Document:

Exhibit 10.2

GUARANTEE
AGREEMENT

GUARANTEE AGREEMENT, dated
as of October 6, 2006, among INSIGHT MIDWEST, L.P., a Delaware limited partnership (the “Parent”),
INSIGHT MIDWEST HOLDINGS, LLC, a Delaware limited liability company (the “Borrower”),
each of the subsidiaries of the Borrower listed on Schedule I hereto (each such
subsidiary, individually, a “Subsidiary Guarantor” and, collectively,
the “Subsidiary Guarantors”; the Parent and the Subsidiary Guarantors
are sometimes referred to collectively herein as the “Guarantors”), and
THE BANK OF NEW YORK, as administrative agent under the Credit Agreement
referred to in the next paragraph acting on behalf of the Secured Parties (as
defined in such Credit Agreement).

Reference is made to the
Credit Agreement, dated as of October 6, 2006, among the Borrower, the Lenders
party thereto, J.P. Morgan Securities Inc. and Bank of America, N.A., as
Co-Syndication Agents, Morgan Stanley Senior Funding, Inc., General Electric
Capital Corporation, Wachovia Bank National, Association, and The Royal Bank of
Scotland PLC, as Co-Documentation Agents, The Bank of New York, as
Administrative Agent and J.P. Morgan Securities Inc. and Banc of America
Securities LLC, as Joint Lead Arrangers and Joint Book Runners (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”).  Capitalized terms used herein and not defined
herein, and the term “subsidiary”, shall have the meanings assigned to such
terms in the Credit Agreement.

The Lenders have agreed to
make Loans to, and the Issuing Bank has agreed to issue Letters of Credit for
the account of, the Borrower pursuant to, and upon the terms and subject to the
conditions specified in, the Credit Agreement. 
The Borrower is a wholly-owned subsidiary of the Parent, and each of the
Subsidiary Guarantors is a direct or indirect subsidiary of the Parent.  Each Guarantor acknowledges that it will
derive substantial benefit from the making of the Loans and the issuance of the
Letters of Credit.

Accordingly, the parties
hereto agree as follows:

Section 1.                                            Guarantee;
Fraudulent Transfer, etc.; Contribution

(a)                                  Each
Guarantor unconditionally guarantees, jointly with the other Guarantors and
severally, as a primary obligor and not merely as a surety, the Obligations.  Each Guarantor further agrees, to the fullest
extent permitted by applicable law, that the Obligations may be extended or
renewed, in whole or in part, without notice to or further assent from it and
that it will remain bound upon its guarantee notwithstanding any extension or renewal
of any Obligation.

(b)                                 Anything
in this Guarantee Agreement to the contrary notwithstanding, (i) the
obligations of each Subsidiary Guarantor hereunder shall be limited to a
maximum aggregate amount equal to the greatest amount that would not render
such Subsidiary Guarantor’s obligations hereunder subject to avoidance as a
fraudulent transfer, obligation or conveyance under Section 548 of Title 11 of
the United States Code or any provisions of applicable state law (collectively,
the “Fraudulent Transfer Laws”), in each case after giving effect to all
other liabilities of such Subsidiary Guarantor, contingent or otherwise, that
are relevant under the Fraudulent Transfer Laws (specifically excluding, however,
any 

 

liabilities of such Subsidiary Guarantor (A)
in respect of intercompany debt owed or owing to the Parent or Affiliates of
the Parent to the extent that such debt would be discharged in an amount equal
to the amount paid by such Subsidiary Guarantor hereunder and (B) under any
Guarantee of senior unsecured debt or Indebtedness subordinated in right of
payment to the Obligations, which Guarantee contains a limitation as to maximum
amount similar to that set forth in this clause (i), pursuant to which the
liability of such Subsidiary Guarantor hereunder is included in the liabilities
taken into account in determining such maximum amount) and after giving effect
as assets to the value (as determined under the applicable provisions of the
Fraudulent Transfer Laws) of any rights to subrogation, contribution,
reimbursement, indemnity or similar rights of such Subsidiary Guarantor
pursuant to (I) applicable law or (II) any agreement providing for an equitable
allocation among such Subsidiary Guarantor and other Affiliates of the Borrower
of obligations arising under Guarantees by such parties (including the
agreements in paragraph (c) of this Section) and (ii) the Parent expressly
waives, to the fullest extent permitted by applicable law, any and all rights
of subrogation, reimbursement, indemnity, exoneration, contribution or any
other claim that it may now or hereafter have against the Borrower, any other
Loan Party, any other guarantor or any other Person directly or contingently
liable for the Obligations, or against or with respect to the property of the
Borrower, such other Loan Party, such other guarantor or such other Person,
arising from the existence or performance hereof.

(c)                                  Each
Subsidiary Guarantor (a “Contributing Subsidiary Guarantor”) agrees (subject
to this paragraph) that, in the event a payment shall be made by any other
Subsidiary Guarantor hereunder or assets of any other Subsidiary Guarantor
shall be sold pursuant to any Loan Document to satisfy a claim of any Secured
Party and such other Subsidiary Guarantor (the “Claiming Subsidiary
Guarantor”) shall not have been fully indemnified by the Borrower as
provided in this paragraph, the Contributing Subsidiary Guarantor shall
indemnify the Claiming Subsidiary Guarantor in an amount equal to the amount of
such payment or the greater of the book value or the fair market value of such
assets, as applicable, in each case multiplied by a fraction of which the
numerator shall be the net worth of the Contributing Subsidiary Guarantor on
the date hereof and the denominator shall be the aggregate net worth of all the
Subsidiary Guarantors on the date hereof (or, in the case of any Subsidiary
Guarantor becoming a party hereto pursuant to Section 20, the date of the
Supplement hereto executed and delivered by such Subsidiary Guarantor).  Any Contributing Subsidiary Guarantor making
any payment to a Claiming Subsidiary Guarantor pursuant to this paragraph shall
be subrogated to the rights of such Claiming Subsidiary Guarantor under this
paragraph to the extent of such payment. 
Notwithstanding any provision of this paragraph to the contrary, all
rights of the Subsidiary Guarantors under this paragraph and all other rights
of indemnity, contribution or subrogation under applicable law or otherwise
shall be fully subordinated to the final payment in full of the
Obligations.  No failure on the part of
the Borrower or any Subsidiary Guarantor to make the payments required by this
paragraph (or any other payments required under applicable law or otherwise)
shall in any respect limit the obligations and liabilities of any Subsidiary
Guarantor with respect to its obligations under this paragraph, and each
Subsidiary Guarantor shall remain liable for the full amount of the obligations
of such Subsidiary Guarantor under this paragraph.

Section 2.                                            Obligations
Not Waived

To the fullest extent
permitted by applicable law, each Guarantor waives presentment to, demand of
payment from, and protest to any Loan Party of any of the Obligations, and also
waives notice of acceptance of its guarantee and notice of protest for
nonpayment.  To the fullest extent
permitted by applicable law, the obligations of each Guarantor hereunder shall
not be affected by (i) the failure of the Administrative Agent or any other
Secured Party to assert any claim or demand or to enforce or exercise any right
or remedy against the Borrower or any other Guarantor under the provisions of
the Credit Agreement or any other Loan Document, or otherwise or (ii) the
failure to perfect any security interest in, or the release of, any of the
security held by or on behalf of the Administrative Agent or any other Secured
Party.

 

Section 3.                                            Security

Each Guarantor authorizes
the Administrative Agent and each other Secured Party to (i) take and hold
security for the payment of the obligations under this Guarantee Agreement
pursuant to the Security Agreement and exchange, enforce, waive and release any
such security, (ii) apply such security and direct the order or manner of sale
thereof in accordance with the Loan Documents and (iii) release or substitute
any one or more endorsees, other Guarantors or other obligors.

Section 4.                                            Guarantee
of Payment

Each Guarantor further
agrees that its guarantee hereunder constitutes a guarantee of payment when due
and not of collection, and waives, to the fullest extent permitted by
applicable law, any right to require that any resort be had by the
Administrative Agent or any other Secured Party to any of the security held for
payment of the Obligations or to any balance of any deposit account or credit
on the books of the Administrative Agent or any other Secured Party in favor of
the Borrower or any other person.

Section 5.                                            No
Discharge or Diminishment of Guarantee

To the fullest extent
permitted by applicable law and except as otherwise provided in Section 11, the
obligations of each Guarantor hereunder shall not be subject to any reduction,
limitation, impairment or termination for any reason (other than the final
payment in full of the Obligations), including any claim of waiver, release,
surrender, alteration or compromise of any of the Obligations, and shall not be
subject to any defense or setoff, counterclaim, recoupment or termination
whatsoever by reason of the invalidity, illegality or unenforceability of the
Obligations or otherwise.  Without
limiting the generality of the foregoing, the obligations of each Guarantor
hereunder shall not be discharged or impaired or otherwise affected by the
failure of the Administrative Agent or any other Secured Party to assert any
claim or demand or to enforce any remedy under the Credit Agreement, any other
Loan Document or any other agreement, by any waiver or modification of any
provision of any thereof, by any default, failure or delay, willful or
otherwise, in the performance of the Obligations, or by any other act or
omission that may or might in any manner or to any extent vary the risk of any
Guarantor or that would otherwise operate as a discharge of any Guarantor as a
matter of law or equity (other than the final payment in full of all the Obligations).

Section 6.                                            Defenses
of Borrower Waived

To the fullest extent
permitted by applicable law, each of the Guarantors waives any defense based on
or arising out of any defense of the Borrower or any other Loan Party or the
unenforceability of the Obligations or any part thereof from any cause, or the
cessation from any cause of the liability of the Borrower or any other Loan
Party, other than the final payment in full of the Obligations.  The Administrative Agent and the other
Secured Parties may, at their election, foreclose on any security held by one
or more of them by one or more judicial or nonjudicial sales, accept an
assignment of any such security in lieu of foreclosure, compromise or adjust
any part of the Obligations, make any other accommodation with the Borrower or
any Guarantor or exercise any other right or remedy available to them against
the Borrower or any Guarantor, without affecting or impairing in any way the
liability of any Guarantor hereunder except to the extent the Obligations have
been fully and finally paid in full.  Pursuant
to applicable law, each Guarantor waives, to the fullest extent permitted by
applicable law, any defense arising out of any such election even though such
election operates, pursuant to applicable law, to impair or to extinguish any
right of reimbursement or subrogation or other right or remedy of such Guarantor
against the Borrower or any other Guarantor, as applicable, or any security.

 

Section 7.                                            Agreement
to Pay

In furtherance of the
foregoing and not in limitation of any other right that the Administrative
Agent or any other Secured Party has at law or in equity against any Guarantor
by virtue hereof, upon the failure of the Borrower or any other Loan Party to
pay any Obligation when and as the same shall become due, whether at maturity,
by acceleration, after notice of prepayment or otherwise, each Guarantor hereby
promises to and will forthwith pay, or cause to be paid, to the Administrative
Agent or such other Secured Party as designated thereby in cash the amount of
such unpaid Obligations.  Upon payment by
any Guarantor of any sums to the Administrative Agent or any Secured Party as
provided above, all rights of such Guarantor against the applicable Loan Party
arising as a result thereof by way of right of subrogation, contribution,
reimbursement, indemnity or otherwise as a result of such payment shall in all
respects be subordinate and junior in right of payment to the prior final
payment in full of the Obligations.  If
any amount shall erroneously be paid to any Guarantor or on account of such
subrogation, contribution, reimbursement, indemnity or similar right in
violation of this Agreement, such amount shall be held in trust for the benefit
of the Secured Parties and shall forthwith be paid to the Administrative Agent
to be credited against the payment of the Obligations, whether matured or
unmatured, in accordance with the terms of the Loan Documents.

Section 8.                                            Information

Each Guarantor assumes all
responsibility for being and keeping itself informed of each Loan Party’s financial
condition and assets, and of all other circumstances bearing upon the risk of
nonpayment of the Obligations and the nature, scope and extent of the risks
that such Guarantor assumes and incurs hereunder, and agrees that none of the
Administrative Agent or the other Secured Parties will have any duty to advise
any of the Guarantors of information known to it or any of them regarding such
circumstances or risks.

Section 9.                                            Representations
and Warranties

(a)                                  Each
of the Subsidiary Guarantors represents and warrants as to itself that all representations
and warranties relating to it contained in the Credit Agreement are true and
correct in all material respects (except (i) to the extent that such
representations and warranties relate to an earlier date, in which case such
representations and warranties shall be true and correct in all material
respects as of such earlier date and (ii) that any representation and warranty
that is qualified as to “materiality” or “Material Adverse Effect” shall be
true and correct in all respects).

(b)                                 The
Parent represents and warrants as follows:

(i)                                     The
Parent is duly organized, validly existing and in good standing under the laws
of the jurisdiction of its organization, has all requisite corporate or other
organizational power and authority to carry on its business as now conducted
and, except where the failure to do so, individually or in the aggregate, would
not reasonably be expected to result in a Material Adverse Effect, is qualified
to do business in, and is in good standing in, every jurisdiction where such
qualification is required by applicable law.

(ii)                                  The
Transactions to be entered into by the Parent are within the corporate, partnership
or other analogous powers of the Parent to the extent it is a party thereto and
have been duly authorized by all necessary corporate, partnership or other
analogous and, if required, equity holder action.  Each Loan Document has been duly executed and
delivered by the Parent to the extent it is a party thereto and constitutes a
legal, valid and binding obligation thereof, enforceable against the Parent in
accordance with its terms, subject to applicable bankruptcy, insolvency, 

 

reorganization, moratorium or other laws
affecting creditors’ rights generally and by general equitable principles
(whether enforcement is sought by proceedings in equity or at law) and the implied
covenants of good faith and fair dealing.

