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EXHIBIT 4.3  

 
 

EXECUTIVE STOCK OPTION PLAN    
    

 
 

QUEBECOR WORLD INC.    
    

 
 

In force April 23, 1992
  
  
  
  
      
    

 
 

April 1992
  Re-issue April 2000    
    

 
	I.
	Purposes of the Plan

The
principal purposes of the Executive Stock Option Plan (the "Plan") of Quebecor World Inc. (formerly known as Quebecor Printing Inc.) (the "Company") are to: 

	a)
	encourage
the furthering of the Company's development and growth;

	b)
	link
executive compensation with increased value for shareholders;

	c)
	attract
and retain key executives; and

	d)
	develop
a sense of ownership in the Company.

	II.
	Administration

The
Plan is administered by the Compensation Committee of the Board of Directors of the Company (the "Committee"). The Committee has full and complete authority to interpret the Plan, to prescribe any
such rules and regulations and to take any decisions as it deems necessary or desirable for the administration of the Plan. 

	III.
	Shares Subject to the Plan

The
shares that may be issued pursuant to the exercise of options granted under the Plan are Subordinate Voting Shares of the Company (the "Shares"). The number of Shares that may be issued pursuant
to the exercise of options under the Plan is 9,000,000 Shares. The Committee may recommend to the Board of Directors to increase the aggregate number of Shares subject to the Plan. 

	IV.
	Eligibility

The
Committee designates the employees of the Company who may participate in the Plan and the grant level for which they are eligible. The grant levels are described in Appendix A to this Plan.
Generally, those employees of the Company, its subsidiaries and divisions who occupy an executive position and who can influence the long-term performance of the Company are eligible to participate. 

In
accordance with the Plan, some designated executives are eligible to receive special grants in accordance with the instructions of the Committee. 

2

 
	V.
	Grants

The
Committee shall, from time to time, designate from among the eligible executives those executives (the "Optionees") to whom a grant (the "Grant") shall be made. At such time the Committee shall
determine the value of each Grant and the date when each Grant is to become effective (the "Grant Date"). Each Grant shall comprise an option to purchase a specific number of Shares (the "Option").
The number of Shares to which such Option relates shall be determined by reference to the Market Value of the Shares and the amount granted to the Optionee as specified by the Committee. No Optionee
shall be allowed to hold Options on more than 5% of the issued share capital of the Company. 

	VI.
	Subscription Price

The
price for each Share that may be purchased through the exercise of an Option (the "Subscription Price") shall be fixed by the Committee for each Grant. 

For
purposes of the Plan, "Market Value" shall mean the arithmetic average of the closing price of the Share, on The Toronto Stock Exchange for Canadian prices, and the New York Stock Exchange
for prices in U.S. dollars, on the five (5) trading days immediately preceding the Grant Date. 

	VII.
	Option Period

Each
Option shall be exercisable during a period, as the Committee may determine, not exceeding ten (10) years from the Grant Date (the "Option Period") provided that: 

	a)
	Each
Option granted under the Plan may be exercised as follows:

	i)
	No
Share under Option can be subscribed for before the first anniversary of the Grant Date.

	ii)
	A
maximum of 25% of the total number of Shares under Option can be subscribed for from the first anniversary of the Grant Date.

	iii)
	A
maximum of 50% of the total number of Shares under Option can be subscribed for from the second anniversary of the Grant Date.

	iv)
	A
maximum of 75% of the total number of Shares under Option can be subscribed for from the third anniversary of the Grant Date.

	v)
	All
Shares under Option which have not been subscribed for on the fourth anniversary of the Grant Date may be subscribed for on such 

3

 

date
or any time thereafter, but no later than the expiry date of the Option, which corresponds to the tenth anniversary of its Grant. 

	b)
	In
the event of the death of an Optionee, each outstanding Option granted to such Optionee shall terminate on the earlier of the expiry of the Option Period or twelve (12)
months after the death of the Optionee. Within that period, the Optionee's estate may exercise all Options which are vested at the time of the Optionee's death.

	c)
	If
the Optionee's employment terminates because of retirement, the Optionee may exercise the Options as they become vested, but no later than the tenth anniversary of the Grant Date.
For purposes of the Plan, "retirement" means the Optionee's termination of employment because of retirement entitling the Optionee to receive an immediate monthly pension benefit payable from the
Company employee pension plan.

	d)
	If
the Optionee's employment terminates for any reason other than death of retirement, all Options that are not vested at the date of termination shall expire. The Optionee shall have
thirty (30) days following the date of termination of employment to exercise vested Options.

	e)
	The
Committee may, at its discretion, allow all Options to be exercised, including Options that are not vested, and extend the exercise period set under paragraphs b)
and d), provided such date is not subsequent to the expiry date of the Option.

	f)
	The
Committee may, with the consent of the Optionee, cancel a Grant where the Option remains unexercised.

	g)
	Notwithstanding
paragraphs a) and b) hereinabove, in the event of the termination without cause of an executive designated in Appendix A hereto,
section 2.1, classes A, B C, the Optionee shall have thirty (30) days to exercise any Options. 

Any
Option that is unexercised at the expiry date of the Option shall be forfeited. All Shares subject to Options that are forfeited or cancelled shall automatically become available for future Grants
of Options in accordance with the Plan. 

