Document:

Exhibit
10.1

RESTRUCTURING
SUPPORT AGREEMENT

This RESTRUCTURING
SUPPORT AGREEMENT is made and entered into as of December 11, 2006 (the “Agreement”)
by and among Granite Broadcasting Corporation, a corporation organized under
the laws of Delaware (the “Company”), WXON, Inc., WXON License, Inc.,
KBWB, Inc., KBWB License, Inc., and WEEK-TV License, Inc. (collectively, the “Debtor
Subsidiaries”, and together with the Company, the “Debtors”), all
other direct and indirect subsidiaries of the Company (the “Non-Debtor
Subsidiaries” and, together with the Debtors, the “Granite Group”)  Silver Point Finance, LLC (“Silver Point
Finance” and together with its affiliated investment funds, the “Silver
Point Entities”), and the other secured claimholders identified on the
signature pages hereto (the “Other Secured Claimholders”).  The Granite Group, the Silver Point Entities,
and the Other Secured Creditors and any subsequent person that becomes a party
hereto in accordance with the terms hereof are collectively referred to herein
as the “Parties.”

W
I  T  N  E  S  S  E  T  H:

WHEREAS, the
Company has issued and outstanding $405,000,000 aggregate principal amount of
its 9.75% Senior Secured Notes due December 1, 2010 (the “Old Notes”)
pursuant to the Indenture, dated as of December 22, 2003 (as amended by the
First Supplemental Indenture, dated as of March 9, 2005, the Second
Supplemental Indenture, dated as of July 5, 2006, and the Third
Supplemental Indenture, dated as of August 1, 2006, the “Indenture”)
between the Company, the guarantors party thereto and The Bank of New York, as
trustee (the “Trustee”); and

WHEREAS, the
Company,  and the Debtor and Non-Debtor
Subsidiaries, as guarantors, are a party to the Credit and Guaranty Agreement,
dated as of July 5, 2006, with Silver Point Finance, LLC, as Administrative
Agent, and the lenders party thereto from time to time (the “Credit
Agreement”), pursuant to which the Company has outstanding:  (i) $40 million principal amount of Tranche A
Term Loans (the “Term Loans A”) and (ii) $30 million principal amount of
Convertible Tranche B Term Loans (the “Term Loans B” and, together with
the Term Loans A, the “Term Loans”), each of which matured on December
1, 2006; and

WHEREAS, the
Credit Agreement, as amended, requires that the Company (i) submit to the
Silver Point Entities a comprehensive restructuring plan for the Company no
later than July 14, 2006 and (ii) execute a definitive agreement effectuating a
comprehensive restructuring of the Company in form and substance satisfactory
to the lenders holding 51% of the loans under the Credit Agreement on or prior
to September 15, 2006; and

WHEREAS,
the Company and the Silver Point Entities did not enter into a definitive
agreement for a comprehensive restructuring by such date; however, the Silver
Point Entities did not provide a notice of default with respect to such breach
and the parties have continued to negotiate in good faith with respect to this
Agreement and the Plan (as defined below), which constitute such definitive
agreement;  and

 

WHEREAS, in
accordance with the terms set forth in this Agreement and the Plan (as defined
below), the members of the Granite Group have agreed with the Silver Point
Entities and the Other Secured Claimholders to undertake a comprehensive
financial restructuring and recapitalization of the Company as described in the
Plan and the Disclosure Statement (the “Restructuring”); and

WHEREAS, the
members of the Granite Group intend to effect the Restructuring by means of a
pre-arranged joint Chapter 11 plan of reorganization, substantially in the form
of the draft Plan annexed hereto as Exhibit A with any changes thereto
(other than ministerial changes) subject to Silver Point Consent(1) (the “Plan”);
and

WHEREAS, the
Debtors intend to commence voluntary reorganization cases (the “Chapter 11
Cases”) under chapter 11 of title 11 of the United States Code (as amended,
the “Bankruptcy Code”) in the United States Bankruptcy Court for the
Southern District of New York (the “Bankruptcy Court”); and

WHEREAS, certain
of the Silver Point Entities and the Other Secured Claimholders hold or are the
beneficial owners of Old Notes and secured claims arising under the Credit
Agreement (the “Credit Agreement Claims” and, together with the Old
Notes, the “Secured Claims”) , representing, in the aggregate more than 662¤3%
of the principal amount of Old Notes and 100% of the principal amount of the
Credit Agreement Claims and the Silver Point Entities and the Other Secured
Claimholders are willing to agree on the terms and subject to conditions set
forth herein, to vote (or, in the case of managed or advised accounts, instruct
its custodial agents to vote) to accept the Plan in the Chapter 11 Cases;

NOW, THEREFORE, in
consideration of the premises and mutual covenants and agreements set forth
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto, intending to
be legally bound hereby, agree as follows:

Section 1.               Means for Effectuating the
Restructuring.  To implement the
Restructuring, the members of the Granite Group have agreed, on the terms and
subject to the conditions set forth herein, to consummate the Restructuring by
means of the Plan, the requisite acceptances of which will be solicited after
the Debtors commence the Chapter 11 Cases by filing voluntary petitions
(collectively, the “Petitions”) under the Bankruptcy Code, and to use
their commercially reasonable efforts to have such Plan confirmed by the
Bankruptcy Court as expeditiously as possible under the Bankruptcy Code, the
Federal Rules of Bankruptcy Procedure, and the local bankruptcy rules of the
Bankruptcy Court (the federal and local rules being referred to herein as the “Bankruptcy
Rules”).

Section 2.               Conduct
of Business Pending the Consummation Date of Plan.  The members of the Granite Group agree that,
prior to the effective date of the Plan and prior to termination of this
Agreement pursuant to section 6 below, unless otherwise expressly permitted by
this Agreement or with Silver Point Consent:

(1)                                  Capitalized
terms not otherwise defined herein shall have the meanings ascribed to them in
the Plan.

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(a)  Each member of the Granite Group, shall not
directly or indirectly do or permit to occur any of the following: (i) issue,
sell, pledge, dispose of or encumber any additional shares of, or any options,
warrants, conversion privileges or rights of any kind to acquire any shares of,
any of its equity interests including, without limitation, capital stock or
partnership interests, provided, however, that the Company may
issue the Plan Securities subject to the terms of the Plan; (ii) amend or
propose to amend its respective articles of incorporation, bylaws or comparable
organizational documents; (iii) split, combine or reclassify any outstanding
shares of its capital stock or other equity interests, or declare, set aside or
pay any dividend or other distribution payable in cash, stock, property or
otherwise with respect to any of its equity interests; (iv) redeem, purchase or
acquire or offer to acquire any of its equity interests including, without
limitation, capital stock or partnership interests; (v) acquire or divest (by
merger, exchange, consolidation, acquisition of stock or assets or otherwise)
any corporation, partnership, limited liability company, joint venture or other
business organization or division or assets thereof having a book value in
excess of $5 million; (vi) incur any indebtedness for borrowed money or issue
any debt securities, except (x) pursuant to the Plan, (y) any debtor-in-possession
financing from the Silver Point Entities under the DIP Credit Agreement as part
of or in connection with the Chapter 11 Cases, or (z) intercompany indebtedness
incurred in compliance with the provisions of the draft DIP Credit Agreement attached
hereto as Exhibit E; (vii) enter into any executive employment
agreements other than the New Employment Agreements as set forth in the Plan;
(viii) enter into any non-executive employment agreements other than employment
agreements consistent with past practice including in terms of compensation and
duration; (ix)  allow or settle Claims or
any pending litigation (except for Convenience Claims pursuant to the Plan and
the WB Settlement Agreement attached hereto as Exhibit D (with any
changes thereto (other than ministerial changes) subject to Silver Point
Consent) for more than $750,000 in the aggregate for all such Claims and
pending litigation without Silver Point Consent; or (x) enter into or
modify any agreement with respect to any of the matters set forth in this
Section 2(a); and

(b)  The members of the Granite Group shall (i)
maintain their good standing under the laws of the State or other jurisdiction
in which they are incorporated or organized, and (ii) notify the Parties of any
governmental or third party complaints, litigations, investigations or hearings
(or communications indicating that the same may be contemplated or threatened),
in either case of clause (i) or clause (ii), which could reasonably be
anticipated to materially adversely affect the business, property, or financial
condition of the Granite Group considered as one enterprise.

Section 3.               Support for the Plan.  (a) 
Each of the Silver Point Entities and the Other Secured Claimholders
agree and covenant with the members of the Granite Group in connection with the
commencement of the Chapter 11 Cases, but prior to the termination of this
Agreement pursuant to Section 6 below, subject to approval by the Bankruptcy
Court of a Disclosure Statement substantially in the form of Exhibit B
(the “Disclosure Statement”), with any changes thereto (other than
ministerial changes) subject to Silver Point Consent, and other solicitation
materials in respect of the Plan as containing “adequate information” under
section 1125 of the Bankruptcy Code:

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(i)            in
connection with any solicitation of ballots by the Debtors with respect to the
Plan, so long as such Plan contains terms and conditions effectuating the
Restructuring which substantially conform in all respects to this Agreement and
the Plan (with any changes thereto (other than ministerial changes) subject to
Silver Point Consent), it will vote its Claims (including but not limited to
the Secured Claims) to accept the Plan by delivering its duly executed and
timely completed ballot or ballots accepting the Plan to the Voting Agent;

(ii)           it
will not (v) object to, delay, or take any other action to interfere, directly
or indirectly, in any respect with acceptance or implementation of the Plan, so
long as the Plan contains terms and conditions effectuating the Restructuring
that substantially conform in all respects to this Agreement and the Plan (with
any changes thereto (other than ministerial changes) subject to Silver Point
Consent, (w) encourage any person or entity to do any of the foregoing,
(x) directly or indirectly seek, solicit, propose, file, support,
encourage, or vote for any plan of reorganization for the Company other than
the Plan, unless consented to by the Parties hereto, (y) oppose any of the
motions set forth on Exhibit C that are in the form for which Silver
Point Finance has provided Silver Point Consent, or (z) take any other
action, including but not limited to, initiating any legal proceeding, that is
materially inconsistent with, or that would prevent or delay consummation of,
the Restructuring.

(b)  Notwithstanding anything to the contrary
herein, nothing contained herein shall prevent the Silver Point Entities or the
Other Secured Claimholders from taking any actions (or refraining from taking
any actions), or from revoking any vote or consent previously given, at any
time at or following the termination of this Agreement pursuant to Section 6,
or from taking any action (or refraining from taking any actions) with respect
to the Non-Debtor Subsidiaries, or from enforcing their rights under this
Agreement.  In the event any Non-Debtor
Subsidiary subsequently becomes a debtor under the Bankruptcy Code, the Parties
agree to work in good faith to amend the Plan and related documents (to the
extent necessary, if at all, including in regards to any additional Convenience
Classes) and to amend as necessary the dates contained in Section 6 paragraphs
(vi) and (viii) of this Agreement.

Section 4.               Representations and Warranties.

(a)  Each of the members of the
Granite Group jointly and severally represents and warrants to each of the
other Parties that the following statements are true, correct and complete as
of the date hereof:

(i)                    Power and Authority.  It has all requisite power and authority to
enter into this Agreement and to carry out the transactions contemplated by,
and perform its respective obligations under, this Agreement.

(ii)                   Authorization.  The execution and delivery of this Agreement
and the performance of its obligations hereunder have been duly authorized by
all necessary action on its part.

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(iii)                  No Conflicts.  The execution, delivery, and performance by
it of this Agreement (other than the chapter 11 filings and borrowings and
liens granted under the DIP Credit Agreement) does not, and shall not (i) violate
any provision of law, rule, or regulation applicable to it or its certificate
of incorporation or by-laws (or other organizational documents) or those of any
of its subsidiaries or (ii) conflict with, result in a breach of or constitute
(with due notice or lapse of time or both) a default under any material
contractual obligation to which any member of the Granite Group is a party
other than agreements that will be in default as a result of filing the Chapter
11 Cases.

(iv)                  Governmental Consents.  The execution, delivery, and performance by
it of this Agreement does not, and shall not, require any registration or
filing with, consent or approval of, or notice to, or other action to, with, or
by, any federal, state, or other governmental authority or regulatory body
other than the (a) Federal Communications Commission; (b) pursuant to
the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”);
(c) the Bankruptcy Court; and (d) pursuant to the Securities Exchange
Act of 1934, as amended.

(v)                   Binding Obligation.  This Agreement is the legally valid and
binding obligation of it, enforceable against it in accordance with its terms,
except as enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium, or other similar laws relating to, or limiting, creditors’ rights
generally, or by equitable principles relating to enforceability.

(vi)                  Representation by Counsel.  Each member of the Granite Group hereto
acknowledges that it has been represented by counsel in connection with this
Agreement and the transactions contemplated by this Agreement.

(b)  Each of the Silver Point
Entities represent and warrant to the other Parties that the following
statements are true, correct and complete as of the date hereof:

(i)                    Power and Authority.  It has all requisite power and authority to
enter into this Agreement and to carry out the transactions contemplated by,
and perform its respective obligations under, this Agreement.

(ii)                   Authorization.  The execution and delivery of this Agreement
and the performance of its obligations hereunder have been duly authorized by
all necessary action on its part.

(iii)                  No Conflicts.  The execution, delivery, and performance by
it of this Agreement does not, and shall not (i) violate any provision of law,
rule, or regulation applicable to it or its certificate of incorporation or
by-laws (or other organizational documents) or those of any of its
subsidiaries, or (ii) conflict with, result in a breach of or constitute (with
due notice or lapse of time or both) a default under any material contractual
obligation to which such Silver Point Entity is a party.

(iv)                  Binding Obligation.  This Agreement is the legally valid and
binding obligation of it, enforceable against it in accordance with its terms,
except as enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium, or other similar laws relating to, or limiting, creditors’ rights
generally, or by equitable principles relating to enforceability.

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(v)                   Representation
by Counsel.  The Silver Point
Entities hereto acknowledge that they has been represented by counsel in
connection with this Agreement and the transactions contemplated by this
Agreement.

(vi)                  Beneficial Ownership.  The Silver Point Entities represent and
warrant to the Company that, together with the Other Secured Claimholders, such
entities in the aggregate are the beneficial owners of more than 66 2/3% of the
principal amount of Old Notes and 100% of the principal amount of the Credit
Agreement Claims, as of the date hereof, and/or have the power to vote and
dispose of such holdings on behalf of the beneficial owners of such amounts.

(c)  Each of the Other Secured
Claimholders represents and warrants to the other Parties that the following
statements are true, correct and complete as of the date hereof:

(i)                    Power and Authority.  It has all requisite power and authority to
enter into this Agreement and to carry out the transactions contemplated by,
and perform its respective obligations under, this Agreement.

(ii)                   Authorization.  The execution and delivery of this Agreement
and the performance of its obligations hereunder have been duly authorized by
all necessary action on its part.

(iii)                  No Conflicts.  The execution, delivery, and performance by
it of this Agreement does not, and shall not (i) violate any provision of law,
rule, or regulation applicable to it or its certificate of incorporation or
by-laws (or other organizational documents) or those of any of its subsidiaries,
or (ii) conflict with, result in a breach of or constitute (with due notice or
lapse of time or both) a default under any material contractual obligation to
which such Other Secured Claimholder a party.

(iv)                  Binding Obligation.  This Agreement is the legally valid and
binding obligation of it, enforceable against it in accordance with its terms,
except as enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium, or other similar laws relating to, or limiting, creditors’ rights
generally, or by equitable principles relating to enforceability.

(v)                   Representation by Counsel.  Each of the Other Secured Claimholder hereto
acknowledges that it has been represented by counsel in connection with this
Agreement and the transactions contemplated by this Agreement.

(vi)                  Beneficial Ownership.  Each of the Other Secured Claimholders
represent and warrant to the Company that it is the beneficial owner of Secured
Claims and/or has the power to vote and dispose of  holdings on behalf of the beneficial owners
of such Claims.

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Section 5.               Covenants.

(a)  Each of the Silver Point
Entities and the Other Secured Claimholders covenants that: from the date
hereof until the termination of this Agreement pursuant to Section 6 below (the
“Forbearance Period”), it shall not sell, pledge, hypothecate, loan or
otherwise transfer any Claims except to a purchaser or other entity who agrees
prior to such transfer to be bound by all of the terms of this Agreement with
respect to the relevant Claims being transferred to such purchaser.  This Agreement shall in no way be construed
to preclude any Party from acquiring additional Claims; provided,  however,
that any such additional Claims shall automatically be deemed to be subject to
all of the terms of this Agreement. 
Silver Point Finance agrees  to
notify the Company within five (5) business days if the Silver Point Entities
beneficially own, in the aggregate, less than 331¤3%
of the Secured Claims.

(b)  Each of the Silver Point
Entities and the Other Secured Claimholders further covenants that, during the
Forbearance Period, it will (i) not file a notice of default or take any
other action to collect on the Claims from the Debtors, including, without
limitation, instructing the Trustee of the Notes on how to proceed in the
exercise of any and all remedies with respect to the Debtors, (ii) give
instructions to the Trustee, if and when reasonably appropriate, to desist from
taking action that is inconsistent with this Agreement or the Restructuring;
and (iii) not exercise the rights granted under section 11 of the Credit
Agreement.  This Agreement shall not
constitute an agreement to forbear from taking action against the Non-Debtor
Subsidiaries.

(c)  The Silver Point Entities,
the Other Secured Claimholders, and each member of the Granite Group agrees to
use its commercially reasonable efforts to (i) support and complete the
Restructuring, (ii) do all things reasonably necessary and appropriate in
furtherance thereof, and to use its commercially reasonable efforts to complete
the same as promptly as possible, including, without limitation, taking all
steps necessary and desirable to obtain an order of the Bankruptcy Court
confirming the Plan as expeditiously as possible under the Bankruptcy Code and
other applicable law, and obtain any and all required regulatory and/or
third-party approvals for the Restructuring.

(d)  Each Party hereby further
covenants and agrees to negotiate the definitive documents relating to the
Restructuring, including, without limitation, all documents, motions, and
orders pertaining to the Chapter 11 Cases, in good faith.  The Company shall keep Silver Point Finance
apprised of any discussions, negotiations or meetings with: any official
committee appointed pursuant to section 1102 of the Bankruptcy Code; Twentieth
Century Fox Film Corporation and any of its agents or affiliates; Harbinger
Capital Partners Master Fund I, Ltd. and any of its agents and affiliates;
Golden Tree Asset Management, LP and any of its agents or affiliates; the
WB/CBS Entities and any of their agents or affiliates; any parties to an
affiliation agreement with a member of the Granite Group and any of such
parties’ agents; any creditor who holds a Claim having a face amount of more
than $3 million; and any interest holder who holds more than 5% of Granite’s outstanding
preferred or common stock.

Section 6.               Termination.  This Agreement and the Forbearance Period
shall terminate upon the earlier of a Silver Point Termination Event (as
defined below) or a Company Termination Event (as defined below).  If this Agreement terminates as a result of a
Silver Point Termination Event, other than a Silver Point Termination Event
listed in paragraphs (xvii) and (xxiii), such termination shall be effective
upon the earlier of (i) if Silver Point Finance gives notice to the Company of
the occurrence of a Silver Point Termination Event, the date that is

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three (3) days from the
date of such notice, and (ii) during the period after the Chapter 11 Cases have
commenced, the third day following the occurrence of a Silver Point Termination
Event (without the need for any action by either party), unless Silver Point
Finance gives notice of its election not to terminate this Agreement within
such three (3) day period.   If this
Agreement terminates as a result of a Silver Point Termination Event listed in
paragraphs (xvii) or (xxiii), such termination shall be effective upon the
earlier of (i) if Silver Point Finance gives notice to the Company of the
occurrence of a Silver Point Termination Event, the date that is five (5) days
from the date of such notice unless the Granite Group shall have cured the
outstanding default during such five (5) day period, and (ii) if the Company
gives notice to Silver Point Finance of a Silver Point Termination Event, the
fifth day following such, unless Silver Point Finance gives notice of its
election not to terminate this Agreement or the Granite Group shall have cured
the outstanding default, in either case within such five (5) day period.  If this Agreement terminates at a time when
permission of the Bankruptcy Court shall be required for the Silver Point
Entities or the Other Secured Claimholders to change or withdraw (or cause to
be changed or withdrawn) their votes to accept the Plan, the Debtors shall not
oppose any attempt by the Silver Point Entities or the Other Secured
Claimholders to change or withdraw (or cause to be changed or withdrawn) such
votes at such time.  Upon the occurrence
of a Silver Point Termination Event or a termination of this Agreement by the
Company after the occurrence of a Company Termination Event, (i) the Silver
Point Entities and the Other Secured Claimholders shall have all rights and
remedies available to them under the Indenture, other documents relating to the
Old Notes, the Credit Agreement, other documents relating to the Term Loans,
applicable law, or otherwise, with respect to any default under the Indenture
that may have occurred at any time prior to such event and (ii) the obligations
of each of the Parties hereunder shall thereupon terminate and be of no further
force and effect with respect to each Party.

A “Silver Point
Termination Event” shall mean any of the following:

(i)            The Restructuring shall not have
been approved by the board of directors of each of the members of the Granite
Group on or before December 11, 2006;

(ii)           The Chapter 11 Cases have not been
commenced (the “Petition Date”) by December 12, 2006;

(iii)          Subject to the provisions of Section 3
(b) of this Agreement, any Debtor shall file a plan of reorganization other
than the Plan, or if the Plan provides, or is modified to provide, for any
terms that are not substantially consistent with this Agreement except for
changes thereto (other than ministerial changes) subject to Silver Point
Consent;

(iv)          After the Plan is filed, any Debtor
(y) submits a second or amended plan of reorganization that does not
incorporate all the terms set forth in this Agreement and the Plan attached as Exhibit
A hereto, or (z) withdraws (or moves to withdraw) the Plan;

(v)           The Plan and Disclosure Statement
have not been filed with the Bankruptcy Court within two (2) days after the
Petition Date (the “Plan and Disclosure Statement Filing Date”);

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(vi)          The Disclosure Statement shall not
have been approved by the Bankruptcy Court within 45 days of the Plan and
Disclosure Statement Filing Date;

(vii)         The DIP Credit Agreement is not
approved on an interim basis within 15 days of the Petition Date and on a final
basis within 45 days of the Petition Date;

(viii)        The Plan shall not have been confirmed
by the Bankruptcy Court within 60 days from the date upon which the Bankruptcy
Court enters an order approving the Disclosure Statement;

(ix)           The Plan shall not have been
consummated in accordance with its terms within 20 days from the date upon
which the Bankruptcy Court enters an order confirming the Plan, provided
however, that solely in the event such failure is caused by a delay in
obtaining the necessary approvals from the FCC, the Plan shall not have been
consummated in accordance with its terms by the earlier of (a) ten (10) business
days after receipt of the necessary approvals from the FCC and (b) July 1,
2007;

(x)            Any of the Chapter 11 Cases are
converted to a case under chapter 7 of the Bankruptcy Code;

(xi)           Any network affiliation agreement to
which any member is of the Granite Group is a party is terminated or amended in
any material respect without Silver Point Consent;

(xii)          Any license (“FCC License”)
issued by the Federal Communications Commission (the “FCC”) and held by
any member of the Granite Group or by Malara Broadcast Group, Inc. (“Malara”
and together with its subsidiaries, the “Malara Group”) which is a main
station license or otherwise material to the lawful ownership, lease, control,
use, operation, management or maintenance of any broadcast station or other broadcasting
property of the Granite Group or the Malara Group shall be cancelled,
terminated, rescinded, revoked, suspended, impaired, otherwise finally denied
renewal, or otherwise modified in any material adverse respect, or shall be
renewed on terms that materially and adversely affect the economic or
commercial value or usefulness thereof; or any such FCC License shall no longer
be in full force and effect; or the grant of any such FCC License shall have
been stayed, vacated or reversed, or modified in any material adverse respect,
by judicial or administrative proceedings; or any administrative law judge of
the FCC shall have issued an initial decision in any non-comparative license
renewal, license revocation or any comparative (multiple applicant) proceeding
to the effect that any such FCC License should be revoked or not be renewed; or
any other proceeding shall have been instituted by or shall have been commenced
before any court, the FCC or any other regulatory body that more likely than
not will result in such cancellation, termination, rescission, revocation,
impairment or suspension of any such FCC License or result in any materially
adverse modification of any such FCC License; or any member of the Granite
Group or the Malara Group shall no longer be the holder of an FCC License
constituting a television translator license material to the lawful ownership,
lease, control, use, operation, management or maintenance of any broadcast
station or other broadcasting property of such member or a main station license
for the stations as a result of any decision issued by the FCC;

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(xiii)         [RESERVED]

(xiv)        The waiting period under the HSR Act
shall not have expired or been terminated by the date which is 45 days after
the date specified in paragraph (xxix) below;

(xv)         The Company’s reporting obligations
under the Securities and Exchange Act of 1934 shall not have terminated by that
date which is the later of (i) 90 days following the filing of the documents
and forms referenced in paragraph (xxx) below and (ii) two (2) business days
prior to the commencement of the Confirmation Hearing;

(xvi)        A trustee or examiner (with powers
beyond those in sections 1106(A) (3) and (4) of the Bankruptcy Code) is
appointed pursuant to sections 1104 or 1105 of the Bankruptcy Code in
connection with the Chapter 11 Cases; (ii) the Chapter 11 Cases are
dismissed; or (iii) the order confirming the Plan is reversed on appeal or
vacated;

(xvii)       Any member of the Granite Group shall
breach any of its obligations under this Agreement, including, but not limited
to, failing to use its commercially reasonable efforts to obtain approval of
the Disclosure Statement and confirmation of the Plan, and any such breach by
such member of the Granite Group is not cured within five (5) days after receipt
of written notice from Silver Point Finance of such breach;

(xviii)      Any court of competent jurisdiction or
other competent governmental or regulatory authority shall have issued an order
making illegal or otherwise restricting, preventing, or prohibiting the Plan in
a way that cannot be reasonably remedied by the members of the Granite Group
and such restriction, prevention, or prohibition adversely effects any Silver
Point Entity, the Other Secured Claimholders, the recoveries by the holders of
Secured Claims under the Plan, or any member of the Granite Group;

(xix)         Any or all of the Debtors’ exclusive
periods (as provided for in section 1121 of the Bankruptcy Code) to (a) file a
plan of reorganization or (b) solicit acceptances thereof are terminated or
expire;

(xx)          Any Non-Debtor Subsidiary which
becomes a debtor under the Bankruptcy Code files a plan (other than the Plan)
without Silver Point Consent;

(xxi)         Failure to pay in a timely manner the
fees and expenses of the Silver Point Entities incurred in connection with this
Agreement, the Plan and the transactions contemplated hereby and thereby;

(xxii)        The Bankruptcy Court grants relief that
is inconsistent with the Plan and materially adverse to the Silver Point
Entities, including, without limitation, the termination, annulment, or
modification of the automatic stay (as set forth in section 362 of the
Bankruptcy Code) with regard to any material assets of any member of the
Granite Group;

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(xxiii)       There shall have occurred, directly or
indirectly, after the date hereof and before the effective date of the Plan,
any Material Adverse Change (as defined below). 
A “Material Adverse Change” shall mean any member of the Granite
Group shall have suffered any loss, including, without limitation, any damage,
destruction or interruption in use, of any of its properties, facilities or
assets, which has had or would reasonably be expected to have an adverse effect
on such member of the Granite Group (taking into account the availability of
any insurance coverage for such loss) which could be expected to result in an
economic loss (including, without limitation, by way of a diminution in value,
profits, cash flow or otherwise) in excess of $10 million in the aggregate and
cumulatively, and any such Material Adverse Change is not cured within five (5)
days after receipt of written notice from Silver Point Finance of such change;

(xxiv)       The Granite Group’s Broadcast Cash Flow
for the three month period ending on the last day of each month commencing with
the month ended December 31, 2006 through the effective date of the Plan shall
be less than the amount set forth on Schedule I attached hereto.  For purposes of this Agreement, “Broadcast
Cash Flow” shall mean, for any period, operating income or loss plus
depreciation and amortization, restructuring and litigation expenses, corporate
expense, non-cash compensation and program amortization, less program payments,
all as determined on a consolidated basis for the members of the Granite Group
in accordance with GAAP; provided that (A) there shall be excluded
(i) the Broadcast Cash Flow of any entity (other than a member of the
Granite Group) in which any other person or entity (other than a member of the
Granite Group) has a joint interest, except to the extent of the amount of
dividends or other distributions actually paid in cash to a member of the
Granite Group by such entity during such period, (ii) the Broadcast Cash
Flow of any entity accrued prior to the date it becomes a subsidiary of the
Company or is merged into or consolidated with a subsidiary of the Company or
that entity’s assets are acquired by the Company or a subsidiary of the
Company, (iii) any after-tax gains or losses attributable to asset sales
or returned surplus assets of any pension plan, and (iv) (to the extent
not included in clauses (i) through (iii) above) any net extraordinary
gains or net non-cash extraordinary losses. 
Broadcast Cash Flow of Malara will be included in the calculation of
Broadcast Cash Flow

(xxv)        The Debtors have moved for, or the
Bankruptcy Court shall have entered, an order authorizing or directing the
Debtors to assume an executory contract or unexpired lease without Silver Point
Consent (other than programming contracts and leases of real property), only if
the cure amount and future contractual obligations under, as of the date of
such assumption, of any member of the Granite Group under such executory
contract or unexpired lease exceeds $1,000,000 in the aggregate for all such
contracts or leases;

(xxvi)       W. Don Cornwell shall (i) object to the
Plan; (ii) solicit rejections of the Plan; (iii) support any objection to the
Plan; or (iv) if solicited, vote to reject the Plan;

 11
 

 

(xxvii)      The Plan Supplement, in a form and
substance satisfactory to Silver Point Finance shall not have been filed by the
date which is five (5) days prior to the commencement of the Confirmation
Hearing;

(xxviii)      The Granite Group’s portion of the
application for approval of the Restructuring by the Federal Communications
Commission shall not be complete, ready to be filed, and provided to Silver
Point by January 10, 2007;

(xxix)       The Granite Group’s portion of any
notification or Request Form under the HSR Act is not complete and filed by
January 10, 2007; or

(xxx)        Any necessary documents and forms shall
be not have been filed, and any necessary proceedings shall have not have been
commenced with the Securities and Exchange Commission seeking to terminate the
Company’s reporting obligations under the Securities Exchange Act of 1934 by
December 26, 2006.

The foregoing Silver
Point Termination Events are intended solely for the benefit of  the Silver Point Entities and any waiver by a
Silver Point Entity shall be in writing.

The Company shall
have the right to terminate (a “Company Termination Event” and, together
with Silver Point Termination Event, a “Termination Event”) this
Agreement, by the giving of written notice thereof to Silver Point
Finance.  A “Company Termination Event
shall mean the following:

(i)            If this Agreement is materially
breached by the Silver Point Entities and any such breach by the Silver Point
Entities is not cured with five (5) days after receipt of written notice from
the Company of such breach;

(ii)           The board of directors of the Granite
Group has determined in good faith, after consultation with outside legal
counsel, that the taking of any action under this Agreement would be
inconsistent with its fiduciary obligations;

(iii)          Silver Point Finance shall have failed
to provide Silver Point Consent to all motions set forth on Exhibit C provided
to Silver Point Finance within 1 (one) day of the date on which the Granite
Group provides such motion (in final form) to Silver Point Finance for its
review;

(iv)          The Effective Date of the Plan shall
not have occurred on or before December 31, 2007;

(v)           The Silver Point Entities’ portion of
the application for approval of the Restructuring by the Federal Communications
Commission shall not be complete and ready to be filed by January 10, 2007; or

(vi)          The Silver Point Entities’ portion of
any notification or Request Form under the HSR Act is not complete and filed by
January 10, 2007.

 12
 

 

At any time after a
Termination Event has occurred, Silver Point Finance or the Company, as
applicable, may waive the occurrence of any Termination Event in accordance
with the requirements set forth in Section 17 below.  No such waiver shall effect any subsequent
Termination Event or impair any right consequent thereon.

Upon the Effective Date of
the Plan, all obligations under this Agreement shall terminate and this
Agreement shall be of no further force and effect.

Section 7.               Amendments.  This Agreement may not be modified, amended,
or supplemented, except in a writing signed by the Parties.

Section 8.               Governing Law; Jurisdiction.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York, without regard
to applicable principles of conflict of laws.

Section 9.               Notices.  All demands, notices, requests, consents, and
communications hereunder shall be in writing and shall be deemed to have been
duly given if personally delivered by courier service, messenger, telecopy,
facsimile, or if duly deposited in the mails, by certified or registered mail,
postage prepaid-return receipt requested, to the following addresses, or such other
addresses as may be furnished hereafter by notice in writing, to the following
Parties:

If to the Granite Group, to:

Granite Broadcasting
Corporation

767 Third Avenue

New York, NY 10017

Facsimile No.:  (212) 826-2858

Attn:  Larry Wills

with a copy to:

Akin Gump Strauss Hauer
& Feld LLP

590 Madison Avenue

New York, NY 10022

Facsimile No.:  (212) 872-1002

Attn:  Ira Dizengoff, Esq.

Akin Gump Strauss Hauer
& Feld LLP

Robert S. Strauss Building

1333 New Hampshire Avenue,
NW

Washington, DC 20036

Facsimile No.:  (202) 955-7631

Attn:  Russell W. Parks, Jr.

 13
 

 

If to
the Silver Point Entities to:

Silver Point Finance, LLC

Two Greenwich Plaza, 1st Floor 

Greenwich, CT 06830

Facsimile No.: (203) 542-4306

Attn:  David L. Sawyer

with a copy to:

Milbank, Tweed, Hadley &
McCloy LLP

One Chase Manhattan Plaza

New York, NY 10005-1413

Facsimile No.:  (212) 530-5219

Attn:  Luc A. Despins, Esq.

          Thomas C. Janson

Section 10.             Reservation of Rights.  This Agreement and the Restructuring are part
of a proposed settlement of all disputes among the Parties hereto.  Except as expressly provided in this
Agreement and the Plan, nothing therein is intended to, or does, in any manner,
waive, limit, impair, or restrict the ability of the Silver Point Entities, the
Other Secured Claimholders, or any member of the Granite Group to protect and
preserve their respective rights, remedies, and interests, including, without
limitation, any claims against the other Party. 
Except as expressly provided herein, nothing herein effects any modification
of the Parties’ rights under the Indenture and Credit Agreement or any other
documents and agreements relating thereto unless and until the Restructuring
becomes effective.  If the transactions
contemplated herein and in the Plan are not consummated, or if this Agreement
is terminated for any reason, the Parties hereto fully reserve any and all of
their respective rights and remedies under this Agreement.  Pursuant to Federal Rule of Evidence 408 and
any applicable state rules of evidence, this Agreement and all negotiations
relating hereto, shall not be admissible into evidence in any proceeding other
than a proceeding to enforce its terms.

Section 11.             Entire Agreement.  This Agreement constitutes the entire
understanding and agreement among the Parties with regard to the subject matter
hereof, and supersedes all prior agreements with respect thereto.

Section 12.             Headings.  The headings of the paragraphs and
subparagraphs of this Agreement are inserted for convenience only and shall not
affect the interpretation hereof.

Section 13.             Successors and Assigns.  This Agreement is intended to bind and inure
to the benefit of the Parties and their respective permitted successors and
assigns.

Section 14.             Specific Performance.  Each Party hereto recognizes and acknowledges
that a breach by it of any covenants or agreements contained in this Agreement
may cause the other Parties to sustain damages for which such Parties would not
have an adequate remedy at law for money damages, and therefore each Party
hereto agrees that in the sole event of any such breach the other Parties shall
be entitled to seek the remedy of specific performance of such covenants and
agreements and injunctive and other equitable relief in addition to any other
remedy to which such Parties may be entitled, at law or in equity.

 14
 

 

Section 15.             Several, Not Joint, Obligations.  Except as otherwise specified herein, the
agreements, representations, and obligations of the Parties under this
Agreement are, in all respects, several and not joint; provided, however, that
obligations of the members of the Granite Group shall be joint and several.

Section 16.             Remedies Cumulative.  All rights, powers, and remedies provided
under this Agreement or otherwise available in respect hereof at law or in
equity shall be cumulative and not alternative, and the exercise of any right,
power or remedy thereof by any Party shall not preclude the simultaneous or
later exercise of any other such right, power, or remedy by such Party.

Section 17.             No Waiver.  The failure of any Party hereto to exercise
any right, power, or remedy provided under this Agreement or otherwise
available in respect hereof at law or in equity, or to insist upon compliance
by any other Party hereto with its obligations hereunder, and any custom or
practice of the Parties at variance with the terms hereof, shall not constitute
a waiver by such Party of its right to exercise any such or other right, power,
or remedy or to demand such compliance. 
The members of the Granite Group acknowledge that entry into this
Agreement and support of the Restructuring and the transactions contemplated
thereunder shall not constitute an implied or express waiver by any holder of
Old Notes with respect to the rights contained in section 3.7 of the Indenture.

Section 18.             Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which shall
constitute one and the same Agreement. 
Delivery of an executed signature page of this Agreement by telecopier
or facsimile shall be as effective as delivery of a manually executed signature
page of this Agreement.

Section 19.             Severability.  Any provision of this Agreement that 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 or affecting the validity or
enforceability of such provision in any other jurisdiction.  The provisions of this Agreement shall be
interpreted in a reasonable manner to effect the intent of the Parties hereto.

Section 20.             No Third-Party Beneficiaries.  Unless expressly stated herein, this
Agreement shall be solely for the benefit of the Parties, and no other person
or entity shall be a third-party beneficiary hereof.

Section 21.             Additional Parties.  Without in any way limiting the provisions
hereof, additional holders of Secured Claims may elect to become Parties by
executing and delivering to the Company and the Silver Point  Entities a counterpart hereof.  Such additional holder shall become a Party
to this Agreement in accordance with the terms of this Agreement.

Section 22.             Disclosure of Holdings.  Unless required by applicable law or
regulation, the Granite Group shall not disclose the identity of any Other
Secured Holder or any individual Silver Point Entity without the prior written
consent of such holder or entity; and if

 15
 

 

such
announcement or disclosure is so required by law or regulation, the Granite
Group shall afford such holders a reasonable opportunity to review and comment
upon any such announcement or disclosure prior to the Granite Group’s making
such announcement or disclosure.  The
foregoing shall not prohibit  the Granite
Group from disclosing that, as a group, the Parties to this Agreement hold, in
the aggregate, more than 66 2/3% of the principal amount outstanding of the Old
Notes and 100% of the principal amount outstanding of the Credit Agreement
Claims.

[Signature
Page Follows]

 16

 

 

IN WITNESS WHEREOF, the
Parties hereto have duly executed and delivered this Agreement as of the date
first above written.

	
  

  	
   

  	
  GRANITE BROADCASTING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name: W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CHANNEL 11 LICENSE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name:  W. Don
  Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title: 
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GRANITE RESPONSE TELEVISION, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name:  W. Don
  Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title:  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  KBJR LICENSE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name:  W. Don
  Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title:  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  KBJR, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name:  W. Don
  Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title:  President

  

 

 

 

	
  

  	
   

  	
  KBWB LICENSE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name: W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  KBWB, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name: W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  KSEE LICENSE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name: W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  KSEE TELEVISION, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name: W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  QUEEN CITY BROADCASTING OF NEW YORK, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name: W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

	
  

  	
   

  	
  WEEK-TV LICENSE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name: W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WKBW-TV LICENSE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name: W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WTVH LICENSE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name: W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WXON LICENSE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name: W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WXON, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name: W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WISE-TV, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name: W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

	
  

  	
   

  	
  WISE-TV LICENSE, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name: W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WBNG, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name: W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WBNG LICENSE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name: W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WTVH, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:  GRANITE
  BROADCASTING

  CORPORATION, the Sole Member of WTVH, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ W. Don Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Name:  W. Don
  Cornwell

  
	
   

  	
   

  	
   

  	
   

  	
  Title:  President

  

 

 

 

	
  

  	
   

  	
  SILVER POINT FINANCE, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Richard Petrilli

  
	
   

  	
   

  	
   

  	
   

  	
  Name:  Richard
  Petrilli

  
	
   

  	
   

  	
   

  	
   

  	
  Title:  Authorized
  Signatory

  

 

 

 

 

Additional Signature Pages Omitted

 

SCHEDULE I

MINIMUM
BROADCAST CASH FLOW

	
  Three Months
  Ending

  	
   

  	
  Broadcast Cash Flow

  
	
  December 31, 2006

  	
   

  	
  $9,404,000

  
	
  January 31, 2007

  	
   

  	
  $3,606,000

  
	
  February 28, 2007

  	
   

  	
  $4,446,000

  
	
  March 31, 2007

  	
   

  	
  $5,946,000

  
	
  April 30, 2007

  	
   

  	
  $8,107,000

  
	
  May 31, 2007

  	
   

  	
  $9,566,000

  
	
  June 30, 2007

  	
   

  	
  $8,835,000

  
	
  July 31, 2007

  	
   

  	
  $7,339,000Exhibit
10.2

EXECUTION COPY

DEBTOR-IN-POSSESSION
FINANCING AGREEMENT

dated as
of December 11, 2006

among

GRANITE
BROADCASTING CORPORATION,

KBWB LICENSE, INC.,

KBWB, INC.,

WEEK-TV LICENSE, INC.,

WXON LICENSE, INC.,

WXON, INC.,

as Borrowers

VARIOUS
LENDERS,

and

SILVER
POINT FINANCE, LLC,

as Administrative Agent and Collateral Agent

________________________________________________________

Senior Secured Super-Priority
Debtor-in-Possession Facility

________________________________________________________

 

TABLE OF
CONTENTS

	
  SECTION 1.

  	
   

  	
  DEFINITIONS AND INTERPRETATION

  	
   

  	
  1

  
	
  1.1

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  1.2

  	
   

  	
  Accounting Terms

  	
   

  	
  33

  
	
  1.3

  	
   

  	
  Interpretation, etc

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
   

  	
  LOANS

  	
   

  	
  34

  
	
  2.1

  	
   

  	
  Loans

  	
   

  	
  34

  
	
  2.2

  	
   

  	
  [Reserved]

  	
   

  	
  35

  
	
  2.3

  	
   

  	
  [Reserved]

  	
   

  	
  35

  
	
  2.4

  	
   

  	
  Pro Rata Shares; Availability of Funds

  	
   

  	
  36

  
	
  2.5

  	
   

  	
  Use of Proceeds

  	
   

  	
  36

  
	
  2.6

  	
   

  	
  Evidence of Debt; Register; Lenders’ Books and
  Records; Notes

  	
   

  	
  37

  
	
  2.7

  	
   

  	
  Interest on Loans

  	
   

  	
  37

  
	
  2.8

  	
   

  	
  Interest Election Requests

  	
   

  	
  38

  
	
  2.9

  	
   

  	
  Default Interest

  	
   

  	
  38

  
	
  2.10

  	
   

  	
  Fees

  	
   

  	
  39

  
	
  2.11

  	
   

  	
  Repayment of Loans

  	
   

  	
  39

  
	
  2.12

  	
   

  	
  Voluntary Prepayment of Loans/Commitment Reductions

  	
   

  	
  39

  
	
  2.13

  	
   

  	
  Mandatory Prepayments

  	
   

  	
  40

  
	
  2.14

  	
   

  	
  Application of Prepayments

  	
   

  	
  41

  
	
  2.15

  	
   

  	
  General Provisions Regarding Payments

  	
   

  	
  42

  
	
  2.16

  	
   

  	
  Ratable Sharing

  	
   

  	
  43

  
	
  2.17

  	
   

  	
  Making or Maintaining LIBOR Rate Loans

  	
   

  	
  43

  
	
  2.18

  	
   

  	
  Increased Costs; Capital Adequacy; Reserves on LIBOR
  Rate Loans

  	
   

  	
  45

  
	
  2.19

  	
   

  	
  Taxes; Withholding, etc.

  	
   

  	
  46

  
	
  2.20

  	
   

  	
  Obligation to Mitigate

  	
   

  	
  49

  
	
  2.21

  	
   

  	
  Defaulting Lenders

  	
   

  	
  49

  
	
  2.22

  	
   

  	
  Removal or Replacement of a Lender

  	
   

  	
  50

  
	
  2.23

  	
   

  	
  Notices

  	
   

  	
  51

  
	
  2.24

  	
   

  	
  Joint and Several Liability of the Borrowers

  	
   

  	
  51

  
	
  2.25

  	
   

  	
  Agent Right to Charge Loan Account.

  	
   

  	
  52

  
	
  2.26

  	
   

  	
  No Discharge; Survival of Claims.

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
   

  	
  CONDITIONS PRECEDENT

  	
   

  	
  52

  
	
  3.1

  	
   

  	
  Conditions to Interim Facility

  	
   

  	
  52

  
	
  3.2

  	
   

  	
  Conditions to Final Facility Effectiveness

  	
   

  	
  56

  
	
  3.3

  	
   

  	
  Conditions to All Loans

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  57

  
	
  4.1

  	
   

  	
  Organization; Requisite Power and Authority;
  Qualification

  	
   

  	
  57

  
	
  4.2

  	
   

  	
  Capital Stock and Ownership

  	
   

  	
  57

  
	
  4.3

  	
   

  	
  Due Authorization

  	
   

  	
  58

  
	
  4.4

  	
   

  	
  No Conflict

  	
   

  	
  58

  

 

 i
 

 

 

	
  4.5

  	
   

  	
  Governmental Consents

  	
   

  	
  58

  
	
  4.6

  	
   

  	
  Binding Obligation

  	
   

  	
  58

  
	
  4.7

  	
   

  	
  Historical Financial Statements

  	
   

  	
  58

  
	
  4.8

  	
   

  	
  [Reserved]

  	
   

  	
  59

  
	
  4.9

  	
   

  	
  No Material Adverse Change

  	
   

  	
  59

  
	
  4.10

  	
   

  	
  No Restricted Junior Payments

  	
   

  	
  59

  
	
  4.11

  	
   

  	
  Adverse Proceedings, etc

  	
   

  	
  59

  
	
  4.12

  	
   

  	
  Payment of Taxes

  	
   

  	
  59

  
	
  4.13

  	
   

  	
  Properties

  	
   

  	
  60

  
	
  4.14

  	
   

  	
  Environmental Matters

  	
   

  	
  60

  
	
  4.15

  	
   

  	
  No Defaults

  	
   

  	
  61

  
	
  4.16

  	
   

  	
  Material Contracts

  	
   

  	
  61

  
	
  4.17

  	
   

  	
  Governmental Regulation

  	
   

  	
  61

  
	
  4.18

  	
   

  	
  Margin Stock

  	
   

  	
  61

  
	
  4.19

  	
   

  	
  Employee Matters

  	
   

  	
  62

  
	
  4.20

  	
   

  	
  Employee Benefit Plans

  	
   

  	
  62

  
	
  4.21

  	
   

  	
  Certain Fees

  	
   

  	
  62

  
	
  4.22

  	
   

  	
  Administrative Priority; Lien Priority

  	
   

  	
  62

  
	
  4.23

  	
   

  	
  Appointment of Trustee or Examiner; Liquidation

  	
   

  	
  63

  
	
  4.24

  	
   

  	
  Compliance with Statutes, etc

  	
   

  	
  63

  
	
  4.25

  	
   

  	
  Disclosure

  	
   

  	
  63

  
	
  4.26

  	
   

  	
  Terrorism Laws

  	
   

  	
  64

  
	
  4.27

  	
   

  	
  Insurance

  	
   

  	
  64

  
	
  4.28

  	
   

  	
  Common Enterprise

  	
   

  	
  64

  
	
  4.29

  	
   

  	
  [Reserved].