(iii)                               The
Transactions to be entered into by Parent (A) do not require any consent or
approval of, registration or filing with, or any other action by, any
Governmental Authority, except (a) such as have been or prior to or
concurrently with the consummation of the Transactions will be obtained or made
and are or prior to or concurrently with the consummation of the Transactions
will be in full force and effect (except such consents, approvals,
registrations or filings which will be required at the time, if any, of the
exercise of remedies under the Loan Documents by the Administrative Agent and
the Lenders), (b) notices, if any, required to be filed with the FCC or any
applicable PUC after the consummation of the Transactions and (c) consents, approvals,
registrations, filings or actions which the failure to obtain or make would not
reasonably be expected to result in a Material Adverse Effect, (B) will not
violate any applicable law or regulation or the charter, by-laws or other
organizational documents of the Parent or any order of any Governmental
Authority (subject to compliance with any applicable law or regulation which,
upon the exercise of remedies hereunder by the Administrative Agent and the
Lenders, requires filing with or approval of a Governmental Authority), except
in the case of any such applicable law or regulation, for such violations that
would not reasonably be expected to result in a Material Adverse Effect, (C)
will not violate or result in a default under any material indenture, agreement
or other instrument binding upon the Parent or its assets, or give rise to a
right thereunder to require any payment to be made by the Parent, or result in
a default under either the 93⁄4% Senior Note Indenture or the 101⁄2% Senior Note
Indenture, except for such violations and defaults that would not reasonably be
expected to result in a Material Adverse Effect and (iv) will not result in the
creation or imposition of any Lien on any asset of the Parent (other than Liens
permitted by Section 7.2 of the Credit Agreement).

(iv)                              The
Parent has good title to, or valid leasehold interests in, all its real and
tangible personal property, except as would not reasonably be expected to have
a Material Adverse Effect.

(v)                                 The
Parent owns, or is entitled to use, all United States trademarks, trade names,
copyrights, patents and trade secrets material to its business, and the use
thereof by the Parent does not infringe upon the rights of any other Person,
except for any such failure to own or be entitled to use or infringements that,
individually or in the aggregate, would not reasonably be expected to result in
a Material Adverse Effect.

(vi)                              There
are no actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Parent, threatened
against or affecting the Parent (A) that would reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect (other
than the Disclosed Matters) or (B) that relate to the execution, delivery,
validity or enforceability of any Loan Document or the performance of any of
the Transactions by any of the parties thereto.

(vii)                           Except
for the Disclosed Matters and except with respect to any other matters that,
individually or in the aggregate, would not reasonably be expected to result in
a Material Adverse Effect, the Parent (A) has not failed to comply with any
Environmental Law or to obtain, maintain or comply with any permit, license or
other approval required under any Environmental Law, (B) has not become subject
to any Environmental Liability, (C) has not received written notice of any
claim with respect to any Environmental Liability or (D) does not know of any
basis for any Environmental Liability

 

(viii)                        The
Parent is in compliance with all laws, regulations (including the
Communications Act and State Law) and orders of any Governmental Authority
(including the FCC and State PUCs) applicable to it or its property and all
indentures, agreements and other instruments binding upon it or its property,
except in each case where the failure to do so, individually or in the
aggregate, would not reasonably be expected to result in a Material Adverse
Effect.  No Default has occurred and is
continuing.

(ix)                                The
Parent is not an “investment company” as defined in, or subject to regulation
under, the Investment Company Act of 1940.

(x)                                   The
Parent has timely filed or caused to be filed all Tax returns and reports required
to have been filed and has paid or caused to be paid all Taxes required to have
been paid by it, except (A) Taxes that are being contested in good faith by
appropriate proceedings and for which the Parent has set aside on its books
adequate reserves to the extent required by GAAP or (B) to the extent that the
failure to do so would not reasonably be expected to result in a Material Adverse
Effect.

(xi)                                No
ERISA Event has occurred or is reasonably expected to occur that, when taken
together with all other such ERISA Events for which liability is reasonably
expected to occur, would reasonably be expected to result in a Material Adverse
Effect.  The present value of all
accumulated benefit obligations under each Plan (based on the assumptions used
for purposes of Statement of Financial Accounting Standards No. 87) did not, as
of the date of the most recent financial statements reflecting such amounts,
exceed by more than $5,000,000 the fair market value of the assets of such
Plan, and the present value of all accumulated benefit obligations of all underfunded
Plans (based on the assumptions used for purposes of Statement of Financial
Accounting Standards No. 87) did not, as of the date of the most recent
financial statements reflecting such amounts, exceed by more than $1,000,000
the fair market value of the assets of all such underfunded Plans.

(xii)                             As
of the Closing Date, the Parent has disclosed to the Credit Parties all agreements,
instruments and corporate or other restrictions to which it is subject, and all
other matters known to it, that, individually or in the aggregate, would
reasonably be expected to result in a Material Adverse Effect.  None of the reports, financial statements,
certificates or other information (other than the projections, budgets or other
estimates, or information of a general economic or industry nature concerning
any Holding Company, Parent, the Borrower, or any Subsidiary) furnished by or
on behalf of the Parent to any Credit Party in connection with the negotiation
of the Loan Documents or delivered thereunder (as modified or supplemented by
other information so furnished) contains any material misstatement of fact or
omits to state any material fact necessary to make the statements therein, in
the light of the circumstances under which they were made, not materially
misleading, provided that, with respect to projected financial
information, the Parent represents only that such information was prepared in
good faith based upon assumptions believed to be reasonable at the time they
were made, it being understood that projections by their nature are uncertain
and no assurance is being given that the results reflected in such projected
financial information will be achieved.

(xiii)                          Except
for the Disclosed Matters and except as would not be reasonably likely to
result in a Material Adverse Effect, (A) there are no strikes, lockouts or
slowdowns against the Parent pending or, to the knowledge of the Parent, threatened,
(B) the hours worked by and payments made to employees of the Parent have not
been in violation of the Fair Labor Standards Act or any other applicable
Federal, state, local or foreign law dealing with such matters, except where
any such violations, individually and in the aggregate, would not be reasonably
likely to 

 

result in a Material Adverse Effect, (C) all material payments due from
the Parent, or for which any claim may be made against the Parent, on account
of wages and employee health and welfare insurance and other benefits, have
been paid or accrued as a liability on the books of the Parent and (D) the
consummation of the Transactions will not give rise to any right of termination
or right of renegotiation on the part of any union under any collective
bargaining agreement to which the Parent is bound.

(xiv)                         Immediately
after the consummation of each Transaction on the Closing Date (assuming the
Redemption has occurred on the Closing Date), (A) the fair value of the assets
of the Parent, taken as a whole, at a fair valuation, will exceed its debts and
liabilities, subordinated, contingent or otherwise, (B) the present fair
salable value of the property of the Parent taken as a whole, will be greater
than the amount that will be required to pay the probable liability of its
debts and other liabilities, subordinated, contingent or otherwise, as such
debts and other liabilities become absolute and matured, (C) the Parent will be
able to pay its debts and liabilities, subordinated, contingent or otherwise,
as such debts and liabilities become absolute and matured and (D) the Parent
will not have unreasonably small capital with which to conduct the business in
which it is engaged as such business is now conducted and is proposed to be conducted
following such date.

(xv)                            The
Parent is not engaged principally, or as one of its important activities, in
the business of extending credit for the purpose of buying or carrying Margin
Stock.

Section 10.                                      Covenants
of the Parent

The Parent (a) owns
directly, beneficially and of record, 100% of the issued and outstanding equity
securities of the Borrower, provided, however, that the Parent may
transfer such securities in a transaction permitted under the Credit Agreement,
(b) will not create, incur, assume or permit to exist any consensual Lien
on such equity securities other than Liens created under the Loan Documents or
permitted by Section 7.2(h) of the Credit Agreement and (c) will not amend,
modify or waive any of its rights under the Partnership Agreement, other than
amendments, modifications or waivers that would not reasonably be expected to
adversely affect the Credit Parties in any material respect; provided,
however, that the provisions of this Section 10(c) shall not apply to any
amendment, modification or waiver of any provision of the Partnership Agreement
in connection with or in contemplation of the Exit Event permitted by Section 7.14
of the Credit Agreement.  The Parent
shall deliver or cause to be delivered to the Administrative Agent for further
delivery to each Lender a copy of an amendment, modification or waiver referred
to in clause (c) above promptly after the execution and delivery thereof.

Section 11.                                      Termination

The guarantees made
hereunder (a) shall terminate, all without delivery of any instrument or performance
of any act by any party upon the earliest to occur of (i) with respect to each
Guarantor, when all the Obligations have been finally paid in full and the
Issuing Bank and the Lenders have no further commitment to lend or otherwise
extend credit under the Credit Agreement, (ii) with respect to any Guarantor,
when all the Equity Interests of such Guarantor shall be sold, transferred or
otherwise disposed of (to a Person other than the Borrower or another
Guarantor) in a transaction permitted by the Credit Agreement and (iii) with
respect to a Subsidiary Guarantor, when such Subsidiary Guarantor shall be designated
an “Immaterial Subsidiary” in accordance with the Credit Agreement and
(b)shall, in the case of clause (i) continue to be effective or be reinstated,
as applicable, if at any time payment, or any part thereof, of any Obligation
is rescinded or must otherwise be restored by any Secured Party or any
Guarantor upon the bankruptcy or reorganization of any Loan Party or otherwise.  At the request and sole expense of the Borrower
or any Guarantor, following any termination pursuant to this Section 11 the Administrative
Agent 

 

shall execute and deliver to
the Borrower or such Guarantor all releases or other documents reasonably necessary
or desirable to evidence such termination.

Section 12.                                      Binding
Effect; Several Agreement; Assignments

Whenever in this Guarantee
Agreement any of the parties hereto is referred to, such reference shall be
deemed to include the successors and assigns of such party; and all covenants,
promises and agreements by or on behalf of any Guarantor that are contained in
this Guarantee Agreement shall bind and inure to the benefit of each party
hereto and its successors and assigns. 
This Guarantee Agreement shall become effective as to any Guarantor when
a counterpart hereof executed on behalf of such Guarantor shall have been
delivered to the Administrative Agent and a counterpart hereof shall have been
executed on behalf of the Administrative Agent, and thereafter shall be binding
upon such Guarantor and the Administrative Agent and their respective
successors and assigns, and shall inure to the benefit of such Guarantor, the
Administrative Agent and the other Secured Parties, and their respective
successors and assigns, except that no Guarantor shall have the right to assign
its rights or obligations hereunder or any interest herein (and any such
attempted assignment shall be void), except as expressly contemplated by this
Guarantee Agreement or the other Loan Documents.  If any of the equity interests in any Subsidiary
Guarantor is sold, transferred or otherwise disposed of pursuant to a
transaction permitted by the Loan Documents and, immediately after giving
effect thereto, such Subsidiary Guarantor shall no longer be a Subsidiary, then
the obligations of such Subsidiary Guarantor under this Guarantee Agreement
shall be automatically released.  This
Guarantee Agreement shall be construed as a separate agreement with respect to
each Guarantor and may be amended, modified, supplemented, waived or released
with respect to any Guarantor without the approval of any other Guarantor and
without affecting the obligations of any other Guarantor hereunder.

Section 13.                                      Waivers;
Amendment

(a)                                  No
failure or delay of the Administrative Agent in exercising any power or right
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power.  The rights and remedies of the Administrative
Agent hereunder and of the other Secured Parties under the other Loan Documents
are cumulative and are not exclusive of any rights or remedies that they would
otherwise have.  No waiver of any
provision of this Guarantee Agreement or consent to any departure by any
Guarantor therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which
given.  No notice or demand on any
Guarantor in any case shall entitle such Guarantor to any other or further
notice or demand in similar or other circumstances.

(b)                                 Neither
this Guarantee Agreement nor any provision hereof may be waived, amended or
modified except pursuant to a written agreement entered into by, between or
among the Administrative Agent and the Guarantor or Guarantors with respect to
which such waiver, amendment or modification is to apply, subject to any
consent required in accordance with Section 10.2 of the Credit Agreement.

Section 14.                                      GOVERNING
LAW; WAIVER OF JURY TRIAL

THIS GUARANTEE AGREEMENT AND
THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS GUARANTEE AGREEMENT SHALL
BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF
THE STATE OF NEW YORK.

 

EACH PARTY HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS GUARANTEE AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.

Section 15.                                      Notices

All communications and
notices hereunder shall be in writing and given as provided in Section 10.1 of
the Credit Agreement.  All communications
and notices hereunder to a Guarantor shall be given to it at its address set
forth on Schedule I hereto, with a copy to the Borrower.

Section 16.                                      Survival
of Agreement; Severability

(a)                                  All
covenants, agreements, representations and warranties made by the Guarantors
herein and in the certificates or other instruments prepared or delivered in
connection with or pursuant to this Guarantee Agreement or any other Loan
Document shall be considered to have been relied upon by the Administrative Agent
and the other Secured Parties and shall survive the execution and delivery of
any Loan Document, and the making of any Loans and the issuance of any Letter
of Credit, regardless of any investigation made by the Secured Parties or on
their behalf, and shall continue in full force and effect until this Guarantee
Agreement shall terminate.

