Document:

Exhibit
4.1

 

SINCLAIR BROADCAST GROUP, INC., as Issuer,

 

and

 

WACHOVIA BANK, NATIONAL ASSOCIATION, FORMERLY
FIRST UNION

NATIONAL BANK, as Trustee

 

 

NINTH SUPPLEMENTAL INDENTURE

 

Dated as of May 13, 2005

 

 

$166,851,650.00

 

6% Convertible Subordinated Debentures due
2012

 

 

 

TABLE OF CONTENTS

 

 

	
  PARTIES

  	
   

  
	
   

  	
   

  
	
  RECITALS

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  ONE

  	
  RELATION
  TO INDENTURE; GENERAL PROVISIONS

  	
   

  
	
   

  	
   

  
	
  Section
  101.

  	
  Relation
  to Indenture

  	
   

  
	
  Section
  102.

  	
  General
  Provisions

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  TWO

  	
  AMENDMENT
  TO THE INDENTURE

  	
   

  
	
   

  	
   

  
	
  Section
  201.

  	
  Definitions

  	
   

  
	
   

  	
  “1997 Indenture”

  	
   

  
	
   

  	
  “Change of Control”

  	
   

  
	
   

  	
  “Existing Indentures”

  	
   

  
	
   

  	
  “Existing Notes”

  	
   

  
	
   

  	
  “Fair Market Value”

  	
   

  
	
   

  	
  “Issue
  Date”

  	
   

  
	
   

  	
  “Payment Default”

  	
   

  
	
   

  	
  “Permitted Holders”

  	
   

  
	
   

  	
  “Restricted Subsidiary”

  	
   

  
	
   

  	
  “Senior Indebtedness”

  	
   

  
	
   

  	
  “Senior Subordinated
  Indebtedness”

  	
   

  
	
  Section
  202.

  	
  Other Definitions

  	
   

  
	
  Section
  203.

  	
  Establishment
  of Series

  	
   

  
	
  Section
  204.

  	
  Form
  of Debt Securities

  	
   

  
	
  Section 205.

  	
  Conversion
  Rights

  	
   

  
	
  Section 206.

  	
  Remedies

  	
   

  
	
  Section 207.

  	
  Supplemental
  Indentures

  	
   

  
	
  Section 208.

  	
  Change of
  Control

  	
   

  
	
  Section
  209.

  	
  Redemption
  of Debt Securities

  	
   

  
	
  Section 210.

  	
  Suspension of Payment When Senior
  Indebtedness in Default

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  THREE MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  Section 301.

  	
  Continued Effectiveness of
  Indenture

  	
   

  
	
  Section 302.

  	
  Purpose

  	
   

  
						

 

i

 

	
  Section 303.

  	
  Rights of Trustee

  	
   

  
	
  Section 304.

  	
  Successors and
  Assigns

  	
   

  
	
  Section 305.

  	
  Separability Clause

  	
   

  
	
  Section
  306.

  	
  Benefits
  of Ninth Supplemental Indenture

  	
   

  
	
  Section 307.

  	
  Governing Law

  	
   

  
	
  Section 308.

  	
  Counterparts

  	
   

  
	
  Section 309.

  	
  Effect of
  Headings and Table of Contents

  	
   

  
	
   

  	
   

  	
   

  
	
  TESTIMONIUM

  	
   

  
	
   

  	
   

  
	
  SIGNATURES
  AND SEALS

  	
   

  
	
   

  	
   

  
	
  ACKNOWLEDGMENTS

  	
   

  

 

ii

 

 

 

NINTH SUPPLEMENTAL
INDENTURE, dated as of May 13, 2005 (the “Ninth Supplemental Indenture”),
between SINCLAIR BROADCAST GROUP, INC., a Maryland corporation (the “Company”)
and WACHOVIA BANK, NATIONAL ASSOCIATION, FORMERLY FIRST UNION NATIONAL BANK, a
national banking association organized under the laws of the United States of
America, as trustee (the “Trustee”).

 

RECITALS OF THE
COMPANY

 

The Company has executed and delivered the Subordinated Indenture,
dated as of December 17, 1997 (the “Base Indenture”) to the Trustee to provide
for the future issuance of the Company’s unsecured subordinated debentures,
notes or other evidence of indebtedness (the “Securities”) thereto, to be
issued from time to time in one or more series as might be determined by the
Company under the Base Indenture, as may thereafter be supplemented;

 

Pursuant to the terms of the Base Indenture, the Company desires to
provide for the establishment of a new series of its Securities to be known as
its “6% Convertible Subordinated Debentures due 2012” (the “Debt Securities”),
the terms, provisions and conditions of such Debt Securities and the form
thereof to be set forth as provided in the Base Indenture as supplemented by
this Ninth Supplemental Indenture;

 

Section 901 of the Base Indenture provides, among other things, that
the Company and the Trustee may enter into indentures supplemental to the Base
Indenture without the consent of holders of Securities for, among other things,
the purpose of establishing the forms and terms of securities of any series as
permitted by Sections 201 and 301 thereof and to add to, change or eliminate
any of the provisions of the Base Indenture in respect of one or more series of
Securities to be issued thereunder; and

 

All things necessary to make the Debt Securities when executed by the
Company and authenticated and delivered by the Trustee, the valid and binding
obligations of the Company and to make this Ninth Supplemental Indenture a
valid and binding supplemental indenture and agreement according to its terms, have
been done;

 

NOW THEREFORE, in consideration of the premises and the purchase and
acceptance of the Debt Securities by the holders thereof, and for the purpose
of setting forth the terms, provisions and conditions of the Debt Securities
and the form thereof, the Company covenants and agrees with the Trustee as
follows:

 

1

 

ARTICLE ONE

RELATION TO INDENTURE;  GENERAL
PROVISIONS

 

Section 101.  Relation to Indenture. This Ninth
Supplemental Indenture constitutes an integral part of the Base Indenture but
is effective only with respect to the Debt Securities issued under the
Indenture.

 

Section 102.  General Provisions. For all purposes
of this Ninth Supplemental Indenture:

 

(a)                                  references herein to the Indenture shall
mean the Base Indenture as supplemented by this Ninth Supplemental Indenture;

 

(b)                                 a term defined in the Base Indenture has
the same meaning when used in this Ninth Supplemental Indenture unless
otherwise defined herein (in which case the definition set forth herein shall
govern);

 

(c)                                  a term defined anywhere in this Ninth
Supplemental Indenture has the same meaning throughout;

 

(d)                                 the singular includes the plural and vice
versa;

 

(e)                                  headings are for convenience of reference
only and do not affect interpretation;

 

(f)                                    all other terms used herein which are
defined in the Trust Indenture Act, either directly or by reference therein,
have the meanings assigned to them therein;

 

(g)                                 all accounting terms not otherwise
defined herein have the meanings assigned to them in accordance with GAAP;

 

(h)                                 the words “herein”, “hereof” and “hereunder”
and other words of similar import refer to this Indenture as a whole and not to
any particular Article, Section or other subdivision; and

 

(i)                                     all references to $, US$, dollars or
United States dollars shall refer to the lawful currency of the United States
of America.

 

2

 

ARTICLE TWO
                                                

AMENDMENT TO THE INDENTURE

 

Section 201.  Definitions. Section 101 of the
Indenture is amended so that the following definitions are amended, restated or
added in alphabetical order:

 

“1997
Indenture” means the Indenture, dated July 2, 1997,
between the Company, the guarantors signatory thereto and the Trustee, under
which the 9% Senior Subordinated Notes due 2007 were issued.

 

“Change of
Control”  means
the occurrence of any of the following events: 
(i) any “person” or “group” (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act), other than Permitted Holders, is or becomes
the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange
Act, except that a Person shall be deemed to have beneficial ownership of all
shares that such Person has the right to acquire, whether such right is
exercisable immediately or only after the passage of time), directly or
indirectly, of more than 40% of the total outstanding Voting Stock of the
Company, provided that the Permitted Holders “beneficially own” (as so
defined) a lesser percentage of such Voting Stock than such other Person and do
not have the right or ability by voting power, contract or otherwise to elect
or designate for election a majority of the Board of Directors of the Company;
(ii) during any period of two consecutive years, individuals who at the beginning
of such period constituted the Board of Directors of the Company (together with
any new directors whose election to such Board or whose nomination for election
by the shareholders of the Company, was approved by a vote of 66-2/3% of the
directors then still in office who were either directors at the beginning of
such period or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of such Board of
Directors then in office; (iii) the Company consolidates with or merges
with or into any Person or conveys, transfers or leases all or substantially
all of its assets to any Person, or any corporation consolidates with or merges
into or with the Company, in any such event pursuant to a transaction in which
the outstanding Voting Stock of the Company is changed into or exchanged for
cash, securities or other property, other than any such transaction where the
outstanding Voting Stock of the Company is not changed or exchanged at all
(except to the extent necessary to reflect a change in the jurisdiction of
incorporation of the Company) or where (A) the outstanding Voting Stock of
the Company is changed into or exchanged for (x) Voting Stock of the
surviving corporation which is not Disqualified Equity Interests or
(y) cash, securities and other property (other than Equity Interests of
the surviving corporation) in an amount which could be paid by the Company as a
Restricted Payment in accordance with Section 1009 of the 1997 Indenture as in
effect on September 23, 1997, without giving effect to any later
amendments thereto (and such amount shall be treated as a Restricted Payment
subject to the provisions described under

 

3

 

Section 1009 of the 1997
Indenture) and (B) no “person” or “group” other than Permitted Holders
owns immediately after such transaction, directly or indirectly, more than the
greater of (1) 40% of the total outstanding Voting Stock of the surviving
corporation and (2) the percentage of the outstanding Voting Stock of the
surviving corporation owned, directly or indirectly, by Permitted Holders
immediately after such transaction; or (iv) the Company is liquidated or
dissolved or adopts a plan of liquidation or dissolution other than in a transaction
which complies with the provisions described under Article Eight.

 

“Existing
Indentures”  means
the indentures relating to the Existing Notes.

 

“Existing
Notes”  means
the Company’s 10% Senior Subordinated Notes due 2003, the Company’s 10% Senior
Subordinated Notes due 2005 and the Company’s 9% Senior Subordinated Notes due
2007.

 

“Fair Market
Value”  means,
with respect to any asset or property, the sale value that would be obtained in
an arm’s-length transaction between an informed and willing seller under no
compulsion to sell and an informed and willing buyer under no compulsion to
buy.

 

“Issue Date”  means June 15, 2005.

 

“Payment
Default”  means
any default in payment of principal of, premium, if any, or interest on any
Senior Indebtedness.

