Document:

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                                                                    EXHIBIT 10.6

                        SEPARATION AGREEMENT AND RELEASE

            This Separation Agreement and Release ("Agreement") is made by and
between SmartForce (the "Company"), and Thomas Francis McKeagney ("Employee")
(jointly referred to as the "Parties"). The Parties desire to enter into this
Agreement for the purposes of reaching an amicable termination of their
employment relationship and to promoting harmonious relations in the future.

            WHEREAS, Employee was employed by the Company;

            WHEREAS, the Company and Employee have entered into an Employment,
Confidential Information and Invention Assignment Agreement (the
"Confidentiality Agreement");

            WHEREAS, the Company has granted Employee options to purchase shares
of the Company's ordinary shares (the "Options") subject to the terms and
conditions of the Company's 1994 Share Option Plan and the 1996 Supplemental
Stock Plan (the "Plans") represented by stock option agreements dated October
16, 1999 (for a total of 28,000 shares), October 16, 1998 (for a total of 6,195
shares), October 16, 1998 (for a total of 5,805 shares), December 9, 1998 (for a
total of 100,000 shares), July 2, 1999 (for a total of 80,000 shares), April 17,
2000 (for a total of 70,000 shares), and April 5, 2001 (for a total of 130,000
shares) (the stock option agreements, shall be referred to as the "Stock Option
Agreements"); and

            WHEREAS, Employee shall resign from his position with the Company as
Executive Vice President, Research & Development effective April 8, 2002 (the
"Resignation Date"), and Employee shall resign from his employment with the
Company effective April 30, 2002 (the "Termination Date").

NOW THEREFORE, in consideration of the mutual promises made herein, the Company
and Employee (collectively referred to as "the Parties") hereby agree as
follows:

            1.    Consideration.

                  (a)   The Company agrees to pay Employee his base salary plus
                        draw, less applicable withholding, through the
                        Termination Date.

                  (b)   The Company shall reimburse Employee for the payments he
                        makes for COBRA coverage through March 31, 2003, or
                        until Employee has secured other employment, whichever
                        occurs first, provided Employee timely elects and pays
                        for COBRA coverage. COBRA reimbursement shall be made by
                        the Company to Employee within fifteen (15) days of
                        Employee's provision to the Company of documentation
                        substantiating his payments for COBRA coverage.

                  (c)   Following Employee's Termination Date and the Effective
                        Date of this Agreement, Employee shall make himself
                        available a minimum of 15 hours per week as an
                        independent contractor to assist with transitional
                        issues, providing consulting services to the Company
                        through June 30, 2002 (the "Consulting Term"), pursuant
                        to the written consulting agreement (the "Consulting
                        Agreement"), attached hereto as Exhibit A.

                  (d)   The Company shall pay Employee eighteen thousand, seven
                        hundred and fifty dollars per month ($18,750), less
                        applicable withholding, for nine months, for the period
                        beginning July 1, 2002 and ending March 31, 2003 (the
                        "Payment Period") for a total of one hundred sixty-eight
                        thousand, seven hundred and fifty dollars ($168,750),
                        less applicable withholding. The first payment will be
                        made on July 31, 2002 and the last will be made on March
                        31, 2003. During the Payment Period, Employee will not
                        be entitled to accrual of any employee benefits,
                        including, but not limited to, vesting in stock options
                        or vacation benefits.
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                  (e)   The Company shall modify Employee's Stock Option
                        Agreements to provide that the vesting of those shares
                        which would have otherwise vested during the period
                        beginning May 1, 2002 and ending March 31, 2003 will be
                        accelerated so that such shares are fully vested and
                        exercisable on April 30, 2002. A list of the shares to
                        be accelerated by option is attached hereto for your
                        reference as Exhibit B. Additionally, the Company shall
                        modify the Employee's Stock Option Agreements to provide
                        for a post-termination exercise period that expires on
                        May 31, 2003. All other terms of the existing Stock
                        Option Agreements and Plan shall continue to govern the
                        exercise and vesting of Employee's options to purchase
                        common stock of the Company, and if applicable, the
                        Company's right to repurchase any common stock purchased
                        pursuant to such options.

                  (f)   The Company agrees to pay Employee, on January 31, 2003,
                        an amount which represents the same percentage of his
                        annual bonus opportunity that the CEO's current direct
                        reports receive. Employee's annual bonus opportunity for
                        2002 would have been $75,000, less applicable
                        withholding, at 100%. So, by way of example, if the
                        CEO's current direct reports receive 50% of their annual
                        bonus opportunity, Employee will receive $37,500, less
                        applicable withholding. If no bonuses are paid, Employee
                        will not receive a payment. At the end of January 2003,
                        SmartForce will provide written confirmation signed by
                        an authorized officer of the Company as to the
                        percentage paid.

                  (g)   The Company agrees to pay for one trip to Ireland for
                        Employee and his family between April 30, 2002 and March
                        31, 2003. Travel must be booked through SmartForce's
                        designated travel agent in Ireland.

      2. Payment of Salary. On April 30, 2002, the Company will pay the Employee
all accrued and unused vacation time. No further vacation will accrue after the
Termination Date. Employee acknowledges and represents that the Company has paid
all salary, wages, bonuses, accrued vacation, housing allowances, relocation
costs, interest, severance, fees, stock, stock options, vesting, commissions and
any and all other benefits and compensation due to Employee once the above
mentioned payments are made.

      3. Benefits. Employee's health insurance benefits with the Company will
cease on the Termination Date, subject to Employee's right to convert his health
insurance benefits to individual coverage pursuant to COBRA. All other benefits
and incidents of employment will cease on the Termination Date.

      4. Trade Secrets and Confidential Information/Company Property. Employee
reaffirms and agrees to observe and abide by the terms of the Confidentiality
Agreement, specifically including the provisions therein regarding nondisclosure
of the Company's trade secrets and confidential and proprietary information, and
non-solicitation of Company employees. Employee's signature below constitutes
his certification under penalty of perjury that he has returned all documents
and other items provided to Employee by the Company, developed or obtained by
Employee as a result of his employment with the Company, or otherwise belonging
to the Company.

      5. Release of Claims. Employee agrees that the foregoing consideration
represents settlement in full of all outstanding obligations owed to Employee by
the Company and its officers, directors, agents and employees. Employee hereby
fully and forever releases the Company and its officers, directors, employees,
agents, investors, shareholders, administrators, affiliates, divisions,
subsidiaries, predecessor and successor corporations, and assigns, (the
"Releasees") from, and agrees not to sue concerning, or in any manner to
institute, prosecute or pursue, any claim, complaint, charge, duty, obligation
or cause of action relating to any matters of any kind, whether presently known
or unknown, suspected or unsuspected, that Employee may possess against any of
the Releasees arising from any omissions, acts or facts that have occurred up
until and including the Effective Date of this Agreement including, without
limitation,
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                  (a)   any and all claims relating to or arising out of
                        Employee's employment relationship with the Company and
                        the termination of that relationship;

                  (b)   any and all claims relating to, or arising from,
                        Employee's right to purchase, or actual purchase of
                        shares of stock of the Company, including, without
                        limitation, any claims for fraud, misrepresentation,
                        breach of fiduciary duty, breach of duty under
                        applicable state corporate law, and securities fraud
                        under any state or federal law;

                  (c)   any and all claims for wrongful discharge of employment;
                        termination in violation of public policy;
                        discrimination; harassment; retaliation; breach of
                        contract, both express and implied; breach of a covenant
                        of good faith and fair dealing, both express and
                        implied; promissory estoppel; negligent or intentional
                        infliction of emotional distress; negligent or
                        intentional misrepresentation; negligent or intentional
                        interference with contract or prospective economic
                        advantage; unfair business practices; defamation; libel;
                        slander; negligence; personal injury; assault; battery;
                        invasion of privacy; false imprisonment; conversion;
                        workers' compensation and disability benefits;

                  (d)   any and all claims for violation of any federal, state
                        or municipal statute, including, but not limited to,
                        Title VII of the Civil Rights Act of 1964; the Civil
                        Rights Act of 1991; the Americans with Disabilities Act
                        of 1990; the Fair Labor Standards Act; the Age
                        Discrimination in Employment Act of 1967; the Employee
                        Retirement Income Security Act of 1974; the Worker
                        Adjustment and Restraining Notification Act; the Family
                        and Medical Leave Act; the California Family Rights Act;
                        the California Fair Employment and Housing Act, and the
                        California Labor Code;

                  (e)   any and all claims for violation of the federal, or any
                        state, constitution;

                  (f)   any and all claims arising out of any other laws and
                        regulations relating to employment or employment
                        discrimination; and

                  (g)   any and all claims for attorneys' fees and costs.