(b)                                 In
the event any one or more of the provisions contained in this Guarantee
Agreement or in any other Loan Document should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein and therein shall not in any way be
affected or impaired thereby (it being understood that the invalidity of a
particular provision in a particular jurisdiction shall not in and of itself
affect the validity of such provision in any other jurisdiction).

Section 17.                                      Counterparts

This Guarantee Agreement may
be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which,
when taken together, shall constitute a single contract (subject to Section
12), and shall become effective as provided in Section 12.  Delivery of an executed counterpart of this
Guarantee Agreement by facsimile transmission or electronic photocopy (i.e., “pdf”)
shall be as effective as delivery of a manually executed counterpart of this
Guarantee Agreement.

Section 18.                                      Rules
of Interpretation

The rules of interpretation
specified in Sections 1.2, 1.3 and 1.4 of the Credit Agreement shall be applicable
to this Guarantee Agreement.

Section 19.                                      Submission
to Jurisdiction; Consent to Service of Process

(a)                                  Each
party to this Guarantee Agreement hereby irrevocably and unconditionally
submits, for itself and its property, in any legal action or proceeding
relating to this Agreement and the other Loan Documents to which it is a party,
or for recognition and enforcement of any judgment, in respect thereof, to the
non-exclusive general jurisdiction of the courts of the State of New York, the
courts of the United States for the Southern District of New York, and
appellate courts from any thereof.

 

(b)                                 Each
party to this Guarantee Agreement consents that any such action or proceeding
may be brought in such courts and waives any objection that it may now or
hereafter have to the venue of any such action or proceeding in any such court
or that such action or proceeding was brought in an inconvenient court and
agrees not to plead or claim the same.

(c)                                  Each
party to this Guarantee Agreement agrees to service of process in the manner
provided for in Section 10.10(c) of the Credit Agreement.  Nothing in this Guarantee Agreement will
affect the right of any party to this Guarantee Agreement to serve process in
any other manner permitted by law.

(d)                                 Each
party to this Guarantee Agreement agrees that nothing herein shall affect the
right to effect service of process in any other manner permitted by law or
shall limit the right to sue in any other jurisdiction.

(e)                                  Each
party to this Guarantee Agreement waives, to the maximum extent not prohibited
by law, any right it may have to claim or recover in any legal action or
proceeding referred to in this Section any special, exemplary, punitive or
consequential damages.

Section 20.                                      Additional
Guarantors

Upon execution and delivery
after the date hereof by the Administrative Agent and a Subsidiary or Holding
Company (as defined in the Credit Agreement) of an instrument in substantially
the form of Annex I (a “Supplement”), such Subsidiary or Holding Company
shall become a Guarantor hereunder with the same force and effect as if
originally named as a Guarantor herein. 
The execution and delivery of any such Supplement shall not require the
consent of any other Guarantor hereunder. 
The rights and obligations of each Guarantor hereunder shall remain in
full force and effect notwithstanding the addition of any new Guarantor as a
party to this Guarantee Agreement.

Section 21.                                      Right
of Setoff

If an Event of Default under
Section 8(a) or (f) of the Credit Agreement shall have occurred and be
continuing, each Secured Party is hereby authorized at any time and from time
to time, to the fullest extent permitted by applicable law, to setoff and apply
any and all deposits (general or special, time or demand, provisional or final)
at any time held and other obligations at any time owing by it to or for the
credit or the account of any Guarantor against any of and all the obligations
of such Guarantor now or hereafter existing under this Guarantee Agreement held
by it, irrespective of whether or not it shall have made any demand under this
Guarantee Agreement and although such obligations may be unmatured.  Each Secured Party agrees to notify each
Guarantor and the Administrative Agent promptly after any such setoff and
application; provided that the failure to give such notice shall not affect the
validity of such setoff and application. 
The rights of each Secured Party under this Section are in addition to
other rights and remedies (including other rights of setoff) that it may have.

Section 22.                                      Headings

Section headings used herein
are for convenience of reference only, are not part of this Guarantee Agreement
and shall not affect the construction of, or be taken into consideration in
interpreting, this Guarantee Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

IN WITNESS WHEREOF, the
parties hereto have duly executed this Guarantee Agreement as of the day and
year first above written.

 

	
  

  	
  INSIGHT MIDWEST, L.P.

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P.,

  
	
   

  	
   

  	
  its sole general partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc.,

  
	
   

  	
   

  	
  its sole general partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COAXIAL COMMUNICATIONS OF CENTRAL

  OHIO, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
						

 

 

 

 

	
  

  	
  INSIGHT COMMUNICATIONS OF CENTRAL 

  OHIO, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P., its 

  managing member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc.,

  
	
   

  	
   

  	
  its sole general partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  INSIGHT PHONE OF OHIO, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications of Central Ohio, 

  LLC, its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P., its 

  manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc., its 

  sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
						

 

 

 

	
  

  	
  INSIGHT COMMUNICATIONS MIDWEST, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest Holdings, LLC, is sole 

  member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest, L.P., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P.,

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc.,

  its sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  INSIGHT PHONE OF ILLINOIS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Midwest, LLC, its 

  sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest Holdings, LLC, its sole 

  member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest, L.P., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P., its 

  sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc., its 

  sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
						

 2
 

 

 

	
  

  	
  INSIGHT PHONE OF INDIANA, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Midwest, LLC, its 

  sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest Holdings, LLC, its sole 

  member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest, L.P., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P., its 

  sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc., its 

  sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  INSIGHT COMMUNICATIONS OF 

  KENTUCKY, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest Holdings, LLC, its sole 

  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest L.P., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P.,

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc.,

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
						

 

 3
 

 

 

	
  

  	
  INSIGHT KENTUCKY PARTNERS I, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications of Kentucky, L.P., 

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest Holdings, LLC, its sole 

  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest L.P., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P.,

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc.,

  its sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  INSIGHT KENTUCKY PARTNERS II, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Kentucky Partners I, L.P., its sole 

  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications of Kentucky, L.P. its 

  sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest Holdings, LLC, its sole 

  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest L.P., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P.,

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc.,

  its sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
						

 

 4
 

 

 

	
  

  	
  INSIGHT PHONE OF KENTUCKY, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Kentucky Partners II, L.P., its sole 

  member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Kentucky Partners I, L.P., its sole 

  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications of Kentucky, L.P., 

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest Holdings, LLC, its sole 

  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest L.P., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P.,

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc.,

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
						

 

 5

 

INSIGHT MIDWEST HOLDINGS, LLC

GUARANTEE AGREEMENT

	
  THE BANK OF NEW YORK, as

  	
   

  
	
  Administrative Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Stephen M. Nettler

  	
   

  
	
   

  	
  Name:

  	
  Stephen M. Nettler

  
	
   

  	
  Title:

  	
  Managing Director

  
					

 

SCHEDULE 1 TO THE GUARANTEE AGREEMENT

GUARANTORS

Guarantors

Insight Midwest, L.P.

Coaxial Communications of Central Ohio, Inc.

Insight Communications of Central Ohio, LLC

Insight Phone of Ohio, LLC

Insight Communications Midwest, LLC

Insight Phone of Illinois, LLC

Insight Phone of Indiana, LLC

Insight Communications of Kentucky, L.P.

Insight Kentucky Partners I, L.P.

Insight Kentucky Partners II, L.P.

Insight Phone of Kentucky, LLC

Address
Notices For All Guarantors

810 Seventh Avenue

New York, NY 10019

Attn:  John Abbot

 

ANNEX 1 TO THE GUARANTEE AGREEMENT

FORM OF SUPPLEMENT

SUPPLEMENT NO.     ,
dated as
of                       ,
to the GUARANTEE AGREEMENT, dated as of October 6, 2006, among INSIGHT MIDWEST,
L.P., a Delaware limited partnership (the “Parent”), INSIGHT MIDWEST
HOLDINGS, LLC, a Delaware limited liability company (the “Borrower”),
each of the subsidiaries of the Borrower listed on the Schedule I thereto and
THE BANK OF NEW YORK, as administrative agent under the Credit Agreement
referred to in the next paragraph (as amended, supplemented or otherwise
modified from time to time, the “Guarantee Agreement”).

Reference is made to the
Credit Agreement, dated as of October 6, 2006, among the Borrower, the Lenders
party thereto, J.P. Morgan Securities Inc. and Bank of America, N.A., as
Co-Syndication Agents, Morgan Stanley Senior Funding, Inc., General Electric
Capital Corporation, Wachovia Bank National, Association, and The Royal Bank of
Scotland PLC, as Co-Documentation Agents, The Bank of New York, as
Administrative Agent and J.P. Morgan Securities Inc. and Banc of America
Securities LLC, as Joint Lead Arrangers and Joint Book Runners (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”).  Capitalized terms used herein and not defined
herein, and the term “subsidiary”, shall have the meanings assigned to such
terms in the Credit Agreement and the Guarantee Agreement.

A.            The Guarantors have entered into the Guarantee Agreement
in order to induce the Lenders to make Loans and the Issuing Bank to issue
Letters of Credit.  Section 20 of the
Guarantee Agreement provides that additional Subsidiaries or Holding Companies
may become Guarantors under the Guarantee Agreement by execution and delivery
of an instrument in substantially the form of this Supplement.  The undersigned Subsidiary or Holding Company
(the “New Guarantor”) is executing this Supplement in accordance with
the requirements of the Credit Agreement to become the Parent or a Subsidiary
Guarantor, as applicable, under the Guarantee Agreement in order to induce the
Lenders to make additional Loans and the Issuing Bank to issue additional
Letters of Credit and as consideration for Loans previously made and Letters of
Credit previously issued.

Accordingly, the
Administrative Agent and the New Guarantor agree as follows:

Section 1.               In accordance with Section 20 of
the Guarantee Agreement, the New Guarantor by its signature below becomes a
Guarantor under the Guarantee Agreement with the same force and effect as if
originally named therein as a Guarantor, and the New Guarantor hereby (a)
agrees to all the terms and provisions of the Guarantee Agreement applicable to
it as a Guarantor thereunder,  (b) if the
New Guarantor is a Subsidiary Guarantor, represents and warrants that the representations
and warranties made by it as a Subsidiary Guarantor thereunder are true and
correct in all material respects on and as of the date hereof (except
(i) to the extent that such representations and warranties relate to an
earlier date, in which case such representations and warranties shall be true
and correct in all material respects as of such earlier date and (ii) that
any representation and warranty that is qualified as to “materiality” or “Material
Adverse Effect” shall be true and correct in all respects) and (c) if the New
Guarantor is a Holding Company that holds directly, beneficially and of record
100% of the issued and outstanding equity securities of the Borrower,
represents and warrants that the representations and warranties made by the
Parent thereunder are true and correct in all material respects as of the date
hereof as if made by such Holding Company (except (i) to the extent that such
representations and warranties relate to an earlier date, in which case such
representations and warranties shall be true and correct in all material
respects as of such earlier date and (ii) that any representation and warranty
that is qualified as to “materiality” or “Material Adverse 

 

Effect” shall be true and correct
in all respects).  Each reference to a “Subsidiary
Guarantor” or “Parent” in the ‘Guarantee Agreement shall be deemed to include
the New Guarantor, if applicable.  The
Guarantee Agreement is hereby incorporated herein by reference.

Section 2.               The New Guarantor represents and
warrants to the Administrative Agent and the other Secured Parties that this
Supplement has been duly authorized, executed and delivered by it and
constitutes its legal, valid and binding obligation, enforceable against it in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditor’s rights
generally and to general equitable principles (whether enforcement is sought by
proceedings in equity or at law) and the implied covenants of good faith and
fair dealing.

Section 3.               This Supplement may be executed
in counterparts (and by each party hereto on a different counterpart), each of
which shall constitute an original, but both of which, when taken together,
shall constitute but one contract.  This
Supplement shall become effective when the Administrative Agent shall have
received counterparts of this Supplement that, when taken together, bear the
signatures of the New Guarantor and the Administrative Agent.  Delivery of an executed counterpart of this
Supplement by facsimile transmission or electronic photocopy (i.e., “pdf”)
shall be as effective as delivery of a manually executed counterpart of this Supplement.

Section 4.               Except as expressly supplemented
hereby, the Guarantee Agreement shall remain in full force and effect.

Section 5.               THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

Section 6.               In the event any one or more of
the provisions contained in this Supplement should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein and in the Guarantee Agreement shall not
in any way be affected or impaired thereby (it being understood that the
invalidity of a particular provision hereof in a particular jurisdiction shall
not in and of itself affect the validity of such provision in any other jurisdiction).  The parties hereto shall endeavor in
good-faith negotiations to replace the invalid, illegal or unenforceable provisions
with valid provisions the economic effect of which comes as close as possible
to that of the invalid, illegal or unenforceable provisions.

Section 7.               All communications and notices
hereunder shall be in writing and given as provided in Section 15 of the
Guarantee Agreement.  All communications
and notices hereunder to the New Guarantor shall be given to it at the address
set forth under its signature below, with a copy to the Borrower.

Section 8.               The New Guarantor agrees to
reimburse the Administrative Agent for its reasonable out-of-pocket expenses in
connection with this Supplement, including the reasonable fees, disbursements
and other charges of counsel for the Administrative Agent to the extent
provided in the Credit Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 2
 

 

IN WITNESS WHEREOF, the New
Guarantor and the Administrative Agent have duly executed this Supplement No.      to
the Guarantee Agreement as of the day and year first above written.

