Document:

Exhibit 10.1

 

 

CREDIT AGREEMENT

$172,500,000

Dated as of August 11, 2006

among

 

BARRINGTON BROADCASTING GROUP LLC,

as Borrower,

 

and

 

BARRINGTON BROADCASTING LLC,

as Parent Guarantor,

 

BANK OF AMERICA, N.A.,

as Administrative Agent, Swing Line Lender,

L/C Issuer and Collateral Agent,

 

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Syndication Agent,

 

CIT LENDING SERVICES CORPORATION,

as Documentation Agent

 

The Lenders Party Hereto

 

and

 

BANC OF AMERICA SECURITIES LLC
and

WACHOVIA CAPITAL MARKETS, LLC,

as Joint Lead Arrangers and Joint Bookrunning Managers

CAHILL GORDON & REINDEL LLP

80 Pine Street

New York, New York  10005

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE I

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DEFINITIONS AND ACCOUNTING TERMS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.01

  	
   

  	
  Defined Terms

  	
   

  	
  2

  
	
  1.02

  	
   

  	
  Other Interpretive Provisions

  	
   

  	
  43

  
	
  1.03

  	
   

  	
  Accounting Terms

  	
   

  	
  43

  
	
  1.04

  	
   

  	
  Rounding

  	
   

  	
  44

  
	
  1.05

  	
   

  	
  Times of Day

  	
   

  	
  44

  
	
  1.06

  	
   

  	
  Letter of Credit Amounts

  	
   

  	
  44

  
	
  1.07

  	
   

  	
  Resolution of Drafting Ambiguities

  	
   

  	
  44

  
	
  1.08

  	
   

  	
  Effectuation of Transactions

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE II

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE COMMITMENTS AND CREDIT EXTENSIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.01

  	
   

  	
  Term Loans and Revolving Loans

  	
   

  	
  45

  
	
  2.02

  	
   

  	
  Borrowings, Conversions and Continuations of Revolving Loans and Term
  Loans.

  	
   

  	
  46

  
	
  2.03

  	
   

  	
  Letters of Credit

  	
   

  	
  47

  
	
  2.04

  	
   

  	
  Swing Line Loans

  	
   

  	
  55

  
	
  2.05

  	
   

  	
  Prepayments

  	
   

  	
  58

  
	
  2.06

  	
   

  	
  Termination or Reduction of Commitments

  	
   

  	
  60

  
	
  2.07

  	
   

  	
  Repayment of Loans

  	
   

  	
  61

  
	
  2.08

  	
   

  	
  Interest

  	
   

  	
  62

  
	
  2.09

  	
   

  	
  Fees

  	
   

  	
  63

  
	
  2.10

  	
   

  	
  Computation of Interest and Fees

  	
   

  	
  64

  
	
  2.11

  	
   

  	
  Evidence of Debt

  	
   

  	
  64

  
	
  2.12

  	
   

  	
  Payments Generally; Administrative Agent’s Clawback

  	
   

  	
  65

  
	
  2.13

  	
   

  	
  Sharing of Payments by Lenders

  	
   

  	
  66

  
	
  2.14

  	
   

  	
  Incremental Term Loan Commitments

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE III

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TAXES, YIELD PROTECTION AND ILLEGALITY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.01

  	
   

  	
  Taxes

  	
   

  	
  70

  
	
  3.02

  	
   

  	
  Illegality

  	
   

  	
  72

  
	
  3.03

  	
   

  	
  Inability To Determine Rates

  	
   

  	
  73

  
	
  3.04

  	
   

  	
  Increased Costs; Reserves on Eurodollar Rate Loans

  	
   

  	
  73

  
	
  3.05

  	
   

  	
  Compensation for Losses

  	
   

  	
  74

  
	
  3.06

  	
   

  	
  Mitigation Obligations; Replacement of Lenders

  	
   

  	
  75

  

 

i

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.07

  	
   

  	
  Matters Applicable to Requests for Compensation

  	
   

  	
  75

  
	
  3.08

  	
   

  	
  Survival

  	
   

  	
  76

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE IV

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.01

  	
   

  	
  Conditions of Initial Credit Extension

  	
   

  	
  76

  
	
  4.02

  	
   

  	
  Conditions to All Credit Extensions

  	
   

  	
  80

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE V

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.01

  	
   

  	
  Existence, Qualification and Power; Compliance with Laws

  	
   

  	
  81

  
	
  5.02

  	
   

  	
  Authorization; No Contravention

  	
   

  	
  81

  
	
  5.03

  	
   

  	
  Governmental Authorization; Other Consents

  	
   

  	
  82

  
	
  5.04

  	
   

  	
  Binding Effect

  	
   

  	
  82

  
	
  5.05

  	
   

  	
  Financial Statements; No Material Adverse Effect

  	
   

  	
  82

  
	
  5.06

  	
   

  	
  Litigation

  	
   

  	
  83

  
	
  5.07

  	
   

  	
  No Default

  	
   

  	
  83

  
	
  5.08

  	
   

  	
  Properties

  	
   

  	
  83

  
	
  5.09

  	
   

  	
  Environmental Matters

  	
   

  	
  84

  
	
  5.10

  	
   

  	
  Insurance

  	
   

  	
  85

  
	
  5.11

  	
   

  	
  Taxes

  	
   

  	
  85

  
	
  5.12

  	
   

  	
  ERISA Compliance

  	
   

  	
  86

  
	
  5.13

  	
   

  	
  Subsidiaries; Equity Interests

  	
   

  	
  86

  
	
  5.14

  	
   

  	
  Margin Regulations; Investment Company Act; Public Utility Holding
  Company Act

  	
   

  	
  87

  
	
  5.15

  	
   

  	
  Disclosure

  	
   

  	
  87

  
	
  5.16

  	
   

  	
  Compliance with Laws

  	
   

  	
  87

  
	
  5.17

  	
   

  	
  Solvency

  	
   

  	
  87

  
	
  5.18

  	
   

  	
  Intellectual Property Matters

  	
   

  	
  88

  
	
  5.19

  	
   

  	
  Security Documents

  	
   

  	
  88

  
	
  5.20

  	
   

  	
  Use of Proceeds

  	
   

  	
  89

  
	
  5.21

  	
   

  	
  Acquisition Documents; Representations and Warranties in Acquisition
  Agreement

  	
   

  	
  89

  
	
  5.22

  	
   

  	
  Anti-Terrorism Law

  	
   

  	
  89

  
	
  5.23

  	
   

  	
  FCC Licenses, Etc.

  	
   

  	
  90

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE VI

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AFFIRMATIVE COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.01

  	
   

  	
  Existence; Businesses and Properties

  	
   

  	
  91

  
	
  6.02

  	
   

  	
  Insurance

  	
   

  	
  91

  
	
  6.03

  	
   

  	
  Taxes

  	
   

  	
  92

  

 

ii

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.04

  	
   

  	
  Financial Statements, Reports, Etc.

  	
   

  	
  92

  
	
  6.05

  	
   

  	
  Litigation and Other Notices

  	
   

  	
  95

  
	
  6.06

  	
   

  	
  Compliance with Laws

  	
   

  	
  95

  
	
  6.07

  	
   

  	
  Maintaining Records; Access to Properties and Inspections

  	
   

  	
  96

  
	
  6.08

  	
   

  	
  Use of Proceeds

  	
   

  	
  96

  
	
  6.09

  	
   

  	
  Further Assurances; Additional Mortgages

  	
   

  	
  96

  
	
  6.10

  	
   

  	
  Interest Rate Protection Agreements

  	
   

  	
  98

  
	
  6.11

  	
   

  	
  Transfer of FCC Licenses

  	
   

  	
  98

  
	
  6.12

  	
   

  	
  Performance of Leases

  	
   

  	
  98

  
	
  6.13

  	
   

  	
  Compliance with Environmental Laws; Environmental Reports

  	
   

  	
  98

  
	
  6.14

  	
   

  	
  Fiscal Year

  	
   

  	
  99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE VII

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NEGATIVE COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.01

  	
   

  	
  Indebtedness

  	
   

  	
  99

  
	
  7.02

  	
   

  	
  Liens

  	
   

  	
  102

  
	
  7.03

  	
   

  	
  Sale and Lease-Back Transactions

  	
   

  	
  105

  
	
  7.04

  	
   

  	
  Investments, Loans and Advances

  	
   

  	
  105

  
	
  7.05

  	
   

  	
  Mergers, Consolidations, Sales of Assets and Acquisitions

  	
   

  	
  107

  
	
  7.06

  	
   

  	
  Dividends and Distributions

  	
   

  	
  109

  
	
  7.07

  	
   

  	
  Transactions with Affiliates

  	
   

  	
  111

  
	
  7.08

  	
   

  	
  Business of Holdings and the Subsidiaries

  	
   

  	
  113

  
	
  7.09

  	
   

  	
  Limitation on Modifications, Prepayments and Certain Interest Payments

  	
   

  	
  113

  
	
  7.10

  	
   

  	
  Capital Expenditures

  	
   

  	
  114

  
	
  7.11

  	
   

  	
  Interest Coverage Ratio

  	
   

  	
  115

  
	
  7.12

  	
   

  	
  Total Leverage Ratio

  	
   

  	
  116

  
	
  7.13

  	
   

  	
  Swap Agreements

  	
   

  	
  116

  
	
  7.14

  	
   

  	
  Non-Material Subsidiaries

  	
   

  	
  116

  
	
  7.15

  	
   

  	
  Anti-Terrorism Law; Anti-Money Laundering

  	
   

  	
  116

  
	
  7.16

  	
   

  	
  Embargoed Person

  	
   

  	
  117

  
	
  7.17

  	
   

  	
  No Further Negative Pledge

  	
   

  	
  117

  
	
  7.18

  	
   

  	
  Finance Subsidiary

  	
   

  	
  117

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE VIII

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EVENTS OF DEFAULT AND REMEDIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.01

  	
   

  	
  Events of Default

  	
   

  	
  118

  
	
  8.02

  	
   

  	
  Holdings’ Right To Cure

  	
   

  	
  121

  
	
  8.03

  	
   

  	
  Application of Funds

  	
   

  	
  122

  

 

iii

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE IX

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ADMINISTRATIVE AGENT AND COLLATERAL AGENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.01

  	
   

  	
  Appointment and Authority

  	
   

  	
  123

  
	
  9.02

  	
   

  	
  Rights as a Lender

  	
   

  	
  123

  
	
  9.03

  	
   

  	
  Exculpatory Provisions

  	
   

  	
  124

  
	
  9.04

  	
   

  	
  Reliance by Agents

  	
   

  	
  125

  
	
  9.05

  	
   

  	
  Delegation of Duties

  	
   

  	
  125

  
	
  9.06

  	
   

  	
  Resignation of Agent

  	
   

  	
  125

  
	
  9.07

  	
   

  	
  Non-Reliance on Agent and Other Lenders

  	
   

  	
  126

  
	
  9.08

  	
   

  	
  No Other Duties, Etc.

  	
   

  	
  126

  
	
  9.09

  	
   

  	
  Agent May File Proofs of Claim

  	
   

  	
  126

  
	
  9.10

  	
   

  	
  Collateral and Guaranty Matters

  	
   

  	
  127

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE X

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MISCELLANEOUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.01

  	
   

  	
  Amendments, Etc.

  	
   

  	
  128

  
	
  10.02

  	
   

  	
  Notices; Effectiveness; Electronic Communication

  	
   

  	
  130

  
	
  10.03

  	
   

  	
  No Waiver; Cumulative Remedies

  	
   

  	
  132

  
	
  10.04

  	
   

  	
  Expenses; Indemnity; Damage Waiver

  	
   

  	
  132

  
	
  10.05

  	
   

  	
  Payments Set Aside

  	
   

  	
  134

  
	
  10.06

  	
   

  	
  Successors and Assigns

  	
   

  	
  134

  
	
  10.07

  	
   

  	
  Treatment of Certain Information; Confidentiality

  	
   

  	
  138

  
	
  10.08

  	
   

  	
  Right of Setoff

  	
   

  	
  139

  
	
  10.09

  	
   

  	
  Interest Rate Limitation

  	
   

  	
  139

  
	
  10.10

  	
   

  	
  Counterparts; Integration; Effectiveness

  	
   

  	
  140

  
	
  10.11

  	
   

  	
  Survival of Representations and Warranties

  	
   

  	
  140

  
	
  10.12

  	
   

  	
  Severability

  	
   

  	
  140

  
	
  10.13

  	
   

  	
  Replacement of Lenders

  	
   

  	
  140

  
	
  10.14

  	
   

  	
  Governing Law, Jurisdiction, Etc.

  	
   

  	
  141

  
	
  10.15

  	
   

  	
  Waiver of Jury Trial

  	
   

  	
  142

  
	
  10.16

  	
   

  	
  USA PATRIOT Act Notice

  	
   

  	
  142

  
	
  10.17

  	
   

  	
  FCC

  	
   

  	
  142

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SIGNATURES

  	
   

  	
  S-1

  

 

	
  SCHEDULES

  
	
   

  	
   

  	
   

  
	
  2.01

  	
   

  	
  Commitments

  
	
  4.01(j)

  	
   

  	
  Real Property

  
	
  5.06

  	
   

  	
  Certain Litigation

  
	
  5.09

  	
   

  	
  Environmental Matters

  
	
  5.13(a)

  	
   

  	
  Subsidiaries

  
	
  5.13(b)

  	
   

  	
  Equity Interests

  

 

iv

 

	
  5.13(c)

  	
   

  	
  Equity Interest Agreements

  
	
  5.21

  	
   

  	
  Acquisition Documents

  
	
  5.23

  	
   

  	
  FCC Licenses

  
	
  7.01(a)

  	
   

  	
  Existing Indebtedness

  
	
  7.01(b)

  	
   

  	
  Existing Letters of Credit

  
	
  7.02

  	
   

  	
  Existing Liens

  
	
  7.04

  	
   

  	
  Existing Investments

  
	
  7.07

  	
   

  	
  Transactions with Affiliates

  
	
  10.02

  	
   

  	
  Administrative Agent’s Office; Certain Addresses for Notices

  
	
  10.06

  	
   

  	
  Processing and Recordation Fees

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A-1

  	
   

  	
  Form of Borrowing or Conversion Notice

  
	
  Exhibit A-2

  	
   

  	
  Form of Prepayment Notice

  
	
  Exhibit B

  	
   

  	
  Form of Swing Line Loan Notice

  
	
  Exhibit C-1

  	
   

  	
  Form of Term Loan Note

  
	
  Exhibit C-2

  	
   

  	
  Form of Revolving Loan Note

  
	
  Exhibit C-3

  	
   

  	
  Form of Swing Line Loan Note

  
	
  Exhibit D

  	
   

  	
  Form of Compliance Certificate

  
	
  Exhibit E

  	
   

  	
  Form of Assignment and Assumption

  
	
  Exhibit F

  	
   

  	
  Form of Guaranty

  
	
  Exhibit G

  	
   

  	
  Form of Security Agreement

  
	
  Exhibit H

  	
   

  	
  Form of Perfection Certificate

  
	
  Exhibit I

  	
   

  	
  Form of Solvency Certificate

  
	
  Exhibit J-1

  	
   

  	
  Form of Opinion of Paul, Hastings, Janofsky & Walker LLP, special
  New York and Delaware counsel and FCC counsel to the Loan Parties

  
	
  Exhibit J-2

  	
   

  	
  Form of Opinion of Local Counsels

  
	
  Exhibit K

  	
   

  	
  Form of Assumption Agreement

  
	
  Exhibit L

  	
   

  	
  Form of Subordinated Intercompany Debt

  
	
  Exhibit M

  	
   

  	
  Form of Incremental Term Loan Commitment Agreement

  
	
  Exhibit N

  	
   

  	
  Form of Mortgage

  
	
  Exhibit O

  	
   

  	
  Foreign Lender Certificate

  

 

v

 

CREDIT AGREEMENT

 

This CREDIT AGREEMENT (this “Agreement”)
is entered into as of August 11, 2006, among BARRINGTON BROADCASTING LLC, a
Delaware limited liability company (“Holdings”), BARRINGTON BROADCASTING
GROUP LLC, a Delaware limited liability company (“Borrower”), each
lender from time to time party hereto (collectively, the “Lenders” and,
individually, a “Lender”), BANK OF AMERICA, N.A., as Administrative
Agent (in such capacity, the “Administrative Agent”), Swing Line Lender
(in such capacity, the “Swing Line Lender”), L/C Issuer (in such
capacity, the “L/C Issuer”) and Collateral Agent (in such capacity, the “Collateral
Agent”), WACHOVIA BANK, NATIONAL ASSOCIATION, as Syndication Agent (in such
capacity, the “Syndication Agent”), CIT LENDING SERVICES CORPORATION, as
Documentation Agent (in such capacity, the “Documentation Agent”), and
BANC OF AMERICA SECURITIES LLC and WACHOVIA CAPITAL MARKETS, LLC, as Joint Lead
Arrangers and Joint Bookrunning Managers (in such capacities, the “Arrangers”).

 

WHEREAS Holdings owns 100% of the outstanding
membership interests of Borrower;

 

WHEREAS, pursuant to the asset purchase agreement
dated as of March 24, 2006 (the “Acquisition Agreement”) among Borrower
(f/k/a Barrington Broadcasting Corporation, a Delaware corporation), Raycom
Media, Inc., a Delaware corporation (“Raycom”), and the entities listed
on Schedule I thereto (collectively with Raycom, the “Sellers”), Borrower
has agreed to purchase (the “Acquisition”) all of the Station Assets (as
defined in the Acquisition Agreement as in effect on the date hereof) (together,
the “Acquired Business”) from the Sellers;

 

WHEREAS, substantially simultaneously with
the consummation of the Acquisition, Sponsor (as defined herein) will make an equity
contribution to Holdings (the “Equity Contribution”) in an amount not
less than $60.3 million in cash, which Holdings will further contribute to Borrower
as common equity;

 

WHEREAS the proceeds of the initial borrowing
hereunder, together with the proceeds from the Equity Contribution, will be
used to pay the consideration under the Acquisition Agreement, to repay certain
outstanding indebtedness of Borrower of up to $62.8 million (together, the “Refinancing”)
and to pay fees and expenses in connection with the Transactions (as defined
herein);

 

WHEREAS Borrower and Holdings have requested
that (i) the Term Loan Lenders make Term Loans to Borrower of $147.5 million in
the aggregate and (ii) the Revolving Loan Lenders provide Revolving Loan
Commitments of $25.0 million in the aggregate to be available for Revolving
Loans to Borrower and Letters of Credit issued for the account of the Loan
Parties; and

 

WHEREAS the applicable Lenders have indicated
their willingness to lend and the L/C Issuer has indicated its willingness to
issue Letters of Credit, in each case, on the terms and subject to the
conditions set forth herein.

 

NOW, THEREFORE, in consideration of the
mutual covenants and agreements herein contained, the parties hereto covenant
and agree as follows:

 

 

ARTICLE I

 

DEFINITIONS AND ACCOUNTING TERMS

 

1.01        Defined
Terms.  As used
in this Agreement, the following terms shall have the meanings set forth below:

 

“Acquired Business” has the meaning
assigned to such term in the recitals hereto.

 

“Acquisition” has the meaning assigned
to such term in the recitals hereto.

 

“Acquisition Agreement” has the
meaning assigned to such term in the recitals hereto.

 

“Acquisition Documents” means the
Acquisition Agreement and each of the other documents listed on Schedule
5.21.

 

“Administrative Agent” has the meaning
assigned to such term in the introductory paragraph hereto, and includes any
successor administrative agent hereunder.

 

“Administrative Agent’s Office” means
the Administrative Agent’s address and, as appropriate, account as set forth on
Schedule 10.02, or such other address or account as the Administrative
Agent may from time to time notify in writing to Borrower and the Lenders.

 

“Administrative Questionnaire” means
an Administrative Questionnaire in a form supplied by the Administrative Agent.

 

“Affected Loans” has the meaning assigned
to such term in Section 2.03(c).

 

“Affiliate” means, when used with
respect to a specified Person, another Person that directly, or indirectly
through one or more intermediaries, Controls or is Controlled by or is under
common Control with the Person specified.

 

“Agents” means the Administrative
Agent, the Collateral Agent, the Syndication Agent, the Documentation Agent and
the Arrangers; and “Agent” shall mean any of them.

 

“Agent Parties” has the meaning assigned
to such term in Section 10.02.

 

“Aggregate Commitments” means,
collectively, the Aggregate Revolving Loan Commitments, Aggregate Term Loan Commitments
and the Aggregate Incremental Term Loan Commitments, if any.

 

“Aggregate Incremental Term Loan
Commitments” means the Incremental Term Loan Commitments, if any, of all of
the Incremental Term Loan Lenders.

 

“Aggregate Revolving Loan Commitments”
means the Revolving Loan Commitments of all of the Revolving Loan Lenders.

 

“Aggregate Term Loan Commitments”
means the Term Loan Commitments of all of the Term Loan Lenders.

 

2

 

“Agreement” has the meaning assigned
to such term in the introductory paragraph hereto.

 

“Anti-Terrorism Laws” has the meaning
assigned to such term in Section 5.22(a).

 

“Applicable Rate” means (a) with
respect to any Revolving Loan, the following percentages per annum, based upon
the Total Leverage Ratio as set forth in the most recent Compliance Certificate
received by the Administrative Agent pursuant to Section 6.04(c):

 

Applicable Rate

 

	
  Pricing Level

  	
   

  	
  Total

  Leverage Ratio

  	
   

  	
  Eurodollar Rate

  Revolving Loans

  and Letter of

  Credit Fees

  	
   

  	
  Base Rate 

  Revolving 

  Loans

  	
   

  	
  Commitment 

  Fee

  	
   

  
	
  1

  	
   

  	
  >6.50 : 1.00

  	
   

  	
  2.25

  	
   

  	
  1.25

  	
   

  	
  0.50

  	
   

  
	
  2

  	
   

  	
  <6.50 : 1.00 and >5.50 : 1.00

  	
   

  	
  2.00

  	
   

  	
  1.00

  	
   

  	
  0.50

  	
   

  
	
  3

  	
   

  	
  <5.50 : 1.00

  	
   

  	
  1.75

  	
   

  	
  0.75

  	
   

  	
  0.375

  	
   

  

 

and (b) with
respect to any Term Loan, 2.25%, in the case of Eurodollar Rate Term Loans and
1.25%, in the case of Base Rate Term Loans; provided that with respect
to Revolving Loans Pricing Level 1 shall apply until the date that is six
months following the Closing Date (the “Trigger Date”).  On and after the Trigger Date, the Applicable
Rate with respect to Revolving Loans shall be determined by reference to the
grid above.  Any increase or decrease in
the Applicable Rate resulting from a change in the Total Leverage Ratio shall
become effective as of the first Business Day immediately following the date a
Compliance Certificate is delivered pursuant to Section 6.04(c); provided that (x) if a Compliance Certificate
is not delivered when due in accordance with such Section, then Pricing
Level 1 shall apply as of the first Business Day after the date on which
such Compliance Certificate was required to have been delivered until the Compliance
Certificate is delivered and (y) Pricing Level 1 shall apply during any Event
of Default specified in Section 8.01(b) or (g) and any other
Event of Default as to which any Loan Party, any Agent or any Lender has given
notice (including by any Loan Party under Section 6.05).

 

“Appropriate Lender” means, at any
time, (a) with respect to Loans of any Class, the Lenders of such Class, (b)
with respect to any Letter of Credit, (i) the L/C Issuer and (ii) if any
Letters of Credit have been issued pursuant to Section 2.03(a), the
Revolving Loan Lenders, and (c) with respect to the Swing Line, (i) the Swing
Line Lender and (ii) if any Swing Line Loans are outstanding pursuant to Section
2.04(a), the Revolving Loan Lenders.

 

“Approved Fund” means any Fund that is
advised or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an
entity or an Affiliate of an entity that advises or manages a Lender.

 

“Arrangers” has the meaning assigned
to such term in the introductory paragraph hereto.

 

“Asset Acquisition” means any
Permitted Business Acquisition, the aggregate consideration for which exceeds
$2.0 million.

 

3

 

“Asset Disposition” means (a) any
conveyance, sale, transfer, lease, sublease, assignment or other disposition by
Holdings or any of the Subsidiaries to any Person other than Holdings or any
Subsidiary to the extent otherwise permitted hereunder of any asset or group of
related assets (other than inventory or other assets sold, transferred or
otherwise disposed of in the ordinary course of business) in one or a series of
related transactions, the Net Proceeds from which exceed $2.0 million, and (b)
any sale of any Equity Interests of any Subsidiary of Holdings to any Person
other than Holdings or any Subsidiary to the extent otherwise permitted hereunder,
in one or a series of related transactions, the Net Proceeds from which exceed
$2.0 million.  The term “Asset
Disposition” shall not include the conveyance, sale, transfer, lease, sublease,
assignment or other disposition of assets permitted by subsections (a)
or (h) of Section 7.05.

 

“Assignee Group” means two or more
Eligible Assignees that are Affiliates of one another or two or more Approved
Funds managed by the same investment advisor.

 

“Assignment and Assumption” means an
assignment and assumption entered into by a Lender and an Eligible Assignee
(with the consent of any party whose consent is required by Section 10.06(b)),
and accepted by the Administrative Agent, substantially in the form of Exhibit E
or any other form approved by the Administrative Agent and Borrower.

 

“Assumption Agreement” means an Assumption
Agreement substantially in the form of Exhibit K.

 

“Audited Financial Statements” means
(a) the audited consolidated balance sheet of the Acquired Business and
its Subsidiaries as of December 31, 2005 and 2004 and the related consolidated
statements of operations, shareholders’ equity and cash flows for the three fiscal
years ended December 31, 2005, including the notes thereto, and (b) the
audited consolidated balance sheet of Holdings and Borrower as of December 31,
2005 and 2004 and the related consolidated statements of operations, members’
equity and cash flows for the two fiscal years ended December 31, 2005, including
the notes thereto.

 

“Auto-Extension Letter of Credit” has
the meaning assigned to such term in Section 2.03(b).

 

“Availability Period” means the period
from and including the Closing Date to the earliest of (a) the Revolving Loan
Maturity Date, (b) the date of termination of the Aggregate Revolving Loan
Commitments pursuant to Section 2.06(a) and (c) the date of termination
of the commitment of each Revolving Loan Lender (including each Swing Line
Lender) to make Revolving Loans and Swing Line Loans and of the obligation of
the L/C Issuer to make L/C Credit Extensions pursuant to Section 8.01.

 

“Bank of America” means Bank of America,
N.A. and its successors.

 

“Base Rate” means with respect to
any Revolving Loan or any Term Loan, for any day a fluctuating rate per annum
equal to the higher of (a) the Federal Funds Rate for such day plus
1/2 of 1% and (b) the rate of interest in effect for such day as publicly announced
from time to time by Bank of America as its “prime rate.”  The relevant “prime rate” is a rate set by
Bank of America based upon various factors including Bank of America’s costs
and desired return, general economic conditions and other factors, and is used
as a reference point for pricing some loans, 

 

4

 

which may be priced at, above, or below such
announced rate.  Any change in such rate
announced by Bank of America shall take effect at the opening of business on
the day specified in the public announcement of such change.

 

“Base Rate Loan” means a Loan that
bears interest based on the Base Rate.

 

“Base Rate Revolving Loan” means a Revolving
Loan that is a Base Rate Loan.

 

“Base Rate Term Loan” means a Term
Loan that is a Base Rate Loan.

 

“Borrower” has the meaning assigned to
such term in the introductory paragraph hereto.

 

“Borrower Materials” has the meaning assigned
to such term in Section 6.04.

 

“Borrowing” means a Term Loan
Borrowing, a Revolving Loan Borrowing, a Swing Line Borrowing or an Incremental
Term Loan Borrowing, as the context may require.

 

“Borrowing or Conversion Notice” means
a notice of (a) a Term Loan Borrowing, (b) a Revolving Loan Borrowing, (c) a
conversion of Loans from one Type to the other, or (d) a continuation of Eurodollar
Rate Loans, pursuant to Section 2.02(a), which, if in writing, shall be
executed by Borrower, and substantially in the form of Exhibit A-1.

 

“Business Day” means any day other
than a Saturday, Sunday or other day on which commercial banks are authorized
to close under the Laws of, or are in fact closed in the State of New York or
in Charlotte, North Carolina and if such day relates to any Eurodollar Rate
Loan, means any such day on which dealings in Dollar deposits are conducted by
and between banks in the London interbank eurodollar market.

 

“Capital Expenditures” means, for any
Person in respect of any period, the aggregate of all expenditures incurred by
such Person during such period that, in accordance with GAAP, are or should be
included in “additions to property, plant or equipment” or similar items
reflected in the statement of cash flows of such Person, provided, however,
that Capital Expenditures for Holdings and the Subsidiaries shall not include:

 

(a)           expenditures to the extent they are
made with proceeds of the issuance of Equity Interests of Holdings after the
Closing Date to Sponsor or any other Permitted Investor or with funds that
would have constituted Net Proceeds under clause (a) of the definition of the
term “Net Proceeds” (but that will not constitute Net Proceeds as a result of the
first proviso to such clause (a)),

 

(b)           expenditures of proceeds of insurance
settlements, condemnation awards and other settlements in respect of lost,
destroyed, damaged or condemned assets, equipment or other property to the
extent such expenditures are made, or a binding contract is or has been entered
into to make such expenditures, to replace or repair such lost, destroyed,
damaged or condemned assets, equipment or other property or otherwise to
acquire, maintain, develop, construct, improve, upgrade or repair assets or
properties useful in the business of Holdings and the Subsidiaries within 12
months of receipt of such proceeds,

 

5

 

(c)           interest capitalized during such
period,

 

(d)           expenditures that are accounted for
as capital expenditures of such Person and that actually are paid for by a
third party (excluding Holdings or any Subsidiary thereof) and for which none
of Holdings nor any Subsidiary thereof has provided or is required to provide
or incur, directly or indirectly, any consideration or obligation to such third
party or any other Person (whether before, during or after such period),

 

(e)           the book value of any asset owned by
such Person prior to or during such period to the extent that such book value
is included as a capital expenditure during such period as a result of such
Person reusing or beginning to reuse such asset during such period without a
corresponding expenditure actually having been made in such period, provided
that any expenditure necessary in order to permit such asset to be reused shall
be included as a Capital Expenditure during the period that such expenditure
actually is made,

 

(f)            the purchase price of equipment
purchased during such period to the extent the consideration therefor consists
of any combination of (i) used or surplus equipment traded in at the time of
such purchase and (ii) the proceeds of a concurrent sale of used or surplus
equipment, in each case, in the ordinary course of business,

 

(g)           Investments in respect of a Permitted
Business Acquisition,

 

(h)           the purchase price of equipment that
is purchased substantially contemporaneously with the trade-in of existing
equipment to the extent that the gross amount of such purchase price is reduced
by the credit granted by the seller of such equipment for the equipment being
traded in at such time, or

 

(i)            expenditures made with the cash
proceeds of landlord allowances and advances.

 

“Capital Lease Obligations” means, as
to any Person, the obligations of such Person to pay rent or other amounts
under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to
be classified and accounted for as capital leases on a balance sheet of such Person
under GAAP, and, for purposes hereof, the amount of such obligations at any
time shall be the capitalized amount thereof at such time determined in accordance
with GAAP.

 

“Cash Collateralize” has the meaning assigned
to such term in Section 2.03(g).

 

“Cash Interest Expense” means, with
respect to Holdings and the Subsidiaries on a consolidated basis for any
period, Interest Expense for such period, less the sum of (a) pay-in-kind
Interest Expense or other noncash Interest Expense (including as a result of
the effects of purchase accounting), (b) to the extent included in Interest
Expense, the amortization of any financing fees paid by, or on behalf of, Holdings
or any Subsidiary, including such fees paid in connection with the
Transactions, (c) the amortization of debt discounts, if any, or fees in
respect of Swap Agreements and (d) cash interest income of Holdings and the
Subsidiaries for such period; provided that (i) Cash Interest Expense
shall exclude any financing fees paid in connection with 

 

6

 

the Transactions (or any refinancing of any
Indebtedness incurred in connection therewith to the extent that such financing
fees are paid with the proceeds from such refinancing Indebtedness) or any amendment
of this Agreement and (ii) for purposes of determining the Interest Coverage Ratio
for the period ending December 31, 2006, Cash Interest Expense for the such
period shall be deemed to equal historical Cash Interest Expense for the two
fiscal quarters ending December 31, 2006 multiplied by 2, and for purposes of determining
the Interest Coverage Ratio for the period ending March 31, 2007, Cash Interest
Expense for the such period shall be deemed to equal historical Cash Interest
Expense for the three fiscal quarters ending March 31, 2007 multiplied by 4/3.

 

“CERCLA” means the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended, 42
U.S.C. § 9601 etseq.

 

“Change in Law” means the occurrence,
after the date of this Agreement, of any of the following:  (a) the adoption or taking effect of any law,
rule, regulation or treaty, (b) any change in any law, rule, regulation or
treaty or in the administration, interpretation or application thereof by any
Governmental Authority or (c) the making or issuance of any request, guideline
or directive (whether or not having the force of law) by any Governmental
Authority.

 

A “Change of Control” shall be deemed
to occur if:

 

(a)           at any time, a majority of the seats
(other than vacant seats) on the board of managers of Holdings shall at any
time be occupied by Persons who were neither (A) nominated by a Permitted
Holder (directly or indirectly) nor (B) appointed by a Permitted Holder
(directly or indirectly);

 

(b)           at any time prior to an initial
public offering of Equity Interests of Holdings or any Person who, directly or
indirectly, owns 100% of the issued and outstanding Equity Interests of
Holdings (a “Parent Company”), the Permitted Holders in the aggregate
shall fail to own beneficially (within the meaning of Rule 13d-5 of the
Exchange Act as in effect on the Closing Date), directly or indirectly, Equity
Interests representing more than 50% of (i) the aggregate ordinary voting power
represented by the issued and outstanding Equity Interests of Holdings or (ii)
the common economic interest represented by the issued and outstanding Equity Interests
of Holdings;

 

(c)           at any time from and after an initial
public offering of Equity Interests of Holdings or any Parent Company, any
Person or group (within the meaning of Rule 13d-5 of the Exchange Act as in
effect on the Closing Date), other than any combination of the Permitted
Holders, shall own beneficially, directly or indirectly, in the aggregate
Equity Interests representing a larger percentage of such ordinary voting power
at such time than the Permitted Holders in the aggregate;

 

(d)           Holdings at any time ceases to own
100% of the Equity Interests of Borrower; or

 

(e)           the occurrence of a “Change of
Control” as defined in the indenture relating to the Senior Subordinated Notes
(or, alternatively, the senior subordinated bridge loan agreement).

 

7

 

“Class” (a) when used with respect to
Lenders, refers to whether such Lenders are Revolving Loan Lenders, Term Loan
Lenders or Incremental Term Loan Lenders, (b) when used with respect to
Commitments, refers to whether such Commitments are Revolving Loan Commitments,
Term Loan Commitments, or Incremental Term Loan Commitments and (c) when used
with respect to Loans or a Borrowing, refers to whether such Loans, or the
Loans comprising such Borrowing, are Revolving Loans, Term Loans, or
Incremental Term Loans.

 

“Closing Date” means the first date
all the conditions precedent in Sections 4.01 and 4.02 are
satisfied or waived in accordance with Section 10.01.

 

“Code” means the Internal Revenue Code
of 1986, as amended from time to time.

 

“Collateral” means, collectively, all
of the Security Agreement Collateral, the Mortgaged Property and all other property
of whatever kind and nature subject or purported to be subject from time to
time to a Lien under any Security Document.

 

“Collateral Agent” has the meaning
assigned to such term in the introductory paragraph hereto, and includes any
successor collateral agent hereunder.

 

“Commitment” means, as to each Lender,
such Lender’s Revolving Loan Commitment, Term Loan Commitment or Incremental
Term Loan Commitment, or any combination of them, as the case may be.

 

“Communications Act” shall mean the
Communications Act of 1934, as amended, and any successor federal statute, and
the rules and regulations and published policies of the FCC thereunder, all as
the same may be in effect from time to time.

 

“Communications Law” means all laws,
rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions,
notices or binding agreements issued, promulgated or entered into by any
Governmental Authority (including the FCC), relating in any way to the offering
or provision of communications, including the Communications Act.

 

“Compliance Certificate” means a
certificate substantially in the form of Exhibit D.

 

“Confidential Information Memorandum”
means that certain confidential information memorandum dated as of June 2006.

 

“Consolidated Debt”, at any date, means
the sum of (without duplication) all Indebtedness consisting of Capital Lease
Obligations, Indebtedness for borrowed money and Indebtedness in respect of the
deferred purchase price of property or services (and not including any
indebtedness under letters of credit (x) to the extent undrawn or (y) if drawn,
to the extent reimbursed within 10 Business Days after such drawing) of
Holdings and the Subsidiaries determined on a consolidated basis on such date.

 

“Consolidated Net Income” means, with
respect to any Person for any period, the aggregate of the Net Income of such
Person and its subsidiaries for such period, determined on a consolidated
basis; provided, however, that

 

8

 

(i)            any net after-tax extraordinary,
special (to the extent reflected as a separate line item on a consolidated income
statement prepared in accordance with GAAP on a basis consistent with
historical practices) or non-recurring gain or loss (less all fees and expenses
relating thereto) or income or expense or charge including, without limitation,
any severance expense, and fees, expenses or charges related to any offering of
Equity Interests of Holdings, any Investment, acquisition, asset disposition,
repayment of debt, refinancing transaction or other modification of any debt
instrument, or Indebtedness, in each case permitted to be incurred hereunder
(in each case, whether or not successful), including all fees, expenses,
charges or change in control payments related to the Transactions (including,
without limitation, all Transaction Costs), in each case shall be excluded; provided
that, with respect to each non-recurring item, Holdings shall specify and
quantify such item in each Compliance Certificate required by Section
6.04(c),

 

(ii)           any net after-tax income or loss from
discontinued operations and any net after-tax gain or loss on disposal of discontinued
operations shall be excluded,

 

(iii)          any net after-tax gain or loss (less
all fees and expenses or charges relating thereto) attributable to business dispositions
or asset dispositions other than in the ordinary course of business (as
determined in good faith by the Board of Directors of such Person) shall be
excluded,

 

(iv)          any net after-tax income or loss (less
all fees and expenses or charges relating thereto) attributable to the early extinguishment
of indebtedness shall be excluded,

 

(v)           (A) the Net Income for such period of
any Person that is not a Subsidiary, or that is accounted for by the equity
method of accounting, of such Person shall be included only to the extent of
the amount of dividends or distributions or other payments in respect of equity
paid in cash (or to the extent converted into cash) to such Person or a
subsidiary thereof in respect of such period, (B) the Net Income for such
period shall include any dividend, distribution or other payment in respect of
equity in cash received from any such Person in excess of the amounts included
in clause (A), and (C) to the extent that the Net Income for such period of any
Person that is not a subsidiary of such Person represents a loss, such loss
shall be excluded,

 

(vi)          the Net Income for such period of any
Subsidiary of such Person that is not a Loan Party shall be excluded to the
extent that the declaration or payment of dividends or similar distributions by
such Subsidiary of its Net Income is not at the date of determination permitted
without any prior governmental approval (which has not been obtained) or,
directly or indirectly, by the operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule, or governmental
regulation applicable to that Subsidiary or its stockholders, unless such
restriction with respect to the payment of dividends or in similar distributions
has been legally waived (provided that the net loss of any such Subsidiary
shall be included), provided that such Net Income shall be included to the
extent (and only to the extent) such Subsidiary may (without violation of law
or binding contractual arrangements) make loans and/or advances to its parent
corporation (which corporation may in turn dividend, loan and/or advance the proceeds

 

9

 

of such loans or advances to its parent
corporation and so on for all parents until reaching Holdings) and/or to
Holdings,

 

(vii)         Consolidated Net Income for such period
shall not include the cumulative effect of a change in accounting principles
during such period to the extent included in Consolidated Net Income,

 

(viii)        an amount equal to the amount of Tax
Distributions actually made to the holders of Equity Interests of Holdings in
respect of the net taxable income allocated by such Person to such holders for
such period to the extent funded by Borrower shall be included as though such
amounts had been paid as income taxes directly by such Person,

 

(ix)           any increase in amortization or
depreciation or any noncash charges or other effects (such as purchased
in-process research and development or capitalized manufacturing profit in
inventory) resulting from purchase accounting in connection with the
Transactions or any acquisition that is consummated prior to or after the
Closing Date shall be excluded, and

 

(x)            any long-term incentive plan
accruals and any non-cash compensation expense realized from grants of stock appreciation
or similar rights, stock options or other rights to officers, directors and
employees of such Person or any of its Subsidiaries shall be excluded.

 

“Contractual Obligation” means, as to
any Person, any provision of any security issued by such Person or of any
material agreement, instrument, contract, indenture, mortgage, deed of trust or
other undertaking to which such Person is a party or by which it or any of its
property is bound.

 

“Control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of a Person, whether through the exercise of voting
power, by contract or otherwise, and “Controlling” and “Controlled”
shall have meanings correlative thereto.

 

“Credit Extension” means each of the
following:  (a) a Borrowing and (b) an
L/C Credit Extension.

 

“Cure Amount” has the meaning assigned
to such term in Section 8.02.

 

“Cure Right” has the meaning assigned
to such term in Section 8.02.

 

“Current Assets” means, with respect
to Holdings and the Subsidiaries on a consolidated basis at any date of
determination, all assets (other than cash and Permitted Investments or other
cash equivalents) that would, in accordance with GAAP, be classified on a consolidated
balance sheet of Holdings and the Subsidiaries as current assets at such date
of determination, other than amounts related to current or deferred Taxes based
on income or profits.

 

“Current Liabilities” means, with
respect to Holdings and the Subsidiaries on a consolidated basis at any date of
determination, all liabilities that would, in accordance with GAAP, be 

 

10

 

classified on a consolidated balance sheet of
Holdings and the Subsidiaries as current liabilities at such date of
determination, other than (a) the current portion of any debt or Capital Lease
Obligations, (b) accruals of Interest Expense (excluding Interest Expense that
is due and unpaid), (c) accruals for current or deferred Taxes based on income,
profits or capital, (d) accruals, if any, of Transaction Costs, (e) accruals of
any costs or expenses related to (i) severance or termination of employees
prior to the Closing Date or (ii) bonuses, pension and other
post-retirement benefit obligations, and (f) accruals for add-backs to EBITDA
included in clauses (a)(iv) through (a)(ix) of the definition of such term.

 

“Debt Service” means, with respect to
Holdings and the Subsidiaries on a consolidated basis for any period, Cash
Interest Expense for such period plus scheduled principal amortization of
Consolidated Debt for such period.

 

“Debtor Relief Laws” means the
Bankruptcy Code of the United States, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization, or similar
debtor relief Laws of the United States or other applicable jurisdictions from
time to time in effect and affecting the rights of creditors generally.

 

“Default” means any event or condition
that constitutes an Event of Default or that, with the giving of any notice,
the passage of time, or both, would be an Event of Default.

 

“Default Rate” has the meaning
assigned to such term in Section 2.08(b).

 

“Defaulting Lender” means any Lender
that (a) has failed to fund any portion of the Revolving Loans, Term Loans,
participations in L/C Obligations or participations in Swing Line Loans required
to be funded by it hereunder within one Business Day of the date required to be
funded by it hereunder, (b) has otherwise failed to pay over to the
Administrative Agent or any other Lender any other amount required to be paid
by it hereunder within one Business Day of the date when due, unless the
subject of a good faith dispute or (c) has been deemed insolvent or become the
subject of a bankruptcy, insolvency or similar proceeding.

 

“Documentation Agent” has the meaning
assigned to such term in the introductory paragraph hereto.

 

“Dollar” and “$” mean lawful
money of the United States.

 

“EBITDA” means, with respect to
Holdings and the Subsidiaries on a consolidated basis for any period, the
Consolidated Net Income of Holdings and the Subsidiaries for such period plus
(a) the sum of (in each case without duplication and to the extent the
respective amounts described in subclauses (i) through (xiii) of this clause
(a) reduced such Consolidated Net Income for the respective period for which
EBITDA is being determined):

 

(i)      provision
for Taxes based on income, profits or capital of Holdings and the Subsidiaries
for such period, including, without limitation, state, franchise and similar
taxes (including any Tax Distribution taken into account in calculating Consolidated
Net Income),

 

11

 

(ii)     Interest
Expense of Holdings and the Subsidiaries for such period (net of interest
income for such period of Holdings and the Subsidiaries),

 

(iii)    depreciation
and amortization (including amortization in respect of capitalized programming
rights associated with Programming Obligations and other amortized film
expenses, amortization of goodwill and other intangibles, deferred financing
fees and any amortization included in pension, OPEB or other employee benefit
expenses, but excluding amortization of prepaid cash expenses that were paid in
a prior period other than in respect of Programming Obligations and film
expenses) and other non-cash expenses (including, without limitation,
write-downs and impairment of property, plant, equipment and intangibles, capitalized
programming rights associated with Programming Obligations and other long-lived
assets and the impact of purchase accounting but excluding any such non-cash
expense to the extent that it represents an accrual of or reserve for cash
expenses in any future period or amortization of a prepaid cash expense that
was paid in a prior period), in each case of Holdings and the Subsidiaries for
such period,

 

(iv)    up
to $500,000 for each of the fiscal quarter ended September 30, 2006 and the
fiscal quarter ended December 31, 2006, in each case relating to
automation-related cost savings that Borrower in good faith expects to actually
realize within the following eight fiscal quarters including, without
duplication, any cost savings actually realized during such fiscal quarters; provided
that all of the above shall be evidenced by an Officer’s Certificate delivered
to the Administrative Agent setting forth in reasonable detail all related
information and calculations specifying and quantifying such savings and stating
when such savings are expected to be actually realized,

 

(v)     a
severance charge of up to $250,000 in fiscal year 2006, as evidenced by an
Officer’s Certificate delivered to the Administrative Agent setting forth in
reasonable detail all related information and calculations specifying and
quantifying such charge,

 

(vi)    any
other noncash charges or expenses (but excluding any such charge which requires
an accrual of, or a cash reserve for, anticipated cash charges for any future
period); provided that, for purposes of this subclause (vi) of this
clause (a), any noncash charges or losses shall be treated as cash charges or
losses in any subsequent period during which cash disbursements attributable
thereto are made,

 

(vii)   the
minority interest expense consisting of the subsidiary income attributable to
minority equity interests of third parties in any non-Wholly Owned Subsidiary
in such period or any prior period, except to the extent of dividends declared
or paid on Equity Interests held by third parties,

 

(viii)  the
amount of any expense to the extent a corresponding amount is received in cash
by any Loan Party from a Person other than Holdings or any Subsidiary under any
agreement providing for reimbursement of any such expense provided such
reimbursement payment has not been included in determining EBITDA (it being
understood that if the amounts received in cash under any such agreement in any
period exceed 

 

12

 

the amount of expense in respect of such period, such excess amounts
received may be carried forward and applied against expense in future periods),

 

(ix)    the
amount of any payment made by any Loan Party to Sponsor or any other Permitted
Investor in respect of reimbursements of out of pocket expenses (or any
accruals related to such reimbursements) during such period; provided
that such amount shall not exceed $250,000 in any four quarter period,

 

(x)     except
for purposes of calculating Excess Cash Flow to the extent consisting of any
net cash loss, any net losses resulting from currency Swap Agreements entered
into in the ordinary course of business relating to intercompany loans among or
between Holdings and/or any of the Subsidiaries to the extent that the nominal
amount of the related Swap Agreement does not exceed the principal amount of
the related intercompany loan,

 

(xi)    cash
payments related to network compensation,

 

(xii)   cash
payments in respect of bonuses paid to employees of Holdings and/or any of the
Subsidiaries in connection with the Transactions, not to exceed $850,000 in the
aggregate, and

 

(xiii)  cash
payments in respect of termination fees incurred pursuant to contracts acquired
as part of the Acquisition, not to exceed $2.0 million in the aggregate;

 

minus
(b) the sum of (in each case without duplication and to the extent the
respective amounts described in subclauses (i) to (v) of this clause (b)
increased such Consolidated Net Income for the respective period for which
EBITDA is being determined):

 

(i)            the minority interest income consisting
of subsidiary losses attributable to the minority equity interests of third parties
in any non-Wholly Owned Subsidiary,

 

(ii)           noncash items increasing Consolidated
Net Income of Holdings and the Subsidiaries for such period (but excluding any
such items (A) in respect of which cash was received in a prior period or will
be received in a future period or (B) which represent the reversal of any
accrual of, or cash reserve for, anticipated cash charges in any prior period),

 

(iii)          all scheduled Programming Cash
Payments with respect to such period,

 

(iv)          except for purposes of calculating
Excess Cash Flow to the extent consisting of a net cash gain, any net gains resulting
from currency Swap Agreements entered into in the ordinary course of business relating
to intercompany loans among or between Holdings and/or any of the Subsidiaries
to the extent that the nominal amount of the related Swap Agreement does not exceed
the principal amount of the related intercompany loan, and

 

(v)           network revenue recognized in such
period but received in cash in one or more other periods.

 

13

 

For purposes of this Agreement, EBITDA shall
be deemed to be the following amounts for the fiscal quarters ending on the
following dates:  $5.4 million for the
quarter ended March 31, 2005; $8.7 million for the quarter ended June 30, 2005;
$6.8 million for the quarter ended September 30, 2005; $9.8 million for the
quarter ended December 31, 2005; and $6.6 million for the quarter ended March
31, 2006.  With respect to each fiscal
quarter specified in this paragraph, the amounts of EBITDA set forth in this
paragraph shall be adjusted to reflect any material restatement of financial
results to the extent that such restatement affects any such period.

 

“Eligible Assignee” means, as of any
proposed assignment date, (a) a Lender; (b) an Affiliate of a Lender; (c) an
Approved Fund; and (d) any other Person approved by (i) the Administrative
Agent (such approval not to be unreasonably withheld), (ii) in the case of any
assignment of all or a portion of a Revolving Loan Commitment, Revolving Loan
or both, (A) the L/C Issuer and (B) the Swing Line Lender and (iii)
unless an Event of Default has occurred and is continuing, Borrower (each such
approval not to be unreasonably withheld or delayed); provided that
notwithstanding the foregoing, “Eligible Assignee” shall not include (x) any
natural Person or (y) the Permitted Holders, Holdings or any of Holdings’
Subsidiaries.

 

“Embargoed Person” has the meaning assigned
to such term in Section 7.16.

 

“Employee Benefit Plan” means an
employee benefit plan (as defined in Section 3(3) of ERISA) that is maintained
or contributed to by Holdings, Borrower or any ERISA Affiliate or with respect
to which Holdings, Borrower or a Subsidiary could incur liability.

 

“Environment” means ambient air,
surface water and groundwater (including potable water, navigable water and
wetlands), the land surface or subsurface strata, natural resources, the
workplace or as otherwise defined in any Environmental Law.

 

“Environmental Claim” means any claim,
notice, demand, order, action, suit, proceeding or other communication alleging
liability for investigation, remediation, removal, cleanup, response, corrective
action, damages to natural resources, personal injury, property damage, fines,
penalties or other costs resulting from, related to or arising out of
(i) the presence, Release or threatened Release in or into the Environment
of Hazardous Material at any location or (ii) any violation of
Environmental Law, and shall include any claim seeking damages, contribution, indemnification,
cost recovery, compensation or injunctive relief resulting from, related to or
arising out of the presence, Release or threatened Release of Hazardous Material
or alleged injury or threat of injury to health, safety or the Environment.

 

“Environmental Law” means any and all
applicable present and future treaties, laws, statutes, ordinances,
regulations, rules, decrees, orders, judgments, consent orders, consent decrees,
codes or other binding requirements, and the common law, relating to pollution
or protection of the Environment or of human health (to the extent relating to
Releases of or exposure to Hazardous Materials), or to the Release or threatened
Release of Hazardous Materials, or natural resource damages and any and all
Environmental Permits.

 

“Environmental Permit” means any
permit, license, approval, consent or other authorization required by or from a
Governmental Authority under Environmental Law.

 

“Equity Contribution” has the meaning
assigned to such term in the recitals hereto.

 

14

 

“Equity Interest” of any Person means
any and all shares, interests, rights to purchase, warrants, options, participation
or other equivalents of or interests in (however designated) equity of such
Person, including any preferred stock, convertible preferred equity certificate
(whether or not equity under local law), any limited or general partnership
interest and any limited liability company membership interest.

 

“Equity Investors” means one or more
funds affiliated with or managed by Sponsor.

 

“Equity Percentage” means 50%; provided
that if at the time of any prepayment required by Section 2.05(c)
hereof, (a) the Total Leverage Ratio as of the last day of the most recent
fiscal quarter for which financial statements have been delivered pursuant to Section
6.04(a) or (b) (together with the corresponding Officer’s
Certificate pursuant to Section 6.04) is less than or equal to 5.00:1.00
but greater than 3.50:1.00, then the percentage set forth above shall be deemed
to be 25% and (b) the Total Leverage Ratio as of the last day of the most recent
fiscal quarter for which financial statements have been delivered pursuant to Section
6.04(a) or (b) (together with the corresponding Officer’s
Certificate pursuant to Section 6.04) is less than or equal to
3.50:1.00, then the percentage set forth above shall be deemed to be 0%.

 

“ERISA” means the Employee Retirement
Income Security Act of 1974, as amended from time to time.

 

“ERISA Affiliate” means any trade or
business (whether or not incorporated) under common control with Holdings, Borrower
or a Subsidiary within the meaning of Section 414(b) or (c) of the Code (and
Sections 414(m) and (o) of the Code for purposes of provisions relating to
Section 412 of the Code).

 

“ERISA Event” means (a) a Reportable
Event with respect to a Pension Plan; (b) a withdrawal by Holdings, Borrower or
any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during
a plan year in which it was a substantial employer (as defined in Section 4001(a)(2)
of ERISA) or a cessation of operations that is treated as such a withdrawal
under Section 4062(e) of ERISA; (c) a complete or partial withdrawal that
results in or would reasonably be expected to result in the imposition of
withdrawal liability by Holdings or any ERISA Affiliate from a Multiemployer
Plan or notification that a Multiemployer Plan is in reorganization; (d) the
filing of a notice of intent to terminate, the treatment of a Pension Plan
amendment as a termination under Sections 4041 or 4041A of ERISA, or the
commencement of proceedings by the PBGC to terminate a Pension Plan or
Multiemployer Plan; (e) the receipt by an ERISA Entity of any notice concerning
the imposition of ERISA withdrawal liability or a determination that a Multiemployer
Plan is, or is expected to be, insolvent or in reorganization, within the
meaning of Title IV of ERISA; (f) an event or condition which constitutes
grounds under Section 4042 of ERISA for the termination of, or the appointment
of a trustee to administer, any Pension Plan or Multiemployer Plan; (g) the
imposition of any liability under Title IV of ERISA, other than for PBGC
premiums due but not delinquent under Section 4007 of ERISA, upon Holdings, Borrower
or any ERISA Affiliate; (h) the existence with respect to any Pension Plan of
an “accumulated funding deficiency” (as defined in Section 412 of the Code),
whether or not waived, the failure to make by its due date a required
installment under Section 412(m) of the Code with respect to any Pension Plan
or the failure to make any required contribution to a Multiemployer Plan; (i)
the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of
an application 

 

15

 

for a waiver of the minimum funding standard
with respect to any Pension Plan; (j) the making of any amendment to any
Pension Plan which could result in the imposition of a lien or the posting of a
bond or other security; or (k) the occurrence of a nonexempt prohibited
transaction (within the meaning of Section 4975 of the Code or Section 406 of
ERISA) which could result in a material liability to Holdings, Borrower or the
Subsidiaries.