Employee acknowledges and agrees that any breach by him of this paragraph or of
his obligations under paragraphs 7 or 10 hereof or of any provision of the
Confidentiality Agreement, shall constitute a material breach of this Agreement,
and shall entitle the Company immediately to recover the consideration provided
to Employee by this Agreement, except as provided by law. Except as provided by
law, Employee shall also be responsible to the Company for all costs, attorneys'
fees and any and all damages incurred by the Company in: (a) enforcing his
obligations under this paragraph, paragraphs 7 and 10 and the Confidentiality
Agreement, including the bringing of any action to recover the consideration,
and (b) defending against a claim brought or pursued by Employee in violation of
the terms of this Agreement.

Employee agrees that the release set forth in this section shall be and remain
in effect in all respects as a complete general release as to the matters
released. This release does not extend to any obligations incurred under this
Agreement.

      6. Acknowledgment of Waiver of Claims under ADEA. Employee acknowledges
that he is waiving and releasing any rights he may have under the Age
Discrimination in Employment Act of 1967 ("ADEA") and that this waiver and
release is knowing and voluntary. Employee and the Company agree that this
waiver and release does not apply to any rights or claims that may arise under
ADEA after the Effective Date of this Agreement. Employee acknowledges that the
consideration given for this waiver and release agreement is in addition to
anything of value to which Employee was already entitled. Employee further
acknowledges that he has been advised by this writing that (a) he should consult
with an attorney prior to executing this Agreement; (b) he has twenty-one (21)
days within which to consider this Agreement; (c) he has seven (7) days
following the execution of this Agreement by the parties to revoke the
Agreement; (d) this Agreement shall not be effective until the revocation period
has expired; and (e) nothing in this Agreement
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prevents or precludes Employee from challenging or seeking a determination in
good faith of the validity of this waiver under the ADEA, nor does it impose any
condition precedent, penalties or costs for doing so, unless specifically
authorized by federal law.

      7. Civil Code Section 1542. Employee represents that he is not aware of
any claims against any of the Releasees. Employee acknowledges that he has been
advised to consult legal counsel and is familiar with the provisions of
California Civil Code Section 1542, which provides as follows:

                  A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR
                  DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
                  EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
                  MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

Employee, being aware of said code section, agrees to expressly waive any rights
he may have thereunder, as well as under any other statute or common law
principles of similar effect.

      8. Application for Employment. Employee understands and agrees that, as a
condition of this Agreement, he shall not be entitled to any employment with the
Company, its subsidiaries, or any successor, and he hereby waives any right, or
alleged right, of employment or re-employment with the Company. Employee further
agrees that he will not apply for employment with the Company, its subsidiaries
or related companies, or any successor.

      9. No Future Lawsuits. Employee represents that he does not intend to
bring any claims on behalf of Employee or on behalf of any other person or
entity against the Company or any other person or entity referred to herein.

      10. No Cooperation. Employee agrees that he will not act in any manner
that might damage the business of the Company. The Parties acknowledge that
Employee's employment with any of the Company's competitors shall not, in and of
itself, constitute a breach of this provision. Employee further agrees that he
will not knowingly counsel or assist any attorneys or their clients in the
presentation or prosecution of any disputes, differences, grievances, claims,
charges, or complaints by any third party against any of the Releasees, unless
under a subpoena or other court order to do so. Employee agrees both to
immediately notify the Company upon receipt of any such subpoena or court order,
and to furnish, within three (3) business days of its receipt, a copy of such
subpoena or court order to the Company. If approached by anyone for counsel or
assistance in the presentation or prosecution of any disputes, differences,
grievances, claims, charges, or complaints against any of the Releasees,
Employee shall state no more than that he cannot provide counsel or assistance.

      11. Non-Disparagement. Each party agrees to refrain from any defamation,
libel or slander of the other, or tortious interference with the contracts and
relationships of the other. All inquiries by potential future employers of
Employee will be directed to the Company `s Human Resources Department. Upon
inquiry, the Company shall only state the following: Employee `s last position
and dates of employment.

      12. Confidentiality. The Parties hereto each agree to use their best
efforts to maintain in confidence the existence of this Agreement, the contents
and terms of this Agreement, and the consideration for this Agreement
(hereinafter collectively referred to as "Separation Information"). Each Party
hereto agrees to take every reasonable precaution to prevent disclosure of any
Separation Information to third parties, and each agrees that there will be no
publicity, directly or indirectly, concerning any Separation Information. The
Parties hereto agree to take every precaution to disclose Separation Information
only to those employees, officers, directors, attorneys, accountants,
governmental entities, and family members who have a reasonable need to know of
such Separation Information.
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      13. No Admission of Liability. Employee understands and acknowledges that
this Agreement constitutes a compromise and settlement of any and all potential
disputed claims. No action taken by the Company hereto, either previously or in
connection with this Agreement shall be deemed or construed to be: (a) an
admission of the truth or falsity of any potential claims; or (b) an
acknowledgment or admission by the Company of any fault or liability whatsoever
to the other party or to any third party.

      14. Arbitration. THE PARTIES AGREE THAT ANY AND ALL DISPUTES ARISING OUT
OF THE TERMS OF THIS AGREEMENT, THEIR INTERPRETATION, AND ANY OF THE MATTERS
HEREIN RELEASED, SHALL BE SUBJECT TO ARBITRATION IN SANTA CLARA COUNTY, BEFORE
THE AMERICAN ARBITRATION ASSOCIATION UNDER ITS NATIONAL RULES FOR THE RESOLUTION
OF EMPLOYMENT DISPUTES AND CALIFORNIA LAW. THE ARBITRATOR MAY GRANT INJUNCTIONS
AND OTHER RELIEF IN SUCH DISPUTES. THE DECISION OF THE ARBITRATOR SHALL BE
FINAL, CONCLUSIVE AND BINDING ON THE PARTIES TO THE ARBITRATION. THE PARTIES
AGREE THAT THE PREVAILING PARTY IN ANY ARBITRATION SHALL BE ENTITLED TO
INJUNCTIVE RELIEF IN ANY COURT OF COMPETENT JURISDICTION TO ENFORCE THE
ARBITRATION AWARD. THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHT TO HAVE ANY
DISPUTE BETWEEN THEM RESOLVED IN A COURT OF LAW BY A JUDGE OR JURY.

      15. Authority. The Company represents and warrants that the undersigned
has the authority to act on behalf of the Company and to bind the Company and
all who may claim through it to the terms and conditions of this Agreement.
Employee represents and warrants that he has the capacity to act on his own
behalf and on behalf of all who might claim through him to bind them to the
terms and conditions of this Agreement. Each Party warrants and represents that
there are no liens or claims of lien or assignments in law or equity or
otherwise of or against any of the claims or causes of action released herein.

      16. No Representations. Employee represents that he has had the
opportunity to consult with an attorney, and has carefully read and understands
the scope and effect of the provisions of this Agreement. Employee has not
relied upon any representations or statements made by the Company which are not
specifically set forth in this Agreement.

      17. Severability. In the event that any provision hereof becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement shall continue in full force and effect without said
provision.

      18. Attorneys' Fees. Except as provided in paragraph 5 hereof, in the
event that either Party brings an action to enforce or effect its rights under
this Agreement, the prevailing party shall be entitled to recover its costs and
expenses, including the costs of mediation, arbitration, litigation, court fees,
plus reasonable attorneys' fees, incurred in connection with such an action.