  	
   

  	
  64

  
	
  4.30

  	
   

  	
  Affiliate Transactions

  	
   

  	
  64

  
	
  4.31

  	
   

  	
  Intellectual Property

  	
   

  	
  65

  
	
  4.32

  	
   

  	
  Permits, Etc

  	
   

  	
  65

  
	
  4.33

  	
   

  	
  [Reserved].

  	
   

  	
  65

  
	
  4.34

  	
   

  	
  Budget and Financial Plan

  	
   

  	
  65

  
	
  4.35

  	
   

  	
  Prepetition Obligations.

  	
   

  	
  65

  
	
  4.36

  	
   

  	
  FCC Licenses and Approvals.

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
   

  	
  AFFIRMATIVE COVENANTS

  	
   

  	
  67

  
	
  5.1

  	
   

  	
  Financial Statements and Other Reports

  	
   

  	
  67

  
	
  5.2

  	
   

  	
  Existence

  	
   

  	
  72

  
	
  5.3

  	
   

  	
  Payment of Taxes and Claims

  	
   

  	
  72

  
	
  5.4

  	
   

  	
  Maintenance of Properties

  	
   

  	
  72

  
	
  5.5

  	
   

  	
  Insurance

  	
   

  	
  72

  
	
  5.6

  	
   

  	
  Books and Records; Inspections

  	
   

  	
  73

  
	
  5.7

  	
   

  	
  [Reserved]

  	
   

  	
  73

  
	
  5.8

  	
   

  	
  Compliance with Laws

  	
   

  	
  73

  
	
  5.9

  	
   

  	
  Environmental

  	
   

  	
  74

  
	
  5.10

  	
   

  	
  Subsidiaries

  	
   

  	
  75

  
	
  5.11

  	
   

  	
  Additional Material Real Estate Assets

  	
   

  	
  76

  
	
  5.12

  	
   

  	
  Additional Borrowers.

  	
   

  	
  77

  

 

 ii
 

 

 

	
  5.13

  	
   

  	
  Cash Management System

  	
   

  	
  77

  
	
  5.14

  	
   

  	
  Further Assurances

  	
   

  	
  78

  
	
  5.15

  	
   

  	
  Miscellaneous Business Covenants

  	
   

  	
  78

  
	
  5.16

  	
   

  	
  Use of Proceeds

  	
   

  	
  78

  
	
  5.17

  	
   

  	
  Retention of Advisors

  	
   

  	
  78

  
	
  5.18

  	
   

  	
  Filings

  	
   

  	
  79

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
   

  	
  NEGATIVE COVENANTS

  	
   

  	
  79

  
	
  6.1

  	
   

  	
  Indebtedness

  	
   

  	
  79

  
	
  6.2

  	
   

  	
  Liens

  	
   

  	
  80

  
	
  6.3

  	
   

  	
  No Further Negative Pledges

  	
   

  	
  80

  
	
  6.4

  	
   

  	
  Restricted Junior Payments

  	
   

  	
  80

  
	
  6.5

  	
   

  	
  Restrictions on Subsidiary Distributions

  	
   

  	
  80

  
	
  6.6

  	
   

  	
  Investments

  	
   

  	
  81

  
	
  6.7

  	
   

  	
  Financial Covenants

  	
   

  	
  81

  
	
  6.8

  	
   

  	
  Fundamental Changes; Disposition of Assets;
  Acquisitions

  	
   

  	
  82

  
	
  6.9

  	
   

  	
  Disposal of Subsidiary Interests

  	
   

  	
  82

  
	
  6.10

  	
   

  	
  Sales and Lease Backs

  	
   

  	
  83

  
	
  6.11

  	
   

  	
  Transactions with Shareholders and Affiliates

  	
   

  	
  83

  
	
  6.12

  	
   

  	
  Conduct of Business

  	
   

  	
  83

  
	
  6.13

  	
   

  	
  Excess Cash

  	
   

  	
  83

  
	
  6.14

  	
   

  	
  Amendments or Waivers of Certain Related Agreements

  	
   

  	
  84

  
	
  6.15

  	
   

  	
  Bankruptcy Court Orders; Administrative Priority;
  Lien Priority; Payment of Claims

  	
   

  	
  84

  
	
  6.16

  	
   

  	
  Fiscal Year

  	
   

  	
  85

  
	
  6.17

  	
   

  	
  Deposit Accounts

  	
   

  	
  85

  
	
  6.18

  	
   

  	
  Amendments to Certain Agreements

  	
   

  	
  85

  
	
  6.19

  	
   

  	
  Prepayments of Certain Indebtedness

  	
   

  	
  85

  
	
  6.20

  	
   

  	
  Issuance of Capital Stock

  	
   

  	
  85

  
	
  6.21

  	
   

  	
  Compromise of Accounts Receivable

  	
   

  	
  85

  
	
  6.22

  	
   

  	
  Intercompany Transfers of Loan Proceeds

  	
   

  	
  86

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
   

  	
  [RESERVED]

  	
   

  	
  86

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
   

  	
  EVENTS OF DEFAULT

  	
   

  	
  86

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
   

  	
  AGENTS

  	
   

  	
  91

  
	
  9.1

  	
   

  	
  Appointment of Agents

  	
   

  	
  91

  
	
  9.2

  	
   

  	
  Powers and Duties

  	
   

  	
  91

  
	
  9.3

  	
   

  	
  General Immunity

  	
   

  	
  91

  
	
  9.4

  	
   

  	
  Agents Entitled to Act as Lender

  	
   

  	
  93

  
	
  9.5

  	
   

  	
  Lenders’ Representations, Warranties and
  Acknowledgment

  	
   

  	
  93

  
	
  9.6

  	
   

  	
  Right to Indemnity

  	
   

  	
  93

  
	
  9.7

  	
   

  	
  Successor Administrative Agent

  	
   

  	
  94

  
	
  9.8

  	
   

  	
  Collateral Documents and Guaranty

  	
   

  	
  95

  
	
  9.9

  	
   

  	
  Posting of Approved Electronic Communications

  	
   

  	
  96

  

 

 iii
 

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
   

  	
  SECURITY AND ADMINISTRATIVE PRIORITY

  	
   

  	
  97

  
	
  10.1

  	
   

  	
  Prepetition Obligations

  	
   

  	
  97

  
	
  10.2

  	
   

  	
  Acknowledgment of Security Interests

  	
   

  	
  98

  
	
  10.3

  	
   

  	
  Binding Effect of Documents

  	
   

  	
  98

  
	
  10.4

  	
   

  	
  Collateral; Grant of Lien and Security Interest

  	
   

  	
  98

  
	
  10.5

  	
   

  	
  Administrative Priority

  	
   

  	
  100

  
	
  10.6

  	
   

  	
  Grants, Rights and Remedies

  	
   

  	
  100

  
	
  10.7

  	
   

  	
  No Filings Required

  	
   

  	
  100

  
	
  10.8

  	
   

  	
  Survival

  	
   

  	
  100

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
   

  	
  MANAGEMENT, COLLECTION AND STATUS OF ACCOUNTS
  RECEIVABLE AND OTHER COLLATERAL

  	
   

  	
  101

  
	
  11.1

  	
   

  	
  Collection of Accounts Receivable; Management of
  Collateral

  	
   

  	
  101

  
	
  11.2

  	
   

  	
  Accounts Receivable Documentation

  	
   

  	
  102

  
	
  11.3

  	
   

  	
  Status of Accounts Receivable and Other Collateral

  	
   

  	
  102

  
	
  11.4

  	
   

  	
  Collateral Custodian

  	
   

  	
  103

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  103

  
	
  12.1

  	
   

  	
  Notices

  	
   

  	
  103

  
	
  12.2

  	
   

  	
  Expenses

  	
   

  	
  103

  
	
  12.3

  	
   

  	
  Indemnity

  	
   

  	
  104

  
	
  12.4

  	
   

  	
  Set Off

  	
   

  	
  105

  
	
  12.5

  	
   

  	
  Amendments and Waivers

  	
   

  	
  105

  
	
  12.6

  	
   

  	
  Successors and Assigns; Participations

  	
   

  	
  106

  
	
  12.7

  	
   

  	
  Special Purpose Funding Vehicles

  	
   

  	
  109

  
	
  12.8

  	
   

  	
  Independence of Covenants

  	
   

  	
  110

  
	
  12.9

  	
   

  	
  Survival of Representations, Warranties and
  Agreements

  	
   

  	
  110

  
	
  12.10

  	
   

  	
  No Waiver; Remedies Cumulative

  	
   

  	
  110

  
	
  12.11

  	
   

  	
  Marshalling; Payments Set Aside

  	
   

  	
  110

  
	
  12.12

  	
   

  	
  Severability

  	
   

  	
  111

  
	
  12.13

  	
   

  	
  Obligations Several; Independent Nature of Lenders’
  Rights

  	
   

  	
  111

  
	
  12.14

  	
   

  	
  Headings

  	
   

  	
  111

  
	
  12.15

  	
   

  	
  APPLICABLE LAW

  	
   

  	
  111

  
	
  12.16

  	
   

  	
  CONSENT TO JURISDICTION; SERVICE OF PROCESS AND
  VENUE.

  	
   

  	
  111

  
	
  12.17

  	
   

  	
  WAIVER OF JURY TRIAL

  	
   

  	
  112

  
	
  12.18

  	
   

  	
  Confidentiality

  	
   

  	
  112

  
	
  12.19

  	
   

  	
  Usury Savings Clause

  	
   

  	
  113

  
	
  12.20

  	
   

  	
  Counterparts

  	
   

  	
  114

  
	
  12.21

  	
   

  	
  Effectiveness

  	
   

  	
  114

  
	
  12.22

  	
   

  	
  Patriot Act

  	
   

  	
  114

  
	
  12.23

  	
   

  	
  Disclosure

  	
   

  	
  114

  
	
  12.24

  	
   

  	
  Company as Agent for Borrowers

  	
   

  	
  114

  
	
  12.25

  	
   

  	
  Appointment for Perfection

  	
   

  	
  115

  
	
  12.26

  	
   

  	
  Advertising and Publicity

  	
   

  	
  115

  

 

 iv
 

 

 

	
  APPENDICES:

  	
   

  	
  A

  	
   

  	
  Loan Commitments

  
	
   

  	
   

  	
  B

  	
   

  	
  Notice Addresses

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULES:

  	
   

  	
  1.1(a)

  	
   

  	
  Budget

  
	
   

  	
   

  	
  1.1(b)

  	
   

  	
  Financial Plan

  
	
   

  	
   

  	
  1.1(c)

  	
   

  	
  Network Affiliation Agreements

  
	
   

  	
   

  	
  1.1(d)

  	
   

  	
  Disclosure of Certain Events

  
	
   

  	
   

  	
  3.1(p)

  	
   

  	
  Litigation

  
	
   

  	
   

  	
  4.1

  	
   

  	
  Jurisdictions of Organization and Qualification

  
	
   

  	
   

  	
  4.2

  	
   

  	
  Capital Stock and Ownership

  
	
   

  	
   

  	
  4.11

  	
   

  	
  Adverse Proceedings

  
	
   

  	
   

  	
  4.13

  	
   

  	
  Real Estate Assets

  
	
   

  	
   

  	
  4.16

  	
   

  	
  Material Contracts

  
	
   

  	
   

  	
  4.21

  	
   

  	
  Certain Fees

  
	
   

  	
   

  	
  4.27

  	
   

  	
  Insurance

  
	
   

  	
   

  	
  4.30

  	
   

  	
  Affiliate Transactions

  
	
   

  	
   

  	
  4.31

  	
   

  	
  Intellectual Property

  
	
   

  	
   

  	
  4.35

  	
   

  	
  Prepetition Obligations

  
	
   

  	
   

  	
  4.36

  	
   

  	
  FCC Licenses and Approvals

  
	
   

  	
   

  	
  5.18

  	
   

  	
  Certain Post Closing Matters

  
	
   

  	
   

  	
  6.1

  	
   

  	
  Certain Indebtedness

  
	
   

  	
   

  	
  6.2

  	
   

  	
  Certain Liens

  
	
   

  	
   

  	
  6.6

  	
   

  	
  Certain Investments

  
	
   

  	
   

  	
  6.21

  	
   

  	
  Compromise Accounts Receivable

  
	
   

  	
   

  	
  6.11

  	
   

  	
  Certain Affiliate Transactions

  
	
   

  	
   

  	
  6.21

  	
   

  	
  Payments

  
	
   

  	
   

  	
  11.1

  	
   

  	
  Lockboxes

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS:

  	
   

  	
  A-1

  	
   

  	
  Funding Notice

  
	
   

  	
   

  	
  A-2

  	
   

  	
  Interest Election Request

  
	
   

  	
   

  	
  B

  	
   

  	
  Form of Note

  
	
   

  	
   

  	
  C

  	
   

  	
  Compliance Certificate

  
	
   

  	
   

  	
  D

  	
   

  	
  [Reserved]

  
	
   

  	
   

  	
  E

  	
   

  	
  Assignment Agreement

  
	
   

  	
   

  	
  F

  	
   

  	
  Certificate Regarding Non bank Status

  
	
   

  	
   

  	
  G

  	
   

  	
  Form of Assumption Agreement

  
	
   

  	
   

  	
  H

  	
   

  	
  [Reserved]

  
	
   

  	
   

  	
  I

  	
   

  	
  Interim Bankruptcy Court Order

  

 

 v

DEBTOR-IN-POSSESSION
FINANCING AGREEMENT

This DEBTOR-IN-POSSESSION
FINANCING  AGREEMENT,
dated as of December 11, 2006, is entered into by and among GRANITE BROADCASTING CORPORATION, a Delaware corporation, as
debtor and debtor-in-possession (the “Company”), KBWB LICENSE, INC., KBWB, INC., WEEK-TV LICENSE, INC., WXON LICENSE,
INC., and WXON, INC., each
as debtor and debtor-in-possession (together with the Company, and as further
defined herein, each a ”Borrower” and
collectively, the “Borrowers”),
the Lenders party hereto from time to time, and SILVER POINT
FINANCE, LLC (“Silver Point”), as administrative agent (in such capacity, “Administrative Agent”) and as collateral agent (in such
capacity, the “Collateral Agent”).

RECITALS:

WHEREAS,
capitalized terms used in these Recitals shall have the respective meanings set
forth for such terms in Section 1.1 hereof;

WHEREAS, the
Borrowers have commenced voluntary cases (the “Chapter 11
Cases”) under Chapter 11 of the Bankruptcy Code (as hereinafter
defined) in the United States Bankruptcy Court for the Southern District of New
York (the “Bankruptcy Court”), and the
Borrowers continue to operate their businesses and manage their properties as
debtors-in-possession pursuant to sections 1107 and 1108 of the Bankruptcy
Code; and

WHEREAS, the
Borrowers have asked the Lenders to make post-petition loans and advances to
the Borrowers consisting of a revolving credit facility in an aggregate
principal amount not to exceed $25,000,000 at any time outstanding, provided
that until the Final Bankruptcy Court Order (as hereinafter defined) shall have
been entered by the Bankruptcy Court, no loans or advances under the revolving
credit facility shall be made, other than revolving credit loans in an
aggregate principal amount not to exceed $5,000,000.  The Lenders have severally, and not jointly,
agreed to extend such credit to the Borrowers subject to the terms and
conditions hereinafter set forth.

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

SECTION 1.                                                         DEFINITIONS AND INTERPRETATION

1.1          Definitions.  The following terms used herein, including in
the preamble, recitals, exhibits and schedules hereto, shall have the following
meanings:

“Account Debtor” means each debtor, customer or obligor in
any way obligated on or in connection with any Account Receivable.

“Account Receivable”
means, with respect to any Person, any and all rights of such Person to payment
for goods sold and/or services rendered, including accounts, general
intangibles and any and all such rights evidenced by chattel paper, instruments
or documents, whether due or to become due and whether or not earned by
performance, and whether now or hereafter acquired or arising in the future,
and any support obligations in respect of the foregoing and any proceeds
arising from or relating to the foregoing.

 

“Adjusted LIBOR Rate”
means, for any Interest Rate Determination Date with respect to an Interest
Period for a LIBOR Rate Loan, the rate per annum obtained by dividing (and
rounding upward to the next whole multiple of one-sixteenth of one percent
(1/16 of 1%)) (i) (a) the rate per annum (rounded to the nearest
one-hundredth of one percent (1/100 of 1%)) equal to the rate determined by
Administrative Agent to be the offered rate which appears on the page of the
Telerate Screen which displays an average British Bankers Association Interest
Settlement Rate (such page currently being page number 3740 or 3750, as
applicable) for deposits (for delivery on the first day of such period) with a
term equivalent to such period in Dollars, determined as of approximately
11:00 a.m. (London, England time) on such Interest Rate Determination
Date, or (b) in the event the rate referenced in the preceding clause (a)
does not appear on such page or service or if such page or service shall cease
to be available, the rate per annum (rounded to the nearest one-hundredth of
one percent (1/100 of 1%)) equal to the rate determined by Administrative Agent
to be the offered rate on such other page or other service which displays an
average British Bankers Association Interest Settlement Rate for deposits (for
delivery on the first day of such period) with a term equivalent to such period
in Dollars, determined as of approximately 11:00 a.m. (London, England
time) on such Interest Rate Determination Date, or (c) in the event the rates
referenced in the preceding clauses (a) and (b) are not available, the
rate per annum (rounded to the nearest one-hundredth of one percent (1/100 of
1%)) equal to the offered quotation rate to first class banks in the London
interbank market for deposits (for delivery on the first day of the relevant
period) in Dollars of amounts in same day funds comparable to the principal amount
of the applicable Loan, for which the Adjusted LIBOR Rate is then being
determined with maturities comparable to such period as of approximately
11:00 a.m. (London, England time) on such Interest Rate Determination Date
as determined by Administrative Agent in accordance with its customary
practices, by (ii) an amount equal to (a) one, minus
(b) the Applicable Reserve Requirement.

“Administrative Agent”
as defined in the preamble hereto.

“Administrative Agent’s
Account” means an account at a bank designated by Administrative
Agent from time to time as the account into which Credit Parties shall make all
payments to Administrative Agent for the benefit of Agent and Lenders under
this Agreement and the other Credit Documents.

“Administrative Borrower” has the meaning specified therefor
in Section 12.24.

“Adverse Proceeding”
means any action, suit, proceeding (whether administrative, judicial or
otherwise), governmental investigation or arbitration (whether or not
purportedly on behalf of Company or any of its Subsidiaries) at law or in
equity, or before or by any Governmental Authority, domestic or foreign
(including any Environmental Claims) or other regulatory body or any arbitrator
whether pending or, to the best knowledge of Company or any of its Subsidiaries,
threatened in writing against or affecting Company or any of its Subsidiaries
or any property of Company or any of its Subsidiaries.

 2
 

 

“Affected Lender”
as defined in Section 2.17(b).

“Affected Loans”
as defined in Section 2.17(b).

“Affiliate”
means, as applied to any Person, any other Person directly or indirectly
controlling, controlled by, or under common control with, that Person.  For the purposes of this definition, “control”
(including, with correlative meanings, the terms “controlling, “ “controlled by” and “under common control with”), as
applied to any Person, means the possession, directly or indirectly, of the
power (i) to vote five percent (5%) or more of the Securities having
ordinary voting power for the election of directors of such Person, or
(ii) to direct or cause the direction of the management and policies of
that Person, whether through the ownership of voting securities or by contract
or otherwise.  Notwithstanding anything
to the contrary herein, in no event shall any Agent or Lender be considered an “Affiliate”
of the Company or any of its Subsidiaries.

“Agent” means
each of the Administrative Agent and the Collateral Agent.

“Agreed Administrative
Expense Priorities” means that administrative expenses with respect
to the Borrowers and, with respect to sub-clause (ii) of clause ”first”,
an official unsecured creditors committee (if any) appointed by the Bankruptcy
Court, shall have the following order of priority:

first,
(i) amounts payable pursuant to 28 U.S.C. § 1930(a)(6) and (ii) amounts
in respect of Carve-Out Expenses, provided that the amount entitled to
priority under this sub-clause (ii) of this clause first (“Priority
Professional Expenses”) shall not exceed (a) prior to a Carve-Out Expense
Reduction Period, the aggregate amount set forth in the Budget for such
Carve-Out Expenses for the applicable Budget Period (taking into account any
Permitted Deviation therefrom) and (b) during a Carve-Out Expense
Reduction Period, the sum of (1) the aggregate amount of Carve-Out Expenses
(so long as not incurred in connection with any action or claim against the
Prepetition Agents, the Prepetition Indebtedness Holders, the Agents or the
Lenders, including, without limitation, any claim challenging the amount,
validity, priority or enforceability of the Prepetition Obligations or the
Obligations) accrued and not paid immediately prior to the commencement of a
Carve-Out Expense Reduction Period and (2) $2,000,000 (as to the period in
clause (b), the “Professional Expense Cap”); provided, that the
portion of the Professional Expense Cap attributable to any professionals
retained pursuant to an Order of the Bankruptcy Court by an official unsecured
creditors committee (“Committee”) shall not exceed $450,000 (the “Committee
Expense Cap”), which Committee Expense Cap shall be reduced
dollar-for-dollar by the amount of fees and expenses actually paid to such
professionals retained by the Committee during the period of the first 100 days
following the Committee’s appointment (if any); provided, further,
however, that (A) during any Carve-Out Expense Reduction Period,
any payments actually made in respect of Carve-Out Expenses shall reduce the
Professional Expense Cap on a dollar-for-dollar basis and (B) for the
avoidance of doubt, so long as no Carve-Out Expense Reduction Period
shall be continuing, the payment of Carve-Out Expenses shall not reduce the
Professional Expense Cap,

 3
 

 

second, all
Obligations then due and payable, and

third, all
other allowed administrative expenses (other than expenses of any Committee in
excess of the Committee Expense Cap) to the extent then due and payable and not
otherwise paid.

“Aggregate Amounts Due”
as defined in Section 2.16.

“Agreement”
means this Debtor-in-Possession Financing Agreement, dated as of December 11,
2006, as it may be amended, supplemented or otherwise modified from time to
time and any annexes, exhibits, schedules to any of the foregoing.

“Applicable Margin”
means (i) with respect to LIBOR Rate Loans, a percentage, per annum, equal
to 2.75% and (ii) with respect to Base Rate Loans, a percentage , per
annum equal to 1.75%.

“Applicable Reserve
Requirement” means, at any time, for any LIBOR Rate Loan, the
maximum rate, expressed as a decimal, at which reserves (including any basic
marginal, special, supplemental, emergency or other reserves) are required to
be maintained with respect thereto against “Eurocurrency Liabilities” (as such
term is defined in Regulation D) under regulations issued from time to
time by the Board of Governors of the Federal Reserve System or other
applicable banking regulator.  Without
limiting the effect of the foregoing, the Applicable Reserve Requirement shall
reflect any other reserves required to be maintained by such member banks with
respect to (i) any category of liabilities which includes deposits by
reference to which the applicable Adjusted LIBOR Rate or any other interest
rate of a Loan is to be determined, or (ii) any category of extensions of
credit or other assets which include LIBOR Rate Loans.  A LIBOR Rate Loan shall be deemed to
constitute Eurocurrency liabilities and as such shall be deemed subject to
reserve requirements without benefits of credit for proration, exceptions or
offsets that may be available from time to time to the applicable Lender.  The rate of interest on LIBOR Rate Loans
shall be adjusted automatically on and as of the effective date of any change
in the Applicable Reserve Requirement.

“Asset Sale”
means a sale, lease or sub lease (as lessor or sublessor), sale and leaseback,
assignment, conveyance, transfer or other disposition to, or any exchange of
property with, any Person, in one transaction or a series of transactions, of
all or any part of Company’s or any of its Subsidiaries businesses, assets or
properties of any kind, whether real, personal, or mixed and whether tangible
or intangible, whether now owned or hereafter acquired, including the Capital
Stock of any of Company’s Subsidiaries, other than inventory sold or leased in
the ordinary course of business.

“Assignment Agreement”
means an Assignment and Assumption Agreement substantially in the form of
Exhibit E, with such amendments or modifications as may be approved by
Administrative Agent.

“Attributable Debt”
means as of the date of determination thereof, without duplication, (i) in
connection with a sale and leaseback transaction, the net present value
(discounted according to GAAP at the cost of debt implied in the lease) of the
obligations of the

 4
 

 

lessee for rental
payments during the then-remaining term of any applicable lease, and
(ii) the principal balance outstanding under any synthetic lease, tax
retention operating lease, off-balance sheet loan or similar off-balance sheet
financing product to which such Person is a party, where such transaction is
considered borrowed money indebtedness for tax purposes but is classified as an
operating lease in accordance with GAAP.

“Authorized Officer”
means, as applied to any Person, any individual holding the position of
chairman of the board (if an officer), chief executive officer, president,
chief financial officer, treasurer or controller, in each case, whose
signatures and incumbency have been certified to Administrative Agent.

“Availability”
means, (i) during the Interim Period, the difference between
(A) $25,000,000 and (B) the aggregate outstanding principal amount of
all Loans and (ii) during the Final Period, the difference between (A) the
total Commitment and (B) the sum of (1) the aggregate outstanding principal
amount of all Loans and (2) the aggregate amount of all reserves established by
the Administrative Agent pursuant to the terms of this Agreement and the other
Credit Documents, including, without limitation, an initial reserve in the
amount of $10,000,000; provided that so long as no Default or Event of Default
has occurred and is continuing reserves established by the Administrative Agent
shall not exceed $10,000,000.

“Avoidance Actions”
means all causes of action arising under Sections 542, 544, 545, 547, 548,
550, 551, 553(b) or 724(a) of the Bankruptcy Code and any proceeds therefrom.

“Bankruptcy Code”
means Title 11 of the United States Code entitled “Bankruptcy,” as now and
hereafter in effect, or any successor statute.

“Bankruptcy Court”
has the meaning specified therefor in the recitals hereto.

“Bankruptcy Court Order”
means the Interim Bankruptcy Court Order and the Final Bankruptcy Court Order.

“Base Rate”
means, for any day, a rate per annum equal to the greater of (i) the Prime
Rate in effect on such day, and (ii) the Federal Funds Effective Rate in
effect on such day plus 2.00%. 
Any change in the Base Rate due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective on the effective day of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

“Base Rate Loan”
means a Loan bearing interest at a rate determined by reference to the Base
Rate.

“Borrower” means
each of the initial Persons identified as a “Borrower” on the signature pages
hereto and each other Person that becomes a Borrower hereunder in accordance with
Section 5.12 hereof.

“Broadcast Cash Flow”
means, for any period, operating income or loss plus depreciation and
amortization, restructuring and litigation expenses, corporate expense,
non-cash compensation and program amortization, less program payments, all as
determined on a

 5
 

 

consolidated basis for
the Company and its Subsidiaries in accordance with GAAP; provided that
(A) there shall be excluded (i) the Broadcast Cash Flow of any Person
(other than a Credit Party) in which any other Person (other than a Credit
Party) has a joint interest, except to the extent of the amount of dividends or
other distributions actually paid in cash to a Credit Party by such Person
during such period, (ii) the Broadcast Cash Flow of any Person accrued
prior to the date it becomes a Subsidiary of the Company or is merged into or
consolidated with a Subsidiary of the Company or that Person’s assets are
acquired by the Company or a Subsidiary of the Company, (iii) any
after-tax gains or losses attributable to asset sales or returned surplus
assets of any Pension Plan, and (iv) (to the extent not included in
clauses (i) through (iii) above) any net extraordinary gains or net
non-cash extraordinary losses and (B) the WB Stations will be treated as if
such assets were not held for sale for GAAP purposes until such time as such
assets have been disposed.  Broadcast
Cash Flow of the Malara Entities will be included in the calculation of
Broadcast Cash Flow of the Company and its Subsidiaries.

“Budget” means
the monthly cash receipts and disbursements and Loan projections (including
projected drawings and outstanding Loan balances) of the Company and its
Subsidiaries attached hereto as Schedule 1.1(a).

“Budget Period”
means each monthly period set forth in the Budget commencing with the calendar
month ending December 31, 2006.

“Business Day”
means (i) any day excluding Saturday, Sunday and any day which is a legal
holiday under the laws of the State of New York or is a day on which banking
institutions located in such state are authorized or required by law or other
governmental action to close, and (ii) with respect to all notices,
determinations, fundings and payments in connection with the Adjusted LIBOR
Rate or any LIBOR Rate Loans, the term “Business Day” shall mean any day which
is a Business Day described in clause (i) and which is also a day for
trading by and between banks in Dollar deposits in the London interbank market.

“Capital Lease”
means, as applied to any Person, any lease of (or other arrangement conveying
the right to use) any property (whether real, personal or mixed) by that Person
as lessee (or the equivalent) that, in conformity with GAAP, is or should be
accounted for as a capital lease on the balance sheet of that Person.

“Capital Stock”
means any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent
ownership interests in a Person (other than a corporation), including
partnership interests and membership interests, and any and all warrants,
rights or options to purchase or other arrangements or rights to acquire any of
the foregoing.

“Carve-Out Expense Reduction Period” means any period during which
an Event of Default under this Agreement or a default by any Credit Party in any
of its obligations under any of the Bankruptcy Court Orders, in either such
case, shall have occurred and be continuing, and as to which the Collateral
Agent has provided written notice of the commencement of the Carve-Out Expense
Reduction Period to the Administrative Borrower (it being understood and agreed
that a Carve-Out Expense Reduction Period shall commence on the date such
notice is given).

 6
 

 

“Carve-Out Expenses” means any fees, costs, disbursements and
expenses of attorneys, accountants and other professionals retained in the
Chapter 11 Cases pursuant to Sections 327, 328, 330, 331 and 1103 of
the Bankruptcy Code; provided, that such fees, costs, disbursements and
expenses are in an amount equal to or less than the applicable amount set forth
in the Budget and are ultimately approved by the Bankruptcy Court.

“Cash” means
money, currency or a credit balance in any demand or Deposit Account.

“Cash Equivalents”
means, as at any date of determination, (i) marketable securities
(a) issued or directly and unconditionally guaranteed as to interest and
principal by the United States Government, or (b) issued by any agency of
the United States the obligations of which are backed by the full faith and
credit of the United States, in each case maturing within one year after such
date; (ii) marketable direct obligations issued by any state of the United
States of America or any political subdivision of any such state or any public
instrumentality thereof, in each case maturing within one year after such date
and having, at the time of the acquisition thereof, a rating of at least A-1
from S&P or at least P-1 from Moody’s; (iii) commercial paper maturing
no more than one year from the date of creation thereof and having, at the time
of the acquisition thereof, a rating of at least A-1 from S&P or at least
P-1 from Moody’s; (iv) certificates of deposit or bankers’ acceptances
maturing within one year after such date and issued or accepted by any Lender
or by any commercial bank organized under the laws of the United States of
America or any state thereof or the District of Columbia that (a) is at
least “adequately capitalized” (as defined in the regulations of its primary
Federal banking regulator), and (b) has Tier 1 capital (as defined in such
regulations) of not less than $250,000,000; and (v) shares of any money
market mutual fund that (a) has at least ninety five percent (95%) of
its assets invested continuously in the types of investments referred to in
clauses (i) and (ii) above, (b) has net assets of not less than
$500,000,000, and (c) has the highest rating obtainable from either
S&P or Moody’s.

“Certificate Regarding Non-Bank Status” means a certificate substantially in the form
of Exhibit F.

“Change of Control” means the occurrence of one or more of
the following events:

(a)           any sale, lease, exchange or other
transfer (in one transaction or a series of related transactions) of all or
substantially all of the assets of the Company to any “person” or “group” of
related “persons” as defined in Rules 13d-3 and 13d-5 under the Exchange Act
(whether or not otherwise in compliance with the provisions of this Agreement);

(b)           the approval by the holders of
Capital Stock of the Company of any plan or proposal for the liquidation or
dissolution of the Company (whether or not otherwise in compliance with the
provisions of this Agreement);

 7
 

 

(c)           after the date hereof, any “person”
or “group” of related “persons” as defined in Rules 13d-3 and 13d-5 under the
Exchange Act shall become the owner, directly or indirectly, beneficially or of
record, of shares representing more than 35% of the aggregate ordinary voting
power represented by the issued and outstanding Capital Stock of the Company;

(d)           the replacement or resignation of a
majority of the board of directors of the Company who constituted the board of
directors of the Company on the date hereof, provided that any director
that becomes a director after the date hereof that is “independent” as defined
under the rules and regulations of the New York Stock Exchange and approved by
Administrative Agent (which approval shall not be unreasonably withheld or
delayed in light of the circumstances surrounding the appointment of such
director) shall be deemed to be a director as of the date hereof;

(e)           the Company or any of its Subsidiaries
consolidates with, or merges with or into, any Person (other than a Credit
Party), or any Person consolidates with, or merges with or into, the Company or
any of its Subsidiaries, in any such event pursuant to a transaction in which
any of the outstanding Voting Stock of the Company or such Subsidiary or such
other Person is converted into or exchanged for cash, securities or other
property;

(f)            the Company shall cease to have
beneficial ownership (as defined in Rule 13d-3 under the Exchange Act) of 100%
of the aggregate voting power of the Capital Stock (other than directors’
qualifying shares) of each of its Subsidiaries, free and clear of all Liens
(other than Permitted Liens); or

(g)           any event, the occurrence of which
constitutes a change of control of the Company for purposes of any Prepetition
Obligations.

“Chapter 11 Cases”
has the meaning specified therefor in the recitals hereto.

“Closing Date”
means the date on which all of the conditions in Section 3.1 have been
satisfied or waived.

“Collateral” has
the meaning specified therefor in Section 10.4(a).

“Collateral Agent”
as defined in the preamble hereto.

“Collateral Documents”
means this Agreement, any Guaranty, any Security Agreement, any Pledge
Agreement, any Mortgage, and any other agreement, instrument, certificate,
report and other document executed and delivered pursuant hereto or thereto in
connection with any Lien on the Collateral to secure the Obligations.

“Commitment”
means the commitment of a Lender to make or otherwise fund any Loan and “Commitments” means such commitments of all
Lenders in the aggregate.  The amount of
each Lender’s Commitment, if any, is set forth on Appendix A or in the
applicable Assignment Agreement, subject to any adjustment or reduction
pursuant to the terms and conditions hereof. 
The aggregate amount of the Commitments as of the Closing Date is
$25,000,000.

 8
 

 

“Commitment Period”
means the period from the Closing Date to but excluding the Final Maturity
Date.

“Communications”
has the meaning specified therefor in Section 9.9(a).

“Company” as
defined in the preamble hereto.

“Company Account”
has the meaning specified therefor in Section 5.13(b).

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

“Consolidated Capital
Expenditures” means, for any period, the aggregate of all
expenditures of Company and its Subsidiaries during such period determined on a
consolidated basis that, in accordance with GAAP, are or should be included in “purchase
of property and equipment (including the portion of liabilities under any
Capital Lease that is or should be capitalized in accordance with GAAP) or
which should otherwise be capitalized” or similar items reflected in the
consolidated statement of cash flows of Company and its Subsidiaries.

“Contractual Obligation”
means, as applied to any Person, any provision of any Security issued by that
Person or of any indenture, mortgage, deed of trust, contract, undertaking,
agreement or other instrument to which that Person is a party or by which it or
any of its properties is bound or to which it or any of its properties is
subject.

“Corporate Expenses”
means those expenses properly included in the line item “Corporate Expenses” on
the Company’s financial statements in accordance with GAAP and as allocated by
the Company consistent with past practice. 
Corporate Expenses of the Malara Entities will be included in the
calculation of Corporate Expenses of the Company and its Subsidiaries.

“Credit Date”
means the date of a Loan Extension.

“Credit Document”
means any of this Agreement, the Notes, if any, the Collateral Documents, the
Fee Letter, the Interim Bankruptcy Court Order, the Final Bankruptcy Court
Order and any other agreement, instrument, certificate, report and other
document executed and delivered pursuant hereto or thereto or otherwise
evidencing or securing any Loan, or any other Obligation.

“Credit Party”
means each Person (other than any Agent or any Lender, Lender Counterparty or
any representative thereof) from time to time party to a Credit Document.  For the avoidance of doubt, no Person that is
a Non-Debtor Subsidiary shall be a Credit Party hereunder.

“Credit Party Account”
has the meaning specified therefor in Section 5.13(a).

 9
 

 

“Credit Party Documentation” has the meaning specified
therefor in Section 5.13(a).

“Default” means
a condition or event that, after notice or lapse of time or both, would
constitute an Event of Default.

“Default Excess”
means, with respect to any Defaulting Lender, the excess, if any, of such
Defaulting Lender’s Pro Rata Share of the aggregate outstanding principal
amount of Loans of all Lenders (calculated as if all Defaulting Lenders (other
than such Defaulting Lender) had funded all of their respective Defaulted
Loans) over the aggregate outstanding principal amount of all Loans of such
Defaulting Lender.

“Default Period”
means, with respect to any Defaulting Lender, the period commencing on the date
of the applicable Funding Default and ending on the earliest of the following
dates:  (i) the date on which all
Commitments are cancelled or terminated and/or the Obligations are declared or
become immediately due and payable, (ii) the date on which (a) the
Default Excess with respect to such Defaulting Lender shall have been reduced
to zero (whether by the funding by such Defaulting Lender of any Defaulted
Loans of such Defaulting Lender or by the non-pro rata application of any
voluntary or mandatory prepayments of the Loans in accordance with the terms of
Section 2.12 or Section 2.13 or by a combination thereof), and
(b) such Defaulting Lender shall have delivered to Administrative Borrower
and Administrative Agent a written reaffirmation of its intention to honor its
obligations hereunder with respect to its Commitments, and (iii) the date
on which Administrative Borrower, Administrative Agent and Requisite Lenders
waive all Funding Defaults of such Defaulting Lender in writing.

“Default Rate”
means any interest payable pursuant to Section 2.9.

“Defaulted Loan”
as defined in Section 2.21.

“Defaulting Lender”
as defined in Section 2.21.

“Deposit Account”
means a demand, time, savings, passbook or like account with a bank, savings
and loan association, credit union or like organization, other than (i) an
account evidenced by a negotiable certificate of deposit, or (ii) any zero
balance disbursement account.

“Disclosure Filings”
means the following filings made by the Administrative Borrower with the
Securities and Exchange Commission: (i) the Administrative Borrower’s Form 10-K
filing for the year ended December 31, 2005, (ii) each of the Administrative
Borrower’s Form 10-Q filings for the quarters ending March 31, 2006, June 30,
2006 and September 30, 2006, respectively and (iii) each of the Form 8-K
filings made by the Administrative Borrower since January 1, 2006.

“Dollars” and
the sign “$” mean the lawful money of the United
States of America.

“Domestic Subsidiary”
means any Subsidiary organized under the laws of the United States of America,
any State thereof or the District of Columbia.

 10

 

 

“Duluth Advertising
Representation Agreement” means that certain Advertising
Representation Agreement, dated as of March 8, 2005 by and between
KDLH(TV),  Duluth Service Provider and
the Company in the form delivered to Administrative Agent and Lenders prior to
their execution of this Agreement (including all amendments through the date
hereof) and as such agreement may be amended, restated, modified or otherwise
supplemented from time to time thereafter to the extent permitted hereunder.

“Duluth Management Services
Agreement” means that certain Management Services Agreement, dated
as of March 8, 2005, by and between TCM Media Associates LLC and KDLH(TV), in
the form delivered to Administrative Agent and Lenders prior to their execution
of this Agreement (including all amendments through the date hereof) and as
such agreement may be amended, restated, modified or otherwise supplemented
from time to time thereafter to the extent expressly permitted hereunder.

“Duluth Option Agreement”
means that certain Put and Call Option Agreement, dated as of March 8, 2005, by
and among Malara Broadcast Group Inc., KDLH(TV), Duluth Licensee and the
Company, in the form delivered to Administrative Agent and Lenders prior to
their execution of this Agreement (including all amendments through the date
hereof) and as such agreement may be amended, restated, modified or otherwise
supplemented from time to time thereafter to the extent expressly permitted
hereunder.

“Duluth Service Provider”
means KBJR, Inc., a Delaware corporation, and a wholly-owned Subsidiary of the
Company.

“Duluth Shared Services
Agreement” means that certain Shared Service Agreement, dated as of
March 8, 2005, by and between KDLH(TV), Duluth Service Provider and Granite in
the form delivered to Administrative Agent and Lenders prior to their execution
of this Agreement (including all amendments through the date hereof) and as
such agreement may be amended, restated, modified or otherwise supplemented
from time to time thereafter to the extent expressly permitted hereunder.

“Eligible Assignee”
means any of (a) any Lender, any Affiliate of any Lender and any Related
Fund (any two or more Related Funds being treated as a single Eligible Assignee
for all purposes hereof), (b) any commercial bank, insurance company,
investment or mutual fund or other entity that is an “accredited investor” (as
defined in Regulation D under the Securities Act) and which extends credit
or buys loans as one of its businesses, or (c) any other Person (other
than a natural Person) approved by Administrative Borrower (so long as no
Default or Event of Default has occurred and is continuing) and Administrative
Agent.

“Employee Benefit Plan”
means any “employee benefit plan” as defined in Section 3(3) of ERISA
which is or was sponsored, maintained or contributed to by, or required to be
contributed by, Company, any of its Subsidiaries or any of their respective
ERISA Affiliates.

“Environmental Claim”
means any investigation, notice, notice of violation, claim, action, suit,
proceeding, demand, abatement order or other order or directive (conditional or
otherwise), by any Governmental Authority or any other Person, arising
(i) pursuant to or in connection with any actual or alleged violation of
any Environmental Law; (ii) in connection with any Hazardous Material or
any actual or alleged Hazardous Materials Activity; or (iii) in connection

 11
 

 

with any actual or
alleged damage, injury, threat or harm to health, safety, natural resources or
the environment.

“Environmental Laws”
means any and all current or future foreign or domestic, federal or state (or
any subdivision of either of them), statutes, ordinances, orders, rules,
regulations, judgments, Governmental Authorizations, or any other requirements
of Governmental Authorities relating to (i) public health and safety,
protection of the environment or other environmental matters, including those
relating to any Hazardous Materials Activity; (ii) the generation, use,
storage, transportation or disposal of Hazardous Materials; or (iii) occupational
safety and health, industrial hygiene, land use or the protection of human,
plant or animal health or welfare.

“ERISA” means
the Employee Retirement Income Security Act of 1974, as amended from time to
time, and any successor thereto, in each case together with the regulations
thereunder.

“ERISA Affiliate”
means, as applied to any Person, (i) any corporation which is a member of
a controlled group of corporations within the meaning of Section 414(b) of
the Internal Revenue Code of which that Person is a member; (ii) any trade
or business (whether or not incorporated) which is a member of a group of
trades or businesses under common control within the meaning of
Section 414(c) of the Internal Revenue Code of which that Person is a
member; and (iii) any member of an affiliated service group within the
meaning of Section 414(m) or (o) of the Internal Revenue Code of
which that Person, any corporation described in clause (i) above or any
trade or business described in clause (ii) above is a member.  Any former ERISA Affiliate of Company or any
of its Subsidiaries shall continue to be considered an ERISA Affiliate of
Company or any such Subsidiary within the meaning of this definition with
respect to the period such entity was an ERISA Affiliate of Company or such Subsidiary
and with respect to liabilities arising after such period for which Company or
such Subsidiary could be liable under the Internal Revenue Code or ERISA.

“ERISA Event”
means (i) a “reportable event” within the meaning of Section 4043 of
ERISA and the regulations issued thereunder with respect to any Pension Plan
(excluding those for which the provision for 30-day notice to the PBGC
has been waived by regulation); (ii) the failure to meet the minimum
funding standard of Section 412 of the Internal Revenue Code with respect
to any Pension Plan (whether or not waived in accordance with
Section 412(d) of the Internal Revenue Code) or the failure to make by its
due date a required installment under Section 412(m) of the Internal
Revenue Code with respect to any Pension Plan or the failure to make any
required contribution to a Multiemployer Plan; (iii) notice of intent to
terminate a Pension Plan in a distress termination described in
Section 4041(c) of ERISA; (iv) the withdrawal by Company, any of its
Subsidiaries or any of their respective ERISA Affiliates from any Pension Plan
with two or more non-related contributing sponsors or the termination of any
such Pension Plan resulting in liability to Company, any of its Subsidiaries or
any of their respective ERISA Affiliates pursuant to Section 4063 or 4064
of ERISA; (v) the institution by the PBGC of proceedings to terminate any
Pension Plan, or the occurrence of any event or condition which might
reasonably constitute grounds under ERISA for the termination

 12
 

 

of, or the appointment of
a trustee to administer, any Pension Plan; (vi) the imposition of
liability on Company, any of its Subsidiaries or any of their respective ERISA
Affiliates pursuant to Section 4062(e) or 4069 of ERISA or by reason of the
application of Section 4212(c) of ERISA; (vii) the withdrawal of
Company, any of its Subsidiaries or any of their respective ERISA Affiliates in
a complete or partial withdrawal (within the meaning of Sections 4203 and
4205 of ERISA) from any Multiemployer Plan if there is any liability or
potential liability therefor, or the receipt by Company, any of its
Subsidiaries or any of their respective ERISA Affiliates of notice from any
Multiemployer Plan that it is in reorganization or insolvency pursuant to
Section 4241 or 4245 of ERISA, or that it intends to terminate or has
terminated under Section 4041A or 4042 of ERISA; (viii) the
occurrence of an act or omission which could give rise to the imposition on
Company, any of its Subsidiaries or any of their respective ERISA Affiliates of
fines, penalties, taxes or related charges under Chapter 43 of the
Internal Revenue Code or under Section 409, Section 502(c),
(i) or (l), or Section 4071 of ERISA in respect of any Employee
Benefit Plan; (ix) the assertion of a material claim (other than routine
claims for benefits) against any Employee Benefit Plan or the assets thereof,
or against Company, any of its Subsidiaries or any of their respective ERISA
Affiliates in connection with any Employee Benefit Plan; (x) receipt from
the Internal Revenue Service of notice of the failure of any Pension Plan (or
any other Employee Benefit Plan intended to be qualified under
Section 401(a) of the Internal Revenue Code) to qualify under
Section 401(a) of the Internal Revenue Code, or the failure of any trust
forming part of any Pension Plan to qualify for exemption from taxation under
Section 501(a) of the Internal Revenue Code; or (xi) the imposition
of a Lien pursuant to Section 401(a)(29) or 412(n) of the Internal Revenue
Code or pursuant to ERISA with respect to any Pension Plan.

“Event of Default”
means each of the conditions or events set forth in Section 8.1.

“Exchange Act”
means the Securities Exchange Act of 1934, as amended from time to time, and
any successor statute.

“Excluded Tax”
means a “Tax on the overall net income” of a Person as defined in the
definition of “Tax”.

“Existing Malara Facility” means the Credit Agreement dated as of March 8, 2005,
as amended through the date hereof and, after the date hereof, to the extent permitted
by the terms of this Agreement, between Malara Broadcast Group Inc., as parent
guarantor, Malara Broadcast Group of Fort Wayne LLC, Malara Broadcast Group of
Fort Wayne Licensee LLC, Malara Broadcast Group of Duluth LLC and Malara
Broadcast Group of Duluth Licensee LLC, as borrowers, D.B.  Zwirn Special Opportunities Fund, L.P., as
administrative agent, and the lenders party thereto.

