Document:

Exhibit
4.2

 

FIRST SUPPLEMENTAL INDENTURE

 

Dated as of August 17, 2010

 

to

 

INDENTURE

 

Dated as of August 17, 2010

 

Between

 

DIRECTV HOLDINGS LLC,

 

and

 

DIRECTV FINANCING CO., INC.,

as Issuers,

 

THE GUARANTORS PARTY HERETO

 

and

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

 

as Trustee

 

 

3.125% Senior Notes due
2016

4.600% Senior Notes due
2021

6.000% Senior Notes due 2040

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE 1. DEFINITIONS

  	
  2

  
	
   

  	
   

  
	
  Section 1.1.

  	
  Definition of Terms

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2. TERMS AND CONDITIONS
  OF NOTES

  	
  2

  
	
   

  	
   

  
	
  Section 2.1.

  	
  Designation and Principal Amount

  	
  2

  
	
  Section 2.2.

  	
  Maturity

  	
  3

  
	
  Section 2.3.

  	
  Further Issues

  	
  3

  
	
  Section 2.4.

  	
  Payment

  	
  3

  
	
  Section 2.5.

  	
  Global Securities

  	
  3

  
	
  Section 2.6.

  	
  Interest

  	
  3

  
	
  Section 2.7.

  	
  Authorized Denominations

  	
  4

  
	
  Section 2.8.

  	
  Redemption and Sinking Fund

  	
  4

  
	
  Section 2.9.

  	
  Ranking

  	
  9

  
	
  Section 2.10.

  	
  Appointments

  	
  9

  
	
  Section 2.11.

  	
  Defeasance

  	
  9

  
	
  Section 2.12.

  	
  Guarantees

  	
  9

  
	
  Section 2.13.

  	
  Other Modifications to Indenture

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3. FORM OF
  NOTES

  	
  11

  
	
   

  	
   

  
	
  Section 3.1.

  	
  Form of Notes

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4. ORIGINAL ISSUE OF
  NOTES

  	
  11

  
	
   

  	
   

  
	
  Section 4.1.

  	
  Original Issue of Notes

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5. MISCELLANEOUS

  	
  12

  
	
   

  	
   

  
	
  Section 5.1.

  	
  Ratification of Indenture

  	
  12

  
	
  Section 5.2.

  	
  Trustee Not Responsible for Recitals

  	
  12

  
	
  Section 5.3.

  	
  Governing Law

  	
  12

  
	
  Section 5.4.

  	
  Separability

  	
  12

  
	
  Section 5.5.

  	
  Counterparts

  	
  12

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A – Form of 3.125% 2016 Notes

  	
  A-1

  
	
   

  	
   

  
	
  EXHIBIT B – Form of 4.600% 2021 Notes

  	
  B-1

  
	
   

  	
   

  
	
  EXHIBIT C – Form of 6.000% 2040 Notes

  	
  C-1

  
	
   

  	
   

  
	
  EXHIBIT D – Form of Notation of
  Guarantee

  	
  D-1

  

 

i

 

FIRST SUPPLEMENTAL INDENTURE, dated as of August 17,
2010 (this “Supplemental Indenture”), by and among DIRECTV Holdings LLC
(the “Company” or an “Issuer”), a Delaware limited liability
company, DIRECTV Financing Co., Inc. (“DIRECTV Financing” or an “Issuer”
and together with the Company, the “Issuers”), each of the Guarantors
listed on the signature page hereto (together with any additional
Subsidiary of the Company that becomes a Guarantor of the Notes (as defined
below) following the date hereof, the “Guarantors”) and THE BANK OF NEW
YORK MELLON TRUST COMPANY, N.A., a national banking association duly organized
and existing under the laws of the United States, as Trustee (the “Trustee”).

 

RECITALS

 

WHEREAS, the Issuers
and the Guarantors have executed and delivered the Indenture, dated as of August 17,
2010, to the Trustee (the “Indenture”), to provide for the issuance of
the Issuers’ debt securities (the “Securities”), to be issued in one or
more series;

 

WHEREAS, pursuant to
the terms of the Indenture, the Issuers desire to provide for the establishment
of three new series of their Securities under the Indenture to be known as its “3.125%
Senior Notes due 2016” (the “3.125% 2016 Notes”), “4.600% Senior Notes
due 2021” (the “4.600% 2021 Notes”) and “6.000% Senior Notes due 2040”
(the “6.000% 2040 Notes” and, together with the 3.125% 2016 Notes and
the 4.600% 2021 Notes, the “Notes”), the form and substance and the
terms, provisions and conditions thereof to be set forth as provided in the
Indenture and this Supplemental Indenture;

 

WHEREAS, each of the Guarantors desire to provide for
Guarantees of each series of Notes on the terms set forth in Article XV of
the Indenture;

 

WHEREAS, the Board of
Directors of each of the Issuers by duly adopted resolutions has authorized the
proper officers of the Issuers to, among other things, determine the terms of
the Securities to be issued under the Indenture and execute any and all
appropriate documents necessary or appropriate to effect each such issuance;

 

WHEREAS, this
Supplemental Indenture is being entered into pursuant to the provisions of Section 901(8) of
the Indenture;

 

WHEREAS, the Issuers have requested that the Trustee
execute and deliver this Supplemental Indenture; and

 

WHEREAS, all things necessary to make this Supplemental
Indenture a valid agreement of each of the Issuers and the Guarantors, in
accordance with its terms, and to make the Notes, when executed by the Issuers
and authenticated and delivered by the Trustee, the valid obligations of the
Issuers and to make the Guarantees, when the notations of Guarantee to be
attached to each Note are executed by the Guarantors and delivered by the
Trustee, the valid obligations of the Guarantors have, in each case, been
performed, and the execution and delivery of this Supplemental Indenture has
been duly authorized in all respects;

 

 

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

 

For
and in consideration of the premises and the purchase of the Notes by the
Holders thereof, and for the purpose of setting forth, as provided in the
Indenture, the forms and terms of the Notes, the Issuers and the Guarantors
covenant and agree, with the Trustee, as follows:

 

ARTICLE 1.

 

DEFINITIONS

 

Section 1.1.            Definition of Terms.  Unless the context otherwise requires:

 

(a)           each capitalized term
defined in the Indenture and not defined herein has the same meaning provided
in the Indenture when used in this Supplemental Indenture;

 

(b)           the singular includes the
plural, and vice versa; and

 

(c)           headings are for convenience
of reference only and do not affect interpretation.

 

ARTICLE 2.

 

TERMS AND CONDITIONS OF NOTES

 

Section 2.1.            Designation and Principal
Amount.

 

(a)           There is hereby authorized
and established a series of Securities under the Indenture, designated as the “3.125%
Senior Notes due 2016,” which is initially limited in aggregate principal
amount to $750,000,000 (except upon registration of transfer of, or in exchange
for, or in lieu of, other 3.125% 2016 Notes pursuant to Section 304, 305,
306, 906 or 1107 of the Indenture and except for any Securities which, pursuant
to Section 303 of the Indenture, are deemed never to have been
authenticated and delivered).

 

(b)           There is hereby authorized
and established a series of Securities under the Indenture, designated as the “4.600%
Senior Notes due 2021,” which is initially limited in aggregate principal
amount to $1,000,000,000 (except upon registration of transfer of, or in
exchange for, or in lieu of, other 4.600% 2021 Notes pursuant to Section 304,
305, 306, 906 or 1107 of the Indenture and except for any Securities which,
pursuant to Section 303 of the Indenture, are deemed never to have been
authenticated and delivered).

 

(c)           There is hereby authorized
and established a series of Securities under the Indenture, designated as the “6.000%
Senior Notes due 2040,” which is initially limited in aggregate principal
amount to $1,250,000,000 (except upon registration of transfer of, or in
exchange for, or in lieu of, other 6.000% 2040 Notes pursuant to Section 304,
305, 306, 906 or 1107 of the Indenture and except for any Securities which,
pursuant to Section 303 of the Indenture, are deemed never to have been
authenticated and delivered).

 

2

 

Section 2.2.            Maturity.

 

(a)           The Stated Maturity of
principal of the 3.125% 2016 Notes shall be February 15, 2016.

 

(b)           The Stated Maturity of
principal of the 4.600% 2021 Notes shall be February 15, 2021.

 

(c)           The Stated Maturity of principal
of the 6.000% 2040 Notes shall be August 15, 2040.

 

Section 2.3.            Further Issues.  The Company may at any time and from time to
time, without the consent of the Holders of any series of the Notes, issue
additional Notes of any series.  Any such
additional Notes shall have the same ranking, interest rate, maturity date and
other terms as the relevant series of the Notes.  Any such additional notes of a series,
together with the Notes of the relevant series herein provided for, shall
constitute a single series of Securities under the Indenture.

 

Section 2.4.            Payment.  Principal of and interest on the Notes shall
be payable in U.S. dollars in immediately available funds at the office or
agency of the Company maintained for such purpose in New York, New York, which
shall initially be at an office of the Trustee located at 700 South Flower
Street, Suite 500, Los Angeles, CA 90017, Attention:  Corporate Unit; provided, however,
that payment of interest may be made at the option of the Company by check
mailed to the Holder at such address as shall appear in the Security Register
at the close of business on the Record Date for such Holder or by wire transfer
to an account appropriately designated by the Holder to the Company and the
Trustee; and provided, further, that the Company will pay
principal of and interest on, the Notes in global form registered in the name
of or held by The Depository Trust Company (“DTC”) or such other
Depositary as any Officer of the Company may from time to time designate, or
its respective nominee, by wire in immediately available funds to such
Depositary or its nominee, as the case may be, as the registered holder of such
Notes in global form.

 

Section 2.5.            Global Securities.  Upon the original issuance, the Notes will be
represented by Global Securities registered in the name of Cede & Co.,
the nominee of DTC.  The Company will
deposit the Global Securities with DTC or its custodian and register the Global
Securities in the name of Cede & Co.

 

Section 2.6.            Interest.

 

(a)           The 3.125% 2016 Notes will
bear interest (computed on the basis of a 360-day year consisting of twelve
30-day months) from August 17, 2010 at the rate of 3.125% per annum,
payable semi-annually in arrears. 
Interest payable on each Interest Payment Date will include interest
accrued from August 17, 2010, or from the most recent Interest Payment
Date to which interest has been paid or duly provided for.  The Interest Payment Dates on which such
interest shall be payable are February 15 and August 15, commencing
on February 15, 2011; and the Record Date for the interest payable on any
Interest Payment Date is the close of business on February 1 or August 1,
as the case may be, next preceding the relevant Interest Payment Date.

 

3

 

(b)           The 4.600% 2021 Notes will
bear interest (computed on the basis of a 360-day year consisting of twelve
30-day months) from August 17, 2010 at the rate of 4.600% per annum,
payable semi-annually in arrears. 
Interest payable on each Interest Payment Date will include interest
accrued from August 17, 2010, or from the most recent Interest Payment
Date to which interest has been paid or duly provided for.  The Interest Payment Dates on which such
interest shall be payable are February 15 and August 15, commencing
on February 15, 2011; and the Record Date for the interest payable on any
Interest Payment Date is the close of business on February 1 or August 1,
as the case may be, next preceding the relevant Interest Payment Date.