	
   

  	
  [NEW GUARANTOR)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attention:

  	
   

  
	
  Telephone No.:

  	
  (  )

  	
   

  
	
  Facsimile No.:

  	
  (  )

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE BANK OF NEW
  YORK, as

  	
   

  
	
  Administrative
  Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
												

 

 3Exhibit 10.3

SECURITY AGREEMENT

SECURITY AGREEMENT, dated as of October 6, 2006,
among INSIGHT MIDWEST HOLDINGS, LLC, a Delaware limited liability company (the “Initial
Borrower”), INSIGHT MIDWEST, L.P., a Delaware limited partnership (the “Initial
Parent”), each of the subsidiaries of the Borrower (as defined below)
listed on Schedule I or that becomes a party hereto, pursuant to
Section 23 (each such subsidiary, individually, a “Subsidiary Guarantor”
and, collectively, the “Subsidiary Guarantors”; the Subsidiary
Guarantors, the Parent (as defined below) and the Borrower are referred to
collectively herein as the “Grantors”), and THE BANK OF NEW YORK, as
administrative agent under the Credit Agreement referred to in the next paragraph.

Reference is made to the Credit Agreement, dated as of
October 6, 2006, among the Borrower, the Lenders party thereto, J.P. Morgan
Securities Inc. and Bank of America, N.A., as Co-Syndication Agents, Morgan
Stanley Senior Funding, Inc., General Electric Capital Corporation, Wachovia
Bank, National Association and The Royal Bank of Scotland plc, as
Co-Documentation Agents, The Bank of New York, as Administrative Agent, and
J.P. Morgan Securities Inc. and Banc of America Securities LLC, as Joint Lead
Arrangers and Joint Book Runners (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”).

The Lenders have agreed to make Loans to, and the
Issuing Bank has agreed to issue Letters of Credit for the account of, the
Borrower pursuant to, and upon the terms and subject to the conditions
specified in, the Credit Agreement.  Each
of the Subsidiary Guarantors and the Parent has agreed to guarantee, among
other things, all the obligations of each Loan Party under the Loan
Documents.  The obligations of the
Lenders to make Loans and the Issuing Bank to issue Letters of Credit are
conditioned upon, among other things, the execution and delivery by the
Grantors of an agreement in the form hereof to secure the Obligations.

Accordingly, the Grantors and the Administrative
Agent, on behalf of itself and each other Secured Party (and each of their
respective successors or assigns), hereby agree as follows:

Section 1.                                            Definitions

(a)           Unless
the context otherwise requires, capitalized terms used herein and not defined
herein, and the term “subsidiary”, shall have the meanings assigned to such
terms in the Credit Agreement.

 

(b)           As
used herein, the following terms shall have the following meanings:

“Borrower” means, (i) the Initial Borrower or
(ii) any Post-Exit Borrower that becomes a party to this Security
Agreement pursuant to Section 23, and in each case, any successor permitted
under this Security Agreement or the other Loan Documents.

“Initial Borrower” has the meaning assigned to
such term in the preliminary statement of this Security Agreement.

“Collateral” means, when used with respect to
any Grantor, all (i) Pledged Equity and Pledged Securities, in each case
whether now existing or owned or hereafter arising or acquired and (ii)
Proceeds of the foregoing.

“Credit Agreement” has the meaning assigned to
such term in the preliminary statement of this Security Agreement.

“Equity Interests” means, with respect to (i) a
corporation, the capital stock thereof, (ii) a partnership, any partnership
interest therein, including all rights of a partner in such partnership,
whether arising under the partnership agreement of such partnership or
otherwise, (iii) a limited liability company, any membership interest
therein, including all rights of a member of such limited liability company,
whether arising under the limited liability company agreement of such limited
liability company or otherwise, (iv) any other firm, association, trust,
business enterprise or other entity that is similar to any other Person listed
in clauses (i) through (iii), and this clause (iv), of this definition, any
equity interest therein or any other interest therein that entitles the holder
thereof to share in the revenue, income, earnings or losses thereof or to vote
or otherwise participate in any election of one or more members of the managing
body thereof and (v) all warrants and options in respect of any of the
foregoing and all other securities that are convertible or exchangeable
therefor.

“Governmental Authority” means the government
of the United States of America, any other nation or any political subdivision
thereof, whether state or local, and any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government.

“Grantors” has the meaning assigned to such
term in the preliminary statement of this Security Agreement.

“Obligations” means (i) the due and punctual
payment of (a) principal of and premium, if any, and interest (including
interest accruing during the pendency of any bankruptcy, insolvency, receivership
or other similar proceeding, regardless of whether allowed or allowable in such
proceeding) on the Loans, when and as due, whether at maturity, by
acceleration, upon one or more dates set for prepayment or otherwise, and (b)
all other monetary obligations, including fees, commissions, costs, expenses
and indemnities, whether primary, secondary, direct, contingent, fixed or
otherwise (including monetary obligations incurred during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding), of the Loan Parties to the Secured
Parties, or that are

 2
 

 

otherwise payable to any Credit Party, under the
Credit Agreement and the Loan Documents, (ii) the due and punctual performance
of all covenants, agreements, obligations and liabilities of the Loan Parties
under or pursuant to the Credit Agreement and the other Loan Documents and
(iii) unless otherwise agreed upon in writing by the applicable Lender party
thereto, all obligations of the Borrower, monetary or otherwise, under each
Hedging Agreement entered into with a counterparty that was a Lender (or an
Affiliate thereof) at the time such Hedging Agreement was entered into.

“Initial Parent” has the meaning assigned to
such term in preliminary statement of this Security Agreement.

“Parent” means either (a) the Initial Parent or
(b) any Holding Company that becomes a party to this Security Agreement
pursuant to Section 23, and in each case, any successor permitted under this
Security Agreement or the other Loan Documents.

“Perfection Certificate” means a certificate
substantially in the form of Annex 1, completed and supplemented with the
schedules and attachments contemplated thereby, and duly executed by the chief
executive officer or a Financial Officer of each of the Borrower and the
Parent.

“Pledged Equity” means (i) when used with
respect to any Grantor (other than the Parent), all right, title and interest
of such Grantor in any Equity Interests in each of its Subsidiaries, whether
now or hereafter acquired or arising in the future, and (ii) when used with
respect to the Parent, all right, title and interest of the Parent in any
Equity Interests in the Borrower, whether now or hereafter acquired or arising
in the future.

“Pledged Securities” means the Pledged Equity
and all instruments, certificates and documents evidencing or representing such
Pledged Equity, whether now existing or owned or hereafter arising or acquired;
provided that in no event shall (i) more than 65% of the total
outstanding voting Equity Interests of any Foreign Subsidiary and (ii) any
Equity Interests of a subsidiary of a Foreign Subsidiary be pledged hereunder.

“Proceeds” means, when used with respect to any
Collateral, (a) all Proceeds as defined in the UCC and (b) any consideration
received from the sale, exchange, license, lease or other disposition of any
asset or property that constitutes such Collateral, any value received as a consequence
of the possession of such Collateral and any payment received from any insurer
or other person or entity as a result of the destruction, loss, theft, damage
or other involuntary conversion of whatever nature of any asset or property
that constitutes such Collateral, and shall include (i) subject to Section 6,
all rights and privileges with respect to, and all payments of principal or
interest, dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of, in exchange for or
upon the conversion of, any of the Pledged Securities and (ii) any and all
other amounts from time to time paid or payable under or in connection with
such Collateral.

“Requirement of Law” means as to any Person,
any law, treaty, rule or regulation or determination of an arbitrator or a
court or other Governmental Authority, applicable to or 

 3
 

 

binding upon such Person or any of its property or to
which such Person or any of its property is subject.

“Secured Parties” means (i) the Credit Parties,
(ii) unless otherwise agreed upon in writing by it, each counterparty to a
Hedging Agreement entered into with the Borrower if such counterparty was a
Lender (or an Affiliate thereof) at the time the Hedging Agreement was entered
into and (iii) the successors and assigns of each of the foregoing.

“Security Interest” has the meaning assigned to
such term in Section 2(a).

“Subsidiary Guarantor” and “Subsidiary Guarantors”
have the meanings assigned to such terms in the preliminary statement of this
Security Agreement.

“UCC” means the Uniform Commercial Code of the
State of New York as in effect on the date hereof.

(c)           The
rules of interpretation specified in Sections 1.2, 1.3 and 1.4 of the Credit
Agreement shall be applicable to this Security Agreement.

Section 2.                                            Grant
of Security Interest; No Assumption of Liability

(a)           Grant
of Security Interest.  As security
for the payment or performance, as applicable, in full of the Obligations, each
of the Grantors hereby grants to the Administrative Agent (and its successors
and assigns), for the benefit of the Secured Parties, a security interest in,
all of the right, title and interest of such Grantor in, to and under the Collateral
(the “Security Interest”). 
Without limiting the foregoing, the Administrative Agent is hereby authorized
to file one or more financing statements, continuation statements, or other
documents for the purpose of perfecting, confirming, continuing, enforcing or
protecting the Security Interest granted by each of the Grantors, and naming
any Grantor or the Grantors, as applicable, as debtors and the Administrative
Agent as secured party.  Notwithstanding
any of the other provisions set forth in this Section 2, this Security
Agreement shall not constitute a grant of a security interest in (i) any
Collateral to the extent that such grant of a security interest is prohibited
by any Requirements of Law of a Governmental Authority, requires a consent not obtained
of any Governmental Authority pursuant to such Requirement of Law or is
prohibited by, or constitutes a breach under or results in the termination of
or requires any consent not obtained under any applicable shareholder or
similar agreement, except, in each case, to the extent that such Requirement of
Law or the term in such shareholder or similar agreement providing for such
prohibition, breach or termination or requiring such consent is ineffective
under applicable law and (ii) (x) more than 65% of the total outstanding voting
Equity Interests of any Foreign Subsidiary or (y) any Equity Interests of a
subsidiary of a Foreign Subsidiary.  It
is hereby understood and agreed that any property described in the immediately
preceding sentence shall be excluded from the definition of “Collateral.”

(b)           No
Assumption of Liability.  The
Security Interest is granted as security only and shall not subject the
Administrative Agent or any other Secured Party to, or in any way alter or
modify, any obligation or liability of any Grantor with respect to or arising
out of the Collateral.

 4
 

 

Section 3.                                            Delivery
of the Collateral

Subject to Section 6, each of the Grantors agrees to
deliver or cause to be delivered to the Administrative Agent as soon as is
reasonably practicable any and all notes, chattel paper, instruments,
certificates and documents evidencing or representing any of the Pledged Securities,
or any other amount constituting Collateral, owned or held by or on behalf of
such Grantor, in each case accompanied by (i) in the case of any notes, chattel
paper, instruments or stock certificates, stock powers duly executed in blank
or other instruments of transfer reasonably satisfactory to the Administrative
Agent and such other instruments and documents as the Administrative Agent may
reasonably request and (ii) in all other cases, proper instruments of
assignment duly executed by such Grantor and such other instruments or
documents as the Administrative Agent may reasonably request.

Section 4.                                            Representations
and Warranties

Each of the Grantors,
jointly with the others and severally, represents and warrants to the
Administrative Agent and the Secured Parties that:

(a)           Such
Grantor has good and valid rights in and title to the Collateral with respect
to which it has purported to grant a Security Interest hereunder, and has full
power and authority to grant to the Administrative Agent the Security Interest
in such Collateral pursuant hereto and to execute, deliver and perform its
obligations in accordance with the terms of this Security Agreement, without
the consent or approval of any other person other than such as have been or
prior to or concurrently with the consummation of the Transactions will be
obtained or made and are or prior to or concurrently with the consummation of
the Transactions will be obtained or made and are or prior to or concurrently
with the consummation of the Transactions will be in full force and effect
(except such consents, approvals, registrations or filings, if any, which will
be required pursuant to the 1934 Act, and/or any laws or regulations
administered by the FCC, State PUCs or any Governmental Authority regulating
the provision of communication services, at the time of the exercise of
remedies under the Loan Documents by the Administrative Agent and the Lenders).

(b)           The
Perfection Certificate, to the extent it relates to such Grantor or any of its
property, has been prepared, completed and executed and the information set
forth therein is correct and complete as of the Closing Date.  As of the Closing Date, fully executed
Uniform Commercial Code financing statements, as applicable, or other appropriate
filings, recordings or registrations containing a description of the Collateral
owned or held by or on behalf of such Grantor have been delivered to the
Administrative Agent for filing in each applicable governmental, municipal or
other office specified in Schedule 5 to the Perfection Certificate and each
other applicable governmental, municipal or other office, which are all the
filings, recordings and registrations that are necessary to publish notice of
and protect the validity of and to establish a legal, valid and perfected
security interest in favor of the Administrative Agent (for the benefit of the
Secured Parties) in respect of all Collateral owned or held by or on behalf of
such Grantor in which the Security Interest may be perfected by filing,
recording or registration in the United States (or any political subdivision
thereof) and its territories and possessions, except for any such 

 5
 

 

Collateral as to which the representations
and warranties in this sentence would not be true solely by virtue of such
Collateral having been used or disposed of in a manner expressly permitted
hereunder, and no further or subsequent filing, refiling, recording, rerecording,
registration or reregistration is necessary in any such jurisdiction, except as
provided under applicable law with respect to the filing of continuation
statements under the UCC.