 

“Permitted
Holders”  means
as of the date of determination (i) any of David D. Smith, Frederick G.
Smith, J. Duncan Smith and Robert E. Smith; (ii) family members or the
relatives of the Persons described in clause (i); (iii) any trusts created
for the benefit of the Persons described in clause (i), (ii) or (iv) or any
trust for the benefit of any such trust; or (iv) in the event of the
incompetence or death of any of the Persons described in clauses (i) and (ii),
such Person’s estate, executor, administrator, committee or other personal
representative or beneficiaries, in each case who at any particular date shall
beneficially own or have the right to acquire, directly or indirectly, Equity
Interests of the Company.

 

“Restricted
Subsidiary”  means
a Subsidiary subject to the covenants or events of default under the agreements
governing other indebtedness of the Company.

 

“Senior
Indebtedness”  is
defined as the principal of, premium, if any, and interest (including interest
accruing after the filing of a petition initiating any proceeding under any
state, federal or foreign bankruptcy law whether or not allowable as a claim in
such proceeding) on any Indebtedness of the Company (other than as otherwise
provided in this definition), whether outstanding on the date of this Indenture
or thereafter created, incurred or assumed, and whether at any time owing,
actually or contingently, unless, in

 

4

 

the case of any particular
Indebtedness, the instrument creating or evidencing the same or pursuant to
which the same is outstanding expressly provides that such Indebtedness shall
not be senior in right of payment to the Debt Securities.  Without limiting the generality of the
foregoing, “Senior Indebtedness” shall include (i) the principal of,
premium, if any, and interest (including interest accruing after the filing of
a petition initiating any proceeding under any state, federal or foreign
bankruptcy law whether or not allowable as a claim in such proceeding) and all
other obligations of every nature of the Company from time to time owed to the
lenders (or their agent) under the Bank Credit Agreement; provided, however,
that any Indebtedness under any refinancing, refunding or replacement of the
Bank Credit Agreement shall not constitute Senior Indebtedness to the extent
that the Indebtedness thereunder is by its express terms subordinate to any
other Indebtedness of the Company, (ii) Indebtedness outstanding under the
Founders’ Notes, (iii) existing and future Senior Subordinated Indebtedness of
the Company and (iv) Indebtedness under Interest Rate Agreements.  Notwithstanding the foregoing, “Senior
Indebtedness” shall not include (i) Indebtedness evidenced by the Debt
Securities, (ii) Indebtedness which when incurred and without respect to
any election under Section 1111(b) of Title 11 of the United States Code, is
without recourse to the Company, (iii) Indebtedness which is represented
by Disqualified Equity Interests, (iv) any liability for foreign, federal,
state, local or other taxes owed or owing by the Company, (v) Indebtedness of
the Company to the extent such liability constitutes Indebtedness to a
Subsidiary or any other Affiliate of the Company or any of such Affiliate’s
subsidiaries, and (vi) Indebtedness owed by the Company for compensation
to employees or for services.

 

“Senior
Subordinated Indebtedness”  means the Existing Notes and all other
Indebtedness ranking pari passu in right of payment with the Existing Notes.

 

Section 202.  Other Definitions.   Section 102 of the Indenture is amended so
that the following definitions are added in alphabetical order:

 

	
  Term

  	
   

  	
  Defined in

  Section 

  	
   

  
	
  “Change of Control Offer”

  	
   

  	
  1010

  	
   

  
	
  “Change of Control Purchase Date”

  	
   

  	
  1010

  	
   

  
	
  “Change of Control Purchase Notice”

  	
   

  	
  1010

  	
   

  
	
  “Change of Control Purchase Price”

  	
   

  	
  1010

  	
   

  

 

Section 203.  Establishment of Series.  There is hereby established, pursuant to the
authority granted under the Base Indenture, a series of Securities that shall
be known and designated as the “6% Convertible Subordinated Debentures due 2012”,
of the Company.  The Stated Maturity of
the Debt Securities shall be September 15, 2012, and

 

5

 

the Debt Securities shall each
bear interest at the rate of 6% from June 15, 2005, or from the most recent
Interest Payment Date to which interest has been paid, as the case may be,
payable on September 15, 2005 and quarterly thereafter on
December 15, March 15, June 15 and September 15 in each
year, until the principal thereof is paid or duly provided for.

 

The aggregate principal amount of Debt Securities
which may be authenticated and delivered is limited to $166,851,650.00 in
principal amount of Debt Securities, except for Debt Securities authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Debt Securities pursuant to Section 303, 304, 305, 306, 307, 906,
1010 or 1108 of the Base Indenture.

 

The principal of, premium, if any, and interest on the
Debt Securities shall be payable at the office or agency of the Company
maintained for such purpose; provided, however, that at the
option of the Company interest may be paid by check mailed to addresses of the
Persons entitled thereto as such addresses shall appear on the Security
Register.  If any of the Debt Securities
are held by the Depositary, payments of interest may be made by wire transfer
to the Depositary.  The Trustee is hereby
initially designated as the Paying Agent under this Indenture.

 

Article Fourteen of the Indenture - Guarantees - shall
not apply to the Debt Securities.

 

Article Four of the Indenture - Defeasance and
Covenant Defeasance - shall not apply to the Debt Securities.

 

The Debt Securities shall be redeemable as provided in
Article Eleven of the Indenture.  The
terms of redemption are set forth in the form of the Debt Security as set forth
in Section 204 of this Ninth Supplemental Indenture.

 

The Debt Securities shall be subordinated in right of
payment to Senior Indebtedness as provided in Article Twelve of the Indenture.

 

The Debt Securities shall be convertible into shares
of the Company’s Class A Common Stock as provided in Section 205 of this
Ninth Supplement Indenture.

 

The Debt Securities shall be redeemable, at the option
of the Holder, upon a Change of Control as provided in Section 208 of this
Ninth Supplemental Indenture.

 

6

 

Section 204.  Form of Debt Securities.   (a)  The form of the face of any
Debt Security authenticated and delivered hereunder shall be substantially as
follows:

 

SINCLAIR BROADCAST GROUP,
INC.

 

6% CONVERTIBLE SUBORDINATED DEBENTURE DUE 2012

 

	
  No.  1

  	
   

  	
  $  166,851,650

  

 

SINCLAIR BROADCAST GROUP, INC., a Maryland corporation
(herein called the “Company,” which term includes any successor Person under
the Indenture hereinafter referred to), for value received, hereby promises to
pay to CEDE & CO.
or registered assigns, the principal sum of One Hundred Sixty Six
Million Eight Hundred Fifty One Thousand Six Hundred Fifty United States
dollars ($166,851,650) on
September 15, 2012, at the office or agency of the Company referred to
below, and to pay interest thereon from June 15, 2005, or from the most recent
Interest Payment Date to which interest has been paid or duly provided for,
quarterly on September 15, December 15, March 15 and
June 15, in each year, commencing September 15, 2005 at the rate of 6% per
annum, in United States dollars, until the principal hereof is paid or duly
provided for.

 

The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in such Indenture,
be paid to the Person in whose name this Debt Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest, which shall be March 1, June 1,
September 1 and December 1 (whether or not a Business Day), as the
case may be, next preceding such Interest Payment Date.  Any such interest not so punctually paid, or
duly provided for, and interest on such defaulted interest at the interest rate
borne by the Debt Securities, to the extent lawful, shall forthwith cease to be
payable to the Holder on such Regular Record Date, and may be paid to the
Person in whose name this Debt Security (or one or more Predecessor Securities)
is registered at the close of business on a Special Record Date for the payment
of such defaulted interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Debt Securities not less than 10 days prior to such
Special Record Date, or may be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Debt
Securities may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture.

 

Payment of the principal of, premium, if any, and
interest on this Debt Security will be made at the office or agency of the
Company maintained for that purpose, in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts; provided, however, that payment of

 

7

 

interest may be made at the option of the Company by
check mailed to the address of the Person entitled thereto as such address
shall appear on the Security Register. 
If any of the Debt Securities are held by the Depositary, payments of
interest to the Depositary may be made by wire transfer to the Depositary.  Interest shall be computed on the basis of a
360-day year of twelve 30-day months.

 

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

 

Unless the certificate of authentication hereon has
been duly executed by the Trustee referred to on the reverse hereof or by the
authenticating agent appointed as provided in the Indenture by manual
signature, this Debt Security shall not be entitled to any benefit under the
Indenture, or be valid or obligatory for any purpose.

 

IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed by the manual or facsimile signature of its
authorized officers and its corporate seal to be affixed or reproduced hereon.

 

	
  Dated: June 15, 2005

  	
  SINCLAIR BROADCAST
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ David Smith

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
  [SEAL]

  	
   

  
	
   

  	
   

  
	
  /s/ J. Duncan Smith

  	
   

  	
   

  
	
  Secretary

  	
   

  	
   

  
							

 

(b)                                 The form of the reverse of the Debt
Securities shall be substantially as follows:

 

SINCLAIR BROADCAST GROUP,
INC.

 

6% CONVERTIBLE SUBORDINATED DEBENTURES DUE 2012

 

This Debt Security is one of a duly authorized issue
of Securities of the Company designated as its “6% Convertible Subordinated
Debentures due 2012” (herein called the “ Debt Securities”), limited (except as
otherwise provided in the Indenture referred to below) in aggregate principal
amount to $ 166,851,650  issued under an
indenture (herein called the “Indenture”), dated as of December 17, 1997, as
supplemented by the Ninth Supplemental Indenture thereto, dated as of May 13,
2005, among the Company and Wachovia Bank, National Association, formerly First
Union

 

8

 

National Bank, as trustee (herein called the “Trustee,”
which term includes any successor trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights, limitations of rights, duties,
obligations and immunities thereunder of the Company, the Trustee and the
Holders of the Debt Securities, and of the terms upon which the Debt Securities
are, and are to be, authenticated and delivered.

 

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

 

The Indenture contains provisions for conversion of
the Debt Securities, at the option of the Holder, into shares of Class A Common
Stock, par value $.01 per share, of the Company at any time prior to the
Maturity Date, at a conversion rate and under circumstances and conditions set
forth therein.

