Document:

Exhibit 10.3

 

ZENITH
NATIONAL INSURANCE CORP.

AMENDED
AND RESTATED 2004 RESTRICTED STOCK PLAN

RESTRICTED
STOCK AWARD AGREEMENT

FOR
EMPLOYEES

 

THIS
RESTRICTED STOCK AWARD AGREEMENT (the “Award Agreement”)
is made and entered into as of [               ]
(the “Date of Grant”), by and between Zenith
National Insurance Corp., a Delaware corporation (the “Company”),
and [                       ]
(the “Grantee”).  Capitalized terms not defined herein shall
have the meaning ascribed to them in the Zenith National Insurance Corp.
Amended and Restated 2004 Restricted Stock Plan (the “Plan”).  Where the context permits, references to the
Company or any of its Subsidiaries shall include the successors to the
foregoing.

 

Pursuant to
the Plan, the Administrator has determined that the Grantee is to be granted
Restricted Stock, subject to the terms, conditions and restrictions set forth
in the Plan and herein, and hereby grants such Restricted Stock.

 

1.                                       Grant
of Restricted Stock.  The Company
hereby grants to the Grantee [              ]
shares of Restricted Stock (the “Award”) on the
terms, conditions and restrictions set forth in this Award Agreement and as
otherwise provided in the Plan.

 

2.                                       Purchase
Price; Method of Payment.  The
purchase price per share of Restricted Stock shall be $1.00.  The purchase price may be paid (i) in
cash or its equivalent, (ii) shares of unrestricted Stock owned by the
Grantee for greater than six (6) months, the Fair Market Value of which on
the purchase date is equal to the purchase price of the Restricted Stock, (iii) to
the extent permitted by law, cancellation of indebtedness, (iv) services
rendered or (v) any combination of the foregoing.  In the absence of any other form of payment
tendered by the Grantee, the purchase price shall be paid by services rendered.

 

3.                                       Restrictions
with Respect to Restricted Stock.

 

(a)   Restrictions.  The Restricted Stock granted hereunder and
any interest therein, may not be sold, transferred, pledged, hypothecated,
assigned or otherwise disposed of, except by will or the laws of descent and
distribution, prior to the lapsing of restrictions set forth in the Plan and
this Award Agreement.  Any attempt to
dispose of any Restricted Stock in contravention of any such restrictions shall
be null and void and without effect.

 

(b)   Restricted Period; Lapse
of Restrictions.  Except as
otherwise provided in the Plan or this Award Agreement, the restrictions set
forth in Paragraph 3(a) shall lapse with respect to fifty percent (50%) of
the shares of Restricted Stock granted hereunder on the second (2nd)
anniversary of the Date of Grant, and with respect to the remaining fifty
percent (50%) of such shares on of the fourth (4th) anniversary of
the Date of Grant, so long as the Grantee is employed by the Company or any Subsidiary
as of each such anniversary.

 

 

4.                                       Form of
Restricted Stock.  The Company may,
in its discretion, reflect ownership of Restricted Stock through the issuance
of stock certificates, in book-entry form or any combination thereof, in
accordance with Section 5(e) of the Plan.

 

5.                                       Unrestricted
Shares.  Promptly after each lapse of
restrictions relating to the Restricted Stock without forfeiture, and provided
that the Grantee shall have complied with his or her obligations under
Paragraph 9 hereof, the Company shall, with respect to such Unrestricted
Shares:

 

(a)  
If such Unrestricted Shares were initially issued in certificated form,
issue to the Grantee or the Grantee’s personal representative a stock
certificate representing a number of shares of Stock, free of the restrictive
legend described in Paragraph 7, equal to the number of shares of Restricted
Stock with respect to which such restrictions have lapsed.  If certificates representing such Restricted
Stock shall have theretofore been delivered to the Grantee, such certificates
shall be returned to the Company, complete with any necessary signatures or
instruments of transfer prior to the issuance by the Company of such unlegended
shares of Stock; or

 

(b)  
If such Unrestricted Shares were initially issued in book-entry form,
transfer such Unrestricted Shares to the Grantee in the form and registration
as indicated by the Grantee.

 

6.                                       Rights
as a Stockholder.  Subject to the
restrictions set forth in the Plan and this Award Agreement, the Grantee shall
possess all incidents of ownership with respect to the Restricted Stock granted
hereunder, including the right to vote such Restricted Stock and the right to
receive dividends with respect to such Restricted Stock; provided however, that
extraordinary or non-cash dividends shall be subject to the same restrictions
that apply to the underlying Restricted Stock.

 

7.                                       Certificate;
Restrictive Legend.  Any certificate
issued for Restricted Stock prior to the lapse of any outstanding restrictions
relating thereto shall be inscribed with the following legend, or such other
legend as determined by the Administrator:

 

THIS
CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS
AND CONDITIONS, INCLUDING FORFEITURE PROVISIONS AND RESTRICTIONS AGAINST
TRANSFER (THE “RESTRICTIONS”), CONTAINED IN THE ZENITH NATIONAL INSURANCE CORP.
AMENDED AND RESTATED 2004 RESTRICTED STOCK PLAN AND THE RESTRICTED STOCK AWARD
AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER AND THE COMPANY.  ANY ATTEMPT TO DISPOSE OF THESE SHARES IN
CONTRAVENTION OF THE RESTRICTIONS, INCLUDING BY WAY OF SALE, ASSIGNMENT,
TRANSFER, PLEDGE, HYPOTHECATION OR OTHERWISE, SHALL BE NULL AND VOID AND
WITHOUT EFFECT.

 

8.                                       Termination
of Employment.

 

(a)  
Upon the Grantee’s death or termination of employment due to Disability,
the restrictions set forth in Paragraph 3(a) shall lapse.

 

 

(b)  
Upon termination of the Grantee’s employment with the Company or any
Subsidiary thereof for any reason (other than death or Disability) prior to the
lapsing of restrictions with respect to any portion of the Restricted Stock
granted hereunder, the Grantee shall forfeit any rights to the shares of
Restricted Stock with respect to which the restrictions have not lapsed and
shall have no further rights thereto.

 

(c)  
Upon forfeiture of any shares of Restricted Stock, to the extent the
Grantee paid the purchase price of such forfeited shares in a manner other than
services rendered, the Company shall repurchase such shares from the Grantee at
a price per share equal to the lesser of (i) the Fair Market Value of such
shares at the time of forfeiture or (ii) the price Grantee paid for such
shares initially.

 

9.                                       Taxes.    Pursuant to Section 9(d) of the
Plan, the Company (or Subsidiary, as the case may be) may require the Grantee
to remit to the Company (or Subsidiary, as the case may be) in cash an amount
sufficient to satisfy any federal, state and local tax withholding requirements
related to the Award.  With the approval
of the Administrator, the Grantee may satisfy the foregoing requirement by
electing to have the Company withhold from delivery shares of Stock or by
delivering shares of Stock already owned by the Grantee for at least 6 months,
in each case, having a value equal to the minimum amount of tax required to be
withheld.  Such shares shall be valued at
their Fair Market Value on the date on which the amount of tax to be withheld
is determined, and fractional share amounts shall be settled in cash.  Such an election may be made with respect to all
or any portion of the shares of Stock to be delivered pursuant to the Award.

 

The Grantee
shall promptly notify the Company of any election made pursuant to Section 83(b) of
the Internal Revenue Code of 1986, as amended.

 

10.                                 Adjustments.  The Award and all rights and obligations
under this Award Agreement are subject to Section 3 of the Plan.

 

11.                                 Notices.  Whenever any notice is required or permitted
hereunder, such notice shall be in writing and shall be given by personal
delivery or first class, certified or registered mail with return receipt
requested.  Any notice required or
permitted to be delivered hereunder shall be deemed to have been duly given on
the date which it is personally delivered or, whether actually received or not,
on the third business day after mailing to the respective parties named below.

 

	
  If to the
  Company:

  	
  Zenith
  National Insurance Corp.

  
	
   

  	
  21255 Califa
  St

  
	
   

  	
  Woodland
  Hills, CA 91367

  
	
   

  	
  Attn.:
  William J. Owen, Sr. Vice President

  
	
   

  	
  and Chief
  Financial Officer

  
	
   

  	
  Facsimile:
  818-592-0480

  
	
   

  	
   

  
	
  If to the
  Grantee:

  	
  [Name of
  Grantee]

  
	
   

  	
  [Address]

  

 

 

Either party
may change such party’s address for notices by duly giving notice pursuant
hereto.

 

12.                                 Compliance
with Laws.

 

(a)  
Shares of Stock shall not be issued pursuant to the Award granted
hereunder unless the issuance or delivery of such shares pursuant thereto shall
comply with all relevant provisions of law, including, without limitation, the
Securities Act of 1933 (the “Securities Act”)
and the Exchange Act, shall be subject to the requirements of any stock
exchange upon which the Stock may then be listed, and shall be further subject
to the approval of counsel for the Company with respect to such
compliance.  The Company shall be under
no obligation to effect the registration pursuant to the Securities Act, of any
interests in the Plan or any shares of Stock to be issued hereunder or to
effect similar compliance under any state laws.

 

(b)  
All certificates for shares of Stock delivered under the Plan shall be
subject to such stop-transfer orders and other restrictions as the
Administrator may deem advisable under the rules, regulations, and other
requirements of the Securities and Exchange Commission, any stock exchange upon
which the Stock may then be listed, and any applicable federal or state
securities law, and the Administrator may cause a legend or legends to be
placed on any such certificates to make appropriate reference to such
restrictions.  The Administrator may
require, as a condition of the issuance or delivery of certificates evidencing
shares of Stock pursuant to the terms hereof, that the recipient of such shares
make such agreements and representations as the Administrator, in its sole
discretion, deems necessary or desirable.

 

13.                                 Protections
Against Violations of Agreement.  No
purported sale, assignment, mortgage, hypothecation, transfer, pledge,
encumbrance, gift, transfer in trust (voting or other) or other disposition of,
or creation of a security interest in or lien on, any of the shares of Stock
underlying the Award by any holder thereof in violation of the provisions of
this Award Agreement, the Plan or the certificate of incorporation or the
bylaws of the Company, will be valid, and the Company will not transfer any
such shares on its books nor will any such shares be entitled to vote, nor will
any dividends be paid thereon, unless and until there has been full compliance
with such provisions to the satisfaction of the Company.  The foregoing restrictions are in addition to
and not in lieu of any other remedies, legal or equitable, available to enforce
said provisions.

 

14.                                 Failure
to Enforce Not a Waiver.  The failure
of the Company to enforce at any time any provision of the Award Agreement
shall in no way be construed to be a waiver of such provision or of any other
provision hereof.

 

15.                                 Governing
Law.  The Award Agreement shall be
governed by and construed according to the laws of the State of Delaware
without regard to its principles of conflict of laws.

 

16.                                 Incorporation
of the Plan.   The Plan, as it exists
on the date of the Award Agreement and as amended from time to time, is hereby
incorporated by reference and made a part hereof, and the Award and this Award
Agreement shall be subject to all terms and conditions of the Plan.  In the event of any conflict between the
provisions of the Award Agreement and the provisions of the Plan, the terms of
the Plan shall control, except as expressly

 

 

stated otherwise.  The term “Section” generally refers to
provisions within the Plan (except where denoted otherwise); provided, however,
the term “Paragraph” shall refer to a provision of this Award Agreement.

 

17.                                 Amendments.  This Award Agreement may be amended or
modified at any time, but only by an instrument in writing signed by each of
the parties hereto.

 

18.                                 Counterparts.                       This Award
Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

 

19.                                 Invalid
Provision.   The invalidity or
unenforceability of any particular provision hereof shall not affect the other
provisions hereof, and this Award Agreement shall be construed in all respects
as if such invalid or unenforceable provision had been omitted.

 

20.                                 Entire
Agreement.    This Award Agreement
and the Plan, as it exists on the date of this Award Agreement and as amended
from time to time, contain the entire agreement and understanding of the
parties hereto with respect to the subject matter contained herein and therein
and supersede all prior communications, representations and negotiations in
respect thereto.

 

21.                                 Captions
and Headings.   The captions and
headings of the paragraphs and subparagraphs of this Award Agreement are
provided for convenience only and are not to serve as a basis for interpreting
or construing this Award Agreement.

 

22.                                 Agreement
Not a Contract of Employment. 
Neither the Plan, the granting of the Award, the Award Agreement nor any
other action taken pursuant to the Plan shall constitute or be evidence of any
agreement or understanding, express or implied, that the Grantee has a right to
continue to be employed by, or to provide services as a director, consultant or
advisor to, the Company, any Subsidiary or affiliate thereof for any period of
time or at any specific rate of compensation.

 

23.                                 Authority
of the Administrator.  The
Administrator shall have full authority to interpret and construe the terms of
the Plan and the Award Agreement.  The
determination of the Administrator as to any such matter of interpretation or
construction shall be final, binding and conclusive.

 

24.                                 Binding
Effect.  The Award Agreement shall
apply to and bind the Grantee and the Company and their respective permitted
assignees or transferees, heirs, legatees, executors, administrators and legal
successors.

 

25.                                 Tax
Representation.  The Grantee has
reviewed with his or her own tax advisors the federal, state, local and foreign
tax consequences of the transactions contemplated by this Award Agreement.  The Grantee is relying solely on such
advisors and not on any statement or representations of the Company or any of
its agents.  The Grantee understands that
he or she (and not the Company) shall be responsible for any tax liability that
may arise as a result of the transactions contemplated by the Award Agreement.

 

 

26.                                 Acceptance.  The Grantee hereby acknowledges receipt of a
copy of the Plan, the prospectus and this Award Agreement.  Grantee has read and understands the terms
and provisions thereof, and accepts the Award subject to all the terms and
conditions of the Plan and the Award Agreement.

 

IN WITNESS
WHEREOF, the parties hereto have executed and delivered the Award Agreement as
of the day and year first above written.

 

 

	
   

  	
  ZENITH
  NATIONAL INSURANCE CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRANTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Social
  Security No.:

  	
   

  	
   

  
	
   

  	
  Date:Exhibit
10.1

 

EXECUTION COPY

 

 

SECOND AMENDED AND RESTATED
CREDIT AGREEMENT

 

dated as of

 

May 12, 2005

 

between

 

SINCLAIR TELEVISION GROUP, INC.

 

The GUARANTORS Party Hereto

 

The LENDERS Party Hereto

 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 

 

J.P. MORGAN SECURITIES INC.,

as Sole Lead Arranger and Sole
Bookrunner

 

WACHOVIA BANK, NATIONAL
ASSOCIATION

and

DEUTSCHE BANK TRUST COMPANY
AMERICAS

as Syndication Agents

 

BNP PARIBAS

and

ING CAPITAL LLC

as Documentation Agents

 

 

 

TABLE OF CONTENTS

 

 

	
  ARTICLE I DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  SECTION 1.01.
  Defined Terms

  	
   

  
	
  SECTION 1.02. Classification of
  Loans and Borrowings.

  	
   

  
	
  SECTION 1.03. Call Letters for
  Stations.

  	
   

  
	
  SECTION 1.04. Terms Generally.

  	
   

  
	
  SECTION 1.05.
  Accounting Terms; GAAP.

  	
   

  
	
   

  	
   

  
	
  ARTICLE II
  THE CREDITS

  	
   

  
	
   

  	
   

  
	
  SECTION 2.01. The
  Credits.

  	
   

  
	
  SECTION 2.02.
  Loans and Borrowings.

  	
   

  
	
  SECTION 2.03. Requests for
  Borrowings

  	
   

  
	
  SECTION 2.04.
  Letters of Credit.

  	
   

  
	
  SECTION 2.05.
  Funding of Borrowings.

  	
   

  
	
  SECTION 2.06.
  Interest Elections.

  	
   

  
	
  SECTION 2.07.
  Termination and Reduction of the Commitments.

  	
   

  
	
  SECTION 2.08.
  Repayment of Loans; Evidence of Debt.

  	
   

  
	
  SECTION 2.09.
  Prepayment of Loans.

  	
   

  
	
  SECTION 2.10. Fees.

  	
   

  
	
  SECTION 2.11.
  Interest.

  	
   

  
	
  SECTION 2.12. Alternate Rate
  of Interest

  	
   

  
	
  SECTION 2.13.
  Increased Costs.

  	
   

  
	
  SECTION 2.14. Break Funding
  Payments

  	
   

  
	
  SECTION 2.15. Taxes.

  	
   

  
	
  SECTION 2.16.
  Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

  	
   

  
	
  SECTION 2.17.
  Mitigation Obligations; Replacement of Lenders.

  	
   

  
	
   

  	
   

  
	
  ARTICLE III
  GUARANTEE

  	
   

  
	
   

  	
   

  
	
  SECTION 3.01. The Guarantee

  	
   

  
	
  SECTION 3.02. Obligations
  Unconditional

  	
   

  
	
  SECTION 3.03.
  Reinstatement

  	
   

  
	
  SECTION 3.04. Subrogation

  	
   

  
	
  SECTION 3.05. Remedies

  	
   

  
	
  SECTION 3.06. Instrument for
  the Payment of Money

  	
   

  
	
  SECTION 3.07. Continuing
  Guarantee

  	
   

  
	
  SECTION 3.08. Rights of
  Contribution

  	
   

  
	
  SECTION 3.09. General
  Limitation on Guarantee Obligations

  	
   

  
	
   

  	
   

  
	
  ARTICLE IV
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
   

  
	
  SECTION 4.01. Organization;
  Powers

  	
   

  

 

 

	
  SECTION 4.02. Authorization;
  Enforceability

  	
   

  
	
  SECTION 4.03. Governmental
  Approvals; No Conflicts

  	
   

  
	
  SECTION 4.04.
  Financial Condition; Material Adverse Change.

  	
   

  
	
  SECTION 4.05.
  Properties.

  	
   

  
	
  SECTION 4.06.
  Litigation and Environmental Matters.

  	
   

  
	
  SECTION 4.07. Compliance with
  Laws and Agreements

  	
   

  
	
  SECTION 4.08. Investment and
  Holding Company Status

  	
   

  
	
  SECTION 4.09. Taxes

  	
   

  
	
  SECTION 4.10. ERISA

  	
   

  
	
  SECTION 4.11. Disclosure

  	
   

  
	
  SECTION 4.12. Use of Credit

  	
   

  
	
  SECTION 4.13.
  Indebtedness and Liens.

  	
   

  
	
  SECTION 4.14. Capitalization.

  	
   

  
	
  SECTION 4.15.
  Subsidiaries and Investments.

  	
   

  
	
  SECTION 4.16.
  Broadcast Licenses.

  	
   

  
	
  SECTION 4.17. Ancillary
  Documents.

  	
   

  
	
  SECTION 4.18. Program Services
  Agreements.

  	
   

  
	
  SECTION 4.19. Options.

  	
   

  
	
  SECTION 4.20. Asset Use and
  Operating Agreements.

  	
   

  
	
  SECTION 4.21. Outsourcing
  Agreements.

  	
   

  
	
  SECTION 4.22. Solvency.

  	
   

  
	
   

  	
   

  
	
  ARTICLE V
  CONDITIONS

  	
   

  
	
   

  	
   

  
	
  SECTION 5.01. Second
  Restatement Effective Date

  	
   

  
	
  SECTION 5.02. Each Credit
  Event

  	
   

  
	
  SECTION 5.03. Each
  Incremental Loan.

  	
   

  
	
   

  	
   

  
	
  ARTICLE VI
  AFFIRMATIVE COVENANTS

  	
   

  
	
   

  	
   

  
	
  SECTION 6.01. Financial
  Statements and Other Information

  	
   

  
	
  SECTION 6.02. Notices of
  Material Events

  	
   

  
	
  SECTION 6.03. Existence;
  Conduct of Business

  	
   

  
	
  SECTION 6.04. Payment of
  Obligations

  	
   

  
	
  SECTION 6.05. Maintenance of
  Properties; Insurance

  	
   

  
	
  SECTION 6.06. Books and
  Records; Inspection Rights

  	
   

  
	
  SECTION 6.07. Compliance with
  Laws and Contractual Obligations

  	
   

  
	
  SECTION 6.08. Use of Proceeds
  and Letters of Credit

  	
   

  
	
  SECTION 6.09.
  Certain Obligations Respecting Subsidiaries and Other Holding Company
  Subsidiaries.

  	
   

  
	
   

  	
   

  
	
  ARTICLE VII
  NEGATIVE COVENANTS

  	
   

  
	
   

  	
   

  
	
  SECTION 7.01. Indebtedness

  	
   

  
	
  SECTION 7.02. Liens

  	
   

  
	
  SECTION 7.03. Mergers,
  Consolidations, Etc.

  	
   

  
	
  SECTION 7.04. Acquisitions.

  	
   

  

 

ii

 

	
  SECTION 7.05. Dispositions.

  	
   

  
	
  SECTION 7.06. Lines of Business

  	
   

  
	
  SECTION 7.07. Investments.

  	
   

  
	
  SECTION 7.08. Restricted
  Payments.

  	
   

  
	
  SECTION 7.09. Transactions
  with Affiliates

  	
   

  
	
  SECTION 7.10. Restrictive
  Agreements

  	
   

  
	
  SECTION 7.11.
  Certain Financial Covenants.

  	
   

  
	
  SECTION 7.12. Certain Other
  Indebtedness.

  	
   

  
	
  SECTION 7.13. Modifications
  of Certain Documents.

  	
   

  
	
  SECTION 7.14.
  License Subsidiaries.

  	
   

  
	
  SECTION 7.15. Preferred
  Stock.

  	
   

  
	
  SECTION 7.16. Program
  Services Agreements and Outsourcing Agreements.

  	
   

  
	
  SECTION 7.17. Limitation on
  Cure Rights.

  	
   

  
	
  SECTION 7.18. Sale and
  Leaseback Transactions.

  	
   

  
	
  SECTION 7.19.
  Covenants Applicable to Holding Company.

  	
   

  
	
   

  	
   

  
	
  ARTICLE VIII
  EVENTS OF DEFAULT

  	
   

  
	
   

  	
   

  
	
  ARTICLE IX
  THE ADMINISTRATIVE AGENT

  	
   

  
	
   

  	
   

  
	
  ARTICLE X
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  SECTION 10.01. Notices

  	
   

  
	
  SECTION 10.02. Waivers;
  Amendments

  	
   

  
	
  SECTION 10.03. Expenses;
  Indemnity; Damage Waiver

  	
   

  
	
  SECTION 10.04. Successors and
  Assigns

  	
   

  
	
  SECTION 10.05. Survival

  	
   

  
	
  SECTION 10.06. Counterparts;
  Integration; Effectiveness

  	
   

  
	
  SECTION 10.07. Severability

  	
   

  
	
  SECTION 10.08. Right of Setoff

  	
   

  
	
  SECTION 10.09. Governing Law;
  Jurisdiction; Consent to Service of Process

  	
   

  
	
  SECTION 10.10. WAIVER OF JURY
  TRIAL

  	
   

  
	
  SECTION 10.11. Headings

  	
   

  
	
  SECTION 10.12.
  Confidentiality

  	
   

  
	
  SECTION 10.13. Cure of
  Defaults by the Administrative Agent or the Lenders.

  	
   

  
	
  SECTION 10.14. USA PATRIOT
  Act

  	
   

  
	
  SECTION 10.15.
  Waivers under Existing Credit Agreement; Effect of Amendment and Restatement.

  	
   

  

 

iii

 

	
  SCHEDULE 1.01(a)

  	
  -

  	
  Commitments

  
	
  SCHEDULE 1.01(b)

  	
  -

  	
  Existing Senior Subordinated Note Indentures

  
	
  SCHEDULE 1.01(c)

  	
  -

  	
  Unrestricted Subsidiaries

  
	
  SCHEDULE 1.03

  	
  -

  	
  Owned and Contract Stations

  
	
  SCHEDULE 4.06(a)

  	
  -

  	
  Litigation

  
	
  SCHEDULE 4.06(b)

  	
  -

  	
  Environmental Matters

  
	
  SCHEDULE 4.13(a)

  	
  -

  	
  Material Indebtedness

  
	
  SCHEDULE 4.13(b)

  	
  -

  	
  Liens

  
	
  SCHEDULE 4.13(c)

  	
  -

  	
  Film Cash Payments

  
	
  SCHEDULE 4.13(d)

  	
  -

  	
  Interest Rate Protection Agreements

  
	
  SCHEDULE 4.14

  	
  -

  	
  Capitalization

  
	
  SCHEDULE 4.15(a)

  	
  -

  	
  Subsidiaries

  
	
  SCHEDULE 4.15(b)

  	
  -

  	
  Investments

  
	
  SCHEDULE 4.16

  	
  -

  	
  Broadcast Licenses

  
	
  SCHEDULE 4.18

  	
  -

  	
  Program Services Agreements

  
	
  SCHEDULE 4.19

  	
  -

  	
  Option Agreements

  
	
  SCHEDULE 4.20

  	
  -

  	
  Asset Use and Operating Agreements

  
	
  SCHEDULE 4.21

  	
  -

  	
  Outsourcing Agreements

  
	
  SCHEDULE 7.01(b)

  	
  -

  	
  Existing Indebtedness

  
	
  SCHEDULE 7.04

  	
  -

  	
  Approved Acquisitions

  
	
  SCHEDULE 7.10

  	
  -

  	
  Restrictive Agreements

  

 

	
  EXHIBIT A

  	
  -

  	
  Form of Security Agreement

  
	
  EXHIBIT B

  	
  -

  	
  Form of Guarantee Assumption Agreement

  
	
  EXHIBIT C

  	
  -

  	
  Form of Assignment and Assumption

  
	
  EXHIBIT D

  	
  -

  	
  Form of Asset Use and Operating
  Agreement

  
	
  EXHIBIT E

  	
  -

  	
  Form of Consent and Agreement

  
	
  EXHIBIT F-1

  	
  -

  	
  Form of Opinion of Counsel to the
  Obligors

  
	
  EXHIBIT F-2

  	
  -

  	
  Form of Opinion of Special FCC Counsel
  to the Obligors

  
	
  EXHIBIT G

  	
  -

  	
  Form of Opinion of Special New York
  Counsel to JPMCB

  

 

iv

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT
dated as of May 12,  2005 between SINCLAIR TELEVISION GROUP, INC.,
the GUARANTORS party hereto, the LENDERS party hereto and JPMORGAN CHASE BANK,
N.A., as Administrative Agent.

 

The Borrower (as assignee of the Holding
Company) and the Subsidiary Guarantors are parties to the Credit Agreement
dated as of July 15, 2002, as amended as of May 28, 2003
and as amended and restated as of June 25, 2004 (as heretofore
modified and supplemented and in effect on the date hereof, the “Existing
Credit Agreement”) with several banks and other financial institutions or
entities parties thereto and JPMorgan Chase Bank, N.A. (formerly JPMorgan Chase
Bank), as administrative agent.

 

The Holding Company, the parent company of
the Borrower, entered into a Guarantee and Pledge Agreement dated as of September 30, 2003
with JPMorgan Chase Bank, as administrative agent, in connection with the
Existing Credit Agreement.

 

The parties
hereto have agreed to amend the Existing Credit Agreement in certain respects
(including to incorporate herein the guarantee of the Holding Company in
respect of the extensions of credit hereunder) and to restate the Existing
Credit Agreement as so amended as provided in this Agreement (and, in that
connection, certain lenders not currently party to the Existing Credit
Agreement shall become a party hereto and certain lenders that are currently
party thereto shall cease to be so, all as set forth herein), which shall
become effective upon the satisfaction of certain conditions precedent set
forth in Section 5.01.

 

Accordingly,
the parties hereto agree that on the Second Restatement Effective Date (as
defined below) the Existing Credit Agreement shall be amended and restated as
follows:

 

ARTICLE I

DEFINITIONS

 

SECTION 1.01.  Defined
Terms.  As
used in this Agreement, the following terms have the meanings specified below:

 

“ABR”, when used in reference to any
Loan or Borrowing, refers to whether such Loan, or the Loans comprising such
Borrowing, are bearing interest at a rate determined by reference to the
Alternate Base Rate.

 

“Acquisitions” means the Approved
Acquisitions and the Other Acquisitions.

 

“Additional Subordinated Notes” has
the meaning assigned to such term in Section 7.01(c).

 

Second Amended and Restated Credit Agreement

 

 

“Adjusted LIBO Rate” means, with
respect to any Eurodollar Borrowing for any Interest Period, an interest rate
per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to (a) the
LIBO Rate for such Interest Period multiplied by (b) the Statutory
Reserve Rate.

 

“Administrative Agent” means JPMCB, in
its capacity as administrative agent for the Lenders hereunder.

 

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

 

“Affiliate” means, with respect to a
specified Person, another Person that directly, or indirectly through one or
more intermediaries, Controls or is Controlled by or is under common Control
with the Person specified. 
Notwithstanding the foregoing, no individual shall be deemed to be an
Affiliate solely by reason of his or her being a director, officer or employee
of the Borrower or any of its Subsidiaries and the Borrower and its Subsidiaries
shall not be deemed to be Affiliates of each other.

 

“Aggregate Consideration” means, in
connection with any Acquisition, the aggregate consideration, in whatever form
(including cash payments, the principal amount of promissory notes and
Indebtedness assumed, the aggregate amounts payable to acquire, extend and
exercise any option, the aggregate amount payable under non-competition
agreements and management agreements, and the fair market value of other
property delivered) paid, delivered or assumed by the Borrower and its
Subsidiaries for such Acquisition.

 

“Alternate Base Rate” means, for any
day, a rate per annum equal to the greater of (a) the Prime Rate in effect
on such day and (b) the Federal Funds Effective Rate in effect on such day
plus 0.50%.  Any change in
the Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

 

“Ancillary Documents” means the Asset
Use and Operating Agreements, the Program Services Agreements, the Outsourcing
Agreements, the Subordinated Debt Documents, the Senior Note Documents and the
Material Acquisition Documents.

 

“Applicable Percentage” means (a) with
respect to any Revolving Lender for purposes of Section 2.01(d) or 2.04
or in respect of any indemnity claim under Section 10.03(c) arising
out of an action or omission of the Swing Line Lender or the Issuing Lender
under this Agreement, the percentage of the total Revolving Commitments
represented by such Revolving Lender’s Revolving Commitment, and (b) with
respect to any Lender in respect of any indemnity claim under Section 10.03(c) arising
out of an action or omission of the Administrative Agent under this Agreement,
the percentage of the total Commitments or Loans of each of the Classes
hereunder represented by the aggregate amount of such Lender’s Commitments or
Loans of each of the Classes hereunder. 
If the Revolving Commitments have

 

2

 

terminated or expired, the
Applicable Percentages shall be determined based upon the Revolving Commitments
most recently in effect, giving effect to any assignments.

 

“Applicable Rate” means, for any day, with respect to any ABR
Revolving Loan (including any Swing Line Loan), Eurodollar Revolving Loan, ABR
Term Loan or Eurodollar Term Loan, or with respect to the commitment fees
payable hereunder, as the case may be, the applicable rate per annum set forth
below under the caption “Revolving ABR Spread”, “Revolving Eurodollar Spread”, “Term
Loan ABR Spread”, “Term Loan Eurodollar Spread” or “Commitment Fee Rate”,
respectively, based upon the Total Indebtedness Ratio as of the most recent
determination date; provided that, notwithstanding anything herein to
the contrary, (i) effective for the period from the Second Restatement
Effective Date through December 31, 2005, the “Applicable Rate” with
respect to Revolving Loans, Term Loans and commitment fees for purposes of
determining (x) the Revolving ABR Spread or the Term Loan ABR Spread, as
applicable, shall be 0.25% per annum, (y) the Revolving Eurodollar Spread
or the Term Loan Eurodollar Spread, as applicable, shall be 1.25% per annum and
(z) the commitment fees shall be 0.375% per annum, and thereafter such
Applicable Rate shall be subject to adjustment as provided in the last
paragraph of this definition, except that the adjustment, if any, to be made on
January 1, 2006 shall be based on the Total Indebtedness Ratio determined
as of September 30, 2005 based upon the Borrower’s unaudited consolidated
financial statements for the fiscal quarter ending on such date delivered
pursuant to Section 6.01(b) (and the related Financial Officer’s
certificate delivered pursuant to Section 6.01(c)) and (ii) during
any period that a Post-Default Condition shall have occurred and be continuing,
the Applicable Rate with respect to any ABR Revolving Loan, Eurodollar
Revolving Loan, ABR Term Loan or Eurodollar Term Loan, as the case may be,
shall be the highest rate set forth below under the caption “Revolving ABR
Spread”, “Revolving Eurodollar Spread”, “Term Loan ABR Spread” or “Term Loan
Eurodollar Spread”, respectively:

 

	
  Total

  Indebtedness

  Ratio:

  	
   

  	
  Revolving

  ABR

  Spread (%)

  	
   

  	
  Revolving

  Eurodollar

  Spread (%)

  	
   

  	
  Term Loan

  ABR

  Spread (%)

  	
   

  	
  Term Loan

  Eurodollar

  Spread (%)

  	
   

  	
  Commitment

  Fee Rate (%)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greater than
  or equal to 6.00 to 1

  	
   

  	
  0.25

  	
   

  	
  1.25

  	
   

  	
  0.25

  	
   

  	
  1.25

  	
   

  	
  0.375

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less than
  6.00 to 1 and greater than or equal to 5.50 to 1

  	
   

  	
  0

  	
   

  	
  1.00

  	
   

  	
  0

  	
   

  	
  1.00

  	
   

  	
  0.375

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less than
  5.50 to 1 and greater than or equal to 5.00 to 1

  	
   

  	
  0

  	
   

  	
  0.875

  	
   

  	
  0

  	
   

  	
  0.875

  	
   

  	
  0.25

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less than
  5.00 to 1

  	
   

  	
  0

  	
   

  	
  0.75

  	
   

  	
  0

  	
   

  	
  0.75

  	
   

  	
  0.25

  	
   

  

 

3

 

For purposes of the foregoing (but subject to
the proviso above), (A) the Total Indebtedness Ratio shall be determined
as of the end of each fiscal quarter of the Borrower’s fiscal year based upon
the Borrower’s consolidated financial statements delivered pursuant to Section 6.01(a) or (b) (and
as set forth in the related certificate of a Financial Officer delivered
pursuant to Section 6.01(c)) and (B) each change in the Applicable
Rate resulting from a change in the Total Indebtedness Ratio shall be effective
on the date three Business Days after the receipt by the Administrative Agent
of such certificate and shall remain effective until the effective date of the
next such change; provided that, notwithstanding the foregoing, the
Applicable Rate shall not as a consequence of this proviso be reduced for any
period during which an Event of Default shall have occurred and be
continuing.  Notwithstanding the
foregoing, the Applicable Rate with respect to any Incremental Loan and any
Incremental Loan Commitment means the rate per annum for such Incremental Loan
and Incremental Loan Commitment agreed to by the Borrower and the respective
Incremental Lender in the related Incremental Loan Amendment.

 

“Approved Acquisitions” means the
acquisitions identified in Schedule 7.04.

 

“Approved Fund” means any Person
(other than a natural person) that is engaged in making, purchasing, holding or
investing in bank loans and similar extensions of credit in the ordinary course
of its business and that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

 

“Asset Use and Operating Agreements” means (a) the
agreements listed in Schedule 4.20 and (b) with respect to each Owned
Station hereafter acquired by the Borrower, an Asset Use and Operating
Agreement substantially in the form of Exhibit D entered into after the
date hereof, as contemplated by Section 7.14, between the Subsidiary of
the Borrower that operates such Owned Station and a License Subsidiary with
respect to such Owned Station.

 

“Assignment and Assumption” means an
assignment and assumption entered into by a Lender and an assignee (with the
consent of any party whose consent is required by Section 10.04), and
accepted by the Administrative Agent, in the form of Exhibit C or any
other form approved by the Administrative Agent.

 

“Average Life to Maturity” means, as
at any day with respect to any Indebtedness, the quotient obtained by dividing (a) the
sum of the products of (i) the number of years from such day to the date
or dates of each successive principal or redemption payment of such
Indebtedness multiplied by (ii) the amount of each such principal or
redemption payment by (b) the sum of all such principal or redemption payments.  The Average Life to Maturity of commitment
reductions shall be determined in like manner as if the relevant commitments
were at all times fully drawn.

 

“BCF Percentage” means, at any date,
the ratio, expressed as a percentage, obtained by dividing (a) the portion
of Broadcast Cash Flow attributable to Contract Stations for

 

4

 

the twelve month period ending
on, or most recently ended prior to such date by (b) Broadcast Cash Flow
for such period.

 

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

 

“Borrower” means Sinclair Television
Group, Inc., a Maryland corporation.

 

“Borrowing” means Loans of the same Class and
Type, made, converted or continued on the same date and, in the case of
Eurodollar Loans, as to which a single Interest Period is in effect.

 

“Borrowing Request” means a request by
the Borrower for a Borrowing in accordance with Section 2.03.

 

“Broadcast Cash Flow” means, for any
period, the sum of EBITDA plus Corporate Expense for such period; provided
that, for the purposes of the definition of “Unrestricted Subsidiary”,
Broadcast Cash Flow shall refer to EBITDA and Corporate Expense as if each
reference therein to Borrower and its Subsidiaries included Unrestricted
Subsidiaries.

 

“Broadcast Licenses” means (a) the
licenses, permits, authorizations or certificates to construct, own or operate
the Stations granted by the FCC, and all extensions, additions and renewals
thereto or thereof, and (b) the licenses, permits, authorizations or
certificates which are necessary to construct, own or operate the Stations
granted by administrative law courts or any state, county, city, town, village
or other local government authority, and all extensions, additions and renewals
thereto or thereof.

 

“Business Day” means any day that is
not a Saturday, Sunday or other day on which commercial banks in New York City
are authorized or required by law to remain closed; provided that, when
used in connection with a Eurodollar Loan, the term “Business Day” shall also
exclude any day on which banks are not open for dealings in dollar deposits in
the London interbank market.

 

“Capital Expenditures” means, for any
period, expenditures (including the aggregate amount of Capital Lease
Obligations incurred during such period) made by the Borrower or any of its
Subsidiaries to acquire or construct fixed assets, plant and equipment
(including renewals, improvements and replacements, but excluding repairs)
during such period computed in accordance with GAAP, but excluding any such
expenditures made as part of any Acquisition.

 

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

 

5

 

“Change in Law” means (a) the
adoption of any law, rule or regulation after the date hereof, (b) any
change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this
Agreement or (c) compliance by any Lender or the Issuing Lender (or, for
purposes of Section 2.13(b), by any lending office of such Lender or by
such Lender’s or the Issuing Lender’s holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.

 

“Class”, when used in reference to any
Loan or Borrowing, refers to whether such Loan, or the Loans comprising such
Borrowing, are Revolving Loans, Swing Line Loans, Term Loans or Incremental
Loans and, when used in reference to any Commitment, refers to whether such
Commitment is a Revolving Commitment, a Term Loan Commitment, an Incremental
Revolving Commitment or an Incremental Term Loan Commitment.

 

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

 

“Collateral Account” has the meaning
assigned to such term in Section 4.01 of the Security Agreement.

 

“Commitment” means a Revolving
Commitment, a Term Loan Commitment, an Incremental Revolving Commitment or an
Incremental Term Loan Commitment, or any combination thereof (as the context
requires).

 

“Confidential Information Memorandum”
means the Confidential Information Memorandum dated April 2005 with
respect to the syndication of the credit facilities provided herein.

 

“Consent and Agreement” means a
Consent and Agreement substantially in the form of Exhibit E.

 

“Contract Station” means (a) each
television or radio station identified as such in Schedule 1.03, (b) each
television or radio station that is the subject of an acquisition referred to
in clause (b) of the definition of “Other Acquisition” in this Section consummated
by the Borrower or any Subsidiary on or after the date hereof and (c) any
television or radio station with which the Borrower or any Subsidiary has
entered into any Program Services Agreement, Outsourcing Agreement or other
similar agreement on or after the date hereof, in each case until such time, if
any, as the Borrower or any Subsidiary acquires the Broadcast License of such
television or radio station and such station becomes an Owned Station.

 

“Contractual Obligations” of any
Person means any provision of any security issued by such Person or of any
agreement, instrument or other undertaking to which such Person is a party or
by which it or any of its property is bound.

 

“Control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of a Person, whether through the ability to

 

6

 

exercise voting power, by
contract or otherwise; provided that, in any event, any Person which
owns directly or indirectly 5% or more of the securities having ordinary voting
power for the election of directors or other governing body of a corporation or
5% or more of the partnership or other ownership interests of any other Person
(other than as a limited partner of such other Person) will be deemed to
control such corporation, partnership or other Person.  “Controlling” and “Controlled”
have meanings correlative thereto.

 

“Converted Senior Subordinated Notes”
has the meaning assigned to such term in Section 7.01(d).

 

“Corporate Expense” means, for any
period, (a) all general and administrative expenses of the Borrower
(including all general and administrative expenses of the Holding Company in
respect of the Borrower) for such period and (b) without duplication, Holding
Company Corporate Expense but only to the extent exceeding $8,000,000 in the
aggregate for any period of twelve consecutive full calendar months.

