Document:

Exhibit
10.7

 

Confidential Treatment has been
requested for portions of this Exhibit. The Confidential portions have been
redacted and are denoted by ***. The Confidential portions have been separately
filed with The Securities and Exchange Commission.

 

September 29,
2004

 

Ms. Deborah McDermott

President, Broadcast Group

Young Broadcasting

599 Lexington Avenue, 47th Floor 

New York, NY 10022

 

Dear Deborah:

 

Reference is made to the Affiliation
Agreement (“the Agreement”) between Young Broadcasting of Lansing, Inc. (“Broadcaster”)
and CBS, dated September 19, 1994, as amended, regarding the affiliation of
television station WLNS-TV (“Station”), in Lansing, Michigan, with the CBS
Television Network.

 

You and we mutually agree in this Letter
Agreement to the following amendments and additional terms and conditions of
the Agreement

 

1.                                       In order to clarify that Broadcaster’s “first call”
rights to Network Programs extend to such programs in digital format, you and
we agree that the initial words of Paragraph 1 of the Agreement prior to the
start of Subparagraph 1(a) shall be deleted and replaced by the following
language:

 

“1.                                 Offer,
Acceptance and Delivery of Network Programs

 

Broadcaster shall have a “first call”, as set
forth below, on the program offerings of the CBS Television Network (“Network
Programs”). Such “first call” rights shall apply to Network Programs in both
analog and digital format, it being understood that, with respect to digital
broadcasting, “Network Programs” shall refer to the “Primary Network Feed”,
which during the digital transition shall mean the digital version of those
programs transmitted to CBS Affiliates for the purpose of analog broadcasting,
and not necessarily to any additional program streams that may be transmitted
by the Network (i.e, “multi-plexed” programming).”

 

2.                                       In order to clarify that Broadcaster’s network
non-duplication protection and retransmission consent rights apply to digital
as well as analog broadcasting of Network Programs, you and we agree that the
words “in any and all formats” shall be inserted into the second line of
Subparagraph 9(b) of the Agreement after the words “network programming”, and
in the first line of Subparagraph 4(b) after the word “signal”, Thus, the
beginning of these subparagraphs will read as follows:

 

Subparagraph 9(b)

“Broadcaster shall be entitled to exercise,
within Affiliated Station’s Network Exclusivity Zone, the protection against
duplication of network programming in any and all formats,” 

 

Also, due to modification of the FCC’s regulations,
you and we agree that the reference in the same Subparagraph 9(b) to “Section
76.92 through 76.97 of the FCC rules” shall be amended to read “Sections 76.92
through 76.95 of the FCC rules.”

 

 

Subparagraph 4(b)

“Broadcasters may grant consent to the
retransmission of Affiliates Station’s signal, in any and all formats . . .”

 

3.                                       In addition, you and we agree to the following
additional terms and conditions which shall be made part of the Agreement

 

Subject to the same terms and conditions
specified in the Affiliation Agreement including, without limitation, those set
forth in Paragraph 4 thereof, and upon commencement of operation of the Station’s
digital (“DTV”) channel, the Station will, to the same extent as the Agreement
provides for carriage of Network programs on its analog channel, transmit on
such DTV channel the digital feed of such Network programs in the technical
format, consistent with the ATSC standards, provided by CBS, which shall be
deemed to include the transmission by Station of all program related material,
as defined below, provided by CBS which can be accommodated within a six MHz
channel carrying a data stream of up to 19.4 megabits per second. It is
expressly understood that this Agreement applies only to the primary network
feed in digital format of the program provided by the Network to its affiliated
stations for the purpose of analog broadcasting, together with any associated
program related material, and that Broadcaster will in no event be required to
carry additional Network digital programming (i.e., “multiplexed” programming).
Consistent with and subject to the foregoing, the Station shall have the right
to use any available portion of its digital signal for the purpose of
transmitting local programs or any other material for any business purpose;
provided, however, that in the event that CBS proposes that the Station carry
Network multiplexed programming or ancillary data which is not “program related”
as defined below, Broadcaster agrees to negotiate in good faith with CBS
regarding the terms pursuant to which such multiplexed programming or ancillary
data may be carried. As used in this paragraph, “program-related material”
shall mean ***.

 

4.                                       Subject to the FCC’s right-to-reject under Section
73.658(e) of the FCC’s rules, Station will provide full, in-pattern clearance
of all programs (or, any program’s replacement) on the CBS Television Network
program schedule in all day-parts (including, but not limited to, Weekend
Sports programming), as set forth in the attached Schedule A, Station agrees
not to downgrade (i.e., delay to any period) or cancel clearance of any Network
Program without the written consent of CBS.