 

(c)           The 6.000% 2040 Notes will
bear interest (computed on the basis of a 360-day year consisting of twelve
30-day months) from August 17, 2010 at the rate of 6.000% per annum,
payable semi-annually in arrears. 
Interest payable on each Interest Payment Date will include interest
accrued from August 17, 2010, or from the most recent Interest Payment
Date to which interest has been paid or duly provided for.  The Interest Payment Dates on which such
interest shall be payable are February 15 and August 15, commencing
on February 15, 2011; and the Record Date for the interest payable on any
Interest Payment Date is the close of business on February 1 or August 1,
as the case may be, next preceding the relevant Interest Payment Date.

 

Section 2.7.            Authorized Denominations.  The Notes shall be issuable in denominations
of $2,000 and integral multiples of $1,000 in excess thereof.

 

Section 2.8.            Redemption and Sinking Fund.

 

(a)           Sinking Fund.  The Notes shall not be entitled to the
benefit of any sinking fund.

 

(b)           Rights of Holders to Require
Repurchase of Notes.  Upon the
occurrence of a Change of Control Triggering Event with respect to a series of
Notes, the Company shall make an offer (a “Change of Control Offer”) to
each Holder of Notes of such series to repurchase all or any part (equal to
$1,000 or an integral multiple thereof) of such Holder’s Notes of such series
at a purchase price equal to 101% of the aggregate principal amount thereof,
together with accrued and unpaid interest thereon to the date of repurchase
(the “Change of Control Payment”). 
Within 30 days following any Change of Control Triggering Event, the
Company shall mail a notice to each Holder of Notes of the applicable series
stating:

 

(i)            that the Change of Control
Offer is being made pursuant to this Section 2.8(b);

 

(ii)           the purchase price and the
purchase date, which shall be no earlier than 30 days nor later than
45 days after the date such notice is mailed (the “Change of Control
Payment Date”);

 

4

 

(iii)          that any Notes not tendered
will continue to accrue interest in accordance with the terms hereof;

 

(iv)          that, unless the Company
defaults in the payment of the Change of Control Payment, all Notes accepted
for payment pursuant to the Change of Control Offer shall cease to accrue
interest after the Change of Control Payment Date;

 

(v)           that Holders will be
entitled to withdraw their election if the Paying Agent receives, not later
than the close of business on the second Business Day preceding the Change of
Control Payment Date, a telegram, telex, facsimile transmission or letter
setting forth the name of the Holder, the principal amount of Notes delivered
for purchase, and a statement that such Holder is unconditionally withdrawing
its election to have such Notes purchased;

 

(vi)          that Holders whose Notes are
being purchased only in part will be issued new Notes of such series equal in
principal amount to the unpurchased portion of the Notes surrendered, which
unpurchased portion must be equal to $2,000 in principal amount or an integral
multiple of $1,000 in excess thereof, and

 

(vii)         any other information
material to such Holder’s decision to tender Notes.

 

For
purposes of this Section 2.8(b):

 

“Capital Stock” means any and all shares, interests,
participations, rights or other equivalents, however designated, of corporate
stock or partnership or membership interests, whether common or preferred.

 

“Change of Control” means the occurrence of any one of the
following:

 

(1)           the consummation of any transaction (including
without limitation, any merger or consolidation) the result of which is that
any Person (including any “person” (as that term is used in Section 13(d)(3) of
the Exchange Act)) other than a Parent Company becomes the “beneficial owner”
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or
indirectly, of more than 50% of the Company’s outstanding Voting Stock,
measured by voting power rather than number of shares;

 

(2)           the first day on which the majority of the members
of the Company’s Board of Directors cease to be Continuing Directors; or

 

(3)           the adoption of a plan relating to the liquidation
or dissolution of the Company.

 

“Change of Control Triggering Event” means the occurrence of
both a Change of Control and a Ratings Decline.

 

5

 

“Continuing Director” means, as of any date of determination,
any member of the Company’s Board of Directors who:

 

(1)           was a member of such Board of Directors on the date
of this Supplemental Indenture; or

 

(2)           was nominated for election or elected to such Board
of Directors with the approval of a majority of the Continuing Directors who
were members of such Board of Directors at the time of such nomination or
election.

 

“Fitch” means Fitch Inc., a subsidiary of Fimalac, S.A., and its
successors.

 

“Investment Grade” means a rating of Baa3 or better by Moody’s
(or its equivalent under any successor rating category of Moody’s); a rating of
BBB- or better by S&P (or its equivalent under any successor rating category
of S&P); and a rating of BBB- or better by Fitch (or its equivalent under
any successor rating category of Fitch). 
In the event that the Company shall select any other Rating Agency, the
equivalent of such ratings by such Rating Agency shall be used.

 

“Moody’s” means Moody’s Investors Service, Inc., and its
successors.

 

“Parent Company” means each of (a) DIRECTV and (b) any
direct or indirect Subsidiary of Parent that owns any of the Company’s Capital
Stock.

 

“Rating Agency” means each of Moody’s, S&P and Fitch, provided,
that if any of Moody’s, S&P and Fitch ceases to provide rating services to
issuers or investors, the Company may appoint a replacement for such Rating
Agency that is reasonably acceptable to the Trustee.

 

“Ratings Decline” means within 60 days after the earlier of, (i) the
occurrence of a Change of Control or (ii) public notice of the occurrence
of a Change of Control or the intention by the Company or any Parent Company to
effect a Change of Control (which period shall be extended so long as the
rating of the Notes is under publicly announced consideration for a possible
downgrade by any of the Rating Agencies) (the “Trigger Period”), the
rating of the Notes shall be reduced by at least two Rating Agencies and the
Notes shall be rated below Investment Grade by each of the Rating
Agencies.  Unless at least two of the
three Rating Agencies are providing a rating for the Notes at the commencement
of any Trigger Period, the Notes will be deemed to have had a Ratings Decline
to below Investment Grade by at least two of the three Rating Agencies during
that Trigger Period.

 

“S&P” means Standard & Poor’s Rating Services, a
division of The McGraw-Hill Companies, Inc., and its successors.

 

“Voting
Stock” with respect to any Person, means securities of any class of Capital
Stock of such Person entitling the holders thereof (whether at all times or
only so long as no senior class of stock or other relevant equity interest has
voting power by reason of any contingency) to vote in the election of members
of the Board of Directors of such Person.

 

6

 

The
Company will not be required to make a Change of Control Offer following a
Change of Control Triggering Event if a third party makes a Change of Control
Offer in the manner, at the times and otherwise in compliance with the
requirements set forth above and purchases all Notes validly tendered and not
withdrawn under such Change of Control Offer. 
Notwithstanding anything to the contrary herein, a Change of Control
Offer may be made in advance of a Change of Control Triggering Event,
conditional upon such Change of Control, if a definitive agreement is in place
for the Change of Control at the time of making the Change of Control Offer.

 

The
Company will comply with the requirements of Rule 14e-1 under the Exchange
Act and any other securities laws and regulations thereunder to the extent such
laws and regulations are applicable in connection with the repurchase of the
Notes required in the event of a Change of Control Triggering Event.

 

To
the extent not inconsistent with the foregoing, the procedures in connection
with the repurchase of Notes pursuant to a Change of Control Offer shall be
governed by Article XIV of the Indenture except that in lieu of the time periods
set forth in the second sentence of Section 1403, the Holders of Notes
shall submit their Notes for payment in accordance with the Change of Control
Offer.

 

(c)           Rights of Issuers to Redeem
Notes.

 

(i)            At any time and from time to
time the Company may redeem all or any portion of the Notes of any series
outstanding at a Redemption Price equal to the greater of:

 

(x)            100% of the
aggregate principal amount of such Notes to be redeemed, and

 

(y)           an amount equal
to the sum of the present values of the remaining scheduled payments of
principal of and interest on such Notes to be redeemed (excluding accrued and
unpaid interest to the Redemption Date and subject to the right of Holders on
the relevant Record Date to receive interest due on the relevant Interest
Payment Date) discounted from their scheduled date of payment to the Redemption
Date on a semi-annual basis (assuming a 360-day year consisting of twelve
30-day months) using a discount rate equal to (i) the Treasury Rate plus
25 basis points in the case of the 3.125% 2016 Notes, (ii) the Treasury Rate
plus 30 basis points in the case of the 4.600% 2021 Notes and (iii) the
Treasury Rate plus 35 basis points in the case of the 6.000% 2040 Notes,

 

plus,
in each of the above cases, accrued and unpaid interest, if any, to such
Redemption Date.

 

7

 

For
purposes of this clause (c)(i):

 

“Comparable Treasury Issue” means, the United States Treasury
security selected by an Independent Investment Banker as having a maturity
comparable to the remaining term (“Remaining Life”) of a Note being
redeemed that would be utilized, at the time of selection and in accordance
with customary financial practice, in pricing new issues of corporate debt
securities of comparable maturity to the Remaining Life of such Notes.

 

“Comparable Treasury Price” means, with respect to any
Redemption Date for any Note:  (1) the
average of the Reference Treasury Dealer Quotations for that Redemption Date,
after excluding the highest and lowest of four such Reference Treasury Dealer
Quotations; or (2) if the Trustee is given fewer than four Reference
Treasury Dealer Quotations, the average of all quotations obtained by the
Trustee.

 

“Independent Investment Banker” means one of the Reference
Treasury Dealers, to be appointed by the Company.

 

“Reference Treasury Dealer” means four primary U.S. Government
securities dealers to be selected by the Company.

 

“Reference Treasury Dealer Quotations” means, with respect to
each Reference Treasury Dealer and any Redemption Date for any Note, the
average, as determined by the Trustee, of the bid and asked prices for the
Comparable Treasury Issue, expressed in each case as a percentage of its
principal amount, quoted in writing to the Trustee by such Reference Treasury
Dealer at 3:00 p.m., New York City time, on the third Business Day
preceding such Redemption Date.

 

“Treasury Rate” means, at the time of computation, (1) the
semi-annual equivalent yield to maturity of the United States Treasury
Securities with a constant maturity (as compiled and published in the most
recent Federal.  Reserve Statistical
Release H.15(519) which has become publicly available at least two Business
Days prior to the Redemption Date or, if such Statistical Release is no longer
published, any publicly available source of similar market data) for the
maturity corresponding to the Comparable Treasury Issue; provided, however,
that if no maturity is within three months before or after the Stated Maturity
for the Notes, yields for the two published maturities most closely
corresponding to the Comparable Treasury Issue will be determined and the
Treasury Rate will be interpolated or extrapolated from those yields on a
straight line basis, rounding to the nearest month; or (2) if that
release, or any successor release, is not published during the week preceding
the calculation date or does not contain such yields, the rate per annum equal
to the semiannual equivalent yield to maturity of the Comparable Treasury
Issue, calculated using a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price
for that Redemption Date.  The Treasury
Rate will be calculated on the third Business Day preceding the Redemption
Date.