	VIII.
	Payment upon Exercise of an Option

An
Option can only be exercised by delivery of a duly completed and signed Subscription Form. The Subscription Form shall set forth the number of Shares with respect to which the Option is being
exercised and shall be accompanied by a certified cheque made payable to the Company in the amount of the total Subscription Price for the number of Shares purchased. 

4

 
	IX.
	Issuance of Share Certificates

Following
the exercise of an Option, a certificate for the number of Shares purchased by the Optionee shall be issued in the name of the Optionee and shall be delivered to the Optionee. 

	X.
	Non-assignability

No
Option or interest therein shall be assignable, negotiable or transferable by the Optionee otherwise than by will or in accordance with the laws governing the devolution and division of property in
the event of death. 

	XI.
	Shareholder's Rights

An
Optionee shall have no rights as a shareholder of the Company with respect to any Shares subject to an Option until he becomes the holder of record of such Shares. 

	XII.
	Effects of Alteration of Share Capital

In
the event of any change in the number of outstanding Shares of the Company, by reason of any stock dividend, stock split, recapitalization, merger, consolidation, combination or exchange of Shares
or other similar corporate restructuring, the Committee shall make an equitable adjustment in the maximum number of Shares issuable under the Plan or subject to outstanding Options and, if necessary,
to the Subscription Price of such Shares. Such adjustment shall be final and binding for purposes of the Plan. 

	XIII.
	Amendment and Termination

The
Committee may at any time and from time to time, amend, suspend or terminate the Plan in whole or in part, subject to the approval of the regulatory authorities if required. 

No
such amendment, suspension or termination shall adversely affect right under any Option granted, without the consent in writing of the Optionees to whom such Options were granted. 

	XIV.
	Effective Date of the Plan and Subsequent Modifications

The
effective date of the initial Plan is April 1992. Modifications were made subsequently. 

5

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EXECUTIVE STOCK OPTION PLAN

QUEBECOR WORLD INC.

In force April 23, 1992

April 1992 Re-issue April 2000Exhibit
4.1

 

UNLESS THIS CERTIFICATE
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY 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 IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO.
OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF.  THIS SECURITY IS
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR
SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY.

 

THIS SECURITY (OR ITS
PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND THIS SECURITY AND THE COMMON STOCK (AND ANY OTHER SECURITIES)
ISSUABLE UPON CONVERSION THEREOF MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM.  EACH PURCHASER OF THIS
SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON
THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED
BY RULE 144A THEREUNDER.

 

THE HOLDER OF THIS
SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY AND
THE COMMON STOCK (AND ANY OTHER SECURITIES) ISSUABLE UPON CONVERSION THEREOF
MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN THE
UNITED STATES TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN
A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) PURSUANT TO
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY
RULE 144

 

 

THEREUNDER (IF AVAILABLE)
OR (III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, IN EACH OF CASES (I) THROUGH (III) IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE
HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF
THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN
(A) ABOVE.  IN ANY CASE, THE HOLDER
HEREOF WILL NOT, DIRECTLY OR INDIRECTLY, ENGAGE IN ANY HEDGING TRANSACTIONS
WITH REGARD TO THE SECURITIES EXCEPT AS PERMITTED UNDER THE SECURITIES ACT.

 

THIS SECURITY, ANY SHARES
OF COMMON STOCK ISSUABLE UPON ITS CONVERSION AND ANY RELATED DOCUMENTATION MAY
BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO MODIFY THE RESTRICTIONS ON
RESALES AND OTHER TRANSFERS OF THIS SECURITY AND ANY SUCH SHARES TO REFLECT ANY
CHANGE IN APPLICABLE LAW OR REGULATION (OR THE INTERPRETATION THEREOF) OR IN
PRACTICES RELATING TO THE RESALE OR TRANSFER OF RESTRICTED SECURITIES
GENERALLY.  THE HOLDER OF THIS SECURITY
AND ANY SUCH SHARES SHALL BE DEEMED BY THE ACCEPTANCE OF THIS SECURITY AND ANY
SUCH SHARES TO HAVE AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT.

 

THE HOLDER OF THIS
SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT TO
WHICH THE COMPANY IS A PARTY DATED AS OF FEBRUARY 18, 2004 RELATING TO THE
SECURITY AND, BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO COMPLY
WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT.

 

 

No. 1

$330,000,000

 

CUSIP No. 17285TAA4

CITADEL BROADCASTING CORPORATION

1.875% Convertible Subordinated Notes Due 2011

 

Citadel Broadcasting
Corporation, a Delaware corporation, for value received, promises to pay to
Cede & Co., or registered assigns, the principal sum of THREE HUNDRED
THIRTY MILLION DOLLARS (U.S. $330,000,000) or such greater or lesser
amount as is indicated on the Schedule of Exchanges of Securities on the
reverse side of this Security  on February 15, 2011.