 

“Eurodollar Base Rate” means, for such
Interest Period, the rate per annum equal to the British Bankers Association
LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other commercially
available source providing quotations of BBA LIBOR as reasonably designated by
the Administrative Agent from time to time) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period, for
Dollar deposits (for delivery on the first day of such Interest Period) with a
term equivalent to such Interest Period. 
If such rate is not available at such time for any reason, then the
“Eurodollar Base Rate” for such Interest Period shall be the rate per annum
determined by the Administrative Agent to be the rate at which deposits in
Dollars for delivery on the first day of such Interest Period in same day funds
in the approximate amount of the Eurodollar Rate Loan being made, continued or
converted by Bank of America and with a term equivalent to such Interest Period
would be offered by Bank of America’s London Branch to major banks in the
London interbank eurodollar market at their request at approximately 11:00 a.m.
(London time) two Business Days prior to the commencement of such Interest
Period.

 

“Eurodollar Rate” means for any
Interest Period with respect to a Eurodollar Rate Loan, a rate per annum
determined by the Administrative Agent pursuant to the following formula:

 

	
   

  	
  Eurodollar Rate =

  	
   

  	
  Eurodollar Base Rate

  	
   

  
	
   

  	
   

  	
  1.00 — Eurodollar Reserve Percentage

  

 

“Eurodollar Rate Loan” means a Loan
that bears interest at a rate based on the Eurodollar Rate.

 

“Eurodollar Rate Revolving Loan” means
a Revolving Loan that is a Eurodollar Rate Loan.

 

“Eurodollar Rate Term Loan” means a
Term Loan that is a Eurodollar Rate Loan.

 

“Eurodollar Reserve Percentage” means,
for any day during any Interest Period, the reserve percentage (expressed as a
decimal, carried out to five decimal places) in effect on such day, whether or
not applicable to any Lender, under regulations issued from time to time by the
FRB for determining the maximum reserve requirement (including any emergency,
supplemental or other marginal reserve requirement) with respect to Eurodollar
funding (currently referred to as “Eurocurrency liabilities”).  The Eurodollar Rate for each outstanding
Eurodollar Rate Loan shall be adjusted automatically as of the effective date
of any change in the Eurodollar Reserve Percentage.

 

“Event of Default” has the meaning assigned
to such term in Section 8.01.

 

16

 

“Excess
Cash Flow” means, with respect to Holdings and the
Subsidiaries on a consolidated basis for any Excess Cash Flow Period, EBITDA of
Holdings and the Subsidiaries on a consolidated basis for such Excess Cash Flow
Period, minus, without duplication,

 

(a)           Debt Service for such Excess Cash
Flow Period,

 

(b)           (i) any voluntary prepayments of Term
Loans during such Excess Cash Flow Period, (ii) any permanent voluntary
reductions during such Excess Cash Flow Period of Revolving Loan Commitments to
the extent that an equal amount of Revolving Loans was simultaneously repaid
and (iii) any voluntary prepayment permitted hereunder of term Indebtedness
during such Excess Cash Flow Period to the extent not financed, or intended to
be financed, using the proceeds of the incurrence of Indebtedness, so long as
the amount of such prepayment is not already reflected in Debt Service,

 

(c)           the aggregate consideration paid in
cash during such Excess Cash Flow Period in respect of Permitted Business Acquisitions
and other Investments permitted hereunder (less any amounts received in respect
thereof as a return of capital),

 

(d)           an amount in respect of Capital
Expenditures paid in cash during such Excess Cash Flow Period,

 

(e)           Taxes paid in cash by Holdings and
the Subsidiaries on a consolidated basis during such Excess Cash Flow Period or
that will be paid within six months after the close of such Excess Cash Flow
Period (provided that any amount so deducted that will be paid after the
close of such Excess Cash Flow Period shall not be deducted again in a
subsequent Excess Cash Flow Period) and for which reserves have been established,

 

(f)            an amount equal to any increase in
Working Capital of Holdings and the Subsidiaries for such Excess Cash Flow
Period,

 

(g)           cash expenditures made in respect of
Swap Agreements during such Excess Cash Flow Period, to the extent not
reflected in the computation of EBITDA or Interest Expense,

 

(h)           permitted dividends or distributions
or repurchases of its Equity Interests paid in cash by Holdings or Borrower
during such Excess Cash Flow Period and permitted dividends paid by any
Subsidiary to any Person other than Holdings or any of the Subsidiaries during
such Excess Cash Flow Period, in each case in accordance with Section
7.06(b),

 

(i)            to the extent not deducted in the
computation of Net Proceeds in respect of any asset disposition or condemnation
giving rise thereto, the amount of any mandatory prepayment of Indebtedness
(other than Indebtedness created hereunder or under any other Loan Document),
together with any interest, premium or penalties required to be paid (and actually
paid) in connection therewith, and

 

(j)            Tax Distributions which are paid
during the respective Excess Cash Flow Period or will be paid within six months
after the close of such Excess Cash Flow Period 

 

17

 

(as reasonably
determined in good faith by Holdings) to the extent, in each case, funded by
Holdings or Borrower, provided that to the extent such Tax Distributions
are not actually paid within such six month period such amounts shall be added
to Excess Cash Flow for the next succeeding Excess Cash Flow Period;

 

plus,
without duplication,

 

(1)           an amount equal to any decrease in
Working Capital for such Excess Cash Flow Period,

 

(2)           all proceeds received during such
Excess Cash Flow Period in respect of Capital Lease Obligations, purchase money
Indebtedness, Sale and Lease-Back Transactions pursuant to Section 7.03
and any other Indebtedness, in each case to the extent used to finance any
Capital Expenditure (other than Indebtedness under this Agreement to the extent
there is no corresponding deduction to Excess Cash Flow above in respect of the
use of such Borrowings),

 

(3)           all amounts referred to in clause (d)
above to the extent funded with the proceeds of the issuance of Equity Interests
of, or capital contributions to, Holdings after the Closing Date (to the extent
not previously used to prepay Indebtedness (other than Revolving Loans or
Swingline Loans), make any investment or capital expenditure or otherwise for
any purpose resulting in a deduction to Excess Cash Flow in any prior Excess
Cash Flow Period) or any amount that would have constituted Net Proceeds under
clause (a) of the definition of the term “Net Proceeds” if not so spent, in
each case to the extent there is a corresponding deduction from Excess Cash
Flow above,

 

(4)           to the extent any permitted Capital
Expenditures and the corresponding delivery of equipment referred to in clause
(d) above do not occur in the Excess Cash Flow Period of Holdings specified in
the certificate of Holdings provided pursuant to clause (d) above, the amount
of such Capital Expenditures that were not so made in the Excess Cash Flow
Period of Holdings specified in such certificates,

 

(5)           cash payments received in respect of
Swap Agreements during such Excess Cash Flow Period to the extent (i) not
included in the computation of EBITDA or (ii) such payments do not reduce Cash
Interest Expense,

 

(6)           any extraordinary or nonrecurring
gain realized in cash during such Excess Cash Flow Period (except to the extent
such gain consists of Net Proceeds subject to Section 2.05(c)),

 

(7)           to the extent deducted in the
computation of EBITDA, cash interest income, and

 

(8)           the amount related to items that were
deducted from or not added to Net Income in connection with calculating
Consolidated Net Income or were deducted from or not added to Consolidated Net
Income in calculating EBITDA to the extent either (x) such items represented
cash received by Holdings or any Subsidiary or (y) such items

 

18

 

do not
represent cash paid by Holdings or any Subsidiary, in each case on a
consolidated basis during such Excess Cash Flow Period.

 

“Excess Cash Flow Period” means
(i) the period taken as one accounting period beginning October 1, 2006
and ending on December 31, 2007 and (ii) each fiscal year of Holdings thereafter.

 

“Exchange Act” means the Securities Exchange
Act of 1934.

 

“Excluded Equity Issuances”
means (i) the issuance of Equity Interests by Holdings to Sponsor or any
other Permitted Investor, (ii) the issuance of Equity Interests by Holdings the
proceeds of which are used to fund Investments permitted by Section 7.04, (iii) the
issuance of Equity Interests by Holdings the proceeds of which are used to fund
Permitted Business Acquisitions, (iv) Equity Interests issued by Holdings
(x) as compensation to employees of Holdings or any of the Subsidiaries or (y)
to members of management of Holdings or any Subsidiary, in each case in the
ordinary course of business, and (v) Permitted Cure Securities.

 

“Excluded Taxes” means, with respect
to the Administrative Agent, any Lender, the L/C Issuer or any other recipient
of any payment to be made by or on account of any obligation of Borrower
hereunder, (a) Taxes imposed on or measured by overall net income or net
profits, franchise taxes imposed in lieu of net income taxes, and branch
profits or similar Taxes imposed, in each case, on it by a jurisdiction (or any
political subdivision thereof) as a result of the recipient being organized,
doing business or having its Lending Office in such jurisdiction or by reason
of any other connection between the jurisdiction imposing such Tax and such
Administrative Agent, Lender or L/C Issuer (other than a business or connection
arising or deemed to arise from any transaction contemplated under the Loan Documents)
and (b) in the case of a Foreign Lender (other than an assignee pursuant to a
request by Borrower under Section 10.13), (i) any U.S. federal withholding
Tax that is imposed on amounts payable to such Lender under a law in effect at
the time such Lender becomes a party hereto (or designates a new Lending Office),
except to the extent that such Lender (or its assignor, if any) was entitled,
immediately prior to the time of designation of a new Lending Office (or
assignment), to receive additional amounts from Borrower with respect to such
withholding Tax pursuant to Section 3.01(a); providedthat this subclause (b)(i) shall not apply to any Tax
imposed on a Lender in connection with an interest or participation in any Loan
or other obligation that such Lender was required to acquire pursuant to Section
2.13, and (ii) any Tax that is attributable to such Lender’s failure to
comply with Section 3.01(e).

 

“Executive Order” has the meaning assigned
to such term in Section 5.22(a).

 

“Extraordinary Receipts” means any
receipt by Holdings or any of the Subsidiaries of any insurance proceeds or
condemnation awards in respect of any equipment, fixed assets or real property
(including any improvements thereon) to replace or repair such equipment, fixed
assets or real property, tax refunds, indemnity payments or pension reversions,
in each case excluding any receipt by Holdings or any of the Subsidiaries in
the ordinary course of business.

 

“FCC” means the United States Federal
Communications Commission.

 

“Federal Funds Rate” means, for any
day, the rate per annum equal to the weighted average of the rates on overnight
Federal funds transactions with members of the Federal Reserve 

 

19

 

System arranged by Federal funds brokers on
such day, as published by the Federal Reserve Bank of New York on the Business
Day next succeeding such day; provided that (a) if such day is not a
Business Day, the Federal Funds Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next succeeding
Business Day, and (b) if no such rate is so published on such next succeeding
Business Day, the Federal Funds Rate for such day shall be the average rate
(rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to
Bank of America on such day on such transactions as reasonably determined by
the Administrative Agent.

 

“Fee Letter” means the fee letter
dated March 24, 2006 among Bank of America, N.A., Banc of America Bridge LLC,
Banc of America Securities LLC, Wachovia Bank, National Association, Wachovia
Investment Holdings, LLC, Wachovia Capital Markets, LLC, Barrington
Broadcasting LLC and Barrington Broadcasting Corporation (as predecessor to the
Borrower).

 

“Fees” means the Revolving Loan
Commitment Fees, the Letter of Credit Fees, the fronting fees and other fees
specified in the Fee Letter.

 

“Finance Subsidiary” means Barrington
Broadcasting Capital Corporation.

 

“Financial Officer” means, of any
Person, the chief financial officer, principal accounting officer, treasurer or
controller of such Person.

 

 “Financial
Performance Covenants” means the covenants of Holdings set forth in Sections
7.11 and 7.12.

 

“First Priority” means, with respect
to any Lien purported to be created in any Collateral pursuant to any Security
Document, that such Lien is the most senior Lien to which such Collateral is
subject (subject to Liens permitted by Section 7.02).

 

“Flow Through Entity” means an entity
that is treated as a partnership not taxable as a corporation, a grantor trust
or a disregarded entity for United States federal income tax purposes or
subject to treatment on a comparable basis for purposes of state, local or
foreign tax law.

 

“Foreign Lender” means a Lender that
is not a U.S. Person within the meaning of Section 7701(a)(30) of the Code.

 

“Foreign Subsidiary” means any direct
or indirect Subsidiary of Borrower which is not organized under the laws of the
United States, any State thereof or the District of Columbia.

 

“FRB” means the Board of Governors of
the Federal Reserve System of the United States.

 

“Fund” means any Person (other than a
natural Person) that is (or will be) engaged in making, purchasing, holding or
otherwise investing in commercial loans and similar extensions of credit in the
ordinary course.

 

“GAAP” means generally accepted
accounting principles in the United States set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute 

 

20

 

of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board, that
are applicable to the circumstances as of the date of determination,
consistently applied.

 

“Governmental Authority” means the
government of the United States or any other nation, or of any political
subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers
or functions of or pertaining to government (including any supranational bodies
such as the European Union or the European Central Bank).

 

“Governmental Real Property Disclosure
Requirements” means any applicable law of any Governmental Authority
requiring notification to the buyer, lessee, mortgagee, assignee or other
transferee of any Real Property, facility, establishment or business, or
notification, registration or filing to or with any Governmental Authority, in
connection with the sale, lease, mortgage, assignment or other transfer (including
any transfer of control) of any Real Property, facility, establishment or
business, of the actual or threatened presence or Release in or into the
Environment, or the use, disposal or handling of Hazardous Material on, at,
under or near the Real Property, facility, establishment or business to be
sold, leased, mortgaged, assigned or transferred.

 

“Granting Lender” has the meaning assigned
to such term in Section 10.06(g).

 

“Guarantors” means, collectively,Holdings and the Subsidiary Guarantors.

 

“Guaranty” means, collectively, the
guaranty made by the Guarantors in favor of the Collateral Agent on behalf of
the Secured Parties, substantially in the form of Exhibit  F,
together with each other guaranty and guaranty supplement in respect of the Obligations
delivered pursuant to Section 6.09(d).

 

“Hazardous Materials” means the
following:  hazardous substances;
hazardous wastes; polychlorinated biphenyls (“PCBs”) or any substance or
compound containing PCBs; asbestos or any asbestos-containing materials; radon
or any other radioactive materials including any source, special nuclear or
by-product material or microwaves; petroleum, crude oil or any fraction
thereof; and any other pollutant or contaminant or chemicals, wastes,
materials, compounds, constituents or substances, subject to regulation or
which can give rise to liability under any Environmental Law.

 

“Holdings” has the meaning assigned to
such term in the preamble hereto.

 

“Honor Date” has the meaning assigned
to such term in Section 2.03(c)(i).

 

“Improvements” means all on-site and
off-site improvements to the Property, constructed on the Property, together
with all fixtures, tenant improvements, and appurtenances now or later to be
located on the Property and/or in such improvements.

 

“Incremental Term Loan” has the
meaning assigned to such term in Section 2.01(c).

 

21

 

“Incremental Term Loan Borrowing”
means a borrowing consisting of Incremental Term Loans of the same Type and, in
the case of Eurodollar Rate Loans, having the same Interest Period.

 

“Incremental Term Loan Borrowing Date”
means each date on which Incremental Term Loans are incurred pursuant to Section
2.01(c).

 

“Incremental Term Loan Commitment”
means, for any Incremental Term Loan Lender, the commitment of such Incremental
Term Loan Lender to make Incremental Term Loans pursuant to Section 2.01(c)
on a given Incremental Term Loan Borrowing Date, as such commitment (x) is set
forth in the applicable Incremental Term Loan Commitment Agreement delivered pursuant
to Section 2.14(b) and (y) may be reduced pursuant to Section 2.06(c)
or terminated pursuant to Section 2.06.

 

“Incremental Term Loan Commitment
Agreement” means an Incremental Term Loan Commitment Agreement
substantially in the form of Exhibit M (appropriately completed as
contemplated by this Agreement and with such modifications as may be acceptable
to the Administrative Agent and Holdings).

 

“Incremental Term Loan Lender” has the
meaning assigned to such term in Section 2.14(b).

 

“Incremental Term Note” has the
meaning assigned to such term in Section 2.14(b).

 

“Indebtedness” of any Person means,
without duplication, (a) all obligations of such Person for borrowed money, (b)
all obligations of such Person evidenced by bonds, debentures, notes or similar
instruments, (c) all obligations of such Person under conditional sale or other
title retention agreements relating to property or assets purchased by such
Person, (d) all obligations of such Person issued or assumed as the deferred
purchase price of property or services (other than current trade liabilities
and current intercompany liabilities (but not any refinancings, extensions,
renewals or replacements thereof) incurred in the ordinary course of business
and maturing within 365 days after the incurrence thereof, Programming
Obligations, earnout obligations and reimbursement obligations in respect of
trade letters of credit obtained in the ordinary course of business with
expiration dates not in excess of 365 days from the date of issuance (x) to the
extent undrawn or (y) if drawn, to the extent repaid in full within ten
Business Days of any such drawing), (e) all guarantees by such Person of Indebtedness
of others, (f) all Capital Lease Obligations of such Person, (g) all payments
that such Person would have to make in the event of an early termination, on
the date Indebtedness of such Person is being determined, in respect of
outstanding Swap Agreements, (h) except as provided in clause (d) above, the
principal component of all obligations, contingent or otherwise, of such Person
as an account party in respect of letters of credit and (i) the principal
component of all obligations of such Person in respect of bankers’
acceptances.  The Indebtedness of any
Person shall include the Indebtedness of any partnership in which such Person
is a general partner, other than to the extent that the instrument or agreement
evidencing such Indebtedness expressly limits the liability of such Person in respect
thereof.

 

“Indemnified Taxes” means all Taxes
other than Excluded Taxes.

 

22

 

“Indemnitee” has the meaning assigned
to such term in Section 10.04(b).

 

“Information” has the meaning assigned
to such term in Section 5.15.

 

“Insurance Policies” means the
insurance policies and coverages required to be maintained by each Loan Party
which is an owner of or holder of any interest in the Mortgaged Property with
respect to the applicable Mortgaged Property pursuant to Section 6.02
and all renewals and extensions thereof.

 

“Insurance Requirements” means,
collectively, all provisions of the Insurance Policies, all requirements of the
issuer of any of the Insurance Policies and all orders, rules, regulations and
any other requirements of the National Board of Fire Underwriters (or any other
body exercising similar functions) binding upon each Loan Party which is an
owner of or holder of any interest in the Mortgaged Property and applicable to
the Mortgaged Property or any use or condition thereof.

 

“Intellectual Property” has the
meaning assigned to such term in Section 5.18.

 

“Interest Coverage Ratio” has the
meaning assigned to such term in Section 7.11.

 

“Interest Expense” means, with respect
to any Person for any period, without duplication, the sum of (a) gross
interest expense of such Person for such period on a consolidated basis, including
(i) the amortization of debt discounts and premium, (ii) the amortization
of all fees (including any fees, payment-in-kind interest and upfront costs
with respect to Swap Agreements) payable in connection with the incurrence of
Indebtedness to the extent included in interest expense, (iii) all commissions,
discounts and other fees and charges owed with respect to letters of credit and
bankers’ acceptance financing and net costs with respect to Swap Agreements in
respect of interest rates to the extent such net costs are allocable to such
period in accordance with GAAP and (iv) the portion of any payments or accruals
with respect to Capital Lease Obligations, synthetic leases, tax retention
operating leases, off-balance sheet loans and similar off-balance sheet
financing products allocable to interest expense and (b) capitalized interest
expense of such Person for such period. 
For purposes of the foregoing, gross interest expense shall be
determined after giving effect to any net payments made or received and costs
incurred by Holdings and the Subsidiaries with respect to Swap Agreements.

 

“Interest Payment Date” means (a) as
to any Loan other than a Base Rate Loan, the last day of each Interest Period
applicable to such Loan and the Revolving Loan Maturity Date or Term Loan
Maturity Date, as the case may be; provided
that if any Interest Period for a Eurodollar Rate Loan exceeds three months,
the respective dates that fall every three months after the beginning of such Interest
Period shall also be Interest Payment Dates; and (b) as to any Base Rate Loan
(including a Swing Line Loan), March 31, June 30, September 30
and December 31 of each year and the Revolving Loan Maturity Date or Term
Loan Maturity Date, as the case may be; provided that if any such date
is not a Business Day then such date shall fall on the next preceding Business
Day.

 

“Interest Period” means, as to each
Eurodollar Rate Loan, the period commencing on the date such Eurodollar Rate
Loan is disbursed or converted to or continued as a Eurodollar Rate Loan and
ending on the date one, two, three or six months thereafter or (ii) if agreed
to by all 

 

23

 

Revolving Loan Lenders or Term Loan Lenders,
as applicable, nine or twelve months thereafter, in each case as selected by
Borrower in a Borrowing or Conversion Notice; provided that:

 

(i)            any Interest Period that would
otherwise end on a day that is not a Business Day shall be extended to the next
succeeding Business Day unless such Business Day falls in another calendar
month, in which case such Interest Period shall end on the next preceding Business
Day;

 

(ii)           any Interest Period that begins on
the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of the calendar month at the end of
such Interest Period; and

 

(iii)          no Interest Period shall extend beyond
the Revolving Loan Maturity Date, in the case of an Interest Period applicable
to Revolving Loans, or the Term Loan Maturity Date, in the case of an Interest
Period applicable to Term Loans.

 

“Investment” has the meaning assigned
to such term in Section 7.04.

 

“IRS” means the United States Internal
Revenue Service.

 

“ISP” means, with respect to any
Letter of Credit, the “International Standby Practices 1998” published by the
Institute of International Banking Law & Practice (or such later version
thereof as may be in effect at the time of issuance).

 

“Issuer Documents” means with respect
to any Letter of Credit, the Letter Credit Application, and any other document,
agreement and instrument entered into by the L/C Issuer and Borrower (or any
Subsidiary) or in favor the L/C Issuer and relating to any such Letter of
Credit.

 

“Laws” means, collectively, all
applicable international, foreign, Federal, state and local statutes, treaties,
rules, regulations, ordinances, codes and administrative or judicial
precedents, including the interpretation or administration thereof by any
Governmental Authority charged with the enforcement, interpretation or
administration thereof, and all applicable administrative orders, directed
duties, licenses, authorizations and permits of, and agreements with, any Governmental
Authority.

 

“L/C Advance” means, with respect to
each Revolving Loan Lender, such Revolving Loan Lender’s funding of its
participation in any L/C Borrowing in accordance with its Pro Rata Share.

 

“L/C Borrowing” means an extension of
credit resulting from a drawing under any Letter of Credit which has not been
reimbursed on the date when made or refinanced as a Revolving Loan Borrowing.

 

“L/C Credit Extension” means, with
respect to any Letter of Credit, the issuance thereof, extension of the expiry
date thereof or the increase of the amount thereof.

 

24

 

“L/C Issuer” has the meaning assigned
to such term in the introductory paragraph hereto, together with any other
Revolving Lender (or Affiliate thereof) that agrees in writing with Borrower
and the Administrative Agent to act as an L/C Issuer, in its capacity as issuer
of Letters of Credit hereunder, and includes any successor issuer of Letters of
Credit hereunder.

 

“L/C Obligations” means, as at any
date of determination, the aggregate amount available to be drawn under all
outstanding Letters of Credit plus the aggregate of all Unreimbursed
Amounts, including all L/C Borrowings. 
For purposes of computing the amount available to be drawn under any
Letter of Credit, the amount of such Letter of Credit shall be determined in accordance
with Section 1.06.  For all purposes
of this Agreement, if on any date of determination a Letter of Credit has
expired by its terms but any amount may still be drawn thereunder by reason of
the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to
be “outstanding” in the amount so remaining available to be drawn.

 

“Leases” means any and all leases, subleases,
tenancies, options, concession agreements, rental agreements, occupancy agreements,
franchise agreements, access agreements and any other similar agreements
(including all amendments, extensions, replacements, renewals, modifications
and/or guarantees thereof), whether or not of record and whether now in
existence or hereafter entered into, affecting the use or occupancy of all or
any portion of any Real Property.

 

“Lender” has the meaning assigned to
such term in the introductory paragraph hereto, together with any Incremental
Term Loan Lender or any Person that subsequently becomes a Lender by way of
assignment in accordance with the terms of Section 10.06, together with
their respective successors, other than any Person that ceases to be a Lender
as a result of an assignment in accordance with Section 10.06 or an
amendment of this Agreement and, as the context requires, includes the Swing
Line Lender.

 

“Lending Office” means, as to any
Lender, the office or offices of such Lender described as such in such Lender’s
Administrative Questionnaire, or such other office or offices as a Lender may
from time to time notify Borrower and the Administrative Agent.

 

“Letter of Credit” means any letter of
credit issued hereunder.  A Letter of
Credit may be a commercial letter of credit or a standby letter of credit.

 

“Letter of Credit Application” means
an application and agreement for the issuance or amendment of a Letter of
Credit in the form from time to time in use by the L/C Issuer.

 

“Letter of Credit Expiration Date”
means (i) in the case of standby letters of credit, the day that is three
Business Days prior to the Revolving Loan Maturity Date then in effect (or, if
such day is not a Business Day, the next preceding Business Day) and (ii) in
the case of trade letters of credit, the day that is 30 days prior to the
Revolving Loan Maturity Date then in effect (or, if such day is not a Business
Day, the next preceding Business Day).

 

“Letter of Credit Fee” has the meaning
assigned to such term in Section 2.03(i).

 

“Letter of Credit Sublimit” means the
lesser of (a) $5.0 million and (b) the Aggregate Revolving Loan
Commitments.  The Letter of Credit
Sublimit is part of, and not in addition to, the Aggregate Revolving Loan
Commitment.

 

25

 

“Licenses” has the meaning assigned to
such term in Section 5.23.

 

“License Subsidiary” means a Wholly
Owned Subsidiary of Borrower (i) formed for the purpose of holding Licenses,
(ii) holding Licenses (in each case of (i) and (ii), such licenses issued to or
to be issued to Borrower or any of its Subsidiaries in the operation of their respective
businesses) or (iii) which owns an entity described in (i) or (ii).

 

“Lien” means, with respect to any
asset, (a) any mortgage, deed of trust, lien, hypothecation, pledge,
encumbrance, claim, charge, security interest, assignment or encumbrance of any
kind or any arrangement to provide priority or preference or any filing of any
financing statement under the UCC or any other similar notice of liens under
any similar notice or recording statute of any Governmental Authority,
including any easement, right of way or other encumbrance on title to Real
Property, in each of the foregoing cases whether voluntary or imposed by law,
in or on such asset and any agreement to give any of the foregoing, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital
lease or title retention agreement (or any financing lease having substantially
the same economic effect as any of the foregoing) relating to such asset, and
(c) in the case of securities, any purchase option, call or similar right of a
third party with respect to such securities.

 

“Loan” means an extension of credit by
a Lender to Borrower under Article II in the form of a Revolving Loan, a
Term Loan, a Swing Line Loan or Incremental Term Loan (if any).

 

“Loan Documents” means this Agreement,
the Assumption Agreement, each Note, each Issuer Document, the Security Documents,
the Fee Letter and the Guaranty.

 

“Loan Parties” means, collectively,
Borrower and each Guarantor.

 

“Management Agreement” means the
Management Agreement, dated as of December 30, 2003, by and between Pilot Group
TV LLC, a Delaware limited liability company, and Barrington Broadcasting
Company, LLC, a Delaware limited liability company.

 

“Management Group” means the group
consisting of the directors, executive officers and other management personnel
of Holdings and Borrower, as the case may be, on the Closing Date together with
(1) any new directors whose election or whose nomination for election was approved
by a vote of a majority of the directors of Holdings or Borrower, as the case
may be, then still in office who were either directors on the Closing Date or
whose election or nomination was previously so approved and (2) executive
officers and other management personnel of Holdings or Borrower, as the case
may be, hired at a time when the directors on the Closing Date together with
the directors so appointed, in accordance with clause (1) above, constituted a
majority of the directors of Holdings or Borrower, as the case may be.

 

“Material Adverse Effect” means
(a) on the Closing Date, a material adverse effect on the properties,
operations, business, financial condition or results of operation of the Acquired
Business other than any change, effect, event or occurrence resulting from (i)
changes in the United States economy in general or any Station’s Designated
Market Area (as defined by Neilsen Media Research or its successor) economy in
general, (ii) changes in United States stock market conditions in general,
(iii) changes in the United States broadcasting industry in general, (iv) any
war, outbreak or escalation of hostilities, or act of terrorism or (v) the
announcement of the existence 

 

26

 

of the asset purchase agreement related to
the Acquisition or the transactions contemplated under such agreement; and
(b) following the Closing Date, (i) a material adverse effect on the properties,
operations, business, financial condition or results of operation of Holdings
and its Subsidiaries, taken as a whole, (ii) a material impairment of the
ability of the Loan Parties to fully and timely perform their obligations under
any Loan Document; (iii) a material impairment of the rights or remedies
available to the Lenders or the Collateral Agent under any Loan Document; or
(iv) a material adverse effect on the Liens in favor of the Collateral
Agent (for its benefit and for the benefit of the other Secured Parties) on a
material portion of the Collateral or the priority of such Liens.

 

“Material Indebtedness” shall mean
Indebtedness (other than Loans and Letters of Credit) of any one or more of
Holdings or any Subsidiary in an aggregate principal amount exceeding $7.5 million.

 

“Material Subsidiary” shall mean, at
any date of determination, any Subsidiary (a) whose total assets at the last
day of the Test Period ending on the last day of the most recent fiscal period
for which financial statements have been delivered pursuant to Section 6.04(a)
or (b) were equal to or greater than 10% of the consolidated total assets of
Holdings and its consolidated Subsidiaries at such date, (b) whose gross
revenues for such Test Period were equal to or greater than 10% of the consolidated
gross revenues of Holdings and its consolidated Subsidiaries for such period,
in each case determined in accordance with GAAP or (c) that is a License Subsidiary
or that owns a License Subsidiary.

 

“Maximum Rate” has the meaning
assigned to such term in Section 10.09.

 

“Minority Lenders” has the meaning
assigned to such term in Section 10.01.

 

“Moody’s” means Moody’s Investors Service,
Inc.

 

“Mortgage” means an agreement,
including, but not limited to, a mortgage, deed of trust or any other document,
creating and evidencing a Lien on a Mortgaged Property in favor of the
Collateral Agent for the benefit of the Secured Parties, which shall be substantially
in the form of Exhibit N, with such schedules and including such
provisions as shall be necessary to conform such document to applicable local
or foreign law or as shall be customary under applicable local or foreign law.

 

“Mortgaged Properties” means the owned
real properties of Holdings, Borrower or any Subsidiary Guarantor set forth on Schedule
4.01(j) and designated therein as “Mortgaged Properties” and additional
owned real property (if any) of Loan Parties encumbered by a Mortgage pursuant
to Section 6.09.

 

“Multiemployer Plan” means any
employee benefit plan of the type described in Section 4001(a)(3) of
ERISA, to which Holdings, Borrower or any ERISA Affiliate makes or is obligated
to make contributions, or during the preceding five plan years, has made or
been obligated to make contributions.

 

27

 

“Net Income” means, with respect to
any Person, the net income (loss) of such Person, determined in accordance with
GAAP and before any reduction in respect of preferred stock dividends.

 

“Net Proceeds” means:

 

(a)           100% of the cash proceeds actually
received by Holdings or any of the Subsidiaries (including any cash payments
received by way of deferred payment of principal pursuant to a note or
installment receivable or purchase price adjustment receivable or otherwise and
including casualty insurance settlements and condemnation awards, but only as
and when received) from any Extraordinary Receipts or loss, damage, destruction
or condemnation of, or any sale, transfer or other disposition (including any
sale and leaseback of assets and any mortgage or lease of real property) to any
Person of any asset or assets of Holdings or any Subsidiary (other than those
pursuant to Section 7.05(a), (b), (c), (e), (f),
(g), (h), (i) or (k)), net of (i) attorneys’ fees,
accountants’ fees, investment banking fees, survey costs, title insurance
premiums, and related search and recording charges, transfer taxes, deed or
mortgage recording taxes, required debt payments, including payment of
outstanding principal amounts, premiums or penalties, if any, and interest, and
required payments of other obligations relating to or secured by the applicable
asset (other than pursuant hereto), other customary expenses and brokerage,
consultant and other customary fees actually incurred in connection therewith,
(ii) Taxes or Tax Distributions paid or payable as a result thereof and
(iii) appropriate amounts set up as a reserve against liabilities
associated with the assets or business so disposed of and retained by the
selling entity after such sale, transfer or other disposition, as reasonably
determined by Holdings, including, without limitation, pension and other
post-employment benefit liabilities, liabilities related to environmental
matters, liabilities related to post-closing purchase price adjustments and
liabilities related to any other indemnification obligation associated with the
assets or business so disposed of, provided that, upon any reversal, release
or termination of such reserve, all amounts not paid-out in connection
therewith shall be deemed to be “Net Proceeds” of such sale, transfer or other
disposition; provided that, if no Event of Default exists and Holdings
shall deliver a certificate of a Responsible Officer of Holdings to the
Administrative Agent promptly following receipt of any such proceeds setting
forth Borrower’s intention to use or contractually commit to use any portion of
such proceeds to acquire, maintain, develop, construct, improve, upgrade or
repair assets useful in the business of Holdings and the Subsidiaries, or make
investments pursuant to Section 7.04(m), in each case within 12 months
of such receipt such portion of such proceeds shall not constitute Net Proceeds
except to the extent not so used (or contractually committed to be used) within
such 12-month period (provided that if contractually committed to be
used within such 12-month period, they must actually be used within 180 days
after the end of such 12-month period or they will then be deemed Net
Proceeds); and provided, further, that no such transactions
resulting in aggregate proceeds of less than $2.0 million in any fiscal year
shall constitute Net Proceeds,

 

(b)           100% of the cash proceeds from the
incurrence, issuance or sale by Holdings or any Subsidiary of any Indebtedness
(other than Indebtedness permitted to be incurred under Section 7.01),
net of all taxes and fees (including investment banking fees), 

 

28

 

commissions,
costs and other expenses (including attorneys’ fees and accountants’ fees), in
each case incurred in connection with such issuance or sale, and

 

(c)           the Equity Percentage of the cash
proceeds from the issuance or sale by Holdings of any Equity Interests (other
than Excluded Equity Issuances), net of all taxes and fees (including
investment banking fees), commissions, costs and other expenses, in each case
incurred in connection with such issuance or sale.

 

For purposes
of calculating the amount of Net Proceeds, fees, commissions and other costs
and expenses payable to Holdings or Borrower or any Affiliate of either of them
shall be disregarded, except for financial advisory fees customary in type and
amount paid to Sponsor.

 

“New SagamoreHill Facility” means the
$2.45 million credit facility dated as of August 11, 2006, among SagamoreHill
of Carolina, LLC, SagamoreHill of Carolina Licenses, LLC, Bank of America, N.A.
and the other lenders thereunder, as in effect on the Closing Date.

 

“Non-Extension Notice Date” has the
meaning assigned to such term in Section 2.03(b).

 

“Non-Guarantor Subsidiary” means any
Subsidiary of Borrower that is not a Guarantor.

 

“Note” means a Revolving Loan Note,
Term Loan Note, Incremental Term Note or Swing Line Loan Note, as the context
may require.

 

“Obligations” means obligations of
Borrower and the other Loan Parties from time to time arising under or in
respect of the due and punctual payment of (i) the principal of and premium, if
any, and interest (including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether allowed
or allowable in such proceeding) on the Loans, when and as due, whether at
maturity, by acceleration, upon one or more dates set for prepayment or
otherwise, (ii) each payment required to be made by Borrower and the other
Loan Parties under this Agreement in respect of any Letter of Credit, when and
as due, including payments in respect of L/C Advances, interest thereon and
obligations to provide cash collateral and (iii) all other monetary
obligations, including fees, costs, expenses and indemnities, owing by Borrower
and the other Loan Parties under this Agreement and the other Loan Documents.

 

“OFAC” has the meaning assigned to
such term in Section 5.22(b).

 

“Officer’s Certificate” means a
certificate executed by a Responsible Officer in his or her official (and not
individual) capacity.

 

“on” when used with respect to the
Property or any property adjacent to the Property, means “on, in, under, above
or about.”

 

“Other Taxes” means all present or
future stamp or documentary taxes or any other excise taxes, or similar charges
or levies with respect to any payment made hereunder or under any other Loan
Document or arising from the execution, delivery or enforcement of, or otherwise
with respect to, this Agreement or any other Loan Document.

 

29

 

“Outstanding Amount” means (a) with
respect to Revolving Loans on any date, the aggregate outstanding principal
amount thereof after giving effect to any borrowings and prepayments or
repayments of such Revolving Loans occurring on such date; (b) with respect to
Term Loans on any date, the aggregate outstanding principal amount thereof
after giving effect to any borrowings and prepayments or repayments of such
Term Loans occurring on such date; (c) with respect to Swing Line Loans on any
date, the aggregate outstanding principal amount thereof after giving effect to
any borrowings and prepayments or repayments of such Swing Line Loans occurring
on such date; and (d) with respect to any L/C Obligations on any date, the
amount of such L/C Obligations on such date after giving effect to any L/C
Credit Extension occurring on such date and any other changes in the aggregate
amount of the L/C Obligations as of such date, including as a result of any
reimbursements by Borrower of Unreimbursed Amounts.

 

“Parent Company” has the meaning
assigned to such term in the definition of “Change of Control” in this
Agreement.

 

“Participant” has the meaning assigned
to such term in Section 10.06(d).

 

“PBGC” means the Pension Benefit Guaranty
Corporation.

 

“Pension Plan” means any “employee
pension benefit plan” (as such term is defined in Section 3(2) of ERISA), other
than a Multiemployer Plan, that is subject to Title IV of ERISA and is
sponsored or maintained by Holdings, Borrower or any ERISA Affiliate or to
which Holdings, Borrower or any ERISA Affiliate contributes or has an
obligation to contribute, or in the case of a multiple employer or other plan
described in Section 4064(a) of ERISA, has made contributions at any time
during the immediately preceding five plan years.

 

“Perfection Certificate” means a
certificate substantially in the form of Exhibit H.

 

“Permitted Business Acquisition” means
any acquisition of all or any portion of the assets of, or all the Equity
Interests (other than directors’ qualifying shares) in, a Person or division or
line of business of a Person (or any subsequent investment made in a Person,
division or line of business previously acquired in a Permitted Business
Acquisition) if (a) such acquisition was not preceded by, or effected pursuant
to, an unsolicited or hostile offer and (b) immediately after giving effect
thereto:  (i) no Event of Default shall
have occurred and be continuing or would result therefrom; (ii) all
transactions related thereto shall be consummated in accordance with all
material applicable laws; and (iii) (A) Holdings and the Subsidiaries shall be
in compliance, on a Pro Forma Basis after giving effect to such acquisition or
formation, with the Financial Performance Covenants recomputed as at the last
day of the most recently ended fiscal quarter of Holdings and the Subsidiaries,
and Holdings shall have delivered to the Administrative Agent a certificate of
a Responsible Officer of Holdings to such effect, together with all relevant
financial information for such Subsidiary or assets, (B) any acquired or newly
formed Subsidiary shall not be liable for any Indebtedness (except for
Indebtedness permitted by Section 7.01), (C) such acquisition of assets
or Equity Interests shall be made by Holdings, Borrower or a Subsidiary
Guarantor and in the case of the acquisition of Equity Interests, the
Subsidiary acquired shall become a Subsidiary Guarantor and Holdings, Borrower
or a Subsidiary Guarantor, as the case may be, shall take the actions required
to 

 

30

 

be taken under Section 6.09 and (D)
all actions required to be taken, if any, with respect to such acquired or
newly formed Subsidiary or acquired properties under Section 6.09
shall have been taken.

 

“Permitted Cure Securities” means (i)
any common equity securities of Holdings and/or (ii) any other equity
securities of Holdings having no mandatory redemption, repurchase or similar
requirements prior to 91 days after the Term Loan Maturity Date, and upon which
all dividends or distributions (if any) shall be payable solely in additional
shares of such equity securities or common equity securities of Holdings.

 

“Permitted Holders” means each of (i)
Sponsor, (ii) any other Permitted Investor, (iii) the Management Group,
with respect to not more than 10% of the total voting power of the Equity
Interests of Holdings or, after an initial public offering of its stock, any
Parent Company of Holdings, as the case may be, or (iv) any Person acting in
the capacity of an underwriter in connection with a public or private offering
of Equity Interests of Holdings or any Parent Company of Holdings.

 

“Permitted Investments” means:

 

(a)           direct obligations of the United
States of America or any member of the European Union or any agency thereof or
obligations guaranteed by the United States of America or any member of the
European Union or any agency thereof, in each case with maturities not
exceeding one year;

 

(b)           cash, cash held in time deposit
accounts, certificates of deposit and money market deposits maturing within 180
days of the date of acquisition thereof issued by a bank or trust company that
is organized under the laws of the United States of America, any state thereof
or any foreign country recognized by the United States of America having
capital, surplus and undivided profits having a Dollar Equivalent that is in
excess of $500.0 million and whose long-term debt, or whose parent holding company’s
long-term debt, is rated A by S&P (or such similar equivalent rating or
higher by at least one nationally recognized statistical rating organization
(as defined in Rule 436 under the Securities Act));

 

(c)           repurchase obligations with a term of
not more than 180 days for underlying securities of the types described in
clause (a) above entered into with a bank meeting the qualifications described
in clause (b) above;

 

(d)           commercial paper, maturing not more
than one year after the date of acquisition, issued by a corporation (other
than an Affiliate of Borrower) organized and in existence under the laws of the
United States of America or any foreign country recognized by the United States
of America with a rating at the time as of which any investment therein is made
of P-1 (or higher) according to Moody’s or A-1 (or higher) according to
S&P;

 

(e)           securities with maturities of one
year or less from the date of acquisition issued or fully guaranteed by any
State, commonwealth or territory of the United States of America, or by any
political subdivision or taxing authority thereof, and rated at least A by
S&P or A2 by Moody’s;

 

31

 

(f)            shares of mutual funds whose
investment guidelines restrict 95% of such funds’ investments to those satisfying
the provisions of clauses (a) through (e) above;

 

(g)           money market funds that (i) comply
with the criteria set forth in Rule 2a-7 under the Investment Company Act of
1940 and (ii) are rated AAA by S&P and Aaa by Moody’s; and

 

(h)           time deposit accounts, certificates
of deposit and money market deposits in an aggregate face amount not in excess
of 1/2 of 1% of the total assets of Holdings and the Subsidiaries, on a
consolidated basis, as of the end of Holdings’ most recently completed fiscal
year.

 

“Permitted Investors” means (i)
Sponsor and (ii) other investors that provide a portion of the Equity
Contribution and their Affiliates; provided that (x) all such other
investors shall be reasonably satisfactory to the Lenders and (y) the majority
of the Equity Contribution shall be provided by Sponsor.

 

“Permitted Refinancing Indebtedness”
means any Indebtedness issued in exchange for, or the net proceeds of which are
used to extend, refinance, renew, replace, defease or refund (collectively, to
“Refinance”), the Indebtedness being Refinanced (or previous refinancings
thereof constituting Permitted Refinancing Indebtedness); provided that
(a) the principal amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the principal amount (or accreted
value, if applicable) of the Indebtedness so Refinanced (plus unpaid accrued
interest and premium thereon), (b) such Permitted Refinancing Indebtedness has
a later or equal stated maturity and longer or equal Weighted Average Life to
Maturity than the Indebtedness being Refinanced, (c) if the Indebtedness being
Refinanced is subordinated in right of payment to the Obligations under this
Agreement, such Permitted Refinancing Indebtedness shall be subordinated in
right of payment to such Obligations on terms, taken as a whole, at least as favorable
to the Lenders as those contained in the documentation governing the
Indebtedness being Refinanced, (d) no Permitted Refinancing Indebtedness shall
have different obligors, or greater guarantees or security, than the Indebtedness
being Refinanced and (e) if the Indebtedness being Refinanced is secured by any
collateral (whether equally and ratably with, or junior to, the Secured Parties
or otherwise), such Permitted Refinancing Indebtedness may be secured by such
collateral on terms, taken as a whole, no less favorable to the Secured Parties
than those contained in the documentation governing the Indebtedness being Refinanced.

 

“Person” means any natural person,
corporation, limited liability company, trust, joint venture, association,
company, partnership, Governmental Authority or other entity.

 

“Platform” has the meaning assigned to
such term in Section 6.04.

 

“Premises” has the meaning assigned
thereto in the applicable Mortgage.

 

“Presumed Tax Rate” means, where the
entity in question has (to the knowledge of the entity in question) both
corporate and non-corporate owners (including beneficial owners if a direct
owner is a Flow Through Entity) for the applicable period, the greater of
(x) the highest effective marginal statutory combined U.S. federal, state
and local income tax rate prescribed for an individual residing in New York
City (taking into account (i) the deductibility of state and local

 

32

 

income taxes for U.S. federal income tax
purposes, assuming the limitation of Section 68(a)(2) of the Code applies and
taking into account any impact of the Code, and (ii) the character (long-term
or short-term capital gain, dividend income or other ordinary income) of the
applicable income) and (y) the highest combined U.S. federal, state and
local tax rate prescribed for a corporation doing business in New York City
(taking into account the deductibility of state and local income taxes for U.S.
federal income tax purposes), or if there are, to the knowledge of the entity
in question, only non-corporate owners or corporate owners (including
beneficial owners if a direct owner is a Flow Through Entity) for the
applicable period, either (x) or (y) as applicable.

 

“Pro Forma Basis” means as to any
Person, for any events as described in clauses (i) and (ii) below that occur
subsequent to the commencement of a period for which the financial effect of
such events is being calculated, and giving effect to the events for which such
calculation is being made, such calculation as will give pro forma effect to such events as if such events occurred on the
first day of the four consecutive fiscal quarter period or eight consecutive
fiscal quarter period, as the case may be, ended on or before the occurrence of
such event (the “Reference Period”):

 

(i)            in making any determination of
EBITDA, pro forma effect shall be given to
any Asset Disposition and to any Asset Acquisition (or any similar transaction
or transactions that require a waiver or consent of the Required Lenders
pursuant to Section 7.04 or 7.05), in each case that occurred
during the Reference Period (or, in the case of determinations made pursuant to
the definition of the term “Asset Acquisition,” occurring during the Reference
Period or thereafter and through and including the date upon which the
respective Asset Acquisition is consummated); and

 

(ii)           in making any determination on a Pro
Forma Basis, (x) all Indebtedness (including Indebtedness incurred or assumed
and for which the financial effect is being calculated, whether incurred under
this Agreement or otherwise, but excluding normal fluctuations in revolving
Indebtedness incurred for working capital purposes not to finance any
acquisition) incurred or permanently repaid during the Reference Period (or, in
the case of determinations made pursuant to the definition of the term “Asset
Acquisition,” occurring during the Reference Period or thereafter and through
and including the date upon which the respective Asset Acquisition is consummated)
shall be deemed to have been incurred or repaid at the beginning of such period
and (y) Interest Expense of such Person attributable to interest on any
Indebtedness, for which pro forma effect is
being given as provided in preceding clause (x), bearing floating interest
rates shall be computed on a pro forma
basis as if the rates that would have been in effect during the period for
which pro forma effect is being given had
been actually in effect during such periods.

 

Pro forma
calculations made pursuant to the definition of the term “Pro Forma Basis”
shall include (A) the acquisition of the following stations: (i) KRCG
(Jefferson City - Columbia, MO) (acquisition completed in February 2005), (ii)
KVII (Amarillo, TX) and KVIH (Clovis, NM) (both acquisitions completed August
2005) and (iii) WPDE (Myrtle Beach, SC) and WWMB (Myrtle Beach, SC) (both
acquisitions completed February 2006) and (B) the not-yet-realized cost savings
described in clause (iv) of the definition of “EBITDA.”

 

33

 

Pro forma
calculations made pursuant to the definition of the term “Pro Forma Basis”
shall be determined in good faith by a Responsible Officer of Holdings and (x)
for any fiscal period ending on or prior to the first anniversary of an Asset
Acquisition or Asset Disposition (or any similar transaction or transactions
that require a waiver or consent of the Required Lenders pursuant to Section
7.04 or 7.05), may include adjustments to reflect operating expense
reductions and other operating improvements or synergies reasonably expected to
result from such Asset Acquisition, Asset Disposition or other similar
transaction (provided that any such reductions, improvements or synergies
related to or arising from headcount reductions shall be limited to those
reasonably expected to be achieved within 120 days following the closing of
such transaction), to the extent that Holdings delivers to the Administrative
Agent (i) a certificate of a Financial Officer of Holdings setting forth such
operating expense reductions and other operating improvements or synergies and
(ii) information and calculations supporting in reasonable detail such
estimated operating expense reductions and other operating improvements or
synergies and (y) for any fiscal period ending prior to the first anniversary
of the Closing Date, pro forma effect shall be given to the
Transactions in determining EBITDA so long as the required certifications
described in preceding clause (x) are specifically included in reasonable
detail in the respective Officer’s Certificate and related information and
calculations.

 

“Programming Cash Payments” means, for
any period, the sum (determined on a consolidated basis in accordance with
GAAP) of all payments actually made by Holdings, Borrower or any of the
Subsidiaries during such period on Programming Obligations that were existing
as of, or have been incurred at any time after, the Closing Date.

 

“Programming Obligations” means all
obligations in respect of the purchase, use, license or acquisition of
programs, programming materials, films and similar assets used in connection
with the business and operation of Holdings, Borrower and the Subsidiaries.

 

“Projections” has the meaning assigned
to such term in Section 5.15.

 

“Pro Rata Share” means, with respect
to each Lender at any time, a fraction (expressed as a percentage carried out
to the ninth decimal place), the numerator of which is the amount of the
Commitments of such Lender under the applicable Class of Loans at such time and
the denominator of which is the amount of the Aggregate Commitments under the
applicable Class of Loans at such time; provided that if such Commitments
have been terminated, then the Pro Rata Share of each Lender shall be
determined based on the Pro Rata Share of such Lender immediately prior to such
termination and after giving effect to any subsequent assignments made pursuant
to the terms hereof.

 

“Property” means any right, title or
interest in or to property or assets of any kind whatsoever, whether real,
personal or mixed and whether tangible or intangible and including Equity
Interests or other ownership interests of any Person and whether now in
existence or owned or hereafter entered into or acquired, including all Real
Property.

 

“Public Lender” has the meaning
assigned to such term in Section 6.04.

 

“Raycom” has the meaning assigned to
such term in the recitals hereto.

 

34

 

“Real Property” means, collectively,
all right, title and interest (including any leasehold, mineral or other
estate) in and to any and all parcels of or interests in real property owned,
leased or operated by any Person, whether by lease, license or other means, together
with, in each case, all easements, hereditaments and appurtenances relating
thereto, all improvements and appurtenant fixtures and equipment, and other
property and rights incidental to the ownership or lease thereof.

 

“Refinanced Term Loans” has the
meaning assigned to such term in Section 10.01.

 

“Refinancing” has the meaning assigned
to such term in the recitals hereto.

 

“Register” has the meaning specified
in Section 10.06(c).

 

“Regulation U” shall mean Regulation U
of the FRB as from time to time in effect and all official rulings and
interpretations thereunder or thereof.

 

“Related Parties” means, with respect
to any Person, such Person’s Affiliates and the partners, directors, officers,
employees, agents, advisors and trustees of such Person and of such Person’s
Affiliates.

 

“Release” means any spilling, leaking,
seepage, pumping, pouring, emitting, emptying, discharging, injecting,
escaping, leaching, dumping, disposing, depositing, dispersing, emanating or
migrating of any Hazardous Material in, into, onto or through the Environment.

 

“Remaining Present Value” means, as of
any date with respect to any lease, the present value as of such date of the
scheduled future lease payments with respect to such lease, determined with a
discount rate equal to a market rate of interest for such lease reasonably
determined at the time such lease was entered into.

 

“Replacement Term Loans” has the
meaning assigned to such term in Section 10.01.

 

“Reportable Event” means any of the
events set forth in Section 4043(c) of ERISA, other than events for which the
30 day notice period has been waived.

 

“Request for Credit Extension” means
(a) with respect to a Borrowing, conversion or continuation of Revolving Loans
or Term Loans, a Borrowing or Conversion Notice, (b) with respect to an L/C
Credit Extension, a Letter of Credit Application and (c) with respect to a
Swing Line Loan, a Swing Line Loan Notice.

 

“Required Lenders” means, as of any
date of determination, Lenders having more than 50% of the sum of the (a) the
aggregate Outstanding Amount of all Loans and L/C Obligations (with the
aggregate amount of each Lender’s risk participation and funded participation
in L/C Obligations and Swing Line Loans being deemed “held” by such Lender for
purposes of this definition), (b) aggregate unused Term Loan Commitments and
(c) aggregate unused Revolving Loan Commitments; provided that the
unused Term Loan Commitment of, and the portion of the aggregate Outstanding
Amount of all Loans and L/C Obligations held or deemed held by, any Defaulting
Lender shall be excluded for purposes of making a determination of Required Lenders.

 

35

 

“Required Percentage” means, with
respect to an Excess Cash Flow Period, 50%; provided, that if at the
time of any prepayment required by Section 2.05(c) in respect of such Excess
Cash Flow Period, (a)(i) the Total Leverage Ratio as of the last day of the
most recent fiscal quarter for which financial statements have been delivered
pursuant to Section 6.04(a) or (b) (together with the corresponding
Officer’s Certificate pursuant to Section 6.04) is less than or equal to
4.00:1.00 but greater than 3.00:1.00 and (ii) no Event of Default has occurred
and is continuing, such percentage shall be 25% and (b)(i) the Total Leverage
Ratio as of the last day of the most recent fiscal quarter for which financial
statements have been delivered pursuant to Section 6.04(a) or (b)
(together with the corresponding Officer’s Certificate pursuant to Section
6.04) is less than or equal to 3.00:1.00 and (ii) no Event of Default has
occurred and is continuing, such percentage shall be 0%.

 

“Response” means (a) ”response”
as such term is defined in CERCLA, 42 U.S.C. § 9601(24), and (b) all
other actions required by any Governmental Authority or voluntarily undertaken
to (i) clean up, remove, treat, abate or in any other way address any
Hazardous Material in the Environment; (ii) prevent the Release or threat
of Release, or minimize the further Release, of any Hazardous Material; or
(iii) perform studies, investigations and monitoring in connection with,
or as a precondition to, clause (i) or (ii) above.

 

“Responsible Officer” means the chief
executive officer, president or chief financial officer of a Loan Party.

 

“Revolving Loan” has the meaning assigned
to such term in Section 2.01(b).

 

“Revolving Loan Borrowing” means a
borrowing consisting of Revolving Loans of the same Type, and, in the case of
Eurodollar Rate Loans, having the same Interest Period.