 

“Cunningham” means Cunningham
Broadcasting Corporation, a Maryland corporation.

 

“Cunningham Options” means options for
the purchase of all of the issued and outstanding voting and non-voting stock
of Cunningham.

 

“Debt Service” means, for any period,
the sum, for the Borrower and its Subsidiaries (determined on a consolidated
basis without duplication in accordance with GAAP), of the following:  (a) all scheduled payments of principal
of Indebtedness (including the principal component of any payments in respect
of Capital Lease Obligations, but excluding any optional or mandatory
prepayments) scheduled to be made during such period plus (b) all
Interest Expense for such period plus (c) fees and other
expenses payable in connection with this Agreement for such period (excluding
such fees and expenses constituting transaction costs payable on the Second
Restatement Effective Date, but including agency fees).

 

“Default” means any event or condition
which constitutes an Event of Default or which upon notice, lapse of time or
both would, unless cured or waived, become an Event of Default.

 

“Disposition” means any sale,
assignment, transfer or other disposition of any property (whether now owned or
hereafter acquired) by the Borrower or any of its Subsidiaries to any other
Person other than any sale, assignment, transfer or other disposition of any
property sold or disposed of in the ordinary course of business and on ordinary
business terms.

 

“dollars” or “$” refers to lawful
money of the United States of America.

 

“EBITDA” means, for any period, the
sum, for the Borrower and its Subsidiaries (determined on a consolidated basis
without duplication in accordance with GAAP), of the following for such period
(subject to Section 1.05(d)):  (a) net
income for such period; plus (b) the sum of, to the extent
deducted in determining net income for such period,

 

7

 

(i) provision for taxes, (ii) depreciation
and amortization (including film amortization), (iii) Interest Expense, (iv) Permitted
Termination Payments (or to the extent the same shall be included in
determining Corporate Expense pursuant to clause (c)(ii) below for
such period), (v) Restricted Payments made by the Borrower and its
Subsidiaries as permitted by Section 7.08 (or to the extent the same shall
be included in determining Corporate Expense pursuant to clause (c)(ii) below
for such period), (vi) extraordinary losses (including non-cash losses on
sales of property outside the ordinary course of business of the Borrower and
its Subsidiaries) and (vii) all other non-cash charges (including non-cash
losses on derivative transactions); minus (c) the sum of, to
the extent included in net income for such period, (i) non-cash revenues, (ii) Corporate
Expense (but only to the extent already not deducted in determining net income
for such period), (iii) interest and other income, (iv) extraordinary
gains (including non-cash gains on sales of assets outside the ordinary course
of business), (v) benefit from taxes and (vi) non-cash gains on
derivative transactions; minus (d) Film Cash Payments made or
scheduled to be made during such period.

 

“EBITDA Percentage” means, as of the
date of the consummation of any sale, disposition or exchange of assets (or
capital stock or other ownership interests) contemplated by clause (d) or (e) of
Section 7.05 (but excluding the EBITDA attributable to the assets of
KOVR-TV (Sacramento, California) and KSMO-TV (Kansas City, Missouri)), the
ratio, expressed as a percentage, obtained by dividing (a) the portion of
EBITDA attributable to such assets (or capital stock or other ownership
interests) for the twelve month period ending on, or most recently ended prior
to, such date by (b) EBITDA for such period.

 

“Environmental Laws” means all laws,
rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions,
notices or binding agreements issued, promulgated or entered into by any
Governmental Authority, relating in any way to the environment, preservation or
reclamation of natural resources, the management, release or threatened release
of any Hazardous Material or to health and safety matters.

 

“Environmental Liability” means any
liability, contingent or otherwise (including any liability for damages, costs
of environmental remediation, fines, penalties or indemnities), of the Borrower
or any Subsidiary directly or indirectly resulting from or based upon (a) violation
of any Environmental Law, (b) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure
to any Hazardous Materials, (d) the release or threatened release of any
Hazardous Materials into the environment or (e) any contract, agreement or
other consensual arrangement pursuant to which liability is assumed or imposed
with respect to any of the foregoing.

 

“Equity Issuance” means (a) any
issuance or sale by the Borrower or any of its Subsidiaries after the Second
Restatement Effective Date of (i) any capital stock, (ii) any
warrants or options exercisable in respect of capital stock (other than any
warrants or options relating to capital stock of the Borrower issued to
directors, officers or employees of the Borrower or any of its Subsidiaries
pursuant to employee benefit plans established in the ordinary course of
business and any capital stock of the Borrower issued upon the exercise of such
warrants or options) or (iii) any other security or instrument
representing an ownership interest (or the right to obtain any ownership
interest) in the Borrower or any of its Subsidiaries

 

8

 

or (b) the receipt by the
Borrower or any of its Subsidiaries after the Second Restatement Effective Date
of any capital contribution (whether or not evidenced by any equity security
issued by the recipient of such contribution); provided that Equity
Issuance shall not include (x) any such issuance or sale by any Subsidiary
of the Borrower to the Borrower or any Wholly Owned Subsidiary of the Borrower,
(y) any capital contribution by the Borrower or any Wholly Owned
Subsidiary of the Borrower to any Subsidiary of the Borrower or (z) any
split-up, revision, reclassification or other like change of any outstanding
capital stock or other ownership interests.

 

“Equity Rights” means, with respect to
any Person, any subscriptions, options, warrants, commitments, preemptive
rights or agreements of any kind (including any shareholders’ or voting trust
agreements) for the issuance, sale, registration or voting of, or securities
convertible into, any additional shares of capital stock of any class, or
partnership or other ownership interests of any type in, such Person.

 

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

 

“ERISA Affiliate” means any trade or
business (including Unrestricted Subsidiaries and whether or not incorporated)
that, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of
the Code, or, solely for purposes of Section 302 of ERISA and Section 412
of the Code, is treated as a single employer under Section 414 of the
Code.

 

“ERISA Event” means (a) any “reportable
event”, as defined in Section 4043 of ERISA or the regulations issued
thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b) the existence with respect to any Plan of an
“accumulated funding deficiency” (as defined in Section 412 of the Code or
Section 302 of ERISA), whether or not waived; (c) the filing pursuant
to Section 412(d) of the Code or Section 303(d) of ERISA of
an application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of
any liability under Title IV of ERISA with respect to the termination of
any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the
PBGC or a plan administrator of any notice relating to an intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the
incurrence by the Borrower or any of its ERISA Affiliates of any liability with
respect to the withdrawal or partial withdrawal from any Plan or Multiemployer
Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any
notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA
Affiliate of any notice, concerning the imposition of Withdrawal Liability or a
determination that a Multiemployer Plan is, or is expected to be, insolvent or
in reorganization, within the meaning of Title IV of ERISA.

 

“Eurodollar”, when used in reference
to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising
such Borrowing, are bearing interest at a rate determined by reference to the
Adjusted LIBO Rate.

 

“Event of Default” has the meaning
assigned to such term in Article VIII.

 

9

 

“Excluded Taxes” means, with respect
to the Administrative Agent, any Lender, the Issuing Lender or any other
recipient of any payment to be made by or on account of any obligation of the
Borrower hereunder, (a) income or franchise taxes imposed on (or measured
by) its net income by the United States of America, or by the jurisdiction
under the laws of which such recipient is organized or in which its principal
office is located or, in the case of any Lender, in which its applicable
lending office is located, (b) any branch profits taxes imposed by the
United States of America or any similar tax imposed by any other jurisdiction
in which the Borrower is located and (c) in the case of a Foreign Lender
(other than an assignee pursuant to a request by the Borrower under Section 2.17(b)),
any withholding tax that is imposed on amounts payable to such Foreign Lender
at the time such Foreign Lender becomes a party to this Agreement or is
attributable to such Foreign Lender’s failure or inability to comply with Section 2.15(e),
except to the extent that such Foreign Lender’s assignor (if any) was entitled,
at the time of assignment, to receive additional amounts from the Borrower with
respect to such withholding tax pursuant to Section 2.15(a).

 

“Existing Credit Agreement” has the
meaning assigned to such term in the second paragraph of this Agreement.

 

“Existing Letters of Credit” has the
meaning assigned to such term in Section 2.04(a).

 

“Existing Revolving Loans” means the
Revolving Loans (as defined in the Existing Credit Agreement) made thereunder
and outstanding immediately prior to the Second Restatement Effective Date.

 

“Existing Senior Subordinated Indebtedness”
means the Indebtedness evidenced or provided by the Existing Senior
Subordinated Note Indentures (including the senior subordinated notes issued by
the Borrower from time to time thereunder and the Guarantees of such
Indebtedness provided by any Subsidiary Guarantor thereunder).

 

“Existing Senior Subordinated Note
Indentures” means the indentures in effect on the Second Restatement Effective
Date and described in Schedule 1.01(b).

 

“FCC” means the Federal Communications
Commission or any governmental authority substituted therefor.

 

“Federal Funds Effective Rate” means,
for any day, the weighted average (rounded upwards, if necessary, to the next
1/100 of 1%) of the rates on overnight Federal funds transactions with members
of the Federal Reserve System arranged by Federal funds brokers, as published
on the next succeeding Business Day by the Federal Reserve Bank of New York,
or, if such rate is not so published for any day that is a Business Day, the
average (rounded upwards, if necessary, to the next 1/100 of 1%) of the
quotations for such day for such transactions received by the Administrative
Agent from three Federal funds brokers of recognized standing selected by it.

 

10

 

“Film Cash Payments” means, for any
period, the sum (determined on a consolidated basis and without duplication) of
all payments by the Borrower and its Subsidiaries made or scheduled to be made
during such period in respect of Film Obligations; provided that amounts
applied to the prepayment of Film Obligations owing under any contract
evidencing a Film Obligation under which the amount owed by the Borrower or any
of its Subsidiaries exceeds the remaining value of such contract to the
Borrower or such Subsidiary, as reasonably determined by the Borrower shall not
be deemed to be Film Cash Payments.  For
the purposes of Section 7.11(e) only, (a) if the payment schedule for
a Film Obligation is modified at no cost (including, but not limited to,
interest costs) to the Borrower or any of its Subsidiaries, then the payments
with respect to such Film Obligation shall be deemed to be scheduled to be made
pursuant to such modified schedule and (b) any down payment on a Film
Obligation shall be equally allocated over the term of the payment period for
such Film Obligation in an amount per month during such payment period equal to
the amount of such down payment divided by the number of months during such
payment period.

 

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

 

“FIN 46” means Interpretation No. 46,
“Consolidation of Variable Interest Entities”, issued by FASB, as amended from
time to time.

 

“Final FCC Order” means an order of
the FCC that is no longer subject to reconsideration or review by the FCC or by
any court or administrative body.

 

“Financial Officer” means the chief
financial officer or treasurer of the Borrower or the Holding Company, as
applicable.

 

“Fixed Charges Ratio” means, as at any
date, the ratio of (a) EBITDA for the period of the four fiscal quarters
ending on or most recently ended prior to such date to (b) the sum for
such period of (i) Debt Service plus (ii) Capital
Expenditures (but excluding Capital Expenditures relating to the implementation
of digital television) except to the extent financed through Capital Lease
Obligations permitted under clause (b), (i) or (l) of Section 7.01
plus (iii) the aggregate amount of Federal and state income
taxes paid by the Borrower and its Subsidiaries (excluding any such taxes
resulting from gains on the sale of any property), net of refunds, during such
period plus (iv) Restricted Payments made as permitted by Section 7.08(d) during
such period.

 

“Foreign Lender” means any Lender that
is organized under the laws of a jurisdiction other than that in which the
Borrower is located.  For purposes of
this definition, the United States of America, each State thereof and the
District of Columbia shall be deemed to constitute a single jurisdiction.

 

“GAAP” means generally accepted accounting
principles in the United States of America.

 

11

 

“Governmental Authority” means the
government of the United States of America, any other nation or any political
subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.

 

“Guarantee” of or by any Person (the “guarantor”)
means any obligation, contingent or otherwise, of the guarantor guaranteeing or
having the economic effect of guaranteeing any Indebtedness or other obligation
of any other Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of the guarantor, direct
or indirect, (a) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation or to purchase
(or to advance or supply funds for the purchase of) any security for the
payment thereof, (b) to purchase or lease property, securities or services
for the purpose of assuring the owner of such Indebtedness or other obligation
of the payment thereof, (c) to maintain working capital, equity capital or
any other financial statement condition or liquidity of the primary obligor so
as to enable the primary obligor to pay such Indebtedness or other obligation
or (d) as an account party in respect of any letter of credit or letter of
guaranty issued to support such Indebtedness or obligation; provided
that the term “Guarantee” shall not include (i) endorsements for
collection or deposit in the ordinary course of business or (ii) any
Program Services Agreement or any obligations thereunder.

 

“Guarantee Assumption Agreement” means
a Guarantee Assumption Agreement substantially in the form of Exhibit B by
an entity that, pursuant to Section 6.09(a) or (d), is required
to become a “Subsidiary Guarantor” or “Guarantor”, respectively, hereunder in
favor of the Administrative Agent.

 

“Guaranteed Debt” of any Person means,
without duplication, all Indebtedness of any other Person referred to in the
definition of Indebtedness guaranteed directly or indirectly in any manner by
such Person, or in effect guaranteed directly or indirectly by such Person
through an agreement (a) to pay or purchase such Indebtedness or to
advance or supply funds for the payment or purchase of such Indebtedness, (b) to
purchase, sell or lease (as lessee or lessor) property, or to purchase or sell
services, primarily for the purpose of enabling the debtor to make payment of
such Indebtedness or to assure the holder of such Indebtedness against loss, (c) to
supply funds to, or in any other manner invest in, the debtor (including any
agreement to pay for property or services without requiring that such property
be received or such services be rendered), (d) to maintain working capital
or equity capital of the debtor, or otherwise to maintain the net worth,
solvency or other financial condition of the debtor or (e) otherwise to
assure a creditor against loss.

 

“Guaranteed Obligations” has the
meaning assigned to such term in Section 3.01.

 

“Guarantors” means, collectively, (a) the
Holding Company, (b) the Subsidiary Guarantors and (c) each other
Subsidiary of the Holding Company that becomes a “Guarantor” after the date
hereof pursuant to Section 6.09(d).

 

12

 

“Hazardous Materials” means all
explosive or radioactive substances or wastes and all hazardous or toxic
substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos containing materials, polychlorinated
biphenyls, radon gas, infectious or medical wastes and all other substances or wastes
of any nature regulated pursuant to any Environmental Law.

 

“Hedging Agreement” means any swap
agreement, cap agreement, collar agreement, put or call, futures contract,
forward contract or similar agreement or arrangement entered into to protect against
or mitigate the effect of fluctuations in the price of the Borrower’s publicly
issued common stock or in interest rates, foreign exchange rates or prices of
commodities used in the business of the Borrower and its Subsidiaries and any
master agreement relating to any of the foregoing.

 

“Holding Company” means Sinclair
Broadcast Group, Inc., a Maryland corporation.

 

“Holding Company Corporate Expense”
means, for any period, all general and administrative expenses of the Holding
Company funded by dividends pursuant to Section 7.08(c) or by
management fees or royalty fee payments from the Borrower or any of its
Subsidiaries to the Holding Company (excluding all such expenses in
respect of the Borrower and its Subsidiaries) for such period.

 

“Immaterial Broadcast Licenses” means (a) Broadcast
Licenses (other than main transmitter licenses, auxiliary transmitter licenses
(to the extent in existence on the date hereof and necessary for the continued
operation of the Stations) and studio transmitter links (to the extent
necessary for the continued operation of the Stations), in each case granted by
the FCC, and extensions and renewals thereto or thereof) the absence of which
individually or together could not have a Material Adverse Effect and (b) either
a paired digital channel or a paired analog channel (but not both) which is
returned to the FCC pursuant to the FCC’s plan for transition to digital
television broadcasting.

 

“Incremental Lender” means a Lender
with an Incremental Loan Commitment or an outstanding Incremental Loan.

 

“Incremental Loan” means an
Incremental Revolving Loan or an Incremental Term Loan.

 

“Incremental Loan Amendment” means any
amendment to this Agreement pursuant to which Incremental Loan Commitments of
any Series are established pursuant to Section 2.01(c).

 

“Incremental Loan Commitment” means an
Incremental Revolving Commitment or an Incremental Term Loan Commitment.  The aggregate amount of the Incremental Loan
Commitments on the Second Restatement Effective Date is zero and at any time
thereafter shall not exceed $325,000,000.

 

13

 

“Incremental
Revolving Commitment” means, with respect to each Incremental Lender of any
Series, the commitment, if any, of such Lender to make Incremental Revolving
Loans of such Series hereunder.  The
initial amount of each Lender’s Incremental Revolving Commitment of any Series will
be specified in the Incremental Loan Amendment for such Series, or will be set
forth in the Assignment and Assumption pursuant to which such Lender shall have
assumed its Incremental Revolving Commitment of such Series.

 

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

 

“Incremental Revolving Maturity Date”
means, with respect to the Incremental Revolving Loans of any Series, the
maturity date for such Incremental Revolving Loans of such Series as
specified in the Incremental Loan Amendment for such Series.

 

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

 

“Incremental
Term Loan Commitment” means, with respect to each Incremental Lender of any
Series, the commitment, if any, of such Lender to make Incremental Term Loans
of such Series hereunder.  The
initial amount of each Lender’s Incremental Term Loan Commitment of any Series will
be specified in the Incremental Loan Amendment for such Series, or will be set
forth in the Assignment and Assumption pursuant to which such Lender shall have
assumed its Incremental Term Loan Commitment of such Series.

 

“Incremental Term Loan Maturity Date”
means, with respect to the Incremental Term Loans of any Series, the maturity
date for such Incremental Term Loans of such Series as specified in the
Incremental Loan Amendment for such Series.

 

“Incremental Term Loan Principal Payment
Date” means, for each Series of Incremental Term Loans, the date or
dates for repayment of such Incremental Term Loans as specified in the
Incremental Loan Amendment for such Series.

 

“Indebtedness” means of any Person
(without duplication): (a) indebtedness created, issued or incurred by
such Person for borrowed money (whether by loan or the issuance and sale of
debt securities or the sale of property to another Person subject to an
understanding or agreement, contingent or otherwise, to repurchase such
property from such Person); (b) obligations of such Person to pay the
deferred purchase or acquisition price of property or services, other than
trade accounts payable (other than for borrowed money) arising, and accrued
expenses incurred, in the ordinary course of business so long as such trade
accounts payable are payable within 90 days of the date the respective goods
are delivered or the respective services are rendered; (c) Indebtedness of
others secured by a Lien on the property of such Person, whether or not the
respective Indebtedness so secured has been assumed by such Person; (d) obligations
of such Person in respect of letters of credit or similar instruments issued or
accepted by banks and other financial institutions for account of such Person; (e) Capital
Lease Obligations of such Person; (f) Indebtedness of others guaranteed by
such Person; (g) if the Aggregate Consideration payable by such Person to
extend and exercise any option acquired in

 

14

 

connection with any Other
Acquisition (an “Extension and Exercise Price”) exceeds 20% of the
Aggregate Consideration payable in connection with such Other Acquisition, such
Extension and Exercise Price and (h) any Put Obligations, but only to the
extent that such Put Obligations (other than the Put Obligations in existence
on the Second Restatement Effective Date relating to WNAB-TV (Nashville,
Tennessee)), whether arising under the same or different agreements, exceeding
$25,000,000 in the aggregate shall not have been approved by the Administrative
Agent (such approval not to be unreasonably withheld) prior to the incurrence
thereof; provided that the term “Indebtedness” shall not include (i) Film
Obligations of such Person, (ii) obligations of such Person under any
Program Services Agreement, Outsourcing Agreement or other similar agreement, (iii) Preferred
Stock issued by such Person (including Preferred Stock issued by such Person
that is convertible by its terms (whether at the option of the holder or the
issuer thereof or otherwise) into Converted Senior Subordinated Notes at any
time prior to such conversion), (iv) any liability shown on such Person’s
balance sheet in respect of the fair value of Interest Rate Protection
Agreements, (v) any Put Obligations (other than those Put Obligations
included as “Indebtedness” under clause (h) of this definition) and (vi) any
liability shown on the balance sheet of such Person solely as a result of the
application of FIN 46 and for which such Person is not primarily or
contingently liable for payment.

 

“Indemnified Taxes” means Taxes other
than Excluded Taxes.

 

“Initial FCC Order” means an order of
the FCC that is not a Final FCC Order.

 

“Interest Coverage Ratio” means, as at
any date, the ratio of (a) EBITDA for the period of the four fiscal
quarters ending on or most recently ended prior to such date to (b) Interest
Expense for such period.

 

“Interest Election Request” means a
request by the Borrower to convert or continue a Borrowing in accordance with Section 2.06.

 

“Interest Expense” means, for any
period, the sum, for the Borrower and its Subsidiaries (determined on a
consolidated basis without duplication in accordance with GAAP), of the
following:  (a) all interest in
respect of Indebtedness accrued or capitalized during such period (whether or
not actually paid during such period plus (b) the net amounts
payable (or minus the net amounts receivable) under Interest Rate
Protection Agreements accrued during such period (whether or not actually paid
or received during such period) minus (c) all cash interest
income received during such period; provided that in no event shall the
term “Interest Expense” for any period include, to the extent included in
interest expense in accordance with GAAP, (i) the amortization of deferred
financing fees during such period, (ii) the amortization during such
period to interest expense of losses on previously terminated or modified
Interest Rate Protection Agreements and (iii) gains or losses from the
extinguishment of debt.  Any reference
herein to calculating Interest Expense for any period on a “pro forma” basis
means that, for purposes of the clause (a) above, (i) the
Indebtedness on the basis of which Interest Expense is so calculated shall mean
Indebtedness outstanding as of the relevant date of calculation after giving
effect to any repayments and any incurrence of Indebtedness on such date and (ii) such
calculation shall be made applying the respective rates of interest in effect
for such Indebtedness on such date.

 

15

 

“Interest Payment Date” means (a) with
respect to any ABR Loan (other than Swing Line Loans), each Quarterly
Date, (b) with respect to any Eurodollar Loan, the last day of the
Interest Period applicable to the Borrowing of which such Loan is a part and,
in the case of a Eurodollar Borrowing with an Interest Period of more than
three months’ duration, each day prior to the last day of such Interest Period
that occurs at intervals of three months’ duration after the first day of such
Interest Period and (c) with respect to any Swing Line Loan, the day that
such Loan is required to be repaid.

 

“Interest Period” means, with respect
to any Eurodollar Borrowing, the period commencing on the date of such
Borrowing and ending on the numerically corresponding day in the calendar month
that is one, two, three or six months (or, with the consent of each Lender,
nine months) thereafter, as the Borrower may elect; provided that (i) if
any Interest Period would end on a day other than a Business Day, such Interest
Period shall be extended to the next succeeding Business Day unless such next
succeeding Business Day would fall in the next calendar month, in which case
such Interest Period shall end on the next preceding Business Day and (ii) any
Interest Period that commences on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the last
calendar month of such Interest Period) shall end on the last Business Day of
the last calendar month of such Interest Period.  For purposes hereof, the date of a Borrowing
initially shall be the date on which such Borrowing is made and thereafter
shall be the effective date of the most recent conversion or continuation of
such Borrowing.

 

“Interest Rate Protection Agreement”
means a Hedging Agreement providing for the transfer or mitigation of interest
risks either generally or under specific contingencies.

 

“Investment” means, for any Person, (a) the
acquisition (whether for cash, property, services or securities or otherwise)
of capital stock, bonds, notes, debentures, partnership or other ownership
interests or other securities of any other Person or any agreement to make any
such acquisition (including any “short sale” or any sale of any securities at a
time when such securities are not owned by the Person entering into such sale),
(b) the making of any deposit with, or advance, loan or other extension of
credit to, any other Person (including the purchase of property from another
Person subject to an understanding or agreement, contingent or otherwise, to
resell such property to such Person), but excluding any such advance, loan or
extension of credit having a term not exceeding 90 days arising in connection
with the sale of programming or advertising time by such Person in the ordinary
course of business or (c) the entering into of any Guarantee of, or other
contingent obligation with respect to, Indebtedness or other liability of any
other Person and (without duplication) any amount committed to be advanced,
lent or extended to such Person.

 

“Issuing Lender” means JPMCB, in its
capacity as the issuer of Letters of Credit hereunder, and its successors in
such capacity as provided in Section 2.04(j).  The Issuing Lender may, in its discretion,
arrange for one or more Letters of Credit to be issued by Affiliates of the
Issuing Lender, in which case the term “Issuing Lender” shall include any such
Affiliate with respect to Letters of Credit issued by such Affiliate.

 

16

 

“JPMCB” means JPMorgan Chase Bank,
N.A.

 

“KDSM Entity” means KDSM LLC or KDSM
Licensee.

 

“KDSM Licensee” means KDSM Licensee,
LLC, a Delaware limited liability company that owns no property other than the
Broadcast Licenses relating to KDSM-TV and as of the date hereof a direct
Wholly Owned Subsidiary of KDSM LLC.

 

“KDSM LLC” means KDSM, LLC,
a Maryland limited liability company and as of the date hereof a direct Wholly
Owned Subsidiary of the Holding Company.

 

“LC Disbursement” means a payment made
by the Issuing Lender pursuant to a Letter of Credit.

 

“LC Exposure” means, at any time,
the sum of (a) the aggregate undrawn amount of all outstanding Letters of
Credit at such time plus (b) the aggregate amount of all LC
Disbursements that have not yet been reimbursed by or on behalf of the Borrower
at such time.  The LC Exposure of
any Lender at any time shall be its Applicable Percentage of the total
LC Exposure at such time.

 

“Lender Affiliate” means (a) with
respect to any Lender, (i) an Affiliate of such Lender or (ii) any
Person (whether a corporation, partnership, trust or otherwise) that is engaged
in making, purchasing, holding or otherwise investing in bank loans and similar
extensions of credit in the ordinary course of its business and is administered
or managed by a Lender or an Affiliate of such Lender and (b) with respect
to any Lender that is a fund that invests in bank loans, any other fund or
trust or entity that invests in bank loans and is advised or managed by the same
investment advisor as such Lender or by an Affiliate of such investment
advisor.

 

“Lenders” means the Persons listed on Schedule 1.01(a),
the Incremental Lenders (if any) and any other Person that shall have become a
party hereto pursuant to an Assignment and Assumption, other than any such
Person that ceases to be a party hereto pursuant to an Assignment and
Assumption.  Unless the context otherwise
requires, the term “Lenders” includes the Swing Line Lender.

 

“Letter of Credit” means any letter of
credit issued pursuant to this Agreement and shall include the Existing Letters
of Credit.

 

“Letter of Credit Documents” means,
with respect to any Letter of Credit, collectively, any application therefor
and any other agreements, instruments, guarantees or other documents (whether
general in application or applicable only to such Letter of Credit) governing
or providing for (a) the rights and obligations of the parties concerned
or at risk with respect to such Letter of Credit or (b) any collateral
security for any of such obligations, each as the same may be modified and
supplemented and in effect from time to time.

 

“LIBO Rate” means, with respect to any
Eurodollar Borrowing for any Interest Period, the rate appearing on Page 3750
of the Telerate Service (or on any successor or substitute

 

17

 

page of such Service, or
any successor to or substitute for such Service, providing rate quotations
comparable to those currently provided on such page of such Service, as
determined by the Administrative Agent from time to time for purposes of
providing quotations of interest rates applicable to dollar deposits in the
London interbank market) at approximately 11:00 a.m., London time, two
Business Days prior to the commencement of such Interest Period, as the rate
for dollar deposits with a maturity comparable to such Interest Period.  In the event that such rate is not available
at such time for any reason, then the LIBO Rate with respect to such Eurodollar
Borrowing for such Interest Period shall be the rate at which dollar deposits
of $5,000,000 and for a maturity comparable to such Interest Period are offered
by the principal London office of the Administrative Agent in immediately
available funds in the London interbank market at approximately 11:00 a.m.,
London time, two Business Days prior to the commencement of such Interest
Period.  The Administrative Agent will
furnish a copy of such Page 3750 or other documentation evidencing the
contents thereof to the Borrower upon its request.

 

“License Subsidiaries” means (a) with
respect to each Station that is an Owned Station on the date hereof, the
Subsidiary of the Borrower listed on Schedule 1.03 as the holder of the
Broadcast Licenses for such Owned Station and (b) with respect to any
Owned Station hereafter acquired by the Borrower or any of its Subsidiaries,
the Subsidiary of the Borrower formed, created, or acquired after the date
hereof that holds the Broadcast Licenses for such Owned Station, and in each
case any other Subsidiary into which any such License Subsidiary may be merged
pursuant to Section 7.03.

 

“Lien” means, with respect to any
asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation,
encumbrance, charge or security interest in, on or of such asset, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital
lease or title retention agreement (or any financing lease having substantially
the same economic effect as any of the foregoing) relating to such asset and (c) in
the case of securities, any purchase option, call or similar right of a third
party with respect to such securities.

 

“Loan Documents” means, collectively,
this Agreement, the promissory notes (if any) issued pursuant to Section 2.08(g),
the Letter of Credit Documents, the Guarantee Assumption Agreements (if any),
each Consent and Agreement and the Security Documents.

 

“Loans” means the loans made by the
Lenders to the Borrower pursuant to Section 2.01, and shall include
Incremental Loans unless the context otherwise requires.

 

“Margin Stock” means “margin stock”
within the meaning of Regulations T, U and X of the Board.

 

“Material Acquisition Documents” means
with respect to any Approved Acquisition or any Other Acquisition, the purchase
agreement or similar agreement or agreements pursuant to which such Acquisition
is to be consummated and all other related agreements and instruments in
connection with such Acquisition (together with any and all exhibits, annexes
and schedules thereto), but, in the case of any Other Acquisition, only to the
extent the Borrower is required to deliver copies of such agreements and
instruments pursuant to Section 7.04(e)(viii).

 

18

 

“Material Adverse Effect” means a
material adverse effect on (a) the business, assets, operations, prospects
or condition, financial or otherwise, of the Borrower and its Subsidiaries
taken as a whole, (b) the ability of any Obligor to perform any of its
obligations under this Agreement or any of the other Loan Documents to which it
is a party or (c) the rights of or benefits available to the Lenders under
this Agreement or any of the other Loan Documents.

 

“Material Third-Party Licensee” means
any Person holding a Broadcast License for one or more Contract Stations for
which the Broadcast Cash Flow attributable to such Stations, either
individually or in the aggregate, for the most recent twelve month period is
equal to or greater than three percent of the Broadcast Cash Flow for such
period.

 

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

 

“Multiemployer Plan” means a
multiemployer plan as defined in Section 4001(a)(3) of ERISA.

 

“Net Available Proceeds” means (a) in
the case of any Disposition, an amount (not less than zero) equal to the amount
of Net Cash Payments received by the Borrower and its Subsidiaries in
connection with such Disposition and (b) in the case of any Equity
Issuance, the aggregate amount of all cash received by the Borrower and its
Subsidiaries in respect thereof, net of reasonable expenses incurred by the
Borrower and its Subsidiaries in connection therewith.

 

“Net Cash Payments” means, with
respect to any Disposition, the aggregate amount of all cash payments
(including all cash payments received by way of deferred payment of principal
pursuant to a note or installment receivable or otherwise, but only as and when
received) received by the Borrower or its Subsidiaries directly or indirectly
in connection with such Disposition; provided that (a) Net Cash
Payments shall be net of (i) the amount of any legal, title and recording
tax expenses, commissions and other fees and expenses paid by the Borrower and
its Subsidiaries in connection with such Disposition and (ii) any Federal,
state and local income or other taxes estimated to be payable by the Borrower
and its Subsidiaries as a result of such Disposition (but only to the extent
that such estimated taxes are in fact paid to the relevant Governmental
Authority not later than twelve months after the date of such Disposition) and (b) Net
Cash Payments shall be net of any repayments by the Borrower or any of its
Subsidiaries of Indebtedness to the extent that (i) such Indebtedness is
secured by a Lien on the property that is the subject of such Disposition and (ii) the
transferee of (or holder of a Lien on) such property requires that such
Indebtedness be repaid as a condition to the Disposition of such property.

 

“Note Indentures” means, collectively,
the Senior Subordinated Note Indentures and the Senior Note Indentures.

 

“Obligors” means, collectively, (a) the
Borrower, (b) the Holding Company, (c) each Subsidiary Guarantor and (d) each
other Subsidiary of the Holding Company that becomes a “Guarantor” and a
pledgor party to the Security Agreement after the date hereof pursuant to Section 6.09(d).

 

19

 

“Operating Subsidiary” has the meaning
assigned to such term in Section 7.14(a).

 

“Other Acquisition” means (a) the
acquisition by the Borrower or any of its Subsidiaries in accordance with the
terms hereof of substantially all of the assets (including Broadcast Licenses)
of (i) a television or radio station in the United States in a single
transaction (i.e., not by means of the acquisition of an option for such assets
and the subsequent exercise of such option) or (ii) any business engaged
in an activity permitted under Section 7.06, (b) (i) the
acquisition by the Borrower or any of its Subsidiaries in accordance with the
terms hereof of (x) substantially all of the assets (other than Broadcast
Licenses and other property required pursuant to the rules and regulations
of the FCC to be sold in connection with the transfer of such Broadcast
Licenses) of a television or radio station in the United States and (y) an
option to acquire the Broadcast Licenses and such other assets of such
television or radio station and (ii) the entering into by the Borrower or
any of its Subsidiaries of an agreement contemplated by clause (b) of
the definition of “Program Services Agreement” in this Section with respect
to such station, (c) the consummation of the acquisition of assets by the
Borrower or any of its Subsidiaries pursuant to the exercise of an option
referred to in the preceding clause (b)(i)(y), together with the
termination of the related Program Services Agreement referred to in the
preceding clause (b)(ii), and (d) the acquisition of assets or
capital stock or other ownership interests of any Person pursuant to an
exchange permitted by Section 7.05(d); provided that the term “Other
Acquisition” shall not include any Approved Acquisition.  As used in this definition, the acquisition
of assets shall be deemed to include reference to the acquisition of the voting
capital stock or other ownership interests of the Person that owns such assets
and references to the acquisition and exercise of an option to acquire assets
shall be deemed to include the acquisition and exercise of the option to
acquire voting capital stock or other ownership interests of the Person that
owns such assets.

 

“Other Preferred Stock” means
Preferred Stock issued by the Borrower, but if and only to the extent that (a) the
dividend for each share thereof shall not exceed 15% per annum of the
liquidation preference of such share and (b) neither the Borrower nor any
of its Subsidiaries may be required to repurchase, redeem or make sinking fund
payments with respect thereto at any time or under any circumstances prior to July 1,
2013.

 

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

 

“Outsourcing Agreements” means (a) the
agreements listed in Schedule 4.21, (b) any other agreement entered
into by the Borrower or any of its Subsidiaries after the Second Restatement
Effective Date which provides for the Borrower or any of its Subsidiaries to
deliver or receive non-programming related management and/or consulting
services of any television station, and (c) any put or option agreement
entered into in connection with any agreement referred to in clause (a) or (b) above
that provides for the Borrower or any of its Subsidiaries to acquire or sell
the license or non-license assets of the related television station.

 

20

 

“Owned Station” means (a) each
television or radio station identified as such in Schedule 1.03 and (b) any
television or radio station the Broadcast Licenses of which are owned or held
by the Borrower or any of its Subsidiaries on or after the date hereof.

 

“Passive BCF Percentage” means, as at
any date, the ratio, expressed as a percentage, obtained by dividing (a) the
portion of Broadcast Cash Flow attributable to all Passive Stations for the
twelve month period ending on, or most recently ended prior to, such date by (b) Broadcast
Cash Flow for such period.

 

“Passive LMA” means a local marketing
agreement, time brokerage agreement, program services agreement or similar
agreement (but excluding any Outsourcing Agreement or other similar agreement)
providing for any Person other than the Borrower or any of its Subsidiaries to
program or sell advertising time on all or any portion of the broadcast time of
any Station.

 

“Passive Station” means a Station that
is the subject of a Passive LMA.

 

“PBGC” means the Pension Benefit
Guaranty Corporation referred to and defined in ERISA and any successor entity
performing similar functions.

 

“Permitted Investments” means, for any
Person: (a) direct obligations of the United States of America, or of any
agency (which shall include, but not be limited to, Export-Import Bank of the
United States, Farmers Home Administration, Federal Housing Administration,
General Services Administration, and Government National Mortgage Association)
or instrumentality (which shall include, but not be limited to, The Federal
National Mortgage Association, Federal Home Loan Banks, Federal Home Loan
Mortgage Corporation, Federal Land Banks, Federal Intermediate Credit Banks,
Banks for Cooperative and the Farm Credit System, and The Student Loan
Marketing Association) thereof, or obligations guaranteed or insured as to
principal and interest by the United States of America, or any agency or
instrumentality thereof, in either case maturing not more than 90 days from the
date of acquisition thereof by such Person; (b) domestic and Eurodollar
time deposits, overnight deposits, certificates of deposit and bankers
acceptances issued or guaranteed by entities rated A-2 or better by
S&P or P-2 or better by Moody’s, maintained at or issued by any
office or branch of any bank or trust company organized or licensed under the
laws of the United States of America or any State thereof which bank or trust
company has capital, surplus and undivided profits of at least $500,000,000,
maturing not more than 90 days from the date of acquisition thereof by such
Person; (c) commercial paper, auction rate notes and commercial paper
master notes issued or guaranteed by entities rated A-2 or better by
S&P or P-2 or better by Moody’s, maturing not more than 90 days from
the acquisition thereof by such Person (provided that a security without
its own rating will be considered to be rated and to have the same rating as
any debt obligation that is issued by the same issuer which is comparable in
priority, maturity and security to the subject security or, if it is guaranteed
by another issuer, to be rated and to have the same rating as any debt
obligation that is issued by the guarantor which is comparable in priority,
security, and maturity to the subject security); (d) tax-exempt commercial
paper or variable rate tax exempt demand notes, rated A-1 or better by
S&P or MIG1/VMIG1 or better by Moody’s, maturing not more than 90 days from
the acquisition thereof by such Person; (e) fully

 

21

 

collateralized repurchase
agreements with a term of not more than 30 days entered into with any bank
qualifying under clause (b) above, any broker-dealer subsidiary or
affiliate of any such bank or any Primary Dealer of United States Government
securities and relating to: (i) marketable direct obligations issued or
unconditionally guaranteed or insured by the United States of America or any
agency or instrumentality thereof listed in clause (a) above; (ii) securities
issued by The Federal National Mortgage Association, Federal Farm Credit Banks,
Federal Home Loan Banks or The Student Loan Marketing Association or other
entities listed in clause (a) above; or (iii) mortgage-backed
securities issued by The Federal National Mortgage Association or The Federal
Home Loan Mortgage Corporation or issued or guaranteed by the Government
National Mortgage Association or other entities listed in clause (a) above;
and (f) money market mutual funds that (i) comply with the criteria
set forth in SEC Rule 2a-7 under the Investment Company Act of 1940,
(ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have
portfolio assets of at least $5,000,000,000.

 

“Permitted Termination Payments” has
the meaning assigned to such term in Section 7.16.

 

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

 

“Plan” means any employee pension
benefit plan (other than a Multiemployer Plan) subject to the provisions of
Title IV of ERISA or Section 412 of the Code or Section 302 of
ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if such
plan were terminated, would under Section 4069 of ERISA be deemed to be)
an “employer” as defined in Section 3(5) of ERISA.

 

“Post-Default Condition” means (a) the
failure by the Borrower to pay when due (whether at stated maturity, by
acceleration, by mandatory prepayment or otherwise) any principal amount of any
Loan or in respect of any LC Exposure, (b) the failure by the Borrower to
pay when due (whether at stated maturity, by acceleration, by mandatory
prepayment or otherwise) any other amount payable by the Borrower hereunder for
more than three Business Days or (c) the existence of any Event of Default
under clauses (d) or (e) of Article VIII.

 

“Post-Default Rate” means a rate per
annum equal to the Alternate Base Rate as in effect from time to time plus the
Applicable Rate plus 2%; provided that, as applied to
principal of a Eurodollar Loan, the “Post-Default Rate” shall be the interest
rate for such Eurodollar Loan as provided in Section 2.11(b) plus 2%.

 

“Preferred Stock” means, for any
Person, any capital stock or other ownership interests of any class or classes
(however designated) which is preferred as to the payment of dividends or
distributions, or as to the distribution of assets upon any voluntary or
involuntary liquidation or dissolution of such Person, over capital stock or
other ownership interests of any other class of such Person.

 

“Prime Rate” means the rate of
interest per annum publicly announced from time to time by JPMCB as its prime
rate in effect at its principal office in New York City; each

 

22

 

change in the Prime Rate shall
be effective from and including the date such change is publicly announced as
being effective.

 

“Program Services Agreements” means (a) the
agreements listed in Schedule 4.18 and (b) any agreement having a
term of not less than three years with an option to extend such term for an
additional three years or more entered into by the Borrower or any of its
Subsidiaries (other than License Subsidiaries) in accordance with Section 7.16
relating to a Contract Station, pursuant to which agreement the Borrower or any
of its Subsidiaries (other than License Subsidiaries) will obtain the right to
program and sell advertising on a substantial portion of such Contract Station’s
inventory of broadcast time.