 

Broadcaster agrees to limit one-time-only
primetime preemptions to no more than 20 hours per calendar year allocated
proportionally in partial years (“the Primetime Preemption Cap”), Primetime
Preemptions in excess of 20 hours annually will be deemed a breach of the
Agreement unless such preemptions are made pursuant to Section 73.658(e) of the
FCC’s rules.

 

Similarly, Broadcaster agrees to limit
one-time-only preemptions of Weekend Sports programming to no more than 30
hours per calendar year (“the Weekend Sports Cap”). Weekend Sports preemptions
in excess of 30 hours annually will be deemed a breach of the Agreement unless
such preemptions are made pursuant to Section 73.658(e) of the FCC’s rules.

 

It is understood that Station’s obligations
pursuant the above paragraph shall be subject to Station’s rights under Section
73.658 (e) of the FCC’s rules and Paragraph 5 (a) of the Agreement, and that
Station’s legitimate exercise of such rights shall in no event be deemed a
breach of the obligations set forth in the above paragraph and shall not count
against the Primetime Preemption Cap or the Weekend Sports Cap as set forth
above; provided, however, that nothing in the foregoing will be construed to
permit Station to preempt a program, regardless of the reason for the
preemption, in its live or agreed time period, and then broadcast such program
in a different time period, without the express written consent of CBS;
provided however, Station may broadcast up to 2 how-s of the CBS’s weekend
children’s programming during weekends in other time periods, except these
programs may not be broadcast, without CBS’s consent, in other CBS Network time
periods and must be broadcast in consistent time periods. Clearance of CBS
programming is subject to CBS continuing to offer general entertainment
programming.

 

5.                                       In order to extend the Agreement for an additional
eight (8) year term, Paragraph 3(a) of the Agreement is hereby deleted and
replaced by the following new Paragraph 3(a):

 

“3.                                 Term
and Termination.

 

(a)                                  Term.

 

The term of this Agreement shall be the
period commencing on October 1, 2004 and expiring on September 30, 2012,
Notwithstanding any provision of any offer or acceptance under Paragraph 1
hereof; upon the expiration or any termination of the term of this Agreement,
Broadcaster shall have no right whatsoever to broadcast over Affiliated Station
any Network Program.”

 

***         Subject to request for
confidential treatment; separately filed with the Commission.

 

2

 

6.                                       The Affiliated Station’s Network Rate and Net
Compensation as specified in Paragraph 2) of the Agreement will be revised to
the amount shown below on the indicated Effective Date:

 

	
  Effective

  Date

  	
   

  	
  Network

  Rate*

  	
   

  	
  Net

  Compensation

  	
   

  
	
  Oct. 1, 2004 – Dec. 31, 2004

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   

  
	
  Jan. 1, 2005 –Sept. 30, 2005

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   

  
	
  Oct. 1, 2005-Sept. 30, 2006

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   

  
	
  Oct. 1, 2006-Sept. 30, 2014

  	
   

  	
  $

  	
  ***

  	
   

  	
  $

  	
  ***

  	
   

  

 

*To be
confirmed by the parties.

 

7.                                       Station agrees to participate in CBS’ Coop and
Promo Swap Programs at their current level and as currently defined and
requested by CBS.

 

8.                                       The terms of this Letter and Affiliation
Agreement, and discussions related thereto, will not be disclosed to anyone who
is not either employed by the Station or the corporate ownership of the
Station; it being understood, however, that adherence to FCC filing requirements
will not constitute a violation of this point. Any press release regarding the
terms of this negotiation or Agreement, shall be made jointly by the parties.
The parties participation in negotiations related hereto shall constitute their
agreement to comply with this Confidentiality provision.

 

Further, it is hereby ratified
and reaffirmed that throughout this Term the: 1) Terms of the September 23,
1998 and October 22, 2001 Letter Agreements between you and us which
established, among other things, Station’s NFL Contribution and placed various
program exclusivity requirements on the Network remain in full force and
effect, per the terms of that Letter Agreement (plus any increase or renewals
agreed to by Broadcaster and the CBS Affiliate Board); 2) Station’s
participation in the NCAA Exchange Value Program will continue as set forth in
the December 2, 2003 Letter for the term of this Agreement; and 3) Station’s
participation in CBS Newspath will continue at the current rate of $*** plus ***%
annual increase through September 30, 2007 and, thereafter, by such annual
increases agreed to by Broadcaster and the CBS Affiliate Board.

 

As herein amended, all terms
and conditions of the Agreement are ratified and confirmed. All individual
reference herein to Station or Broadcaster shill apply to both collectively.