 

8

 

(ii)           In addition to any redemption permitted pursuant to clause
(c)(i) above, at any time and from time to time on or after the date that
is three months prior to the Stated Maturity of such series of Notes, the
Company may redeem the 4.600% 2021 Notes and/or the 6.000% 2040 Notes, in whole
or in part, at a redemption price equal to 100% of the principal amount thereof
plus accrued and unpaid interest if any to the Redemption Date.

 

(iii)          To the extent not specified above, any redemption of any
Notes pursuant to this Section 2.8(c) shall be in accordance with the
provisions of Article XI of the Indenture.

 

Section 2.9.           Ranking.  The Notes shall be senior unsecured debt
securities of the Issuers, ranking equally with the Issuers’ other unsecured
and unsubordinated debt.

 

Section 2.10.         Appointments.  The Trustee will be the initial Security
Registrar and initial Paying Agent for the Notes.

 

Section 2.11.         Defeasance.  The Company may elect, at its option at any
time, pursuant to Section 1301 of the Indenture, to have Section 1302
or Section 1303 in the Indenture, or both, apply to the 3.125% 2016 Notes,
the 4.600% 2021 Notes or the 6.000% 2040 Notes, or all, or any principal amount
thereof.  Following the exercise of any
such option in accordance with such Section in the Indenture with respect
to any series of Notes, the provisions of Section 2.8(b) of this
Supplemental Indenture shall no longer be applicable to such series of Notes
(in addition to the other effects of compliance with such Sections set forth
therein).

 

Section 2.12.         Guarantees.  The Notes shall have the benefit of
Guarantees on the terms set forth in Article XV of the Indenture, from
each of the Guarantors.

 

Section 2.13.         Other Modifications to Indenture.

 

(a)           The following provisions shall apply with respect to
amendments without the consents of the Holders of Notes instead of the
provisions of Section 901 of the Indenture (and any reference to “Section 901”
of the Indenture that is contained in the Indenture as such reference relates
to any of the Notes shall be deemed to refer to this Section 2.13(a) of
this Supplemental Indenture):

 

Notwithstanding
Section 2.13(a) of the Supplemental Indenture, the Issuers, the
Guarantors and the Trustee may amend or supplement the Indenture, this
Supplemental Indenture, the Notes of any series and the Guarantees of such
Notes or any amended or supplemental indenture without the consent of any
Holder of a Note:

 

(i)            to cure any ambiguity, defect or inconsistency;

 

(ii)           to provide for uncertificated Notes or Guarantees in
addition to or in place of certificated Notes or Guarantees (provided
that the uncertificated Notes are issued in registered form for purposes of Section 163(f) of
the Code, or in a manner such that the uncertificated Notes are described in Section 163(f)(2)(B) of
the Code);

 

(iii)          to provide for the assumption of the obligations of the
Issuers or any Guarantor to the Holders of the Notes in the case of a merger or
consolidation pursuant to Article V or Article XV of the Indenture;

 

9

 

(iv)          to make any change that would provide any additional rights
or benefits to the Holders of the Notes or that does not adversely affect the
legal rights of any Holder of the Notes;

 

(v)           to comply with requirements of the Commission in order to
effect or maintain the qualification hereof under the Trust Indenture Act; or

 

(vi)          to provide for the issuance of additional Securities of any
series (including additional Notes) or to make any change that relates only to
a series of Securities other than any series of Notes.

 

(b)           The following provisions shall apply with respect to
amendments and waivers requiring the consents of the Holders of Notes instead
of the provisions of Section 902 of the Indenture (and any reference to “Section 902”
of the Indenture that is contained in the Indenture as such reference relates
to any of the Notes shall be deemed to refer to this Section 2.13(b) of
this Supplemental Indenture):

 

The
Issuers, the Guarantors and the Trustee may amend or supplement the Indenture
as it relates to any series of Notes, the Supplemental Indenture as it relates
to any series of Notes, the Notes of any series or the Guarantees of the Notes
of any series or any amended or supplemental indenture with the written consent
of the Holders of at least a majority of the aggregate principal amount of
Notes of such series then outstanding (including consents obtained in
connection with a tender offer or exchange offer for such Notes), and any
existing Default and its consequences or compliance with any provision hereof
or the Notes of such series may be waived with the consent of the Holders of a
majority of the aggregate principal amount of Notes of such series then
outstanding (including consents obtained in connection with a tender offer or
exchange offer for the Notes). 
Notwithstanding the foregoing, without the consent of each Holder
affected, an amendment or waiver may not (with respect to any Notes held by a
non-consenting Holder of Notes):

 

(i)            reduce the aggregate principal amount of Notes whose
Holders must consent to an amendment, supplement or waiver;

 

(ii)           reduce the principal of or change the Stated Maturity of
any Note or alter the provisions with respect to the amount of redemption
premium on the Notes;

 

(iii)          reduce the rate of or change the time for payment of
interest on any Note;

 

(iv)          waive a Default or Event of Default in the payment of
principal of or premium, if any, or interest on the Notes (except a rescission
of acceleration of the Notes by the Holders of at least a majority in aggregate
principal amount of the then outstanding Notes of such series and a waiver of
the payment default that resulted from such acceleration);

 

(v)           make any Note payable in money other than that stated in
the Notes;

 

10

 

(vi)          make any change in the provisions of any such agreement
relating to waivers of past Defaults or the rights of Holders of Notes to
receive payments of principal of or interest on the Notes;

 

(vii)         waive a redemption payment or mandatory redemption with
respect to any Note;

 

(viii)        amend, change or modify in any material
respect the obligation of the Company to make and consummate a Change of
Control Offer in the event of a Change of Control Triggering Event after such
Change of Control Triggering Event has occurred; or

 

(ix)          make any change in the foregoing amendment and waiver
provisions.

 

It
shall not be necessary for the consent of the Holders of Notes under this Section 2.13(b) to
approve the particular form of any proposed amendment or waiver, but it shall
be sufficient if such consent approves the substance thereof.

 

After
an amendment, supplement or waiver under this Section 2.13(b) becomes
effective, the Issuers shall mail to the Holders of Notes affected thereby a
notice briefly describing the amendment, supplement or waiver.  Any failure of the Issuers to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such amended or supplemental Indenture or waiver.

 

ARTICLE 3.

 

FORM OF NOTES

 

Section 3.1.           Form of Notes.  The Notes and the Trustee’s Certificate of
Authentication to be endorsed thereon are to be substantially in the forms set
forth in Exhibits A, B and C hereto.  The
form of notation of Guarantee to be attached to each Note shall be as set forth
in Exhibit D hereto.

 

ARTICLE 4.

 

ORIGINAL ISSUE OF NOTES

 

Section 4.1.           Original Issue of Notes.  The Notes may, upon execution of this
Supplemental Indenture, be executed by the Issuers and delivered to the Trustee
for authentication, and the Trustee shall, upon Issuer Order, authenticate and
deliver such Notes as in such Issuer Order provided.

 

11

 

ARTICLE 5.

 

MISCELLANEOUS

 

Section 5.1.           Ratification of Indenture.  The Indenture, as supplemented by this
Supplemental Indenture, is in all respects ratified and confirmed, and this
Supplemental Indenture shall be deemed part of the Indenture in the manner and
to the extent herein and therein provided; provided, however,
that the provisions of this Supplemental Indenture shall apply solely with
respect to the Notes.

 

Section 5.2.           Trustee Not Responsible for
Recitals.  The recitals herein
contained are made by the Issuers and the Guarantors and not by the Trustee,
and the Trustee assumes no responsibility for the correctness thereof.  The Trustee makes no representation as to the
validity or sufficiency of this Supplemental Indenture.

 

Section 5.3.           Governing Law.  This Supplemental Indenture and each Note
shall be governed by, and construed in accordance with, the laws of the State
of New York.

 

Section 5.4.           Separability.  In case any one or more of the provisions
contained in the Indenture, this Supplemental Indenture or the Notes shall for
any reason be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other
provisions of the Indenture, this Supplemental Indenture or the Notes, but the
Indenture, this Supplemental Indenture and the Notes shall be construed as if
such invalid or illegal or unenforceable provision had never been contained
herein or therein.

 

Section 5.5.           Counterparts.  This Supplemental Indenture may be executed
in any number of counterparts each of which shall be an original; but such
counterparts shall together constitute but one and the same instrument.

 

[Signature page follows]

 

12

 

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

 

	
   

  	
   

  	
  DIRECTV
  HOLDINGS LLC, as Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  J. William Little

  
	
   

  	
   

  	
   

  	
  Name:

  	
  J.
  William Little

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DIRECTV
  FINANCING CO., INC., as Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  J. William Little

  
	
   

  	
   

  	
   

  	
  Name:

  	
  J.
  William Little

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DIRECTV, INC.,
  as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  J. William Little

  
	
   

  	
   

  	
   

  	
  Name:

  	
  J.
  William Little

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DIRECTV
  CUSTOMER SERVICES, INC., as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  J. William Little

  
	
   

  	
   

  	
   

  	
  Name:

  	
  J.
  William Little

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DIRECTV
  MERCHANDISING, INC., as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  J. William Little

  
	
   

  	
   

  	
   

  	
  Name:

  	
  J.
  William Little

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President and Treasurer

  

 

13

 

	
   

  	
   

  	
  DIRECTV
  ENTERPRISES, LLC, as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  J. William Little

  
	
   

  	
   

  	
   

  	
  Name:

  	
  J.
  William Little

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DIRECTV
  OPERATIONS, LLC, as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  J. William Little

  
	
   

  	
   

  	
   

  	
  Name:

  	
  J.
  William Little

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LABC
  PRODUCTIONS, LLC, as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  J. William Little

  
	
   

  	
   

  	
   

  	
  Name:

  	
  J.
  William Little

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DIRECTV
  HOME SERVICES, LLC, as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  J. William Little

  
	
   

  	
   

  	
   

  	
  Name:

  	
  J.
  William Little

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DIRECTV PROGRAMMING HOLDINGS I, INC., as
  Guarantor 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  J. William Little

  
	
   

  	
   

  	
   

  	
  Name:

  	
  J.
  William Little

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DIRECTV PROGRAMMING HOLDINGS II, INC., as
  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  J. William Little

  
	
   

  	
   

  	
   

  	
  Name:

  	
  J.
  William Little

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  John A. (Alex) Briffett

  
	
   

  	
   

  	
   

  	
  Name:

  	
  John
  A. (Alex) Briffett

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Authorized
  Signatory

  

 

14

 

EXHIBIT A

 

[FORM OF NOTE]

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK,
NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF.

 

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
REFERRED TO HEREIN AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE
THEREOF.  THIS NOTE MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF
THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF
ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

DIRECTV HOLDINGS LLC

DIRECTV FINANCING CO., INC.