 

“Revolving Loan Commitment” means, as
to each Revolving Loan Lender, its obligation to (a) make Revolving Loans to
Borrower pursuant to Section 2.01(b), (b) purchase participations in L/C
Obligations, and (c) purchase participations in Swing Line Loans, in an
aggregate principal amount at any one time outstanding not to exceed the amount
set forth opposite such Revolving Loan Lender’s name on Schedule 2.01
under the heading “Revolving Loan Commitment” or in the Assignment and
Assumption pursuant to which such Revolving Loan Lender becomes a party hereto,
as applicable, as such amount may be adjusted from time to time in accordance
with this Agreement.  The aggregate
Revolving Loan Commitments of all Revolving Loan Lenders are $25.0 million on
the Closing Date, as such amount may be adjusted from time to time in
accordance with the terms of this Agreement.

 

“Revolving Loan Lender” means a Lender
with a Revolving Loan Commitment or with outstanding Revolving Loans.

 

“Revolving Loan Maturity Date” means
the earlier of (i) the sixth anniversary of the Closing Date and (ii) the date
of termination in whole of the Revolving Loan Commitments, the L/C Obligations,
and the Swing Line pursuant to Section 2.06(a) or 8.01.

 

“Revolving Loan Note” means a
promissory note made by Borrower in favor of a Revolving Loan Lender or its
registered assigns, substantially in the form of Exhibit C-2,
evidencing Revolving Loans made by such Revolving Loan Lender to Borrower.

 

36

 

“SagamoreHill Facility” means the
credit facility dated February 6, 2006 among SagamoreHill of Carolina, LLC,
SagamoreHill of Carolina Licenses, LLC, CIT Lending Services Corporation and
the other lenders thereunder.

 

“SagamoreHill Time Brokerage Agreement”
means the Time Brokerage Agreement, dated as of April 28, 1994, by and between
Atlantic Media Group, Inc. (“Atlantic”), as licensee, and Vision
Communications, Inc. (“Vision”), as programmer/time broker; as amended
by that certain Amendment to and Extension of Time Brokerage Agreement, dated
as of December 9, 2003, by and between Atlantic and Diversified
Communications (“Diversified”), as the assignee of Vision; as further
amended by that certain Second Amendment to Time Brokerage Agreement, dated as
of July 19, 2005, by and between Atlantic and Diversified; as further
amended by that certain Third Amendment to Time Brokerage Agreement, dated as
of July 19, 2005, by and between SagamoreHill of Carolina, LLC, as the
contemplated assignee of Atlantic, and Barrington Broadcasting South Carolina
Corporation, a Delaware corporation; and as further amended by that certain
Fourth Amendment to Time Brokerage Agreement, dated as of February 6, 2006 by
and between Borrower and Barrington Broadcasting South Carolina Corporation, as
the same may be further amended, assigned, restated, extended or otherwise
modified from time to time.

 

“Sale and Lease-Back Transaction” has
the meaning assigned to such term in Section 7.03.

 

“SEC” means the Securities and
Exchange Commission, or any Governmental Authority succeeding to any of its
principal functions.

 

“Secured Obligations” means
(a) the Obligations, (b) the due and punctual payment of all obligations
of Borrower and the other Loan Parties under each Swap Agreement permitted to
be incurred pursuant to Section 7.01(d) entered into with any
counterparty that is a Secured Party, (c) the due and punctual payment of
all obligations in respect of any Treasury Management Agreement between any
Loan Party and any Person that is a Secured Party and (d) the due and punctual
payment of all obligations of the Loan Parties under that certain guarantee,
dated as of the Closing Date, pursuant to which the Loan Parties have
guaranteed the obligations of the borrower under the SagamoreHill Facility.

 

“Secured Parties” means, collectively,
(i) the Administrative Agent, (ii) the Collateral Agent, (iii) each other
Agent, (iv) the Lenders, (v) the L/C Issuer and (vi) each counterparty to
a Swap Agreement or Treasury Management Agreement permitted by Section 7.01(d)
with Holdings, Borrower or any Subsidiary Guarantor if at the date of entering
into such Swap Agreement or Treasury Management Agreement such Person was a
Lender or Affiliate of a Lender.

 

“Securities Act” means the Securities
Act of 1933.

 

“Securities Collateral” has the
meanings assigned to such term in the Security Agreement.

 

“Security Agreement” means a security
agreement substantially in the form of Exhibit G among the Loan Parties
and the Collateral Agent for the benefit of the Secured Parties.

 

37

 

“Security Agreement Collateral” means
all property pledged in which a security interest is created pursuant to the
Security Agreement (a) on the Closing Date or (b) thereafter pursuant to Section
6.09.

 

“Security Documents” means the
Security Agreement, the Mortgages and each other security agreement, pledge
agreement or other document or agreement delivered in accordance with
applicable law to grant, or purport to grant, a security interest in any Property
as collateral for the Secured Obligations.

 

“Sellers” has the meaning assigned to
such term in the recitals hereto.

 

“Senior Subordinated Notes” means
$125.0 million aggregate principal amount of senior subordinated notes of
Borrower and Finance Subsidiary, as co-issuers, issued on the Closing Date and
any notes issued in exchange therefor pursuant to the related registration
rights agreement.

 

“Senior Subordinated Note Guarantees”
means the guarantees of the Senior Subordinated Notes.

 

“Solvency Certificate” means a
certificate signed by a Responsible Officer of Borrower, substantially in the
form of Exhibit I.

 

“SPC” has the meaning assigned to such
term in Section 10.06(g).

 

“Specified Loan Party” means, at any
time, a Loan Party at such time if the Obligations owing by it (directly or by
guarantee) are unsecured by a Lien on its assets.

 

“Sponsor” means Pilot Group LP and its
affiliates or any other investment vehicle controlled by any of them.

 

“Station” means any television station
licensed by the FCC whose ownership is at the relevant time held by Holdings or
any of the Subsidiaries.

 

“Subordinated Indebtedness” means
Indebtedness of Borrower or any other Loan Party that is by its terms
subordinated in right of payment to the Obligations of Borrower and such other
Loan Party, as applicable.

 

“Subordinated Intercompany Debt” has
the meaning assigned to such term in Section 7.01(f).

 

“Subsidiary” means, with respect to any
Person (herein referred to as the “parent”), any corporation,
partnership, association or other business entity of which securities or other
ownership interests representing more than 50% of the equity or more than 50%
of the ordinary voting power or more than 50% of the general partnership
interests are, at the time any determination is being made, directly or
indirectly, owned, Controlled, or held (or that is, at the time any determination
is made, otherwise Controlled) by the parent or one or more subsidiaries of the
parent.  Unless the context otherwise
requires, all references herein to a “Subsidiary” or to “Subsidiaries” 

 

38

 

shall refer to a Subsidiary or Subsidiaries
of Holdings, and Subsidiaries of any Person shall include Persons that will
become Subsidiaries of such Person as a result of the Acquisition.

 

“Subsidiary Guarantors” means,
collectively, each existing and future direct and indirect Material Subsidiary
of Borrower and each other Subsidiary that provides a Guaranty pursuant to Section
6.09(d).

 

“Survey” means a survey of any
Mortgaged Property (and all improvements thereon) which is (a)
(i) prepared by a surveyor or engineer licensed to perform surveys in the
jurisdiction where such Mortgaged Property is located, (ii) dated (or redated)
not earlier than six months prior to the date of delivery thereof unless there
shall have occurred within six months prior to such date of delivery any
exterior construction on the site of such Mortgaged Property or any easement,
or right of way or other interest in the Mortgaged Property has been granted or
become effective through operation of law or otherwise with respect to such
Mortgaged Property which, in either case, can be depicted on a survey, in which
events, as applicable, such survey shall be dated (or redated) after the
completion of such construction or if such construction shall not have been
completed as of such date of delivery, not earlier than 20 days prior to
such date of delivery, or after the grant or effectiveness of any such
easement, right of way or other interest in the Mortgaged Property,
(iii) certified by the surveyor (in a manner reasonably acceptable to the
Administrative Agent) to the Administrative Agent, the Collateral Agent and the
Title Company, (iv) complying in all material respects with the minimum
detail requirements of the American Land Title Association as such requirements
are in effect on the date of preparation of such survey and (v) sufficient
for the Title Company to remove all standard survey exceptions from the title
insurance policy (or commitment) relating to such Mortgaged Property and issue
the endorsements of the type required under the definition of “Title Policy”
hereunder or (b) otherwise reasonably acceptable to the Collateral Agent.

 

“Swap Agreement” means any agreement
with respect to any swap, forward, future or derivative transaction or option
or similar agreement involving, or settled by reference to, one or more rates,
currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk
or value or any similar transaction or any combination of these transactions; provided
that no phantom stock or similar plan providing for payments only on account of
services provided by current or former directors, officers, employees or
consultants of Holdings or any of its Subsidiaries shall be a Swap Agreement.

 

“Swing Line” means the revolving
credit facility made available by the Swing Line Lender pursuant to Section
2.04.

 

“Swing Line Borrowing” means a
borrowing of a Swing Line Loan pursuant to Section 2.04.

 

“Swing Line Lender” has the meaning
assigned to such term in the preamble hereto, and includes any successor swing line
lender hereunder.

 

“Swing Line Loan” has the meaning assigned
to such term in Section 2.04(a).

 

39

 

“Swing Line Loan Note” means a
promissory note made by Borrower in favor of the Swing Line Lender or its
registered assigns, substantially in the form of Exhibit C-3
hereto, evidencing Swing Line Loans made by the Swing Line Lender.

 

“Swing Line Loan Notice” means a
notice of a Swing Line Borrowing pursuant to Section 2.04(b), which, if
in writing, shall be substantially in the form of Exhibit B.

 

“Swing Line Sublimit” means the lesser
of (a) $5.0 million and (b) the Aggregate Revolving Loan Commitments.  The Swing Line Sublimit is part of, and not
in addition to, the Aggregate Revolving Loan Commitments.

 

“Syndication Agent” has the meaning
assigned to such term in the introductory paragraph hereto.

 

“Tax Distribution” means any distribution
described in Section 7.06(e).

 

“Taxes” means all present or
future taxes, levies, imposts, duties, deductions, withholdings, assessments,
fees or other charges imposed by any Governmental Authority, including any interest,
additions to tax or penalties applicable thereto.

 

“Term Loan” has the meaning assigned
to such term in Section 2.01(a).

 

“Term Loan Borrowing” means a borrowing
consisting of Term Loans of the same Type and, in the case of Eurodollar Rate
Loans, having the same Interest Period.

 

“Term Loan Commitment” means, as to
each Term Loan Lender, its obligation to make a Term Loan to Borrower pursuant
to Section 2.01(a) in an aggregate amount not to exceed the amount set
forth opposite such Lender’s name on Schedule 2.01 under the caption
“Term Loan Commitment” or in the Assignment and Assumption pursuant to which
such Lender becomes a party hereto, as applicable, as such amount may be
adjusted from time to time in accordance with this Agreement.  The aggregate Term Loan Commitments of all
Term Loan Lenders at the Closing Date is $147.5 million on the Closing Date.

 

“Term Loan Lender” means a Lender with
a Term Loan Commitment or with outstanding Term Loans.

 

“Term Loan Maturity Date” means the
earlier of (i) the date which is seven years after the Closing Date and (ii)
the date of termination in whole of the Term Loan Commitments pursuant to Section
2.06(b) or 8.01.

 

“Term Loan Note” means a promissory
note made by Borrower in favor of a Term Loan Lender or its registered assigns,
substantially in the form of Exhibit C-1 hereto, evidencing Term Loans
made by such Term Loan Lender to Borrower.

 

“Test Period” means, on any date of
determination, the period of four consecutive fiscal quarters of Holdings then
last ended (in each case taken as one accounting period) for which financial
statements have been or are required to be delivered pursuant to Section 6.04(a)
or (b).

 

40

 

“Title Company” means Chicago Title
Insurance Company or any other title insurance company as shall be retained by
Borrower and reasonably acceptable to the Administrative Agent.

 

“Title Policy” means with respect to
each Mortgage, a policy of title insurance (or pro forma or marked-up title
insurance commitment having the effect of a policy of title insurance) insuring
the Lien of such Mortgage as a valid First Priority mortgage Lien on the
Mortgaged Property and fixtures described therein subject to Liens permitted by
Section 7.02 in the amount equal to not less than 115% of the fair
market value of such Mortgaged Property and fixtures, which fair market value
shall be determined by the Collateral Agent and Borrower in their reasonable
judgment and which policy (or such pro forma or marked-up commitment) shall
(A) be issued by the Title Company, (B) to the extent necessary,
include such reinsurance arrangements as shall be reasonably acceptable to the Collateral
Agent and approved by Borrower, (C) have been supplemented by such
endorsements (unless endorsements are not available or are prohibitively
expensive) as shall be reasonably requested by the Collateral Agent, and
(D) evidence reasonably acceptable to the Collateral Agent of payment by
Borrower of all Title Policy premiums, search and examination charges, escrow
charges and related charges, mortgage recording taxes, fees, charges, costs and
expenses required for the recording of the Mortgages and issuance of the Title
Policies referred to herein.

 

“Total Leverage Ratio” means, as of
the last day of any fiscal quarter, the ratio of (a) Consolidated Debt as of
such date to (b) EBITDA for the period of eight consecutive fiscal quarters of
Holdings most recently ended as of such date for which financial statements are
available divided by two, in each case determined on a consolidated basis in
accordance with GAAP; provided that if any Asset Disposition or any
Asset Acquisition (or any similar transaction or transactions that require a
waiver or consent by the Required Lenders pursuant to Section 7.04 or 7.05),
including the Transactions, or incurrence or repayment of Indebtedness
(excluding normal fluctuations in revolving Indebtedness incurred for working
capital purposes) has occurred during the relevant Test Period, EBITDA shall be
determined for the applicable Test Period on a Pro Forma Basis for such occurrences.

 

“Tranche” means the respective
facility and commitment utilized in making Loans hereunder, with there being
two Tranches on the Closing Date (consisting of the Term Loan Commitments, the
Revolving Loan Commitments and the extensions of credit (i.e., Term
Loans, Revolving Loans, Swingline Loans and Letters of Credit) pursuant
thereto.  In addition, any Incremental
Term Loans extended after the Initial Borrowing Date shall be made pursuant to
the Tranche of Term Loans or one or more additional Tranches which shall be
designated pursuant to the respective Incremental Term Loan Commitment Agreements
in accordance with the relevant requirements specified in Section 2.14.

 

“Transaction Costs” means the fees,
costs and expenses incurred by Holdings or any Subsidiary in connection with
the Transactions, the financing of the Transactions and any refinancing of such
financing (including fees paid to the Lenders and fees and expenses of the
Permitted Investors and their counsel and advisors).

 

“Transaction Documents” means the
Acquisition Documents and the Loan Documents.

 

41

 

“Transactions” means, collectively,
(a) the consummation of the Acquisition, (b) the Equity Contribution,
(c) the initial funding of the Loans and the effectiveness of the Loan
Documents, (d) the offering and sale of the Senior Subordinated Notes (or,
alternatively, the funding of a senior subordinated bridge loan facility in
lieu thereof), (e) the Refinancing, (f) the termination of the SagamoreHill
Facility and the entry into, and the funding of the initial loans under, the
New SagamoreHill Facility, (g) the consummation of any other transactions in
connection with the foregoing, and (h) the payment of the fees and
expenses incurred in connection with any of the foregoing.

 

“Treasury Management Agreement” means
any agreement governing the provision of treasury or cash management services,
including netting services, deposit accounts, funds transfer, automated
clearinghouse, zero balance accounts, returned check concentration, controlled
disbursement, lockbox, account reconciliation and reporting and trade finance
services.

 

“Trigger Date” shall have the meaning
set forth in the definition of “Applicable Rate”.

 

“Type” means, as to any Loan, its
character as a Base Rate Loan or a Eurodollar Rate Loan.

 

“UCC” means the Uniform Commercial Code
as in effect from time to time (except as otherwise specified) in any
applicable state or jurisdiction.

 

“Uniform Customs” means the Uniform
Customs and Practice for Documentary Credits (1993 Revision), International
Chamber of Commerce Publication No. 500, as the same may be amended from time
to time.

 

“United States” and “U.S.” mean
the United States of America.

 

“Unreimbursed Amount” has the meaning
assigned to such term in Section 2.03(c)(i).

 

“Weighted Average Life to Maturity”
means, when applied to any Indebtedness at any date, the number of years
obtained by dividing:  (a) the sum
of the products obtained by multiplying (i) the amount of each then
remaining installment, sinking fund, serial maturity or other required payments
of principal, including payment at final maturity, in respect thereof, by
(ii) the number of years (calculated to the nearest one-twelfth) that will
elapse between such date and the making of such payment; by (b) the then
outstanding principal amount of such Indebtedness.

 

“Wholly Owned Subsidiary” of any
Person means a Subsidiary of such Person, all of the Equity Interests of which
(other than directors’ qualifying shares or nominee or other similar shares
required pursuant to applicable Law) are owned by such Person or another Wholly
Owned Subsidiary of such Person.

 

“Working
Capital” means, as at any date of determination, the excess
of Current Assets over Current Liabilities; provided that, for purposes
of calculating Excess Cash Flow, increases or decreases in Working Capital
shall be calculated without regard to any changes in Current Assets or Current
Liabilities as a result of (a) any reclassification in accordance with GAAP of
assets or liabilities, as applicable, between current and noncurrent or (b) the
effects of purchase accounting.

 

42

 

1.02        Other Interpretive
Provisions.  With
reference to this Agreement and each other Loan Document, unless otherwise specified
herein or in such other Loan Document:

 

(a)           The
definitions of terms herein shall apply equally to the singular and plural
forms of the terms defined.  Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms.  The words
“include,” “includes” and “including” shall be deemed to be followed by the
phrase “without limitation.”  The word
“will” shall be construed to have the same meaning and effect as the word
“shall.”  Unless the context requires
otherwise, (i) any definition of or reference to any agreement, instrument or
other document (including any Organization Document) shall be construed as
referring to such agreement, instrument or other document as from time to time
amended, supplemented or otherwise modified (subject to any restrictions on
such amendments, supplements or modifications set forth herein or in any other
Loan Document), (ii) any reference herein to any Person shall be construed to
include such Person’s permitted successors and assigns, (iii) the words
“herein,” “hereof,” “hereto” and “hereunder,” and words of similar import when
used in any Loan Document, shall be construed to refer to such Loan Document in
its entirety and not to any particular provision thereof, (iv) all references
in a Loan Document to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
the Loan Document in which such references appear, (v) any reference to any law
shall include all statutory and regulatory provisions consolidating, amending,
replacing or interpreting such law and any reference to any law or regulation
shall, unless otherwise specified, refer to such law or regulation as amended,
modified or supplemented from time to time and (vi) the words “asset” and
“property” shall be construed to have the same meaning and effect and to refer
to any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights.

 

(b)           In
the computation of periods of time from a specified date to a later specified
date, the word “from” means “from and including,” the words “to” and “until”
each mean “to but excluding,” and the word “through” means “to and including.”

 

(c)           Section
headings herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any
other Loan Document.

 

1.03        Accounting Terms.

 

(a)           Generally.  All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all financial
data (including financial ratios and other financial calculations) required to
be submitted pursuant to this Agreement shall be prepared in conformity with,
GAAP, as in effect from time to time, on a basis consistent (except for changes
concurred in by Holdings’ independent public accountants) with the most recent
audited consolidated financial statements of Holdings and the Subsidiaries
delivered to the Lenders pursuant to Section 6.04 or, prior to such
delivery, the Audited Financial Statements of Holdings.

 

(b)           Changes
in GAAP.  If at any time any change
in GAAP would affect the computation of any financial ratio or requirement set
forth in any Loan Document, and either Borrower 

 

43

 

or the Required Lenders shall so request, the Administrative Agent, the
Lenders and Borrower shall negotiate in good faith to amend such ratio or
requirement to preserve the original intent thereof in light of such change in
GAAP (subject to the approval of the Required Lenders); provided that,
until so amended, (i) such ratio or requirement shall continue to be computed
in accordance with GAAP prior to such change therein and (ii) in the event
that such change in GAAP, taken together with any other changes in GAAP that
have not previously been given effect under this provision, modifies any item
in the financial statements of Holdings in an amount exceeding $2.0 million,
Borrower shall provide to the Administrative Agent and the Lenders financial
statements and other documents required under this Agreement or as reasonably
requested by the Administrative Agent setting forth a reconciliation between
calculations of such ratio or requirement made before and after giving effect
to such change in GAAP; provided further that such reconciliation
shall be required to be provided only for the four fiscal quarters following
such change or for such longer period as may be reasonably requested by the
Administrative Agent.

 

1.04        Rounding.  Any financial ratios
required to be maintained by Borrower pursuant to this Agreement shall be calculated
by dividing the appropriate component by the other component, carrying the
result to one place more than the number of places by which such ratio is
expressed herein and rounding the result up or down to the nearest number (with
a rounding-up if there is no nearest number).

 

1.05        Times of Day.  Unless otherwise
specified, all references herein to times of day shall be references to Eastern
time (daylight or standard, as applicable).

 

1.06        Letter of Credit
Amounts.  Unless
otherwise specified herein, the amount of a Letter of Credit at any time shall
be deemed to be the stated amount of such Letter of Credit in effect at such
time; provided that with respect to any
Letter of Credit that, by its terms or the terms of any Issuer Document related
thereto, provides for one or more automatic increases in the stated amount
thereof, the amount of such Letter of Credit shall be deemed to be the maximum
stated amount of such Letter of Credit after giving effect to all such
increases, whether or not such maximum stated amount is in effect at such time.

 

1.07        Resolution of Drafting
Ambiguities. 
The Loan Parties acknowledge and agree that they were represented by counsel
in connection with the execution and delivery of the Loan Documents, that they
and their counsel reviewed and participated in the preparation and negotiation
of the Loan Documents and that any rule of construction to the effect that
ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation of the Loan Documents.

 

1.08        Effectuation of
Transactions. 
Each of the representations and warranties contained in this Agreement
(and all corresponding definitions) are made after giving effect to the
Transactions, unless the context requires otherwise.

 

44

 

ARTICLE II

 

THE COMMITMENTS AND CREDIT EXTENSIONS

 

2.01        Term Loans and
Revolving Loans.

 

(a)           Term
Loans.  Subject to the terms and
conditions set forth herein, each Term Loan Lender severally agrees to make a
loan (each such loan, a “Term Loan”) to Borrower on the Closing Date, in
the amount of such Term Loan Lender’s Term Loan Commitment as set forth on Schedule
2.01.  Amounts borrowed as Term Loans
under this Section 2.01(a) and subsequently repaid or prepaid may not be
reborrowed.  Term Loans may be Base Rate
Loans or Eurodollar Rate Loans, as further provided herein.

 

(b)           Revolving
Loans.  Subject to the terms and
conditions set forth herein, each Revolving Loan Lender severally agrees to
make loans (each such loan, a “Revolving Loan”) to Borrower from time to
time, on any Business Day during the Availability Period, in an aggregate
amount not to exceed at any time outstanding the amount of such Revolving Loan
Lender’s Revolving Loan Commitment as set forth on Schedule 2.01; provided
that after giving effect to any borrowing of Revolving Loans, the Outstanding
Amount of the Revolving Loans of any Lender, plus such Lender’s Pro Rata
Share of the Outstanding Amount of all L/C Obligations, plus such
Lender’s Pro Rata Share of the Outstanding Amount of all Swing Line Loans shall
not exceed such Lender’s Revolving Loan Commitment.  Within the limits of each Lender’s Revolving
Loan Commitment, and subject to the other terms and conditions hereof, Borrower
may borrow under this Section 2.01(b), prepay under Section 2.05,
and reborrow under this Section 2.01(b). 
Revolving Loans may be Base Rate Loans or Eurodollar Rate Loans, as
further provided herein.

 

(c)           Incremental
Term Loans.  Subject to Section
2.14, the other terms and conditions set forth herein and the relevant
Incremental Term Loan Commitment Agreement, each Lender with an Incremental
Term Loan Commitment severally agrees to make a term loan or term loans (each,
an “Incremental Term Loan” and, collectively, the “Incremental Term
Loans”) to Borrower, which Incremental Term Loans:  (i) may only be incurred on one or more
Incremental Term Loan Borrowing Dates (which dates, in any event shall not be
later than the Term Loan Maturity Date); (ii) except as hereafter provided,
shall, at the option of Borrower, be incurred and maintained as, and/or
converted into, Base Rate Loans or Eurodollar Rate Loans, provided that all Incremental Term Loans made as part of the same
Borrowing shall, unless otherwise specifically provided herein, consist of Incremental
Term Loans of the same Type; (iii) shall be made by each such Lender in that
aggregate principal amount which does not exceed the Incremental Term Loan
Commitment of such Lender (as set forth in the relevant Incremental Term Loan
Commitment Agreement) on the applicable Incremental Term Loan Borrowing Date
and (iv) shall not exceed $50,000,000 in aggregate principal amount for all
Incremental Term Loans made by all Incremental Term Loan Lenders pursuant to
this Agreement and the various Incremental Term Loan Commitment
Agreements.  Once prepaid or repaid,
Incremental Term Loans may not be reborrowed.

 

45

 

2.02        Borrowings,
Conversions and Continuations of Revolving Loans and Term Loans.

 

(a)           Each
borrowing of Loans, each conversion of Loans from one Type to the other, and
each continuation of Eurodollar Rate Loans shall be made upon Borrower’s
irrevocable notice to the Administrative Agent, which may be given by
telephone.  Each such notice must be
received by the Administrative Agent not later than (i) 12:00 noon, three
Business Days prior to the requested date of any borrowing of, conversion to or
continuation of Eurodollar Rate Loans or of any conversion of Eurodollar Rate
Loans to Base Rate Loans and (ii) 12:00 noon, at least one Business Day prior
to the requested date of any borrowing of Base Rate Loans.  Each telephonic notice by Borrower pursuant
to this Section 2.02(a) must be confirmed promptly by delivery to the
Administrative Agent of a written Borrowing or Conversion Notice, appropriately
completed and signed by a Responsible Officer of Borrower.  Each borrowing of, conversion to or
continuation of Eurodollar Rate Loans shall be in an amount equal to $1.0 million
or a whole multiple of $500,000 in excess thereof.  Except as provided in Sections 2.03(c)
and 2.04(c), each borrowing of or conversion to Base Rate Loans (other
than Swing Line Loans) shall be in a principal amount of $500,000 or a whole
multiple of $100,000 in excess thereof. 
Each Borrowing or Conversion Notice (whether telephonic or written)
shall specify (i) whether the requested borrowing is to be a Revolving Loan
Borrowing, a Term Loan Borrowing, an Incremental Term Loan Borrowing, a
conversion of Loans from one Type to the other or a continuation of Eurodollar
Rate Loans, (ii) the requested date of the borrowing, conversion, continuation
or rollover, as the case may be (which shall be a Business Day), (iii) the principal
amount of Revolving Loans or Term Loans to be borrowed, converted, continued or
rolled over, (iv) if applicable, the Type of Loans to be borrowed or to which
existing Loans are to be converted, and (v) if applicable, the duration of the
Interest Period with respect thereto.  If
Borrower fails to specify a Type of Loan in a Borrowing or Conversion Notice or
if Borrower fails to give a timely notice requesting a conversion, continuation
or rollover, then the applicable Revolving Loans or Term Loans, as the case may
be, shall be made as, or converted to, Base Rate Loans.  Any such automatic conversion to Base Rate
Loans shall be effective as of the last day of the Interest Period then in
effect with respect to the applicable Eurodollar Rate Loans.  If Borrower requests a borrowing of, conversion
to or continuation of Eurodollar Rate Loans in any such Borrowing or Conversion
Notice, but fails to specify an Interest Period, it will be deemed to have
specified an Interest Period of one month.

 

(b)           Following
receipt of a Borrowing or Conversion Notice, the Administrative Agent shall
promptly (and in any event, on the same day) notify each Appropriate Lender of
the amount of its Pro Rata Share of the applicable Class of Loans, and if no
timely notice of a conversion or continuation is provided by Borrower, the
Administrative Agent shall notify each Lender of the details of any automatic
conversion to Base Rate Loans or continuation described in Section 2.02(a).  In the case of each borrowing, each Appropriate
Lender shall make the amount of its Loan available to the Administrative Agent
in Dollars, in immediately available funds at the Administrative Agent’s Office
not later than 1:00 p.m. on the Business Day specified in the applicable Borrowing
or Conversion Notice.  Upon satisfaction
of the applicable conditions set forth in Section 4.02 (and, if such Borrowing
is the initial Credit Extension, Section 4.01), the Administrative Agent
shall make all funds so received available to Borrower in like funds as received
by the Administrative Agent, either by (i) crediting the account of Borrower on
the books of Bank of America with the amount of such funds or (ii) wire
transfer of such funds, in each 

 

46

 

case in accordance with instructions provided (and reasonably
acceptable to) to the Administrative Agent by Borrower; provided that
if, on the date the Borrowing or Conversion Notice with respect to such
Borrowing is given by Borrower, there are Swing Line Loans or L/C Borrowings
outstanding, then the proceeds of such Borrowing shall be applied, first, to
the payment in full of any such L/C Borrowings, and second, to the payment in
full of any such Swing Line Loans, and third, to Borrower as provided above.

 

(c)           Except
as otherwise provided herein, a Eurodollar Rate Loan may be continued or
converted only on the last day of an Interest Period for such Eurodollar Rate
Loan unless Borrower pays the amount due, if any, under Section 3.05 in
connection therewith.  During the existence
of an Event of Default, no Loans may be requested to or continued as Eurodollar
Rate Loans without the consent of the Required Lenders.

 

(d)           The
Administrative Agent shall promptly notify Borrower and the applicable Lenders
of the interest rate applicable to any Interest Period for Eurodollar Rate
Loans upon determination of such interest rate. 
At any time that Base Rate Loans are outstanding, the Administrative
Agent shall notify Borrower and the Lenders of any change in Bank of America’s
prime rate used in determining the Base Rate promptly following the public announcement
of such change.

 

(e)           After
giving effect to all borrowings, all conversions of Loans from one Type to the
other, and all continuations of Loans as the same Type, there shall not be more
than eight Interest Periods in effect with respect to Loans.

 

(f)            The
failure of any Lender to make the Loan to be made by it as part of any borrowing
shall not relieve any other Lender of its obligation, if any, hereunder to make
the Loan on the date of such borrowing, but no Lender shall be responsible for
the failure of any other Lender to make the Loan to be made by such other
Lender on the date of any borrowing.

 

2.03        Letters of Credit.

 

(a)           The
Letter of Credit Commitment.

 

(i)            Subject
to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in
reliance upon the agreements of the Revolving Loan Lenders set forth in this Section
2.03, (1) from time to time on any Business Day during the period from
the Closing Date until the Letter of Credit Expiration Date, to issue Letters
of Credit for the account of Borrower or any Subsidiary Guarantor and to amend
or extend Letters of Credit previously issued by it, in accordance with
subsection (b) below, and (2) to honor drawings under the Letters of Credit;
and (B) the Revolving Loan Lenders severally agree to participate in Letters of
Credit issued for the account of Borrower or such Subsidiary Guarantor and any
drawings thereunder; provided that after giving effect to any L/C Credit
Extension with respect to any Letter of Credit, (x) the Outstanding Amount of
the Revolving Loans of any Lender, plus such Lender’s Pro Rata Share of
the Outstanding Amount of all L/C Obligations, plus such Lender’s Pro
Rata Share of the Outstanding Amount of all Swing Line Loans shall not exceed
such Lender’s Revolving Loan Commitment and (y) the Outstanding Amount of
the L/C Obligations shall not exceed the Letter of Credit Sublimit.  Within the foregoing limits, and subject to
the terms and conditions hereof, Borrower’s 

 

47

 

ability to obtain Letters of Credit shall be fully revolving, and
accordingly Borrower may, during the foregoing period, obtain Letters of Credit
to replace Letters of Credit that have expired or that have been drawn upon and
reimbursed.

 

(ii)           The
L/C Issuer shall not be under any obligation to issue any Letter of Credit if:

 

(A)          any order, judgment or decree of any Governmental Authority
or arbitrator shall by its terms purport to enjoin or restrain the L/C Issuer
from issuing such Letter of Credit, or any Law applicable to the L/C Issuer or
any request or directive (whether or not having the force of law) from any
Governmental Authority with jurisdiction over the L/C Issuer shall prohibit, or
request that the L/C Issuer refrain from, the issuance of letters of credit
generally or such Letter of Credit in particular or shall impose upon the L/C
Issuer with respect to such Letter of Credit any restriction, reserve or
capital requirement (for which the L/C Issuer is not otherwise compensated
hereunder) not in effect on the Closing Date, or shall impose upon the L/C
Issuer any unreimbursed loss, cost or expense which was not applicable on the
Closing Date and which the L/C Issuer in good faith deems material to it;

 

(B)           subject to Section 2.03(b)(iii), the expiry date of such
requested Letter of Credit would occur more than twelve months after the date
of issuance or last extension, unless the Revolving Loan Lenders have approved
such expiry date;

 

(C)           the expiry date of such requested Letter of Credit would
occur after the Letter of Credit Expiration Date, unless all the Revolving Loan
Lenders have approved such expiry date;

 

(D)          the issuance of such Letter of Credit would violate one or
more policies of the L/C Issuer generally applicable to the issuance of letters
of credit; or

 

(E)           such Letter of Credit is to be denominated in a currency
other than Dollars.

 

(iii)   The L/C Issuer shall be under no obligation
to amend any Letter of Credit if (A) the L/C Issuer would have no
obligation at such time to issue such Letter of Credit in its amended form
under the terms hereof, or (B) the beneficiary of such Letter of Credit does
not accept the proposed amendment to such Letter of Credit.

 

(b)           Procedures
for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of
Credit.

 

(i)            Each
Letter of Credit shall be issued or amended, as the case may be, upon the request
of Borrower delivered to the L/C Issuer (with a copy to the Administrative Agent)
in the form of a Letter of Credit Application, appropriately completed and
signed by a Responsible Officer of Borrower. 
Such Letter of Credit Application must be received by the L/C Issuer and
the Administrative Agent not later than 2:00 p.m. at least two Business Days
(or such later date and time as the L/C Issuer may agree in a particular instance
in its sole discretion) prior to the proposed issuance date or date of
amendment, as the case may be.  In the
case of a request for an 

 

48

 

initial issuance of a Letter of Credit, such Letter of Credit
Application shall specify in form and detail reasonably satisfactory to the L/C
Issuer:  (A) the proposed issuance date
of the requested Letter of Credit (which shall be a Business Day); (B) the
amount thereof; (C) the expiry date thereof; (D) the name and address of the
beneficiary thereof; (E) the documents to be presented by such beneficiary in
case of any drawing thereunder; (F) the full text of any certificate to be
presented by such beneficiary in case of any drawing thereunder; and (G) such
other matters as the L/C Issuer may reasonably request.  In the case of a request for an amendment of
any outstanding Letter of Credit, such Letter of Credit Application shall
specify in form and detail reasonably satisfactory to the L/C Issuer (A) the
Letter of Credit to be amended; (B) the proposed date of amendment thereof
(which shall be a Business Day); (C) the nature of the proposed amendment; and
(D) such other matters as the L/C Issuer may reasonably require.  In the event that any Letter of Credit
Application includes representations and warranties, covenants and/or events of
default that do not contain the materiality qualifiers, exceptions or
thresholds that are applicable to the analogous provisions of this Agreement or
other Loan Documents, or are otherwise more restrictive, the relevant
qualifiers, exceptions and thresholds contained herein shall be incorporated
therein or, to the extent more restrictive, shall be deemed for purposes of
such Letter of Credit Application to be the same as the analogous provisions
herein.

 

(ii)           Promptly after receipt of any Letter
of Credit Application, the L/C Issuer will confirm with the Administrative
Agent (by telephone or in writing) that the Administrative Agent has received a
copy of such Letter of Credit Application from Borrower and, if not, the L/C
Issuer will provide the Administrative Agent with a copy thereof.  Unless the L/C Issuer has received written
notice from the Administrative Agent or any Loan Party, at least one Business
Day prior to the requested date of issuance or amendment of the applicable
Letter of Credit, that one or more applicable conditions contained in Article
IV shall not then be satisfied, then, subject to the terms and conditions
hereof, the L/C Issuer shall, on the requested date, issue a Letter of Credit
for the account of Borrower or the applicable Subsidiary Guarantor or enter
into the applicable amendment, as the case may be, in each case in accordance
with the L/C Issuer’s usual and customary business practices relating generally
to issuances of Letters of Credit.  Immediately
upon the issuance of each Letter of Credit, each Revolving Loan Lender shall be
deemed to, and hereby irrevocably and unconditionally agrees to, purchase from
the L/C Issuer a risk participation in such Letter of Credit in an amount equal
to the product of such Revolving Loan Lender’s Pro Rata Share times the amount
of such Letter of Credit.

 

(iii)          If Borrower so requests in any
applicable Letter of Credit Application, the L/C Issuer may, in its sole and
absolute discretion, agree to issue a Letter of Credit that has automatic
extension provisions (each, an “Auto-Extension Letter of Credit”); provided
that any such Auto-Extension Letter of Credit must permit the L/C Issuer to
prevent any such extension at least once in each twelve-month period
(commencing with the date of issuance of such Letter of Credit) by giving prior
notice to the beneficiary thereof not later than one Business Day (the “Non-Extension
Notice Date”) in each such twelve-month period to be agreed upon at the
time such Letter of Credit is issued. 
Unless otherwise directed by the L/C Issuer, Borrower shall not be
required to make a specific request to the L/C Issuer for any such extension.  Once an Auto-Extension Letter of Credit has
been issued, the Lenders shall be deemed to have authorized (but may not
require) the L/C Issuer to permit the extension of such Letter of Credit at any
time to an expiry date not later than the Letter of Credit Expiration Date; provided,
however, that the L/C Issuer shall not permit any such extension if (A)
the L/C Issuer has determined that it would not 

 

49

 

be permitted, or would have no obligation, at such time to issue such
Letter of Credit in its revised form (as extended) under the terms hereof (by
reason of the provisions of Section 2.03(a)(ii) or otherwise), or (B) it
has received notice (which may be by telephone or in writing) on or before the
day that is five Business Days before the Non-Extension Notice Date from the
Administrative Agent, any Lender or Borrower that one or more of the applicable
conditions specified in Section 4.02 is not then satisfied, and in each
such case directing the L/C Issuer not to permit such extension.

 

(iv)          Promptly
after its delivery of any Letter of Credit or any amendment to a Letter of
Credit to an advising bank with respect thereto or to the beneficiary thereof,
the L/C Issuer will also deliver to Borrower and the Administrative Agent a
true and complete copy of such Letter of Credit or amendment.

 

(c)           Drawings
and Reimbursements; Funding of Participations.

 

(i)            Upon
receipt from the beneficiary of any Letter of Credit of any notice of a drawing
under such Letter of Credit, the L/C Issuer shall notify Borrower and the
Administrative Agent thereof.  Not later
than 2:00 p.m. on the date of any payment by the L/C Issuer under a Letter of
Credit (each such date, an “Honor Date”), Borrower shall reimburse the
L/C Issuer through the Administrative Agent in an amount equal to the amount of
such drawing; provided that if notice of such drawing is not provided to
Borrower prior to 1:00 p.m. on the Honor Date, then Borrower shall reimburse
the L/C Issuer through the Administrative Agent in an amount equal to the
amount of such drawing on the next succeeding Business Day and such extension
of time shall be reflected in computing fees in respect of any such Letter of
Credit.  If Borrower fails to so reimburse
the L/C Issuer by such time, the Administrative Agent shall promptly notify
each Revolving Loan Lender of the Honor Date, the amount of the unreimbursed
drawing (the “Unreimbursed Amount”), and the amount of such Revolving
Loan Lender’s Pro Rata Share thereof.  In
such event, Borrower shall be deemed to have requested a Revolving Loan
Borrowing of Base Rate Loans to be disbursed on the Honor Date in an amount
equal to the Unreimbursed Amount, without regard to the minimum and multiples
specified in Section 2.02 for the principal amount of Base Rate Loans,
but subject to the amount of the unutilized portion of the Aggregate Revolving
Loan Commitments and the conditions set forth in Section 4.02 (other
than the delivery of a Borrowing or Conversion Notice).  Any notice given by the L/C Issuer or the
Administrative Agent pursuant to this Section 2.03(c)(i) may be given by
telephone if immediately confirmed in writing; provided that the lack of
such an immediate confirmation shall not affect the conclusiveness or binding
effect of such notice.

 

(ii)           Each
Revolving Loan Lender shall upon any notice pursuant to Section 2.03(c)(i)
make funds available to the Administrative Agent for the account of the L/C
Issuer at the Administrative Agent’s Office in an amount equal to its Pro Rata
Share of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day
specified in such notice by the Administrative Agent, whereupon, subject to the
provisions of Section 2.03(c)(iii), each Revolving Loan Lender that so
makes funds available shall be deemed to have made a Base Rate Revolving Loan
to Borrower in such amount.  The Administrative
Agent shall remit the funds so received to the L/C Issuer.

 

50

 

(iii)          With
respect to any Unreimbursed Amount that is not fully refinanced by a Revolving
Loan Borrowing of Base Rate Loans, Borrower shall be deemed to have incurred
from the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount
that is not so refinanced, which L/C Borrowing shall be due and payable on
demand (together with interest) and shall bear interest at the Default
Rate.  In such event, each Revolving Loan
Lender’s payment to the Administrative Agent for the account of the L/C Issuer
pursuant to Section 2.03(c)(ii) shall be deemed payment in respect of
its participation in such L/C Borrowing and shall constitute an L/C Advance
from such Revolving Loan Lender in satisfaction of its participation obligation
under this Section 2.03.

 

(iv)          Until
each Revolving Loan Lender funds its Revolving Loan or L/C Advance pursuant to
this Section 2.03(c) to reimburse the L/C Issuer for any amount drawn
under any Letter of Credit, interest in respect of such Revolving Loan Lender’s
Pro Rata Share of such amount shall be solely for the account of the L/C
Issuer.

 

(v)           Each
Revolving Loan Lender’s obligation to make Revolving Loans or L/C Advances to
reimburse the L/C Issuer for amounts drawn under Letters of Credit, as
contemplated by this Section 2.03(c), shall be absolute and
unconditional and shall not be affected by any circumstance, including (A) any
setoff, counterclaim, recoupment, defense or other right which such Revolving
Loan Lender may have against the L/C Issuer, Borrower or any other Person for
any reason whatsoever, (B) the occurrence or continuance of a Default, or (C)
any other occurrence, event or condition, whether or not similar to any of the
foregoing; provided that each Revolving
Loan Lender’s obligation to make Revolving Loans pursuant to this Section 2.03(c)
is subject to the conditions set forth in Section 4.02 (other than
delivery by Borrower of a Borrowing or Conversion Notice).  No such making of an L/C Advance shall
relieve or otherwise impair the obligation of Borrower to reimburse the L/C
Issuer for the amount of any payment made by the L/C Issuer under any Letter of
Credit, together with interest as provided herein.

 

(vi)          If
any Revolving Loan Lender fails to make available to the Administrative Agent
for the account of the L/C Issuer any amount required to be paid by such Revolving
Loan Lender pursuant to the foregoing provisions of this Section 2.03(c)
by the time specified in Section 2.03(c)(ii), the L/C Issuer shall be
entitled to recover from such Lender (acting through the Administrative Agent),
on demand, such amount with interest thereon for the period from the date such
payment is required to the date on which such payment is immediately available
to the L/C Issuer at a rate per annum equal to the applicable Federal Funds
Rate from time to time in effect.  A
certificate of the L/C Issuer submitted to any Revolving Loan Lender (through
the Administrative Agent) with respect to any amounts owing under this clause
(vi) shall be conclusive absent demonstrable error.

 

(d)           Repayment
of Participations.

 

(i)            If,
at any time after the L/C Issuer has made a payment under any Letter of Credit
and has received from any Revolving Loan Lender such Revolving Loan Lender’s
L/C Advance in respect of such payment in accordance with Section 2.03(c),
the Administrative Agent receives for the account of the L/C Issuer any payment
in respect of the related Unreimbursed Amount or interest thereon (whether
directly from Borrower or otherwise, including proceeds of cash collateral
applied thereto by the Administrative Agent), the Administrative Agent will distribute

 

51

 

to such Revolving Loan Lender its Pro Rata Share thereof (appropriately
adjusted, in the case of interest payments, to reflect the period of time
during which such Revolving Loan Lender’s L/C Advance was outstanding) in the
same funds as those received by the Administrative Agent.

 

(ii)           If
any payment received by the Administrative Agent for the account of the L/C
Issuer pursuant to Section 2.03(c)(i) is required to be returned under
any of the circumstances described in Section 10.05 (including pursuant
to any settlement entered into by the L/C Issuer in its discretion), each
Revolving Loan Lender shall pay to the Administrative Agent for the account of
the L/C Issuer its Pro Rata Share thereof on demand of the Administrative
Agent, plus interest thereon from the date of such demand to the date
such amount is returned by such Revolving Loan Lender, at a rate per annum
equal to the Federal Funds Rate from time to time in effect.  The obligations of the Revolving Loan Lenders
under this clause shall survive the payment in full of the Obligations and the
termination of this Agreement.

 

(e)           Obligations
Absolute.  The obligation of Borrower
to reimburse the L/C Issuer for each drawing under each Letter of Credit and to
repay each L/C Borrowing shall, to the fullest extent permitted under
applicable law, be absolute, unconditional and irrevocable, and shall be paid
strictly in accordance with the terms of this Agreement under all
circumstances, including the following:

 

(i)            any
lack of validity or enforceability of such Letter of Credit, this Agreement, or
any other Loan Document;

 

(ii)           the
existence of any claim, counterclaim, setoff, defense or other right that Borrower
or any Subsidiary Guarantor may have at any time against any beneficiary or any
transferee of such Letter of Credit (or any Person for whom any such
beneficiary or any such transferee may be acting), the L/C Issuer or any other
Person, whether in connection with this Agreement, the transactions
contemplated hereby or by such Letter of Credit or any agreement or instrument
relating thereto, or any unrelated transaction;

 

(iii)          any
draft, demand, certificate or other document presented under such Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect
or any statement therein being untrue or inaccurate in any respect; or any loss
or delay in the transmission or otherwise of any document required in order to
make a drawing under such Letter of Credit;

 

(iv)          any
payment by the L/C Issuer under such Letter of Credit against presentation of a
draft or certificate that does not strictly comply with the terms of such
Letter of Credit; or any payment made by the L/C Issuer under such Letter of
Credit to any Person purporting to be a trustee in bankruptcy,
debtor-in-possession, assignee for the benefit of creditors, liquidator,
receiver or other representative of or successor to any beneficiary or any
transferee of such Letter of Credit, including any arising in connection with
any proceeding under any Debtor Relief Law;

 

52

 

(v)           any
exchange, release or nonperfection of any Collateral, or any release or
amendment or waiver of or consent to departure from the Guaranty or any other
guarantee, for all or any of the Obligations of Borrower in respect of such
Letter of Credit; or

 

(vi)          any
other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including any other circumstance that might otherwise constitute
a defense available to, or a discharge of, Borrower or any Subsidiary
Guarantor;

 

provided
that the foregoing shall not excuse the L/C Issuer from liability to Borrower
or any Subsidiary to the extent of any damages suffered by Borrower or any
Subsidiary that are caused by the L/C Issuer’s gross negligence or willful
misconduct.

 

Borrower shall promptly examine a copy of
each Letter of Credit and each amendment thereto that is delivered to it and,
in the event of any claim of noncompliance with Borrower’s instructions or
other irregularity, Borrower will promptly notify the L/C Issuer.  Borrower shall be conclusively deemed to have
waived any such claim against the L/C Issuer and its correspondents unless such
notice is given as aforesaid.

 

(f)            Role
of L/C Issuer.  Each Revolving Loan
Lender and Borrower agree that, in paying any drawing under a Letter of Credit,
the L/C Issuer shall not have any responsibility to obtain any document (other
than any sight draft, certificates and documents expressly required by the
Letter of Credit) or to ascertain or inquire as to the validity or accuracy of
any such document or the authority of the Person executing or delivering any
such document.  None of the L/C Issuer,
the Administrative Agent, any of their respective Related Parties nor any
correspondent, participant or assignee of the L/C Issuer shall be liable to any
Revolving Loan Lender for (i) any action taken or omitted in connection
herewith at the request or with the approval of the Required Lenders; (ii) any
action taken or omitted in the absence of gross negligence or willful
misconduct; or (iii) the due execution, effectiveness, validity or
enforceability of any document or instrument related to any Letter of Credit or
Issuer Document.  Borrower hereby assumes
all risks of the acts or omissions of any beneficiary or transferee with
respect to its use of any Letter of Credit; provided
that this assumption is not intended to, and shall not, preclude Borrower’s
pursuing such rights and remedies as it may have against the beneficiary or
transferee at law or under any other agreement. 
None of the L/C Issuer, the Administrative Agent, any of their
respective Related Parties nor any correspondent, participant or assignee of
the L/C Issuer shall be liable or responsible for any of the matters described
in clauses (i) through (v) of Section 2.03(e); provided that anything in such clauses to the contrary notwithstanding,
Borrower may have a claim against the L/C Issuer, and the L/C Issuer may be
liable to Borrower, to the extent, but only to the extent, of any direct, as
opposed to consequential or exemplary, damages suffered by Borrower which
Borrower proves were caused by the L/C Issuer’s willful misconduct or gross negligence
or the L/C Issuer’s willful or grossly negligent failure to pay under any
Letter of Credit after the presentation to it by the beneficiary of a sight
draft and certificate(s) strictly complying with the terms and conditions of a
Letter of Credit.  In furtherance and not
in limitation of the foregoing, the L/C Issuer may accept documents that appear
on their face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary, and the L/C Issuer
shall not be responsible for the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign a Letter of
Credit or the rights or benefits thereunder or proceeds thereof, in whole or in
part, which may prove to be invalid or 

 

53

 

ineffective for any reason, except to the extent that any errors with
respect to the foregoing are found by a final, non-appealable judgment of a
court of competent jurisdiction to have resulted from the gross negligence or
willful misconduct of the L/C Issuer or failure of the L/C Issuer to use the
standard of care specified in the UCC with respect to Letters of Credit.

 

(g)           Cash
Collateral.  Upon the request of the
Administrative Agent, (i) if the L/C Issuer has honored any full or partial
drawing request under any Letter of Credit and such drawing has resulted in an
L/C Borrowing and the conditions set forth in Section 4.02 to a
Borrowing of Revolving Loans cannot then be met, or (ii) if, as of the Letter
of Credit Expiration Date, any L/C Obligation for any reason remains
outstanding and partially or wholly undrawn, Borrower shall within three
Business Days, Cash Collateralize the then Outstanding Amount of all L/C Obligations
(in an amount equal to such Outstanding Amount determined as of the date of
such L/C Borrowing or the Letter of Credit Expiration Date, as the case may be)
or, in the case of clause (ii), provide a back-to-back letter of credit in a
face amount of at least equal to the then undrawn amount of such Letter of
Credit from an issuer and in form and substance reasonably satisfactory to the
L/C Issuer.  Sections 2.05 and 8.01
set forth certain additional requirements to deliver Cash Collateral
hereunder.  For purposes of this Section
2.03, Section 2.05 and Section 8.01, “Cash Collateralize”
means to pledge and deposit with or deliver to the Administrative Agent, for
the benefit of the L/C Issuer and the Revolving Loan Lenders, as collateral for
the L/C Obligations, cash or deposit account balances pursuant to documentation
in form and substance reasonably satisfactory to the Administrative Agent and
the L/C Issuer (which documents are hereby consented to by the Revolving Loan
Lenders).  Derivatives of such term have
corresponding meanings.  Borrower hereby
grants to the Administrative Agent, for the benefit of the L/C Issuer and the
Revolving Loan Lenders, a security interest in all such cash, deposit accounts
and all balances therein and all proceeds of the foregoing.  Cash Collateral shall be maintained in
blocked deposit accounts at the Administrative Agent.

 

(h)           Applicability
of ISP and Uniform Customs.  Unless
otherwise expressly agreed by the L/C Issuer and Borrower when a Letter of
Credit is issued that Uniform Customs shall apply to such Letter of Credit, (i)
the rules of the ISP shall apply to each standby Letter of Credit, and (ii) the
rules of the Uniform Customs, as most recently published by the International
Chamber of Commerce at the time of issuance shall apply to each commercial
Letter of Credit.

 

(i)            Letter
of Credit Fees.  Borrower shall pay
to the Administrative Agent for the account of each Revolving Loan Lender
(other than a Defaulting Lender, which portion shall be paid to the L/C Issuer)
in accordance with its Pro Rata Share a Letter of Credit fee (the “Letter of
Credit Fee”) for each Letter of Credit equal to (x) the Applicable
Rate for Eurodollar Rate Revolving Loans times (y) the daily amount available
to be drawn under such Letter of Credit. 
For purposes of computing the daily amount available to be drawn under
any Letter of Credit, the amount of such Letter of Credit shall be determined
in accordance with Section 1.06. 
Letter of Credit Fees shall be (i) computed on a quarterly basis in
arrears and (ii) due and payable on March 31, June 30, September 30
and December 31 of each year and the Revolving Loan Maturity Date or Term
Loan Maturity Date, as the case may be, commencing with the first such date to
occur after the issuance of such Letter of Credit, on the Letter of Credit
Expiration Date and thereafter on demand; provided that if any such date
is not a Business Day then such amounts shall be due and payable on the next
preceding Business Day.  If there is any
change in the Applicable Rate for Eurodollar Rate Revolving Loans during any
quarter, the daily amount available 

 

54

 

to be drawn under each Letter of Credit shall be computed and
multiplied by the Applicable Rate separately for each period during such
quarter that such Applicable Rate was in effect.

 

(j)            Fronting
Fee and Documentary and Processing Charges Payable to L/C Issuer.  Borrower shall pay directly to the L/C Issuer
for its own account a fronting fee with respect to each Letter of Credit, at
the rate per annum equal to 0.125% (or, in the case of any L/C Issuer, any
lesser percentage that may be agreed by Borrower and such L/C Issuer), computed
on the daily amount available to be drawn under such Letter of Credit on a
quarterly basis in arrears, and due and payable on March 31, June 30,
September 30 and December 31 of each year, commencing with the first
such date to occur after the issuance of such Letter of Credit, on the Letter
of Credit Expiration Date and thereafter on demand; provided that if any
such date is not a Business Day then such amounts shall be due and payable on
the next preceding Business Day.  For
purposes of computing the daily amount available to be drawn under any Letter
of Credit, the amount of such Letter of Credit shall be determined in
accordance with Section 1.06.  In
addition, Borrower shall pay directly to the L/C Issuer for its own account the
customary issuance, presentation, amendment and other processing fees, and
other standard costs and charges, of the L/C Issuer relating to letters of
credit as from time to time in effect. 
Such customary fees and standard costs and charges are due and payable
within five Business Days of demand and are nonrefundable.

 

(k)           Conflict
with Issuer Documents.  In the event
of any conflict between the terms hereof and the terms of any Issuer Document,
the terms hereof shall control.