      19. Entire Agreement. This Agreement, and the attached exhibits,
represents the entire agreement and understanding between the Company and
Employee concerning Employee's employment with and separation from the Company
and the events leading thereto and associated therewith, and supersedes and
replaces any and all prior agreements and understandings concerning Employee's
relationship with the Company and his compensation by the Company, with the
exception of the Confidentiality Agreement, the Plan, and the Stock Option
Agreements.

      20. No Oral Modification. This Agreement may only be amended in writing
signed by Employee and the President of the Company.

      21. Governing Law. This Agreement shall be governed by the laws of the
State of California, without regard to choice of law provisions.
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      22. Effective Date. This Agreement will become effective after it has been
signed by both Parties and after seven days have passed since Employee signed
the Agreement (the "Effective Date"). Each party has seven days after that party
signs the Agreement to revoke it.

      23. Counterparts. This Agreement may be executed in counterparts and by
facsimile, and each counterpart shall have the same force and effect as an
original and shall constitute an effective, binding agreement on the part of
each of the undersigned.

      24. Voluntary Execution of Agreement. This Agreement is executed
voluntarily and without any duress or undue influence on the part or behalf of
the Parties hereto, with the full intent of releasing all claims. The Parties
acknowledge that:

            (a) They have read this Agreement;

            (b) They have been represented in the preparation, negotiation, and
execution of this Agreement by legal counsel of their own choice or that they
have voluntarily declined to seek such counsel;

            (c) They understand the terms and consequences of this Agreement and
of the releases it contains;

            (d) They are fully aware of the legal and binding effect of this
Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective
dates set forth below.
                                       SMARTFORCE

Dated:                                 By       /s/ Greg Priest
       -----------------                  -------------------------------------
                                                Greg Priest, Chairman & CEO

                                       Thomas Francis McKeagney, an individual

Dated:     5/1/2002                             /s/ F. McKeagney
       -----------------               ----------------------------------------
                                       Thomas Francis McKeagney
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Exhibit A - Consulting Agreement

                                   SMARTFORCE
                              CONSULTING AGREEMENT

This Consulting Agreement ("AGREEMENT") is entered into as of May 1, 2002 by and
between SmartForce (the "COMPANY") and Thomas Francis McKeagney ("CONSULTANT").
The Company desires to retain Consultant as an independent contractor to perform
consulting services for the Company, and Consultant is willing to perform such
services, on the terms described below. In consideration of the mutual promises
contained herein, the parties agree as follows:

      1. Services and Compensation. Consultant agrees to perform for the Company
the services described in Exhibit A (the "SERVICES"), and the Company agrees to
pay Consultant the compensation described in Exhibit A for Consultant's
performance of the Services.

      2. Confidentiality.

            A. Definition. "CONFIDENTIAL INFORMATION" means any non-public
information that relates to the actual or anticipated business or research and
development of the Company, technical data, trade secrets or know-how,
including, but not limited to, research, product plans or other information
regarding Company's products or services and markets therefor, customer lists
and customers (including, but not limited to, customers of the Company on whom
Consultant called or with whom Consultant became acquainted during the term of
this Agreement), software, developments, inventions, processes, formulas,
technology, designs, drawing, engineering, hardware configuration information,
marketing, finances or other business information. Confidential Information does
not include information that (i) is known to Consultant at the time of
disclosure to Consultant by the Company as evidenced by written records of
Consultant, (ii) has become publicly known and made generally available through
no wrongful act of Consultant or (iii) has been rightfully received by
Consultant from a third party who is authorized to make such disclosure.

            B. Nonuse and Nondisclosure. Consultant will not, during or
subsequent to the term of this Agreement, (i) use the Confidential Information
for any purpose whatsoever other than the performance of the Services on behalf
of the Company or (ii) disclose the Confidential Information to any third party.
Consultant agrees that all Confidential Information will remain the sole
property of the Company. Consultant also agrees to take all reasonable
precautions to prevent any unauthorized disclosure of such Confidential
Information. Without the Company's prior written approval, Consultant will not
directly or indirectly disclose to anyone the existence of this Agreement or the
fact that Consultant has this arrangement with the Company.

            C. Former Client Confidential Information. Consultant agrees that
Consultant will not, during the term of this Agreement, improperly use or
disclose any proprietary information or trade secrets of any former or current
employer of Consultant or other person or entity with which Consultant has an
agreement or duty to keep in confidence information acquired by Consultant, if
any. Consultant also agrees that Consultant will not bring onto the Company's
premises any unpublished document or proprietary information belonging to any
such employer, person or entity unless consented to in writing by such employer,
person or entity.

            D. Third Party Confidential Information. Consultant recognizes that
the Company has received and in the future will receive from third parties their
confidential or proprietary information subject to a duty on the Company's part
to maintain the confidentiality of such information and to use it only for
certain limited purposes. Consultant agrees that, during the term of this
Agreement and thereafter, Consultant owes the Company and such third parties a
duty to hold all such confidential or proprietary information in the strictest
confidence and not to disclose it to any person, firm or corporation or to use
it except as necessary in carrying out the Services for the Company consistent
with the Company's agreement with such third party.
<PAGE>
            E. Return of Materials. Upon the termination of this Agreement, or
upon Company's earlier request, Consultant will deliver to the Company all of
the Company's property, including but not limited to all electronically stored
information and passwords to access such property, or Confidential Information
that Consultant may have in Consultant's possession or control.

      3. Ownership.

            A. Assignment. Consultant agrees that all copyrightable material,
notes, records, drawings, designs, inventions, improvements, developments,
discoveries and trade secrets conceived, discovered, developed or reduced to
practice by Consultant, solely or in collaboration with others, during the term
of this Agreement that relate in any manner to the business of the Company that
Consultant may be directed to undertake, investigate or experiment with or that
Consultant may become associated with in work, investigation or experimentation
in the Company's line of business in performing the Services under this
Agreement (collectively, "INVENTIONS"), are the sole property of the Company.
Consultant also agrees to assign (or cause to be assigned) and hereby assigns
fully to the Company all Inventions and any copyrights, patents, mask work
rights or other intellectual property rights relating to all Inventions.

            B. Further Assurances. Consultant agrees to assist Company, or its
designee, at the Company's expense, in every proper way to secure the Company's
rights in Inventions and any copyrights, patents, mask work rights or other
intellectual property rights relating to all Inventions in any and all
countries, including the disclosure to the Company of all pertinent information
and data with respect to all Inventions, the execution of all applications,
specifications, oaths, assignments and all other instruments that the Company
may deem necessary in order to apply for and obtain such rights and in order to
assign and convey to the Company, its successors, assigns and nominees the sole
and exclusive right, title and interest in and to all Inventions, and any
copyrights, patents, mask work rights or other intellectual property rights
relating to all Inventions. Consultant also agrees that Consultant's obligation
to execute or cause to be executed any such instrument or papers shall continue
after the termination of this Agreement.

            C. Pre-Existing Materials. Subject to SECTION 3.A, Consultant agrees
that if, in the course of performing the Services, Consultant incorporates into
any Invention developed under this Agreement any pre-existing invention,
improvement, development, concept, discovery or other proprietary information
owned by Consultant or in which Consultant has an interest, (i) Consultant will
inform Company, in writing before incorporating such invention, improvement,
development, concept, discovery or other proprietary information into any
Invention, and (ii) the Company is hereby granted a nonexclusive, royalty-free,
perpetual, irrevocable, worldwide license to make, have made, modify, use and
sell such item as part of or in connection with such Invention. Consultant will
not incorporate any invention, improvement, development, concept, discovery or
other proprietary information owned by any third party into any Invention
without Company's prior written permission.