 

“PSA Counterparty” means Cunningham,
Bay Television, Inc. and/or any other Person reasonably acceptable to the
Administrative Agent.

 

“Put Obligations” means the
obligations of the Borrower or any of its Subsidiaries to purchase certain
assets of any Station with respect to which the Borrower or such Subsidiary
shall have entered into an Outsourcing Agreement.

 

“Qualifying Cash Balances” means, as
at any date, (a) cash balances on deposit on such date in any account maintained
by the Borrower or any of its Subsidiaries up to but not exceeding $10,000,000
and (b) (without duplication) cash balances on deposit on such date in an
account maintained by the Borrower or any of its Subsidiaries with the
Administrative Agent in which the Administrative Agent has been granted a
perfected first priority security interest, provided that withdrawal of
funds from any such account under clause (b) by the Borrower or such
Subsidiary, as the case may be, shall be permitted only (i) so long as no
Default shall have occurred and be continuing and (ii) upon delivery by
the Borrower or such Subsidiary, as the case may be, to the Administrative
Agent of a certificate to that effect.

 

“Quarterly Dates” means the last
Business Day of March, June, September and December in each year, the
first of which shall be the first such day after the date hereof.

 

“Receivables” means, as at any date,
the unpaid portion of the obligation, as stated on the respective billing
statement, of a customer of the Borrower or any Subsidiary Guarantor in respect
of the sale of advertising time or other services provided or goods sold by the
Borrower or any Subsidiary Guarantor, as the case may be, to such customer.

 

“Receivables and Related Assets” means
Receivables and any instruments, documents, chattel paper, obligations, general
intangibles and other similar assets, in each case, relating to such
Receivables.

 

“Receivables Financing” means the sale
of Receivables and Related Assets on terms and pursuant to documentation
satisfactory in form and substance to the Administrative Agent.

 

23

 

“Receivables Subsidiary” means a
Wholly Owned Subsidiary of the Borrower established for the limited purpose of
acquiring and financing Receivables and Related Assets pursuant to any
Receivables Financing.

 

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

 

“Reinvestment Deferred Amount” means,
with respect to any Reinvestment Event, the aggregate Net Cash Payments received
by the Borrower or any of its Subsidiaries in connection therewith that are not
applied to prepay the Loans pursuant to Section 2.09(b) as a result
of the delivery of a Reinvestment Notice.

 

“Reinvestment Event” means any
Disposition in respect of which the Borrower has delivered a Reinvestment
Notice.

 

“Reinvestment Notice” means a written
notice executed by a Financial Officer stating that no Event of Default has
occurred and is continuing and that the Borrower (directly or indirectly
through a Subsidiary) intends and expects to use all or a specified portion of
the Net Cash Payments of a Disposition to make (a) an acquisition
permitted under Section 7.04(e) or (b) Capital
Expenditures.

 

“Reinvestment Prepayment Amount”
means, with respect to any Reinvestment Event, the Reinvestment Deferred Amount
relating thereto less any amount expended prior to the relevant Reinvestment
Prepayment Date to make (a) an acquisition permitted under Section 7.04(e) or (b) Capital
Expenditures.

 

“Reinvestment Prepayment Date” means,
with respect to any Reinvestment Event, the earlier of (a) the date
occurring one year after such Reinvestment Event and (b) the date on which
the Borrower shall have determined not to, or shall have otherwise ceased to,
acquire or repair assets useful in the business of the Borrower or any of its
Subsidiaries with all or any portion of the relevant Reinvestment Deferred
Amount.

 

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

 

“Required Lenders” means, at any time,
subject to the last paragraph of Section 10.02(b), Lenders having
Revolving Exposures, outstanding Term Loans, outstanding Incremental Loans and
unused Commitments representing more than 50% of the sum of the total Revolving
Exposures, outstanding Term Loans, outstanding Incremental Loans and unused
Commitments at such time.  The “Required
Lenders” of a particular Class of Loans means Lenders having Revolving
Exposures, outstanding Term Loans, outstanding Incremental Loans and unused
Commitments of such Class representing more than 50% of the total
Revolving Exposures, outstanding Term Loans, outstanding Incremental Loans and
unused Commitments of such Class at such time (e.g., “Required Revolving
Lenders” means, at any time, the Revolving Lenders having Revolving Exposures
and unused Revolving Commitments

 

24

 

representing more than 50% of
the total Revolving Exposures and total unused Revolving Commitments at such
time).

 

“Restricted Payment” means (a) any
dividend or other distribution (whether in cash, securities or other property
but excluding dividends payable solely in additional shares of common stock of
the Borrower) with respect to any shares of any class of capital stock or other
ownership interest of the Borrower or any of its Subsidiaries, or any payment
(whether in cash, securities or other property), including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such shares of capital stock of
the Borrower or any option, warrant or other right to acquire any such shares
of capital stock of the Borrower and (b) any management fee or royalty fee
payable by the Borrower or any Subsidiary to the Holding Company.

 

“Revolving Availability Period” means
the period from and including the Second Restatement Effective Date to but
excluding the earlier of (a) the Revolving Maturity Date and (b) the
date of termination of the Revolving Commitments.

 

“Revolving Commitment” means, with
respect to each Lender, the commitment, if any, of such Lender to make
Revolving Loans and to acquire participations in Swing Line Loans and Letters
of Credit hereunder, expressed as an amount representing the maximum aggregate
amount of such Lender’s Revolving Exposure hereunder, as such commitment may be
(a) reduced from time to time pursuant to Section 2.07 and (b) reduced
or increased from time to time pursuant to assignments by or to such Lender
pursuant to Section 10.04.  The
initial amount of each Lender’s Revolving Commitment is set forth on Schedule 1.01(a) or in
the Assignment and Assumption
pursuant to which such Lender shall have assumed its Revolving Commitment, as
applicable.  The aggregate amount of the
Lenders’ Revolving Commitments on the Second Restatement Effective Date is
$175,000,000.

 

“Revolving Exposure” means, with
respect to any Lender at any time, the sum of the outstanding principal amount
of such Lender’s Revolving Loans and its LC Exposure and Swing Line
Exposure at such time.

 

“Revolving Lender” means a Lender with
a Revolving Commitment or, if the Revolving Commitments have terminated or expired,
a Lender with Revolving Exposure.

 

“Revolving Loan” means a Loan made
pursuant to Section 2.01(a).

 

“Revolving Maturity Date” means the
Business Day falling on or nearest to June 30, 2011.

 

“Rule 144 A” means Rule 144A
of the Securities Act of 1933, as amended from time to time.

 

“S&P” means Standard &
Poor’s Ratings Services.

 

25

 

“SEC” means the Securities and
Exchange Commission, or any regulatory body that succeeds to the functions
thereof.

 

“Second Restatement Effective Date”
means the date on which the conditions specified in Section 5.01 are
satisfied (or waived in accordance with Section 10.02).

 

“Security Agreement” means the Amended
and Restated Security Agreement substantially in the form of Exhibit A
between the Borrower, the Holding Company, the Subsidiary Guarantors and the
Administrative Agent.

 

“Security Documents” means,
collectively, the Security Agreement, any other pledge, security or similar
agreement entered into by any Obligor in connection with this Agreement, and
all Uniform Commercial Code financing statements required hereby or thereby to
be filed with respect to the security interests in personal property created
pursuant thereto.

 

“Senior Indebtedness” means as at any
date, the sum of (a) Indebtedness (other than Subordinated Indebtedness)
on such date of the Borrower and its Subsidiaries (determined on a consolidated
basis without duplication in accordance with GAAP) minus all Qualifying
Cash Balances on such date.

 

“Senior Indebtedness Ratio” means, as
at any date, the ratio of (a) Senior Indebtedness outstanding on such date
to (b) EBITDA for the period of the four fiscal quarters ending on or most
recently ended prior to such date.

 

“Senior Note Documents” means the
agreements and instruments evidencing or providing for the Senior Notes.

 

“Senior Note Indentures” means the
indenture or indentures under which the Senior Notes shall be issued.

 

“Senior Notes” means the Indebtedness
of the Borrower issued pursuant to Section 7.01(k) (including the
senior unsecured Guarantees of such Indebtedness provided by any Subsidiary
Guarantor thereunder).

 

“Senior Subordinated Note Indentures”
means the Existing Senior Subordinated Note Indentures and, after the
respective issuances of the Additional Subordinated Notes and the Converted
Senior Subordinated Notes, the respective indentures under which the same are
issued.

 

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

 

“Smith Brothers” means Frederick G.
Smith, David D. Smith, J. Duncan Smith and Robert E. Smith.

 

“Stations” means the Owned Stations
and the Contract Stations.

 

26

 

“Statutory Reserve Rate” means a
fraction (expressed as a decimal), the numerator of which is the number one and
the denominator of which is the number one minus the aggregate of
the maximum reserve percentages (including any marginal, special, emergency or
supplemental reserves) expressed as a decimal established by the Board to which
the Administrative Agent is subject for eurocurrency funding (currently
referred to as “Eurocurrency Liabilities” in Regulation D of the Board).  Such reserve percentages shall include those
imposed pursuant to such Regulation D. 
Eurodollar Loans shall be deemed to constitute eurocurrency funding and
to be subject to such reserve requirements without benefit of or credit for
proration, exemptions or offsets that may be available from time to time to any
Lender under such Regulation D or any comparable regulation.  The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.

 

“Subordinated Debt Documents” means
the agreements and instruments evidencing or providing for Subordinated
Indebtedness.

 

“Subordinated Film Indebtedness” means
Film Obligations of the Borrower and its Subsidiaries which are subordinated to
the obligations of the Borrower and its Subsidiaries hereunder on terms and
conditions, and the other provisions of which are, satisfactory to the
Administrative Agent.

 

“Subordinated Indebtedness” means (a) the
Existing Senior Subordinated Indebtedness, (b) Subordinated Film
Indebtedness and (c) Indebtedness evidenced by the Additional Subordinated
Notes and the Converted Senior Subordinated Notes.

 

“Subsidiary” means, with respect to
any Person (the “parent”) at any date, any corporation, limited
liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s
consolidated financial statements if such financial statements were prepared in
accordance with GAAP as of such date, as well as any other corporation, limited
liability company, partnership, association or other entity (a) of which
securities or other ownership interests representing more than 50% of the
equity or more than 50% of the ordinary voting power or, in the case of a
partnership, more than 50% of the general partnership interests are, as of such
date, owned, controlled or held, or (b) that is, as of such date,
otherwise Controlled, by the parent or one or more subsidiaries of the parent
or by the parent and one or more subsidiaries of the parent.  “Wholly Owned Subsidiary” means any
such corporation, partnership or other entity of which all of such securities
or other ownership interests (other than, in the case of a corporation,
directors’ qualifying shares) are so owned or controlled.  Notwithstanding anything contained herein to
the contrary, (i) no Unrestricted Subsidiary shall be deemed to be a
Subsidiary of the Borrower or of a Subsidiary of the Borrower for the purpose
of this Agreement except as otherwise expressly provided herein and (ii) each
KDSM Entity shall be deemed to be a Subsidiary of the Borrower for all purposes
of this Agreement (including Articles IV, VI, VII and VIII (unless the
context otherwise requires)) and shall comply with the provisions of Section 6.09(a).  Unless otherwise specified, “Subsidiary”
means a Subsidiary of the Borrower.

 

“Subsidiary Guarantor” means,
collectively, (a) each KDSM Entity, (b) each of the Subsidiaries of
the Borrower identified under the caption “SUBSIDIARY GUARANTORS”

 

27

 

on the signature pages hereto
and (c) each Subsidiary of the Borrower that becomes a “Subsidiary
Guarantor” after the date hereof pursuant to Section 6.09(a).

 

“Swing Line Exposure” means, at any
time, the aggregate principal amount of all Swing Line Loans outstanding at
such time.  The Swing Line Exposure of
any Lender at any time shall be its Applicable Percentage of the total Swing
Line Exposure at such time.

 

“Swing Line Lender” means JPMCB, in
its capacity as lender of Swing Line Loans hereunder.

 

“Swing Line Loan” means a Loan made
pursuant to Section 2.01(d).

 

“Taxes” means any and all present or
future taxes, levies, imposts, duties, deductions, charges or withholdings
imposed by any Governmental Authority.

 

“Term Loan” means a Loan made pursuant
to Section 2.01(b), which shall initially be an ABR Loan but thereafter
may be an ABR Loan and/or a Eurodollar Loan.

 

“Term Loan Commitment” means, with
respect to each Lender, the commitment of such Lender to make a Term Loan to
the Borrower hereunder on the Second Restatement Effective Date in a principal
amount equal to the amount set forth under the heading “Term Loan Commitment”
opposite such Lender’s name on Schedule 1.01(a) or in the
Assignment and Assumption pursuant to which such Lender shall have assumed its
Term Loan Commitment, as applicable, as the same may be changed from time to
time pursuant to the terms hereof.  The
aggregate amount of the Lenders’ Term Loan Commitments on the Second
Restatement Effective Date is $100,000,000.

 

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

 

“Term Loan Maturity Date” means the
Quarterly Date falling on or nearest to December 31, 2011.

 

“Term Loan Principal Payment Dates”
means the Quarterly Dates falling on or nearest to March 31, June 30,
September 30 and December 31 of each year, commencing with March 31,
2007.

 

“Total Indebtedness” means, as at any
date, all Indebtedness of the Borrower and its Subsidiaries outstanding on such
date (determined on a consolidated basis without duplication in accordance with
GAAP), net of Qualifying Cash Balances on such date.

 

“Total Indebtedness Ratio” means, as
at any date, the ratio of (a) Total Indebtedness on such date to (b) EBITDA
for the period of four fiscal quarters ending on or most recently ended prior
to such date.

 

28

 

“Transactions” means the execution,
delivery and performance by each Obligor of this Agreement and the other Loan Documents
to which such Obligor is intended to be a party, the borrowing of Loans, the
use of the proceeds thereof and the issuance of Letters of Credit hereunder.

 

“Type”, when used in reference to any
Loan or Borrowing, refers to whether the rate of interest on such Loan, or on
the Loans comprising such Borrowing, is determined by reference to the Adjusted
LIBO Rate or the Alternate Base Rate.

 

“Unrestricted Subsidiary” means (a) any
Subsidiary of the Borrower that at the time of determination shall be an Unrestricted
Subsidiary (as designated by the board of directors of the Borrower, as
provided below) and (b) any Subsidiary of an Unrestricted Subsidiary.  The Board of Directors of the Borrower may
designate any Subsidiary of the Borrower (including any newly acquired or newly
formed Subsidiary) to be an Unrestricted Subsidiary if all of the following
conditions apply: (i) such Subsidiary is not liable, directly or
indirectly, with respect to any Indebtedness other than Unrestricted Subsidiary
Indebtedness; (ii) any Investment in such Subsidiary made as a result of
designating such Subsidiary an Unrestricted Subsidiary shall not violate the
provisions of Section 7.07; (iii) any designation of a Subsidiary as
an Unrestricted Subsidiary shall be treated as a Disposition of the assets of
such Subsidiary and shall not violate the provisions of Section 7.05(d) or (e) or Section 7.09
and (iv) after giving pro forma effect to the designation of any
Subsidiary as an Unrestricted Subsidiary, the Broadcast Cash Flow attributable
to all assets of the Unrestricted Subsidiaries for the twelve month period
ending on, or most recently ended prior to, the date of such designation shall
not exceed 25% of the Broadcast Cash Flow for the Borrower and its Subsidiaries
(including the Unrestricted Subsidiaries) for such period.  Any such designation by the Board of
Directors of the Borrower shall be evidenced to the Administrative Agent by
filing with the Administrative Agent a board resolution giving effect to such
designation and an officers’ certificate certifying that such designation
complies with the foregoing conditions. 
The Board of Directors of the Borrower may remove the designation of
Unrestricted Subsidiary by giving notice thereof to the Administrative Agent; provided
that immediately after giving effect to the removal of such designation
(x) no Default shall have occurred or be continuing and (y) said
removal of such designation shall not violate the provisions of Section 7.04.  As of the Second Restatement Effective Date,
there are no Unrestricted Subsidiaries other than the entities specified in Schedule 1.01(c),
provided that the board of directors of the Borrower may thereafter
designate any Subsidiary of the Borrower to be an Unrestricted Subsidiary as
provided above in this definition.

 

“Unrestricted Subsidiary Indebtedness”
of any Unrestricted Subsidiary means Indebtedness of such Unrestricted
Subsidiary (a) as to which neither the Borrower nor any Subsidiary other
than an Unrestricted Subsidiary is directly or indirectly liable (by virtue of
the Borrower or any such Subsidiary being the primary obligor on, guarantor of,
or otherwise liable in any respect to, such Indebtedness), except Guaranteed
Debt of the Borrower or any Subsidiary other than an Unrestricted Subsidiary to
any Affiliate (as otherwise permitted hereunder) and (b) which, upon the
occurrence of a default with respect thereto, does not result in, or permit any
holder of any Indebtedness of the Borrower or any Subsidiary other

 

29

 

than an Unrestricted Subsidiary
to declare, a default on such Indebtedness of the Borrower or any Subsidiary
other than an Unrestricted Subsidiary or cause the payment thereof to be
accelerated or payable prior to its stated maturity.

 

“Wholly Owned Subsidiary” has the
meaning assigned to such term in the definition of “Subsidiary” in this
Section.

 

“Withdrawal Liability” means liability
to a Multiemployer Plan as a result of a complete or partial withdrawal from
such Multiemployer Plan, as such terms are defined in Part I of Subtitle E
of Title IV of ERISA.

 

SECTION 1.02.  Classification of Loans and Borrowings.  For purposes of this Agreement, Loans may be
classified and referred to by Class (e.g., a “Revolving Loan”, a “Swing Line
Loan”, a “Term Loan” or an “Incremental Loan”) or by Type (e.g., a “Eurodollar
Loan”) or by Class and Type (e.g., an “ABR Revolving Loan”).  Borrowings also may be classified and
referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar
Borrowing”) or by Class and Type (e.g., an “ABR Revolving Borrowing”.

 

SECTION 1.03.  Call Letters for Stations.  Each use of call letters for any Station
herein shall refer to the Station with such call letters, and servicing the
market, identified in Schedule 1.03.

 

SECTION 1.04.  Terms Generally.  The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”.  The phrase “unreasonably withheld” shall be
deemed to be followed by the phrase “or delayed”.  The word “will” shall be construed to have
the same meaning and effect as the word “shall”.  Unless the context requires otherwise (a) any
definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications
set forth herein), (b) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to
refer to this Agreement in its entirety and not to any particular provision
hereof, (d) all references herein to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Exhibits
and Schedules to, this Agreement and (e) the words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to any and
all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

 

SECTION 1.05.  Accounting Terms; GAAP.

 

(a)  Except as otherwise expressly
provided herein, all accounting terms used herein shall be interpreted, and all
financial statements and certificates and reports as to financial matters
required to be delivered to the Lenders hereunder shall (unless otherwise
disclosed to the Lenders in writing at the time of delivery thereof in the
manner described in paragraph (b) of this

 

30

 

Section) be prepared, in
accordance with generally accepted accounting principles applied on a basis
consistent with that used in the preparation of the latest financial statements
furnished to the Lenders hereunder (which, prior to the first financial
statements delivered under Section 6.01, shall mean the financial
statements referred to in Section 4.04). 
All calculations made for the purposes of determining compliance with
the terms of this Agreement shall (except as otherwise expressly provided
herein) be made by application of generally accepted accounting principles
applied on a basis consistent with that used in the preparation of the annual
or quarterly financial statements furnished to the Lenders pursuant to Section 6.01
(or, prior to the first financial statements delivered under Section 6.01,
used in the preparation of the financial statements referred to in Section 4.04)
unless (i) the Borrower shall have objected to determining such compliance
on such basis at the time of delivery of such financial statements or (ii) the
Required Lenders shall so object in writing within 30 days after delivery of
such financial statements, in either of which events such calculations shall be
made on a basis consistent with those used in the preparation of the latest
financial statements as to which such objection shall not have been made
(which, if objection is made in respect of the first financial statements
delivered under Section 6.01, shall mean the financial statements referred
to in Section 4.04). 
Notwithstanding anything in this Section to the contrary, all
income derived by any Subsidiary or property held for sale (and accounted for
as such under GAAP) shall be included in calculating EBITDA for the period
prior to the consummation of the sale thereof.

 

(b)  The Borrower shall deliver to the
Lenders at the same time as the delivery of any annual or quarterly financial
statement under Section 6.01 a description in reasonable detail of any
material variation between the application of accounting principles employed in
the preparation of such statement and the application of accounting principles
employed in the preparation of the next preceding annual or quarterly financial
statements as to which no objection has been made in accordance with the last
sentence of paragraph (a) of this Section, and reasonable estimates
of the difference between such statements arising as a consequence thereof.

 

(c)  To enable the ready and consistent determination
of compliance with the covenants set forth in Article VII, the Borrower
will not change the last day of its fiscal year from December 31 of each
year, or the last days of the first three fiscal quarters in each of its
fiscal years from March 31, June 30 and September 30 of each
year, respectively.

 

(d)  Except as expressly provided
herein, (i) all calculations made with respect to any period during which
an Acquisition is consummated shall be calculated on a pro forma basis as if
such Acquisition had been consummated on the first day of such period and as if
any Indebtedness incurred or assumed in connection with such Acquisition were
outstanding throughout such period, using such reasonable estimates and pro
forma adjustments effected in accordance with generally accepted accounting
principles as the Borrower shall propose and the Administrative Agent or
Required Lenders shall approve and (ii) all calculations made with respect
to any period during which a Disposition is consummated shall be calculated on
a pro forma basis as if any such Disposition had been consummated on the first
day of such period and as if any prepayments actually made in connection
therewith had occurred on the first day of such period using such reasonable
estimates and pro forma adjustments effected in accordance with generally
accepted accounting principles as the Borrower shall propose and the

 

31

 

Administrative Agent shall
approve; provided that if the Borrower proposes any such adjustments
referred to in the foregoing clause (i) resulting from pro forma
expense savings with respect to EBITDA or Broadcast Cash Flow as a result of an
Acquisition (x) if the Administrative Agent or Required Lenders do not
object to such proposal within 30 days after their receipt thereof, such
proposal shall be deemed accepted and (y) if the Administrative Agent or
the Required  Lenders do object to such
proposal within 30 days after their receipt thereof, EBITDA or Broadcast Cash
Flow, as the case may be, for the relevant period shall be deemed for purposes
hereof to be equal to the sum of EBITDA or Broadcast Cash Flow, as the case may
be, for the Borrower and its Subsidiaries for such period plus the
corresponding accounting items for the Person or assets that are the subject of
such Acquisition.  Notwithstanding the
foregoing, if, prior to giving effect to any proposed pro forma adjustments
arising from pro forma expense savings, a Default would occur as a result of an
Acquisition, such adjustment shall require approval of the Required Lenders
prior to the consummation of such Acquisition.

 

ARTICLE II

THE CREDITS

 

SECTION 2.01. 
The Credits.

 

(a)  Revolving Loans.  Subject to the terms and conditions set forth
herein, each Lender agrees to make Revolving Loans to the Borrower from time to
time during the Revolving Availability Period in an aggregate principal amount
that will not result in (i) such Lender’s Revolving Exposure exceeding
such Lender’s Revolving Commitment or (ii) the total Revolving Exposures
exceeding the total Revolving Commitments. 
Within the foregoing limits and subject to the terms and conditions set
forth herein, the Borrower may borrow, prepay and reborrow Revolving Loans.  All Existing Revolving Loans shall be prepaid
with the proceeds of Revolving Loans made by the Revolving Lenders on the
Second Restatement Effective Date.

 

(b)  Term Loans.  Subject to the terms and conditions set forth
herein (including Section 5.02), on the Second Restatement Effective Date,
each Term Loan Lender agrees to make a Term Loan to the Borrower in a principal
amount equal to such Lender’s Term Loan Commitment.  Unless previously terminated, the Term Loan
Commitments shall terminate after the Borrowing of the Term Loans on the Second
Restatement Effective Date.  Amounts
repaid in respect of Term Loans may not be reborrowed.

 

(c)  Incremental Loans.  The Borrower and one or more of the Lenders
(or any other Person which shall become a Lender pursuant to an assumption
agreement in form and substance satisfactory to the Administrative Agent, for
the purpose of providing an Incremental Loan Commitment) may, with the consent
of the Administrative Agent, at any time and from time to time during the
period from and including the Second Restatement Effective Date to but
excluding June 30, 2012 agree that such Lender shall become an Incremental
Lender with an Incremental Loan Commitment by executing and delivering to the
Administrative Agent an Incremental Loan Amendment (in form reasonable
satisfactory to the Administrative Agent), specifying (i) whether such
Incremental Loan Commitment shall be comprised of a commitment

 

32

 

to make revolving loans (each
an “Incremental Revolving Loan”) or term loans (each an “Incremental
Term Loan”), (ii) the Type and amount of such Incremental Loan
Commitment of such Lender, (iii) with respect to an Incremental Revolving
Commitment, the period of availability thereof and the Incremental Revolving
Maturity Date therefor, (iv) with respect to an Incremental Term Loan
Commitment, the date(s) on which such Incremental Term Loans shall be
available to be made, the Incremental Term Loan Maturity Date therefor and the
Incremental Term Loan Principal Payment Dates thereof (if any), (v) the
Applicable Rate that will apply to Incremental Loans made under such
Incremental Loan Commitment, and (vi) the rate of the commitment fee, if
any, payable by the Borrower in respect of such Incremental Loan Commitment,
and otherwise duly completed.  Nothing in
this Agreement shall be construed to obligate any Lender to provide any
Incremental Loan Commitment.  The
Incremental Loans to be made pursuant to any such agreement between the
Borrower and one or more Persons in response to any such request by the
Borrower shall each be deemed to be a separate “Series” of Incremental
Loans for all purposes of this Agreement, and in any case an Incremental
Revolving Commitment and an Incremental Term Loan Commitment provided pursuant
to the same Incremental Loan Amendment shall be deemed to be separate Series of
Incremental Loan Commitments.

 

Anything herein to the contrary notwithstanding, the
following additional provisions shall be applicable to the Incremental Loan
Commitments and Incremental Loans:

 

(i)  the minimum aggregate amount of Incremental Loan Commitments
of any Series entered into pursuant to any such request (and, accordingly,
the minimum aggregate principal amount of Incremental Loans of such Series)
shall be $15,000,000,

 

(ii)  the Incremental Revolving Maturity Date of the Incremental
Revolving Commitments of any Series shall not be earlier than the
Revolving Maturity Date (but the scheduled commitment termination date of such
Incremental Revolving Commitments may be accelerated pursuant to Section 2.07(b)),
and the Average Life to Maturity of the Incremental Revolving Loans shall be
greater than the Average Life to Maturity of the Revolving Loans, and

 

(iii)  the Incremental Term Loan Maturity Date of the Incremental
Term Loans of any Series shall not be earlier than the Term Loan Maturity
Date (but the scheduled final maturity of such Incremental Term Loans may be
accelerated pursuant to Section 2.08(b)), and the Average Life to Maturity
of the Incremental Term Loans shall be greater than the Average Life to
Maturity of the Term Loans (except that Incremental Term Loans shall be
entitled to participate, to the extent provided in Section 2.09(b), in
mandatory prepayments).

 

Following
execution and delivery by the Borrower, one or more Incremental Lenders and the
Administrative Agent as provided above of an Incremental Loan Amendment then,
subject to the terms and conditions set forth herein:

 

(x)  if such Incremental Loans
are to be Incremental Revolving Loans, each Incremental Lender of such Series agrees
to make Incremental Revolving Loans of such Series to the Borrower from
time to time during the availability period for such Loans set forth in such
Incremental Loan Amendment, in an aggregate principal amount that will not
result in such Lender’s Incremental Revolving Loans of such Series exceeding
such Lender’s Incremental Revolving Commitment of such Series; within the
foregoing limits

 

33

 

and subject to
the terms and conditions set forth herein, the Borrower may borrow, repay and
reborrow Incremental Revolving Loans of such Series; and

 

(y)  if such Incremental Loans
are to be Incremental Term Loans, each Incremental Lender of such Series agrees
to make Incremental Term Loans of such Series to the Borrower from time to
time during the availability period for such Loans set forth in such
Incremental Loan Amendment, in a principal amount up to but not exceeding such
Lender’s Incremental Term Loan Commitment of such Series; amounts prepaid in
respect of Incremental Term Loans may not be reborrowed.

 

Proceeds of Incremental Loans shall be available only for any use
permitted under the applicable provisions of Section 6.08.

 

(d)  Swing Line Loans.  Subject to the terms and conditions set forth
herein, the Swing Line Lender agrees to make Swing Line Loans to the Borrower
from time to time during the Revolving Availability Period in an aggregate
principal amount at any time outstanding that will not result in (i) the
aggregate principal amount of outstanding Swing Line Loans exceeding
$10,000,000 or (ii) the total Revolving Exposures exceeding the total
Revolving Commitments; provided that the Swing Line Lender shall not be
required to make a Swing Line Loan to refinance an outstanding Swing Line
Loan.  Each Swing Line Loan shall be an
ABR Loan.  Within the foregoing limits
and subject to the terms and conditions set forth herein, the Borrower may
borrow, prepay and reborrow Swing Line Loans.

 

To request a Swing Line Loan, the Borrower
shall notify the Administrative Agent of such request by telephone (confirmed
by telecopy), not later than 12:00 noon, New York City time, on the day of a
proposed Swing Line Loan.  Each such
notice shall be irrevocable and shall specify the requested date (which shall
be a Business Day) and amount of the requested Swing Line Loan.  The Administrative Agent will promptly advise
the Swing Line Lender of any such notice received from the Borrower.  The Swing Line Lender shall make each Swing
Line Loan available to the Borrower by means of a credit to the general deposit
account of the Borrower with the Swing Line Lender (or, in the case of a Swing
Line Loan made to finance the reimbursement of an LC Disbursement as provided
in Section 2.04(f), by remittance to the Issuing Lender) by 3:00 p.m.,
New York City time, on the requested date of such Swing Line Loan.

 

The Swing Line Lender may by written notice
given to the Administrative Agent not later than 10:00 a.m., New York City
time, on any Business Day require the Lenders to acquire participations on such
Business Day in all or a portion of the Swing Line Loans outstanding.  Such notice to the Administrative Agent shall
specify the aggregate amount of Swing Line Loans in which Lenders will participate.  Promptly upon receipt of such notice, the
Administrative Agent will give notice thereof to each Lender, specifying in
such notice such Lender’s Applicable Percentage of such Swing Line Loan or
Loans.  Each Lender hereby absolutely and
unconditionally agrees, upon receipt of notice as provided above in this
paragraph, to pay to the Administrative Agent, for account of the Swing Line
Lender, such Lender’s Applicable Percentage of such Swing Line Loan or
Loans.  Each Lender acknowledges and
agrees that its obligation to acquire participations in Swing Line Loans
pursuant to this

 

34

 

paragraph is absolute and
unconditional and shall not be affected by any circumstance whatsoever,
including the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever.  Each Lender shall comply with its obligation
under this paragraph by wire transfer of immediately available funds, in the
same manner as provided in Section 2.05 with respect to Loans made by such
Lender (and Section 2.07 shall apply, mutatis  mutandis, to
the payment obligations of the Lenders), and the Administrative Agent shall
promptly pay to the Swing Line Lender the amounts so received by it from the
Lenders.  The Administrative Agent shall
notify the Borrower of any participations in any Swing Line Loan acquired
pursuant to this paragraph, and thereafter payments in respect of such Swing
Line Loan shall be made to the Administrative Agent and not to the Swing Line
Lender.  Any amounts received by the
Swing Line Lender from the Borrower (or other party on behalf of the Borrower)
in respect of a Swing Line Loan after receipt by the Swing Line Lender of the proceeds
of a sale of participations therein shall be promptly remitted to the
Administrative Agent; any such amounts received by the Administrative Agent
shall be promptly remitted by the Administrative Agent to the Lenders that
shall have made their payments pursuant to this paragraph and to the Swing Line
Lender, as their interests may appear. 
The purchase of participations in a Swing Line Loan pursuant to this
paragraph shall not relieve the Borrower of any default in the payment thereof.

 

SECTION 2.02.  Loans and Borrowings.

 

(a)  Obligations of Lenders.  Each Loan shall be made as part of a
Borrowing consisting of Loans of the same Class and Type made by the
Lenders ratably in accordance with their respective Commitments of the
applicable Class.  The failure of any
Lender to make any Loan required to be made by it shall not relieve any other
Lender of its obligations hereunder; provided that the Commitments of
the Lenders are several and no Lender shall be responsible for any other Lender’s
failure to make Loans as required.

 

(b)  Type of Loans.  Subject to Section 2.12, each Borrowing
shall be comprised entirely of ABR Loans or Eurodollar Loans as the Borrower
may request in accordance herewith.  Each
Lender at its option may make any Eurodollar Loan by causing any domestic or
foreign branch or Affiliate of such Lender to make such Loan; provided
that any exercise of such option shall not affect the obligation of the
Borrower to repay such Loan in accordance with the terms of this Agreement.

 

(c)  Minimum Amounts; Limitation on
Number of Borrowings.  At the
commencement of each Interest Period for any Eurodollar Borrowing, such
Borrowing shall be in an aggregate amount of $1,000,000 or a larger multiple of
$100,000.  At the time that each ABR
Borrowing (including each Swing Line Borrowing) is made, such Borrowing shall
be in an aggregate amount equal to $1,000,000 or a larger multiple of $100,000;
provided that an ABR Borrowing (including a Swing Line Borrowing) may be
in an aggregate amount that is equal to the entire unused balance of the total
Commitments of the applicable Class or that is required to finance the
reimbursement of an LC Disbursement as contemplated by Section 2.04(f).  Borrowings of more than one Type and Class may
be outstanding at the same time; provided that there shall not at any
time be more than a total of ten Eurodollar Borrowings outstanding.

 

35

 

SECTION 2.03.  Requests for Borrowings.  To request a Borrowing, the Borrower shall
notify the Administrative Agent of such request by telephone (a) in the
case of a Eurodollar Borrowing, not later than 10:00 a.m., New York City
time, three Business Days before the date of the proposed Borrowing or (b) in
the case of an ABR Borrowing (other than a Swing Line Borrowing), not later
than 10:00 a.m., New York City time, one Business Day before the date of
the proposed Borrowing.  Each such
telephonic Borrowing Request shall be irrevocable and shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent of a written
Borrowing Request in a form approved by the Administrative Agent and signed by
the Borrower.  Each such telephonic and
written Borrowing Request shall specify the following information in compliance
with Section 2.02:

 

(i)  whether the requested Borrowing is
to be a Revolving Borrowing or Term Borrowing;

 

(ii)  the aggregate amount of the
requested Borrowing;

 

(iii)  the date of such Borrowing, which
shall be a Business Day;

 

(iv)  whether such Borrowing is to be an
ABR Borrowing or a Eurodollar Borrowing;

 

(v)  in the case of a Eurodollar
Borrowing, the initial Interest Period to be applicable thereto, which shall be
a period contemplated by the definition of the term “Interest Period”; and

 

(vi)  the location and number of the
Borrower’s account to which funds are to be disbursed, which shall comply with
the requirements of Section 2.05.

 

If no election as to the Type of Borrowing is specified, then the
requested Borrowing shall be an ABR Borrowing (other than a Swing Line
Borrowing).  If no Interest Period is
specified with respect to any requested Eurodollar Borrowing, then the Borrower
shall be deemed to have selected an Interest Period of one month’s
duration.  Promptly following receipt of
a Borrowing Request in accordance with this Section, the Administrative Agent
shall advise each Lender of the details thereof and of the amount of such
Lender’s Loan to be made as part of the requested Borrowing.

 

SECTION 2.04. 
Letters of Credit.

 

(a)  General.  Subject to the terms and conditions set forth
herein, in addition to the Loans provided for in Section 2.01, the
Borrower may request the Issuing Lender to issue, at any time and from time to
time during the Revolving Availability Period, Letters of Credit for its own
account in such form as is acceptable to the Issuing Lender in its reasonable
determination.  Letters of Credit issued
hereunder shall constitute utilization of the Revolving Commitments.  The letters of credit issued by JPMCB and
outstanding under the Existing Credit Agreement on

 

36

 

the Second Restatement
Effective Date (the “Existing Letters of Credit”) shall be deemed to be “Letters
of Credit” for all purposes of this Agreement and the other Loan Documents.

 

(b)  Notice of Issuance, Amendment,
Renewal or Extension.  To request the
issuance of a Letter of Credit (or the amendment, renewal or extension of an
outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or
transmit by electronic communication, if arrangements for doing so have been
approved by the Issuing Lender) to the Issuing Lender and the Administrative
Agent (reasonably in advance of the requested date of issuance, amendment,
renewal or extension) a notice requesting the issuance of a Letter of Credit,
or identifying the Letter of Credit to be amended, renewed or extended, and
specifying the date of issuance, amendment, renewal or extension (which shall
be a Business Day), the date on which such Letter of Credit is to expire (which
shall comply with paragraph (d) of this Section), the amount of such
Letter of Credit, the name and address of the beneficiary thereof and such
other information as shall be necessary to prepare, amend, renew or extend such
Letter of Credit.  If requested by the
Issuing Lender, the Borrower also shall submit a letter of credit application
on the Issuing Lender’s standard form in connection with any request for a
Letter of Credit.  In the event of any
inconsistency between the terms and conditions of this Agreement and the terms
and conditions of any form of letter of credit application or other agreement
submitted by the Borrower to, or entered into by the Borrower with, the Issuing
Lender relating to any Letter of Credit, the terms and conditions of this
Agreement shall control.

 

(c)  Limitations on Amounts.  A Letter of Credit shall be issued, amended,
renewed or extended only if (and upon issuance, amendment, renewal or extension
of each Letter of Credit the Borrower shall be deemed to represent and warrant
that), after giving effect to such issuance, amendment, renewal or extension (i) the
aggregate LC Exposure of the Issuing Lender (determined for these purposes
without giving effect to the participations therein of the Revolving Lenders
pursuant to paragraph (e) of this Section) shall not exceed
$25,000,000 and (ii) the total Revolving Exposures shall not exceed the
total Revolving Commitments.

 

(d)  Expiration Date.  Each Letter of Credit shall expire at or
prior to the close of business on the earlier of (i) the date twelve
months after the date of issuance of such Letter of Credit (or, in the case of
any renewal or extension thereof, twelve months after the then-current
expiration date of such Letter of Credit, so long as such renewal or extension
occurs within three months of such then-current expiration date) and (ii) the
date that is five Business Days prior to the Revolving Maturity Date, provided
that, notwithstanding clause (i) above (but subject to clause (ii) above),
a Letter of Credit may have an expiration date of longer than twelve months if
it shall be requested by the Borrower to support an obligation having a
corresponding term (provided that the Issuing Lender may require that
such Letter of Credit include customary early termination rights (which shall
in any event permit the respective beneficiary thereof to draw the full amount
of such Letter of Credit upon receipt of notice of termination from the Issuing
Lender)).

 

(e)  Participations.  By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) by the Issuing
Lender, and without any further action on the part of the Issuing Lender or the
Lenders, the Issuing Lender hereby grants to each Lender, and each Lender
hereby acquires from the Issuing Lender, a participation in such Letter

 

37

 

of Credit equal to such Lender’s
Applicable Percentage of the aggregate amount available to be drawn under such
Letter of Credit.  Each Lender acknowledges
and agrees that its obligation to acquire participations pursuant to this
paragraph in respect of Letters of Credit is absolute and unconditional and
shall not be affected by any circumstance whatsoever, including any amendment,
renewal or extension of any Letter of Credit on the terms provided herein or
the occurrence and continuance of a Default or reduction or termination of the
Commitments, and that each such payment shall be made without any offset,
abatement, withholding or reduction whatsoever.

 

In consideration and in furtherance of the
foregoing, each Lender hereby absolutely and unconditionally agrees to pay to
the Administrative Agent, for the account of the Issuing Lender, such Lender’s
Applicable Percentage of each LC Disbursement made by the Issuing Lender
promptly upon the request of the Issuing Lender at any time from the time of
such LC Disbursement until such LC Disbursement is reimbursed by the Borrower
or at any time after any reimbursement payment is required to be refunded to
the Borrower for any reason.   Each such
payment shall be made in the same manner as provided in Section 2.08 with
respect to Loans made by such Lender (and Section 2.08 shall apply, mutatis
mutandis, to the payment obligations of the Lenders), and the Administrative
Agent shall promptly pay to the Issuing Lender the amounts so received by it
from the Lenders.  Promptly following
receipt by the Administrative Agent of any payment from the Borrower pursuant
to paragraph (f) of this Section, the Administrative Agent shall
distribute such payment to the Issuing Lender or, to the extent that the
Lenders have made payments pursuant to this paragraph to reimburse the Issuing
Lender, then to such Lenders and the Issuing Lender as their interests may
appear.  Any payment made by a Lender
pursuant to this paragraph to reimburse the Issuing Lender for any LC
Disbursement shall not constitute a Loan and shall not relieve the Borrower of
its obligation to reimburse such LC Disbursement.