 

2.04        Swing Line Loans.

 

(a)           The
Swing Line.  Subject to the terms and
conditions set forth herein, the Swing Line Lender agrees, in reliance upon the
agreements of the other Revolving Loan Lenders set forth in this Section
2.04, to make loans (each such loan, a “Swing Line Loan”) to
Borrower from time to time on any Business Day after the Closing Date during
the Availability Period in an aggregate amount not to exceed at any time
outstanding the amount of the Swing Line Sublimit, notwithstanding the fact
that such Swing Line Loans, when aggregated with the Pro Rata Share of the
Outstanding Amount of Revolving Loans and L/C Obligations of the Revolving Loan
Lender acting as Swing Line Lender, may exceed the amount of such Revolving
Loan Lender’s Commitment; provided that
after giving effect to any Swing Line Loan, (i) the Outstanding Amount of
Revolving Loans shall not exceed the Aggregate Revolving Loan Commitments, and
(ii) the aggregate Outstanding Amount of the Revolving Loans of any Revolving
Loan Lender, plus such Revolving Loan Lender’s Pro Rata Share of the
Outstanding Amount of all L/C Obligations, plus such Revolving Loan
Lender’s Pro Rata Share of the Outstanding Amount of all Swing Line Loans shall
not exceed such Revolving Loan Lender’s Revolving Loan Commitment, and provided, further,
that Borrower shall not use the proceeds of any Swing Line Loan to refinance
any outstanding Swing Line Loan.  Within
the foregoing limits, and subject to the other terms and conditions hereof,
Borrower may borrow under this Section 2.04, prepay under Section
2.05, and reborrow under this Section 2.04.  Each Swing Line Loan shall be a Base Rate
Loan.  Immediately upon the making of a
Swing Line Loan, each Revolving Loan Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the Swing Line Lender
a risk participation in such Swing Line Loan in an amount equal to the 

 

55

 

product of such Revolving Loan Lender’s Pro Rata Share times the amount
of such Swing Line Loan.

 

(b)           Borrowing
Procedures.  Each Swing Line
Borrowing shall be made upon Borrower’s irrevocable notice to the Swing Line
Lender and the Administrative Agent, which may be given by telephone. Each such
notice must be received by the Swing Line Lender and the Administrative Agent
not later than 2:00 p.m. on the requested borrowing date, and shall specify (i)
the amount to be borrowed, which shall be an amount in Dollars and a minimum of
$100,000, and (ii) the requested borrowing date, which shall be a Business
Day.  Each such telephonic notice must be
confirmed promptly by delivery to the Swing Line Lender and the Administrative
Agent of a written Swing Line Loan Notice, appropriately completed and signed
by a Responsible Officer of Borrower. 
Promptly after receipt by the Swing Line Lender of any telephonic Swing
Line Loan Notice, the Swing Line Lender will confirm with the Administrative
Agent (by telephone or in writing) that the Administrative Agent has also
received such Swing Line Loan Notice and, if not, the Swing Line Lender will
notify the Administrative Agent (by telephone or in writing) of the contents
thereof.  Unless the Swing Line Lender
has received notice (by telephone or in writing) from the Administrative Agent
(including at the request of any Revolving Loan Lender) prior to 2:00 p.m. on
the date of the proposed Swing Line Borrowing (A) directing the Swing Line
Lender not to make such Swing Line Loan as a result of the limitations set
forth in the proviso to the first sentence of Section 2.04(a), or (B)
that one or more of the applicable conditions specified in Section 4.02
is not then satisfied, then, subject to the terms and conditions hereof, the
Swing Line Lender will, not later than 3:00 p.m. on the borrowing date
specified in such Swing Line Loan Notice, make the amount of its Swing Line
Loan available to Borrower at its office by crediting the account of Borrower.

 

(c)           Refinancing
of Swing Line Loans.

 

(i)            The
Swing Line Lender at any time in its sole and absolute discretion may request,
on behalf of Borrower (which hereby irrevocably authorizes the Swing Line
Lender to so request on its behalf), that each Revolving Loan Lender make a
Base Rate Revolving Loan in an amount equal to such Revolving Loan Lender’s Pro
Rata Share of the amount of Swing Line Loans then outstanding.  Such request shall be made in writing (which
written request shall be deemed to be a Borrowing or Conversion Notice for
purposes hereof) and in accordance with the requirements of Section 2.02,
without regard to the minimum and multiples specified therein for the principal
amount of Base Rate Loans, but subject to the unutilized portion of the
Aggregate Revolving Loan Commitments and the conditions set forth in Section
4.02.  The Swing Line Lender shall
furnish Borrower with a copy of the applicable Borrowing or Conversion Notice
promptly after delivering such notice to the Administrative Agent.  Each Revolving Loan Lender shall make an
amount equal to its Pro Rata Share of the amount specified in such Borrowing or
Conversion Notice available to the Administrative Agent in immediately
available funds for the account of the Swing Line Lender at the Administrative
Agent’s Office not later than 1:00 p.m. on the day specified in such Borrowing
or Conversion Notice, whereupon, subject to Section 2.04(c)(ii), each
Revolving Loan Lender that so makes funds available shall be deemed to have
made a Base Rate Revolving Loan to Borrower in such amount.  The Administrative Agent shall remit the
funds so received to the Swing Line Lender.

 

56

 

(ii)           If for any reason any Swing Line Loan
cannot be refinanced by such a Revolving Loan Borrowing in accordance with Section
2.04(c)(i), the request for Base Rate Revolving Loans submitted by the
Swing Line Lender as set forth herein shall be deemed to be a request by the
Swing Line Lender that each of the Revolving Loan Lenders fund its risk
participation in the relevant Swing Line Loan and each Revolving Loan Lender’s
payment to the Administrative Agent for the account of the Swing Line Lender
pursuant to Section 2.04(c)(i) shall be deemed payment in respect of such
participation.

 

(iii)          If any Revolving Loan Lender fails to
make available to the Administrative Agent for the account of the Swing Line
Lender any amount required to be paid by such Revolving Loan Lender pursuant to
the foregoing provisions of this Section 2.04(c) by the time specified
in Section 2.04(c)(i), the Swing Line Lender shall be entitled to recover
from such Revolving Loan Lender (acting through the Administrative Agent), on
demand, such amount with interest thereon for the period from the date such
payment is required to the date on which such payment is immediately available
to the Swing Line Lender at a rate per annum equal to the applicable Federal
Funds Rate from time to time in effect. 
A certificate of the Swing Line Lender submitted to any Revolving Loan
Lender (through the Administrative Agent) with respect to any amounts owing
under this clause (iii) shall be conclusive absent demonstrable error.

 

(iv)          Each Revolving Loan Lender’s
obligation to make Revolving Loans or to purchase and fund risk participations
in Swing Line Loans pursuant to this Section 2.04(c) shall be absolute
and unconditional and shall not be affected by any circumstance, including (A)
any setoff, counterclaim, recoupment, defense or other right which such
Revolving Loan Lender may have against the Swing Line Lender, Borrower or any
other Person for any reason whatsoever, (B) the occurrence or continuance of a
Default, or (C) any other occurrence, event or condition, whether or not
similar to any of the foregoing; unless, in any case, such Revolving Loan
Lender has given the notice specified in Section 2.04(b).  No such funding of risk participations shall
relieve or otherwise impair the obligation of Borrower to repay Swing Line
Loans, together with interest as provided herein.

 

(d)           Repayment
of Participations.

 

(i)            At any time after any Revolving Loan
Lender has purchased and funded a risk participation in a Swing Line Loan, if
the Swing Line Lender receives any payment on account of such Swing Line Loan,
the Swing Line Lender will distribute to such Revolving Loan Lender its Pro
Rata Share of such payment (appropriately adjusted, in the case of interest
payments, to reflect the period of time during which such Revolving Loan
Lender’s risk participation was funded) in the same funds as those received by
the Swing Line Lender.

 

(ii)           If any payment received by the Swing
Line Lender in respect of principal or interest on any Swing Line Loan is required
to be returned by the Swing Line Lender under any of the circumstances described
in Section 10.05 (including pursuant to any settlement entered into by
the Swing Line Lender in its discretion), each Revolving Loan Lender shall pay
to the Swing Line Lender its Pro Rata Share thereof on demand of the
Administrative Agent, plus interest thereon from the date of such demand
to the date such amount is returned, at a rate per annum equal to the
applicable Federal Funds Rate in effect from time to time.  The Administrative Agent will make such
demand upon the request of the Swing Line Lender.  The obligations of 

 

57

 

the Revolving Loan Lenders under this clause shall survive the payment
in full of the Obligations and the termination of this Agreement.

 

(e)           Interest
for Account of Swing Line Lender. 
The Swing Line Lender shall be responsible for invoicing Borrower for
interest on the Swing Line Loans.  Until
each Revolving Loan Lender funds its Base Rate Revolving Loan or risk
participation pursuant to this Section 2.04 to refinance such Revolving
Loan Lender’s Pro Rata Share of any Swing Line Loan, interest in respect of
such Pro Rata Share shall be solely for the account of the Swing Line Lender.

 

(f)            Payments
Directly to Swing Line Lender. 
Borrower shall make all payments of principal and interest in respect of
the Swing Line Loans directly to the Swing Line Lender.

 

2.05        Prepayments.

 

(a)           Optional.

 

(i)            Borrower may, upon notice to the
Administrative Agent at any time or from time to time voluntarily prepay Revolving
Loans, Term Loans or Incremental Term Loans, or each, in whole or in part
without premium or penalty; provided that (A) such notice must be received
by the Administrative Agent not later than 12:00 noon (i) three Business
Days prior to any date of prepayment of Eurodollar Rate Loans and (ii) one
Business Day prior to any date of prepayment of Base Rate Loans; (B) any
prepayment of Eurodollar Rate Loans shall be in a principal amount of $1.0
million or a whole multiple of $1.0 million in excess thereof or, if less, the
entire principal amount thereof then outstanding and (C) any prepayment of Base
Rate Loans made in Dollars shall be in a principal amount of $500,000 or a
whole multiple of $100,000 in excess thereof, or, if less, the entire principal
amount thereof then outstanding.  Each
such notice shall be in the form of Exhibit A-2 and shall specify the
date and amount of such prepayment and the Type(s) of Loans to be prepaid.  The Administrative Agent will promptly notify
each Revolving Loan Lender, Term Loan Lender and Incremental Term Loan Lenders,
as applicable, of its receipt of each such notice, and of the amount of such
Lender’s Pro Rata Share of such prepayment. 
If such notice is given by Borrower, Borrower shall be committed to make
such prepayment and the payment amount specified in such notice shall be due
and payable on the date specified therein. 
Any prepayment of a Eurodollar Rate Loan shall be accompanied by any
additional amounts required pursuant to Section 3.05.

 

(ii)           Borrower may, upon notice to the
Swing Line Lender (with a copy to the Administrative Agent), at any time or
from time to time, voluntarily prepay Swing Line Loans in whole or in part
without premium or penalty; provided that (i) such notice must be
received by the Swing Line Lender and the Administrative Agent not later than
12:00 noon on the date of the prepayment, and (ii) any such prepayment shall be
in a minimum principal amount of the lesser of $100,000 and the total principal
amount of the Swing Line Loans then outstanding.  Each such notice shall be in the form of Exhibit
A-2 and shall specify the date and amount of such prepayment.  If such notice is given by Borrower, Borrower
shall be committed to make such prepayment and the payment amount specified in
such notice shall be due and payable on the date specified therein.

 

58

 

(iii)          Notwithstanding anything to the
contrary contained in this Agreement, Borrower may rescind any notice of prepayment
under Section 2.04(a)(i) if such prepayment would have resulted from a
refinancing of all of the Loans, which refinancing shall not be consummated or
shall otherwise be delayed.

 

(b)           Revolving
Loan Prepayments.  If for any reason
at any time the Outstanding Amount of Revolving Loans, Swing Line Loans and L/C
Obligations exceeds the Aggregate Revolving Loan Commitments then in effect,
Borrower shall immediately first, prepay Swing Line Loans, second,
prepay Revolving Loans, and third, Cash Collateralize the L/C
Obligations, in an aggregate amount equal to such excess.

 

(c)           Mandatory
Prepayments.  Holdings and Borrower
shall apply all Net Proceeds, promptly upon receipt thereof to prepay Term Loan
Borrowings and/or Revolving Facility Borrowings in accordance with Sections
2.05(e) and (f).

 

(d)           Excess
Cash Flow.  Not later than 105 days
after the end of each Excess Cash Flow Period, Holdings shall calculate Excess
Cash Flow for such Excess Cash Flow Period and shall apply an amount equal to
the Required Percentage of such Excess Cash Flow in excess of $2.0 million to
prepay Term Loan Borrowings in accordance with paragraph Sections 2.05(e)
and (f).  Not later than the date
on which Holdings is required to deliver financial statements with respect to
the end of each Excess Cash Flow Period under Section 6.04(a), Holdings
will deliver to the Administrative Agent a certificate signed by a Financial
Officer of Holdings setting forth the amount, if any, of Excess Cash Flow for
such Excess Cash Flow Period and the calculation thereof in reasonable detail.

 

(e)           Application
of Prepayments.  Prior to any
optional or mandatory prepayment hereunder, Borrower shall select the Borrowing
or Borrowings to be prepaid and shall specify such selection in the notice of
such prepayment pursuant to Section 2.05(f), subject to the provisions
of this Section 2.05(e).  Any
prepayments pursuant to Section 2.05(a) shall be applied to reduce
scheduled prepayments required under Section 2.07, first, to any scheduled principal installments of Term Loans due
within the following eight quarters in direct order of maturity, and second, on a pro rata basis to
all remaining scheduled principal installments of the Term Loans.  Any prepayments pursuant to Section 2.05(c)
or (d) shall be applied to reduce scheduled prepayments required under Section 2.07
on a pro rata basis to all remaining scheduled principal
installments of the Term Loans.  To the
extent there are mandatory prepayment amounts under Section 2.05(c)
or (d) remaining after application pursuant to the preceding sentence,
such excess shall be applied to repay Revolving Loans and to reduce the
Revolving Loan Commitments.

 

Amounts to be applied pursuant to this Section 2.05
to the prepayment of Term Loans and Revolving Loans shall be applied to the
Type of Loan and specific Borrowing or Borrowings designated by Borrower.  Notwithstanding the foregoing, if any prepayment
of Loans required under this Section 2.05 would result in Borrower
incurring breakage costs under Section 3.05 (the “Affected Loans”),
at the election of Borrower, the Affected Loans may be deposited in an escrow
account on terms reasonably satisfactory to the Collateral Agent and Borrower
and applied to the prepayment of Eurodollar Rate Loans on the last day of the
then next-expiring Interest Period for Eurodollar Rate Loans (or such earlier
date or dates as shall be requested by Borrower); provided that at any
time while an Event of Default has occurred and is continuing, upon 

 

59

 

written direction from the Required Lenders,
the Administrative Agent shall apply any or all proceeds then on deposit to the
payment of such Affected Loans.

 

(f)            Notice
of Prepayment.  Borrower shall notify
the Administrative Agent (and, in the case of prepayment of a Swing Line Loan,
the Swing Line Lender) by written notice of any prepayment hereunder
(i) in the case of prepayment of a Eurodollar Rate Loan, not later than
12:00 noon, three Business Days before the date of prepayment, (ii) in the
case of prepayment of a Base Rate Loan in Dollars, not later than 12:00 noon,
one Business Day before the date of prepayment and (iii) in the case of
prepayment of a Swing Line Loan, not later than 12:00 noon, on the date of
prepayment.  Each such notice shall be
irrevocable.  Each such notice shall be
in the form of Exhibit A-2 and shall specify the prepayment date, the
principal amount of each Borrowing or portion thereof to be prepaid and, in the
case of a mandatory prepayment, a reasonably detailed calculation of the amount
of such prepayment.  Promptly following
receipt of any such notice (other than a notice relating solely to Swing Line
Loans), the Administrative Agent shall advise the Lenders of the contents
thereof.  Each prepayment of a Borrowing
shall be applied ratably to the Loans included in the prepaid Borrowing and
otherwise in accordance with this Section 2.05.  Except as provided in Section 2.05(e),
prepayments shall be accompanied by accrued interest to the extent required by Section 2.08.

 

(g)           In
addition to any mandatory repayments or commitment reductions pursuant to this Section
2.05, Borrower shall be required to repay the principal amount of
Incremental Term Loans on the dates and in the amounts set forth in the
respective Incremental Term Loan Commitment Agreement or Agreements relating to
such Incremental Term Loans (each such repayment as the same may be reduced as
provided in Sections 2.05 (a) and (e), a “Scheduled Incremental
Term Loan Repayment,” and each such date a “Scheduled Incremental Term
Loan Repayment Date”), provided that if
any Incremental Term Loans are incurred which will be added to (and form part
of) an existing tranche of Incremental Term Loans, the amount of the then remaining
Scheduled Incremental Term Loan Repayments of the respective tranche shall be
proportionally increased (with the aggregate amount of increases to the then
remaining Scheduled Incremental Term Loan Repayments to equal the aggregate
principal amount of such new Incremental Term Loans then being incurred) in
accordance with the requirements of Section 2.14(c).

 

2.06        Termination or
Reduction of Commitments.

 

(a)           Revolving
Loan Commitments.  Borrower may, upon
notice to the Administrative Agent, terminate the Aggregate Revolving Loan
Commitments, or from time to time permanently reduce the Aggregate Revolving
Loan Commitments; provided that (i) any such notice shall be received by
the Administrative Agent not later than 12:00 noon three Business Days prior to
the date of termination or reduction, (ii) any such partial reduction shall be
in an aggregate amount of $1.0 million or any whole multiple of $500,000 in
excess thereof and (iii) Borrower shall not terminate or reduce the Aggregate
Revolving Loan Commitments if, after giving effect thereto and to any
concurrent prepayments hereunder, the Outstanding Amount of Revolving Loans,
Swing Line Loans and L/C Obligations would exceed the Aggregate Revolving Loan
Commitments.  The Administrative Agent
will promptly notify the Revolving Loan Lenders of any such notice of
termination or reduction of the Aggregate Revolving Loan Commitments.  Any reduction of the Aggregate Revolving Loan
Commitments shall be applied to the Commitment of each Revolving Loan Lender
according to its Pro Rata Share.  All
fees accrued until the 

 

60

 

effective date of any termination of the Aggregate Revolving Loan
Commitments in full shall be paid on the effective date of such termination.

 

(b)           Term
Loan Commitments.  The Term Loan
Commitments of each Term Loan Lender shall be automatically terminated on the
Closing Date upon the borrowing of the Term Loans on such date.

 

(c)           Incremental
Term Loan Commitments.  In addition
to any other mandatory commitment reductions pursuant to this Section 2.06,
(i) the Incremental Term Loan Commitment of each Lender provided pursuant to a
particular Incremental Term Loan Commitment Agreement shall be permanently
reduced on each Incremental Term Loan Borrowing Date on which Incremental Term
Loans are incurred pursuant to such Incremental Term Loan Commitment Agreement
in an amount equal to the aggregate principal amount of Incremental Term Loans
made by such Lender pursuant to such Incremental Term Loan Commitment Agreement
on such date, (ii) the Incremental Term Loan Commitment of each Lender
provided pursuant to a particular Incremental Term Loan Commitment Agreement
shall terminate at 5:00 p.m. (New York City time) on the earliest of (A) the
date specified in such Incremental Term Loan Commitment Agreement and (B) the
Term Loan Maturity Date (whether or not any Incremental Term Loans are incurred
on either such date).  Borrower may
(unless otherwise provided in the respective Incremental Term Loan Commitment
Agreement), upon notice to the Administrative Agent, terminate the Incremental
Term Loan Commitments, or from time to time permanently reduce the Incremental
Term Loan Commitments provided pursuant to any Incremental Term Loan Commitment
Agreement, in an integral multiple of $1.0 million (or as may otherwise be provided
in the respective Incremental Term Loan Commitment Agreement) in the case of
partial reductions to the aggregate amount of Incremental Term Loan Commitments
provided pursuant to the respective Incremental Term Loan Commitment Agreement;
provided that each such reduction shall apply proportionately to
permanently reduce the Incremental Term Loan Commitments of various Lenders
provided pursuant to the respective Incremental Term Loan Commitment Agreement.

 

(d)           Termination
of Commitments.  All Commitments
shall terminate at noon on December 31, 2006 if the Closing Date has not
occurred on or prior to such time.

 

2.07        Repayment of Loans.

 

(a)           Term
Loans.  Borrower shall repay to the
Administrative Agent for the ratable account of the Term Loan Lenders the
aggregate principal amount of the Term Loans as follows (as adjusted for any
payments made under Section 2.05), each such payment to be made on the
last Business Day of the applicable fiscal quarter:

 

	
  Quarter Ending

  	
   

  	
  Aggregate Term Loan Principal

  Amortization Payment

  	
   

  
	
  December 31,
  2006

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  March 31,
  2007

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  June 30,
  2007

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  September
  30, 2007

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  December 31,
  2007

  	
   

  	
  $

  	
  368,750

  	
   

  

 

61

 

	
  Quarter Ending

  	
   

  	
  Aggregate Term Loan Principal

  Amortization Payment

  	
   

  
	
  March 31,
  2008

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  June 30,
  2008

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  September
  30, 2008

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  December 31,
  2008

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  March 31,
  2009

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  June 30,
  2009

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  September
  30, 2009

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  December 31,
  2009

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  March 31,
  2010

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  June 30,
  2010

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  September
  30, 2010

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  December 31,
  2010

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  March 31,
  2011

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  June 30,
  2011

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  September
  30, 2011

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  December 31,
  2011

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  March 31,
  2012

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  June 30,
  2012

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  September
  30, 2012

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  December 31,
  2012

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  March 31,
  2013

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  June 30,
  2013

  	
   

  	
  $

  	
  368,750

  	
   

  
	
  Term Loan
  Maturity Date

  	
   

  	
  $

  	
  137,543,750

  	
   

  

 

; provided
that on the Term Loan Maturity Date, all Term Loans outstanding on such date
shall be repaid.

 

(b)           Revolving
Loans.  Borrower shall repay to the
Administrative Agent for the ratable account of the applicable Revolving Loan
Lenders on the Revolving Loan Maturity Date the aggregate principal amount of
all Revolving Loans outstanding on such date.

 

(c)           Swing
Line Loans.  Borrower shall repay its
Swing Line Loans on the earlier to occur of (i) the date ten (10) Business Days
after such Loan is made and (ii) the Revolving Loan Maturity Date.

 

2.08        Interest.

 

(a)           Subject
to the provisions of subsection (b) below:

 

(i)            each
Eurodollar Rate Loan shall bear interest on the outstanding principal amount
thereof for each Interest Period at a rate per annum equal to the Eurodollar
Rate for such Interest Period plus the Applicable Rate;

 

62

 

(ii)           each
Base Rate Loan shall bear interest on the outstanding principal amount thereof
from the applicable borrowing date at a rate per annum equal to the Base Rate plus
the Applicable Rate; and

 

(iii)          each
Swing Line Loan shall bear interest on the outstanding principal amount thereof
from the applicable borrowing date at a rate per annum equal to the Base Rate plus
the Applicable Rate.

 

(b)           Notwithstanding
the foregoing, if any principal of or interest on any Loan or any fee or other
amount payable by Borrower hereunder is not paid when due (without regard to
any applicable grace periods), whether at stated maturity, upon acceleration or
otherwise, such overdue amount shall, to the extent permitted by applicable
law, bear interest, after as well as before judgment, at a rate per annum equal
to (i) in the case of overdue principal and premium, if any, of or
interest on any Loan, 2% plus the rate otherwise applicable to such Loan
as provided in Section 2.08(a) or (ii) in the case of any other
overdue amount, 2% plus the rate applicable to Base Rate Revolving Loans
as provided in Section 2.08(a)(ii) (in either case, the “Default
Rate”).

 

(c)           Interest
on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto; provided that (i) interest accrued pursuant to Section 2.08(b)
shall be payable on demand, (ii) in the event of any repayment or prepayment
of any Loan (other than a prepayment of a Base Rate Revolving Loan or a Swing
Line Loan without a permanent reduction in Revolving Loan Commitments), accrued
interest on the principal amount repaid or prepaid shall be payable on the date
of such repayment or prepayment and (iii) in the event of any conversion of
any Eurodollar Rate Loan prior to the end of the current Interest Period
therefor, accrued interest on such Loan shall be payable on the effective date
of such conversion.  Interest hereunder
shall be due and payable in accordance with the terms hereof before and after
judgment, and before and after the commencement of any proceeding under any
Debtor Relief Law.

 

2.09        Fees.  In addition to
certain fees described in subsections (i) and (j) of Section 2.03:

 

(a)           Revolving
Loan Commitment Fee.  Borrower shall
pay to the Administrative Agent, for the account of each Revolving Loan Lender
in accordance with its Pro Rata Share, a commitment fee equal to (x) prior to
the Trigger Date, 0.50% per annum or (y) on and after the Trigger Date, the
percentage specified in clause (a) of the definition of the term “Applicable
Rate,” in each case times the actual daily amount by which the Aggregate
Revolving Loan Commitments exceed the sum of (i) the Outstanding Amount of
Revolving Loans (which for the avoidance of doubt does not include the outstanding
amount of Swing Line Loans) and (ii) the Outstanding Amount of L/C
Obligations.  The commitment fee shall accrue
at all times during the period commencing on the Closing Date and ending on the
last day of the Availability Period, including at any time during which one or
more of the conditions in Article IV are not met, and shall be due and payable
quarterly in arrears (A) on March 31, June 30, September 30 and
December 31 of each year (provided that if such date is not a Business
Day then such amounts shall be due and payable on the next preceding Business
Day), commencing with the first such date to occur after the Closing Date, and
(B) on the Revolving Loan Maturity Date. 
Such

 

63

 

fees shall be fully earned when paid and shall not be refundable for
any reason whatsoever.

 

(b)           Other
Fees.  Borrower shall pay to the
Arrangers and the Administrative Agent for their own respective accounts fees
in the amounts and at the times specified in the Fee Letter.

 

2.10        Computation of
Interest and Fees.

 

All computations of interest for Base Rate
Loans when the Base Rate is determined by Bank of America’s “prime rate” shall
be made on the basis of a year of 365 or 366 days, as the case may be, and
actual days elapsed.  All other computations
of fees and interest shall be made on the basis of a 360-day year and actual
days elapsed (which results in more fees or interest, as applicable, being paid
than if computed on the basis of a 365-day year).  Interest shall accrue on each Loan for the
day on which the Loan is made, continued or converted from a Loan of another
Type and shall not accrue on a Loan, or any portion thereof, for the day on
which the Loan or such portion is paid; provided
that any Loan that is repaid on the same day on which it is made shall, subject
to Section 2.12(a), bear interest for one day.  Each determination by the Administrative
Agent of an interest rate or fee hereunder shall be conclusive and binding for
all purposes, absent demonstrable error.

 

2.11        Evidence of Debt.

 

(a)           The
Credit Extensions made by each Lender shall be evidenced by one or more
accounts or records maintained by such Lender and by the Administrative Agent
in the ordinary course of business.  The
accounts or records maintained by the Administrative Agent and each Lender
shall be conclusive absent demonstrable error of the amount of the Credit
Extensions made by the Lenders to Borrower and the interest and payments
thereon.  Any failure to so record or any
error in doing so shall not, however, limit or otherwise affect the obligation
of Borrower hereunder to pay any amount owing with respect to the
Obligations.  In the event of any
conflict between the accounts and records maintained by any Lender and the accounts
and records of the Administrative Agent in respect of such matters, the
accounts and records of the Administrative Agent shall control in the absence
of demonstrable error.

 

(b)           Upon
the request of any Lender made through the Administrative Agent, Borrower shall
execute and deliver to such Lender (through the Administrative Agent) a Note,
which shall evidence such Lender’s Loans in addition to such accounts or
records.  Each Lender may attach
schedules to a Note and endorse thereon the date, Type (if applicable), amount,
currency and maturity of its Loans and payments with respect thereto.

 

(c)           In
addition to the accounts and records referred to in subsections (a) and
(b)  above in this Section 2.11,
each Lender and the Administrative Agent shall maintain in accordance with its
usual practice accounts or records evidencing the purchases and sales by such
Lender of participations in Letters of Credit and Swing Line Loans.  In the event of any conflict between the
accounts and records maintained by the Administrative Agent and the accounts
and records of any Lender in respect of such matters, the accounts and records
of the Administrative Agent shall control in the absence of demonstrable error.

 

64

 

2.12        Payments Generally;
Administrative Agent’s Clawback.

 

(a)           General.  All payments to be made by Borrower shall be
made without condition or deduction for any counterclaim, defense, recoupment
or setoff.  Except as otherwise expressly
provided herein, all payments by Borrower hereunder shall be made to the
Administrative Agent for the account of the respective Lenders to which such
payment is owed, at the Administrative Agent’s Office in Dollars and in immediately
available funds not later than 2:00 p.m. on the date specified herein.  The Administrative Agent will promptly
distribute to each Lender its Pro Rata Share (or other applicable share as
provided herein) of such payment in like funds as received by wire transfer to
such Lender’s Lending Office.  All payments
received by the Administrative Agent after 2:00 p.m. shall in each case be
deemed received on the next succeeding Business Day and any applicable interest
or fee shall continue to accrue.  If any
payment to be made by Borrower shall come due on a day other than a Business
Day, payment shall be made on the next following Business Day, and such
extension of time shall be reflected in computing interest or fees, as the case
may be.

 

(b)           (i)  Funding by Lenders; Presumption by
Administrative Agent.  Unless the
Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the
Administrative Agent such Lender’s Pro Rata Share of such Borrowing, the
Administrative Agent may assume that such Lender has made such share available
on such date in accordance with Section 2.02 and may, in reliance upon
such assumption, make available to Borrower, a corresponding amount.  In such event, if a Lender has not in fact
made its share of the applicable Borrowing available to the Administrative
Agent, then the applicable Lender agrees to pay to the Administrative Agent
forthwith on demand such corresponding amount in immediately available funds
with interest thereon, for each day from and including the date such amount is
made available to Borrower, to but excluding the date of payment to the
Administrative Agent in the case of a payment to be made by such Lender at the
applicable Federal Funds Rate in effect from time to time.  If such Lender’s Pro Rata Share of such
Borrowing is not made available to the Administrative Agent within three
Business Days after the date of such Borrowing, the Administrative Agent shall
notify Borrower of the failure of such Lender to make such amount available to
the Administrative Agent and the Administrative Agent shall be entitled to
recover such amount with interest thereon at the rate applicable to Loans of
the Class and Type comprising such Borrowing and (y) then Borrower may, without
waiving or limiting any rights or remedies it may have hereunder or under
applicable law against such Lender, borrow a like amount on an unsecured basis
from any commercial bank for a period ending on the date upon which such Lender
does in fact make such Borrowing available. 
If Borrower and such Lender shall pay such interest to the Administrative
Agent for the same or an overlapping period, the Administrative Agent shall
promptly remit to Borrower the amount of such interest paid by Borrower for
such period.  If such Lender pays its
share of the applicable Borrowing to the Administrative Agent then the amount
so paid shall constitute such Lender’s Revolving Loan or Term Loan, as the case
may be, included in such Borrowing.  Any
payment by Borrower shall be without prejudice to any claim Borrower may have
against a Lender that shall have failed to make such payment to the Administrative
Agent.

 

(ii)           Payments
by Borrower; Presumptions by Administrative Agent.  Unless the Administrative Agent shall have received
notice from Borrower prior to the date on which any payment is due to the
Administrative Agent for the account of the Lenders or the L/C Issuer 

 

65

 

hereunder that
Borrower will not make such payment, the Administrative Agent may assume that
Borrower has made such payment on such date in accordance herewith and may, in
reliance upon such assumption, distribute to the Lenders or the L/C Issuer, as
the case may be, the amount due.  In such
event, if Borrower has not in fact made such payment, then each of the Lenders
or the L/C Issuer, as the case may be, severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such
Lender or the L/C Issuer, in immediately available funds with interest thereon,
for each day from and including the date such amount is distributed to it to
but excluding the date of payment to the Administrative Agent at the applicable
Federal Funds Rate in effect from time to time.

 

A notice of the Administrative Agent to any
Lender or Borrower with respect to any amount owing under this subsection (b)
shall be conclusive, absent demonstrable error.

 

(c)           Failure
to Satisfy Conditions Precedent.  If
any Lender makes available to the Administrative Agent funds for any Loan to be
made by such Lender as provided in the foregoing provisions of this Article
II, and such funds are not made available to Borrower by the Administrative
Agent because the conditions to the applicable Credit Extension set forth in Article
IV are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from
such Lender) to such Lender, without interest.

 

(d)           Obligations
of Lenders Several.  The obligations
of the Lenders hereunder to make Revolving Loans or Term Loans, or any
combination of the foregoing, as the case may be, to fund participations in
Letters of Credit and Swing Line Loans and to make payments pursuant to Section
10.04(c) are several and not joint. 
The failure of any Lender to make any Revolving Loan or Term Loan, to
fund any such participation or to make any payment under Section 10.04(c)
on any date required hereunder shall not relieve any other Lender of its
corresponding obligation to do so on such date, and no Lender shall be responsible
for the failure of any other Lender to so make its Revolving Loan or Term Loan,
to purchase its participation or to make its payment under Section 10.04(c).

 

(e)           Funding
Source.  Nothing herein shall be
deemed to obligate any Lender to obtain the funds for any Loan in any
particular place or manner or to constitute a representation by any Lender that
it has obtained or will obtain the funds for any Loan in any particular place
or manner.

 

2.13        Sharing of Payments by
Lenders.  If any
Lender shall, by exercising any right of setoff or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of the Term
Loans and/or Revolving Loans made by it, or the participations in L/C Obligations
or in Swing Line Loans held by it resulting in such Lender’s receiving payment
of a proportion of the aggregate amount of such Loans or participations and accrued
interest thereon greater than its Pro Rata Share thereof as provided herein,
then the Lender receiving such greater proportion shall (a) notify the Administrative
Agent of such fact, and (b) purchase (for cash at face value) participations in
the Term Loans and/or Revolving Loans and subparticipations in L/C Obligations
and Swing Line Loans of the other Lenders, or make such other adjustments as
shall be equitable, so that the benefit of all such payments shall be shared by
the Lenders ratably in accordance with their respective Pro Rata Share, provided that:

 

66

 

(i)            if
any such participations or subparticipations are purchased and all or any
portion of the payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the extent
of such recovery, without interest; and

 

(ii)           the
provisions of this section shall not be construed to apply to (x) any payment
made by Borrower pursuant to and in accordance with the express terms of this
Agreement or (y) any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Revolving Loans or Term
Loans or subparticipations in L/C Obligations or Swing Line Loans to any
assignee or participant, other than to Borrower or any Subsidiary thereof (as
to which the provisions of this section shall apply).

 

Each Loan Party consents to the foregoing and
agrees, to the extent it may effectively do so under applicable law, that any
Lender acquiring a participation pursuant to the foregoing arrangements may
exercise against such Loan Party rights of setoff and counterclaim with respect
to such participation as fully as if such Lender were a direct creditor of such
Loan Party in the amount of such participation.

 

2.14        Incremental Term Loan
Commitments.

 

(a)           So
long as no Default or Event of Default then exists or would result therefrom,
Borrower shall have the right to request on one or more occasions prior to the
Term Loan Maturity Date that one or more Lenders and/or one or more other
Eligible Assignees provide Incremental Term Loan Commitments as designated in
the Incremental Term Loan Commitment Agreement in accordance with the
provisions of this Agreement and, subject to the terms and conditions contained
in this Agreement and the relevant Incremental Term Loan Commitment Agreement,
make Incremental Term Loans, pursuant thereto, it being understood and agreed,
however, that:

 

(i)            no
Lender shall be obligated to provide an Incremental Term Loan Commitment as a
result of any such request by Borrower, and until such time, if any, as such
Lender has agreed in its sole discretion to provide an Incremental Term Loan
Commitment and executed and delivered to the Administrative Agent an
Incremental Term Loan Commitment Agreement as provided in clause (b) of this Section
2.14, such Lender shall not be obligated to fund any Incremental Term
Loans;

 

(ii)           except
as otherwise provided in clauses (vii) and (viii) below, any Lender or other
Eligible Assignee may so provide an Incremental Term Loan Commitment without
the consent of any other Lender;

 

(iii)          each
provision of Incremental Term Loan Commitments pursuant to this Section 2.14
on a given date pursuant to a particular Incremental Term Loan Commitment
Agreement shall be in a minimum aggregate amount (for all Lenders and other Eligible
Assignees who will become Lenders pursuant thereto) of $5,000,000;

 

(iv)          the
aggregate amount of all Incremental Term Loan Commitments permitted to be
provided pursuant to this Section 2.14 shall not exceed $50,000,000;

 

67

 

(v)           the
Incremental Term Loans shall not have the benefit of any more favorable
security interests or guarantees than the Term Loans;

 

(vi)          all
Incremental Term Loans to be incurred pursuant to Incremental Term Loan
Commitments provided in response to a particular request for same made by
Borrower in accordance with clause (b) of this Section 2.14 shall be incurred
pursuant to Incremental Term Loan Commitments provided pursuant to a single
Incremental Term Loan Commitment Agreement, which may be executed in
counterparts;

 

(vii)         unless
both (I) the Required Lenders and (II) those Lenders holding (as outstanding
Loans or existing Revolving Loan Commitments, as the case may be) (x) a
majority of the aggregate principal amount of outstanding Term Loans having a
Maturity Date after such proposed Maturity Date plus (y) if such proposed
Maturity Date is to be prior to the Revolving Loan Maturity Date, a majority of
the total Revolving Loan Commitment, expressly agree in writing, in no event
shall the Maturity Date of the Incremental Term Loans to be provided pursuant
to any Incremental Term Loan Commitment Agreement be earlier than the Maturity
Date of any other tranche of Loans (or Revolving Loan Commitment) outstanding
at the time such Incremental Term Loans are incurred;

 

(viii)        unless
both (I) the Required Lenders and (II) those Lenders holding a majority of the
aggregate principal amount of outstanding Term Loans having a Weighted Average
Life to Maturity which is longer than the Weighted Average Life to Maturity of
the Incremental Term Loans to be made pursuant to the relevant Incremental Term
Loan Commitments expressly agree in writing, in no event shall the Weighted
Average Life to Maturity of the Incremental Term Loans to be provided pursuant
to any Incremental Term Loan Commitment Agreement be less than the Weighted
Average Life to Maturity of any other tranche of Term Loans outstanding at the
time such Incremental Term Loans are incurred;

 

(ix)           Holdings
shall be in compliance with the Financial Performance Covenants (calculated on
a Pro Forma Basis and assuming that all Incremental Term Loans to be incurred
pursuant to such Incremental Term Loan Commitments (and any other then existing
Incremental Term Loan Commitments) have been incurred and the proceeds thereof
applied in a manner as certified to by a Responsible Officer of Borrower to the
Administrative Agent) at such time; and

 

(x)            Borrower
shall provide the Administrative Agent with notice of each request for
Incremental Term Loan Commitments pursuant to this Section 2.14
contemporaneously with the making of each such request.

 

(b)           At
the time of any provision of Incremental Term Loan Commitments pursuant to this
Section 2.14, (i) Borrower, and each Lender or other Eligible Assignee
which agrees to provide an Incremental Term Loan Commitment (each an “Incremental
Term Loan Lender”) shall execute (which execution may be in counterparts)
and deliver to the Administrative Agent an Incremental Term Loan Commitment
Agreement (it being understood that a single Incremental Term Loan Commitment
Agreement shall be executed and delivered by all Incremental Term Loan Lenders
providing Incremental Term Loan Commitments in response to a particular request

 

68

 

for same made by Borrower) substantially in the form of Exhibit M
(appropriately completed and with such modifications as may be reasonably
acceptable to the Administrative Agent and Borrower), with the effectiveness of
the Incremental Term Loan Commitment(s) provided therein to occur on the date
set forth in such Incremental Term Loan Commitment Agreement and the payment of
any fees required in connection therewith; (ii) Holdings and the Subsidiaries
shall have delivered such amendments, modifications and/or supplements to the
Security Documents (if any) as are necessary or, in the reasonable opinion of
the Administrative Agent, desirable to ensure that the additional Obligations
to be incurred pursuant to the Incremental Term Loan Commitments are secured
by, and entitled to the benefits of, the Security Documents; provided
that the collateral and related security interests in respect of the Incremental
Term Loans shall not be more favorable to the Incremental Term Loan Lenders
than those in respect of the Term Loans; (iii) the Administrative Agent shall
receive an acknowledgment from the Loan Parties that the Incremental Term Loans
to be incurred pursuant to such Incremental Term Loan Commitments are entitled
to the benefits of the Guaranty and the Security Documents, together with
resolutions executed by the Subsidiary Guarantors, stating that the Incremental
Term Loans to be incurred pursuant to such Incremental Term Loan Commitments
are entitled to benefits of the Guaranty and the Security Documents; and (iv)
if requested by the Administrative Agent, Borrower shall deliver to the
Administrative Agent an opinion or opinions, in form and substance reasonably
satisfactory to the Administrative Agent, from counsel to Borrower reasonably
satisfactory to the Administrative Agent (which may be internal counsel to
Borrower) and dated such date, covering such matters as the Administrative
Agent may reasonably request.  The
Administrative Agent shall promptly notify each Lender as to the effectiveness
of each Incremental Term Loan Commitment Agreement, and shall deliver to each
Lender a copy of same, and (i) at such time Schedule 2.01 shall be deemed modified
to reflect the Incremental Term Loan Commitments of the respective Incremental
Term Loan Lenders and (ii) to the extent requested by such Incremental Term
Loan Lenders, the appropriate Notes (each, an “Incremental Term Note”)
will be issued, at Borrower’s expense, to such Incremental Term Loan Lenders,
to be consistent with the requirements of Section 2.11(b) (with
appropriate modifications, to the extent needed) to reflect the Incremental
Term Loans made by such Incremental Term Loan Lenders or Lender, as the case
may be.

 

(c)           Notwithstanding
anything to the contrary contained above, the Incremental Term Loan Commitments
provided by an Incremental Term Loan Lender or Incremental Term Loan Lenders,
as the case may be, pursuant to each Incremental Term Loan Commitment Agreement
shall constitute a new Tranche, which shall be separate and distinct from the
existing Tranche pursuant to this Agreement, provided
that the parties to a given Incremental Term Loan Commitment Agreement may
specify therein that the respective Incremental Term Loans made pursuant
thereto shall constitute part of, and be added to, the existing Tranche of Term
Loans, so long as the following requirements are satisfied:

 

(i)            the
Incremental Term Loans to be made pursuant to such Incremental Term Loan
Commitment Agreement shall have the same maturity date and the same Weighted
Average Life to Maturity as the Tranche of Term Loans to which the new Incremental
Term Loans are being added, and shall bear interest at the same rates (i.e.,
have the same Applicable Rates) applicable to such Tranche; and

 

69

 

(ii)           the
new Incremental Term Loans shall have the same amortization payment dates as
then remain with respect to the Term Loans to which such new Incremental Term
Loans are being added (with the amount of each amortization payment applicable
to such new Incremental Term Loans to be the same (on a proportionate basis) as
is theretofore applicable to the Term Loans to which such new Incremental Term
Loans are being added, thereby increasing the amount of each then remaining
amortization payment of the Term Loans proportionately).

 

ARTICLE III

 

TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01        Taxes.

 

(a)           Payments
Free of Taxes.  Any and all payments
by or on account of any obligation of any Loan Party hereunder or under any
other Loan Document shall (except to the extent required by law) be made free
and clear of and without reduction or withholding for any Indemnified Taxes or
Other Taxes, provided that if any Loan
Party shall be required by applicable law to deduct any Indemnified Taxes (or
any Other Taxes) from such payments, then (i) the sum payable shall be
increased as necessary so that after making all required deductions of such
Taxes (including deductions of such Taxes applicable to additional sums payable
under this section) the Administrative Agent, Lender or L/C Issuer, as the case
may be, receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the applicable Loan Party shall make such deductions
and (iii) the applicable Loan Party shall timely pay the full amount deducted
to the relevant Governmental Authority in accordance with applicable law.

 

(b)           Payment
of Other Taxes by Borrower.  Without
limiting the provisions of subsection (a) above, Borrower shall timely pay any
Other Taxes to the relevant Governmental Authority in accordance with
applicable law.

 

(c)           Indemnification
by Borrower.  Borrower shall
indemnify the Administrative Agent, each Lender and the L/C Issuer, within 10
days after a written demand setting forth the amount and the reasons in reasonable
detail therefor, for the full amount of any Indemnified Taxes or Other Taxes
(including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this section) payable by the
Administrative Agent, such Lender or the L/C Issuer, as the case may be, and
any penalties, interest and reasonable expenses arising therefrom or with
respect thereto (other than penalties attributable to (i) a failure or delay by
the Administrative Agent, such Lender or the L/C Issuer, as applicable, in
making such written demand to Borrower or (ii) the gross negligence or willful
misconduct of the Administrative Agent, such Lender or the L/C Issuer, as the
case may be), whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental
Authority.  A certificate setting forth
the amount of such payment or liability and the reasons for such payment or
liability in reasonable detail delivered to Borrower by a Lender or the L/C
Issuer (with a copy to the Administrative Agent), or by the Administrative
Agent on its own behalf or on behalf of a Lender or the L/C Issuer, shall be
conclusive absent demonstrable error.

 

70

 

(d)           Evidence
of Payments.  As soon as practicable
after any payment of Indemnified Taxes or Other Taxes by Borrower to a
Governmental Authority, Borrower shall deliver to the Administrative Agent the
original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to the Administrative Agent.

 

(e)           Status
of Lenders.  Each Foreign Lender
shall, to the extent it may lawfully do so, deliver to Borrower and the Administrative
Agent (in such number of original copies as shall be requested by the
recipient) on or prior to the date on which such Foreign Lender becomes a
Lender under this Agreement (and from time to time thereafter upon the reasonable
request of Borrower or the Administrative Agent, but only if such Foreign
Lender or beneficial owner is legally entitled to do so), whichever of the
following is applicable:

 

(i)            two
duly completed and executed original copies of Internal Revenue Service Form
W-8BEN (or any successor thereto) claiming eligibility for benefits of an income
tax treaty to which the United States is a party and entitlement to complete
exemption from (or reduction in) U.S. federal withholding tax on interest and
fees payable hereunder to or for the account of such Foreign Lender,

 

(ii)           two
duly completed and executed original copies of Internal Revenue Service Form
W-8ECI (or any successor thereto),

 

(iii)          in
the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under Section 881(c) of the Code, (x) a certificate,
substantially in the form of Exhibit O, to the effect that such
Foreign Lender or beneficial owner is not (A) a “bank” within the meaning of
Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of Borrower
within the meaning of Section 881(c)(3)(B) of the Code, or (C) a “controlled
foreign corporation” described in Section 881(c)(3)(C) of the Code and (y) duly
completed and executed original copies of Internal Revenue Service Form W-8BEN
(or any successor thereto), and, if any fees are payable by Borrower to or for
the account of such Foreign Lender, claiming eligibility for benefits of an
income tax treaty to which the U.S. is a party and entitlement to complete exemption
from (or reduction in) U.S. federal withholding tax on such fees, or

 

(iv)          any
other form prescribed by applicable law as a basis for claiming exemption from
(or, after an applicable Change in Law, reduction in) United States federal
withholding tax duly completed together with such supplementary documentation
as may be prescribed by applicable law.

 

Any Lender that is not a Foreign Lender and
that may not be treated as an exempt recipient based on the indicators
described in Treasury Regulation Section 1.6049-4(c)(1)(ii) or that has not
otherwise established to the reasonable satisfaction of Borrower that it is an
exempt recipient (as defined in Section 6049(b)(4) of the Code and the Treasury
regulations thereunder) shall deliver to Borrower (with copies to the
Administrative Agent) on or prior to the date on which such Lender becomes a
Lender under this Agreement (and from time to time thereafter as prescribed by
applicable law or upon the request of Borrower or the Administrative Agent),
duly executed and properly completed copies of U.S. Internal Revenue Service
Form W-9 or any successor 

 

71

 

form that such Lender is entitled to provide
at such time in order to comply with United States back-up withholding
requirements.

 

From time to time, each Lender shall promptly
notify the Administrative Agent of any change in such Lender’s or beneficial
owner’s circumstances that would modify or render invalid any claimed exemption
or reduction.

 

(f)            Treatment
of Certain Refunds.  If the
Administrative Agent, any Lender or the L/C Issuer determines, in its good
faith sole discretion, that it has received a refund (in cash or as an offset
against other taxes otherwise then due and payable) of any Indemnified Taxes or
Other Taxes as to which it has been indemnified by Borrower or with respect to
which Borrower has paid additional amounts pursuant to this section, it shall
pay to Borrower an amount equal to such refund (but only to the extent of
indemnity payments made, or additional amounts paid, by Borrower under this Section
3.01 with respect to the Indemnified Taxes or Other Taxes giving rise to
such refund), net of all reasonable out-of-pocket expenses of the
Administrative Agent, such Lender or the L/C Issuer, as the case may be, and
without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund); provided
that Borrower, upon the request of the Administrative Agent, such Lender or the
L/C Issuer, agrees to repay the amount paid over to Borrower (plus any
penalties, interest or other charges imposed by the relevant Governmental
Authority other than penalties, interest and other charges arising out of the
willful misconduct or gross negligence of such Administrative Agent, Lender or
L/C Issuer) to the Administrative Agent, such Lender or the L/C Issuer in the
event the Administrative Agent, such Lender or the L/C Issuer is required to
repay such amount to such Governmental Authority.  This subsection shall not be construed to
require the Administrative Agent, any Lender or the L/C Issuer to make
available its tax returns (or any other information relating to its taxes that
it deems confidential) to Borrower or any other Person.  Notwithstanding anything to the contrary, in
no event will any Lender be required to pay any amount to Borrower the payment
of which would place such Lender in a less favorable net after-tax position
than such Lender would have been in if the additional amounts giving rise to
such refund of any Indemnified Taxes or Other Taxes had never been paid.

 

3.02        Illegality.  If any Change in Law
has made it unlawful, or any Governmental Authority has asserted that it is
unlawful, for any Lender or its applicable Lending Office to make, maintain or
fund Eurodollar Rate Loans, or to determine or charge interest rates based upon
the Eurodollar Rate, then, on notice thereof by such Lender to Borrower through
the Administrative Agent, any obligation of such Lender to make or continue
Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate Loans
shall be suspended until such Lender notifies the Administrative Agent and
Borrower that the circumstances giving rise to such determination no longer
exist.  Upon receipt of such notice,
Borrower shall, upon demand from such Lender (with a copy to the Administrative
Agent), convert all Eurodollar Rate Loans of such Lender to Base Rate Loans,
either on the last day of the Interest Period therefor, if such Lender may
lawfully continue to maintain such Eurodollar Rate Loans to such day, or
immediately, if such Lender may not lawfully continue to maintain such
Eurodollar Rate Loans.  Upon any such
conversion, Borrower shall also pay accrued interest on the amount so
converted. Each Lender agrees to designate a different Lending Office if such
designation will avoid the need for such notice and will not, in the good faith
judgment of such Lender, otherwise be materially disadvantageous to such
Lender.

 

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3.03        Inability To Determine
Rates.  If the
Required Lenders determine for any reason in connection with any request for a
Eurodollar Rate Term Loan or a conversion to or continuation thereof that
(i) Dollar deposits are not being offered to banks in the London interbank
eurodollar market for the applicable amount and Interest Period of such
Eurodollar Rate Term Loan, (ii) adequate and reasonable means do not exist
for determining the Eurodollar Rate for any requested Interest Period with
respect to a proposed Eurodollar Rate Loan or (iii) the Eurodollar Rate
for any requested Interest Period with respect to a proposed Eurodollar Rate
Loan does not adequately and fairly reflect the cost to such Lenders of funding
such Eurodollar Rate Loan, in any such case, the Administrative Agent will
promptly so notify Borrower and each Lender. 
Thereafter, the obligation of the Lenders to make or maintain Eurodollar
Rate Loans shall be suspended until the Administrative Agent (upon the
instruction of the Required Lenders) revokes such notice.  Upon receipt of such notice, Borrower may
revoke any pending request for a Borrowing of, conversion to or continuation of
Eurodollar Rate Loans or, failing that, will be deemed to have converted such
request into a request for a Borrowing of Base Rate Loans in the amount specified
therein.

 

3.04        Increased Costs;
Reserves on Eurodollar Rate Loans.

 

(a)           Increased
Costs Generally.  If any Change in
Law after the Closing Date shall:

 

(i)            impose,
modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for
the account of, or credit extended or participated in by, any Lender (except
any reserve requirement contemplated by Section 3.04(d)) or the L/C
Issuer; or

 

(ii)           impose
on any Lender or the L/C Issuer any other condition, cost or expense affecting
this Agreement or Eurodollar Rate Loans made by such Lender or any Letter of
Credit or participation therein;

 

and the result
of any of the foregoing shall be to increase the cost to such Lender of making
or maintaining any Eurodollar Rate Loan (or of maintaining its obligation to
make any such Loan or of maintaining its obligation to participate in or to
issue any Letter of Credit), or to reduce the amount of any sum received or
receivable by such Lender or the L/C Issuer hereunder (whether of principal,
interest or any other amount), then, from time to time upon written demand of
such Lender setting forth in reasonable detail such increased costs (with a
copy of such demand to the Administrative Agent given in accordance with Section
3.07), Borrower will pay to such Lender or the L/C Issuer, as the case may
be, such additional amount or amounts as will compensate such Lender or the L/C
Issuer, as the case may be, for such increased costs incurred or reduction suffered.

 

(b)           Capital
Requirements.  If any Lender or the
L/C Issuer determines that any Change in Law after the Closing Date affecting
such Lender or the L/C Issuer or any Lending Office of such Lender or such Lender’s
or the L/C Issuer’s holding company, if any, regarding capital requirements has
had the effect of reducing the rate of return on such Lender’s or the L/C Issuer’s
capital or on the capital of such Lender’s or the L/C Issuer’s holding company,
if any, as a consequence of this Agreement, the Commitments of such Lender or
the Loans made by, or participations in Letters of Credit held by, such Lender,
or the Letters of Credit issued by the L/C 

 

73

 

Issuer, to a level below that which such Lender or the L/C Issuer or
such Lender’s or the L/C Issuer’s holding company could have achieved but for
such Change in Law (taking into consideration such Lender’s or the L/C Issuer’s
policies and the policies of such Lender’s or the L/C Issuer’s holding company
with respect to capital adequacy), then from time to time, upon written demand
of such Lender setting forth in reasonable detail such increased costs (with a
copy of such demand to the Administrative Agent given in accordance with Section
3.07), Borrower will pay to such Lender or the L/C Issuer, as the case may
be, such additional amount or amounts as will compensate such Lender or the L/C
Issuer or such Lender’s or the L/C Issuer’s holding company for any such reduction
suffered.

 

(c)           Certificates
for Reimbursement.  A certificate of
a Lender or the L/C Issuer in compliance with Section 3.07(a) setting
forth the amount or amounts necessary to compensate such Lender or the L/C
Issuer or its holding company, as the case may be, as specified in subsection
(a), (b) or (e) of this Section 3.04 and delivered to Borrower shall be
conclusive absent demonstrable error. 
Borrower shall pay such Lender or the L/C Issuer, as the case may be,
the amount shown as due on any such certificate within 10 days after receipt
thereof.

 

(d)           Reserves
on Eurodollar Rate Loans.  If any
Lender is required to maintain reserves with respect to liabilities or assets
consisting of or including Eurodollar funds or deposits (currently known as “Eurocurrency
liabilities”), Borrower shall pay to such Lender additional interest on the
unpaid principal amount of each Eurodollar Rate Loan equal to the actual costs
of such reserves allocated to such Loan by such Lender (as determined by such
Lender in good faith, which determination shall be conclusive in the absence of
demonstrable error), which shall be due and payable on each date on which
interest is payable on such Loan; provided
Borrower shall have received at least 10 days’ prior notice (with a copy to the
Administrative Agent) of such additional interest (together with the
certificate referred to in clause (c) above) from such Lender.  If a Lender fails to give notice 15 days
prior to the relevant Interest Payment Date, such additional interest shall be
due and payable 15 days from receipt of such notice.