 

	
  Interest Payment Dates:

  	
   

  	
  February 15
  and August 15,

  commencing August 15, 2004

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

	
  Record Dates:

  	
   

  	
  February 1
  and August 1

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

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

 

	
   

  	
   

  	
  CITADEL BROADCASTING

  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:
  February 18, 2004

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Authenticated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE BANK OF NEW YORK,
  as Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Authorized Signatory

  	
   

  	
   

  
							

 

 

(Reverse of Security)

CITADEL BROADCASTING CORPORATION

 

1.875% Convertible Subordinated Debenture Due 2011

 

1.                                      INTEREST

 

CITADEL BROADCASTING
CORPORATION (the “Company”), a Delaware corporation, promises to pay interest
on the principal amount of this Security at the rate of 1.875% per annum.  The Company will pay interest semi-annually
on February 15 and August 15 each year, commencing on August 15,
2004 to holders of Securities at the close of business on the relevant record
dates specified above.  Interest on the
Securities will accrue from the most recent date to which interest has been
paid or, if no interest has been paid, from February 18, 2004.  Interest will be computed on the basis of a
360-day year of twelve 30-day months.

 

2.                                      METHOD
OF PAYMENT

 

The Company will pay
interest on the Securities (except defaulted interest) to the persons who are
registered holders of Securities at the close of business on the
February 1 or August 1 next preceding the interest payment date
(including Securities that are cancelled after the record date and on or before
the interest payment date).  Holders
must surrender Securities to a Paying Agent to collect principal and any
premium 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.

 

3.                                      PAYING
AGENT, REGISTRAR, CONVERSION AGENT

 

Initially, The Bank of
New York (the “Trustee”) will act as Paying Agent, Registrar and Conversion
Agent.  The Company may change any
Paying Agent, Registrar or Conversion Agent by giving notice to the
Trustee.  The Company may act as Paying
Agent, Registrar or Conversion Agent.

 

4.                                      INDENTURE

 

The Company issued this
Security as one of a duly authorized issue of Notes of the Company designated
as its 1.875% Convertible Subordinated Notes Due 2011 (the “Securities”) under
an Indenture dated as of February 18, 2004 (the “Indenture”), between the
Company and the Trustee.  The terms of
the Securities include those stated in the Indenture.  The Securities are subject to all such terms, and Securityholders
are referred to the Indenture for a statement of such terms.  Terms used herein that are defined in the
Indenture shall have the respective meanings assigned thereto in the Indenture.  The Securities are general unsecured
obligations of the Company limited to $300,000,000 in aggregate principal
amount ($360,000,000 if the Initial Purchasers’ Option is exercised in full).

 

 

5.                                      PROVISIONAL
REDEMPTION

 

The Securities may be
redeemed at the election of the Company, as a whole or in part from time to
time, at any time prior to February 15, 2011 (a “Provisional Redemption”),
at a redemption price equal to $1,000 per $1,000 principal amount of the Notes
redeemed (such amount, together with the Make-Whole Payment described below the
“Provisional Redemption Price”), on the date of redemption (the “Provisional
Redemption Date”) if (i) the Quoted Price of the Common Stock has exceeded
150% of the conversion price in effect at such time for at least
20 Trading Days within a period of any 30 consecutive Trading Days
ending on the Trading Day prior to the date of mailing of the notice of
Provisional Redemption (the “Provisional Redemption Notice Date”), and
(ii) a shelf registration statement covering resales of the Notes and the
Common Stock issuable upon conversion thereof is effective and available for
use and is expected to remain effective and available for use for the
30 days following the Provisional Redemption Date, unless registration is
no longer required.

 

Upon any such Provisional
Redemption, the Company shall make to Holders an additional payment (the
“Make-Whole Payment”) with respect to the Securities called for
redemption.  The Make-Whole Payment per $1,000
principal amount of Securities redeemed shall equal $165 less any interest
actually paid on the Securities from the date of issuance through the
Provisional Redemption Date.  The
Company may make the Make-Whole Payment, at its option, either in cash or
Common Stock (or a combination of cash and Common Stock) and shall specify the
type of consideration for the Make-Whole Payment in the redemption notice;
PROVIDED, HOWEVER, that the Company’s right to exercise its election to make
the Make-Whole Payment by issuing shares of Common Stock shall be conditioned
upon: (1) the registration of such shares of Common Stock under the Securities
Act, if required; (2) any qualification of such shares of Common Stock under
the applicable state securities laws, if necessary, or the availability of an
exemption from such qualification; (3) the listing of such shares of Common
Stock on a United States national securities exchange or the quotation of such
shares of Common Stock in an inter-dealer quotation system of any registered
United States national securities association; (4) the receipt by the Trustee
of an Officers’ Certificate stating: (i) that the terms of the issuance of the
shares of Common Stock are in conformity with the Indenture; (ii) that the
shares of Common Stock to be issued in payment of the Make-Whole Payment in
respect of the Securities have been duly authorized and, when issued and
delivered pursuant to the terms of the Indenture in

 