 

3.125% Senior Notes due 2016

 

CUSIP
No.:   

ISIN:

 

	
  No. A-[
  ]

  	
   

  	
  $[           ]

  

 

DIRECTV
HOLDINGS LLC, a limited liability company duly formed under the laws of the
State of Delaware (herein called an “Issuer” or the “Company,”
which term includes any successor Person under the Indenture hereinafter
referred to) and DIRECTV FINANCING 

 

A-1

 

CO., INC.,
a corporation duly incorporated under the laws of Delaware (herein called “DIRECTV
Financing” or an “Issuer” and, together with the Company, the “Issuers”),
for value received, hereby each jointly and severally promises to pay to CEDE &
CO., or registered assigns, the principal sum of
$[                 ]([                          ]
DOLLARS) on February 15, 2016, and to pay interest thereon from August 17,
2010 or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, semi-annually on February 15 and August 15
of each year, commencing on February 15, 2011, at the rate of 3.125% per
annum, until the principal hereof is paid or made available for payment; provided
that any principal and premium, and any such installment of interest, which is
overdue shall bear interest at the rate of 3.125% per annum (to the extent
permitted by applicable law), from the dates such amounts are due until they
are paid or made available for payment, and such interest shall be payable on
demand.  The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in such Indenture, be paid to the Person in whose name this Note (or
one or more Predecessor Securities) is registered at the close of business on
the Regular Record Date for such interest, which shall be the February 1
or August 1 (whether or not a Business Day), as the case may be, next
preceding such Interest Payment Date. 
Any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Note (or one or more
Predecessor Securities) is registered at the close of business on a “Special
Record Date” for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Notes of this series not
less than 10 days prior to such Special Record Date, or be paid at any time in
any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Notes of this series may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in the
Indenture.

 

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

 

Unless
the certificate of authentication hereon has been executed by the Trustee
referred to on the reverse hereof by manual signature, this Note shall not be
entitled to any benefit under the Indenture or be valid or obligatory for any
purpose.

 

A-2

 

IN
WITNESS WHEREOF, the Issuers have caused this Note to be duly executed.

 

Dated:  August 17, 2010

 

	
   

  	
   

  	
  DIRECTV
  HOLDINGS LLC, as Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  J.
  William Little

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DIRECTV
  FINANCING CO., INC., as Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  J.
  William Little

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President and Treasurer

  

 

A-3

 

This
Note is one of the Securities of the series designated therein referred to in
the within-mentioned Indenture.

 

Dated:  August 17, 2010

 

	
   

  	
  THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
   

  
	
   

  	
   

  	
  Name:
  

  	
  John
  A. (Alex) Briffett

  
	
   

  	
   

  	
  Title: 

  	
  Authorized Signatory

  

 

A-4

 

[REVERSE OF NOTE]

 

This
Note is one of a duly authorized issue of securities of the Issuers (herein
called the “Notes”), issued and to be issued in one or more series under
an Indenture, dated as of August 17, 2010 (as amended or modified from
time to time, the “Base Indenture”), and a supplemental indenture
relating to such series dated as of August 17, 2010 (as amended or
modified from time to time, the “Supplemental Indenture” and together
with the Base Indenture, the “Indenture”), between the Issuers, the
Guarantors and The Bank of New York Mellon Trust Company, N.A., as Trustee
(herein called the “Trustee,” which term includes any successor trustee
under the Indenture), and reference is hereby made to the Indenture for a
statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Notes are, and are to be,
authenticated and delivered.  This Note
is one of the series designated on the face hereof, such series initially
limited in aggregate principal amount to $750,000,000; provided that the
Company may at any time and from time to time, without the consent of any
Holder, issue additional Notes of this series.

 

The
Notes of this series may be required to be repurchased by Holders under the
circumstances provided in Section 2.8(b) of the Supplemental
Indenture and are redeemable at the option of the Company as provided in Section 2.8(c) of
the Supplemental Indenture.

 

The
Notes of this series are not entitled to the benefit of any sinking fund.

 

The
Indenture contains provisions for defeasance at any time of the entire
indebtedness of the Notes of this series or certain restrictive covenants and
Events of Default with respect to such Notes, in each case upon compliance with
certain conditions set forth in the Indenture.

 

If
an Event of Default with respect to Notes of this series shall occur and be
continuing, the principal of such Notes may be declared, or shall immediately
become, due and payable in the manner and with the effect provided in the
Indenture.

 

The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Issuers and
the Guarantors and the rights of the Holders of the Notes of each series to be
affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of a majority in aggregate principal amount of the
Notes at the time Outstanding of each series to be affected.  The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount
of the Notes of each series at the time Outstanding, on behalf of the Holders
of all Notes of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences.  Any such consent or
waiver by the Holders of Notes of this series shall be conclusive and binding
upon such Holders and upon all future Holders of this Note and of any Note
issued upon the registration of transfer hereof or in exchange herefor or in
lieu hereof, whether or not notation of such consent or waiver is made upon
this Note.

 

A-5

 

As
provided in and subject to the provisions of the Indenture, the Holders of the
Notes of this series shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Notes of this series, the Holders of not less than 25% in aggregate principal
amount of the Notes of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee and offered the Trustee reasonable indemnity, and
the Trustee shall not have received from the Holders of a majority in aggregate
principal amount of such Notes at the time Outstanding a direction inconsistent
with such request, and shall have failed to institute any such proceeding, for
60 days after receipt of such notice, request and offer of indemnity.  The foregoing shall not apply to any suit
instituted by the Holder of this Note for the enforcement of any payment of
principal hereof or any premium or interest hereon on or after the respective
due dates expressed herein.

 

No
reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligations of the Issuers, which are
absolute and unconditional, to pay the principal of and any premium and
interest on this Note at the times, place and rate, and in the coin or
currency, herein prescribed.

 

As
provided in the Indenture and subject to certain limitations therein set forth,
the transfer of this Note is registrable in the Security Register, upon
surrender of this Note for registration of transfer at the office or agency of
the Company in any place where the principal of and any premium and interest on
this Note are payable, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Notes of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees.

 

The
Notes of this series are issuable only in registered form without coupons in
denominations of $2,000 and integral multiples of $1,000 in excess thereof.  As provided in the Indenture and subject to
certain limitations therein set forth, Notes of this series are exchangeable
for a like principal amount of Notes of this series and of like tenor of a
different authorized denomination, as requested by the Holder surrendering the
same.

 

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

 

Prior
to due presentment of this Note for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Note is registered as the owner hereof for all purposes,
whether or not this Note be overdue, and neither the Company, the Trustee nor
any such agent shall be affected by notice to the contrary.

 

This
Note is a Global Security and is subject to the provisions of the Indenture
relating to Global Securities, including the limitations in Section 305
thereof on transfers and exchanges of Global Securities.

 

A-6

 

This
Note and the Indenture shall be governed by, and construed in accordance with,
the laws of the State of New York.

 

All
terms used in this Note which are defined in the Indenture shall have the
meanings assigned to them in the Indenture.

 

A-7

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If
you want to elect to have all or any part of this 3.125% 2016 Note purchased by
the Issuers pursuant to Section 2.8(b) of the Supplemental Indenture,
check the box below:

 

o                                    Section 2.8(b)

 

If
you want to have only part of the 3.125% 2016 Note purchased by the Issuers
pursuant to Section 2.8(b) of the Supplemental Indenture, state the
amount you elect to have purchased:

 

$

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on the face of

  
	
   

  	
   

  	
  this
  Note)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature
  Guarantee.

  	
   

  	
   

  

 

A-8

 

EXHIBIT B

 

[FORM OF NOTE]

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK,
NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE,
BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S
NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE
REFERRED TO ON THE REVERSE HEREOF.

 

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
REFERRED TO HEREIN AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE
THEREOF.  THIS NOTE MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF
THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF
ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

DIRECTV HOLDINGS LLC

DIRECTV FINANCING CO., INC.

 

4.600% Senior Notes due 2021

 

CUSIP
No.:  

ISIN:

 

	
  No. A-[
  ]

  	
  $[           ]

  

 

DIRECTV
HOLDINGS LLC, a limited liability company duly formed under the laws of the
State of Delaware (herein called an “Issuer” or the “Company,”
which term includes any successor Person under the Indenture hereinafter
referred to) and DIRECTV FINANCING 

 

B-1

 

CO., INC., a corporation duly
incorporated under the laws of Delaware (herein called “DIRECTV Financing”
or an “Issuer” and, together with the Company, the “Issuers”),
for value received, hereby each jointly and severally promises to pay to CEDE &
CO., or registered assigns, the principal sum of
$[                 ]([                          ]
DOLLARS) on February 15, 2021, and to pay interest thereon from August 17,
2010 or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, semi-annually on February 15 and August 15
of each year, commencing on February 15, 2011, at the rate of 4.600% per
annum, until the principal hereof is paid or made available for payment; provided
that any principal and premium, and any such installment of interest, which is
overdue shall bear interest at the rate of 4.600% per annum (to the extent
permitted by applicable law), from the dates such amounts are due until they
are paid or made available for payment, and such interest shall be payable on
demand.  The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as provided
in such Indenture, be paid to the Person in whose name this Note (or one or
more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest, which shall be the February 1 or August 1
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date.  Any such interest
not so punctually paid or duly provided for will forthwith cease to be payable
to the Holder on such Regular Record Date and may either be paid to the Person
in whose name this Note (or one or more Predecessor Securities) is registered
at the close of business on a “Special Record Date” for the payment of
such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Notes of this series not less than 10 days prior to such
Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Notes of this series may be listed, and upon such notice as may be required by
such exchange, all as more fully provided in the Indenture.

 

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

 

Unless
the certificate of authentication hereon has been executed by the Trustee
referred to on the reverse hereof by manual signature, this Note shall not be
entitled to any benefit under the Indenture or be valid or obligatory for any
purpose.

 

B-2

 

IN
WITNESS WHEREOF, the Issuers have caused this Note to be duly executed.

 

	
  Dated:
  August 17, 2010

  	
   

  
	
   

  	
   

  
	
   

  	
  DIRECTV
  HOLDINGS LLC, as Issuer

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:
  

  	
  J.
  William Little

  
	
   

  	
   

  	
  Title:
  

  	
  Senior
  Vice President and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DIRECTV
  FINANCING CO., INC., as Issuer

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:
  

  	
  J.
  William Little

  
	
   

  	
   

  	
  Title:
  

  	
  Senior
  Vice President and Treasurer

  

 

B-3

 

This
Note is one of the Securities of the series designated therein referred to in
the within-mentioned Indenture.

 

	
  Dated:
  August 17, 2010

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

B-4

 

[REVERSE OF NOTE]

 

This
Note is one of a duly authorized issue of securities of the Issuers (herein
called the “Notes”), issued and to be issued in one or more series under
an Indenture, dated as of August 17, 2010 (as amended or modified from
time to time, the “Base Indenture”), and a supplemental indenture
relating to such series dated as of August 17, 2010 (as amended or
modified from time to time, the “Supplemental Indenture” and together
with the Base Indenture, the “Indenture”), between the Issuers, the
Guarantors and The Bank of New York Mellon Trust Company, N.A., as Trustee
(herein called the “Trustee,” which term includes any successor trustee
under the Indenture), and reference is hereby made to the Indenture for a
statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Notes are, and are to be,
authenticated and delivered.  This Note
is one of the series designated on the face hereof, such series initially
limited in aggregate principal amount to $1,000,000,000; provided that
the Company may at any time and from time to time, without the consent of any
Holder, issue additional Notes of this series.

 

The
Notes of this series may be required to be repurchased by Holders under the
circumstances provided in Section 2.8(b) of the Supplemental
Indenture and are redeemable at the option of the Company as provided in Section 2.8(c) of
the Supplemental Indenture.