 

3.05        Compensation for
Losses.  Upon
demand of any Lender or the L/C Issuer (with a copy to the Administrative
Agent) from time to time, Borrower shall promptly compensate such Lender for
and hold such Lender or such L/C Issuer harmless from any actual loss, cost or
expense incurred by it as a result of:

 

(a)           any
continuation, conversion, payment or prepayment of any Loan other than a Base
Rate Loan on a day other than the last day of the Interest Period for such Loan
(whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise);
or

 

(b)           any
failure by Borrower (for a reason other than the failure of such Lender to make
a Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate
Loan on the date or in the amount notified by Borrower;

 

including any
loss or expense arising from the liquidation or reemployment of funds obtained
by it to maintain such Loan or from fees payable to terminate the deposits from
which such funds were obtained.  Borrower
shall also pay any reasonable and customary administrative fees charged by such
Lender in connection with the foregoing.

 

74

 

For purposes of calculating amounts payable
by Borrower to any Lender under this Section 3.05, such Lender
shall be deemed to have funded each Eurodollar Rate Loan made by it at the
Eurodollar Rate for such Loan by a matching deposit or other borrowing in the
London interbank eurodollar market for a comparable amount and for a comparable
period, whether or not such Eurodollar Rate Loan was in fact so funded.

 

3.06        Mitigation
Obligations; Replacement of Lenders.

 

(a)           Designation
of a Different Lending Office.  If
any Lender requests compensation under Section 3.04, or Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, or if
any Lender gives a notice pursuant to Section 3.02, then such Lender
shall use commercially reasonable efforts (subject to such Lender’s internal
policies and any legal or regulatory restrictions) to avoid the consequences of
such event, including to designate a different Lending Office for funding or
booking its Loans hereunder or to assign its rights and obligations hereunder
to another of its offices, branches or affiliates, if, in the judgment of such
Lender, such efforts (i) would eliminate or reduce amounts payable pursuant to Section
3.01 or 3.04, as the case may be, or eliminate the need for the
notice pursuant to Section 3.02, as applicable, and (ii) in each case,
would not subject such Lender to any unreimbursed cost or expense and would not
otherwise be disadvantageous to such Lender. 
Borrower hereby agrees to pay all reasonable costs and expenses incurred
by any Lender in connection with any such designation or assignment.

 

(b)           Replacement
of Lenders.  If any Lender requests
compensation under Section 3.04, or if Borrower is required to pay any
additional amount to or for the account of any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, Borrower
may replace such Lender in accordance with Section 10.13.

 

3.07        Matters
Applicable to Requests for Compensation.

 

(a)           Any
Agent or any Lender claiming compensation under Sections 3.02 through 3.05
shall deliver a certificate to Borrower contemporaneously with the demand for
payment setting forth in reasonable detail a calculation of the additional
amount or amounts to be paid to it hereunder which shall be conclusive in the
absence of demonstrable error.  In
determining such amount, such Agent or such Lender may use any reasonable
averaging and attribution methods.

 

(b)           With
respect to any Lender’s claim for compensation under any of Sections 3.02
through 3.05, Borrower shall not be required to compensate such Lender
for any amount incurred more than 180 days prior to the date that such Lender
notifies Borrower of the event that gives rise to such claim; provided
that, if the circumstance giving rise to such increased cost or reduction is
retroactive, then such 180-day period referred to above shall be extended to include
the period of retroactive effect thereof. 
If any Lender requests compensation from Borrower under Section 3.05,
Borrower may, by notice to such Lender (with a copy to the Administrative
Agent), suspend the obligation of such Lender to make or continue from one
Interest Period to another Eurodollar Rate Loans, or to convert Base Rate Loans
into Eurodollar Rate Loans, until the event or condition giving rise to such
request ceases to be in effect (in which case the provisions of Section
3.07(c) shall be applicable); provided that such suspension shall
not affect the right of such Lender to receive the compensation so requested.

 

75

 

(c)           If
the obligation of any Lender to make or continue from one Interest Period to
another any Eurodollar Rate Loan (or to convert Base Rate Loans into Eurodollar
Rate Loans) shall be suspended pursuant to Section 3.07(b) hereof, such
Lender’s Eurodollar Rate Loans shall be automatically converted into Base Rate
Loans on the last day(s) of the then current Interest Period(s) for such
Eurodollar Rate Loans (or, in the case of an immediate conversion required by Section
3.02, on such earlier date as required by Law) and, unless and until such
Lender gives notice as provided below that the circumstances specified in Sections
3.02 through 3.04 hereof that gave rise to such conversion no longer
exist:  (i) to the extent that such
Lender’s Eurodollar Rate Loans have been so converted, all payments and
prepayments of principal that would otherwise be applied to such Lender’s
Eurodollar Rate Loans shall be applied instead to its Base Rate Loans; and (ii)
all Loans that would otherwise be made or continued from one Interest Period to
another by such Lender as Eurodollar Rate Loans shall be made or continued instead
as Base Rate Loans, and all Base Rate Loans of such Lender that would otherwise
be converted into Eurodollar Rate Loans shall remain as Base Rate Loans.

 

(d)           If
any Lender gives notice to Borrower (with a copy to the Administrative Agent)
that the circumstances specified in any of Sections 3.02 through 3.04
that gave rise to the conversion of such Lender’s Eurodollar Rate Loans
pursuant to this Section 3.07 no longer exist (which such Lender agrees
to do promptly upon such circumstances ceasing to exist) at a time when
Eurodollar Rate Loans made by other Lenders are outstanding, such Lender’s Base
Rate Loans shall be automatically converted, on the first day(s) of the next
succeeding Interest Period(s) for such outstanding Eurodollar Rate Loans, to
the extent necessary so that, after giving effect thereto, all Loans held by
the Lenders holding Eurodollar Rate Loans and by such Lender are held pro rata
(as to principal amounts, interest rate basis, and Interest Periods) in
accordance with their respective Commitments.

 

3.08        Survival.  All of Borrower’s
obligations under this Article III shall survive termination of the
Aggregate Commitments and repayment of all other Obligations hereunder.

 

ARTICLE IV

 

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

 

4.01        Conditions
of Initial Credit Extension.  The
obligation of the L/C Issuer and each Lender to make its initial Credit Extension
on the Closing Date is subject to satisfaction or waiver of the following conditions
precedent:

 

(a)           Loan
and Corporate Documents; Certificates. 
The Administrative Agent’s receipt of the following, each of which shall
be originals or facsimiles (followed promptly by originals) unless otherwise
specified, each, if applicable, properly executed by a Responsible Officer of
the signing Loan Party, each dated the Closing Date (or, in the case of
certificates of governmental officials, a recent date before the Closing Date)
and each in form and substance reasonably satisfactory to the Administrative
Agent:

 

(i)           executed
counterparts of this Agreement, the Guaranty, the Security Agreement, each
Mortgage and the Perfection Certificate;

 

76

 

(ii)           a
Note executed by Borrower in favor of each Lender requesting a Note;

 

(iii)          such
certificates of resolutions or other equivalent action and incumbency
certificates of Responsible Officers of each Loan Party as the Administrative
Agent may reasonably require evidencing the identity, authority and capacity of
each Responsible Officer thereof authorized to act as a Responsible Officer in
connection with this Agreement and the other Loan Documents to which such Loan
Party is a party;

 

(iv)          such
documents and certifications as the Administrative Agent may reasonably require
to evidence that each Loan Party is duly organized or formed, is validly
existing, in good standing and qualified to engage in business in its
jurisdiction of incorporation or organization or in which Mortgaged Property
owned or leased by it is located;

 

(v)           a
certificate signed by the president and vice president of Borrower certifying
(A) that the conditions specified in Sections 4.02(a) and (b)
have been satisfied and (B) that there has been no event or circumstance since
December 31, 2005 that has had or would be reasonably expected to have, either
individually or in the aggregate, a Material Adverse Effect;

 

(vi)          a
Solvency Certificate, executed on behalf of Holdings by a Responsible Officer
of Holdings; and

 

(vii)         a
Borrowing or Conversion Notice or Letter of Credit Application, as applicable,
relating to the initial Credit Extension.

 

(b)           Financings
and Other Transactions, Etc. The Administrative Agent shall have received
evidence reasonably satisfactory to it that prior to or substantially
concurrently with the initial Credit Extension, the Acquisition, the Equity Contribution,
the termination of the SagamoreHill Facility, the offering of the Senior
Subordinated Notes (or, alternatively, the funding of the senior subordinated
bridge facility in lieu thereof) and the receipt of not less than $125.0
million in gross cash proceeds therefrom and the other Transactions shall have
been consummated or shall be consummated contemporaneously on the Closing Date,
in each case in all material respects in accordance with the terms hereof and
the terms of the Transaction Documents unless otherwise agreed by the Administrative
Agent.

 

(c)           Opinions
of Counsel. The Administrative Agent shall have received, on behalf of
itself, the other Agents, the Lenders and the L/C Issuer, (i) an opinion
of Paul, Hastings, Janofsky & Walker LLP, special New York and Delaware
counsel and FCC counsel to the Loan Parties, dated the Closing Date, substantially
in the form of Exhibit J-1; and (ii) an opinions of local counsel,
dated the Closing Date, substantially in the form of Exhibit J-2;

 

(d)           Indebtedness.
After giving effect to the Transactions, Holdings and its Subsidiaries shall
have no outstanding Indebtedness or preferred stock, except for Indebtedness

 

77

 

incurred pursuant to (x) this Agreement, and (y) Indebtedness and
preferred stock permitted pursuant to Section 7.01(a).

 

(e)           Personal
Property Requirements. The Collateral Agent shall have received:

 

(i)        all
certificates or instruments representing or evidencing the Securities
Collateral accompanied by instruments of transfer and stock powers undated and
endorsed in blank;

 

(ii)       all
other certificates and agreements, including control agreements with respect to
bank accounts with an average daily balance in excess of $500,000, instruments
necessary to perfect the Collateral Agent’s security interest in all Chattel
Paper, all Instruments, all Deposit Accounts, all Securities Accounts, all
Commodity Accounts, and all Investment Property (as each such term is defined
in the Security Agreement and to the extent required by the Security Agreement)
of each Loan Party have been delivered to the Collateral Agent;

 

(iii)      UCC
financing statements in appropriate form for filing under the UCC, filings with
the United States Patent and Trademark Office and United States Copyright
Office and such other documents under applicable law in each jurisdiction as
may be necessary to perfect the Liens created, or purported to be created, by
the Security Documents (to the extent required by the Security Agreement);

 

(iv)      copies
of UCC, United States Patent and Trademark Office and United States Copyright
Office, tax and judgment lien searches, bankruptcy and pending lawsuit searches
or equivalent reports or searches, each of a recent date in each of the
jurisdictions set forth in Schedules 1(c) and 4 attached to
the Perfection Certificate, the results of which shall not reveal any Liens on
the Collateral covered or intended to be covered by the Security Documents
(other than Liens permitted by Section 7.02 or any other Liens
reasonably acceptable to the Collateral Agent); and

 

(v)       evidence
reasonably acceptable to the Collateral Agent of payment or arrangements for
payment by the Loan Parties of all applicable recording taxes, fees, charges,
costs and expenses required for the recording of the Security Documents, if
any.

 

(f)            Insurance.
The Administrative Agent shall have received a copy of, or a certificate as to
coverage under, the insurance policies required by Section 6.02 and
the applicable provisions of the Security Documents, each of which shall be
endorsed or otherwise amended to include a “standard” or “New York” lender’s
loss payable or mortgagee endorsement (as applicable) and shall name the
Collateral Agent, on behalf of the Secured Parties, as additional insured, in
form and substance reasonably satisfactory to the Administrative Agent.

 

78

 

(g)           Consents.
All necessary governmental, shareholder and third party consents (including
Hart-Scott Rodino Antitrust Improvements Act and FCC consents) and approvals
necessary in connection with the Transactions shall have been received and shall
be in full force and effect, except for such approvals and consents the failure
to obtain which would not reasonably be expected to result in a Material
Adverse Effect. No judgment, order, injunction or other restraint by any Governmental
Authority shall prohibit or impose any material adverse conditions on the
Transactions.

 

(h)           Fees
and Expenses. All documented fees and out-of-pocket expenses of the
Administrative Agent, the Arrangers and the Lenders (including those of Cahill
Gordon & Reindel LLP, counsel for the Administrative Agent and the Arrangers)
required to be paid on or before the Closing Date shall have been paid.

 

(i)            Pro Forma Financial Statements.
The Arrangers shall have received and be satisfied with (I) the
audited combined consolidated financial statements of Holdings and Borrower for
the fiscal years ended December 31, 2005 and 2004, (II) the audited combined
consolidated financial statements of the Acquired Business for the fiscal years
ended December 31, 2005, 2004 and 2003, (III) unaudited combined consolidated
financial statements of Holdings and Borrower and of the Acquired Business for
the fiscal quarter ended March 31, 2006, with such unaudited combined
consolidated financial statements to be prepared in accordance with generally
accepted accounting principles in the United States for interim reporting (and
accordingly, such statements do not include all of the information and notes
required by accounting principles generally accepted in the United States for
complete financial statements), (IV) pro forma financial statements as to
Holdings and Borrower, giving effect to the Transactions for the most recently
completed fiscal year and any subsequent interim quarterly period, which shall
meet the requirements of Regulation S-X under the Securities Act, and all other
accounting rules and regulations of the SEC promulgated thereunder applicable
to a registration statement under such Act on Form S-1 and (V) forecasts of the
financial performance of Holdings, Borrower, the Acquired Business and their
respective Subsidiaries for the four fiscal quarters following the Closing Date
and for each of the full fiscal years from 2007 through 2013.

 

(j)            Mortgages.
Mortgages encumbering the Real Properties in favor of the Collateral Agent, for
the benefit of the Secured Parties set forth on Schedule 4.01(j) duly
executed and acknowledged by the appropriate Loan Parties, together with:

 

(i)            evidence
that counterparts of the Mortgages have been duly executed, acknowledged and
delivered and are in form suitable for filing or recording in all filing or
recording offices that the Collateral Agent may deem reasonably necessary in
order to create a valid and subsisting perfected Lien on the property described
therein in favor of the Collateral Agent for the benefit of the Secured Parties
and that all filing and recording taxes and fees have been paid or otherwise
provided for in a manner reasonably satisfactory to the Collateral Agent;

 

79

 

(ii)           fully
paid Fee Lender’s Extended Coverage title insurance policies or the equivalent
or other form available in each applicable jurisdiction in form and substance,
with endorsements and in coverage amounts, reasonably acceptable to the
Collateral Agent (not to exceed the value of the Real Properties covered
thereby issued by title insurers reasonably acceptable to the Collateral Agent,
insuring the Mortgages to be valid subsisting Liens on the Real Property
described therein, free and clear of all defects and encumbrances, subject to
First Priority Liens permitted by Section 7.02, and providing for such
other affirmative insurance (including endorsements for future advances under
the Loan Documents) as the Collateral Agent may deem reasonably necessary;

 

(iii)          opinions
of local counsel for the Loan Parties in states in which the Mortgaged
Properties are located, with respect to the enforceability and perfection of
the Mortgages and any related fixture filings in form and substance reasonably
satisfactory to the Collateral Agent;

 

(iv)          Surveys
with respect to each such Mortgaged Property;

 

(v)           such
other evidence that all other actions that the Administrative Agent may
reasonably deem necessary in order to create valid and subsisting Liens on the
property described in the Mortgages has been taken; and

 

(vi)          a
completed Federal Emergency Management Agency Standard Flood Hazard
Determination with respect to each Mortgaged Property.

 

Without limiting the generality of the
provisions of Section 9.04, for purposes of determining compliance with
the conditions specified in this Section 4.01, each Lender that has
signed this Agreement shall be deemed to have consented to, approved or
accepted or to be satisfied with, each document or other matter required
thereunder to be consented to or approved by or acceptable or satisfactory to a
Lender unless the Administrative Agent shall have received notice from such
Lender prior to the funding on the Closing Date specifying its objection
thereto.

 

4.02        Conditions
to All Credit Extensions. The obligation of each
Lender to honor any Request for Credit Extension (including the initial Credit
Extension and other than a Borrowing or Conversion Notice requesting only a conversion
of Revolving Loans to the other Type or a conversion of Term Loans to the other
Type, or both, as the case may be, or a continuation of Eurodollar Rate Loans)
is subject to the following conditions precedent:

 

(a)           The
representations and warranties of Borrower and each other Loan Party contained
in Article V or any other Loan Document, or which are contained in any
document furnished at any time under or in connection herewith or therewith,
shall be true and correct in all material respects on and as of the date of
such Credit Extension, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they shall be
true and correct in all material aspects as of such earlier date, and except
that for purposes of this Section 4.02, the representations and
warranties contained in subsections (a) and (b) of Section 5.05 shall be
deemed to refer to the most recent statements of Holdings and the Subsidiaries
furnished pursuant to Section 6.04(a)

 

80

 

and Section 6.04(b), respectively, and, in the case of the
financial statements furnished pursuant to Section 6.04(b), the representations
contained in Section 5.05(a), as modified by this clause (a), shall be
qualified by the statement that such financial statements are subject to the
absence of footnotes and year-end audit adjustments.

 

(b)           No
Default or Event of Default shall have occurred and be continuing, or would
result from such proposed Credit Extension or from the application of the
proceeds thereof.

 

(c)           The
Administrative Agent and, if applicable, the L/C Issuer or the Swing Line
Lender shall have received a Request for Credit Extension in accordance with
the requirements hereof.

 

Each Request for Credit Extension (other than
a Borrowing or Conversion Notice requesting only a conversion of Revolving
Loans to the other Type or a conversion of Term Loans to the other Type, or
both, as the case may be, or a continuation of Eurodollar Rate Loans) submitted
by Borrower shall be deemed to be a representation and warranty that the conditions
specified in Sections 4.02(a) and (b) have been satisfied on and
as of the date of the applicable Credit Extension.

 

ARTICLE V

 

REPRESENTATIONS AND WARRANTIES

 

Holdings and Borrower represent and warrant
to the Administrative Agent and the Lenders that:

 

5.01        Existence,
Qualification and Power; Compliance with Laws. Each
Loan Party and each Subsidiary thereof (a) is duly organized or formed, validly
existing and in good standing under the Laws of the jurisdiction of its
incorporation or organization, (b) has all requisite limited liability company
or corporate power and authority to (i) own its assets and carry on its
business and (ii) execute, deliver and perform its obligations under the Loan
Documents to which it is a party, (c) is duly qualified and in good standing
under the Laws of each jurisdiction where its ownership, lease or operation of
properties or the conduct of its business requires such qualification or
license, (d) is in compliance with all Laws and (e) has all requisite
governmental licenses, authorizations, consents and approvals to operate its
business as currently conducted, except in each case referred to in clause
(b)(i), (c), (d) or (e), to the extent that failure to do so would not reasonably
be expected to have, either individually or in the aggregate, a Material
Adverse Effect.

 

5.02        Authorization;
No Contravention. The execution, delivery and
performance by each Loan Party of each Loan Document to which such Person is
party have been duly authorized by all necessary corporate, limited liability
company, shareholder, member or other organizational action, and do not and
will not (a) contravene the terms of any of such Person’s organizational documents;
(b) conflict with or result in any breach or contravention of, or the creation
of any Lien (other than as permitted under Section 7.02) under (i) any
Contractual Obligation to which such Person is a party or affecting such Person
or the properties of such Person or any of

 

81

 

its Subsidiaries or (ii) any order, injunction,
writ or decree of any Governmental Authority or any arbitral award to which
such Person or its property is subject; or (c) violate any Law; except, with
respect to any conflict, breach or contravention (but not creation of Liens)
referred to in clause (b) or any violation referred to in clause (c), to the
extent that such conflict, breach, contravention or violation would not reasonably
be expected to have, either individually or in the aggregate, a Material
Adverse Effect.

 

5.03        Governmental
Authorization; Other Consents. No material approval,
consent, exemption, authorization, or other action by, or notice to, or filing
with, any Governmental Authority or any other Person is necessary or required
to be made or obtained by any Loan Party in connection with (a) the execution,
delivery or performance by any Loan Party of this Agreement or any other Loan
Document, (b) the grant by any Loan Party of the Liens granted by it pursuant
to the Security Documents, (c) the perfection or maintenance of the Liens
created under the Security Documents (including the priority thereof) or (d)
the exercise by any Agent or any Lender of its rights under the Loan Documents
or the remedies in respect of the Collateral pursuant to the Security Documents,
except for (i) filings necessary to perfect the Liens on the Collateral
granted by the Loan Parties in favor of the Secured Parties, (ii) the
approvals, consents, exemptions, authorizations, actions, notices and filings
which have been duly obtained, taken, given or made and are in full force and
effect, (iii) those approvals, consents, exemptions, authorizations, actions,
notices or filings described in the Security Agreement, (iv) the filing with
the FCC of copies of certain of the Loan Documents within thirty (30) days of
the date of their execution, (v) applications to the FCC requesting its prior
consent to the exercise by the Agents and/or the Lenders of certain of their
remedies under this Agreement and under the Security Documents, following an
uncured Event of Default, as contemplated by Section 10.17, and (vi)
those approvals, consents, exemptions, authorizations, actions, notices or
filings, the failure of which to obtain or make would not reasonably be
expected to have, either individually or in the aggregate, a Material Adverse Effect.

 

5.04        Binding
Effect. This Agreement has been duly executed and
delivered by each Loan Party that is party hereto. This Agreement constitutes,
and each other Loan Document when so executed and delivered will constitute, a
legal, valid and binding obligation of such Loan Party, enforceable against
each Loan Party that is a party thereto in accordance with its terms, except as
such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, receivership, fraudulent conveyance, moratorium or similar laws
affecting creditors’ rights generally, and by general equitable principles
(whether enforcement is sought by proceedings in equity or at law).

 

5.05        Financial
Statements; No Material Adverse Effect.

 

(a)           The
Audited Financial Statements (i) were prepared in accordance with GAAP
consistently applied throughout the periods covered thereby, except as
otherwise expressly noted therein; and (ii) fairly present in all material
respects the financial condition of Holdings and Borrower and its Subsidiaries
and of Acquired Business and its Subsidiaries, as the case may be, in each case
as of the date thereof and their results of operations for the periods covered
thereby in accordance with GAAP consistently applied throughout the periods covered
thereby, except as otherwise expressly noted therein.

 

82

 

(b)           Since
December 31, 2005, no Material Adverse Effect has occurred.

 

(c)           The
unaudited consolidated pro forma balance sheet of Holdings and Borrower as at
March 31, 2006 and the related unaudited consolidated pro forma statement of operations
of Holdings and Borrower for the twelve months then ended fairly present in all
material respects the consolidated pro forma financial condition of Holdings
and Borrower as at such date and the consolidated pro forma results of
operations of Holdings and Borrower for the period ended on such date (except
in each case for the effects of fair value adjustments to the acquired tangible
and intangible assets and liabilities required by purchase accounting principles),
subject to the absence of footnotes and to normal year-end audit adjustments.

 

(d)           The
consolidated forecasted balance sheet and statements of income and cash flows
of Holdings and Borrower delivered to the Lenders prior to the Closing Date
pursuant to Section 4.01(i) were prepared in good faith on the basis of
estimates, information and assumptions believed by management of Borrower to be
reasonable in light of the conditions existing at the time made, it being
recognized by the Lenders that (i) such forecasts, as they relate to
future events, are not to be viewed as fact and that actual results during the
period or periods covered by such forecasts may differ from the projected results
and that such difference may be material and that such forecasts are not a
guarantee of financial performance and (ii) no representation is made with
respect to information of a general economic or general industry nature.

 

5.06        Litigation.
Except as set forth on Schedule 5.06 on the Closing Date, there are
no actions, suits, proceedings, claims or disputes pending or, to the knowledge
of Holdings and the Subsidiaries, threatened or contemplated, at law, in
equity, in arbitration or before any Governmental Authority, by or against
Holdings or any of the Subsidiaries or against any of their properties or
revenues that (a) purport to affect or pertain to this Agreement or any other
Loan Document, or any of the transactions contemplated hereby or (b) either individually
or in the aggregate, if determined adversely, would reasonably be expected to
have a Material Adverse Effect.

 

5.07        No
Default. Neither Holdings nor any of its Subsidiaries
is in default under or with respect to any Contractual Obligation that would, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. No Default has occurred and is continuing or would result from
the consummation of the transactions contemplated by this Agreement or any
other Loan Document.

 

5.08        Properties.

 

(a)           Generally.
Holdings and each of its Subsidiaries has marketable title to, or valid
leasehold interests in, all its tangible property material to its business,
free and clear of all Liens except for Liens permitted by Section 7.02
and minor irregularities or deficiencies in title that do not materially
interfere with its ability to conduct its business as currently conducted or to
utilize such property for its intended purpose. As of the Closing Date, the
tangible property of Holdings and the Subsidiaries, taken as a whole, (i) is in
reasonably good operating order, condition and repair (other than ordinary wear
and tear to be expected in the ordinary course of business) and (ii)
constitutes all the tangible property which is required for the business and
operations of Holdings and the Subsidiaries as presently conducted.

 

83

 

(b)           Real
Property. As of the Closing Date, Schedule 4.01(j) contains a true and
complete list of each interest in Real Property (i) owned by Holdings and
its Subsidiaries as of the Closing Date and describes the type of interest
therein held by Holdings and its Subsidiaries, (ii) leased, subleased or
otherwise occupied or utilized by Holdings or its Subsidiaries, as lessee,
sublessee, franchisee or licensee, as of the Closing Date and describes the
type of interest therein held by such company, and indicates which Real
Properties identified in clause (i) are encumbered by a Mortgage in favor of
the Collateral Agent for the benefit of the Secured Parties with such Real
Properties listed under the heading “Mortgaged Properties.”

 

(c)           No
Extraordinary Receipts; Flood Insurance. As of the Closing Date, none of
Holdings or its Subsidiaries has received any notice of, nor has any knowledge
of, the occurrence or pendency or contemplation of any Extraordinary Receipts
affecting all or any material portion of its property. As of the Closing Date,
no Mortgage encumbers improved Real Property that is located in an area that
has been identified by the Secretary of Housing and Urban Development as an
area having special flood hazards within the meaning of the National Flood
Insurance Act of 1968 unless flood insurance available under such Act has been
obtained to the extent required by Section 6.02(b).

 

5.09        Environmental
Matters.

 

(a)           Except
as set forth in Schedule 5.09 and except as, individually or in the
aggregate, would not reasonably be expected to result in a Material Adverse
Effect:

 

(i)            Holdings
and its Subsidiaries and their businesses, operations and Real Property are in
compliance with, and Holdings and its Subsidiaries have no liability under, Environmental
Law;

 

(ii)           Holdings
and its Subsidiaries have obtained all Environmental Permits required for the
conduct of their businesses and operations, and the ownership, operation and
use of their property, including Real Property, under Environmental Law, and
all such Environmental Permits are valid and in full force and effect;

 

(iii)          There
has been no Release, or to the knowledge of Holdings and its Subsidiaries no
threatened Release, of Hazardous Material on, at, under or from any Real
Property or facility presently or formerly owned, leased or operated by
Holdings and its Subsidiaries or their predecessors in interest that would
reasonably be expected to result in liability on the part of Holdings and its
Subsidiaries under Environmental Law;

 

(iv)          There
is no Environmental Claim pending, or to the knowledge of Holdings and its
Subsidiaries threatened, against Holdings and its Subsidiaries, or relating to
the Real Property currently or formerly owned, leased or operated by Holdings
and its Subsidiaries or relating to the operations of Holdings and its
Subsidiaries, and there are no actions, activities, circumstances, conditions,
events or incidents that could reasonably be expected to form the basis of such
an Environmental Claim;

 

(v)           No
Person with an indemnity or contribution obligation to Holdings and its
Subsidiaries relating to compliance with or liability under Environmental Law
is in default with respect to such obligation; and

 

84

 

(vi)          Holdings
and its Subsidiaries have made available to the Lenders all material records
and files in the possession, custody or control of, Holdings and its
Subsidiaries concerning compliance with or liability under Environmental Law,
including without limitation those concerning Releases or threatened Releases
of Hazardous Material at Real Property or facilities currently or formerly
owned, operated, leased or used by Holdings and its Subsidiaries.

 

(b)           Except
as set forth in Schedule 5.09:

 

(i)            None
of Holdings or its Subsidiaries is obligated to perform any action or otherwise
incur any expense under Environmental Law pursuant to any order, decree,
judgment or agreement by which it is bound, and none of them is conducting or financing
any Response pursuant to any Environmental Law with respect to any Real
Property or any other location;

 

(ii)           No
Real Property or facility currently owned, operated or leased by Holdings and
its Subsidiaries and, to the knowledge of Holdings and the Subsidiaries no Real
Property or facility formerly owned, operated or leased by Holdings and its
Subsidiaries or any of their predecessors in interest, is (i) listed or
proposed for listing on the National Priorities List promulgated pursuant to
CERCLA or (ii) listed on the Comprehensive Environmental Response, Compensation
and Liability Information System promulgated pursuant to CERCLA or
(iii) included on any similar list maintained by any Governmental
Authority including any such list relating to petroleum;

 

(iii)          No
Lien has been recorded or, to the knowledge of Holdings and the Subsidiaries
threatened, under any Environmental Law with respect to any owned real property
or other assets of Holdings and its Subsidiaries; and

 

(iv)          The
execution, delivery and performance of this Agreement and the consummation of
the transactions contemplated hereby will not require any material notification,
registration, filing, reporting, disclosure, investigation, or Response pursuant
to any Governmental Real Property Disclosure Requirements or any other
Environmental Law.

 

5.10        Insurance.
With respect to any Mortgage executed and delivered
after the Closing Date pursuant to Section 6.09(c), the Premises, and
the use, occupancy and operation thereof, comply in all material respects with
all Insurance Requirements, and comply with the requirements of Section 6.02,
and there exists no default under any Insurance Requirement. Each of Holdings
and its Subsidiaries has insurance in such amounts and covering such risks and
liabilities as are customary for companies of a similar size engaged in similar
businesses in similar locations. All insurance maintained by Holdings and its
Subsidiaries is in full force and effect, all premiums have been duly paid, and
none of Holdings or its Subsidiaries has received notice of violation or
cancellation thereof.

 

5.11        Taxes.
Holdings and the Subsidiaries have timely filed all material Federal, state and
other tax returns and reports required to be filed, and have timely paid all
material Federal, state and other Taxes, assessments, fees and other governmental
charges levied or imposed upon them or their properties otherwise due and
payable (whether or not shown on any tax return), except

 

85

 

those which are being contested in good faith
by appropriate proceedings diligently conducted and for which adequate reserves
have been provided in accordance with GAAP. There is no written proposed tax
assessment against Holdings or any Subsidiary that, if made, would reasonably
be expected to result in a Material Adverse Effect. Each Loan Party and each
Subsidiary has made adequate provision in accordance with GAAP for all Taxes
not yet due and payable. Neither any Loan Party nor any Subsidiary has ever
been a party to any understanding or arrangement constituting a “tax shelter”
within the meaning of Section 6662(d)(2)(C)(iii) of the Code or within the
meaning of Section 6111(c) or Section 6111(d) of the Code as in effect immediately
prior to the enactment of the American Jobs Creation Act of 2004, or has ever
“participated” in a “listed transaction” within the meaning of Treas. Reg. Section
 1.6011-4, except as would not be reasonably expected to, individually or
in the aggregate, result in a Material Adverse Effect. Neither any Loan Party
nor any Subsidiary thereof has any liabilities for the Taxes of any Person
under Treas. Reg. Section 1.1502-6 or any similar provision of state, local or
foreign law, as a transferee or successor, by contract or otherwise, except as
would not, either individually or in the aggregate, result in a Material
Adverse Effect.

 

5.12        ERISA
Compliance. No ERISA Event has occurred or is
reasonably expected to occur that, when taken together with all other such
ERISA Events for which liability is reasonably expected to occur, would
reasonably be expected to result in a Material Adverse Effect. Borrower and
each ERISA Affiliate are in compliance with the presently applicable provisions
of ERISA and the Code with respect to each Employee Benefit Plan, except where
noncompliance would not reasonably be expected to result, either individually
or in the aggregate, in a Material Adverse Effect. The present value of all
accumulated benefit obligations of all underfunded Pension Plans (based on the
assumptions used for purposes of Statement of Financial Accounting Standards
No. 87) did not, as of the date of the most recent financial statements
reflecting such amounts, exceed the fair market value of the assets of all such
underfunded Pension Plans by an amount that would reasonably be expected to
result in a Material Adverse Effect. Using actuarial assumptions and computation
methods consistent with subpart 1 of subtitle E of Title IV of ERISA, the aggregate
liabilities of each ERISA Entity to all Multiemployer Plans in the event of a
complete withdrawal therefrom, as of the close of the most recent fiscal year
of each such Multiemployer Plan, would not reasonably be expected to result in
a Material Adverse Effect.

 

5.13        Subsidiaries;
Equity Interests.

 

(a)           On
the Closing Date, after giving effect to the Transactions, the corporate structure
of Holdings and the Subsidiaries is as set forth on Schedule 5.13(a).

 

(b)           Schedule
5.13(b) sets forth as of the Closing Date the name and jurisdiction of
incorporation, formation or organization of each Subsidiary and, as to each
such Subsidiary, the percentage of each class of Equity Interests owned by
Holdings or by any such Subsidiary, subject to such changes as are reasonably
satisfactory to the Administrative Agent.

 

(c)           As
of the Closing Date, there are no outstanding subscriptions, options, warrants,
calls, rights or other similar agreements or commitments (other than stock
options granted to employees or directors and directors’ qualifying shares) of
any nature relating to any Equity Interests of Holdings, Borrower or any of the
Subsidiaries, except as set forth on Schedule 5.13(c).

 

86

 

5.14        Margin
Regulations; Investment Company Act; Public Utility Holding Company Act.

 

(a)           No
proceeds of any Loan or drawing under any Letter of Credit will be used to
purchase or carry any margin stock or to extend credit to others for the
purpose of purchasing or carrying margin stock in violation of Regulation U and
neither Holdings nor any of its Subsidiaries is engaged principally, or as one
of its important activities, in the business of extending credit for the purpose
of purchasing or carrying margin stock.

 

(b)           No
Loan Party (i) is a “holding company,” or a “subsidiary company” of a “holding
company,” or an “affiliate” of a “holding company” or of a “subsidiary company”
of a “holding company,” within the meaning of the Energy Policy Act of 2005, or
(ii) is or is required to be registered as an “investment company” under the
Investment Company Act of 1940.

 

5.15        Disclosure.
No report, financial statement, certificate or other information concerning Holdings
and the Subsidiaries and the Transactions, including the Confidential
Information Memorandum and the Perfection Certificate, furnished in writing by
or on behalf of any Loan Party to any Agent or any Lender in connection with
the Transactions or delivered hereunder or under any other Loan Document (taken
as a whole, the “Information”), as of the date such Information was
furnished (or, in the case of the Confidential Information Memorandum, as of
the date of this Agreement or as of the Closing Date), when taken as a whole
contained any material misstatement of fact or omitted to state any material
fact necessary to make the statements contained therein, in the light of the
circumstances under which they were made, not misleading; provided that,
with respect to projections, estimates, budgets and other forward-looking
information concerning Holdings and the Subsidiaries furnished in writing by or
on behalf of any Loan Party to any Agent or any Lender in connection with the
Transactions or delivered hereunder or under any other Loan Document (taken as
a whole, the “Projections”), Holdings and Borrower represent and warrant
only that such Projections were prepared in good faith based upon reasonable
assumptions in light of conditions existing at the time of preparation; it
being understood that (a) such Projections are not to be viewed as facts,
that actual results during the period or periods covered by such Projections
may differ significantly from the projected or forecasted results and that such
differences may be material and that such Projections are not a guarantee of
financial performance and (b) no representation is made with respect to
information of a general economic or general industry nature.

 

5.16        Compliance
with Laws. Holdings and each of its Subsidiaries is in
compliance in all material respects with the requirements of all Laws and all
orders, writs, injunctions and decrees applicable to it or to its properties,
except in such instances in which (a) such applicable law or order, writ, injunction
or decree is being contested in good faith by appropriate proceedings or (b)
the failure to comply therewith, either individually or in the aggregate, would
not reasonably be expected to have a Material Adverse Effect.

 

5.17        Solvency.
Immediately after the consummation of the Transactions to occur on the Closing
Date, (a) the fair value of the properties of the Loan Parties, taken as a
whole, will exceed their debts and liabilities, subordinated, contingent or
otherwise; (b) the present fair saleable value of the property of the Loan
Parties, taken as a whole, will be greater than the amount that will be required
to pay the probable liability of their debts and other liabilities,
subordinated,

 

87

 

contingent or otherwise, as such debts and
other liabilities become absolute and matured; (c) the Loan Parties, taken
as a whole, will be able to pay their debts and liabilities, subordinated, contingent
or otherwise, as such debts and liabilities become absolute and matured; and
(d) the Loan Parties, taken as a whole, will not have unreasonably small
capital with which to conduct the businesses in which they are engaged.

 

5.18        Intellectual
Property Matters. Each Loan Party owns, or is licensed
to use, all United States patents, trademarks, trade names, service marks,
copyrights, technology, trade secrets, domain names, know-how and processes
reasonably necessary for the conduct of its business as currently conducted
(the “Intellectual Property”), except for those the failure to own or be
licensed which, individually or in the aggregate, would not reasonably be expected
to result in a Material Adverse Effect. To the knowledge of Borrower, no claim
has been asserted and is pending by any Person challenging or questioning the
use of any such Intellectual Property or the validity or effectiveness of any
such Intellectual Property, nor to the knowledge of Borrower does the use of
such Intellectual Property by each Loan Party infringe the rights of any
Person, except, in each case, for such claims and infringements that, individually
or in the aggregate, would not reasonably be expected to result in a Material Adverse
Effect.

 

5.19        Security
Documents.

 

(a)           Security
Agreement. The Security Agreement is effective to create in favor of the
Collateral Agent for the benefit of the Secured Parties, legal, valid and
enforceable security interests in all right, title and interest of the Loan
Parties in the Security Agreement Collateral (subject to any limitations
specified therein and the limitations set forth in applicable law) and,
(i) when financing statements and other filings in appropriate form are
filed in the offices specified on Schedule 7 to the Perfection
Certificate and (ii) upon the taking of possession or control by the
Collateral Agent of the Security Agreement Collateral with respect to which a
security interest may be perfected only by possession or control, the Liens
created by the Security Agreement shall (to the extent provided therein)
constitute perfected First Priority Liens on, and security interests in, all
right, title and interest of the grantors in the applicable Security Agreement
Collateral (other than such Security Agreement Collateral in which a security
interest cannot be perfected under the UCC as in effect at the relevant time in
the relevant jurisdiction and Commercial Tort Claims (as defined in the
Security Agreement) other than Commercial Tort Claims specifically described on
Schedule 13 of the Perfection Certificate (if any)), in each case subject
to no Liens other than Liens permitted by Section 7.02.

 

(b)           Copyright
Office Filing. The recordation of the grant of a security interest in
registered U.S. Copyrights (as defined in the Security Agreement) in the form
attached to the Security Agreement with the United States Copyright Office,
together with filings on Form UCC-1 made pursuant to the Security Agreement,
will create, to the extent as may be perfected by such filings and recordation,
a perfected First Priority security interest in such registered U.S. Copyrights
covered by the Security Agreement, subject to no Liens other than Liens
permitted in Section 7.02 (it being understood that subsequent
filings may be necessary to perfect a security interest in registered
copyrights acquired by any Loan Party after the Closing Date).

 

(c)           Mortgages.
Each Mortgage is effective to create and each Mortgage executed and delivered
after the Closing Date pursuant to Section 6.09(c) shall be effective to
create, in favor

 

88

 

of the Collateral Agent, for its benefit and the benefit of the Secured
Parties, legal, valid and enforceable First Priority Liens on, and security
interests in, all of the Loan Parties’ right, title and interest in and to the
Mortgaged Properties thereunder and the proceeds thereof, subject only to Liens
permitted by Section 7.02 or other Liens acceptable to the Collateral
Agent, and when the Mortgages are filed in the offices specified in the local
counsel opinion delivered with respect thereto in accordance with the
provisions of Section 6.09, the Mortgages shall (to the extent
provided therein) constitute perfected First Priority Liens on, and security
interests in, all right, title and interest of the Loan Parties in the
Mortgaged Properties and the proceeds thereof, in each case prior in right to
any other Person, other than Liens permitted by such Mortgage.

 

5.20        Use
of Proceeds. Borrower will use the proceeds of
(a) the Term Loans and up to $5,000,000 of Revolving Loans (together with the
proceeds of the Equity Contribution and the offering and sale of the Senior
Subordinated Notes (or, alternatively, the funding of the senior subordinated
bridge loan facility in lieu thereof)) to effect the Transactions and pay
related fees and expenses, (b) the Revolving Loans and Swing Line Loans on
and after the Closing Date for working capital, Capital Expenditures and
general corporate purposes (including to effect Permitted Business
Acquisitions) and (c) Incremental Term Loans to (i) finance Permitted Business
Acquisitions, (ii) finance Capital Expenditures and/or (iii) repay outstanding
Term Loans and Revolving Loans; provided that no proceeds from any
Incremental Term Loans may be used to repay any Subordinated Indebtedness.

 

5.21        Acquisition
Documents; Representations and Warranties in Acquisition Agreement.
The Administrative Agent has been furnished true and complete copies of each
Acquisition Document to the extent executed and delivered on or prior to the
Closing Date. All representations and warranties set forth in the Acquisition
Agreement (x) made by Holdings and (y) made by the Acquired Business (after
giving effect to any amendments, supplements, waivers or other modifications of
the Acquisition Agreement prior to the Closing Date in accordance with this
Agreement) are in each case true and correct in all material respects as of the
Closing Date (to the knowledge of Borrower and Holdings, in the case of the
representations and warranties described in clause (y)).

 

5.22        Anti-Terrorism
Law.

 

(a)           No
Loan Party and, to the knowledge of the Loan Parties, none of their Affiliates
is in violation of any applicable law relating to terrorism or money laundering
(“Anti-Terrorism Laws”), including Executive Order No. 13224 on
Terrorist Financing, effective September 24, 2001 (the “Executive Order”),
and the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56.

 

(b)           No
Loan Party and, to the knowledge of the Loan Parties, no Affiliate or broker or
other agent of any Loan Party acting or benefiting in any capacity in
connection with the Loans is any of the following:

 

(i)            a
Person that is listed in the annex to, or is otherwise subject to the
provisions of, the Executive Order;

 

89

 

(ii)           a
Person owned or controlled by, or acting for or on behalf of, any Person that
is listed in the annex to, or is otherwise subject to the provisions of, the
Executive Order;

 

(iii)          a
Person with which any Lender is prohibited from dealing or otherwise engaging
in any transaction by any Anti-Terrorism Law;

 

(iv)          a
Person that commits, threatens or conspires to commit or supports “terrorism”
as defined in the Executive Order; or

 

(v)           a
Person that is named as a “specially designated national and blocked Person” on
the most current list published by the U.S. Treasury Department Office of
Foreign Assets Control (“OFAC”) at its official website or any
replacement website or other replacement official publication of such list.

 

(c)           No
Loan Party and, to the knowledge of the Loan Parties, no broker or other agent
of any Loan Party acting in any capacity in connection with the Loans
(i) conducts any business or engages in making or receiving any contribution
of funds, goods or services to or for the benefit of any Person described in
paragraph (b) above, (ii) deals in, or otherwise engages in any
transaction relating to, any property or interests in property blocked pursuant
to the Executive Order, or (iii) engages in or conspires to engage in any
transaction that evades or avoids, or has the purpose of evading or avoiding,
or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism
Law.

 

5.23        FCC Licenses, Etc. Other
than as set forth on Schedule 5.23, Holdings and the Subsidiaries
possess all licenses, certificates, franchises, permits and other
authorizations (“Licenses”) issued by the appropriate federal, state,
local or foreign regulatory authorities, including, without limitation,
Licenses from the FCC, necessary to own their respective properties and to
conduct their respective businesses in all material respects, and neither
Holdings nor any such Subsidiary has received any written notice of proceedings
relating to the revocation or modification of any such License that,
individually or in the aggregate, if the subject of an unfavorable decision,
ruling or finding, would have a Material Adverse Effect; Holdings and each of
its Subsidiaries have fulfilled and performed in all material respects all of
their respective obligations with respect to such Licenses, and no event has
occurred that allows or, after notice or lapse of time would allow, revocation
or termination thereof or results in or, after notice or lapse of time would result
in, any other material impairment of the rights of the holders of any such
License, except as would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect; and none of such Licenses contains
any restriction that is materially burdensome to Holdings or any of its
Subsidiaries, taken as a whole. There are no license renewal or rate or tariff
proceedings existing or pending other than as set forth on Schedule 5.23.

 

ARTICLE VI

 

AFFIRMATIVE COVENANTS

 

So long as any Lender shall have any
Commitment hereunder, any Loan shall remain unpaid or unsatisfied or any other
Obligation hereunder which is accrued and payable shall remain

 

90

 

unpaid or unsatisfied, or any Letter of
Credit shall remain outstanding or not otherwise provided for in full in a
manner provided for herein or as otherwise reasonably satisfactory to the
relevant L/C Issuer, Holdings shall, and shall (except in the case of the
covenants set forth in Section 6.04 and Section 6.05) cause
each Material Subsidiary to:

 

6.01        Existence;
Businesses and Properties.

 

(a)           Do
or cause to be done all things necessary to preserve, renew and keep in full
force and effect its legal existence, except as otherwise expressly permitted
under Section 7.05, and except for the liquidation or dissolution of
Subsidiaries if the assets of such Subsidiaries to the extent they exceed
estimated liabilities are acquired by any of Borrower or a Wholly Owned
Subsidiary of any of Borrower in such liquidation or dissolution; provided
that a Subsidiary Guarantor may not be liquidated into a Non-Guarantor Subsidiary.

 

(b)           Do
or cause to be done all things reasonably necessary to (i) obtain, preserve,
renew, extend and keep in full force and effect the permits, franchises,
authorizations, patents, trademarks, service marks, trade names, copyrights,
licenses and rights with respect thereto necessary to the normal conduct of its
business, it being understood, however, that the expiration on February 17,
2009 of any and all Licenses from the FCC held by Holdings or by any of its Subsidiaries
that authorize or that purport to authorize any Station to broadcast in the
analog mode of transmission is required by Law, and the foregoing covenant
shall not be construed to require any of the Loan Parties to take any action
inconsistent with compliance with such requirement of Law, (ii) comply in all
material respects with all material applicable Laws, rules, regulations (including
any zoning, building, ordinance, code or approval or any building permits or
any restrictions of record or agreements affecting the Mortgaged Properties)
and material judgments, writs, injunctions, decrees and orders of any
Governmental Authority, whether now in effect or hereafter enacted, except to
the extent the failure to so comply would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect, and (iii)
at all times maintain and preserve all property necessary to the normal conduct
of its business and keep such property in good repair, working order and
condition and from time to time make, or cause to be made, all needful and
proper repairs, renewals, additions, improvements and replacements thereto
necessary in order that the business carried on in connection therewith, if
any, may be properly conducted at all times (in each case except as expressly
permitted by this Agreement).

 

6.02        Insurance.

 

(a)           Maintain
insurance by financially sound and reputable insurers to such extent, in such
amounts (after giving effect to any self-insurance; provided that
Holdings and each Material Subsidiary may not obtain self-insurance with
respect to flood insurance required pursuant to Section 6.02(b)) and
against such risks as is customary with companies in the same or similar
businesses operating in the same or similar locations, against such casualties
and contingencies and of such types and in such amounts with such deductibles
as is customary in the case of similar businesses operating in the same or similar
locations.

 

(b)           With
respect to each Mortgaged Property, obtain flood insurance in such total amount
as the Administrative Agent or the Required Lenders may from time to time
reasonably require, if at any time the area in which any improvements are located
on any Mortgaged Property

 

91

 

that is designated a “flood hazard area” in any Flood Insurance Rate
Map published by the Federal Emergency Management Agency and otherwise comply
with the National Flood Insurance Program as set forth in the Flood Disaster Protection
Act of 1973, as amended from time to time.

 

(c)           In
connection with the covenants set forth in this Section 6.02, it is
understood and agreed that:

 

(i)            none
of the Agents, the Lenders, the L/C Issuer and their respective agents or
employees shall be liable for any loss or damage insured by the insurance
policies required to be maintained under this Section 6.02, it being
understood that (A) Borrower and the other Loan Parties shall look solely to
their insurance companies or any other parties other than the aforesaid parties
for the recovery of such loss or damage and (B) such insurance companies shall
have no rights of subrogation against the Agents, the Lenders, any L/C Issuer
or their agents or employees. If, however, the insurance policies do not
provide waiver of subrogation rights against such parties, as required above,
then each of Holdings and Borrower hereby agree, to the extent permitted by
law, to waive, and to cause each of their Subsidiaries to waive, its right of
recovery, if any, against the Agents, the Lenders, any L/C Issuer and their
agents and employees; and

 

(ii)           the
designation of any form, type or amount of insurance coverage by the
Administrative Agent, the Collateral Agent under this Section 6.02 shall
in no event be deemed a representation, warranty or advice by the
Administrative Agent, the Collateral Agent or the Lenders that such insurance
is adequate for the purposes of the business of Holdings and the Subsidiaries
or the protection of their properties.

 

6.03        Taxes.
Pay and discharge promptly when due all material Taxes, assessments and
governmental charges or levies imposed upon it or in respect of its property, before
the same shall become delinquent or in default, as well as all lawful claims
for labor, materials and supplies or otherwise that, if unpaid, might give rise
to a Lien upon such properties or any part thereof; provided, however,
that such payment and discharge shall not be required with respect to any such
Tax, assessment, charge, levy or claim so long as the validity or amount
thereof shall be contested in good faith by appropriate proceedings, and
Holdings or the affected Subsidiary, as applicable, shall have set aside on its
books reserves in accordance with GAAP with respect thereto.

 

6.04        Financial Statements, Reports,
Etc. Furnish
to the Administrative Agent (which will promptly furnish such information to
the Lenders):

 

(a)           within
90 days after the end of each fiscal year commencing with the fiscal year ended
December 31, 2006, a consolidated balance sheet and related consolidated
statements of operations, cash flows and owners’ equity showing the financial
position of Holdings and the Subsidiaries as of the close of such fiscal year
and the consolidated results of their operations during such year, with all
consolidated statements audited by independent public accountants of recognized
national standing reasonably acceptable to the Administrative Agent and accompanied
by an opinion of such accountants (which shall not be qualified in any material
respect) to the effect that such consolidated financial

 

92

 

statements
fairly present, in all material respects, the financial position and results of
operations of Holdings and the Subsidiaries on a consolidated basis in
accordance with GAAP (it being understood that the delivery by Holdings of (i)
financial information for such fiscal year that would be required to be
contained in a filing with the SEC on Form 10-K if Holdings was required to
file such form and (ii) the opinion of accountants referred to above shall
satisfy the requirements of this Section 6.04(a));

 

(b)           within
90 days after the end of the fiscal quarter ending June 30, 2006 and within 45
days after the end of each of the first three fiscal quarters of each fiscal
year commencing with the fiscal quarter ending September 30, 2006, a
consolidated balance sheet and related consolidated statements of operations
and cash flows showing the financial position of Holdings and the Subsidiaries
as of the close of such fiscal quarter and the consolidated results of their
operations during such fiscal quarter and the then-elapsed portion of the
fiscal year, all certified by a Financial Officer of Holdings, on behalf of
Holdings, as fairly presenting, in all material respects, the financial
position and results of operations of Holdings and the Subsidiaries on a
consolidated basis in accordance with GAAP (subject to normal year-end
adjustments and the absence of footnotes) (it being understood that the
delivery by Holdings of (i) financial information for such period that would be
required to be contained in a filing with the SEC on Form 10-Q if Holdings was
required to file such form and (ii) the Officer’s Certificate referred to above
shall satisfy the requirements of this Section 6.04(b));

 

(c)           (x)
concurrently with any delivery of financial statements under (a) or (b) above,
a certificate of a Financial Officer of Holdings (i) certifying that no Event
of Default or Default has occurred or, if such an Event of Default or Default
has occurred, specifying the nature and extent thereof and any corrective
action taken or proposed to be taken with respect thereto and (ii) commencing
with the fiscal period ending December 31, 2006, setting forth computations in
reasonable detail satisfactory to the Administrative Agent demonstrating
compliance with the Financial Performance Covenants (and in the case of a
financial statement delivered under subsection (a), Section 7.10) and
(y) concurrently with any delivery of financial statements under (a) above, a
certificate of the accounting firm opining on or certifying such statements
stating whether they obtained knowledge during the course of their examination
of such statements of any Default or Event of Default under the Financial
Performance Covenants (which certificate may be limited to accounting matters
and disclaim responsibility for legal interpretations);

 

(d)           promptly
after the same become publicly available, copies of all periodic and other
publicly available reports, proxy statements and, to the extent requested by
the Administrative Agent, other materials filed by Holdings or any of the
Subsidiaries with the SEC or distributed to its stockholders or other creditors
generally, as applicable;

 

(e)           if,
as a result of any change in accounting principles and policies from those as
in effect on the Closing Date, the consolidated financial statements of
Holdings and the Subsidiaries delivered pursuant to paragraphs (a) or (b) above
will differ in any material respect from the consolidated financial statements
that would have been delivered pursuant to such clauses had no such change in
accounting principles and policies been made, then, together with the first
delivery of financial statements pursuant to paragraph (a)

 

93

 

and (b) above following such change, a schedule prepared by a Financial
Officer on behalf of Holdings reconciling such changes to what the financial
statements would have been without such changes;

 

(f)            within
30 days after the beginning of each fiscal year, an operating and capital
expenditure budget, in form reasonably satisfactory to the Administrative Agent
prepared by Holdings for such fiscal year prepared in reasonable detail, of Holdings
and the Subsidiaries, accompanied by the statement of a Financial Officer of
Holdings to the effect that, to the best of his knowledge, the budget is a
reasonable estimate for the period covered thereby;

 

(g)           upon
the reasonable request of the Administrative Agent (which request shall not be
made more than once in any 12-month period unless specifically provided
otherwise in any of the Security Documents), deliver updated information
reflecting all changes since the date of the information most recently received
pursuant to this paragraph (g) or Section 6.09(e);

 

(h)           promptly,
a copy of all final reports submitted to the Board of Directors (or any
committee thereof) of any of Holdings or any of the Material Subsidiaries in connection
with any interim or special audit that is material made by independent accountants
of the books of Holdings or any of the Subsidiaries;

 

(i)            promptly,
from time to time, such other information regarding the operations, business
affairs and financial condition of Holdings or any of the Subsidiaries, or
compliance with the terms of any Loan Document, as in each case the
Administrative Agent may reasonably request; and

 

(j)            promptly
upon request by the Administrative Agent, copies of: (i) each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) filed with the
IRS with respect to an Employee Benefit Plan; (ii) the most recent actuarial
valuation report for any Employee Benefit Plan; (iii) all notices received from
a Multiemployer Plan sponsor or any governmental agency concerning an ERISA
Event; and (iv) such other documents or governmental reports or filings
relating to any Employee Benefit Plan or Multiemployer Plan as the
Administrative Agent shall reasonably request.