 

payment of the Make-Whole
Payment in respect of Securities, will be validly issued, fully paid,
non-assessable and free from preemptive rights; (iii) that the conditions in
clauses (i) and (ii) of this paragraph (4) and the conditions in paragraphs
(1) – (3) above have been satisfied in all material respects; and (iv) the
number of shares of Common Stock to be issued with respect to the Make-Whole
Payment for each $1,000 principal amount of Securities and the Quoted Price of
a share of Common Stock on each Trading Day during the period the average
Quoted Price is calculated; and (5) the receipt by the Trustee of an Opinion of
Counsel stating that: (i) the shares of Common Stock to be issued in payment of
the Make-Whole Payment in respect of Securities have been duly authorized, and
when issued and delivered pursuant to the terms of the Indenture in payment of
the Make-Whole Payment in respect of Securities, will be validly issued, fully
paid and non-assessable and (ii) the shares of Common Stock to be issued
upon Provisional Redemption are not subject to any restrictions on transfer
under the Securities Act.  If the
foregoing conditions are not satisfied prior to 5:00 p.m., New York City time,
on the Business Day immediately preceding the Provisional Redemption Date, the
Company shall pay the entire Make-Whole Payment in respect of the Securities
being redeemed in cash.

 

Payments made in Common
Stock in accordance with Section 3.01 of the Indenture will be valued at
97% of the average of the Quoted Prices of the Common Stock for the five
consecutive Trading Days ending on the Trading Day immediately preceding the
Provisional Redemption Date.  The
Company shall make the Make-Whole Payment on all Securities called for
Provisional Redemption, including those Securities converted into Common Stock
between the Provisional Redemption Notice Date and the Provisional Redemption
Date.  The Make-Whole Payment payable
with respect to any Securities converted into Common Stock between the
Provisional Redemption Notice Date and the Provisional Redemption Date shall
not be reduced to the extent any interest has accrued on and is unpaid as of
the date on which such Securities are converted.

 

6.                                      NOTICE
OF PROVISIONAL REDEMPTION

 

Notice of Provisional
Redemption pursuant to paragraph 5 must be mailed at least 15 days,
but not more than 60 days, before the Provisional Redemption Date to each
holder of Securities to be redeemed at his address as shown on the register
kept by the Registrar, and to beneficial owners as required by applicable
law.  Securities in denominations larger
than $1,000 may be redeemed in part, but only in integral multiples of
$1,000.  On and after the Provisional
Redemption Date, interest shall cease to accrue on Securities or any portion of
them called for Provisional Redemption; PROVIDED that funds in the requisite
amount are paid or made available for payment on that date.

 

7.                                      PURCHASE
UPON FUNDAMENTAL CHANGE

 

If a Fundamental Change
(as defined below) occurs, each holder of Securities shall have the right, at
the holder’s option, to require the Company to repurchase all of such holder’s
Securities, or any portion thereof that is an integral multiple of $1,000, on
the date (the “Fundamental Change Purchase Date”) selected by the Company that
is not less than 10 nor more than 30 days after the Final Surrender Date (as
defined below), at a price equal to 100% of the principal amount thereof, plus
accrued interest to the Fundamental Change Purchase Date (the “Fundamental
Change Purchase Price”).

 

Unless the Company shall
have theretofore called for redemption all the outstanding Securities, on or
before the 30th day after the occurrence of a Fundamental Change, the
Company is obligated to mail or cause the Trustee to mail to all holders of
record of the Securities a notice (the “Fundamental Change Company Notice”)
describing, among other things, the occurrence of such Fundamental Change and
of the

 

 

repurchase right arising
as a result thereof.  The Company must
deliver a copy of the Fundamental Change Company Notice to the Trustee and
cause a copy of such notice to be published in a newspaper of general
circulation in the Borough of Manhattan, The City of New York.  To exercise the repurchase right, a holder
of Securities must surrender, on or before the date which, subject to any contrary
requirements of applicable law, is 60 days after the date of mailing of
the Fundamental Change Company Notice (the “Final Surrender Date”) the
Securities with respect to which the right is being exercised, which, in the
case of definitive Securities, must be duly endorsed for transfer to the
Company.

 

If consideration
sufficient to pay the Fundamental Change Purchase Price of and accrued and
unpaid interest on, all Securities or portions thereof to be purchased as of
the Fundamental Change Purchase Date is deposited with the Paying Agent, then
on the Fundamental Change Purchase Date, the Holder thereof shall have no other
rights other than the right to receive the Fundamental Change Purchase Price,
together with accrued and unpaid interest up to but not including the
Fundamental Change Purchase Date, upon surrender of such Security.

 