(c)           This
Security Agreement is effective to create in favor of the Administrative Agent,
for the benefit of the Secured Parties, a legal, valid and enforceable Security
Interest in all Collateral owned or held by or on behalf of such Grantor
securing the payment and performance of the Obligations and, when (i) the
certificates, if any, evidencing Collateral are delivered to the Administrative
Agent and (ii) financing statements in appropriate form are filed in the
offices specified on Schedule 5 to the Perfection Certificate as of the Closing
Date (subject to all other applicable filings under the Uniform Commercial Code
or otherwise that are required under the Security Documents to be made after
the date hereof), this Security Agreement shall constitute a fully perfected
Lien on, and security interest in, all right, title and interest of the
Grantors hereunder in such Collateral to the extent that a security interest
may be perfected by filing, recording or registering a financing statement or
analogous document, or by the secured party’s taking possession, in the State
of New York pursuant to the UCC, in each case prior and superior in right to
any other Person, other than with respect to Liens expressly permitted by
Section 7.2 of the Credit Agreement and except for any such Collateral as to
which the representations and warranties in this Section would not be true
solely by virtue of such Collateral having been used or disposed of in a manner
expressly permitted by this Security Agreement or the Credit Agreement.

(d)           The
Collateral owned or held by or on behalf of such Grantor is so owned or held by
it free and clear of any Lien, except for Liens expressly permitted pursuant to
the Loan Documents.  It has not filed or
consented to the filing of (i) any financing statement or analogous document
under the Uniform Commercial Code or any other applicable laws covering any
such Collateral (other than those that have terminated or will be terminated
substantially contemporaneously with the Refinancing) or (ii) any assignment in
which it assigns any such Collateral or any security agreement or similar
instrument covering any such Collateral with any foreign governmental,
municipal or other office, which financing statement or analogous document is
still in effect, except, in each case, for Liens expressly permitted pursuant
to the Loan Documents.

(e)           The
Security Interest in the Collateral owned or held by or on behalf such Grantor
(i) is effective to vest in the Administrative Agent, on behalf of the Secured
Parties, the rights of the Administrative Agent in such Collateral as set forth
herein and (ii) does not violate Regulation T, U or X as of the date hereof.

Section 5.                                            Covenants

(a)           Each
of the Grantors agrees, except upon not less than 10 days prior written notice
to the Administrative Agent, not to effect any change (i) in its legal name,
(ii) in the location of its chief executive office, (iii) in its identity or
legal or organizational structure, (iv) in 

 6
 

 

its jurisdiction of organization, (v) in its organizational
identification number or (vi) in its Federal Taxpayer Identification
Number.  Should any Grantor effect or
permit any change referred to in the preceding sentence to occur, each of the
Grantors agrees after receiving a written request therefor from the
Administrative Agent to deliver to the Administrative Agent any filings
necessary under the Uniform Commercial Code or otherwise that are required in
order for the Administrative Agent to continue at all times following such
change to have a valid, legal and perfected security interest in all the
Collateral as described in Section 4(d) (subject only to Liens expressly
permitted to be prior to the Security Interest pursuant to the Loan Documents).

(b)           Each
of the Grantors agrees to maintain, at its own cost and expense, such complete
and accurate records with respect to the Collateral owned or held by it or on
its behalf as is consistent with its current practices and in accordance with
such prudent and standard practices used in industries that are the same as or
similar to those in which it is engaged, but in any event to include complete
accounting records indicating all payments and proceeds received with respect
to any part of such Collateral, and, at such time or times as the Administrative
Agent may reasonably request (but not more frequently than once per year except
during the continuance of an Event of Default), promptly to prepare and deliver
to the Administrative Agent a duly certified schedule or schedules in form and
detail reasonably satisfactory to the Administrative Agent showing the identity
and amount of any and all such Collateral.

(c)           Each
of the Grantors shall, at its own cost and expense, take any and all actions
necessary to defend title to the Collateral owned or held by it or on its
behalf and to maintain the Security Interest of the Administrative Agent in
such Collateral and the priority thereof against any Lien or other interest not
expressly permitted pursuant to the Loan Documents.

(d)           Each
of the Grantors agrees, at its own expense, to execute any and all further
documents, financing statements, agreements (including guarantee agreements and
security agreements) and instruments, and take all such further actions (including
the filing and recording of financing statements and other documents), that may
be required under any applicable law, or that the Administrative Agent may
reasonably request, to grant, preserve, protect or perfect (including as a
result of any change in applicable law) the Liens created or intended to be
created by this Security Agreement or the validity or priority of any such
Lien.  Each Grantor also agrees to
provide to the Administrative Agent, from time to time upon request, evidence
reasonably satisfactory to the Administrative Agent as to the perfection and
priority of the Liens created or intended to be created by this Security
Agreement.

(e)           The
Administrative Agent and such persons as the Administrative Agent may
reasonably designate shall have the right, at the cost and expense of the
Grantors, at reasonable intervals, but not more frequently than once per year
(except, during the continuance of an Event of Default) to inspect all of its
records relating to the Collateral owned or held by it on its behalf (and to
make extracts and copies from such records) and to discuss its affairs with its
officers and independent accountants. 
The Administrative Agent shall have the absolute right to share any
information relating to the Collateral owned or held by it on its behalf that
it gains from such inspection or verification with any Secured Party.

 7
 

 

(f)            At
its option, the Administrative Agent may discharge past due taxes, assessments,
charges, fees, Liens, security interests or other encumbrances at any time
levied or placed on the Collateral and not permitted pursuant to the Loan
Documents and each Grantor agrees, jointly with the others and severally, to
reimburse the Administrative Agent on demand for any reasonable payment made or
any reasonable expense incurred by the Administrative Agent pursuant to the
foregoing authorization; provided, however, that nothing in this
paragraph shall be interpreted as excusing any Grantor from the performance of,
or imposing any obligation on the Administrative Agent or any other Secured
Party to cure or perform, any covenants or other promises of any Grantor with
respect to taxes, assessments, charges, fees, liens, security interests or
other encumbrances and maintenance as set forth herein or in the other Loan Documents.

(g)           Each
of the Grantors shall remain liable to observe and perform all the conditions
and obligations to be observed and performed by it under each contract,
agreement or instrument relating to the Collateral, all in accordance with the
terms and conditions thereof, and such Grantor agrees, jointly with the others
and severally, to indemnify and hold harmless the Administrative Agent and the
other Secured Parties from and against any and all liability for such
performance.

(h)           None
of the Grantors shall make or permit to be made an assignment, pledge or
hypothecation of the Collateral owned or held by it or on its behalf, or shall
grant any other Lien in respect of such Collateral, except as expressly
permitted by the Loan Documents.  Except
for transfers expressly permitted by the Credit Agreement, no such Grantor
shall make or permit to be made any transfer of such Collateral, and it shall
remain at all times in possession of such Collateral and the direct owner,
beneficially and of record, of the Pledged Equity included in such Collateral.

Section 6.                                            Attorney-in-Fact;
Registration in Nominee Name; Denominations; Voting Rights; Dividends and
Interest, etc.

(a)           Each
of the Grantors hereby appoints the Administrative Agent as its true and lawful
agent and attorney-in-fact for the purpose, upon the occurrence and during the
continuance of an Event of Default, of carrying out the provisions of this
Security Agreement and taking any action and executing any instrument that the
Administrative Agent may reasonably deem necessary to accomplish the purposes
hereof which appointment is irrevocable and coupled with an interest, and
without limiting the generality of the foregoing, the Administrative Agent
shall have the right, with power of substitution for the Grantors in each
Grantor’s name or otherwise, for the use and benefit of the Administrative
Agent and the other Secured Parties, upon the occurrence and during the
continuance of an Event of Default, (i) to receive, endorse, assign and/or
deliver any and all notes, acceptances, checks, drafts, money orders or other
evidences of payment relating to the Collateral or any part thereof; (ii) to
demand, collect, receive payment of, give receipt for, and give discharges and
releases of, all or any of the Collateral; (iii) to commence and prosecute any
and all suits, actions or proceedings at law or in equity in any court of competent
jurisdiction to collect or otherwise realize on all or any of the Collateral or
to enforce any rights in respect of any Collateral; (iv) to settle, compromise,
compound, adjust or defend any actions, suits or proceedings relating to all or
any of the Collateral; (v) to use, sell, assign, 

 8
 

 

transfer, pledge, make any agreement with respect to or otherwise deal
with all or any of the Collateral, and to do all other acts and things
necessary to carry out the purposes of this Security Agreement, as fully and completely
as though the Administrative Agent were the absolute owner of the Collateral
for all purposes; provided, however, that nothing herein
contained shall be construed as requiring or obligating the Administrative
Agent or any other Secured Party to make any commitment or to make any inquiry
as to the nature or sufficiency of any payment received by the Administrative
Agent or any other Secured Party, or to present or file any claim or notice, or
to take any action with respect to the Collateral or any part thereof or the
moneys due or to become due in respect thereof or any property covered thereby,
and no action taken or omitted to be taken by the Administrative Agent or any
other Secured Party with respect to the Collateral or any part thereof, subject
to compliance with applicable law, shall give rise to any defense, counterclaim
or offset in favor of any Grantor or to any claim or action against the Administrative
Agent or any other Secured Party except to the extent such action or omission results
from the gross negligence, bad faith or willful misconduct of the
Administrative Agent or such Secured Party as determined by a court of
competent jurisdiction by final and nonappealable judgment.  The provisions of this paragraph shall in no
event relieve any Grantor of any of its obligations hereunder or under the
other Loan Documents with respect to the Collateral or any part thereof or
impose any obligation on the Administrative Agent or any other Secured Party to
proceed in any particular manner with respect to the Collateral or any part
thereof, or in any way limit the exercise by the Administrative Agent or any
other Secured Party of any other or further right that it may have on the date
of this Security Agreement or hereafter, whether hereunder, under any other
Loan Document, by law or otherwise.  Any
sale pursuant to the provisions of this paragraph shall be deemed to conform to
the commercially reasonable standards as provided in the Uniform Commercial
Code as in effect in the State of New York or its equivalent in other jurisdictions.

(b)           Without
limiting the generality of the foregoing, during the continuance of an Event of
Default, subject to compliance with applicable law, the Administrative Agent,
on behalf of the Secured Parties, shall have the right (in its reasonable
discretion) to hold the Pledged Securities in its own name as pledgee, the name
of its nominee (as pledgee or as sub-agent) or the name of the Grantors,
endorsed or assigned in blank or in favor of the Administrative Agent.  The Administrative Agent shall at all times
have the right to exchange any certificates representing the Pledged Securities
for certificates of smaller or larger denominations for any purpose consistent
with this Security Agreement

(c)           Without
limiting the generality of the foregoing, unless and until an Event of Default
shall have occurred and be continuing:

(i)            Each of the Grantors shall be
entitled to exercise any and all voting and/or other consensual rights and
powers inuring to an owner of the Pledged Securities, or any part thereof, for
any purpose consistent with the terms of this Security Agreement, the Credit
Agreement and the Loan Documents.

(ii)           The Administrative Agent shall
execute and deliver to each of the Grantors or cause to be executed and
delivered to each of the Grantors, all such proxies, powers of attorney and
other instruments as such Grantor may reasonably request for the purpose 

 9
 

 

of enabling
such Grantor to exercise the voting and/or consensual rights and powers it is
entitled to exercise pursuant to Section 6(c)(i) and to receive the dividends
it is entitled to receive pursuant to Section 6(c)(iii).

(iii)          Each of the Grantors shall be entitled
to receive and retain any and all dividends (other than Equity Interests) and
other payments and distributions paid on the Pledged Securities to the extent
and only to the extent that such dividends and other payments and distributions
are not prohibited by, and otherwise paid in accordance with, the terms and
conditions of the Credit Agreement, the Loan Documents and applicable laws.

(d)           Without
limiting the generality of the foregoing, upon the occurrence and during the
continuance of an Event of Default:

(i)            All rights of any Grantor to
dividends and other payments and distributions that it is authorized to receive
pursuant to Section 6(c)(iii) shall cease, and all such rights shall thereupon
become vested in the Administrative Agent, which shall have the sole and
exclusive right and authority to receive and retain such dividends and other
payments and distributions.  All
dividends and other payments and distributions received by such Grantor
contrary to the provisions of this Section shall be held in trust for the
benefit of the Administrative Agent, shall be segregated from other property or
funds of such Grantor and shall be forthwith delivered to the Administrative
Agent upon demand in the same form as so received (with any necessary
endorsement).  Any and all money and
other property paid over to or received by the Administrative Agent pursuant to
the provisions of this paragraph shall be retained by the Administrative Agent
in an account to be established by the Administrative Agent upon receipt of
such money or other property and shall be applied in accordance with the provisions
of Section 8.  After all Events of
Default have been cured or waived, the Administrative Agent shall, promptly
after all such Events of Default have been cured or waived, repay to each of
the Grantors all dividends and other payments and distributions (without interest),
that such Grantor would otherwise be permitted to retain pursuant to the terms
of Section 6(c)(iii) and which remain in such account.

(ii)           Subject to compliance with applicable
law, all rights of any Grantor to exercise the voting and consensual rights and
powers it is entitled to exercise pursuant to Section 6(c)(i), and the
obligations of the Administrative Agent under Section 6(c)(ii), shall cease,
and all such rights shall thereupon become vested in the Administrative Agent,
which shall have the sole and exclusive right and authority to exercise such
voting and consensual rights and powers, provided that, unless otherwise
directed by the Required Lenders, the Administrative Agent shall have the right
from time to time during the continuance of an Event of Default to permit each
of the Grantors to exercise such rights. 
After all Events of Default have been cured or waived, each of the
Grantors will have the right to exercise the voting and consensual rights and
powers that it would otherwise be entitled to exercise pursuant to the terms of
Section 6(a)(i).