 

Documents required to be delivered pursuant
to Section 6.04(a) or (b) or (d) may be delivered
electronically and, if so delivered, shall be deemed to have been delivered on
the date (i) on which Borrower posts such documents, or provides a link
thereto, on Borrower’s website on the Internet at its website address provided
to the Administrative Agent; or (ii) on which such documents are posted on Borrower’s
behalf on an Internet or intranet website, if any, to which the Administrative
Agent has access (whether a commercial, third-party website or whether
sponsored by the Administrative Agent); provided that Borrower shall
notify the Administrative Agent (by facsimile or electronic mail) of the
posting of any such documents and provide, if requested, to the Administrative
Agent by electronic mail electronic versions (i.e., soft copies) of such
documents. Notwithstanding anything contained herein, in every instance
Borrower shall be required to provide paper copies of originally executed
Compliance Certificates required by Section 6.04(c) to the
Administrative Agent. Except for such Compliance Certificates, the Administrative

 

94

 

Agent shall have no obligation to request the
delivery or to maintain copies of the documents referred to above, and in any
event shall have no responsibility to monitor compliance by Borrower with any
such request for delivery, and each Lender shall be solely responsible for requesting
delivery to it or maintaining its copies of such documents.

 

Borrower hereby acknowledges that (a) the
Administrative Agent and/or the Arrangers will make available to the Lenders
and the L/C Issuer materials and/or information provided by or on behalf of
Borrower hereunder (collectively, the “Borrower Materials”) by posting
the Borrower Materials on IntraLinks or another similar electronic system (the
“Platform”) and (b) certain of the Lenders may be “public-side”
Lenders (i.e., Lenders that do not wish to receive material non-public
information with respect to any Loan Party or its securities) (each, a “Public
Lender”). Borrower may mark Borrower Materials that Borrower intends to be
made available to Public Lenders clearly and conspicuously as “PUBLIC.” By
designating Borrower Materials as “PUBLIC,” Borrower authorizes such Borrower
Materials to be made available to a portion of the Platform designated “Public
Investor,” which is intended to contain only information that (x) prior to any
public offering of securities by Borrower, is of a type that would be contained
in a customary offering circular for an offering of debt securities made in
reliance on Rule 144A under the Securities Act or (y) following any public
offering of securities by Borrower, is either publicly available or not
material information (though it may be sensitive and proprietary) with respect
to Borrower or its securities for purposes of United States Federal and State
securities laws.

 

6.05        Litigation
and Other Notices. Furnish to the Administrative Agent
written notice of the following promptly after any Responsible Officer of
Borrower obtains actual knowledge thereof:

 

(a)           any
Event of Default or Default, specifying the nature and extent thereof and the
corrective action (if any) proposed to be taken with respect thereto;

 

(b)           the
filing or commencement of, or any written threat or notice of intention of any
Person to file or commence, any action, suit or proceeding, whether at law or
in equity or by or before any Governmental Authority or in arbitration, against
Holdings or any of the Subsidiaries as to which an adverse determination is
reasonably probable and which, if adversely determined, would reasonably be
expected to have a Material Adverse Effect;

 

(c)           any
other development specific to Holdings or any of the Subsidiaries that has had,
or would reasonably be expected to have, a Material Adverse Effect;

 

(d)           the
occurrence of any ERISA Event, that together with all other ERISA Events that
have occurred, would reasonably be expected to have a Material Adverse Effect;
and

 

(e)           any
material change in accounting policies or financial reporting practices by
Holdings or any of its Subsidiaries.

 

6.06        Compliance
with Laws. Comply with all laws, rules, regulations,
orders writs, injunctions and decrees of any Governmental Authority applicable
to it or its property, except

 

95

 

where the failure to do so, individually or
in the aggregate, would not reasonably be expected to result in a Material Adverse
Effect.

 

6.07        Maintaining
Records; Access to Properties and Inspections. Maintain
all financial records in accordance with GAAP and permit any Persons designated
by the Agents or, upon the occurrence and during the continuance of an Event of
Default, any Lender to visit and inspect the financial records and the
properties of Holdings or any of the Subsidiaries at reasonable times, upon
reasonable prior notice to Holdings or Borrower, and as often as reasonably
requested and to make extracts from and copies of such financial records, and
permit any Persons designated by the Agents or, upon the occurrence and during
the continuance of an Event of Default, any Lender upon reasonable prior notice
to Holdings or Borrower to discuss the affairs, finances and condition of
Holdings or any of the Subsidiaries with the officers thereof and (subject to a
senior officer of the respective company or a parent thereof being present)
independent accountants therefor (subject to reasonable requirements of
confidentiality, including requirements imposed by law or by contract).

 

6.08        Use
of Proceeds. Use the proceeds of Loans and request
issuances of Letters of Credit only in compliance with the representation
contained in Section 5.20.

 

6.09        Further
Assurances; Additional Mortgages.

 

(a)           Execute
any and all further documents, financing statements, agreements and
instruments, and take all such further actions (including the filing and
recording of financing statements, fixture filings, Mortgages and other
documents and recordings of Liens in stock registries), that may be required
under any applicable law, or that the Administrative Agent may reasonably
request, for the continued validity, perfection and priority of the Liens on
the Collateral, all at the expense of the Loan Parties and provide to the
Administrative Agent, from time to time upon reasonable request, evidence
reasonably satisfactory to the Administrative Agent as to the perfection and
priority of the Liens created or intended to be created by the Security Documents.

 

(b)           Subject
to the terms of this Section 6.09, with respect to any property
(other than Real Property) that has an individual fair market value (as
determined in good faith by Holdings) of greater than $500,000 and that is
acquired after the Closing Date by any Loan Party (in each case other than
assets constituting Collateral under a Security Document that become subject to
the Lien of such Security Document upon the acquisition thereof), promptly (and
in any event within 30 days after the acquisition thereof)
(i) execute and deliver to the Administrative Agent and the Collateral
Agent such amendments or supplements to the relevant Security Documents or such
other documents as the Administrative Agent or the Collateral Agent shall
reasonably deem necessary or advisable to grant to the Collateral Agent, for
its benefit and for the benefit of the other Secured Parties, a First Priority
Lien on such property subject to no Liens other than Liens permitted by Section
7.02, and (ii) take all actions necessary to cause such Lien to be
duly perfected to the extent required by such Security Documents in accordance
with all applicable law, including the filing of financing statements in such
jurisdictions as may be reasonably requested by the Administrative Agent.

 

96

 

(c)           Promptly
grant to the Collateral Agent, within 90 days of the acquisition thereof, a
security interest in and Mortgage on each Real Property owned in fee by
any Loan Party as is acquired by such Loan Party after the Closing Date and
that, together with any improvements thereon, individually has a fair market
value (as determined in good faith by Holdings) of at least $750,000 as additional
security for the Secured Obligations (unless the subject property is already
mortgaged to a third party to the extent permitted by Section 7.02).
Such Mortgages shall be granted pursuant to documentation substantially in the
form of the Mortgages delivered to the Collateral Agent on the Closing Date or
in such other form as is reasonably satisfactory in form and substance to the
Administrative Agent and the Collateral Agent and shall constitute valid and
enforceable perfected First Priority Liens subject to no other Liens except as
are permitted by Section 7.02 or other Liens reasonably acceptable to
the Collateral Agent. The Mortgages or instruments related thereto shall be
duly recorded or filed in such manner and in such places as are required by law
to establish and perfect the Liens in favor of the Collateral Agent required to
be granted pursuant to the Mortgages and all taxes, fees and other charges
payable in connection therewith shall be paid in full.

 

(d)           With
respect to any Person that is or becomes a Material Subsidiary after the
Closing Date, promptly (i) deliver to the Collateral Agent the certificates, if
any, representing the Equity Interests of such Subsidiary, together with
undated stock powers or other appropriate instruments of transfer executed and
delivered in blank by a duly authorized officer of the holder(s) of such Equity
Interests, provided that (x) only 65% of the outstanding Equity
Interests of any Foreign Subsidiary that is a direct Subsidiary of a Loan Party
shall be required to be delivered pursuant to this clause (i) and (y) the
Equity Interests of any Subsidiary that is a Subsidiary of a Foreign Subsidiary
shall not be required to be delivered pursuant to this clause (i),
(ii) cause such new Subsidiary if such Subsidiary is not a Foreign
Subsidiary, to execute joinder agreements to the Security Agreement, the
Guaranty and the Barrington Guaranty (as defined in the SagamoreHill Facility),
substantially in the forms annexed thereto, and (iii) to take all actions
necessary or advisable in the reasonable opinion of the Administrative Agent or
the Collateral Agent to cause the Liens created by the Security Agreements in
such new Subsidiary Collateral to be duly perfected to the extent required by
such agreement in accordance with all applicable law, including the filing of
financing statements in such jurisdictions as may be reasonably requested by
the Administrative Agent or the Collateral Agent.

 

(e)           In
the case of Holdings, (i) furnish to the Collateral Agent prompt written notice
of any change (A) in any Loan Party’s corporate or organization name, (B) in
any Loan Party’s identity or organizational structure or (C) in any Loan
Party’s organizational identification number; provided that Holdings
shall not effect or permit any such change unless all filings have been made,
or will have been made within any statutory period, under the UCC or otherwise
that are required in order for the Collateral Agent to continue at all times
following such change to have a valid, legal and perfected security interest in
all the Collateral for the benefit of the Secured Parties and (ii) promptly
notify the Administrative Agent if any material portion of the Collateral is
damaged or destroyed.

 

(f)            The
provisions of this Section 6.09 need not be satisfied with respect to
any Equity Interests or assets acquired after the Closing Date in accordance
with this Agreement if, and to the extent that, and for so long as (A) doing so
would violate applicable law or a contractual obligation binding on such Equity
Interests or assets and (B) such law or obligation existed at the

 

97

 

time of the acquisition thereof and was not created or made binding on
such Equity Interests or assets in contemplation of or in connection with the
acquisition of such Subsidiary or assets (except in the case of assets acquired
with Indebtedness permitted pursuant to Section 7.01(i) that is secured
by a Lien permitted pursuant to Section 7.02(i)).

 

6.10        Interest
Rate Protection Agreements. In the case of Holdings,
as promptly as practicable and in any event within 180 days after the Closing
Date, enter into, and for a period of not less than two years after the Closing
Date maintain in effect, one or more Swap Agreements, the effect of which is
that at least 50% of Consolidated Debt will bear interest at a fixed or capped
rate or the interest cost in respect of which will be fixed or capped, in each
case on terms and conditions reasonably acceptable, taking into account current
market conditions, to the Administrative Agent and with parties reasonably
acceptable to the Administrative Agent.

 

6.11        Transfer
of FCC Licenses. As promptly as practicable, and in
any event within 90 days after the Closing Date, transfer all FCC licenses to
the License Subsidiaries; provided that in the event that FCC approval
has not been obtained for such transfer within such90-day period, such 90-day periodshall be extended until such time asFCC approval is obtained; provided, further, that
Borrower shall use commercially reasonable efforts to obtain FCC approval for
the transfer of all FCC Licenses to the License Subsidiaries within such 90-day
period or as promptly as practicable thereafter.

 

6.12        Performance
of Leases. With respect to each Lease, each Loan Party
shall perform all the obligations imposed upon the landlord under such Lease
and enforce all of the tenant’s obligations thereunder, except where the
failure to so perform or enforce, individually or in the aggregate, would not
reasonably be expected to result in a Material Adverse Effect.

 

6.13        Compliance
with Environmental Laws; Environmental Reports.

 

(a)           Comply,
and cause all lessees and other persons occupying Real Property of Holdings and
its Subsidiaries to comply, in all material respects with all Environmental Law
and Environmental Permits applicable to its operations and Real Property,
obtain and renew all material Environmental Permits applicable to its
operations and Real Property, and conduct all Responses required by, and in
accordance with, Environmental Law, except where the failure to do any of the
above, individually or in the aggregate, would not reasonably be expected to
result in a Material Adverse Effect; provided that neither Holdings nor
any of its Subsidiaries shall be required to undertake any Response to the extent
that its obligation to do so is being contested in good faith and by proper
proceedings and appropriate reserves are being maintained with respect to such
circumstances in accordance with GAAP.

 

(b)           If
a Default caused by reason of a breach of Section 5.09(b) or Section 6.13(a)
shall have occurred and be continuing for more than 30 days without
Holdings or its Subsidiaries commencing activities reasonably likely to cure
such Default in accordance with Environmental Law, at the written request of
the Administrative Agent or the Required Lenders through the Administrative
Agent, provide to the Lenders within 45 days after such request, at the
expense of Borrower, an environmental assessment report regarding the matters
which are the subject of such Default, including, where appropriate, soil
and/or groundwater sampling, prepared by an environmental consulting firm and,
in form and substance reasonably acceptable to the Administrative

 

98

 

Agent and indicating the presence or absence of Hazardous Materials and
the estimated cost of any compliance or Response to address them.

 

(c)           Holdings
and its Subsidiaries shall not use, store, handle or install nor permit to be
used, stored, handled or installed at, in, on or under the Mortgaged Property
any Hazardous Materials, other than in compliance with Environmental Law.

 

6.14        Fiscal
Year. In the case of Holdings, cause its fiscal year
to end on December 31 or on such other date as is consented to by the Administrative
Agent (which consent shall not be unreasonably withheld or delayed).

 

ARTICLE VII

 

NEGATIVE COVENANTS

 

Holdings covenants and agrees with each
Lender that, so long as this Agreement shall remain in effect and until the Commitments
have been terminated and any other Obligations hereunder which are accrued and
payable are paid or satisfied and all Letters of Credit have been canceled,
have expired or have been provided for in full in a manner provided for herein
or as otherwise is reasonably satisfactory to the relevant L/C Issuer, unless
the Required Lenders shall otherwise consent in writing, Holdings will not, nor
will it cause or permit any of the Subsidiaries to:

 

7.01        Indebtedness.
Incur, create, assume or permit to exist any Indebtedness (other than
intercompany Indebtedness incurred in the ordinary course of business and
consistent with past practices of Holdings and the Subsidiaries), except:

 

(a)           (i)
Indebtedness (other than under letters of credit) existing on the Closing Date
and set forth on Schedule 7.01(a) and any Permitted Refinancing
Indebtedness incurred to Refinance such Indebtedness and (ii) Indebtedness
under letters of credit existing on the Closing Date and set forth on Schedule
7.01(b), without giving effect to any extension, renewal or replacement
thereof;

 

(b)           Indebtedness
created hereunder and under the other Loan Documents;

 

(c)           Indebtedness
under the Senior Subordinated Notes (or, alternatively, up to $125.0 million
aggregate principal amount of senior subordinated bridge loans borrowed in lieu
thereof) and the related Senior Subordinated Note Guarantees (including any
notes and guarantees issued in exchange therefor in accordance with the
registration rights agreement entered into on the Closing Date in connection
therewith);

 

(d)           Indebtedness
of Holdings and the Subsidiaries pursuant to Swap Agreements permitted by Section
7.13;

 

(e)           Indebtedness
owed to (including obligations in respect of letters of credit or bank
guarantees or similar instruments for the benefit of) any Person providing
workers’ compensation, health, disability or other employee benefits or
property, casualty or liability insurance to Holdings or any Subsidiary,
pursuant to reimbursement or indemnification

 

99

 

obligations to such Person; provided that upon the incurrence of
Indebtedness with respect to reimbursement obligations regarding workers’
compensation claims, such obligations are reimbursed not later than 30 days
following such incurrence;

 

(f)            Indebtedness
of Borrower to any Subsidiary and of any Subsidiary to Borrower or any other
Subsidiary; provided that (i) Indebtedness of any Subsidiary that is not
a Subsidiary Guarantor to the Loan Parties shall be subject to Section 7.04(b)
and (ii) Indebtedness (the “Subordinated Intercompany Debt”) of any
Specified Loan Party to any Non-Guarantor Subsidiary shall be subordinated to
the Obligations in the manner set forth in Exhibit L (it being agreed
that such subordination provisions will not restrict the repayment of any such
Subordinated Intercompany Debt other than when an Event of Default exists);

 

(g)           Indebtedness
in respect of performance bonds, bid bonds, appeal bonds, surety bonds and
completion guarantees and similar obligations, in each case provided in the
ordinary course of business, including those incurred to secure health, safety
and environmental obligations in the ordinary course of business;

 

(h)           Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument drawn against insufficient funds in the ordinary
course of business or other cash management services in the ordinary course of
business; provided that (x) such Indebtedness (other than credit or
purchase cards) is extinguished within three Business Days of its incurrence
and (y) such Indebtedness in respect of credit or purchase cards is
extinguished within 60 days from its incurrence;

 

(i)            (i)
Indebtedness of a Subsidiary acquired after the Closing Date or a corporation
merged into or consolidated with Holdings or any Subsidiary after the Closing
Date and Indebtedness assumed in connection with the acquisition of assets,
which Indebtedness in each case, exists at the time of such acquisition, merger
or consolidation and is not created in contemplation of such event and where
such acquisition, merger or consolidation is permitted by this Agreement and
(ii) any Permitted Refinancing Indebtedness incurred to Refinance such
Indebtedness; provided that the aggregate principal amount of such
Indebtedness at the time of, and after giving effect to, such acquisition,
merger or consolidation, such assumption or such incurrence, as applicable (together
with Indebtedness outstanding pursuant to this paragraph (i) and paragraph (j)
of this Section 7.01 and the Remaining Present Value of leases permitted
under Section 7.03), would not exceed $10.0 million;

 

(j)            Capital
Lease Obligations, mortgage financings and purchase money Indebtedness incurred
by Holdings or any Subsidiary prior to or within 270 days after the
acquisition, lease or improvement of the respective asset permitted under this
Agreement in order to finance such acquisition or improvement, and any
Permitted Refinancing Indebtedness in respect thereof, in an aggregate
principal amount that at the time of, and after giving effect to, the
incurrence thereof (together with Indebtedness outstanding pursuant to
paragraph (i) of this Section 7.01 and this paragraph (j) and the
Remaining Present Value of leases permitted under Section 7.03) would
not exceed $10.0 million;

 

100

 

(k)           Indebtedness
arising from agreements of Holdings or any Subsidiary providing for
indemnification, adjustment of purchase price or similar obligations, in each
case, incurred or assumed in connection with the Transactions or other
acquisitions or dispositions permitted under this Agreement, other than
guarantees of Indebtedness incurred by any Person acquiring all or any portion
of such business, assets or a Subsidiary for the purpose of financing such
acquisition;

 

(l)            Indebtedness
supported by a Letter of Credit, in a principal amount not in excess of the
stated amount of such Letter of Credit;

 

(m)          Indebtedness
consisting of (x) the financing of insurance premiums or (y) take or pay
or similar obligations contained in supply arrangements, in each case in the
ordinary course of business;

 

(n)           Capital
Lease Obligations incurred by Holdings or any Subsidiary in respect of any Sale
and Lease-Back Transaction that is permitted under Section 7.03;

 

(o)           Indebtedness
consisting of obligations of Borrower or any Subsidiary Guarantor under
deferred compensation or other similar arrangements incurred by such Person in
connection with Permitted Business Acquisitions;

 

(p)           cash
management obligations and Indebtedness incurred by Borrower or any Subsidiary
Guarantor in respect of netting services, overdraft protections and similar
arrangements in each case in connection with cash management and deposit accounts;

 

(q)           Indebtedness
consisting of promissory notes issued by Borrower or Subsidiary Guarantor to
future, present or former directors, officers, members of management, employees
or consultants of Holdings or any of the Subsidiaries or their respective
estates, heirs, family members, spouses or former spouses to finance the
purchase or redemption of Equity Interests of Holdings permitted by Section
7.06;

 

(r)            Indebtedness
incurred by Borrower or any Subsidiary Guarantor representing deferred
compensation to employees of Borrower or any Subsidiary Guarantor incurred in
the ordinary course of business;

 

(s)           guarantees
(i) by Borrower or any Guarantor of any other Indebtedness of Borrower or any
Guarantor expressly permitted to be incurred under this Agreement, (ii) by
Borrower or any Guarantor of Indebtedness otherwise expressly permitted
hereunder of any Non-Guarantor Subsidiary to the extent permitted by Section
7.04(b), (iii) by any Non-Guarantor Subsidiary of Indebtedness of any other
Non-Guarantor Subsidiary subject, however, to Section 7.04(b); provided
that all Non-Guarantor Subsidiaries may guarantee obligations of other
Non-Guarantor Subsidiaries under ordinary course cash management obligations,
and (iv) by Holdings or Borrower of Indebtedness of Subsidiaries incurred for
working capital purposes in the ordinary course of business on ordinary
business terms so long as such Indebtedness is permitted to be incurred under Section
7.01(a) or (u); provided that guarantees by Holdings or any
Subsidiary Guarantor under this Section 7.01(s) of any other
Indebtedness of a Person that is subordinated to other

 

101

 

Indebtedness of such Person shall be expressly subordinated to the
Obligations to at least the same extent as the Indebtedness being guaranteed;

 

(t)            Indebtedness
of Non-Guarantor Subsidiaries for working capital purposes incurred in the
ordinary course of business on ordinary business terms in an aggregate
principal amount not to exceed $500,000;

 

(u)           other
unsecured Indebtedness of Holdings or any Subsidiary in an aggregate principal
amount at any time outstanding pursuant to this paragraph (u) not in excess of
$5.0 million;

 

(v)           all
premium (if any), interest (including post-petition interest), fees, expenses,
charges and additional or contingent interest on obligations described above;
and

 

(w)          guaranties
of the obligations under the New SagamoreHill Facility by Holdings or any
Subsidiary.

 

Notwithstanding
anything to the contrary herein, Holdings shall not be permitted to incur any
Indebtedness other than Indebtedness under Sections 7.01(b), (s)
and (w).

 

7.02        Liens.
Create, incur, assume or permit to exist any Lien on any property or assets
(including stock or other securities of any Person, including any Subsidiary)
at the time owned by it or on any income or revenues or rights in respect of
any thereof, except:

 

(a)           Liens
on property or assets of Holdings and the Subsidiaries existing on the Closing
Date and set forth on Schedule 7.02; provided that such Liens
shall secure only those obligations that they secure on the Closing Date (and
extensions, renewals and refinancings of such obligations permitted by Section
7.01(a)) and shall not subsequently apply to any other property or assets
of Holdings or any of the Subsidiaries;

 

(b)           any
Lien created under the Loan Documents or permitted in respect of any Mortgaged
Property by the terms of the applicable Mortgage;

 

(c)           any
Lien on any property or asset of Holdings or any Subsidiary securing
Indebtedness or Permitted Refinancing Indebtedness permitted by Section
7.01(i); provided that such Lien (i) does not apply to any other
property or assets of Holdings or any of the Subsidiaries not securing such
Indebtedness at the date of the acquisition of such property or asset (other
than after acquired property subjected to a Lien securing Indebtedness and
other obligations incurred prior to such date and which Indebtedness and other
obligations are permitted hereunder that require a pledge of after acquired
property, it being understood that such requirement shall not be permitted to
apply to any property to which such requirement would not have applied but for
such acquisition), (ii) such Lien is not created in contemplation of or in
connection with such acquisition and (iii) in the case of a Lien securing
Permitted Refinancing Indebtedness, any such Lien is permitted, subject to
compliance with clause (e) of the definition of the term “Permitted Refinancing
Indebtedness”;

 

102

 

(d)           Liens
for Taxes, assessments or other governmental charges or levies not yet
delinquent or that are being contested in compliance with Section 6.03;

 

(e)           landlord’s,
carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, construction
or other like Liens arising in the ordinary course of business and securing
obligations that are not overdue by more than 45 days or that are being
contested in good faith by appropriate proceedings and in respect of which, if
applicable, Holdings or any Subsidiary shall have set aside on its books
reserves in accordance with GAAP;

 

(f)            (i)
pledges and deposits made in the ordinary course of business in compliance with
the Federal Employers Liability Act or any other workers’ compensation,
unemployment insurance and other social security laws or regulations and
deposits securing liability to insurance carriers under insurance or self-insurance
arrangements in respect of such obligations and (ii) pledges and deposits
securing liability for reimbursement or indemnification obligations of
(including obligations in respect of letters of credit or bank guarantees for
the benefit of) insurance carriers providing property, casualty or liability insurance
to Holdings or any Subsidiary;

 

(g)           pledges
and deposits to secure the performance of bids, trade contracts (other than for
Indebtedness), leases (other than Capital Lease Obligations), statutory obligations,
surety and appeal bonds, performance and return of money bonds, bids, leases,
government contracts, trade contracts, and other obligations of a like nature
incurred in the ordinary course of business, including those incurred to secure
health, safety and environmental obligations in the ordinary course of
business;

 

(h)           zoning
restrictions, easements, leases (other than Capital Lease Obligations),
licenses, special assessments, rights-of-way, restrictions on use of real
property and other similar encumbrances incurred in the ordinary course of
business that, in the aggregate, do not interfere in any material respect with
the ordinary conduct of the business of Holdings or any Subsidiary;

 

(i)            security
interests upon assets subject to Capital Lease Obligations permitted hereunder
and purchase money security interests in equipment or other property or
improvements thereto hereafter acquired (or, in the case of improvements, constructed)
by Holdings or any Subsidiary (including the interests of vendors and lessors
under conditional sale and title retention agreements); provided that
(i) such security interests secure Indebtedness permitted by Section 7.01(j)
(including any Permitted Refinancing Indebtedness in respect thereof), (ii)
such security interests are incurred, and the Indebtedness secured thereby is
created, within 270 days after such acquisition (or construction), (iii) the
Indebtedness secured thereby does not exceed 100% of the cost of such equipment
or other property or improvements at the time of such acquisition (or construction),
including transaction costs incurred by Holdings or any Subsidiary in
connection with such acquisition (or construction) and (iv) such security
interests do not apply to any other property or assets of Holdings or any
Subsidiary (other than to accessions to such equipment or other property or
improvements); provided, further, that individual financings of
equipment provided by a single lender may be cross-collateralized to other
financings of equipment provided solely by such lender or any of its
Affiliates;

 

103

 

(j)            Liens
securing judgments that do not constitute an Event of Default under Section
8.01(h);

 

(k)           Liens
arising out of capitalized lease transactions permitted under Section 7.03,
so long as such Liens attach only to the property sold and being leased in such
transaction and any accessions thereto or proceeds thereof and related
property;

 

(l)            Liens
disclosed by the title insurance policies (if any) delivered pursuant to Section
6.09 and any replacement, extension or renewal of any such Lien; provided
that such replacement, extension or renewal Lien shall not cover any property
other than the property that was subject to such Lien prior to such replacement,
extension or renewal; provided, further, that the Indebtedness
and other obligations secured by such replacement, extension or renewal Lien
are not prohibited by this Agreement;

 

(m)          any
interest, title, indebtedness or other encumbrances of a lessor on its fee interest
or its landlord’s interest under any leases or subleases entered into by
Holdings or any Subsidiary, as tenant, in the ordinary course of business;

 

(n)           Liens
that are contractual rights of setoff (i) relating to the establishment of
depository relations with banks not given in connection with the issuance of
Indebtedness, (ii) relating to pooled deposit or sweep accounts of Holdings or
any Subsidiary to permit satisfaction of overdraft or similar obligations
incurred in the ordinary course of business of Holdings and the Subsidiaries,
(iii) relating to purchase orders and other agreements entered into with
customers of Holdings or any Subsidiary in the ordinary course of business or
(iv) arising under or pursuant to general banking conditions;

 

(o)           Liens
arising solely by virtue of any statutory or common law provision relating to
banker’s liens, rights of setoff or similar rights;

 

(p)           licenses
of intellectual property granted in the ordinary course of business and in a
manner consistent with past practice;

 

(q)           Liens
in favor of customs and revenue authorities arising as a matter of law to
secure payment of customs duties in connection with the importation of goods;

 

(r)            Liens
on the assets of a Non-Guarantor Subsidiary that do not constitute Collateral
and which secure Indebtedness of such Non-Guarantor Subsidiary (or of another
Non-Guarantor Subsidiary) that is not otherwise secured by a Lien on the Collateral
under the Loan Documents and that is permitted to be incurred under Section
7.01(a);

 

(s)           Liens
upon specific items of inventory or other goods and proceeds of Holdings or any
of the Subsidiaries securing such Person’s obligations in respect of bankers’
acceptances issued or created for the account of such Person to facilitate the
purchase, shipment or storage of such inventory or other goods;

 

(t)            Liens
solely on any cash earnest money deposits made by Holdings or any of the
Subsidiaries in connection with any letter of intent or purchase agreement
permitted hereunder;

 

104

 

(u)           other
Liens with respect to property or assets of Holdings or any Subsidiary with an
aggregate fair market value (valued at the time of creation thereof) of not
more than $3.0 million at any time;

 

(v)           Liens
incurred by Holdings or any Subsidiary to secure the guaranties permitted under
Section 7.01(w); and

 

(w)          the
filing of UCC financing statements solely as a precautionary measure in
connection with operating leases.

 

Notwithstanding the foregoing, no Liens shall
be permitted to exist, directly or indirectly, on Securities Collateral, other
than Liens in favor of the Collateral Agent and Liens permitted by Section 7.02(b),
(e), (f) or (o).

 

7.03        Sale
and Lease-Back Transactions. Enter into any
arrangement, directly or indirectly, with any Person whereby it shall sell or
transfer any property, real or personal, used or useful in its business,
whether now owned or hereafter acquired, and thereafter rent or lease such
property or other property that it intends to use for substantially the same
purpose or purposes as the property being sold or transferred (a “Sale and
Lease-Back Transaction”), provided that a Sale and Lease-Back
Transaction shall be permitted so long as at the time the lease in connection
therewith is entered into, and after giving effect to the entering into of such
lease, the Remaining Present Value of such lease (together with Indebtedness
outstanding pursuant to paragraphs (i) and (j) of Section 7.01 and the
Remaining Present Value of outstanding leases previously entered into under
this Section 7.03) would not exceed $10.0 million.

 

7.04        Investments,
Loans and Advances. Purchase, hold or acquire
(including pursuant to any merger with a Person that is not a Wholly Owned
Subsidiary immediately prior to such merger) any Equity Interests, evidences of
Indebtedness or other securities of, make or permit to exist any loans or
advances (other than intercompany investments, loans or advances incurred in
the ordinary course of business and consistent with past practices of Holdings
and the Subsidiaries) to or guarantees of the obligations of, or make or permit
to exist any investment in (each, an “Investment”), any other Person, except:

 

(a)           guarantees
by Holdings or any Subsidiary of operating leases (other than Capital Lease
Obligations) or of other obligations that do not constitute Indebtedness, in
each case entered into by Holdings or any Subsidiary in the ordinary course of
business;

 

(b)           (i)
Investments by Holdings or any Subsidiary in the Equity Interests, evidence of
Indebtedness or other securities of Holdings or any Subsidiary; (ii)
intercompany loans from Holdings or any Subsidiary to Holdings or any Subsidiary;
and (iii) guarantees by Holdings or any Subsidiary of Indebtedness
otherwise expressly permitted hereunder of Holdings or any Subsidiary; provided
that the sum of (A) Investments (valued at the time of the making thereof and
without giving effect to any write-downs or write-offs thereof) after the
Closing Date by the Loan Parties pursuant to clause (i) in Subsidiaries that
are Non-Guarantor Subsidiaries, plus (B) intercompany loans after the
Closing Date to Subsidiaries (other than Borrower) that are Non-Guarantor Subsidiaries
pursuant to clause (ii), plus (C) guarantees of Indebtedness after the
Closing Date of

 

105

 

Subsidiaries that are Non-Guarantor Subsidiaries pursuant to clause
(iii) (other than, in each case, to the extent such Investments, Loans or
guarantees are made (1) by any subsidiary of Borrower that is a Non-Guarantor
Subsidiary or (2) by a Non-Guarantor Subsidiary in or to another Non-Guarantor
Subsidiary) shall not exceed an aggregate amount equal to $2.0 million;

 

(c)           Permitted
Investments and investments that were Permitted Investments when made;

 

(d)           Investments
received in connection with the bankruptcy or reorganization of, or settlement
of delinquent accounts and disputes with or judgments against, customers and
suppliers, in each case in the ordinary course of business;

 

(e)           Investments
of a Subsidiary acquired after the Closing Date or of a corporation merged into
Borrower or merged into or consolidated with a Subsidiary in accordance with Section
7.05 after the Closing Date to the extent that such Investments were not made
in contemplation of or in connection with such acquisition, merger or
consolidation and were in existence on the date of such acquisition, merger or
consolidation;

 

(f)            Investments
arising out of the receipt by Holdings or any Subsidiary of noncash consideration
for the sale of assets permitted under Section 7.05;

 

(g)           (i)
loans and advances to directors, officers, members of management, consultants
and employees of Holdings or any Subsidiary in the ordinary course of business
not to exceed $2.0 million in the aggregate at any time outstanding (calculated
without regard to write-downs or write-offs thereof) and (ii) advances of
payroll payments and expenses to employees in the ordinary course of business;

 

(h)           accounts
receivable arising and trade credit granted in the ordinary course of business
and any securities received in satisfaction or partial satisfaction thereof
from financially troubled account debtors to the extent reasonably necessary in
order to prevent or limit loss and any prepayments and other credits to
suppliers made in the ordinary course of business;

 

(i)            Swap
Agreements permitted pursuant to Section 7.13;

 

(j)            Investments
existing on the Closing Date and Investments made pursuant to binding
commitments in effect on the Closing Date, in each case to the extent set forth
on Schedule 7.04 together with any modification, replacement, renewal,
reinvestment or extension thereof;

 

(k)           Investments
resulting from pledges and deposits referred to in Sections 7.02(g) and (h);

 

(l)            Investments
(which shall be deemed for this purpose to include mergers or consolidations)
constituting a Permitted Business Acquisition not to exceed, in the aggregate,
after the Closing Date, $50.0 million; provided that (i) the foregoing
limitation shall not apply to such Permitted Business Acquisitions made with
the proceeds of a substantially

 

106

 

concurrent issuance of Equity Interests (excluding proceeds received as
a result of the exercise of Cure Rights pursuant to Section 8.02) of
Holdings, which proceeds are in turn contributed (as common equity) to Borrower
and (ii) any Person acquired in a Permitted Business Acquisitions in excess of
$50.0 million in the aggregate since the Closing Date shall have positive
EBITDA (calculated in the same manner as applicable to Holdings and its
Subsidiaries pursuant to the definition thereof) for the most recent four
fiscal quarters for which financial statements are available;

 

(m)          additional
Investments from time to time (including Permitted Business Acquisitions,
subject to the limitations applicable thereto set forth in the proviso of
clause (l) above) to the extent made with proceeds of Equity Interests (excluding
proceeds received as a result of the exercise of Cure Rights pursuant to Section
8.02) of Holdings, which proceeds or Investments in turn are contributed
(as common equity) to Borrower;

 

(n)           the Transactions;

 

(o)           intercompany
loans between Non-Guarantor Subsidiaries and guarantees permitted by Sections
7.01(s)(i), (iii) and (iv);

 

(p)           other
Investments by Holdings or any Subsidiary in an aggregate amount (valued at the
time of the making thereof, and without giving effect to any write-downs or
write-offs thereof) not to exceed $8.0 million;

 

(q)           guaranties
by Holdings or any Subsidiary permitted under Section 7.01(w); and

 

(r)            any
Investment required under the SagamoreHill Time Brokerage Agreement; provided,
that the aggregate amount of all such Investments made since the Closing Date
shall not exceed $5.0 million.

 

7.05        Mergers,
Consolidations, Sales of Assets and Acquisitions. Merge
into or consolidate with any other Person, or permit any other Person to merge
into or consolidate with it, or sell, transfer, lease or otherwise dispose of
(in one transaction or in a series of transactions) all or any part of its
assets (whether now owned or hereafter acquired), or issue, sell, transfer or
otherwise dispose of any Equity Interests of Borrower or any Subsidiary or
preferred Equity Interests of Holdings, or purchase, lease or otherwise acquire
(in one transaction or a series of transactions) all or any substantial part of
the assets of any other Person, except that this Section shall not prohibit:

 

(a)           (i)
the purchase and sale of inventory in the ordinary course of business by Holdings
or any Subsidiary, (ii) the acquisition of any other asset in the ordinary
course of business by Holdings or any Subsidiary, (iii) the sale, transfer,
lease or other disposition of surplus, obsolete or worn out equipment or other
property in the ordinary course of business by Holdings or any Subsidiary, (iv)
leases and subleases (including, but not limited to, tower site ground leases
and tower space leases) in the ordinary course of business by Borrower or any
Subsidiary or (v) the sale of Permitted Investments in the ordinary course of
business;

 

107

 

(b)           if
at the time thereof and immediately after giving effect thereto no Event of
Default shall have occurred and be continuing, (i) the merger of any Subsidiary
of Borrower into Borrower in a transaction in which Borrower is the surviving
corporation, (ii) the merger or consolidation of any Subsidiary into or with
any Subsidiary Guarantor in a transaction in which the surviving or resulting
entity is a Subsidiary Guarantor and, in the case of each of clauses (i) and
(ii), no Person other than Borrower or Subsidiary Guarantor receives any
consideration, (iii) the merger or consolidation of any Subsidiary that is not
a Subsidiary Guarantor into or with any other Subsidiary that is not a
Subsidiary Guarantor or (iv) the windup, liquidation or dissolution or change
in form of entity of any Subsidiary if Holdings determines in good faith that
such windup, liquidation or dissolution is in the best interests of Holdings
and is not materially disadvantageous to the Lenders;

 

(c)           sales,
transfers, leases, issuances or other dispositions to Holdings or a Subsidiary
(upon voluntary liquidation or otherwise); provided that any sales,
transfers, leases, issuances or other dispositions by a Loan Party to a
Non-Guarantor Subsidiary shall be made in compliance with Section 7.07; provided,
further, that the aggregate gross proceeds of all sales, transfers,
leases, issuances or other dispositions by Loan Parties to Non-Guarantor
Subsidiaries in reliance upon this paragraph (c) shall not exceed $500,000;

 

(d)           Investments
permitted by Section 7.04, Liens permitted by Section 7.02 and
dividends and distributions permitted by Section 7.06;

 

(e)           the
sale of defaulted receivables in the ordinary course of business and not as
part of an accounts receivables financing transaction;

 

(f)            any
merger or consolidation in connection with a Permitted Business Acquisition
that would satisfy the provisions of Section 7.04 if made as an Investment;
provided that following any such merger or consolidation (i) involving
Borrower, Borrower is the surviving corporation and (ii) involving a Subsidiary
Guarantor, the surviving or resulting entity shall be a Subsidiary Guarantor;

 

(g)           the
Transactions;

 

(h)           (A) licensing
and cross-licensing arrangements involving any technology or other intellectual
property of Holdings or any Subsidiary in the ordinary course of business and
(B) the abandonment or other disposition of any intellectual property that is
no longer economically practicable to maintain or useful in the conduct of the
business of Holdings or any of the Subsidiaries;

 

(i)            sales,
leases or other dispositions of inventory of Holdings and the Subsidiaries
determined in good faith by the management of Holdings or Borrower to be no
longer useful or necessary in the operation of the business of Holdings or any
of the Subsidiaries; provided that the Net Proceeds thereof are applied
in accordance with Section 2.05(c);

 

(j)            Sale
and Lease-Back Transactions permitted by Section 7.03;

 

108

 

(k)           voluntary
terminations of Swap Contracts; and

 

(l)            conveyances,
sales, transfers, leases, subleases, assignments, issuances (to the extent of
all of the Equity Interests in a Person then owned by Holdings and the Subsidiaries)
or other dispositions not otherwise permitted by this Section 7.05; provided
that (i) the Net Proceeds thereof, if any, are applied in accordance with Section
2.05(c) and (ii) the fair market value of the property proposed to be
disposed of in such Asset Disposition, together with the fair market value of
all such property subject to such conveyances, sales, transfers, leases,
subleases, assignments, issuances or other dispositions pursuant to this Section
7.05(l) in the aggregate since the Closing Date, shall not exceed an amount
equal to 30% of EBITDA for the period of eight consecutive fiscal quarters of
Holdings most recently ended as of the date of the proposed Asset Disposition
for which financial statements are available divided by two (without giving
effect to the proposed Asset Disposition); provided, further
that, in the event of a conveyance, sale, transfer, assignment, issuance or
other disposition of a Station pursuant to this Section 7.05(l), (A) no
Default or Event of Default shall have occurred and be continuing and (B)
Holdings and the Subsidiaries shall be in compliance, on a Pro Forma Basis
after giving effect to such conveyance, sale, transfer, assignment or other
disposition, with the Financial Performance Covenants as of the last day of the
most recently ended fiscal quarter for which financial statements are
available.

 

Notwithstanding
anything to the contrary contained in Section 7.05 above, (i) no action
shall be permitted that results in a Change of Control under clause (a) of the
definition thereof, (ii) Holdings shall at all times own directly or
indirectly 100% of the Equity Interests of Borrower free and clear of any Liens
(other than Liens permitted under this Agreement, created by the Security
Documents or arising by operation of Law), (iii) no sale, transfer, lease,
issuance or other disposition shall be permitted by this Section 7.05
(other than sales, transfers, leases, issuances or other dispositions to Loan
Parties pursuant to paragraph (c) hereof) unless such disposition is for fair
market value and (iv) no sale, transfer or other disposition of assets
shall be permitted by paragraph (a) or (i) of this Section 7.05 unless
such disposition is for at least 75% cash consideration or at least 75% of the
consideration therefor constitutes assets used or useful in, or a controlling
interest in a Person operating, a business or business activity permitted by Section
7.08; provided that for purposes of clause (iv), the amount of any
secured Indebtedness or other Indebtedness of a Non-Guarantor Subsidiary (as
shown on Holdings’ or such Subsidiary’s most recent balance sheet or in the
notes thereto), Holdings or any Subsidiary of Holdings that is assumed by the
transferee of any such assets shall be deemed cash.

 

7.06        Dividends
and Distributions. Declare or pay, directly or
indirectly, any dividend or make any other distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, with respect to any of its Equity Interests (other than dividends and
distributions on Equity Interests payable solely by the issuance of additional
shares of Equity Interests of the Person paying such dividends or
distributions) or directly or indirectly redeem, purchase, retire or otherwise
acquire for value (or permit any Subsidiary to purchase or acquire) any shares
of any class of its Equity Interests or set aside any amount for any such
purpose; provided, however, that:

 

109

 

(a)           any
Subsidiary of Borrower may declare and pay dividends to, repurchase its Equity
Interests from or make other distributions to Borrower or to any Wholly Owned
Subsidiary of Borrower (or, in the case of non-Wholly Owned Subsidiaries, to
Borrower or any Subsidiary that is a direct or indirect parent of such
Subsidiary and to each other owner of Equity Interests of such Subsidiary on a pro rata basis (or more favorable basis from
the perspective of Borrower or such Subsidiary) based on their relative
ownership interests);

 

(b)           (x)
Borrower may declare and pay dividends or make other distributions to Holdings
and (y) Holdings may declare dividends or make other distributions to any Parent
Company, in respect of (i) overhead liabilities of Holdings or such Parent Company,
legal, accounting and other professional fees and expenses, (ii) reasonable
fees and expenses related to any offering, financing, investment, disposition
or acquisition permitted hereunder (whether or not successful) in connection
with the business of Holdings or any Subsidiary and (iii) other fees and
expenses in connection with the maintenance of the existence and ownership of
Holdings or such Parent Company;

 

(c)           Holdings
may purchase or redeem (and Borrower may declare and pay dividends or make
other distributions to Holdings, the proceeds of which are used so to purchase
or redeem) Equity Interests of Holdings (including related stock appreciation
rights or similar securities) held by then present or former directors, consultants,
officers or employees of Holdings, Borrower or any of the Subsidiaries or by
any Employee Benefit Plan (other than a Multiemployer Plan) upon such Person’s
death, disability, retirement or termination of employment or under the terms of
any such Employee Benefit Plan (other than a Multiemployer Plan) or any other
agreement under which such shares of stock or related rights were issued; provided
that the aggregate amount of such purchases or redemptions under this paragraph
(c) shall not exceed in any fiscal year $1.0 million plus the amount of net
cash proceeds (x) received by Holdings during such calendar year from sales of
Equity Interests of Holdings to directors, consultants, officers or employees
of Holdings, Borrower or any Subsidiary in connection with permitted employee
compensation and incentive arrangements, which, if not used in any year, may be
carried forward to any subsequent calendar year and (y) of any key-man life insurance
policies recorded during such calendar year;

 

(d)           the
foregoing shall not prohibit noncash repurchases of Equity Interests deemed to
occur upon exercise of stock options if such Equity Interests represent a portion
of the exercise price of such options;

 

(e)           (I) (i)
with respect to each tax year (or portion thereof) that Holdings qualifies as a
Flow Through Entity, the distribution by Holdings to the holders of the Equity
Interests of Holdings of an amount equal to the product of (A) the amount of aggregate
net taxable income allocated by Holdings to the direct holders of the Equity
Interests of Holdings for such period and (B) the Presumed Tax Rate for such
period shall be permitted and (ii) with respect to any tax year (or
portion thereof) that Holdings does not qualify as a Flow Through Entity and is
part of a group filing consolidated or combined federal, state or local income
tax returns of which a direct or indirect parent of Holdings is the common
parent, the payment of dividends or other distributions to any direct or indirect

 

110

 

holders of
Equity Interests of Holdings in amounts required for such holder to pay
consolidated, combined or similar federal, state or local income taxes (as the
case may be) imposed directly on such holder to the extent such income taxes
are attributable to the income of Holdings and the Subsidiaries shall be
permitted; provided, however, that in each case the amount of
such payments in respect of any tax year does not exceed the amount that
Holdings and the Subsidiaries would have been required to pay in respect of
federal, state or local income taxes (as the case may be) in respect of such
year if Holdings and the Subsidiaries paid such taxes directly as a stand-alone
taxpayer (or stand-alone group) less any such taxes payable directly by
Holdings or the Subsidiaries; and (II) Borrower may make distributions to
Holdings to the extent Holdings may make distributions pursuant to Section 7.06(e)(I);

 

(f)            payments
may be made in connection with the consummation of the Transactions or as
contemplated by the Acquisition Documents as in effect on the Closing Date
(whether made on the Closing Date or thereafter), including the distribution of
any cash that remains on the balance sheet of Holdings on the Closing Date
after giving effect to the consummation of the Transactions; provided, however,
that after giving effect to any such payment or distribution, in no event shall
the aggregate contribution from the Equity Investors necessary to consummate
the Acquisition be less than $60.3 million; and

 

(g)           Borrower
may declare and pay dividends or make other distributions to Holdings, and
Holdings may in turn declare and pay dividends or make other distributions in a
like amount; provided that (i) no Default or Event of Default exists at
the time of any such dividend or distribution or would exist immediately after
giving effect thereto and (ii) the aggregate amount of dividends and other
distributions made pursuant to this paragraph (g) after the Closing Date shall
not exceed $5.0 million.

 

7.07        Transactions
with Affiliates.

 

(a)           Sell
or transfer any property or assets to, or purchase or acquire any property or
assets from, or otherwise engage in any other transaction with, any of its
Affiliates or any known direct or indirect holder of 10% or more of any class
of capital stock or Equity Interests of Holdings, unless such transaction is
(i) otherwise not prohibited by this Agreement or (ii) upon terms no less favorable
to Holdings or such Subsidiary, as applicable, than would be obtained in a
comparable arm’s-length transaction with a Person that is not an Affiliate; provided
that this clause (ii) shall not apply to (A) the payment to Sponsor and/or any
other Permitted Investor of monitoring and management fees referred to in
paragraph (c) below or fees payable on the Closing Date or (B) the
indemnification of directors of Holdings, Borrower and the Subsidiaries in
accordance with customary practice.

 

(b)           The
foregoing paragraph (a) shall not prohibit, to the extent not otherwise prohibited
under this Agreement,

 

(i)            any
issuance of securities, or other payments, awards or grants in cash, securities
or otherwise pursuant to, or the funding of, employment arrangements, stock
options and stock ownership plans approved by the Board of Directors of Holdings,

 

111

 

(ii)           loans
or advances to employees of Holdings or any of the Subsidiaries in accordance
with Section 7.04(g),

 

(iii)          transactions
among Holdings and any Subsidiaries and transactions among Subsidiaries
otherwise permitted by this Agreement,

 

(iv)          the
payment of fees and indemnities to directors, officers and employees of
Holdings and the Subsidiaries in the ordinary course of business,

 

(v)           transactions
pursuant to agreements in existence on the Closing Date and set forth on Schedule
7.07 or any amendment thereto to the extent such amendment is not adverse
to the interests of the Lenders in any material respect,

 

(vi)          any
employment agreements entered into by Holdings or any of the Subsidiaries in
the ordinary course of business,

 

(vii)         dividends,
redemptions and repurchases permitted under Section 7.06,

 

(viii)        any
purchase by a Permitted Investor of Equity Interests of Holdings or any
contribution by Holdings to, or purchase by Holdings of, the equity capital of
Borrower; provided that any Equity Interests of Borrower purchased by
Holdings shall be pledged to the Collateral Agent on behalf of the Lenders,

 

(ix)           payments
by Holdings or any of the Subsidiaries to Sponsor made for any financial advisory,
financing, underwriting or placement services or in respect of other investment
banking activities, including in connection with acquisitions or divestitures,
which payments are approved by the majority of the Board of Directors of
Holdings, in good faith,

 

(x)            subject
to paragraph (c) below, the existence of, or the performance by Holdings or any
of the Subsidiaries of its obligations under the terms of, the Transaction
Documents; provided, however, that the existence of, or the
performance by Holdings, Borrower or any of their Subsidiaries of obligations
under any future amendment to any such existing agreement or under any similar
agreement entered into after the Closing Date shall only be permitted by this
clause (x) to the extent that such amendment or new agreement is permitted by Section
7.09(b),

 

(xi)           transactions
with Subsidiaries for the purchase or sale of goods, products, parts and
services entered into in the ordinary course of business in a manner consistent
with past practice,

 

(xii)          any
transaction in respect of which Holdings delivers to the Administrative Agent
(for delivery to the Lenders) a letter addressed to the board of managers of
Holdings from an accounting, appraisal or investment banking firm, in each case
of nationally recognized standing that is (A) in the good faith determination
of Holdings qualified to render such letter and (B) reasonably satisfactory to
the Administrative Agent, which letter states that such transaction is on terms
that are no less favorable to Holdings

 

112

 

or such Subsidiary, as applicable, than would be obtained in a
comparable arm’s-length transaction with a Person that is not an Affiliate,

 

(xiii)         subject
to paragraph (c) below, the payment of all fees, expenses, bonuses and awards
related to the Transactions, including fees to Sponsor,

 

(xiv)        transactions
with joint ventures for the purchase or sale of equipment or services entered
into in the ordinary course of business and in a manner consistent with past
practice; and

 

(xv)         transactions
contemplated by the SagamoreHill Time Brokerage Agreement.

 

7.08        Business
of Holdings and the Subsidiaries. Notwithstanding any
of the provisions hereof, neither Holdings nor Borrower will, nor will cause or
permit any of the Subsidiaries to, engage at any time in any business or
business activity other than:

 

(a)           in
the case of Borrower and any Subsidiary, (i) any business or business activity
conducted by it on the Closing Date and any business or business activities
incidental or related thereto, or any business or activity that is reasonably
similar thereto or a reasonable extension, development or expansion thereof or
ancillary thereto, including the consummation of the Transactions and (ii)
performance of its obligations under and in connection with the Loan Documents;

 

(b)           in
the case of Holdings, (i) ownership of the Equity Interests in Borrower,
together with activities directly related thereto, (ii) performance of its
obligations under and in connection with the Loan Documents, (iii) actions
incidental to the consummation of the Transactions, (iv) the guarantees
permitted pursuant to Section 7.01(w), (v) actions required by law to
maintain its existence, (vi) the holding of cash in amounts reasonably required
to pay for its own costs and expenses, (vii) owing and paying legal, registered
office and auditing fees and (viii) the issuance of common Equity Interests; or

 

(c)           in
the case of each License Subsidiary, engage in holding licenses issued to it by
the FCC and entering into arrangements with Borrower or other Subsidiaries to
manage and operate the Stations authorized by such licenses under its direction
and control, in each case to the maximum extent permitted by applicable law.

 

7.09        Limitation
on Modifications, Prepayments and Certain Interest Payments.

 

(a)           Amend
or modify in any manner materially adverse to the Lenders, or grant any waiver
or release under or terminate in any manner (if such granting or termination
shall be materially adverse to the Lenders), the articles or certificate of
incorporation or by-laws or partnership agreement or limited liability company
operating agreement of Holdings or any of the Subsidiaries.

 

(b)           (i)
Amend or modify any document governing Subordinated Indebtedness in any manner
materially adverse to the Lenders or make any voluntary or optional payment or
prepayment on or redemption or acquisition for value of, or any prepayment or
redemption as a result of

 

113

 

any asset sale, change of control or similar
event of, any Subordinated Indebtedness, except as otherwise permitted by this
Agreement or (ii) amend or modify, or permit the amendment or modification of,
the Management Agreement, other than amendments or modifications that are not
in any matter materially adverse to the Lenders.

 

(c)           Permit
any Subsidiary to enter into any agreement or instrument that by its terms
restricts (i) the payment of any Indebtedness owed to or dividends or
distributions or the making of cash advances by such Subsidiary to Holdings or
any Subsidiary that is a direct or indirect parent of such Subsidiary or (ii)
the granting of Liens by such Subsidiary pursuant to the Security Documents, in
each case other than those arising under any Loan Document, except, in each
case, restrictions existing by reason of:

 

(A)          restrictions imposed by applicable
law;

 

(B)           contractual encumbrances and
restrictions in any agreements related to any permitted renewal, extension or
refinancing of any Indebtedness existing on the Closing Date that does not
expand the scope of any such encumbrance or restriction;

 

(C)           any restriction on a Subsidiary
imposed pursuant to an agreement entered into for the sale or disposition of
all or substantially all the Equity Interests or assets of a Subsidiary pending
the closing of such sale or disposition;

 

(D)          customary provisions in joint venture
agreements and other similar agreements applicable to joint ventures entered
into in the ordinary course of business;

 

(E)           any restrictions imposed by any
agreement relating to secured Indebtedness permitted by this Agreement to the
extent that such restrictions apply only to the property or assets securing
such Indebtedness;

 

(F)           customary provisions contained in
leases or licenses of intellectual property and other similar agreements
entered into in the ordinary course of business;

 

(G)           customary provisions restricting
subletting or assignment of any lease governing a leasehold interest;

 

(H)          customary provisions restricting
assignment of any agreement entered into in the ordinary course of business;

 

(I)            customary restrictions and
conditions contained in any agreement relating to the sale of any asset
permitted under Section 7.05 pending the consummation of such sale; or

 

(J)            any agreement in effect at the time
such subsidiary becomes a Subsidiary, so long as such agreement was not entered
into in contemplation of such Person becoming a Subsidiary.