 

(f)  Reimbursement.  If the Issuing Lender shall make any LC
Disbursement in respect of a Letter of Credit, the Borrower shall reimburse the
Issuing Lender in respect of such LC Disbursement by paying to the
Administrative Agent an amount equal to such LC Disbursement not later than
1:00 p.m., New York City time, on (i) the Business Day that the
Borrower receives notice of such LC Disbursement, if such notice is received
prior to 10:00 a.m., New York City time, or (ii) the Business Day
immediately following the day that the Borrower receives such notice, if such
notice is not received prior to such time, provided that, if such LC
Disbursement is not less than $1,000,000, the Borrower may, subject to the
conditions to borrowing set forth herein, request in accordance with Section 2.03
that such payment be financed with an ABR Revolving Borrowing or a Swing Line
Loan in an equivalent amount and, to the extent so financed, the Borrower’s
obligation to make such payment shall be discharged and replaced by the
resulting ABR Revolving Borrowing or Swing Line Loan.

 

If the Borrower fails to make such payment
when due, the Administrative Agent shall notify each Revolving Lender of the
applicable LC Disbursement, the payment then due from the Borrower in respect
thereof and such Lender’s Applicable Percentage thereof.

 

(g)  Obligations Absolute.  The Borrower’s obligation to reimburse LC
Disbursements as provided in paragraph (f) of this Section shall
be absolute, unconditional and

 

38

 

irrevocable, and shall be
performed strictly in accordance with the terms of this Agreement under any and
all circumstances whatsoever and irrespective of (i) any lack of validity
or enforceability of any Letter of Credit, or any term or provision therein, (ii) any
draft or other document presented under a Letter of Credit proving to be
forged, fraudulent or invalid in any respect or any statement therein being
untrue or inaccurate in any respect, (iii) payment by the Issuing Lender
under a Letter of Credit against presentation of a draft or other document that
does not comply strictly with the terms of such Letter of Credit, and (iv) any
other event or circumstance whatsoever, whether or not similar to any of the
foregoing, that might, but for the provisions of this Section, constitute a
legal or equitable discharge of the Borrower’s obligations hereunder.

 

Neither the Administrative Agent, the Lenders
nor the Issuing Lender, nor any of their Related Parties, shall have any
liability or responsibility by reason of or in connection with the issuance or
transfer of any Letter of Credit by the Issuing Lender or any payment or
failure to make any payment thereunder (irrespective of any of the
circumstances referred to in the preceding sentence), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or
other communication under or relating to any Letter of Credit (including any
document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of
the Issuing Lender; provided that the foregoing shall not be construed
to excuse the Issuing Lender from liability to the Borrower to the extent of
any direct damages (as opposed to consequential damages, claims in respect of
which are hereby waived by the Borrower to the extent permitted by applicable
law) suffered by the Borrower that are caused by the Issuing Lender’s gross
negligence or willful misconduct when determining whether drafts and other
documents presented under a Letter of Credit comply with the terms
thereof.  The parties hereto expressly
agree that:

 

(i)  the
Issuing Lender may accept documents that appear on their face to be in
substantial compliance with the terms of a Letter of Credit without responsibility
for further investigation, regardless of any notice or information to the
contrary, and may make payment upon presentation of documents that appear on
their face to be in substantial compliance with the terms of such Letter of
Credit;

 

(ii)  the
Issuing Lender shall have the right, in its sole discretion, to decline to
accept such documents and to make such payment if such documents are not in
strict compliance with the terms of such Letter of Credit; and

 

(iii) 
this sentence shall establish the standard of care to be exercised by the
Issuing Lender when determining whether drafts and other documents presented
under a Letter of Credit comply with the terms thereof (and the parties hereto
hereby waive, to the extent permitted by applicable law, any standard of care
inconsistent with the foregoing).

 

(h)  Disbursement Procedures.  The Issuing Lender shall, within a reasonable
time following its receipt thereof, examine all documents purporting to
represent a demand for payment under a Letter of Credit.  The Issuing Lender shall promptly after such
examination notify the Administrative Agent and the Borrower by telephone
(confirmed by telecopy) of such

 

39

 

demand for payment and whether
the Issuing Lender has made or will make an LC Disbursement thereunder; provided
that any failure to give or delay in giving such notice shall not relieve the
Borrower of its obligation to reimburse the Issuing Lender and the Lenders with
respect to any such LC Disbursement.

 

(i)  Interim Interest.  If the Issuing Lender shall make any LC
Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in
full on the date such LC Disbursement is made, the unpaid amount thereof shall
bear interest, for each day from and including the date such LC Disbursement is
made to but excluding the date that the Borrower reimburses such LC
Disbursement, at the rate per annum then applicable to ABR Loans; provided
that, if the Borrower fails to reimburse such LC Disbursement when due pursuant
to paragraph (f) of this Section, then Section 2.11(c) shall
apply.  Interest accrued pursuant to this
paragraph shall be for the account of the Issuing Lender, except that interest
accrued on and after the date of payment by any Lender pursuant to
paragraph (f) of this Section to reimburse the Issuing Lender
shall be for the account of such Lender to the extent of such payment.

 

(j)  Replacement
of the Issuing Lender.  The Issuing
Lender may be replaced at any time by written agreement among the Borrower, the
Administrative Agent, the replaced Issuing Lender and the successor Issuing
Lender.  The Administrative Agent shall
notify the Lenders of any such replacement of the Issuing Lender.  At the time any such replacement shall become
effective, the Borrower shall pay all unpaid fees accrued for the account of
the replaced Issuing Lender pursuant to Section 2.10(b).  From and after the effective date of any such
replacement, (i) the successor Issuing Lender shall have all the rights
and obligations of the replaced Issuing Lender under this Agreement with
respect to Letters of Credit to be issued thereafter and (ii) references
herein to the term “Issuing Lender” shall be deemed to refer to such successor
or to any previous Issuing Lender, or to such successor and all previous
Issuing Lenders, as the context shall require. 
After the replacement of an Issuing Lender hereunder, the replaced
Issuing Lender shall remain a party hereto and shall continue to have all the
rights and obligations of an Issuing Lender under this Agreement with respect
to Letters of Credit issued by it prior to such replacement, but shall not be
required to issue additional Letters of Credit.

 

(k)  Cash
Collateralization.  If an Event of
Default shall occur and be continuing and the Borrower receives notice from the
Administrative Agent or the Required Lenders (or, if the maturity of the Loans
has been accelerated, Lenders with LC Exposure representing more than 50% of
the total LC Exposure) demanding the deposit of cash collateral pursuant to
this paragraph, the Borrower shall immediately deposit into a Collateral
Account of the Borrower an amount in cash equal to the LC Exposure as of
such date plus any accrued and unpaid interest thereon and any
accrued and unpaid fees payable under Section 2.10(b); provided
that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without
demand or other notice of any kind, upon the occurrence of any Event of Default
with respect to the Borrower described in clause (g) or (h) of
Article VIII.  Such deposit shall be
held by the Administrative Agent in such Collateral Account as collateral in
the first instance for the LC Exposure under this Agreement and thereafter
for the payment of the “Secured Obligations” under and as defined in the
Security Agreement, and for these purposes the Borrower hereby grants a
security interest to the

 

40

 

Administrative Agent for the
benefit of the Lenders in such Collateral Account and in any financial assets
(as defined in the Uniform Commercial Code) or other property held therein.

 

(l)  Deliveries.  Promptly following the end of each calendar
quarter, the Issuing Lender shall deliver (through the Administrative Agent) to
each Revolving Lender and the Borrower a notice describing the aggregate amount
of all Letters of Credit outstanding at the end of such quarter.  Upon the request of any Revolving Lender from
time to time, the Issuing Lender shall deliver any other information reasonably
requested by such Revolving Lender with respect to each Letter of Credit then
outstanding.

 

SECTION 2.05.  Funding of Borrowings.

 

(a)  Funding by Lenders.  Each Lender shall make each Loan to be made
by it hereunder on the proposed date thereof by wire transfer of immediately
available funds by 1:00 p.m., New York City time, to the account of the
Administrative Agent most recently designated by it for such purpose by notice
to the Lenders, provided that Swing Line Loans shall be made as provided
in Section 2.01(d).  The
Administrative Agent will make such Loans available to the Borrower by promptly
crediting the amounts so received, in like funds, to an account of the Borrower
maintained with the Administrative Agent in New York City and designated by the
Borrower in the applicable Borrowing Request; provided that ABR
Revolving Borrowings made to finance the reimbursement of an LC Disbursement as
provided in Section 2.04(f) shall be remitted by the Administrative
Agent to the Issuing Lender.

 

(b)  Presumption by the
Administrative Agent.  Unless the
Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the
Administrative Agent such Lender’s share of such Borrowing, the Administrative
Agent may assume that such Lender has made such share available on such date in
accordance with paragraph (a) of this Section and may, in
reliance upon such assumption, make available to the Borrower a corresponding
amount.  In such event, if a Lender has
not in fact made its share of the applicable Borrowing available to the
Administrative Agent, then the applicable Lender and the Borrower severally
agree to pay to the Administrative Agent forthwith on demand such corresponding
amount with interest thereon, for each day from and including the date such
amount is made available to the Borrower to but excluding the date of payment
to the Administrative Agent, at (i) in the case of such Lender, the
Federal Funds Effective Rate or (ii) in the case of the Borrower, the
interest rate applicable to ABR Loans. 
If such Lender pays such amount to the Administrative Agent, then such
amount shall constitute such Lender’s Loan included in such Borrowing.

 

SECTION 2.06. 
Interest Elections.

 

(a)  Elections by the Borrower for
Borrowing.  Each Borrowing initially
shall be of the Type specified in the applicable Borrowing Request and, in the
case of a Eurodollar Borrowing, shall have an initial Interest Period as
specified in such Borrowing Request. 
Thereafter, the Borrower may elect to convert such Borrowing to a
different Type or to continue such Borrowing and, in the case of a Eurodollar
Borrowing, may elect Interest Periods therefor, all as provided in this
Section.  The Borrower may elect
different options with respect to different portions of the affected Borrowing,
in which case each such portion shall be allocated

 

41

 

ratably among the Lenders
holding the Loans comprising such Borrowing, and the Loans comprising each such
portion shall be considered a separate Borrowing.  This Section shall not apply to Swing
Line Borrowings, which may not be converted or continued.

 

(b)  Notice of Elections.  To make an election pursuant to this Section,
the Borrower shall notify the Administrative Agent of such election by
telephone by the time that a Borrowing Request would be required under Section 2.03
if the Borrower were requesting a Borrowing of the Type resulting from such
election to be made on the effective date of such election.  Each such telephonic Interest Election
Request shall be irrevocable and shall be confirmed promptly by hand delivery
or telecopy to the Administrative Agent of a written Interest Election Request
in a form approved by the Administrative Agent and signed by the Borrower.

 

(c)  Information in Interest Election
Requests.  Each telephonic and
written Interest Election Request shall specify the following information in
compliance with Section 2.02:

 

(i)  the
Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the
portions thereof to be allocated to each resulting Borrowing (in which case the
information to be specified pursuant to clauses (iii) and (iv) of
this paragraph shall be specified for each resulting Borrowing);

 

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

 

(iii) 
whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing; and

 

(iv)  if
the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a
period contemplated by the definition of the term “Interest Period”.

 

If any such Interest Election Request requests a Eurodollar Borrowing
but does not specify an Interest Period, then the Borrower shall be deemed to
have selected an Interest Period of one month’s duration.

 

(d)  Notice by the Administrative
Agent to Lenders.  Promptly following
receipt of an Interest Election Request, the Administrative Agent shall advise
each Lender of the details thereof and of such Lender’s portion of each resulting
Borrowing.

 

(e)  Failure to Elect; Events of
Default.  If the Borrower fails to
deliver a timely Interest Election Request with respect to a Eurodollar
Borrowing prior to the end of the Interest Period applicable thereto, then,
unless such Borrowing is repaid as provided herein, at the end of such Interest
Period such Borrowing shall be converted to an ABR Borrowing (other than a
Swing Line Borrowing).  Notwithstanding
any contrary provision hereof, if an Event of Default

 

42

 

has occurred and is continuing
and the Administrative Agent, at the request of the Required Lenders, so
notifies the Borrower, then, so long as an Event of Default is continuing (i) no
outstanding Borrowing may be converted to or continued as a Eurodollar
Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be
converted to an ABR Borrowing (other than a Swing Line Borrowing) at the end of
the Interest Period applicable thereto.

 

(f)  Limitations on Lengths of
Interest Periods.  Notwithstanding
any other provision of this Agreement, the Borrower shall not be entitled to
request, or to elect to convert to or continue as a Eurodollar Borrowing:  (i) any Revolving Borrowing if the
Interest Period requested with respect thereto would end after the Revolving
Maturity Date; (ii) any Term Borrowing if the Interest Period requested
with respect thereto would end after the Term Loan Maturity Date; (iii) any
Term Loan if the Interest Period therefor would commence before and end after
any Term Loan Principal Payment Date unless, after giving effect thereto, the
aggregate principal amount of the Term Loans having Interest Periods that end
after such Term Loan Principal Payment Date shall be equal to or less than the
aggregate principal amount of the Term Loans permitted to be outstanding after
giving effect to the payments of principal required to be made on such Term
Loan Principal Payment Date; (iv) any Incremental Revolving Borrowing of
any Series if the Interest Period requested with respect thereto would end
after the Incremental Revolving Maturity Date for such Series; (v) any
Incremental Term Borrowing of any Series if the Interest Period requested
with respect thereto would end after the Incremental Term Loan Maturity Date
for such Series; or (vi) any Incremental Term Loan of any Series if
the Interest Period therefor would commence before and end after any
Incremental Term Loan Principal Payment Date for such Series unless, after
giving effect thereto, the aggregate principal amount of the Incremental Term
Loans of such Series having Interest Periods that end after such
Incremental Term Loan Principal Payment Date shall be equal to or less than the
aggregate principal amount of the Incremental Term Loans of such Series permitted
to be outstanding after giving effect to the payments of principal required to
be made on such Incremental Term Loan Principal Payment Date.

 

SECTION 2.07.  Termination and Reduction of the
Commitments.

 

(a)  Scheduled Termination.  Unless previously terminated, (i) the
Term Loan Commitments shall terminate at 5:00 p.m., New York City time, on
the Second Restatement Effective Date, (ii) the Revolving Commitments
shall terminate on the Revolving Maturity Date and (iii) each Incremental
Loan Commitment of any Series shall terminate on the applicable commitment
termination date for such Series specified in the Incremental Loan
Amendment for such Series.

 

(b)  Test Date Reductions.  Notwithstanding anything to the contrary in
this Agreement, if on any date (the “Test Date”) the maturity date for
any of the then outstanding Indebtedness evidenced or provided by the Existing
Senior Subordinated Note Indentures, the Additional Subordinated Notes, the
Converted Senior Subordinated Notes or the Senior Notes shall fall within six
months of the Test Date, then all Commitments shall automatically reduce to
zero on the Test Date.

 

43

 

(c)  Voluntary Termination or
Reduction.  The Borrower may at any
time terminate, or from time to time reduce, the Commitments of any Class; provided
that (i) each reduction of the Commitments of any Class pursuant to
this Section shall be in an amount that is $5,000,000 or a larger multiple
of $1,000,000 and (ii) the Borrower shall not terminate or reduce the
Revolving Commitments if, after giving effect to any concurrent prepayment of
the Loans in accordance with Section 2.09, the total Revolving Exposures
would exceed the total Revolving Commitments. 
The Borrower shall notify the Administrative Agent of any election to
terminate or reduce the Commitments of any Class under this
paragraph (c) at least two Business Days prior to the effective date
of such termination or reduction, specifying such election and the effective
date thereof.  Promptly following receipt
of any notice, the Administrative Agent shall advise the Lenders of the
contents thereof.  Each notice delivered
by the Borrower pursuant to this Section shall be irrevocable; provided
that a notice of termination of the Revolving Commitments delivered by the
Borrower may state that such notice is conditioned upon the effectiveness of
other credit facilities, in which case such notice may be revoked by the
Borrower (by notice to the Administrative Agent on or prior to the specified
effective date) if such condition is not satisfied.

 

(d)  Effect of Termination or
Reduction.  Any termination or
reduction of the Commitments of any Class shall be permanent.  Each reduction of the Commitments of any Class shall
be made ratably among the Lenders in accordance with their respective
Commitments of such Class.

 

SECTION 2.08.  Repayment of Loans; Evidence of Debt.

 

(a)  Repayment.  The Borrower hereby unconditionally promises
to pay the Loans as follows:

 

(i)  to
the Administrative Agent for the account of each Revolving Lender the
outstanding principal amount of each Revolving Loan of such Lender on the
Revolving Maturity Date;

 

(ii)  to
the Administrative Agent for the account of each Term Loan Lender the
outstanding principal amount of the Term Loan of such Lender on each Term Loan
Principal Payment Date set forth below in an aggregate principal amount equal
to the percentage of the aggregate original principal amount of the Term Loans
set forth opposite such Term Loan Principal Payment Date (subject to adjustment
pursuant to paragraph (b) of this Section):

 

44

 

	
  Term Loan Principal

  Payment Date Falling on or

  Nearest to:

  	
   

  	
  Amounts (%):

  	
   

  
	
  March 31, 2007

  	
   

  	
  1.25

  	
   

  
	
  June 30, 2007

  	
   

  	
  1.25

  	
   

  
	
  September 30, 2007

  	
   

  	
  1.25

  	
   

  
	
  December 31, 2007

  	
   

  	
  1.25

  	
   

  
	
  March 31, 2008

  	
   

  	
  1.25

  	
   

  
	
  June 30, 2008

  	
   

  	
  1.25

  	
   

  
	
  September 30, 2008

  	
   

  	
  1.25

  	
   

  
	
  December 31, 2008

  	
   

  	
  1.25

  	
   

  
	
  March 31, 2009

  	
   

  	
  3.75

  	
   

  
	
  June 30, 2009

  	
   

  	
  3.75

  	
   

  
	
  September 30, 2009

  	
   

  	
  3.75

  	
   

  
	
  December 31, 2009

  	
   

  	
  3.75

  	
   

  
	
  March 31, 2010

  	
   

  	
  3.75

  	
   

  
	
  June 30, 2010

  	
   

  	
  3.75

  	
   

  
	
  September 30, 2010

  	
   

  	
  3.75

  	
   

  
	
  December 31, 2010

  	
   

  	
  3.75

  	
   

  
	
  March 31, 2011

  	
   

  	
  15.00

  	
   

  
	
  June 30, 2011

  	
   

  	
  15.00

  	
   

  
	
  September 30, 2011

  	
   

  	
  15.00

  	
   

  
	
  December 31, 2011

  	
   

  	
  15.00

  	
   

  

 

(iii)  to
the Administrative Agent for the account of each Incremental Lender of any
Series, the outstanding principal amount of each Incremental Loan of such
Lender on the Incremental Loan Principal Payment Dates for such Series and
in such amounts as shall be agreed upon pursuant to Section 2.01(c) at
the time the Incremental Loan Commitments of such Series are established
(subject to adjustment pursuant to paragraph (b) of this Section);
and

 

(iv)  to
the Swing Line Lender the then outstanding principal amount of each Swing Line
Loan on the earlier of the Revolving Maturity Date and the first date after
such Swing Line Loan is made that is the 15th or last day of a calendar month
and is at least two Business Days after such Swing Line Loan is made, provided
that on each date a Revolving Borrowing is made, the Borrower shall repay all
Swing Line Loans then outstanding.

 

(b)  Adjustment of Amortization
Schedule.  (i)  Notwithstanding
anything to the contrary in this Agreement, if on any date (the “Test Date”)
the maturity date for any of the then outstanding Indebtedness evidenced or
provided by the Existing Senior Subordinated Note Indentures, the Additional
Subordinated Notes, the Converted Senior Subordinated Notes or the Senior Notes
shall fall within six months of the Test Date, then the Revolving Maturity
Date, the Term Loan Maturity Date, each Incremental Revolving Maturity Date and
each Incremental Term Loan Maturity Date shall automatically be accelerated to
the Test Date and all of the Loans shall thereupon be due and payable on the
Test Date, together with all interest and fees accrued thereon or in respect
thereof and any amounts payable pursuant hereto, including Sections 2.13,
2.14 and 2.15.

 

(ii)  Any prepayment of a Term Loan or
an Incremental Term Loan shall be applied ratably to the respective remaining
scheduled installments thereof.  To the
extent not

 

45

 

previously paid, all Term Loans
shall be due and payable on the Term Loan Maturity Date.  To the extent not previously paid, all
Incremental Term Loans of any Series shall be due and payable on the
Incremental Term Loan Maturity Date for such Series.

 

(c)  Manner of Payment.  Prior to any repayment or prepayment of any
Borrowings of either Class hereunder, the Borrower shall select the
Borrowing or Borrowings of the applicable Class to be paid and shall
notify the Administrative Agent (and, in the case of repayment or prepayment of
a Swing Line Loan, the Swing Line Lender) by telephone (confirmed by telecopy)
of such selection not later than 10:00 a.m., New York City time, three
Business Days before the scheduled date of such repayment; provided that
each repayment of Borrowings of either Class shall be applied to repay any
outstanding ABR Borrowings of such Class before any other Borrowings of
such Class.  If the Borrower fails to
make a timely selection of the Borrowing or Borrowings to be repaid or prepaid,
such payment shall be applied, first, to pay any outstanding ABR Borrowings of
the applicable Class and, second, to other Borrowings of such Class in
the order of the remaining duration of their respective Interest Periods (the
Borrowing with the shortest remaining Interest Period to be repaid first).  Each payment of a Borrowing shall be applied
ratably to the Loans included in such Borrowing.

 

(d)  Maintenance of Loan Accounts by
Lenders.  Each Lender shall maintain
in accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower to such Lender resulting from each Loan made by
such Lender, including the amounts of principal and interest payable and paid
to such Lender from time to time hereunder.

 

(e)  Maintenance of Loan Accounts by
the Administrative Agent.  The
Administrative Agent shall maintain accounts in which it shall record (i) the
amount of each Loan made hereunder, the Class and Type thereof and the
Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrower to each
Lender hereunder and (iii) the amount of any sum received by the
Administrative Agent hereunder for the account of the Lenders and each Lender’s
share thereof.

 

(f)  Effect of Loan Accounts.  The entries made in the accounts maintained
pursuant to paragraph (d) or (e) of this Section shall
be prima  facie evidence of the existence and amounts of the
obligations recorded therein; provided that the failure of any Lender or
the Administrative Agent to maintain such accounts or any error therein shall
not in any manner affect the obligation of the Borrower to repay the Loans in
accordance with the terms of this Agreement.

 

(g)  Promissory Notes.  Any Lender may request that Loans of any Class made
by it be evidenced by a promissory note. 
In such event, the Borrower shall prepare, execute and deliver to such
Lender a promissory note payable to the order of such Lender (or, if requested
by such Lender, to such Lender and its registered assigns) and in a form
approved by the Administrative Agent. 
Thereafter, the Loans evidenced by such promissory note and interest
thereon shall at all times (including after assignment pursuant to Section 10.04)
be represented by one or more promissory notes in such form payable to the
order of the payee named therein (or, if such promissory note is a registered
note, to such payee and its registered assigns).

 

46

 

SECTION 2.09. 
Prepayment of Loans.

 

(a)  Optional Prepayments.  The Borrower shall have the right at any time
and from time to time to prepay any Borrowing in whole or in part, subject to
the requirements of this Section.  Any
prepayment of the Term Loans or the Incremental Term Loans pursuant to this
paragraph shall be applied ratably to the then outstanding Term Loans and
Incremental Term Loans and, in each case, ratably to the respective remaining
installments thereof.  Any partial
prepayment shall be in an amount that is $1,000,000 or a larger multiple of
$100,000.

 

(b)  Mandatory Prepayments.  The Borrower will prepay the Term Loans and
the Incremental Term Loans, as follows:

 

(i)  Sale of Assets.  If the Borrower or any of its Subsidiaries
shall receive Net Available Proceeds from any Disposition (excluding any
Disposition permitted by clauses (a), (b), and (d)(ii)(B) of Section 7.05)
(the “Current Disposition”), which taken together with the Net Available
Proceeds for all prior such Dispositions as to which a prepayment has not yet
been made under this paragraph, shall exceed $5,000,000 in the aggregate (such
excess amount, the “Excess Disposition Proceeds”), then (unless a
Reinvestment Notice shall have been delivered in respect thereof) such Excess
Disposition Proceeds shall be applied within five Business Days following such
receipt toward the prepayment of the Loans as set forth in paragraph (b)(ii) of
this Section.  Notwithstanding the
foregoing, on each Reinvestment Prepayment Date, an amount equal to the
Reinvestment Prepayment Amount with respect to the relevant Reinvestment Event
shall be applied toward the prepayment of the Loans as set forth in said
paragraph (b)(ii).

 

(ii)  Application.  Prepayments pursuant to this paragraph shall
be applied ratably to the then outstanding Term Loans and Incremental Term
Loans and, in each case, ratably to the respective remaining installments
thereof.

 

(c)  Notices, Etc.  The Borrower shall notify the Administrative
Agent by telephone (confirmed by telecopy) of any optional prepayment hereunder
(i) in the case of prepayment of a Eurodollar Borrowing, not later than
10:00 a.m., New York City time, three Business Days before the date of
prepayment or (ii) in the case of prepayment of an ABR Borrowing, not
later than 10:00 a.m., New York City time, one Business Day before the
date of prepayment.  Each such notice
shall be irrevocable and shall specify the prepayment date, the principal
amount of each Borrowing or portion thereof to be prepaid and, in the case of a
mandatory prepayment, a reasonably detailed calculation of the amount of such
prepayment; provided that, if a notice of prepayment is given in
connection with a conditional notice of termination of the Revolving
Commitments as contemplated by Section 2.07, then such notice of
prepayment may be revoked if such notice of termination is revoked in
accordance with Section 2.07. 
Promptly following receipt of any such notice relating to a Borrowing,
the Administrative Agent shall advise the relevant Lenders of the contents
thereof.  Each partial prepayment of any
Borrowing shall be in an amount that would be permitted in the case of a
Borrowing of the same Type as provided in Section 2.02, except as necessary
to apply fully the required amount of a mandatory prepayment.  Each prepayment of a Borrowing shall be
applied ratably to the Loans included in the prepaid Borrowing.  Prepayments shall be accompanied by

 

47

 

accrued interest to the extent
required by Section 2.11 and shall be made in the manner specified in Section 2.08(c).

 

SECTION 2.10. 
Fees.

 

(a)  Commitment Fee.  The Borrower agrees to pay to the
Administrative Agent for the account of each Lender a commitment fee, which
shall accrue at the Applicable Rate on the average daily unused amount of the
Revolving Commitment of such Lender during the period from and including the
date hereof to but excluding the earlier of the date such Revolving Commitment terminates
and the Revolving Maturity Date.  Accrued
commitment fees shall be payable in arrears on each Quarterly Date and on the
earlier of the date the Revolving Commitment terminates and the Revolving
Maturity Date, commencing on the first such date to occur after the date
hereof.  All commitment fees shall be
computed on the basis of a year of 360 days and shall be payable for the actual
number of days elapsed (including the first day but excluding the last day).  For purposes of computing commitment fees,
the Revolving Commitment of a Lender shall be deemed to be used to the extent
of the outstanding Revolving Loans, LC Exposure of such Lender and, with
respect to the outstanding Swing Line Loans (if any), the aggregate amount of
participations therein that have been funded by the Lenders in accordance with
the last paragraph of Section 2.01(d).

 

(b)  Letter of Credit Fees.  The Borrower agrees to pay (i) to the
Administrative Agent for the account of each Revolving Lender a participation
fee with respect to its participations in Letters of Credit, which shall accrue
at a rate per annum equal to the Applicable Rate applicable to interest on
Eurodollar Revolving Loans on the average daily amount of such Lender’s
LC Exposure (excluding any portion thereof attributable to unreimbursed LC
Disbursements) during the period from and including the Second Restatement
Effective Date to but excluding the later of the date on which such Lender’s
Revolving Commitment terminates and the date on which such Lender ceases to
have any LC Exposure, and (ii) to the Issuing Lender a fronting fee,
which shall accrue at the rate or rates per annum separately agreed upon
between the Borrower and the Issuing Lender on the average daily amount of the
LC Exposure (excluding any portion thereof attributable to unreimbursed LC
Disbursements) during the period from and including the Second Restatement
Effective Date to but excluding the later of the date of termination of the
Revolving Commitments and the date on which there ceases to be any
LC Exposure, as well as the Issuing Lender’s standard fees with respect to
the issuance, amendment, renewal or extension of any Letter of Credit or
processing of drawings thereunder. 
Participation fees and fronting fees accrued through and including each
Quarterly Date shall be payable on the third Business Day following such
Quarterly Date, commencing on the first such date to occur after the Second
Restatement Effective Date; provided that all such fees shall be payable
on the date on which the Revolving Commitments terminate and any such fees
accruing after the date on which the Revolving Commitments terminate shall be
payable on demand.  Any other fees
payable to the Issuing Lender pursuant to this paragraph shall be payable
within 10 days after demand.  All
participation fees and fronting fees shall be computed on the basis of a year
of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).

 

48

 

(c)  Administrative Agent Fees.  The Borrower agrees to pay to the
Administrative Agent, for its own account, fees payable in the amounts and at
the times separately agreed upon between the Borrower and the Administrative
Agent.

 

(d)  Payment of Fees.  All fees payable hereunder shall be paid on
the dates due, in immediately available funds, to the Administrative Agent (or
to the Issuing Lender, in the case of fees payable to it) for distribution, in
the case of commitment fees and participation fees, to the Lenders entitled
thereto.  Fees paid shall not be
refundable under any circumstances.

 

SECTION 2.11. 
Interest.

 

(a)  ABR Loans.  The Loans comprising each ABR Borrowing
(including each Swing Line Loan) shall bear interest at a rate per annum equal
to the Alternate Base Rate plus the Applicable Rate.

 

(b)  Eurodollar Loans.  The Loans comprising each Eurodollar
Borrowing shall bear interest at a rate per annum equal to the Adjusted LIBO
Rate for the Interest Period in effect for such Borrowing plus the
Applicable Rate.

 

(c)  Default Interest.  Notwithstanding the foregoing, during any
period that a Post-Default Condition exists (whether or not the same is
thereafter cured), the Borrower hereby promises to pay to the Administrative
Agent for account of each Lender interest at the applicable Post-Default Rate
on any principal of any Loan made by such Lender (whether or not then due), on
any reimbursement obligation in respect of an LC Disbursement owing to
such Lender and on any other amount then due and payable by the Borrower
hereunder.

 

(d)  Payment of Interest.  Accrued interest on each Loan shall be
payable in arrears on each Interest Payment Date for such Loan and, in the case
of Revolving Loans and the Incremental Revolving Loans, upon termination of the
Revolving Commitments and the Incremental Revolving Commitments, respectively; provided
that (i) interest accrued pursuant to paragraph (c) of this Section shall
be payable on demand, (ii) in the event of any repayment or prepayment of
any Loan (other than a prepayment of (x) an ABR Revolving Loan prior to
the Revolving Maturity Date or (y) an ABR Incremental Revolving Loan prior
to the applicable Incremental Revolving Maturity Date), accrued interest on the
principal amount repaid or prepaid shall be payable on the date of such
repayment or prepayment and (iii) in the event of any conversion of any
Eurodollar Borrowing prior to the end of the current Interest Period therefor,
accrued interest on such Borrowing shall be payable on the effective date of
such conversion.

 

(e)  Computation.  All interest hereunder shall be computed on
the basis of a year of 360 days, except that interest computed by reference to
the Alternate Base Rate at times when the Alternate Base Rate is based on the
Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in
a leap year), and in each case shall be payable for the actual number of days
elapsed (including the first day but excluding the last day).  The applicable Alternate Base Rate or
Adjusted LIBO Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.

 

49

 

SECTION 2.12.  Alternate Rate of
Interest.  If prior to the
commencement of any Interest Period for a Eurodollar Borrowing:

 

(a)  the
Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for
ascertaining the Adjusted LIBO Rate for such Interest Period; or

 

(b)  if
such Borrowing is of a particular Class of Loans, the Administrative Agent
is advised by the Required Lenders of such Class that the Adjusted LIBO
Rate for such Interest Period will not adequately and fairly reflect the cost
to such Lenders of making or maintaining their Loans included in such Borrowing
for such Interest Period;

 

then the Administrative Agent shall give notice thereof to the Borrower
and the Lenders by telephone or telecopy as promptly as practicable thereafter
and, until the Administrative Agent notifies the Borrower and the Lenders that
the circumstances giving rise to such notice no longer exist, (i) any
Interest Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective
and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such
Borrowing shall be made as an ABR Borrowing (other than a Swing Line
Borrowing).

 

SECTION 2.13. 
Increased Costs.

 

(a)  Increased Costs Generally.  If any Change in Law shall:

 

(i) 
impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit
extended by, any Lender (except any such reserve requirement reflected in the
Adjusted LIBO Rate) or the Issuing Lender; or

 

(ii) 
impose on any Lender or the Issuing Lender or the London interbank market any
other condition affecting this Agreement or Eurodollar Loans made by such
Lender or any Letter of Credit or participation therein;

 

and the result of any of the foregoing shall be to increase the cost to
such Lenders of making or maintaining any Eurodollar Loan (or of maintaining
its obligation to make any such Loan) or to increase the cost to such Lender or
the Issuing Lender of participating in, issuing or maintaining any Letter of
Credit or to reduce the amount of any sum received or receivable by such Lender
or the Issuing Lender hereunder (whether of principal, interest or otherwise),
then the Borrower will pay to such Lender or the Issuing Lender, as the case
may be, such additional amount or amounts as will compensate such Lender or the
Issuing Lender, as the case may be, for such additional costs incurred or
reduction suffered.

 

(b)  Capital Requirements.  If any Lender or the Issuing Lender
determines that any Change in Law regarding capital requirements has or would
have the effect of reducing the rate of return on such Lender’s or the Issuing
Lender’s capital or on the capital of such Lender’s or the Issuing Lender’s
holding company, if any, as a consequence of this Agreement or the

 

50

 

Loans made by, or
participations in Letters of Credit held by, such Lender, or the Letters of
Credit issued by the Issuing Lender, to a level below that which such Lender or
the Issuing Lender or such Lender’s or the Issuing Lender’s holding company
could have achieved but for such Change in Law (taking into consideration such
Lender’s or the Issuing Lender’s policies and the policies of such Lender’s or
the Issuing Lender’s holding company with respect to capital adequacy), then
from time to time the Borrower will pay to such Lender or the Issuing Lender,
as the case may be, such additional amount or amounts as will compensate such
Lender or the Issuing Lender or such Lender’s or the Issuing Lender’s holding
company for any such reduction suffered.

 

(c)  Certificates from Lenders.  A certificate of a Lender or the Issuing
Lender setting forth the amount or amounts necessary to compensate such Lender
or the Issuing Lender or its holding company, as the case may be, as specified
in paragraph (a) or (b) of this Section shall be
delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender or the
Issuing Lender, as the case may be, the amount shown as due on any such
certificate within 10 days after receipt thereof.

 

(d)  Delay in Requests.  Failure or delay on the part of any Lender or
the Issuing Lender to demand compensation pursuant to this Section shall
not constitute a waiver of such Lender’s or the Issuing Lender’s right to
demand such compensation; provided that the Borrower shall not be
required to compensate a Lender or the Issuing Lender pursuant to this Section for
any increased costs or reductions incurred more than 45 days prior to the date
that such Lender or the Issuing Lender, as the case may be, notifies the
Borrower of the Change in Law giving rise to such increased costs or reductions
and of such Lender’s or the Issuing Lender’s intention to claim compensation
therefor; provided, further, that, if the Change in Law giving
rise to such increased costs or reductions is retroactive, then the 45-day
period referred to above shall be extended to include the period of retroactive
effect thereof.

 

SECTION 2.14.  Break
Funding Payments.  In the event of (a) the
payment of any principal of any Eurodollar Loan other than on the last day of
an Interest Period applicable thereto (including as a result of an Event of
Default), (b) the conversion of any Eurodollar Loan other than on the last
day of the Interest Period applicable thereto, (c) the failure to borrow,
convert, continue or prepay any Loan on the date specified in any notice
delivered pursuant hereto (regardless of whether such notice is permitted to be
revocable under Section 2.09(c) and is revoked in accordance
herewith), or (d) the assignment of any Eurodollar Loan other than on the
last day of the Interest Period applicable thereto as a result of a request by
the Borrower pursuant to Section 2.17, then, in any such event, the
Borrower shall compensate each Lender for the loss, cost and expense
attributable to such event.  In the case
of a Eurodollar Loan, the loss to any Lender attributable to any such event
shall be deemed to include an amount determined by such Lender to be equal to
the excess, if any, of (i) the amount of interest that such Lender would
pay for a deposit equal to the principal amount of such Loan for the period
from the date of such payment, conversion, failure or assignment to the last
day of the then current Interest Period for such Loan (or, in the case of a
failure to borrow, convert or continue, the duration of the Interest Period
that would have resulted from such borrowing, conversion or continuation) if
the interest rate payable on such deposit were equal to the Adjusted LIBO Rate
for such Interest Period, over (ii) the amount of interest that such
Lender would earn on such principal amount for such period

 

51

 

if such Lender were to invest
such principal amount for such period at the interest rate that would be bid by
such Lender (or an Affiliate of such Lender) for dollar deposits from other
banks in the eurodollar market at the commencement of such period.  A certificate of any Lender setting forth any
amount or amounts that such Lender is entitled to receive pursuant to this Section shall
be delivered to the Borrower and shall be conclusive absent manifest
error.  The Borrower shall pay such
Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.

 

SECTION 2.15. 
Taxes.

 

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

 

(b)  Payment of Other Taxes by the
Borrower.  In addition, the Borrower
shall pay any Other Taxes to the relevant Governmental Authority in accordance
with applicable law.

 

(c)  Indemnification by the Borrower.  The Borrower shall indemnify the
Administrative Agent, each Lender and the Issuing Lender, within 10 days after
written demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) paid by the Administrative
Agent, such Lender or the Issuing Lender, as the case may be, and any
penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such
payment or liability delivered to the Borrower by a Lender or the Issuing
Lender, or by the Administrative Agent on its own behalf or on behalf of a
Lender or the Issuing Lender, shall be conclusive absent manifest error.

 

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

 

(e)  Foreign Lenders.  Any Foreign Lender that is entitled to an
exemption from or reduction of withholding tax under the law of the
jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall
deliver to the Borrower (with a copy to the Administrative Agent), at the time
or times

 

52

 

prescribed by applicable law or
reasonably requested by the Borrower, such properly completed and executed
documentation prescribed by applicable law as will permit such payments to be
made without withholding or at a reduced rate.

 

SECTION 2.16.  Payments Generally; Pro Rata Treatment;
Sharing of Set-offs.

 

(a)  Payments by the Obligors.  Each Obligor shall make each payment required
to be made by it hereunder (whether of principal, interest, fees or
reimbursement of LC Disbursements, or under Section 2.13, 2.14 or 2.15, or
otherwise) or under any other Loan Document (except to the extent otherwise
provided therein) prior to 1:00 p.m., New York City time, on the date when
due, in immediately available funds, without set-off or counterclaim.  Any amounts received after such time on any
date may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating
interest thereon.  All such payments
shall be made to the Administrative Agent at its offices at 270 Park Avenue,
New York, New York, except as otherwise expressly provided in the relevant Loan
Document, and except payments to be made directly to the Issuing Lender or the
Swing Line Lender as expressly provided herein and except that payments
pursuant to Sections 2.13, 2.14, 2.15 and 10.03 shall be made directly to
the Persons entitled thereto.  The
Administrative Agent shall distribute any such payments received by it for the
account of any other Person to the appropriate recipient promptly following
receipt thereof.  If any payment
hereunder shall be due on a day that is not a Business Day, the date for
payment shall be extended to the next succeeding Business Day and, in the case
of any payment accruing interest, interest thereon shall be payable for the
period of such extension.  All payments
hereunder or under any other Loan Document (except to the extent otherwise
provided therein) shall be made in dollars.

 

(b)  Application of Insufficient
Payments.  If at any time
insufficient funds are received by and available to the Administrative Agent to
pay fully all amounts of principal, unreimbursed LC Disbursements, interest and
fees then due hereunder, such funds shall be applied (i) first, to pay
interest and fees then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of interest and fees then due to such
parties, and (ii) second, to pay principal and unreimbursed LC
Disbursements then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of principal and unreimbursed LC Disbursements then
due to such parties.