 10
 

 

Section 7.                                            Remedies
upon Default

(a)           Upon
the occurrence and during the continuance of an Event of Default, subject to
compliance with applicable law, each of the Grantors agrees to deliver each
item of Collateral to the Administrative Agent on demand, and it is agreed that
the Administrative Agent shall have the right to exercise any and all rights afforded
to a secured party under the Uniform Commercial Code or other applicable
law.  Without limiting the generality of
the foregoing, each of the Grantors agrees that the Administrative Agent shall
have the right, subject to the mandatory requirements of applicable law, to
sell or otherwise dispose of all or any part of the Collateral, at public or private
sale or at any broker’s board or on any securities exchange, for cash, upon
credit or for future delivery as the Administrative Agent shall reasonably deem
appropriate.  The Administrative Agent
shall be authorized at any such sale of collateral constituting securities (if
it deems it advisable to do so) to restrict the prospective bidders or
purchasers to persons who will represent and agree that they are purchasing the
Collateral for their own account for investment and not with a view to the distribution
or sale thereof, and upon consummation of any such sale, the Administrative
Agent shall have the right to assign, transfer and deliver to the purchaser or
purchasers thereof the Collateral so sold. 
Each such purchaser at any such sale shall hold the property sold absolutely,
free from any claim or right on the part of any Grantor, and each of the
Grantors hereby waives, to the extent permitted by law, all rights of redemption,
stay, valuation and appraisal which such Grantor now has or may at any time in
the future have under any rule of law or statute now existing or hereafter enacted.

(b)           The
Administrative Agent shall give each of the Grantors ten days’ written notice
(which such Grantor agrees is reasonable notice within the meaning of Section
9-612 of the Uniform Commercial Code as in effect in the State of New York or
its equivalent in other jurisdictions) of the Administrative Agent’s intention
to make any sale of Collateral.  Such notice,
in the case of a public sale, shall state the time and place for such sale and,
in the case of a sale at a broker’s board or on a securities exchange, shall
state the board or exchange at which such sale is to be made and the day on
which the Collateral, or portion thereof, will first be offered for sale at
such board or exchange.  Any such public
sale shall be held at such time or times within ordinary business hours and at
such place or places as the Administrative Agent may fix and state in the notice
(if any) of such sale.  At any such sale,
the Collateral, or portion thereof, to be sold may be sold in one lot as an
entirety or in separate parcels, as the Administrative Agent may (in its
reasonable discretion) determine.  The
Administrative Agent shall not be obligated to make any sale of any Collateral
if it shall determine not to do so, regardless of the fact that notice of sale
of such Collateral shall have been given. 
The Administrative Agent may, without notice or publication, adjourn any
public or private sale or cause the same to be adjourned from time to time by
announcement at the time and place fixed for sale, and such sale may, without
further notice, be made at the time and place to which the same was so
adjourned.  In case any sale of all or
any part of the Collateral is made on credit or for future delivery, the
Collateral so sold may be retained by the Administrative Agent until the sale
price is paid by the purchaser or purchasers thereof, but the Administrative
Agent shall not incur any liability in case any such purchaser or purchasers shall
fail to take up and pay for the Collateral so sold and, in case of any such
failure, such Collateral may be sold again upon like notice.  At any public (or, to the extent permitted by
applicable law, private) sale made pursuant to this Section, any Secured Party
may bid for or purchase, free (to the extent permitted by applicable law) from
any right of redemption, stay, 

 11
 

 

valuation or appraisal on the part of any Grantor (all said rights
being also hereby waived and released to the extent permitted by law), the
Collateral or any part thereof offered for sale and may make payment on account
thereof by using any claim then due and payable to such Secured Party from any
Grantor as a credit against the purchase price, and such Secured Party may,
upon compliance with the terms of sale, hold, retain and dispose of such
property without further accountability to any Grantor therefor.  For purposes hereof, (i) a written agreement
to purchase the Collateral or any portion thereof shall be treated as a sale
thereof, (ii) the Administrative Agent shall be free to carry out such sale
pursuant to such agreement and (iii) none of the Grantors shall be entitled to
the return of the Collateral or any portion thereof subject thereto,
notwithstanding the fact that after the Administrative Agent shall have entered
into such an agreement all Events of Default shall have been remedied and the
Obligations paid in full.  As an
alternative to exercising the power of sale herein conferred upon it, the
Administrative Agent may proceed by a suit or suits at law or in equity to
foreclose upon the Collateral and to sell the Collateral or any portion thereof
pursuant to a judgment or decree of a court or courts having competent jurisdiction
or pursuant to a proceeding by a court-appointed receiver.  Any sale pursuant to the provisions of this
Section shall be deemed to conform to the commercially reasonable standards as
provided in Section 9-610 of the Uniform Commercial Code as in effect in the
State of New York or its equivalent in other jurisdictions.

Section 8.                                            Application
of Proceeds of Sale

The Administrative Agent shall apply the proceeds of
any collection or sale of the Collateral, as well as any Collateral consisting
of cash, as follows:

FIRST, to the payment of all costs
and expenses incurred by the Administrative Agent (in its capacity as such
hereunder or under any other Loan Document) in connection with such collection
or sale or otherwise in connection with this Security Agreement, any other Loan
Document or any of the Obligations in each case to the extent provided for in
the Credit Agreement;

SECOND, to the payment in full of
the Obligations then due and owing(the amounts so applied to be distributed
among the Secured Parties pro rata in accordance with the amounts of the Obligations
owed to them on the date of any such distribution); and

THIRD, to the Grantors, their
respective successors or assigns, or as a court of competent jurisdiction may
otherwise direct.

The Administrative Agent shall have absolute
discretion as to the time of application of any such proceeds, moneys or
balances in accordance with this Security Agreement.  Upon any sale of the Collateral by the
Administrative Agent (including pursuant to a power of sale granted by statute
or under a judicial proceeding), the receipt of the purchase money by the
Administrative Agent or of the officer making the sale shall be a sufficient
discharge to the purchaser or purchasers of the Collateral so sold and such
purchaser or purchasers shall not be obligated to see to the application of any
part of the purchase money paid over to the Administrative Agent or such
officer or be answerable in any way for the misapplication thereof.

 12

 

Section 9.                                            Reimbursement
of Administrative Agent

(a)                                  Each
of the Grantors agrees, jointly with the others and severally, to pay to the
Administrative Agent the amount of any and all reasonable out-of-pocket
expenses, including the fees, other charges and disbursements of a single firm
of counsel, that the Administrative Agent incurs in connection with (i) the
administration of this Security Agreement relating to such Grantor or any of
its Collateral, (ii) the custody or preservation of, or the sale of, collection
from, or other realization upon, any of the Collateral owned or held by or on
behalf of such Grantor, (iii) the exercise, enforcement or protection of any of
the rights of the Administrative Agent hereunder relating to such Grantor or
any of its Collateral or (iv) the failure by such Grantor to perform or observe
any of the provisions hereof.

(b)                                 Without
limitation of its indemnification obligations under the other Loan Documents,
each of the Grantors agrees, jointly with the others and severally, to
indemnify the Administrative Agent and the other Indemnitees against, and hold
each Indemnitee harmless from, any and all losses, claims, damages, liabilities
and related expenses, including the reasonable and documented fees, charges and
disbursements of a single firm of counsel for the Indemnitees (unless a
conflict exists, in which case, reasonable and documented fees, charges and disbursements
of reasonably necessary additional counsel for the affected Indemnitees shall
be covered) (but excluding Taxes, which are governed by Section 3.7 of the
Credit Agreement), incurred by or asserted against any Indemnitee arising out
of, in connection with, or as a result of (i) the execution or delivery by such
Grantor of this Security Agreement or any other Loan Document to which it is a
party or any agreement or instrument contemplated thereby, the performance by
the parties to the Loan Documents of their respective obligations thereunder or
the consummation of the Transactions or any other transactions contemplated
thereby, (ii) any Loan or Letter of Credit or the use of the proceeds thereof
including any refusal of an Issuing Bank to honor a demand for payment under a
Letter of Credit if the documents presented in connection with such demand do
not strictly comply with the terms of such Letter of Credit, (iii) any actual
or alleged presence or release of Hazardous Materials on or from any property
owned or operated by the Parent, the Borrower or any of the Subsidiaries, or
any Environmental Liability related in any way to the Parent, the Borrower or
any of the Subsidiaries or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory and regardless of whether any Indemnitee is
a party thereto, provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from (A) the
bad faith, gross negligence or willful misconduct of such Indemnitee or any of
its Related Parties, (B) any claims of such Indemnitee against any other
Indemnitee and/or (C) the breach by such Indemnitee of its obligations
hereunder or under any other Loan Document.

(c)                                  Any
amounts payable as provided hereunder shall be additional Obligations secured
hereby and by the other Security Documents. 
The provisions of this Section shall remain operative and in full force
and effect regardless of the termination of this Security Agreement or any
other Loan Document, the consummation of the transactions contemplated hereby,
the repayment of any of the Obligations, the invalidity or unenforceability of
any term or provision of this Security Agreement or any other Loan Document or
any investigation made by 

 13
 

 

or on behalf of the Administrative Agent or any other Secured
Party.  All amounts due under this Section
shall be payable within ten days of written demand therefor and shall bear
interest at the rate specified in Section 3.1 of the Credit Agreement.

Section 10.                                      Waivers;
Amendment

(a)                                  No
failure or delay of the Administrative Agent in exercising any power or right
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power.  The rights and remedies of the Administrative
Agent hereunder and of the other Secured Parties under the Loan Documents are
cumulative and are not exclusive of any rights or remedies that they would
otherwise have.  No waiver of any provision
of this Security Agreement or consent to any departure by any Grantor therefrom
shall in any event be effective unless the same shall be permitted by paragraph
(b) of this Section, and then such waiver or consent shall be effective only in
the specific instance and for the purpose for which given.  No notice to or demand on any Grantor in any
case shall entitle such Grantor to any other or further notice or demand in
similar or other circumstances.

(b)                                 Neither
this Security Agreement nor any provision hereof may be waived, amended or
modified except pursuant to a written agreement entered into by, between or
among the Administrative Agent and the other parties hereto with respect to
which such waiver, amendment or modification is to apply, subject to any
consent required in accordance with Section 10.2 of the Credit Agreement.

Section 11.                                      Securities
Act, etc.

In view of the position of the Grantors in relation to
the Pledged Securities, or because of other current or future circumstances, a
question may arise under the Securities Act of 1933, as now or hereafter in
effect, or any similar statute hereafter enacted analogous in purpose or effect
(such Act and any such similar statute as from time to time in effect being
called the “Federal securities laws”) with respect to any disposition of
the Pledged Securities permitted hereunder. 
Each of the Grantors understands that compliance with the Federal
securities laws might very strictly limit the course of conduct of the
Administrative Agent if the Administrative Agent were to attempt to dispose of
all or any part of the Pledged Securities, and might also limit the extent to
which or the manner in which any subsequent transferee of any Pledged
Securities could dispose of the same. 
Similarly, there may be other legal restrictions or limitations affecting
the Administrative Agent in any attempt to dispose of all or part of the
Pledged Securities under applicable Blue Sky or other state securities laws or
similar laws analogous in purpose or effect. 
Each of the Grantors recognizes that in light of such restrictions and
limitations the Administrative Agent may, with respect to any sale of the
Pledged Securities, limit the purchasers to those who will agree, among other
things, to acquire such Pledged Securities for their own account, for
investment, and not with a view to the distribution or resale thereof.  Each of the Grantors acknowledges and agrees
that in light of such restrictions and limitations, the Administrative Agent,
in its reasonable discretion, (i) may proceed to make such a sale whether or
not a registration statement for the purpose of registering such Pledged
Securities, or any part thereof, shall have been filed under the Federal
securities laws and (ii) may approach and negotiate with a single 

 14
 

 

potential purchaser to effect such sale.  Each of the Grantors acknowledges and agrees
that any such sale might result in prices and other terms less favorable to the
seller than if such sale were a public sale without such restrictions.  In the event of any such sale, the
Administrative Agent shall incur no responsibility or liability for selling all
or any part of the Pledged Securities at a price that the Administrative Agent,
in its reasonable discretion, may in good faith deem reasonable under the
circumstances, notwithstanding the possibility that a substantially higher
price might have been realized if the sale were deferred until after registration
as aforesaid or if more than a single purchaser were approached.  The provisions of this Section will apply
notwithstanding the existence of a public or private market upon which the
quotations or sales prices may exceed substantially the price at which the
Administrative Agent sells.

Section 12.                                      Registration,
etc.