The Company shall pay the
Fundamental Change Purchase Price, at its option, either in cash or Common
Stock (or a combination of cash and Common Stock) and shall specify the type of
consideration for the Fundamental Change Purchase Price in the Fundamental
Change Company Notice; PROVIDED, HOWEVER, that the Company’s right to exercise
its election to repurchase Securities through the issuance of shares of Common
Stock shall be conditioned upon:  (1)
the registration of such shares of Common Stock under the Securities Act, if
required; (2) any qualification of such shares of Common Stock under the
applicable state securities laws, if necessary, or the availability of an
exemption from such qualification; (3) the listing of such shares of Common
Stock on a United States national securities exchange or the quotation of such
shares of Common Stock in an inter-dealer quotation system of any registered
United States national securities association; (4) the receipt by the Trustee
of an Officers’ Certificate stating: (i) that the terms of the issuance of the
shares of Common Stock are in conformity with the Indenture; (ii) that the
shares of Common Stock to be issued in payment of the Fundamental Change
Purchase Price in respect of the Securities have been duly authorized and, when
issued and delivered pursuant to the terms of the Indenture in payment of the
Fundamental Change Purchase Price in respect of Securities, will be validly
issued, fully paid, non-assessable and free from preemptive rights; (iii) that
the conditions in clauses (i) and (ii) of this paragraph (4) and the conditions
in paragraphs (1) – (3) above have been satisfied in all material
respects; and (iv) the number of shares of Common Stock to be issued for each
$1,000 principal amount of Securities and the Quoted Price of a share of Common
Stock on each Trading Day during the period the average Quoted Price is
calculated; and (5) the receipt by the Trustee of an Opinion of Counsel stating
that: (i) the shares of Common Stock to be issued in payment of the Fundamental
Change Purchase Price in respect of Securities have been duly authorized, and
when issued and delivered pursuant to the terms of the Indenture in payment of
the Fundamental Change Purchase Price in respect of Securities, will be validly
issued, fully paid and non-assessable and (ii) the shares of Common Stock
to be

 

 

issued upon payment of
the Fundamental Change Purchase Price are not subject to any restrictions on
transfer under the Securities Act.  If
the foregoing conditions are not satisfied prior to 5:00 p.m., New York City
time, on the Business Day immediately preceding the Fundamental Change Purchase
Date, the Company shall pay the entire Fundamental Change Purchase Price in
respect of the Securities being redeemed in cash.

 

Payments made in Common
Stock in accordance with Section 4.03(g) of the Indenture will be valued
at 97% of the average of the Quoted Prices of the Common Stock for the five
consecutive Trading Days ending on the Trading Day immediately preceding the
Fundamental Change Purchase Date.

 

The term “Fundamental
Change” shall mean any of the following:

 

(i)                                     a
“person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of
the Securities Exchange Act of 1934, as amended) becoming the “beneficial
owner” (as defined in Rule 13d-3 under such Act) of Voting Shares (as
defined below) of the Company entitled to exercise more than 50% (or, in case
such person is a Principal or a Related Party, 100%), of the total voting power
of all outstanding Voting Shares of the Company (including any right to acquire
Voting Shares that are not then outstanding of which such person or group is
deemed the beneficial owner); or

 

(ii)                                  a
change in the Board of Directors in which the individuals who constituted the
Board of Directors at the beginning of the two-year period immediately
preceding such change (together with any other director whose election by the
Board of Directors or whose nomination for election by the Stockholders of the
Company was approved by a vote of at least two-thirds of the directors then in
office who either were directors at the beginning of such period or whose
election or nomination for election was previously so approved) cease for any
reason to constitute a majority of the directors then in office; or

 

(iii)                               any
consolidation of the Company with, or merger of the Company into, any other
Person, any merger of another Person into the Company, or any sale or transfer
of all or substantially all of the assets of the Company to another Person
(other than (a) a stock-for-stock merger, (b) a merger that does not
result in any reclassification, conversion, exchange or cancellation of
outstanding shares of Common Stock, (c) a merger that is effected solely
to change the jurisdiction of incorporation of the Company, (d) any
consolidation with or merger of the Company into a wholly owned Subsidiary, or
any sale or transfer by the Company of all or substantially all of its assets
to one or more of its wholly owned Subsidiaries, in any one transaction or a
series of transactions or (e) any transaction in which the Principals and/or
Related Parties have, directly or indirectly, 50% or more of the total voting
power of all shares of capital stock of the continuing or surviving corporation
or entity to which such assets are sold or transferred, entitled to vote
generally in elections of directors of the continuing or surviving corporation
immediately after the transaction; PROVIDED, in any such case (a)-(e), that the
resulting corporation or each such subsidiary assumes or guarantees the
Company’s obligations under the Securities); PROVIDED, HOWEVER, that a
Fundamental Change shall not

 

 

occur with respect to any
such transaction described in paragraph (i), (ii) or (iii) above if either (x) the
last sale price of the Common Stock for any five Trading Days during the ten
Trading Days immediately preceding the later of the public announcement by the
Company of such transaction or the occurrence of such Fundamental Change is at
least equal to 105% of the conversion price in effect on such Trading Day or
(y) the consideration in such transaction to the holders of Common Stock
consists of cash, securities that are, or immediately upon issuance will be,
listed on a national securities exchange or quoted on The Nasdaq National
Market, or a combination of cash and such securities, and the aggregate fair
market value of such consideration (which, in the case of such securities,
shall be equal to the average of the last sale prices of such securities during
the ten consecutive Trading Days commencing with the sixth Trading Day
following consummation of the transaction) is at least 105% of the conversion
price in effect on the date immediately preceding the closing date of such
transaction.

 

“Principal” means each of
Forstmann Little & Co. Equity Partnership – VI, L.P., Forstmann
Little & Co. Equity Partnership – VII, L.P., Forstmann
Little & Co. Subordinated Debt and Equity Management Buyout
Partnership – VII, L.P. and Forstmann Little & Co. Subordinated
Debt and Equity Management Buyout Partnership – VIII, L.P. and any of
their respective affiliates, and each Officer of the Company as of the date of
this Indenture.