            D. Attorney-in-Fact. Consultant agrees that, if the Company is
unable because of Consultant's unavailability, dissolution, mental or physical
incapacity, or for any other reason, to secure Consultant's signature for the
purpose of applying for or pursuing any application for any United States or
foreign patents or mask work or copyright registrations covering the Inventions
assigned to the Company in SECTION 3.A, then Consultant hereby irrevocably
designates and appoints the Company and its duly authorized officers and agents
as Consultant's agent and attorney-in-fact, to act for and on Consultant's
behalf to execute and file any such applications and to do all other lawfully
permitted acts to further the prosecution and issuance of patents, copyright and
mask work registrations with the same legal force and effect as if executed by
Consultant.

      4. Conflicting Obligations.

            A. Conflicts. Consultant certifies that Consultant has no
outstanding agreement or obligation that is in conflict with any of the
provisions of this Agreement or that would preclude Consultant from complying
with the provisions of this Agreement. Consultant will not enter into any such
conflicting
<PAGE>
agreement during the term of this Agreement. Consultant's violation of this
Section 4.A will be considered a material breach under SECTION 6.A.

            B. Substantially Similar Designs. In view of Consultant's access to
the Company's trade secrets and proprietary know-how, Consultant agrees that
Consultant will not, without Company's prior written approval, design identical
or substantially similar designs as those developed under this Agreement for any
third party during the term of this Agreement and for a period of 12 months
after the termination of this Agreement. Consultant acknowledges that the
obligations in this SECTION 4 are ancillary to Consultant's nondisclosure
obligations under SECTION 2.

      5. Reports. Consultant also agrees that Consultant will, from time to time
during the term of this Agreement or any extension thereof, keep the Company
advised as to Consultant's progress in performing the Services under this
Agreement. Consultant further agrees that Consultant will, as requested by the
Company, prepare written reports with respect to such progress. The Company and
Consultant agree that the time required to prepare such written reports will be
considered time devoted to the performance of the Services.

      6. Term and Termination.

            A. Term. The term of this Agreement will begin on the date of this
Agreement and will continue until June 30, 2002. The Company may terminate this
Agreement immediately and without prior notice if Consultant refuses to or is
unable to perform the Services or is in breach of any material provision of this
Agreement.

            B. Survival. Upon such termination, all rights and duties of the
Company and Consultant toward each other shall cease except:

                  (1) The Company will pay, within 30 days after the effective
date of termination, all amounts owing to Consultant for Services completed and
accepted by the Company prior to the termination date and related expenses, if
any, submitted in accordance with the Company's policies and in accordance with
the provisions of Section 1 of this Agreement; and

                  (2) Section 2 (Confidentiality), Section 3 (Ownership),
Section 4 (Conflicting Obligations), Section 7 (Independent Contractor;
Benefits), Section 8 (Indemnification) and Section 9 (Arbitration and Equitable
Relief) will survive termination of this Agreement.

      7. Independent Contractor; Benefits.

            A. Independent Contractor. It is the express intention of the
Company and Consultant that Consultant perform the Services as an independent
contractor to the Company. Nothing in this Agreement shall in any way be
construed to constitute Consultant as an agent, employee or representative of
the Company. Without limiting the generality of the foregoing, Consultant is not
authorized to bind the Company to any liability or obligation or to represent
that Consultant has any such authority. Consultant agrees to furnish (or
reimburse the Company for) all tools and materials necessary to accomplish this
Agreement and shall incur all expenses associated with performance, except as
expressly provided in Exhibit A. Consultant acknowledges and agrees that
Consultant is obligated to report as income all compensation received by
Consultant pursuant to this Agreement. Consultant agrees to and acknowledges the
obligation to pay all self-employment and other taxes on such income.

            B. Benefits. The Company and Consultant agree that Consultant will
receive no Company-sponsored benefits from the Company. If Consultant is
reclassified by a state or federal agency or court as Company's employee,
Consultant will become a reclassified employee and will receive no benefits from
the Company, except those mandated by state or federal law, even if by the terms
of the Company's benefit plans or programs of the Company in effect at the time
of such reclassification, Consultant would otherwise be eligible for such
benefits.
<PAGE>
      8. Indemnification. Consultant agrees to indemnify and hold harmless the
Company and its directors, officers and employees from and against all taxes,
losses, damages, liabilities, costs and expenses, including attorneys' fees and
other legal expenses, arising directly or indirectly from or in connection with
(i) any negligent, reckless or intentionally wrongful act of Consultant or
Consultant's assistants, employees or agents, (ii) a determination by a court or
agency that the Consultant is not an independent contractor, (iii) any breach by
the Consultant or Consultant's assistants, employees or agents of any of the
covenants contained in this Agreement, (iv) any failure of Consultant to perform
the Services in accordance with all applicable laws, rules and regulations, or
(v) any violation or claimed violation of a third party's rights resulting in
whole or in part from the Company's use of the work product of Consultant under
this Agreement.

      9. Arbitration and Equitable Relief.

            A. Arbitration. Consultant agrees that any and all controversies,
claims or disputes with anyone (including the Company and any employee, officer,
director, shareholder or benefit plan of the Company, in its capacity as such or
otherwise) arising out of, relating to or resulting from Consultant's
performance of the Services under this Agreement or the termination of this
Agreement, including any breach of this Agreement, shall be subject to binding
arbitration under the Arbitration Rules set forth in California Code of Civil
Procedure Section 1280 through 1294.2, including Section 1283.05 (the "RULES")
and pursuant to California law. CONSULTANT AGREES TO ARBITRATE, AND THEREBY
AGREES TO WAIVE ANY RIGHT TO A TRIAL BY JURY WITH RESPECT TO, ALL DISPUTES
ARISING FROM OR RELATED TO THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO: ANY
STATUTORY CLAIMS UNDER STATE OR FEDERAL LAW, CLAIMS UNDER TITLE VII OF THE CIVIL
RIGHTS ACT OF 1964, THE AMERICANS WITH DISABILITIES ACT OF 1990, THE AGE
DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE OLDER WORKERS BENEFIT PROTECTION
ACT, THE CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT, THE CALIFORNIA LABOR CODE,
CLAIMS OF HARASSMENT, DISCRIMINATION OR WRONGFUL TERMINATION AND ANY STATUTORY
CLAIMS. Consultant understands that this Agreement to arbitrate also applies to
any disputes that the Company may have with Consultant.

            B. Procedure. Consultant agrees that any arbitration will be
administered by the American Arbitration Association ("AAA"), and that a neutral
arbitrator will be selected in a manner consistent with its National Rules for
the Resolution of Employment Disputes. Consultant agrees that the arbitrator
will have the power to decide any motions brought by any party to the
arbitration, including discovery motions, motions for summary judgment and/or
adjudication and motions to dismiss and demurrers, prior to any arbitration
hearing. Consultant agrees that the arbitrator will issue a written decision on
the merits. Consultant also agrees that the arbitrator will have the power to
award any remedies, including attorneys' fees and costs, available under
applicable law. Consultant understands that the Company will pay for any
administrative or hearing fees charged by the arbitrator or AAA, except that
Consultant shall pay the first $200.00 of any filing fees associated with any
arbitration Consultant initiates. Consultant agrees that the arbitrator will
administer and conduct any arbitration in a manner consistent with the Rules and
that, to the extent that the AAA's National Rules for the Resolution of
Employment Disputes conflict with the Rules, the Rules will take precedence.

            C. Remedy. Except as provided by the Rules, arbitration will be the
sole, exclusive and final remedy for any dispute between the Company and
Consultant. Accordingly, except as provided for by the Rules, neither the
Company nor Consultant will be permitted to pursue court action regarding claims
that are subject to arbitration. Notwithstanding the foregoing, the arbitrator
will not have the authority to disregard or refuse to enforce any lawful Company
policy, and the arbitrator shall not order or require the Company to adopt a
policy not otherwise required by law which the Company has not adopted.

            D. Availability of Injunctive Relief. In addition to the right under
the Rules to petition the court for provisional relief, Consultant agrees that
any party may also petition the court for injunctive relief where
<PAGE>
either party alleges or claims a violation of Sections 2 (Confidentiality), 3
(Ownership) or 4 (Conflicting Obligations) of this Agreement or any other
agreement regarding trade secrets, confidential information, nonsolicitation or
Labor Code Section 2870. In the event either the Company or Consultant seeks
injunctive relief, the prevailing party will be entitled to recover reasonable
costs and attorneys' fees.