 

The Debt Securities are subject to redemption at any
time on or after December 15, 2000, at the option of the Company, in whole or
in part, on not less than 30 nor more than 60 days’ prior notice by first-class
mail in amounts of $1,000 or an integral multiple of $1,000 or such other
denominations as may be authorized by the Company at the following redemption
prices (expressed as a percentage of the principal amount), if redeemed during
the 12-month period beginning September 15 of the years indicated below
(December 15, in the case of 2000):

 

	
  Year

  	
   

  	
  Redemption 

  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2000

  	
   

  	
  104.20

  	
  %

  
	
  2001

  	
   

  	
  103.60

  	
   

  
	
  2002

  	
   

  	
  103.00

  	
   

  
	
  2003

  	
   

  	
  102.40

  	
   

  
	
  2004

  	
   

  	
  101.80

  	
  %

  
	
  2005

  	
   

  	
  101.20

  	
   

  
	
  2006

  	
   

  	
  100.60

  	
   

  
	
  2007 and
  thereafter

  	
   

  	
  100.00

  	
   

  

 

in each case together with accrued and unpaid
interest, if any, to the Redemption Date (subject to the right of Holders of
record on relevant Regular Record Dates to receive interest due on an Interest
Payment Date that is on or prior to the Redemption Date).  If less than all of the Debt Securities are
to be redeemed, the Trustee shall select the Debt Securities or portions
thereof to be redeemed pro rata, by lot or by any other method the Trustee
shall deem fair and reasonable.

 

9

 

Upon the occurrence of a Change of Control, each
Holder may require the Company to repurchase all or a portion of such Holder’s
Debt Securities in an amount of $1,000 or integral multiples of $1,000 or such
other denominations as may be authorized by the Company, at a purchase price in
cash equal to 100% of the principal amount thereof, together with accrued and
unpaid interest, if any, to the date of repurchase.

 

In the case of any redemption of Debt Securities,
interest installments whose Stated Maturity is on or prior to the Redemption
Date will be payable to the Holders of such Debt Securities of record as of the
close of business on the relevant record date referred to on the face
hereof.  Debt Securities (or portions
thereof) for whose redemption and payment provision is made in accordance with
the Indenture shall cease to bear interest from and after the date of
redemption.

 

In the event of redemption of this Debt Security in
part only, a new Debt Security or Debt Securities for the unredeemed portion
hereof shall be issued in the name of the Holder hereof upon the cancellation
hereof.

 

If an Event of Default shall occur and be continuing,
the principal amount of all the Debt Securities may be declared due and payable
in the manner and with the effect provided in the Indenture.

 

If this Debt Security is in certificated form, then as
provided in the Indenture and subject to certain limitations therein set forth,
the transfer of this Debt Security is registrable on the Security Register of
the Company, upon surrender of this Debt Security for registration of transfer
at the office or agency of the Company maintained for such purpose, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or its attorney duly authorized in writing, and thereupon one or
more new Debt Securities, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

 

If this Debt Security is a Global Security, except as
described below, it is not exchangeable for a Debt Security or Securities in
certificated form. The Securities will be delivered in certificated form if
(i) the Depositary ceases to be registered as a clearing agency under the
Exchange Act or is no longer willing or able to provide securities depository
services with respect to the Securities and a successor depositary is not
appointed by the Company within 90 days and (ii) the Company, in its sole
discretion, so determines and (iii) there shall have occurred an Event of
Default or an event which, with the giving of notice or lapse of time or both,
would constitute an Event of Default with respect to the Securities represented
by such Global Security and such Event of Default or event continues for a
period of 90 days.  Upon any such
issuance, the Trustee is required to register such certificated Debt Security
in the name of, and cause the same to be delivered to, such Person or Persons
(or the nominee of any thereof).

 

10

 

The Indenture permits, with certain exceptions
(including certain amendments permitted without the consent of any Holders) as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders under the Indenture at
any time by the Company and the Trustee with the consent of the Holders of a
specified percentage in aggregate principal amount of the Debt Securities at
the time Outstanding.  The Indenture also
contains provisions permitting the Holders of specified percentages in
aggregate principal amount of the Debt Securities at the time Outstanding, on
behalf of the Holders of all the Debt Securities, to waive compliance by the
Company with certain provisions of the Indenture and certain past Defaults
under the Indenture and their consequences. 
Any such consent or waiver by or on behalf of the Holder of this Debt
Security shall be conclusive and binding upon such Holder and upon all future
Holders of this Debt Security and of any Debt Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof
whether or not notation of such consent or waiver is made upon this Debt
Security.

 

No reference herein to the Indenture and no provision
of this Debt Security or of the Indenture shall alter or impair the obligation
of the Company which is absolute and unconditional, to pay the principal of,
premium, if any, and interest on this Debt Security at the times, place, and
rate, and in the coin or currency, herein prescribed, subject to the
subordination provisions of the Indenture.

 

The Debt Securities if issued in certificated form are
issuable only in registered form without coupons in denominations of $1,000 and
any integral multiple thereof or such other denominations as may be authorized
by the Company.  As provided in the
Indenture and subject to certain limitations therein set forth, the Debt
Securities are exchangeable for a like aggregate principal amount of Debt
Securities of a different authorized denomination, as requested by the Holder
surrendering the same.

 

No service charge shall be made for any registration
of transfer or exchange or redemption of Debt Securities, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

 

Prior to and at the time of due presentment of this
Debt Security for registration of transfer, the Company, the Trustee and any
agent of the Company or the Trustee may treat the Person in whose name this
Debt Security is registered as the owner hereof for all purposes (subject to
provisions with respect to record dates for the payment of interest), whether
or not this Debt Security is overdue, and neither the Company, the Trustee nor
any agent shall be affected by notice to the contrary.

 

THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO
THE CONFLICT OF LAWS PRINCIPLES THEREOF).

 

11

 

All terms used in this Debt Security which are defined
in the Indenture and not otherwise defined herein shall have the meanings
assigned to them in the Indenture.

 

(c)                            The form of conversion notice shall be
substantially as follows:

 

TO SINCLAIR BROADCAST GROUP, INC.:

 

The undersigned registered owner of this
Security hereby irrevocably exercises the option to convert this Security, or
the portion hereof (which is $1,000 or a multiple thereof or such other
denominations as may be authorized by the Company) designated below, into
shares of Class A Common Stock in accordance with the terms of the Indenture
referred to in this Security, and directs that the shares issuable and
deliverable upon the conversion, together with any check in payment for a
fractional share and any Security representing any unconverted principal name
has been provided below.  If this Notice
is being delivered on a date after the close of business on a Regular Record
Date and prior to the close of business on the related Interest Payment Date,
this Notice is accompanied by payment in same day funds, or other funds
acceptable to the Company, of an amount equal to the interest payable on such
Interest Payment Date on the principal of this Security to be converted (unless
this Security has been called for redemption). 
If shares or any portion of this Security not converted are to be issued
in the name of a person other than the undersigned, the undersigned will pay
all transfer taxes payable with respect thereto.  Any amount required to be paid by the
undersigned on account of interest accompanies this Security.

 

	
   

  	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature(s)

  	
   

  

 

Signature(s) must be guaranteed by an “eligible guarantor institution”
that is a bank, stockbroker, savings and loan association or credit union
meeting the requirements of the Trustee or agent responsible for conversion,
which requirements include the membership or participation in the Securities
Transfer Agents Medallion Program (“STAMP”) or such “signature guarantee
program” as may be determined by the Trustee in addition to, or in substitution
for, STAMP, all in accordance with the Securities Exchange Act of 1934, as
amended, if shares of Class A Common Stock

 

12

 

are to be delivered, or Securities are to be issued, other than to and
in the name of the registered owner.

 

	
   

  	
   

  
	
  Signature Guarantee

  	
   

  

 

Fill in for registration of shares of Class A Common Stock if they are
to be delivered, or Securities if they are to be issued, other than to and in
the name of the registered owner:

 

	
   

  	
   

  	
   

  
	
  (Name)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Street Address)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (City, State and zip code)

  	
   

  	
   

  
	
   

  	
   

  
	
  (Please print name and address

  	
   

  
	
   

  	
   

  
	
  Register:

  	
  o  Class A
  Common Stock

  	
   

  
	
   

  	
  o  Securities

  	
   

  
	
   

  	
   

  
	
  (Check appropriate line(s)).

  	
   

  
	
   

  	
   

  
	
   

  	
  Principal amount to be converted (if less than all):

  
	
   

  	
   

  
	
   

  	
  $       ,000

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Social Security or other Taxpayer

  Identification Number of owner

  	
   

  
							

 

Section
205.  Conversion Rights.   The following is added as Article Fifteen of
Indenture following Article Fourteen:

 

13

 

“ARTICLE FIFTEEN

 

CONVERSION OF THE
DEBT SECURITIES

 

Section 1501.  Conversion
Privilege and Conversion Price.  The
Holder of any Debt Security will have the right, at the Holder’s option, to
convert the principal amount thereof (or any portion thereof that is an
integral multiple of $1,000 or such other denomination as may be authorized by
the Company) into shares of Class A Common Stock at any time prior to Maturity,
initially at the conversion price in effect on the Series D Convertible
Exchangeable Preferred Stock, par value $.01 per share, of the Company at the
date of exchange of the Convertible Exchangeable Preferred Stock for Debt
Security (subject to adjustments as described in paragraphs (a), (b), (c), (d),
(e), (f) and (i) of Section 1504 below); provided except that if a Debt
Security is called for redemption, the conversion right will terminate on the
close of business on the second business day preceding the date fixed for
redemption.

 

Section 1502.  Exercise
of Conversion Privilege.  In order to
exercise the conversion privilege, the Holder of any Debt Security shall
surrender such Debt Security, duly endorsed or assigned to the Company or in
blank, at any office or agency of the Company maintained pursuant to Section
1002 of the Indenture, accompanied by written notice to the Company in the form
provided in the Debt Security (or such other notice as is acceptable to the
Company) at such office or agency that the Holder of Debt Securities elects to
convert such Debt Security or, if less than the entire principal amount thereof
is to be converted, the portion thereof to be converted.  Debt Securities surrendered for conversion
during the period from the close of business on any Regular Record Date next
preceding any Interest Payment Date to the close of business on such Interest
Payment Date shall (except in the case of Debt Securities or portions thereof
which have been called for redemption) be accompanied by payment in same day
funds of an amount equal to the interest payable on such Interest Payment Date
on the principal amount being surrendered for conversion.  Except as provided in the immediately
preceding sentence, no payment of interest or no adjustment in respect of
dividends shall be made upon any conversion of any Debt Security.

 

Debt Securities shall be deemed to have been converted
immediately prior to the close of business on the day of surrender of such Debt
Securities for conversion in accordance with the foregoing provisions, and at
such time the rights of the Holders of such Debt Securities as Holders shall
cease, and the Person or Persons entitled to receive the Class A Common Stock
issuable upon conversion shall be treated for all purposes of the record holder
or holders of such Class A Common Stock as and after such time.  As promptly as practicable on or after the
conversion date, the Company shall issue and shall deliver at such office or
agency a certificate or certificates for the number of full shares of Class A
Common Stock issuable upon conversion, together with payment in lieu of any
fraction of a share, as provided in Section 1503.