Each of the Grantors agrees that, upon the occurrence
and during the continuance of an Event of Default hereunder, if for any reason
the Administrative Agent desires to sell any of the Pledged Securities owned or
held by or on behalf of such Grantor at a public sale, it will, at any time and
from time to time, upon the written request of the Administrative Agent, use
its commercially reasonable efforts to take or to cause the issuer of such
Pledged Securities to take such action and prepare, distribute and/or file such
documents, in accordance with the Federal securities laws, as are required or
advisable in the reasonable opinion of counsel for the Administrative Agent to
permit the public sale of such Pledged Securities.  Each of the Grantors further agrees, jointly
with the others and severally, to indemnify, defend and hold harmless the Administrative
Agent, each other Secured Party, any underwriter and their respective officers,
directors, affiliates and controlling persons from and against all loss,
liability, expenses, costs of counsel (including reasonable fees and expenses
of legal counsel), and claims (including the costs of investigation) that they
may incur, insofar as such loss, liability, expense or claim, as applicable,
relates to such Grantor or any of its property, and arises out of or is based
upon any alleged untrue statement of a material fact contained in any
prospectus (or any amendment or supplement thereto) or in any notification or
offering circular, or arises out of or is based upon any alleged omission to
state a material fact required to be stated therein or necessary to make the
statements in any thereof not misleading, except insofar as the same may have
been caused by any untrue statement or omission based upon information
furnished in writing to such Grantor or the issuer of such Pledged Securities,
as applicable, by the Administrative Agent or any other Secured Party expressly
for use therein.  Each of the Grantors
further agrees, upon such written request referred to above, to use its
commercially reasonable efforts to qualify, file or register, or cause the issuer
of such Pledged Securities to qualify, file or register, any of the Pledged
Securities owned or held by or on behalf of such Grantor under the Blue Sky or
other securities laws of such states as may be requested by the Administrative
Agent and keep effective, or cause to be kept effective, all such
qualifications, filings or registrations. 
Each of the Grantors will bear all costs and expenses of carrying out
its obligations under this Section.  Each
of the Grantors acknowledges that there is no adequate remedy at law for
failure by it to comply with the provisions of this Section and that such
failure would not be adequately compensable in damages, and therefore agrees
that its agreements contained in this Section may be specifically enforced.

 15
 

 

Section 13.                                      Security
Interest Absolute

To the fullest extent permitted by applicable law and
except as otherwise provided in Section 14, all rights of the Administrative
Agent hereunder, the Security Interest and all obligations of each of the
Grantors hereunder shall be absolute and unconditional irrespective of
(i) any lack of validity or enforceability of the Credit Agreement, any
other Loan Document, any agreement with respect to any of the Obligations or
any other agreement or instrument relating to any of the foregoing, (ii) any
change in the time, manner or place of payment of, or in any other term of, all
or any of the Obligations, or any other amendment or waiver of or any consent
to any departure from the Credit Agreement, any other Loan Document or any other
agreement or instrument relating to any of the foregoing, (iii) any exchange,
release or non-perfection of any Lien on any other collateral, or any release
or amendment or waiver of, or consent under, or departure from, any guaranty,
securing or guaranteeing all or any of the Obligations or (iv) any other circumstance
that might otherwise constitute a defense available to, or a discharge of, any
Grantor in respect of the Obligations or in respect of this Security Agreement
or any other Loan Document (other than a defense of the final payment in full
of the Obligations).

Section 14.                                      Termination
or Release

(a)                                  This
Security Agreement and the Security Interest shall terminate when all the
Obligations (other than contingent or indemnification obligations not then due)
have been paid in full and the Lenders and the Issuing Bank have no further
commitment to extend credit under the Credit Agreement.

(b)                                 Upon
(1) any sale, transfer or other disposition of any Collateral permitted under
the Loan Documents (other than any sale, transfer or other disposition of any
Collateral to another Grantor) or (ii) the effectiveness of any written consent
to the release of the security interest granted hereby in any Collateral pursuant
to Section 10.2(b) of the Credit Agreement, the security interest in such
Collateral shall be automatically released. 
In addition, if any of the Equity Interests in any Grantor are sold,
transferred to otherwise disposed of pursuant to a transaction permitted by the
Loan Documents and, immediately after giving effect thereto, such Grantor shall
no longer be the Borrower or a Subsidiary, then the obligations of such Person
under this Security Agreement and the security interests granted hereby in the
Collateral owned or held by or on behalf of such Person shall be automatically
released.

(c)                                  In
connection with any termination or release pursuant to paragraph (a) or (b) of
this Section, the Administrative Agent shall execute and deliver to the
applicable Grantor, at the expense of such Grantor, all releases and
authorizations to file Uniform Commercial Code termination statements and
similar documents that such Grantor shall reasonably request to evidence such
termination or release.  Any execution
and delivery of documents pursuant to this Section shall be without recourse to
or warranty by the Administrative Agent.

Section 15.                                      Notices

All communications and notices hereunder shall be in
writing and given as provided in Section 10.1 of the Credit Agreement.  All communications and notices hereunder to
the Borrower shall be given to it at the address for notices set forth in such
Section, and all communications 

 16
 

 

and notices hereunder to any other Grantor shall be
given to it at the address for notices set forth on Schedule I, with a copy to
the Borrower.

Section 16.                                      Binding
Effect; Several Agreement; Assignments

Whenever in this Security Agreement any of the parties
hereto is referred to, such reference shall be deemed to include the successors
and assigns of such party; and all covenants, promises and agreements by or on
behalf of any Grantor that are contained in this Security Agreement shall bind
and inure to the benefit of each party hereto and its successors and assigns.  This Security Agreement shall become
effective as to any Grantor when a counterpart hereof executed on behalf of
such Grantor shall have been delivered to the Administrative Agent and a
counterpart hereof shall have been executed on behalf of the Administrative
Agent, and thereafter shall be binding upon such Grantor and the Administrative
Agent and their respective successors and assigns, and shall inure to the benefit
of such Grantor, the Administrative Agent and the other Secured Parties, and
their respective successors and assigns, except that none of the Grantors shall
have the right to assign its rights or obligations hereunder or any interest
herein or in the Collateral (and any such attempted assignment shall be void),
except as expressly contemplated or permitted by this Security Agreement or the
other Loan Documents.  This Security
Agreement shall be construed as a separate agreement with respect to each of
the Grantors and may be amended, modified, supplemented, waived or released
with respect to any Grantor without the approval of any other Grantor and
without affecting the obligations of any other Grantor hereunder.

Section 17.                                      Survival
of Agreement, Severability

(a)                                  All
covenants, agreements, representations and warranties made by each of the
Grantors herein and in the certificates or other instruments prepared or
delivered in connection with or pursuant to this Security Agreement or any
other Loan Document shall be considered to have been relied upon by the Administrative
Agent and the other Secured Parties and shall survive the execution and delivery
of any Loan Documents, the making of any Loans and the issuance of any Letter
of Credit, regardless of any investigation made by the Secured Parties or on
their behalf, and shall continue in full force and effect until this Security
Agreement shall terminate.

(b)                                 In
the event any one or more of the provisions contained in this Security
Agreement or any other Loan Document should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein or therein shall not in any way be
affected or impaired thereby (it being understood that the invalidity of a
particular provision in a particular jurisdiction shall not in and of itself
affect the validity of such provision in any other jurisdiction).

Section 18.                                      GOVERNING
LAW

THIS SECURITY AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES UNDER THIS SECURITY AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 17
 

 

Section 19.                                      Counterparts

This Security Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original, but all of which, when taken together,
shall constitute a single contract (subject to Section 16), and shall become
effective as provided in Section 16. 
Delivery of an executed counterpart of this Security Agreement by
facsimile transmission or electronic photocopy (i.e., “pdf”) shall be as
effective as delivery of a manually executed counterpart of this Security
Agreement.

Section 20.                                      Headings

Section headings used herein are for convenience of
reference only, are not part of this Security Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this
Security Agreement.

Section 21.                                      Submission
to Jurisdiction:  Consent to Service of
Process

(a)                                  Each
party to this Security Agreement hereby irrevocably and unconditionally submits
for itself and its property in any legal action or proceeding relating to this
Security Agreement and the Loan Documents to which it is a party, or for
recognition and enforcement of any judgment in respect thereof, to the non exclusive
general jurisdiction of the courts of the State of New York, the courts of the
United States for the Southern District of New York, and appellate courts from
any thereof.

(b)                                 Each
party to this Security Agreement consents that any such action or proceeding
may be brought in such courts and waives any objection that it may now or
hereafter have to the venue of any such action or proceeding in any such court
or that such action or proceeding was brought in an inconvenient court and
agrees not to plead or claim the same.

(c)                                  Each
party to this Security Agreement agrees to service of process in the manner
provided for in Section 10.10(c) of the Credit Agreement.  Nothing in this Security Agreement will
affect the right of any party to this Security Agreement to serve process in
any other manner permitted by law.

(d)                                 Each
party to this Security Agreement agrees that nothing herein shall affect the
right to effect service of process in any other manner permitted by law or
shall limit the right to sue in any other jurisdiction. 

(e)                                  Each
party to this Security Agreement waives, to the maximum extent not prohibited
by law, any right it may have to claim or recover in any legal action or
proceeding referred to in this Section any special, exemplary, punitive or consequential
damages.

Section 22.                                      WAIVER
OF JURY TRIAL

EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING 

 18
 

 

TO THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT
AND FOR ANY COUNTERCLAIM THEREIN.

Section 23.                                      Additional
Grantors

Upon execution and delivery after the date hereof by
the Administrative Agent and a Subsidiary, Holding Company or Post-Exit
Borrower of an instrument in substantially the form of Annex 2, such Subsidiary
or Holding Company or Post-Exit Borrower shall become a Grantor hereunder with
the same force and effect as if originally named as a Grantor herein.  Upon any such execution and delivery by a
Holding Company, if designated as such in the instrument delivered by such
Holding Company, such Holding Company shall be the “Parent” for all purposes
hereunder.  Upon any such execution and
delivery by the Post-Exit Borrower, if designated as such in the instrument
delivered by the Post-Exit Borrower, the Post-Exit Borrower shall be the “Borrower”
for all purposes hereunder.  The
execution and delivery of any such instrument shall not require the consent of
any Grantor hereunder.  The rights and
obligations of each of the Grantors hereunder shall remain in full force and
effect notwithstanding the addition of any new Grantor as a party to this Security
Agreement.

Section 24.                                      Regulatory
Limitations

(a)                                  Notwithstanding
anything to the contrary contained in this Security Agreement, or any of the
documents executed pursuant hereto, neither the Administrative Agent nor any of
the Secured Parties shall take any action pursuant to this Security Agreement
or any other related documents that under existing laws, rules, regulations
and/or orders of the FCC, any State PUC or any other Governmental Authority
regulating the provision of communication services would constitute or result
in:

(i)                                     the
violation or breach of the terms of any governmental license, franchise or
authorization;

(ii)                                  the
exercise of any voting rights relating to the Collateral, even if an Event of
Default shall have occurred, without first obtaining all necessary regulatory
approvals of the FCC, any State PUC or any other Governmental Authority
regulating the provision of communication services for the assignment or
transfer of such voting rights; or

(iii)                               the
assignment of any governmental license, franchise or authorization or the
transfer of control of the holder of any governmental license, franchise or
authorization if the assignment of such governmental license, franchise or
authorization or such transfer of control thereof would require under such
laws, rules, regulations and/or orders the prior approval of the FCC, any State
PUC or any other Governmental Authority regulating the provision of
communication services, without first obtaining such approval.

(b)                                 If
any Event of Default shall have occurred, the Grantors shall take any action
which the Administrative Agent may reasonably request in the exercise of the
rights and remedies under this Security Agreement to transfer or assign the
Collateral to the Secured Parties or to such one or more third parties as the
Administrative Agent may designate, or to a combination 

 19
 

 

of the foregoing, by public or private sale, with the
exercise of control by any purchaser subject to obtaining any required prior
consent of the applicable Governmental Authority.

Section 25.                                      Licenses

The Grantors
shall, upon the occurrence and during the continuance of an Event of Default,
at the Administrative Agent’s request, promptly, and in any event within such
period of time as shall be reasonably requested by the Administrative Agent,
file or cause to be filed such applications for approval and shall take such
other actions reasonably required by the Administrative Agent to obtain such
FCC and other governmental approvals or consents as are necessary to transfer
ownership and control to the Administrative Agent, on behalf of the Secured
Parties, or their successors, assigns, transferees or designees of the FCC
licenses and other governmental approvals, franchises and permits held by the
Grantors.   To enforce the provisions of
this subsection, the Administrative Agent is empowered to request the
appointment of a receiver from any court of competent jurisdiction.   Such receiver shall be instructed to seek
from the FCC or any other Governmental Authority an involuntary transfer of
control of any such FCC license and other governmental approvals, franchises
and permits for the purpose of seeking a bona fide purchaser to whom control
will ultimately be transferred.  
Grantors shall authorize such an involuntary transfer upon the request
of the receiver so appointed and if the Grantors shall refuse to authorize the
transfer, their approval may be required by the court.  Upon the occurrence and during the
continuance of an Event of Default, at the Administrative Agent’s request, the
Grantors shall further use their commercially reasonable efforts to assist in
obtaining approval of the FCC or other Governmental Authority, if required, for
any action or transactions contemplated hereby, including, without limitation,
the preparation, execution and filing with the FCC of the assignor’s or
transferor’s portion of any application for consent to the assignment of any
FCC license or transfer of control necessary or appropriate under the FCC’s
rules and regulations for approval of the transfer or assignment of any portion
of the Collateral, together with any FCC License or other authorization.

The Grantors
acknowledge that the assignment or transfer of such FCC licenses and other
governmental approvals, franchises and permits is integral to the Secured
Parties’ realization of the value of the Collateral, that there is no adequate
remedy at law for failure by the Grantors to comply with the provisions of this
section and that such failure would not be adequately compensable in damages,
and therefore agree that this section may be specifically enforced.

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 20

 

IN WITNESS WHEREOF, the parties hereto have duly
executed this Security Agreement as of the day and year first above written.