 

(c)  Pro Rata Treatment.  Except to the extent otherwise provided
herein:  (i) each Borrowing of a
particular Class shall be made from the relevant Lenders, each payment of
commitment fee under Section 2.10 shall be made for account of the relevant
Lenders, and each termination or reduction of the amount of the Commitments of
a particular Class under Section 2.07 shall be applied to the
respective Commitments of such Class of the relevant Lenders, pro rata
according to the amounts of their respective Commitments of such Class; (ii) each
Borrowing of any Class shall be allocated pro rata among the relevant
Lenders according to the amounts of their respective Commitments of such Class (in
the case of the making of Loans) or their respective Loans of such Class (in
the case of conversions and continuations of Loans); (iii) each payment or
prepayment of principal of Revolving Loans, Term Loans and Incremental Loans by
the Borrower shall be made for account of the relevant

 

53

 

Lenders pro rata in accordance
with the respective unpaid principal amounts of the Loans of such Class held
by them; and (iv) each payment of interest on Revolving Loans, Term Loans
and Incremental Loans by the Borrower shall be made for account of the relevant
Lenders pro rata in accordance with the amounts of interest on such Loans then
due and payable to the respective Lenders.

 

(d)  Sharing of Payments by Lenders.  If any Lender shall, by exercising any right
of set-off or counterclaim or otherwise, obtain payment in respect of any
principal of or interest on any of its Loans or participations in LC
Disbursements or Swing Line Loans resulting in such Lender receiving payment of
a greater proportion of the aggregate amount of its Loans and participations in
LC Disbursements and Swing Line Loans and accrued interest thereon then due
than the proportion received by any other Lender, then the Lender receiving
such greater proportion shall purchase (for cash at face value) participations
in the Loans and participations in LC Disbursements and Swing Line Loans of
other Lenders to the extent necessary so that the benefit of all such payments
shall be shared by the Lenders ratably in accordance with the aggregate amount
of principal of and accrued interest on their respective Loans and
participations in LC Disbursements and Swing Line Loans; provided that (i) if
any such participations are purchased and all or any portion of the payment
giving rise thereto is recovered, such participations shall be rescinded and
the purchase price restored to the extent of such recovery, without interest,
and (ii) the provisions of this paragraph shall not be construed to apply
to any payment made by any Obligor pursuant to and in accordance with the
express terms of this Agreement or any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its
Loans or participations in LC Disbursements or Swing Line Loans to any assignee
or participant, other than to the Borrower or any Subsidiary or Affiliate
thereof (as to which the provisions of this paragraph shall apply).  Each Obligor consents to the foregoing and
agrees, to the extent it may effectively do so under applicable law, that any
Lender acquiring a participation pursuant to the foregoing arrangements may
exercise against such Obligor rights of set-off and counterclaim with respect
to such participation as fully as if such Lender were a direct creditor of such
Obligor in the amount of such participation.

 

(e)  Presumptions of Payment.  Unless the Administrative Agent shall have
received notice from the Borrower prior to the date on which any payment is due
to the Administrative Agent for the account of the Lenders or the Issuing
Lender hereunder that the Borrower will not make such payment, the
Administrative Agent may assume that the Borrower has made such payment on such
date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders or the Issuing Lender, as the case may be, the amount
due.  In such event, if the Borrower has
not in fact made such payment, then each of the Lenders or the Issuing Lender,
as the case may be, severally agrees to repay to the Administrative Agent
forthwith on demand the amount so distributed to such Lender or the Issuing
Lender with interest thereon, for each day from and including the date such
amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the Federal Funds Effective Rate.

 

(f)  Certain Deductions by the
Administrative Agent.  If any Lender
shall fail to make any payment required to be made by it pursuant to Section 2.04(e) or (f),
2.05(b) or 2.16(e), then the Administrative Agent may, in its
discretion (notwithstanding any contrary provision hereof), apply any amounts
thereafter received by the Administrative Agent hereunder

 

54

 

for the account of such Lender
to satisfy such Lender’s obligations under such Sections until all such
unsatisfied obligations are fully paid.

 

SECTION 2.17.  Mitigation Obligations; Replacement of
Lenders.

 

(a)  Designation of a Different
Lending Office.  If any Lender
requests compensation under Section 2.13, or if the Borrower is required
to pay any additional amount to any Lender or any Governmental Authority for
the account of any Lender pursuant to Section 2.15, then such Lender shall
use reasonable efforts to designate a different lending office for funding or
booking its Loans hereunder or to assign its rights and obligations hereunder
to another of its offices, branches or Affiliates, if, in the judgment of such
Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 2.13 or 2.15, as the case may be,
in the future and (ii) would not subject such Lender to any unreimbursed
cost or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any
such designation or assignment.

 

(b)  Replacement of Lenders.  If any Lender requests compensation under Section 2.13,
or if the Borrower is required to pay any additional amount to any Lender or
any Governmental Authority for the account of any Lender pursuant to Section 2.15,
or if any Lender defaults in its obligation to fund Loans hereunder, or if any
Lender does not agree to any request by the Borrower for a consent, approval,
amendment or waiver hereunder that requires the consent or approval of all of
the Lenders, then the Borrower may, at its sole expense and effort, upon notice
to such Lender and the Administrative Agent, require such Lender to assign and
delegate, without recourse (in accordance with and subject to the restrictions
contained in Section 10.04), all its interests, rights and obligations
under this Agreement to an assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment); provided
that (i) the Borrower shall have received the prior written consent of the
Administrative Agent (and, if a Revolving Commitment is being assigned, the
Issuing Lender and the Swing Line Lender), which consent shall not be
unreasonably withheld, (ii) such Lender shall have received payment of an
amount equal to the outstanding principal of its Loans and participations in LC
Disbursements and Swing Line Loans, accrued interest thereon, accrued fees and
all other amounts payable to it hereunder, from the assignee (to the extent of
such outstanding principal and accrued interest and fees) or the Borrower (in
the case of all other amounts) and (iii) in the case of any such
assignment resulting from a claim for compensation under Section 2.13 or
payments required to be made pursuant to Section 2.15, such assignment
will result in a reduction in such compensation or payments.  A Lender shall not be required to make any
such assignment and delegation if, prior thereto, as a result of a waiver by
such Lender or otherwise, the circumstances entitling the Borrower to require
such assignment and delegation cease to apply.

 

55

 

ARTICLE III

GUARANTEE

 

SECTION 3.01.  The Guarantee.  The Guarantors hereby jointly and severally
guarantee to each Lender and the Administrative Agent and their respective
successors and assigns the prompt payment in full when due (whether at stated
maturity, by acceleration or otherwise) of the principal of and interest on the
Loans made by the Lenders to the Borrower and all other amounts from time to
time owing to the Lenders or the Administrative Agent by the Borrower under
this Agreement and by any Obligor (other than the respective Guarantor) under
any of the other Loan Documents, and all obligations of the Borrower or any of
its Subsidiaries to any of the Lenders and their respective Affiliates in
respect of any Hedging Agreement, in each case strictly in accordance with the
terms thereof and including all interest and expenses accrued or incurred
subsequent to the commencement of any bankruptcy or insolvency proceeding with
respect to the Borrower, whether or not such interest or expenses are allowed
as a claim in such proceeding (such obligations being herein collectively
called the “Guaranteed Obligations”). 
The Guarantors hereby further jointly and severally agree that if the
Borrower shall fail to pay in full when due (whether at stated maturity, by
acceleration or otherwise) any of the Guaranteed Obligations, the Guarantors
will promptly pay the same, without any demand or notice whatsoever, and that
in the case of any extension of time of payment or renewal of any of the
Guaranteed Obligations, the same will be promptly paid in full when due
(whether at extended maturity, by acceleration or otherwise) in accordance with
the terms of such extension or renewal.

 

SECTION 3.02.  Obligations Unconditional.  The obligations of the Guarantors under Section 3.01
are absolute and unconditional, and joint and several, irrespective of the
value, genuineness, validity, regularity or enforceability of the obligations
of the Borrower under this Agreement or any other agreement or instrument
referred to herein or therein, or any substitution, release or exchange of any
other guarantee of or security for any of the Guaranteed Obligations, and, to
the fullest extent permitted by applicable law, irrespective of any other
circumstance whatsoever that might otherwise constitute a legal or equitable
discharge or defense of a surety or guarantor, it being the intent of this Section that
the obligations of the Subsidiary Guarantors hereunder shall be absolute and
unconditional, joint and several, under any and all circumstances.  Without limiting the generality of the
foregoing, it is agreed that the occurrence of any one or more of the following
shall not alter or impair the liability of any of the Guarantors hereunder,
which shall remain absolute and unconditional as described above:

 

(i)  at
any time or from time to time, without notice to the Guarantors, the time for
any performance of or compliance with any of the Guaranteed Obligations shall
be extended, or such performance or compliance shall be waived;

 

(ii)  any
of the acts mentioned in any of the provisions of this Agreement or any other
agreement or instrument referred to herein shall be done or omitted;

 

56

 

(iii) 
the maturity of any of the Guaranteed Obligations shall be accelerated, or any
of the Guaranteed Obligations shall be modified, supplemented or amended in any
respect, or any right under this Agreement or any other agreement or instrument
referred to herein shall be waived or any other guarantee of any of the
Guaranteed Obligations or any security therefor shall be released or exchanged
in whole or in part or otherwise dealt with; or

 

(iv)  any
lien or security interest granted to, or in favor of, the Administrative Agent
or any Lender or Lenders as security for any of the Guaranteed Obligations
shall fail to be perfected.

 

The Guarantors hereby expressly waive diligence, presentment, demand of
payment, protest and all notices whatsoever, and any requirement that the
Administrative Agent or any Lender exhaust any right, power or remedy or
proceed against the Borrower under this Agreement or any other agreement or
instrument referred to herein, or against any other Person under any other
guarantee of, or security for, any of the Guaranteed Obligations.

 

SECTION 3.03.  Reinstatement.  The obligations of the Guarantors under this Article shall
be automatically reinstated if and to the extent that for any reason any
payment by or on behalf of the Borrower in respect of the Guaranteed
Obligations is rescinded or must be otherwise restored by any holder of any of
the Guaranteed Obligations, whether as a result of any proceedings in
bankruptcy or reorganization or otherwise, and the Guarantors jointly and
severally agree that they will indemnify the Administrative Agent and each
Lender on demand for all reasonable costs and expenses (including fees of
counsel) incurred by the Administrative Agent or such Lender in connection with
such rescission or restoration, including any such costs and expenses incurred
in defending against any claim alleging that such payment constituted a
preference, fraudulent transfer or similar payment under any bankruptcy,
insolvency or similar law.

 

SECTION 3.04.  Subrogation.  The Guarantors hereby jointly and severally
agree that until the payment and satisfaction in full of all Guaranteed
Obligations and the expiration and termination of the Commitments of the
Lenders under this Agreement they shall not exercise any right or remedy
arising by reason of any performance by them of their guarantee in Section 3.01,
whether by subrogation or otherwise, against the Borrower or any other
guarantor of any of the Guaranteed Obligations or any security for any of the
Guaranteed Obligations.

 

SECTION 3.05.  Remedies.  The Guarantors jointly and severally agree
that, as between the Guarantors and the Lenders, the obligations of the
Borrower under this Agreement may be declared to be forthwith due and payable
as provided in Article VIII (and shall be deemed to have become
automatically due and payable in the circumstances provided in Article VIII)
for purposes of Section 3.01 notwithstanding any stay, injunction or other
prohibition preventing such declaration (or such obligations from becoming
automatically due and payable) as against the Borrower and that, in the event
of such declaration (or such obligations being deemed to have become
automatically due and payable), such obligations (whether or not due and
payable by the Borrower) shall forthwith become due and payable by the
Guarantors for purposes of Section 3.01.

 

57

 

SECTION 3.06.  Instrument for the Payment of Money.  Each Guarantor hereby acknowledges that the
guarantee in this Article constitutes an instrument for the payment of
money, and consents and agrees that any Lender or the Administrative Agent, at
its sole option, in the event of a dispute by such Guarantor in the payment of
any moneys due hereunder, shall have the right to bring motion-action under New
York CPLR Section 3213.

 

SECTION 3.07.  Continuing Guarantee.  The guarantee in this Article is a
continuing guarantee, and shall apply to all Guaranteed Obligations whenever
arising.

 

SECTION 3.08.  Rights of Contribution.  The Subsidiary Guarantors hereby agree, as
between themselves, that if any Subsidiary Guarantor shall become an Excess
Funding Guarantor (as defined below) by reason of the payment by such
Subsidiary Guarantor of any Guaranteed Obligations, each other Subsidiary
Guarantor shall, on demand of such Excess Funding Guarantor (but subject to the
next sentence), pay to such Excess Funding Guarantor an amount equal to such
Subsidiary Guarantor’s Pro Rata Share (as defined below and determined, for
this purpose, without reference to the properties, debts and liabilities of
such Excess Funding Guarantor) of the Excess Payment (as defined below) in
respect of such Guaranteed Obligations. 
The payment obligation of a Subsidiary Guarantor to any Excess Funding
Guarantor under this Section shall be subordinate and subject in right of
payment to the prior payment in full of the obligations of such Subsidiary
Guarantor under the other provisions of this Article and such Excess
Funding Guarantor shall not exercise any right or remedy with respect to such
excess until payment and satisfaction in full of all of such obligations.

 

For purposes of this Section, (i) ”Excess
Funding Guarantor” means, in respect of any Guaranteed Obligations, a
Subsidiary Guarantor that has paid an amount in excess of its Pro Rata Share of
such Guaranteed Obligations, (ii) ”Excess Payment” means, in
respect of any Guaranteed Obligations, the amount paid by an Excess Funding
Guarantor in excess of its Pro Rata Share of such Guaranteed Obligations and (iii) ”Pro
Rata Share” means, for any Subsidiary Guarantor, the ratio (expressed as a
percentage) of (x) the amount by which the aggregate present fair saleable
value of all properties of such Subsidiary Guarantor (excluding any shares of
stock of any other Subsidiary Guarantor) exceeds the amount of all the debts
and liabilities of such Subsidiary Guarantor (including contingent,
subordinated, unmatured and unliquidated liabilities, but excluding the
obligations of such Subsidiary Guarantor hereunder and any obligations of any
other Subsidiary Guarantor that have been Guaranteed by such Subsidiary
Guarantor) to (y) the amount by which the aggregate fair saleable value of
all properties of all of the Subsidiary Guarantors exceeds the amount of all
the debts and liabilities (including contingent, subordinated, unmatured and
unliquidated liabilities, but excluding the obligations of the Borrower and the
Subsidiary Guarantors hereunder and under the other Loan Documents) of all of
the Subsidiary Guarantors, determined (A) with respect to any Subsidiary
Guarantor that is a party hereto on the Second Restatement Effective Date, as
of the Second Restatement Effective Date, and (B) with respect to any
other Subsidiary Guarantor, as of the date such Subsidiary Guarantor becomes a
Subsidiary Guarantor hereunder.

 

SECTION 3.09.  General Limitation on Guarantee
Obligations.  In any action or
proceeding involving any state corporate law, or any state or Federal
bankruptcy, insolvency,

 

58

 

reorganization or other law
affecting the rights of creditors generally, if the obligations of any
Subsidiary Guarantor under Section 3.01 would otherwise, taking into
account the provisions of Section 3.08, be held or determined to be void,
invalid or unenforceable, or subordinated to the claims of any other creditors,
on account of the amount of its liability under Section 3.01, then,
notwithstanding any other provision hereof to the contrary, the amount of such
liability shall, without any further action by such Subsidiary Guarantor, any
Lender, the Administrative Agent or any other Person, be automatically limited
and reduced to the highest amount that is valid and enforceable and not
subordinated to the claims of other creditors as determined in such action or
proceeding.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

 

Each of the Borrower (as to itself and its
Subsidiaries only) and the Holding Company represents and warrants to the
Lenders that:

 

SECTION 4.01.  Organization; Powers.  Each of the Holding Company, the Borrower and
the Borrower’s Subsidiaries is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization, has all
requisite power and authority to carry on its business as now conducted and,
except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, is qualified to
do business in, and is in good standing in, every jurisdiction where such
qualification is required.

 

SECTION 4.02.  Authorization;
Enforceability.  The Transactions are
within each Obligor’s corporate powers and have been duly authorized by all
necessary corporate and, if required, by all necessary shareholder or member
action.  This Agreement has been duly
executed and delivered by each Obligor and constitutes, and each of the other Loan Documents to which it is
a party when executed and delivered by such Obligor will constitute, a legal,
valid and binding obligation of such Obligor, enforceable against each Obligor
in accordance with its terms, except as such enforceability may be limited by (a) bankruptcy,
insolvency, reorganization, moratorium or similar laws of general applicability
affecting the enforcement of creditors’ rights and (b) the application of
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

 

SECTION 4.03.  Governmental Approvals; No Conflicts.  The Transactions (a) do not require any
consent or approval of, registration or filing with, or any other action by,
any Governmental Authority, except for (i) such as have been obtained or
made and are in full force and effect, (ii) filings in respect of the
Liens created pursuant to the Security Agreement, (iii) the filing with
the FCC of certain of the Loan Documents as required by Section 73.3613 of
the FCC’s rules and (iv) the approval by the FCC of the acquisition
of any Broadcast License, (b) will not violate any applicable law or
regulation or the charter, by-laws or other organizational documents of the
Holding Company, the Borrower or any of the Borrower’s

 

59

 

Subsidiaries or any order of
any Governmental Authority, (c) will not violate or result in a default
under any indenture, agreement or other instrument binding upon the Holding
Company, the Borrower or any of the Borrower’s Subsidiaries or assets, or give
rise to a right thereunder to require any payment to be made by any such
Person, and (d) except for the Liens created pursuant to the Security
Agreement, will not result in the creation or imposition of any Lien on any
asset of the Holding Company, the Borrower or any of the Borrower’s
Subsidiaries.

 

SECTION 4.04.  Financial Condition; Material Adverse
Change.

 

(a)  Financial Condition.  The Borrower has heretofore furnished to the
Lenders its consolidated balance sheets and statements of income, stockholders’
equity and cash flows as of and for the fiscal years ended December 31,
2003 and December 31, 2004, reported on by Ernst & Young LLP,
independent public accountants.  Such
financial statements present fairly, in all material respects, the financial
position and results of operations and cash flows of the Borrower and its
Subsidiaries as of such respective dates and for such respective years or
fiscal quarter, as the case may be, on a consolidated basis in accordance with
GAAP.

 

The Holding Company has heretofore furnished
to the Lenders its consolidated balance sheets and statements of income,
stockholders’ equity and cash flows as of and for the fiscal years ended December 31,
2003 and December 31, 2004, reported on by Ernst & Young LLP,
independent public accountants.  Such
financial statements present fairly, in all material respects, the financial
position and results of operations and cash flows of the Holding Company and
its Subsidiaries as of such respective dates and for such respective years or
fiscal quarter, as the case may be, on a consolidated basis in accordance with
GAAP.

 

(b)  No Material Adverse Change.  Since December 31, 2004, there has been
no material adverse change in the business, assets, operations, prospects or
condition, financial or otherwise, of the Borrower and its Subsidiaries, taken
as a whole.

 

SECTION 4.05. 
Properties.

 

(a)  Property Generally.  Each of the Borrower and its Subsidiaries has
good title to, or valid leasehold interests in, all its real and personal
property material to its business, subject only to Liens permitted by Section 7.02
and except for minor defects in title that do not interfere with its ability to
conduct its business as currently conducted or to utilize such properties for
their intended purposes.

 

(b)  Intellectual Property.  Each of the Borrower and its Subsidiaries
owns, or is licensed to use, all trademarks, tradenames, copyrights, patents
and other intellectual property material to its business, and the use thereof
by the Borrower and its Subsidiaries does not infringe upon the rights of any
other Person, except for any such infringements that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

 

SECTION 4.06.  Litigation and Environmental Matters.

 

(a)  Actions, Suits and Proceedings.  There are no actions, suits or proceedings by
or before any arbitrator or Governmental Authority now pending against or, to
the knowledge of

 

60

 

the Borrower, threatened
against or affecting the Holding Company, the Borrower or any of the Borrower’s
Subsidiaries (including the Unrestricted Subsidiaries) (i) as to which there
is a reasonable possibility of an adverse determination and that, if adversely
determined, could reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect (other than any such action, suit or
proceeding disclosed in Schedule 4.06(a)) or (ii) that involve this
Agreement or the Transactions.

 

(b)  Environmental Matters.  Except for the matters disclosed in Schedule 4.06(b) and except
with respect to any other matters that, individually or in the aggregate, could
not reasonably be expected to result in a Material Adverse Effect, neither the
Borrower nor any of its Subsidiaries (including Unrestricted Subsidiaries) (i) has
failed to comply with any Environmental Law or to obtain, maintain or comply
with any permit, license or other approval required under any Environmental
Law, (ii) has become subject to any Environmental Liability, (iii) has
received notice of any claim with respect to any Environmental Liability or (iv) knows
of any basis for any Environmental Liability.

 

(c)  Disclosed Matters.  Since the date hereof, there has been no
change in the status of the matters disclosed in Schedules 4.06(a) and 4.06(b) that,
individually or in the aggregate, has resulted in, or materially increased the
likelihood of, a Material Adverse Effect.

 

SECTION 4.07.  Compliance with Laws and Agreements.  Each of the Holding Company, the Borrower and
the Borrower’s Subsidiaries is in compliance with all laws, regulations and
orders of any Governmental Authority applicable to it or its property and all
indentures, agreements and other instruments binding upon it or its property,
except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.  No Default has occurred and is continuing.

 

SECTION 4.08.  Investment and Holding Company Status.  None of the Holding Company, the Borrower or
any of the Borrower’s Subsidiaries is (a) an “investment company” as
defined in, or subject to regulation under, the Investment Company Act of 1940
or (b) a “holding company” as defined in, or subject to regulation under,
the Public Utility Holding Company Act of 1935.

 

SECTION 4.09.  Taxes.  Each of the Holding Company, the Borrower and
the Borrower’s Subsidiaries has timely filed or caused to be filed all United
States Federal and all other material Tax returns and reports required to have
been filed and has paid or caused to be paid all Taxes required to have been
paid by it, except (a) Taxes that are being contested in good faith by
appropriate proceedings and for which such Person has set aside on its books
adequate reserves or (b) to the extent that the failure to do so could not
reasonably be expected to result in a Material Adverse Effect.

 

SECTION 4.10.  ERISA. 
The Holding Company, the Borrower and the ERISA Affiliates have
fulfilled their respective obligations under the minimum funding standards of
ERISA and the Code with respect to each Plan and are in compliance in all
material respects with the presently applicable provisions of ERISA and the
Code, and have not incurred

 

61

 

any liability to the PBGC or
any Plan or Multiemployer Plan (other than to make contributions in the
ordinary course of business).

 

SECTION 4.11.  Disclosure.  The Obligors have disclosed to the Lenders
all agreements, instruments and corporate or other restrictions to which it or
any of its Subsidiaries is subject, and all other matters known to it, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect.  None of the
reports, financial statements, certificates or other information furnished by
or on behalf of the Obligors to the Lender in connection with the negotiation
of this Agreement and the other Loan Documents (including the information set
forth in the Confidential Information Memorandum) or delivered hereunder or
thereunder (as modified or supplemented by other information so furnished)
contains any material misstatement of fact or omits to state any material fact
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided that, with respect
to projected financial information, the Borrower and the Holding Company
represent only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time.

 

SECTION 4.12.  Use of Credit.  Neither the Borrower nor any of its
Subsidiaries is engaged principally, or as one of its important activities, in
the business of extending credit for the purpose, whether immediate, incidental
or ultimate, of buying or carrying Margin Stock, and no part of the proceeds of
any extension of credit hereunder will be used to buy or carry any Margin
Stock.

 

SECTION 4.13.  Indebtedness and Liens.

 

(a)  Material Indebtedness.  Schedule 4.13(a) is a complete and
correct list of each credit agreement, loan agreement, indenture, purchase
agreement, guarantee, letter of credit or other arrangement providing for or
otherwise relating to any Indebtedness or any extension of credit (or
commitment for any extension of credit) to, or guarantee by, the Borrower or
any of its Subsidiaries outstanding on the date hereof the aggregate principal
or face amount of which equals or exceeds (or may equal or exceed) $5,000,000,
and the aggregate principal or face amount outstanding or that may become
outstanding under each such arrangement is correctly described in Schedule 4.13(a).

 

(b)  Liens.  Schedule 4.13(b) is a complete and
correct list of each Lien securing Indebtedness of any Person outstanding on
the date hereof the aggregate principal or face amount of which equals or
exceeds (or may equal or exceed) $1,000,000 and covering any property of the
Borrower or any of its Subsidiaries, and the aggregate Indebtedness secured (or
that may be secured) by each such Lien and the property covered by each such
Lien is correctly described in Schedule 4.13(b).

 

(c)  Film Cash Payments.  Schedule 4.13(c) is a complete and
correct list setting forth the aggregate projected Film Cash Payments to be
made in each fiscal year during the period commencing on January 1, 2005
through and including December 31, 2012.

 

62

 

(d)  Interest Rate Protection
Agreements.  Schedule 4.13(d) is
a complete and correct list, as of the date hereof, of each Interest Rate
Protection Agreement in respect of a notional principal amount which equals or
exceeds (or may equal or exceed) $1,000,000.

 

SECTION 4.14.  Capitalization.  Set forth in Schedule 4.14 is a complete
and correct list of all of the authorized capital stock of the Holding Company
specifying the number of outstanding shares thereof on the date hereof and the
number of such shares owned by the Smith Brothers.  All of the authorized and outstanding and
issued shares of capital stock of the Holding Company and the Borrower are
fully paid and nonassessable.  Except as
set forth in Schedule 4.14, there are (y) no outstanding Equity
Rights with respect to the Holding Company or the Borrower and (z) no
outstanding obligations of the Holding Company or any of its Subsidiaries to
repurchase, redeem, or otherwise acquire any shares of capital stock of the
Holding Company or the Borrower nor are there any outstanding obligations of
the Holding Company or any of its Subsidiaries to make payments to any Person,
such as “phantom stock” payments, where the amount thereof is calculated with
reference to the fair market value or equity value of the Holding Company or
any of its Subsidiaries.

 

SECTION 4.15.  Subsidiaries and Investments.

 

(a)  Subsidiaries.  Set forth in Schedule 4.15(a) is a
complete and correct list of all of the Subsidiaries of the Borrower as of the
date hereof, together with, for each such Subsidiary, (i) the jurisdiction
of organization of such Subsidiary, (ii) each Person holding ownership
interests in such Subsidiary and (iii) the nature of the ownership
interests held by each such Person and the percentage of ownership of such
Subsidiary represented by such ownership interests.  Each of the Borrower and its Subsidiaries
owns, free and clear of Liens (other than Liens created pursuant to the
Security Agreement), and has the unencumbered right to vote, all outstanding
ownership interests in each Person shown to be held by it in Schedule 4.15(a),
all of the issued and outstanding capital stock of each such Person organized
as a corporation is validly issued, fully paid and nonassessable, and there are
no outstanding Equity Rights with respect to such Person.

 

(b)  Investments.  Set forth in Schedule 4.15(b) is a
complete and correct list of all Investments (other than Investments disclosed
in Schedule 4.15(a) and other than Investments of the types
referred to in clauses (b), (c), (e) and (f) of Section 7.07)
in an amount exceeding $1,000,000 held by the Borrower or any of its
Subsidiaries in any Person on the date hereof and, for each such Investment,
(x) the identity of the Person or Persons holding such Investment and
(y) the nature of such Investment. 
Except as disclosed in Schedule 4.15(b), each of the Borrower and
its Subsidiaries owns, free and clear of all Liens (other than Liens created
pursuant to the Security Agreement), all such Investments.

 

(c)  Subsidiaries Not Subject to
Certain Restrictions.  None of the Subsidiaries
of the Borrower is, on the date hereof, subject to any indenture, agreement,
instrument or other arrangement of the type prohibited under Section 7.10.

 

63

 

SECTION 4.16. 
Broadcast Licenses.

 

(a)  Schedule 4.16 accurately and
completely lists, as of the date hereof, for each Owned Station, all Broadcast
Licenses granted or assigned to the Borrower or any of its Subsidiaries, or
under which the Borrower and its Subsidiaries have the right to operate such
Owned Station.  The Broadcast Licenses
listed in Schedule 4.16 with respect to any Owned Station include all
material authorizations, licenses and permits issued by the FCC that are
required or necessary for the operation of such Owned Station, and the conduct
of the business of the Borrower and its Subsidiaries with respect to such Owned
Station, as now conducted or proposed to be conducted.  The Broadcast Licenses listed in Schedule 4.16
are issued in the name of the respective License Subsidiary for the Owned
Station being operated under authority of such Broadcast Licenses and are on
the date hereof validly issued and in full force and effect, and the Borrower
and its Subsidiaries have fulfilled and performed in all material respects all
of their obligations with respect thereto and have full power and authority to
operate thereunder.

 

(b)  Schedule 4.16 accurately and
completely lists, as of the date hereof, for each Contract Station, all
Broadcast Licenses granted or assigned to the Material Third-Party Licensee for
such Contract Station, or under which the Material Third-Party Licensee for
such Contract Station has the right to operate such Contract Station.  The Broadcast Licenses listed in Schedule 4.16
with respect to any Contract Station include all material authorizations,
licenses and permits issued by the FCC that are required or necessary for the
operation of such Contract Station, and the conduct of the business of the
Material Third-Party Licensee for such Contract Station with respect to such
Contract Station, as now conducted or proposed to be conducted.  The Broadcast Licenses listed in Schedule 4.16
are issued in the name of the Material Third-Party Licensee for the Contract
Station being operated under authority of such Broadcast Licenses and are on
the date hereof validly issued and in full force and effect, and, to our best
knowledge, the Material Third-Party Licensee for such Contract Station has
fulfilled and performed in all material respects all of its obligations with
respect thereto and has full power and authority to operate thereunder.

 

SECTION 4.17.  Ancillary
Documents.  The Borrower has
heretofore delivered to the Administrative Agent a true and complete copy of
the Ancillary Documents, in each case as in effect on the date hereof, and each
of the same is in full force and effect and no default of any Obligor party
thereto of any of the provisions thereof is in existence on the date hereof.

 

SECTION 4.18.
 Program
Services Agreements.  Schedule 4.18
is a complete and correct list, as of the date hereof, of each agreement
pursuant to which the Borrower or any of its Subsidiaries has the right to
program and sell advertising on a substantial portion of the inventory of
broadcast time of any Station.

 

SECTION 4.19.  Options.  Schedule 4.19 is a complete and correct
list, as of the date hereof, of each option agreement pursuant to which the
Borrower or any of its Subsidiaries has the right to acquire licenses, permits,
authorizations or certificates to construct, own, operate or promote any
television or radio broadcasting station.

 

64

 

SECTION 4.20.  Asset Use and Operating Agreements.  Schedule 4.20 is a complete and correct
list, as of the date hereof, with respect to each Owned Station, of the
agreement between the Subsidiary of the Borrower that operates such Owned
Station and a License Subsidiary with respect to such Owned Station.

 

SECTION 4.21.  Outsourcing
Agreements.  Schedule 4.21 is a
complete and correct list, as of the date hereof, of each Outsourcing Agreement
to which the Borrower or any of its Subsidiaries is a party.

 

SECTION 4.22.  Solvency.  As of the date hereof (and after giving
effect to the extensions of credit hereunder and to the other transactions
contemplated hereby), (i) the aggregate value of all properties of the
Borrower and its Subsidiaries at their present fair saleable value (i.e.,
the amount that may be realized within a reasonable time, considered to be six
to eighteen months, either through collection or sale at the regular market
value, conceiving the latter as the amount that could be obtained for the
properties in question within such period by a capable and diligent businessman
from an interested buyer who is willing to purchase under ordinary selling
conditions), exceeds the amount of all the debts and liabilities (including
contingent, subordinated, unmatured and unliquidated liabilities) of the
Borrower and its Subsidiaries, (ii) the Borrower and its Subsidiaries will
not, on a consolidated basis, have unreasonably small capital with which to
conduct their business operations as heretofore conducted and (iii) the
Borrower and its Subsidiaries will have, on a consolidated basis, sufficient
cash flow to enable them to pay their debts as they mature.

 

ARTICLE V

CONDITIONS

 

SECTION 5.01.  Second Restatement Effective Date.  The amendment and restatement of the Existing
Credit Agreement provided for hereby and the obligations of the Lenders to make
Loans and of the Issuing Lender to issue Letters of Credit hereunder shall not
become effective until the date on which the Administrative Agent shall have
received each of the following documents, each of which shall be satisfactory
to the Administrative Agent (and to the extent specified below, to each Lender)
in form and substance (or such condition shall have been waived in accordance
with Section 10.02):

 

(a)  Second
Amended and Restated Credit Agreement. 
(i) Counterparts of this Agreement signed on behalf of each
Obligor, the Issuing Lender, the Swing Line Lender, the Administrative Agent
and the Lenders (but in any event the requisite lenders under the Existing
Credit Agreement (or, written evidence satisfactory to the Administrative
Agent, which may include telecopy transmission of, as applicable, a signed
signature page of this Agreement) and (ii) with respect to a
Revolving Lender, if any, under (and as defined in) the Existing Credit
Agreement that does not have a Revolving Commitment hereunder on the Second
Restatement Effective Date, a written confirmation from such

 

65

 

Revolving Lender that its commitment under
the Existing Credit Agreement shall terminate effective as of the Second
Restatement Effective Date.

 

(b)  Opinions
of Counsel to the Obligors. 
Favorable written opinions (addressed to the Administrative Agent and
the Lenders and dated the Second Restatement Effective Date) of (i) Thomas &
Libowitz, P.A., counsel for the Obligors, substantially in the form of Exhibit F-1
and (ii) Pillsbury Winthrop Shaw Pittman LLP, special FCC counsel for the
Obligors, substantially in the form of Exhibit F-2 (and each Obligor
hereby instructs such counsel to deliver such opinions to the Lenders and the
Administrative Agent).

 

(c)  Opinion
of Special New York Counsel to JPMCB. 
An opinion, dated the Second Restatement Effective Date, of Milbank,
Tweed, Hadley & McCloy LLP, special New York counsel to JPMCB,
substantially in the form of Exhibit G (and JPMCB hereby instructs such
counsel to deliver such opinion to the Lenders).

 

(d)  Corporate
Documents.  Such documents and
certificates as the Administrative Agent or its counsel may reasonably request
relating to the organization, existence and good standing of each Obligor, the
authorization of the Transactions and any other legal matters relating to the
Obligors, the Loan Documents or the Transactions, all in form and substance
satisfactory to the Administrative Agent and its counsel.

 

(e)  Officer’s
Certificates.  (i) A
certificate, dated the Second Restatement Effective Date and signed by the
President, a Vice President or a Financial Officer of each of the Borrower and
the Holding Company, confirming compliance with the conditions set forth in the
lettered clauses of the first sentence of Section 5.02 and (ii) a
certificate, dated the Second Restatement Effective Date and signed by a
Financial Officer of the Borrower, demonstrating in reasonable detail
compliance with the covenants set forth in Section 7.11 as of the Second
Restatement Effective Date after giving effect to the transactions contemplated
to occur on or prior thereto.

 

(f)  Security
Agreement.  The Security Agreement,
duly executed and delivered by each of the parties thereto, and the
certificates identified under the name of such Obligor in Annex 1 thereto,
in each case accompanied by undated stock or other similar powers executed in
blank.  In addition, each Obligor party
to the Security Agreement shall have taken such other action (including
delivering to the Administrative Agent, for filing, appropriately completed and
duly executed copies of Uniform Commercial Code financing statements) as the
Administrative Agent shall have requested in order to perfect the security
interests created pursuant to the Security Agreement.

 

(g)  Program
Services Agreements; Outsourcing Agreements.  A certificate of a Financial Officer of the
Borrower certifying that (i) attached thereto are true and complete copies
(including all modifications and supplements) of each Program Services
Agreement and Outsourcing Agreement to which the Borrower or any of its
Subsidiaries is a party on the Second Restatement Effective Date as listed on Schedule 4.18
and 4.21, respectively (or, alternatively, the copies thereof delivered to the
Administrative Agent pursuant to the Existing Credit Agreement remain true and
complete copies of each such

 

66

 

agreement), (ii) each
such Program Services Agreement and Outsourcing Agreement is in full force and
effect and (iii) no default of the Borrower or any Subsidiary party
thereto of any of the provisions thereof is in existence on the Second
Restatement Effective Date.

 

(h)  Network
Affiliations.  A certificate of a
Financial Officer of the Borrower certifying that (i) attached thereto is
a list of all network affiliation agreements to which the Borrower or any of
its Subsidiaries is a party on the Second Restatement Effective Date (or,
alternatively, the copies thereof delivered to the Administrative Agent
pursuant to the Existing Credit Agreement remain true and complete copies of
each such agreement), (ii) each such network affiliation agreement is in
full force and effect and (iii) no default of any the Borrower or any
Subsidiary party thereto of any of the provisions thereof is in existence on
the Second Restatement Effective Date.

 

(i)  Asset
Use and Operating Agreements.  A
certificate of a Financial Officer of the Borrower certifying that (i) the
Borrower or Subsidiary operating each Owned Station and the respective License
Subsidiary have executed and delivered an Asset Use and Operating Agreement
with respect to such Owned Station, (ii) attached thereto are true and
complete copies (including all modifications and supplements) of each Asset Use
and Operating Agreement to which the Borrower or any of its Subsidiaries is a
party on the Second Restatement Effective Date as listed on Schedule 4.20
(or, alternatively, the copies thereof delivered to the Administrative Agent
pursuant to the Existing Credit Agreement remain true and complete copies of
each such agreement), (iii) each such Asset Use and Operating Agreement is
in full force and effect and (iv) no default of the Borrower or any
Subsidiary party thereto of any of the provisions thereof is in existence on
the Second Restatement Effective Date.

 

(j)  Subordinated Debt Documents.  A certificate of a Financial Officer of the
Borrower certifying that (i) attached thereto are true and complete copies
(including all modifications and supplements) of each Subordinated Debt
Document to which the Borrower or any of its Subsidiaries is a party on the
Second Restatement Effective Date, (ii) each such Subordinated Debt
Document is in full force and effect and (iii) no default of the Borrower
or any Subsidiary party thereto of any of the provisions thereof is in
existence on the Second Restatement Effective Date.

 

(k)  Material Acquisition Documents.  A certificate of a Financial Officer of the
Borrower certifying that (i) attached thereto are true and complete copies
(including all modifications and supplements) of each Material Acquisition
Document to which the Borrower or any of its Subsidiaries is a party on the
Second Restatement Effective Date (or, alternatively, the copies thereof
delivered to the Administrative Agent pursuant to the Existing Credit Agreement
remain true and complete copies of each such agreement), (ii) each such
Material Acquisition Document is in full force and effect and (iii) no
default of the Borrower or any Subsidiary party thereto of any of the
provisions thereof is in existence on the Second Restatement Effective Date.

 

(l)  Insurance.  A certificate of a Financial Officer of the
Borrower setting forth the insurance obtained by it in accordance with the
requirements of Section 6.05 and

 

67

 

stating that such insurance is in full force
and effect and that all premiums then due and payable thereon have been paid.

 

(m)  Amounts Owing under Existing Credit
Agreement.  Evidence that the
Borrower shall have paid in full all principal of and interest accrued on the
outstanding loans under the Existing Credit Agreement and shall have paid in
full all fees, expenses, costs and other amounts (including any “break funding”
costs) accrued and/or owing under the Existing Credit Agreement as of the
Second Restatement Effective Date.

 

(n)  Pro Forma Balance Sheet.  A pro forma consolidated balance sheet of the
Borrower and its Subsidiaries as of December 31, 2004 adjusted to give
effect to the Transactions.

 

(o)  Other Documents.  Such other documents as the Administrative
Agent or any Lender or special New York counsel to JPMCB may reasonably
request.

 

The obligation of any Lender to make or
maintain the Loans and other initial extensions of credit hereunder on the
Second Restatement Effective Date is also subject to the payment by the
Borrower of such fees as the Borrower shall have agreed to pay to any Lender or
the Administrative Agent in connection herewith, including the reasonable fees
and expenses of Milbank, Tweed, Hadley & McCloy LLP, special New York
counsel to JPMCB, in connection with the negotiation, preparation, execution
and delivery of this Agreement and the other Loan Documents and the extensions
of credit hereunder (to the extent that statements for such fees and expenses
have been delivered to the Borrower).

 

The Administrative Agent shall notify the
Borrower and the Lenders of the Second Restatement Effective Date, and such
notice shall be conclusive and binding. 
Notwithstanding the foregoing, the amendment and restatement of the
Existing Credit Agreement provided for hereby and the obligations of the
Lenders to make Loans and of the Issuing Lender to issue Letters of Credit
hereunder shall not become effective unless each of the foregoing conditions is
satisfied (or waived pursuant to Section 10.02) on or prior to 3:00 p.m.,
New York City time, on May 20, 2005.