 

Four copies of this Letter
Agreement are enclosed. Please indicate your approval by signing each copy in
the space provided below, retain two copies for your records, and return two
copies to me.

 

Accepted and agreed:

 

	
  YOUNG BROADCASTING

  OF LANSING, INC.

  	
  CBS AFFILIATE RELATIONS

  A Unit of CBS Broadcasting, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Deborah McDermott

  	
   

  	
  By:

  	
  /s/ Peter K. Schruth

  	
   

  
	
   

  	
   

  	
  Peter K. Schruth, President

  
	
   

  	
   

  
	
  Best regards,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  cc:

  	
  P. Schruth, D. Comisar, P. Farr

  	
   

  
							

 

***  Subject
to request for confidential treatment; separately filed with the Commission.

 

3

 

Schedule
A. WLNS

 

 

WLNS Current
Clearance of CBS Programming (all times local):

 

	
  Monday-Friday

  	
   

  
	
   

  	
   

  
	
  CBS Morning News

  	
  4:30-5:00am

  
	
  The Early Show

  	
  7:00-9:00am   (full network
  format)

  
	
  Price Is Right

  	
  11:00am-12:00pm

  
	
  Young & Restless

  	
  12:30-1:30pm

  
	
  Bold & Beautiful

  	
  1:30-2:00pm

  
	
  As The World Turns

  	
  2:00-3:00pm

  
	
  Guiding Light

  	
  3:00-4:00pm

  
	
  CBS Evening News

  	
  6:30-7:00pm

  
	
  Prime Time

  	
  8:00-11:00pm

  
	
  Late Show

  	
  11:35pm-12:57pm

  
	
  Late Late Show

  	
  12:37am-1:37am

  
	
  Up To The Minute

  	
  2:37am-4:30am M-F

  
	
   

  	
   

  
	
   

  	
   

  
	
  Saturday

  	
   

  
	
   

  	
   

  
	
  Kids Programming:

  	
  7:00-8:00am

  
	
   

  	
   

  
	
  Sat. Early Show

  	
  9:00-11:00am

  
	
   

  	
   

  
	
  Kids Programming:

  	
  11:00am-12:00pm

  
	
  Sat. Evening News

  	
  6:30-7:00pm

  
	
  Prime Time

  	
  8:00-11:00pm

  
	
   

  	
   

  
	
   

  	
   

  
	
  Sunday

  	
   

  
	
   

  	
   

  
	
  Kids Programming:

  	
  7:00-8:00am

  
	
  CBS Sun. Morning

  	
  9:00-10:30am

  
	
  Face The Nation

  	
  10:30-11:00am

  
	
  Sun, Evening News

  	
  6:30-7:00pm

  
	
  Prime Time

  	
  7:00-11:00pm

  

 

4Exhibit 10.8

 

ABC TV Network

John L. Rouse

Senior Vice President

Affiliate Relations

 

September 30, 2004

 

Ms. Deb McDermott

President

Young Broadcasting, Inc.

441 Murfreesboro Road

Nashville, TN  37210

 

Re:  Primary Television Affiliate
Agreements (the “Agreements”) between WKRN, WATE, WBAY, WRIC, WTEN and American
Broadcasting Companies, Inc.

 

Dear Deb:

 

As you are aware, the Agreements for WKRN, WATE, WBAY, WRIC and WTEN
will expire by their own terms on September 30, 2004.  Despite our best efforts to come to terms for
new affiliation agreements with you to become effective after this date, we
have failed to reach agreement.

 

Notwithstanding the termination of the Agreements, ABC is willing to
continue its affiliation arrangements with you after September 30, 2004
and hereby agrees to extend the termination date for each of the Agreements
until October 22, 2004.  This offer
to extend the Agreements is conditioned upon your agreement to continue to
clear the weekend edition of Good Morning America on an interim basis during
this extended term.  Also, we are agreed
that the compensation arrangements that we establish for these stations in the
new agreements will be retroactive to October 1, 2004.  All other terms of the Agreements shall
remain unchanged.

 

If you are in agreement with the foregoing, please promptly sign the
enclosed extra copy of this letter and return it to me at your earliest
convenience, at which time the Agreements shall be so amended and extended.

 

We look forward to continuing to work with you to reach a mutually
acceptable affiliation agreement.

 

	
  Very truly yours,

  
	
  /s/    John L. Rouse

  	
   

  
	
  John L. Rouse

  

 

The foregoing is hereby acknowledged and agreed:

YOUNG BROADCASTING, INC.

 

	
  By:

  	
  /s/    Deborah A. McDermott

  	
   

  
	
   

  	
  Title: President

  
	
   

  	
  Date: 10/1/04

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