 

The
Notes of this series are not entitled to the benefit of any sinking fund.

 

The
Indenture contains provisions for defeasance at any time of the entire
indebtedness of the Notes of this series or certain restrictive covenants and
Events of Default with respect to such Notes, in each case upon compliance with
certain conditions set forth in the Indenture.

 

If
an Event of Default with respect to Notes of this series shall occur and be
continuing, the principal of such Notes may be declared, or shall immediately
become, due and payable in the manner and with the effect provided in the
Indenture.

 

The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Issuers and
the Guarantors and the rights of the Holders of the Notes of each series to be
affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of a majority in aggregate principal amount of the
Notes at the time Outstanding of each series to be affected.  The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount
of the Notes of each series at the time Outstanding, on behalf of the Holders
of all Notes of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences.  Any such consent or
waiver by the Holders of Notes of this series shall be conclusive and binding
upon such Holders and upon all future Holders of this Note and of any Note
issued upon the registration of transfer hereof or in exchange herefor or in
lieu hereof, whether or not notation of such consent or waiver is made upon
this Note.

 

B-5

 

As
provided in and subject to the provisions of the Indenture, the Holders of the
Notes of this series shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Notes of this series, the Holders of not less than 25% in aggregate principal
amount of the Notes of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee and offered the Trustee reasonable indemnity, and
the Trustee shall not have received from the Holders of a majority in aggregate
principal amount of such Notes at the time Outstanding a direction inconsistent
with such request, and shall have failed to institute any such proceeding, for
60 days after receipt of such notice, request and offer of indemnity.  The foregoing shall not apply to any suit
instituted by the Holder of this Note for the enforcement of any payment of
principal hereof or any premium or interest hereon on or after the respective
due dates expressed herein.

 

No
reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligations of the Issuers, which are
absolute and unconditional, to pay the principal of and any premium and
interest on this Note at the times, place and rate, and in the coin or currency,
herein prescribed.

 

As
provided in the Indenture and subject to certain limitations therein set forth,
the transfer of this Note is registrable in the Security Register, upon
surrender of this Note for registration of transfer at the office or agency of
the Company in any place where the principal of and any premium and interest on
this Note are payable, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Notes of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees.

 

The
Notes of this series are issuable only in registered form without coupons in
denominations of $2,000 and integral multiples of $1,000 in excess
thereof.  As provided in the Indenture
and subject to certain limitations therein set forth, Notes of this series are
exchangeable for a like principal amount of Notes of this series and of like
tenor of a different authorized denomination, as requested by the Holder
surrendering the same.

 

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

 

Prior
to due presentment of this Note for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Note is registered as the owner hereof for all purposes,
whether or not this Note be overdue, and neither the Company, the Trustee nor
any such agent shall be affected by notice to the contrary.

 

This
Note is a Global Security and is subject to the provisions of the Indenture
relating to Global Securities, including the limitations in Section 305
thereof on transfers and exchanges of Global Securities.

 

B-6

 

This
Note and the Indenture shall be governed by, and construed in accordance with,
the laws of the State of New York.

 

All
terms used in this Note which are defined in the Indenture shall have the
meanings assigned to them in the Indenture.

 

B-7

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If
you want to elect to have all or any part of this 4.600% 2021 Note purchased by
the Issuers pursuant to Section 2.8(b) of the Supplemental Indenture,
check the box below:

 

o       Section 2.8(b)

 

If
you want to have only part of the 4.600% 2021 Note purchased by the Issuers
pursuant to Section 2.8(b) of the Supplemental Indenture, state the
amount you elect to have purchased:

 

$

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on the face of

  
	
   

  	
   

  	
  this
  Note)

  

 

Signature
Guarantee.

 

B-8

 

EXHIBIT C

 

[FORM OF NOTE]

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK,
NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF.

 

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
REFERRED TO HEREIN AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE
THEREOF.  THIS NOTE MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF
THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF
ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

DIRECTV HOLDINGS LLC

DIRECTV FINANCING CO., INC.

 

6.000% Senior Notes due 2040

 

CUSIP
No.:  

ISIN:

 

	
  No. A-[
  ]

  	
   

  	
  $[           ]

  

 

DIRECTV
HOLDINGS LLC, a limited liability company duly formed under the laws of the
State of Delaware (herein called an “Issuer” or the “Company,”
which term includes any successor Person under the Indenture hereinafter
referred to) and DIRECTV FINANCING 

 

C-1

 

CO., INC.,
a corporation duly incorporated under the laws of Delaware (herein called “DIRECTV
Financing” or an “Issuer” and, together with the Company, the “Issuers”),
for value received, hereby each jointly and severally promises to pay to
CEDE & CO., or registered assigns, the principal sum of
$[                 ]([                          ]
DOLLARS) on August 15, 2040, and to pay interest thereon from
August 17, 2010 or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, semi-annually on February 15
and August 15 of each year, commencing on February 15, 2011, at the
rate of 6.000% per annum, until the principal hereof is paid or made available
for payment; provided that any principal and premium, and any such
installment of interest, which is overdue shall bear interest at the rate of
6.000% per annum (to the extent permitted by applicable law), from the dates
such amounts are due until they are paid or made available for payment, and
such interest shall be payable on demand. 
The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Note (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the February 1 or August 1 (whether or not a
Business Day), as the case may be, next preceding such Interest Payment Date.  Any such interest not so punctually paid or
duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this
Note (or one or more Predecessor Securities) is registered at the close of business
on a “Special Record Date” for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to Holders of Notes of
this series not less than 10 days prior to such Special Record Date, or be paid
at any time in any other lawful manner not inconsistent with the requirements
of any securities exchange on which the Notes of this series may be listed, and
upon such notice as may be required by such exchange, all as more fully
provided in the Indenture.

 

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

 

Unless
the certificate of authentication hereon has been executed by the Trustee
referred to on the reverse hereof by manual signature, this Note shall not be
entitled to any benefit under the Indenture or be valid or obligatory for any
purpose.

 

C-2

 

IN
WITNESS WHEREOF, the Issuers have caused this Note to be duly executed.

 

Dated:  August 17, 2010

 

	
   

  	
  DIRECTV
  HOLDINGS LLC, as Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:
  J. William Little

  
	
   

  	
   

  	
  Title:   Senior Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DIRECTV
  FINANCING CO., INC., as Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:
  J. William Little

  
	
   

  	
   

  	
  Title:   Senior Vice President and Treasurer

  

 

C-3

 

This
Note is one of the Securities of the series designated therein referred to in
the within-mentioned Indenture.

 

Dated:  August 17, 2010

	
   

  	
  THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

C-4

 

[REVERSE OF NOTE]

 

This
Note is one of a duly authorized issue of securities of the Issuers (herein
called the “Notes”), issued and to be issued in one or more series under
an Indenture, dated as of August 17, 2010 (as amended or modified from
time to time, the “Base Indenture”), and a supplemental indenture
relating to such series dated as of August 17, 2010 (as amended or
modified from time to time, the “Supplemental Indenture” and together
with the Base Indenture, the “Indenture”), between the Issuers, the
Guarantors and The Bank of New York Mellon Trust Company, N.A., as Trustee
(herein called the “Trustee,” which term includes any successor trustee
under the Indenture), and reference is hereby made to the Indenture for a
statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Notes are, and are to be,
authenticated and delivered.  This Note
is one of the series designated on the face hereof, such series initially
limited in aggregate principal amount to $1,250,000,000; provided that
the Company may at any time and from time to time, without the consent of any
Holder, issue additional Notes of this series.

 

The
Notes of this series may be required to be repurchased by Holders under the
circumstances provided in Section 2.8(b) of the Supplemental
Indenture and are redeemable at the option of the Company as provided in
Section 2.8(c) of the Supplemental Indenture.

 

The
Notes of this series are not entitled to the benefit of any sinking fund.

 

The
Indenture contains provisions for defeasance at any time of the entire
indebtedness of the Notes of this series or certain restrictive covenants and
Events of Default with respect to such Notes, in each case upon compliance with
certain conditions set forth in the Indenture.

 

If
an Event of Default with respect to Notes of this series shall occur and be
continuing, the principal of such Notes may be declared, or shall immediately
become, due and payable in the manner and with the effect provided in the
Indenture.

 

The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Issuers and
the Guarantors and the rights of the Holders of the Notes of each series to be
affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of a majority in aggregate principal amount of the
Notes at the time Outstanding of each series to be affected.  The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount
of the Notes of each series at the time Outstanding, on behalf of the Holders
of all Notes of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences.  Any such consent or
waiver by the Holders of Notes of this series shall be conclusive and binding
upon such Holders and upon all future Holders of this Note and of any Note
issued upon the registration of transfer hereof or in exchange herefor or in
lieu hereof, whether or not notation of such consent or waiver is made upon
this Note.

 

C-5

 

As
provided in and subject to the provisions of the Indenture, the Holders of the
Notes of this series shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Notes of this series, the Holders of not less than 25% in aggregate principal
amount of the Notes of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee and offered the Trustee reasonable indemnity, and
the Trustee shall not have received from the Holders of a majority in aggregate
principal amount of such Notes at the time Outstanding a direction inconsistent
with such request, and shall have failed to institute any such proceeding, for
60 days after receipt of such notice, request and offer of indemnity.  The foregoing shall not apply to any suit instituted
by the Holder of this Note for the enforcement of any payment of principal
hereof or any premium or interest hereon on or after the respective due dates
expressed herein.

 

No
reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligations of the Issuers, which are
absolute and unconditional, to pay the principal of and any premium and
interest on this Note at the times, place and rate, and in the coin or
currency, herein prescribed.

 

As
provided in the Indenture and subject to certain limitations therein set forth,
the transfer of this Note is registrable in the Security Register, upon
surrender of this Note for registration of transfer at the office or agency of
the Company in any place where the principal of and any premium and interest on
this Note are payable, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Notes of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees.

 

The
Notes of this series are issuable only in registered form without coupons in
denominations of $2,000 and integral multiples of $1,000 in excess
thereof.  As provided in the Indenture
and subject to certain limitations therein set forth, Notes of this series are
exchangeable for a like principal amount of Notes of this series and of like
tenor of a different authorized denomination, as requested by the Holder
surrendering the same.

 

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

 

Prior
to due presentment of this Note for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Note is registered as the owner hereof for all purposes,
whether or not this Note be overdue, and neither the Company, the Trustee nor
any such agent shall be affected by notice to the contrary.

 

This
Note is a Global Security and is subject to the provisions of the Indenture
relating to Global Securities, including the limitations in Section 305
thereof on transfers and exchanges of Global Securities.

 

C-6

 

This
Note and the Indenture shall be governed by, and construed in accordance with,
the laws of the State of New York.

 

All
terms used in this Note which are defined in the Indenture shall have the
meanings assigned to them in the Indenture.

 

C-7

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If
you want to elect to have all or any part of this 6.000% 2040 Note purchased by
the Issuers pursuant to Section 2.8(b) of the Supplemental Indenture,
check the box below:

 

o       Section 2.8(b)

 

If
you want to have only part of the 6.000% 2040 Note purchased by the Issuers
pursuant to Section 2.8(b) of the Supplemental Indenture, state the
amount you elect to have purchased:

 

$

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on the face of 

  
	
   

  	
   

  	
  this
  Note)

  

 

Signature
Guarantee.