 

In the case of any Debt Security which is converted in
part only, upon such conversion the Company shall execute and the Trustee shall
authenticate and deliver to

 

14

 

the Holder thereof, at the expense of the Company, a
new Debt Security or Debt Securities of authorized denominations in aggregate
principal amount equal to the unconverted portion of the principal amount of
such Debt Security.

 

Section 1503.  Fractions
of Shares.  No fractional shares of
Class A Common Stock shall be issued upon conversion of Debt Securities unless
the Company determines to issue fractional shares.  If more than one Debt Security shall be
surrendered for conversion at one time by the same Holder, the number of full shares
which shall be issuable upon conversion thereof shall be computed on the basis
of the aggregate principal amount of the Debt Securities (or specified portions
thereof) so surrendered.  Instead of any
fractional share of such Class A Common Stock which would otherwise be issuable
upon conversion of any Debt Security or Debt Securities (or specified portions
thereof), the Company may pay a cash adjustment in respect of such fraction in
an amount equal to the same fraction of the Closing Price (as hereinafter
defined) at the close of business on the day of conversion (or, if such day is
not a Trading Day (as hereafter defined), on the Trading Day immediately
preceding such day).

 

Section 1504.  Adjustment
of Conversion Price.  (a)                                    In case the Company shall pay or make a
dividend or other distribution on Common Stock exclusively in Common Stock or
shall pay or make a dividend or other distribution on any other class of
capital stock of the Company which dividend or distribution includes Common
Stock, the conversion price in effect at the opening of business on the day
following the date fixed for the determination of shareholders entitled to
receive such dividend or other distribution shall be reduced by multiplying
such conversion price by a fraction of which the numerator shall be the number
of shares of Common Stock outstanding at the close of business on the date
fixed for such determination and the denominator shall be the sum of such
number of shares and the total number of shares constituting such dividend or
other distribution, such reduction to become effective immediately after the
opening of business on the day following the date fixed for such
determination.  For the purpose of this
paragraph (a), the number of shares of Common Stock at any time outstanding
shall not include shares held in the treasury of the Company.  The Company shall not pay any dividend or
make any distribution on shares of Common Stock held in the treasury of the
Company.

 

(b)                                 Subject to paragraph (g) of this Section,
in case the Company shall pay or make a dividend or other distribution on
Common Stock consisting exclusively of, or shall otherwise issue to all holders
of any class of Common Stock, rights or warrants entitling the holders thereof
to subscribe for or purchase shares of Common Stock at a price per share less
than the Current Market Price (determined as provided in paragraph (h) of this
Section) on the date fixed for the determination of shareholders entitled to
receive such rights or warrants, the conversion price in effect at the opening
of business on the day following the date fixed for such determination shall be
reduced by

 

15

 

multiplying such conversion price by a fraction of
which the numerator shall be the number of shares of Common Stock outstanding
at the close of business on the date fixed for such determination plus the
number of shares of Common Stock which the aggregate of the offering price of
the total number of shares of Common Stock so offered for subscription or
purchase would purchase at such Current Market Price and the denominator shall
be the number of shares of Common Stock outstanding at the close of business on
the date fixed for such determination plus the number of shares of Common Stock
so offered for subscription or purchase, such reduction to become effective
immediately after the opening of business on the day following the date fixed
for such determination.  For the purposes
of this paragraph (b), the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company.  The Company shall not issue any rights or
warrants in respect of shares of Common Stock held in the treasury of the
Company.

 

(c)                                  In case outstanding shares of Common
Stock shall be subdivided into a greater number of shares of Common Stock, the
conversion price in effect at the opening of business on the day following the
day upon which such subdivision becomes effective shall be proportionately
reduced, and, conversely, in case outstanding shares of Common Stock shall be
combined into a smaller number of shares of Common Stock, the conversion price
in effect at the opening of business on the day following the day upon which
such combination becomes effective shall be proportionately increased, such
reduction or increase, as the case may be, to become effective immediately
after the opening of business on the day following the day upon which
subdivision or combination becomes effective.

 

(d)                                 Subject to the last sentence of this
paragraph (d) and to paragraph (g) of this Section, in case the Company shall,
by dividend or otherwise, distribute to all holders of any class of Common
Stock evidences of its indebtedness, shares of any class of its capital stock,
cash or other assets (including securities, but excluding any rights or
warrants referred to in paragraph (b) of this Section, excluding any dividend
or distribution paid exclusively in cash and excluding any dividend or
distribution referred to in paragraph (a) of this Section), the conversion
price shall be reduced by multiplying the conversion price in effect
immediately prior to the close of business on the date fixed for the
determination of shareholders entitled to such distribution by a fraction of
which the numerator shall be the Current Market Price (determined as provided
in paragraph (h) of this Section) on such date less the fair market value (as
determined by the Board of Directors, whose determination shall be conclusive
and described in a Board Resolution) on such date of the portion of the
evidences of indebtedness, shares of capital stock, cash and other assets to be
distributed applicable to one share of Common Stock and the denominator shall
be such Current Market Price, such reduction to become effective immediately
prior to the opening of business on the day following such date.  If the Board of Directors determines the fair
market value of any distribution for purposes of this

 

16

 

paragraph (d) by reference to the actual or
when-issued trading market for any securities comprising part or all of such
distribution, it must in doing so consider the prices in such market over the
same period used in computing the Current Market Price pursuant to paragraph
(h) of this Section, to the extent possible. 
For purposes of this paragraph (d), any dividend or distribution that
includes shares of Common Stock, rights or warrants to subscribe for or
purchase shares of Common Stock or securities convertible into or exchangeable
for shares of Common Stock shall be deemed to be (x) a dividend or distribution
of the evidences of indebtedness, cash, assets or shares of capital stock other
than such shares of Common Stock, such rights or warrants or such convertible
or exchangeable securities (making any conversion price reduction required by
this paragraph (d)) immediately followed by (y) in the case of such shares of
Common Stock or such rights or warrants, a dividend or distribution thereof
(making any further conversion price reduction required by paragraph (a) and
(b) of this Section, except any shares of Common Stock included in such
dividend or distribution shall not be deemed “outstanding at the close of
business on the date fixed for such determination” within the meaning of paragraph
(a) of this Section), or (z) in the case of such convertible or exchangeable
securities, a dividend or distribution of the number of shares of Common Stock
as would then be issuable upon the conversion or exchange thereof, whether or
not the conversion or exchange of such securities is subject to any conditions
(making any further conversion price reduction required by paragraph (a) of
this Section, except the shares deemed to constitute such dividend or
distribution shall not be deemed “outstanding at the close of business on the
date fixed for such determination” within the meaning of paragraph (a) of this
Section).

 

(e)                                  In case the Company shall, by dividend or
otherwise, at any time distribute to all holders of any class of Common Stock
cash (excluding any cash that is distributed as part of a distribution referred
to in paragraph (d) of this Section or in connection with a transaction to
which Section 1511 applies) in an aggregate amount that, together with (A) the
aggregate amount of any other distributions to all holders of any class of
Common Stock made exclusively in cash within the 12 months preceding the date
fixed for the determination of shareholders entitled to such distribution and
in respect of which no conversion price adjustment pursuant to this paragraph
(e) has been made previously and (B) the aggregate of any cash plus the fair
market value (as determined by the Board of Directors, whose determination
shall be conclusive and described in a Board Resolution) as of such date of determination
of consideration payable in respect of any tender offer by the Company or a
Subsidiary for all or any portion of Common Stock consummated within the 12
months preceding such date of determination and in respect of which no
conversion price adjustment pursuant to paragraph (f) of this Section has been
made previously, exceeds 12.5% of the product of the Closing Price on such date
of determination times the number of shares of Common Stock outstanding on such
date, the conversion price shall be reduced by multiplying the conversion price
in effect immediately prior to the close of business on such date of
determination by a fraction of

 

17

 

which the numerator shall be the Current Market Price
(determined as provided in paragraph (h) of this Section) on such date less the
amount of cash to be distributed at such time and the amounts referred to in
clauses (A) and (B) above applicable to one share of Common Stock and the
denominator shall be such Current Market Price, such reduction to become
effective immediately prior to the opening of business on the day after such
date.

 

(f)                                    In case a tender offer made by the
Company or any Subsidiary for all or any portion of Common Stock shall be
consummated and such tender offer shall involve an aggregate consideration
having a fair market value (as determined by the Board of Directors, whose
determination shall be conclusive and described in a Board Resolution) as of
the last time (the “Expiration Time”) that tenders may be made pursuant to such
tender offer (as it shall have been amended) that, together with (A) the
aggregate of the cash plus the fair market value (as determined by the Board of
Directors, whose determination shall be conclusive and described in a Board
Resolution) as of the Expiration Time of the other consideration paid in
respect of any other tender offer by the Company or a Subsidiary for all or any
portion of Common Stock consummated within the 12 months preceding the
Expiration Time and in respect of which no conversion price adjustment pursuant
to this paragraph (f) has been made previously and (B) the aggregate amount of
any distributions to all holders of any class of Common Stock made exclusively
in cash within the 12 months preceding the Expiration Time and in respect of
which no conversion price adjustment pursuant to paragraph (e) of this Section
has been made previously, exceeds 12.5% of the product of the Closing Price
immediately prior to the Expiration Time times the number of shares of Common
Stock outstanding (including any tendered shares) at the Expiration Time, the
conversion price shall be reduced by multiplying the conversion price in effect
immediately prior to the Expiration Time by a fraction of which the numerator
shall be (x) the product of the Current Market Price (determined as provided in
paragraph (h) of this Section) immediately prior to the Expiration Time times
the number of shares of Common Stock outstanding (including any tendered
shares) at the Expiration Time minus (y) the fair market value (determined as
aforesaid) of the aggregate consideration payable to shareholders upon
consummation of such tender offer and the amounts referred to in (A) and (B)
above and the denominator shall be the product of (A) such Current Market Price
times (B) such number of outstanding shares at the Expiration Time minus the
number of shares accepted for payment in such tender offer (the “Purchased
Shares”), such reduction to become effective immediately prior to the opening
of business on the day following the Expiration Time; provided, that if
the number of Purchased Shares or the aggregate consideration payable therefor
have not been finally determined by such opening of business, the adjustment
required by this paragraph (f) shall, pending such final determination, be made
based upon the preliminarily announced results of such tender offer, and, after
such final determination shall have been made, the adjustment required by this
paragraph (f) shall be

 

18

 

made based upon the number of Purchased Shares and the
aggregate consideration payable therefor as so finally determined.