“Extraordinary Receipts”
means any cash received by or paid to or for the account of Company or any of
it Subsidiaries not in the ordinary course of business, including any foreign,
United States, state or local tax refunds, pension plan reversions, judgments,
proceeds of settlements or other consideration of any kind in connection with
any cause of action, condemnation awards (and payments in lieu thereof),
indemnity payments and any purchase price adjustment received in connection
with any purchase agreement and proceeds of insurance (excluding, however, any
Net Insurance/Condemnation Proceeds which are subject to Section 2.13(b)).

 13
 

 

“Facility” means
any real property (including all buildings, fixtures or other improvements
located thereon) now, hereafter or heretofore owned, leased, operated or used
by Company or any of its Subsidiaries or any of their respective predecessors
or Affiliates.

“FCC” means the
Federal Communications Commission or any successor federal governmental agency
performing functions similar to those performed on the date hereof by the
Federal Communications Commission.

“FCC Licenses” means all licenses, authorizations, waivers
and permits relating to the stations required under the Communications Act or
from any Communications Regulatory Authority or otherwise used in the operation
of the stations.

“FCC Rules” means the
rules, regulations, policies and practices of the FCC, as in effect  from time to time.

“Federal Funds Effective
Rate” means for any day, the rate per annum (expressed, as a
decimal, rounded upwards, if necessary, to the next higher one-hundredth of one
percent (1/100 of 1%)) equal to the weighted average of the rates on overnight
Federal funds transactions with members of the Federal Reserve 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,
(i) 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 (ii) if no such rate
is so published on such next succeeding Business Day, the Federal Funds Rate
for such day shall be the average of the quotations for the day of such
transactions received by Administrative Agent from three federal funds brokers
of recognized standing selected by it.

“Fee Letter”
means the letter agreement dated December 11, 2006 between Company and
Administrative Agent.

“Filing Date”
means December 11, 2006.

“Final Bankruptcy Court
Order” means the final order of the Bankruptcy Court with respect to
the Credit Parties, in form and substance satisfactory to the Administrative
Agent in its sole discretion, as the same may be amended, modified or
supplemented from time to time with the express written joinder or consent of
the Administrative Agent.

“Final Bankruptcy Court Order
Entry Date” means the date on which the Final Bankruptcy Court Order
shall have been entered on the docket of the Bankruptcy Court.

“Final Facility Effective
Date” has the meaning specified therefor in Section 3.2.

“Final Maturity Date”
means the date which is the earliest of (i) the date which is 45 days
following the date of entry of the Interim Bankruptcy Court Order, if the Final
Bankruptcy Court Order has not been entered by the Bankruptcy Court on or prior
to such date,

 14
 

 

(ii) September 1, 2007, (iii) the
earlier of the effective date and the date of the substantial consummation (as
defined in Section 1101(2) of the Bankruptcy Code), in each case, of a
plan of reorganization in any of the Chapter 11 Cases that has been
confirmed by an order of the Bankruptcy Court, and (iv) such earlier date
on which all Loans and other Obligations for the payment of money shall become
due and payable in accordance with the terms of this Agreement and the other
Credit Documents.

“Final Period”
means the period commencing on the Final Facility Effective Date and ending on
the Final Maturity Date.

“Financial Officer
Certification” means, with respect to the financial statements for
which such certification is required, the certification of the chief financial
officer of Company that such financial statements fairly present, in all
material respects, the financial condition of Company and its Subsidiaries as
at the dates indicated and the results of their operations and their cash flows
for the periods indicated, in each case in conformity with GAAP applied on a
consistent basis, subject, in the case of interim financial statements, to the
absence of footnotes and changes resulting from normal audit and year-end
adjustments.

“Financial Plan” means, the monthly
consolidated plan and financial forecast for each fiscal month through the
month ending July, 2007 attached as Schedule 1.1(b) hereto, including
forecasted consolidated statements of income of the Company and its
Subsidiaries (which for purposes of this definition shall include the Malara
Entities), and forecasted statements for the Company on a consolidated basis of
revenues and expenses through, and including, adjusted Broadcast Cash Flow for
each month of such period (which for the purposes of this definition shall
include the Malara Entities).

“First Priority”
means, with respect to any Lien purported to be created in any Collateral, that
such Lien is the only Lien to which such Collateral is subject, other than any
Permitted Lien.

“Fiscal Quarter”
means a fiscal quarter of any Fiscal Year.

“Fiscal Year”
means the fiscal year of Company and its Subsidiaries ending on
December 31 of each calendar year.

“Flood Hazard Property”
means any Real Estate Asset subject to a mortgage in favor of Collateral Agent,
for the benefit of the Secured Parties, and located in an area designated by
the Federal Emergency Management Agency as having special flood or mud slide
hazards.

“Foreign Subsidiary”
means any Subsidiary that is not a Domestic Subsidiary.

“Fort Wayne Advertising Representation
Agreement” means that certain Advertising Representation Agreement,
dated as of March 8, 2005, by and between WPTA(TV), Fort Wayne Service Provider
and the Company, in the form delivered to Administrative Agent and Lenders
prior to their execution of this Agreement (including all amendments through
the date hereof) and as such agreement may be amended, restated, modified or
otherwise supplemented from time to time thereafter to the extent expressly
permitted hereunder.

 15
 

 

“Fort Wayne Management Services
Agreement” means that certain Management Services Agreement, dated
as of March 8, 2005, by and between TCM and WPTA(TV), in the form delivered to
Administrative Agent and Lenders prior to their execution of this Agreement
(including all amendments through the date hereof) and as such agreement may be
amended, restated, modified or otherwise supplemented from time to time
thereafter to the extent expressly permitted hereunder.

“Fort Wayne Option
Agreement” means that certain Put and Call Option Agreement, dated
as of March 8, 2005, by and among Malara Broadcast Group Inc., WPTA(TV), Fort
Wayne Licensee and the Company, in the form delivered to Administrative Agent
and Lenders prior to their execution of this Agreement (including all
amendments through the date hereof) and as such agreement may be amended,
restated, modified or otherwise supplemented from time to time thereafter to
the extent expressly permitted hereunder.

“Fort Wayne Service
Provider” means WISE-TV, Inc. (as successor to NVG-Fort Wayne,
Inc.), a Delaware corporation, and a wholly-owned Subsidiary of the Company.

“Fort Wayne Shared Services
Agreement” means that certain Shared Services Agreement, dated as of
March 8, 2005, by and between WPTA(TV), Fort Wayne Service Provider and the
Company, in the form delivered to Administrative Agent and Lenders prior to
their execution of this Agreement (including all amendments through the date
hereof) and as such agreement may be amended, restated, modified or otherwise
supplemented from time to time thereafter to the extent expressly permitted
hereunder.

“Funding Default”
as defined in Section 2.21.

“Funding Notice”
means a notice substantially in the form of Exhibit A-1.

“GAAP” means,
subject to the limitations on the application thereof set forth in
Section 1.2, United States generally accepted accounting principles in
effect as of the date of determination thereof.

“Governmental Acts”
means any act or omission, whether rightful or wrongful, of any present or
future de jure or de facto government or Governmental Authority.

“Governmental Authority”
means any federal, state, municipal, national or other government, governmental
department, commission, board, bureau, court, agency or instrumentality or
political subdivision thereof or any entity or officer exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to any government or any court, in each case whether associated with a state of
the United States, the United States, or a foreign entity or government.

“Governmental Authorization”
means any permit, license, authorization, plan, directive, consent order or
consent decree of or from any Governmental Authority.

“Granting Lender”
as defined in Section 12.7.

 16
 

 

“Guarantee”
means, with respect to any Person, any obligation, contingent or otherwise, of
such Person guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation of any other Person in any manner, whether
directly or indirectly, and including any obligation of the guarantor, direct
or indirect, that is (a) an obligation of such Person the primary purpose
or intent of which is to provide assurance to an obligee that the obligation of
the obligor thereof will be paid or discharged, or any agreement relating thereto
will be complied with, or the holders thereof will be protected (in whole or in
part) against loss in respect thereof; or (b) a liability of such Person
for an obligation of another through any agreement (contingent or otherwise)
(i) to purchase, repurchase or otherwise acquire such obligation or any
security therefor, or to provide funds for the payment or discharge of such
obligation (whether in the form of loans, advances, stock purchases, capital
contributions or otherwise) or (ii) to maintain the solvency or any
balance sheet item, level of income or financial condition of another if, in
the case of any agreement described under subclauses (i) or (ii) of
this clause (b), the primary purpose or intent thereof is as described in
clause (a) above.

“Guarantor”
means each Person which guarantees, pursuant to Section 5.10 or otherwise, all
or any part of the Obligations.

“Guaranty” means each guaranty, in form and substance
satisfactory to the Administrative Agent, made by any Guarantor in favor of the
Collateral Agent for the benefit of the Secured Parties pursuant to Section
5.10 or otherwise.

“Guaranty Fee Agreement” means that certain Guarantee Fee
Agreement, dated as of March 8, 2005, by and among Malara Broadcast Group
Inc., KDLH(TV), WPTA(TV) and the Company, in the form delivered to
Administrative Agent and Lenders prior to their execution of this Agreement and
as such agreement may be amended from time to time thereafter to the extent
expressly permitted hereunder.

“Hazardous Materials”
means any chemical, material or substance, exposure to which is prohibited,
limited or regulated by any Environmental Law or Governmental Authority or
which may or could pose a hazard to the health and safety of the owners,
occupants or any Persons in the vicinity of any Facility or to the indoor or
outdoor environment.

“Hazardous Materials
Activity” means any past, current, proposed or threatened activity,
event or occurrence involving any Hazardous Materials, including the use,
manufacture, possession, storage, holding, presence, existence, location,
Release, threatened Release, discharge, placement, generation, transportation,
processing, construction, treatment, abatement, removal, remediation, disposal,
disposition or handling of any Hazardous Materials, and any corrective action
or response action with respect to any of the foregoing.

“Highest Lawful Rate”
means the maximum lawful interest rate, if any, that at any time or from time
to time may be contracted for, charged, or received under the laws applicable
to any Lender which are presently in effect or, to the extent allowed by law,
under such applicable laws which may hereafter be in effect and which allow a
higher maximum nonusurious interest rate than applicable laws now allow.

 17
 

 

“Historical Financial
Statements” means as of the Closing Date, (i) the audited
financial statements of Company and its Subsidiaries, for the Fiscal Year ended
December 31, 2005, consisting of balance sheets and the related
consolidated statements of income, stockholders’ equity and cash flows for such
Fiscal Year, and (ii) the financial statements of Company and its
Subsidiaries, for the Fiscal Quarter ended September 30, 2006, consisting of
balance sheets and the related consolidated statements of income, stockholders’
equity and cash flows for such Fiscal Quarter, in the case of clauses (i)
and (ii), certified by the chief financial officer of Company that they fairly
present, in all material respects, the financial condition of Company and its
Subsidiaries as at the dates indicated and the results of their operations and
their cash flows for the periods indicated, subject, if applicable, to changes
resulting from audit and normal year end adjustments.

“Increased Cost Lender”
as defined in Section 2.22.

“Indebtedness”,
as applied to any Person, means, without duplication, (i) all indebtedness
for borrowed money; (ii) that portion of obligations with respect to
Capital Leases that is properly classified as a liability on a balance sheet in
conformity with GAAP; (iii) all obligations of such Person evidenced by
notes, bonds or similar instruments or upon which interest payments are
customarily paid and all obligations in respect of drafts accepted representing
extensions of credit whether or not representing obligations for borrowed
money; (iv) any obligation owed for all or any part of the deferred
purchase price of property or services (excluding trade payables incurred in
the ordinary course of business having a term of less than six (6) months
that are to the extent that enforcement thereof is not stayed by virtue of the
filing of the Chapter 11 Cases not overdue by more than seventy-five
(75) days) which purchase price is (a) due more than six
(6) months from the date of incurrence of the obligation in respect
thereof or (b) evidenced by a note or similar written instrument;
(v) all obligations created or arising under any conditional sale or other
title retention agreement with respect to property acquired by such person,
(vi) all indebtedness secured by any Lien on any property or asset owned or
held by that Person regardless of whether the indebtedness secured thereby
shall have been assumed by that Person or is nonrecourse to the credit of that
Person; (vii) the face amount of any letter of credit or letter of
guaranty issued, bankers’ acceptances facilities, surety bond and similar
credit transactions for the account of that Person or as to which that Person
is otherwise liable for reimbursement of drawings or drafts; (viii) the
direct or indirect guaranty, endorsement (otherwise than for collection or
deposit in the ordinary course of business), co-making, discounting with
recourse or sale with recourse by such Person of the obligation of another;
(ix) any obligation of such Person the primary purpose or intent of which
is to provide assurance to an obligee that the obligation of the obligor
thereof will be paid or discharged, or any agreement relating thereto will be
complied with, or the holders thereof will be protected (in whole or in part)
against loss in respect thereof; (x) any liability of such Person for an
obligation of another through any agreement (contingent or otherwise)
(a) to purchase, repurchase or otherwise acquire such obligation or any
security therefor, or to provide funds for the payment or discharge of such
obligation (whether in the form of loans, advances, stock purchases, capital
contributions or otherwise) or (b) to maintain the solvency or any balance
sheet item, level of income or financial condition of another if, in the case
of any agreement described under subclauses (a) or (b) of this
clause (x), the primary purpose or intent thereof is as described in
clause (ix) above; (xi) all obligations of such Person in respect of
any exchange traded or over

 18
 

 

the counter derivative
transaction, including any interest rate or currency agreement or any other
rate management transaction, whether entered into for hedging or speculative
purposes; (xii) all obligations of such Person, contingent or otherwise,
to purchase, redeem, retire or otherwise acquire for value any Capital Stock of
such Person; (xii) all Attributable Debt of such Person; and
(xiii) any obligations of such Person or its Subsidiaries that would
constitute “indebtedness” for the purpose of any other agreement to which such
Person is a party.  The Indebtedness of any
Person shall include the Indebtedness of any partnership or Joint Venture in
which such Person is a general partner or joint venturer, unless such
Indebtedness is expressly non-recourse to such Person.

“Indemnified Liabilities”
means, collectively, any and all liabilities, obligations, losses, damages
(including natural resource damages), penalties, claims (including
Environmental Claims), costs (including the costs of any investigation, study,
sampling, testing, abatement, cleanup, removal, remediation or other response
action necessary to remove, remediate, clean up or abate any Hazardous
Materials Activity), expenses and disbursements of any kind or nature
whatsoever (including the reasonable fees and disbursements of counsel for
Indemnitees in connection with any investigative, administrative or judicial
proceeding commenced or threatened by any Person, whether or not any such
Indemnitee shall be designated as a party or a potential party thereto, and any
fees or expenses incurred by Indemnitees in enforcing this indemnity), whether
direct, indirect or consequential and whether based on any federal, state or
foreign laws, statutes, rules or regulations (including securities and
commercial laws, statutes, rules or regulations and Environmental Laws), on common
law or equitable cause or on contract or otherwise, that may be imposed on,
incurred by, or asserted against any such Indemnitee, in any manner relating to
or arising out of (i) this Agreement or the other Credit Documents or the
transactions contemplated hereby or thereby (including the Lenders’ agreement
to make Loan Extensions or the use or intended use of the proceeds thereof, or
any enforcement of any of the Credit Documents (including any sale of,
collection from, or other realization upon any of the Collateral or the
enforcement of the Guaranty)); or (ii) any Environmental Claim against or
any Hazardous Materials Activity relating to or arising from, directly or
indirectly, any past or present activity, operation, land ownership, or practice
of Company or any of its Subsidiaries.

“Indemnitee” as
defined in Section 12.3(a).

“Indemnitee Agent Party”
as defined in Section 9.6.

“Insolvency Event”
with respect to any Subsidiary of the Company that is not a Credit Party,
means:  (i) a court of competent
jurisdiction shall enter a decree or order for relief in respect of such
Subsidiary in an involuntary case under the Bankruptcy Code or under any other
applicable bankruptcy, insolvency or similar law now or hereafter in effect,
which decree or order is not stayed; or any other similar relief shall be
granted under any applicable federal or state law; or (ii) an involuntary case
shall be commenced against such Subsidiary under the Bankruptcy Code or under
any other applicable bankruptcy, insolvency or similar law now or hereafter in
effect; or a decree or order of a court having jurisdiction in the premises for
the appointment of a receiver, liquidator, sequestrator, trustee, custodian or
other officer having similar powers over such Subsidiary, or over all or a
substantial part of its property, shall have

 19
 

 

been entered; or there
shall have occurred the involuntary appointment of an interim receiver, trustee
or other custodian of such Subsidiary for all or a substantial part of its
property; or a warrant of attachment, execution or similar process shall have
been issued against any substantial part of the property of such Subsidiary,
and any such event described in this clause (ii) shall continue for thirty (30)
days without having been dismissed, bonded or discharged; or (iii) such
Subsidiary shall have an order for relief entered with respect to it or shall
commence a voluntary case under the Bankruptcy Code or under any other
applicable bankruptcy, insolvency or similar law now or hereafter in effect, or
shall consent to the entry of an order for relief in an involuntary case, or to
the conversion of an involuntary case to a voluntary case, under any such law,
or shall consent to the appointment of or taking possession by a receiver,
trustee or other custodian for all or a substantial part of its property; or
such Subsidiary shall make any assignment for the benefit of creditors; or (iv)
such Subsidiary shall be unable, or shall fail generally, or shall admit in
writing its inability, to pay its debts as such debts become due; or the board
of directors (or similar governing body) of such Subsidiary (or any committee
thereof) shall adopt any resolution or otherwise authorize any action to
approve any of the actions referred to in this definition.

“Interest Election Request”
means a Interest Election Request substantially in the form of Exhibit A-2.

“Interest Payment Date”
means with respect to (i) any Base Rate Loan, (a) the last day of
each month, commencing on the first such date to occur after the Closing Date,
and (b) the final maturity date of such Loan; and (ii) any LIBOR Rate
Loan, (a) the last day of each month commencing on the first such date to
occur after the Closing Date, and (b) the last day of each Interest Period
applicable to such Loan.

“Interest Period”
means, in connection with a LIBOR Rate Loan, an interest period of one, two, or
three months, as selected by the Administrative Borrower in the applicable
Funding Notice or Interest Election Request, (i) initially, commencing on
the Credit Date or Interest Period Election Date thereof, as the case may be;
and (ii) thereafter, commencing on the day on which the immediately
preceding Interest Period expires; provided, (a) if an Interest
Period would otherwise expire on a day that is not a Business Day, such
Interest Period shall expire on the next succeeding Business Day unless no
further Business Day occurs in such month, in which case such Interest Period
shall expire on the immediately preceding Business Day; (b) 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, subject to clauses (c) of this
definition, end on the last Business Day of a calendar month; and (c) no
Interest Period with respect to any portion of any Loans shall extend beyond
the Final Maturity Date.

“Interest Rate
Determination Date” means, with respect to any Interest Period, the
date that is two Business Days prior to the first day of such Interest Period.

“Interim Bankruptcy Court
Order” means the order of the Bankruptcy Court with respect to the
Credit Parties, in the form of Exhibit I hereto, as the same may be
amended, modified or supplemented from time to time with the express written
joinder or consent of the Administrative Agent.

 20

 

“Interim Bankruptcy Court
Order Entry Date” means the date on which the Interim Bankruptcy
Court Order shall have been entered on the docket of the Bankruptcy Court.

“Interim Facility Effective
Date” means the date, on or before December 14, 2006, on which all
of the conditions precedent set forth in Section 3.1 are satisfied or
waived.

“Interim Period”
means the period commencing on the Interim Facility Effective Date and ending
on the earlier to occur of (i) the Final Facility Effective Date and
(ii) the Final Maturity Date.

“Internal Control Event”
means a material weakness in, or fraud that involves management of the Company,
which fraud has a material effect on the Company’s internal controls over
public reporting, in each case as described in the Securities Laws.

“Internal Revenue Code”
means the Internal Revenue Code of 1986, as amended to the date hereof and from
time to time hereafter, and any successor statute.

“Investment”
means (i) any direct or indirect purchase or other acquisition by Company
or any of its Subsidiaries of, or of a beneficial interest in, any of the
Securities of any other Person; (ii) any direct or indirect redemption,
retirement, purchase or other acquisition for value, by the Company or any of
its Subsidiaries from any Person, of any Capital Stock of such Person;
(iii) any direct or indirect loan, advance or capital contributions by
Company or any of its Subsidiaries to any other Person, including all
indebtedness and accounts receivable from that other Person that are not current
assets or did not arise from sales to that other Person in the ordinary course
of business; and (iv) any direct or indirect Guarantee of any obligations
of any other Person other than endorsements for collection or deposit in the
ordinary course of business.  The amount
of any Investment shall be the original cost of such Investment plus the
cost of all additions thereto, without any adjustments for increases or
decreases in value, or write-ups, write-downs or write-offs with respect
to such Investment.

“Joint Venture”
means a joint venture, partnership or other similar arrangement, whether in
corporate, partnership or other legal form; provided, in no event shall
any corporate Subsidiary of any Person be considered to be a Joint Venture to
which such Person is a party.

“Landlord Collateral Access
Agreement” means a Landlord Waiver and Consent Agreement
substantially in a form approved by the Agents.

“Landlord Consent and
Estoppel” means, with respect to any Leasehold Property, a letter,
certificate or other instrument in writing from the lessor under the related
lease, pursuant to which, among other things, the landlord consents to the
granting of a Mortgage on such Leasehold Property by the Credit Party tenant,
such Landlord Consent and Estoppel to be in form and substance acceptable to
Administrative Agent in its reasonable discretion, but in any event sufficient
for Collateral Agent to obtain a Title Policy with respect to such Mortgage.

“Leasehold Property”
means any leasehold interest of any Credit Party as lessee under any lease of
real property, other than any such leasehold interest designated from time to
time by Administrative Agent in its sole discretion as not being required to be
included in the Collateral.

 21
 

 

“Lender” means
each financial institution listed on the signature pages hereto as a Lender,
and any other Person that becomes a party hereto pursuant to an Assignment
Agreement other than any such Person that ceases to be a party hereto pursuant
to an Assignment Agreement.

“LIBOR Rate Loan”
means a Loan bearing interest at a rate determined by reference to the Adjusted
LIBOR Rate.

“Lien” means
(i) any lien, mortgage, pledge, assignment, security interest, charge or
encumbrance of any kind (including any agreement to give any of the foregoing, any
conditional sale or other title retention agreement, and any lease in the
nature thereof) and any option, trust or other preferential arrangement having
the practical effect of any of the foregoing, and (ii) in the case of
Securities, any purchase option, call or similar right of a third party with
respect to such Securities.

“Loan” means a
Loan made by a Lender to the Borrowers pursuant to Section 2.1(a).

“Loan Account”
means an account maintained hereunder by the Administrative Agent on its books of account at its Principal
Office, and with respect to the Borrowers, in which the Borrowers will be
charged with all Loans made to, and all other Obligations incurred by, the
Borrowers.

“Loan
Exposure” means, with respect to any Lender at any time, the sum of
the outstanding principal amount of such Lender’s Loans at such time.

“Loan Extension”
means the making of a Loan.

“Malara Entities” means each of Malara Broadcast Group Inc., Malara Broadcast
Group of Fort Wayne LLC, Malara Broadcast Group of Fort Wayne Licensee LLC,
Malara Broadcast Group of Duluth LLC and Malara Broadcast Group of Duluth
Licensee LLC.

“Malara  Guaranty Agreement” means that certain Guaranty, dated as of
March 8, 2005, by the Company in favor of D.B. Zwirn Special Opportunities
Fund, L.P. as agent for the lender parties to the Existing Malara Facility, in
the form delivered to Administrative Agent and Lenders prior to their execution
of this Agreement and as such agreement may be amended from time to time
thereafter to the extent expressly permitted hereunder.

“Malara Waiver Documents”
means (i) the Limited Waiver and Second Amendment dated as of December 8, 2006
among the Malara Entities, the lenders listed on the signature pages thereof,
and D.B. Zwirn Special Opportunities Fund, L.P., as administrative agent for
such lenders and (ii) the letter agreement dated as of December 8, 2006 among
the Malara Entities and Granite regarding the Limited Waiver and Second
Amendment.

 22
 

 

“Margin Stock”
as defined in Regulation U of the Board of Governors of the Federal
Reserve System as in effect from time to time.

“Material Adverse Deviation”
means, as of any date of determination, an adverse deviation of more than the
Permitted Deviation from the aggregate amount set forth in the applicable
Budget Period for any line item of the Budget for such Budget Period, provided
that (i) with respect to the “Automation Capital Expenditures” and “Other
Capital Expenditures” line items of the Budget, “Material Adverse Deviation”,
as of any date of determination, shall mean that the aggregate amount Capital
Expenditures of such category made during the period from the first Budget
Period to the most recently concluded Budget Period exceeds by more than the
Permitted Deviation the aggregate amount of projected Capital Expenditures of
such category set forth in the applicable line item of the Budget, (ii) with
respect to the “Restructuring and Bankruptcy-Related Costs (Debtor)”, “Restructuring
and Bankruptcy-Related Costs (Pre-Petition Lender)” and “Restructuring and Bankruptcy-Related
Costs (Creditors Committee)” line items of the Budget, “Material Adverse
Deviation”, as of any date of determination, shall mean that the aggregate
amount of restructuring and bankruptcy-related costs of such category made
during the period from the first Budget Period to the most recently concluded
Budget Period exceeds by more than the Permitted Deviation the aggregate amount
of projected restructuring and bankruptcy-related costs of such category set
forth in the applicable line item of the Budget, and (iii) with respect to the “State
Taxes Payable” and “Other Expenses (franchise taxes, et. al.)” line items of
the Budget, “Material Adverse Deviation”, as of any date of determination,
shall mean that the aggregate amount of costs of such category made during the
period from the first Budget Period to the most recently concluded Budget
Period exceeds by more than the Permitted Deviation the aggregate amount of
projected costs of such category set forth in the applicable line item of the
Budget.

“Material Adverse Effect” means a
material adverse effect on and/or material adverse developments with respect to
(i) the business operations, properties, assets, condition (financial or
otherwise) or prospects of Company and its Subsidiaries taken as a whole,
except  for the commencement of the
Chapter 11 Cases and the effects that customarily result from the commencement
of chapter 11 cases; (ii) the ability of any Credit Party to fully and timely
perform its Obligations; (iii) the legality, validity, binding effect, or
enforceability against a Credit Party of a Credit Document to which it is a
party; (iv) the validity, perfection or priority of a Lien in favor of the
Collateral Agent for the benefit of the Agents and the Lenders on any of the
Collateral with an aggregate value in excess of $1,500,000 since the date
hereof; or (v) the rights, remedies and benefits available to, or conferred
upon, any Agent and any Lender under any Credit Document; provided that events,
developments and circumstances disclosed in the Disclosure Filings or in
Schedule 1.1(d) shall not be considered to have such a Material Adverse Effect
under clause (i) of this definition, although subsequent events, developments
and circumstances relating to such disclosed matters may result in a Material
Adverse Effect.

“Material Contract”
means, collectively (other than the Credit Documents or the Prepetition Credit
Documents), (i) any contract or other arrangement to which Company or any

 23
 

 

of its Subsidiaries is a
party for which breach, nonperformance, cancellation or failure to renew could
reasonably be expected to have a Material Adverse Effect (which shall include a
contract for which total payments to be made by or to the Company and/or any
Subsidiary of the Company exceed $250,000 per Fiscal Year) and (ii) any
agreement or instrument of the Company or any of its Subsidiaries evidencing or
governing Indebtedness with an aggregate outstanding principal amount in excess
of $750,000.

“Material Real Estate Asset”
means (i)(a) any fee-owned Real Estate Asset having a fair market
value in excess of $500,000 as of any date of determination, and (b) all
Leasehold Properties other than those with respect to which the aggregate
payments under the term of the lease are less than $250,000 per annum, or
(ii) any Real Estate Asset that the Requisite Lenders have determined is
material to the business, operations, properties, assets, condition (financial
or otherwise) or prospects of Company or any Subsidiary thereof.

“Moody’s” means
Moody’s Investor Services, Inc.

“Monthly  Excess Receipts” means, for any Budget Period, the excess if
any of the actual receipts for such Budget Period over the forecasted receipts
for such Budget Period.

“Monthly Excess Disbursements” means, for any Budget Period,
the excess if any of the actual disbursements for such Budget Period over the
forecasted disbursements for such Budget Period.

“Mortgage” means
each Mortgage substantially in the form of Exhibit H to the Senior Secured
Notes Indenture, as it may be further amended, supplemented or otherwise
modified from time to time.

“Multiemployer Plan”
means any Employee Benefit Plan which is a “multiemployer plan” as defined in
Section 3(37) of ERISA.

“NAIC” means The
National Association of Insurance Commissioners, and any successor thereto.

“Narrative Report”
means, with respect to the financial statements for which such narrative report
is required, a narrative report describing the operations of Company and its
Subsidiaries in the form prepared for presentation to senior management thereof
for the applicable month, Fiscal Quarter or Fiscal Year and for the period from
the beginning of the then current Fiscal Year to the end of such period to
which such financial statements relate with comparison to and variances from
the immediately preceding period and budget.

“Net Asset
Sale Proceeds” means, with respect to any Asset Sale, an amount
equal to: (i) the sum of Cash payments and Cash Equivalents received by Company
or any of its Subsidiaries from such Asset Sale (including any Cash or Cash
Equivalents received by way of deferred payment pursuant to, or by monetization
of, a note receivable or otherwise, but only as and when so received), other
than those pursuant to Section 6.8(b) minus (ii) any bona fide direct
costs incurred in connection with such Asset Sale, including (a) income or
gains taxes paid or payable by the seller as a result of any gain recognized in
connection with such Asset Sale during

 24
 

 

the tax period the sale
occurs (after taking into account any available tax credits or deductions and
any tax-sharing arrangements), (b) payment of the outstanding principal amount
of, premium or penalty, if any, and interest on any Indebtedness (other than
the Loans) that is secured by a Lien on the stock or assets in question and that
is required to be repaid under the terms thereof as a result of such Asset
Sale, (c) attorneys’ fees, accountants’ fees, investment banking fees, survey
costs, title insurance premiums, and related search and recording charges, and
(d) a reasonable reserve for any indemnification payments (fixed or
contingent) attributable to seller’s indemnities and representations and
warranties to purchaser in respect of such Asset Sale undertaken by Company or
any of its Subsidiaries in connection with such Asset Sale; provided that upon
release of any such reserve, the amount released shall be considered Net Asset
Sale Proceeds).

“Net Insurance/Condemnation
Proceeds” means an amount equal to: 
(i) any Cash payments or proceeds received by Company or any of its
Subsidiaries (a) under any casualty, business interruption or “key man”
insurance policies in respect of any covered loss thereunder, or (b) as a
result of the taking of any assets of Company or any of its Subsidiaries by any
Person pursuant to the power of eminent domain, condemnation or otherwise, or
pursuant to a sale of any such assets to a purchaser with such power under
threat of such a taking, minus (ii) (a) any actual and reasonable
costs incurred by Company or any of its Subsidiaries in connection with the
adjustment or settlement of any claims of Company or such Subsidiary in respect
thereof, and (b) any bona fide direct costs incurred in connection with
any sale of such assets as referred to in clause (i)(b) of this
definition, including income taxes paid or payable as a result of any gain
recognized in connection therewith (after taking into account any available tax
credits or deductions and any tax-sharing arrangements).

“Network Affiliation
Agreement” means, collectively, the affiliation agreements between
the Company or any Subsidiary of the Company and any of the Networks, as the
case may be, listed in Schedule 1.1(c) as any such agreement may be amended,
supplemented or otherwise modified as permitted by the terms of this Agreement
and including any replacement agreement.

“Networks” means
one or more of National Broadcasting Company, American Broadcasting Company,
CBS, Inc., Fox Broadcasting Company, My Network, or an Affiliate thereof, as
the context requires.

“Non-Debtor Subsidiary”
means a Subsidiary of the Company that is not, and is not required by the
Credit Documents to be, a Borrower or a Guarantor under this Agreement.

“Non-U.S. Lender” as defined in Section 2.19(e).

“Note” means a
promissory note in the form of Exhibit B, as it may be amended,
supplemented or otherwise modified from time to time.

“Notice” means a
Funding Notice or a Interest Election Request.

 25
 

 

“Obligations”
means all liabilities and obligations of every nature of each Credit Party from
time to time owed to the Agents (including former Agents), the Lenders or any
of them under any Credit Document, whether for principal, interest, fees,
expenses, indemnification or otherwise and whether primary, secondary, direct,
indirect, contingent, fixed or otherwise (including obligations of
performance).

“Organizational Documents”
means (i) with respect to any corporation, its certificate or articles of
incorporation or organization, as amended, and its by laws, as amended,
(ii) with respect to any limited partnership, its certificate of limited
partnership, as amended, and its partnership agreement, as amended,
(iii) with respect to any general partnership, its partnership agreement,
as amended, and (iv) with respect to any limited liability company, its
articles of organization, as amended, and its operating agreement, as
amended.  In the event any term or
condition of this Agreement or any other Credit Document requires any
Organizational Document to be certified by a secretary of state or similar governmental
official, the reference to any such “Organizational Document” shall only be to
a document of a type customarily certified by such governmental official.

“Other Taxes”
means any and all present or future stamp, registration, recording, filing,
transfer, documentary, excise or property Taxes, charges or similar levies
arising from any payment made hereunder or from the execution, delivery or
enforcement of, or otherwise with respect to or in connection with, any Credit
Document.

“Ownership
Reports” means, with respect
to any broadcast television station owned by the Credit Parties, the reports
and certifications filed with the FCC pursuant to 47 C.F.R. § 73.3615, or any
comparable reports filed pursuant to any successor regulation thereto.

“Patriot Act”
means the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001).

“PBGC” means the
Pension Benefit Guaranty Corporation or any successor thereto.

“Pension Plan”
means any Employee Benefit Plan, other than a Multiemployer Plan, which is
subject to Section 412 of the Internal Revenue Code or Section 302 of
ERISA.

“Permitted Deviation”
means 15%.

“Permitted Liens” means each of the following Liens:

(i)            Liens securing the Prepetition
Obligations;

(ii)           Liens for taxes, assessments or
governmental charges or claims the payment of which is not required under
Section 5.3;

(iii)          statutory Liens of landlords and Liens
of carriers, warehousemen, mechanics, suppliers, materialmen, repairmen and
other Liens imposed by law incurred in the ordinary course of business for sums
not yet delinquent or being contested in good

 26
 

 

faith, or, with respect to the Credit Parties, as to
which payment and enforcement is stayed under the Bankruptcy Code or pursuant
to orders of the Bankruptcy Court, if such reserve or other appropriate
provision, if any, as shall be required by GAAP shall have been made in respect
thereof;

(iv)          Liens incurred or deposits made in the
ordinary course of business in connection with workers’ compensation, unemployment
insurance and other types of social security, including any Lien securing
letters of credit issued in the ordinary course of business consistent with
past practice in connection therewith, or to secure the performance of tenders,
statutory obligations, surety and appeal bonds, bids, leases, government
contracts, performance and return-of-money bonds and other similar obligations
(exclusive of obligations for the payment of borrowed money) in the ordinary
course of business;

(v)           judgment Liens not giving rise to an
Event of Default so long as such Lien is adequately bonded and any appropriate
legal proceedings which may have been duly initiated for the review of such
judgment shall not have been finally terminated or the period within which such
proceedings may be initiated shall not have expired;

(vi)          easements, rights-of-way, zoning
restrictions, minor defects and irregularities in title and other similar
charges or encumbrances in respect of real property that do not, individually
or in the aggregate, have a material adverse effect on the value of the real
property encumbered thereby and do not interfere in any material respect with
the ordinary conduct of the business of the Company or any of its Subsidiaries;

(vii)         [Reserved];

(viii)        Liens upon specific items of inventory
or other goods and proceeds thereof of any Person 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 in the ordinary course of business;

(ix)           [Reserved];

(x)            Liens encumbering deposits made to
secure ordinary course business obligations arising from statutory, regulatory
or contractual (other than with respect to Indebtedness) requirements of the
Company or any of its Subsidiaries, including rights of offset and set-off;

(xi)           leases or subleases granted to others
not interfering in any material respect with the business of the Company or any
of the Company’s Subsidiaries and any interest or title of a lessor under any
lease permitted by this Agreement;

(xii)          Liens on any interest or title of a
lessor under any real property leased by the Company or any of the Company’s
Subsidiaries;

 27
 

 

(xiii)         the Lien created pursuant to
Section 12.9 of the Senior Secured Notes Indenture in connection with the
initial deposit by the Company of $1.0 million in the Trustee Reserve
Fund;

(xiv)        Liens existing on the Filing Date, as
described on Schedule 6.2 (other than the Liens described in
clause (i) above); provided, that (i) no such Lien shall at
any time be extended to cover any additional property not subject thereto on
the Filing Date and (ii) the principal amount of the Indebtedness secured
by such Liens shall not be extended, renewed, refunded or refinanced;

(xv)         replacement Liens on the Collateral
granted to secure the Prepetition Obligations to the extent provided in the
Bankruptcy Court Orders.

“Permitted
Priority Liens” means Liens permitted under clauses (iv), (vi), (x),
(xi), and (xii) of the definition of the term “Permitted Lien”; provided,
that the aggregate amount of Indebtedness for borrowed money secured by such
Liens shall not exceed $750,000.

“Person” means
and includes natural persons, corporations, limited partnerships, general
partnerships, limited liability companies, limited liability partnerships,
joint stock companies, Joint Ventures, associations, companies, trusts, banks,
trust companies, land trusts, business trusts or other organizations, whether
or not legal entities, and Governmental Authorities.

“Platform” as
defined in Section 9.9(b).

“Pledge Agreement” means any pledge agreement or similar agreement or
instrument made by a Credit Party in favor of the Collateral Agent for the
benefit of the Agents and the Lenders, in each case, in substantially the same
form and substance as the pledge agreements or similar agreements or
instruments that secure the Prepetition Obligations and otherwise in form and
substance satisfactory to the Collateral Agent.

“Preferred Stock”
means the Company’s 12.75% cumulative exchangeable preferred stock.

“Prepetition Agents”
means The Bank of New York, as collateral agent for the Prepetition
Indebtedness Holders, The Bank of New York, as trustee for the holders of the
Senior Secured Notes, and Silver Point, as administrative agent for the
Prepetition Lenders.

“Prepetition Collateral”
means all collateral purported to be granted pursuant to the Prepetition Credit
Documents.

“Prepetition Credit
Agreement” means that certain Financing Agreement, dated as of July 5,
2006, by and among the Company, the Guarantors party thereto, the Prepetition
Agents and the Prepetition Lenders, as amended, restated, supplemented or
otherwise modified from time to time prior to the date hereof.

 28
 

 

“Prepetition Credit
Documents” means the Prepetition Credit Agreement, the Senior
Secured Notes Indenture and all instruments and documents executed at any time
in connection with either thereof.

“Prepetition Indebtedness
Holders” means, collectively, the Prepetition Lenders and the
holders of the Senior Secured Notes.

“Prepetition Lenders”
means the lenders party to the Prepetition Credit Agreement, from time to time,
under and as defined in the Prepetition Credit Agreement.

“Prepetition Obligations”
means all indebtedness, obligations and liabilities of the Company and its
Subsidiaries to the Prepetition Agents and the Prepetition Indebtedness Holders
incurred prior to the Filing Date arising from or related to the Prepetition
Credit Agreement, the Senior Secured Notes Indenture and the other agreements,
instruments and other documents related thereto including fees, premiums
(including repayment premiums, if any, owing under the Senior Secured Notes),
expenses, indemnities and reimbursement obligations due thereunder and interest
thereon accruing both before and after the Filing Date, whether such
indebtedness, obligations or liabilities are direct or indirect, joint or
several, absolute or contingent, due or to become due, whether for payment or
performance, now existing or hereafter arising.

“Pre-Petition Payment”
shall mean a payment (by way of adequate protection or otherwise) of principal
and interest or otherwise on account of any pre-petition Indebtedness or trade
payables or other pre-petition claims against the Borrowers.

“Prime Rate”
means the rate of interest quoted in The Wall Street Journal,
Money Rates Section as the Prime Rate (currently defined as the base rate on
corporate loans posted by at least seventy five percent (75%) of the
nation’s thirty (30) largest banks), as in effect from time to time.  The Prime Rate is a reference rate and does
not necessarily represent the lowest or best rate actually charged to any
customer.  Any Agent or any other Lender
may make commercial loans or other loans at rates of interest at, above or
below the Prime Rate.

“Principal Office”
means, for Administrative Agent, such Person’s “Principal Office” as set forth
on Appendix B, or such other office as such Person may from time to time
designate in writing to Administrative Borrower and each Lender.

“Pro Rata Share”
means the percentage obtained by dividing (a) the Loan Exposure of that
Lender, by (b) the aggregate Loan Exposure of all Lenders.

“Real Estate Asset”
means, at any time of determination, any Leasehold Property or fee-owned real
property then owned by any Credit Party in any real property.

“Record Document”
means, with respect to any Leasehold Property, (i) the lease evidencing
such Leasehold Property or a memorandum thereof, executed and acknowledged by
the owner of the affected real property, as lessor, or (ii) if such
Leasehold Property was acquired or subleased from the holder of a Recorded
Leasehold Interest, the applicable assignment or sublease document, executed
and acknowledged by such holder, in each case in form sufficient to give such
constructive notice upon recordation and otherwise in form reasonably
satisfactory to the Agents.

 29
 

 

“Recorded Leasehold
Interest” means a Leasehold Property with respect to which a Record
Document has been recorded in all places necessary or desirable, in
Administrative Agent’s reasonable judgment, to give constructive notice of such
Leasehold Property to third-party purchasers and encumbrancers of the affected
real property.

“Register” as
defined in Section 2.6(b).

“Regulation D”
means Regulation D of the Board of Governors of the Federal Reserve System, as
in effect from time to time.

“Reimbursement Date”
as defined in Section 2.3(d).

“Reimbursement
and Refinancing Agreement” means that certain Reimbursement and
Refinancing Agreement, dated as of March 8, 2005, as amended through the date
hereof and, after the date hereof, to the extent permitted by the terms of this
Agreement, by and between the Malara Entities and the Company.

“Related Agreements”
means, collectively, the Prepetition Credit Agreement, the Senior Secured Notes
Indenture, the Station Agreements, the Malara Guaranty Agreement, each Network
Affiliation Agreement, the Reimbursement and Refinancing Agreement and the
Malara Waiver Documents.

“Related Fund”
means, with respect to any Lender that is an investment fund, any other
investment fund that invests in commercial loans and that is managed or advised
by the same investment advisor as such Lender or by an Affiliate of such
investment advisor.  With respect to
Silver Point, Related Fund shall also include any swap, special purpose
vehicles purchasing or acquiring security interests in collateralized loan
obligations or any other vehicle through which Silver Point may leverage its
investments from time to time.

“Release” means
any release, spill, emission, leaking, pumping, pouring, injection, escaping,
deposit, disposal, discharge, dispersal, dumping, leaching or migration of any
Hazardous Material into the indoor or outdoor environment (including the
abandonment or disposal of any barrels, containers or other closed receptacles
containing any Hazardous Material), including the movement of any Hazardous
Material through the air, soil, surface water or groundwater.

“Reorganization
Plan” means the plan of reorganization filed on the first day of the
Chapter 11 Cases, as such plan may be amended with the prior written consent of
the Requisite Lenders.

“Replacement Lender”
as defined in Section 2.22.

 30

 

“Requisite Lenders”
means, at any time, Lenders having Loan Exposures and unused Commitments
representing more than 50% of the sum of the total Loan Exposures and unused
Commitments at such time.

“Restricted Junior Payment”
means (i) any dividend or other distribution, direct or indirect, on
account of any shares of any class of stock of Company now or hereafter
outstanding, except a dividend payable solely in shares of Qualified Capital
Stock of the Company to holders of such Capital Stock; (ii) any redemption,
retirement, sinking fund or similar payment, purchase or other acquisition for
value, direct or indirect, of any shares of any class of stock of Company now
or hereafter outstanding; (iii) any payment made to retire, or to obtain
the surrender of, any outstanding warrants, options or other rights to acquire
shares of any class of stock of Company now or hereafter outstanding; and
(iv) any payment or prepayment of principal of, premium, if any, or
interest on, or redemption, purchase, retirement, defeasance (including
in-substance or legal defeasance), sinking fund or similar payment with respect
to, any subordinated Indebtedness.

“Restructuring Support
Agreement” means the Restructuring Support Agreement dated as of
December 11, 2006 among the Company and the Subsidiaries of the Company named
therein, Silver Point Finance, LLC and its affiliated investment funds that are
signatories thereto and the Other Secured Claimholders identified on the
signature pages thereof, as amended, restated, supplemented or otherwise
modified from time to time in accordance with the terms thereof.

“S&P” means
Standard & Poor’s Ratings Group, a division of The McGraw-Hill
Companies, Inc.

“Secured Parties”
means the Lenders and the Agents.

“Securities”
means any stock, shares, partnership interests, voting trust certificates,
certificates of interest or participation in any profit-sharing agreement or
arrangement, options, warrants, bonds, debentures, notes, or other evidences of
indebtedness, secured or unsecured, convertible, subordinated or otherwise, or
in general any instruments commonly known as “securities” or any certificates
of interest, shares or participations in temporary or interim certificates for
the purchase or acquisition of, or any right to subscribe to, purchase or
acquire, any of the foregoing.

“Securities Act”
means the Securities Act of 1933, as amended from time to time, and any
successor statute.

“Securities Laws”
means the Securities Act, the Exchange Act, Sarbanes-Oxley Act of 2002 and the
applicable accounting and auditing principles, rules, standards and practices
promulgated, approved or incorporated by the Securities and Exchange Commission
or the Public Company Accounting Oversight Board, as each of the foregoing may
be amended and in effect on any applicable date hereunder.

“Security Agreement”
means any security agreement or similar agreement or instrument (including this
Agreement) made by a Credit Party in favor of the Collateral Agent

 31
 

 

for the benefit of the
Secured Parties, in each case, in substantially the same form and substance as
the security agreement or similar agreement or instrument that secures the
Prepetition Obligations and otherwise in form and substance satisfactory to the
Collateral Agent.

“Senior Secured Notes” means the Company’s 93⁄4% Senior Secured Notes due 2010.

“Senior Secured Notes
Documents” means the
Senior Secured Notes Indenture.

“Senior Secured Notes
Indenture” means the
Company’s 93⁄4% Senior Secured Notes Indenture dated as of December 22, 2003
among the Company, as issuer, certain Subsidiaries of the Company, as
guarantors, and The Bank of New York, as trustee, as amended through the date
hereof.

“Silver Point”
as defined in the preamble hereto.

“SPC” as defined
in Section 12.7.

“Station Agreements”
means, collectively, the Duluth Option Agreement, the Fort Wayne Option
Agreement, the Duluth Shared Services Agreement, the Fort Wayne Shared Services
Agreement, the Duluth Advertising Representation Agreement, the Fort Wayne
Advertising Representation Agreement, the Duluth Management Services Agreement,
the Fort Wayne Management Services Agreement and the Guaranty Fee Agreement.

“Subject Transaction”
as defined in Section 6.7(i).