 

7.10        Capital
Expenditures. Permit Holdings or the Subsidiaries to
make any Capital Expenditure, except that:

 

114

 

(a)           Holdings and its Subsidiaries may make Capital Expenditures (including,
without limitation, cash Investments permitted by Section 7.04(r)) not
exceeding the amounts set forth below for the periods set forth below; provided
that if the aggregate amount of Capital Expenditures made in any period shall
be less than the maximum amount of Capital Expenditures permitted under this Section
7.10 for such period (before giving effect to any carryover), then an
amount of such shortfall not exceeding the maximum amount may be added to the
amount of Capital Expenditures permitted under this Section 7.10 for the
immediately succeeding (but not any other) period:

 

	
  Period

  	
   

  	
  Amount

  	
   

  
	
  Closing Date
  - December 31, 2006

  	
   

  	
  $

  	
  4,000,000

  	
   

  
	
  January 1,
  2007 - December 31, 2007

  	
   

  	
  $

  	
  4,750,000

  	
   

  
	
  January 1,
  2008 - December 31, 2008

  	
   

  	
  $

  	
  5,500,000

  	
   

  
	
  January 1,
  2009 - December 31, 2009

  	
   

  	
  $

  	
  4,750,000

  	
   

  
	
  January 1,
  2010 - December 31, 2010

  	
   

  	
  $

  	
  4,750,000

  	
   

  
	
  January 1,
  2011 - December 31, 2011

  	
   

  	
  $

  	
  4,750,000

  	
   

  
	
  January 1,
  2012 - December 31, 2012

  	
   

  	
  $

  	
  4,750,000

  	
   

  
	
  January 1,
  2013 - Term Loan Maturity Date

  	
   

  	
  $

  	
  4,750,000

  	
   

  

 

; provided, however, that (x) if the aggregate amount
of Capital Expenditures made in any fiscal year shall be less than the maximum
amount of Capital Expenditures permitted under this Section 7.10
for such fiscal year (before giving effect to any carryover), then such
shortfall may be added to the amount of Capital Expenditures permitted under
this Section 7.10 for the immediately succeeding (but not any
other) fiscal year and (y) in determining whether any amount is available
for carryover, the amount expended in any fiscal year shall be deemed to be first,
the amount of any carryover in respect of clause (x) of this proviso, and second,
from the amount allocated to such fiscal year (without giving effect to any
carryover).

 

(b)           In
addition to the Capital Expenditures permitted pursuant to the preceding
paragraph (a), Holdings and the Subsidiaries may make additional Capital
Expenditures as follows: (i) $5.0 million during the period from the Closing
Date through fiscal year 2007 for expenses related to automation, station
builds and/or new newscasts and (ii) $2.0 million in fiscal years 2008 and 2009
for expenses relating to digital upgrades. It is understood that any unused
amounts under clauses (i) and (ii) of this subsection (b) shall not carry over
to any succeeding fiscal year.

 

7.11        Interest
Coverage Ratio. Permit the ratio (the “Interest
Coverage Ratio”) on the last day of any fiscal quarter occurring in any
period set forth below, of (a) EBITDA for the eight quarter period ended as of
such day divided by two to (b) Cash Interest Expense for the four quarter
period ended as of such day, to be less than the ratio set forth below for such
period; provided that to the extent any Asset Disposition or any Asset
Acquisition (or any similar transaction or transactions for which a waiver or a
consent of the Required Lenders pursuant to Section 7.05 has been
obtained), including the Transactions, or any incurrence or repayment of
Indebtedness (excluding normal fluctuations of revolving Indebtedness incurred
for working capital purposes)

 

115

 

has occurred during the relevant Test Period,
the Interest Coverage Ratio shall be determined for the respective Test Period
on a Pro Forma Basis for such occurrences:

 

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
  December 31,
  2006 - September 30, 2010

  	
   

  	
  1.20:1.00

  	
   

  
	
  Thereafter

  	
   

  	
  1.50:1.00

  	
   

  

 

7.12        Total
Leverage Ratio. Permit the Total Leverage Ratio on the
last day of any fiscal quarter occurring in any period set forth below, to be
in excess of the ratio set forth below for such period:

 

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
  December 31,
  2006 - September 30, 2007

  	
   

  	
  9.50:1.00

  	
   

  
	
  December 31,
  2007 - September 30, 2008

  	
   

  	
  8.75:1.00

  	
   

  
	
  December 31,
  2008 - September 30, 2009

  	
   

  	
  7.50:1.00

  	
   

  
	
  December 31,
  2009 - September 30, 2011

  	
   

  	
  7.00:1.00

  	
   

  
	
  Thereafter

  	
   

  	
  6.50:1.00

  	
   

  

 

7.13        Swap
Agreements. Enter into any Swap Agreement, other than
(a) Swap Agreements entered into in the ordinary course of business to hedge or
mitigate risks to which Holdings or any Subsidiary is exposed in the conduct of
its business or the management of its liabilities and (b) Swap Agreements
entered into not for speculative purposes but in order to effectively cap,
collar or exchange interest rates (from fixed to floating rates, from one
floating rate to another floating rate or otherwise) with respect to any
interest bearing liability or investment of Holdings or any Subsidiary.

 

7.14        Non-Material
Subsidiaries. Permit, at any time, (a) the total
assets of all Subsidiaries which are not Material Subsidiaries at the last day
of the Test Period ending on the last day of the most recent fiscal period for
which financial statements have been delivered pursuant to Section 6.04(a) or
(b) to exceed 10% of the value of the consolidated total assets of Holdings and
its consolidated Subsidiaries at such date or (b) gross revenues of all
Subsidiaries which are not Material Subsidiaries for such Test Period to exceed
10% of the consolidated gross revenues of Holdings and its consolidated
Subsidiaries for such period, in each case determined in accordance with GAAP.

 

7.15        Anti-Terrorism
Law; Anti-Money Laundering.

 

(a)           Directly
or indirectly, (i) knowingly conduct any business or engage in making or
receiving any contribution of funds, goods or services to or for the benefit of
any Person described in Section 5.22, (ii) knowingly deal in,
or otherwise knowingly engage in any transaction relating to, any property or
interests in property blocked pursuant to the Executive Order or any other
Anti-Terrorism Law, or (iii) knowingly engage in or conspire to engage in
any transaction that evades or avoids, or has the purpose of evading or
avoiding, or attempts to violate, any of the prohibitions set forth in any
Anti-Terrorism Law (and the Loan Parties shall deliver to the Lenders any
certification or other evidence requested from time to time by any Lender in
its reasonable discretion, confirming the Loan Parties’ compliance with this Section 7.15).

 

116

 

(b)           Knowingly cause or
permit any of the funds of such Loan Party that are used to repay the Loans to
be derived from any unlawful activity with the result that the making of the
Loans would be in violation of any applicable law.

 

7.16        Embargoed Person. Knowingly
cause or permit (a) any of the funds or properties of the Loan Parties
that are used to repay the Loans to constitute property of, or be beneficially
owned directly or indirectly by, any Person subject to sanctions or trade
restrictions under United States law (“Embargoed Person” or “Embargoed
Persons”) that is identified on (1) the “List of Specially Designated
Nationals and Blocked Persons” maintained by OFAC and/or on any other similar
list maintained by OFAC pursuant to any authorizing statute including, but not
limited to, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701
etseq., The Trading with the Enemy
Act, 50 U.S.C. App. 1 etseq.,
and any Executive Order or applicable Law promulgated thereunder, with the
result that the investment in the Loan Parties (whether directly or indirectly)
is prohibited by applicable Law, or the Loans made by the Lenders would be in
violation of applicable Law, or (2) the Executive Order, any related
enabling legislation or any other similar Executive Orders or (b) any
Embargoed Person to have any direct or indirect interest, of any nature
whatsoever in the Loan Parties, with the result that the investment in the Loan
Parties (whether directly or indirectly) is prohibited by applicable Law or the
Loans are in violation of applicable Law.

 

7.17        No Further Negative Pledge.
Enter into any agreement, instrument, deed or lease which prohibits or
limits the ability of Holdings or any Subsidiary to create, incur, assume or
suffer to exist any Lien upon any of their respective properties or revenues,
whether now owned or hereafter acquired, or which requires the grant of any
security for an obligation if security is granted for another obligation,
except the following: (1) this Agreement and the other Loan Documents; (2) covenants
in documents creating Liens permitted by Section 7.02 prohibiting
further Liens on the properties encumbered thereby; (3) any other
agreement that does not restrict in any manner (directly or indirectly) Liens
created pursuant to the Loan Documents on any Collateral securing the
Obligations and does not require the direct or indirect granting of any Lien
securing any Indebtedness or other obligation by virtue of the granting of
Liens on or pledge of property of any Loan Party to secure the Obligations; and
(4) any prohibition or limitation that (a) exists pursuant to
applicable requirements of any Governmental Authority, including any and all
laws, judgments, orders, decrees, ordinances, rules, regulations, statues or
case law, (b) consists of customary restrictions and conditions contained
in any agreement relating to the sale of any property permitted under Section 7.05
pending the consummation of such sale, (c) restricts subletting or assignment
of any lease governing a leasehold interest of Borrower or a Subsidiary, (d) exists
in any agreement in effect at the time such Subsidiary becomes a Subsidiary of
Borrower, so long as such agreement was not entered into in contemplation of
such Person becoming a Subsidiary or (e) is imposed by any amendments or
refinancings that are otherwise permitted by the Loan Documents of the
contracts, instruments or obligations referred to in clause (3) or
(4)(d); provided that such amendments and
refinancings are no more materially restrictive with respect to such
prohibitions and limitations than those prior to such amendment or refinancing.

 

7.18        Finance Subsidiary. Finance
Subsidiary may not hold any material properties, become liable for any material
obligations, engage in any trade or business, or conduct any business activity,
other than (1) the issuance of its Equity Interests to Borrower or any
Wholly 

 

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Owned
Subsidiary of Borrower, (2) the incurrence of Indebtedness as a co-obligor
or guarantor, as the case may be, of the Senior Subordinated Notes (or,
alternatively, the senior subordinated bridge loan facility in lieu thereof),
the Loan Documents and any other Indebtedness that is permitted to be incurred
by Borrower under the Loan Documents; provided that
the net proceeds of such Indebtedness are retained by Borrower or loaned to or
contributed as capital to one or more Subsidiaries other than Finance
Subsidiary and (3) activities incidental thereto. Neither Borrower nor any
Subsidiary shall engage in any transactions with Finance Subsidiary in
violation of the immediately preceding sentence.

 

ARTICLE VIII

 

EVENTS OF DEFAULT AND REMEDIES

 

8.01        Events of Default. In
case of the happening of any of the following events (“Events of Default”):

 

(a)           any representation or
warranty made or deemed made by Holdings, Borrower or any other Loan Party in
any Loan Document, or any representation, warranty or material statement
contained in any report, certificate, financial statement or other instrument
furnished in connection with or pursuant to any Loan Document, shall prove to
have been false or misleading in any material respect when so made, deemed made
or furnished by Holdings, Borrower or any other Loan Party;

 

(b)           (i) default shall
be made in the payment of any principal of any Loan or the reimbursement with
respect to any L/C Advance when and as the same shall become due and payable,
whether at the due date thereof or at a date fixed for prepayment thereof or by
acceleration thereof or otherwise or (ii) default shall be made in the
payment of any interest on any Loan or on any L/C Advance or in the payment of
any Fee (other than an amount referred to in (i)) due under any Loan Document,
when and as the same shall become due and payable, and such default shall
continue unremedied for a period of three Business Days;

 

(c)           default shall be made
in the due observance or performance by Holdings, Borrower or any of the
Subsidiaries of any covenant, condition or agreement contained in Section 6.01(a) (with
respect to Holdings or Borrower), 6.06 (and such default shall continue
unremedied for a period of 10 Business Days), 6.09(d) or in Article VII;

 

(d)           default shall be made
in the due observance or performance by Holdings, Borrower or any of the
Subsidiaries of any covenant, condition or agreement contained in any Loan
Document (other than those specified in paragraphs (b) and (c) above)
and such default shall continue unremedied for a period of 30 days after
written notice thereof from the Administrative Agent to Holdings;

 

(e)           (i) any event or
condition occurs that (A) results in any Material Indebtedness becoming
due prior to its scheduled maturity or (B) enables or permits (with all applicable
grace periods having expired) the holder or holders of any Material
Indebtedness or any trustee or agent on its or their behalf to cause any
Material Indebtedness to become 

 

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due, or to require the prepayment,
repurchase, redemption or defeasance thereof, prior to its scheduled maturity
or (ii) Holdings, Borrower or any of the Subsidiaries shall fail to pay
the principal of any Material Indebtedness at the stated final maturity
thereof; provided that this paragraph (e) shall not apply to
secured Indebtedness that becomes due as a result of the voluntary sale or
transfer of the property or assets securing such Indebtedness if such sale or
transfer is permitted hereunder and under the documents providing for such
Indebtedness;

 

(f)            there shall have
occurred a Change of Control;

 

(g)           (i) an involuntary
proceeding shall be commenced or an involuntary petition shall be filed in a
court of competent jurisdiction seeking (A) relief in respect of Holdings,
Borrower or any of the Material Subsidiaries, or of a substantial part of the
property or assets of Holdings, Borrower or any Material Subsidiary, under
Title 11 of the United States Code, as now constituted or hereafter amended, or
any other federal, state or foreign bankruptcy, insolvency, receivership or
similar law, (B) the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for Holdings, Borrower or any of
the Material Subsidiaries or for a substantial part of the property or assets
of Holdings, Borrower or any of the Material Subsidiaries or (C) the
winding-up or liquidation of Holdings, Borrower or any Material Subsidiary
(except, in the case of any Material Subsidiary, in a transaction permitted by Section 7.05);
and such proceeding or petition shall continue undismissed for 60 days or an
order or decree approving or ordering any of the foregoing shall be entered; or
(ii) Holdings, Borrower or any Material Subsidiary shall (A) voluntarily
commence any proceeding or file any petition seeking relief under Title 11 of
the United States Code, as now constituted or hereafter amended, or any other
federal, state or foreign bankruptcy, insolvency, receivership or similar law, (B) seek,
or consent to, the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or the filing of any petition described in
clause (i) above, (C) apply for or consent to the appointment of a
receiver, trustee, custodian, sequestrator, conservator or similar official for
Holdings, Borrower or any of the Material Subsidiaries or for a substantial
part of the property or assets of Holdings, Borrower or any Material Subsidiary,
(D) file an answer admitting the material allegations of a petition filed
against it in any such proceeding, (E) make a general assignment for the
benefit of creditors or (F) become unable, admit in writing its inability
or fail generally to pay its debts as they become due;

 

(h)           the failure by
Holdings, Borrower or any Subsidiary to pay one or more final judgments (not
covered by insurance) aggregating in excess of $7.5 million, which judgments
are not discharged or effectively waived or stayed for a period of 30
consecutive days, or any action shall be legally taken by a judgment creditor
to levy upon any material assets or properties of Holdings, Borrower or any
Material Subsidiary to enforce any such judgment;

 

(i)            (i) an ERISA
Event occurs with respect to a Pension Plan or Multiemployer Plan which has
resulted or could reasonably be expected to result in a Material Adverse Effect
or the imposition of a Lien or a security interest on any assets of Borrower or
any Subsidiary under Sections 401(a)(29) or 412(n) of the Code or under Section 

 

119

 

4068 of ERISA in an amount in excess of $7.5
million, or (ii) Borrower or any ERISA Affiliate fails to pay when due,
after the expiration of any applicable grace period, any installment payment
with respect to its withdrawal liability under Section 4201 of ERISA under
a Multiemployer Plan in an aggregate amount in excess of $7.5 million; or

 

(j)            (i) any Loan
Document shall for any reason be asserted in writing by Holdings, Borrower or
any Material Subsidiary not to be a legal, valid and binding obligation of any
party thereto, (ii) any security interest purported to be created by any
Security Document and to extend to assets that are not immaterial to Holdings,
Borrower and the Subsidiaries on a consolidated basis shall cease to be, or
shall be asserted in writing by Borrower or any other Loan Party not to be, a
valid and perfected security interest (having the priority required by this
Agreement or the relevant Security Document) in the securities, assets or
properties covered thereby, except to the extent that any such loss of
perfection or priority results from the failure of the Collateral Agent to
maintain possession of certificates actually delivered to it representing
securities pledged under the Security Documents or to file Uniform Commercial
Code continuation statements and except to the extent that such loss is covered
by a lender’s title insurance policy and the Administrative Agent shall be
reasonably satisfied with the credit of such insurer or (iii) the Guaranty
pursuant to the Security Documents by Holdings or the Subsidiary Guarantors of
any of the Obligations shall cease to be in full force and effect (other than
in accordance with the terms thereof), or shall be asserted in writing by
Holdings or Borrower or any Subsidiary Guarantor not to be in effect or not to
be legal, valid and binding obligations for any reason other than satisfaction
in full of all Obligations;

 

then, subject
to Section 8.02, and in every such event (other than an event with
respect to Borrower described in paragraph (g) above), and at any time
thereafter during the continuance of such event, the Administrative Agent, at
the request of the Required Lenders, shall, by notice to Borrower, take any or
all of the following actions, at the same or different times: (i) terminate
forthwith the Commitments, (ii) declare the Loans then outstanding to be
forthwith due and payable in whole or in part, whereupon the principal of the
Loans so declared to be due and payable, together with accrued interest thereon
and any unpaid accrued Fees and all other liabilities of Borrower accrued
hereunder and under any other Loan Document, shall become forthwith due and
payable, without presentment, demand, protest or any other notice of any kind,
all of which are hereby expressly waived by Borrower, anything contained herein
or in any other Loan Document to the contrary notwithstanding, (iii) require
that Borrower Cash Collateralize pursuant to Section 2.03(g) the
L/C Obligations (in an amount equal to the then Outstanding Amount thereof) and
(iv) subject to Section 10.17, exercise, or direct the
Collateral Agent to exercise, any or all rights and remedies under the Loan
Documents; and in any event with respect to Borrower described in paragraph (g) above,
the Commitments shall automatically terminate, the principal of the Loans then
outstanding, together with accrued interest thereon and any unpaid accrued Fees
and all other liabilities of Borrower accrued hereunder and under any other
Loan Document, shall automatically become due and payable and the
Administrative Agent shall be deemed to have made a demand for cash collateral
to the full extent permitted under Section 2.03(g), without
presentment, demand, protest or any other notice of any kind, all of which are
hereby expressly waived by Borrower, anything contained herein or in any other
Loan Document to the contrary notwithstanding.

 

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Without
limiting the generality of the foregoing or limiting in any way the rights of
the Lenders and the Agents under the Security Documents or otherwise under
applicable law, and to the extent permitted by the FCC, at any time after the
occurrence, and during the continuance, of an Event of Default and a
declaration pursuant to clause (ii) of the immediately preceding paragraph,
the Administrative Agent, at the direction of the Required Lenders, shall be
entitled to apply for and have a receiver or receiver and manager appointed
under state or federal law by a court of competent jurisdiction in any action
taken by the Agents or the Lenders to enforce their rights and remedies hereunder
and under the Loan Documents in order to manage, protect, preserve, sell and
otherwise dispose of all or any portion of the Collateral and continue the
operation of the business of the Loan Parties, or any of them, and to collect
all revenues and profits thereof and apply the same to the payment of all
expenses and other charges of such receivership, including the compensation of
the receiver, and to the payment of the Obligations until a sale or other
disposition of such Collateral shall be finally made and consummated. EACH LOAN PARTY HEREBY
IRREVOCABLY CONSENTS TO AND WAIVES ANY RIGHT TO OBJECT TO OR OTHERWISE CONTEST
THE APPOINTMENT OF A RECEIVER AFTER THE OCCURRENCE OF AN EVENT OF DEFAULT
(AFTER THE EXPIRATION OF ANY APPLICABLE GRACE PERIOD) AND ACCELERATION OF THE
OBLIGATIONS, AS PROVIDED ABOVE. EACH LOAN PARTY GRANTS SUCH WAIVER AND CONSENT
KNOWINGLY AFTER HAVING DISCUSSED THE IMPLICATIONS THEREOF WITH COUNSEL,
ACKNOWLEDGES THAT THE UNCONTESTED RIGHT TO HAVE A RECEIVER APPOINTED FOR THE
FOREGOING PURPOSES IS CONSIDERED ESSENTIAL BY THE REQUIRED LENDERS IN
CONNECTION WITH THE ENFORCEMENT OF THEIR RIGHTS AND REMEDIES HEREUNDER AND
UNDER THE SECURITY DOCUMENTS AND OTHER LOAN DOCUMENTS, AND THE AVAILABILITY OF
SUCH APPOINTMENT AS A REMEDY UNDER THE FOREGOING CIRCUMSTANCES WAS A MATERIAL
FACTOR IN INDUCING THE LENDERS TO MAKE (AND COMMIT TO MAKE) THE LOANS TO
BORROWER, AND AGREES TO ENTER INTO ANY AND ALL STIPULATIONS IN ANY LEGAL
ACTIONS, OR AGREEMENTS OR OTHER INSTRUMENTS IN CONNECTION WITH THE FOREGOING
AND TO COOPERATE FULLY WITH THE ADMINISTRATIVE AGENT AND THE LENDERS IN
CONNECTION WITH THE ASSUMPTION AND EXERCISE OF CONTROL BY THE RECEIVER OVER ALL
OR ANY PORTION OF THE COLLATERAL AND PROPERTY OF THE LOAN PARTIES. NO RIGHT CONFERRED UPON THE LENDERS OR THE
ADMINISTRATIVE AGENT HEREBY OR BY ANY LOAN DOCUMENT SHALL BE EXCLUSIVE OF ANY
OTHER RIGHT REFERRED TO HEREIN OR THEREIN OR NOW OR HEREAFTER AVAILABLE AT LAW,
IN EQUITY, BY STATUTE OR OTHERWISE.

 

8.02        Holdings’ Right To Cure.

 

(a)           Financial Performance
Covenants. Notwithstanding anything to the contrary contained in Section 8.01,
in the event that Holdings fails to comply with the requirements of any
Financial Performance Covenant, until the expiration of the 15th day subsequent
to the date the certificate calculating such Financial Performance Covenant is
required to be delivered pursuant to Section 6.04(c), Holdings
shall have the right to issue Permitted Cure Securities for cash or otherwise
receive cash contributions to the capital of Holdings, and, in each case, to
contribute any such cash to the capital of Borrower (collectively, the “Cure
Right”), and upon the receipt by 

 

121

 

Borrower of such cash (the “Cure
Amount”) pursuant to the exercise by Holdings of such Cure Right and
request to the Administrative Agent to effect such recalculation, such
Financial Performance Covenant shall be recalculated giving effect to the
following pro forma adjustments:

 

(i)            EBITDA shall
be increased, solely for the purpose of measuring the Financial Performance
Covenants and not for any other purpose under this Agreement, by an amount
equal to the Cure Amount; and

 

(ii)           if, after
giving effect to the foregoing recalculations, Holdings shall then be in
compliance with the requirements of all Financial Performance Covenants, then
Holdings shall be deemed to have satisfied the requirements of the Financial
Performance Covenants as of the relevant date of determination with the same
effect as though there had been no failure to comply therewith at such date,
and the applicable breach or default of the Financial Performance Covenants
that had occurred shall be deemed cured for the purposes of the Agreement.

 

(b)           Limitation on
Exercise of Cure Right. Notwithstanding anything herein to the contrary, (a) in
each four fiscal quarter period there shall be at least one fiscal quarter in
which the Cure Right is not exercised, and (b) the Cure Amount shall be no
greater than the amount required to cause Borrower to be in compliance with the
Financial Performance Covenants.

 

8.03        Application of Funds. After
the exercise of remedies provided for in Section 8.01 (or after the
Loans have automatically become immediately due and payable and the L/C
Obligations have automatically been required to be Cash Collateralized as set
forth in Section 8.01), any amounts received on account of the
Obligations shall be applied by the Administrative Agent in the following
order:

 

(a)           First, to payment of
that portion of the Secured Obligations constituting fees, indemnities,
expenses and other amounts (other than principal and interest but including
documented fees, charges and out-of pocket disbursements of one lead counsel
plus one local counsel in each jurisdiction in which a Loan Party is organized
plus one regulatory counsel with respect to any regulatory matter to the
Administrative Agent payable in accordance with the Loan Documents and amounts
payable under Article III) payable to the Administrative Agent and
the Collateral Agent in their capacities as such;

 

(b)           Second, to payment of
that portion of the Secured Obligations constituting fees, indemnities and
other amounts (other than principal and interest) payable to the Lenders and
the L/C Issuer (including documented fees, charges and out-of pocket
disbursements of one lead counsel plus one local counsel in each jurisdiction
in which a Loan Party is organized plus one regulatory counsel with respect to
any regulatory matter to the respective Lenders and the L/C Issuer payable in
accordance with the Loan Documents and amounts payable under Article III),
ratably among them in proportion to the amounts described in this clause (b) payable
to them;

 

(c)           Third, to payment of
that portion of the Secured Obligations constituting accrued and unpaid interest
on the Loans and L/C Borrowings, ratably among the Lenders 

 

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and the L/C Issuer in proportion to the
respective amounts described in this clause (c) payable to them;

 

(d)           Fourth, (i) to
payment of that portion of the Secured Obligations constituting unpaid
principal of the Loans and L/C Borrowings and (ii) to payment of breakage,
termination or other amounts owing in respect of any Swap Agreement between any
Loan Party and any Secured Party, to the extent such Swap Agreement is
permitted hereunder, ratably among the Secured Parties in proportion to the
respective amounts described in this clause (d) held by them;

 

(e)           Fifth, (i) to Cash
Collateralize that portion of L/C Obligations comprised of the aggregate
undrawn amount of Letters of Credit and (ii) to payment of amounts due
under any Treasury Management Agreement between any Loan Party and any Secured
Party;

 

(f)            Sixth, to the payment
of all other Obligations of the Loan Parties that are due and payable to the
Administrative Agent and the other Secured Parties on such date, ratably based
upon the respective aggregate amounts of all such Obligations owing to the
Administrative Agent and the other Secured Parties on such date; and

 

(g)           Last, the balance, if
any, after all of the Secured Obligations have been indefeasibly paid in full,
to Borrower or as otherwise required by Law.

 

Subject to Section 2.03(g),
amounts used to Cash Collateralize the aggregate undrawn amount of Letters of
Credit pursuant to clause (e) above shall be applied to satisfy drawings
under such Letters of Credit as they occur. If any amount remains on deposit as
Cash Collateral after all Letters of Credit have either been fully drawn or
expired, such remaining amount shall be applied to the other Obligations, if
any, in the order set forth above and, if no Obligations remain outstanding,
delivered to Borrower.

 

ARTICLE IX

 

ADMINISTRATIVE AGENT AND COLLATERAL AGENT

 

9.01        Appointment and Authority.
Each of the Lenders and the L/C Issuer hereby irrevocably appoints Bank of
America to act on its behalf as the Administrative Agent and Collateral Agent
hereunder and under the other Loan Documents and authorizes the Administrative
Agent and Collateral Agent to take such actions on its behalf and to exercise
such powers as are delegated to the Administrative Agent and Collateral Agent
by the terms hereof or thereof, together with such actions and powers as are
reasonably incidental thereto. The provisions of this Article (other than
Borrower’s consent right solely with respect to the appointment of a successor
Agent under Section 9.06) are solely for the benefit of the
Administrative Agent, the Collateral Agent, the Lenders and the L/C Issuer, and
no Loan Party shall have rights as a third party beneficiary of any of such
provisions.

 

9.02        Rights as a Lender. The
Person serving as the Administrative Agent and Collateral Agent hereunder shall
have the same rights and powers in its capacity as a Lender as any other Lender
and may exercise the same as though it were not the Administrative Agent and Collateral

 

123

 

Agent and the
term “Lender” or “Lenders” shall, unless otherwise expressly indicated or
unless the context otherwise requires, include the Person serving as the
Administrative Agent and Collateral Agent hereunder in its individual capacity.
Such Person and its Affiliates may accept deposits from, lend money to, act as
the financial advisor or in any other advisory capacity for and generally engage
in any kind of business with Holdings or any Subsidiary or other Affiliate
thereof as if such Person were not the Administrative Agent and Collateral
Agent hereunder and without any duty to account therefor to the Lenders.

 

9.03        Exculpatory Provisions. No
Agent shall have any duties or obligations except those expressly set forth
herein and in the other Loan Documents. Without limiting the generality of the
foregoing, the Agents:

 

(a)           shall not be subject to
any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing;

 

(b)           shall not have any duty
to take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated hereby or by the other
Loan Documents that such Agent is required to exercise as directed in writing
by the Required Lenders (or such other number or percentage of the Lenders as
shall be expressly provided for herein or in the other Loan Documents),
provided that such Agent shall not be required to take any action that, in its
opinion or the opinion of its counsel, may expose such Agent to liability or
that is contrary to any Loan Document or applicable law; and

 

(c)           shall not, except as
expressly set forth herein and in the other Loan Documents, have any duty to
disclose, and shall not be liable for the failure to disclose, any information
relating to Holdings, Borrower or any of their Affiliates that is communicated
to or obtained by the Person serving as an Agent or any of its Affiliates in
any capacity.

 

No Agent shall
be liable for any action taken or not taken by it (i) with the consent or
at the request of the Required Lenders (or such other number or percentage of
the Lenders as shall be necessary, or as such Agent shall believe in good faith
shall be necessary, under the circumstances as provided in Sections 10.01
and 8.01) or (ii) in the absence of its own gross negligence or
willful misconduct. No Agent shall be deemed to have knowledge of any Default
unless and until notice describing such Default is given to such Agent by
Borrower, a Lender or the L/C Issuer.

 

No Agent shall
be responsible to the Lenders, the L/C Issuer or any of their respective
Related Parties for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with this Agreement
or any other Loan Document, (ii) the contents of any certificate, report
or other document delivered hereunder or thereunder or in connection herewith
or therewith, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any
other agreement, instrument or document or (v) the satisfaction of any
condition set forth in Article IV or elsewhere herein, other than
to confirm receipt of items expressly required to be delivered to such Agent.

 

124

 

9.04        Reliance by Agents. Each
Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument,
document or other writing (including any electronic message, Internet or
intranet website posting or other distribution) believed by it to be genuine
and to have been signed, sent or otherwise authenticated by the proper Person. Each
Agent also may rely upon any statement made to it orally or by telephone and believed
by it to have been made by the proper Person, and shall not incur any liability
for relying thereon. In determining compliance with any condition hereunder to
the making of a Loan, or the issuance of a Letter of Credit, that by its terms
must be fulfilled to the satisfaction of a Lender or the L/C Issuer, each Agent
may presume that such condition is satisfactory to such Lender or the L/C
Issuer unless such Agent shall have received notice to the contrary from such
Lender or the L/C Issuer prior to the making of such Loan or the issuance of
such Letter of Credit. Each Agent may consult with legal counsel (who may be
counsel for Borrower), independent accountants and other experts selected by
it, and shall not be liable to the Lenders, the L/C Issuer or any of their
respective Related Parties for any action taken or not taken by it in
accordance with the advice of any such counsel, accountants or experts.

 

9.05        Delegation of Duties. Each
Agent may perform any and all of its duties and exercise its rights and powers
hereunder or under any other Loan Document by or through any one or more sub-agents
appointed by the Administrative Agent in its reasonable judgment. The Administrative
Agent and any such sub-agent may perform any and all of their duties and
exercise their rights and powers by or through their respective Related
Parties. The exculpatory provisions of this Article shall apply to any
such sub-agent and to the Related Parties of each Agent and any such sub-agent,
and shall apply to their respective activities in connection with the
syndication of the credit facilities provided for herein as well as activities
as the Agents.

 

9.06        Resignation of Agent. Each
Agent may resign at any time upon written notice 30 Business Days prior to such
resignation to the Lenders, the L/C Issuer and Borrower. Upon receipt of any
such notice of resignation, the Required Lenders shall have the right, in
consultation with Borrower, to appoint a successor, which shall be a bank with
an office in the United States, or an Affiliate of any such bank with an office
in the United States; provided that Borrower must consent to the appointment
of any such successor Agent at all times other than during the existence of an
Event of Default (which consent shall not be unreasonably withheld). If no such
successor shall have been so appointed by the Required Lenders and shall have
accepted such appointment within 30 days after the retiring Agent gives
notice of its resignation, then the retiring Agent may on behalf of the Lenders
and the L/C Issuer, appoint a successor Agent meeting the qualifications set
forth above in consultation with Borrower. Upon the execution and filing or
recording of such financing statements, or amendments thereto, and such
amendments or supplements to the Mortgages, and such other instruments or
notices, as may be necessary, or as the Required Lenders may reasonably
request, in order to continue the perfection of the Liens granted or purported
to be granted by the Security Documents, such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
(or retired) Agent, and the retiring Agent shall be discharged from all of its
duties and obligations hereunder or under the other Loan Documents (if not
already discharged therefrom as provided above in this Section 9.06).
The fees payable by Borrower to a successor Agent shall be the same as those
payable to its predecessor unless otherwise agreed between Borrower and such
successor. After the retiring Agent’s resignation hereunder and under the other
Loan Documents, the provisions of this Article and Section 10.04
shall continue in effect for the benefit of such retiring Agent, its 

 

125

 

sub-agents and
their respective Related Parties in respect of any actions taken or omitted to
be taken by any of them while the retiring Administrative Agent was acting as
Agent.

 

9.07        Non-Reliance on Agent and
Other Lenders. Each Lender and the L/C Issuer acknowledges that it has,
independently and without reliance upon any Agent or any other Lender or any of
their Related Parties and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into
this Agreement. Each Lender and the L/C Issuer also acknowledges that it will,
independently and without reliance upon any Agent or any other Lender or any of
their Related Parties and based on such documents and information as it shall
from time to time deem appropriate, continue to make its own decisions in
taking or not taking action under or based upon this Agreement, any other Loan
Document or any related agreement or any document furnished hereunder or
thereunder.

 

9.08        No Other Duties, Etc.

 

 Anything herein to the contrary
notwithstanding, none of the Administrative Agent, Collateral Agent, Swing Line
Lender, L/C Issuer and Arrangers listed on the cover page hereof shall
have any powers, duties or responsibilities under this Agreement or any of the
other Loan Documents, except in its capacity, as applicable, as an Agent, a
Lender, a Swing Line Lender or the L/C Issuer hereunder.

 

9.09        Agent May File Proofs
of Claim. In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition
or other judicial proceeding relative to any Loan Party, any Agent
(irrespective of whether the principal of any Loan or L/C Obligation shall then
be due and payable as herein expressed or by declaration or otherwise and
irrespective of whether such Agent shall have made any demand on any Loan
Party) shall be entitled and empowered, by intervention in such proceeding or
otherwise

 

(a)           to file and prove a
claim for the whole amount of the principal and interest owing and unpaid in respect
of the Loans, L/C Obligations and all other Secured Obligations that are owing
and unpaid and to file such other documents as may be necessary or advisable in
order to have the claims of the Lenders, the L/C Issuer and the Administrative
Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders, the L/C Issuer and the
Administrative Agent and their respective agents and counsel and all other
amounts due the Lenders, the L/C Issuer and the Administrative Agent under
Sections 2.03(i) and (j), 2.09 and 10.04) allowed in such judicial proceeding;
and

 

(b)           to collect and receive
any monies or other property payable or deliverable on any such claims and to
distribute the same;

 

and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Lender and the L/C Issuer to make such payments to the Administrative Agent
and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Lenders and the L/C Issuer, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and
counsel, and any other amounts due the Administrative Agent under Sections
2.09 and 10.04.

 

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Nothing
contained herein shall be deemed to authorize the Administrative Agent to authorize
or consent to or accept or adopt on behalf of any Lender or the L/C Issuer any
plan of reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of any Lender or to authorize the Administrative
Agent to vote in respect of the claim of any Lender in any such proceeding.

 

9.10        Collateral and Guaranty
Matters. The Lenders and the L/C Issuer irrevocably authorize each of the
Administrative Agent and Collateral Agent, at its option and in its discretion,

 

(a)           to release any Lien on
any property granted to or held by the Collateral Agent under any Loan Document
(i) upon termination of the Aggregate Commitments and payment in full of
all Secured Obligations (other than contingent indemnification obligations) and
the expiration or termination of all Letters of Credit (or delivery of a
reasonably acceptable backup letter of credit or cash collateral securing any
reimbursement obligation with respect to such Letters of Credit), (ii) that
is sold or to be sold or otherwise disposed of as part of or in connection with
any sale or disposition permitted hereunder or under any other Loan Document, (iii) subject
to Section 10.01, if approved, authorized or ratified in writing by
the Required Lenders, or (iv) owned by a Guarantor upon release of such
Guarantor from its obligations under its Guaranty pursuant to clause (c) below;

 

(b)           to subordinate any Lien
on any property granted to or held by the Collateral Agent under any Loan
Document to the holder of any Lien on such property that is permitted by Section 7.01(j);
and

 

(c)           to release any
Guarantor from its obligations under any Loan Document to which it is a party
if such Person ceases to be a Subsidiary as a result of a transaction permitted
hereunder; provided that no such release shall occur if such Guarantor
continues to be a guarantor in respect of any other Indebtedness of Borrower
unless and until such Guarantor is (or is being simultaneously) released from
its guaranty with respect to such other Indebtedness.

 

Upon request
by the Administrative Agent or Collateral Agent at any time, the Required
Lenders will confirm in writing the Administrative Agent’s or Collateral Agent’s,
as the case may be, authority to release or subordinate its interest in
particular types or items of property, or to release any Guarantor from its
obligations under any Loan Document to which it is a party pursuant to this Section 9.10.
In each case as specified in this Section 9.10, the Administrative
Agent will, at Borrower’s expense, execute and deliver to the applicable Loan
Party such documents as such Loan Party may reasonably request to evidence the
release of such item of Collateral from the assignment and security interest
granted under the Collateral Documents, or to release such Guarantor from its
obligations under the Loan Documents, in each case in accordance with the terms
of the Loan Documents and this Section 9.10.

 

127

 

ARTICLE X

 

MISCELLANEOUS

 

10.01      Amendments, Etc. No
amendment or waiver of any provision of this Agreement or any other Loan Document,
and no consent to any departure by any Loan Party therefrom, shall be effective
unless in writing signed by the Required Lenders and Borrower or the applicable
Loan Party, as the case may be, and acknowledged by the Administrative Agent,
and each such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given; provided that no
such amendment, waiver or consent shall:

 

(a)           extend or increase the
Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 8.01)
without the written consent of such Lender (it being understood that no
amendment, modification, termination, waiver or consent with respect to any
condition precedent, covenant, Default, Event of Default, mandatory prepayment
or mandatory reduction in the Commitments shall constitute an extension or
increase in the Commitment of any Lender);

 

(b)           postpone any date
scheduled for payment of principal or interest or fees (it being understood
that the waiver of any mandatory prepayment of the Loans shall not constitute a
postponement of any date scheduled for the payment of principal or interest) in
any case, without the written consent of each Lender affected thereby;

 

(c)           reduce the principal
of, or the rate of interest specified herein on, any Loan or L/C Borrowing, or
any fees or other amounts payable hereunder or under any other Loan Document or
change the form or currency of payment without the written consent of each
Lender affected thereby (it being understood that any amendment, modification
or waiver to the financial definitions in this Agreement shall not constitute a
reduction in the rate of interest for purposes of this clause (c)); provided,
however, that only the consent of the Required Lenders shall be
necessary to amend Section 2.08(b) or to waive any obligation
of Borrower to pay interest at the rates set forth therein;

 

(d)           change Section 2.12,
Section 2.13, Section 8.03 or the definition of “Pro
Rata Share” in a manner that would alter the pro rata sharing of payments
required thereby without the written consent of each Lender affected thereby;

 

(e)           change any provision of
this Section 10.01 or the definition of “Required Lenders” or any
other provision hereof specifying the number or percentage of Lenders required
to amend, waive or otherwise modify any rights hereunder or make any determination
or grant any consent hereunder, without the written consent of each Lender;

 

(f)            other than in a
transaction not prohibited by Section 7.05, release all or
substantially all of the Collateral in any transaction or series of related
transactions, without the written consent of each Lender;

 

(g)           increase the maximum
duration of Interest Periods hereunder, without the written consent of each
Lender affected thereby; or

 

128

 

(h)           except as otherwise
provided in Section 9.10, release any Guarantor from the Guaranty
without the written consent of each Lender;

 

provided,
further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the L/C Issuer in addition to the Lenders required above,
affect the rights or duties of the L/C Issuer under this Agreement or any
Issuer Document relating to any Letter of Credit issued or to be issued by it; (ii) no
amendment, waiver or consent shall, unless in writing and signed by the Swing
Line Lender in addition to the Lenders required above, affect the rights or
duties of the Swing Line Lender under this Agreement; (iii) no amendment,
waiver or consent shall, unless in writing and signed by any Agent in addition
to the Lenders required above, affect the rights or duties of such Agent under
this Agreement or any other Loan Document; and (iv) Section 10.06(g) may
not be amended, waived or otherwise modified without the consent of each Granting
Lender all or any part of whose Loans are being funded by an SPC at the time of
such amendment, waiver or other modification.

 

Notwithstanding
anything to the contrary herein, no Defaulting Lender shall have any right to
approve or disapprove any amendment, waiver or consent hereunder, except that
the Commitment of such Lender may not be increased or extended without the
consent of such Lender (it being understood that any Commitments or Loans held
or deemed held by any Defaulting Lender shall be excluded from a vote of the
Lenders hereunder requiring any consent of the Lenders).

 

If, in
connection with any proposed change, waiver, discharge or termination of the
provisions of this Agreement as contemplated by this Section 10.01,
the consent of the Required Lenders is obtained but the consent of one or more
of such other Lenders whose consent is required is not obtained, then Borrower
shall have the right to replace all non-consenting Lenders required to obtain
such consent with one or more Eligible Assignees in accordance with Section 10.13,
so long as at the time of such replacement each such new Lender consents to the
proposed change, waiver, discharge or termination.

 

Notwithstanding
anything to the contrary, without the consent of any other Person, the
applicable Loan Party or Parties and the Administrative Agent and/or Collateral
Agent may (in its or their respective sole discretion, or shall, to the extent
required by any Loan Document) enter into any amendment or waiver of any Loan
Document, or enter into any new agreement or instrument, to effect the
granting, perfection, protection, expansion or enhancement of any security
interest in any Collateral or additional property to become Collateral for the
benefit of the Secured Parties, or as required by local law to give effect to,
or protect any security interest for the benefit of the Secured Parties, in any
property or so that the security interests therein comply with applicable law.

 

Notwithstanding the
foregoing, this Agreement may be amended (or amended and restated) with the
written consent of the Required Lenders, the Administrative Agent and Borrower (a) to
increase the aggregate Commitments of the Lenders, (b) to add one or more
additional credit facilities to this Agreement and to permit the extensions of
credit from time to time outstanding thereunder and the accrued interest and
fees in respect thereof to share ratably in the benefits of this Agreement and
the other Loan Documents with the Term Loans and Revolving 

 

129

 

Loans and the accrued
interest and fees in respect thereof and (c) to include appropriately the
Lenders holding such credit facilities in any determination of the Required Lenders.

 

In addition, notwithstanding
the foregoing, this Agreement may be amended with the written consent of the
Administrative Agent, Borrower and the Lenders providing the relevant Replacement
Term Loans (as defined below) to permit the refinancing of all outstanding Term
Loans (“Refinanced Term Loans”) with a replacement term loan tranche
hereunder (“Replacement Term Loans”), but only if (a) the aggregate
principal amount of the Replacement Term Loans does not exceed the aggregate
principal amount of the Refinanced Term Loans, (b) the Applicable Rate for
the Replacement Term Loans is not higher than the Applicable Rate for the
Refinanced Term Loans, (c) the weighted average life to maturity of the Replacement
Term Loans is not shorter than the weighted average life to maturity of such
Refinanced Term Loans at the time of the refinancing and (d) all other
terms applicable to such Replacement Term Loans are substantially similar to,
or less favorable to the Lenders providing such Replacement Term Loans than, those
applicable to such Refinanced Term Loans, except to the extent necessary to
provide for covenants and other terms applicable to any period after the latest
final maturity of the Term Loans in effect immediately prior to such
refinancing.

 

In addition, notwithstanding
the foregoing, in the event that Borrower requests that this Agreement be
modified or amended in a manner that would require the unanimous consent of all
of the Lenders and such modification or amendment is agreed to by the Required
Lenders, then with the consent of Borrower and the Required Lenders, Borrower
and the Required Lenders shall be permitted to amend this Agreement without the
consent of the Lender or Lenders that did not agree to the modification or
amendment requested by Borrower (such Lender or Lenders, collectively, the “Minority
Lenders”) to provide for (i) the termination of the Commitment of each
of the Minority Lenders, (ii) the addition to this Agreement of one or
more other financial institutions (each of which shall be an Eligible
Assignee), or an increase in the Commitment of one or more of the Required
Lenders (with the written consent thereof), so that the total Commitment after
giving effect to such amendment shall be in the same amount as the total
Commitment immediately before giving effect to such amendment, (iii) if
any Loans are outstanding at the time of such amendment, the making of such
additional Loans by such new financial institutions or Required Lender or
Lenders, as the case may be, as may be necessary to repay in full, at par, the
outstanding Loans of the Minority Lenders immediately before giving effect to
such amendment and (iv) such other modifications to this Agreement as may
be appropriate to effect the foregoing clauses (i), (ii) and (iii).

 

10.02      Notices; Effectiveness;
Electronic Communication.

 

(a)           Notices Generally.
Except in the case of notices and other communications expressly permitted to
be given by telephone (and except as provided in subsection (b) below),
all notices and other communications provided for herein shall be in writing
and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by facsimile as follows, and all notices
and other communications expressly permitted hereunder to be given by telephone
shall be made to the applicable telephone number, as follows:

 

(i)            if to
Borrower, the Administrative Agent, the Collateral Agent, the L/C Issuer, the
Swing Line Lender, the Syndication Agent or the Documentation Agent, to the 

 

130

 

address, facsimile number, electronic mail
address or telephone number specified for such Person on Schedule 10.02;
and

 

(ii)           if to any
other Lender, to the address, facsimile number, electronic mail address or telephone
number specified in its Administrative Questionnaire.

 

Notices sent
by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by
facsimile shall be deemed to have been given when sent and receipt has been
confirmed by telephone (except that, if not given during normal business hours
for the recipient, shall be deemed to have been given at the opening of
business on the next business day for the recipient). Notices delivered through
electronic communications to the extent provided in subsection (b) below,
shall be effective as provided in such subsection (b).

 

(b)           Electronic
Communications. Notices and other communications to the Lenders and the L/C
Issuer hereunder may be delivered or furnished by electronic communication
(including e-mail and Internet or intranet websites) pursuant to procedures
approved by the Administrative Agent; provided that the foregoing shall
not apply to notices to any Lender or the L/C Issuer pursuant to Article II
if such Lender or the L/C Issuer, as applicable, has notified the
Administrative Agent that it is incapable of receiving notices under such Article by
electronic communication. The Administrative Agent, the Collateral Agent or
Borrower may, in their discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that
approval of such procedures may be limited to particular notices or communications.

 

Unless the
Administrative Agent and Borrower otherwise agree, notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of
an acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written
acknowledgement); provided that if such notice or other communication is
not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on
the next business day for the recipient.

 

(c)           The Platform. THE
PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT PARTIES (AS
DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF BORROWER
MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR
ERRORS IN OR OMISSIONS FROM BORROWER MATERIALS. NO WARRANTY OF ANY KIND,
EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN
CONNECTION WITH BORROWER MATERIALS OR THE PLATFORM. In no event shall the
Administrative Agent or any of its Related Parties (collectively, the “Agent
Parties”) have any liability to any Loan Party, any Lender or the L/C
Issuer for losses, claims, damages, liabilities or expenses of any kind
(whether in tort, contract or otherwise) arising out of Borrower’s or the
Administrative Agent’s transmission of Borrower Materials through the Internet,
except to the extent that such losses, claims, damages, liabilities or expenses

 

131

 

are determined by a court of
competent jurisdiction by a final and nonappealable judgment to have resulted
from the gross negligence or willful misconduct of such Agent Party; provided,
however, that in no event shall any Agent Party have any liability to
any Loan Party, any Lender or the L/C Issuer for indirect, special, incidental,
consequential or punitive damages (as opposed to direct or actual damages). This
Section 10.02(c) shall not give rise to any claim for indemnification
or reimbursement by any Loan Party.

 

(d)           Change of Address,
Etc. Each of Borrower, the Administrative Agent, the Collateral Agent, the
L/C Issuer and the Swing Line Lender may change its address, facsimile or telephone
number for notices and other communications hereunder by notice to the other
parties hereto. Each other Lender may change its address, facsimile or
telephone number for notices and other communications hereunder by notice to
Borrower, the Administrative Agent, the Collateral Agent, the L/C Issuer and
the Swing Line Lender.

 

(e)           Reliance by
Administrative Agent, the Collateral Agent, L/C Issuer and Lenders. The
Administrative Agent, the Collateral Agent, the L/C Issuer and the Lenders
shall be entitled to rely and act upon any notices (including telephonic
Borrowing or Conversion Notices and Swing Line Loan Notices) purportedly given
by or on behalf of Borrower even if (i) such notices were not made in a
manner specified herein, were incomplete or were not preceded or followed by
any other form of notice specified herein, or (ii) the terms thereof, as
understood by the recipient, varied from any confirmation thereof. Borrower
shall indemnify the Administrative Agent, the Collateral Agent, the L/C Issuer,
each Lender and the Related Parties of each of them from all losses, costs,
expenses and liabilities resulting from the reliance by such Person on each
notice purportedly given by or on behalf of Borrower in the absence of gross
negligence or willful misconduct.

 

10.03      No Waiver; Cumulative
Remedies. No failure by any Lender, the L/C Issuer, the Administrative
Agent or the Collateral Agent to exercise, and no delay by any such Person in
exercising, any right, remedy, power or privilege hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege. The rights,
remedies, powers and privileges herein provided are cumulative and not exclusive
of any rights, remedies, powers and privileges provided by law.

 

10.04      Expenses; Indemnity; Damage
Waiver.

 

(a)           Costs and Expenses.
Borrower shall pay (i) all reasonable and documented out-of-pocket
expenses incurred by each Agent and its Affiliates (including the reasonable
documented fees, charges and out-of-pocket disbursements of one lead counsel
plus one local counsel in each jurisdiction in which a Loan Party is organized
plus one regulatory counsel with respect to any regulatory matter for the
Agents), in connection with the syndication of the credit facilities provided
for herein, the preparation, negotiation, execution, delivery and
administration of this Agreement and the other Loan Documents or any
amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated) and (ii) all out-of-pocket and documented expenses incurred
by each Agent in connection with the enforcement or protection of its rights
under this Agreement and the other Loan Documents, including its
rights under this Section 10.04, including all such 

 

132

 

out-of-pocket expenses incurred
during any workout, restructuring or negotiations in respect of such Loans or
Letters of Credit.

 

(b)           Indemnification by
Borrower. Borrower shall indemnify each Agent (and any sub-agent thereof),
each Lender and the L/C Issuer, and each Related Party of any of the foregoing
Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses (including the reasonable fees,
charges and disbursements of counsel) incurred by any Indemnitee or asserted
against any Indemnitee by any third party or by any Loan Party arising out of,
in connection with, or as a result of (i) the execution or delivery of
this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby or thereby, the performance by the parties hereto of their
respective obligations hereunder or thereunder or the consummation of the transactions
contemplated hereby or thereby, (ii) any Loan or Letter of Credit or the
use or proposed use of the proceeds therefrom (including any refusal by the L/C
Issuer to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms
of such Letter of Credit), (iii) any actual or alleged presence or Release
or threatened Release of Hazardous Material on, at, under or from any property
owned, leased or operated by Holdings or any of the Subsidiaries, or any
Environmental Claim related in any way to Holdings or any of the Subsidiaries,
or (iv) any actual or threatened claim, litigation, investigation or
proceeding relating to any of the foregoing, whether based on contract, tort or
any other theory, whether brought by a third party or by any other Loan Party,
and regardless of whether any Indemnitee is a party thereto; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee or its Affiliates or the respective officers, directors,
employees, attorneys, agents, advisors and trustees of such Indemnitee or its
Affiliates or result from a claim brought by Borrower or any other Loan Party
against an Indemnitee for breach of such Indemnitee’s obligations hereunder or
under any other Loan Document, if such Loan Party has obtained a final and nonappealable
judgment in its favor on such claim as determined by a court of competent
jurisdiction and provided further that Article III
(instead of this Section 10.04) shall govern indemnity with respect
to the matters addressed in such Article (including, without limitation,
Taxes).

 

(c)           Reimbursement by
Lenders. To the extent that the Loan Parties for any reason fail to
indefeasibly pay any amount required under subsection (a) or (b) of
this Section 10.04 to be paid by it to each Agent (or any sub-agent
thereof), the L/C Issuer or any Related Party of any of the foregoing, each
Lender severally agrees to pay to the Administrative Agent (or any such sub-agent),
the Collateral Agent, the L/C Issuer or such Related Party, as the case may be,
such Lender’s Pro Rata Share (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided
that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the
Administrative Agent (or any such sub-agent) or the L/C Issuer in its capacity
as such, or against any Related Party of any of the foregoing acting for the
Administrative Agent (or any such sub-agent), the Collateral Agent, or L/C
Issuer in connection with such capacity. The obligations of the Lenders under
this subsection (c) are subject to the provisions of Section 2.12(d).

 

133

 

(d)           Waiver of
Consequential Damages, Etc. Except as provided in Section 10.02(c), no
Indemnitee referred to in subsection (b) above shall be liable for
any damages arising from the use by unintended recipients of any information or
other materials distributed by it through telecommunications, electronic or
other information transmission systems in connection with this Agreement or the
other Loan Documents or the transactions contemplated hereby or thereby, nor
shall any Indemnitee or any Loan Party have any liability for any special,
punitive, indirect or consequential damages relating to this Agreement or any
other Loan Document or arising out of its activities in connection herewith or
therewith (whether before or after the Closing Date) except to the extent any
Indemnitee is required to pay any such damages to a third party.

 

(e)           Payments. All
amounts due under this Section 10.04 shall be payable promptly
after receipt of an invoice setting forth such amounts in reasonable detail.

 

(f)            Survival. The
agreements in this Section 10.04 shall survive the resignation of
the Administrative Agent, the Collateral Agent and the L/C Issuer, the
replacement of any Lender, the termination of the Aggregate Commitments and the
repayment, satisfaction or discharge of all the other Obligations.

 

10.05      Payments Set Aside. To
the extent that any payment by or on behalf of Borrower is made to any Agent,
the L/C Issuer or any Lender, or any Agent, the L/C Issuer or any Lender
exercises its right of setoff, and such payment or the proceeds of such setoff
or any part thereof is subsequently invalidated, declared to be fraudulent or
preferential, set aside or required (including pursuant to any settlement
entered into by any Agent, the L/C Issuer or such Lender in its discretion) to
be repaid to a trustee, receiver or any other party, in connection with any
proceeding under any Debtor Relief Law or otherwise, then (a) to the
extent of such recovery, the obligation or part thereof originally intended to
be satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such setoff had not occurred, and (b) each
Lender and the L/C Issuer severally agrees to pay to each Agent upon demand its
applicable share (without duplication) of any amount so recovered from or
repaid by such Agent, plus interest thereon from the date of such demand
to the date such payment is made at a rate per annum equal to the Federal Funds
Rate from time to time in effect. The obligations of the Lenders and the L/C Issuer
under clause (b) of the preceding sentence shall survive the payment in
full of the Obligations and the termination of this Agreement.