	
  

  	
  INSIGHT MIDWEST HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest L.P., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P.,

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc.,

  its sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  INSIGHT MIDWEST, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P.,

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc.,

  its sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  COAXIAL
  COMMUNICATIONS OF CENTRAL 

  OHIO, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
						

 

 

 

	
  

  	
  INSIGHT
  COMMUNICATIONS OF CENTRAL 

  OHIO, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P., its 

  managing member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc.,

  its sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  INSIGHT PHONE OF OHIO, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications of Central Ohio, 

  LLC, its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P., its 

  manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc., its 

  sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
						

 

 

 

	
  

  	
  INSIGHT COMMUNICATIONS MIDWEST, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest Holdings, LLC, its sole 

  member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest, L.P., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P.,

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc.,

  its sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  INSIGHT PHONE OF ILLINOIS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Midwest, LLC, its 

  sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest Holdings, LLC, its sole 

  member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest, L.P., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P., its 

  sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc., its 

  sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
						

 

 

 

	
  

  	
  INSIGHT PHONE OF INDIANA, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Midwest, LLC, its 

  sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest Holdings, LLC, its sole 

  member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest, L.P., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P., its 

  sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc., its 

  sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  INSIGHT
  COMMUNICATIONS OF 

  KENTUCKY, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest Holdings, LLC, its sole 

  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest L.P., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P.,

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc.,

  its sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
						

 

 

 

	
  

  	
  INSIGHT KENTUCKY PARTNERS I, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications of Kentucky, L.P., 

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest Holdings, LLC, its sole 

  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest L.P., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P.,

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc.,

  its sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  INSIGHT KENTUCKY PARTNERS II, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Kentucky Partners I, L.P., its sole 

  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications of Kentucky, L.P., 

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest Holdings, LLC, its sole 

  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest L.P., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P.,

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc.,

  its sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
						

 

 

 

	
  

  	
  INSIGHT PHONE OF KENTUCKY, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Kentucky Partners II, L.P., its sole 

  member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Kentucky Partners I, L.P., its sole 

  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications of Kentucky, L.P., 

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest Holdings, LLC, its sole 

  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Midwest L.P., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, L.P.,

  its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Insight Communications Company, Inc.,

  its sole general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Abbot

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Abbot

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
						

 

 

INSIGHT MIDWEST HOLDINGS,
LLC

SECURITY AGREEMENT

	
  THE BANK OF NEW YORK, as

  
	
     Administrative Agent

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Stephen M. Nettler

  	
   

  	 

	
   

  	
  Name:

  	
  Stephen M. Nettler

  	 

	
   

  	
  Title:

  	
  Managing Director

  	 

					

 

 

SCHEDULE I TO THE SECURITY
AGREEMENT

GRANTORS

	
  Grantors

  	
   

  
	
   

  	
   

  
	
  Insight Midwest,
  L.P.

  	
   

  
	
  Insight Midwest
  Holdings, LLC

  	
   

  
	
  Coaxial
  Communications of Central Ohio, Inc.

  	
   

  
	
  Insight
  Communications of Central Ohio, LLC

  	
   

  
	
  Insight Phone of
  Ohio, LLC

  	
   

  
	
  Insight
  Communications Midwest, LLC

  	
   

  
	
  Insight Phone of
  Illinois, LLC

  	
   

  
	
  Insight Phone of
  Indiana, LLC

  	
   

  
	
  Insight
  Communications of Kentucky, L.P.

  	
   

  
	
  Insight Kentucky
  Partners I, L.P.

  	
   

  
	
  Insight Kentucky
  Partners II, L.P.

  	
   

  
	
  Insight Phone of
  Kentucky, LLC

  	
   

  
	
   

  	
   

  
	
  Address for Notices

  	
   

  
	
   

  	
   

  
	
  810 Seventh
  Avenue

  	
   

  
	
  New York, NY
  10019

  	
   

  
	
  Attn:  John Abbot

  	
   

  

 

 

ANNEX 1 TO THE SECURITY AGREEMENT

FORM OF PERFECTION CERTIFICATE

Reference is made to the Credit Agreement, dated as of
October 6, 2006, among Insight Midwest Holdings, LLC, the Lenders party
thereto, J.P. Morgan Securities Inc. and Bank of America, N.A., as
Co-Syndication Agents, Morgan Stanley Senior Funding, Inc., General Electric
Capital Corporation, Wachovia Bank, National Association and The Royal Bank of
Scotland plc, as Co-Documentation Agents, The Bank of New York, as
Administrative Agent, and J.P. Morgan Securities Inc. and Banc of America
Securities LLC, as Joint Lead Arrangers and Joint Book Runners (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”).

Capitalized terms used herein and not defined herein
shall have the meanings assigned to such terms in the Credit Agreement and the
Security Agreement (as defined in the Credit Agreement).

The undersigned, [the chief executive
officer / a Financial Officer] of each of the Borrower and the
Parent, hereby certifies to the Administrative Agent and each other Secured
Party as follows:

Section 1.               Names

(a)           The
legal name of each of the Grantors, as such name appears in its organizational
documents, is as follows:

[INSERT
RELEVANT INFORMATION]

(b)           Set
forth below is each other legal name each of the Grantors has had in the past
five years, together with the date of the relevant change:

[INSERT
RELEVANT INFORMATION]

(c)           Except
as set forth in Schedule 1 hereto, none of the Grantors has changed its
identity or organizational structure in any way within the past five
years.  Changes in identity or organizational
structure would include mergers, consolidations and acquisitions, as well as
any change in the form, nature or jurisdiction of organization.  If any such change has occurred, include in
Schedule 1 hereto the information required by Sections 1 and 2 of this certificate
as to each acquiree or constituent party to a merger or consolidation.

(d)           Set
forth below is the Federal Taxpayer Identification Number of each of the
Grantors:

[INSERT
RELEVANT INFORMATION]

(e)           Set
forth below is the organizational identification number of each of the
Grantors:

 

[INSERT
RELEVANT INFORMATION]

Section 2.               Current Locations

(a)           The
chief executive office of each of the Grantors is located at the address set
forth opposite its name below.

	
  Grantor

  	
   

  	
  Mailing Address

  	
   

  	
  County

  	
   

  	
  State

  
	
             

  	
   

  	
             

  	
   

  	
             

  	
   

  	
             

  
	
             

  	
   

  	
             

  	
   

  	
             

  	
   

  	
             

  
	
             

  	
   

  	
             

  	
   

  	
             

  	
   

  	
             

  

 

(b)           The
jurisdiction of incorporation or organization of each Grantor is set forth
below.

[INSERT RELEVANT INFORMATION]

Section 3.               File
Search Reports.  Attached hereto as
Schedule 3(A) are true copies of file search reports from the Uniform
Commercial Code filing offices where filings described in Section 4.16 of the
Credit Agreement are to be made. 
Attached hereto as Schedule 3(B) is a true copy of each financing
statement or other filing identified in such file search reports.

Section 4.               UCC
Filings.  Duly signed financing
statements on Form UCC-1 in substantially the form of Schedule 4 hereto have
been prepared for filing in the Uniform Commercial Code filing office in each
jurisdiction identified in Section 2(b) hereof.

Section 5.               Schedule
of Filings.  Attached hereto as
Schedule 5 is a schedule setting forth, with respect to the filings described
in Section 4 above, each filing and the filing office in which such filing is
to be made.

Section 6.               Pledged
Equity.  Attached hereto as Schedule
6 is a true and correct list of all of the Pledged Equity owned or held by or
on behalf of each of the Grantors, in each case setting forth the name of the
issuer of such Pledged Equity, the number of any certificate evidencing such
Pledged Equity, the registered owner of such Equity Interest, the number and
class of such Pledged Equity and the percentage of the issued and outstanding
Equity Interests of such class represented by such Pledged Equity.

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

IN WITNESS WHEREOF, the undersigned have duly executed
this certificate on this          day
of              ,
2006.

	
  

  	
  INSIGHT MIDWEST HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INSIGHT MIDWEST, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

 

ANNEX 2 TO THE SECURITY AGREEMENT

FORM OF SUPPLEMENT

SUPPLEMENT NO.    , dated as of                           ,
to the SECURITY AGREEMENT, dated as of October 6, 2006, among Insight
Midwest Holdings, LLC, a Delaware limited liability company, each of the
subsidiaries of the Borrower listed on Schedule I thereto, Insight Midwest,
L.P., a Delaware limited partnership, and The Bank of New York, as administrative
agent under the Credit Agreement referred to in the next paragraph (as amended,
supplemented or otherwise modified from time to time, the “Security
Agreement”).  Unless the context
otherwise requires, capitalized terms used herein and not defined herein shall
have the meanings assigned to such terms in the Security Agreement.

A.            Reference
is made to the Credit Agreement, dated as of October [  ], 2006,
among Insight Midwest Holdings, LLC, the Lenders party thereto, J.P. Morgan
Securities Inc. and Bank of America, N.A., as Co-Syndication Agents, Morgan
Stanley Senior Funding, Inc., General Electric Capital Corporation, Wachovia
Bank, National Association and The Royal Bank of Scotland plc, as
Co-Documentation Agents, The Bank of New York, as Administrative Agent, and
J.P. Morgan Securities Inc. and Banc of America Securities LLC, as Joint Lead Arrangers
and Joint Book Runners (as amended, supplemented or otherwise modified from
time to time, the “Credit Agreement”).

B.            The
Grantors have entered into the Security Agreement in order to induce the Lenders
to make Loans.  Section 23 of the
Security Agreement provides that additional Subsidiaries, Holding Companies or
the Post Exit Borrower may become Grantors under the Security Agreement by
execution and delivery of an instrument in substantially the form of this Supplement.  The undersigned Subsidiary, Holding Company
or Post Exit Borrower (the “New Grantor”) is executing this Supplement
in accordance with the requirements of the Credit Agreement to become a Grantor
under the Security Agreement in order to induce the Lenders to make additional
Loans and as consideration for Loans previously made and Letters of Credit
previously issued.

Accordingly, the Administrative Agent and the New
Grantor agree as follows:

Section 1.               In
accordance with Section 23 of the Security Agreement, the New Grantor by its
signature below becomes a Grantor under the Security Agreement with the same
force and effect as if originally named therein as a Grantor, and the New
Grantor hereby agrees to all the terms and provisions of the Security Agreement
applicable to it as a Grantor thereunder. 
In furtherance of the foregoing, the New Grantor, as security for the
payment and performance in full of the Obligations, does hereby create and
grant to the Administrative Agent (and its successors and assigns), for the
benefit of the Secured Parties (and their successors and assigns), a security
interest in and lien on all of the New Grantor’s right, title and interest in
and to the Collateral (as defined in the Security Agreement) of the New
Grantor.  Each reference to a 

 

“Grantor” in the Security Agreement shall be deemed to
include the New Grantor.  The Security
Agreement is hereby incorporated herein by reference.

Section 2.               The
New Grantor represents and warrants to the Administrative Agent and the other Secured
Parties that (i) this Supplement has been duly authorized, executed and
delivered by it and constitutes its legal, valid and binding obligation, enforceable
against it in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting
creditors’ rights generally and subject to general equitable principles
(whether enforcement is sought by proceedings in equity or at law) and the
implied laws of good faith and fair dealing, (ii) set forth on the Schedule
attached hereto is a true and complete schedule of all of the information that
would have been required to have been delivered by or on behalf of the New
Grantor pursuant to the Security Agreement, the Schedules thereto and the
Perfection Certificate if the New Grantor had been originally named in the
Security Agreement and (iii) the representations and warranties made by it as a
Grantor under the Security Agreement are true and correct in all material
respects on and as of the date hereof based upon the applicable information
referred to in clause (ii) of this Section (except (i) to the extent that such
representations and warranties relate to an earlier date, in which case such
representations and warranties shall be true and correct in all material
respects as of such earlier date and (ii) that any representation and warranty
that is qualified as to “materiality” or “Material Adverse Effect” shall be
true and correct in all respects).

Section 3.               This
Supplement may be executed in counterparts (and by each party hereto on a different
counterpart), each of which shall constitute an original, but both of which,
when taken together, shall constitute but one contract.  This Supplement shall become effective when
the Administrative Agent shall have received counterparts of this Supplement
that, when taken together, bear the signatures of the New Grantor and the
Administrative Agent.  Delivery of an
executed counterpart of this Supplement by facsimile transmission or electronic
photocopy (i.e., “pdf”) shall be as effective as delivery of a manually
executed counterpart of this Supplement.

Section 4.               Except
as expressly supplemented hereby, the Security Agreement shall remain in full
force and effect.

Section 5.               THIS
SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS SUPPLEMENT
SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW
OF THE STATE OF NEW YORK.

Section 6.               In
the event any one or more of the provisions contained in this Supplement should
be held invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein and in
the Security Agreement shall not in any way be affected or impaired thereby (it
being understood that the invalidity of a particular provision hereof in a
particular jurisdiction shall not in and of itself affect the validity of such
provision in any other jurisdiction).

Section 7.               All
communications and notices hereunder shall be in writing and given as provided
in Section 15 of the Security Agreement. 
All communications and notices 

 

hereunder to the New Grantor shall be given to it at
the address set forth in the Schedule hereto, with a copy to the Borrower.

Section 8.               The
New Grantor agrees to reimburse the Administrative Agent for its reasonable
out-of-pocket expenses in connection with this Supplement, including the reasonable
fees, disbursements and other charges of counsel for the Administrative Agent,
to the extent provided in the Security Agreement and the Credit Agreement.

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

IN WITNESS WHEREOF, the New Grantor and the
Administrative Agent have duly executed this Supplement No.    
to the Security Agreement as of the day and year first above written.

	
  

  	
  [Name of New Grantor]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE BANK OF NEW
  YORK, as

  	
   

  	
   

  
	
  Administrative Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
								

 

 

SCHEDULE TO SUPPLEMENT NO.       
TO SECURITY AGREEMENT

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