            E. Administrative Relief. Consultant understands that this Agreement
does not prohibit Consultant from pursuing an administrative claim with a local,
state or federal administrative body such as the Department of Fair Employment
and Housing, the Equal Employment Opportunity Commission or the workers'
compensation board. This Agreement does, however, preclude Consultant from
pursuing court action regarding any such claim.

            F. Voluntary Nature of Agreement. Consultant acknowledges and agrees
that Consultant is executing this Agreement voluntarily and without any duress
or undue influence by the Company or anyone else. Consultant further
acknowledges and agrees that Consultant has carefully read this Agreement and
has asked any questions needed to understand the terms, consequences and binding
effect of this Agreement and fully understand it, including that Consultant is
waiving its right to a jury trial. Finally, Consultant agrees that Consultant
has been provided an opportunity to seek the advice of an attorney of its choice
before signing this Agreement.

      10. Miscellaneous.

            A. Governing Law. This Agreement shall be governed by the laws of
California without regard to California's conflicts of law rules.

            B. Assignability. Except as otherwise provided in this Agreement,
Consultant may not sell, assign or delegate any rights or obligations under this
Agreement.

            C. Entire Agreement. This Agreement constitutes the entire agreement
between the parties with respect to the subject matter of this Agreement and
supersedes all prior written and oral agreements between the parties regarding
the subject matter of this Agreement.

            D. Headings. Headings are used in this Agreement for reference only
and shall not be considered when interpreting this Agreement.

            E. Notices. Any notice or other communication required or permitted
by this Agreement to be given to a party shall be in writing and shall be deemed
given if delivered personally or by commercial messenger or courier service, or
mailed by U.S. registered or certified mail (return receipt requested), or sent
via facsimile (with receipt of confirmation of complete transmission) to the
party at the party's address or facsimile number written below or at such other
address or facsimile number as the party may have previously specified by like
notice. If by mail, delivery shall be deemed effective 3 business days after
mailing in accordance with this Section 10(E).

                 (1)    If to the Company, to:
                        SmartForce
                        Attention:  Legal Department
                        900 Chesapeake Drive
                        Redwood City, CA  94063
                        (650) 817-5900
                        (650) 817-5062

                  (2) If to Consultant, to the address for notice on the
signature page to this Agreement or, if no such address is provided, to the last
address of Consultant provided by Consultant to the Company.
<PAGE>
            F. Attorneys' Fees. In any court action at law or equity that is
brought by one of the parties to this Agreement to enforce or interpret the
provisions of this Agreement, the prevailing party will be entitled to
reasonable attorneys' fees, in addition to any other relief to which that party
may be entitled.

            G. Severability. If any provision of this Agreement is found to be
illegal or unenforceable, the other provisions shall remain effective and
enforceable to the greatest extent permitted by law.

                 (Remainder of page intentionally left blank.)
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have executed this Consulting
Agreement as of the date first written above.

CONSULTANT                               SMARTFORCE

By:                                      By:
    -------------------------------          ----------------------------------
Name:                                    Name:
      -----------------------------            --------------------------------
Title:                                   Title:
       ----------------------------             -------------------------------
Address for Notice:

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

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

-----------------------------------
<PAGE>
                                    EXHIBIT A
                            Services and Compensation

      1.    Contact. Consultant's principal Company contact:

            Name: Greg Priest

            Title: Chairman & CEO

      2.    Services. The Services shall include, but shall not be limited to,
            the following:

      CONSULTANT SHALL PROVIDE CONSULTING ASSISTANCE DURING THE PERIOD
COMMENCING MAY 1, 2002 AND TERMINATING JUNE 30, 2002. CONSULTANT SHALL BE
AVAILABLE TO PROVIDE ADVICE A MINIMUM OF 15 HOURS PER WEEK.

      3.    Compensation.

            A. The Company will pay Consultant a flat fee of $18,750, less
applicable withholdings, per month for the months of May, 2002 and June, 2002.
The Company will make two payments, one on May 31, 2002 and one on June 30,
2002. Such payments may be made electronically at the Consultant's discretion.

            B. The Company will reimburse Consultant for all reasonable expenses
incurred by Consultant in performing the Services pursuant to this Agreement, if
Consultant receives written consent from an authorized agent of the Company
prior to incurring such expenses and submits receipts for such expenses to the
Company in accordance with Company policy.

Accepted and agreed as of [_____], [_____].

CONSULTANT                               SMARTFORCE

By:                                      By:
    -------------------------------         -----------------------------------
Name:                                    Name:
      -----------------------------            --------------------------------
Title:                                   Title:
      -----------------------------             -------------------------------
<PAGE>
Exhibit B - Accelerated Options Schedule

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
                                                                                     Shares to Vest Between
                                                     Remaining Shares Which            April 30, 2002 and
                                                        Are Vested and                March 31, 2003 (which
                                                         Exercisable on            will be accelerated so that
Option Date     Shares Granted     Exercise Price        April 30, 2002             they are fully vested and
                                                                                  exercisable on April 30, 2002
---------------------------------------------------------------------------------------------------------------
<S>             <C>                <C>               <C>                          <C>
 10-16-98           28,000             6.9375                3,500(1)                          0
 10-16-98            6,195             6.9375                  2,208                          250
 10-16-98            5,805             6.9375                 292(1)                           0
  12-9-98           100,000            9.9375                 18,750                         16,667
  7-2-99            80,000             16.4375                46,662                         18,333
  4-17-00           70,000              31.00                 35,000                         16,041
  4-5-01            130,000            19.0625                32,500                         37,916
---------------------------------------------------------------------------------------------------------------
</TABLE>

(1) The option is fully vested on April 30, 2002. This figure represents those
shares which have not yet been exercised.<PAGE>

                                                                    EXHIBIT 4.29

                         [FORM OF FACE OF EXCHANGE NOTE]

                              [GLOBAL NOTES LEGEND]

                  UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR
SECURITIES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE
DEPOSITORY TO THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A
NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY ("DTC") TO THE COMPANY
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.(1)

                                LAMAR MEDIA CORP.

                    7-1/4% SENIOR SUBORDINATED NOTE DUE 2013

No.                                                           CUSIP No.  [    ]
                                                                        $[    ]

                  LAMAR MEDIA CORP., a Delaware corporation, promises to pay to
[ ], or registered assigns, the principal sum of $[ ], on January 1, 2013.

<TABLE>
<S>                                                  <C>
                  Interest Payment Dates:            July 1 and January 1, commencing July 1, 2003.
                  Record Dates:                      June 15 and December 15, commencing June 15, 2003
                                                     (whether or not a business day).
</TABLE>

                  Additional provisions of this Note are set forth on the other
side of this Note.

----------
(1)      This paragraph should only be added if the Security is issued in global
         form.

<PAGE>

                                         LAMAR MEDIA CORP.

                                         By:
                                               --------------------------------
                                               Name:
                                               Title:

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

Wachovia Bank of Delaware, National Association
    Corporate Trust Administration
    9300 Shelbyville Road, Suite 507
    Louisville, Kentucky  40222

    as Trustee, certifies that this is one of the
    7-1/4% Senior Subordinated Notes due 2013
    referred to in the Indenture

    By:
         ---------------------------------
         Authorized Signatory

                                       2
<PAGE>

                     [FORM OF REVERSE SIDE OF EXCHANGE NOTE]

                                LAMAR MEDIA CORP.

                    7-1/4% SENIOR SUBORDINATED NOTE DUE 2013

1.      INTEREST.

                  Lamar Media Corp., a Delaware corporation (the "Company"),
promises to pay interest on the principal amount of this Note semiannually on
July 1 and January 1 of each year (each, an "Interest Payment Date"), commencing
on July 1, 2003, at the rate of 7-1/4% per annum. Interest will be computed on
the basis of a 360-day year of twelve 30-day months. Interest shall accrue from
the most recent date to which interest has been paid or duly provided for, or if
no interest has been paid or duly provided for, from December 23, 2002.