“Subsidiary”
means, with respect to any Person, any corporation, partnership, limited
liability company, association, joint venture or other business entity of which
more than fifty percent (50%) of the total voting power of shares of stock
or other ownership interests entitled (without regard to the occurrence of any
contingency) to vote in the election of the Person or Persons (whether
directors, managers, trustees or other Persons performing similar functions)
having the power to direct or cause the direction of the management and
policies thereof is at the time owned or controlled, directly or indirectly, by
that Person or one or more of the other Subsidiaries of that Person or a
combination thereof; provided, in determining the percentage of
ownership interests of any Person controlled by another Person, no ownership
interest in the nature of a “qualifying share” of the former Person shall be
deemed to be outstanding.

“Tax” means any
present or future tax, levy, impost, duty, assessment, charge, fee, deduction
or withholding of any nature and whatever called, by whomsoever, on whomsoever
and wherever imposed, levied, collected, withheld or assessed; provided,
“Tax on the overall net income” of a Person shall be construed as a reference
to a tax imposed by the jurisdiction in which that Person is organized or in
which that Person’s applicable principal office (and/or, in the case of a
Lender, its lending office) is located or in which that Person (and/or, in the
case of a Lender, its lending office) is deemed to be doing business (other
than a jurisdiction in which such Person is treated as doing business as a
result of its entering into any Credit Document or its participation in the
transactions governed thereby) on all or part of the net

 32
 

 

income, profits or gains
(whether worldwide, or only insofar as such income, profits or gains are
considered to arise in or to relate to a particular jurisdiction, or otherwise)
of that Person (and/or, in the case of a Lender, its applicable lending
office).

“Tax-Related Person” means by Person (including a beneficial
owner of an interest in a pass-through entity) whose income is realized through
or determined by reference to an Agent, a Lender or Participant or any Tax
Related Person of any of the foregoing.

“Terminated Lender”
as defined in Section 2.22.

“Terrorism Laws”
means any of the following (a) Executive Order 13224 issued by the
President of the United States, (b) the Terrorism Sanctions Regulations
(Title 31 Part 595 of the U.S. Code of Federal Regulations), (c) the
Terrorism List Governments Sanctions Regulations (Title 31 Part 596 of the U.S.
Code of Federal Regulations), (d) the Foreign Terrorist Organizations
Sanctions Regulations (Title 31 Part 597 of the U.S. Code of Federal
Regulations), (e) the Patriot Act (as it may be subsequently codified),
(f) all other present and future legal requirements of any Governmental
Authority addressing, relating to, or attempting to eliminate, terrorist acts
and acts of war and (g) any regulations promulgated pursuant thereto or
pursuant to any legal requirements of any Governmental Authority governing
terrorist acts or acts of war.

“Trustee Reserve Fund”
means the account designated by the Trustee pursuant to Section 12.9 of
the Indenture.

“Type of Loan”
means a Base Rate Loan or a LIBOR Rate Loan.

“UCC” means the
Uniform Commercial Code (or any similar or equivalent legislation) as in
effect in any applicable jurisdiction.

“Unadjusted LIBOR Rate
Component” means that component of the interest costs to the
Borrowers in respect of a LIBOR Rate Loan that is based upon the rate obtained
pursuant to clause (B)(i) of the definition of Adjusted LIBOR Rate.

“Unused Line Fee”
has the meaning specified therefor in Section 2.10(b).

“Voting Stock” of any Person as of any date means the Capital Stock of
such Person that is at the time entitled to vote in the election of the board
of directors of such Person.

1.2          Accounting
Terms.  Except as otherwise
expressly provided herein, all accounting terms not otherwise defined herein
shall have the meanings assigned to them in conformity with GAAP.  Financial statements and other information required
to be delivered by Company to Lenders pursuant to Section 5.1(a), 5.1(b)
and 5.1(c) shall be prepared in accordance with GAAP as in effect at the time
of such preparation (and delivered together with the reconciliation statements
provided for in Section 5.1(e), if applicable).  Subject to the foregoing, calculations in
connection with the definitions, covenants and other provisions hereof shall
utilize accounting principles and policies in conformity with those used to
prepare the Historical Financial Statements.

 33
 

 

1.3          Interpretation,
etc.  Any of the terms defined
herein may, unless the context otherwise requires, be used in the singular or
the plural, depending on the reference. 
References herein to any Section, Appendix, Schedule or Exhibit shall be
to a Section, an Appendix, a Schedule or an Exhibit, as the case may be, hereof
unless otherwise specifically provided. 
The use herein of the word “include” or “including,” when following any
general statement, term or matter, shall not be construed to limit such
statement, term or matter to the specific items or matters set forth
immediately following such word or to similar items or matters, whether or not
no limiting language (such as “without limitation” or “but not limited to” or
words of similar import) is used with reference thereto, but rather shall be
deemed to refer to all other items or matters that fall within the broadest
possible scope of such general statement, term or matter.

SECTION 2.                                                         LOANS

2.1          Loans.

(a)           Commitment.  During the Commitment Period, subject to the
terms and conditions hereof, each Lender severally agrees to make Loans to the
Borrowers in an aggregate amount up to but not exceeding such Lender’s
Commitment.  Amounts borrowed pursuant to
this Section 2.1(a) may be repaid and reborrowed during the Commitment
Period.  Each Lender’s Commitment shall
expire on the Final Maturity Date and all Loans and all other amounts owed
hereunder with respect to the Loans and the Commitments shall be paid in full
no later than such date.

(b)           Notwithstanding the foregoing:

(i)            The aggregate principal
amount of Loans which may be drawn during any Budget Period shall not exceed
the maximum aggregate principal amount of Loans projected to be drawn during
such Budget Period as set forth in the Budget (after giving effect to the
Permitted Deviation therefrom); provided, that the limitations of this
clause (i) shall at no time prevent the Borrowers from drawing any amount that
would, after giving effect to such draw, not result in there being more than $5
million of Loans outstanding and the payment of principal, interest and fees
with respect to any portion of such $5 million so drawn shall not violate the
limitations with respect to Budget payments set forth in this Agreement.

(ii)           During the Interim Period, the
aggregate principal amount of Loans outstanding at any time shall not exceed
$5,000,000.

(iii)          Within the foregoing limits,
the Borrowers may borrow, repay and reborrow Loans, on or after the Interim
Facility Effective Date and prior to the Final Maturity Date, subject to the
terms, provisions and limitations set forth herein.

(c)           Borrowing Mechanics for Loans.

(i)            Loans shall be made in an
aggregate minimum amount of $500,000 and integral multiples of $250,000 in
excess of that amount.

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(ii)           Whenever a Borrower desires
that Lenders make Loans, the Administrative Borrower shall deliver to
Administrative Agent a fully executed Funding Notice no later than 10:00 a.m.
(New York City time) at least three Business Days in advance of the proposed Credit
Date in the case of a LIBOR Rate Loan, and, at least one Business Day in
advance of the proposed Credit Date in the case of a Loan that is a Base Rate
Loan and such Funding Notice shall include a certification by an Authorized
Officer of the Administrative Borrower that the aggregate principal amount of
Loans drawn during the current Budget Period (after giving effect to the
proposed borrowing) shall not exceed the maximum aggregate principal amount of
Loans projected to be drawn during such Budget Period as set forth in the
Budget (subject to the Permitted Deviation therefrom and except as otherwise
provided in Section 2.1(b)(i)).  Except
as otherwise provided herein, a Funding Notice for a Loan shall be irrevocable
when given, and the Borrowers shall be bound to make a borrowing in accordance
therewith.  Administrative Agent and
Lenders may act without liability upon the basis of written, telecopied or
telephonic notice believed by Administrative Agent in good faith to be from the
Administrative Borrower (or from any Authorized Officer thereof designated in
writing purportedly from the Administrative Borrower to Administrative
Agent).  Administrative Agent and each
Lender shall be entitled to rely conclusively on any Authorized Officer’s
authority to request a Loan on behalf of any Borrower until Administrative
Agent receives written notice to the contrary. 
Administrative Agent and Lenders shall have no duty to verify the
authenticity of the signature appearing on any written Funding Notice.

(iii)          Notice of receipt of each
Funding Notice in respect of Loans, together with the amount of each Lender’s
Pro Rata Share thereof, if any, together with the applicable interest rate,
shall be provided by Administrative Agent to each applicable Lender by
telefacsimile with reasonable promptness, but (provided Administrative
Agent shall have received such notice by 10:00 a.m. (New York City time)) not
later than 2:00 p.m. (New York City time) on the same day as Administrative
Agent’s receipt of such Notice from the Borrower.

(iv)          Each Lender shall make the
amount of its Loan available to Administrative Agent not later than 12:00 p.m.
(New York City time) on the applicable Credit Date by wire transfer of same day
funds in Dollars, to Administrative Agent’s Account.  Except as provided herein, upon satisfaction
or waiver of the conditions precedent specified herein, Administrative Agent
shall make the proceeds of such Loans available to the applicable Borrower on
the applicable Credit Date by causing an amount of same day funds in Dollars
equal to the proceeds of all such Loans received by Administrative Agent from
Lenders to be credited to the account of the applicable Borrower set forth on
Schedule 2.2 hereto or such other account as may be designated in writing
to Administrative Agent by the Administrative Borrower.

2.2          [Reserved].

2.3          [Reserved].

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2.4          Pro Rata Shares; Availability of Funds.

(a)           Pro Rata Shares.  All Loans shall be made, and all
participations purchased, by Lenders simultaneously and proportionately to their
respective Pro Rata Shares, it being understood that no Lender shall be
responsible for any default by any other Lender in such other Lender’s
obligation to make a Loan requested hereunder or purchase a participation
required hereby nor shall any Loan Commitment of any Lender be increased or
decreased as a result of a default by any other Lender in such other Lender’s
obligation to make a Loan requested hereunder or purchase a participation
required hereby.

(b)           Availability of Funds.  Unless Administrative Agent shall have been
notified by any Lender prior to the applicable Credit Date that such Lender
does not intend to make available to Administrative Agent the amount of such
Lender’s Loan requested on such Credit Date, Administrative Agent may assume
that such Lender has made such amount available to Administrative Agent on such
Credit Date and Administrative Agent may, in its sole discretion, but shall not
be obligated to, make available to the Borrowers a corresponding amount on such
Credit Date.  If such corresponding
amount is not in fact made available to Administrative Agent by such Lender,
Administrative Agent shall be entitled to recover such corresponding amount on
demand from such Lender together with interest thereon, for each day from such Credit
Date until the date such amount is paid to Administrative Agent, at the
customary rate set by Administrative Agent for the correction of errors among
banks for three (3) Business Days and thereafter at the Base Rate.  If such Lender does not pay such
corresponding amount forthwith upon Administrative Agent’s demand therefor,
Administrative Agent shall promptly notify the Administrative Borrower and the
Borrowers shall immediately pay such corresponding amount to Administrative
Agent together with interest thereon, for each day from such Credit Date until
the date such amount is paid to Administrative Agent, at the rate payable
hereunder for Base Rate Loans for such Class of Loans.  Nothing in this Section 2.4(b) shall be
deemed to relieve any Lender from its obligation to fulfill its Loan
Commitments hereunder or to prejudice any rights that a Borrower may have
against any Lender as a result of any default by such Lender hereunder.

2.5          Use of Proceeds.  The proceeds of the Loans shall be used
(A) to pay for the fees, costs and expenses owing to the Agents, the
Lenders, the Prepetition Agents and the Prepetition Indebtedness Holders in
accordance with the Credit Documents, (B) to fund ongoing working capital
requirements of the Company and its Subsidiaries including, without limitation,
payments of the administrative expenses of the kind specified in Section 503(b)
of the Bankruptcy Code incurred in the ordinary course of business of the
Borrowers or otherwise approved by the Bankruptcy Court (and not otherwise
prohibited under this Agreement), (C) to pay for fees, costs and expenses,
including, without limitation, Carve-Out Expenses, (D) to pay amounts
owing on the Obligations as provided herein and (E) for general corporate
purposes.  No portion of the proceeds of
any Loan Extension shall be used in any manner that causes or might cause such
Loan Extension or the application of such proceeds to violate Regulation T,
Regulation U or Regulation X of the Board of Governors of the Federal Reserve
System or any other regulation thereof or to violate the Exchange Act.

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2.6          Evidence of Debt; Register; Lenders’ Books and
Records; Notes.

(a)           Lenders’ Evidence of Debt.  Each Lender shall maintain on its internal
records an account or accounts evidencing the Obligations of the Credit Parties
to such Lender, including the amounts of the Loans made by it and each
repayment and prepayment in respect thereof. 
Any such recordation shall be conclusive and binding on the Credit
Parties, absent manifest error; provided, that the failure to make any
such recordation, or any error in such recordation, shall not affect the Credit
Parties’ Obligations in respect of any applicable Loans; and provided  further,
in the event of any inconsistency between the Register and any Lender’s records,
the recordations in the Register shall govern.

(b)           Register.  Administrative Agent shall maintain at its
Principal Office a register for the recordation of the names and addresses of
Lenders and Loans of each Lender from time to time (the “Register”).  The Register shall be available for
inspection by any Credit Party or any Lender at any reasonable time and from
time to time upon reasonable prior notice. 
Administrative Agent shall record in the Register the Loans, and each
repayment or prepayment in respect of the principal amount of the Loans, and
any such recordation shall be conclusive and binding on the Credit Parties and
each Lender, absent manifest error; provided, failure to make any such
recordation, or any error in such recordation, shall not affect the Credit
Parties’ Obligations in respect of any Loan. 
Each Credit Party hereby designates the entity serving as Administrative
Agent to serve as such Credit Party’s agent solely for purposes of maintaining
the Register as provided in this Section 2.6, and each Credit Party hereby
agrees that, to the extent such entity serves in such capacity, the entity
serving as Administrative Agent and its officers, directors, employees, agents
and affiliates shall constitute “Indemnitees.”

(c)           Notes.  If so requested by any Lender by written
notice to the Administrative Borrower (with a copy to Administrative Agent) at
least two (2) Business Days prior to the Closing Date, or at any time
thereafter, the Borrowers shall execute and deliver to such Lender (and/or, if
applicable and if so specified in such notice, to any Person who is an assignee
of such Lender pursuant to Section 12.6) on the Closing Date (or, if such
notice is delivered after the Closing Date, promptly after receipt of such
notice) a Note or Notes to evidence such Lender’s Loan.

2.7          Interest on Loans.

(a)           Except as otherwise set forth herein,
each Loan shall be a LIBOR Rate Loan and shall bear interest on the unpaid
principal amount thereof from the date made through repayment (whether by acceleration
or otherwise) thereof at the Adjusted LIBOR Rate plus the Applicable
Margin.  Except as otherwise provided
herein, each Base Rate Loan shall bear interest on the unpaid principal amount
thereof at the Base Rate plus the Applicable Margin.

(b)           The Interest Period shall be selected
by the Administrative Borrower and notified to Administrative Agent and Lenders
pursuant to the applicable Funding Notice or Interest Election Request, as the
case may be.

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(c)           There shall be no more than four
(4) Interest Periods outstanding at any time.  In the event the Administrative Borrower
fails to specify an Interest Period in the applicable Funding Notice or
Interest Election Request, the Borrower shall be deemed to have selected an
Interest Period of one month.  As soon as
practicable after 10:00 a.m. (New York City time) on each Interest Rate
Determination Date, Administrative Agent shall determine (which determination
shall, absent manifest error, be final, conclusive and binding upon all
parties) the interest rate that shall apply to the LIBOR Rate Loans for which
an interest rate is then being determined for the applicable Interest Period
and shall promptly give notice thereof (in writing or by telephone confirmed in
writing) to Administrative Borrower and each Lender.

(d)           Interest payable on LIBOR Rate Loans
shall be computed on the basis of a 360-day year for the actual number of
days elapsed in the period during which it accrues.  Interest payable on Base Rate Loans shall be
computed on the basis of a year of 365 days (or 366 days in a leap
year), and in each case shall be payable for the actual number of days
elapsed.  In computing interest on any
Loan, the date of the making of such Loan shall be included, and the date of
payment of such Loan or the expiration date of an Interest Period applicable to
such Loan shall be excluded; provided, if a Loan is repaid on the same
day on which it is made, one day’s interest shall be paid on that Loan.

(e)           Except as otherwise set forth herein,
interest on each Loan shall be payable in arrears on and to (i) each
Interest Payment Date applicable to that Loan; (ii) upon any prepayment of
that Loan, whether voluntary or mandatory, to the extent accrued on the amount
being prepaid; and (iii) at maturity, including final maturity.

2.8          Interest
Election Requests.  The
Administrative Borrower may elect the Interest Period for any Loan as provided
in this Section 2.8.  Each
telephonic and written Interest Election Request shall be irrevocable and be
delivered to the Administrative Agent no later than three (3) Business
Days prior to the end of the preceding Interest Period and shall specify the
following information in compliance with Section 2.1:

(i)            the Loans to which such Interest
Election Request applies;

(ii)           the effective date of the election
made pursuant to such Interest Election Request, which shall be a Business Day;
and

(iii)          the Interest Period therefor after
giving effect to such election, which shall be a period contemplated by the
definition of the term “Interest Period” and permitted under
Section 2.7(c).

2.9          Default
Interest.  Upon the occurrence
and during the continuance of an Event of Default, the principal amount of all
Loans outstanding and, to the extent permitted by applicable law, any interest
payments on the Loans or any fees or other amounts owed hereunder, shall
thereafter bear interest (including post petition interest in any proceeding
under the Bankruptcy Code or other applicable bankruptcy laws) payable on
demand at a rate that is two percent (2%) per annum in excess of the
interest rate otherwise payable hereunder with respect to the applicable Loans
(or, in the case of any such fees and other amounts, at a rate which is two

 38
 

 

percent (2%) per
annum in excess of the interest rate otherwise payable hereunder for Base Rate
Loans); provided, in the case of LIBOR Rate Loans, upon the expiration
of the Interest Period in effect at the time any such increase in interest rate
is effective such LIBOR Rate Loans shall thereupon become Base Rate Loans and
shall thereafter bear interest payable upon demand at a rate which is two
percent (2%) per annum in excess of the interest rate otherwise payable
hereunder for Base Rate Loans.  Payment
or acceptance of the increased rates of interest provided for in this
Section 2.9 is not a permitted alternative to timely payment and shall not
constitute a waiver of any Event of Default or otherwise prejudice or limit any
rights or remedies of Administrative Agent or any Lender.

2.10        Fees.

(a)           Agents Fees.  The Borrowers agree to pay to Agents all fees
specified in the Fee Letter in the amounts and at the times specified therein
and to Agents such other fees in the amounts and at the times separately agreed
upon.

(b)           Unused Line Fee.  From and after the Interim Facility Effective
Date and until the Final Maturity Date, the Borrowers shall pay to the
Administrative Agent for the account of the Lenders, in accordance with their
Pro Rata Shares, an unused line fee (the “Unused Line Fee”),
which shall accrue at the rate per annum of 0.50% of the total Commitment
amount over the average daily outstanding principal amount of all Loans during
the calculation period and shall be payable monthly in arrears on the last
Business Day of each calendar month commencing December 2006.

2.11        Repayment of
Loans.  The Borrowers hereby,
jointly and severally as provided in Section 2.24, unconditionally promise
to pay to the Administrative Agent for account of the Lenders the outstanding
principal amount of the Loans on the Final Maturity Date.

2.12        Voluntary Prepayment of Loans/Commitment Reductions.

(a)           Voluntary Prepayments of Loans.  Subject to Section 2.17(c), the Borrowers
may, upon no fewer than one Business Days’ prior written or telephonic notice
confirmed in writing to Administrative Agent, prepay the principal of any Loan,
in whole or in part, in an aggregate principal amount of not less than $500,000
(or, if less, the remaining principal balance outstanding of the Loans) and
integral multiples of $250,000 in excess thereof; provided that except as
provided in clause (b) of this Section 2.12, no such prepayment shall reduce
the Commitments hereunder.

(b)           Voluntary Commitment Reductions.  The Borrowers may, upon not less than one
Business Days’ prior written or telephonic notice confirmed in writing to
Administrative Agent (which original written or telephonic notice
Administrative Agent will promptly transmit by telefacsimile or telephone to
each applicable Lender), at any time and from time to time permanently reduce
the Commitments to an amount not less than $15 million.

(ii)           Administrative Borrower’s
notice to Administrative Agent shall designate the date (which shall be a
Business Day) of such reduction and the amount thereof, and such reduction of
the Commitments shall be effective on the date specified in such notice and
shall reduce the Commitment of each Lender proportionately to its Pro Rata
Share thereof.

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2.13        Mandatory Prepayments.

(a)           Asset Sales.  No later than the first Business Day
following the date of receipt by Company or any of its Subsidiaries of any Net
Asset Sale Proceeds, Borrowers shall prepay the Loans in the full amount of
such Net Asset Sale Proceeds; provided, (i) so long as no Default or Event
of Default shall have occurred and be continuing, and (ii)  to the extent
that aggregate Net Asset Sale Proceeds from the Filing Date through the
applicable date of determination do not exceed $250,000, Company shall have the
option, directly or through one or more of its Subsidiaries to invest such Net
Asset Sale Proceeds within one hundred eighty (180) days of receipt
thereof in long term productive assets of the general type used in the business
of Company and its Subsidiaries, which investment may include the repair,
restoration or replacement of the applicable assets thereof.

(b)           Insurance/Condemnation Proceeds.  No later than the first Business Day
following the date of receipt by Company or any of its Subsidiaries, or
Administrative Agent as loss payee, of any Net Insurance/Condemnation Proceeds,
the Borrowers shall prepay outstanding Loans in an aggregate amount equal to
such Net Insurance/Condemnation Proceeds; provided, (i) so long as
no Default or Event of Default shall have occurred and be continuing, and
(ii) to the extent that aggregate Net Insurance/Condemnation Proceeds from
the Closing Date through the applicable date of determination do not exceed
$250,000, Company shall have the option, directly or through one or more of its
Subsidiaries to invest such Net Insurance/Condemnation Proceeds within one
hundred eighty (180) days of receipt thereof in long term productive
assets of the general type used in the business of Company and its
Subsidiaries, which investment may include the repair, restoration or
replacement of the applicable assets thereof.

(c)           Issuance of Capital Stock.  On the date of receipt by Company or any of
its Subsidiaries of cash proceeds from a capital contribution to, or the
issuance of any Capital Stock of, Company or any of its Subsidiaries (other
than issuances of Capital Stock by a Subsidiary to the Company and capital
contributions by the Company to a Subsidiary), the Borrowers shall prepay the
Loans in an aggregate amount equal to one hundred percent (100%) of such
proceeds, net of underwriting discounts and commissions and other reasonable costs
and expenses associated therewith, including reasonable legal fees and
expenses; provided that any Lender, at its option, may elect not to
receive its share of any such payment pursuant to this clause (c) and such
amounts shall be otherwise available to the Company in accordance with the
terms hereof.

(d)           Excess Borrowings.  The Borrowers will immediately prepay the
Loans on any date that the aggregate principal amount of all Loans exceeds the
lesser of  (A) the difference
between (x) the total Commitment and (y) the aggregate amount of all
reserves established by the Administrative Agent prior to such date in
accordance with the definition of the term “Availability” and (B) the
maximum aggregate principal amount of Loans projected

 40

 

to be outstanding during
the then current Budget Period as set forth in the Budget (subject to the
Permitted Deviation therefrom and except as otherwise permitted in Section
2.1(b)(i)), to the full extent of any such excess.  On each day that any Loans are outstanding,
the Borrowers shall hereby be deemed to represent and warrant to the Agents and
the Lenders that (1) the difference between (x) the total Commitment
and (y) the aggregate amount of all reserves established by the Administrative
Agent prior to such day in accordance with the definition of the term “Availability”
equals or exceeds the aggregate principal amount of all Loans outstanding on
such day and (2) the aggregate principal amount of all Loans outstanding
on such day does not exceed the maximum aggregate principal amount of Loans
projected to be outstanding during the then current Budget Period as set forth
in the Budget (subject to the Permitted Deviation therefrom and except as
otherwise permitted in Section 2.1(b)(i)).

(e)          Extraordinary Receipts.  No later than the first Business Day
following the date of receipt by Company or any of its Subsidiaries of any
Extraordinary Receipts, the Borrowers shall prepay the Loans in an aggregate
amount equal to such Extraordinary Receipts.

(f)           Monthly Excess Receipts.  With respect to any Budget Period, the
Borrowers shall prepay the Loans in an aggregate amount equal to the positive
amount (if any) for such Budget Period of Monthly Excess Receipts less Monthly
Excess Disbursements, for such Budget Period. 
Any prepayment required by this clause (f) shall be payable on the tenth
day following the end of the applicable Budget Period.

(g)          Prepayment Certificate.  Concurrently with any prepayment of the Loans
pursuant to Sections 2.13(a)-(f), Administrative Borrower shall deliver to
Administrative Agent a certificate of an Authorized Officer demonstrating the
calculation of the amount of the applicable net proceeds, or other applicable
amounts giving rise to the prepayment, as the case may be.  In the event that Administrative Borrower
shall subsequently determine that the actual amount received exceeded the
amount set forth in such certificate, the Borrowers shall promptly make an
additional prepayment of the Loans in an amount equal to such excess, and Administrative
Borrower shall concurrently therewith deliver to Administrative Agent a
certificate of an Authorized Officer demonstrating the derivation of such
excess.

2.14        Application of Prepayments.    Any prepayment of the Loans pursuant to
Section 2.12 or 2.13 shall be applied as follows:

first, to the
payment of all expenses and fees to the full extent thereof;

second, to the
payment of any accrued interest at the Default Rate, if any;

third, to the
payment of any accrued interest (other than Default Rate interest);

fourth, with
respect to payments pursuant to Section 2.12, to prepay the Loans until
repaid in full (but without corresponding reduction of the Commitments); and

 41
 

 

fifth, except
with respect to payments pursuant to Section 2.12, to prepay the outstanding
Loans until repaid in full and to permanently reduce any remaining Commitments
to the full extent thereof; provided, however that mandatory
prepayments arising under clauses (e) and (f) of Section 2.13 shall not result
in the Commitments being permanently reduced below $10 million and provided,
further, that the Administrative Agent, with the consent of the Required
Lenders, may elect to waive any permanent reduction of the Commitments under
this paragraph fifth.

2.15        General Provisions Regarding Payments.

(a)          All payments by the Borrowers of
principal, interest, fees and other Obligations shall be made in Dollars in
same day funds, without, recoupment, setoff, counterclaim or other defense free
of any restriction or condition, and delivered to Administrative Agent not
later than 12:00 p.m. (New York City time) on the date due to Administrative
Agent’s Account for the account of Lenders; funds received by Administrative
Agent after that time on such due date shall be deemed to have been paid by
Borrowers on the next Business Day.

(b)          All payments in respect of the
principal amount of any Loan shall be accompanied by payment of accrued
interest on the principal amount being repaid or prepaid.

(c)          Administrative Agent shall promptly
distribute to each Lender at such address as such Lender shall indicate in
writing, such Lender’s applicable Pro Rata Share of all payments and
prepayments of principal and interest due hereunder, together with all other
amounts due thereto, including all fees payable with respect thereto, to the
extent received by Administrative Agent.

(d)          Subject to the provisos set forth in
the definition of “Interest Period, “ whenever any payment to be made hereunder
shall be stated to be due on a day that is not a Business Day, such payment
shall be made on the next succeeding Business Day and such extension of time
shall be included in the computation of the payment of interest hereunder or of
the commitment fees hereunder.

(e)          Administrative Agent shall deem any
payment by or on behalf of Borrowers hereunder that is not made in same day
funds prior to 12:00 p.m. (New York City time) to be a non-conforming
payment.  Any such payment shall not be
deemed to have been received by Administrative Agent until the later of
(i) the time such funds become available funds, and (ii) the
applicable next Business Day.  Interest
shall continue to accrue on any principal as to which a non-conforming payment
is made until such funds become available funds (but in no event less than the
period from the date of such payment to the next succeeding applicable Business
Day) at the Default Rate determined pursuant to Section 2.9 from the date
such amount was due and payable until the date such amount is paid in full.

(f)           If an Event of Default shall have
occurred and not otherwise been waived, and the maturity of the Obligations
shall have been accelerated pursuant to Section 8.1, all payments or
proceeds received by Agents hereunder in respect of any of the Obligations
shall be applied in accordance with Section 2.14 hereof.

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2.16        Ratable
Sharing.  Lenders hereby agree
among themselves that, except as otherwise provided in the Collateral Documents
with respect to amounts realized from the exercise of rights with respect to
Liens on the Collateral, if any of them shall, whether by voluntary payment
(other than a voluntary prepayment of Loans made and applied in accordance with
the terms hereof), through the exercise of any right of set off or banker’s
lien, by counterclaim or cross action or by the enforcement of any right under
the Credit Documents or otherwise, or as adequate protection of a deposit
treated as cash collateral under the Bankruptcy Code, receive payment or
reduction of a proportion of the aggregate amount of principal, interest, fees
and other amounts then due and owing to such Lender hereunder or under the
other Credit Documents (collectively, the “Aggregate Amounts Due”
to such Lender) which is greater than the proportion received by any other
Lender in respect of the Aggregate Amounts Due to such other Lender, then the
Lender receiving such proportionately greater payment shall (a) notify
Administrative Agent and each other Lender of the receipt of such payment and
(b) apply a portion of such payment to purchase participations (which it
shall be deemed to have purchased from each seller of a participation
simultaneously upon the receipt by such seller of its portion of such payment)
in the Aggregate Amounts Due to the other Lenders so that all such recoveries
of Aggregate Amounts Due shall be shared by all Lenders in proportion to the
Aggregate Amounts Due to them; provided, if all or part of such
proportionately greater payment received by such purchasing Lender is
thereafter recovered from such Lender, those purchases to that extent shall be
rescinded and the purchase prices paid for such participations shall be
returned to such purchasing Lender ratably to the extent of such recovery, but
without interest.  Borrowers expressly
consent to the foregoing arrangement and agree that any holder of a participation
so purchased may exercise any and all rights of banker’s lien, set off or
counterclaim with respect to any and all monies owing by Borrowers to that
holder with respect thereto as fully as if that holder were owed the amount of
the participation held by that holder.

2.17        Making or Maintaining LIBOR Rate Loans.

(a)          Inability to Determine Applicable
Interest Rate.  In the event that
Administrative Agent shall have reasonably determined (which determination
absent manifest error shall be final and conclusive and binding upon all
parties hereto), on any Interest Rate Determination Date with respect to any
LIBOR Rate Loans, that by reason of circumstances affecting the London
interbank market adequate and fair means do not exist for ascertaining the interest
rate applicable to such LIBOR Rate Loans on the basis provided for in the
definition of Adjusted LIBOR Rate, Administrative Agent shall on such date give
notice (by telefacsimile or by telephone confirmed in writing) to
Administrative Borrower and each Lender of such determination, whereupon
(i) no Loans may be made as LIBOR Rate Loans until such time as
Administrative Agent notifies Administrative Borrower and Lenders that the
circumstances giving rise to such notice no longer exist, and (ii) any Funding
Notice or Interest Election Request given by Administrative Borrower with
respect to the Loans in respect of which such determination was made shall be
deemed to be rescinded by the Administrative Borrower.

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(b)          Illegality or Impracticability of
LIBOR Rate Loans.  In the event that
on any date any Lender shall have reasonably determined (which determination
absent manifest error shall be final and conclusive and binding upon all
parties hereto but shall be made only after consultation with Administrative
Borrower and Administrative Agent) that the making, maintaining or continuation
of its LIBOR Rate Loans (i) has become unlawful as a result of compliance
by such Lender in good faith with any law, treaty, governmental rule,
regulation, guideline or order (or would conflict with any such treaty,
governmental rule, regulation, guideline or order not having the force of law
even though the failure to comply therewith would not be unlawful), or
(ii) has become impracticable, as a result of contingencies occurring
after the date hereof which materially and adversely affect the London
interbank market or the position of such Lender in that market, then, and in
any such event, such Lender shall be an “Affected Lender”
and it shall on that day give notice (by telefacsimile or by telephone
confirmed in writing) to Administrative Borrower and Administrative Agent of
such determination (which notice Administrative Agent shall promptly transmit
to each other Lender).  Thereafter
(1) the obligation of the Affected Lender to make Loans as LIBOR Rate
Loans shall be suspended until such notice shall be withdrawn by the Affected
Lender, (2) to the extent such determination by the Affected Lender
relates to a LIBOR Rate Loan then being requested by the Borrowers pursuant to
a Funding Notice or a Interest Election Request, the Affected Lender shall make
or convert such Loan to a Base Rate Loan, (3) the Affected Lender’s
obligation to maintain its outstanding LIBOR Rate Loans (the “Affected Loans”) shall be terminated at the earlier to occur
of the expiration of the Interest Period then in effect with respect to the
Affected Loans or when required by law, and (4) the Affected Loans shall
automatically convert into Base Rate Loans on the date of such termination.  The Borrowers shall pay accrued interest on
the amount so converted and all amounts due under Section 2.17(c) in
accordance with the terms thereof due to such conversion.  Notwithstanding the foregoing, to the extent
a determination by an Affected Lender as described above relates to a LIBOR
Rate Loan then being requested by the Borrowers pursuant to a Funding Notice or
a Interest Election Request, the Administrative Borrower shall have the option,
subject to the provisions of Section 2.17(c), to rescind such Funding Notice
or Interest Election Request as to all Lenders by giving notice (by
telefacsimile or by telephone confirmed in writing) to Administrative Agent of
such rescission on the date on which the Affected Lender gives notice of its
determination as described above (which notice of rescission Administrative
Agent shall promptly transmit to each other Lender).  Except as provided in the immediately
preceding sentence, nothing in this Section 2.17(b) shall affect the obligation
of any Lender other than an Affected Lender to make or maintain Loans as LIBOR
Rate Loans in accordance with the terms hereof.

(c)          Compensation for Breakage or
Non-Commencement of Interest Periods. 
The Borrowers shall compensate each Lender, upon written request by such
Lender (which request shall set forth the basis for requesting such amounts),
for all reasonable losses, expenses and liabilities (including any interest
paid or calculated to be due and payable by such Lender to Lenders of funds
borrowed by it to make or carry its LIBOR Rate Loans and any loss, expense or
liability sustained by such Lender in connection with the liquidation or re
employment of such funds but excluding loss of anticipated profits) which such
Lender actually sustains:  (i) if
for any reason (other than a default by such Lender) a borrowing of any Loan
(or commencement of any Interest Period) does not occur on a date specified

 44
 

 

therefor in a Funding Notice or Interest Election
Request, as the case may be; (ii) if any prepayment or other principal
payment of its LIBOR Rate Loans occurs on any day other than the last day of an
Interest Period applicable to that Loan (whether voluntary, mandatory,
automatic, by reason of acceleration, or otherwise); or (iii) if any
prepayment of any of its LIBOR Rate Loans is not made on any date specified in
a notice of prepayment given by Administrative Borrower.

(d)          Booking of LIBOR Rate Loans.  Any Lender may make, carry or transfer LIBOR
Rate Loans at, to, or for the account of any of its branch offices or the
office of an Affiliate of such Lender.

(e)          Assumptions Concerning Funding of
LIBOR Rate Loans.  Calculation of all
amounts payable to a Lender under this Section 2.17 and under
Section 2.18 shall be made as though such Lender had actually funded each
of its relevant LIBOR Rate Loans through the purchase of a LIBOR deposit
bearing interest at the rate obtained pursuant to clause (i) of the
definition of Adjusted LIBOR Rate in an amount equal to the amount of such
LIBOR Rate Loan and having a maturity comparable to the relevant Interest
Period and through the transfer of such LIBOR deposit from an offshore office
of such Lender to a domestic office of such Lender in the United States of
America; provided, however, each Lender may fund each of its
LIBOR Rate Loans in any manner it sees fit and the foregoing assumptions shall
be utilized only for the purposes of calculating amounts payable under this
Section 2.17 and under Section 2.18.

2.18        Increased Costs; Capital Adequacy; Reserves on LIBOR
Rate Loans.

(a)          Compensation For Increased Costs
and Taxes.  Subject to the provisions
of Section 2.19 (which shall be controlling with respect to the matters
covered thereby), in the event that any Lender shall determine (which
determination shall, absent manifest error, be final and conclusive and binding
upon all parties hereto) that any law, treaty or governmental rule, regulation
or order, or any change therein or in the interpretation, administration or
application thereof (including the introduction of any new law, treaty or
governmental rule, regulation or order), or any determination of a court or
governmental authority, in each case that becomes effective after the date
hereof, or compliance by such Lender with any guideline, request or directive
issued or made after the date hereof by any central bank or other governmental
or quasi governmental authority (whether or not having the force of law):  (i) subjects such Lender (or its
applicable lending office) to any additional Tax (other than any Tax on the
overall net income of such Lender) with respect to this Agreement or any of the
other Credit Documents or any of its obligations hereunder or thereunder or any
payments to such Lender (or its applicable lending office) of principal,
interest, fees or any other amount payable hereunder; (ii) imposes,
modifies or holds applicable any reserve (including any marginal, emergency,
supplemental, special or other reserve), special deposit, compulsory loan, FDIC
insurance or similar requirement against assets held by, or deposits or other liabilities
in or for the account of, or advances or loans by, or other credit extended by,
or any other acquisition of funds by, any office of such Lender (other than any
such reserve or other requirements with respect to LIBOR Rate Loans that are
reflected in the definition of Adjusted LIBOR Rate); or (iii) imposes any
other condition (other than with respect to a Tax

 45
 

 

matter) on or affecting such Lender (or its applicable
lending office) or its obligations hereunder or the London interbank market;
and the result of any of the foregoing is to increase the cost to such Lender
of agreeing to make, making or maintaining Loans hereunder or to reduce any
amount received or receivable by such Lender (or its applicable lending office)
with respect thereto; then, in any such case, Borrowers shall promptly pay to
such Lender, upon receipt of the statement referred to in the next sentence,
such additional amount or amounts (in the form of an increased rate of, or a
different method of calculating, interest or otherwise as such Lender in its
sole discretion shall determine) as may be necessary to compensate such Lender
for any such increased cost or reduction in amounts received or receivable
hereunder.  Such Lender shall deliver to
Administrative Borrower (with a copy to Administrative Agent) a written
statement, setting forth in reasonable detail the basis for calculating the
additional amounts owed to such Lender under this Section 2.18(a), which
statement shall be conclusive and binding upon all parties hereto absent manifest
error.

(b)          Capital Adequacy Adjustment.  In the event that any Lender shall have
reasonably determined that the adoption, effectiveness, phase in or
applicability after the Closing Date of any law, rule or regulation (or any
provision thereof) regarding capital adequacy, or any change therein or in the
interpretation or administration thereof by any Governmental Authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any Lender (or its applicable lending office) with
any guideline, request or directive regarding capital adequacy (whether or not
having the force of law) of any such Governmental Authority, central bank or
comparable agency, has or would have the effect of reducing the rate of return
on the capital of such Lender or any corporation controlling such Lender as a
consequence of, or with reference to, such Lender’s Loans, or participations
therein or other obligations hereunder with respect to the Loans to a level
below that which such Lender or such controlling corporation could have
achieved but for such adoption, effectiveness, phase in, applicability, change
or compliance (taking into consideration the policies of such Lender or such
controlling corporation with regard to capital adequacy), then from time to
time, within five Business Days after receipt by Administrative Borrower from
such Lender of the statement referred to in the next sentence, Borrowers shall
pay to such Lender such additional amount or amounts as will compensate such
Lender or such controlling corporation on an after tax basis for such
reduction.  Such Lender shall deliver to
Administrative Borrower (with a copy to Administrative Agent) a written
statement, setting forth in reasonable detail the basis for calculating the
additional amounts owed to Lender under this Section 2.18(b), which
statement shall be conclusive and binding upon all parties hereto absent
manifest error.

2.19        Taxes; Withholding, etc.

(a)          Payments to Be Free and Clear.  All sums payable by any Credit Party
hereunder and under the other Credit Documents shall (except to the extent
required by law) be paid free and clear of, and without any deduction or
withholding on account of, any Tax (other than an Excluded Tax) imposed,
levied, collected, withheld or assessed by or within the United States of
America or any political subdivision in or of the United States of America or
any other jurisdiction from or to which a payment is made by or on behalf of
any Credit Party or by any federation or organization of which the United
States of America or any such jurisdiction is a member at the time of payment.

 46
 

 

(b)          Withholding of Taxes.  If any Credit Party or any other Person is
required by law to make any deduction or withholding on account of any Tax (other
than an Excluded Tax) from any sum paid or payable under any of the Credit
Documents:  (i) Administrative
Borrower shall notify Administrative Agent of any such requirement or any
change in any such requirement as soon as any Borrower become aware of it;
(ii) Borrowers shall pay any such Tax before the date on which penalties
attach thereto, such payment to be made (if the liability to pay is imposed on
any Credit Party) for its own account or (if that liability is imposed on
Administrative Agent or such Lender, as the case may be) on behalf of and in
the name of Administrative Agent or such Lender; (iii) the sum payable by
such Credit Party in respect of which the relevant deduction, withholding or
payment, is required shall be increased to the extent necessary to ensure that,
after the making of that deduction, withholding or payment of all Taxes,
Administrative Agent or such Lender, as the case may be, and each of their Tax
Related Persons receives on the due date and retains a net sum equal to what it
would have received and retained had no such deduction, withholding or payment
been required or made; and (iv) within thirty (30) days after making
any such deduction or withholding, and within thirty (30) days after the
due date of payment of any Tax which it is required by clause (ii) above
to pay, Administrative Borrower shall deliver to Administrative Agent evidence
satisfactory to the other affected parties of such deduction, withholding and
payment and of the remittance thereof to the relevant taxing or other
authority; provided, no such additional amount shall be required to be
paid to any Lender under clause (iii) above except to the extent that any
change in law, treaty or governmental rule, regulation or order after the date
hereof (in the case of each Lender listed on the signature pages hereof on the
Closing Date) or after the effective date of the Assignment Agreement pursuant
to which such Lender became a Lender (in the case of each other Lender) shall
result in an increase in the rate of such deduction, withholding or payment
from that in effect at the date hereof or at the date of such Assignment
Agreement in respect of payments to such Lender.

(c)          Other Taxes.  In addition, the Credit Parties shall pay all
Other Taxes to the relevant Governmental Authorities in accordance with
applicable law.  The Credit Parties shall
deliver to Administrative Agent official receipts or other evidence of such
payment reasonably satisfactory to Administrative Agent in respect of any Taxes
or Other Taxes payable hereunder promptly after payment of such Taxes or Other
Taxes.

(d)          Indemnification.  The Credit Parties shall indemnify each Agent
and each Lender, within ten (10) days after written demand therefor, for
the full amount of any Taxes (other than Excluded Taxes) paid or incurred by
such Agent or such Lender or their respective Tax Related Persons, as the case
may be, relating to, arising out of, or in connection with any Credit Document
or any payment or transaction contemplated hereby or thereby, whether or not
such Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority; provided, however, that the Credit
Parties shall not be required to indemnify the Agents, Lenders and Participants
for any Taxes that would be excluded from a gross-up under Section 2.19(b)
or to the extent such Taxes are covered by Sections 2.19(b) or (c).  Such indemnification shall be made on an
after-Tax basis, such that after all required

 47
 

 

deductions and payments of all Taxes (other than
Excluded Taxes) (including income Taxes and deductions applicable to amounts
payable under this Section 2.19(d)) and payment of all reasonable
expenses, the Agents, the Lenders and each of their respective Tax Related
Persons receives and retains an amount equal to the sum it would have received
and retained had it not paid or incurred or been subject to such Taxes.  A certificate from the relevant Lender or
Agent, setting forth in reasonable detail the basis and calculation of such
Taxes shall be conclusive, absent manifest error.

(e)          Evidence of Exemption From U.S.
Withholding Tax.  Each Lender that is
not a United States Person (as such term is defined in Section 7701(a)(30)
of the Internal Revenue Code) for U.S. federal income tax purposes (a “Non-U.S. Lender”)
shall deliver to the Administrative Borrower with a copy to the Administrative
Agent, on or prior to the Closing Date (in the case of each Lender listed on
the signature pages hereof on the Closing Date) or on or prior to the date of
the Assignment Agreement pursuant to which it becomes a Lender (in the case of
each other Lender), and at such other times as may be necessary in the
determination of Administrative Borrower or Administrative Agent (each in the
reasonable exercise of its discretion), (i) two original copies of
Internal Revenue Service Form W-8BEN, W-8IMY or W-8ECI (or any successor
forms), properly completed and duly executed by such Lender, and such other
documentation required under the Internal Revenue Code and reasonably requested
by Administrative Borrower to establish that such Lender is not subject to
deduction or withholding of United States federal income tax with respect to
any payments to such Lender of principal, interest, fees or other amounts
payable under any of the Credit Documents or is subject to deduction or
withholding at a reduced rate, or (ii) if such Lender is not a “bank” or
other Person described in Section 881(c)(3) of the Internal Revenue Code
and cannot deliver Internal Revenue Service Form W 8ECI pursuant to
clause (i) above, a Certificate Regarding Non Bank Status together with
two original copies of Internal Revenue Service Form W-8BEN (or any
successor form), properly completed and duly executed by such Lender, and such
other documentation required under the Internal Revenue Code and reasonably
requested by Administrative Borrower to establish that such Lender is not
subject to deduction or withholding of United States federal income tax with
respect to any payments to such Lender of interest payable under any of the
Credit Documents.  Each Lender required
to deliver any forms, certificates or other evidence with respect to United
States federal income tax withholding matters pursuant to this
Section 2.19(e) hereby agrees, from time to time after the initial
delivery by such Lender of such forms, certificates or other evidence, whenever
a lapse in time or change in circumstances renders such forms, certificates or
other evidence obsolete or inaccurate in any material respect, that such Lender
shall promptly deliver to Administrative Agent for transmission to
Administrative Borrower two new original copies of Internal Revenue Service
Form W-8BEN, W-8IMY or W-8ECI, or a Certificate Regarding Non Bank Status
and two original copies of Internal Revenue Service Form W-8BEN (or any successor
form), as the case may be, properly completed and duly executed by such Lender,
and such other documentation required under the Internal Revenue Code and
reasonably requested by Administrative Borrower to confirm or establish that
such Lender is not subject to deduction or withholding of United States federal
income tax with respect to payments to such Lender under the Credit Documents
or is subject to deduction or withholding at a reduced rate, or notify
Administrative Agent and Administrative Borrower of its inability to deliver
any such forms, certificates or other evidence. 
Borrowers shall not be

 48
 

 

required to pay any additional amount to any Non-U.S.
Lender under Section 2.19(b)(iii) if such Lender shall have failed to
deliver the forms, certificates or other evidence referred to in this
Section 2.19(e) that it is legally entitled to deliver; provided,
if such Lender shall have satisfied the requirements of the first sentence of
this Section 2.19(e) on the Closing Date or on the date of the Assignment
Agreement pursuant to which it became a Lender, as applicable, nothing in this
last sentence of Section 2.19(e) shall relieve Borrowers of their
obligation to pay any additional amounts pursuant this Section 2.19 in the
event that, as a result of any change in any applicable law, treaty or
governmental rule, regulation or order, or any change in the interpretation,
administration or application thereof, such Lender is no longer properly
entitled to deliver forms, certificates or other evidence at a subsequent date
establishing the fact that such Lender is not subject to withholding as
described herein.  Nothing in this
Section 2.19 shall be construed to require a Lender, Agent or Participant
to provide any forms or documentation that it is not legally entitled to
provide.