 

SECTION 5.02.  Each
Credit Event.  The obligation of each
Lender to make or maintain a Loan (including an Incremental Loan) on the
occasion of any Borrowing, and of the Issuing Lender to issue, amend, renew or
extend any Letter of Credit, is subject to the satisfaction of the following
conditions:

 

(a)  the
representations and warranties of the Borrower and the Holding Company set
forth in this Agreement, and of each Obligor in each of the other Loan
Documents to which it is a party, shall be true and correct in all material
respects on and as of the date of such Borrowing or the date of issuance,
amendment, renewal or extension of such Letter of Credit, as applicable (or, if
any such representation and warranty is expressly stated to have been made as
of a specific date, as of such specific date);

 

68

 

(b)  at
the time of and immediately after giving effect to such Borrowing or the
issuance, amendment, renewal or extension of such Letter of Credit, as
applicable, no Default shall have occurred and be continuing; and

 

(c)  the
Borrower shall be in compliance with the indebtedness covenant (if any) under
each of the Note Indentures.

 

Each Borrowing and each issuance, amendment, renewal or extension of a
Letter of Credit shall be deemed to constitute a representation and warranty by
the Borrower on the date thereof as to the matters specified in the preceding
sentence.

 

SECTION 5.03.  Each
Incremental Loan.  The obligation of
each Incremental Lender to make an Incremental Loan is subject to the
satisfaction of the following additional conditions:

 

(a) 
after giving pro forma effect to the making of such Incremental Loan, the Borrower
shall be in compliance with each of the covenants set forth in Section 7.11;
and

 

(b) 
receipt by the respective Incremental Lender and the Administrative Agent of a
certificate, dated the date of the making of such Incremental Loan and signed
by the President, a Vice President or a Financial Officer of the Borrower,
demonstrating in reasonable detail compliance with the foregoing clause (a) of
this Section.

 

ARTICLE VI

AFFIRMATIVE COVENANTS

 

Until the Commitments have expired or been
terminated and the principal of and interest on each Loan and all fees payable
hereunder shall have been paid in full and all Letters of Credit shall have
expired or terminated and all LC Disbursements shall have been reimbursed, each
of the Borrower (as to itself and its Subsidiaries only) and the Holding
Company covenants and agrees with the Lenders that:

 

SECTION 6.01.  Financial
Statements and Other Information. 
The Borrower or the Holding Company, as applicable, will furnish to the
Administrative Agent:

 

(a)  (i) in
the case of the Borrower, within 120 days after the end of each fiscal year of
the Borrower, the audited consolidated balance sheet and related statements of
operations, stockholders’ equity and cash flows of the Borrower and its
Subsidiaries (excluding Unrestricted Subsidiaries) as of the end of and for
such year and (ii) in the case of the Holding Company, within the earlier
of (A) 10 days after the date on which the same shall have been filed with
the SEC and (B) 100 days after the end of each fiscal year of the Holding
Company, the audited consolidated balance sheet and related statements of
operations, stockholders’ equity and cash flows of the Holding Company

 

69

 

and its Subsidiaries as of the end of and for
such year, in each case setting forth in comparative form the figures for the
previous fiscal year, all reported on by Ernst & Young, LLP or other
independent public accountants of recognized national standing (without a “going
concern” or like qualification or exception and without any qualification or
exception as to the scope of such audit) to the effect that such consolidated
financial statements present fairly in all material respects the financial
condition, results of operations and cash flows of the Borrower and its
Subsidiaries (excluding Unrestricted Subsidiaries), or the Holding Company and
its Subsidiaries, as the case may be, on a consolidated basis in accordance
with GAAP consistently applied;

 

(b)  (i) in
the case of the Borrower, within 60 days after the end of each of the first
three fiscal quarters of each fiscal year of the Borrower, the consolidated
balance sheet and related statements of operations, stockholders’ equity and
cash flows of the Borrower and its Subsidiaries (excluding Unrestricted
Subsidiaries) as of the end of and for such fiscal quarter and the then elapsed
portion of such fiscal year and (ii) in the case of the Holding Company,
within the earlier of (A) 10 days after the date on which the same shall
have been filed with the SEC and (B) 50 days after the end of each of the
first three fiscal quarters of each fiscal year of the Holding Company, the
consolidated balance sheet and related statements of operations, stockholders’
equity and cash flows of the Holding Company and its Subsidiaries as of the end
of and for such fiscal quarter and the then elapsed portion of such fiscal
year, in each case setting forth in comparative form the figures for (or, in
the case of the balance sheet, as of the end of) the corresponding period or
periods of the previous fiscal year, all certified by a Financial Officer of
the Borrower or the Holding Company, as the case may be, as presenting fairly
in all material respects the financial condition, results of operations and
cash flows of the Borrower and its Subsidiaries (excluding Unrestricted
Subsidiaries), or the Holding Company and its Subsidiaries, as the case may be,
on a consolidated basis in accordance with GAAP consistently applied, subject
to normal year-end audit adjustments and the absence of footnotes;

 

(c) 
concurrently with any delivery of financial statements under clause (a) or (b) of
this Section, a certificate of a Financial Officer of the Borrower and (as to
subclauses (i) and (ii) below only) the Holding Company (i) certifying
as to whether a Default has occurred and, if a Default has occurred, specifying
the details thereof and any action taken or proposed to be taken with respect
thereto, (ii) stating whether any change in GAAP or in the application
thereof has occurred since the date of the audited financial statements
referred to in Section 4.04 and, if any such change has occurred,
specifying the effect of such change on the financial statements accompanying
such certificate, and (iii) setting forth reasonably detailed calculations
demonstrating compliance with Sections 7.01(g) through (l),
7.07, 7.08 and 7.11;

 

(d) 
promptly after the same become publicly available, copies of all periodic and
other material reports (including reports on Form 8-K), registration
statements and proxy statements filed by the Holding Company or the Borrower
with the SEC, or any Governmental Authority succeeding to any or all of the
functions of said Commission, or with any national securities exchange, or
distributed by the Holding Company or the

 

70

 

Borrower to its shareholders generally or to
the holders of any class or issue of securities of the Holding Company or the
Borrower generally, as the case may be, and promptly upon the receipt thereof
by the Holding Company or the Borrower, copies of any material notices, reports
or other communications from any holder of any Preferred Stock or any
Indebtedness evidenced or provided by the Senior Subordinated Notes or the
Senior Notes (or, in either case, any agent or trustee therefor);

 

(e) 
promptly upon their becoming available, copies of any and all periodic or
special reports filed by the Holding Company, the Borrower or any of the
Borrower’s Subsidiaries with the FCC or with any other Federal, state or local
governmental authority, if such reports indicate any material adverse change in
the business, operations, affairs or condition of the Borrower or any of its
Subsidiaries or if copies thereof are requested by any Lender or the
Administrative Agent, and copies of any and all material notices and other
material communications from the FCC or from any other Federal, state or local
governmental authority with respect to the Borrower, any of its Subsidiaries or
any Station;

 

(f) 
promptly following delivery thereof to or by the Borrower or any of its
Subsidiaries, copies of all material notices (including notices of default),
financial statements, reports, approvals and other material communications that
are received by the Holding Company, the Borrower or any of the Borrower’s
Subsidiaries from or on behalf of any Material Third-Party Licensee or
Affiliate of any Material Third-Party Licensee or furnished by the Holding
Company, the Borrower or any of the Borrower’s Subsidiaries to any Material
Third-Party Licensee or Affiliate of any Material Third-Party Licensee;

 

(g)  as
soon as available and in any event on or before December 31 of each fiscal
year, a budget for the Borrower and its Subsidiaries for the next following
fiscal year setting forth anticipated income, expense and capital expenditure
items for each quarter during such fiscal year; and

 

(h) 
promptly following any request therefor, such other information regarding the
operations, business affairs and financial condition of the Holding Company,
the Borrower or any of the Borrower’s Subsidiaries, any Unrestricted Subsidiary
(including its financial statements), any Station (including copies of network
affiliation agreements entered into by such Station), any Material Third-Party
Licensee or any Person that owns the capital stock or other ownership interests
of any Material Third-Party Licensee, or compliance with the terms of this
Agreement and the other Loan Documents, as the Administrative Agent or any
Lender may reasonably request.

 

SECTION 6.02.  Notices
of Material Events.  The Borrower
and/or the Holding Company will furnish to the Administrative Agent prompt
written notice of the following:

 

(a)  the
occurrence of any Default or (in the case of the Holding Company only) any
Default relating to the Holding Company;

 

71

 

(b)  the
filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting the Holding Company,
the Borrower or any of the Borrower’s Subsidiaries or any of their respective
assets, franchises or licenses (including the Broadcast Licenses for Owned
Stations) that, if adversely determined, could reasonably be expected to result
in a Material Adverse Effect, or against or affecting any Material Third-Party
Licensee for a Contract Station or any Broadcast License for such Contract
Station that, if adversely determined, could reasonably be expected to result
in a Material Adverse Effect or the loss of any Broadcast License (other than
an Immaterial Broadcast License) for such Contract Station;

 

(c)  the
occurrence of any ERISA Event that, alone or together with any other ERISA
Events that have occurred, could reasonably be expected to result in liability
of the Holding Company, the Borrower and its Subsidiaries (including
Unrestricted Subsidiaries) in an aggregate amount exceeding $25,000,000;

 

(d)  the
assertion of any environmental matter by any Person against, or with respect to
the activities of, the Holding Company, the Borrower or any of the Borrower’s
Subsidiaries and any alleged violation of or non-compliance with any
Environmental Laws or any permits, licenses or authorizations, other than any
environmental matter or alleged violation that could reasonably be expected to
result in liability of the Holding Company, the Borrower and the Borrower’s
Subsidiaries (including Unrestricted Subsidiaries) in an aggregate amount
exceeding $25,000,000; and

 

(e)  any
other development that results in, or could reasonably be expected to result
in, a Material Adverse Effect.

 

Each notice delivered under this Section shall be accompanied by a
statement of a Financial Officer or other executive officer of the Borrower or
the Holding Company, as applicable, setting forth the details of the event or
development requiring such notice and any action taken or proposed to be taken
with respect thereto.

 

SECTION 6.03.  Existence;
Conduct of Business.  Each of the
Borrower and the Holding Company will, and will cause each of the Borrower’s
Subsidiaries to, do or cause to be done all things necessary to preserve, renew
and keep in full force and effect its legal existence and the rights, licenses,
permits, privileges and franchises (including the Broadcast Licenses, but
excluding Immaterial Broadcast Licenses, for Owned Stations); provided
that the foregoing shall not prohibit (a) any merger, consolidation,
liquidation or dissolution permitted under Section 7.03 or (b) any
merger or consolidation involving the Holding Company (but not involving the
Borrower or any of its Subsidiaries).

 

SECTION 6.04.  Payment
of Obligations.  Each of the Borrower
and the Holding Company will, and will cause each of the Borrower’s
Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid,
could result in a Material Adverse Effect before the same shall become
delinquent or in default, except where (a) the validity or amount thereof
is being contested in good faith by appropriate proceedings, (b) the
Holding Company, the Borrower or such Subsidiary has set aside on its books
adequate reserves with respect thereto in

 

72

 

accordance with GAAP and (c) the
failure to make payment pending such contest could not reasonably be expected
to result in a Material Adverse Effect.

 

SECTION 6.05.  Maintenance
of Properties; Insurance.  Each of
the Borrower and the Holding Company will, and will cause each of the Borrower’s
Subsidiaries to, (a) keep and maintain all property material to the
conduct of its business in good working order and condition, ordinary wear and
tear excepted, and (b) maintain, with financially sound and reputable
insurance companies, insurance in such amounts and against such risks as are
customarily maintained by companies engaged in the same or similar businesses
operating in the same or similar locations, provided that the Borrower
will in any event maintain (with respect to itself, each of its Subsidiaries
and each Owned Station), and will use its reasonable best efforts to cause the
Material Third-Party Licensee for each Contract Station (or the Person that
owns the capital stock or other ownership interests of such Material
Third-Party Licensee) to maintain (with respect to itself and such Contract
Station), casualty insurance and insurance against claims and damages with
respect to defamation, libel, slander, privacy or other similar injury to
person or reputation (including misappropriation of personal likeness), in such
amounts as are then customary for Persons engaged in the same or similar
business similarly situated.  The
Borrower shall provide to the Administrative Agent at the same time it
furnishes its annual financial statements under Section 6.01(a) a
certificate of insurance comparable in scope to the certificate furnished under
Section 5.01(l) demonstrating compliance with this Section.

 

SECTION 6.06.  Books
and Records; Inspection Rights.  Each
of the Borrower and the Holding Company will, and will cause each of the
Borrower’s Subsidiaries to, keep proper books of record and account in which
full, true and correct entries are made of all dealings and transactions in
relation to its business and activities. 
Each of the Borrower and the Holding Company will, and will cause each
of the Borrower’s Subsidiaries to, permit any representatives designated by the
Administrative Agent or any Lender, upon reasonable prior notice, to visit and
inspect its properties, to examine and make extracts from its books and
records, and to discuss its affairs, finances and condition with its officers
and independent accountants, all at such reasonable times and as often as
reasonably requested.

 

SECTION 6.07.  Compliance
with Laws and Contractual Obligations. 
Each of the Borrower and the Holding Company will, and will cause each
of the Borrower’s Subsidiaries to, comply with all laws, rules, regulations and
orders of any Governmental Authority applicable to it or its property
(including Environmental Laws) and all of its Contractual Obligations, except
where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

 

SECTION 6.08.  Use of Proceeds and Letters of Credit.  Term Loans and, to the extent necessary,
Revolving Loans made as of the Second Restatement Effective Date will be used
by the Borrower to pay or prepay all amounts under the Existing Credit
Agreement required to paid or prepaid under Section 5.01(m) and to pay all
fees and expenses required to be paid by the Borrower in connection this
Agreement.  From and after the Second
Restatement Effective Date, the proceeds of the Revolving Loans, and the
proceeds of Incremental Loans (if any), will be used for the general corporate
purposes of the Borrower and its Subsidiaries, including working capital
requirements, Capital Expenditures, and acquisitions and Investments to the

 

73

 

extent permitted hereunder (in
each case, in compliance with all applicable legal and regulatory
requirements).  Letters of Credit will be
issued only for general corporate purposes of the Borrower and its Subsidiaries
as specified above.

 

Neither the Administrative Agent nor any
Lender shall have any responsibility as to the use of any of proceeds of any
Loan.  No part of the proceeds of any Loan
will be used, whether directly or indirectly, for any purpose that entails a
violation of any of the Regulations of the Board, including Regulations U and
X.

 

SECTION 6.09.  Certain Obligations Respecting
Subsidiaries and Other Holding Company Subsidiaries.

 

(a)  Subsidiary Guarantors.  The Borrower will take such action, and will
cause each of its Subsidiaries to take such action, from time to time as shall
be necessary to ensure that all Subsidiaries of the Borrower are “Subsidiary
Guarantors” hereunder.  Without limiting
the generality of the foregoing, in the event that the Borrower or any of its
Subsidiaries shall form or acquire any new Subsidiary that shall constitute a
Subsidiary hereunder, the Borrower and its Subsidiaries will cause such new
Subsidiary to (i) become a “Subsidiary Guarantor” hereunder, and (if
applicable) an “Obligor” under the Security Agreement pursuant to a Guarantee
Assumption Agreement, (ii) deliver certificates (if any) of ownership
interests of any Subsidiaries of such new Subsidiary in each case accompanied
by undated stock or other similar powers executed in blank and (iii) deliver
such proof of corporate action, incumbency of officers, opinions of counsel and
other documents as is consistent with those delivered by each Obligor pursuant
to Section 5.01 on the Second Restatement Effective Date or as the
Administrative Agent shall have requested.

 

(b)  Ownership of Subsidiaries.  The Borrower will, and will cause each of its
Subsidiaries to, take such action from time to time as shall be necessary to
ensure that each of its Subsidiaries is a Wholly Owned Subsidiary.  In the event that any additional shares of
stock or other ownership interests shall be issued by any Subsidiary, the respective
Obligor agrees forthwith to deliver to the Administrative Agent pursuant to the
Security Agreement the certificates (if any) evidencing such shares of stock or
other ownership interests, accompanied by undated stock or other similar powers
executed in blank and to take such other action as the Administrative Agent
shall request to perfect the security interest created therein pursuant to the
Security Agreement.

 

(c)  KDSM Entities.  The Holding Company will take such action,
and will cause each of KDSM Entities to take such action, from time to time as
shall be necessary to ensure that the KDSM Entities are “Subsidiary Guarantors”
hereunder and that each of the KDSM Entity is a Wholly Owned Subsidiary of the
Holding Company.

 

(d)  Ownership of the Borrower.  In the event the Holding Company shall at any
time wish to cause the Borrower to become an indirectly Wholly Owned Subsidiary
of the Holding Company, the Holding Company shall promptly notify the
Administrative Agent thereof and, as conditions precedent thereto, shall cause
the Subsidiary of the Holding Company that shall become the direct owner of
100% of the capital stock of the Borrower (an “Intermediate

 

74

 

Holding
Company”) (i) to become (x) a “Guarantor”
hereunder pursuant to a written agreement in form and substance satisfactory to
the Administrative Agent and (y) the pledgor of the capital stock of the
Borrower under the Security Agreement pursuant to an amendment thereto in form
and substance satisfactory to the Administrative Agent, (ii) to deliver to
the Administrative Agent such proof of corporate action, incumbency of
officers, opinions of counsel and other documents with respect to such
Intermediate Holding Company as is consistent with those delivered by each
Obligor pursuant to Section 5.01 on the Second Restatement Effective Date
or as the Administrative Agent shall have requested and (iii) to take such
other action as the Administrative Agent shall have requested to perfect the
security interest created in such capital stock pursuant to such
amendment.  Without limiting the
foregoing, in the event that at any time the Borrower shall become a directly
Wholly Owned Subsidiary of an Intermediate Holding Company in accordance with
the immediately preceding sentence, the Holding Company shall at all times
remain a Guarantor hereunder and, at such time, shall pledge the capital stock
or other ownership interests of such Intermediate Holding Company under the
Security Agreement pursuant to an amendment thereto in form and substance satisfactory
to the Administrative Agent. 
Notwithstanding anything herein or in the other Loan Documents to the
contrary, the Lenders hereby authorize the Administrative Agent to enter into
each such agreement and amendment contemplated by this paragraph without any
further authorization or action by the Lenders in order to effect the
foregoing.

 

ARTICLE VII

NEGATIVE COVENANTS

 

Until the Commitments have expired or
terminated and the principal of and interest on each Loan and all fees payable
hereunder have been paid in full and all Letters of Credit have expired or
terminated and all LC Disbursements shall have been reimbursed, each of the
Borrower (other than with respect to Section 7.19) and the Holding Company
(solely with respect to the KDSM Entities and Section 7.19) covenants and
agrees with the Lenders that:

 

SECTION 7.01.  Indebtedness.  The Borrower will not, nor will it permit any
of its Subsidiaries to, create, incur, assume or permit to exist any
Indebtedness, except:

 

(a) 
Indebtedness to the Lenders hereunder (including in respect of Incremental
Loans) and under the other Loan Documents;

 

(b) 
Indebtedness outstanding on the Second Restatement Effective Date and
identified in Schedule 7.01(b);

 

(c) 
unsecured, senior subordinated or subordinated Indebtedness of the Borrower
(which may be guaranteed on a subordinated basis by any Subsidiary Guarantor)
(such Indebtedness and/or guarantees being collectively referred to as the “Additional
Subordinated Notes”), provided that (i) such Indebtedness shall
bear interest at a rate, whether fixed or floating, not to exceed 12% per annum
on the face amount thereof,

 

75

 

(ii) no scheduled payments, prepayments,
redemptions or sinking fund or like payments in respect of such Indebtedness
shall be required prior to July 1, 2013, (iii) the terms and
conditions of such Indebtedness shall not be more restrictive on the Borrower
and its Subsidiaries than the terms and conditions customarily found in
subordinated debt of a similar type issued by similar issuers under Rule 144A
or in a public offering as reasonably determined by the Administrative Agent,
and the terms of subordination thereof shall also extend to cover obligations
of the Borrower and its Subsidiaries in respect of any Hedging Agreements to
which the Borrower and any of the Lenders and their respective Affiliates are
parties and (iv) no Default shall have occurred and be continuing at the
time of incurrence of such Indebtedness or would result therefrom;

 

(d) 
Indebtedness of the Borrower evidenced by senior subordinated notes and
subordinated guarantees thereof by Subsidiary Guarantors (such Indebtedness and
guarantees being collectively referred to as the “Converted Senior
Subordinated Notes”), provided that (i) such notes and
guarantees shall be unsecured and such notes shall bear interest at a fixed
rate not greater than 15% per annum, (ii) no scheduled payments,
prepayments, redemptions or sinking fund or like payments on such notes shall
be required before the tenth anniversary of the date of issuance of the Other
Preferred Stock, (iii) the terms and conditions of such notes shall not be
more restrictive on the Borrower and its Subsidiaries than the terms and
conditions customarily found in senior subordinated notes of similar issuers
issued under Rule 144A or in a public offering as reasonably determined by
the Administrative Agent, and the terms of subordination thereof shall also
extend to cover obligations of the Borrower and its Subsidiaries in respect of
any Hedging Agreements to which the Borrower and any Lender are parties, (iv) the
Borrower shall issue such notes pursuant to the conversion of all, but not less
than all, of the Other Preferred Stock into such notes in an aggregate
principal amount not exceeding the aggregate liquidation preference of the
Other Preferred Stock so converted and (v) both immediately prior to such
conversion of the Other Preferred Stock and, after giving pro forma effect
thereto, no Default shall have occurred and be continuing;

 

(e) 
Indebtedness of Subsidiaries of the Borrower owing to the Borrower or to other
Subsidiaries of the Borrower and Indebtedness of the Borrower owing to KDSM
LLC;

 

(f) 
Subordinated Film Indebtedness of the Borrower and its Subsidiaries in an aggregate
principal amount not exceeding $30,000,000 at any one time outstanding, provided
that the terms and conditions of each agreement or instrument evidencing or
governing such Indebtedness shall be satisfactory to the Administrative Agent;

 

(g) 
Guarantees by one or more of the Borrower and the Subsidiary Guarantors of the
obligations of other Persons (including Affiliates); provided that the
aggregate principal amount of Indebtedness so guaranteed may not exceed
$75,000,000 at any one time outstanding;

 

(h) 
Indebtedness (including Indebtedness of the Receivables Subsidiary) incurred in
connection with any Receivables Financing on terms satisfactory to the
Administrative

 

76

 

Agent, provided that after giving
effect thereto the aggregate face amount of Receivables of the Borrower and its
Subsidiaries (other than any Receivables Subsidiary) that have not been sold or
financed shall be at least $100,000,000;

 

(i) 
Indebtedness incurred in connection with capital leases in respect of broadcast
towers or equipment of the Borrower or any of its Subsidiaries, provided
that the aggregate principal amount of such Indebtedness may not exceed
$25,000,000 at any one time outstanding;

 

(j)  off-balance sheet Indebtedness incurred by
the Borrower or any of its Subsidiaries to finance broadcast towers or
equipment on terms satisfactory to the Administrative Agent; provided
that the aggregate principal amount of such Indebtedness may not exceed
$50,000,000 at any one time outstanding;

 

(k)  senior unsecured Indebtedness of the Borrower
issued after the date hereof in an aggregate principal amount not exceeding
$300,000,000 at any one time outstanding; provided that (i) no
scheduled payments, prepayments, redemptions or sinking fund or like payments
on such Indebtedness shall be required prior to July 1, 2013, (ii) the
terms and conditions of such Indebtedness shall not be more restrictive on the
Borrower and its Subsidiaries than the terms and conditions customarily found
in senior unsecured notes of similar issuers issued under Rule 144A or in
a public offering as reasonably determined by the Administrative Agent and (iii) no
Default shall have occurred and be continuing at the time of incurrence of such
Indebtedness or would result therefrom; and

 

(l)  additional unsecured Indebtedness of the
Borrower in an aggregate principal amount not exceeding $75,000,000 at any one
time outstanding, provided that no Default shall have occurred and be
continuing at the time of incurrence of such Indebtedness or would result
therefrom.

 

SECTION 7.02.  Liens.  The Borrower will not, nor will it permit any
of its Subsidiaries to, create, incur, assume or permit to exist any Lien on
any property or asset now owned or hereafter acquired by it, or assign or sell
any income or revenues (including accounts receivable) or rights in respect of
any thereof, except:

 

(a) 
Liens created pursuant to the Security Documents;

 

(b) 
Liens imposed by any Governmental Authority for taxes, assessments or charges
not yet due or which are being contested in good faith and by appropriate
proceedings if adequate reserves with respect thereto are maintained on the
books of the Borrower or any of its Subsidiaries, as the case may be, in
accordance with GAAP;

 

(c)  carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens
arising in the ordinary course of business which are not overdue for a period
of more than 30 days or which are being contested in good faith and by
appropriate proceedings and Liens securing judgments but only to the extent for
an amount and for a period not resulting in an Event of Default under
clause (j) of Article VIII;

 

77

 

(d) 
pledges or deposits under worker’s compensation, unemployment insurance and
other social security legislation;

 

(e) 
deposits to secure the performance of bids, trade contracts (other than for
borrowed money), leases, statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature incurred in the
ordinary course of business;

 

(f) 
easements, rights-of-way, restrictions and other similar encumbrances incurred
in the ordinary course of business and encumbrances consisting of zoning
restrictions, easements, licenses, restrictions on the use of property or minor
imperfections in title thereto which, in the aggregate, are not material in
amount, and which do not in any case materially detract from the value of the
property subject thereto or interfere with the ordinary conduct of the business
of the Borrower or any of its Subsidiaries;

 

(g) 
Liens on the capital stock of Cunningham owned by Carolyn C. Smith acquired by
the Borrower or any of its Subsidiaries pursuant to the exercise of the
Cunningham Options, to the extent such Liens are in existence on the date of
such acquisition;

 

(h) 
Liens on the property of the Borrower and the Subsidiary Guarantors securing
Guarantees referred to in Section 7.01(g), provided that the
aggregate Indebtedness secured thereby shall not exceed $75,000,000 at any one
time outstanding;

 

(i) 
Liens resulting from the defeasance (but only to extent permitted under Section 7.12)
of the Indebtedness under the Note Indentures in accordance therewith;

 

(j)  Liens upon real and/or personal property
existing on the date hereof, provided that the aggregate Indebtedness
and/or other obligations secured thereby shall not exceed $15,000,000;

 

(k)  additional Liens upon real and/or personal
property created after the date hereof, provided that the aggregate
Indebtedness and/or other obligations secured thereby and incurred on and after
the date hereof shall not exceed $5,000,000 in the aggregate at any one time
outstanding;

 

(l)  Liens (if any) created in connection with any
Receivables Financing permitted under Section 7.01(h); and

 

(m)  any extension, renewal or replacement of the
foregoing, provided that the Liens permitted hereunder shall not be
spread to cover any additional Indebtedness or property (other than a
substitution of like property).

 

SECTION 7.03.  Mergers,
Consolidations, Etc.  The Borrower
will not, nor will it permit any of its Subsidiaries to, enter into any
transaction of merger or consolidation or

 

78

 

amalgamation, or liquidate, wind
up or dissolve itself (or suffer any liquidation or dissolution), except:

 

(a)  any
Subsidiary (other than a License Subsidiary) may be merged or consolidated with
or into any other Subsidiary (other than a License Subsidiary); provided
that:

 

(i)  if any
such transaction shall be between a Subsidiary and a Wholly Owned Subsidiary,
the Wholly Owned Subsidiary shall be the continuing or surviving entity;

 

(ii)  if
any such transaction shall be between a Subsidiary Guarantor and a Subsidiary
not a Subsidiary Guarantor, and such Subsidiary Guarantor is not the continuing
or surviving entity, then the continuing or surviving entity shall have assumed
all of the obligations of such Subsidiary Guarantor hereunder and under the
other Loan Documents;

 

(b)  any
existing License Subsidiary may be merged or consolidated with or into a
newly formed Subsidiary of the Borrower (which may be organized as a limited
liability company), provided that (i) if such existing License
Subsidiary is not the continuing or surviving entity, then the continuing or
surviving entity shall be deemed to be a License Subsidiary and shall have
assumed all of the obligations of such Subsidiary hereunder and under the other
Loan Documents and (ii) such newly formed Subsidiary shall be in compliance
with Section 7.14;

 

(c)  any
Subsidiary (other than a License Subsidiary) may be merged or consolidated with
or into any other Person to effect an Acquisition permitted under Section 7.04,
provided that the continuing or surviving entity shall be a Subsidiary
of the Borrower and, if not a Subsidiary Guarantor prior to such merger or
consolidation, such continuing or surviving entity shall have assumed all of
the obligations of such Subsidiary hereunder and under the Loan Documents; and

 

(d)  any
Subsidiary of the Borrower (other than a License Subsidiary) may be merged or
consolidated with or into the Borrower, provided that the Borrower shall
be the continuing or surviving entity.

 

SECTION 7.04.  Acquisitions.  The Borrower will not, nor will it permit any
of its Subsidiaries to, acquire any business or property from, or capital stock
or other ownership interests of, or be a party to any acquisition of, any
Person, or acquire any option to make any such acquisition, except:

 

(a) 
purchases of inventory, programming rights and other property to be sold or
used in the ordinary course of business;

 

(b) 
Investments permitted under Section 7.07;

 

79

 

(c) 
Restricted Payments permitted under Section 7.08;

 

(d) 
Capital Expenditures of the Borrower and its Subsidiaries;

 

(e)  the
Borrower and its Subsidiaries may consummate each Approved Acquisition and any
Other Acquisition (including the exercise of the Cunningham Options), provided
that, if applicable:

 

(i)  both
immediately prior after giving effect to such Acquisition, no Default shall
have occurred and be continuing (and, in the case of such Acquisition, the
Borrower shall be in compliance with the Total Indebtedness Ratio under Section 7.11(d),
calculated on a pro forma basis as if such Acquisition had been consummated on
the first day of the relevant period);

 

(ii) 
each assignment or transfer of control of Broadcast Licenses to the Borrower or
any of its Subsidiaries shall have been approved by

 

(A)  an Initial
FCC Order, in the case of any such Approved Acquisition or if the aggregate
consideration for any Other Acquisition and all Other Acquisitions permitted
under this clause (e) and consummated after the date hereof
which have not been approved by a Final FCC Order is equal to or less than
$300,000,000 in the aggregate or

 

(B)  a
Final FCC Order, in all other cases (including the exercise of the Cunningham
Options);

 

(iii)  if
the Administrative Agent or the Required Lenders shall have so requested, the
Administrative Agent shall have received an opinion of FCC counsel satisfactory
to the Administrative Agent or the Required Lenders, as the case may be, in its
(or their) reasonable judgment to the effect that such transfer shall have been
so approved by an Initial FCC Order or a Final FCC Order, as the case may be,
and that such Broadcast Licenses have been validly assigned to the Borrower or
such Subsidiary);

 

(iv)  at
the time that the Borrower or any of its Subsidiaries enters into a definitive
purchase agreement for such Acquisition, either:

 

(A)  the
Borrower has sufficient financing committed to it to enable it or its
Subsidiary, as the case may be, to consummate such Acquisition or

 

(B)  if
the maximum amount of all termination, break-up and similar fees payable by the
Borrower or its Subsidiary, as the case may be, by reason of such Acquisition
failing to be consummated were included in the calculation of Total
Indebtedness, the Borrower would be in compliance with the Total Indebtedness
Ratio on such date;

 

80

 

(v) 
after the consummation of such Acquisition, there shall remain unused Revolving
Commitments in an aggregate amount of not less than $20,000,000;

 

(vi) 
immediately after giving effect to such Acquisition, the BCF Percentage does
not exceed 25%;

 

(vii)  if
the Aggregate Consideration for such Acquisition is equal to or greater than
$75,000,000, the Borrower shall furnish to the Lenders a certificate showing
calculations (after giving effect to borrowings and prepayments hereunder to be
made on such date and calculated on a pro forma basis as if such Acquisition
had been consummated on the first day of the period of four fiscal quarters of
the Borrower ending on or most recently ended prior to such date) in reasonable
detail that demonstrate that such Acquisition will not result in a Default
under Section 7.11 or sub-clause (vi) of this clause (e);

 

(viii) 
if the Aggregate Consideration for such Acquisition is equal to or greater than
$75,000,000 or if the portion of the Aggregate Consideration for such
Acquisition payable to extend and exercise any option acquired in connection
with such Acquisition exceeds 20% of the Aggregate Consideration payable in
connection with such Acquisition, no later than the date falling ten Business
Days (or such shorter period as the Administrative Agent may agree) prior to
the date that such Acquisition is consummated, the Borrower shall have
delivered to the Administrative Agent drafts or executed counterparts of such
of the respective agreements or instruments (including Program Services
Agreements) pursuant to which such Acquisition is to be consummated (together
with any related option or other material agreements), any schedules or other
material ancillary documents to be executed or delivered in connection
therewith, all of which shall be satisfactory in form and substance to the
Administrative Agent;

 

(ix) 
promptly following request therefor, copies of such information or documents
relating to such Acquisition as the Administrative Agent or any Lender (through
the Administrative Agent) shall have reasonably requested; and

 

(x)  if requested by the Administrative Agent with
respect to any agreement (A) entered into by the Borrower or any
Subsidiary Guarantor and any other Person in connection with such Acquisition
or (B) to be transferred to the Borrower or any Subsidiary Guarantor in
connection with such Acquisition, which agreement is determined by the
Administrative Agent to be material and for which a security interest is
required to be granted under the Security Documents, the Borrower shall use its
best efforts to cause such other Person to execute and deliver to the
Administrative Agent a Consent and Agreement with the Borrower or such
Subsidiary Guarantor, as applicable, with respect to such agreement; and

 

81

 

(f)  the
acquisition of property in connection with any exchanges permitted under Section 7.05.

 

SECTION 7.05.  Dispositions.  The Borrower will not, nor will it permit any
of its Subsidiaries to, without the prior written consent of the Required
Lenders, convey, sell, lease, transfer or otherwise dispose of, in one
transaction or a series of transactions, all or a substantial part of its
business or property, whether now owned or hereafter acquired including
receivables and leasehold interests, except:

 

(a) 
 the Disposition of any inventory or other property in the ordinary course
of business and on ordinary business terms;

 

(b) 
 the Disposition of obsolete or worn-out property, tools or equipment no
longer used or useful in its business so long as the amount thereof sold in any
single fiscal year by the Borrower and its Subsidiaries shall not have a fair
market value in excess of $10,000,000;

 

(c)  the
Borrower or any of its Subsidiaries may sell to any PSA Counterparty the
Broadcast Licenses for any Owned Station and any property required pursuant to
the rules and regulations of the FCC to be sold in connection with the
transfer of such Broadcast Licenses, provided that:

 

(i)  any
such sale shall be for an amount not less than 80% of the appraised value of
such Broadcast License and other property required to be sold in connection
with the transfer of such Broadcast License (as determined by an appraiser
satisfactory to the Administrative Agent and the Borrower and experienced in
the appraisal of properties similar to those being so sold), which amount in
all such cases shall be payable in cash,

 

(ii) 
such PSA Counterparty shall enter into a Program Services Agreement with a
Subsidiary of the Borrower with respect to such Station in form and substance
satisfactory to the Administrative Agent,

 

(iii) 
after giving effect to such sale and related Program Services Agreement, the
BCF Percentage does not exceed 30%, and

 

(iv) 
such PSA Counterparty shall enter into a consent and agreement with the
Administrative Agent relating to such Program Services Agreement (which consent
and agreement shall be in a form not materially less favorable to the Lenders
than the form of Consent and Agreement attached as Exhibit E);

 

(d)  the
Borrower or any of its Subsidiaries may dispose of substantially all of the
assets relating to any Owned Station that is a television broadcasting station
or a radio broadcasting station (or the capital stock or other ownership
interests of the Subsidiary of the Borrower that owns such assets if such
Subsidiary does not own property related to any other Owned Station not
included in such Disposition), provided that:

 

82

 

(i)  both
immediately prior to such Disposition and, after giving effect thereto, no
Default shall have occurred and be continuing; and

 

(ii) 
either:

 

(A)  such
Disposition is a sale to any Person for cash in an amount not less than the
fair market value of such assets and:

 

(1)  the
EBITDA Percentage attributable to such assets together with the
EBITDA Percentage attributable to all other television assets and/or radio
assets, as applicable, sold pursuant to this clause (A) or exchanged
pursuant to the following clause (B) during the immediately preceding
twelve month period shall not exceed 25%,

 

(2)  the
EBITDA Percentage attributable to all assets of the Borrower and its
Subsidiaries sold pursuant to this clause (A) or exchanged
pursuant to the following clause (B) since the Second Restatement
Effective Date shall not exceed 50%,

 

(3) 
immediately after giving effect to such Disposition, the BCF Percentage does
not exceed 30%, and

 

(4)  the
Borrower shall have furnished to the Lenders, not later than the date falling
ten Business Days (or such shorter period as the Administrative Agent may
agree) prior to the date of such disposition a certificate in form and detail
satisfactory to the Administrative Agent stating (and setting forth
calculations in reasonable detail demonstrating) the EBITDA Percentage
attributable to the assets so sold and promptly following request therefor,
copies of such other information or documents relating to such disposition as
the Administrative Agent or any Lender or Lenders (through the Administrative
Agent) shall have reasonably requested; or

 

(B)  such
disposition is an exchange, with any Person, of such assets for assets owned by
such Person (or the capital stock or other ownership interests of such Person)
comprising a television or radio broadcasting station of equal or greater
value, as determined in good faith by the Board of Directors of the Borrower or
such Subsidiary and:

 

(1)  the
EBITDA Percentage attributable to such assets of the Borrower or such
Subsidiary together with the EBITDA Percentage attributable to all other
television or radio assets, as applicable, of the Borrower or any of its
Subsidiaries

 

83

 

sold pursuant to the foregoing clause (A) or exchanged
pursuant to this clause (B) during the immediately preceding twelve
month period shall not exceed 25%,

 

(2)  the
EBITDA Percentage attributable to all assets of the Borrower and its
Subsidiaries sold pursuant to the foregoing clause (A) or exchanged
pursuant to this clause (B) since the Second Restatement Effective
Date shall not exceed 50%,

 

(3)  the
acquisition of such assets of such Person pursuant to such exchange shall
comply with the provisions of Section 7.04(e), and

 

(4)  the
Borrower shall have furnished to the Lenders, not later than the date falling
ten Business Days (or such shorter period as the Administrative Agent may
agree) prior to the date of such disposition a certificate in form and detail
satisfactory to the Administrative Agent stating (and setting forth
calculations in reasonable detail demonstrating) the EBITDA Percentage
attributable to the assets so sold;

 

(e)  the
Borrower or any of its Subsidiaries may dispose of additional property for fair
market value, provided that the aggregate fair market value of such
additional property disposed of by the Borrower and its Subsidiaries in any
fiscal year may not exceed $100,000,000;

 

(f)  the
Borrower and its Subsidiaries may transfer Receivables in connection with any Receivables
Financing permitted under Section 7.01(h); and

 

(g)  any
Subsidiary of the Borrower may sell, lease, transfer or otherwise dispose of
any or all of its property to the Borrower or a Wholly Owned Subsidiary of the
Borrower (other than a License Subsidiary); provided that if any such
sale is by a Subsidiary Guarantor to another Subsidiary which is not a
Subsidiary Guarantor, then such Subsidiary shall have become a “Subsidiary
Guarantor” hereunder and assumed all of the obligations of such Subsidiary
Guarantor hereunder and under the other Loan Documents.

 

SECTION 7.06.  Lines of Business.  The Borrower will not, nor will it permit any
of its Subsidiaries to, engage to any substantial extent in any line or lines
of business activity other than (a) the business of owning and operating
the Stations (and related retransmission facilities), (b) the commercial
utilization of frequencies licensed, granted or leased to the Borrower or any
of its Subsidiaries by the FCC, any other Governmental Authority or any other
Person in connection with the television or radio broadcasting businesses, (c) the
production, development, sale, lease or other provision of equipment and/or
services to Persons engaged in the businesses relating to those referred to in
clause (b) of this Section, (d) the sale of Receivables by the
Borrower or any of its Subsidiaries pursuant to a Receivables Financing

 

84

 

permitted under Section 7.01(h) and (e) the
business of managing and/or consulting to television stations other than the
Owned Stations; provided that the Borrower shall not permit at any time
the portion of EBITDA for the most recent period of twelve consecutive full
calendar months derived from the activities referred to in clauses (a), (b) and (e) of
this Section to be less than 80% of EBITDA for such period.