                  The Company shall pay interest on overdue principal, and on
overdue premium, if any, and overdue interest, to the extent lawful, at a rate
equal to the rate of interest otherwise payable on the Notes.

2.      METHOD OF PAYMENT.

                  The Company will pay interest on this Note provided for in
Paragraph 1 above (except defaulted interest) to the person who is the
registered Holder of this Note at the close of business on the Record Date
immediately preceding the Interest Payment Date. The Holder must surrender this
Note to a Paying Agent to collect principal payments. The Company will pay
principal, premium, if any, and interest in money of the United States that at
the time of payment is legal tender for payment of public and private debts;
provided, however, that so long as this Note is a Global Note such payments will
be made in immediately available funds and the Company may pay principal,
premium, if any, and interest on a Note which is not a Global Note by check
payable in such money. The Company may mail an interest check with respect to
any Note that is not a Global Note to the Holder's registered address.

3.      PAYING AGENT AND REGISTRAR.

                  Initially, Wachovia Bank of Delaware, National Association, a
national association organized under the laws of the United States of America
(the "Trustee"), will act as Paying Agent and Registrar. The Company may change
any Paying Agent or Registrar without notice to the Holders of the Notes.
Neither the Company nor any of its Subsidiaries or Affiliates may act as Paying
Agent but may act as registrar or co-registrar.

4.      INDENTURE; RESTRICTIVE COVENANTS.

                  The Company issued this Note under an Indenture dated as of
December 23, 2002 (the "Indenture") among the Company, the Guarantors and the
Trustee. The terms of this Note include those stated in the Indenture and those
made part of the Indenture by

                                       3
<PAGE>

reference to the Trust Indenture Act of 1939 (15 U.S. Code Sections
77aaa-77bbbb) as in effect on the date of the Indenture. This Note is subject to
all such terms, and the Holder of this Note is referred to the Indenture and
said Trust Indenture Act for a statement of them. All capitalized terms in this
Note, unless otherwise defined, have the meanings assigned to them by the
Indenture.

                  The Notes are general unsecured obligations of the Company
unlimited in principal amount. The Indenture imposes certain restrictions on,
among other things, the incurrence of Indebtedness and Liens by the Company and
its Restricted Subsidiaries, mergers and sale of assets, the payment of
dividends on, or the repurchase of, Capital Stock of the Company and its
Restricted Subsidiaries, certain other Restricted Payments by the Company and
its Restricted Subsidiaries and certain transactions with Affiliates.

5.      SUBORDINATION.

                  The Indebtedness evidenced by the Notes is, to the extent and
in the manner provided in the Indenture, subordinated and subject in right of
payment to the prior payment in full in cash of all Senior Indebtedness, and
this Note is issued subject to such provisions. Each Holder of this Note, by
accepting the same, (a) agrees to and shall be bound by such provisions, (b)
authorizes and directs the Trustee, on behalf of such Holder, to take such
action as may be necessary or appropriate to effectuate the subordination as
provided in the Indenture and (c) appoints the Trustee attorney-in-fact of such
Holder for such purpose.

6.      OPTIONAL REDEMPTION.

                  The Notes will be redeemable at the option of the Company, in
whole or in part, at any time on or after January 1, 2008 at the following
redemption prices (expressed as a percentage of principal amount), together, in
each case, with accrued and unpaid interest to (but not including) the
redemption date, if redeemed during the twelve-month period beginning on
December 1, of each year listed below:

<TABLE>
<CAPTION>
                    Year                                          Percentage
                    ----                                          ----------
<S>                                                               <C>
                    2008................................            103.625%
                    2009................................            102.417%
                    2010................................            101.208%
                    2011 and thereafter.................            100.000%
</TABLE>

                  Notwithstanding the foregoing, the Company may redeem in the
aggregate up to 35% of the original principal amount of the Notes at any time
and from time to time prior to January 1, 2006 at a redemption price equal to
107.25% of the aggregate principal amount so redeemed, plus accrued interest to
but not including the redemption date, out of the Net Proceeds of one or more
Public Equity Offerings; provided that at least 65% of the aggregate principal
amount of the Notes originally issued remains outstanding immediately after the
occurrence of any such redemption and that any such redemption occurs within 120
days following the closing of any such Public Equity Offering.

                                       4
<PAGE>

7.      NOTICE OF REDEMPTION.

                  Notice of redemption will be mailed via first-class mail at
least 30 days but not more than 60 days prior to the redemption date to each
Holder of Notes to be redeemed at its registered address as it shall appear on
the register of the Notes maintained by the Registrar. On and after any
Redemption Date, interest will cease to accrue on the Notes or portions thereof
called for redemption unless the Company shall fail to redeem any such Note.

8.      OFFERS TO PURCHASE.

                  The Indenture requires that certain proceeds from Asset Sales
be used, subject to further limitations contained therein, to make an offer to
purchase certain amounts of Notes in accordance with the procedures set forth in
the Indenture. The Company is also required to make an offer to purchase Notes
upon occurrence of a Change of Control in accordance with procedures set forth
in the Indenture.

9.      DENOMINATIONS, TRANSFER, EXCHANGE.

                  The Notes are in registered form without coupons in
denominations of $1,000 and integral multiples thereof. As provided in the
Indenture and subject to certain limitations therein set forth, a Holder may
register the transfer or exchange of Notes in accordance with the Indenture. The
Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and to pay any taxes and fees required by
law or permitted by the Indenture. The Registrar need not register the transfer
of or exchange any Note selected for redemption or register the transfer of or
exchange any Note for a period of 15 days before a selection of Notes to be
redeemed or any Note after it is called for redemption in whole or in part,
except the unredeemed portion of any Note being redeemed in part.

10.     PERSONS DEEMED OWNERS.

                  The registered Holder of this Note may be treated as the owner
of it for all purposes.

11.     UNCLAIMED MONEY.

                  If money for the payment of principal, premium or interest on
any Note remains unclaimed for two years, the Trustee or Paying Agent will pay
the money back to the Company at its written request. After that, Holders
entitled to money must look to the Company for payment as general creditors
unless an "abandoned property" law designates another person.

12.     AMENDMENT, SUPPLEMENT AND WAIVER.

                  Subject to certain exceptions, the Indenture or the Notes may
be modified, amended or supplemented by the Company, the Guarantors and the
Trustee with the consent

                                       5
<PAGE>

of the Holders of at least a majority in principal amount of the Notes then
outstanding and any existing default or compliance with any provision may be
waived in a particular instance with the consent of the Holders of a majority in
principal amount of the Notes (including Additional Notes, if any) then
outstanding. Without the consent of Holders, the Company, the Guarantors and the
Trustee may amend the Indenture or the Notes or supplement the Indenture for
certain specified purposes including providing for uncertificated Notes in
addition to certificated Notes, and curing any ambiguity, defect or
inconsistency, or making any other change that does not adversely affect the
rights of any Holder.

13.     DEFAULTS AND REMEDIES.

                  If an Event of Default occurs and is continuing, the Trustee
or the Holders of at least 25% in aggregate principal amount of Notes then
outstanding may declare all the Notes to be due and payable immediately in the
manner and with the effect provided in the Indenture. Holders of Notes may not
enforce the Indenture or the Notes except as provided in the Indenture. The
Trustee may require indemnity reasonably satisfactory to it before it enforces
the Indenture or the Notes. Subject to certain limitations, Holders of a
majority in aggregate principal amount of the Notes then outstanding may direct
the Trustee in its exercise of any trust or power. The Trustee may withhold from
Holders of Notes notice of any continuing Default or Event of Default (except a
Default in payment of principal or interest) if it determines that withholding
notice is in their interest.

14.     TRUSTEE DEALINGS WITH THE COMPANY.

                  The Trustee under the Indenture, in its individual or any
other capacity, may make loans to, accept deposits from, and perform services
for the Company, any Guarantor or their Affiliates, and may otherwise deal with
the Company, any Guarantor or their Affiliates, as if it were not Trustee.