 

(g)                                 The reclassification of any class of
Common Stock into securities which include securities other than Common Stock
(other than any reclassification upon a consolidation or merger to which
Section 1511 applies) shall be deemed to involve (i) a distribution of such
securities other than Common Stock to all holders of such class of Common Stock
(and the effective date of such reclassification shall be deemed to be “the
date fixed for the determination of shareholders entitled to such distribution”
within the meaning of paragraph (d) of this Section), and (ii) a subdivision or
combination, as the case may be, of the number of shares of Common Stock
outstanding immediately prior to such reclassification into the number of
shares of Common Stock outstanding immediately thereafter (and the effective
date of such reclassification shall be deemed to be “the day upon which such
subdivision becomes effective” or “the day upon which such combination becomes
effective,” as the case may be, and “the day upon which such subdivision or
combination becomes effective” within the meaning of paragraph (c) of this
Section).

 

Rights or warrants issued by the Company to all
holders of any class of Common Stock entitling the holders thereof to subscribe
for or purchase shares of Common Stock (either initially or under certain
circumstances), which rights or warrants (i) are deemed to be transferred with
such shares of Common Stock, (ii) are not exercisable and (iii) are also issued
in respect of future issuances of Common Stock, in each case in clauses (i)
through (iii) until the occurrence of a specified event or events (“Trigger
Event”), shall for purposes of this Section 1504 not be deemed issued until the
occurrence of the earliest Trigger Event. 
If any such rights or warrants, including any such existing rights or
warrants distributed prior to the date of this Indenture, are subject to subsequent
events, upon the occurrence of each of which such rights or warrants shall
become exercisable to purchase different securities, evidences of indebtedness
or other assets, then the occurrence of each such event shall be deemed to be
such date of issuance and record date with respect to new rights or warrants
(and a termination or expiration of the existing rights or warrants without
exercise by the holder thereof).  In
addition, in the event of any distribution (or deemed distribution) of rights
or warrants, or any Trigger Event with respect thereto, that was counted for
purposes of calculating a distribution amount for which an adjustment to the
conversion price under this Section 1504 was made, (1) in the case of any such
rights or warrants which shall all have been redeemed or repurchased without
exercise by any Holders thereof, the conversion price shall be readjusted upon
such final redemption or repurchase to give effect to such distribution or
Trigger Event, as the case may be, as though it were a cash distribution, equal
to the per share redemption or repurchase price received by a holder or holders
of Common Stock with respect to such rights or warrants (assuming such holder
had retained such rights or warrants), made to all holders of Common Stock as
of the date of such redemption or

 

19

 

repurchase, and (2) in the case of such rights or
warrants which shall have expired or been terminated without exercise by any
holders thereof, the Conversion Price shall be readjusted as if such rights and
warrants had not been issued.

 

(h)                                 For the purpose of any computation under
this paragraph and paragraphs (b), (d) and (e) of this Section, the current
market price per share of Common Stock (the “Current Market Price”) on any date
shall be deemed to be the average of the daily Closing Prices for the 5
consecutive Trading Days before, and ending not later than, the date in
question; provided, however, that if the “ex” date for any event
(other than the issuance or distribution requiring such computation) that
requires an adjustment to the conversion price pursuant to paragraph (a), (b),
(c), (d), (e) or (f) above occurs on or after the 5th Trading Day prior to the
date in question and prior to the “ex” date for the issuance or distribution
requiring such computation, the Closing Price for each Trading Day prior to the
“ex” date for such other event shall be adjusted by multiplying such Closing
Price by the same fraction by which the conversion price is so required to be
adjusted as a result of such other event. 
For the purpose of any computation under paragraph (f) of this Section,
the Current Market Price on any date shall be deemed to be the average of the
daily Closing Prices for the 5 consecutive Trading Days commencing on or after
the latest (the “Commencement Date”) of (x) the date of commencement of the
tender offer requiring such computation and (y) the date of the last amendment,
if any, of such tender offer involving a change in the maximum number of shares
for which tenders are sought or a change in the consideration offered; provided,
however, that if the “ex” date for any event (other than the tender
offer requiring such computation) that requires an adjustment to the conversion
price pursuant to paragraph (a), (b), (c), (d), (e) or (f) above occurs on or
after the Commencement Date and prior to the Expiration Time for the tender
offer requiring such computation, the Closing Price for each Trading Day prior
to the “ex” date for such other event shall be adjusted by multiplying such
Closing Price by the same fraction by which the conversion price is so required
to be adjusted as a result of such other event. 
The closing price for any Trading Day (the “Closing Price”) shall be the
last reported sales price regular way or, in case no such reported sale takes
place on such day, the average of the reported closing bid and asked prices
regular way, in either case on the New York Stock Exchange or, if the Common
Stock is not listed or admitted to trading on such exchange, on the principal
national securities exchange on which the Common Stock is listed or admitted to
trading or, if not listed or admitted to trading on any national securities
exchange, on the Nasdaq Stock Market’s National Market or, if the Common Stock
is not listed or admitted to trading on any national securities exchange or
quoted on such National Market, the average of the closing bid and asked prices
in the over-the-counter market as furnished by any New York Stock Exchange
member firm selected from time to time by the Company for that purpose.  For purposes of this paragraph, the term “Trading
Day” means each Monday, Tuesday, Wednesday, Thursday and Friday, other than any
day on which securities are generally not traded on the applicable securities
exchange or in the applicable securities market and the term “‘ex’

 

20

 

date,” (A) when used with respect to any issuance or
distribution, means the first date on which the Common Stock trades regular way
on the relevant exchange or in the relevant market from which the Closing
Prices were obtained without the right to receive such issuance or
distribution, (B) when used with respect to any subdivision or combination of
shares of Common Stock, means the first date on which the Common Stock trades
regular way on such exchange or in such market after the time at which such
subdivision or combination becomes effective, and (C) when used with respect to
any tender offer means the first date on which the Common Stock trades regular
way on such exchange or in such market after the last time that tenders may be
made pursuant to such tender offer (as it shall have been amended).

 

(i)                                     The Company may make such reductions in
the conversion price, in addition to those required by paragraphs (a), (b),
(c), (d), (e) and (f) of this Section, (i) to the extent permitted by law, by
any amount for any period of at least 20 days or (ii) as it considers to be
advisable (as evidenced by a Board Resolution) in order that any event treated
for federal income tax purposes as a dividend of stock or stock rights shall
not be taxable to the recipients or, if that is not possible, to diminish any
income taxes that are otherwise payable because of such event.  Whenever the conversion price is reduced
pursuant to the preceding sentence, the Company shall mail to Holders a notice
of the reduction at least 15 days prior to the date the reduced conversion
price takes effect, and such notice shall state the reduced conversion price
and the period it will take effect.

 

(j)                                     No adjustment in the conversion price
shall be required unless such adjustment (plus any other adjustments not
previously made by reason of this paragraph (j)) would require an increase
or decrease of at least 1% in the conversion price; provided, however,
that any adjustments which by reason of this paragraph (j) are not required to
be made shall be carried forward and taken into account in any subsequent
adjustment.

 

(k)                                  Notwithstanding any other provision of
this Section 1504, no adjustment to the conversion price shall reduce the
conversion price below the then par value per share of the Class A Common
Stock, and any such purported adjustment shall instead reduce the conversion
price to such par value.  The Company
hereby covenants not to take any action to increase the par value per share of
the Class A Common Stock.

 

Section 1505.  Notice
of Adjustments of Conversion Price.   Whenever the conversion price is adjusted as
herein provided:

 

(a)   the Company shall compute the
adjusted conversion price in accordance with Section 1504 and shall prepare an
Officers’ Certificate signed by the Treasurer of the Company setting forth the
adjusted conversion price and showing in reasonable detail the facts upon which
such adjustment is based, and such certificate shall forthwith be

 

21

 

filed (with a copy to the Trustee) at each office or
agency maintained for the purpose of conversion of Debt Securities pursuant to
Section 1002 of the Indenture; and

 

(b)   a notice stating that the
conversion price has been adjusted and setting forth the adjusted conversion
price shall forthwith be prepared, and as soon as practicable after it is
prepared, such notice shall be mailed by the Company to all Holders at their
last addresses as they shall appear in the Security Register.  In the case of any adjustment pursuant to
Section 1504(h)(i), such notice shall be mailed at least 15 days before the
date the reduced conversion price shall take effect and shall state the reduced
conversion price and the period it will be in effect.

 

Section 1506.  Notice
of Certain Corporate Action.   In
case:

 

(a)                                  the Company shall declare a dividend (or
any other distribution) on Common Stock payable (i) otherwise than exclusively
in cash or (ii) exclusively in cash in an amount that would require a
conversion price adjustment pursuant to paragraph (e) of Section 1504; or

 

(b)                                 the Company shall authorize the granting
to the holders of any class of Common Stock rights or warrants to subscribe for
or purchase any shares of capital stock of any class or of any other rights
(excluding shares of capital stock or option for capital stock issued pursuant
to a benefit plan for employees, officers or directors of the Company); or

 

(c)                                  of any reclassification of Common Stock
(other than a subdivision or combination of the outstanding shares of Common
Stock), or of any consolidation, merger or share exchange to which the Company
is a party and for which approval of any stockholders of the Company is
required, or of the sale or transfer of all or substantially all of the assets
of the Company; or

 

(d)                                 of the voluntary or involuntary
dissolution, liquidation or winding up of the Company; or

 

(e)                                  the Company or any Subsidiary shall commence
a tender offer for all or a portion of outstanding shares of Common Stock (or
shall amend any such tender offer to change the maximum number of shares being
sought or the amount or type of consideration being offered therefor);

 

then the Company shall cause to be filed at each office or agency
maintained pursuant to Section 1002 of the Indenture, and shall cause to be
mailed to all Holders of Debt Securities at their last addresses as they shall
appear in the Security Register, at least 21 days (or 11 days in any case
specified in clause (a), (b) or (e) above) prior to the applicable record,
effective or expiration date hereinafter specified, a notice stating (x)

 

22

 

the date on which a record is to be taken for the purpose of such
dividend, distribution or granting of rights or warrants, or, if a record is
not to be taken, the date as of which the holders of Common Stock of record who
will be entitled to such dividend, distribution, rights or warrants are to be
determined, (y) the date on which such reclassification, consolidation, merger,
share exchange, sale, transfer, dissolution, liquidation or winding up is
expected to become effective, and the date as of which it is expected that
holders of Common Stock of record shall be entitled to exchange their shares of
Common Stock for securities, cash or other property deliverable upon such
reclassification, consolidation, merger, share exchange, sale, transfer,
dissolution, liquidation or winding up, or (z) the date on which such tender
offer commenced, the date on which such tender offer is scheduled to expire
unless extended, the consideration offered and the other material terms thereof
(or the material terms of any amendment thereto).  Neither the failure to give any such notice
nor any defect therein shall affect the legality or validity of any action
described in clauses (a) through (e) of this Section 1506.