 

SECTION 7.07.  Investments.  The Borrower will not, nor will it permit any
of its Subsidiaries to, make or permit to remain outstanding any Investments
except:

 

(a) 
operating deposit accounts with banks;

 

(b) 
Permitted Investments;

 

(c)  (i) Investments
by the Borrower and its Subsidiaries in capital stock or other ownership
interests of Subsidiaries of the Borrower to the extent outstanding on the date
of the financial statements of the Borrower and its Subsidiaries referred to in
Section 4.04 or required by Section 7.14 and (ii) advances by
the Borrower and its Subsidiaries to Subsidiary Guarantors, and advances by
KDSM LLC to the Borrower, in the ordinary course of business permitted to
be incurred by Section 7.01(e);

 

(d) 
Investments outstanding on the date hereof (other than Investments permitted
under clauses (a), (b) and (c) of this Section) and
identified in Schedule 4.15(b);

 

(e)  the
acquisition of the capital stock or other ownership interests of Persons or the
formation of Wholly Owned Subsidiaries of the Borrower for the acquisition of
capital stock or other ownership interests of Persons, resulting in such
Persons becoming Wholly Owned Subsidiaries of the Borrower, in each case for
the purpose of enabling the Borrower and its Subsidiaries to consummate
acquisitions permitted by Section 7.04;

 

(f) 
Guarantees by Subsidiary Guarantors of Indebtedness of the Borrower to the
extent such guarantees are permitted under Section 7.01;

 

(g) 
Guarantees permitted under Section 7.01(g);

 

(h) 
additional Investments made after the Second Restatement Effective Date in an
aggregate amount not exceeding the sum of (i) $350,000,000 minus (ii) the
aggregate amount applied after the Second Restatement Effective Date to make
purchases, redemptions, retirements, acquisitions or defeasances of
Subordinated Indebtedness or Senior Notes under clause (c) of Section 7.12
(other than such purchases, redemptions, retirements, acquisitions or
defeasances made with Net Available Proceeds from any Equity Issuances), provided
that no Default shall have occurred and be continuing at the time of the making
of each such Investment or would result therefrom;

 

(i) 
Investments by the Borrower and its Subsidiaries in any Receivables Subsidiary
in connection with any Receivables Financing permitted under Section 7.01(h);
and

 

85

 

(j) 
Investments in any Person (other than any Subsidiary) made solely in
exchange for the issuance of the Borrower’s common stock.

 

Notwithstanding anything contained herein to the contrary, the Borrower
will not, nor will it permit any of its Subsidiaries to, make any Investment in
any Unrestricted Subsidiary other than those permitted under clauses (d) and (g) through (i) of
this Section.

 

SECTION 7.08.  Restricted
Payments.  The Borrower will not, nor
will it permit any of its Subsidiaries to, declare or make, or agree to pay or
make, directly or indirectly, any Restricted Payment, except that, so long as
no Default exists at the time of making such Restricted Payment or would result
therefrom:

 

(a)  the
Borrower may pay cash dividends on its common stock (i) in an aggregate
amount not to exceed $100,000,000 or (ii) without regard to amount, if at
the time of the declaration and making of, and after giving effect to, such
dividends, the Total Indebtedness Ratio shall not be greater than 4.00 to 1;

 

(b)  the
Borrower may pay cash dividends on its common stock that will be used by the
Holding Company solely for the purpose of redeeming or purchasing, in one
transaction or a series of transactions, the Class D Preferred Stock of
the Holding Company in existence on the Second Restatement Effective Date;

 

(c)  the
Borrower may pay cash dividends on its common stock, pay management fees and/or
make royalty fee payments to the Holding Company that will be used by the
Holding Company solely to pay general and administrative expenses of the
Holding Company in an aggregate amount not to exceed $8,000,000 for any period
of twelve consecutive full calendar months;

 

(d)  the
Borrower may pay cash dividends on its common stock and/or Preferred Stock if,
at the time of the declaration and making of, and after giving effect to, each
such dividend, the Borrower shall be in pro forma compliance Section 7.11(b);
and

 

(e)  the
Borrower may (i) make any Equity Issuance permitted by Section 7.15, (ii) redeem
or repurchase Other Preferred Stock (and pay any premium relating thereto) with
the proceeds of any Equity Issuance and (iii) convert any Other Preferred
Stock into Converted Senior Subordinated Notes in accordance with Section 7.01(d).

 

Notwithstanding anything herein to the contrary,
the Borrower will not, nor will it permit any of its Subsidiaries to, purchase
or redeem any Preferred Stock, except as expressly permitted by clause (e) of
this Section.

 

Nothing herein shall be deemed to prohibit
the payment of any dividends or distributions by any Wholly Owned Subsidiary of
the Borrower to the Borrower or any other such Wholly Owned Subsidiary; provided
that, notwithstanding anything in the Loan Documents to the contrary, no
KDSM Entity shall be permitted to make any dividend or other
distributions,

 

86

 

in cash or property (other than
in additional ownership interests of KDSM LLC), to the Holding Company or
any Subsidiary of the Holding Company that directly owns the ownership
interests of KDSM LLC, including any sinking fund or similar deposit, on
account of the purchase, redemption, retirement, acquisition, cancellation or
termination of any such ownership interests or any option, warrant or other
right to acquire any such ownership interests.

 

SECTION 7.09.  Transactions
with Affiliates.  The Borrower will
not, nor will it permit any of its Subsidiaries to, sell, lease or otherwise
transfer any property or assets to, or purchase, lease or otherwise acquire any
property or assets from, or otherwise engage in any other transactions with,
any of its Affiliates, except:

 

(a) 
transactions in the ordinary course of business at prices and on terms and
conditions not less favorable to the Borrower or such Subsidiary than could be
obtained on an arm’s-length basis from unrelated third parties;

 

(b) 
transactions between or among the Borrower and its Subsidiaries not involving
any other Affiliate;

 

(c)  any Restricted Payment permitted
under Section 7.08; and

 

(d)  any
Affiliate who is an individual may serve as a director, officer or employee of
the Borrower or any of its Subsidiaries and receive reasonable compensation for
his or her services in such capacity.

 

SECTION 7.10.  Restrictive
Agreements.  The Borrower will not,
nor will it permit any of its Subsidiaries to, directly or indirectly, enter
into, incur or permit to exist any agreement or other arrangement that
prohibits, restricts or imposes any condition upon (a) the ability of the
Borrower or any Subsidiary to create, incur or permit to exist any Lien upon
any of its property or assets, or (b) the ability of any Subsidiary to pay
dividends or other distributions with respect to any shares of its capital
stock or other ownership interests or to make or repay loans or advances to the
Borrower or any other Subsidiary or to Guarantee Indebtedness of the Borrower
or any other Subsidiary; provided that (i) the foregoing shall not
apply to restrictions and conditions imposed by law or by this Agreement, (ii) the
foregoing shall not apply to restrictions and conditions existing on the date
hereof identified on Schedule 7.10 (but shall apply to any extension or
renewal of, or any amendment or modification expanding the scope of, any such
restriction or condition), (iii) the foregoing shall not apply to
customary restrictions and conditions contained in agreements relating to the
sale of a Subsidiary pending such sale, provided that such restrictions
and conditions apply only to the Subsidiary that is to be sold and such sale is
permitted hereunder, (iv) the foregoing shall not apply to restrictions or
conditions imposed by any agreement relating to (x) secured Indebtedness
permitted by this Agreement if such restrictions or conditions apply only to
the property or assets securing such Indebtedness or (y) Indebtedness
permitted under clause (c), (d) or (k) of Section 7.01 but
only to the extent that such restrictions are no more onerous on the Borrower
and its Subsidiaries than the restrictions contained in the Existing Senior
Subordinated Note Indentures and (v) clause (a) of the foregoing
shall not apply to customary provisions in leases and other contracts
restricting the assignment thereof.

 

87

 

SECTION 7.11.  Certain Financial Covenants.

 

(a)  Interest Coverage Ratio.  The Borrower will not permit the Interest
Coverage Ratio on any date to be less than the ratio set forth below opposite
the period during which such date falls:

 

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  From the
  Second Restatement Effective Date through December 31, 2005

  	
   

  	
  1.60 to 1

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  From January 1, 2006  through December 31, 2007

  	
   

  	
  1.75 to 1

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  From January 1, 2008  and at all times thereafter

  	
   

  	
  1.90 to 1

  	
   

  

 

(b)  Fixed Charges Ratio. The
Borrower will not permit the Fixed Charges Ratio on any date to be less than or
the ratio set forth below during which such date falls:

 

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  From the
  Second Restatement Effective Date through December 31, 2005

  	
   

  	
  1.00 to 1

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  From January 1, 2006  and at all times thereafter

  	
   

  	
  1.10 to 1

  	
   

  

 

(c)  Senior Indebtedness Ratio.  The Borrower will not permit the Senior
Indebtedness Ratio on any date to be greater than 3.50 to 1.

 

(d)  Total Indebtedness Ratio.  The Borrower will not permit the Total
Indebtedness Ratio on any date to be greater than the ratio set forth below
opposite the period during which such date falls:

 

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  From the
  Second Restatement Effective Date through December 31, 2005

  	
   

  	
  7.25 to 1

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  From January 1, 2006 through
  December 31, 2006

  	
   

  	
  7.00 to 1

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  From January 1, 2007 through
  December 31, 2007

  	
   

  	
  6.75 to 1

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  From January 1, 2008 and at all times
  thereafter

  	
   

  	
  6.25 to 1

  	
   

  

 

88

 

(e)  Film Obligations.  The Borrower will not, nor will it permit any
of its Subsidiaries to, purchase, redeem, retire or otherwise acquire for
value, or set apart any money for a sinking, defeasance or other analogous fund
for, the purchase, redemption, retirement or other acquisition of, or make any
voluntary payment or prepayment of the principal of or interest on, or any
other amount owing in respect of, any Film Obligations, except for (a) regularly
scheduled payments in respect thereof required pursuant to the instruments
evidencing such Film Obligations and (b) with the consent of the
Administrative Agent, prepayments of Film Obligations not exceeding $50,000,000
in the aggregate after the date hereof.

 

SECTION 7.12.  Certain Other
Indebtedness.  The Borrower will not,
nor will it permit any of its Subsidiaries to, purchase, redeem, retire or
otherwise acquire for value, or set apart any money for a sinking, defeasance
or other analogous fund for, the purchase, redemption, retirement or other
acquisition of, or make any voluntary payment or prepayment of the principal of
or interest on, or any other amount owing in respect of, any Subordinated
Indebtedness or any Senior Notes, except for:

 

(a) regularly scheduled payments of
principal and interest in respect thereof required pursuant to the instruments
evidencing such Indebtedness;

 

(b) the purchase, redemption, retirement
or other acquisition or defeasance of any Subordinated Indebtedness or Senior
Notes, as the case may be (together with any premium and accrued interest
payable therein) solely with the proceeds of other Subordinated Indebtedness or
Senior Notes, as the case may be, permitted under Section 7.01(c) or 7.01(k),
respectively, provided that no Default shall have occurred and be
continuing at the time of such redemption; and

 

(c) the purchase, redemption, retirement
or other acquisition or defeasance of Subordinated Indebtedness or Senior Notes
after the Second Restatement Effective Date, provided that (i) no
Default shall have occurred and be continuing at the time of such purchase,
redemption, retirement or other acquisition or defeasance or would result
therefrom and (ii) the aggregate principal amount of all such Indebtedness
so purchased, redeemed, retired, acquired or defeased under this
clause (c), together with the aggregate amount of Investments made as
permitted under Section 7.07(h), shall not exceed the sum of $350,000,000 plus
the Net Available Proceeds of any Equity Issuance.

 

SECTION 7.13.  Modifications
of Certain Documents.  Without the
prior written consent of the Required Lenders, the Borrower will not, nor will
it permit any of its Subsidiaries to, consent to any modification, supplement,
waiver or termination of any of the provisions of (a) any instrument
evidencing or governing any of the Film Cash Payments unless such instrument is
modified, supplemented or waived at no cost (including, but not limited to
interest costs) to the Borrower or any of its Subsidiaries or (b) any
Ancillary Document, except that the Borrower or any of its Subsidiaries may (i) amend
any of the Asset Use and Operating

 

89

 

Agreement entered into prior to
the date hereof to cause the same to be substantially in the form of Exhibit D,
(ii) amend any Program Services Agreement to extend the stated expiration
date thereof and (iii) modify or supplement any of the provisions of the
instruments or documents subject to this Section if (x) such
modification or supplement is not and will not be materially adverse to the
interests of the Borrower, its Subsidiaries, any Lender or the Administrative
Agent (subject to, in the case of any of the Subordinated Debt Documents and
the Senior Note Documents, the reasonable judgment of the Administrative
Agent), and (y) the Borrower or such Subsidiary, as the case may be, shall
have furnished to the Administrative Agent (a copy of which shall be forwarded
promptly to each Lender), not later than ten Business Days (or such shorter
period as the Administrative Agent may agree) prior to the effective date of
each such modification or supplement, a notice setting forth in reasonable
detail the terms and conditions thereof. 
The Borrower will not, nor will it permit any of its Subsidiaries to,
designate any Indebtedness (other than the Senior Notes and the Guarantees of
any Subsidiary Guarantor in respect thereof) as “Designated Senior Indebtedness”
or “Designated Guarantor Senior Indebtedness” (or equivalent terms), in each
case under and as defined in any Senior Subordinated Note Indenture.

 

SECTION 7.14.  License Subsidiaries.

 

(a)  Whenever the Borrower or any of its
Subsidiaries acquires any Broadcast License after the Second Restatement
Effective Date, the Borrower shall (without limiting its obligations under Section 6.09)
cause such acquisition to take place as follows in accordance with all
applicable laws and regulations, including pursuant to approvals from the FCC: (i) each
Broadcast License so acquired shall be transferred to and held by a separate
Wholly Owned Subsidiary of the Borrower that is a License Subsidiary, provided
that the Broadcast Licenses for one or more radio broadcasting stations serving
a single “Arbitron Metro Market” as determined by Arbitron may be held by any
one or more License Subsidiaries that do not hold any Broadcast License for any
one or more television broadcasting stations; (ii) the related operating
assets shall be transferred to and held by an operating company that is a
Subsidiary of the Borrower (an “Operating Subsidiary”); (iii) such
License Subsidiary and such Operating Subsidiary shall enter into an Asset Use
and Operating Agreement; (iv) the Borrower shall deliver or cause to be
delivered to the Administrative Agent in pledge under the Security Agreement
all capital stock or other ownership interests of such License Subsidiary and
such Operating Subsidiary; and (v) the Borrower shall furnish to the
Administrative Agent such evidence as may be reasonably requested by the
Administrative Agent or any Lender that the foregoing transactions have been so
effected.

 

(b)  Notwithstanding anything herein to
the contrary, the Borrower shall not permit any License Subsidiary to:

 

(i) 
create, incur, assume or have outstanding any Indebtedness or other liabilities
or obligations except for obligations under the Loan Documents and an Asset Use
and Operating Agreement;

 

(ii)  own
any right, franchise or other asset except for Broadcast Licenses transferred
to it by the Borrower of which it is a Wholly Owned Subsidiary and

 

90

 

Broadcast Licenses acquired in the ordinary
course of business and rights under an Asset Use and Operating Agreement;

 

(iii) 
enter into any transaction of merger, consolidation or amalgamation, or
liquidate, wind up or dissolve itself (or suffer any liquidation or
dissolution);

 

(iv) 
create, incur or permit to exist any Lien (other than the Lien created by the
Security Agreement) on or in respect of, or sell, lease, assign, transfer or
otherwise dispose of, any of its rights, franchises or other assets;

 

(v) 
engage in any business other than holding Broadcast Licenses and entering into
an Asset Use and Operating Agreement or as expressly contemplated in such Asset
Use and Operating Agreement; or

 

(vi) 
make or hold any Investment.

 

(c)  Notwithstanding anything in this Section to
the contrary, the Borrower and the Subsidiary Guarantors shall not be obligated
to effect any transaction contrary to law or the rules, regulations or policies
of the FCC, and shall be permitted to unwind the transactions contemplated by
this Section to the extent necessary to comply with a ruling of the FCC; provided
that the Borrower shall and shall cause each of the Subsidiary Guarantors to
use its best efforts to carry out the provisions of this Section consistent
with all laws and all rules, regulations and policies of the FCC, including
pursuing any necessary approval or consents of the FCC.

 

(d)  The Borrower will cause all
Broadcast Licenses for Owned Stations at all times to be held in the name of
the respective License Subsidiary for the Owned Station being operated under
authority of such Broadcast Licenses.

 

SECTION 7.15.  Preferred
Stock.  The Borrower will not effect
an issuance of any Preferred Stock, except that the Borrower may issue Other
Preferred Stock, provided that, after giving effect to the issuance of
any Other Preferred Stock, (i) no Default shall have occurred and be
continuing and (ii) the Borrower shall be in pro forma compliance with Section 7.11(b).

 

SECTION 7.16.  Program
Services Agreements and Outsourcing Agreements.  The Borrower will not, nor will it permit any
of its Subsidiaries to, enter into (i) any local marketing agreement, time
brokerage agreement, program services agreement or other similar agreement or (ii) any
outsourcing agreement, servicing agreement or other similar agreement providing
for:

 

(a)  the Borrower or any of its
Subsidiaries to program or sell advertising time on all or any portion of the
broadcast time of any television or radio station;

 

(b)  any Person other than the Borrower
or any of its Subsidiaries to program or sell advertising time on all or any
portion of the broadcast time of any Station; or

 

91

 

(c)  the Borrower or any of its
Subsidiaries to deliver or receive non-programming related management and/or
consulting services to or from any television station.

 

Notwithstanding the preceding sentence, (A) the Borrower or any of
its Subsidiaries (other than License Subsidiaries) may enter into any Program
Services Agreement with any other Person (including Affiliates), provided
that (i) the aggregate amount payable by the Borrower and its Subsidiaries
under all Program Services Agreements during any fiscal year of the Borrower,
excluding Permitted Termination Payments (as defined in the next sentence)
shall not exceed the Maximum Amount (as defined in the next sentence) for such
fiscal year and (ii) after entering into any such Program Services
Agreement, the BCF Percentage shall not exceed 30%, (B) the Borrower or
any of its Subsidiaries may enter into any Passive LMA, provided that
after giving effect thereto the Passive BCF Percentage shall not exceed 15% and
(C) the Borrower or any of its Subsidiaries (other than License
Subsidiaries) may enter into any Outsourcing Agreement with any other Person
(including Affiliates), provided that after entering into any such
Outsourcing Agreement, the BCF Percentage shall not exceed 30%.  For purposes of the preceding sentence, (i) a
“Permitted Termination Payment” means a payment owing by the Borrower or
any of its Subsidiaries by reason of the early termination of a Program
Services Agreement relating to any of the television stations referred to
below, provided that the amount of such payment shall not exceed the
amount set forth below opposite the name of such television station:

 

	
  Station

  	
   

  	
  Termination Payment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WTTE-TV

  	
   

  	
  $

  	
  32,750,000

  	
   

  
	
  WNUV-TV

  	
   

  	
  $

  	
  21,850,000

  	
   

  
	
  WRGT-TV

  	
   

  	
  $

  	
  8,450,000

  	
   

  
	
  WTAT-TV

  	
   

  	
  $

  	
  6,700,000

  	
   

  
	
  WVAH-TV

  	
   

  	
  $

  	
  1,950,000

  	
   

  
	
  Other (as defined below)

  	
   

  	
  $

  	
  5,000,000;

  	
   

  

 

(ii) the “Maximum Amount” for any fiscal year of the
Borrower means (x) for its fiscal year ending in 2004, $50,000,000 and
(y) for any of its fiscal years thereafter, an amount equal to the Maximum
Amount for its preceding fiscal year increased (or decreased, as the case may
be) by the percentage of the increase (or decrease, as the case may be) in the
Consumer Price Index for all Urban Consumers (as published by the U.S.
Department of Labor) for the twelve month period ending in September of
such preceding fiscal year; and (iii) ”Other” means any other
broadcasting television station (x) sold by the Borrower or any of its
Subsidiaries as permitted by Section 7.05(d) or (y) which
is covered by a Program Services Agreement.

 

SECTION 7.17.  Limitation
on Cure Rights.  The Borrower will
not, nor will it permit any of its Subsidiaries to, enter into any agreement (a
“Cure Right Agreement”) with or for the benefit of any other Person that
limits the ability of the Borrower or such Subsidiary to exercise any rights or
remedies under any agreement pursuant to which an Acquisition is to be consummated
(an “Acquisition Agreement”); provided that the Borrower or any
of its Subsidiaries may enter into or suffer to exist any Cure Right Agreement
for the benefit of the

 

92

 

lenders to any PSA Counterparty,
as the case may be, to the extent that such lenders (or an agent on behalf of
such lenders) has a security interest in the Acquisition Agreement to which
such Cure Right Agreement relates.

 

SECTION 7.18.  Sale
and Leaseback Transactions.  The
Borrower will not, nor will it permit any of its Subsidiaries to, enter into
any arrangement with any other Person providing for the leasing by the Borrower
or any of its Subsidiaries of real or personal property that has been or is to
be sold or transferred by the Borrower or any of its Subsidiaries to such other
Person or to any other Person to whom funds have been or are to be advanced by
such Person on the security of such property or rental obligations of the
Borrower or any of its Subsidiaries, other than such transactions not exceeding
an aggregate sale price of $25,000,000.

 

SECTION 7.19.  Covenants Applicable to Holding Company.

 

(a)  Restrictive Agreements.  The Holding Company will not, nor will it
permit any of its Subsidiaries to, directly or indirectly, enter into, incur or
permit to exist any agreement or other arrangement that prohibits, restricts or
imposes any condition upon (i) the ability of the Holding Company to
create, incur or permit to exist any Lien upon the Collateral (as defined in
the Security Agreement) owned by the Holding Company as provided herein and in
the Security Agreement, (ii) the ability of KDSM LLC or any of its
Subsidiaries to create, incur or permit to exist any Lien upon any of its
property or assets or (iii) the ability of any Subsidiary of KDSM LLC to
pay dividends or other distributions to KDSM LLC with respect to its ownership
interests or to Guarantee Indebtedness of the Borrower or any Subsidiary of the
Borrower or the ability of KDSM LLC or any of its Subsidiaries to make loans or
advances to the Borrower or any Subsidiary of the Borrower or to Guarantee
Indebtedness of the Borrower or any Subsidiary of the Borrower; provided
that the foregoing clauses (ii) and (iii) shall not apply to
(x) restrictions and conditions imposed by law or by the Loan Documents
and (y) customary restrictions and conditions contained in agreements
relating to the sale of a Subsidiary pending such sale (so long as such
restrictions and conditions apply only to the Person that is to be sold and
such sale is permitted under the Loan Documents).

 

(b)  Guarantees by Holding Company.  The Holding Company will not guarantee any
Subordinated Indebtedness of the Borrower or any of its Subsidiaries unless
each such guarantee (i) is unsecured and subordinated in right of payment
to the Holding Company’s guarantee under Article III on terms not less
favorable to the Lenders than those contained in the Existing Senior
Subordinated Note Indentures and (ii) contains other terms and conditions
not more restrictive on the Holding Company and its Subsidiaries than those
contained herein and in the Existing Senior Subordinated Note Indentures.

 

93

 

ARTICLE VIII

EVENTS OF DEFAULT

 

If any of the following events (“Events of
Default”) shall occur:

 

(a)  the
Borrower shall fail to pay any principal of any Loan or any reimbursement
obligation in respect of any LC Disbursement when and as the same shall become
due and payable, whether at the due date thereof or at a date fixed for
prepayment thereof or otherwise; or

 

(b)  the
Borrower shall fail to pay any interest on any Loan or any fee or any other
amount (other than an amount referred to in clause (a) of this
Article) payable under this Agreement or under any other Loan Document, when
and as the same shall become due and payable, and such failure shall continue
unremedied for a period of three or more Business Days; or

 

(c)  any
representation or warranty made or deemed made by or on behalf of any Obligor
in or in connection with this Agreement or any other Loan Document or any
amendment or modification hereof or thereof, or in any report, certificate,
financial statement or other document furnished pursuant to or in connection
with this Agreement or any other Loan Document or any amendment or modification
hereof or thereof, shall prove to have been incorrect in any material respect
when made or deemed made; or

 

(d)  the
Borrower or the Holding Company shall fail to observe or perform any covenant,
condition or agreement contained in Section 6.02(a), 6.03 (with respect to
the existence of the Borrower or the Holding Company, as applicable), 6.08 or
6.09 or in Article VII, or any Obligor shall default in the performance of
any of its obligations contained in Section 4.02 or 5.02 of the
Security Agreement; or

 

(e)  any
Obligor shall fail to observe or perform any covenant, condition or agreement
contained in this Agreement (other than those specified in clause (a), (b) or (d) of
this Article) or any other Loan Document to which it is a party and such
failure shall continue unremedied for a period of 30 or more days after notice
thereof from the Administrative Agent (given at the request of any Lender) to
the Borrower; or

 

(f)  any
Obligor shall default in the payment when due of any principal of or interest
on any of its other Indebtedness aggregating $25,000,000 or more (for all of
the Obligors), or in the payment when due of any amount under any Hedging
Agreement for a notional principal amount exceeding $25,000,000 (for all of the
Obligors); or any event specified in any note, agreement, indenture or other
document evidencing or relating to any such Indebtedness or any event specified
in any Hedging Agreement shall occur if the effect of such event is to cause,
or (with the giving of any notice or the lapse of time or both) to permit the
holder or holders of such Indebtedness (or a trustee or agent on behalf of such
holder or holders) to cause, such Indebtedness to become due, or to be

 

94

 

prepaid in full (whether by redemption,
purchase, offer to purchase or otherwise), prior to its stated maturity or to
have the interest rate thereon reset to a level so that securities evidencing
such Indebtedness trade at a level specified in relation to the par value
thereof or, in the case of a Hedging Agreement, to permit the payments owing
under such Hedging Agreement to be liquidated; or

 

(g)  an
involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i) liquidation, reorganization or other relief in respect
of any Obligor or any Material Third-Party Licensee or its debts, or of a
substantial part of its assets, under any Federal, state or foreign bankruptcy,
insolvency, receivership or similar law now or hereafter in effect or (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for any Obligor or any Material Third-Party Licensee or for a
substantial part of its assets, and, in any such case, such proceeding or
petition shall continue undismissed for a period of 60 or more days or an order
or decree approving or ordering any of the foregoing shall be entered; or

 

(h)  any
Obligor or any Material Third-Party Licensee shall (i) voluntarily
commence any proceeding or file any petition seeking liquidation,
reorganization or other relief under any Federal, state or foreign bankruptcy,
insolvency, receivership or similar law now or hereafter in effect, (ii) consent
to the institution of, or fail to contest in a timely and appropriate manner,
any proceeding or petition described in clause (g) of this Article, (iii) apply
for or consent to the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for any Obligor or any Material
Third-Party Licensee or for a substantial part of its assets, (iv) file an
answer admitting the material allegations of a petition filed against it in any
such proceeding, (v) make a general assignment for the benefit of
creditors or (vi) take any action for the purpose of effecting any of the
foregoing; or

 

(i)  any
Obligor or any Material Third-Party Licensee shall become unable, admit in
writing its inability or fail generally to pay its debts as they become due; or

 

(j)  one or more judgments for the payment of
money in an aggregate amount in excess of $25,000,000 shall be rendered against
any of the Obligors or any combination thereof and the same shall remain
undischarged for a period of 30 consecutive days during which execution shall
not be effectively stayed, or any action shall be legally taken by a judgment
creditor to attach or levy upon any assets of any Obligor to enforce any such
judgment; or

 

(k)  an ERISA Event shall have occurred that, in
the opinion of the Required Lenders, when taken together with all other ERISA
Events that have occurred, could reasonably be expected to result in a Material
Adverse Effect; or

 

(l)  the Smith Brothers shall cease at any time
collectively to own, directly or indirectly, legally or beneficially, shares of
capital stock of the Holding Company representing at least 51% of the voting
power of the Holding Company (other than by

 

95

 

reason of death or disability), or the
Holding Company shall cease at any time to own, directly or indirectly, 100% of
the capital stock of the Borrower; or

 

(m)  during any period of 25 consecutive calendar
months, individuals who were directors of the Holding Company or the Borrower
on the first day of such period shall no longer constitute a majority of the
Board of Directors of the Holding Company or the Borrower, as the case may be;
or

 

(n)  the Borrower shall deliver any “Change of
Control Purchase Notice” (or any similar notice) under and as defined in any
Senior Subordinated Note Indenture or Senior Note Indenture; or

 

(o)  any Broadcast License (other than an
Immaterial Broadcast License) shall be terminated, forfeited or revoked or
shall fail to be renewed for any reason whatsoever, or shall be modified in a
manner materially adverse to the Borrower, or for any other reason (i) any
License Subsidiary shall at any time cease to be a licensee under any Broadcast
License (other than an Immaterial Broadcast License) relating to the Owned
Station to which such Broadcast Licenses have been granted or the Subsidiary of
the Borrower that owns 100% of the capital stock or other ownership interests
of such License Subsidiary shall otherwise fail to have all required
authorizations, licenses and permits to construct, own, operate or promote such
Owned Station, or (ii) any Material Third-Party Licensee for any Contract
Station shall fail to preserve and maintain its legal existence or any of its
material rights, privileges or franchises (including the Broadcast Licenses
(other than an Immaterial Broadcast Licenses) for such Contract Station (other
than by reason of such Contract Station becoming an Owned Station)); or

 

(p)  with respect to any Owned Station, the
License Subsidiary with respect to such Owned Station shall at any time cease
to be a Wholly Owned Subsidiary of the Subsidiary of the Borrower that owns the
operating assets related to the Broadcast Licenses for such Owned Station; or
the Borrower shall cease at any time to own all of the issued shares of the
capital stock or other ownership interests of any such Subsidiary; or

 

(q)  any transfer of any common stock or other
ownership interests of the Borrower or any of its Subsidiaries or any right to
receive such common stock or other ownership interests in the Borrower or any
such Subsidiary, as the case may be, shall be transferred and either (i) such
transfer shall fail to comply with any applicable provision of the Federal
Communications Act of 1934, as amended from time to time, or any applicable FCC
rule, regulation or policy, or (ii) the Administrative Agent shall not
have received prior to such transfer an opinion reasonably satisfactory to the
Required Lenders of counsel reasonably satisfactory to the Required Lenders to
the effect that such transfer does so comply; or

 

(r)  the Liens created by any of the Security
Documents shall at any time not constitute a valid and perfected Lien on the
collateral intended to be covered thereby (to the extent perfection by filing,
registration, recordation or possession is required herein or

 

96

 

therein) in favor of the Administrative
Agent, free and clear of all other Liens (other than Liens permitted under Section 7.02
or under any of the Security Documents), or, except for expiration in accordance
with its terms, any of the Security Documents or any of the Guarantees of the
Guarantors under Article III shall for whatever reason be terminated or
cease to be in full force and effect, or the enforceability thereof shall be
contested by any Obligor; or

 

(s)  any Program Services Agreement shall be
terminated prior to the stated expiration date thereof (other than in
connection with the Borrower’s or any Subsidiary’s acquisition of the Contract
Station subject thereto) and the Obligor party thereto shall not have entered
into a substantially identical agreement relating to the Contract Station to
which such Program Services Agreement relates, or any party to any of the
Program Services Agreements shall default in any of its respective obligations
thereunder and the Broadcast Cash Flow attributable to the Contract
Station(s) subject to such Program Services Agreement(s), either
individually or in the aggregate, for the most recent twelve month period is
equal to or greater than 10% of Broadcast Cash Flow for such period; or

 

(t)  any party to any of the Material Acquisition
Documents shall default in the performance of any of its respective obligations
thereunder, if such default, individually or together with other such defaults,
could reasonably be expected to result in a Material Adverse Effect; or

 

(u)  there shall have been asserted against any
Obligor or any Unrestricted Subsidiary any claim with respect to any
Environmental Liability that, in the judgment of the Required Lenders, is
reasonably likely to be determined adversely to the affected Obligor or
Unrestricted Subsidiary, and the amount thereof could, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Effect
(insofar as such amount is payable by any of the Obligors or the Unrestricted
Subsidiaries after deducting any portion thereof that is reasonably expected to
be paid by other creditworthy Persons jointly and severally liable thereof); or

 

(v)  any
party to any Consent and Agreement shall default in the performance of any of
its obligations thereunder, if such default, individually or together with
other such defaults, could reasonably be expected to result in a Material
Adverse Effect;

 

then, and in every such event (other than an event with respect to any
Obligor described in clause (g) or (h) of this Article),
and at any time thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Required Lenders shall, by
notice to the Borrower, take either or both of the following actions, at the
same or different times: (i) terminate the Commitments, and thereupon the
Commitments shall terminate immediately, and (ii) declare the Loans then
outstanding to be due and payable in whole (or in part, in which case any
principal not so declared to be due and payable may thereafter be declared to
be due and payable), and thereupon the principal of the Loans so declared to be
due and payable, together with accrued interest thereon and all fees and other
obligations of the Obligors accrued hereunder, shall become due and payable
immediately, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by each Obligor; and in case of any

 

97

 

event with respect to any Obligor described in clause (g) or (h) of
this Article, the Commitments shall automatically terminate and the principal
of the Loans then outstanding, together with accrued interest thereon and all
fees and other obligations of the Obligors accrued hereunder, shall
automatically become due and payable, without presentment, demand, protest or
other notice of any kind, all of which are hereby waived by each Obligor.

 

ARTICLE IX

 

THE ADMINISTRATIVE AGENT

 

Each of the Lenders and the Issuing Lender
hereby irrevocably appoints the Administrative Agent as its agent hereunder and
under the other Loan Documents and authorizes the Administrative Agent to take
such actions on its behalf and to exercise such powers as are delegated to the
Administrative Agent by the terms hereof or thereof, together with such actions
and powers as are reasonably incidental thereto.

 

The Person serving as the Administrative
Agent hereunder shall have the same rights and powers in its capacity as a
Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent, and such Person and its Affiliates may accept deposits
from, lend money to and generally engage in any kind of business with the
Borrower or any Subsidiary or other Affiliate thereof as if it were not the
Administrative Agent hereunder.

 

The Administrative Agent shall not have any
duties or obligations except those expressly set forth herein and in the other
Loan Documents.  Without limiting the
generality of the foregoing, (a) the Administrative Agent shall not be
subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing, (b) the Administrative Agent shall
not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or
by the other Loan Documents that the Administrative Agent is required to
exercise in writing by the Required Lenders, and (c) except as expressly
set forth herein and in the other Loan Documents, the Administrative Agent
shall not have any duty to disclose, and shall not be liable for the failure to
disclose, any information relating to the Borrower or any of its Subsidiaries
that is communicated to or obtained by the bank serving as Administrative Agent
or any of its Affiliates in any capacity. 
The Administrative Agent shall not be liable for any action taken or not
taken by it with the consent or at the request of the Required Lenders or in
the absence of its own gross negligence or willful misconduct.  The Administrative Agent shall be deemed not
to have knowledge of any Default unless and until written notice thereof is
given to the Administrative Agent by the Borrower or a Lender, and the
Administrative Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or
in connection with this Agreement or any other Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or
thereunder or in connection herewith or therewith, (iii) the performance
or observance of any of the covenants, agreements or other terms or conditions
set forth herein or therein, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any
other agreement, instrument or document, or (v) the satisfaction of any
condition set forth in Article V or elsewhere herein or

 

98

 

therein, other than to confirm
receipt of items expressly required to be delivered to the Administrative
Agent.

 

The Administrative Agent shall be entitled to
rely upon, and shall not incur any liability for relying upon, any notice,
request, certificate, consent, statement, instrument, document or other writing
believed by it to be genuine and to have been signed or sent by the proper
Person.  The Administrative Agent also
may rely upon any statement made to it orally or by telephone and believed by
it to be made by the proper Person, and shall not incur any liability for
relying thereon.  The Administrative
Agent may consult with legal counsel (who may be counsel for an Obligor),
independent accountants and other experts selected by it, and shall not be
liable for any action taken or not taken by it in accordance with the advice of
any such counsel, accountants or experts.

 

The Administrative Agent may perform any and
all its duties and exercise its rights and powers by or through any one or more
sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such
sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. 
The exculpatory provisions of the preceding paragraphs shall apply to
any such sub-agent and to the Related Parties of the Administrative Agent and
any such sub-agent, and shall apply to their respective activities in
connection with the syndication of the credit facilities provided for herein as
well as activities as Administrative Agent.

 

Subject to the appointment and acceptance of
a successor Administrative Agent as provided in this paragraph, the
Administrative Agent may resign at any time by notifying the Lenders, the
Issuing Lender and the Borrower.  Upon
any such resignation, the Required Lenders shall have the right, in
consultation with the Borrower so long as no Default shall exist, to appoint a
successor from among the Lenders.  If no
successor shall have been so appointed by the Required Lenders and shall have
accepted such appointment within 30 days after the retiring Administrative
Agent gives notice of its resignation, then the retiring Administrative Agent
may, on behalf of the Lenders and the Issuing Lender, appoint a successor
Administrative Agent which shall be a bank with a minimum capital and surplus
of $500,000,000 and with an office in New York, New York, or an Affiliate of
any such bank.  Upon the acceptance of
its appointment as Administrative Agent hereunder by a successor, such
successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent and the retiring
Administrative Agent shall be discharged from its duties and obligations
hereunder.  The fees payable by the
Borrower to a successor Administrative Agent shall be the same as those payable
to its predecessor unless otherwise agreed between the Borrower and such
successor.  After the Administrative
Agent’s resignation hereunder, the provisions of this Article and Section 10.03
shall continue in effect for its benefit in respect of any actions taken or
omitted to be taken by it while it was acting as Administrative Agent.

 

Each Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Lender and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement.  Each Lender also acknowledges
that it will, independently and without reliance upon the Administrative Agent
or any other Lender and based on such documents and

 

99

 

information as it shall from
time to time deem appropriate, continue to make its own decisions in taking or
not taking action under or based upon this Agreement, any other Loan Document
or any related agreement or any document furnished hereunder or thereunder.

 

Except as otherwise provided in Section 10.02(b) with
respect to this Agreement, the Administrative Agent may, with the prior consent
of the Required Lenders (but not otherwise), consent to any modification,
supplement or waiver under any of the Loan Documents, provided that,
without the prior consent of each Lender, the Administrative Agent shall not
(except as provided herein or in the Security Agreement) release all or
substantially all of the collateral or terminate any Lien with respect thereto
under the Security Agreement or alter the relative priorities of the
obligations entitled to the benefits of the Liens created under the Security
Agreement, except that no such consent shall be required, and the
Administrative Agent is hereby authorized, to release any Lien covering
property that is the subject of either a Disposition of property permitted
hereunder or a Disposition to which the Required Lenders have consented.

 

Notwithstanding anything herein to the
contrary, the Sole Lead Arranger and Sole Bookrunner, the Syndication Agents
and the Documentation Agents named on the cover page of this Agreement
shall have no duties or responsibilities hereunder except in their respective
capacity, if any, as a Lender.

 

ARTICLE X

MISCELLANEOUS

 

SECTION 10.01.
 Notices.  (a)  Except in the case of notices and
other communications expressly permitted to be given by telephone (and subject
to paragraph (b) below), all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by
telecopy, as follows:

 

(i)  if to the Borrower or any
Subsidiary Guarantor, to it at Sinclair Television Group, Inc., 10706
Beaver Dam Road, Cockeysville, Maryland 
21030, Attention of David B. Amy and Barry Faber (Telecopy No. (410)
568-1588); with a copy to Thomas & Libowitz, P.A., 100 Light
Street, Baltimore, Maryland  21202,
Attention of Steven Thomas (Telecopy No. (410) 752-2046);

 

(ii)  if to the Holding Company, to it
at Sinclair Broadcast Group, Inc., 10706 Beaver Dam Road, Cockeysville,
Maryland  21030, Attention of David B.
Amy and Barry Faber (Telecopy No. (410) 568-1588); with a copy
to Thomas & Libowitz, P.A., 100 Light Street, Baltimore, Maryland  21202, Attention of Steven Thomas (Telecopy No. (410)
752-2046);

 

(iii)  if to the Administrative Agent,
to JPMorgan Chase Bank, N.A., 1111 Fannin Street, 10th Floor,
Houston, Texas 77002-6925, Attention of Loan and Agency Services

 

100

 

(Telephone No. (713) 750-7919; Telecopy No. (713) 750-2878),
with a copy to JPMorgan Chase Bank, N.A., 270 Park Avenue, New York 10017,
Attention of Tracey Ewing (Telephone No. (212) 270-8916; Telecopy No. (212)
270-5127);

 

(iv)  if to the Issuing Lender, to
JPMorgan Chase Bank, N.A., 10420 Highland Manor Drive, 4th Floor,
Tampa, Florida 33610, Attention of Gina Thomas (Telephone No. (813) 432-6356;
Telecopy No. (813) 432-5161), with a copy to JPMorgan Chase Bank,
N.A., 270 Park Avenue, New York 10017, Attention of Tracey Ewing (Telephone No. (212)
270-8916; Telecopy No. (212) 270-5127);

 

(v)  if to the Swing Line Lender, to
JPMorgan Chase Bank, N.A., 1111 Fannin Street, 10th Floor, Houston,
Texas 77002-6925, Attention of Loan and Agency Services (Telephone No. (713)
750-7919; Telecopy No. (713) 750-2878), with a copy to
JPMorgan Chase Bank, N.A., 270 Park Avenue, New York 10017, Attention of Tracey
Ewing (Telephone No. (212) 270-8916; Telecopy No. (212) 270-5127);
and

 

(vi)  if to any other Lender, to it at
its address (or telecopy number) set forth in its Administrative Questionnaire.