15.     NO RECOURSE AGAINST OTHERS.

                  As more fully described in the Indenture, a director, officer,
employee or stockholder, as such, of the Company or any Guarantor shall not have
any liability for any obligations of the Company or any Guarantor under the
Notes or the Indenture or for any claim based on, in respect or by reason of,
such obligations or their creation. The Holder of this Note by accepting this
Note waives and releases all such liability. The waiver and release are part of
the consideration for the issuance of this Note.

16.     DEFEASANCE AND COVENANT DEFEASANCE.

                  The Indenture contains provisions for defeasance of the entire
indebtedness on this Note and for defeasance of certain covenants in the
Indenture upon compliance by the Company with certain conditions set forth in
the Indenture.

                                       6
<PAGE>

17.     ABBREVIATIONS.

                  Customary abbreviations may be used in the name of a Holder of
a Note or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (joint tenants with right of survivorship and
not as tenants in common), CUST (= Custodian), and U/G/M/A (Uniform Gifts to
Minors Act).

18.     CUSIP NUMBERS.

                  Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Company has caused CUSIP Numbers
to be printed on the Notes and has directed the Trustee to use CUSIP numbers in
notices of redemption as a convenience to Holders of the Notes. No
representation is made as to the accuracy of such numbers either as printed on
the Notes or as contained in any notice of redemption and reliance may be placed
only on the other identification numbers placed thereon.

19.     GOVERNING LAW.

                  THE INDENTURE AND THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS
MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW. EACH OF THE PARTIES TO THE INDENTURE AGREES TO SUBMIT TO THE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THE INDENTURE OR THIS NOTE.

                  THE COMPANY WILL FURNISH TO ANY HOLDER OF A NOTE UPON WRITTEN
REQUEST AND WITHOUT CHARGE A COPY OF THE INDENTURE. REQUESTS MAY BE MADE TO:
LAMAR MEDIA CORP., 5551 CORPORATE BOULEVARD, BATON ROUGE, LOUISIANA 70808,
ATTENTION: CHIEF FINANCIAL OFFICER.

                                       7
<PAGE>

                                   ASSIGNMENT

                  I or we assign and transfer this Note to:

_______________________________________________________________________________

             (Insert assignee's social security or tax I.D. number)

_______________________________________________________________________________

_______________________________________________________________________________
             (Print or type name, address and zip code of assignee)

and irrevocably appoint:

_______________________________________________________________________________

Agent to transfer this Note on the books of the Company. The Agent may
substitute another to act for him.

Date: ____________________          Your Signature: ___________________________
                                    (Sign exactly as your name appears on the
                                    other side of this Note)

Signature Guarantee:  _________________________________________________________

                                       8
<PAGE>

                [FORM OF NOTATION ON NOTE RELATING TO GUARANTEE]

                                    GUARANTEE

                  Each Guarantor (the "Guarantor", which term includes any
successor Person under the Indenture) has unconditionally guaranteed, on a
senior subordinated basis, jointly and severally, to the extent set forth in the
Indenture and subject to the provisions of the Indenture, (a) the due and
punctual payment of the principal of, and premium, if any, and interest on the
Notes, when and as the same shall become due and payable, whether at maturity,
by acceleration or otherwise, the due and punctual payment of interest on
overdue principal of, and interest on the Notes, to the extent permitted by law
and the due and punctual performance of all other Obligations of the Company to
the Noteholders or the Trustee all in accordance with the terms set forth in the
Indenture, and (b) in case of any extension of time of payment or renewal of any
Notes or any of such other Obligations, that the same will be promptly paid in
full when due or performed in accordance with the terms of the extension or
renewal, at stated maturity, by acceleration or otherwise.

                  The obligations of each Guarantor to the Noteholders and to
the Trustee pursuant to this Guarantee and the Indenture are expressly set forth
in Article 10 of the Indenture and reference is hereby made to the Indenture for
the precise terms of this Guarantee.

                  This Guarantee shall not be valid or obligatory for any
purpose until the certificate of authentication on the Note upon which this
Guarantee is noted shall have been executed by the Trustee under the Indenture
by the manual signature of one of its authorized signatories.

                                   Guarantors:

                                   AMERICAN SIGNS, INC.
                                   COLORADO LOGOS, INC.
                                   HARDIN DEVELOPMENT CORPORATION
                                   LAMAR ADVERTISING OF COLORADO SPRINGS, INC.
                                   LAMAR ADVERTISING OF KENTUCKY, INC.
                                   LAMAR ADVERTISING OF SOUTH DAKOTA, INC.
                                   LAMAR ADVERTISING OF YOUNGSTOWN, INC.
                                   LAMAR OCI NORTH CORPORATION
                                   LAMAR OCI SOUTH CORPORATION
                                   NEBRASKA LOGOS, INC.
                                   UTAH LOGOS, INC.
                                   OHIO LOGOS, INC.
                                   KANSAS LOGOS, INC.
                                   LAMAR PENSACOLA TRANSIT, INC.
                                   LAMAR TEXAS GENERAL PARTNER, INC.

                                       9
<PAGE>

                                   MICHIGAN LOGOS, INC.
                                   MINNESOTA LOGOS, INC.
                                   NEW MEXICO LOGOS, INC.
                                   SOUTH CAROLINA LOGOS, INC.
                                   TENNESSEE LOGOS, INC.
                                   TLC PROPERTIES, INC.
                                   TLC PROPERTIES II, INC.
                                   LAMAR ADVERTISING OF MICHIGAN, INC.
                                   CANADIAN TODS LIMITED
                                   NEVADA LOGOS, INC.
                                   FLORIDA LOGOS, INC.
                                   LAMAR ELECTRICAL, INC.
                                   PARSONS DEVELOPMENT COMPANY
                                   REVOLUTION OUTDOOR ADVERTISING, INC.
                                   LAMAR FLORIDA, INC.
                                   LAMAR ADVAN, INC.
                                   LAMAR ADVERTISING OF IOWA, INC.
                                   LAMAR CENTRAL OUTDOOR, INC.
                                   LAMAR ADVANTAGE HOLDING COMPANY
                                   LAMAR OKLAHOMA HOLDING COMPANY, INC.
                                   LAMAR ADVERTISING OF OKLAHOMA, INC.
                                   LAMAR BENCHES, INC.
                                   LAMAR I-40 WEST, INC.
                                   LAMAR OHIO OUTDOOR HOLDING CORP.
                                   OUTDOOR MARKETING SYSTEMS, INC.
                                   LAMAR ADVERTISING SOUTHWEST, INC.
                                   LAMAR DOA TENNESSEE HOLDINGS, INC.
                                   LAMAR DOA TENNESSEE, INC.
                                   TRANS WEST OUTDOOR ADVERTISING, INC.
                                   LAMAR PINNACLE ACQUISITION CO.

                                   By:  ______________________________________
                                        Name:  Keith A. Istre
                                        Title: Vice President-Finance and Chief
                                               Financial Officer

                                       10
<PAGE>

                                   MISSOURI LOGOS, LLC
                                   KENTUCKY LOGOS, LLC
                                   OKLAHOMA LOGOS, L.LC.
                                   MISSISSIPPI LOGOS, L.L.C.
                                   DELAWARE LOGOS, L.L.C.
                                   NEW JERSEY LOGOS, L.L.C.
                                   GEORGIA LOGOS, L.L.C.
                                   VIRGINIA LOGOS, LLC
                                   MAINE LOGOS, L.L.C.
                                   WASHINGTON LOGOS, L.L.C.

                                   By:    Interstate Logos, L.L.C., its
                                          Managing Member

                                   By:    Lamar Media Corp., its Managing Member

                                   By:    ____________________________________
                                          Name:  Keith A. Istre
                                          Title: Vice President - Finance and
                                                 Chief Financial Officer

                                   INTERSTATE LOGOS, L.L.C.
                                   THE LAMAR COMPANY, L.L.C.