 

C-8

 

EXHIBIT D

 

FORM OF NOTATION OF GUARANTEE

 

Each
of the undersigned and its successors under the Indenture, jointly and
severally with any other Guarantors, hereby irrevocably and unconditionally (i) guarantee
the due and punctual payment of the principal of, premium, if any, and interest
on the Notes, whether at maturity, by acceleration, redemption or otherwise,
the due and punctual payment of interest on the overdue principal of and
interest, if any, on the Notes, to the extent lawful, and the due and punctual
performance of all other obligations of DIRECTV Holdings LLC and DIRECTV
Financing Co., Inc. (together the “Issuers”) to the Holders or the
Trustee all in accordance with the terms set forth in Article XV of the
Indenture and (ii) in case of any extension of time of payment or renewal
of any Notes or any of such other obligations, guarantee that the same will be
promptly paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at stated maturity, by acceleration or
otherwise.  Capitalized terms used herein
have the meanings assigned to them in the Indenture and the Supplemental
Indenture unless otherwise indicated.

 

No
director, owner, officer, employee, incorporator or stockholder of any
Guarantor or any of its Affiliates, as such, shall have any liability for any
obligations of such Guarantor or any of its Affiliates under this guarantee by
reason of his or its status as such. 
This Guarantee shall be binding upon each Guarantor and its successors
and assigns and shall inure to the benefit of the successors and assigns of the
Trustee and the Holders and, in the event of any transfer or assignment of
rights by any Holder or the Trustee, the rights and privileges herein conferred
upon that party shall automatically extend to and be vested in such transferee
or assignee, all subject to the terms and conditions hereof.

 

This
Guarantee shall not be valid or obligatory for any purpose until the
certificate of authentication on the Note upon which this Guarantee is noted
shall have been executed by the Trustee under the Indenture by the manual
signature of one of its authorized officers.

 

THE
TERMS OF ARTICLE XV OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE.

 

This
Guarantee shall be governed by and construed in accordance with the laws of the
State of New York.

 

	
   

  	
  [NAME
  OF GUARANTOR]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

D-1EXHIBIT 10.1

 

HARDINGE INC.

EMPLOYMENT AGREEMENT

 

EMPLOYMENT
AGREEMENT dated as of September 1, 2010 (the “Agreement”), between HARDINGE INC., a New York corporation (the “Company”)
and JAMES P. LANGA (the “Executive”).

 

WHEREAS,
the Company desires to engage the Executive to provide services pursuant to the
terms of this Agreement and the Executive desires to accept such engagement.

 

NOW,
THEREFORE, in consideration of the covenants and agreements hereinafter set
forth, the parties hereto agree as follows:

 

1.             EFFECTIVENESS OF AGREEMENT AND
EFFECTIVE DATE

 

This
Agreement shall become effective as of the date hereof.  For purposes of this Agreement, the term “Effective
Date” shall mean September 1, 2010.

 

2.             EMPLOYMENT AND DUTIES

 

2.1           General.  The Company hereby employs the Executive as,
and the Executive agrees to serve as Vice President — Engineering, Quality and
Strategic Sourcing, upon the terms and conditions herein contained.  The Executive shall perform such duties and
services for the Company as may be designated from time to time by the Board of
Directors of the Company (the “Board”) or the Chief Executive Officer of
the Company.  The Executive agrees to
serve the Company faithfully and to the best of his ability under the direction
of the Board and the Chief Executive Officer of the Company.

 

2.2           Exclusive Services.  Except as may otherwise be approved in
advance by the Board or the Chief Executive Officer of the Company, the
Executive shall devote his full working time throughout the Employment Term (as
defined in Section 2.3) to the services required of him hereunder.  The Executive shall render his services
exclusively to the Company during the Employment Term, and shall use his best
efforts, judgment and energy to improve and advance the business and interests
of the Company in a manner consistent with the duties of his position.  During the Employment Term, the Executive
will not be employed with any other person or entity, or be self-employed,
without the prior written approval of the Board or the Chief Executive Officer
of the Company.

 

2.3           Term of Employment.  The Executive’s employment under this
Agreement shall commence as of the date hereof and shall terminate on the
earlier of (i) the second anniversary of the Effective Date or (ii) termination
of the Executive’s employment pursuant to this Agreement; provided, however,
that the term of the Executive’s employment shall be automatically extended
without further action of either party for additional one year periods unless
written notice of either party’s intention not to extend (a “Non-Renewal
Notice”) has been given to the other party hereto at least 60 days prior to
the expiration of the then 

 

 

effective
term.  The period commencing as of the
Effective Date and ending on the second anniversary of the Effective Date or
such later date to which the term of the Executive’s employment shall have been
extended is hereinafter referred to as the “Employment Term”.  Notwithstanding the foregoing, in the event
of a Change in Control (as defined in Section 5.6) occurring during the
Employment Term, the Employment Term shall be extended so that it terminates on
the second anniversary of the date of the Change in Control, provided, however,
the Employment Term will not be so extended if the Executive has given a Notice
of Non-Renewal prior to the occurrence of the Change of Control.

 

2.4           Reimbursement of Expenses.  Unless otherwise agreed to by the Executive
and the Company, the Company shall reimburse the Executive for reasonable
travel and other business expenses incurred by him in the fulfillment of his
duties hereunder upon presentation by the Executive of an itemized account of
such expenditures, in accordance with Company practices consistently applied.

 

3.             ANNUAL COMPENSATION

 

3.1           Base Salary.  From the Effective Date, the Executive shall
be entitled to receive a base salary (“Base Salary”) at a rate of
$185,915 per annum, payable in accordance with the Company’s payroll
practices.  Subject to the Executive’s
rights under Section 5.2, Base Salary is subject to increase or decrease,
from time to time, in the sole and absolute discretion of the Board.  Once changed, such amount shall constitute
the Executive’s annual Base Salary.

 

3.2           Annual Review.  The Executive’s Base Salary shall be reviewed
by the Board, based upon the Executive’s performance not less often than
annually.

 

3.3           Discretionary Bonus.  After the Effective Date, the Executive shall
be entitled to such bonus, if any, as may be awarded to the Executive from time
to time by the Board in the sole and absolute discretion of the Board.

 

4.             EMPLOYEE BENEFITS

 

The
Executive shall, during his employment under this Agreement, be included to the
extent eligible thereunder in all employee benefit plans, programs or
arrangements (including, without limitation, any plans, programs or
arrangements providing for retirement benefits, incentive compensation, profit
sharing, bonuses, disability benefits, health and life insurance, or vacation
and paid holidays) which shall be established by the Company for, or made
available to, its executives generally.

 

5.             TERMINATION OF EMPLOYMENT

 

5.1           Termination Events.

 

5.1.1.      By the Company.  The Company may terminate the Executive’s
employment at any time for Cause (as hereinafter defined), without Cause, or
upon the Executive’s Permanent Disability (as hereinafter defined).

 

2

 

5.1.2.      By the Executive.  The Executive may terminate his employment at
any time for Good Reason (as hereinafter defined) or without Good Reason.

 

5.2           Termination Without Cause;
Resignation for Good Reason.

 

5.2.1  Prior to a Change in Control.  If, prior to the expiration of the Employment
Term, the Executive’s employment is terminated by the Company without Cause, or
the Executive resigns from his employment hereunder for Good Reason, in either
case at any time prior to a Change in Control, the Company shall continue to
pay the Executive the Base Salary (at the rate in effect immediately prior to
such termination) for the greater of (i) 6 months or (ii) the
remainder of the Employment Term (such period being referred to hereinafter as
the “Severance Period”).  The
payments shall occur in installments in the same amount and at the same regular
payment intervals as the Executive’s Base Salary was being paid on the
Effective Date and such installments shall be deemed a series of separate
payments within the meaning of Treas. Reg. §1.409A-2(b)(2)(iii).  Installments which in the aggregate do not
exceed Executive’s Base Salary payable over 6 months shall be paid in a lump
sum within 60 days following Executive’s termination of employment.  The remaining installments, if any, shall be
paid in regular payment intervals with the first such installment paid on the
first payment date occurring on or after the day following the 6-month
anniversary of the Executive’s termination of employment.  In addition, if the Executive elects to
continue his health insurance coverage in the applicable Company plan pursuant
to the Consolidated Omnibus Reconciliation Act of 1985, as amended, then the
Company shall pay for such coverage during the Severance Period, provided,
however, that (i) the Executive shall be responsible for paying such
portion of the applicable health insurance premium as the Company requires from
executive employees under the applicable Company plan, and (ii) the
Company’s obligation to pay for such coverage during the Severance Period will
terminate if, during the Severance Period, the Executive becomes eligible to
receive health insurance coverage from another source at a cost to the
Executive that is equal to, or less than, the Executive’s cost under the
Company Plan.  The Executive shall have
no further right to receive any other compensation or benefits after such
termination or resignation of employment except as determined in accordance
with the terms of the employee benefit plans or programs of the Company.  In the event of the Executive’s death during
the Severance Period, Base Salary continuation payments under this Section 5.2.1
shall continue to be made during the remainder of the Severance Period to the
beneficiary designated in writing for this purpose by the Executive or, if no
such beneficiary is specifically designated, to the Executive’s estate.

 

If,
during the Severance Period, the Executive breaches his obligations under Section 8
of this Agreement, the Company may, upon written notice to the Executive,
terminate the Severance Period and cease to make any further payments or
provide any benefits described in this Section 5.2.1.

 

The
Company’s obligation to make the Base Salary continuation and health insurance
payments described in this Section 5.2.1 shall be subject to the following
conditions: (i) within twenty-one (21) days after the effective date of
termination or resignation, the Executive shall have executed and delivered to
the Company a Termination Agreement and Release (“Release”) in the form of Exhibit A
attached hereto, and (ii) the Release shall not have 

 

3

 

been
revoked by the Executive during the Executive during the revocation period
specified therein.  If the Executive
fails to deliver a fully executed Release to the Company before expiration of
such twenty-one (21) day period, or such release is revoked as permitted therein,
then the Company will have no obligation to make any of the payments specified
in this Section 5.2.1.