2.20        Obligation to
Mitigate.  Each Lender agrees
that, as promptly as practicable after the officer of such Lender responsible
for administering its Loans becomes aware of the occurrence of an event or the
existence of a condition that would cause such Lender to become an Affected
Lender or that would entitle such Lender to receive payments under
Section 2.17, 2.18 or 2.19, it will, to the extent not inconsistent with
the internal policies of such Lender and any applicable legal or regulatory
restrictions, use reasonable efforts to (a) make, issue, fund or maintain
its Loan Extensions, including any Affected Loans, through another office of
such Lender, or (b) take such other measures as such Lender may deem
reasonable, if as a result thereof the circumstances which would cause such
Lender to be an Affected Lender would cease to exist or the additional amounts
which would otherwise be required to be paid to such Lender pursuant to
Section 2.17, 2.18 or 2.19 would be materially reduced and if, as
determined by such Lender in its sole discretion, the making, issuing, funding
or maintaining of such Loans through such other office or in accordance with
such other measures, as the case may be, would not otherwise adversely affect
such Loans or the interests of such Lender; provided, such Lender will
not be obligated to utilize such other office pursuant to this
Section 2.20 unless Borrowers agree to pay all costs and expenses incurred
by such Lender as a result of utilizing such other office as described
above.  A certificate as to the amount of
any such expenses payable by Borrowers pursuant to this Section 2.20
(setting forth in reasonable detail the basis for requesting such amount)
submitted by such Lender to Administrative Borrower (with a copy to
Administrative Agent) shall be conclusive absent manifest error.

2.21        Defaulting
Lenders.  Anything contained
herein to the contrary notwithstanding, in the event that any Lender, other
than at the direction or request of any regulatory agency or authority,
defaults (a “Defaulting Lender”) in its
obligation to fund (a “Funding Default”)
any Loan or its portion of any unreimbursed payment under Section 2.3(e)
(in each case, a “Defaulted Loan”),
then (a) during any Default Period with respect to such Defaulting Lender,
such Defaulting Lender shall be deemed not to be a “Lender” for purposes of
voting on any matters (including the granting of any consents or waivers) with
respect to any of the Credit Documents; and (b) to the extent permitted by
applicable law, until such time as the Default Excess with respect to such
Defaulting Lender shall have been reduced to zero, (i) any voluntary
prepayment of Loans shall, if Administrative Agent so directs at the time of
making such voluntary prepayment, be applied to Loans of other Lenders as if
such Defaulting Lender had no

 49
 

 

Loans outstanding and the
outstanding Loans of such Defaulting Lender were zero, and (ii) any
mandatory prepayment of the Loans shall, if Administrative Agent so directs at
the time of making such mandatory prepayment, be applied to the Loans of other
Lenders (but not to the Loans of such Defaulting Lender) as if such Defaulting
Lender had funded all Defaulted Loans of such Defaulting Lender.  No Commitment of any Lender shall be
increased or otherwise affected, and, except as otherwise expressly provided in
this Section 2.21, performance by Borrowers of their obligations hereunder
and the other Credit Documents shall not be excused or otherwise modified as a
result of any Funding Default or the operation of this Section 2.21.  The rights and remedies against a Defaulting
Lender under this Section 2.21 are in addition to other rights and
remedies which the Borrowers may have against such Defaulting Lender with
respect to any Funding Default and which Administrative Agent or any Lender may
have against such Defaulting Lender with respect to any Funding Default.

2.22        Removal or
Replacement of a Lender.  Anything
contained herein to the contrary notwithstanding, in the event that:  (a) (i) any Lender (an “Increased Cost Lender”) shall give notice to Administrative
Borrower that such Lender is an Affected Lender or that such Lender is entitled
to receive payments under Section 2.18, 2.19 or 2.20, (ii) the
circumstances which have caused such Lender to be an Affected Lender or which
entitle such Lender to receive such payments shall remain in effect, and
(iii) such Lender shall fail to withdraw such notice within five Business
Days after Administrative Borrower’s request for such withdrawal; or (b) (i) any
Lender shall become a Defaulting Lender, (ii) the Default Period for such
Defaulting Lender shall remain in effect, and (iii) such Defaulting Lender
shall fail to cure the default as a result of which it has become a Defaulting
Lender within five Business Days after Administrative Borrower’s request that
it cure such default; or (c) in connection with any proposed amendment,
modification, termination, waiver or consent with respect to any of the
provisions hereof as contemplated by Section 12.5(b), the consent of
Administrative Agent and Requisite Lenders shall have been obtained but the
consent of one or more of such other Lenders (each, a “Non-Consenting Lender”) whose consent is required shall not have
been obtained; then, with respect to each such Increased Cost Lender,
Defaulting Lender or Non-Consenting Lender (the “Terminated
Lender”), Administrative Agent may (which, in the case of an
Increased-Cost Lender, only after receiving written request from Administrative
Borrower to remove such Increased-Cost Lender), by giving written notice to
Administrative Borrower and any Terminated Lender of its election to do so,
elect to cause such Terminated Lender (and such Terminated Lender hereby
irrevocably agrees) to assign its outstanding Loans, in full to one or more
Eligible Assignees (each, a “Replacement Lender”)
in accordance with the provisions of Section 12.6 and Terminated Lender
shall pay any fees payable thereunder in connection with such assignment; provided,
(1) on the date of such assignment, the Replacement Lender shall pay to
Terminated Lender an amount equal to the sum of (A) an amount equal to the
principal of, and all accrued interest on, all outstanding Loans of the
Terminated Lender, (B) an amount equal to all unreimbursed drawings that
have been funded by such Terminated Lender, together with all then unpaid
interest with respect thereto at such time and (C) an amount equal to all
accrued, but theretofore unpaid fees owing to such Terminated Lender pursuant
to Section 2.10; (2) on the date of such assignment, Borrowers shall
pay any amounts payable to such Terminated Lender pursuant to Section 2.18
or 2.19; and (3) in the event such Terminated Lender is a Non-Consenting
Lender, each Replacement Lender shall consent, at the time of such assignment,
to each matter in respect of which such Terminated Lender was a Non Consenting
Lender.  Upon

 50

 

the prepayment of all
amounts owing to any Terminated Lender, such Terminated Lender shall no longer
constitute a “Lender” for purposes hereof; provided, any rights of such
Terminated Lender to indemnification hereunder shall survive as to such
Terminated Lender.

2.23        Notices.  Any Notice shall be executed by an Authorized
Officer in a writing delivered to Administrative Agent.  In lieu of delivering a Notice,
Administrative Borrower may give Administrative Agent telephonic notice by the
required time of any proposed borrowing or Interest Election Request as the
case may be; provided each such notice shall be promptly confirmed in
writing by delivery of the applicable Notice to Administrative Agent on or
before the applicable date of borrowing, continuation/conversion or
issuance.  Neither Administrative Agent
nor any Lender shall incur any liability to the Company or any of its
Subsidiaries in acting upon any telephonic notice referred to above that
Administrative Agent believes in good faith to have been given by a duly
authorized officer or other person authorized on behalf of Borrowers or for
otherwise acting in good faith.

2.24        Joint and
Several Liability
of the Borrowers

(a)  Notwithstanding anything in this Agreement or
any other Credit Document to the contrary, each of the Borrowers hereby accepts
joint and several liability hereunder and under the other Credit Documents in
consideration of the financial accommodations to be provided by the Agents and
the Lenders under this Agreement and the other Credit Documents, for the mutual
benefit, directly and indirectly, of each of the Borrowers and in consideration
of the undertakings of the other Borrowers to accept joint and several
liability for the Obligations.  Each of
the Borrowers, jointly and severally, hereby irrevocably and unconditionally
accepts, not merely as a surety but also as a co-debtor, joint and several
liability with the other Borrowers, with respect to the payment and performance
of all of the Obligations (including, without limitation, any Obligations
arising under this Section 2.24), it being the intention of the parties hereto
that all of the Obligations shall be the joint and several obligations of each
of the Borrowers without preferences or distinction among them.  If and to the extent that any of the
Borrowers shall fail to make any payment with respect to any of the Obligations
as and when due or to perform any of the Obligations in accordance with the
terms thereof, then in each such event, the other Borrowers will make such
payment with respect to, or perform, such Obligation.  Subject to the terms and conditions hereof,
the Obligations of each of the Borrowers under the provisions of this Section
2.24 constitute the absolute and unconditional, full recourse Obligations of
each of the Borrowers, enforceable against each such Person to the full extent
of its properties and assets, irrespective of the validity, binding effect or
enforceability of this Agreement, the other Credit Documents or any other
circumstances whatsoever.

(b)  The provisions of this Section 2.24 are made
for the benefit of the Agents, the Lenders and their successors and assigns,
and may be enforced by them from time to time against any or all of the
Borrowers as often as occasion therefor may arise and without requirement on
the part of the Agents, the Lenders or such successors or assigns first to
marshal any of its or their claims or to exercise any of its or their rights
against any of the other Borrowers or to exhaust any remedies available to it
or them against any of the other Borrowers or to resort to any other source or
means of obtaining payment of any of the Obligations hereunder or to elect any
other remedy.  The provisions of this
Section 2.24 shall be in effect until all of the Obligations shall have been
paid in full or otherwise fully satisfied.

 51
 

 

(c)  Each of the Borrowers hereby agrees that it
will not enforce any of its rights of contribution or subrogation against the
other Borrowers with respect to any liability incurred by it hereunder or under
any of the other Credit Documents, or any payments made by it to the Agents or
the Lenders with respect to any of the Obligations or any Collateral, until
such time as all of the Obligations have been paid in full in cash.  Any claim which any Borrower may have against
any other Borrower with respect to any payments to the Agents or the Lenders
hereunder or under any other Credit Documents are hereby expressly made
subordinate and junior in right of payment, without limitation as to any
increases in the Obligations arising hereunder or thereunder, to the prior
payment in full in cash of the Obligations.

2.25        Agent Right to
Charge Loan Account.  The
Lenders and the Borrowers hereby authorize the Administrative Agent to, and the
Administrative Agent shall, at its option, from time to time, charge the Loan
Account of the Borrowers with any amount due and payable by the Credit Parties
under any Credit Document.  Each of the
Lenders and the Borrowers agrees that the Administrative
Agent shall have the right to make such charges whether or not any Default or
Event of Default shall have occurred and be continuing or whether any of the
conditions precedent in Section 3 have been satisfied.  Any amount charged to the Loan Account of the
Borrowers shall be deemed a Loan hereunder made by the Lenders to the
Borrowers.  The Lenders and the Borrowers
confirm that any charges which the Administrative Agent may so make to the Loan
Account of the Borrowers as herein provided will be made as an accommodation to
the Borrowers and solely at the
Administrative Agent’s discretion.

2.26        No Discharge; Survival
of Claims.  Until the
Obligations are indefeasibly satisfied in cash and in full, and all the
Commitments have been terminated, each of the Borrowers agree that (i) its
obligations hereunder shall not be discharged by the entry of an order
confirming a plan of reorganization (and each of the Borrowers, pursuant to
section 1141(d)(4) of the Bankruptcy Code, hereby waives any such discharge)
and (ii) the super-priority claim granted to the Agent and the Lenders pursuant
to the Bankruptcy Court Orders and described in Section 10.5 and the Liens
granted to the Agents pursuant to the Bankruptcy Court Orders and described in
Section 10.4 shall not be affected in any manner by the entry of an order
confirming any plan of reorganization.

SECTION 3.                                                         CONDITIONS PRECEDENT

3.1          Conditions to
Interim Facility.  This
Agreement shall become effective as of the Business Day (the “Interim Facility Effective Date”) of, and subject to, the
satisfaction, or waiver in accordance with Section 12.5, of the following
conditions:

(a)           Credit Documents.  Administrative Agent shall have received
sufficient copies of each Credit Document (other than the Final Bankruptcy
Court Order) executed and delivered by each applicable Credit Party for each
Lender.

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(b)           Cash Management.  The Agents shall be satisfied with the cash
management system of the Company and each of its Subsidiaries.

(c)           Organizational Documents;
Incumbency; Acknowledgments. 
Administrative Agent shall have received (i) sufficient copies of
each Organizational Document of the Company and each of its Subsidiaries, as
applicable, and, to the extent applicable, certified as of a recent date by the
appropriate governmental official, for each Lender, each dated the Closing Date
or a recent date prior thereto; (ii) signature and incumbency certificates
of the officers of such Person executing the Credit Documents to which it is a
party; (iii) resolutions of the board of directors or similar governing
body of each Credit Party approving and authorizing the execution, delivery and
performance of this Agreement and the other Credit Documents to which it is a
party or by which it or its assets may be bound as of the Closing Date,
certified as of the Closing Date by its secretary or an assistant secretary as
being in full force and effect without modification or amendment; (iv) a
good standing certificate from the applicable Governmental Authority of each
Credit Party’s jurisdiction of incorporation, organization or formation and in
each jurisdiction in which it is qualified as a foreign corporation or other
entity to do business (except in jurisdictions where the failure to be so
qualified or in good standing has not had, and could not be reasonably expected
to have, a Material Adverse Effect), each dated a recent date prior to the
Closing Date; (v) a written acknowledgement, in form and substance satisfactory
to the Administrative Agent, from each Non-Debtor Subsidiary confirming that
such Subsidiary has received a copy of this Agreement and the other Credit
Documents and is aware of the representations, warranties, covenants and other
agreements contained herein with respect to the Company and its Subsidiaries
and agrees to comply with the terms hereof applicable to it and (vi) such
other documents as Administrative Agent may reasonably request.

(d)           Organizational and Capital
Structure.  The organizational
structure and capital structure of Company and its Subsidiaries shall be as set
forth on Schedule 4.1.

(e)           Existing Indebtedness.  Administrative Borrower shall have delivered
to Administrative Agent and Lenders copies of all material documents related to
all Prepetition Obligations.

(f)            Governmental Authorizations and
Consents.  Subject to entry of the
Interim Bankruptcy Court Order, each Credit Party shall have obtained all
Governmental Authorizations (including from the FCC) and all consents of other
Persons, in each case that are necessary or advisable in connection with the
transactions contemplated by the Credit Documents and each of the foregoing
shall be in full force and effect and in form and substance reasonably
satisfactory to Administrative Agent. 
All applicable waiting periods shall have expired without any action being
taken or threatened by any competent authority which would restrain, prevent or
otherwise impose adverse conditions on the transactions contemplated by the
Credit Documents and no action, request for stay, petition for review or
rehearing, reconsideration, or appeal with respect to any of the foregoing
shall be pending, and the time for any applicable agency to take action to set
aside its consent on its own motion shall have expired without the imposition
of conditions not acceptable to the Administrative Agent.

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(g)           [Reserved].

(h)           Interim Bankruptcy Court Order.  The Interim Bankruptcy Court Order shall have
been entered by the Bankruptcy Court and the Agents shall have received a true
and complete copy of such order, and such order shall be in full force and
effect and shall not have been reversed, modified, amended, stayed or vacated
absent prior written consent of the Agents and the Requisite Lenders.

(i)            Financial Statements.  Lenders shall have received from Borrowers
(i) the Historical Financial Statements and (ii) pro forma consolidated
balance sheet of Company and its Subsidiaries as of December 31, 2006, which
financial statements shall be in form and substance satisfactory to
Administrative Agent.

(j)            Evidence of Insurance.  Administrative Agent shall have received a
certificate from the insurance broker evidencing for the Company and its
Subsidiaries that all insurance required to be maintained pursuant to
Section 5.5 is in full force and effect, together with endorsements naming
the Collateral Agent, for the benefit of Secured Parties, as additional insured
and loss payee thereunder to the extent required under Section 5.5.

(k)           [Reserved].

(l)            Fees and Expenses.  Borrowers shall have paid to the
Administrative Agent and Lenders, the fees and expenses payable on the Closing
Date referred to in the Fee Letter and herein and all fees and expenses payable
to the Prepetition Agents and Prepetition Indebtedness Holders on the Closing
Date in accordance with the Bankruptcy Court Orders.

(m)          Budget.  The Agents shall have received and be satisfied
with (A) the Budget, (B) the Historical Financial Statements and
(C) the Financial Plan, certified as of the Interim Facility Effective
Date by an Authorized Officer of the Borrowers as complying with the
representations and warranties set forth in Section 4.

(n)           Representations and Warranties.  As of such Credit Date, the representations
and warranties contained herein and in the other Credit Documents shall be true
and correct in all material respects on and as of that Credit Date to the same
extent as though made on and as of that date, except to the extent such
representations and warranties specifically relate to an earlier date, in which
case such representations and warranties shall have been true and correct in
all material respects on and as of such earlier date.

(o)           No Default.  As of such Credit Date, no event shall have
occurred and be continuing or would result from the consummation of the
applicable Loan Extension that would constitute an Event of Default or a
Default.

(p)           No Litigation.  Except for claims, actions, suits,
investigations, litigation or proceedings stayed by 11 U.S.C. § 362 and set
forth on Schedule 3.1(p), there shall not exist any action, suit,
investigation, litigation or proceeding or other legal or regulatory developments,
pending in any court or before any arbitrator or Governmental Authority that,
in the reasonable opinion of Administrative Agent, singly or in the aggregate,
could have a

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Material Adverse Effect and there shall not exist any
action, suit, investigation, litigation or proceeding or other legal or
regulatory developments, pending or threatened in any court or before any
arbitrator or Governmental Authority that, in the reasonable opinion of
Administrative Agent, singly or in the aggregate, which relates to the
transactions contemplated by the Credit Documents.

(q)           Due Diligence.  Other than changes occurring in the ordinary
course of business, no information or materials are or should have been
available to Company and its Subsidiaries as of the Closing Date that are
materially inconsistent with the material previously provided to Administrative
Agent for its due diligence review of Company and its Subsidiaries.

(r)            No Material Adverse Change.  Since December 31, 2005, and other than
the filing of the Chapter 11 Cases, no event, circumstance or change shall have
occurred that has caused or evidences, either in any case or in the aggregate,
a Material Adverse Effect.

(s)           Prepetition Obligations.  The Prepetition Indebtedness Holders shall
have received adequate protection in respect of the Liens securing the
Prepetition Obligations in the form set forth in the Interim Bankruptcy Court
Order.

(t)            First Day Filings.  The Agents shall have received and be
satisfied with the motions, Reorganization Plan and disclosure statement with
respect to the Reorganization Plan which shall all be filed by the Borrowers
with the Bankruptcy Court in the Chapter 11 Cases on the first day of such
Chapter 11 Cases.

(u)           Commencement of Chapter 11
Cases.  The Borrowers shall have
commenced the Chapter 11 Cases and (i) no trustee, examiner or receiver
shall have been appointed or designated with respect to the Borrowers or their
business, properties or assets and no motion shall be pending seeking any such
relief, and (ii) no motion shall be pending seeking any other relief in the
Bankruptcy Court to exercise control over Collateral with an aggregate fair
market value in excess of $1,500,000 with respect to all such motions; provided
that this clause (ii) shall not apply to any motion that is being
contested in good faith by the Borrowers and which contest the Borrowers
reasonably believe will be successful.

(v)           Officer’s Certificate.  The Administrative Agent shall have received
a certificate signed by the President, a Vice President or a Financial Officer
of Company, dated such Credit Date, confirming compliance with the conditions
set forth in clauses (n), (o), (p), (q) and (r) above.

Any Agent or Requisite Lenders shall be entitled, but
not obligated to, request and receive, prior to the making of any Loan
Extension, additional information reasonably satisfactory to the requesting
party confirming the satisfaction of any of the foregoing if, in the good faith
judgment of such Agent or Requisite Lender such request is warranted under the
circumstances.

Each Lender, by delivering its signature page to this
Agreement and funding a Loan on the Closing Date, shall be deemed to have
acknowledged receipt of, and consented to and approved, each Credit Document
and each other document required to be approved by any Agent, Requisite Lenders
or Lenders, as applicable on the Closing Date.

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3.2          Conditions to
Final Facility Effectiveness. 
The obligation of each Lender to make any Loan Extension during the
Final Period shall commence as of the Business Day (the “Final
Facility Effective Date”) of, and subject to, the satisfaction, or
waiver in accordance with Section 12.5, of the following conditions:

(a)           Final Bankruptcy Court Order, Etc.  The Final Bankruptcy Court Order shall have
been signed and entered by the Bankruptcy Court within a date which is 45 days
following the date of the entry of the Interim Facility Bankruptcy Court Order,
and the Collateral Agent shall have received a true and complete copy of such
order, and such order shall be in full force and effect and shall not have been
reversed, modified, amended, stayed or vacated absent the prior written consent
of the Agents and the Requisite Lenders.

(b)           Payment of Fees, Etc.  The Borrowers shall have paid to the Agents
and Lenders the fees and expenses then due and payable under the Credit
Documents and all fees and expenses then due and payable to the Prepetition
Agents and Prepetition Indebtedness Holders in accordance with the Bankruptcy
Court Orders.

(c)           Legality.  The making of the Loans on the Final Facility
Effective Date shall not contravene any law, rule or regulation applicable to
any Agent or any Lender.

(d)           Material Adverse Effect.  Since December 31, 2005, and other than
the filing of the Chapter 11 Cases, no event, circumstance or change shall have
occurred that has caused or evidences, either in any case or in the aggregate,
a Material Adverse Effect.

3.3          Conditions to
All Loans.  The obligation of
each Lender to make any Loan Extension on any Credit Date, including the Closing
Date, are also subject to the satisfaction, or waiver in accordance with
Section 12.5, of the following further conditions precedent:

(a)           Notice. Administrative Agent
shall have received before that Credit Date, in accordance with the provisions
of Section 2.1(b)(ii), a duly executed Funding Notice in each case signed
by a duly authorized Officer of the applicable Borrower.

(b)           Representations and Warranties; No
Event of Default.  The following
statements shall be true and correct: 
(i) the representations and warranties contained in Section 4 and
in each other Credit Document, certificate or other writing delivered to
the Agents or the Lenders pursuant hereto or thereto on or prior to that Credit
Date are true and correct in all material respects (unless otherwise qualified
by materiality in which case such representations and warranties shall be true
and correct in all respects) on and as of that Credit Date as though made on
and as of such date, except to the extent that any such representation or warranty
expressly relates solely to an earlier date (in which case such representation
or warranty shall be true and correct in all material respects (unless
otherwise qualified by materiality in which case such representations and
warranties shall be true and correct in all respects) on and as of such earlier
date) and (ii) no Default or Event of Default shall have occurred and be
continuing on that Credit Date or would result from the making of such Loan
Extension on such date.

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(c)           No Order or Judgment.  No order, judgment or decree of any
arbitrator or Government Authority shall purport to enjoin or restrain such
Lender from making the Loan Extension to be made by it on that Credit Date.

SECTION 4.                                                         REPRESENTATIONS AND WARRANTIES

In order to induce Lenders to enter into this
Agreement and to make each Loan Extension to be made thereby, each Credit Party
represents and warrants to each Lender, on the Closing Date and on each Credit
Date, that the following statements are true and correct:

4.1          Organization;
Requisite Power and Authority; Qualification. 
Each of Company and its Subsidiaries (a) is duly
organized, validly existing and in good standing under the laws of its
jurisdiction of organization as identified in Schedule 4.1,
(b) subject to the entry and the terms of the Bankruptcy Court Orders in
the case of the Credit Parties, has all requisite power and authority to own
and operate its properties, to carry on its business as now conducted and as
proposed to be conducted, to enter into the Credit Documents to which it is a
party and to carry out the transactions contemplated thereby and, in the case
of the Borrowers, to make the borrowings hereunder, and (c) is qualified
to do business and in good standing in every jurisdiction where its assets are
located and wherever necessary to carry out its business and operations, except
in jurisdictions where the failure to be so qualified or in good standing has
not had, and could not be reasonably expected to have, a Material Adverse
Effect.

4.2          Capital Stock
and Ownership.  The Capital
Stock of each of Company and its Subsidiaries has been duly authorized and
validly issued and is fully paid and non-assessable.  Except as set forth on Schedule 4.2, as
of the date hereof, there is no existing option, warrant, call, right,
commitment or other agreement to which Company or any of its Subsidiaries is a
party requiring, and there is no membership interest or other Capital Stock of
Company or any of its Subsidiaries outstanding which upon conversion or
exchange would require, the issuance by Company or any of its Subsidiaries of
any additional membership interests or other Capital Stock of Company or any of
its Subsidiaries or other Securities convertible into, exchangeable for or
evidencing the right to subscribe for or purchase, a membership interest or
other Capital Stock of Company or any of its Subsidiaries.  Schedule 4.2 sets forth a true, complete
and correct list as of the Closing Date, both before and after giving effect to
the Transactions, of the name of Company and each of its Subsidiaries and
indicates for each such Person its ownership (by holder and percentage
interest) and the type of entity of each of them, and the number and class of
authorized and issued Capital Stock of such Subsidiary.  Schedule 4.2 sets forth a true, complete
and correct list as of the Closing Date, both before and after giving effect to
the Transactions, of the name of Company and each of its Subsidiaries and
indicates for each such Person its ownership (by holder and percentage interest)
and the type of entity of each of them, and the number and class of authorized
and issued Capital Stock of such Subsidiary. 
Except as set forth on Schedule 4.2, as of the Closing Date,
neither Company nor any of its Subsidiaries has any equity investments in any
other corporation or entity.

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4.3          Due
Authorization.  The execution,
delivery and performance of the Credit Documents, subject to the entry and
terms of the Bankruptcy Court Orders, have been duly authorized by all
necessary action on the part of each Credit Party that is a party thereto.

4.4          No Conflict.  Subject to the entry and terms of
the Bankruptcy Court Orders, the execution, delivery and performance by Credit
Parties of the Credit Documents to which they are parties and the consummation
of the transactions contemplated by the Credit Documents do not and will not,
in each case other than conflicts, breaches and defaults the enforcement of
which will be stayed by virtue of the filing of the Chapter 11 Cases,
(a) violate any provision of any law or any governmental rule or
regulation applicable to Company or any of its Subsidiaries, any of the
Organizational Documents of Company or any
of its Subsidiaries, or any order, judgment or decree of any court or other
agency of government binding on Company or any of its Subsidiaries;
(b) except with respect to the Prepetition Obligations and except, as to
Non-Debtor Subsidiaries only, conflicts that would not have a material adverse
effect on such Non-Debtor Subsidiary, conflict with, result in a breach of or
constitute (with due notice or lapse of time or both) a default under any
Contractual Obligation of Company or any of its Subsidiaries; (c) result
in or require the creation or imposition of any Lien upon any of the properties
or assets of Company or any of its Subsidiaries (other than any Liens created
under any of the Credit Documents in favor of Collateral Agent, on behalf of
Secured Parties); (d) result in any default, noncompliance, suspension,
revocation, impairment, forfeiture or nonrenewal of any permit, license,
authorization or approval applicable to the Company’s or its Subsidiaries’
operations or any of their respective properties or (e) require any
approval of stockholders, members or partners or any approval or consent of any
Person under any Contractual Obligation of Company or any of its Subsidiaries,
except for such approvals or consents which will be obtained on or before the
Closing Date and disclosed in writing to Lenders and except for any such
approvals or consents the failure of which to obtain will not have a Material
Adverse Effect.

4.5          Governmental
Consents.  Subject to the
entry and terms of the Bankruptcy Court Orders, the execution, delivery and
performance by Credit Parties of the Credit Documents to which they are parties
and the consummation of the transactions
contemplated by the Credit Documents do not and will not require any
registration with, consent or approval of, or notice to, or other action to,
with or by, any Governmental Authority (including, without limitation, any
order entered in the Chapter 11 Cases) except for (i) filings and
recordings with respect to the Collateral to be made, or otherwise delivered to
Collateral Agent for filing and/or recordation, as of the Closing Date and
(ii) as set forth on Schedule 5.18 hereto.

4.6          Binding
Obligation.  Each Credit
Document has been duly executed and delivered by each Credit Party that is a party thereto, and subject
to the entry of the Bankruptcy Court Orders, and is the legally valid and
binding obligation of such Credit Party, enforceable against such Credit Party
in accordance with its respective terms.

4.7          Historical
Financial Statements.  The
Historical Financial Statements were prepared in conformity with GAAP and
fairly present, in all material respects, the financial

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position, on a
consolidated basis, of the Persons described in such financial statements as at
the respective dates thereof and the results of operations and cash flows, on a
consolidated basis, of the entities described therein for each of the periods
then ended, subject, in the case of any such unaudited financial statements, to
changes resulting from audit and normal year end adjustments.  As of the Closing Date, neither Company nor
any of its Subsidiaries has any contingent liability or liability for taxes,
long term lease or unusual forward or long term commitment that is not
reflected in the Historical Financial Statements or the notes thereto and which
in any such case is material in relation to the business, operations,
properties, assets, condition (financial or otherwise) or prospects of Company
and any of its Subsidiaries taken as a whole. 
Since the date of the audited Historical Financial Statements, no
Internal Control Event has occurred.

4.8          [Reserved].

4.9          No Material
Adverse Change.  Except as
disclosed on Schedule 3.1(t), since December 31, 2005, no event,
circumstance or change has occurred that has caused or evidences, either in any
case or in the aggregate, a Material Adverse Effect.

4.10        No Restricted
Junior Payments.  Since December 31,
2005, neither Company nor any of its Subsidiaries has directly or indirectly
declared, ordered, paid or made, or set apart any sum or property for, any
Restricted Junior Payment or agreed to do so.

4.11        Adverse
Proceedings, etc.  Except for
the pre-petition litigation that is stayed by 11 U.S.C. § 362 and as disclosed
on Schedule 4.11, there are no Adverse Proceedings, individually or in the
aggregate, that (a) relate to any Credit Document or any Related Agreement
or the transactions contemplated hereby or thereby or (b) could reasonably
be expected to have a Material Adverse Effect (other than (1) any action, suit
or proceeding by any Person during the Interim Period objecting to the entry by
the Bankruptcy Court of the Final Bankruptcy Court Order or seeking
modification thereto from the terms contemplated in the Interim Bankruptcy
Court Order and (2) any action, suit or proceeding by any Person objecting to
any waiver or amendment of, or consent to the departure from, the terms of this
Agreement, in each case, to the extent that such action, suit or proceedings
does not result in the reversal, modification, amendment, stay or vacation of
the Bankruptcy Court Orders without the prior written consent of the Agent).  Neither Company nor any of its Subsidiaries
(a) is in violation of any applicable laws (including Environmental Laws)
that, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect, or (b) is subject to or in default with respect
to any final judgments, writs, injunctions, decrees, rules or regulations of
any court or any federal, state, municipal or other governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign,
that, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

4.12        Payment of
Taxes.  Except as otherwise
permitted under Section 5.3, all tax returns and reports of Company and
its Subsidiaries required to be filed by any of them have been timely filed,
and all taxes shown on such tax returns to be due and payable and all
assessments, fees and other governmental charges upon Company and its
Subsidiaries and upon their respective properties, assets, income, businesses
and franchises which are due and payable have been paid when due and
payable.  Borrowers know of no proposed
tax assessment against Company or any of its Subsidiaries which is not being
actively contested by Company or such Subsidiary in good faith and by appropriate
proceedings; provided, such reserves or other appropriate provisions, if
any, as shall be required in conformity with GAAP shall have been made or
provided therefor.

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4.13        Properties.

(a)           Title.  Each of Company and its Subsidiaries has
(i) good, sufficient and legal title to (in the case of fee interests in
real property), (ii) valid leasehold interests in (in the case of
leasehold interests in real or personal property), and (iii) good title to
(in the case of all other personal property), all of their respective properties
and assets reflected in their respective Historical Financial Statements
referred to in Section 4.7 and in the most recent financial statements
delivered pursuant to Section 5.1, in each case except for assets disposed
of since the date of such financial statements in the ordinary course of
business or as otherwise permitted under Section 6.8.  All such properties and assets are in working
order and condition, ordinary wear and tear excepted, and except as permitted
by this Agreement, all such properties and assets are free and clear of Liens
(other than Permitted Liens).

(b)           Real Estate.  As of the Closing Date, Schedule 4.13
contains a true, accurate and complete list of all Real Estate Assets,
including a description of all Leasehold Properties (together with all amendments
of any thereof), regardless of whether the Company or its Subsidiary (as
applicable) is the landlord or tenant (whether directly or as an assignee or
successor in interest) with respect to such Leasehold Property.  Each lease described on Schedule 4.13 is
in full force and effect and no default (except any such default the
enforcement of which is stayed by virtue of the filing of the Chapter 11
Cases) has occurred and is continuing thereunder.  Each such lease constitutes the legally valid
and binding obligation of the Company or its Subsidiary (as applicable),
enforceable against such Person in accordance with its terms, except as
enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws relating to or limiting creditors’ rights generally
or by equitable principles.  To the best
knowledge of each Credit Party, without investigation, no other party to any
such lease is in default of its obligations thereunder, and neither the Company
nor any of its Subsidiaries (or any other party to any such lease) has at any
time delivered or received any notice of default which remains uncured under
any such Lease and, as of the Closing Date, no event has occurred which, with
the giving of notice or the passage of time or both, would constitute a default
under any such lease, except in each case, any such default the enforcement of
which is stayed by virtue of the filing of the Chapter 11 Cases.

4.14        Environmental
Matters.  Neither Company nor
any of its Subsidiaries nor any of their respective Facilities or operations
are subject to any outstanding written order, consent decree or settlement
agreement with any Person relating to any Environmental Law, any Environmental
Claim, or any Hazardous Materials Activity that, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect.  Neither Company nor any of its Subsidiaries
has received any letter or request for information under Section 104 of
the Comprehensive Environmental Response, Compensation, and Liability Act (42
U.S.C. § 9604) or any comparable state law. 
There are and, to each of Company’ and its Subsidiaries’ knowledge, have
been, no conditions, occurrences, or Hazardous Materials Activities which

 60

 

could reasonably be
expected to form the basis of an Environmental Claim against Company or any of
its Subsidiaries that, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect. 
Neither Company nor any of its Subsidiaries nor, to any Credit Party’s
knowledge, any predecessor of Company or any of its Subsidiaries has filed any
notice under any Environmental Law indicating past or present treatment of
Hazardous Materials at any Facility, and none of Company’ or any of its
Subsidiaries’ operations involves the generation, transportation, treatment,
storage or disposal of hazardous waste, as defined under 40 C.F.R.  Parts 260 270 or any state equivalent.  Compliance with all current or reasonably
foreseeable future requirements pursuant to or under Environmental Laws could
not be reasonably expected to have, individually or in the aggregate, a
Material Adverse Effect.  No event or
condition has occurred or is occurring with respect to Company or any of its
Subsidiaries relating to any Environmental Law, any Release of Hazardous
Materials, or any Hazardous Materials Activity which individually or in the
aggregate has had, or could reasonably be expected to have, a Material Adverse
Effect.

4.15        No Defaults.  Other than violations occurring as a result of the filing of the Chapter 11
Cases the enforcement of which are stayed by virtue of the filing of the
Chapter 11 Cases and except under the Prepetition Obligations, neither
Company nor any of its Subsidiaries is in default in the performance,
observance or fulfillment of any of the obligations, covenants or conditions
contained in any of its Contractual Obligations or Related Agreements, and no
condition exists which, with the giving of notice or the lapse of time or both,
could constitute such a default, except where the consequences, direct or
indirect, of such default or defaults, if any, could not reasonably be expected
to have a Material Adverse Effect.  No
Default has occurred and is continuing.

4.16        Material
Contracts.  Schedule 4.16
contains a true, correct and complete list of all the Material Contracts in
effect on the Closing Date.  All such
Material Contracts, together with any updates provided pursuant to
Section 5.1(1), and the Related Agreements are in full force and effect
and no defaults currently exist thereunder (other than defaults occurring as a
result of the filing of the Chapter 11 Cases and other than as described
in Schedule 4.16 or in such updates).

4.17        Governmental
Regulation.  Neither Company
nor any of its Subsidiaries is subject to the Federal Power Act or the
Investment Company Act of 1940 or under any other federal or state statute or
regulation which may limit its ability to incur Indebtedness or which may
otherwise render all or any portion of the Obligations unenforceable.  Neither Company nor any of its Subsidiaries
is a “registered investment company” or a company “controlled” by a “registered
investment company” or a “principal underwriter” of a “registered investment
company” as such terms are defined in the Investment Company Act of 1940.

4.18        Margin Stock.  Neither Company nor any of its
Subsidiaries is engaged in the business of extending credit for the purpose of
purchasing or carrying any Margin Stock. 
No part of the proceeds of the Loan Extensions made to such Credit Party
will be used to purchase or carry any such Margin Stock or to extend credit to
others for the purpose of purchasing or carrying any such Margin Stock or for
any purpose that violates, or is inconsistent with, the provisions of
Regulation T, U or X of the Board of Governors of the Federal Reserve System.

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4.19        Employee
Matters.  Company and each of
its Subsidiaries have good labor relations. 
Company, its Subsidiaries, and their respective employees, agents and
representatives have not committed any material unfair labor practice as
defined in the National Labor Relations Act. 
Neither Company nor any of its Subsidiaries has been or is engaged in
any unfair labor practice that could reasonably be expected to have a Material
Adverse Effect.  There has been and is
(a) no unfair labor practice charge or complaint pending against Company
or any of its Subsidiaries, or to the best knowledge of Borrowers, threatened
against any of them before the National Labor Relations Board or any other
Governmental Authority and no grievance or arbitration proceeding arising out
of or under any collective bargaining agreement or similar agreement that is so
pending against Company or any of its Subsidiaries or to the best knowledge of
Borrowers, threatened against any of them, (b) no labor dispute, strike,
lockout, slowdown or work stoppage in existence or threatened against,
involving or affecting Company or any of its Subsidiaries that could reasonably
be expected to have a Material Adverse Effect, (c) no labor union, labor
organization, trade union, works council, or group of employees of Company or
any of its Subsidiaries has made a pending demand for recognition or
certification, and there are no representation or certification proceedings or
petitions seeking a representation proceeding presently pending or threatened
to be brought or filed with the National Labor Relations Board or any other
Governmental Authority, and (d) to the best knowledge of Borrowers, no
union representation question existing with respect to any of the employees of
Company or any of its Subsidiaries and, to the best knowledge of Borrowers, no
labor union organizing activity with respect to any employees of Company or any
of its Subsidiaries that is taking place, except (with respect to any matter
specified in clause (a), (b), (c), or (d) above, either individually
or in the aggregate) such as is not reasonably likely to have a Material
Adverse Effect.

4.20        Employee
Benefit Plans.  Company, each
of its Subsidiaries and each of their respective ERISA Affiliates are in
compliance with all applicable provisions and requirements of ERISA and the
Internal Revenue Code and the regulations and published interpretations
thereunder with respect to each Employee Benefit Plan, and have performed all
their obligations under each Employee Benefit Plan except for instances of
non-compliance that could reasonably be expected to have a Material Adverse
Effect.  No ERISA Event has occurred or
is reasonably expected to occur that could reasonably be expected to have a
Material Adverse Effect.  Neither the
Company nor any ERISA Affiliate maintains, sponsors or has any actual or
contingent liability with respect to any Pension Plan or has any obligation to
contribute to a Multiemployer Plan.

4.21        Certain Fees.  No broker’s or finder’s fee or
commission will be payable with respect hereto or any of the transactions
contemplated hereby.

4.22        Administrative Priority; Lien Priority.

(a)          After the Interim Bankruptcy Court
Order Entry Date or the Final Bankruptcy Court Order Entry Date, as the case
may be, the Obligations of the Borrowers will constitute allowed administrative
expenses in the Chapter 11 Cases, having priority in payment over all
other administrative expenses and unsecured claims against the Borrowers now
existing or hereafter arising, of any kind or nature whatsoever, including,
without limitation, all administrative expenses of the kind specified in, or
arising or ordered under, Sections 105, 326, 328, 330, 331, 503(b), 506(c),
507(a), 507(b), 546(c), 726 and 1114 of the Bankruptcy Code, subject only to
the prior payment of Carve-Out Expenses to the extent set forth in clause ”first”
of the definition of the term “Agreed Administrative Expense Priorities”.

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(b)          Upon entry of the Interim Bankruptcy
Court Order or the Final Bankruptcy Court Order, as the case may be, the Liens
and security interests of the Collateral Agent on the Collateral shall be valid
and perfected first priority Liens (subject to Permitted Priority Liens and any
action required under foreign law with respect to the Capital Stock of Foreign
Subsidiaries solely to the extent that such foreign law is applicable).

(c)          On or after the Interim Bankruptcy
Court Order Entry Date and prior to the Final Bankruptcy Court Order Entry
Date, the Interim Bankruptcy Court Order is in full force and effect, and has
not been reversed, modified, amended, stayed or vacated absent the written
consent of the Agents and the Requisite Lenders, and after the Final Bankruptcy
Court Order Entry Date, the Final Bankruptcy Court Order is in full force and
effect, and has not been reversed, modified, amended, stayed or vacated absent
the written consent of the Agents and the Requisite Lenders.

4.23        Appointment of
Trustee or Examiner; Liquidation.  No
order has been entered in any Chapter 11 Case (i) for the appointment
of a Chapter 11 trustee, (ii) for the appointment of an examiner with
enlarged powers (beyond those set forth in Sections 1106(a)(3) and
(4) of the Bankruptcy Code) under Section 1106(b) of the Bankruptcy
Code or (iii) to convert any Chapter 11 Case to a Chapter 7 case
or to dismiss any Chapter 11 Case.

4.24        Compliance with
Statutes, etc.  Each of
Company and its Subsidiaries is in compliance with its organizational documents
and all applicable statutes, regulations and orders of, and all applicable
restrictions imposed by, all Governmental Authorities (including the FCC), in
respect of the conduct of its business and the ownership of its property
(including compliance with all applicable Environmental Laws with respect to
any Real Estate Asset or governing its business and the requirements of any
permits issued under such Environmental Laws with respect to any such Real
Estate Asset or the operations of Company or any of its Subsidiaries), except
such non compliance that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

4.25        Disclosure.  No representation or warranty of
any Credit Party contained in any Credit Document and none of the reports,
financial statements or other documents, certificates or written statements
furnished to Lenders by or on behalf of Company or any of its Subsidiaries for
use in connection with the transactions contemplated hereby contains any untrue
statement of a material fact or omits to state a material fact (known to the
Credit Parties, in the case of any document not furnished by them) necessary in
order to make the statements contained herein or therein not misleading in
light of the circumstances in which the same were made.  Any projections and pro forma financial
information contained in such materials are based upon good faith estimates and
assumptions believed by the Credit Parties to be reasonable at the time
made.  There are no agreements, instruments
and corporate or other restrictions to which any Credit Party is subject and
there are no facts known (or which should upon the reasonable exercise of
diligence be known) to the Credit Parties (other than matters of a general
economic nature) that, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect and that have not been
disclosed herein or in such other documents, certificates and statements
furnished to Lenders for use in connection with the transactions contemplated
hereby.

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4.26        Terrorism Laws.  The Company and each of its
Subsidiaries is in compliance, in all material respects, with the Terrorism
Laws.  No part of the proceeds of the
Loan Extensions will be used, directly or indirectly, for any payments to any
governmental official or employee, political party, official of a political
party, candidate for political office, or anyone else acting in an official
capacity in violation of the United States Foreign Corrupt Practices Act of
1977, as amended.

4.27        Insurance.  The properties of Company and each
of its Subsidiaries are adequately insured with financially sound and reputable
insurers and in such amounts, with such deductibles and covering such risks and
otherwise on terms and conditions as are customarily carried or maintained by
Persons of established reputation of similar size and engaged in similar
businesses and such insurance complies with the requirements of
Section 5.5.  Schedule 4.27 sets
forth a list of all insurance maintained by or on behalf of the Company and
each of its Subsidiaries as of the Closing Date and, as of the Closing Date,
all premiums in respect of such insurance have been paid or have not yet been
invoiced.

4.28        Common
Enterprise.  The successful
operation and condition of the Borrowers is dependent on the continued
successful performance of the functions of the group of the Borrowers as a
whole and the successful operation of each of the Borrowers is dependent on the
successful performance and operation of each other Borrower.  Each other Borrower expects to derive benefit
(and its board of directors or other governing body has determined that it may
reasonably be expected to derive benefit), directly and indirectly, from (i) successful
operations of each of the other Borrowers and (ii) the credit extended by
the Lenders to the Borrowers hereunder, both in their separate capacities and
as members of the group of companies. 
Each Borrower has determined that execution, delivery, and performance
of this Agreement and any other Credit Documents to be executed by such
Borrower is within its purpose, will be of direct and indirect benefit to such
Borrower, and is in its best interest.

4.29        [Reserved].

4.30        Affiliate
Transactions.  Except as set
forth on Schedule 4.30, as of the date of this Agreement, there are no
existing or proposed agreements, arrangements, understandings, or transactions
between (i) the Company or any of its Subsidiaries and (ii) any of the
officers, members, managers, directors, stockholders, parents, other interest
holders, employees, or Affiliates (other than Subsidiaries) of the Company or
any of its Subsidiaries or any members of their respective immediate families,
and none of the foregoing Persons are directly or indirectly indebted to or
have any direct or indirect ownership, partnership, or voting interest in any
Affiliate of the Company or any of its Subsidiaries or any Person with which
the Company or any of its Subsidiaries has a business relationship or which
competes with the Company or any of its Subsidiaries.

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4.31        Intellectual
Property.  The Company and its
Subsidiaries each owns, or is licensed to use, all trademarks, tradenames,
copyrights, patents and other intellectual property necessary to its business
as currently conducted, a correct and complete list of which, as of the date of
this Agreement, is set forth on Schedule 4.31, and the use thereof by the
Company and/or its Subsidiaries does not infringe in any material respect upon
the rights of any other Person, and the rights of the Company and/or its
Subsidiaries thereto are not subject to any licensing agreement or similar
arrangement.  Each of the Company and its
Subsidiaries has taken reasonable measures to protect the secrecy,
confidentiality and value of all trade secrets used in its business
(collectively, the “Business Trade Secrets”).  To the best knowledge of each Credit Party,
none of the Business Trade Secrets have been disclosed to any Person other than
employees or contractors of the Company and its Subsidiaries who had a need to
know and use such Business Trade Secrets in the ordinary course of employment
or contract performance and who executed appropriate confidentiality agreements
prohibiting the unauthorized use or disclosure of such Business Trade Secrets
and containing other terms reasonably necessary or appropriate for the
protection and maintenance of such Business Trade Secrets.  To the best knowledge of each Credit Party,
no unauthorized disclosure of any Business Trade Secrets has been made.

4.32        Permits, Etc.  Each of the Company and its Subsidiaries has,
and is in compliance with, all permits, licenses, authorizations, approvals,
entitlements and accreditations required for such Person lawfully to own,
lease, manage or operate, or to acquire, each business currently owned, leased,
managed or operated, or to be acquired, by such Person, which, if not obtained,
could not reasonably be expected to have a Material Adverse Effect.  No condition exists or event has occurred
which, in itself or with the giving of notice or lapse of time or both, would
result in the suspension, revocation, impairment, forfeiture or non-renewal of
any such permit, license, authorization, approval, entitlement or
accreditation, and there is no claim that any thereof is not in full force and
effect, except, to the extent any such condition, event or claim could not be
reasonably be expected to have a Material Adverse Effect.

4.33        [Reserved].

4.34        Budget and Financial Plan.

The Budget and Financial
Plan were prepared in good faith by the management of the Borrowers, based on assumptions believed by
the management of the Borrowers to be reasonable at the time made and upon
information believed by the management of the Borrowers to have been accurate
based upon the information available to the management of Borrower at the time
such Budget and Financial Plan were furnished.