 

Section 1507.  Company
to Reserve Class A Common Stock.   The Company shall at all times reserve and
keep available, free from preemptive rights, out of the authorized but unissued
Class A Common Stock or out of the Class A Common Stock held in treasury, for
the purpose of effecting the conversion of Debt Securities, the full number of
shares of Class A Common Stock then issuable upon the conversion of all
outstanding Debt Securities.

 

Section 1508.  Taxes
on Conversions.   The Company will
pay any and all taxes that may be payable in respect of the issue or delivery
of shares of Class A Common Stock on conversion of Debt Securities pursuant
hereto.  The Company shall not, however,
be required to pay any tax which may be payable in respect of any transfer
involved in the issue and delivery of shares of Class A Common Stock in a name
other than that of the Holder of the Debt Security or Debt Securities to be
converted, and no such issue or delivery shall be made unless and until the
Person requesting such issue has paid to the Company the amount of any such
tax, or has established to the satisfaction of the Company that such tax has
been paid.

 

Section 1509.  Covenant
as to Class A Common Stock.   The
Company covenants that all shares of Class A Common Stock which may be issued
upon conversion of Debt Securities will upon issue be fully paid and
nonassessable and, except as provided in Section 1508, the Company will pay all
taxes, liens and charges with respect to the issue thereof.

 

Section 1510. 
Cancellation of Converted Debt Securities.   All Debt Securities delivered for conversion
shall be delivered to the Trustee to be canceled by or at the direction of the
Trustee, which shall dispose of the same as provided in Section 1507 of the
Indenture.

 

23

 

Section 1511.  Provisions
of Consolidation, Merger or Sale of Assets.  In case of any reclassification of the Class A
Common Stock, any consolidation of the Company with, or merger of the Company
into, any other entity, any merger of any entity into the Company (other than a
merger that does not result in a reclassification, conversion, exchange or
cancellation of the outstanding shares of Class A Common Stock), any sale or
transfer of all or substantially all of the assets of the Company or any
compulsory share exchange whereby the Class A Common Stock is converted into
other securities, cash or other property, then the Holder of Debt Securities
then outstanding shall have the right thereafter, during the period that the
Debt Securities shall be convertible, to convert that Debt Security only into
the kind and amount of securities, cash and other property receivable upon the
reclassification, consolidation, merger, sale, transfer or share exchange by a
holder of the number of shares of Class A Common Stock into which the Debt
Securities would have been convertible immediately prior to the
reclassification, consolidation, merger, sale, transfer or share exchange.  The kind and amount of securities into or for
which the shares of Debt Securities will be convertible or redeemable after
consummation of such transaction will be subject to adjustment as described
above following the date of consummation of such transaction. The Company may
not become a party to any such transaction unless the terms thereof are consistent
with the foregoing and the surviving corporation in any such transaction agrees
in writing to comply with the terms of the foregoing.”

 

Section 206.  Remedies.   Sections 501 and 502 of the Indenture are
hereby replaced with the following for purposes of the Debt Securities only:

 

“Section 501.  Events
of Default.

 

“Event of Default”, wherever used herein, means any
one of the following events which has occurred and is continuing (whatever the
reason for such Event of Default and whether it shall be occasioned by the
provisions of Article Twelve or be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

 

(a)                                  there shall be a default in the payment
of any interest on any Debt Security when it becomes due and payable, and such
default shall continue for a period of 30 days;

 

(b)                                 there shall be a default in the payment
of the principal of (or premium, if any, on) any Debt Security at its Maturity
(upon acceleration, optional or mandatory redemption, required repurchase or
otherwise);

 

(c)                                  (i) there shall be a default in the
performance, or breach, of any covenant or agreement of the Company under this
Indenture applicable to the Debt

 

24

 

Securities (other than a
default in the performance or breach of a covenant or agreement which is
specifically dealt with in clause (a) or (b) or in clause (ii) or (iii) of this
clause (c)) and such default or breach shall continue for a period of 30 days
after written notice has been given, by certified mail, (1) to the Company
by the Trustee or (z) to the Company and the Trustee by the Holders of at
least 25% in aggregate principal amount of the Outstanding Debt Securities;
(ii) there shall be a default in the performance or breach of the
provisions of Article Eight of the Indenture; or (iii) the Company shall
have failed to make or consummate a Change of Control Offer in accordance with
the provisions of Section 1010 of the Indenture;

 

(d)                                 one or more defaults shall have occurred
under any agreements, indentures or instruments under which the Company or any
Restricted Subsidiary then has outstanding Indebtedness in excess of $5,000,000
in the aggregate and, if not already matured at its final maturity in
accordance with its terms, such Indebtedness shall have been accelerated;

 

(e)                                  there shall have been the entry by a
court of competent jurisdiction of (i) a decree or order for relief in
respect of the Company or any Restricted Subsidiary in an involuntary case or
proceeding under any applicable Bankruptcy Law or (ii) a decree or order
adjudging the Company or any Restricted Subsidiary bankrupt or insolvent, or
seeking reorganization, arrangement, adjustment or composition of or in respect
of the Company or any Restricted Subsidiary under any applicable federal or
state law, or appointing a custodian, receiver, liquidator, assignee, trustee,
sequestrator (or other similar official) of the Company or any Restricted
Subsidiary or of any substantial part of their respective properties, or
ordering the winding up or liquidation of their affairs, and any such decree or
order for relief shall continue to be in effect, or any such other decree or
order shall be unstayed and in effect, for a period of 60 consecutive days; or

 

(f)                                    (i) the Company or any Restricted
Subsidiary commences a voluntary case or proceeding under any applicable
Bankruptcy Law or any other case or proceeding to be adjudicated bankrupt or
insolvent, (ii) the Company or any Restricted Subsidiary consents to the
entry of a decree or order for relief in respect of the Company or such
Restricted Subsidiary in an involuntary case or proceeding under any applicable
Bankruptcy Law or to the commencement of any bankruptcy or insolvency case or
proceeding against it, (iii) the Company or any Restricted Subsidiary
files a petition or answer or consent seeking reorganization or relief under
any applicable federal or state law, (iv) the Company or any Restricted
Subsidiary (1) consents to the filing of such petition or the appointment
of, or taking possession by, a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company or such Restricted
Subsidiary or of any substantial part of its respective properties,
(2) makes an assignment for the benefit of creditors or (3) admits in
writing its inability to pay its debts generally

 

25

 

as they become due, or
(v) the Company or any Restricted Subsidiary takes any corporate action
authorizing any such actions in this paragraph (i).

 

The Company shall deliver to the Trustee within five
days after the occurrence thereof, written notice, in the form of an Officers’
Certificate, of any Default, its status and what action the Company is taking
or proposes to take with respect thereto. 
Unless the Corporate Trust Office of the Trustee has received written
notice of an Event of Default of the nature described in this Section, the
Trustee shall not be deemed to have knowledge of such Event of Default for the
purposes of Article Five or for any other purpose.

 

Section 502.  Acceleration of Maturity; Rescission and
Annulment. 

 

If an Event of Default (other than an Event of Default
specified in Sections 501(e) and (f)), shall occur and be continuing, the
Trustee or the Holders of not less than 25% in aggregate principal amount of
the Debt Securities Outstanding may, and the Trustee at the request of the
Holders of not less than 25% in aggregate principal amount of the Debt
Securities Outstanding shall, declare all unpaid principal of, premium, if any,
and accrued interest on all the Debt Securities to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by the Holders of the Debt Securities); provided that so long as the
Bank Credit Agreement is in effect, such declaration shall not become effective
until the earlier of (a) five Business Days after receipt of such notice of
acceleration from the Holders or the Trustee by the agent under the Bank Credit
Agreement or (b) acceleration of the Indebtedness under the Bank Credit
Agreement.  Thereupon the Trustee may, at
its discretion, proceed to protect and enforce the rights of the Holders of the
Debt Securities by appropriate judicial proceeding.  If an Event of Default specified in clause
(e) or (f) of Section 501 occurs and is continuing, then all the Debt
Securities shall ipso  facto become and be immediately due and
payable, in an amount equal to the principal amount of the Debt Securities,
together with accrued and unpaid interest, if any, to the date the Debt
Securities become due and payable, without any declaration or other act on the
part of the Trustee or any Holder.  The
Trustee or, if notice of acceleration is given by the Holders, the Holders
shall give notice to the agent under the Bank Credit Agreement of any such
acceleration.

 

At any time after such declaration of acceleration has
been made but before a judgment or decree for payment of the money due has been
obtained by the Trustee as hereinafter in this Article provided, the Holders of
a majority in aggregate principal amount of the Debt Securities Outstanding, by
written notice to the Company and the Trustee, may rescind and annul such
declaration and its consequences if:

 

(a)                                  the Company has paid or deposited with
the Trustee a sum sufficient to pay

 

26

 

(i)             all sums paid or advanced by the Trustee
under this Indenture and the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel,

 

(ii)          all overdue interest on all Debt
Securities,

 

(iii)       the principal of and premium, if any, on
any Debt Securities which have become due otherwise than by such declaration of
acceleration and interest thereon at a rate borne by the Debt Securities, and

 

(iv)      to the extent that payment of such interest is lawful,
interest upon overdue interest at the rate borne by the Debt Securities; and

 

(b)                                 all Events of Default, other than the
non-payment of principal of the Debt Securities which have become due solely by
such declaration of acceleration, have been cured or waived as provided in
Section 513.

 

No such rescission shall affect any subsequent Default
or impair any right consequent thereon provided in Section 513.”

 

Section 207.  Supplemental Indentures.
  Clauses (a), (b), (c), (d) and (e) of
Section 902 of the Indenture are hereby replaced with the following for
purposes of the Debt Securities only:

 

“(a)                      change the Stated Maturity of the
principal of, or any installment of interest on, any Debt Security, or reduce
the principal amount thereof or the rate of interest thereon or any premium, if
any, payable upon the redemption thereof, or change the coin or currency in
which the principal of any Debt Security or any premium, if any, or the
interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment after the Stated Maturity thereof (or, in the
case of redemption, on or after the Redemption Date);

 

(b)                           amend, change or modify the obligation of
the Company to make and consummate a Change of Control Offer in the event of a
Change of Control in accordance with Section 1010 of the Indenture, including,
amending, changing or modifying any definitions with respect thereto;

 

(c)                            reduce the percentage in principal amount
of the Outstanding Debt Securities, the consent of whose Holders is required
for any such supplemental indenture, or the consent of whose Holders is
required for any waiver or compliance with certain provisions of this Indenture
or certain defaults;

 

27

 

(d)                           modify any of the provisions of this
Section, Section 513 or Section 1009, except to increase the percentage in
principal amount of the Outstanding Debt Securities, the consent of whose
Holders is required for any such actions or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent
of the Holder of each Debt Security affected thereby;

 

(e)                            except as otherwise permitted under
Article Eight, consent to the assignment or transfer by the Company of any of
its rights and obligations under this Indenture; or

 

(f)                              amend or modify any of the provisions of
this Indenture relating to the subordination or conversion of the Debt
Securities in any manner adverse to the Holders of the Debt Securities.”

