
   

  
	
   

  	
  Frederick G. Smith

  
	
   

  	
  J. Duncan Smith

  
	
   

  	
  Robert E. Smith

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]