4.35        Prepetition Obligations.  Except for
the Prepetition Obligations and as disclosed on Schedule 4.35, the
Company and its Subsidiaries do not have any other Indebtedness for borrowed
money outstanding on the date hereof.

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4.36        FCC Licenses and Approvals.

(a)      Schedule
4.36 annexed hereto correctly describes each of the television stations and
television translators owned, or to be owned, by the Company or any of its
Subsidiaries as of the date hereof.

(b)     Schedule
4.36 correctly sets forth all of the FCC Licenses held by the Company or
any of its Subsidiaries, and correctly sets forth the termination date, if any,
of each such FCC License.  Other than the
FCC Licenses, none of Company, its Subsidiaries or their Affiliates hold any
attributable or other interests in licenses, authorizations or permits issued
by the FCC or any Communications Regulatory Authority.  Except as set forth on Schedule 4.36,
each FCC License which is a main station license or a television translator
station license was duly and validly issued by the FCC pursuant to procedures
which comply with all requirements of applicable law and the Company and its
Subsidiaries do not have any knowledge of the occurrence of any event or the
existence of any circumstance which, in the reasonable judgment of the
Borrowers, is likely to lead to the revocation of any FCC License.  Except as set forth on Schedule 4.36,
the Company and its Subsidiaries each have the right to use all FCC Licenses
required for the operation of their respective stations as presently conducted
and as proposed to be conducted immediately following the date hereof.  Except as set forth on Schedule 4.36,
each such FCC License is in full force and effect and does not, to the
knowledge of the Company and its Subsidiaries, conflict with the valid rights
of others.

(c)      Except
as set forth on Schedule 4.36 the Borrowers have no knowledge of any
investigation, notice of apparent liability, violation, forfeiture or other
order or complaint issued by or before any court or regulatory body, including
the FCC, or of any other proceedings (other than proceedings relating to the
radio or television industries generally) which could in any manner threaten or
adversely affect the validity or continued effectiveness of any FCC License of
the Company or any of its Subsidiaries or give rise to any order of
forfeiture.  Except as set forth on Schedule
4.36, the Borrowers have no reason to believe that the FCC Licenses listed
and described on Schedule 4.36, will not be renewed in the ordinary
course except to the extent that licenses for television stations may be
affected by the conversion to digital television pursuant to the FCC
Rules.  Except as set forth on Schedule
4.36, the Company and its Subsidiaries have filed in a timely manner all
material reports, applications, documents, instruments and information required
to be filed by it pursuant to applicable rules and regulations or requests of
every regulatory body having jurisdiction over any of its FCC Licenses.

(d)     None
of the Facilities used in connection with the television broadcasting
operations of the Company and its Subsidiaries (including without limitation,
the transmitter and tower sites owned or used by the Company and its
Subsidiaries) violates in any material respect the provisions of any applicable
building codes, fire regulations, building restrictions or other governmental
ordinances, orders, or regulations and each such Facility is zoned so as to
permit the commercial uses intended by the owner or occupier thereof and there
are no outstanding variances or special use permits materially affecting any of
the facilities or the uses thereof.

(e)      Each
Ownership Report, if any, filed by the Company or any of its Subsidiaries with
the FCC was true, correct and complete in all material respects as of the date
on which it was filed and the Company and its Subsidiaries have filed all
Ownership Reports which such Person is required to have filed in accordance
with the FCC Rules within the time for filing specified thereunder.

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SECTION 5.                   AFFIRMATIVE
COVENANTS

Each Credit Party covenants and agrees that so long as
any Commitment is in effect and until payment in full of all Obligations, each
Credit Party shall perform, and shall cause each of its Subsidiaries to
perform, all covenants in this Section 5.

5.1          Financial Statements and Other Reports.

Unless otherwise
provided below, Borrowers will deliver to Administrative Agent and Lenders:

(a)           Monthly Reports.  As soon as available, and in any event within
thirty (30) days after the end of each month commencing with the first
fiscal month of the Company and its Subsidiaries ending after the Interim
Facility Effective Date, (i) the consolidated and consolidating balance
sheet of Company and its Subsidiaries as at the end of such month and the
related consolidated (and with respect to statements of income, consolidating)
statements of income of Company and its Subsidiaries for such month and for the
period from the beginning of the then current Fiscal Year to the end of such
month, setting forth in each case in comparative form the corresponding figures
for the corresponding periods of the previous Fiscal Year and the corresponding
figures from the Financial Plan for the current Fiscal Year, all in reasonable
detail, and (ii) a statement showing the components (with reasonable
detail) of Broadcast Cash Flow and information on program payments and capital
expenditures of Company and its Subsidiaries for such month;

(b)           Quarterly Financial Statements.  As soon as available, and in any event within
forty-five (45) days after the end of each Fiscal Quarter of each Fiscal
Year (including the fourth Fiscal Quarter), the consolidated and consolidating
balance sheets of Company and its Subsidiaries as at the end of such Fiscal
Quarter and the related consolidated (and with respect to statements of income,
consolidating) statements of income, stockholders’ equity and cash flows of
Company and its Subsidiaries for such Fiscal Quarter and for the period from
the beginning of the then current Fiscal Year to the end of such Fiscal
Quarter, setting forth in each case in comparative form the corresponding
figures for the corresponding periods of the previous Fiscal Year and the
corresponding figures from the Financial Plan for the current Fiscal Year, all
in reasonable detail, together with a Financial Officer Certification and a
Narrative Report with respect thereto (it being understood that the delivery by
the Company of Quarterly Reports on Form 10-Q of the Company and its
consolidated Subsidiaries shall satisfy the requirements of this
Section 5.1(b));

(c)           Annual Financial Statements.  As soon as available, and in any event within
ninety (90) days after the end of each Fiscal Year, (i) the consolidated
and consolidating balance sheets of Company and its Subsidiaries as at the end
of such Fiscal Year and the related consolidated (and with respect to
statements of income, consolidating) statements of income, stockholders’ equity
and cash flows of Company and its Subsidiaries for

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such Fiscal Year, setting forth in each case in
comparative form the corresponding figures for the previous Fiscal Year and the
corresponding figures from the Financial Plan for the Fiscal Year covered by
such financial statements, in reasonable detail, together with a Financial
Officer Certification and a Narrative Report with respect thereto; and
(ii) with respect to such financial statements a report thereon of Ernst
& Young LLP or other independent certified public accountants of recognized
national standing selected by Administrative Borrower, and reasonably
satisfactory to Administrative Agent (which report shall be without
qualification or exception as to the scope of such audit), and shall state that
such consolidated financial statements fairly present, in all material
respects, the consolidated financial position of Company and its Subsidiaries
as at the dates indicated and the results of their operations and their cash
flows for the periods indicated in conformity with GAAP applied on a basis
consistent with prior years (except as otherwise disclosed in such financial
statements) and that the examination by such accountants in connection with
such consolidated financial statements has been made in accordance with generally
accepted auditing standards) (it being understood that the delivery by the
Company of Annual Reports on Form 10-K of the Company and its
consolidated Subsidiaries shall satisfy the requirements of this
Section 5.1(c);

(d)           Compliance Certificate.  Together with each delivery of financial
statements of Company and its Subsidiaries pursuant to Sections 5.1(a),
5.1(b) and 5.1(c), a duly executed and completed Compliance Certificate;

(e)           Statements of Reconciliation after
Change in Accounting Principles.  If,
as a result of any change in accounting principles and policies (or the
application thereof) from those used in the preparation of the Historical
Financial Statements, the consolidated financial statements of Company and its
Subsidiaries delivered pursuant to Section 5.1(b) or 5.1(c) will differ in
any material respect from the consolidated financial statements that would have
been delivered pursuant to such subdivisions had no such change in accounting
principles and policies been made, then, together with the first delivery of
such financial statements after such change, one or more statements of
reconciliation for all such prior financial statements in form and substance
satisfactory to Administrative Agent;

(f)            Notice of Default.  Prompt written notice (i) of any
condition or event that constitutes a Default or an Event of Default or that
notice has been given to the Company or any of its Subsidiaries with respect
thereto; (ii) that any Person has given any notice to Company or any of its
Subsidiaries or taken any other action with respect to any event or condition
set forth in Section 8.1(b); or (iii) of the occurrence of any event
or change that has caused or evidences, either in any case or in the aggregate,
a Material Adverse Effect, or (iv) the occurrence of any Internal Control
Event which is required to be publicly disclosed of which any officer of a
Borrower has knowledge which notice shall be accompanied by a certificate of
its Authorized Officers specifying the nature and period of existence of such
condition, event or change, or specifying the notice given and action taken by
any such Person and the nature of such claimed Event of Default, Default,
default, event or condition, and what action Borrowers has taken, is taking and
proposes to take with respect thereto;

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(g)           Notice of Litigation.  Prompt written notice of (i) the
institution of, or threat of, any Adverse Proceeding not previously disclosed
in writing by the Borrowers to Lenders, or (ii) any material development
in any Adverse Proceeding including any development that could be reasonably
expected to have a Material Adverse Effect, or seeks to enjoin or otherwise
prevent the consummation of, or to recover any damages or obtain relief as a
result of, the transactions contemplated hereby, or which arises in respect of
any material Indebtedness of Company or its Subsidiaries or alleges any
criminal misconduct by the Company or any of its Subsidiaries together in each
case with such other information as may be reasonably available to Administrative
Borrower to enable Lenders and their counsel to evaluate such matters;

(h)           ERISA.  (i) Prompt written notice of the
occurrence of or forthcoming occurrence of any ERISA Event which could
reasonably be expected to result in a material liability, specifying the nature
thereof, what action Company, any of its Subsidiaries or any of their
respective ERISA Affiliates has taken, is taking or proposes to take with
respect thereto and, when known, any action taken or threatened by the Internal
Revenue Service, the Department of Labor or the PBGC with respect thereto; and
(ii) with reasonable promptness, copies of (1) each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) filed by
Company, any of its Subsidiaries or any of their respective ERISA Affiliates
with the Internal Revenue Service with respect to each Pension Plan; and
(2) all notices received by Company, any of its Subsidiaries or any of
their respective ERISA Affiliates from a Multiemployer Plan sponsor concerning an
ERISA Event;

(i)            Preferred Stock.  At least 30 days’ prior written notice
of any election by Company to exchange any Preferred Stock in accordance with
the terms thereof; provided that this clause (i) shall not be
construed as a consent by Requisite Lenders to permit any such election not
otherwise permitted hereby.

(j)            Insurance Report.  As soon as practicable and in any event by
the last day of each Fiscal Year, a report in form and substance satisfactory
to Administrative Agent outlining all material insurance coverage maintained as
of the date of such report by Company and its Subsidiaries and all material
insurance coverage planned to be maintained by Company and its Subsidiaries in
the immediately succeeding Fiscal Year;

(k)           Notice of Change in Board of Directors.  With reasonable promptness, written notice of
any change in the board of directors (or similar governing body) of Company or
any of its Subsidiaries;

(l)            Notice Regarding Material
Contracts.  Promptly, and in any
event within five Business Days after any Material Contract of Company or any
of its Subsidiaries is terminated or materially impaired;

(m)          Environmental Reports and Audits.  As soon as practicable following receipt
thereof, copies of all environmental audits and reports with respect to environmental
matters at any Facility or which relate to any environmental liabilities of
Company or its Subsidiaries which, in any such case, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect;

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(n)           Information Regarding Collateral.  Administrative Borrower will furnish to each
of the Collateral Agent and the Administrative Agent prompt written notice, and
in any event within thirty (30) days of such occurrence, of any change
(i) in any Credit Party’s corporate name, (ii) in any Credit Party’s
identity or corporate structure, or (iii) in any Credit Party’s Federal
Taxpayer Identification Number. 
Borrowers agree not to effect or permit any change referred to in the
preceding sentence unless all filings have been made under the Uniform
Commercial Code or otherwise that are required in order for Collateral Agent to
continue at all times following such change to have a valid, legal and
perfected security interest in all the Collateral and for the Collateral at all
times following such change to have a valid, legal and perfected security
interest as contemplated in the Collateral Documents.  Company will furnish to Administrative Agent
prompt (but not more than three Business Days after the occurrence thereof) written
notice of any Lien (other than Permitted Liens) or claims made or asserted
against any Collateral or interest therein. 
Company also agrees promptly to notify Collateral Agent and the
Administrative Agent in writing if any material portion of the Collateral is
lost, damaged or destroyed;

(o)           Tax Returns.  As soon as practicable and in any event
within fifteen (15) days following the filing thereof, copies of each
federal income tax return filed by or on behalf of the Company or any of its
Subsidiaries;

(p)           Violations of Terrorism Laws.  Promptly (i) if any Credit Party obtains
knowledge that the Company or any of its Subsidiaries or any Person which owns,
directly or indirectly, any Capital Securities of the Company or any of its
Subsidiaries, or any other holder at any time of any direct or indirect
equitable, legal or beneficial interest therein is the subject of any of the
Terrorism Laws, such Credit Party will notify Administrative Agent and
(ii) upon the request of any Lender, such Credit Party will provide any
information such Lender believes is reasonably necessary to be delivered to
comply with the Patriot Act;

(q)           Other Information.  (A) Promptly upon their becoming
available, copies of (i) all financial statements, reports, notices and
proxy statements sent or made available generally by Company to its security
holders acting in such capacity or by any Subsidiary of Company to its security
holders other than Company or another Subsidiary of Company, (ii) all
regular and periodic reports and all registration statements and prospectuses,
if any, filed by Company or any of its Subsidiaries with any securities
exchange or with the Securities and Exchange Commission or any governmental or
private regulatory authority, (iii) all press releases and other
statements made available generally by Company or any of its Subsidiaries to
the public concerning material developments in the business of Company or any
of its Subsidiaries, (B) promptly after submission to any Governmental
Authority, all documents and information furnished to such Governmental
Authority in connection with any investigation of the Company or any of its
Subsidiaries (other than any routine inquiry), (C) promptly upon receipt
thereof, copies of all financial reports submitted to the Company or any of its
Subsidiaries by its auditors in connection with any audit of the books thereof
and

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(D) such other information and data with respect
to Company or any of its Subsidiaries as from time to time may be reasonably
requested by Administrative Agent;

(r)            Budget Reconciliation.  Promptly, but in no event later than the 10th day following the last day of each Budget
Period, commencing with the calendar month ending December 31, 2006, a
reconciliation, in form and substance satisfactory to the Administrative Agent,
of the actual total payments and cash generation/use of the Company and its
Subsidiaries and the actual maximum aggregate principal amount of Loans for
such Budget Period to the budgeted line item amounts set forth in the Budget
for such Budget Period, including the percentage deviation of actual to
budgeted amounts for each line item and for the aggregate principal amount of
Loans drawn during and outstanding for such Budget Period as well as a listing
of all intercompany loans among the Company and its Subsidiaries outstanding as
of the last day of such Budget Period and the net increase or decrease in the
principal amount of each such loan since the last budget reconciliation was
delivered;

(s)           Filings.  Promptly after the filing thereof, copies of
all pleadings, motions, applications, financial information and other papers
and documents filed by any Credit Party in the Chapter 11 Cases, which papers
and documents shall also be given or served on each Agent’s counsel;

(t)            Creditors’ Committee Reports.  Promptly after the sending thereof, copies of
all written reports given by any Credit Party to any official or unofficial
creditors’ committee in the Chapter 11 Cases related to the operations,
business, assets, properties or financial condition of the Company or any of
its Subsidiaries (including, without limitation, audits, appraisals, valuations,
projections and other financial reports) other than any written reports subject
to privilege, provided that such Person may redact any confidential information
contained in any such written report if it provides a summary of the nature of
the information redacted to each Agent; and

(u)           FCC Licenses, etc.  Promptly upon receipt of notice of (a) any
forfeiture, non-renewal, cancellation, termination, revocation, suspension,
impairment or material modification of any FCC License which is a main station
license or otherwise material to the lawful ownership, lease, control, use,
operation, management or maintenance of any broadcast station or other
broadcasting property held by the Company or any of its Subsidiaries, or any
notice of default or forfeiture with respect to any such FCC License, (b) any
refusal by any governmental agency or authority (including, without limitation,
the FCC) to renew or extend any such FCC License, an officer’s certificate
specifying the nature of such event, the period of existence thereof, and what
action the Borrowers are taking or propose to take with respect thereto or (c)
any other development that could reasonably be expected to have a material
adverse effect on any FCC License which is a main station license or a license
which is otherwise material to the lawful ownership, lease, control, use,
operation, management or maintenance of any broadcast station or other
broadcasting property held by the Company or any of its Subsidiaries.

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(v)           August 2007 Budget.  Not later than March 31, 2007, an addition to
the Budget to include the August 2007 Budget Period in form and substance
reasonably satisfactory to the Administrative Agent.

5.2          Existence.  Except as otherwise permitted
under Section 6.8, each Credit Party will, and will cause each of its
Subsidiaries to, at all times preserve and keep in full force and effect its
existence and all rights and governmental authorizations, qualifications,
franchises, licenses and permits material to its business and to conduct its
business in each jurisdiction in which its business is conducted.

5.3          Payment of
Taxes and Claims.  Each Credit
Party will, and will cause each of its Subsidiaries to, pay all Taxes imposed
upon it or any of its properties or assets or in respect of any of its income,
businesses or franchises before any penalty or fine accrues thereon, and all
claims (including claims for labor, services, materials and supplies) for sums
that have become due and payable and that by law have or may become a Lien upon
any of its properties or assets, prior to the time when any penalty or fine
shall be incurred with respect thereto; provided, (a) no such Tax
or claim need to be paid with respect to periods prior to the Filing Date for
which payment cannot be made as a result of such Credit Party’s status as a
debtor and debtor-in-possession under Chapter 11 of the Bankruptcy Code,
and (b) no such Tax or claim need be paid if it is being contested in good
faith by appropriate proceedings promptly instituted and diligently conducted,
so long as (i) adequate reserve or other appropriate provision, as shall
be required in conformity with GAAP shall have been made therefor, and
(ii) in the case of a Tax or claim which has or may become a Lien against
any asset of the Company or any of its Subsidiaries, such contest proceedings
conclusively operate to stay the sale of any portion of such asset to satisfy
such Tax or claim.  No Credit Party will,
nor will it permit any of its Subsidiaries to, file or consent to the filing of
any consolidated income tax return with any Person (other than Company or any
of its Subsidiaries).

5.4          Maintenance of
Properties.  Each Credit Party
will, and will cause each of its Subsidiaries to, (a) maintain or cause to
be maintained in good repair, working order and condition, ordinary wear and
tear excepted, all material properties used or useful in the business of
Company and its Subsidiaries and from time to time will make or cause to be
made all appropriate repairs, renewals and replacements thereof and (b) comply
at all times with the provisions of all material leases to which it is a party
as lessee or under which it occupies property, so as to prevent any loss or
forfeiture thereof or thereunder, except in the case of the Credit Parties, any
non-compliance resulting in a default, the enforcement of which is stayed by
the Chapter 11 Cases.

5.5          Insurance.  The Company and its Subsidiaries
will maintain or cause to be maintained, with financially sound and reputable
insurers, (i) business interruption insurance reasonably satisfactory to
Administrative Agent, and (ii) casualty insurance, such public liability
insurance, third party property damage insurance with respect to liabilities,
losses or damage in respect of the assets, properties and businesses of Company
and its Subsidiaries as are customarily carried or maintained under similar
circumstances by Persons of established reputation of similar size and engaged
in similar businesses, in each case in such amounts (giving effect to self
insurance which comports with the requirements of this Section and provided
that

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adequate reserves
therefor are maintained in accordance with GAAP), with such deductibles,
covering such risks and otherwise on such terms and conditions as shall be
customary for such Persons.  Without limiting
the generality of the foregoing, the Company and its Subsidiaries will maintain
or cause to be maintained (a) flood insurance with respect to each Flood
Hazard Property that is located in a community that participates in the
National Flood Insurance Program, in each case in compliance with any
applicable regulations of the Board of Governors of the Federal Reserve System,
and (b) replacement value casualty insurance on its assets under such
policies of insurance, with such insurance companies, in such amounts, with
such deductibles, and covering such risks as are at all times carried or
maintained under similar circumstances by Persons of established reputation of
similar size and engaged in similar businesses. 
Each such policy of insurance shall (i) name Collateral Agent, on
behalf of the Secured Parties as an additional insured thereunder as its
interests may appear, and (ii) in the case of each casualty insurance
policy, contain a loss payable clause or endorsement, satisfactory in form and
substance to Collateral Agent, that names Collateral Agent, on behalf of
Secured Parties, as the loss payee thereunder and provides for at least thirty
(30) days’ prior written notice to Collateral Agent of any modification or
cancellation of such policy and that no act or default of the Company or any of
its Subsidiaries or any other Person shall affect the right of the Collateral
Agent to recover under such policy or policies in case of loss or damage.

5.6          Books and
Records; Inspections.  Each
Credit Party will, and will cause each of its Subsidiaries to, (a) keep
adequate books of record and account in which full, true and correct entries
are made of all dealings and transactions in relation to its business and
activities and (b) permit any representatives designated by Administrative
Agent or any Lender (including employees of Administrative Agent, any Lender or
any consultants, accountants, lawyers and appraisers retained by Administrative
Agent) to visit and inspect any of the properties of any Credit Party and any
of its respective Subsidiaries, to inspect, copy and take extracts from its and
their financial and accounting records, and to discuss its and their affairs,
finances and accounts with its and their officers and independent accountants,
all upon reasonable notice and at such reasonable times during normal business
hours (so long as no Default or Event of Default has occurred and is
continuing) and as often as may reasonably be requested and by this provision
the Credit Parties authorize such accountants to discuss with Administrative
Agent and Lender and such representatives the affairs, finances and accounts of
Company and its Subsidiaries.  The Credit
Parties acknowledge that Administrative Agent, after exercising its rights of
inspection, may prepare and distribute to the Lenders certain reports
pertaining to the assets of the Company and its Subsidiaries for internal use
by Administrative Agent and the Lenders. 
After the occurrence and during the continuance of any Event of Default,
each Credit Party shall, and shall cause its Subsidiaries to, provide
Administrative Agent and each Lender with access to its customers and
suppliers.

5.7          [Reserved].

5.8          Compliance
with Laws.  Each Credit Party
will comply, and shall cause each of its Subsidiaries, to comply with the
requirements of all applicable laws, rules, regulations and orders of any
Governmental Authority (including all Environmental Laws and FCC Rules), except
where noncompliance could not reasonably be expected to have, individually or
in the aggregate, a Material Adverse Effect. 
Each Credit Party shall take all reasonable and necessary actions to
ensure that no portion of the Loans will be used, disbursed or distributed for
any purpose, or to any Person, directly or indirectly, in violation of any of
the Terrorism Laws and shall take all reasonable and necessary action to comply
in all material respects with all Terrorism Laws with respect thereto.

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5.9          Environmental

(a)           Environmental Disclosure.  The Borrowers will deliver to Administrative
Agent and Lenders:

(i)   as soon as practicable following
receipt thereof, copies of all environmental audits, investigations, analyses
and reports of any kind or character, whether prepared by personnel of Company
or any of its Subsidiaries or by independent consultants, governmental
authorities or any other Persons, with respect to significant environmental
matters at any Facility or with respect to any Environmental Claims;

(ii)  promptly upon the occurrence thereof,
written notice describing in reasonable detail (1) any Release required to
be reported to any federal, state or local governmental or regulatory agency
under any applicable Environmental Laws, (2) any remedial action taken by
Borrowers or any other Person in response to (A) any Hazardous Materials
Activities the existence of which has a reasonable possibility of resulting in
one or more Environmental Claims having, individually or in the aggregate, a
Material Adverse Effect, or (B) any Environmental Claims that,
individually or in the aggregate, have a reasonable possibility of resulting in
a Material Adverse Effect, and (3) Borrowers’ discovery of any occurrence
or condition on any real property adjoining or in the vicinity of any Facility
that could cause such Facility or any part thereof to be subject to any
material restrictions on the ownership, occupancy, transferability or use
thereof under any Environmental Laws;

(iii)   as soon as practicable following the
sending or receipt thereof by Company or any of its Subsidiaries, a copy of any
and all written communications with respect to (1) any Environmental
Claims that, individually or in the aggregate, have a reasonable possibility of
giving rise to a Material Adverse Effect, (2) any Release required to be
reported to any federal, state or local governmental or regulatory agency, and
(3) any request for information from any governmental agency that suggests
such agency is investigating whether Company or any of its Subsidiaries may be
potentially responsible for any Hazardous Materials Activity;

(iv)   prompt written notice describing in
reasonable detail (1) any proposed acquisition of stock, assets, or
property by Company or any of its Subsidiaries that could reasonably be
expected to (A) expose Company or any of its Subsidiaries to, or result
in, Environmental Claims that could reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect or (B) affect
the ability of Company or any of its Subsidiaries to maintain in full force and
effect all material Governmental Authorizations required under any
Environmental Laws for their respective operations and (2) any proposed
action to be taken by Company or any of its Subsidiaries to modify current
operations in a manner that could reasonably be expected to subject Company or
any of its Subsidiaries to any additional material obligations or requirements
under any Environmental Laws; and

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(v)   with reasonable promptness, such
other documents and information as from time to time may be reasonably
requested by Administrative
Agent in relation to any matters disclosed pursuant to this
Section 5.9(a).

(b)           Hazardous Materials Activities,
Etc.  Each Credit Party shall
promptly take, and shall cause each of its Subsidiaries promptly to take, any
and all actions necessary to (i) cure any violation of applicable
Environmental Laws by such Credit Party or its Subsidiaries that could
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect, and (ii) make an appropriate response to any Environmental
Claim against such Credit Party or any of its Subsidiaries and discharge any
obligations it may have to any Person thereunder where failure to do so could
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

(c)           If counsel to Company or any of its
Subsidiaries reasonably determines (1) that provision to Administrative
Agent of a document otherwise required to be provided pursuant to this
Section 5.9 (or any other provision of this Agreement or any other Credit
Document relating to environmental matters) would jeopardize an applicable
attorney-client or work product privilege pertaining to such document,
then Company or its Subsidiary shall not be obligated to deliver such document
to Administrative Agent but shall provide Administrative Agent with a notice
identifying the author and recipient of such document and generally describing
the contents of the document.  Upon
request of Administrative Agent, Company and its Subsidiaries shall take all
reasonable steps necessary to provide Administrative Agent with the factual
information contained in any such privileged document.

5.10        Subsidiaries.  Each Credit Party shall promptly cause:

(a)           each
Domestic Subsidiary of such Credit Party not in existence on the Interim
Facility Effective Date and not a Subsidiary of a Non-Debtor Subsidiary, to
execute and deliver to the Collateral Agent promptly and in any event within 5
Business Days (or, in the case of clause (D) below, 10 Business Days) after the
formation, acquisition or change in status thereof (A) a Guaranty guaranteeing
the Obligations, (B) a Security Agreement, (C) if such Subsidiary has any
Subsidiaries, a Pledge Agreement, together with (x) certificates, if any,
evidencing all (or, in the case of a first-tier Foreign Subsidiary of such
Subsidiary, 65%) (or such greater percentage that, due to a change in
applicable law after the Interim Facility Effective Date, (1) could not
reasonably be expected to cause the undistributed earnings of such Foreign
Subsidiary as determined for United States federal income tax purposes to be
treated as a deemed dividend to such Foreign Subsidiary’s United States parent
or (2) could not reasonably be expected to cause any material adverse tax
consequences) of the issued and outstanding Capital Stock entitled to vote
(within the meaning of Treas. Reg. Section 1.956 2(c)(2)) and 100% of the
issued and outstanding Capital Stock not entitled to vote (within the meaning
of Treas. Reg. Section 1.956 2(c)(2)) of the Capital Stock of any Person owned
by such Subsidiary, (y) undated stock powers executed in blank with signature
guaranteed, and (z) such opinion of counsel and

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such approving
certificate of such Subsidiary as the Collateral Agent may reasonably request
in respect of complying with any legend on any such certificate or any other
matter relating to such shares, (D) one or more Mortgages creating on any real
property of such Subsidiary with a fair market value in excess of $250,000
(which, in the case of a leasehold interest in real property, shall be on a
commercially reasonable efforts basis), a perfected, first priority Lien on
such real property, a Title Insurance Policy covering such real property, a
current ALTA survey thereof and a surveyor’s certificate, each in form and
substance satisfactory to the Collateral Agent, together with such other
agreements, instruments and documents as the Collateral Agent may reasonably
require, and (E) such other agreements, instruments, approvals, legal opinions
or other documents reasonably requested by the Collateral Agent in order to
create, perfect, establish the first priority of or otherwise protect any Lien
purported to be covered by any such Security Agreement, Pledge Agreement or
Mortgage or otherwise to effect the intent that such Subsidiary shall become
bound by all of the terms, covenants and agreements contained in the Credit
Documents and that substantially all property and assets of such Subsidiary
shall become Collateral for the Obligations; and

(b)           each
owner of the Capital Stock of any such Domestic Subsidiary to execute and
deliver promptly and in any event within 5 Business Days after the formation or
acquisition of such Subsidiary a Pledge Agreement, together with (A)
certificates evidencing all of the Capital Stock of such Subsidiary, (B)
undated stock powers or other appropriate instruments of assignment executed in
blank with signature guaranteed, (C) such opinion of counsel and such approving
certificate of such Subsidiary as the Collateral Agent may reasonably request
in respect of complying with any legend on any such certificate or any other
matter relating to such shares and (D) such other agreements, instruments,
approvals, legal opinions or other documents reasonably requested by the
Collateral Agent relating to such shares.

5.11        Additional Material Real Estate Assets.  In the event
that any Credit Party acquires a Material Real Estate Asset after the Closing
Date or a Real Estate Asset owned or leased on the Closing Date becomes a
Material Real Estate Asset after the Closing Date and such interest has not
otherwise been made subject to the Lien of the Collateral Documents in favor of
Collateral Agent, for the benefit of Secured Parties, then such Credit Party,
contemporaneously with acquiring such Material Real Estate Asset, or promptly
after a Real Estate Asset owned or leased on the Closing Date becomes a
Material Real Estate Asset, shall take all such actions and execute and
deliver, or cause to be executed and delivered, all such mortgages, documents,
instruments, agreements, opinions and certificates that Collateral Agent shall
reasonably request to create in favor of Collateral Agent, for the benefit of
Secured Parties, a valid and, subject to any filing and/or recording referred
to herein, perfected First Priority security interest in such Material Real
Estate Assets.  Notwithstanding the
foregoing, with respect to any Leased Property which is or becomes a Material
Real Estate Asset, the applicable Credit Party’s obligation with respect
thereto shall be limited to using commercially reasonable efforts to cause the
landlord of such Leased Property to consent and execute and deliver such
mortgages, documents, instruments, agreements, opinions and certificates that
Collateral Agent shall reasonably request (including, if requested, a Landlord
Collateral Access Agreement and a Landlord Consent and Estoppel).  In no event shall this provision be deemed to
require any Credit Party to take any action which would cause a breach of the
lease pertaining to any such Leased Property. 
In addition to the foregoing, Administrative Borrower shall, at the
request of Requisite Lenders, deliver, from time to time, to Administrative
Agent such appraisals as are required by law or regulation of Real Estate
Assets with respect to which Collateral Agent has been granted a Lien.

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5.12        Additional Borrowers. The Credit Parties shall (i) cause each Subsidiary
of the Company which, after the date hereof, becomes subject to an Insolvency
Event  to become a “Borrower” hereunder
by execution of an Assumption Agreement substantially in the form of Exhibit
G hereof and otherwise in form and substance satisfactory to the
Administrative Agent, (ii) promptly obtain an order of the Bankruptcy Court, in
form and substance satisfactory to the Administrative Agent, authorizing and
approving the assumption by such Subsidiary of the Obligations hereunder and
confirming that such Subsidiary is jointly and severally liable for the
Obligations hereunder with the other Borrowers pursuant to Section 2.24 hereof
in the same manner and to the same extent as if it had initially been a Credit
Party under this Agreement on the date hereof, (iii) promptly amend the
Reorganization Plan in a manner satisfactory to the Administrative Agent to
include such Subsidiary and promptly obtain an Order of the Bankruptcy Court
approving such amendment and otherwise in form and substance satisfactory to
the Administrative Agent and (iv) cause such Subsidiary to perform all
obligations required to be performed by a Credit Party under the Credit Documents
and to take such other actions as are reasonably requested by the
Administrative Agent to cause such compliance.

5.13        Cash Management
System

(a)  Following an Event of Default, each Credit
Party shall have no right to issue withdrawal, payment, transfer or other fund
disposition or other instructions which it otherwise would be entitled to give
under the deposit account agreement or any other documentation in effect from
time to time with respect to any of its Deposit Accounts or services provided in
connection with such Deposit Accounts (the “Credit Party Documentation”)
without the express written consent of the Collateral Agent.

(b)  The Credit Parties shall and
each of their Subsidiaries shall cause all available funds held in their
respective Deposit Accounts to be transferred on each Business Day (in
excess of checks outstanding against such accounts and amounts necessary to
meet minimum balance requirements) to
the following account (the “Company Account”):

	
     

  	
   

  	
  Account Name:

  	
   

  	
  Granite Broadcasting Corporation

  
	
     

  	
   

  	
  Bank Name:

  	
   

  	
  Deutsche Bank Trust Company Americas

  
	
     

  	
   

  	
  Bank ABA#:

  	
   

  	
  021001033

  
	
     

  	
   

  	
  Account#:

  	
   

  	
  00-228-523

  

 

Any changes to the
above instruction, and any other instructions with respect to each account referred
to in this Section 5.13(b), shall be honored by depositary only if given by the
Collateral Agent.

(c)
The Company shall use commercially reasonable efforts to deliver an account
control agreement, in form and substance satisfactory to the Collateral Agent,
executed by the Company and the applicable account bank (i) with respect to the
Company Account, within 10 days of the date hereof and (ii) with respect to the
other Credit Party’ Accounts, within 30 days of the date hereof.

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(d)  With respect to any account of the Company or
its Subsidiaries not subject to this Section 5.13, the Company shall, and shall
cause each of its Subsidiaries to, maintain funds in such accounts only to the
extent necessary to satisfy disbursements to be made from such accounts with
respect to obligations then due and payable or as otherwise necessary to meet
minimum balance requirements.

5.14        Further
Assurances.  At any time or
from time to time upon the request of Administrative Agent, each Credit Party
will, at its expense, promptly execute, acknowledge and deliver such further
documents and do such other acts and things as Administrative Agent or
Collateral Agent may reasonably request in order to effect fully the purposes
of the Credit Documents, including providing Lenders with any information
reasonably requested pursuant to Section 12.22.  In furtherance and not in limitation of the
foregoing, each Credit Party shall take such actions as Administrative Agent or
Collateral Agent may reasonably request from time to time to ensure that the
Obligations are guarantied by the Guarantors and are secured by substantially
all of the assets of the Credit Parties and all of the outstanding Capital
Stock of the Credit Parties (other than the Company).

5.15        Miscellaneous Business Covenants.  Unless otherwise consented to by
Agents and Requisite Lenders:

(a)           Non-Consolidation.  Company will and will cause each of its
Subsidiaries to:  (i) maintain
entity records and books of account separate from those of any other entity
which is an Affiliate of such entity; (ii) except with respect to routine
cash management and concentration, not commingle its funds or assets with those
of any other entity which is an Affiliate of such entity; and
(iii) generally maintain corporate separateness.

(b)           Cash Management Systems.  Company and its Subsidiaries shall maintain
cash management systems reasonably acceptable to Administrative Agent and in
accordance with applicable Bankruptcy Court orders.

(c)           Conduct of Business.  Company and its Subsidiaries shall continue
to engage in business of the same general types as now conducted by them.

5.16        Use of Proceeds.  The proceeds of the Loans will
be used only for as set forth in Section 2.5.  No part of the proceeds of any Loan will be
used, whether directly or indirectly, for any purpose that entails a violation
of any law, including Regulations T, U and X of the Board of Governors of the
Federal Reserve System.

5.17        Retention of Advisors. 
Subject to Bankruptcy Court
approval, Company shall continue at all times the retention of Houlihan Lokey
pursuant to the agreements between such financial advisors and the Company
entered into prior to the Filing Date (or other financial advisors reasonably
acceptable to the Administrative Agent).

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5.18        Filings.  The Company shall, (x) not later than five (5)
Business Days following the Filing Date file a Form 15 with the Securities and
Exchange Commission to effect the deregistration of its outstanding shares of
common stock under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and will take all other actions
necessary to terminate at the earliest possible time following the Filing Date
its reporting obligations under the Exchange Act, provided that at such time
the Company is permitted to file such Form 15 by virtue of having less than
three hundred shareholders, and (y) not take, or permit to be taken, any
actions that would require it to register any securities under Section 12(b) or
12(g) of the Exchange Act or file reports under Section 13 or 15 of the
Exchange Act.

SECTION 6.                                                         NEGATIVE COVENANTS

Each Credit Party covenants and agrees that, so long
as any Commitment is in effect and until payment in full of all Obligations,
such Credit Party shall perform, and shall cause each of its Subsidiaries to
perform, all covenants in this Section 6.

6.1          Indebtedness.  No Credit Party shall, nor shall
it permit any of its Subsidiaries to, directly or indirectly, create, incur
(including make any election to exchange any Preferred Stock for Indebtedness),
assume or guaranty, or otherwise become or remain directly or indirectly liable
with respect to any Indebtedness, except:

(a)           the Obligations;

(b)           Indebtedness of (i) any Non-Debtor
Subsidiary owed to a Credit Party or any Credit Party owed to another Credit
Party, in each case, incurred in accordance with Section 6.22 and (ii) a Credit
Party owed to a Non-Debtor Subsidiary; provided that all such
Indebtedness under this clause (ii) shall be unsecured and subordinated in
right of payment to the payment in full of the Obligations pursuant to the
terms of the applicable promissory notes or an intercompany subordination
agreement that in any such case, is reasonably satisfactory to Administrative
Agent;

(c)           [Reserved];

(d)           [Reserved];

(e)           Indebtedness which may be deemed to
exist pursuant to any guaranties, performance, surety, statutory, appeal or
similar obligations incurred in the ordinary course of business;

(f)            Indebtedness in respect of netting
services, overdraft protections and otherwise in connection with customary
Deposit Accounts and payroll accounts maintained by the Company or its
Subsidiaries as part of its ordinary cash management program;

(g)           Performance guaranties in the
ordinary course of business and consistent with historic practices of the
obligations of suppliers, customers, franchisees and licensees of Company and
its Subsidiaries;

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(h)           Indebtedness in respect of the
Existing Malara Facility; and

(i)            Prepetition Obligations and any
other Indebtedness described in Schedule 6.1, but not any extensions,
renewals or replacements of such Prepetition Obligations or other Indebtedness.

6.2          Liens.  Except for Permitted Liens, no
Credit Party shall, nor shall it permit any of its Subsidiaries to, directly or
indirectly, create, incur, assume or permit to exist any Lien on or with
respect to any property or asset of any kind (including any document or
instrument in respect of goods or accounts receivable and any Security) of
Company or any of its Subsidiaries, whether now owned or hereafter acquired, or
any income or profits therefrom, or file or permit the filing of, or permit to
remain in effect, any financing statement or other similar notice of any Lien
with respect to any such property, asset, income or profits under the UCC of
any State or under any similar recording or notice statute.

6.3          No Further
Negative Pledges.  No Credit
Party shall, nor shall it permit any of its Subsidiaries to, enter into any
agreement prohibiting the creation or assumption of any Lien upon any of its
properties or assets, whether now owned or hereafter acquired.  For the avoidance of doubt, the prohibitions
contained in the Prepetition Credit Documents existing on the date hereof shall
not violate this Section 6.3.

6.4          Restricted
Junior Payments.  No Credit
Party shall, nor shall it permit any of its Subsidiaries or Affiliates through
any manner or means or through any other Person to, directly or indirectly,
declare, order, pay, make or set apart, or agree to declare, order, pay, make
or set apart, any sum for any Restricted Junior Payment.

6.5          Restrictions
on Subsidiary Distributions.  Except
as provided herein, no Credit Party shall, nor shall it permit any of its
Subsidiaries to, create or otherwise cause or suffer to exist or become
effective any consensual encumbrance or restriction of any kind on the ability
of any Subsidiary of Company to (a) pay dividends or make any other
distributions on any of such Subsidiary’s Capital Stock owned by Company or any
other Subsidiary of Company, (b) repay or prepay any Indebtedness owed by such
Subsidiary to Company or any other Subsidiary of Company, (c) make loans
or advances to Company or any other Subsidiary of Company, or (d) transfer
any of its property or assets to Company or any other Subsidiary of Company
other than restrictions (i) by reason of customary provisions restricting
assignments, subletting or other transfers contained in leases, licenses, joint
venture agreements and similar agreements entered into in the ordinary course
of business as of the date hereof, (ii) contained in agreements governing
Indebtedness permitted by Sections 6.1(h) or (i), (iii) customary
non-assignment provisions of any contract or any lease governing a leasehold
interest of any Subsidiary of the Company; (iv) contained in the Collateral
Documents; (v) on the transfer of assets subject to any Lien permitted
under this Agreement imposed by the holder of such Lien; (vi) imposed by
any agreement to sell assets or Capital Stock permitted under this Agreement to
any Person pending the closing of such sale; (vii) that restricts in a
customary manner the subletting, assignment or transfer of any property or
asset that is subject to a lease, license or similar contract, or the
assignment or transfer of any such lease, license or other contract; or (viii) on
cash or other deposits or net worth imposed by customers under contracts
entered into in the ordinary course

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of business and
consistent with past practice; (ix) that are or were created by virtue of
any transfer of, agreement to transfer or option or right with respect to any
property, assets or Capital Stock not otherwise prohibited under this
Agreement; or (x) that are or were created by virtue of any applicable law,
rule or regulation or order of the Bankruptcy Court.  No Credit Party shall, nor shall it permit
its Subsidiaries to, enter into any Contractual Obligation which would prohibit
a Subsidiary of Company from becoming a Credit Party.

6.6          Investments.  No Credit Party shall, nor shall
it permit any of its Subsidiaries to, directly or indirectly, make or own any
Investment in any Person, including without limitation any Joint Venture,
except:

(a)           Investments in Cash and Cash
Equivalents;

(b)           equity Investments owned as of the
Closing Date in any Subsidiary and Investments made after the Closing Date in
any Credit Party;

(c)           Investments (i) in any
Securities received in satisfaction or partial satisfaction thereof from
financially troubled account debtors, and (ii) constituting deposits,
prepayments and other credits to suppliers made in the ordinary course of
business consistent with the past practices of Company and its Subsidiaries;

(d)           intercompany loans to the extent
permitted under Section 6.1(b);

(e)           Consolidated Capital Expenditures
made in accordance with the then applicable Budget (taking into account any
Permitted Deviation);

(f)            Investments in any Credit Party by
any Subsidiary of Company;

(g)           Investments in prepaid expenses,
negotiable instruments held for collection and lease, utility, workers’
compensation and performance and other similar deposits and prepaid expenses
made in the ordinary course of business;

(h)           Investments described in Schedule 6.6;
and

(i)            the deposit by the Company of
$1.0 million in the Trustee Reserve Fund as contemplated pursuant to
Section 12.9 of the Senior Secured Notes Indenture.

Notwithstanding the foregoing, in no event shall any
Credit Party make, or permit any of its Subsidiaries to make, any Investment
which results in or facilitates in any manner any Restricted Junior Payment not
otherwise permitted under the terms of Section 6.4.  Notwithstanding the foregoing, no Investment
otherwise permitted by clause (d) shall be permitted if any Default or
Event of Default has occurred and is continuing or would result therefrom.

6.7          Financial Covenants.

(a)           Minimum Broadcast Cash Flow.  Borrowers shall not permit the cumulative
amount of Broadcast Cash Flow from December 1, 2006 through the end of each
fiscal month thereafter to be less than 85% of the amount for such calendar
month set forth in the Financial Plan.

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(b)           Maximum Corporate Expense.  Borrowers shall not permit the cumulative
amount of Corporate Expenses from December 1, 2006 through the end of each
fiscal month thereafter to exceed 115% of the amount for such calendar month
set forth in the Financial Plan.

6.8          Fundamental
Changes; Disposition of Assets; Acquisitions. 
No Credit Party shall, nor shall it permit any of its
Subsidiaries to, enter into any transaction of merger or consolidation, or
liquidate, wind up or dissolve itself (or suffer any liquidation or
dissolution), create or acquire any Subsidiary, or convey, sell, lease or sub
lease (as lessor or sublessor), exchange, transfer or otherwise dispose of, in
one transaction or a series of transactions, all or any part of its business,
assets or property of any kind whatsoever, whether real, personal or mixed and
whether tangible or intangible, whether now owned or hereafter acquired, or
acquire by purchase or otherwise (other than purchases or other acquisitions of
inventory, materials and equipment and Capital Expenditures in the ordinary
course of business) the business, property or fixed assets of, or stock or
other evidence of beneficial ownership of, any Person or any division or line
of business or other business unit of any Person, except:

(a)           any Subsidiary of Company may be
merged with or into Company or any other Credit Party, or be liquidated, wound
up or dissolved, or all or any part of its business, property or assets may be
conveyed, sold, leased, transferred or otherwise disposed of, in one
transaction or a series of transactions, to Company or any other Credit Party; provided,
in the case of such a merger, Company or such Credit Party, as applicable,
shall be the continuing or surviving Person;

(b)           sales or other dispositions of assets
(i) that are sales or leases of inventory in the ordinary course of
business or (ii) made to Company or any Credit Party;

(c)           disposals of obsolete or worn out
property, the proceeds of which are less than $100,000 and when aggregated with
all other dispositions made pursuant to this clause (d) from the Closing
Date to the date of determination are less than $250,000; provided that
the consideration received for such assets shall be in an amount at least equal
to the fair market value thereof (determined in good faith by the board of
directors of Company (or similar governing body));

(d)           sale or disposal of that certain real
property located at 2633 West State Boulevard, Fort Wayne, IN 46808, provided
that the consideration received shall be in an amount at least equal to the
fair market value thereof; and

(e)           Investments made in accordance with
Section 6.6.

6.9          Disposal of
Subsidiary Interests.  No
Credit Party shall, nor shall it permit any of its Subsidiaries to,
(a) directly or indirectly sell, assign, pledge or otherwise encumber or
dispose of any Capital Stock of any of its Subsidiaries, except to qualify
directors if required by applicable law; or (b) directly or indirectly to
sell, assign, pledge or otherwise encumber or dispose of any Capital Stock of
any of its Subsidiaries, except to another Credit Party (subject to the
restrictions on such disposition otherwise imposed hereunder), or to qualify
directors if required by applicable law.

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6.10        Sales and Lease
Backs.  No Credit Party shall,
nor shall it permit any of its Subsidiaries to, directly or indirectly, become
or remain liable as lessee or as a guarantor or other surety with respect to
any lease of any property (whether real, personal or mixed), whether now owned
or hereafter acquired, which such Credit Party (a) has sold or transferred
or is to sell or to transfer to any other Person (other than Company or any
other Credit Party) or (b) intends to use for substantially the same
purpose as any other property which has been or is to be sold or transferred by
such Credit Party to any Person (other than Company or any other Credit Party)
in connection with such lease.