                                   By: Lamar Media Corp., its
                                   Managing Member

                                   By:  ______________________________________
                                        Name:  Keith A. Istre
                                        Title: Vice President - Finance and
                                               Chief Financial Officer

                                   LAMAR ADVERTISING OF PENN, LLC
                                   LAMAR ADVERTISING OF LOUISIANA, L.L.C.
                                   LAMAR TENNESSEE, L.L.C.
                                   LAMAR AIR, L.L.C.
                                   LC BILLBOARD L.L.C.

                                   By:    The Lamar Company, L.L.C., its
                                          Managing Member

                                   By:    Lamar Media Corp., its
                                          Managing Member

                                       11
<PAGE>

                                   By:    ____________________________________
                                          Name:  Keith A. Istre
                                          Title: Vice President - Finance and
                                                 Chief Financial Officer

                                   LAMAR TEXAS LIMITED PARTNERSHIP

                                   By:    Lamar Texas General Partner, Inc.,
                                          its General Partner

                                   By:    ____________________________________
                                          Name:  Keith A. Istre
                                          Title: Vice President - Finance and
                                                 Chief Financial Officer

                                   TLC PROPERTIES, L.L.C.

                                   By:    TLC Properties, Inc., its
                                          Managing Member

                                   By:    ____________________________________
                                          Name:  Keith A. Istre
                                          Title: Vice President - Finance and
                                                 Chief Financial Officer

                                   OUTDOOR PROMOTIONS WEST, LLC
                                   TRANSIT AMERICA LAS VEGAS, L.L.C.
                                   LAMAR TRANSIT ADVERTISING OF NEW ORLEANS, LLC
                                   TRIUMPH OUTDOOR RHODE ISLAND, LLC

                                   By:    Triumph Outdoor Holdings, LLC, its
                                          Managing Member

                                   By:    Lamar Central Outdoor, Inc., its
                                          Managing Member

                                   By:    ____________________________________
                                          Name:  Keith A. Istre
                                          Title: Vice President - Finance and
                                                 Chief Financial Officer

                                       12
<PAGE>

                                   LAMAR ADVANTAGE GP COMPANY, LLC
                                   LAMAR ADVANTAGE LP COMPANY, LLC
                                   TRIUMPH OUTDOOR HOLDINGS, LLC

                                   By:    Lamar Central Outdoor, Inc., its
                                          Managing Member

                                   By:    ____________________________________
                                          Name:  Keith A. Istre
                                          Title: Vice President - Finance and
                                                 Chief Financial Officer

                                   LAMAR ADVANTAGE OUTDOOR COMPANY, L.P.

                                   By:    Lamar Advantage GP Company, LLC, its
                                          General Partner

                                   By:    Lamar Central Outdoor, Inc., its
                                          Managing Member

                                   By:    ____________________________________
                                          Name:  Keith A. Istre
                                          Title: Vice President - Finance and
                                                 Chief Financial Officer

                                   LAMAR T.T.R., L.L.C.

                                   By:    Lamar Advertising of Youngstown, Inc.,
                                          its Managing Member

                                   By:    ____________________________________
                                          Name:  Keith A. Istre
                                          Title: Vice President - Finance and
                                                 Chief Financial Officer

                                   TEXAS LOGOS, L.P.

                                   By:    Oklahoma Logos, L.L.C., its
                                          General Partner

                                   By:    Interstate Logos, L.L.C., its
                                          Managing Member

                                       13
<PAGE>

                                   By:    Lamar Media Corp., its
                                          Managing Member

                                   By:    ____________________________________
                                          Name:  Keith A. Istre
                                          Title: Vice President - Finance and
                                                 Chief Financial Officer

                                   OUTDOOR MARKETING SYSTEMS, L.L.C.

                                   By:    Outdoor Marketing Systems, Inc., its
                                          Managing Member

                                   By:      __________________________________
                                            Name:  Keith A. Istre
                                            Title: Vice President - Finance and
                                                   Chief Financial Officer

                                       14
<PAGE>

                        CERTIFICATE TO BE DELIVERED UPON
                      EXCHANGE OR REGISTRATION OF TRANSFER

                              RESTRICTED SECURITIES

                  This certificate relates to $____________ principal amount of
Notes held in (check applicable space) [ ] book-entry or [ ] definitive
form by the undersigned.

                  The undersigned (check one box below):

         [  ]     has requested the Trustee by written order to deliver in
                  exchange for its beneficial interest in the Global Note held
                  by the Depository a Note or Notes in definitive, registered
                  form of authorized denominations and an aggregate principal
                  amount equal to its beneficial interest in such Global Note
                  (or the portion thereof indicated above);

         [  ]     has requested the Trustee by written order to exchange or
                  register the transfer of a Note or Notes.

                  In connection with any transfer of any of the Notes evidenced
by this certificate occurring prior to the expiration of the period referred to
in Rule 144(k) under the Securities Act after the later of the date of original
issuance of such Notes and the last date, if any, on which such Notes were owned
by the Company or any Affiliate of the Company, the undersigned confirms that
such Notes are being transferred in accordance with its terms:

                  CHECK ONE BOX BELOW:

         (1)     [  ]      to the Company; or

         (2)     [  ]      pursuant to an effective registration statement under
                           the Securities Act of 1933; or

         (3)     [  ]      inside the United States to a "qualified
                           institutional buyer" (as defined in Rule 144A under
                           the Securities Act of 1933) that purchases for its
                           own account or for the account of a qualified
                           institutional buyer to whom notice is given that such
                           transfer is being made in reliance on Rule 144A, in
                           each case pursuant to and in compliance with Rule
                           144A under the Securities Act of 1933; or

         (4)     [  ]      outside the United States in an offshore
                           transaction within the meaning of Regulation S under
                           the Securities Act in compliance with Rule 904 under
                           the Securities Act of 1933; or

         (5)     [  ]      pursuant to another available exemption from
                           registration such as the exemption provided by Rule
                           144 under the Securities Act of 1933.

                                       15
<PAGE>

                  Unless one of the boxes is checked, the Trustee will refuse to
register any of the Notes evidenced by this certificate in the name of any
person other than the registered holder thereof; provided, however, that if box
(4) or (5) is checked, the Trustee may require, prior to registering any such
transfer of the Notes, such legal opinions, certifications and other information
as the Company has reasonably requested to confirm that such transfer is being
made pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933, such as the exemption
provided by Rule 144 under such Act.

                                             _______________________________
                                                       Signature

                                             _______________________________
                                                  Signature Guarantee

                                               Signature must be guaranteed

              TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

                  The undersigned represents and warrants that it is purchasing
this Note for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act of
1933, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as
the undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying
upon the undersigned's foregoing representations in order to claim the exemption
from registration provided by Rule 144A.

Dated:  ________________________          ____________________________________
                                            NOTICE:     To be executed by an
                                                        executive officer

                                       16
<PAGE>

              SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

                  The following increases or decreases in this Global Note have
been made:

                  The following increases or decreases in this Global Note have
been made:

<TABLE>
<CAPTION>
                          AMOUNT OF          AMOUNT OF AMOUNT     PRINCIPAL AUTHORIZED
                         INCREASE IN         OF THIS PRINCIPAL    GLOBAL NOTE FOLLOWING     SIGNATURE OF EXCHANGE
      DATE OF         PRINCIPAL AMOUNT        AMOUNT OF THIS        SUCH DECREASE OF        OFFICER OF TRUSTEE OR
    DECREASE IN      OR THIS GLOBAL NOTE        GLOBAL NOTE           INCREASE                  CUSTODIAN
<S>                  <C>                     <C>                  <C>                       <C>

</TABLE>

                                       17

<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

                  If you want to elect to have all or any part of this Note
purchased by the Company pursuant to Section 4.14 or Section 4.20 of the
Indenture, check the appropriate box:

                  [  ]  Section 4.14                    [  ]  Section 4.20

                  If you want to have only part of the Note purchased by the
Company pursuant to Section 4.14 or Section 4.20 of the Indenture, state the
amount you elect to have purchased:

$ _______________

Date: ___________

                                    Your Signature: ___________________________
                                    (Sign exactly as your name appears on the
                                    face of this Note)

_______________________________
Signature Guarantee

                                       18

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