 

5.2.2        Within 6 Months Following a Change in
Control.  If , prior to the
expiration of the Employment Term, the Executive’s employment is terminated by
the Company without Cause, or the Executive terminates his employment hereunder
for Good Reason, in either case within 6 months following a Change in Control,
the Company shall pay to the Executive cash payments equal to 1.5 times the sum
of (i) his Base Salary (at the rate in effect immediately prior to such
termination or, if higher, as in effect immediately prior to the Change in
Control) and (ii) his average annual bonus earned during the three fiscal
years immediately preceding the Change in Control.  The payment based on the Executive’s Base
Salary shall occur in installments in the same amount and at the same regular
payment intervals as the Executive’s Base Salary was being paid on the
Effective Date and such installments shall be deemed a series of separate
payments within the meaning of Treas. Reg. §1.409A-2(b)(2)(iii).  Installments which in the aggregate do not
exceed Executive’s Base Salary payable over 6 months shall be paid in a lump
sum within 60 days following Executive’s termination of employment.  The remaining installments shall be paid in
regular payment intervals with the first such installment paid on the first
payment date occurring on or after the day following the 6-month anniversary of
the Executive’s termination of employment. 
The payment based on the Executive’s average annual bonus, which shall
be deemed a separate “payment” within the meaning of Treas. Reg. §1.409A-2(b)(2) from
the payment based on Base Salary, shall be paid in a lump sum within 60 days
following the Executive’s termination of employment.  In addition, the Executive shall be entitled
to continue to participate for a period of three years following such
termination in all employee welfare benefit plans that the Company provides and
continues to provide generally to its executive employees (or, if the Executive
is not entitled to participate in any such plan under the terms thereof, in a
comparable substitute arrangement provided by the Company) provided, however,
that for the first six months following the Executive’s termination of
employment, the Executive shall pay the premiums of any welfare benefit plans
to the extent that the payment of such premiums by the Company would have
constituted gross income to the Executive. 
The Company shall reimburse the Executive for any premiums or other
expenses incurred by the Executive with respect to his participation and that
of any of his dependents in any such employee benefit welfare plan.

 

5.2.3        After 6 Months Following a Change in
Control.  If, prior to the expiration
of the Employment Term, the Executive resigns from his employment for any
reason at any time later than six months following a Change in Control, the
Company shall pay to the Executive cash payments equal to 1.5 times the sum of (i) his
Base Salary (at the rate in effect immediately prior to such termination or, if
higher, as in effect immediately prior to the Change in Control) and (ii) his
average annual bonus earned during the three fiscal years immediately preceding
the Change in Control.  The payment based
on the Executive’s Base Salary shall occur in installments in the same amount
and at the same payment intervals as the Executive’s Base Salary was being paid
on the Effective Date provided, however, that no such installment shall be paid
before the day following the 6-month anniversary of the Executive’s termination
of 

 

4

 

employment.  The payment based on the Executive’s average
annual bonus, which shall be deemed a separate “payment” within the meaning of
Treas. Reg. §1.409A-2(b)(2) from the payment based on Base Salary, shall
be paid in a lump sum on the day following the 6-month anniversary of the
Executive’s termination of employment. 
In addition, the Executive shall be entitled to continue to participate
for a period of three years following such termination in all employee welfare
benefit plans that the Company provides and continues to provide generally to
its executive employees (or, if the Executive is not entitled to participate in
any such plan under the terms thereof, in a comparable substitute arrangement
provided by the Company) provided, however, that for the first six months
following the Executive’s termination of employment, the Executive shall pay
the premiums of any welfare benefit plans to the extent that the payment of
such premiums by the Company would have constituted gross income to the
Executive.  The Company shall reimburse
the Executive for any premiums or other expenses incurred by the Executive with
respect to his participation and that of any of his dependents in any such
employee benefit welfare plan.

 

5.3           Termination for Cause; Resignation
Without Good Reason.  If, prior to
the expiration of the Employment Term, the Executive’s employment is terminated
by the Company for Cause, or the Executive resigns from his employment
hereunder other than for Good Reason, the Executive shall (subject to Section 5.2.3)
be entitled only to payment of his Base Salary as then in effect through and
including the date of termination or resignation.  Subject to Section 5.2.3, the Executive
shall have no further right to receive any other compensation or benefits after
such termination or resignation of employment, except as determined in
accordance with the terms of the employee benefit plans or programs of the
Company.

 

5.4           Cause.  Termination for “Cause” shall mean
termination of the Executive’s employment by the Company because of:

 

(i)            any act or omission
that constitutes a breach by the Executive of any of his obligations under this
Agreement or any Company policy or procedure and failure to cure such breach
after notice of, and a reasonable opportunity to cure, such breach;

 

(ii)           the continued
willful failure or refusal of the Executive to substantially perform the duties
reasonably required of him as an employee of the Company;

 

(iii)          an act of moral
turpitude, dishonesty or fraud by, or criminal conviction of, the Executive
which in the determination of the Board would render his continued employment
by the Company damaging or detrimental to the Company;

 

(iv)          any misappropriation
of Company property by the Executive; or

 

(v)           any other willful
misconduct by the Executive which is materially injurious to the financial
condition or business reputation of, or is otherwise materially injurious to,
the Company or any of its subsidiaries or affiliates.

 

5.5           Good Reason.  For purposes of this Agreement, “Good
Reason” shall mean the occurrence of one or more of the following events
provided that, the Executive shall 

 

5

 

give
the Company a written notice, within 90 days following the initial occurrence
of the event, describing the event that the Executive claims to be Good Reason
and stating the Executive’s intention to terminate employment unless the Company
takes appropriate corrective action:

 

(i)            a material decrease
in the Executive’s Base Salary or a failure by the Company to pay material
compensation due and payable to the Executive in connection with his
employment;

 

(ii)           the Company’s
failure to assign to the Executive duties that are generally consistent with
the Executive’s position and title;

 

(iii)          a material
diminution in benefits provided by the Company to the Executive except for a
diminution applicable to substantially all of the Company’s senior executives;

 

(iv)          the Company’s
requiring the Executive to relocate to an office or location more than 50 miles
from the Company’s facilities in Elmira, New York;

 

(v)           a failure or refusal
of any successor company to assume the Company’s obligations under this
Agreement; or

 

(vi)          the Company’s
material breach of any material term of this Agreement.

 

The
Company shall have 30 days from the date of receipt of the written notice from
the Executive stating his claim of Good Reason in which to take appropriate
corrective action.  If the Company does
not cure the Good Reason, the Good Reason will be deemed to have occurred at
the end of the 30-day period.  This
section shall apply with respect to any successor of the Company following a
Change in Control as if such successor were the Company.

 

5.6           Change in Control.  For purposes of this Agreement, the term “Change
in Control” shall mean and shall be deemed to occur if and when:

 

(i)            an offeror (other
than the Company) purchases securities of the Company pursuant to a tender or
exchange offer for such securities which represent 35% or more of the combined
voting power of the Company’s then outstanding securities;

 

(ii)           any person (as such
term is used in Sections 13 (d) and 14(d) (2) of the Securities
Exchange Act of 1934, as amended), other than any employee benefit plan of the
Company or any person or entity appointed or established pursuant to any such
plan, hereafter becomes the beneficial owner, directly or indirectly, of
securities of the Company representing 35% or more of the combined voting power
of the Company’s then outstanding securities, excluding any such securities
held by such person as trustee or other fiduciary of an employee benefit plan
of the Company;

 

(iii)          the membership of
the Board changes as the result of a contested election or elections, so that a
majority of the individuals who are directors at any particular time 

 

6

 

were
proposed by persons other than (a) directors who were members of the Board
immediately prior to a first such contested election (“Continuing Directors”)
or (b) directors proposed by the Continuing Directors and were initially
elected to the Board as a result of such a contested election or elections
occurring within the previous two years; or

 

(iv)          the shareholders of
the Company approve a merger, consolidation, sale or disposition of all or
substantially all of the Company’s assets, or a plan of partial or complete
liquidation.

 

6.             DEATH OR DISABILITY

 

In
the event of termination of employment by reason of death or Permanent
Disability, the Executive (or his estate, as applicable) shall be entitled to
Base Salary and benefits determined under Sections 3 and 4 through the date of
termination.  Other benefits shall be
determined in accordance with the benefit plans maintained by the Company, and
the Company shall have no further obligation hereunder.  For purposes of this Agreement, “Permanent
Disability” means a physical or mental disability or infirmity of the
Executive that prevents the normal performance of substantially all his duties
as an employee of the Company, which disability or infirmity shall exist for
any continuous period of 180 days.

 

7.             MITIGATION OF DAMAGES

 

The
Executive shall be required to mitigate the amount of any Base Salary
continuation payment provided for in Section 5.2.1 by seeking other
employment, and any such payment will be reduced by any amounts which the
Executive receives or is entitled to receive from another employer or from
self-employment during the Severance Period. 
In fulfilling the requirements of this section, Executive need not
expend his full time and efforts in pursuing other employment and a good faith
and earnest pursuit of such employment shall be deemed to have fulfilled such requirements.  The Executive shall promptly notify the
Company in writing in the event that other employment is obtained during the
Severance Period.

 

8.             CONFIDENTIALITY;
NONSOLICITATION; NONCOMPETITION

 

8.1           Confidentiality.  The Executive covenants and agrees with the
Company that he will not any time during the Employment Term and thereafter,
except in performance of his obligations to the Company hereunder or with the
prior written consent of the Company, directly or indirectly, disclose any
secret or confidential information that he may learn or has learned by reason
of his association with the Company or any of its subsidiaries and
affiliates.  The term “confidential
information” includes information not previously made generally available
to the public or to the trade by the Company’s management, with respect to the
Company’s or any of its subsidiaries’ or affiliates’ products, facilities,
applications and methods, trade secrets and other intellectual property,
systems, procedures, manuals, confidential reports, product price lists,
customer lists, technical information, financial information (including the
revenues, costs or profits associated with any of the Company’s products),
business plans, prospects or opportunities, but shall exclude any information
which is or becomes generally

 

7

 

available
to the public or is generally known in the industry or industries in which the
Company operates other than as a result of disclosure by the Executive in
violation of his agreements under this Section 8.1.  The Executive will be released of his obligations
under this Section 8.1 to the extent the Executive is required to disclose
under any applicable laws, regulations or directives of any government agency,
tribunal or authority having jurisdiction in the matter or under subpoena or
other process of law provided that the Executive provides the Company with
prompt written notice of such requirement.

 

                                8.2           Acknowledgment of Company Assets.  The Executive acknowledges that the Company,
at the Company’s expense, has acquired, created and maintains, and will
continue to acquire, create and maintain, significant goodwill with its current
and prospective customers, vendors and employees, and that such goodwill is
valuable property of the Company.  The
Executive further acknowledges that to the extent such goodwill will be
generated through the Executive’s efforts, such efforts will be funded by the
Company and the Executive will be fairly compensated for such efforts.  The Executive acknowledges that all goodwill
developed by the Executive relative to the Company’s customers, vendors and
employees shall be the sole and exclusive property of the Company and shall not
be personal to the Executive. 
Accordingly, in order to afford the Company reasonable protection of
such goodwill and of the Company’s confidential information, the Executive
agrees as follows:

 

                                                8.2.1.       Nonsolicitation.  For so long as the Executive is employed by
the Company, and continuing for two years thereafter if termination of
employment occurs for any reason prior to a Change in Control, the Executive
shall not, without the prior written consent of the Company, directly or
indirectly, as a sole proprietor, member of a partnership, stockholder or
investor, officer or director of a corporation, or as an employee, associate,
consultant or agent of any person, partnership, corporation or other business
organization or entity other than the Company: (i) solicit or endeavor to
entice away from the Company or any of its subsidiaries any person or entity
who is, or, during the then most recent 12-month period, was employed by, or
had served as an agent or key consultant of the Company or any of its
subsidiaries; (ii) solicit or endeavor to entice away from the Company or
any of its subsidiaries any person or entity who is, or was within the then most
recent 12-month period, a customer or client (or reasonably anticipated to the
general knowledge of the Executive or the public to become a customer or
client) of the Company or any of its subsidiaries; or (iii) solicit or endeavor
to entice away from the Company or any of its subsidiaries any person who is
employed by the Company or its subsidiaries or induce such person to terminate
his or her employment with the Company or its subsidiaries.