 

 “Related Party” means (i) any controlling
stockholder, 80% or more owned subsidiary, or immediate family member (in the
case of an individual) of any Principal, or (ii) any trust, corporation,
partnership or other entity, the Persons holding an 80% or more interest of
which consist of any one or more Principals and/or such other Persons referred
to in (ii) above.

 

“Voting Shares” is
defined to mean all outstanding shares of any class or series (however
designated) of Capital Stock entitled to vote generally in the election of
members of the Board of Directors.

 

8.                                      CONVERSION

 

Subject to the terms of
the Indenture, Holders may surrender Securities for conversion into shares of
Common Stock at the conversion price then in effect.  The conversion right with respect to the Security or the portion
of the Security being redeemed will expire at the close of business on the date
that is two Trading Days immediately preceding such Provisional Redemption Date
unless the Company defaults in making payments due upon such Provisional
Redemption Date.  The number of shares
issuable upon conversion of a Security is determined by dividing the principal
amount to be converted by the conversion price in effect on the conversion
date, and rounding the result to the nearest 1/l00th of a share, with 500/1,000
of a share to be rounded up.  Upon
conversion, no payment or adjustment for accrued interest on a converted
Security (other than the payment of interest to the Holder of a Security at the
close of business on a record date pursuant to paragraph 2 hereof) or for
dividends or distributions on the Common Stock will be made.  The Company will deliver a check for the
current market

 

 

value of such fractional
shares rounded down to the nearest cent based on the current market price of
the Common Stock.

 

A Security which a Holder
has delivered for repurchase upon a Fundamental Change may no longer be
converted.  No adjustment in the
conversion price will be required unless such adjustment would require a change
of at least 1% in the conversion price then in effect; PROVIDED that any
adjustment that would otherwise be required to be made shall be earned forward
and taken into account in any subsequent adjustment.  The Company from time to time may voluntarily reduce the
conversion price for a period of at least 20 days.

 

The initial conversion
price is $25.50 per share of Common Stock, subject to adjustment in certain
events described in the Indenture.  No
adjustment in the conversion price will be required unless such adjustment
would require a change of at least 1% in the conversion price then in effect;
PROVIDED that any adjustment that would otherwise be required to be made shall
be carried forward and taken into account in any subsequent adjustment.  The Company from time to time may
voluntarily reduce the conversion price for a period of at least 20 days.

 

To convert a Security, a
holder must (1) complete and sign the conversion notice on the reverse of
the Security, (2) surrender the Security to the Conversion Agent,
(3) furnish the appropriate endorsements and transfer documents if
required by the Registrar or Conversion Agent, and (4) pay any tax or duty
which may be payable in respect of any transfer involving the issue or delivery
of Common Stock in the name of a Person other than the Holder thereof.  In the case of Global Securities, conversion
notices may be delivered and such Securities may be surrendered for conversion
by book-entry transfer to the Conversion Agent, which will initially be the
Trustee, through the facilities of DTC and in accordance with the Applicable
Procedures as in effect from time to time. 
A holder may convert a portion of a Security if the portion is $1,000 or
an integral multiple of $1,000.

 

If the Company is a party
to a consolidation or merger, or a transfer or a lease of all or substantially
all of its assets or a merger which reclassifies or changes its outstanding
Common Stock, the right to convert a Security into Common Stock may be changed
into a right to convert it into securities, cash or other assets of the Company
or another person.

 

9.                                      SUBORDINATION

 

The Securities are
subordinated in right of payment to Senior Indebtedness, which is defined in
the Indenture.  To the extent provided
in the Indenture, Senior Indebtedness must be paid before the Securities may be
paid.  The Company agrees, and each
Securityholder by accepting a Security agrees, to the subordination provisions
contained in the Indenture and authorizes the Trustee to give effect to such
provisions, and each Securityholder appoints the Trustee his attorney-in-fact
for any and all such purposes.

 

 

10.                               DENOMINATIONS,
TRANSFER, EXCHANGE

 

The Securities are in
registered form without coupons in denominations of $1,000 and integral
multiples of $1,000.  A Holder may
register the transfer of or exchange Securities 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 or other governmental charges that may be
imposed in relation thereto by law or permitted by the Indenture.

 

In the event of a deposit
or withdrawal of an interest in this Security, including an exchange, transfer,
redemption, repurchase or conversion of this Security in part only, the
Trustee, as custodian of the Depositary, shall make an adjustment on its
records to reflect such deposit or withdrawal in accordance with the Applicable
Procedures.

 

11.                               AMENDMENT,
SUPPLEMENT, WAIVER

 

Subject to certain
exceptions, the Indenture or the Securities may be amended or supplemented,
with the consent of the Company and the Holders of a majority in aggregate
principal amount of the Securities at the time outstanding, and any existing
default may be waived with the consent of the Holders of a majority in
aggregate principal amount of the Securities at the time outstanding.  Without the consent of any Securityholder,
the Indenture or the Securities may be amended, inter alia, to cure any
ambiguity, defect or inconsistency, to provide for assumption of Company
obligations to Securityholders in the case of a merger or acquisition, or to
make any change that does not materially adversely affect the rights of any
Securityholder.