6.11        Transactions
with Shareholders and Affiliates.  No
Credit Party shall, nor shall it permit any of its Subsidiaries to, directly or
indirectly, enter into or permit to exist any transaction (including the
purchase, sale, lease or exchange of any property or the rendering of any
service) with any holder of five percent (5%) or more of any class of
Capital Stock of Company or any of its Subsidiaries or with any Affiliate of
Company or of any such holder, in each case, without the prior written consent
of the Administrative Agent; provided, the foregoing restriction shall
not apply to (a) any transaction between Company and any other Credit
Party; (b) reasonable and customary fees paid to members of the board of
directors (or similar governing body) of Company and its Subsidiaries;
(c) compensation or other employment-related arrangements existing on the
date hereof with officers and other employees of Company and its Subsidiaries
entered into in the ordinary course of business; (d) transactions described
in Schedule 6.11; (e) any transaction between any Credit Party and any
Non-Debtor Subsidiary provided that such transaction is on terms at least as
favorable to such Credit Party as would be obtained in a comparable arm’s-length
transaction with a person that is not an Affiliate and if such transaction
involves a transfer from a Credit Party to a Non-Debtor Subsidiary, the
aggregate fair market value of the assets or other consideration being
transferred does not exceed $1,000,000 for all such transactions; and (f) any
transaction permitted pursuant to Sections 6.1(b) and 6.6(d) hereof.

6.12        Conduct of
Business.  From and after the
Closing Date, no Credit Party shall, nor shall it permit any of its
Subsidiaries to, (i) engage in any business other than the businesses engaged
in by such Credit Party or Subsidiary on the Closing Date and (ii) without the
prior consent of the Administrative Agent (such consent not to be unreasonably
withheld and a response to be provided by the Administrative Agent no later
than three Business Days following receipt by the Administrative Agent of a
copy of such Material Contract), enter into any Material Contract.

6.13        Excess Cash.  At any time that any Loans are
outstanding, no Credit Party shall, nor shall it permit any of its Subsidiaries
to, accumulate or maintain cash in bank accounts (in excess of checks
outstanding against such accounts and amounts necessary to meet minimum balance
requirements), cash equivalents or Permitted Investments of the Borrowers and
their Subsidiaries in an aggregate amount in excess of $500,000 (excluding
fiduciary accounts of the Company or any of its Subsidiaries and deposit
accounts exclusively used for payroll, payroll taxes and other employee wage
and benefit payments to or for the benefit of the Borrowers or any of their
Subsidiaries’ salaried employees) for a period of more than three consecutive
Business Days.

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6.14        Amendments or
Waivers of Certain Related Agreements.  No
Credit Party shall, nor shall it permit any of its Subsidiaries to, agree to
any amendment, restatement, termination, supplement or other modification to,
or waiver of, any of its rights under any Related Agreement after the Closing
Date, without obtaining the prior written consent of Administrative Agent and
Requisite Lenders.  Notwithstanding the
foregoing, without obtaining the prior written consent of Administrative Agent
or any Lender, the Credit Parties may enter into any amendment or modification
of a Related Agreement that is of a purely technical nature and not adverse to
the Company, its Subsidiaries or the Lenders. 
The Company shall not provide any consent to the Malara Entities with
respect to amendments to the Malara Waiver Documents without obtaining the
prior written consent of Administrative Agent.

6.15        Bankruptcy Court Orders; Administrative Priority; Lien
Priority; Payment of Claims.

No Credit Party
shall nor shall it permit any of its Subsidiaries to:

(a)           at any time, seek, consent to or
suffer to exist any reversal, modification, amendment, stay or vacation of any
of the Bankruptcy Court Orders, except for modifications and amendments agreed
to by the Agents and the Requisite Lenders;

(b)           at any time, suffer to exist a
priority for any administrative expense or unsecured claim against any of the
Borrowers (now existing or hereafter arising) of any kind or nature whatsoever,
including without limitation any administrative expenses of the kind specified
in, or arising or ordered under, Sections 105, 326, 328, 330, 331, 503(b),
506(c), 507(a), 507(b), 546(c), 726 and 1114 of the Bankruptcy Code equal or
superior to the priority of the Agent and the Lenders in respect of the
Obligations, except as provided in Section 10.4 and for the Carve-Out
Expenses having priority of payment over the Obligations to the extent set
forth in clause ”first” of the definition of the term “Agreed
Administrative Expense Priorities”;

(c)           at any time, suffer to exist any Lien
on the Collateral having a priority equal or superior to the Lien in favor of
the Collateral Agent for the benefit of the Secured Parties in respect of the
Collateral (other than Permitted Priority Liens); and

(d)           prior to the date on which the
Obligations have been indefeasibly paid in full in cash, the Borrowers shall
not pay any administrative expense claims except (A) (1) the Priority
Professional Expenses then due and payable and (2) other payments then due
and payable to the extent set forth in sub-clause (i) of clause ”first”
of the definition of the term “Agreed Administrative Expense Priorities”,
(B) the Obligations then due and payable hereunder, and (C) Carve-Out
Expenses (other than Priority Professional Expenses) and other administrative
expense and professional claims then due and payable in the ordinary course of
the business of the Borrowers or their respective Chapter 11 Cases, in
each case, to the extent and having the order of priority set forth in the
definition of the term “Agreed Administrative

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Expense Priorities” provided such expense and
professional claims shall not include any claims for activities incurred in
connection with the activities described in paragraph 25(b) of the Interim
Bankruptcy Court Order.  Notwithstanding
the order of priority set forth in the definition of the term “Agreed
Administrative Expense Priorities”, the Borrowers may pay the administrative
expense and professional claims described in clauses (A) and (C) of this
Section 6.15(d) in the ordinary course of the business of the Borrowers or
their respective Chapter 11 Cases so long as no Event of Default under
this Agreement shall have occurred and be continuing either before or after
giving effect to such payment.

6.16        Fiscal Year.  No Credit Party shall, nor shall
it permit any of its Subsidiaries to change its Fiscal Year end from
December 31st.

6.17        Deposit Accounts.  No
Credit Party shall, nor shall it permit any of its Subsidiaries to, establish
or maintain a Deposit Account that is not in compliance with the requirements
of Section 5.13 or deposit proceeds in a Deposit Account which is not subject
to the requirements of Section 5.13.

6.18        Amendments to
Certain Agreements.  No Credit
Party shall nor shall it permit any of its Subsidiaries to, (a) amend or
permit any amendments to any Person’s Organizational Documents; (b) amend
or permit any amendments to, or terminate or waive any provision of, any
Material Contract if such amendment, termination, or waiver would be adverse to
the rights and remedies of the Administrative Agent or the Lenders under the
Credit Documents or would be materially adverse to the Company and its
Subsidiaries taken as a whole; or (c) amend or permit any amendments or
modifications of any agreement or instrument evidencing or governing the terms
of the Preferred Stock.

6.19        Prepayments of
Certain Indebtedness.  No
Credit Party shall, nor shall it permit any of its Subsidiaries to, directly or
indirectly, voluntarily purchase, redeem, defease or prepay any principal of,
premium, if any, interest or other amount payable in respect of any
Indebtedness incurred prior to the Filing Date other than intercompany
Indebtedness permitted by this Agreement or, in the case of the Credit Parties,
the Prepetition Obligations to the extent contemplated by the Bankruptcy Court
Orders or any payments approved in the ‘first-day’ orders to the extent
provided therein.

6.20        Issuance of
Capital Stock.  No Credit
Party shall, nor shall it permit any of its Subsidiaries to, issue or sell or
enter into any agreement or arrangement for the issuance and sale of any shares
of its Capital Stock, any securities convertible into or exchangeable for its
Capital Stock, or any warrants, options or other rights for the purchase or
acquisition of shares of its Capital Stock, except the issuance of any common
stock by a Credit Party to the Company.

6.21        Compromise of
Accounts Receivable.  No
Credit Party shall, nor shall it permit any of its Subsidiaries to, compromise
or adjust any Account Receivable (or extend the time of payment thereof) or
grant any discounts, allowances or credits except in the ordinary course of
business and consistent with past practice.

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6.22        Intercompany Transfers

No Credit Party shall transfer any amount to a
Subsidiary of the Company unless such transfer is evidenced by a demand
promissory note issued by such Subsidiary in form and substance satisfactory to
the Administrative Agent and all such notes are subject to a First Priority
Lien securing the Obligations.  Each such
note shall provide that principal thereof is mandatorily prepayable on a daily
basis from amounts transferred from the accounts of the Subsidiary that is the
obligor of such note to the Company Account pursuant to Section 5.13
hereof.  The aggregate outstanding
principal amount of notes issued by Non-Debtor Subsidiaries pursuant to this
Section 6.22 shall not at any time exceed $10,000,000 and the portion of such
outstanding principal amount attributable to transfers of proceeds of the Loans
to Non-Debtor Subsidiaries shall not at any time exceed $5,000,000.

SECTION 7.                                                         [RESERVED]

SECTION 8.                                                         EVENTS OF DEFAULT

If any one or more of the
following conditions or events shall occur:

(a)           Failure to Make Payments When Due.  Any Credit Party shall fail to pay any
principal of or interest on any Loan, or any fee, indemnity or other amount
payable under this Agreement or any other Credit Document when due (whether by
scheduled maturity, required prepayment, acceleration, demand or otherwise); or

(b)           Breach of Certain Covenants.  Failure of any Credit Party to perform or
comply with any term or condition contained in Section 5.1,
Section 5.2, Section 5.10, Section 5.13 (and such default shall not
have been remedied or waived within two (2) Business Days), Section 5.16 or
Section 6; or

(c)           Breach of Representations, etc.  Any representation, warranty, certification
or other statement made or deemed made by any Credit Party in any Credit
Document or Related Agreement or in any statement or certificate at any time
given by any Credit Party or any of its Subsidiaries in writing pursuant hereto
or thereto or in connection herewith or therewith shall be false in any
material respect as of the date made or deemed made; or

(d)           Default under or Amendment of
Existing Malara Facility.  Any of the
following shall have occurred: (i) an “Event of Default” under any of Sections
7.1, 7.3, 7.6, 7.7 or 7.9 of the Existing Malara Facility (without giving
effect to any waiver or consent by the lenders thereunder); (ii) the
Indebtedness under the Existing Malara Facility becomes due prior to its stated
maturity date; (iii) any amendment or modification of the Existing Malara
Facility shall be made without the prior written consent of the Administrative
Agent; or (iv) any Malara Waiver Document is terminated or otherwise no longer
in full force and effect; or

(e)           Other Defaults Under Credit
Documents.  Any Credit Party shall default
in the performance of or compliance with any term contained herein or any of
the other Credit Documents (including the Bankruptcy Court Orders), other than
any such term referred to in any other Section of this Section 8.1, and
such default shall not have been remedied or waived within ten (10) days;
or

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(f)            Judgments and Attachments.  Except for matters subject to the automatic
stay, one or more money judgments, writs or warrants of attachment or similar
process involving in the aggregate at any time an amount in excess of
$2,000,000 shall be entered or filed against the Company or any of its
Subsidiaries or any of their respective assets and either (i) enforcement
proceedings shall have been commenced by any creditor upon any such judgment, order,
award or settlement, or (ii) there shall be a period of
20 consecutive days after entry thereof during which a stay of enforcement
of any such judgment, order, award or settlement, by reason of a pending appeal
or otherwise, shall not be in effect; or

(g)           Budget.  The making of any payment or disbursement
that is not set forth as a category of line item on the Budget; or

(h)           Employee Benefit Plans.  (i) There shall occur one or more ERISA
Events which individually or in the aggregate results in or might reasonably be
expected to result in liability of Company, any of its Subsidiaries or any of
their respective ERISA Affiliates in excess of $2,000,000 during the term
hereof; or (ii) there exists any fact or circumstance that reasonably
could be expected to result in the imposition of a Lien or security interest
under Section 401(a)(29) or 412(n) of the Internal Revenue Code or under
ERISA; or

(i)            Change of Control.  A Change of Control shall occur or a material
disruption or change unacceptable to the Requisite Lenders shall have occurred
in the senior management of the Company or any of its Subsidiaries; or

(j)            Guaranties, Collateral Documents
and other Credit Documents.  At any
time after the execution and delivery thereof, (i) any Guaranty for any
reason, other than the satisfaction in full of all Obligations, shall cease to
be in full force and effect (other than in accordance with its terms) or shall
be declared to be null and void or any Guarantor shall repudiate its
obligations thereunder, (ii) this Agreement or any Collateral Document
ceases to be in full force and effect (other than by reason of a release of
Collateral in accordance with the terms hereof or thereof or the satisfaction
in full of the Obligations in accordance with the terms hereof) or shall be
declared null and void, or Collateral Agent shall not have or shall cease to
have a valid and perfected first priority Lien in any Collateral purported to
be covered by the Collateral Documents or any Bankruptcy Court Order, or
(iii) any Credit Party or any Subsidiary of a Credit Party shall contest
the validity or enforceability of any Credit Document or any Bankruptcy Court
Order or deny in writing that it has any further liability, including with
respect to future advances by Lenders, under any Credit Document to which it is
a party or any Bankruptcy Court Order; or

(k)           Appointment of Trustee or Examiner.  An order with respect to any of the
Chapter 11 Cases shall be entered by the Bankruptcy Court appointing, or
any Credit Party or any Subsidiary of a Credit Party shall file an application
for an order with respect to any Chapter 11 Case seeking the appointment
of, (i) a trustee under Section 1104, or (ii) an examiner with
enlarged powers relating to the operation of the business (powers beyond those
set forth in Section 1106(a)(3) and (4) of the Bankruptcy Code) under
Section 1106(b) of the Bankruptcy Code; or

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(l)            Conversion to Chapter 7.  An order with respect to any of the
Chapter 11 Cases shall be entered by the Bankruptcy Court converting such
Chapter 11 Case to a Chapter 7 case; or

(m)          Plan.  An application shall be made by any Credit
Party or any Subsidiary of a Credit Party for an order by the Bankruptcy Court,
or an order shall be entered by the Bankruptcy Court, confirming a plan of
reorganization in any of the Chapter 11 Cases that is not satisfactory to the
Administrative Agent in all material respects; or

(n)           Dismissal of Chapter 11.  An order shall be entered by the Bankruptcy
Court dismissing any of the Chapter 11 Cases which does not contain a
provision for termination of the total Commitment, and payment in full in cash
of all Obligations of the Borrowers hereunder and under the other Credit
Documents upon entry thereof; or

(o)           Order with respect to
Chapter 11.  An order with
respect to any of the Chapter 11 Cases shall be entered by the Bankruptcy
Court without the express prior written consent of the Agents and the Requisite
Lenders, (i) to revoke, reverse, stay, modify, supplement or amend any of
the Bankruptcy Court Orders, (ii) to permit any administrative expense or
any claim (now existing or hereafter arising, of any kind or nature whatsoever)
to have administrative priority as to the Borrowers equal or superior to the
priority of the Agents and the Lenders in respect of the Obligations, except
for allowed administrative expenses to the extent set forth in clause ”first”
of the definition of the term “Agreed Administrative Expense Priorities”, or
(iii) to grant or permit the grant of a Lien on the Collateral (other than
Permitted Liens); or

(p)           Application for Order.  An application for any of the orders
described in clauses (k) through (o) above shall be made by a Person
other than the Borrowers and such application is not contested by the Borrowers
in good faith or the relief requested is not withdrawn, dismissed or denied
within 45 days after filing or any Person obtains a final order under § 506(c)
of the Bankruptcy Code against the Agents or obtains a final order adverse to
the Agents or the Lenders or any of their respective rights and remedies under
the Credit Documents or in the Collateral; or

(q)           Relief from Automatic Stay.  An order shall be entered by the Bankruptcy
Court that is not stayed granting relief from the automatic stay to one or more
creditors of the Borrowers with respect to any claim(s) in an amount equal to
or exceeding $750,000 in the aggregate for all such claims since the date
hereof; or

(r)            Material Adverse Effect.  An event or development occurs which could
reasonably be expected to have a Material Adverse Effect; or

(s)           Material Adverse Deviation.  A Material Adverse Deviation shall have
occurred; or

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(t)            Liens.  (i) The Company or any of its
Subsidiaries shall attempt to invalidate, reduce or otherwise impair the Liens
or security interests of any Agent and/or the Lenders, claims or rights against
such Person or to subject any Collateral to assessment pursuant to Section
506(c) of the Bankruptcy Code, (ii) any Lien or security interest created by
this Agreement or the Bankruptcy Court Orders 
with respect to Collateral having a fair market value in excess of
$750,000 shall, for any reason, cease to be valid or (iii) any action is
commenced by the Company or any of its Subsidiaries which contests the
validity, perfection or enforceability of any of the Liens and security
interests of any Agent and/or the Lenders created by any of the Bankruptcy
Court Orders, this Agreement, any Mortgage, any Security Agreement, and any
Pledge Agreement or any other security agreement; or

(u)           Liquidation.  The determination of the Company or any of
its Subsidiaries, whether by vote of such Person’s board of directors or
otherwise, to suspend the operation of such Person’s business in the ordinary
course, liquidate all or substantially all of such Person’s assets, or to
conduct any sales of all or substantially all of such Person’s assets, or the
filing of a motion or other application in the Chapter 11 Cases, seeking
authority to do any of the foregoing; or

(v)           Licenses; Permits; FCC Licenses.  (i) The loss, suspension or revocation of, or
failure to renew, any license or permit now held or hereafter acquired by the
Company or any of its Subsidiaries, if such loss, suspension, revocation or
failure to renew could reasonably be expected to have a Material Adverse
Effect, or (ii) any FCC License owned or held by the Company or any of its
Subsidiaries which is a main station license or a license otherwise material to
the lawful ownership, lease, control, use, operation, management or maintenance
of any broadcast station or other broadcasting property of the Company or any
of its Subsidiaries shall be cancelled, terminated, rescinded, revoked,
suspended, impaired, otherwise finally denied renewal, or otherwise modified in
any material adverse respect, or shall be renewed on terms that materially and
adversely affect the economic or commercial value or usefulness thereof; or any
such FCC License shall no longer be in full force and effect; or the grant of
any such FCC License shall have been stayed, vacated or reversed, or modified
in any material adverse respect, by judicial or administrative proceedings; or
any administrative law judge of the FCC shall have issued an initial decision
in any non-comparative license renewal, license revocation or any comparative
(multiple applicant) proceeding to the effect that any such FCC License should
be revoked or not be renewed; or any other proceeding shall have been
instituted by or shall have been commenced before any court, the FCC or any
other regulatory body that more likely than not will result in such
cancellation, termination, rescission, revocation, impairment or suspension of
any such FCC License or result in any materially adverse modification of any
such FCC License; or the Company or any of its Subsidiaries shall no longer be
the holder of an FCC License constituting a television translator license
material to the lawful ownership, lease, control, use, operation, management or
maintenance of any broadcast station or other broadcasting property of the
Company or any of its Subsidiaries or a main station license for the stations
as a result of any decision issued by the FCC; or

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(w)          Final Bankruptcy Court Order.  The entry of the Final Bankruptcy Court
Order, in form and substance satisfactory to the Administrative Agent, shall
not have occurred by the date that is 45 days after the date of entry of
the Interim Bankruptcy Court Order; or

(x)            Reorganization Plan.  The withdrawal of the Reorganization Plan; or

(y)           Disclosure Statement.  The failure of the Credit Parties to obtain
an order of the Bankruptcy Court approving the disclosure statement with
respect to the Reorganization Plan, within 45 days of the filing of the
Reorganization Plan; or

(z)            Order of the Bankruptcy Court.  The failure of the Credit Parties to obtain
an order of the Bankruptcy Court confirming the Reorganization Plan under
Section 1129 of the Bankruptcy Code, within 60 days of the approval of the
disclosure statement; or

(aa)         Substantial Consummation of
Reorganization Plan.  The failure of
the effective date or the substantial consummation of the Reorganization Plan
to have occurred within 20 days of the date of the entry of the confirmation
order; provided that solely in the event such failure is caused by a
delay in obtaining the necessary approvals from the FCC, such 20-day period
shall be extended to the earlier of (i) 10 Business Days after receipt of the
necessary approvals from the FCC and (ii) July 1, 2007; or

(bb)         Network Affiliation Agreements.  The termination, or material impairment of
the rights of the Company or any of its Subsidiaries under any Network
Affiliation Agreement; or

(cc)         Prepetition Payments.  Except as permitted by the Bankruptcy Court
Orders or as otherwise agreed in writing by the Administrative Agent, the
Company or any of its Subsidiaries shall make any Prepetition Payment other
than (i) Prepetition Payments authorized by the Bankruptcy Court in accordance
with ‘first day’ orders and (ii) as expressly provided in Exhibit C to the
Restructuring Support Agreement provided that Silver Point Consent (as defined
in the Restructuring Support Agreement) has been given in accordance with the
terms of the Restructuring Support Agreement; or

(dd)         Committees.  Unless none of the Credit Parties have prior
notice of such appointment, the failure of the Credit Parties to oppose the
appointment of any official committee other than an official unsecured
creditors’ committee in the Chapter 11 Cases; provided that if none of
the Credit Parties have prior notice of such appointment, it shall be an Event
of Default if the Credit Parties do not promptly file and diligently pursue an
objection to such appointment or motion for disbandment of such committee, in
either case in form and substance satisfactory to the Administrative Agent; or

(ee)         Insolvency Event.  An Insolvency Event shall occur with respect
to any Non-Debtor Subsidiary and such Subsidiary shall fail to become a
Borrower hereunder and subject to the Reorganization Plan, in each case, in
accordance with Section 5.12 within 5 Business Days of such Insolvency Event;

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THEN, and in
any such event, the Collateral Agent may, and shall at the request of the
Requisite Lenders, by notice to the Administrative Borrower and subject to the
terms of the Bankruptcy Court Orders, (i) terminate or reduce all Commitments,
whereupon all Commitments shall immediately be so terminated or reduced, (ii)
declare all or any portion of the Loans and Obligations then outstanding to be
due and payable, whereupon all or such portion of the aggregate principal of
all Loans and Obligations, all accrued and unpaid interest thereon, all fees
and all other amounts payable under this Agreement and the other Credit
Documents shall become due and payable immediately, without further order of,
or application to, the Bankruptcy Court (except as otherwise expressly provided
in the Bankruptcy Court Orders), presentment, demand, protest or further notice
of any kind, all of which are hereby expressly waived by each Credit Party
and/or (iii) exercise any and all of its other rights and remedies under
applicable law (including, but not limited to, the Bankruptcy Code and the
Uniform Commercial Code), hereunder and under the other Credit Documents.

SECTION 9.                                                         AGENTS

9.1          Appointment of
Agents.  Silver Point is
hereby appointed Administrative Agent and Collateral Agent hereunder and under
the other Credit Documents and each Lender hereby authorizes Silver Point, in
such capacity, to act as its agent in accordance with the terms hereof and the
other Credit Documents.  Each Agent
hereby agrees to act upon the express conditions contained herein and the other
Credit Documents, as applicable.  The
provisions of this Section 9 are solely for the benefit of Agents and
Lenders and no Credit Party or any Subsidiary thereof shall have any rights as
a third party beneficiary of any of the provisions thereof.  In performing its functions and duties
hereunder, each Agent shall act solely as an agent of Lenders and does not
assume and shall not be deemed to have assumed any obligation towards or
relationship of agency or trust with or for the Company or any of its
Subsidiaries.

9.2          Powers and
Duties.  Each Lender
irrevocably authorizes each Agent to take such action on such Lender’s behalf
and to exercise such powers, rights and remedies and perform such duties
hereunder and under the other Credit Documents as are specifically delegated or
granted to such Agent by the terms hereof and thereof, together with such
actions, powers, rights and remedies as are reasonably incidental thereto.  Each Agent shall have only those duties and
responsibilities that are expressly specified herein and the other Credit
Documents.  Each Agent may exercise such
powers, rights and remedies and perform such duties by or through its agents or
employees.  No Agent shall have or be
deemed to have, by reason hereof or any of the other Credit Documents, a
fiduciary relationship in respect of any Lender; and nothing herein or any of
the other Credit Documents, expressed or implied, is intended to or shall be so
construed as to impose upon any Agent any obligations in respect hereof or any
of the other Credit Documents except as expressly set forth herein or therein.

9.3          General Immunity.

(a)           No Responsibility for Certain
Matters.  No Agent shall be
responsible to any Lender for the execution, effectiveness, genuineness,
validity, enforceability, collectability or sufficiency hereof or any other
Credit Document or for any representations, warranties,

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recitals or statements made herein or therein or made
in any written or oral statements or in any financial or other statements,
instruments, reports or certificates or any other documents furnished or made
by any Agent to Lenders or by or on behalf of any Credit Party to any Agent or
any Lender in connection with the Credit Documents and the transactions
contemplated thereby or for the financial condition or business affairs of any
Credit Party or any other Person liable for the payment of any Obligations, nor
shall any Agent be required to ascertain or inquire as to the performance or
observance of any of the terms, conditions, provisions, covenants or agreements
contained in any of the Credit Documents or as to the use of the proceeds of
the Loans or as to the existence or possible existence of any Event of Default
or Default or to make any disclosures with respect to the foregoing.  Anything contained herein to the contrary
notwithstanding, Administrative Agent shall not have any liability arising from
confirmations of the amount of outstanding Loans or the component amounts thereof.

(b)           Exculpatory Provisions.  No Agent nor any of its officers, partners,
directors, employees or agents shall be liable to Lenders for any action taken
or omitted by any Agent under or in connection with any of the Credit Documents
except to the extent caused by such Agent’s gross negligence or willful
misconduct as determined by a court of competent jurisdiction in a final,
nonappealable order.  Each Agent shall be
entitled to refrain from any act or the taking of any action (including the
failure to take an action) in connection herewith or any of the other Credit
Documents or from the exercise of any power, discretion or authority vested in
it hereunder or thereunder unless and until such Agent shall have received
instructions in respect thereof from Requisite Lenders (or such other Lenders
as may be required to give such instructions under Section 12.5) or, in
the case of the Collateral Agent, in accordance with the any applicable
Collateral Document, and, upon receipt of such instructions from Requisite
Lenders (or such other Lenders, as the case may be), or in accordance with the
applicable Collateral Document, as the case may be, such Agent shall be
entitled to act or (where so instructed) refrain from acting, or to exercise
such power, discretion or authority, in accordance with such instructions.  Without prejudice to the generality of the
foregoing, (i) each Agent shall be entitled to rely, and shall be fully
protected in relying, upon any communication, instrument or document believed
by it to be genuine and correct and to have been signed or sent by the proper
Person or Persons, and shall be entitled to rely and shall be protected and
free from liability in relying on opinions and judgments of attorneys (who may
be attorneys for the Credit Parties), accountants, experts and other professional
advisors selected by it; and (ii) no Lender shall have any right of action
whatsoever against any Agent as a result of such Agent acting or (where so
instructed) refraining from acting hereunder or any of the other Credit
Documents in accordance with the instructions of Requisite Lenders (or such
other Lenders as may be required to give such instructions under
Section 12.5) or, in the case of the Collateral Agent, in accordance with
the applicable Collateral Document.

(c)           Notice of Default.  The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Default or Event of
Default, except with respect to Events of Default in the payment of principal,
interest and fees required to be paid to Administrative Agent for the account
of the Lenders, unless Administrative Agent shall have received written notice
from a Lender or the Borrowers referring to this Agreement, describing

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such Default or Event of Default and stating that such
notice is a “notice of default.”  The
Administrative Agent will notify the Lenders of its receipt of any such
notice.  The Administrative Agent shall
take such action with respect to any such Default or Event of Default as may be
directed by the Requisite Lenders in accordance with Section 8; provided,
however, that unless and until Administrative Agent has received any
such direction, Administrative Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such Default
or Event of Default as it shall deem advisable or in the best interest of the
Lenders.

9.4          Agents
Entitled to Act as Lender. 
The agency hereby created shall in no way impair or affect any of the
rights and powers of, or impose any duties or obligations upon, any Agent in its
individual capacity as a Lender hereunder. 
With respect to its participation in the Loans, each Agent shall have
the same rights and powers hereunder as any other Lender and may exercise the
same as if it were not performing the duties and functions delegated to it
hereunder, and the term “Lender” shall, unless the context clearly otherwise
indicates, include each Agent in its individual capacity.  Any Agent and its Affiliates may accept
deposits from, lend money to, own securities of, and generally engage in any
kind of banking, trust, financial advisory or other business with the Borrowers
or any of their Affiliates as if it were not performing the duties specified
herein, and may accept fees and other consideration from Borrowers for services
in connection herewith and otherwise without having to account for the same to
Lenders.

9.5          Lenders’ Representations, Warranties and
Acknowledgment.

(a)           Each Lender represents and warrants
that it has made its own independent investigation of the financial condition
and affairs of Company and its Subsidiaries, without reliance upon any Agent or
any other Lender and based on such documents and information as it has deemed
appropriate, in connection with Loan Extensions hereunder and that it has made
and shall continue to make its own appraisal of the creditworthiness of Company
and its Subsidiaries.  No Agent shall
have any duty or responsibility, either initially or on a continuing basis, to
make any such investigation or any such appraisal on behalf of Lenders or to
provide any Lender with any credit or other information with respect thereto,
whether coming into its possession before the making of the Loans or at any
time or times thereafter, and no Agent shall have any responsibility with
respect to the accuracy of or the completeness of any information provided to
Lenders.

(b)           Each Lender, by delivering its
signature page to this Agreement shall be deemed to have acknowledged receipt
of, and consented to and approved, each Credit Document and each other document
required to be approved by any Agent, Requisite Lenders or Lenders, as
applicable on the Closing Date.

9.6          Right to
Indemnity.  Each Lender, in
proportion to its Pro Rata Share, severally agrees to indemnify each Agent,
their Affiliates and their respective officers, partners, directors, trustees,
employees, representatives and agents of each Agent (each, an “Indemnitee Agent Party”), to the extent that such Indemnitee
Agent Party shall not have been reimbursed by any Credit Party, for and against
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses (including counsel fees and disbursements) or

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disbursements of any kind
or nature whatsoever which may be imposed on, incurred by or asserted against
such Indemnitee Agent Party in exercising its powers, rights and remedies or
performing its duties hereunder or under the other Credit Documents or
otherwise in its capacity as such Indemnitee Agent Party in any way relating to
or arising out of this Agreement or the other Credit Documents, IN ALL CASES, WHETHER OR NOT CAUSED BY
OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY, OR SOLE NEGLIGENCE OF SUCH AGENT; provided, no
Lender shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from such Indemnitee Agent Party’s gross negligence or
willful misconduct as determined by a court of competent jurisdiction in a
final, nonappealable order.  If any
indemnity furnished to any Indemnitee Agent Party for any purpose shall, in the
opinion of such Indemnitee Agent Party, be insufficient or become impaired,
such Indemnitee Agent Party may call for additional indemnity and cease, or not
commence, to do the acts indemnified against until such additional indemnity is
furnished; provided, in no event shall this sentence require any Lender
to indemnify any Indemnitee Agent Party against any liability, obligation,
loss, damage, penalty, action, judgment, suit, cost, expense or disbursement in
excess of such Lender’s Pro Rata Share thereof; and provided  further,
this sentence shall not be deemed to require any Lender to indemnify any
Indemnitee Agent Party against any liability, obligation, loss, damage, penalty,
action, judgment, suit, cost, expense or disbursement described in the proviso
in the immediately preceding sentence.

9.7          Successor Administrative Agent.

(a)           Administrative Agent may resign at
any time by giving thirty (30) days’ prior written notice thereof to
Lenders and Administrative Borrower. 
Upon any such notice of resignation, Requisite Lenders shall have the
right, upon five Business Days’ notice to Administrative Borrower, to appoint a
successor Administrative Agent.  If no
successor shall have been so appointed by the Requisite Lenders and shall have
accepted such appointment within thirty (30) days after the retiring
Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may, on behalf of the Lenders, appoint a successor
Administrative Agent from among the Lenders. 
Upon the acceptance of any appointment as Administrative Agent hereunder
by a successor Administrative Agent, that successor Administrative Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Administrative Agent and the retiring Administrative
Agent shall promptly (i) transfer to such successor Administrative Agent
all sums, Securities and other items of Collateral held by it, together with
all records and other documents necessary or appropriate in connection with the
performance of the duties of the successor Administrative Agent under the
Credit Documents, and (ii) execute and deliver to such successor
Administrative Agent such amendments to financing statements, and take such
other actions, as may be necessary or appropriate in connection with the
assignment to such successor Administrative Agent of the security interests
created under the Collateral Documents, whereupon such retiring Administrative
Agent shall be discharged from its duties and obligations hereunder.  After any retiring Administrative Agent’s
resignation hereunder as Administrative Agent, the provisions of this
Section 9 shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was Administrative Agent hereunder.

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(b)           Notwithstanding anything herein to
the contrary, Administrative Agent may assign its rights and duties as
Administrative Agent hereunder to an Affiliate of Silver Point without the
prior written consent of, or prior written notice to, Administrative Borrower
or the Lenders; provided that Administrative Borrower and the Lenders
may deem and treat such assigning Administrative Agent as Administrative Agent
for all purposes hereof, unless and until such assigning Administrative Agent
provides written notice to Administrative Borrower and the Lenders of such
assignment.  Upon such assignment such
Affiliate shall succeed to and become vested with all rights, powers, privileges
and duties as Administrative Agent hereunder and under the other Credit
Documents.

(c)           Delegation of Duties.  Administrative Agent may perform any and all
of its duties and exercise its rights and powers under this Agreement or under
any other Credit Document by or through any one or more sub-agents appointed by
Administrative Agent.  Administrative
Agent and any such sub-agent may perform any and all of its duties and exercise
its rights and powers by or through their respective Affiliates.  The exculpatory, indemnification and other
provisions of this Section 9.3 and Section 9.6 shall apply to any the
Affiliates of Administrative 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 Administrative Agent.  All of the rights, benefits and privileges
(including the exculpatory and indemnification provisions) of this
Section 9.3 and of Section 9.6 shall apply to any such sub-agent and
to the Affiliates of any such sub-agent, and shall apply to their respective
activities as sub-agent as if such sub-agent and Affiliates were named
herein.  Notwithstanding anything herein
to the contrary, with respect to each sub-agent appointed by Administrative
Agent, (i) such sub-agent shall be a third party beneficiary under this
Agreement with respect to all such rights, benefits and privileges (including
exculpatory and rights to indemnification) and shall have all of the rights,
benefits and privileges of a third party beneficiary, including an independent
right of action to enforce such rights, benefits and privileges (including
exculpatory rights and rights to indemnification) directly, without the consent
or joinder of any other Person, against any or all of the Credit Parties and
the Lenders, (ii) such rights, benefits and privileges (including
exculpatory rights and rights to indemnification) shall not be modified or
amended without the consent of such sub-agent, and (iii) such sub-agent
shall only have obligations to Administrative Agent and not to any Credit
Party, Lender or any other Person and no Credit Party, Lender or any other
Person shall have the rights, directly or indirectly, as a third party
beneficiary or otherwise, against such sub-agent.

9.8          Collateral Documents and Guaranty.

(a)           Agents under Collateral Documents
and Guaranty.  Each Lender hereby
further irrevocably authorizes Administrative Agent or Collateral Agent, as
applicable, on behalf of and for the benefit of Lenders, to be the agent for
and representative of Lenders with respect to any Guaranty, the Collateral and
the Collateral Documents.  Subject to
Section 12.5, without further written consent or authorization from
Lenders, Administrative Agent or Collateral Agent, as applicable, may execute
any documents or instruments necessary to (i) release any Lien encumbering
any item of Collateral that is the subject of a sale or other disposition of
assets permitted hereby or to which Requisite Lenders (or such other Lenders as
may be required to give such consent under Section 12.5) have otherwise
consented, or (ii) release any Guarantor from the Guaranty pursuant to
Section 5.10 or otherwise or with respect to which Requisite Lenders (or
such other Lenders as may be required to give such consent under
Section 12.5) have otherwise consented.

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(b)           Right to Realize on Collateral and
Enforce any Guaranty.  Anything
contained in any of the Credit Documents to the contrary notwithstanding,
Borrowers, Administrative Agent, Collateral Agent and each Lender hereby agree
that (i) no Lender shall have any right individually to realize upon any
of the Collateral or to enforce any Guaranty, it being understood and agreed
that all powers, rights and remedies hereunder may be exercised solely by
Administrative Agent, on behalf of Lenders in accordance with the terms hereof
and all powers, rights and remedies under the Collateral Documents may be
exercised solely by Collateral Agent, and (ii) in the event of a
foreclosure by Collateral Agent on any of the Collateral pursuant to a public
or private sale, Collateral Agent or any Lender may be the purchaser of any or
all of such Collateral at any such sale and Collateral Agent, as agent for and
representative of Secured Parties (but not any Lender or Lenders in its or their
respective individual capacities unless Requisite Lenders shall otherwise agree
in writing) shall be entitled, for the purpose of bidding and making settlement
or payment of the purchase price for all or any portion of the Collateral sold
at any such public sale, to use and apply any of the Obligations as a credit on
account of the purchase price for any collateral payable by Collateral Agent at
such sale.

9.9          Posting of Approved Electronic Communications.

(a)           Delivery of Communications.  Each Credit Party hereby agrees, unless
directed otherwise by Administrative Agent or unless the electronic mail
address referred to below has not been provided by Administrative Agent to such
Credit Party that it will, or will cause its Subsidiaries to, provide to Administrative
Agent all information, documents and other materials that it is obligated to
furnish to Administrative Agent or to the Lenders pursuant to the Credit
Documents, including all notices, requests, financial statements, financial and
other reports, certificates and other information materials, but excluding any
such communication that (i) is or relates to a Funding Notice or a
Interest Election Request, (ii) relates to the payment of any principal or
other amount due under this Agreement prior to the scheduled date therefor,
(iii) provides notice of any Default under this Agreement or any other
Credit Document or (iv) is required to be delivered to satisfy any
condition precedent to the effectiveness of this Agreement and/or any Loan or other
extension of credit hereunder (all such non-excluded communications being
referred to herein, collectively, as “Communications”),
by transmitting the Communications in an electronic/soft medium that is
properly identified in a format acceptable to Administrative Agent to an
electronic mail address as directed by Administrative Agent.  In addition, each Credit Party agrees, and
agrees to cause its Subsidiaries, to continue to provide the Communications to
Administrative Agent or the Lenders, as the case may be, in the manner
specified in the Credit Documents but only to the extent requested by
Administrative Agent.

(b)           Platform.  Each Credit Party further agrees that
Administrative Agent may make the Communications available to the Lenders by
posting the Communications on Intralinks or a substantially similar electronic
transmission system (the “Platform”).

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(c)           No Warranties as to Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS
AVAILABLE”.  THE INDEMNITEES DO NOT
WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS OR THE ADEQUACY OF
THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN
THE COMMUNICATIONS.  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 THE INDEMNITEES IN
CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM.  IN NO EVENT SHALL THE INDEMNITEES HAVE ANY
LIABILITY TO ANY LENDER OR ANY OTHER PERSON FOR DAMAGES OF ANY KIND, WHETHER OR
NOT BASED ON STRICT LIABILITY AND INCLUDING DIRECT OR INDIRECT, SPECIAL,
INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT,
CONTRACT OR OTHERWISE) ARISING OUT OF ADMINISTRATIVE AGENT’S TRANSMISSION OF
COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY
INDEMNITEES IS FOUND IN A FINAL, NONAPPEALABLE ORDER BY A COURT OF COMPETENT
JURISDICTION TO HAVE RESULTED PRIMARILY FROM SUCH INDEMNITEE’S GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT.

(d)           Delivery Via Platform.  Administrative Agent agrees that the receipt
of the Communications by Administrative Agent at its electronic mail address
set forth above shall constitute effective delivery of the Communications to
Administrative Agent for purposes of the Credit Documents.  Each Lender agrees that receipt of notice to
it (as provided in the next sentence) specifying that the Communications have
been posted to the Platform shall constitute effective delivery of the
Communications to such Lender for purposes of the Credit Documents.  Each Lender agrees to notify Administrative
Agent in writing (including by electronic communication) from time to time of
such Lender’s electronic mail address to which the foregoing notice may be sent
by electronic transmission and that the foregoing notice may be sent to such
electronic mail address.

(e)           No Prejudice to Notice Rights.  Nothing herein shall prejudice the right of
Administrative Agent or any Lender to give any notice or other communication
pursuant to any Credit Document in any other manner specified in such Credit
Document.

SECTION 10.                                                  SECURITY AND ADMINISTRATIVE PRIORITY

10.1        Prepetition Obligations.  Each of the Credit Parties hereby
acknowledges, confirms and agrees that the Company and its Subsidiaries are
indebted to the Prepetition Agents and the Prepetition Indebtedness Holders for
the Prepetition Obligations, as of the Filing Date, (a) in an aggregate
principal amount of not less than $70,000,000 plus accrued and unpaid interest
of at least $273,287.67, plus
fees, costs, and expenses incurred in connection therewith, in respect of
Prepetition Obligations under the Prepetition Credit Agreement and (b) in
an aggregate principal amount of not less than $405,000,000, plus accrued and
unpaid interest of at least $20,899,582,
plus fees, costs, and expenses incurred in connection therewith (including

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attorneys’ fees), including the repayment premiums, if
any, owing under the Senior Secured Notes, in respect of Prepetition
Obligations related to the Senior Secured Notes Indenture, in each case,
indemnities, reimbursement obligations and other charges now or hereafter owed
by the Company and its Subsidiaries to the Prepetition Agents and the
Prepetition Indebtedness Holders pursuant to the terms of the Prepetition
Credit Agreement and the Senior Secured Notes Indenture, all of which are
unconditionally owing by the Company and its Subsidiaries to the Prepetition
Agents and the Prepetition Indebtedness Holders, without offset, defense or
counterclaim of any kind, nature and description whatsoever.

10.2        Acknowledgment
of Security Interests.  As of
the Filing Date, each of the Borrowers hereby acknowledges, confirms and agrees
(and hereby agrees that it will not dispute, challenge or otherwise contest)
that (a) the Prepetition Agents and the Prepetition Indebtedness Holders
have valid, enforceable and perfected first priority and senior liens (subject
only to “Permitted Liens” (as defined in the Prepetition Credit Documents) upon
and security interests in all of the Collateral (as defined in the Prepetition
Credit Documents) granted pursuant to the Prepetition Credit Documents and the
other “Collateral Documents” (as defined in the Prepetition Credit Documents)
as in effect on the Filing Date to secure all of the Prepetition Obligations
and (b) such Liens are not subject to avoidance, reduction, disallowance,
impairment or subordination pursuant to the Bankruptcy Code or applicable
non-bankruptcy law.

10.3        Binding Effect
of Documents.  Each of the
Borrowers hereby acknowledges, confirms and agrees (and hereby agrees that it
will not dispute, challenge or otherwise contest) that (a) each of the
Prepetition Credit Documents and the other “Collateral Documents” (as defined
in the Prepetition Credit Documents) to which it is a party is in full force
and effect as of the date hereof, (b) the agreements and obligations of
the Company and each of its Subsidiaries contained in the Prepetition Credit
Documents and the other “Collateral Documents” (as defined in the Prepetition
Credit Documents) constitute the legal, valid and binding obligations of each
of the Company and its Subsidiaries enforceable against each of them in
accordance with their respective terms and neither the Company nor any of its
Subsidiaries has any valid defense, offset or counterclaim to the enforcement
of such obligations and (c) the Prepetition Agents and the Prepetition
Indebtedness Holders are and shall be entitled to all of the rights, remedies
and benefits provided for in the Prepetition Credit Documents and the other “Collateral
Documents” (as defined in the Prepetition Credit Documents), except to the
extent clauses (b) and (c) above are subject to the automatic stay
under the Bankruptcy Code upon commencement of the Chapter 11 Cases.

10.4        Collateral; Grant of Lien and Security Interest.

(a)           Pursuant to the Bankruptcy Court
Orders and in accordance with the terms thereof, as security for the full and
timely payment and performance of all of the Obligations, the Borrowers hereby,
assign, pledge and grant to the Collateral Agent, for the benefit of the Agents
and the Lenders (the “Secured Parties”),
a security interest in and to and Lien on all of the property, assets or
interests in property or assets of such Person, of any kind or nature whatsoever,
real or personal, tangible and intangible now existing or hereafter acquired or
created, including, without limitation, all property of the “estate” (within
the meaning of the Bankruptcy Code) of the Borrowers, and all accounts,
inventory, goods, contract rights,

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instruments, documents, chattel paper, patents,
trademarks, copyrights and licenses therefor, general intangibles, payment
intangibles, letters of credit, letter-of-credit rights, supporting
obligations, machinery and equipment, real property (including all Facilities),
fixtures, leases, all (or, in the case of a Foreign Subsidiary, 65%) of the
issued and outstanding Capital Stock entitled to vote (within the meaning of
Treas.  Reg. Section 1.956-2(c)(2))
and all of the issued and outstanding Capital Stock not entitled to vote
(within the meaning of Treas.  Reg.
Section 1.956-2(c)(2)) of each Subsidiary of the Company, all of the
Capital Stock of all other Persons that are not Subsidiaries directly owned by
the Company, money, investment property, deposit accounts, all commercial tort
claims and other causes of action (other than Avoidance Actions), the proceeds
of all Avoidance Actions, all Cash Collateral (as defined in the Interim
Bankruptcy Court Order), and all cash and non-cash proceeds, rents, products,
substitutions, accessions and profits of any of collateral described above (all
property of the Borrowers subject to the security interest referred to in this
10.4(a) being hereinafter, collectively, referred to as the “Collateral”).

(b)           Upon entry of the Interim Bankruptcy
Court Order or Final Bankruptcy Court Order and subject to the terms thereof,
as the case may be, the Liens and security interests in favor of the Collateral
Agent referred to in 10.4(a) hereof shall be valid and perfected Liens and
security interests in the Collateral, prior to all other Liens and security
interests in the Collateral (subject to Permitted Priority Liens and any action
required under foreign law with respect to the Capital Stock of Foreign
Subsidiaries solely to the extent that such foreign law is applicable).  Such Liens and security interests and their
priority shall remain in effect until the total Commitment shall have been
terminated and all Obligations shall have been repaid in cash in full.

(c)           Notwithstanding anything herein to
the contrary (i) all proceeds received by the Agents and the Lenders from
the Collateral subject to the Liens granted in this 10.4 and in each other
Credit Document and by the Bankruptcy Court Orders shall be subject to the prior
payment of Carve-Out Expenses to the extent set forth in clause ”first” of
the definition of the term “Agreed Administrative Expense Priorities”, and
(ii) no Person entitled to Carve-Out Expenses shall be entitled to sell or
otherwise dispose, or seek or object to the sale or other disposition, of any
Collateral.

(d)            Notwithstanding anything herein to
the contrary, for the avoidance of doubt, the parties hereby agree that the
term “Collateral” shall not include any
FCC License held by any Borrower to the extent that any requirement of law
applicable thereto prohibits the creation of a security interest therein but
shall include: (i) the right to receive any payment of money (including,
without limitation, general intangibles for money due or to become due); and
(ii) any proceeds, products, offspring, accessions, rents, profits, income,
benefits, substitutions or replacements of any FCC License (unless such
proceeds, products, offspring, accessions, rents, profits, income, benefits,
substitutions or replacements itself would constitute an FCC License to the
extent that any requirements of law applicable thereto prohibits the creation
of a security interest therein).