 

Section 208.  Change of
Control.   Section
1010, as set forth below, is added to Article Ten following Section 1009:

 

“Section 1010.  Purchase of Debt
Securities upon a Change of Control.

 

(a)                                  If a Change of Control shall occur at any
time, then each Holder of Debt Securities shall have the right to require that
the Company purchase such Holder’s Debt Securities in whole or in part in
integral multiples of $1,000, at a purchase price (the “Change of Control
Purchase Price”) in cash in an amount equal to 100% of the principal amount of
such Debt Securities, plus accrued and unpaid interest, if any, to the date of
purchase (the “Change of Control Purchase Date”), pursuant to the offer
described in subsection (c) of this Section (the “Change of Control Offer”) and
in accordance with the procedures set forth in Subsections (b), (c), (d) and
(e) of this Section.

 

(b)                                 Within 30 days following any Change of
Control, the Company shall notify the Trustee thereof and give written notice
(a “Change of Control Purchase Notice”) of such Change of Control to each
Holder by first-class mail, postage prepaid, at his address appearing in the
Security Register stating or including:

 

(1)                                  that a Change of Control has occurred,
the date of such event, and that such Holder has the right to require the
Company to repurchase such Holder’s Debt Securities at the Change of Control
Purchase Price;

 

(2)                                  the circumstances and relevant facts
regarding such Change of Control (including but not limited to information with
respect to pro forma historical income, cash flow and capitalization after
giving effect to such Change of Control);

 

(3)                                  (i) the most recently filed Annual
Report on Form 10-K (including audited consolidated financial statements)
of the Company, the

 

28

 

most recent subsequently filed Quarterly Report on
Form 10-Q, as applicable, and any Current Report on Form 8-K of the Company
filed subsequent to such Quarterly Report (or in the event the Company is not
required to prepare any of the foregoing Forms, the comparable information that
would have been provided had the Company been required to prepare such Forms),
(ii) a description of material developments in the Company’s business
subsequent to the date of the latest of such reports and (iii) such other
information, if any, concerning the business of the Company which the Company
in good faith believes will enable such Holders to make an informed investment
decision;

 

(4)                                  that the Change of Control Offer is being
made pursuant to this Section 1010(a) and that all Debt Securities properly
tendered pursuant to the Change of Control Offer will be accepted for payment
at the Change of Control Purchase Price;

 

(5)                                  the Change of Control Purchase Date which
shall be a Business Day no earlier than 30 days nor later than 60 days from the
date such notice is mailed, or such later date as is necessary to comply with
requirements under the Exchange Act;

 

(6)                                  the Change of Control Purchase Price;

 

(7)                                  the names and addresses of the Paying
Agent and the offices or agencies referred to in Section 1002;

 

(8)                                  that Debt Securities must be surrendered
on or prior to the Change of Control Purchase Date to the Paying Agent at the
office of the Paying Agent or to an office or agency referred to in Section
1002 to collect payment;

 

(9)                                  that the Change of Control Purchase Price
for any Debt Security which has been properly tendered and not withdrawn will
be paid promptly following the Change of Control Offer Purchase Date;

 

(10)                            the procedures for withdrawing a tender
of Debt Securities and Change of Control Purchase Notice;

 

(11)                            that any Debt Security not tendered will
continue to accrue interest; and

 

(12)                            that, unless the Company defaults in the
payment of the Change of Control Purchase Price, any Debt Security accepted for
payment pursuant to the Change of Control Offer shall cease to accrue interest
after the Change of Control Purchase Date.

 

29

 

(c)                                  Upon receipt by the Company of the proper
tender of Debt Securities, the Holder of the Debt Security in respect of which
such proper tender was made shall (unless the tender of such Debt Security is
properly withdrawn) thereafter be entitled to receive solely the Change of
Control Purchase Price with respect to such Debt Security.  Upon surrender of any such Debt Security for purchase
in accordance with the foregoing provisions, such Debt Security shall be
purchased by the Company at the Change of Control Purchase Price; provided,
however, that installments of interest whose Stated Maturity is on or
prior to the Change of Control Purchase Date shall be payable to the Holders of
such Debt Securities, or one or more Predecessor Securities, registered as such
on the relevant Regular Record Dates according to the terms and the provisions
of Section 309.  If any Debt Security
tendered for purchase shall not be so purchased upon surrender thereof, the
principal thereof (and premium, if any, thereon) shall, until paid, bear
interest from the Change of Control Purchase Date at the rate borne by such
Debt Security.  Holders electing to have
Debt Securities purchased will be required to surrender such Debt Securities to
the Paying Agent at the address specified in the Change of Control Purchase
Notice at least two Business Days prior to the Change of Control Purchase
Date.  Any Debt Security that is to be
purchased only in part shall be surrendered to a Paying Agent at the office of
such Paying Agent (with, if the Company, the Security Registrar or the Trustee
so requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Security Registrar or the Trustee, as the
case may be, duly executed by, the Holder thereof or such Holder’s attorney
duly authorized in writing), and the Company shall execute and the Trustee
shall authenticate and deliver to the Holder of such Debt Security, without
service charge, one or more new Debt Securities of any authorized denomination
as requested by such Holder in an aggregate principal amount equal to, and in
exchange for, the portion of the principal amount of the Debt Security so
surrendered that is not purchased.

 

(d)                                 The Company shall (i) not later than
the Change of Control Purchase Date, accept for payment Securities or portions
thereof tendered pursuant to the Change of Control Offer, (ii) not later
than 11:00 a.m. (New York City time) on the Change of Control Purchase Date,
deposit with the Paying Agent an amount of cash sufficient to pay the aggregate
Change of Control Purchase Price of all the Debt Securities or portions thereof
which are to be purchased as of the Change of Control Purchase Date and
(iii) not later than the Change of Control Purchase Date, deliver to the
Paying Agent an Officers’ Certificate stating the Debt Securities or portions
thereof accepted for payment by the Company. 
The Paying Agent shall promptly mail or deliver to Holders of Debt
Securities so accepted payment in an amount equal to the Change of Control
Purchase Price of the Debt Securities purchased from each such Holder, and the
Company shall execute and the Trustee shall promptly authenticate and mail or
deliver to such Holders a new Debt Security equal in principal amount to any
unpurchased portion of the Debt Security surrendered.  Any Securities not so accepted shall be
promptly mailed or delivered by the Paying Agent at the Company’s expense to
the Holder thereof.  The Company will

 

30

 

publicly announce the
results of the Change of Control Offer on the Change of Control Purchase
Date.  For purposes of this Section 1010,
the Company shall choose a Paying Agent which shall not be the Company.

 

(e)                                  A Change of Control Purchase Notice may
be withdrawn before or after delivery by the Holder to the Paying Agent at the
office of the Paying Agent of the Debt Security to which such Change of Control
Purchase Notice relates, by means of a written notice of withdrawal delivered
by the Holder to the Paying Agent at the office of the Paying Agent or to the
office or agency referred to in Section 1002 to which the related Change of
Control Purchase Notice was delivered not later than three Business Days prior
to the Change of Control Purchase Date specifying, as applicable:

 

(1)                                  the name of the Holder;

 

(2)                                  the certificate number of the Debt
Security in respect of which such notice of withdrawal is being submitted;

 

(3)                                  the principal amount of the Debt Security
(which shall be $1,000 or an integral multiple thereof unless the Company
determines to issue Debt Securities in smaller denominations) delivered for
purchase by the Holder as to which such notice of withdrawal is being submitted;
and

 

(4)                                  the principal amount, if any, of such
Debt Security (which shall be $1,000 or an integral multiple thereof) that
remains subject to the original Change of Control Purchase Notice and that has
been or will be delivered for purchase by the Company.

 

(f)                                    Subject to applicable escheat laws, as
provided in the Debt Securities, the Trustee and the Paying Agent shall return
to the Company any cash that remains unclaimed, together with interest or
dividends, if any, thereon, held by them for the payment of the Change of
Control Purchase Price; provided, however, that (x) to the
extent that the aggregate amount of cash deposited by the Company pursuant to
clause (ii) of paragraph (d) above exceeds the aggregate Change of Control
Purchase Price of the Debt Securities or portions thereof to be purchased, then
the Trustee shall hold such excess for the Company and (y) unless
otherwise directed by the Company in writing, promptly after the Business Day
following the Change of Control Purchase Date the Trustee shall return any such
excess to the Company together with interest, if any, thereon.

 

(g)                                 The Company shall comply with the
applicable tender offer rules, including Rule 14e-1 under the Exchange Act, and
any other applicable securities laws or regulations in connection with a Change
of Control Offer.”

 

31

 

Section 209.  Redemption of Debt Securities.
  In accordance with Article Eleven of
the Indenture, the following sets forth the terms and conditions on which the
Debt Securities may be redeemed:

 

“Section 1101.  Rights
of Redemption.

 

(a)  The Debt Securities may be redeemable,
at the Company’s option, in whole or from time to time in part, at any time on
or after December 15, 2000, upon not less than 30 nor more than 60 days’ prior
notice by first class mail to each Holder of Debt Securities to be redeemed at
its address appearing in the Security Register and prior to Maturity at the
following redemption prices (“Redemption Prices”) (expressed as percentages of
the principal amount) plus accrued interest to the dated fixed for such
redemption (the “Redemption Date”) (subject to the right of Holders of record
on the relevant Regular Record Date to receive interest due on an Interest
Payment Date that is on or prior to the Redemption Date).