 

12.                               DEFAULTS
AND REMEDIES

 

An Event of Default is
default in the payment of interest on any Security that continues for
30 days, whether or not such payment is prohibited or restricted by the
subordination provisions of the Indenture; default in payment of principal of
or premium, if any, on any Security when due and payable, whether or not such
payment is prohibited or restricted by the subordination provisions of the
Indenture; default in payment of the Fundamental Change Purchase Price to be
paid upon a purchase at the option of the Holder pursuant to paragraph 7;
default in the performance of any other of the covenants or agreements of the
Company in the Indenture that continues for 60 days after written notice
to it by the Trustee or holders of at least 25% aggregate principal amount of
Securities at the time outstanding; failure to make any payment when due,
including any applicable grace period in respect of indebtedness of the Company
if such payment exceeds $20,000,000 or acceleration of payments with respect to
indebtedness of the Company in excess of $20,000,000; and certain events of
bankruptcy or insolvency.  If an Event
of Default occurs and is continuing, the Trustee or the holders of at least 25%
in aggregate principal amount of the Securities at the time outstanding may
declare the principal of, and accrued interest on, all the Securities to be due
and payable immediately.  If the Event
of Default relates to bankruptcy, insolvency, or reorganization,

 

 

the Securities shall
become due and payable immediately upon the occurrence of such Events of
Default, subject to applicable law.

 

Securityholders may not
enforce the Indenture or the Securities except as provided in the Indenture.  The Trustee may require indemnity
satisfactory to it before it enforces the Indenture or the Securities.  Subject to certain limitations, Holders of a
majority in aggregate principal amount of the Securities may direct the Trustee
in its exercise of any trust or power. 
The Trustee may withhold from Securityholders notice of any continuing
default (except a default in payment of principal or premium, if any, or
interest) if it determines that withholding notice is in their interests.  The Company must furnish an annual
compliance certificate to the Trustee.

 

13.                               TRUSTEE
DEALINGS WITH COMPANY

 

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

 

14.                               NO
RECOURSE AGAINST OTHERS

 

A director, officer,
employee or stockholder, as such, of the Company shall have no liability for
any obligations of the Company under the Securities or the Indenture or for any
claim based on, in respect of or by reason of, such obligations or their
creation.  Each Holder by accepting a
Security waives and releases all such liability.  The waiver and release are part of the consideration for the
issue of the Securities.

 

15.                               AUTHENTICATION

 

This Security shall not
be valid until authenticated by the manual signature of the Trustee or an
authenticating agent on the face hereof.

 

16.                               ABBREVIATIONS

 

Customary abbreviations
may be used in the name of a Securityholder or an assignee, such as but not
limited to:  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).

 

17.                               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 Securities
and has directed the Trustee to use CUSIP numbers in notices of redemption as a
convenience to Securityholders.  No
representation is made as to the

 

 

accuracy of such numbers
either as printed on the Securities or as contained in any notice of redemption.

 

18.                               GOVERNING
LAW

 

THE LAWS OF THE STATE OF
NEW YORK SHALL GOVERN THIS INDENTURE AND THE SECURITIES WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW.

 

THE COMPANY WILL FURNISH
TO ANY SECURITYHOLDER UPON WRITTEN REQUEST AND WITHOUT CHARGE A COPY OF THE
INDENTURE.  IT ALSO WILL FURNISH THE
TEXT OF THIS SECURITY IN LARGER TYPE. 
REQUESTS MAY BE MADE TO:  CITADEL
BROADCASTING CORPORATION, CITY CENTER WEST, SUITE 400, 7201 WEST LAKE MEAD
BOULEVARD, LAS VEGAS, NEVADA 89128, ATTENTION: SECRETARY.

 

 

CONVERSION NOTICE

 

To:  Citadel Broadcasting Corporation

 

The undersigned owner of
this Security hereby irrevocably exercises the option to convert this Security,
or the portion hereof (which is $1,000 or an integral multiple thereof) below
designated, into shares of Citadel Broadcasting Corporation Common Stock in
accordance with the terms of the Indenture referred to in this Security, and
directs that the shares issuable and deliverable upon conversion, together with
any check in payment for fractional shares and any Securities representing any
unconverted principal amount hereof, be issued and delivered to the registered
holder hereof unless a different name has been indicated below.  If shares are to be issued in the name of a
Person other than the undersigned, the undersigned will pay all transfer taxes
payable with respect thereto.

 

To convert this Security
into Citadel Broadcasting Corporation Common Stock of the Company, check the
box:  o

 

To convert only part of
this Security, state the amount (must be $1,000 or any whole multiple
thereof): 
$                    .

 

If you want the stock
certificate made out in another Person’s name, fill in the form below:

 

	
  (Insert other
  Person’s social security or tax identification number)

  
	
   

  
	
  (Print or type
  other Person’s name, address and zip code)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
  (Sign exactly as
  your name appears

  on the face of this Security)

  
	
   

  	
   

  
	
   

  	
  Signature Guaranteed:

  	
   

  
							

 

 

PURCHASE NOTICE

 

(1)                                  Pursuant
to Article 4 of the Indenture and paragraph 7 of the Securities, the
undersigned hereby elects to have this Security, certificate number
            ,
repurchased by the Company as of the Fundamental Change Purchase Date.