 

                                                8.2.2.       No Competing Employment.  For so long as the Executive is employed by
the Company, and continuing for one year thereafter if termination of
employment occurs for any reason prior to a Change in Control, the Executive
shall not, directly or indirectly, as a sole proprietor, member of a
partnership, stockholder or investor (other than a stockholder or investor
owning not more than a 1% interest), officer or director of a corporation, or
as an employee, associate, consultant or agent of any person, partnership,
corporation or other business organization or entity other than the Company,
render any service to or in any way be affiliated with a competitor (or any
person or entity that is reasonably anticipated to the general knowledge of the
Executive or the public to become a competitor) of the Company or any of its
subsidiaries.

 

8

 

                                8.3           Exclusive Property.  The Executive confirms that all confidential
information is and shall remain the exclusive property of the Company.  All business records, papers and documents
kept or made by Executive relating to the business of the Company shall be and
remain the property of the Company, except for such papers customarily deemed
to be the personal copies of the Executive. 
Upon termination of the Executive’s employment with the Company for any
reason, the Executive promptly deliver to the Company all of the following that
are in the Executive’s possession or under his control: (i) all computers,
telecommunication devices and other tangible property of the Company and its
affiliates, and (ii) all documents and other materials, in whatever form, which
include confidential information or which otherwise relate in whole or in part
to the present or prospective business of the Company or its affiliates,
including but not limited to, drawings, graphs, charts, specifications, notes,
reports, memoranda, and computer disks and tapes, and all copies thereof.

 

                                8.4           Injunctive Relief.  Without intending to limit the remedies
available to the Company, the Executive acknowledges that a breach of any of
the covenants contained in this Section 8 may result in material and
irreparable injury to the Company or its affiliates or subsidiaries for which
there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of such a breach or
threat thereof, the Company shall be entitled to seek a temporary restraining
order and/or a preliminary or permanent injunction restraining the Executive
from engaging in activities prohibited by this Section 8 or such other relief
as may be required specifically to enforce any of the covenants in this Section
8.  If for any reason, it is held that
the restrictions under this Section 8 are not reasonable or that
consideration therefore is inadequate, such restrictions shall be interpreted
or modified to include as much of the duration and scope identified in this
Section 8 as will render such restrictions valid and enforceable.

 

                                8.5           Communication to Third Parties.  The Executive agrees that Company shall have
the right to communicate the terms of this Section 8 to any third parties,
including but not limited to, any prospective employer of the Executive.  The Company waives any right to assert any
claim for damages against Company or any officer, employee or agent of Company
arising from such disclosure of the terms of this Section 8.

 

                                8.6           Independent Obligations.  The provisions of this Section 8 shall be
independent of any other provision of this Agreement.  The existence of any claim or cause of action
by the Executive against the Company, whether predicated on this Agreement or
otherwise, shall not constitute a defense of the enforcement of this Section 8
by the Company.

 

                                8.7           Non-Exclusivity.  The Company’s rights and the Executive’s obligations
set forth in this Section 8 are in addition to, and not in lieu of, all rights
and obligations provided by applicable statutory or common law.

 

                                9.             CERTAIN PAYMENTS

 

                                Notwithstanding
anything in this Agreement to the contrary, if any amounts due to the Executive
under this Agreement and any other plan or program of the Company constitute 

 

9

 

a
“parachute payment” (as defined in Section 280G(b)(2) of the Internal Revenue
Code of 1986, as amended (the “Code”)), then the aggregate of the
amounts constituting the parachute payment shall be reduced to an amount that
will equal three times his “base amount” (as defined in Section 280G(b)(3) of
the Code) less $1.00.  The determination
to be made with respect to this Section 9 shall be made by an accounting firm
jointly selected by the Company and the Executive and paid by the Company, and
which may be the Company’s independent auditors.

 

                                10.           MISCELLANEOUS.

 

                                10.1         Notices.  All notices or communications hereunder shall
be in writing, addressed as follows:

 

                                To the Company:

 

Hardinge Inc.

One Hardinge Drive

Elmira, New York  14902-1507

Telecopier No. (607) 734-2353

Attention:  Mr. Richard L. Simons

 

                                To the
Executive:

 

James P. Langa

37 Philo Road

Elmira, NY  14903

 

All
such notices shall be conclusively deemed to be received and shall be
effective, (i) if sent by hand delivery, upon receipt, (ii) if sent
by telecopy or facsimile transmission, upon confirmation of receipt by the
sender of such transmission, or (iii) if sent by registered or certified
mail, on the fifth day after the day on which such notice is mailed.

 

                                10.2         Severability.  Each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement is held to be prohibited by or invalid
under applicable law, such provision will be ineffective only to the extent of
such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.

 

                                10.3         Assignment.  The rights and obligations of this Agreement
shall bind and inure to the benefit of any successor of the Company by
reorganization, merger or consolidation, or any assignee of all or
substantially all of the Company’s business and properties.  Neither this Agreement nor any rights
hereunder shall be assignable or otherwise subject to hypothecation by the
Executive.

 

                                10.4         Entire Agreement.  This Agreement represents the entire
agreement of the parties and shall supersede any and all previous contracts,
arrangements or understandings 

 

10

 

between
the Company and the Executive relating to the subject matter hereof.  This Agreement may be amended at any time by
mutual written agreement of the parties hereto.

 

                                10.5         Withholding.  The payment of any amount pursuant to this
Agreement shall be subject to applicable withholding and payroll taxes, and
such other deductions as may be required under the Company’s employee benefits
plans, if any.

 

                                10.6         Governing Law.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York applicable to
contracts executed in and to be performed entirely within that state.

 

                                IN WITNESS
WHEREOF, the Company has caused this Agreement to be duly executed and the
Executive has hereunto set his hand, as of the day and year first above
written.

 

	
   

  	
  HARDINGE
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/
  RICHARD L. SIMONS

  
	
   

  	
  Name:
  Richard L. Simons

  
	
   

  	
  Title:
  President and CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/
  JAMES P. LANGA

  
	
   

  	
  Name:
  James P. Langa

  
	
   

  	
  Title:
  Vice President – Engineering, Quality and Strategic Sourcing

  
	
   

  	
   

  
	
   

  	
  Dated:
  August 19, 2010

  

 

11

 

	
  State
  of New York

  	
  )

  
	
   

  	
  :
  ss.

  
	
  County
  of Chemung

  	
  )

  

 

                                On the 19th day
of August, in the year 2010, before me, the undersigned, a Notary Public in and
for said state, personally appeared RICHARD L. SIMONS, residing at 1688 Mt.
Zoar Road Pine City, NY 14871, the President and CEO of HARDINGE INC., personally
known to me, or proved to me on the basis of satisfactory evidence, to be the
individual whose name is subscribed to the within instrument, and he
acknowledged to me that he executed the same in his capacity and that, by his
signature on the instrument, the individual, or the person upon behalf of which
the individual acted, executed the instrument on behalf of said corporation.

 

	
   

  	
  /S/ DOUGLAS C. TIFFT

  
	
   

  	
  Notary Public

  

 

	
  State
  of New York

  	
  )

  
	
   

  	
  :
  ss.

  
	
  County
  of Chemung

  	
  )

  

 

                                On the 19th day
of August, 2010, before me, the undersigned, personally appeared James P.
Langa, personally known to me or proved to me on the basis of satisfactory
evidence to be the individual whose name is subscribed to the within instrument
and he acknowledged to me that he executed the same in his capacity, and that
by his signature on the instrument, the individual, or the person upon behalf
of which the individual acted, executed the instrument.

 

	
   

  	
  /S/ DOUGLAS C. TIFFT

  
	
   

  	
  Notary Public

  

 

12

 

EXHIBIT A

 

HARDINGE INC.

TERMINATION AGREEMENT AND RELEASE

 

                In consideration of the payments
and benefits to be provided to me by Hardinge Inc. (the “Company”) pursuant to
Section 5.2.1 of the Employment Agreement between the Company and me dated September
1, 2010 (the “Employment Agreement”), I agree as follows:

 

1.             Termination.  My employment with the Company is terminated
effective
                        
and I will not thereafter apply for employment with the Company.

 

2.             Release.  On behalf of myself and my heirs, successors
executors, administrators, trustees, legal representatives, agents and assigns,
I fully and forever release and discharge the Company, its subsidiaries,
divisions and affiliates and its and all of their predecessors, successors,
assigns, directors and officers (collectively “Released Parties”) from any and
all claims, demands, suits, causes of action, obligations, promises, damages,
fees, covenants, agreements, attorneys’ fees, debts, contracts and torts of
every kind whatsoever, known or unknown, at law or in equity, foreseen or
unforeseen, which against the Released Parties I ever had, now have or which I
may have for, upon or by reason of any matter, cause or thing whatsoever
relating to or arising from my employment with the Company or the termination
thereof, specifically including, but not limited to, all claims under the
following:  the Civil Rights Acts of
1866, 1871, 1964 and 1991; the Age Discrimination in Employment Act of 1967;
the Older Workers’ Benefit Protection Act of 1990; the Americans with
Disabilities Act; the Equal Pay Act; the Employee Retirement Income Security
Act; the Worker Adjustment Retraining Notification Act; the Family and Medical
Leave Act; the National Labor Relations Act; the Occupational Safety and Health
Act; the New York State Human Rights Law; the New York City Human Rights Law;
the New York State Labor Law; §§ 120 and 241 of the New York State Workers’
Compensation Law; any contract of employment, express or implied; and any and
all other federal, state or local laws, rules or regulations.

 

                I hereby waive the right to
receive any personal relief (i.e. monetary or equitable relief) as a result of
any lawsuit or other proceeding brought by the EEOC or any other governmental
agency, based on or related to any of the matters from which I have released
the Released Parties. I also will take all actions necessary, if any, now or in
the future, to make this Release effective, including seeking and obtaining any
necessary governmental or court approval.

 

                The foregoing release shall not
operate to release the Company from its obligations to make payments and
provide benefits as provided under Section 5.2.1 of the Employment Agreement.

 

                In connection with the foregoing
release (i) I acknowledge that the payments and benefits under Section 5.2.1 of
the Employment Agreement are good and sufficient consideration to which I would
not otherwise be entitled but for my execution and delivery to the Company of
this instrument, (ii) I acknowledge that I have been advised by the Company to
consult with an attorney before signing this instrument, (iii) the Company has
allowed me at least twenty-one (21) days from the date I first receive this
instrument to consider it before being required to sign 

 

 

it
and return it to the Company, and (iv) I may revoke this instrument, in its
entirety, within seven (7) days after signing it by delivering written notice
of such revocation to the Company on or before 5:00 p.m. on the seventh day of
such revocation period.

 

                IN WITNESS WHEREOF, the
undersigned has executed this instrument as of the
         day of
                      .

 

	
   

  	
   

  
	
   

  	
  James P. Langa

  

 

2

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