 

10.06      Successors and Assigns.

 

(a)           Successors and
Assigns Generally. The provisions of this Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and assigns permitted hereby, except that, other than connection with a merger
permitted under Section 7.05, Borrower may not assign or otherwise
transfer any of its rights or obligations hereunder without the prior written
consent of the Administrative Agent and each Lender and no Lender may assign or
otherwise transfer any of its rights or obligations hereunder except (i) to
an Eligible Assignee in accordance with the provisions of subsection (b) of
this Section 10.06, (ii) by way of participation in accordance
with the provisions of subsection (d) of this Section 10.06,
(iii) by way of pledge or assignment of a security interest subject to the
restrictions of subsection (f) of this Section 10.06, or (iv) to
an SPC in accordance with the provisions of subsection (g) of this Section 10.06
(and any other attempted assignment or transfer by any party hereto shall be 

 

134

 

null and void). Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in subsection (d) of
this Section and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent, the L/C Issuer and the Lenders)
any legal or equitable right, remedy or claim under or by reason of this
Agreement.

 

(b)           Assignments by
Lenders. Any Lender may at any time assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans (including for
purposes of this subsection (b), participations in L/C Obligations and in
Swing Line Loans) at the time owing to it; provided that

 

(i)            except in
the case of an assignment of the entire remaining amount of the assigning
Lender’s Commitment or Loans at the time owing to it or in the case of an
assignment to a Lender or an Affiliate of a Lender or an Approved Fund, the
aggregate amount of the Commitment (which for this purpose includes Revolving
Loans outstanding thereunder) or the principal outstanding balance of the Term
Loans of the assigning Lender subject to each such assignment determined as of
the date the Assignment and Assumption with respect to such assignment, is
delivered to the Administrative Agent or, if “Trade Date” is specified in the
Assignment and Assumption, as of the Trade Date, shall not be less than $1.0
million with respect to Term Loan Commitments and Term Loans or Revolving Loan
Commitments and Revolving Loans unless, in each case, each of the
Administrative Agent and, so long as no Event of Default under Section 8.01(b) or
(g) has occurred and is continuing, Borrower otherwise consent
(each such consent not to be unreasonably withheld or delayed; provided,
however, that concurrent assignments to members of an Assignee Group and
concurrent assignments from members of an Assignee Group to a single Eligible
Assignee (or to an Eligible Assignee and members of its Assignee Group) will be
treated as a single assignment for purposes of determining whether such minimum
amount has been met;

 

(ii)           each partial
assignment shall be made as an assignment of a proportionate part of all the
assigning Lender’s rights and obligations under this Agreement with respect to
the Loans or the Commitment assigned, except that this clause (ii) shall
not apply to rights in respect of Swing Line Loans and shall not prohibit any
Lender from assigning all or a portion of its rights and obligations among
Commitments and Loans of any Class, on a non-pro rata basis;

 

(iii)          any
assignment of a Revolving Loan Commitment or a Revolving Loan must be approved
by the Administrative Agent, the L/C Issuer and the Swing Line Lender unless
the Person that is the proposed assignee is itself a Revolving Loan Lender
(whether or not the proposed assignee would otherwise qualify as an Eligible Assignee);

 

(iv)          the parties
to each assignment shall execute and deliver to the Administrative Agent an
Assignment and Assumption, together with a processing and recordation fee in
the amount, if any, required as set forth in Schedule 10.06, and
the Eligible Assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire; and

 

135

 

(v)           the
assigning Lender shall deliver any Notes evidencing such Loans to Borrower or
the Administrative Agent (and the Administrative Agent shall deliver such Notes
to Borrower).

 

Subject to acceptance and
recording thereof by the Administrative Agent pursuant to subsection (c) of
this Section, from and after the effective date specified in each Assignment
and Assumption, the Eligible Assignee thereunder shall be a party to this
Agreement and, to the extent of the interest assigned by such Assignment and
Assumption, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Assumption, be released from its obligations
under this Agreement (and, in the case of an Assignment and Assumption covering
all of the assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a party hereto) but shall continue to be entitled to
the benefits of Sections 3.01, 3.04, 3.05, and 10.04
with respect to facts and circumstances occurring prior to the effective date
of such assignment. Upon request, and surrender by the assigning Lender of its
Note, Borrower (at its expense) shall execute and deliver the applicable Note
to the assignee Lender. Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this subsection shall
be treated for purposes of this Agreement as a sale by such Lender of a participation
in such rights and obligations in accordance with subsection (d) of
this Section 10.06.

 

(c)           Register. The
Administrative Agent, acting solely for this purpose as an agent of Borrower,
shall maintain at the Administrative Agent’s Office a copy of each Assignment
and Assumption delivered to it and a register for the recordation of the names
and addresses of the Lenders, and the Commitments of, and principal amounts of
the Loans and L/C Obligations owing to, each Lender pursuant to the terms
hereof from time to time (the “Register”). The entries in the Register
shall be conclusive absent demonstrable error, and Borrower, the Administrative
Agent and the Lenders shall treat each Person whose name is recorded in the
Register pursuant to the terms hereof as a Lender hereunder for all purposes of
this Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by Borrower and the L/C Issuer at any reasonable time
and from time to time upon reasonable prior notice. In addition, at any time
that a request for a consent for a material or substantive change to the Loan
Documents is pending, any Lender wishing to consult with other Lenders in
connection therewith may request and receive from the Administrative Agent a
copy of the Register.

 

(d)           Participations. Any
Lender may at any time, without the consent of, or notice to, Borrower or the
Administrative Agent sell participations to any Person (other than a natural Person
or Holdings or Holdings’ Subsidiaries) (each, a “Participant”) in all or
a portion of such Lender’s rights and/or obligations under this Agreement
(including all or a portion of its Commitment and/or the Loans (including such
Lender’s participations in L/C Obligations and/or Swing Line Loans, if
applicable) owing to it; provided that (i) such Lender’s
obligations under this Agreement shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance
of such obligations and (iii) Borrower, the Administrative Agent, the Lenders
and the L/C Issuer shall continue to deal solely and directly with such Lender
in connection with such Lender’s rights and obligations under this Agreement; provided
that such Lender may agree that it will not, without the consent of such
Participant, agree to any amendment, modification or waiver described Section 10.01(b),
(c) and (d) to the extent affecting such Participant.

 

136

 

Any agreement
or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement
and the other Loan Documents and to approve any amendment, modification or
waiver of any provision of this Agreement or the other Loan Documents; provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, waiver or other
modification described in the first proviso to Section 10.01 that
affects such Participant. Subject to subsection (e) of this Section,
Borrower agrees that each Participant shall be entitled to the benefits of Sections
3.01, 3.04 and 3.05 (subject to the requirements and obligations
of those Sections, including the timely delivery of forms pursuant to Section 3.01(e))
to the same extent as if it were the relevant Lender and had acquired its
interest by assignment pursuant to subsection (b) of this Section. To
the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 10.08 as though it were a Lender; provided
such Participant agrees to be subject to Section 2.13 as though it
were a Lender.

 

(e)           Limitations upon
Participant Rights. A Participant shall not be entitled to receive any
greater payment under Section 3.01, 3.04 or 3.05 than
the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with Borrower’s prior written consent (not to be
unreasonably withheld or delayed); provided that, for purposes of this
clause (f), entering into this Agreement or other Loan Document shall not be
construed as providing such consent.

 

(f)            Certain Pledges.
Any Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement (including under its Note(s), if
any) to secure obligations of such Lender, including any pledge or assignment
to secure obligations to a Federal Reserve Bank; provided that no such
pledge or assignment shall release such Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party
hereto.

 

(g)           Special Purpose
Funding Vehicles. Notwithstanding anything to the contrary contained
herein, any Lender (a “Granting Lender”) may grant to a special purpose
funding vehicle identified as such in writing from time to time by the Granting
Lender to the Administrative Agent and Borrower (an “SPC”) the option to
provide all or any part of any Loan that such Granting Lender would otherwise
be obligated to make pursuant to this Agreement; provided that (i) nothing
herein shall constitute a commitment by any SPC to fund any Loan, and (ii) if
an SPC elects not to exercise such option or otherwise fails to make all or any
part of such Loan, the Granting Lender shall be obligated to make such Loan
pursuant to the terms hereof or, if it fails to do so, to make such payment to
the Administrative Agent as is required under Section 2.12(b)(ii). Each
party hereto hereby agrees that (i) neither the grant to any SPC nor the
exercise by any SPC of such option shall increase the costs or expenses or
otherwise increase or change the obligations of Borrower under this Agreement
(including its obligations under Section 3.01 or 3.04), (ii) no
SPC shall be liable for any indemnity or similar payment obligation under this
Agreement for which a Lender would be liable, and (iii) the Granting
Lender shall for all purposes, including the approval of any amendment, waiver
or other modification of any provision of any Loan Document, remain the lender
of record hereunder. The making of a Loan by an SPC hereunder shall utilize the
Commitment of the Granting Lender to the same extent, and as if, such Loan were
made by such Granting Lender. In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, 

 

137

 

prior to the date that is one
year and one day after the payment in full of all outstanding commercial paper
or other senior debt of any SPC, it will not institute against, or join any
other Person in instituting against, such SPC any bankruptcy, reorganization,
arrangement, insolvency, or liquidation proceeding under the laws of the United
States or any State thereof. Notwithstanding anything to the contrary contained
herein, any SPC may (i) with notice to, but without prior consent of
Borrower and the Administrative Agent and with the payment of a processing fee
of $3,500, assign all or any portion of its right to receive payment with respect
to any Loan to the Granting Lender and (ii) disclose on a confidential
basis any non-public information relating to its funding of Loans to any rating
agency, commercial paper dealer or provider of any surety or guarantee or
credit or liquidity enhancement to such SPC.

 

(h)           Resignation as L/C
Issuer or Swing Line Lender after Assignment. Notwithstanding anything to
the contrary contained herein, if at any time Bank of America assigns all of
its Revolving Loan Commitment and Revolving Loans pursuant to subsection (b) above,
Bank of America may (i) upon 30 days’ written notice to Borrower and the
Lenders, resign as L/C Issuer and/or (ii) upon 30 days’ written notice to
Borrower, resign as Swing Line Lender. In the event of any such resignation as
L/C Issuer or Swing Line Lender, Borrower shall be entitled to appoint from
among the Revolving Loan Lenders (with the consent of the applicable Revolving
Loan Lender) a successor L/C Issuer or Swing Line Lender hereunder; provided
that if (i) Borrower shall not have so appointed any such successor within
the 30-day period following Bank of America’s notice of resignation, or (ii) Bank
of America shall have resigned as Administrative Agent in accordance with Section 9.06,
Bank of America may appoint such successor. Any such resignation shall be
effective upon the appointment (with the consent of the applicable Revolving
Loan Lender) of a successor. If Bank of America resigns as L/C Issuer, it shall
retain all the rights and obligations of the L/C Issuer hereunder with respect
to all Letters of Credit outstanding as of the effective date of its
resignation as L/C Issuer and all L/C Obligations with respect thereto
(including the right to require the Revolving Loan Lenders to make Base Rate
Revolving Loans or fund risk participations in Unreimbursed Amounts pursuant to
Section 2.03(c)). If Bank of America resigns as Swing Line Lender,
it shall retain all the rights of the Swing Line Lender provided for hereunder
with respect to Swing Line Loans made by it and outstanding as of the effective
date of such resignation, including the right to require the Revolving Loan
Lenders to make Base Rate Revolving Loans or fund risk participations in
outstanding Swing Line Loans pursuant to Section 2.04(c).

 

10.07      Treatment of Certain Information;
Confidentiality. Each of the Agents, the Lenders and the L/C Issuer agrees
to maintain the confidentiality of the Information (as defined below), except
that Information may be disclosed (a) to its Affiliates and to its and its
Affiliates’ respective partners, directors, officers, employees, agents,
advisors and representatives on a “need to know” basis in connection with the
transactions contemplated hereby (it being understood that the Persons to whom
such disclosure is made will be informed of the confidential nature of such
Information and shall have agreed or otherwise be obligated to maintain its
confidentiality), (b) to the extent requested by any regulatory authority
purporting to have jurisdiction over it (including any self-regulatory authority),
(c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process; provided that the Administrative
Agent or such Lender, unless prohibited by any Law, shall use reasonable
efforts to notify Borrower in advance of any disclosure pursuant to this clause
(c) but only to the extent reasonably practicable under the circumstances
and on the understanding that neither the Administrative Agent nor any 

 

138

 

Lender shall
incur any liability for failure to give such notice, (d) to any other
party hereto, (e) in order to enforce its rights under this Agreement or
any other Loan Document in a legal proceeding, (f) subject to an agreement
for the benefit of Borrower containing provisions substantially the same as
those of this Section 10.07, to (i) any assignee of or
Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement or (ii) any actual or
prospective counterparty (or its advisors) to any Swap Agreement with Holdings
or any Subsidiary, (g) with the consent of Borrower or (h) to the
extent such Information (x) becomes publicly available other than as a result
of a breach of this Section 10.07 or (y) becomes available to any
Agent, any Lender, the L/C Issuer or any of their respective Affiliates on a
nonconfidential basis from a source other than any Loan Party or their
Subsidiaries and Affiliates.

 

For purposes
of this Section 10.07, “Information” means all information
received from Holdings or any Subsidiary relating to Holdings or any Subsidiary
or any of their respective businesses, other than any such information that is
available to the Administrative Agent, any Lender or the L/C Issuer on a
nonconfidential basis prior to disclosure by Holdings or any Subsidiary.

 

10.08      Right of Setoff. If an
Event of Default shall have occurred and be continuing, each Lender, the L/C
Issuer and each of their respective Affiliates is hereby authorized at any time
and from time to time, to the fullest extent permitted by applicable law, to
set off and apply any and all deposits (general or special, time or demand,
provisional or final, in whatever currency) at any time held and other obligations
(in whatever currency) at any time owing by such Lender, the L/C Issuer or any
such Affiliate to or for the credit or the account of Borrower or any other
Loan Party other than deposits held in a custodial, trust or other fiduciary
capacity against any and all of the obligations of Borrower or such Loan Party
now or hereafter existing under this Agreement or any other Loan Document to
such Lender or the L/C Issuer, irrespective of whether or not such Lender or
the L/C Issuer shall have made any demand under this Agreement or any other Loan
Document and although such obligations of Borrower or such Loan Party may be
contingent or unmatured or are owed to a branch or office of such Lender or the
L/C Issuer different from the branch or office holding such deposit or
obligated on such indebtedness. The rights of each Lender, the L/C Issuer and
their respective Affiliates under this Section 10.08 are in addition
to other rights and remedies (including other rights of setoff) that such
Lender, the L/C Issuer or their respective Affiliates may have. Each Lender and
the L/C Issuer agrees to notify Borrower and the Administrative Agent promptly
after any such setoff and application; provided that the failure to give
such notice shall not affect the validity of such setoff and application.

 

10.09      Interest Rate Limitation.
Notwithstanding anything to the contrary contained in any Loan Document, the
interest paid or agreed to be paid under the Loan Documents shall not exceed
the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum
Rate”). If the Administrative Agent or any Lender shall receive interest in
an amount that exceeds the Maximum Rate, the excess interest shall be applied
to the principal of the Loans or, if it exceeds such unpaid principal, refunded
to Borrower. In determining whether the interest contracted for, charged, or
received by the Administrative Agent or a Lender exceeds the Maximum Rate, such
Person may, to the extent permitted by applicable Law, (a) characterize
any payment that is not principal as an expense, fee, or premium rather than
interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or 

 

139

 

unequal parts
the total amount of interest throughout the contemplated term of the Obligations
hereunder.

 

10.10      Counterparts; Integration;
Effectiveness. This Agreement may be executed in counterparts (and by
different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract. This Agreement and the other Loan Documents constitute the
entire contract among the parties relating to the subject matter hereof and
supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. Except as provided in Section 4.01,
this Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received
counterparts hereof that, when taken together, bear the signatures of each of
the other parties hereto. Delivery of an executed counterpart of a signature page of
this Agreement by telecopy shall be effective as delivery of a manually executed
counterpart of this Agreement.

 

10.11      Survival of Representations
and Warranties. All representations and warranties made hereunder and in
any other Loan Document or other document delivered pursuant hereto or thereto
or in connection herewith or therewith shall survive the execution and delivery
hereof and thereof. Such representations and warranties have been or will be
relied upon by the Administrative Agent and each Lender, regardless of any
investigation made by the Administrative Agent or any Lender or on their behalf
and notwithstanding that the Administrative Agent or any Lender may have had
notice or knowledge of any Default at the time of any Credit Extension, and
shall continue in full force and effect as long as any Loan or any other
Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit
shall remain outstanding.

 

10.12      Severability. If any
provision of this Agreement or the other Loan Documents is held to be illegal,
invalid or unenforceable, the legality, validity and enforceability of the
remaining provisions of this Agreement and the other Loan Documents shall not
be affected or impaired thereby. The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

10.13      Replacement of Lenders. If
(i) Borrower becomes obligated to pay additional amounts to any Lender
under Section 3.04, (ii) Borrower is required to pay any
additional amount to or for the account of any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, (iii) a
Lender does not consent to a proposed change, waiver, discharge or termination
with respect to any Loan Document that requires unanimous consent of all
affected Lenders and that has been approved by the Required Lenders as provided
in Section 10.01, (iv) any Lender delivers a notice pursuant
to Section 3.02 with respect to circumstances that do not affect
the other Lenders hereunder, or (v) any Lender is a Defaulting Lender,
then Borrower may, at its sole expense and effort, upon notice to such Lender
and the Administrative Agent (x) terminate the Commitments of such Lender and
repay all obligations of Borrower owing to such Lender relating to the Loans
and participations held by such Lender as of such termination date or (y)
require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in, and consents required by, Section 10.06),
all of its interests, rights and obligations under this Agreement and the
related Loan Documents to an assignee that is acceptable to Borrower and shall
assume such obligations (which assignee may be another Lender, if a Lender
accepts such assignment); provided that:

 

140

 

(a)           Borrower shall have
paid to the Administrative Agent the assignment fee specified in Section 10.06(b) (unless
the Administrative Agent waives such fee);

 

(b)           such Lender shall have
received payment of an amount equal to the outstanding principal of and premium
(if any) on its Loans and L/C Advances, accrued interest thereon, accrued fees
and all other amounts payable to it hereunder and under the other Loan
Documents (including any amounts under Section 3.05) from the
assignee (to the extent of such outstanding principal and accrued interest and
fees); and

 

(c)           such assignment does
not conflict with applicable Laws.

 

A Lender shall
not be required to make any such assignment or delegation if, prior thereto, as
a result of a waiver by such Lender or otherwise, the circumstances entitling
Borrower to require such assignment and delegation cease to apply.

 

10.14      Governing Law, Jurisdiction,
Etc.

 

(a)           GOVERNING LAW. THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR
RULES OF CONFLICTS OF LAWS TO THE EXTENT THAT THE SAME ARE NOT MANDATORILY
APPLICABLE BY STATUTE AND THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION
WOULD BE REQUIRED THEREBY.

 

(b)           SUBMISSION TO
JURISDICTION. EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED
STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF SUCH STATE, AND ANY APPELLATE
COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT
OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE
HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO
AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE
JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR
IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT ANY PARTY HERETO MAY OTHERWISE
HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT IN THE COURTS OF ANY JURISDICTION.

 

(c)           WAIVER OF VENUE.
EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW
OR HEREAFTER HAVE TO 

 

141

 

THE LAYING OF VENUE OF ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS
SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

(d)           SERVICE OF PROCESS.
EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER
PROVIDED FOR NOTICES IN SECTION 10.02. NOTHING IN THIS AGREEMENT
WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY APPLICABLE LAW.

 

10.15      Waiver of Jury Trial. EACH
OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

10.16      USA PATRIOT Act Notice. Each
Lender that is subject to the Patriot Act (as hereinafter defined) and the
Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies Borrower that pursuant to the requirements of the USA PATRIOT Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot
Act”), it is required to obtain, verify and record information that
identifies the Loan Parties, which information includes the names and addresses
of the Loan Parties and other information that will allow such Lender or the
Administrative Agent to identify the Loan Parties in accordance with the
Patriot Act.

 

10.17      FCC. Notwithstanding
anything to the contrary contained herein or in any of the Loan Documents,
neither the Lenders nor their agents will take any action pursuant to this
Agreement or any of the Loan Documents that would constitute or result in
any assignment of the Licenses issued by the FCC or any transfer of control
thereof within the meaning of Section 310(d) of the Communications
Act or other Communications Law if such assignment of license or transfer of
control would require the prior approval of the FCC without first obtaining
such approval of the FCC. The Lenders and the Administrative Agent specifically
agree, to the extent required by Communications Law, that (a) voting
rights in the capital stock of Holdings, Borrower and any Subsidiary will
remain with the holders of such voting rights upon and following the occurrence
of an Event of Default until any required prior approvals of the FCC to the
transfer of such voting rights shall have been obtained; (b) upon and
following the occurrence of any 

 

142

 

Event of
Default and foreclosure upon the capital stock of Holdings, Borrower or any
Subsidiary by the Lenders or their agents, there will be either an arm’s length
private or public sale of such capital stock (to the extent required under then
existing law); and (c) prior to the exercise of stockholder rights by the
purchaser at any such sale, the prior consent of the FCC pursuant to Section 310(d) of
the Communications Act will be obtained.

 

[Signature Pages Follow]

 

143

 

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

 

	
   

  	
  BARRINGTON
  BROADCASTING

  
	
   

  	
  GROUP
  LLC,

  
	
   

  	
  as Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Warren
  Spector

  
	
   

  	
   

  	
  Name: Warren
  Spector

  
	
   

  	
   

  	
  Title: Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BARRINGTON
  BROADCASTING, LLC,

  
	
   

  	
  as Parent
  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul M. McNicol

  
	
   

  	
   

  	
  Name: Paul M.
  McNicol

  
	
   

  	
   

  	
  Title:
  Senior Vice President and Secretary

  

 

 

	
   

  	
  BANK OF
  AMERICA, N.A., 

  
	
   

  	
  as
  Administrative Agent, Collateral Agent, L/C

  Issuer, Swing Line Lender and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Aaron
  Peyton

  
	
   

  	
   

  	
  Name: Aaron
  Peyton

  
	
   

  	
   

  	
  Title: Vice
  President

  

 

 

	
   

  	
  WACHOVIA
  BANK, NATIONAL 

  ASSOCIATION,

  
	
   

  	
  as a Lender
  and Syndication Agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Arthur
  D. Burns

  
	
   

  	
   

  	
  Name: Arthur
  D. Burns

  
	
   

  	
   

  	
  Title: Vice
  President

  

 

 

	
   

  	
  CIT
  LENDING SERVICES CORPORATION,

  
	
   

  	
  as a Lender
  and Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  [illegible]

  
	
   

  	
   

  	
  Name:
  [illegible]

  
	
   

  	
   

  	
  Title: Vice
  President

  

 

 

	
   

  	
  COMMERICA
  BANK

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David J.
  Beatty

  
	
   

  	
   

  	
  Name: David
  J. Beatty

  
	
   

  	
   

  	
  Title: First
  Vice President

  

 

 

 

SCHEDULE 2.01

 

COMMITMENTS

 

	
  Lender

  	
   

  	
  Revolving Loan

  Commitment

  	
   

  	
  Term Loan

  Commitment

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  $

  	
  7,750,000

  	
   

  	
  $

  	
  134,000,000

  	
   

  
	
  Wachovia Bank, National Association

  	
   

  	
  $

  	
  7,750,000

  	
   

  	
  $

  	
  1,500,000

  	
   

  
	
  CIT Lending Services Corporation

  	
   

  	
  $

  	
  7,500,000

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  Comerica Bank

  	
   

  	
  $

  	
  2,000,000

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
  Total

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  $

  	
  147,500,000

  	
   

  

 

 

SCHEDULE 10.02

 

ADMINISTRATIVE
AGENT’S OFFICE;

CERTAIN
ADDRESSES FOR NOTICES

 

BORROWER:

 

Barrington Broadcasting Group LLC

c/o The Pilot Group LP

745 Fifth Avenue, 24th Floor

New York, New York 10151

Attention: Paul McNicol

Telephone: (212) 468-4446

Facsimile:  (212) 486-2896

E-mail Address: paulmcnicol@aol.com

 

Copies of material notices, including notices of any Default (which
shall not constitute a notice for purposes of Section 10.02), to:

 

Paul, Hastings, Janofsky & Walker LLP

75 East 55th Street

New York, New York 10022

Attention: Michael Chernick, Esq.

Telephone: (212) 318-6065

Facsimile:  (212) 230-7639

E-mail Address: michaelchernick@paulhastings.com

 

ADMINISTRATIVE AGENT:

 

Administrative Agent’s Office

(for payments
and Requests for Credit Extensions):

 

Bank of America, N.A.

101 N. Tryon Street

Mail Code: NC1-001-04-39

Charlotte, NC 28255-0001

Attn: Renyette Lockhart

Tel: (704) 387-2471

Fax: (704) 719-8582

E-mail Address: renyette.lockhart@bankofamerica.com

Account No.: 1366212250600

Ref: Barrington Broadcasting

ABA# 026009593

 

 

Financial Statements, Other Information for
Distribution to Lenders and Other Notices as Administrative Agent:

 

Bank of America, N.A.

Agency Management

1455 Market Street, 5th Floor

Mail Code: CA5-701-05-19

San Francisco, CA 94103

Attention: Liliana Claar

Telephone: (415) 436-2770

Facsimile:  (415) 503-5003

E-mail Address: liliana.claar@bankofamerica.com

 

with a copy to:

 

Bank of America, N.A.

Charlotte PM Office

100 N. Tryon Street

Mail Code: NC1-007-17-15

Charlotte, NC 28255-0001

Attention: David H. Strickert

SVP, Portfolio Manager

Telephone: (704) 386-3798

Facsimile:  (704) 719-8949

E-mail Address: david.h.strickert@bankofamerica.com

 

Copies of material notices, including notices of any Default (which
shall not constitute a notice for purposes of Section 10.02), to:

 

Cahill Gordon & Reindel LLP

80 Pine Street

New York, New York 10005

Attention: Ann Makich, Esq.

Telephone: (212) 701-3699

Facsimile:  (212) 269-5420

E-mail Address: amakich@cahill.com

 

L/C ISSUER:

Bank of America, N.A. 
1 Fleet Way

Mail Code: PA6-580-02-30

Scranton PA 18507

Attn:  Michael Grizzanti

Telephone: (570) 330-4214

Facsimile:  (800) 755-8743 

E-mail Address: michael.a.grizzanti@bankofamerica.com

 

2

 

SYNDICATION AGENT:

Wachovia Bank, National Association 

301 South College Street, NC5562

Charlotte, NC 28288

Attention: John D. Brady 

Telephone: (704) 715-1795 

Facsimile:  (704) 383-1625

E-mail Address: johnd.brady@wachovia.com

 

DOCUMENTATION AGENT:

 

CIT Lending Services Corporation

44 Whippany Road

Morristown, NJ 07960

Attention: 
Vice President and Asst. Chief Counsel, Communication, Media and Entertainment
Finance Group

Telephone: (973) 647-1377

Facsimile: (973) 647-1411

E-mail Address: nick.defabrizio@cit.com

 

3

 

SCHEDULE 10.06

 

PROCESSING AND RECORDATION FEES

 

The
Administrative Agent will charge a processing and recordation fee (an “Assignment
Fee”) in the amount of $3,500 for each assignment; provided, however,
such Assignment Fee shall be waived in connection with any assignment by a
Lender to an Approved Fund of such Lender; provided, further,
that in the event of two or more concurrent assignments to members of the same
Assignee Group (which may be effected by a suballocation of an assigned amount
among members of such Assignee Group) or two or more concurrent assignments by
members of the same Assignee Group to a single Eligible Assignee (or to an
Eligible Assignee and members of its Assignee Group), the Assignment Fee will
be $3,500 plus the amount set forth below:

 

	
  Transaction

  	
   

  	
  Additional 

  Assignment Fee

  	
   

  
	
  First four
  concurrent assignments or suballocations to members of an Assignee Group (or
  from members of an Assignee Group, as applicable)

  	
   

  	
  -0-

  	
   

  
	
  Each
  additional concurrent assignment or suballocation to a member of such
  Assignee Group (or from a member of such Assignee Group, as applicable)

  	
   

  	
  $

  	
  500Exhibit 10.2

 

GUARANTY

 

GUARANTY AGREEMENT
(this “Agreement”) dated as of August 11, 2006, among Barrington
Broadcasting Group LLC, a Delaware limited liability company (“Borrower”),
Barrington Broadcasting LLC, a Delaware limited liability company (the “Parent
Guarantor”), Barrington Peoria LLC, Barrington Quincy LLC, Barrington Flint
LLC, Barrington Jefferson City LLC, Barrington Bay City LLC, Barrington
Amarillo LLC, Barrington Myrtle Beach LLC, Barrington Toledo LLC, Barrington
Syracuse LLC, Barrington Columbia LLC, Barrington Harlingen LLC, Barrington
Colorado Springs LLC, Barrington Traverse City LLC, Barrington Albany LLC,
Barrington Marquette LLC, Barrington Kirksville LLC, Barrington Peoria License
LLC, Barrington Quincy License LLC, Barrington Flint License LLC, Barrington
Jefferson City License LLC, Barrington Bay City License LLC, Barrington
Amarillo LLC, Barrington Myrtle Beach LLC, Barrington Toledo License LLC,
Barrington Syracuse License LLC, Barrington Columbia License LLC, Barrington
Harlingen License LLC, Barrington Colorado Springs License LLC, Barrington
Traverse City License LLC, Barrington Albany License LLC, Barrington Marquette
License LLC, Barrington Kirksville License LLC and Barrington Broadcasting
Capital Corporation (collectively, the “Subsidiary Guarantors”) and any
other Person (as defined in the Credit Agreement) which may become a Guarantor
hereunder pursuant to a duly executed joinder agreement in the form attached as
Exhibit A hereto (each, an “Additional Subsidiary Guarantor”, and
together with the Parent Guarantor and the Subsidiary Guarantors, the “Guarantors”
and each, a “Guarantor”) and Bank of America, N.A., as collateral agent
(in such capacity, the “Collateral Agent”) for the Secured Parties (as
defined in the Credit Agreement referred to below).

 

Reference is made to that certain Credit
Agreement dated as of August 11, 2006 (as amended, amended and restated,
extended, supplemented or otherwise modified in writing from time to time, the “Credit
Agreement,” the terms defined therein being used herein as therein
defined), among Barrington Broadcasting Group LLC, a Delaware limited liability
company, Barrington Broadcasting LLC, a Delaware limited liability company,
each lender from time to time party thereto, Bank of America, N.A., as Administrative
Agent, Swing Line Lender, L/C Issuer and Collateral Agent, Wachovia Bank,
National Association, as Syndication Agent, Banc of America Securities LLC and
Wachovia Capital Markets, LLC, as Joint Lead Arrangers and Joint Bookrunning
Managers, and CIT Lending Services Corporation, as Documentation Agent. Capitalized
terms used and not defined herein (including, without limitation, the term “Secured
Obligations,” as used in Section 1 and elsewhere herein) are used with
the meanings assigned to such terms in the Credit Agreement.

 

The Lenders have agreed to make Loans to Borrower,
and the L/C Issuer has agreed to issue Letters of Credit for the account of Borrower,
in each case pursuant to, and upon the terms and subject to the conditions
specified in, the Credit Agreement. Each Subsidiary Guarantor is a Subsidiary
of Borrower and, along with the Parent Guarantor, acknowledges that it has
derived and will derive substantial benefit from the making of the Loans by the
Lenders to Borrower and the issuance of the Letters of Credit by the L/C Issuer
for the account of Borrower. As consideration therefor and in order to induce
the Lenders to make Loans and the L/C Issuer to issue Letters of Credit, each Guarantor
is willing to execute this Agreement.

 

Accordingly, the parties hereto agree as
follows:

 

SECTION 1.           Guarantee. Each
Guarantor unconditionally guarantees, jointly with any other Guarantors of the Secured
Obligations under the Credit Agreement and other Loan Documents and severally,
as a primary obligor and not merely as a surety, the due and punctual payment
of the Secured Obligations. To the fullest extent permitted by applicable law,
each Guarantor waives notice of, or any requirement for further assent to, any
agreements or arrangements whatsoever by the Secured Parties with

 

 

any other person pertaining to the Secured Obligations, including
agreements and arrangements for payment, extension, renewal, subordination,
composition, arrangement, discharge or release of the whole or any part of the Secured
Obligations, or for the discharge or surrender of any or all security, or for
the compromise, whether by way of acceptance of part payment or otherwise, and,
to the fullest extent permitted by applicable law, the same shall in no way impair
each Guarantor’s liability hereunder.

 

SECTION 2.           Obligations Not Waived. To the
fullest extent permitted by applicable law, each Guarantor waives presentment
to, demand of payment from and protest to Borrower or any other person of any
of the Secured Obligations, and also waives notice of acceptance of its
guarantee, notice of protest for nonpayment and all other formalities. To the
fullest extent permitted by applicable law, the Guaranty of each Guarantor
hereunder shall not be affected by (a) the failure of any Secured Party to
assert any claim or demand or to enforce or exercise any right or remedy
against Borrower or any Guarantor under the provisions of the Credit Agreement,
any other Loan Document or otherwise; (b) any extension, renewal or increase of
or in any of the Secured Obligations; (c) any rescission, waiver, amendment or
modification of, or any release from, any of the terms or provisions of this
Agreement, the Credit Agreement, any other Loan Document, any guarantee or any
other agreement or instrument, including with respect to any Guarantor under
the Loan Documents; or (d) the release of (or the failure to perfect a security
interest in) any of the security held by or on behalf of the Collateral Agent
or any other Secured Party.

 

SECTION 3.           Security. Each
Guarantor authorizes the Collateral Agent to (a) take and hold security
for the payment of this Guaranty and the Secured Obligations and exchange,
enforce, waive and release any such security pursuant to the terms of any other
Loan Documents; (b) apply such security and direct the order or manner of
sale thereof as it in its sole discretion may determine subject to the terms of
any other Loan Documents; and (c) release or substitute any one or more
endorsees, other Guarantors or other obligors pursuant to the terms of any
other Loan Documents. In no event shall this Section 3 require any Guarantor to
grant security, except as required by the terms of the Loan Documents.

 

SECTION 4.           Guarantee of Payment. Each
Guarantor further agrees that its guarantee constitutes a guarantee of payment
when due and not of collection, and, to the fullest extent permitted by
applicable law, waives any right to require that any resort be had by the
Collateral Agent or any other Secured Party to any of the security held for payment
of the Secured Obligations or to any balance of any deposit account or credit
on the books of the Collateral Agent or any other Secured Party in favor of Borrower
or any other person.

 

SECTION 5.           No Discharge or Diminishment of Guaranty. To the fullest extent permitted by applicable law
and except as otherwise expressly provided in this Agreement, the Secured Obligations
of each Guarantor hereunder shall not be subject to any reduction, limitation,
impairment or termination for any reason (other than the indefeasible payment
in full in cash of the Secured Obligations), including any claim of waiver,
release, surrender, alteration or compromise of any of the Secured Obligations,
and shall not be subject to any defense (other than a defense of payment) or
setoff, counterclaim, recoupment or termination whatsoever by reason of the
invalidity, illegality or unenforceability of the Secured Obligations or
otherwise. Without limiting the generality of the foregoing, the obligations of
each Guarantor hereunder shall, to the fullest extent permitted by applicable
law, not be discharged or impaired or otherwise affected by the failure of the
Collateral Agent or any other Secured Party to assert any claim or demand or to
enforce any remedy under the Credit Agreement, any other Loan Document, any
guarantee or any other agreement or instrument, by any amendment, waiver or
modification of any provision of the Credit Agreement or any other Loan
Document or other agreement or instrument, by any default, failure or delay,
willful or otherwise, in the performance of the Secured Obligations, or by any
other act, omission or delay to do any other act that may or might in any
manner or to any extent vary the

 

F-2

 

risk of any Guarantor or that would otherwise
operate as a discharge of any Guarantor as a matter of law or equity (other
than the indefeasible payment in full in cash of all the Secured Obligations)
or which would impair or eliminate any right of any Guarantor to subrogation.

 

SECTION 6.           Defenses Waived. To the fullest extent permitted by applicable law,
each Guarantor waives any defense based on or arising out of the
unenforceability of the Secured Obligations or any part thereof from any cause
or the cessation from any cause of the liability (other than the final and indefeasible
payment in full in cash of the Secured Obligations) of Borrower or any other
person. Subject to the terms of the other Loan Documents, the Collateral Agent
and the other Secured Parties may, at their election, foreclose on any security
held by one or more of them by one or more judicial or nonjudicial sales,
accept an assignment of any such security in lieu of foreclosure, compromise or
adjust any part of the Secured Obligations, make any other accommodation with Borrower
or any other Guarantor or exercise any other right or remedy available to them
against Borrower or any other Guarantor, without affecting or impairing in any
way the liability of each Guarantor hereunder except to the extent the Secured Obligations
have been fully,finally and indefeasibly paid in
cash. Pursuant to and to the fullest extent permitted by applicable law, each
Guarantor waives any defense arising out of any such election even though such
election operates, pursuant to applicable law, to impair or to extinguish any
right of reimbursement or subrogation or other right or remedy of each
Guarantor against Borrower or any other Guarantor or any security.

 

SECTION 7.           Agreement to Pay; Subordination. In furtherance of the foregoing and not in
limitation of any other right that the Collateral Agent or any other Secured
Party has at law or in equity against each Guarantor by virtue hereof, upon the
failure of Borrower or any other Loan Party to pay any Secured Obligation when
and as the same shall become due, whether at maturity, by acceleration, after
notice of prepayment or otherwise, each Guarantor hereby promises to and will
forthwith pay, or cause to be paid, to the Collateral Agent or such other
Secured Party as designated thereby in cash an amount equal to the unpaid
principal amount of such Secured Obligations then due, together with accrued
and unpaid interest and fees on such Secured Obligations. Upon payment by each
Guarantor of any sums to the Collateral Agent or any Secured Party as provided
above, all rights of each Guarantor against Borrower arising as a result
thereof by way of right of subrogation, contribution, reimbursement, indemnity
or otherwise shall in all respects be subordinate and junior in right of
payment to the prior indefeasible payment in full in cash of all the Secured Obligations.
In addition, any indebtedness of Borrower or any Subsidiary now or hereafter
held by each Guarantor that is required by the Credit Agreement to be subordinated
to the Secured Obligations is hereby subordinated in right of payment to the
prior payment in full of the Secured Obligations. If any amount shall be paid
to any Guarantor on account of (i) such subrogation, contribution, reimbursement,
indemnity or similar right or (ii) any such indebtedness at any time when any Secured
Obligation then due and owing has not been paid, such amount shall be held in
trust for the benefit of the Secured Parties and shall forthwith be paid to the
Collateral Agent to be credited against the payment of the Secured Obligations,
whether matured or unmatured, in accordance with the terms of the Loan Documents.

 

SECTION 8.           General Limitation on Guarantee Obligations. In
any action or proceeding involving any state corporate law, or any state,
Federal or foreign bankruptcy, insolvency, reorganization or other law
affecting the rights of creditors generally, if the obligations of any Guarantor
under this Agreement would otherwise be held or determined to be void,
voidable, invalid or unenforceable, or subordinated to the claims of any other
creditors, on account of the amount of its liability under this Agreement,
then, notwithstanding any other provision to the contrary, the amount of such
liability shall, without any further action by any Guarantor, any creditor or
any other Person, be automatically limited and reduced to the highest amount
that is valid and enforceable and not subordinated to the claims of other
creditors as determined in such action or proceeding.

 

F-3

 

SECTION 9.           Information. Each
Guarantor assumes all responsibility for being and keeping itself informed of Borrower’s
financial condition and assets, all other circumstances bearing upon the risk
of nonpayment of the Secured Obligations and the nature, scope and extent of
the risks that each Guarantor assumes and incurs hereunder and agrees that none
of the Collateral Agent or the other Secured Parties will have any duty to
advise such Guarantor of information known to it or any of them regarding such
circumstances or risks.

 

SECTION 10.         Covenant; Representations and Warranties. Each Guarantor agrees and covenants to, and to
cause its Subsidiaries to, take, or refrain from taking, each action that is
necessary to be taken or not taken, so that no breach of the agreements and
covenants contained in the Credit Agreement pertaining to actions to be taken,
or not taken, by such Guarantor or its Subsidiary will result. Each Guarantor
represents and warrants as to itself that all representations and warranties
relating to it contained in the Credit Agreement are true and correct in all
material respects, provided that
each reference in any such representation and warranty to the knowledge of
Parent Guarantor or Borrower shall, for the purposes of this Section 10,
be deemed to be a reference to Guarantor’s knowledge.

 

SECTION 11.         Termination. The
Guaranties made hereunder shall terminate when (i) the principal of and premium,
if any, and interest (including interest accruing during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) on all Loans; (ii) each
payment required to be made under the Credit Agreement in respect of any Letter
of Credit; and (iii) all other Secured Obligations then due and owing, have in
each case been indefeasibly paid in full and the Lenders have no further
commitment to lend under the Credit Agreement, the L/C Obligations have been
reduced to zero and the L/C Issuer has no further obligation to issue Letters
of Credit under the Credit Agreement; provided that
any such Guaranty shall continue to be effective or be reinstated, as the case
may be, if at any time any payment, or any part thereof, on any Secured Obligation
is rescinded or must otherwise be restored by any Secured Party upon the
bankruptcy or reorganization of Borrower, the Guarantors or otherwise.

 

SECTION 12.         Binding Effect; Several Agreement; Assignments; Releases. Whenever in this Agreement any of the parties
hereto is referred to, such reference shall be deemed to include the successors
and assigns of such party; and all covenants, promises and agreements by or on
behalf of each Guarantor that are contained in this Agreement shall bind and inure
to the benefit of each party hereto and their respective successors and assigns.
This Agreement shall become effective as to each Guarantor when a counterpart hereof
executed on behalf of each Guarantor shall have been delivered to the Collateral
Agent and a counterpart hereof shall have been executed on behalf of the
Collateral Agent, and thereafter shall be binding upon each Guarantor and the
Collateral Agent and their respective successors and assigns, and shall inure
to the benefit of each Guarantor, the Collateral Agent and the other Secured Parties,
and their respective successors and assigns, except that neither Borrower nor
the Guarantors shall have the right to assign its rights or obligations
hereunder or any interest herein (and any such attempted assignment shall be
void) without the prior written consent of the Required Lenders. The Collateral
Agent is hereby expressly authorized to, and agrees upon request of Borrower it
will, release any Subsidiary Guarantor from its obligations hereunder (including
its Guaranty) in the event that all the Equity Interests of such Subsidiary
Guarantor shall be sold, transferred or otherwise disposed of to a person other
than Parent Guarantor or any of its Subsidiaries in a transaction permitted by
the Credit Agreement.

 

SECTION 13.         Waivers; Amendment. (a)  No
failure or delay of the Collateral Agent in exercising any power or right
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. The rights and remedies of
the Collateral Agent hereunder and of the other Secured Parties under the

 

F-4

 

other Loan Documents are cumulative and are
not exclusive of any rights or remedies that they would otherwise have. No
waiver of any provision of this Agreement or consent to any departure by any Guarantor
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) below, and then such waiver or consent shall be effective only in
the specific instance and for the purpose for which given. No notice or demand
on any Guarantor in any case shall entitle such Guarantor to any other or
further notice or demand in similar or other circumstances.

 

(b)           Neither this Agreement nor any
provision hereof may be waived, amended or modified except pursuant to a
written agreement entered into between Borrower, the Guarantors and the
Collateral Agent (with the consent of the Lenders if required under the Credit
Agreement).

 

SECTION
14.       GOVERNING
LAW. THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 15.         Notices. All
communications and notices hereunder shall be in writing and given as provided
in Section 10.02 of the Credit Agreement. All communications and notices hereunder
to each Guarantor shall be given to it at its respective addresses set forth in
Schedule 10.02 of the Credit Agreement, with a copy to Borrower at its address
set forth in such schedule.

 

SECTION 16.         Survival of Agreement; Severability. (a)  All
covenants, agreements, representations and warranties made by Borrower and the
Guarantors herein and in the certificates or other instruments prepared or
delivered in connection with or pursuant to this Agreement or any other Loan
Document shall be considered to have been relied upon by the Collateral Agent
and the other Secured Parties and shall survive the making by the Lenders of
the Loans and the issuance of the Letters of Credit by the L/C Issuer
regardless of any investigation made by the Secured Parties or on their behalf,
and shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any other fee or amount payable under this
Agreement or any other Loan Document is outstanding and unpaid or the
Commitments have not been terminated.

 

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

 

SECTION 17.         Counterparts. This
Agreement may be executed in counterparts, each of which shall constitute an
original, but all of which when taken together shall constitute a single
contract, and shall become effective as provided in Section 12. Delivery of an
executed signature page to this Agreement by facsimile transmission shall be as
effective as delivery of a manually executed counterpart of this Agreement.

 

SECTION 18.         Rules of Interpretation.
The rules of interpretation specified in Section 1.02 of the Credit Agreement
shall be applicable to this Agreement.

 

SECTION 19.         Jurisdiction; Consent to Service of Process. (a)  Each
party hereto hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction

 

F-5

 

of any New York State court or Federal court
of the United States of America sitting in New York City, and any appellate
court from any thereof, in any action or proceeding arising out of or relating
to this Agreement or the other Loan Documents, or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or proceeding
may be heard and determined in such New York State court or, to the extent
permitted by law, in such Federal court. Each of the parties hereto agrees that
a final judgment in any such action or proceeding shall be conclusive and may
be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Nothing in this Agreement shall affect any right that
the Collateral Agent or any other Secured Party may otherwise have to bring any
action or proceeding relating to this Agreement or the other Loan Documents
against each Guarantor or its properties in the courts of any jurisdiction.

 

(b)           Each party hereto hereby irrevocably
and unconditionally waives, to the fullest extent it may legally and effectively
do so, any objection that it may now or hereafter have to the laying of venue
of any suit, action or proceeding arising out of or relating to this Agreement
or the other Loan Documents in any New York State or Federal court. Each of the
parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

 

(c)           Each party to this Agreement
irrevocably consents to service of process in the manner provided for notices
in Section 15. Nothing in this Agreement will affect the right of any party to
this Agreement to serve process in any other manner permitted by law.

 

SECTION
20.       Waiver
of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS. EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 20.

 

SECTION 21.         Right of Setoff. If an
Event of Default shall have occurred and be continuing, each Secured Party is
hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other
Indebtedness at any time owing by such Secured Party to or for the credit or
the account of each Guarantor against any or all of the obligations of such
Guarantor now or hereafter existing under this Agreement and the other Loan
Documents held by such Secured Party, irrespective of whether or not the
Collateral Agent or any Secured Party shall have made any demand under this
Agreement or any other Loan Document and although such obligations may be
unmatured. The rights of each Secured Party under this Section 21 are in
addition to other rights and remedies (including other rights of setoff) which
such Secured Party may have.

 

SECTION 22.         Effectiveness of Obligations. The
covenants, agreements and other obligations hereunder of the Guarantors will
become effective concurrently with (but not prior to) the effectiveness of the Credit
Agreement, and thereupon such covenants, agreements and other obligations shall

 

F-6

 

become fully effective and operative without
any further grant, act, confirmation or consent by the Guarantors.

 

F-7

 

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

 

	
   

  	
  BARRINGTON BROADCASTING GROUP LLC,

  
	
   

  	
  as Borrower

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Warren Spector

  	
   

  
	
   

  	
   

  	
  Name: Warren Spector

  	
   

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BARRINGTON BROADCASTING LLC,

  	
   

  
	
   

  	
  as Parent
  Guarantor

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul McNicol

  	
   

  
	
   

  	
   

  	
  Name: Paul McNicol

  	
   

  
	
   

  	
   

  	
  Title: Senior Vice President and Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

 

	
   

  	
  BARRINGTON PEORIA LLC

  
	
   

  	
  BARRINGTON QUINCY LLC

  
	
   

  	
  BARRINGTON FLINT LLC

  
	
   

  	
  BARRINGTON JEFFERSON CITY LLC

  
	
   

  	
  BARRINGTON BAY CITY LLC

  
	
   

  	
  BARRINGTON AMARILLO LLC

  
	
   

  	
  BARRINGTON MYRTLE BEACH LLC

  
	
   

  	
  BARRINGTON TOLEDO LLC

  
	
   

  	
  BARRINGTON SYRACUSE LLC

  
	
   

  	
  BARRINGTON COLUMBIA LLC

  
	
   

  	
  BARRINGTON HARLINGEN LLC

  
	
   

  	
  BARRINGTON COLORADO SPRINGS LLC

  
	
   

  	
  BARRINGTON TRAVERSE CITY LLC

  
	
   

  	
  BARRINGTON ALBANY LLC

  
	
   

  	
  BARRINGTON MARQUETTE LLC

  
	
   

  	
  BARRINGTON KIRKSVILLE LLC

  
	
   

  	
  BARRINGTON PEORIA LICENSE LLC

  
	
   

  	
  BARRINGTON QUINCY LICENSE LLC

  
	
   

  	
  BARRINGTON FLINT LICENSE LLC

  
	
   

  	
  BARRINGTON JEFFERSON CITY LICENSE LLC

  
	
   

  	
  BARRINGTON BAY CITY LICENSE LLC

  
	
   

  	
  BARRINGTON AMARILLO LICENSE LLC

  
	
   

  	
  BARRINGTON MYRTLE BEACH LICENSE LLC

  
	
   

  	
  BARRINGTON TOLEDO LICENSE LLC

  
	
   

  	
  BARRINGTON SYRACUSE LICENSE LLC

  
	
   

  	
  BARRINGTON COLUMBIA LICENSE LLC

  
	
   

  	
  BARRINGTON HARLINGEN LICENSE LLC

  
	
   

  	
  BARRINGTON COLORADO SPRINGS LICENSE LLC

  
	
   

  	
  BARRINGTON TRAVERSE CITY LICENSE LLC

  
	
   

  	
  BARRINGTON ALBANY LICENSE LLC

  
	
   

  	
  BARRINGTON MARQUETTE LICENSE LLC

  
	
   

  	
  BARRINGTON KIRKSVILLE LICENSE LLC

  
	
   

  	
  BARRINGTON BROADCASTING CAPITAL

  
	
   

  	
  CORPORATION, each, as a Guarantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul M. McNicol

  
	
   

  	
   

  	
  Name  Paul M. McNicol

  
	
   

  	
   

  	
  Title Secretary

  
	
   

  	
   

  

 

 

 

 

	
   

  	
  BANK OF AMERICA, N.A., as Collateral Agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Aaron Peyton

  	
   

  
	
   

  	
   

  	
  Name: Aaron Peyton

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  	
   

  

 

 

EXHIBIT A

to the Guaranty

 

[Form of]

JOINDER AGREEMENT

 

Reference is made to that certain Credit
Agreement dated as of August 11, 2006 (as amended, amended and restated,
extended, supplemented or otherwise modified in writing from time to time, the “Credit
Agreement,” the terms defined therein being used herein as therein
defined), among Barrington Broadcasting Group LLC, a Delaware limited liability
company, Barrington Broadcasting LLC, a Delaware limited liability company,
each lender from time to time party thereto, Bank of America, N.A., as Administrative
Agent, Swing Line Lender, L/C Issuer and Collateral Agent, Wachovia Bank,
National Association, as Syndication Agent, Banc of America Securities LLC and
Wachovia Capital Markets, LLC, as Joint Lead Arrangers and Joint Bookrunning
Managers, and CIT Lending Services Corporation, as Documentation Agent. Capitalized
terms used and not defined herein are used with the meanings assigned to such
terms in the Credit Agreement.

 

W I T N E S S E T H:

 

WHEREAS, Borrower, the Parent Guarantor, the
Subsidiary Guarantors, any other Person (as defined in the Credit Agreement)
which may become a Guarantor thereunder pursuant to a duly executed joinder
agreement in the form attached as Exhibit A thereto (each an “Additional
Subsidiary Guarantor”, and together with the Parent Guarantor and the
Subsidiary Guarantors, the “Guarantors” and each, a “Guarantor”) and
Bank of America, N.A., as collateral agent (in such capacity, the “Collateral
Agent”) for the Secured Parties (as defined in the Credit Agreement) are
parties to the Guaranty Agreement (the “Guaranty”) dated as of August 11,
2006.

 

WHEREAS, the Lenders have agreed to make
Loans to Borrower, and the L/C Issuer has agreed to issue Letters of Credit for
the account of Borrower, in each case pursuant to, and upon the terms and
subject to the conditions specified in, the Credit Agreement.

 

WHEREAS, each Subsidiary Guarantor is a
Subsidiary of Borrower and acknowledges that it has derived and will derive
substantial benefit from the making of the Loans by the Lenders to Borrower and
the issuance of the Letters of Credit by the L/C Issuer for the account of Borrower.

 

WHEREAS, pursuant to Section 6.09(d) of the Credit
Agreement, each Subsidiary that was not in existence on the date of the Credit Agreement
and that is not a Foreign Subsidiary is required to become a Guarantor under
the Agreement by executing a joinder agreement.

 

WHEREAS, the undersigned Subsidiary (the “New
Guarantor”) is executing this joinder agreement (“Joinder Agreement”)
to the Guaranty in order to induce the Lenders to make additional Revolving
Loans and as consideration for the Loans previously made.

 

NOW, THEREFORE, the Administrative Agent,
Collateral Agent and the New Guarantor hereby agree as follows:

 

(a)           Guarantee. In
accordance with Section 6.09(d) of the Credit Agreement, the New Guarantor by
its signature below becomes a Guarantor under the Guaranty with the same force
and effect as if originally named therein as a Guarantor.

 

 

(b)           Representations and
Warranties. The New Guarantor hereby (a) agrees to all the terms and
provisions of the Guaranty applicable to it and its subsidiaries as a Guarantor
thereunder and (b) represents and warrants that the representations and
warranties made by it as a Guarantor thereunder are true and correct in all
material respects (except that any representation and warranty that is
qualified as to “materiality” or “Material Adverse Effect” shall be true and
correct in all respects) on and as of the date hereof. Each reference to a
Guarantor in the Guaranty shall be deemed to include the New Guarantor.

 

(c)           Severability. Any
provision of this Joinder Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

(d)           Counterparts. This
Joinder Agreement may be executed in counterparts, each of which shall
constitute an original. Delivery of an executed signature page to this Joinder
Agreement by facsimile transmission shall be as effective as delivery of a
manually executed counterpart of this Joinder Agreement.

 

(e)           No Waiver. Except
as expressly supplemented hereby, the Guaranty shall remain in full force and
effect.

 

(f)            Notices. All
notices, requests and demands to or upon the New Guarantor, any Agent or any
Lender shall be governed by the terms of Section 10.02 of the Credit Agreement.

 

(g)           Governing Law. THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK,
WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THAT WOULD REQUIRE THE APPLICATION
OF THE LAWS OF ANOTHER JURISDICTION.

 

[Signature Pages Follow]

 

2

 

IN WITNESS WHEREOF, the undersigned have
caused this Joinder Agreement to be duly executed and delivered by their duly
authorized officers as of the day and year first above written.

 

 

	
   

  	
  [NEW GUARANTOR]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notices:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Entity
  Name]

  	
   

  
	
   

  	
  [Street
  Address]

  	
   

  
	
   

  	
  [City,
  State, Zip Code]

  	
   

  
	
   

  	
  Attn: [             ]

  	
   

  
	
   

  	
  Telephone: [            ]

  	
   

  
	
   

  	
  Facsimile: [             ]

  	
   

  
	
   

  	
  E-mail
  Address: [             ]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as Collateral Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]