 

(b)  If redeemed during the 12-month period
beginning September 15, in the year indicated (December 15, in the case of
2000), the Redemption Price shall be:

 

	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2000

  	
   

  	
  104.20

  	
  %

  
	
  2001

  	
   

  	
  103.60

  	
   

  
	
  2002

  	
   

  	
  103.00

  	
   

  
	
  2003

  	
   

  	
  102.40

  	
   

  
	
  2004

  	
   

  	
  101.80

  	
  %

  
	
  2005

  	
   

  	
  101.20

  	
   

  
	
  2006

  	
   

  	
  100.60

  	
   

  
	
  2007 and thereafter

  	
   

  	
  100.00

  	
   

  

 

Section 210.  Suspension of Payment When Senior
Indebtedness in Default.  Section 1203 (a) of the Indenture is
replaced with the following for purposes of the Debt Securities:

 

“(a)                                              Unless Section 1202 shall be applicable,
upon the occurrence of a Payment Default or non-payment default with respect to
Senior Indebtedness pursuant to which the maturity thereof has been
accelerated, no payment or distribution of any assets of the Company of any
kind or character (excluding Permitted Junior Securities) shall be made by the
Company on account of principal of, premium, if any, or interest on, the Debt
Securities or any other Indenture Obligations or on account of the purchase,
redemption, defeasance or other acquisition of or in respect of the Debt
Securities unless and until such Payment Default shall have been cured or
waived or shall have ceased to exist or the Designated Senior Indebtedness with
respect to which such Payment Default shall have occurred shall have been
discharged or paid in full in cash or Cash Equivalents or in any other form as
acceptable to the Holders of Senior Indebtedness, after which the

 

32

 

Company shall resume making any and all required
payments in respect of the Debt Securities, including any missed payments.”

 

ARTICLE THREE

 

MISCELLANEOUS

 

Section 301.  Continued
Effectiveness of Indenture.   Except as amended hereby, the Indenture shall
continue in full force and effect.

 

Section 302.  Purpose.
   The
purpose of this Ninth Supplemental Indenture is to effect the amendments set
forth herein.  The Company represents and
warrants that all the conditions and requirements necessary to make this Ninth Supplemental
Indenture, when duly executed and delivered, a valid and binding agreement in
accordance with its terms and for the purposes herein expressed, have been
performed and fulfilled.

 

Section 303.  Rights
of Trustee.   The
Trustee executes this Ninth Supplemental Indenture only on the condition that
it shall have and enjoy with respect thereto all of the rights, duties, and
immunities as set forth in the Indenture.

 

Section 304.  Successors and Assigns.
  All covenants and agreements in this Ninth
Supplemental Indenture by the Company and the Guarantors shall bind their
respective successors and assigns, whether or not so expressed.

 

Section 305.  Separability
Clause.   In case any provision in this Ninth Supplemental
Indenture shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

Section 306.  Benefits of Ninth Supplemental Indenture.    Nothing in this Ninth Supplemental Indenture
or in the related Debt Securities, express or implied, shall give to any
Person, other than the parties hereto and their successors hereunder, any
Paying Agent and the Holders of Debt Securities of any series created on or
after the date hereof, any benefit or any legal or equitable right, remedy or
claim under this Ninth Supplemental Indenture.

 

Section 307.  Governing
Law.   This Ninth
Supplemental Indenture shall be governed by and construed in accordance with
the laws of the State of New York applicable to agreements made and to be
performed in said state.

 

Section 308.  Counterparts.    The
Ninth Supplemental Indenture may be executed in any number of counterparts,
each of which so executed shall be deemed to be

 

33

 

an original, but all such counterparts shall together constitute one
and the same instrument.

 

Section 309.  Effect
of Headings and Table of Contents.   The
Article and Section headings are for convenience only and shall not affect the
construction hereof.

 

34

 

IN WITNESS WHEREOF, the parties hereto have caused this Ninth
Supplemental Indenture to be duly executed, all as of the day and year first
above written.

 

	
   

  	
  SINCLAIR BROADCAST GROUP,
  INC.,

  
	
   

  	
  as
  Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest

  	
  /s/ Lucy Rutishauser

  	
   

  	
  By: 

  	
  /s/ David B. Amy

  	
   

  
	
   

  	
  Name: Lucy Rutishauser

  	
   

  	
  Name: David B. Amy

  
	
   

  	
  Title: VP Corporate
  Finance and Treasurer

  	
   

  	
  Title: Executive Vice
  President and CFO

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
  TRUSTEE:

  
	
   

  	
   

  
	
   

  	
  WACHOVIA BANK, NATIONAL

  ASSOCIATION (FORMERLY FIRST UNION

  NATIONAL BANK),

  
	
   

  	
  AS TRUSTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ James D. Mahone

  	
   

  	
  By:

  	
  /s/ Lee B. Bedell

  	
  (SEAL)

  
	
   

  	
   

  	
  Lee B. Bedell, Vice President

  
									

 

35

 

	
  STATE OF MARYLAND)

  
	
   

  	
  ) ss.:

  
	
  COUNTY OF BALTIMORE)

  

 

On the 13 day of May, 2005, before me personally came David
B. Amy, to me known, who, being by me duly sworn, did depose and say that he
resides at 10706 Beaver Dam Road, Hunt Valley, Maryland; that he is Executive
Vice President of Sinclair Broadcast Group, Inc., the corporation
described in and which executed the foregoing instrument; and that he signed
his name thereto pursuant to authority of the Board of Directors of such
corporation.

 

	
   

  	
  (NOTARIAL

  	
   SEAL)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Vicky D. Evans

  	
   

  
	
   

  	
  Vicky D. Evans

  
	
   

  	
  Commission Expiration
  8/1/2006

  
				

 

36

 

	
  CITY
  OF RICHMOND

  
	
  ss:

  
	
  COMMONWEALTH
  OF VIRGINIA :

  

 

I HEREBY CERTIFY that on
this 13 of May, 2005 before me, the subscriber, a Notary Public in and for the
jurisdiction aforesaid, personally appeared in said jurisdiction Lee Bedell
personally well known to me (or satisfactorily proven) to be the Vice President
of Wachovia Bank, National Association, a national banking association, and
personally well known to me (or satisfactorily proven) to be the person who
executed the foregoing instrument; and acknowledged that, having authority so
to do, he/she executed the foregoing instrument as the act and deed of said
bank for the purposes therein contained, and delivered the same as such.

 

	
  WITNESS
  my hand and Notarial Seal the year and day first above written.

  
	
  /s/
  Elizabeth A. Blanchard

  	
   

  
	
  Notary
  Public

  
	
  My
  commission expires: 10/31/2005

  

 

37Exhibit 10.1

 

	
   

  	
  Leslie
  J. Browne, Ph.D.

  
	
   

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  
	
  June 15,
  2005

  	
   

  
			

 

Michio Soga

10 Beachtree Lane

Princeton, NJ 
08540

 

Dear Mich:

 

I am pleased to offer you the following opportunity with Pharmacopeia
Drug Discovery, Inc.  It is my
sincere hope that you will choose to join our organization, as it is our belief
that you possess the ability to make significant contribution toward our future
growth and innovation.  The following
will confirm the terms of our offer of employment to you:

 

Position/Location:
You will assume the position of Executive Vice President and Chief Financial
Officer (the “Position”), based
in our Princeton, NJ headquarters and in this position will report directly to
me. 
The Position shall be part of the Company’s executive management team
(EMT) and shall require you to assume responsibility for duties generally
associated with the Executive Vice President and Chief Financial Officer
position.

 

Compensation:
Your compensation in the Position
will include an annual base salary of $300,000, paid semi-monthly at the rate
of $12,500.00 per pay period.  This will
be your base salary through 2005 and until our 2006 Salary Review effective March 1,
2006.  Upon your actual start date, you
will participate in our annual management incentive program and will be
eligible to earn, at target, an additional 35% of your base salary based upon
the achievement of corporate and individual objectives.  For 2005, this target will be prorated based
on the number of full months you are an employee of the Company.  In addition, you will be paid a one-time
bonus of $20,000 upon commencement of your employment with us.

 

Employment and Benefits:
As an employee of Pharmacopeia, you will participate in our comprehensive
employee benefits package.  We are
committed to maintaining a competitive position in the employment marketplace
and in doing so make available to you the standard employee benefits package
provided to employees. This will include, but is not limited to, health,
disability, and life insurance; participation in our 401(k) retirement plan;
vacation benefits, and participation in our stock option plan.  Additionally, you will be eligible to
participate in our Executive Life and LTD plans.  Please find a complete summary of our
benefits enclosed for your review.

 

Pharmacopeia Drug Discovery, Inc.
•  PO Box 5350 • Princeton, New Jersey 08543-5350

609/452-3738 •
lbrowne@pharmacop.com •
609/452-3672 (fax)

 

 

Severance Provisions:
We will provide a separate agreement
that details our mutual obligations and commitments upon the termination of
your employment.

 

Incentive Stock Option Grant:
Upon joining the Company, you will be given an option for 200,000 shares of Company common stock pursuant to the
terms of the Company’s 2004 Stock Incentive Plan (the “Plan”).  The option will be memorialized in an option
agreement with standard terms consistent with this letter agreement and your
severance agreement.  The option will
vest over a 4-year period, 25% at the end of the first year and monthly
thereafter.  The option will be priced at
the market close price on your first day of employment with us.  The term of the option will be 10 years,
beginning on your first day of employment with us.  A form of option Award Notice is enclosed
with this letter.  In the event of a
consolidation, merger, reorganization, or sale of all, or substantially all, of
the assets or capital stock of the Company or other business combination in
which the Plan is not either continued or assumed, the above option will vest
in full.  

 

Vacation:  You will receive four weeks vacation
annually.

 

Reimbursement of Expenses:  The Company shall reimburse you for all
normal items of travel, entertainment and other business expenses reasonably
incurred by you on behalf of the Company. 
These expenses shall include continuing education costs (and related
travel costs) for finance professionals reasonably necessary to maintain your
professional skills and relevant professional organization membership and other
fees.  Such expenses shall be documented
and submitted to the Company in accordance with the reimbursement policies of
the Company in effect from time to time.

 

Attorney Fees:  The Company agrees to pay the reasonable
legal fees you incur in the negotiation and execution of this agreement, in an
amount not to exceed $5,000.

 

Confidentiality:  Due to the nature of your responsibilities,
you will be required to execute the Company’s Invention and Non-Disclosure
Agreement upon commencement of your employment with Pharmacopeia Drug Discovery, Inc.  We enclose a copy of this Agreement for your
review.

 

Consideration and Response Times:
We would appreciate a response to this offer no later than June 16, 2005.

 

Start Date: We
will mutually agree to a start date and propose it to be June 16, 2005.

 

2

 

This letter supersedes any prior or contrary representations that may
have been made by Pharmacopeia Drug Discovery, Inc.  The terms of this offer may be amended only
in writing and signed by you and me. 
This offer is subject to satisfactory documentation with respect to your
identification and right to work in the United States.  Please sign and return one copy of the
letter.

 

We look forward to your participation as a member of the Pharmacopeia
team and your involvement in what we are confident represents an exciting and
professionally rewarding venture.

 

 

	
   

  	
  On Behalf of Pharmacopeia Drug
  Discovery, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Leslie
  J. Browne

  	
   

  
	
   

  	
  Leslie J. Browne, PhD

  
	
   

  	
  President & CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signed and agreed by:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/ Michio Soga

  	
   

  
	
   

  	
  Michio Soga

  

 

3

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