 

(2)                                  The
undersigned hereby directs the Trustee or the Company to pay it or
                        
an amount in cash or, at the Company’s election, Common Stock valued as set
forth in the Indenture, equal to 100% of the principal amount to be repurchased
(less any cash payments) (as set forth below), or a combination of cash and
Common Stock, plus interest accrued to, but excluding, the Fundamental Change
Repurchase Date, as provided in the Indenture.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature(s)

  	
   

  
	
   

  	
   

  
	
  Signature(s) must be
  guaranteed by an eligible

  guarantor institution with membership in an

  approved signature guarantee program pursuant

  to Rule 17Ad-15 under the Securities Exchange

  Act of 1934.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guaranteed

  	
   

  
	
   

  	
   

  
	
  Principal amount to be
  repurchased (at least

  U.S. $1,000 or an integral multiple of $1,000

  	
   

  
	
  in excess thereof):

  	
   

  	
   

  
	
   

  	
   

  
	
  Remaining principal
  amount following such

  repurchase (not less than U.S. $1,000):

  	
   

  
			

 

 

NOTICE: The signature to
the foregoing election must correspond to the Name as written upon the face of
this Security in every particular, without alteration or any change whatsoever.

 

 

ASSIGNMENT FORM

 

To assign this Security
or, in the event of conversion, shares of Citadel Broadcasting Corporation
Common Stock, fill in the form below:

 

I or we assign and
transfer this Security, or
           shares of Citadel
Broadcasting Corporation Common Stock, to

 

	
   

  
	
   

  
	
  (Insert
  assignee’s social security or tax identification number)

  
	
   

  
	
  (Print or type
  other assignee’s name, address and zip code)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  and irrevocably appoint
                                      
  agent to transfer this Security 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 face of this Security)

  
	
   

  	
   

  
	
   

  	
  Signature Guaranteed:

  	
   

  
							

 

 

SCHEDULE OF EXCHANGES OF
SECURITIES(1)

 

The following exchanges,
redemptions, repurchases or conversions of a part of this Global Security have
been made:

 

	
  Principal Amount of this

  Global Security

  Following Such

  Decrease (or Increase)

  Date of Exchange

  	
   

  	
  Authorized
  Signatory of

  Trustee Custodian

  	
   

  	
  Amount of
  Decrease in

  Principal Amount of this

  Global Security

  	
   

  	
  Amount of
  Increase in

  Principal Amount of this

  Global Security

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(1)                                  This
schedule should be included if the Security is a Global Security.

 

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE
OR REGISTRATION

OR TRANSFER OF TRANSFER RESTRICTED SECURITIES

 

Re:                               1.875%
Convertible Subordinated Notes due 2011 (the “Securities”) of Citadel
Broadcasting Corporation.

 

This certificate relates
to
$                         
principal amount of Securities owned in (check applicable box)

 

o
book-entry or o definitive form
by
                           
(the “Transferor”).

 

The Transferor has
requested a Registrar or the Trustee to exchange or register the transfer of
such Securities.

 

In connection with such
request and in respect of each such Security, the Transferor does hereby
certify that the Transferor is familiar with transfer restrictions relating to
the Securities as provided in Section 2.05 of the Indenture dated as of
February 18, 2004 between Citadel Broadcasting Corporation and The Bank of
New York, as Trustee, (the “Indenture”), and the transfer of such Security is
being made pursuant to an effective registration statement under the Securities
Act of 1933, as amended (the “Securities Act”) (check applicable box) or the
transfer or exchange, as the case may be, of such Security does not require
registration under the Securities Act because (check applicable box):

 

o            Such Security is being
transferred pursuant to an effective registration statement under the
Securities Act.

 

o            Such Security is being
acquired for the Transferor’s own account, without transfer.

 

o            Such Security is being
transferred to the Company or a Subsidiary (as defined in the Indenture).

 

o            Such Security is being
transferred to a person the Transferor reasonably believes is a “qualified
institutional buyer” (as defined in Rule 144A or any successor provision
thereto (“Rule 144A”) under the Securities Act) that is purchasing for its
own account or for the account of a “qualified institutional buyer”, in each
case to whom notice has been given that the transfer is being made in reliance
on such Rule 144A, and in each case in reliance on Rule 144A.

 

o            Such Security is being
transferred pursuant to and in compliance with an exemption from the
registration requirements under the Securities Act in accordance with
Rule 144 (or any successor thereto) (“Rule 144”) under the Securities
Act.

 

 

o            Such Security is being
transferred pursuant to and in compliance with an exemption from the
registration requirements of the Securities Act (other than an exemption
referred to above) and as a result of which such Security will, upon such
transfer, cease to be a “restricted security” within the meaning of Rule 144
under the Securities Act.

 

The Transferor
acknowledges and agrees that, if the transferee will hold any such Securities
in the form of beneficial interests in a global Security that is a “restricted
security” within the meaning of Rule 144 under the Securities Act, then
such transfer can only be made pursuant to Rule 144A under the Securities
Act and such transferee must be a “qualified institutional buyer” (as defined
in Rule 144A).

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Insert Name of
  Transferor)

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