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10.5        Administrative
Priority.  Each Borrower
agrees that its Obligations shall constitute allowed administrative expenses in
the Chapter 11 Cases, having priority over all administrative expenses of
and unsecured claims against such Person now existing or hereafter arising, of
any kind or nature whatsoever, including, without limitation, all administrative
expenses of the kind specified in, or arising or ordered under,
Sections 105, 326, 328, 330, 331, 503(b), 506(c), 507(a), 507(b), 546(c),
726 and 1114 of the Bankruptcy Code, subject only to the prior payment of
amounts to the extent set forth in clause ”first” of the definition of the
term “Agreed Administrative Expense Priorities”.

10.6        Grants, Rights
and Remedies.  The Liens and
security interests granted pursuant to Section 10.4(a) hereof and the
administrative priority granted pursuant to Section 10.5 hereof may be
independently granted by the Credit Documents and by other Credit Documents
hereafter entered into.  This Agreement,
the Bankruptcy Court Orders and such other Credit Documents supplement each
other, and the grants, priorities, rights and remedies of the Agents and the
Lenders hereunder and thereunder are cumulative.

10.7        No Filings
Required.  The Liens and
security interests referred to herein shall be deemed valid and perfected by
entry of the Interim Bankruptcy Court Order or the Final Bankruptcy Court
Order, as the case may be, and entry of the Interim Bankruptcy Court Order
shall have occurred on or before the date of any Loan prior to the Final Period
and entry of the Final Bankruptcy Court Order shall have occurred on or before
the date of any Loan during the Final Period. 
The Collateral Agent shall not be required to file any financing
statements, mortgages, notices of Lien or similar instruments in any
jurisdiction or filing office, take possession or control of any Collateral, or
take any other action in order to validate or perfect the Lien and security
interest granted by or pursuant to this Agreement, the Interim Bankruptcy Court
Order or the Final Bankruptcy Court Order, as the case may be, or any other
Credit Document.

10.8        Survival.  The Liens, lien priority,
administrative priorities and other rights and remedies granted to the Agents
and the Lenders pursuant to this Agreement, the Bankruptcy Court Orders and the
other Credit Documents (specifically including, but not limited to, the
existence, perfection and priority of the Liens and security interests provided
herein and therein, and the administrative priority provided herein and
therein) shall not be modified, altered or impaired in any manner by any other
financing or extension of credit or incurrence of Indebtedness by the Borrowers
(pursuant to Section 364 of the Bankruptcy Code or otherwise), or by any
dismissal or conversion of any of the Chapter 11 Cases, or by any other
act or omission whatsoever.  Without
limitation, notwithstanding any such order, financing, extension, incurrence,
dismissal, conversion, act or omission:

(a)           except to the extent set forth in
clause ”first” of the definition of the term “Agreed Administrative
Expense Priorities” as set forth in Section 10.5, no costs or expenses of
administration which have been or may be incurred in the Chapter 11 Cases
or any conversion of the same or in any other proceedings related thereto, and
no priority claims, are or will be prior to or on parity with any claim of the
Agents and the Lenders against the Borrowers in respect of any Obligation;

(b)           the Liens in favor of the Agents and
the Lenders set forth in Section 10.4(a) hereof shall constitute valid and
perfected first priority Liens and security

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 interests, and
shall be prior to all other Liens and security interests, now existing or
hereafter arising, in favor of any other creditor or any other Person
whatsoever (subject to Permitted Priority Liens and any action required under
foreign law with respect to the Capital Stock of Foreign Subsidiaries solely to
the extent that such foreign law is applicable); and

(c)           the Liens in favor of the Agents and
the Lenders set forth herein and in the other Credit Documents shall continue
to be valid and perfected without the necessity that the Collateral Agent file
financing statements or mortgages, take possession or control of any
Collateral, or otherwise perfect its Lien under applicable non-bankruptcy law.

SECTION 11.                                                  MANAGEMENT, COLLECTION AND STATUS OF ACCOUNTS RECEIVABLE AND OTHER COLLATERAL

11.1        Collection of Accounts Receivable; Management of
Collateral.

(a)           After the occurrence and during the
continuance of an Event of Default, the Collateral Agent or its designee may,
and at the request of the Requisite Lenders, the Collateral Agent shall, send a
notice of assignment and/or notice of the Collateral Agent’s security interest
to any and all Account Debtors or third parties holding or otherwise concerned
with any of the Collateral, and thereafter the Collateral Agent or its designee
shall have the sole right to collect the Accounts Receivable and/or take
possession of the Collateral and the books and records relating thereto.

(b)           Subject to the entry and the terms of
the Bankruptcy Court Orders, the Borrowers hereby appoint the Collateral Agent
or its designee on behalf of the Collateral Agent as the Borrowers’
attorney-in-fact with power exercisable during the continuance of an Event of
Default to endorse the Borrower’s name upon any notes, acceptances, checks,
drafts, money orders or other evidences of payment relating to the Accounts
Receivable, to sign any Borrower’s name on any invoice or bill of lading
relating to any of the Accounts Receivable, drafts against Account Debtors with
respect to Accounts Receivable, assignments and verifications of Accounts
Receivable and notices to Account Debtors with respect to Accounts Receivable,
to send verification of Accounts Receivable, and to notify the Postal Service
authorities to change the address for delivery of mail addressed to any
Borrower to such address as the Collateral Agent or such designee may designate
and to do all other acts and things necessary to carry out this Agreement.  All acts of said attorney or designee are
hereby ratified and approved, and said attorney or designee shall not be liable
for any acts of omission or commission (other than acts of omission or
commission constituting gross negligence or willful misconduct as determined by
a final judgment of a court of competent jurisdiction), or for any error of
judgment or mistake of fact or law not constituting gross negligence or willful
misconduct as determined by a final judgment of a court of competent
jurisdiction; this power being coupled with an interest is irrevocable until
all of the Loans and other Obligations under the Credit Documents are paid in
full and all of the Credit Documents are terminated.

(c)           Nothing herein contained shall be
construed to constitute any Agent as agent of any Borrower for any purpose
whatsoever, and the Agents shall not be responsible or liable for any shortage,
discrepancy, damage, loss or destruction of any part of

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the Collateral wherever the same may be located and
regardless of the cause thereof (other than from acts of omission or commission
constituting gross negligence or willful misconduct as determined by a final
judgment of a court of competent jurisdiction). 
The Agents shall not, under any circumstance or in any event whatsoever,
have any liability for any error or omission or delay of any kind occurring in
the settlement, collection or payment of any of the Accounts Receivable or any
instrument received in payment thereof or for any damage resulting therefrom
(other than acts of omission or commission constituting gross negligence or
willful misconduct as determined by a final judgment of a court of competent
jurisdiction).  The Agents, by anything
herein or in any assignment or otherwise, do not assume any of the obligations
under any contract or agreement assigned to any Agent and shall not be responsible
in any way for the performance by any Borrower of any of the terms and
conditions thereof.

(d)           If any Account Receivable includes a
charge for any tax payable to any Governmental Authority, each Agent is hereby
authorized (but in no event obligated) in its discretion to pay the amount
thereof to the proper taxing authority for the applicable Borrower’s account
and to charge the Borrowers therefor. 
The Borrowers shall notify the Agents if any Account Receivable includes
any taxes due to any such Governmental Authority and, in the absence of such
notice, the Agents shall have the right to apply the full proceeds of such
Account Receivable and shall not be liable for any taxes that may be due by
reason of the sale and delivery creating such Account Receivable.

(e)           Notwithstanding any other terms set
forth in the Credit Documents, the rights and remedies of the Agents and the
Lenders herein provided, and the obligations of the Borrowers set forth herein,
are cumulative of, may be exercised singly or concurrently with, and are not
exclusive of, any other rights, remedies or obligations set forth in any other
Credit Document or as provided by law.

11.2        Accounts
Receivable Documentation.  The
Borrowers will at such intervals as the Collateral Agent may reasonably
require, execute and deliver confirmatory written assignments of the Accounts
Receivable to the Agents and furnish such further schedules and/or information
as any such Agent may reasonably require relating to the Accounts Receivable.  The items to be provided under this
Section 11.2 are to be in form reasonably satisfactory to the Collateral
Agent and are to be executed and delivered to the Agents from time to time
solely for their convenience in maintaining records of the Collateral.  A Borrower’s failure to give any of such
items to the Agents shall not affect, terminate, modify or otherwise limit the
Collateral Agent’s Lien on the Collateral. 
If the Borrowers become aware of anything materially detrimental to any
Borrower’s material customers’ credit, the Borrowers will promptly advise the
Agents thereof.

11.3        Status of
Accounts Receivable and Other Collateral. 
With respect to Collateral of the Borrowers at the time the
Collateral becomes subject to the Collateral Agent’s Lien, each Borrower covenants,
represents and warrants:  (a) to the
best knowledge of such Borrower, each Account Receivable shall be a good and
valid account representing a bona fide indebtedness incurred or an amount owed
by the Account Debtor therein named; (b) all agreements, instruments and
other documents relating to any Account Receivable shall be true and correct
and in all material respects what they purport to be; and (c) such
Borrower shall maintain books and records pertaining to said Collateral in such
detail, form and scope as the Agents shall reasonably require.

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11.4        Collateral
Custodian.  Upon the
occurrence and during the continuance of any Default or Event of Default, the
Collateral Agent or its designee may at any time and from time to time employ
and maintain on the premises of the Borrowers a custodian selected by the
Collateral Agent or its designee who shall have full authority to do all acts
necessary to protect the Agents’ and the Lenders’ interests in the
Collateral.  Each Borrower hereby agrees
to, and to cause its Subsidiaries to, cooperate with any such custodian and to
do whatever the Collateral Agent or its designee may reasonably request to
preserve the Collateral.  All costs and
expenses incurred by the Collateral Agent or its designee by reason of the
employment of the custodian shall be the responsibility of the Borrowers and
charged to the Loan Account.

SECTION 12.                                                  MISCELLANEOUS

12.1        Notices.  Unless otherwise specifically provided
herein, any notice or other communication herein required or permitted to be
given to a Credit Party or an Agent, shall be sent to such Person’s address as
set forth on Appendix B or in the other relevant Credit Document,
and in the case of any Lender, the address as indicated on Appendix B
or otherwise indicated to Administrative Agent in writing.  Each notice hereunder shall be in writing and
may be personally served, telexed or sent by telefacsimile or United States
mail or courier service and shall be deemed to have been given when delivered
in person or by courier service and signed for against receipt thereof, upon
receipt of telefacsimile or telex, or three Business Days after depositing it
in the United States mail with postage prepaid and properly addressed; provided,
no notice to any Agent shall be effective until received by such Agent.

12.2        Expenses.  Whether or not the transactions contemplated
hereby shall be consummated, Borrowers agrees to pay promptly, and in any event
within five (5) days after written demand therefore, (a) all
reasonable and documented costs and expenses of preparation of the Credit
Documents and any consents, amendments, waivers or other modifications thereto;
(b) all the costs of furnishing all opinions by counsel for Company and
the other Credit Parties; (c) the fees, expenses and disbursements of
counsel to Agents in connection with the negotiation, preparation, execution
and administration of the Credit Documents and any consents, amendments,
waivers or other modifications thereto and any other documents or matters
requested by Administrative Borrower; (d) all the actual and documented
costs and expenses of creating and perfecting Liens in favor of Collateral
Agent, for the benefit of Secured Parties pursuant hereto, including filing and
recording fees, expenses and amounts owed pursuant to Section 2.19(c) and
(d), search fees, title insurance premiums and fees, expenses and disbursements
of counsel to each Agent and of counsel providing any opinions that any Agent
or Requisite Lenders may request in respect of the Collateral or the Liens
created pursuant to the Collateral Documents; (e) all reasonable and
documented costs and fees, expenses and disbursements of any external auditors,
accountants, consultants or appraisers; (f) all reasonable and documented
fees, costs and expenses of counsel (excluding allocated costs of internal
counsel) and of any appraisers, valuation experts, consultants, advisors and
agents employed or

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retained by any Agent and
its counsels; (g) all reasonable and documented costs and expenses
incurred by each Agent in connection with the syndication of the Loans and
Commitments and the negotiation, preparation and execution of the Credit
Documents and any consents, amendments, waivers or other modifications thereto
and the transactions contemplated thereby; and (h) after the occurrence of
a Default or an Event of Default, all costs and expenses, including attorneys’
fees (excluding allocated costs of internal counsel) and costs of settlement,
incurred by any Agent and Lenders in enforcing any Obligations of or in collecting
any payments due from any Credit Party hereunder or under the other Credit
Documents by reason of such Default or Event of Default (including in
connection with the sale of, collection from, or other realization upon any of
the Collateral or the enforcement of any Guaranty) or, in connection with any
refinancing or restructuring of the credit arrangements provided hereunder,
including without limitation the costs of any financial advisor, consultant or
other outside experts retained by the Administrative Agent or any Lender.

12.3        Indemnity.

(a)           Except for Taxes, which shall be
governed exclusively by Section 2.19, in addition to the payment of
expenses pursuant to Section 12.2, whether or not the transactions
contemplated hereby shall be consummated, each Credit Party agrees to defend
(subject to Indemnitees’ selection of counsel), indemnify, pay and hold
harmless, each Agent and Lender, their Affiliates and their respective
officers, partners, directors, trustees, employees, representatives and agents
of each Agent and each Lender (each, an “Indemnitee”),
from and against any and all Indemnified Liabilities, IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR
IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY, OR SOLE NEGLIGENCE OF
SUCH AGENT; provided, no Credit Party shall have any
obligation to any Indemnitee hereunder with respect to any Indemnified
Liabilities to the extent such Indemnified Liabilities arise from the gross
negligence or willful misconduct of that Indemnitee.  To the extent that the undertakings to
defend, indemnify, pay and hold harmless set forth in this Section 12.3
may be unenforceable in whole or in part because they are violative of any law
or public policy, the applicable Credit Party shall contribute the maximum
portion that it is permitted to pay and satisfy under applicable law to the
payment and satisfaction of all Indemnified Liabilities incurred by Indemnitees
or any of them.

(b)           To the extent permitted by applicable
law, no Credit Party shall assert, and each Credit Party hereby waives, any
claim against Lenders, Agents and their respective Affiliates, directors,
employees, attorneys or agents, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual damages)
(whether or not the claim therefor is based on contract, tort or duty imposed
by any applicable legal requirement) arising out of, in connection with, as a
result of, or in any way related to, this Agreement or any Credit Document or
any agreement or instrument contemplated hereby or thereby or referred to
herein or therein, the transactions contemplated hereby or thereby, any Loan or
the use of the proceeds thereof or any act or omission or event occurring in
connection therewith, and each Credit Party hereby waives, releases and agrees
not to sue upon any such claim or any such damages, whether or not accrued and
whether or not known or suspected to exist in its favor.

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12.4        Set Off.  In addition to any rights now or hereafter
granted under applicable law and not by way of limitation of any such rights,
upon the occurrence of any Event of Default each Lender and its respective
Affiliates is hereby authorized by each Credit Party at any time or from time
to time subject to the consent of Administrative Agent (such consent not to be
unreasonably withheld or delayed), without notice to any Credit Party or to any
other Person (other than Administrative Agent), any such notice being hereby
expressly waived, to set off and to appropriate and to apply any and all
deposits (general or special, including Indebtedness evidenced by certificates
of deposit, whether matured or unmatured, but not including trust accounts (in
whatever currency)) and any other Indebtedness at any time held or owing by
such Lender to or for the credit or the account of any Credit Party (in
whatever currency) against and on account of the obligations and liabilities of
any Credit Party to such Lender hereunder and under the other Credit Documents,
including all claims of any nature or description arising out of or connected
hereto or with any other Credit Document, irrespective of whether or not
(a) such Lender shall have made any demand hereunder, (b) the
principal of or the interest on the Loans or any other amounts due hereunder
shall have become due and payable pursuant to Section 2 and although such
obligations and liabilities, or any of them, may be contingent or unmatured or
(c) such obligation or liability is owed to a branch or office of such
Lender different from the branch or office holding such deposit or obligation
or such Indebtedness.

12.5        Amendments and Waivers.

(a)           Requisite Lenders’ Consent.  Subject to Sections 12.5(b) and 12.5(c),
no amendment, modification, termination or waiver of any provision of the
Credit Documents, or consent to any departure by any Credit Party therefrom,
shall in any event be effective without the written concurrence of (i) in
the case of this Agreement, Administrative Agent and the Requisite Lenders or
(ii) in the case of any other Credit Document, Administrative Agent and,
if party thereto, the Collateral Agent, with the consent of the Requisite
Lenders.

(b)           Affected Lenders’ Consent.  Without the written consent of each Lender
(other than a Defaulting Lender) that would be affected thereby, no amendment,
modification, termination, or consent shall be effective if the effect thereof
would:

(i)                  extend
the scheduled final maturity of any Loan or Note of such Lender;

(ii)                 waive,
reduce or postpone any scheduled repayment due such Lender (but not prepayment);

(iii)                reduce the rate of
interest on any Loan of such Lender (other than any amendment to the definition
of “Default Rate” (which may be affected by consent of the Requisite Lenders)
and any waiver of any increase in the interest rate applicable to any Loan
pursuant to Section 2.9) or any fee payable hereunder;

(iv)               extend the time for
payment of any such interest or fees to such Lender;

(v)                reduce the principal
amount of any Loan;

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(vi)               amend, modify, terminate
or waive any provision of this Section 12.5(b) or Section 12.5(c);

(vii)              amend the definition of “Requisite Lenders” or “Pro Rata Share”;

(viii)             release all or substantially
all of the Collateral or if more than one Guarantor at such time, all or
substantially all Guarantors from any Guaranty except as expressly provided in
the Credit Documents; or

(ix)                consent
to the assignment or transfer by any Credit Party of any of its rights and
obligations under any Credit Document;

provided, however, that the
Fee Letter may be amended or modified, or the rights or privileges thereunder
waived, in a writing executed only by the parties thereto.

(c)           Other Consents.  No amendment, modification, termination or
waiver of any provision of the Credit Documents, or consent to any departure by
any Credit Party therefrom, shall amend, modify, terminate or waive any
provision of Section 9 as the same applies to any Agent, or any other
provision hereof as the same applies to the rights or obligations of any Agent,
in each case without the consent of such Agent.

Notwithstanding anything
to the contrary herein, no Defaulting Lender shall have any right to approve or
disapprove any amendment, modification, waiver or consent hereunder, except
that the Commitment of such Lender may not be increased or extended without the
consent of such Lender.

(d)           Execution of Amendments, etc.  Administrative Agent may, but shall have no
obligation to, with the concurrence of any Lender, execute amendments,
modifications, waivers or consents on behalf of such Lender.  Any waiver or consent shall be effective only
in the specific instance and for the specific purpose for which it was
given.  No notice to or demand on any
Credit Party in any case shall entitle any Credit Party to any other or further
notice or demand in similar or other circumstances.  Any amendment, modification, termination,
waiver or consent effected in accordance with this Section 12.5 shall be
binding upon each Lender at the time outstanding, each future Lender and, if signed
by a Credit Party, on such Credit Party.

12.6        Successors and Assigns; Participations.

(a)           Generally.  This Agreement shall be binding upon the
parties hereto and their respective successors and assigns and shall inure to
the benefit of the parties hereto and the successors and assigns of Lenders.  No Credit Party’s rights or obligations
hereunder nor any interest therein may be assigned or delegated by any Credit
Party without the prior written consent of all Lenders (and any attempted
assignment or transfer by any Credit Party without such consent shall be 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
and, to the extent expressly contemplated hereby, Affiliates of each of the
Agents and Lenders) any legal or equitable right, remedy or claim under or by
reason of this Agreement.

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(b)           Register.  The Borrowers, Administrative Agent and
Lenders shall deem and treat the Persons listed as Lenders in the Register as
the holders and owners of the corresponding Commitments and Loans listed
therein for all purposes hereof, and no assignment or transfer of any such
Commitment or Loan shall be effective, in each case, unless and until an
Assignment Agreement effecting the assignment or transfer thereof shall have
been delivered to and accepted by Administrative Agent and recorded in the
Register as provided in Section 12.6(e). 
Prior to such recordation, all amounts owed with respect to the
applicable Commitment or Loan shall be owed to the Lender listed in the
Register as the owner thereof, and any request, authority or consent of any
Person who, at the time of making such request or giving such authority or
consent, is listed in the Register as a Lender shall be conclusive and binding
on any subsequent holder, assignee or transferee of the corresponding
Commitments or Loans.  Solely for the
purposes of maintaining the Register and for tax purposes only Administrative
Agent shall be deemed to be acting on behalf of the Credit Parties.

(c)           Right to Assign.  Each Lender shall have the right at any time
to sell, assign or transfer all or a portion of its rights and obligations
under this Agreement, including all or a portion of its Commitment or Loans
owing to it or other Obligations (provided, however, that each
such assignment shall be of a uniform, and not varying, percentage of all
rights and obligations under and in respect of any Loan and any related
Commitments) to any Person otherwise constituting an Eligible Assignee with the
consent of Administrative Agent; provided, each such assignment pursuant
to this Section 12.6(c)(ii) shall be in an aggregate amount of not less
than $2,000,000 (or such lesser amount as may be agreed to by Administrative
Agent or as shall constitute the aggregate amount of the whole Commitment of
the assigning Lender).

(d)           Mechanics.  The assigning Lender and the assignee thereof
shall execute and deliver to Administrative Agent an Assignment Agreement,
together with such forms, certificates or other evidence, if any, with respect
to United States federal income tax withholding matters as the assignee under
such Assignment Agreement may be required to deliver to Administrative Agent
pursuant to Section 2.19(e).

(e)           Notice of Assignment.  Upon its receipt and acceptance of a duly
executed and completed Assignment Agreement, any forms, certificates or other
evidence required by this Agreement in connection therewith, Administrative
Agent shall record the information contained in such Assignment Agreement in
the Register, shall give prompt notice thereof to Administrative Borrower and
shall maintain a copy of such Assignment Agreement.

(f)            Representations and Warranties of
Assignee.  Each Lender, upon
execution and delivery hereof or upon executing and delivering an Assignment
Agreement, as the case may be, represents and warrants as of the Closing Date
or as of the applicable Effective Date (as defined in the applicable Assignment
Agreement) that (i) it is an Eligible Assignee; (ii) it has experience
and expertise in the making of or investing in commitments or

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loans such as the applicable Commitments or Loans, as
the case may be; and (iii) it will make or invest in, as the case may be,
its Commitments or Loans for its own account in the ordinary course of its
business and without a view to distribution of such Commitments or Loans within
the meaning of the Securities Act or the Exchange Act or other federal
securities laws (it being understood that, subject to the provisions of this
Section 12.6, the disposition of such Loans or any interests therein shall
at all times remain within its exclusive control).

(g)           Effect of Assignment.  Subject to the terms and conditions of this
Section 12.6, as of the “Effective Date” specified in the applicable
Assignment Agreement:  (i) the
assignee thereunder shall have the rights and obligations of a “Lender”
hereunder to the extent such rights and obligations hereunder have been
assigned to it pursuant to such Assignment Agreement and shall thereafter be a
party hereto and a “Lender” for all purposes hereof; (ii) the assigning
Lender thereunder shall, to the extent that rights and obligations hereunder
have been assigned thereby pursuant to such Assignment Agreement, relinquish
its rights (other than any rights which survive the termination hereof under
Section 12.8) and be released from its obligations hereunder (and, in the
case of an Assignment Agreement covering all or the remaining portion of an
assigning Lender’s rights and obligations hereunder, such Lender shall cease to
be a party hereto; provided, anything contained in any of the Credit
Documents to the contrary notwithstanding, such assigning Lender shall continue
to be entitled to the benefit of all indemnities hereunder as specified herein
with respect to matters arising out of the prior involvement of such assigning
Lender as a Lender hereunder); (iii) the Commitments shall be modified to
reflect the Commitment of such assignee and any Commitment of such assigning
Lender, if any; and (iv) if any such assignment occurs after the issuance
of any Note hereunder, the assigning Lender shall, upon the effectiveness of
such assignment or as promptly thereafter as practicable, surrender its
applicable Notes to Administrative Agent for cancellation, and thereupon
Borrowers shall issue and deliver new Notes, if so requested by the assignee
and/or assigning Lender, to such assignee and/or to such assigning Lender, with
appropriate insertions, to reflect the new Commitments and/or outstanding Loans
of the assignee and/or the assigning Lender.

(h)           Participations.  Each Lender shall have the right at any time
to sell one or more participations to any Person (other than Company, any of
its Subsidiaries or any of its Affiliates) in all or any part of its
Commitments, Loans, Notes or in any other Lender Obligation.  The holder of any such participation (a “Participant”), other than an Affiliate of the Lender
granting such participation, shall not be entitled to require such Lender to
take or omit to take any action hereunder except with respect to any amendment,
modification or waiver that would (i) extend the final scheduled maturity
of any Loan or Note in which such Participant is participating, or reduce the
rate or extend the time of payment of interest or fees thereon (except any
amendment to the definition of “Default Rate” or in connection with a waiver of
applicability of any post default increase in interest rates) or reduce the
principal amount thereof, or increase the amount of the Participant’s
participation over the amount thereof then in effect (it being understood that
a waiver of any Default or Event of Default or of a mandatory reduction in the
Commitment shall not constitute a change in the terms of such participation,
and that an increase in any Commitment or Loan shall be permitted without the
consent of any Participant if the Participant’s participation is not increased
as a result thereof), (ii) consent to the assignment or transfer by any
Credit Party of any of its rights and

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obligations under this Agreement, or
(iii) release all or substantially all of the Collateral under the
Collateral Documents or all or substantially all of the Guarantors from the
Guaranty (in each case, except as expressly provided in the Credit Documents)
supporting the Loans hereunder in which such Participant is participating.  Borrowers agree that each Participant shall
be entitled, through the participating Lender, to the benefits of
Sections 2.17(c), 2.18 and 2.19 to the same extent as if it were a Lender
and had acquired its interest by assignment pursuant to clause (c) of this
Section; provided, (i) a Participant shall not be entitled to
receive any greater payment under Section 2.18 or 2.19 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 Borrowers’ prior written consent, and (ii) a
Participant that would be a Non-U.S. Lender if it were a Lender shall not be
entitled to the benefits of Section 2.19 unless Administrative Borrower is
notified of the participation sold to such Participant and such Participant
agrees, for the benefit of Borrowers, to comply with Section 2.19 as
though it were a Lender.  To the extent
permitted by law, each Participant also shall be entitled to the benefits of
Section 12.4 as though it were a Lender, provided such Participant
agrees to be subject to Section 2.16 as though it were a Lender.

(i)            Certain Other Assignments.  In addition to any other assignment permitted
pursuant to this Section 12.6, any Lender may assign, pledge and/or grant
a security interest in, all or any portion of its Loans, the other Obligations
owed by or to such Lender, and its Notes, if any, to secure obligations of such
Lender including any Federal Reserve Bank as collateral security pursuant to
Regulation A of the Board of Governors of the Federal Reserve System and any
operating circular issued by such Federal Reserve Bank; provided, no
Lender, as between Borrowers and such Lender, shall be relieved of any of its
obligations hereunder as a result of any such assignment and pledge, and provided
further, in no event shall the applicable Federal Reserve Bank, pledgee
or trustee be considered to be a “Lender” or be entitled to require the
assigning Lender to take or omit to take any action hereunder.

12.7        Special Purpose
Funding Vehicles. 
Notwithstanding anything to the contrary contained herein, any Lender (“Granting Lender”) may grant to a special purpose funding
vehicle (an SPC”), identified as such in
writing from time to time by the Granting Lender to Administrative Agent and
the Borrowers, the option to provide to the Borrowers all or any part of any
Loan that such Granting Lender would otherwise be obligated to make to the Borrowers
pursuant to this Agreement; provided that (x) nothing herein shall
constitute a commitment by any SPC to make any Loans and (y) if an SPC
elects not to exercise such option or otherwise fails to provide all or any
part of such Loan, the Granting Lender shall be obligated to make such Loan
pursuant to the terms hereof.  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.  Each party hereto hereby agrees
that no SPC shall be liable for any indemnity or similar payment obligation
under this Agreement (all liability for which shall remain with the Granting
Lender).  In furtherance of the
foregoing, each party hereto hereby agrees (which agreement shall survive the
termination of this Agreement) that, prior to the date that is one year and one
day after the payment in full of all outstanding commercial paper or other
senior indebtedness 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 proceedings under the laws of the United
States or any State thereof.  In
addition,

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notwithstanding anything
to the contrary contained in this clause, any SPC may (i) with notice to,
but without the prior written consent of, the Borrowers or Administrative Agent
and without paying any processing fee therefor, assign all or a portion of its
interests in any Loans to the Granting Lender or to any financial institutions
(consented to by Administrative Agent) providing liquidity and/or credit
support to or for the account of such SPC to support the funding or maintenance
of Loans and (ii) disclose on a confidential basis any non-public information
relating to its Loans to any rating agency, commercial paper dealer or provider
of any surety, guarantee or credit or liquidity enhancement to such SPC.  This Section may not be amended without the
written consent of the SPC.  Borrowers
acknowledge and agree, subject to the next sentence, that, to the fullest
extent permitted under applicable law, each SPC, for purposes of
Sections 2.16, 2.17, 2.18, 2.19, 12.2, 12.3 and 12.4, shall be considered
a Lender.  Borrowers shall not be
required to pay any amount under Sections 2.16, 2.17, 2.18, 2.19, 12.2,
12.3 and 12.4 that is greater than the amount which it would have been required
to pay had no grant been made by a Granting Lender to a SPC.

12.8        Independence of
Covenants.  All covenants
hereunder shall be given independent effect so that if a particular action or
condition is not permitted by any of such covenants, the fact that it would be
permitted by an exception to, or would otherwise be within the limitations of,
another covenant shall not avoid the occurrence of a Default or an Event of
Default if such action is taken or condition exists.

12.9        Survival of
Representations, Warranties and Agreements.  All representations, warranties and
agreements made herein shall survive the execution and delivery hereof and the
making of any Loan Extension. 
Notwithstanding anything herein or implied by law to the contrary, the
agreements of each Credit Party set forth in Sections 2.17(c), 2.18, 2.19,
12.2, 12.3 and 12.4 and the agreements of Lenders set forth in Sections 2.16,
9.3(b) and 9.6 shall survive the payment of the Loans.

12.10      No Waiver;
Remedies Cumulative.  No
failure or delay on the part of any Agent or any Lender in the exercise of any
power, right or privilege hereunder or under any other Credit Document shall
impair such power, right or privilege or be construed to be a waiver of any
default or acquiescence therein, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof
or of any other power, right or privilege. 
The rights, powers and remedies given to each Agent and each Lender
hereby are cumulative and shall be in addition to and independent of all
rights, powers and remedies existing by virtue of any statute or rule of law or
in any of the other Credit Documents. 
Any forbearance or failure to exercise, and any delay in exercising, any
right, power or remedy hereunder shall not impair any such right, power or
remedy or be construed to be a waiver thereof, nor shall it preclude the
further exercise of any such right, power or remedy.

12.11      Marshalling;
Payments Set Aside.  Neither
any Agent nor any Lender shall be under any obligation to marshal any assets in
favor of any Credit Party or any other Person or against or in payment of any
or all of the Obligations.  To the extent
that any Credit Party makes a payment or payments to Administrative Agent or
Lenders (or to Administrative Agent, on behalf of Lenders), or Administrative
Agent, Collateral Agent or Lenders enforce any security interests or exercise
their rights of setoff, and such payment or payments or the proceeds of such

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enforcement or setoff or
any part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside and/or required to be repaid to a trustee, receiver or
any other party under any bankruptcy law, any other state or federal law,
common law or any equitable cause, then, to the extent of such recovery, the
obligation or part thereof originally intended to be satisfied, and all Liens,
rights and remedies therefor or related thereto, shall be revived and continued
in full force and effect as if such payment or payments had not been made or
such enforcement or setoff had not occurred.

12.12      Severability.  In case any provision in or obligation
hereunder or any Note or other Credit Document shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of
the remaining provisions or obligations, or of such provision or obligation in
any other jurisdiction, shall not in any way be affected or impaired thereby.

12.13      Obligations
Several; Independent Nature of Lenders’ Rights.  The obligations of Lenders hereunder are
several and no Lender shall be responsible for the obligations or Commitment of
any other Lender hereunder.  Nothing
contained herein or in any other Credit Document, and no action taken by
Lenders pursuant hereto or thereto, shall be deemed to constitute Lenders as a
partnership, an association, a joint venture or any other kind of entity.  The amounts payable at any time hereunder to
each Lender shall be a separate and independent debt, and each Lender shall be
entitled to protect and enforce its rights arising out hereof and it shall not
be necessary for any other Lender to be joined as an additional party in any
proceeding for such purpose.

12.14      Headings.  Section headings herein are included herein
for convenience of reference only and shall not constitute a part hereof for
any other purpose or be given any substantive effect.

12.15      APPLICABLE LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK, EXCEPT TO THE
EXTENT NEW YORK LAW IS SUPERSEDED BY THE BANKRUPTCY CODE.

12.16      CONSENT TO
JURISDICTION; SERVICE OF PROCESS AND VENUE.

ANY LEGAL
ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENT SHALL BE BROUGHT IN THE BANKRUPTCY COURT, AND, BY EXECUTION AND
DELIVERY OF THIS AGREEMENT, EACH CREDIT PARTY HEREBY IRREVOCABLY ACCEPTS IN
RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE
BANKRUPTCY COURT.  EACH CREDIT PARTY HEREBY IRREVOCABLY CONSENTS
TO THE SERVICE OF PROCESS OUT OF THE BANKRUPTCY COURT AND IN ANY SUCH ACTION OR
PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL,
POSTAGE PREPAID, TO THE ADMINISTRATIVE BORROWER AT ITS ADDRESS

 111
 

 

FOR NOTICES
AS SET FORTH IN SECTION 12.01.  THE
CREDIT PARTIES AGREE 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 HEREIN SHALL AFFECT THE RIGHT OF THE
AGENTS AND THE LENDERS TO SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY
LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY CREDIT
PARTY IN ANY OTHER JURISDICTION.  EACH
CREDIT PARTY HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
JURISDICTION OR LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN SUCH COURT
AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM.  TO THE EXTENT THAT ANY CREDIT
PARTY HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT
OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR
TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO
ITSELF OR ITS PROPERTY, EACH CREDIT PARTY HEREBY IRREVOCABLY WAIVES SUCH
IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS AGREEMENT AND THE OTHER
CREDIT DOCUMENTS.

12.17      WAIVER OF JURY
TRIAL

EACH
CREDIT PARTY, EACH AGENT AND EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM CONCERNING ANY RIGHTS UNDER THIS
AGREEMENT OR THE OTHER CREDIT DOCUMENTS, OR UNDER ANY AMENDMENT, WAIVER,
CONSENT, INSTRUMENT, DOCUMENT OR OTHER AGREEMENT DELIVERED OR WHICH IN THE FUTURE
MAY BE DELIVERED IN CONNECTION THEREWITH, OR ARISING FROM ANY FINANCING
RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY
SUCH ACTION, PROCEEDINGS OR COUNTERCLAIM SHALL BE TRIED BEFORE A COURT AND NOT
BEFORE A JURY.  EACH CREDIT PARTY
CERTIFIES THAT NO OFFICER, REPRESENTATIVE, AGENT OR ATTORNEY OF ANY AGENT OR
ANY LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT ANY AGENT OR ANY
LENDER WOULD NOT, IN THE EVENT OF ANY ACTION, PROCEEDING OR COUNTERCLAIM, SEEK
TO ENFORCE THE FOREGOING WAIVERS.  EACH
CREDIT PARTY HEREBY ACKNOWLEDGES THAT THIS PROVISION IS A MATERIAL INDUCEMENT
FOR THE AGENTS AND THE LENDERS ENTERING INTO THIS AGREEMENT.

12.18      Confidentiality.  Each Lender shall hold all non-public
information regarding Company and its Subsidiaries and their businesses clearly
identified as such by Borrowers and obtained by such Lender pursuant to the
requirements hereof in accordance with such Lender’s customary procedures for
handling confidential information of such nature, it being understood and
agreed by the Borrowers that, in any event, a Lender may make
(i) disclosures of such

 112
 

 

information to Affiliates
of such Lender and to their directors, officers, employees, agents and advisors
(and to other persons authorized by a Lender or Agent to organize, present or
disseminate such information in connection with disclosures otherwise made in
accordance with this Section 12.17), who shall be advised of the
confidential nature of the disclosures, (ii) disclosures of such information
reasonably required by any bona fide or potential assignee, transferee or
participant in connection with the contemplated assignment, transfer or
participation by such Lender of any Loans or any participations therein, who
shall be advised of the confidential nature of the disclosures,
(iii) disclosure to any rating agency when required by it, provided
that, prior to any disclosure, such rating agency shall undertake in writing to
preserve the confidentiality of any confidential information relating to the Credit
Parties received by it from any of the Agents or any Lender,
(iv) disclosures to any Lender’s financing sources, provided that
prior to any disclosure, such financing source is informed of the confidential
nature of the information, (v) disclosure of information which
(A) becomes publicly available other than as a result of a breach of this
Section 12.17 or (B) becomes available to Administrative Agent or any
Lender on a non-confidential basis from a source other than the Borrowers, and
(vi) disclosures required or requested by any governmental agency or
representative thereof or by the NAIC or pursuant to legal or judicial process;
provided, unless specifically prohibited by applicable law or court
order, each Lender shall make reasonable efforts to notify the Borrowers of any
request by any governmental agency or representative thereof (other than any
such request in connection with any examination of the financial condition or
other routine examination of such Lender by such governmental agency) for
disclosure of any such non-public information prior to disclosure of such
information.  Notwithstanding the
foregoing, on or after the Closing Date, Administrative Agent may, at its own
expense, issue news releases and publish “tombstone” advertisements and other
announcements relating to this transaction in newspapers, trade journals and
other appropriate media.

12.19      Usury Savings
Clause.  Notwithstanding any
other provision herein, the aggregate interest rate charged or agreed to be
paid with respect to any of the Obligations, including all charges or fees in
connection therewith deemed in the nature of interest under applicable law
shall not exceed the Highest Lawful Rate. 
If the rate of interest (determined without regard to the preceding
sentence) under this Agreement at any time exceeds the Highest Lawful Rate, the
outstanding amount of the Loans made hereunder shall bear interest at the
Highest Lawful Rate until the total amount of interest due hereunder equals the
amount of interest which would have been due hereunder if the stated rates of
interest set forth in this Agreement had at all times been in effect.  In addition, if when the Loans made hereunder
are repaid in full the total interest due hereunder (taking into account the
increase provided for above) is less than the total amount of interest which
would have been due hereunder if the stated rates of interest set forth in this
Agreement had at all times been in effect, then to the extent permitted by law,
Borrowers shall pay to Administrative Agent an amount equal to the difference
between the amount of interest paid and the amount of interest which would have
been paid if the Highest Lawful Rate had at all times been in effect.  Notwithstanding the foregoing, it is the
intention of Lenders and Borrowers to conform strictly to any applicable usury
laws.  Accordingly, if any Lender
contracts for, charges, or receives any consideration which constitutes
interest in excess of the Highest Lawful Rate, then any such excess shall be
cancelled automatically and, if previously paid, shall at such Lender’s option
be applied to the outstanding amount of the Loans made hereunder or be refunded
to Borrowers.  In determining whether the
interest contracted for, charged, or received by Administrative Agent or a
Lender exceeds the Highest Lawful 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 unequal parts the total amount of interest,
throughout the contemplated term of the Obligations hereunder.

 113
 

 

12.20      Counterparts.  This Agreement may be executed in any number
of counterparts, each of which when so executed and delivered shall be deemed
an original, but all such counterparts together shall constitute but one and
the same instrument.

12.21      Effectiveness.  This Agreement shall become effective upon
the execution of a counterpart hereof by each of the parties hereto and receipt
by Administrative Borrower and Administrative Agent of written or telephonic
notification of such execution and authorization of delivery thereof.

12.22      Patriot Act.  Each Lender and Administrative Agent (for
itself and not on behalf of any Lender) hereby notifies each Borrower that
pursuant to the requirements of the Patriot Act, it is required to obtain,
verify and record information that identifies such Borrower, which information
includes the name and address of such Borrower and other information that will
allow such Lender or Administrative Agent, as applicable, to identify such
Borrower in accordance with the Patriot Act.

12.23      Disclosure.  Each Credit Party and each Lender hereby
acknowledges and agrees that Administrative Agent and/or its Affiliates and
Related Funds from time to time may hold investments in, and make other loans
to, or have other relationships with any of the Credit Parties and their
respective Affiliates.  In addition, each
Credit Party and each Lender hereby acknowledges that that the Administrative
Agent and/or affiliates of the Administrative Agent and/or its Related Funds
have also purchased certain equity interests in the Company.

12.24      Company as Agent
for Borrowers.  Each Borrower
hereby irrevocably appoints the Company as the borrowing agent and
attorney-in-fact for the Borrowers (the “Administrative Borrower”) which
appointment shall remain in full force and effect unless and until the Agents
shall have received prior written notice signed by all of the Borrowers that
such appointment has been revoked and that another Borrower has been appointed
Administrative Borrower.  Each Borrower
hereby irrevocably appoints and authorizes the Administrative Borrower
(i) to provide to the Agents and receive from the Agents all notices with
respect to Loans obtained for the benefit of any Borrower and all other notices
and instructions under this Agreement and (ii) to take such action as the
Administrative Borrower deems appropriate on its behalf to obtain Loans and to
exercise such other powers as are reasonably incidental thereto to carry out
the purposes of this Agreement.  It is
understood that the handling of the Loan

 114
 

 

Accounts and Collateral
of the Borrowers in a combined fashion, as more fully set forth herein, is done
solely as an accommodation to the Borrowers in order to utilize the collective
borrowing powers of the Borrowers in the most efficient and economical manner
and at their request, and that neither the Agents nor the Lenders shall incur
liability to the Borrowers as a result hereof. 
Each of the Borrowers expects to derive benefit, directly or indirectly,
from the handling of the Loan Accounts and the Collateral in a combined fashion
since the successful operation of each Borrower is dependent on the continued
successful performance of the integrated group. 
To induce the Agents and the Lenders to do so, and in consideration
thereof, each of the Borrowers hereby jointly and severally agrees to indemnify
the Indemnitees and hold the Indemnitees harmless against any and all
liability, expense, loss or claim of damage or injury, made against such
Indemnitee by any of the Borrowers or by any third party whosoever, arising
from or incurred by reason of (a) the handling of the Loan Accounts and
Collateral of the Borrowers as herein provided, (b) the Agents and the
Lenders relying on any instructions of the Administrative Borrower, or
(c) any other action taken by any Agent or any Lender hereunder or under
the other Credit Documents. 
Notwithstanding the foregoing, the Credit Parties shall not have any
obligation to any Indemnitee under this Section 12.24 for any liability,
expense, loss or claim of damage or injury which is caused by the gross
negligence or willful misconduct of such Indemnitee, as determined by a final
judgment of a court of competent jurisdiction.

12.25      Appointment for
Perfection.  Each Lender
hereby appoints each other Lender as its agent for the purpose of perfecting
Liens, for the benefit of Administrative Agent and the Lenders, in assets
which, in accordance with Article 9 of the UCC or any other applicable law
can be perfected only by possession. 
Should any Lender (other than Administrative Agent) obtain possession of
any such Collateral, such Lender shall notify Administrative Agent thereof,
and, promptly upon Administrative Agent’s request therefore shall deliver such
Collateral to Administrative Agent or otherwise deal with such Collateral in
accordance with Administrative Agent’s instructions.

12.26      Advertising and
Publicity.  No Credit Party
shall, nor shall it permit any of its Subsidiaries to, issue or disseminate to
the public (by advertisement, including without limitation any “tombstone”
advertisement, press release or otherwise), submit for publication or otherwise
cause or seek to publish any information describing the credit or other
financial accommodations made available by Lenders pursuant to this Agreement
and the other Credit Documents without the prior written consent of
Administrative Agent.  Nothing in the
foregoing shall be construed to prohibit any Credit Party from making any
submission or filing which it is required to make by applicable law or pursuant
to judicial process; provided, that, (i) such filing or submission
shall contain only such information as is necessary to comply with applicable
law or judicial process and (ii) unless specifically prohibited by
applicable law or court order, Administrative Borrower shall promptly notify
Administrative Agent of the requirement to make such submission or filing and
provide Administrative Agent with a copy thereof.

 115

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be duly executed and delivered by their respective officers
thereunto duly authorized as of the date first written above.

	
  

  	
   

  
	
   

  	
  BORROWERS

  
	
   

  	
   

  
	
   

  	
  GRANITE BROADCASTING

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/  Lawrence
  I. Wills

  
	
   

  	
   

  	
   

  	
  Name: Lawrence I. Wills

  
	
   

  	
   

  	
   

  	
  Title: Senior Vice President — Chief Financial
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  KBWB LICENSE, INC.

  
	
   

  	
  KBWB, INC.

  
	
   

  	
  WEEK-TV LICENSE, INC.,

  
	
   

  	
  WXON LICENSE, INC.

  
	
   

  	
  WXON, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/  Lawrence I. Wills

  
	
   

  	
     

  	
   

  	
  Name: Lawrence I. Wills

  
	
   

  	
     

  	
   

  	
  Title: Vice President

  

 Credit Agreement
 

 

 

	
  

  	
   

  	
   

  	
   

  
	
   

  	
  SILVER POINT FINANCE, LLC,

  
	
   

  	
   

  
	
   

  	
  as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:   

  	
   

  	
  /s/ Richard Petrilli

  
	
   

  	
   

  	
   

  	
  Name: Richard Petrilli

  
	
   

  	
   

  	
   

  	
  Title: Authorized Signatory

  
	
   

  	
   

  	
   

  	
   

  

 Credit Agreement
 

 

 

	
  

  	
   

  
	
   

  	
  SPCP GROUP III, LLC,

  
	
   

  	
   

  
	
   

  	
  as Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:   

  	
   

  	
  /s/ Richard Petrilli

  
	
   

  	
   

  	
   

  	
  Name: Richard Petrilli

  
	
   

  	
   

  	
   

  	
  Title: Authorized Signatory

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SPCP GROUP, LLC,

  
	
   

  	
   

  
	
   

  	
  as Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:   

  	
   

  	
  /s/ Richard Petrilli

  
	
   

  	
   

  	
   

  	
  Name: Richard Petrilli

  
	
   

  	
   

  	
   

  	
  Title: Authorized Signatory

  

 

 Credit Agreement

 

APPENDIX A

TO CREDIT
AGREEMENT

Loan Commitments

	
  Lender

  	
  

  Loan Commitment

  	
  Pro

  Rata Share

  
	
  SPCP Group III,
  LLC

  	
  2,500,000

  	
  10%

  
	
  SPCP Group, LLC

  	
  22,500,000

  	
  90%

  
	
  Total

  	
  $25,000,000.00

  	
  100%

  

 

 Appendix A-1

 

APPENDIX B

TO CREDIT
AGREEMENT

Notice
Addresses

TO ANY CREDIT PARTY

767 Third Avenue, 34th Floor 

New York, New York 10017

Attention:  Lawrence I. Wills

Telecopier:  (212) 826-2858

in each case, with a copy
to:

Akin Gump Strauss Hauer & Feld LLP

1333 New Hampshire Avenue, N.W. Washington, DC 20036-1564 

Attention:  Russell Parks

Telecopier:  (202) 887-4288

 Appendix B
 

 

 

SILVER POINT FINANCE, LLC

as Administrative Agent
and Collateral Agent

Silver Point Finance,
LLC, 

as Administrative Agent and Collateral Agent

Two Greenwich Plaza, 1st
Floor

Greenwich, CT 06830

 Appendix B

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