 

(b)  Notices and other communications to the Lenders hereunder may
be delivered or furnished by electronic communications pursuant to procedures
approved by the Administrative Agent; provided that the foregoing shall
not apply to notices pursuant to Article II unless otherwise agreed by the
Administrative Agent and the applicable Lender. 
The Administrative Agent or the Borrower may, in its discretion, agree
to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it; provided that
approval of such procedures may be limited to particular notices or
communications.

 

(c)  Any party hereto may change its address or telecopy number
for notices and other communications hereunder by notice to the other parties
hereto.  All notices and other
communications given to any party hereto in accordance with the provisions of
this Agreement shall be deemed to have been given on the date of receipt.

 

SECTION 10.02.
 Waivers;
Amendments.  (a)  No failure or
delay by the Administrative Agent, the Issuing Lender or any Lender in
exercising any right or power hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power, preclude
any other or further exercise thereof or the exercise of any other right or
power.  The rights and remedies of the
Administrative Agent, the Issuing Lender and the Lenders hereunder are
cumulative and are not exclusive of any rights or remedies that they would
otherwise have.  No waiver of any
provision of this Agreement or consent to any departure by any Obligor
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall
be effective only in the specific instance and for the purpose for which
given.  Without limiting the generality
of the foregoing, the making of a Loan or issuance of a Letter of Credit shall
not be construed as a waiver of any Default,

 

101

 

regardless of whether the
Administrative Agent, any Lender or the Issuing Lender may have had notice or
knowledge of such Default at the time.

 

(b)  Neither this Agreement nor any provision hereof may be
waived, amended or modified except pursuant to an agreement or agreements in
writing entered into by the Borrower and the Required Lenders or by the
Borrower and the Administrative Agent with the consent of the Required Lenders;
provided that no such agreement shall (i) increase the Commitment
of any Lender without the written consent of such Lender, (ii) reduce the
principal amount of any Loan or LC Disbursement or reduce the rate of interest
thereon, or reduce any fees payable hereunder, without the written consent of
each Lender affected thereby, (iii) postpone the scheduled date of payment
of the principal amount of any Loan or LC Disbursement, or any interest
thereon, or any fees payable hereunder, or reduce the amount of, waive or
excuse any such payment, or postpone the scheduled date of expiration of any
Commitment, without the written consent of each Lender affected thereby, (iv) change
Section 2.16(c) or (d) in a manner that would alter the pro
rata sharing of payments required thereby, without the written consent of each
Lender, (v) change any of the provisions of this Section or the
definition of “Required Lenders” or any other provision hereof specifying the
number or percentage of Lenders required to waive, amend or modify any rights
hereunder or make any determination or grant any consent or waiver hereunder,
without the written consent of each Lender, or (vi) release all or
substantially all of the Subsidiary Guarantors from any of their guarantee
obligations under Article III without the written consent of each Lender
(except that no such consent shall be required, and the Administrative Agent is
hereby authorized, to release any Subsidiary Guarantor from such obligations
that is the subject of a Disposition permitted hereunder or to which the
Required Lenders have consented); and provided, further, that
(x) no such agreement shall amend, modify or otherwise affect the rights
or duties of the Administrative Agent, the Issuing Lender or the Swing Line
Lender hereunder without the prior written consent of the Administrative Agent,
the Issuing Lender or the Swing Line Lender, as the case may be, (y) any
modification or supplement of Article III shall require the consent of
each Subsidiary Guarantor and (z) to the extent specified in Section 2.01(c),
this Agreement may be amended to establish Incremental Loan Commitments of any Series pursuant
to an Incremental Loan Amendment executed between the Borrower, the relevant
Lenders of such Series and the Administrative Agent, and any such
Incremental Loan Amendment shall not require the consent of any other party to
this Agreement.

 

Anything in this Agreement to the contrary notwithstanding, no waiver
or modification of any provision of this Agreement that has the effect (either
immediately or at some later time) of enabling the Borrower to satisfy a
condition precedent to the making of a Revolving Loan shall be effective
against the Revolving Lenders for purposes of the Revolving Commitments unless
the Required Revolving Lenders shall have concurred with such waiver or
modification.

 

SECTION 10.03.
 Expenses;
Indemnity; Damage Waiver.  (a) 
The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred
by the Administrative Agent and its Affiliates, including the reasonable fees,
charges and disbursements of counsel for the Administrative Agent, in
connection with the syndication of the credit facilities provided for herein,
the preparation and administration of this Agreement and the other Loan
Documents or

 

102

 

any amendments, modifications
or waivers of the provisions hereof or thereof (whether or not the transactions
contemplated hereby or thereby shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by the Issuing Lender in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand
for payment thereunder, (iii) all reasonable out-of-pocket expenses
incurred by the Administrative Agent, the Issuing Lender or any Lender,
including the reasonable fees, charges and disbursements of any counsel for the
Administrative Agent, the Issuing Lender or any Lender, in connection with the
enforcement or protection of its rights in connection with this Agreement and
the other Loan Documents, including its rights under this Section, or in
connection with the Loans made or Letters of Credit issued hereunder, including
in connection with any workout, restructuring or negotiations in respect
thereof and (iv) all costs, expenses, taxes, assessments and other charges
incurred in connection with any filing, registration, recording or perfection
of any security interest contemplated by the Security Agreement or any other
document referred to therein.

 

(b)  The Borrower shall indemnify the Administrative Agent, the
Issuing Lender and each Lender, and each Related Party of any of the foregoing
Persons (each such Person being called an “Indemnitee”) against, and
hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including the fees, charges and disbursements
of any counsel for any Indemnitee, incurred by or asserted against any
Indemnitee arising out of, in connection with, or as a result of (i) the
execution or delivery of this Agreement or any agreement or instrument contemplated
hereby, the performance by the parties hereto of their respective obligations
hereunder or the consummation of the Transactions or any other transactions
contemplated hereby, (ii) any Loan or Letter of Credit or the use of the
proceeds therefrom (including any refusal by the Issuing Lender to honor a
demand for payment under a Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such
Letter of Credit), (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by the Borrower
or any of its Subsidiaries, or any Environmental Liability related in any way
to the Borrower or any of its Subsidiaries, or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory and
regardless of whether any Indemnitee is a party thereto; provided that
such indemnity shall not, as to any Indemnitee, be available to the extent that
such losses, claims, damages, liabilities or related expenses are determined by
a court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee.

 

(c)  To the extent that the Borrower fails to pay any amount
required to be paid by it to the Administrative Agent, the Issuing Lender or
the Swing Line Lender under paragraph (a) or (b) of this
Section, each Lender severally agrees to pay to the Administrative Agent, the
Issuing Lender or the Swing Line Lender, as the case may be, such Lender’s
Applicable Percentage (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided
that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the
Administrative Agent, the Issuing Lender or the Swing Line Lender in its
capacity as such.

 

(d)  To the extent permitted by applicable law, no Obligor shall
assert, and each

 

103

 

Obligor hereby waives, any
claim against any Indemnitee, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of, this Agreement
or any agreement or instrument contemplated hereby, the Transactions, any Loan
or Letter of Credit or the use of the proceeds thereof.

 

(e)  All amounts due under this Section shall be payable
promptly after written demand therefor.

 

SECTION 10.04.
 Successors
and Assigns.  (a)  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted hereby
(including any Affiliate of the Issuing Lender that issues any Letter of
Credit), except that (i) no Obligor may assign or otherwise transfer any
of its rights or obligations hereunder without the prior written consent of
each Lender (and any attempted assignment or transfer by any Obligor without
such consent shall be null and void) and (ii) no Lender may assign or
otherwise transfer its rights or obligations hereunder except in accordance
with this Section.  Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns
permitted hereby (including any Affiliate of the Issuing Lender that issues any
Letter of Credit), Participants (to the extent provided in paragraph (c) of
this Section) and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent, the Issuing Lender and the
Lenders) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

 

(b)(i) 
Subject to the conditions set forth in paragraph (b)(ii) below, any
Lender may assign to one or more assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitments
and the Loans at the time owing to it) with the prior written consent (such
consent not to be unreasonably withheld) of:

 

(A)  the Borrower, provided that no consent of the Borrower
shall be required for an assignment to a Lender, an Affiliate of a Lender, an
Approved Fund or, if an Event of Default has occurred and is continuing, any
other assignee;

 

(B)  with respect to an assignment of a Revolving Lender’s
Revolving Commitment or a Revolving Lender’s obligations in respect of its
LC Exposure or Swing Line Exposure, the Issuing Lender and the Swing Line
Lender; and

 

(C)  the Administrative Agent, provided
that no consent of the Administrative Agent shall be required for an assignment
of any Term Loan or Incremental Term Loan to a Lender, an Affiliate of a Lender
or an Approved Fund.

 

(ii) Assignments shall be subject to the following additional
conditions:

 

(A) except in the case of an assignment
to a Lender or an Affiliate of a Lender or an assignment of the entire remaining
amount of the assigning Lender’s

 

104

 

Commitment, the amount of the Commitment of the assigning Lender
subject to each such assignment (determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to the Administrative
Agent) shall not be less than $5,000,000 (or, in the case of Term Loans or the
Incremental Term Loans, $1,000,000) and, after giving effect to such
assignment, the assigning Lender shall not have Commitment(s) and/or
Loan(s) less than $5,000,000, unless, in each case, each of the Borrower
and the Administrative Agent otherwise consent, provided that (i) no
such consent of the Borrower shall be required if an Event of Default under Article VIII
has occurred and is continuing and (ii) in the event of concurrent
assignments to two or more funds that are advised or managed by the same
investment advisor, all such concurrent assignments shall be aggregated in
determining compliance with this minimum assignment requirement;

 

(B) each partial assignment of
Commitments or Loans of any Class shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and obligations in
respect of its Commitment and Loans of such Class under this Agreement, provided
that this clause shall not be construed to prohibit assignment of a
proportionate part of all the assigning Lender’s rights and obligations in
respect of one Class of Commitments or Loans;

 

(C) the parties to each assignment shall
execute and deliver to the Administrative Agent an Assignment and Assumption,
together with a processing and recordation fee of $3,500; and

 

(D) the assignee, if it shall not be a
Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire.

 

(iii)  Subject to acceptance and recording thereof pursuant to
paragraph (b)(iv) of this Section, from and after the effective date
specified in each Assignment and Assumption the assignee thereunder shall be a
party hereto and, to the extent of the interest assigned by such Assignment and
Assumption, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Assumption, be released from its obligations
under this Agreement (and, in the case of an Assignment and Assumption covering
all of the assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a party hereto but shall continue to be entitled to
the benefits of Sections 2.13, 2.14, 2.15 and 10.03).  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this Section shall
be treated for purposes of this Agreement as a sale by such Lender of a participation
in such rights and obligations in accordance with paragraph (c) of
this Section.

 

(iv)  The Administrative Agent, acting for this purpose as an
agent of the Borrower, shall maintain at one of its offices a copy of each
Assignment and Assumption delivered to it and a register for the recordation of
the names and addresses of the Lenders, and the Commitment of, and principal
amount of the Loans and LC Disbursements owing to, each Lender pursuant to the
terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, the Issuing Lender and

 

105

 

the Lenders may treat each
Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement, notwithstanding notice to
the contrary.  The Register shall be
available for inspection by the Borrower, the Issuing Lender and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.

 

(v)  Upon its receipt of a duly completed Assignment and
Assumption executed by an assigning Lender and an assignee, the assignee’s
completed Administrative Questionnaire (unless the assignee shall already be a
Lender hereunder), the processing and recordation fee referred to in
paragraph (b) of this Section and any written consent to such
assignment required by paragraph (b) of this Section, the
Administrative Agent shall accept such Assignment and Assumption and record the
information contained therein in the Register. 
No assignment shall be effective for purposes of this Agreement unless
it has been recorded in the Register as provided in this paragraph.

 

(c)(i)  Any Lender may, without the consent of the Borrower, the Administrative
Agent, the Issuing Lender or the Swing Line Lender, sell participations to one
or more banks or other entities (a “Participant”) in all or a portion of
such Lender’s rights and obligations under this Agreement and the other Loan
Documents (including all or a portion of its Commitments and the Loans owing to
it); provided that (A) such Lender’s obligations under this
Agreement and the other Loan Documents shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrower, the Administrative
Agent, the Issuing Lender and the other Lenders shall continue to deal solely
and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement and the other Loan Documents.  Any agreement or instrument pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and the other Loan Documents and to approve
any amendment, modification or waiver of any provision of this Agreement and
the other Loan Documents; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver described in the first proviso
to Section 10.02(b) that affects such Participant.  Subject to paragraph (c)(ii) of
this Section, the Borrower agrees that each Participant shall be entitled to
the benefits of Sections 2.13, 2.14 and 2.15 to the same extent as if it
were a Lender and had acquired its interest by assignment pursuant to
paragraph (b) of this Section. 
To the extent permitted by law, each Participant also shall be entitled
to the benefits of Section 10.08 as though it were a Lender, provided
that such Participant agrees to be subject to Section 2.16(d) as
though it were a Lender.

 

(ii)  A Participant shall not be entitled to receive any greater
payment under Section 2.13 or 2.15 than the applicable Lender would have
been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the Borrower’s prior written consent. 
A Participant that would be a Foreign Lender if it were a Lender shall
not be entitled to the benefits of Section 2.15 unless the Borrower is
notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 2.15(e) as
though it were a Lender.

 

(d)  Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender, including any

 

106

 

pledge or assignment to secure obligations
to a Federal Reserve Bank, and this Section shall not apply to any such
pledge or assignment of a security interest; provided that no such
pledge or assignment of a security interest shall release a Lender from any of
its obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

 

(e)  Anything in this Section to the contrary
notwithstanding, no Lender may assign or participate any interest in any Loan
or LC Exposure held by it hereunder to the Borrower or any of its
Affiliates or Subsidiaries without the prior consent of each Lender.

 

SECTION 10.05.
 Survival.  All covenants, agreements, representations
and warranties made by the Obligors herein and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement shall be
considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of this Agreement and the making of any
Loans and issuance of any Letters of Credit, regardless of any investigation
made by any such other party or on its behalf and notwithstanding that the
Administrative Agent, the Issuing Lender or any Lender may have had notice or
knowledge of any Default or incorrect representation or warranty at the time any
credit is extended hereunder, and shall continue in full force and effect as
long as the principal of or any accrued interest on any Loan or any fee or any
other amount payable under this Agreement is outstanding and unpaid or any
Letter of Credit is outstanding and so long as the Commitments have not expired
or terminated.  The provisions of
Sections 2.13, 2.14, 2.15, 3.03 and 10.03 and Article IX shall
survive and remain in full force and effect regardless of the consummation of
the transactions contemplated hereby, the repayment of the Loans, the
expiration or termination of the Letters of Credit and the Commitments or the
termination of this Agreement or any provision hereof.

 

SECTION 10.06.
 Counterparts;
Integration; Effectiveness.  This
Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract.  This Agreement and any separate letter
agreements with respect to fees payable to the Administrative Agent constitute
the entire contract among the parties relating to the subject matter hereof and
supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. 
Upon the effectiveness of this Agreement as provided in Section 5.01,
this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns.  Delivery of an executed counterpart of a signature
page of this Agreement by telecopy shall be effective as delivery of a
manually executed counterpart of this Agreement.

 

SECTION 10.07.
 Severability.  Any provision of this Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

 

SECTION 10.08.
 Right of
Setoff.  If an Event of Default shall
have occurred and be continuing, each Lender and each of its Affiliates is
hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits

 

107

 

(general or special, time or
demand, provisional or final) at any time held and other obligations at any
time owing by such Lender or Affiliate to or for the credit or the account of
any Obligor against any of and all the obligations of any Obligor now or
hereafter existing under this Agreement held by such Lender, irrespective of
whether or not such Lender shall have made any demand under this Agreement and
although such obligations may be unmatured. 
The rights of each Lender under this Section are in addition to
other rights and remedies (including other rights of setoff) which such Lender
may have.

 

SECTION 10.09.
 Governing
Law; Jurisdiction; Consent to Service of Process.  (a)  This Agreement shall be construed
in accordance with and governed by the law of the State of New York.

 

(b)  Each Obligor hereby irrevocably and unconditionally submits,
for itself and its property, to the nonexclusive jurisdiction of the Supreme
Court of the State of New York sitting in New York County and of the United
States District Court of the Southern District of New York, and any appellate
court from any thereof, in any action or proceeding arising out of or relating
to this Agreement, or for recognition or enforcement of any judgment, and each
of the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined
in such New York State or, to the extent permitted by law, in such Federal
court.  Each of the parties hereto agrees
that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law.  Nothing in this
Agreement shall affect any right that the Administrative Agent, the Issuing
Lender or any Lender may otherwise have to bring any action or proceeding
relating to this Agreement against any Obligor or its properties in the courts
of any jurisdiction.

 

(c)  Each Obligor hereby irrevocably and unconditionally waives,
to the fullest extent it may legally and effectively do so, any objection which
it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement in any court referred
to in paragraph (b) of this Section. 
Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

 

(d)  Each party to this Agreement irrevocably consents to service
of process in the manner provided for notices in Section 10.01.  Nothing in this Agreement will affect the
right of any party to this Agreement to serve process in any other manner
permitted by law.

 

SECTION 10.10.
 WAIVER OF
JURY TRIAL.  EACH PARTY HERETO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER

 

108

 

AND (B) ACKNOWLEDGES THAT
IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

SECTION 10.11.
 Headings.  Article and Section headings and
the Table of Contents used herein are for convenience of reference only, are
not part of this Agreement and shall not affect the construction of, or be
taken into consideration in interpreting, this Agreement.

 

SECTION 10.12.
 Confidentiality.  Each of the Administrative Agent, the Issuing
Lender and the Lenders agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to
its and its Affiliates’ directors, officers, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority, (c) to
the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party to this Agreement, (e) in
connection with the exercise of any remedies hereunder or under any other Loan Document
or any suit, action or proceeding relating to this Agreement or under any other
Loan Document or the enforcement of rights hereunder or thereunder, (f) subject
to an agreement containing provisions substantially the same as those of this
Section, to (i) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this
Agreement or (ii) any actual or prospective counterparty (or its advisors)
to any swap or derivative transaction relating to the Borrower and its
obligations, (g) with the consent of the Borrower or (h) to the
extent such Information (i) becomes publicly available other than as a
result of a breach of this Section or (ii) becomes available to the
Administrative Agent, the Issuing Lender or any Lender on a nonconfidential
basis from a source other than an Obligor. 
For the purposes of this Section, “Information” means all
information received from any Obligor relating to the Obligors or any of their
respective businesses, other than any such information that is available to the
Administrative Agent, the Issuing Lender or any Lender on a nonconfidential
basis prior to disclosure by an Obligor; provided that, in the case of
information received from an Obligor after the date hereof, such information is
clearly identified at the time of delivery as confidential.  Any Person required to maintain the
confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

 

SECTION 10.13.  Cure of Defaults by the Administrative
Agent or the Lenders. 
Notwithstanding anything contained herein to the contrary, the
Administrative Agent or any Lender may in its sole discretion, but shall not be
obligated to, (a) cure any monetary default under any Program Services
Agreement or (b) cure, by monetary payment or by performance, any default
under any lease or option agreement to which the Borrower or any Subsidiary is
a party.  In each case referred to in the
foregoing clauses (a) and (b), the Borrower shall reimburse the
Administrative Agent or such Lender for any such payment, and shall indemnify
the Administrative Agent or such Lender for any and all costs and expenses
(including the fees and expenses of counsel) incurred by the Administrative
Agent or such Lender in connection with any such performance, in each case with
interest, at the Alternate Base Rate plus the Applicable

 

109

 

Rate, payable from the date of
such payment or performance by the Administrative Agent or such Lender to the
date of reimbursement by the Borrower. 
Without limiting the generality of the foregoing, the Administrative
Agent or any Lender may in its sole discretion, but shall not be obligated to,
cure, by monetary payment or by performance, any default as permitted by any
Consent and Agreement and the Borrower shall reimburse the Administrative Agent
or such Lender for any such payment, and shall indemnify the Administrative
Agent or such Lender for any and all costs and expenses (including the fees and
expenses of counsel) incurred by the Administrative Agent or such Lender in
connection with any such performance, in each case with interest, at the
Alternate Base Rate plus the Applicable Rate, payable from the date
of such payment or performance by the Administrative Agent or such Lender to
the date of reimbursement by the Borrower.

 

SECTION 10.14.  USA PATRIOT Act.  Each Lender hereby notifies the Obligors that
pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)), it may be required to
obtain, verify and record information that identifies the Obligors, which
information includes the name and address of the Obligors and other information
that will allow such Lender to identify the Obligors in accordance with said
Act.

 

SECTION 10.15.  Waivers under Existing Credit Agreement;
Effect of Amendment and Restatement.

 

(a)  The Administrative Agent and each
Lender party to the Existing Credit Agreement, by its execution and delivery of
this Agreement, hereby (i) waive the prepayment notice requirements
pursuant to Section 2.09 of the Existing Credit Agreement in connection
with the prepayments contemplated to be made hereunder on the Second
Restatement Effective Date and (b) acknowledge and agree that the loans
outstanding under the Existing Credit Agreement are being prepaid in full as of
the Second Restatement Effective Date.

 

(b)  On the Second Restatement Effective
Date, the Existing Credit Agreement shall be amended and restated in its
entirety.  The parties hereto acknowledge
and agree that (i) this Agreement and the other Loan Documents, whether
executed and delivered in connection herewith or otherwise, do not constitute a
termination of the obligations under the Existing Credit Agreement as in effect
immediately prior to the Second Restatement Effective Date to the extent such
obligations remain outstanding hereunder, (ii) such obligations are in all
respects continuing (as amended and restated hereby), (iii) the Liens and
security interests as granted under the Security Documents securing payment of
such obligations are in all respects continuing and in full force and effect
and (iv) references in the Security Documents to the “Credit Agreement”
(or words of like import) shall be deemed to be references to this Agreement,
and to the extent necessary to effect the foregoing, each such Security
Document is hereby deemed amended accordingly.

 

(c)  On the Second Restatement Effective
Date, each Lender party hereto agrees, by its execution and delivery of this
Agreement, that (i) it is or shall become a Lender under, and party to,
this Agreement with a Commitment in the respective amount(s) set forth opposite
such Lender’s name on Schedule 1.01(a) and (ii) each Person (if
any) that is a “Lender” under the

 

110

 

Existing Credit Agreement but
is not a Lender hereunder shall cease to be a “Lender” under the Existing
Credit Agreement effective as of the Second Restatement Effective Date and such
Person shall have no obligations or liabilities under this Agreement.

 

(d)  On the Second Restatement Effective
Date, the Holding Company agrees, by its execution and delivery of this
Agreement, that it shall become a “Guarantor” hereunder and a party hereto and
shall have all of the respective obligations and liabilities ascribed to a
Guarantor and to the Holding Company hereunder and under the other Loan
Documents (and the Lenders agrees that, as of the Second Restatement Effective
Date, the Holding Company Guarantee and Pledge Agreement (as defined in the
Existing Credit Agreement) as in effect immediately prior to the Second
Restatement Effective Date shall be superseded by this Agreement and the
Security Agreement and cease to have any further effect).

 

111

 

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

 

	
   

  	
  BORROWER

  
	
   

  	
   

  
	
   

  	
  SINCLAIR TELEVISION GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David B.
  Amy

  	
   

  
	
   

  	
   

  	
  Name: David
  B. Amy

  
	
   

  	
   

  	
  Title:
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for
  the Borrower:

  
	
   

  	
  10706 Beaver
  Dam Road

  
	
   

  	
  Cockeysville,
  Maryland 21030

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Tax I.D.
  Number for the Borrower:

  
	
   

  	
  55-0829972

  

 

112

 

	
   

  	
  HOLDING
  COMPANY

  
	
   

  	
   

  
	
   

  	
  SINCLAIR BROADCAST GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David B.
  Amy

  	
   

  
	
   

  	
   

  	
  Name: David
  B. Amy

  	
   

  
	
   

  	
   

  	
  Title:
  Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for
  the Holding Company:

  	
   

  
	
   

  	
  10706 Beaver
  Dam Road

  	
   

  
	
   

  	
  Cockeysville,
  Maryland 21030

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Tax I.D.
  Number for the Holding Company:

  	
   

  
	
   

  	
  52-1494660

  	
   

  
					

 

113

 

	
   

  	
  SUBSIDIARY GUARANTORS

  
	
   

  	
   

  
	
   

  	
  KSMO, INC.

  
	
   

  	
  WCGV, INC.

  
	
   

  	
  SINCLAIR ACQUISITION IV, INC.

  
	
   

  	
  WLFL, INC.

  
	
   

  	
  SINCLAIR MEDIA I, INC.

  
	
   

  	
  WSMH, INC.

  
	
   

  	
  SINCLAIR MEDIA II, INC.

  
	
   

  	
  WSTR LICENSEE, INC.

  
	
   

  	
  WGME, INC.

  
	
   

  	
  SINCLAIR MEDIA III, INC.

  
	
   

  	
  WTTO, INC.

  
	
   

  	
  WTVZ, INC.

  
	
   

  	
  WYZZ, INC.

  
	
   

  	
  KOCB, INC.

  
	
   

  	
  KSMO LICENSEE, INC.

  
	
   

  	
  WDKY, INC.

  
	
   

  	
  WYZZ LICENSEE, INC.

  
	
   

  	
  KLGT, INC.

  
	
   

  	
  SINCLAIR TELEVISION COMPANY II, INC.

  
	
   

  	
  WSYX LICENSEE, INC.

  
	
   

  	
  WGGB, INC.

  
	
   

  	
  WTWC, INC.

  
	
   

  	
  SINCLAIR COMMUNICATIONS II, INC.

  
	
   

  	
  SINCLAIR HOLDINGS I, INC.

  
	
   

  	
  SINCLAIR HOLDINGS II, INC.

  
	
   

  	
  SINCLAIR HOLDINGS III, INC.

  
	
   

  	
  SINCLAIR TELEVISION COMPANY, INC.

  
	
   

  	
  SINCLAIR TELEVISION OF BUFFALO, INC.

  
	
   

  	
  SINCLAIR TELEVISION OF CHARLESTON, INC.

  
	
   

  	
  SINCLAIR TELEVISION OF NASHVILLE, INC.

  
	
   

  	
  SINCLAIR TELEVISION OF NEVADA, INC.

  
	
   

  	
  SINCLAIR TELEVISION OF TENNESSEE, INC.

  
	
   

  	
  SINCLAIR TELEVISION LICENSE HOLDER, INC.

  
	
   

  	
  SINCLAIR TELEVISION OF DAYTON, INC.

  
	
   

  	
  SINCLAIR ACQUISITION VII, INC.

  
	
   

  	
  SINCLAIR ACQUISITION VIII, INC.

  
	
   

  	
  SINCLAIR ACQUISITION IX, INC.

  
	
   

  	
  SINCLAIR ACQUISITION X, INC.

  
	
   

  	
  MONTECITO BROADCASTING CORPORATION

  
	
   

  	
  CHANNEL 33, INC.

  
	
   

  	
  WNYO, INC.

  

 

114

 

	
   

  	
  NEW YORK TELEVISION, INC.

  
	
   

  	
  BIRMINGHAM (WABM-TV) LICENSEE, INC.

  
	
   

  	
  RALEIGH (WRDC-TV) LICENSEE, INC.

  
	
   

  	
  SAN ANTONIO (KRRT-TV) LICENSEE, INC.

  
	
   

  	
  WVTV LICENSEE, INC.

  
	
   

  	
  SINCLAIR PROPERTIES, LLC

  
	
   

  	
  SINCLAIR PROPERTIES II, LLC

  
	
   

  	
   

  
	
   

  	
  KBSI LICENSEE L.P.

  
	
   

  	
  WMMP LICENSEE L.P.

  
	
   

  	
  WSYT LICENSEE L.P.

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Sinclair Properties, LLC, General

  Partner

  
	
   

  	
   

  
	
   

  	
  WEMT LICENSEE L.P.

  
	
   

  	
  WKEF LICENSEE L.P.

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Sinclair Properties II, LLC, General

  Partner

  
	
   

  	
   

  
	
   

  	
  WGME LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  WGME, Inc., Member

  
	
   

  	
   

  
	
   

  	
  WICD LICENSEE, LLC

  
	
   

  	
  WICS LICENSEE, LLC

  
	
   

  	
  KGAN LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Sinclair
  Acquisition IV, Inc.,

  Member

  
	
   

  	
   

  
	
   

  	
  WSMH LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  WSMH, Inc., Member

  
	
   

  	
   

  
	
   

  	
  WPGH LICENSEE, LLC

  
	
   

  	
  KDNL LICENSEE, LLC

  
	
   

  	
  WCWB LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Sinclair Media I, Inc., Member

  
	
   

  	
   

  
	
   

  	
  WTVZ LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  WTVZ, Inc., Member

  
	
   

  	
   

  
	
   

  	
  KLGT LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  KLGT, Inc., Member

  
	
   

  	
   

  
	
   

  	
  WCGV LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  WCGV, Inc., Member

  

 

115

 

	
   

  	
  SCI – INDIANA LICENSEE, LLC

  
	
   

  	
  KUPN LICENSEE, LLC

  
	
   

  	
  WEAR LICENSEE, LLC

  
	
   

  	
  WFGX LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Sinclair Media II, Inc., Member

  
	
   

  	
   

  
	
   

  	
  WLFL LICENSEE, LLC

  
	
   

  	
  WRDC, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  WLFL, Inc. – Member

  
	
   

  	
   

  
	
   

  	
  WTTO LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  WTTO, Inc., Member

  
	
   

  	
   

  
	
   

  	
  WTWC LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  WTWC, Inc., Member

  
	
   

  	
   

  
	
   

  	
  WGGB LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  WGGB, Inc., Member

  
	
   

  	
   

  
	
   

  	
  KOCB LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  KOCB, Inc., Member

  
	
   

  	
   

  
	
   

  	
  WDKY LICENSEE, LLC

  
	
   

  	
  KOKH, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  WDKY, Inc., Member

  
	
   

  	
   

  
	
   

  	
  KOKH LICENSEE, LLC,

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  KOKH, LLC, sole Member of

  KOKH Licensee, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  WDKY, Inc., sole Member of

  KOKH, LLC

  
	
   

  	
   

  
	
   

  	
  WUPN LICENSEE, LLC

  
	
   

  	
  WUTV LICENSEE, LLC

  
	
   

  	
  WXLV LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Sinclair Television of Buffalo, Inc.,

  Member

  
	
   

  	
   

  
	
   

  	
  WUXP LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Sinclair Television of Tennessee,

  Inc., Member

  

 

116

 

	
   

  	
  WCHS LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Sinclair Media III, Inc., Member

  
	
   

  	
   

  
	
   

  	
  SINCLAIR FINANCE, LLC

  
	
   

  	
  SINCLAIR FINANCE HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  KLGT, Inc., Member

  
	
   

  	
   

  
	
   

  	
  WZTV LICENSEE, LLC

  
	
   

  	
  WVAH LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Sinclair Television of Nashville,

  Inc., Member

  
	
   

  	
   

  
	
   

  	
  WMSN LICENSEE, LLC

  
	
   

  	
  WUHF LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Sinclair Television Company,

  Inc., Member

  
	
   

  	
   

  
	
   

  	
  WTAT LICENSEE, LLC

  
	
   

  	
  WRLH LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Sinclair Television of Charleston, Inc.,

  Member

  
	
   

  	
   

  
	
   

  	
  WRGT LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Sinclair Television of Dayton, Inc.,

  Member

  
	
   

  	
   

  
	
   

  	
  SINCLAIR NEWSCENTRAL, LLC

  
	
   

  	
  CHESAPEAKE TELEVISION LICENSEE,
  LLC

  
	
   

  	
  KABB
  LICENSEE, LLC

  
	
   

  	
  SCI –
  SACRAMENTO LICENSEE, LLC

  
	
   

  	
  WLOS
  LICENSEE, LLC

  
	
   

  	
  SAN
  ANTONIO TELEVISION, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Sinclair Communications, LLC, Sole

  Member

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Sinclair Television Group, Inc., Sole

  Member of Sinclair

  Communications, LLC

  
	
   

  	
   

  
	
   

  	
  SINCLAIR PROGRAMMING COMPANY, LLC

  
	
   

  	
  SINCLAIR COMMUNICATIONS, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Sinclair Television Group, Inc.,

  Member

  

 

117

 

	
   

  	
  KDSM, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Sinclair Broadcast Group, Inc.,

  Member

  
	
   

  	
   

  
	
   

  	
  KDSM LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  KDSM, LLC, Sole Member of

  KDSM Licensee, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Sinclair Broadcast Group, Inc., Sole

  Member of KDSM, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ David B. Amy

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  David B. Amy, in his capacity as Executive

  Vice President, Secretary or Manager, as the

  case may be

  
					

 

118

 

	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
  individually, as Swing Line Lender, as
  Issuing

  Lender and as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tracey Navin Ewing

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Tracey Navin Ewing

  
	
   

  	
   

  	
  Title: Vice President

  

 

119

 

	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY AMERICAS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susan Lefevre

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Susan Lefevre

  	
   

  
	
   

  	
   

  	
  Title: Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marguerite Sutton

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Marguerite Sutton

  	
   

  
	
   

  	
   

  	
  Title: Director

  	
   

  

 

120

 

	
   

  	
  WACHOVIA
  BANK, NATIONAL

  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Suddreth

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Scott Suddreth

  
	
   

  	
   

  	
  Title: Vice President

  

 

121

 

	
   

  	
  BNP PARIBAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregg Bonardi

  	
   

  
	
   

  	
   

  	
  Name: Gregg Bonardi

  
	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Ola Anderssen

  	
   

  
	
   

  	
   

  	
  Name: Ola Anderssen

  
	
   

  	
   

  	
  Title: Director

  

 

122

 

	
   

  	
  ING CAPITAL LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bill James

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Bill James

  
	
   

  	
   

  	
  Title: Managing Director

  

 

123

 

	
   

  	
  SUMITOMO
  MITSUI BANKING

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David A. Buck

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: David A. Buck

  
	
   

  	
   

  	
  Title: Senior Vice President

  

 

124

 

	
   

  	
  BEAR STEARNS CORPORATE LENDING INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard Bram Smith

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Richard Bram Smith

  
	
   

  	
   

  	
  Title: Vice President

  

 

125

 

	
   

  	
  MIZUHO CORPORATE BANK, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark Gronich

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Mark Gronich

  
	
   

  	
   

  	
  Title: Senior Vice President

  

 

126

 

	
   

  	
  UBS LOAN FINANCE LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wilfred V. Saint

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Wilfred V. Saint

  
	
   

  	
   

  	
  Title: Director – Banking Products
  Services, US

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward Cripps

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Edward Cripps

  
	
   

  	
   

  	
  Title: Director – Banking Products
  Services, US

  

 

127

 

	
   

  	
  ALLIED IRISH BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Hilary Patterson

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Hilary Patterson

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roisin O’Connell

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Roisin O’ Connell

  
	
   

  	
   

  	
  Title: Assistant Vice President

  

 

128

 

	
   

  	
  LEHMAN COMMERCIAL PAPER INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ V. Paul Arzoulan

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: V. Paul Arzoulan

  
	
   

  	
   

  	
  Title: Authorized Signatory

  

 

129

 

SCHEDULE 1.01(a)

 

Commitments

 

	
  LENDER

  	
   

  	
  Revolving

  Commitment

  	
   

  	
  Term Loan

  Commitment

  	
   

  	
  Total Commitment

  	
   

  
	
  JPMorgan
  Chase Bank, N.A.

  	
   

  	
  $

  	
  28,636,363.64

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  	
  $

  	
  48,636,363.64

  	
   

  
	
  Deutsche Bank Trust Company Americas

  	
   

  	
  $

  	
  22,272,727.27

  	
   

  	
  $

  	
  12,727,272.73

  	
   

  	
  $

  	
  35,000,000.00

  	
   

  
	
  Wachovia Bank, N.A.

  	
   

  	
  $

  	
  22,272,727.27

  	
   

  	
  $

  	
  12,727,272.73

  	
   

  	
  $

  	
  35,000,000.00

  	
   

  
	
  BNP Paribas

  	
   

  	
  $

  	
  22,272,727.27

  	
   

  	
  $

  	
  12,727,272.73

  	
   

  	
  $

  	
  35,000,000.00

  	
   

  
	
  ING Capital LLC

  	
   

  	
  $

  	
  22,272,727.27

  	
   

  	
  $

  	
  12,727,272.73

  	
   

  	
  $

  	
  35,000,000.00

  	
   

  
	
  Sumitomo Mitsui Banking Corporation

  	
   

  	
  $

  	
  15,909,090.91

  	
   

  	
  9,090,090.09

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  
	
  Bear Stearns Corporate Lending Inc.

  	
   

  	
  $

  	
  9,545,454.55

  	
   

  	
  5,454,545.45

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  
	
  Mizuho Corporate Bank, Ltd.

  	
   

  	
  $

  	
  9,545,454.55

  	
   

  	
  5,454,545.45

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  
	
  UBS Loan Finance LLC

  	
   

  	
  $

  	
  9,545,454.55

  	
   

  	
  5,454,545.45

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  
	
  Allied Irish Bank

  	
   

  	
  $

  	
  6,363,636.36

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  6,363,636.36

  	
   

  
	
  Lehman Commercial Paper, Inc.

  	
   

  	
  $

  	
  6,363,636.36

  	
   

  	
  $

  	
  3,636,363.64

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  175,000,000.00

  	
   

  	
  $

  	
  100,000,000.00

  	
   

  	
  $

  	
  275,000,000.00

  	
   

  

 

 

Schedule 1.01(b)

 

Existing Senior Subordinated Note Indentures

 

1.               Indenture, dated as of December 10,
2001, as heretofore amended, among Sinclair Television Group, Inc. (as
issuer), the Guarantors named therein (as guarantors) and First Union National
Bank (as trustee).

 

2.               Indenture, dated as of March 14,
2002, as heretofore amended, among Sinclair Television Group, Inc. (as
issuer), the Guarantors named therein (as guarantors) and First Union National
Bank (as trustee).

 

 

Schedule 1.01(c)

 

Unrestricted
Subsidiaries

 

	
  1.

  	
   

  	
  Acrodyne Communications, Inc.

  
	
  2.

  	
   

  	
  Allegiance Capital, LP

  
	
  3.

  	
   

  	
  G1440 Holdings, Inc. (f/k/a G1440, Inc.)

  
	
  4.

  	
   

  	
  Sinclair Acquisition XI, Inc.

  
	
  5.

  	
   

  	
  Sinclair Acquisition XII, Inc.

  
	
  6.

  	
   

  	
  Sinclair Acquisition XIII, Inc.

  
	
  7.

  	
   

  	
  Sinclair Acquisition XIV, Inc.

  
	
  8.

  	
   

  	
  Sinclair Acquisition XV, Inc.

  
	
  9.

  	
   

  	
  Sinclair Radio of St. Louis, Inc.

  
	
  10.

  	
   

  	
  Sinclair Ventures, Inc.

  
	
  11.

  	
   

  	
  Tuscaloosa Broadcasting, Inc.

  
	
  12.

  	
   

  	
  G1440, LLC

  
	
  13.

  	
   

  	
  Builder1440, LLC

  
	
  14.

  	
   

  	
  I1440, LLC

  
	
  15.

  	
   

  	
  Acrodyne Industries Inc.

  
	
  16.

  	
   

  	
  Highwoods Joint Venture

  

 

 

Schedule 1.03

 

Owned And
Contract Stations

 

	
  Market

  	
   

  	
  Stations

  	
   

  	
  Status

  	
   

  	
  Channel

  	
   

  	
  Affiliation

  
	
  Minneapolis/St. Paul,Minnesota

  	
   

  	
  KMWB

  	
   

  	
  Owned

  	
   

  	
  23

  	
   

  	
  WB

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tampa, Florida

  	
   

  	
  WTTA

  	
   

  	
  Contract

  	
   

  	
  38

  	
   

  	
  WB

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pittsburgh, Pennsylvania

  	
   

  	
  WPGH

  	
   

  	
  Owned

  	
   

  	
  53

  	
   

  	
  FOX

  
	
   

  	
   

  	
  WCWB

  	
   

  	
  Owned

  	
   

  	
  22

  	
   

  	
  WB

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  St. Louis, Missouri

  	
   

  	
  KDNL

  	
   

  	
  Owned

  	
   

  	
  30

  	
   

  	
  ABC

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Baltimore, Maryland

  	
   

  	
  WBFF

  	
   

  	
  Owned

  	
   

  	
  45

  	
   

  	
  FOX

  
	
   

  	
   

  	
  WNUV

  	
   

  	
  Contract

  	
   

  	
  54

  	
   

  	
  WB

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Raleigh/Durham, North Carolina

  	
   

  	
  WLFL

  	
   

  	
  Owned

  	
   

  	
  22

  	
   

  	
  WB

  
	
   

  	
   

  	
  WRDC

  	
   

  	
  Owned

  	
   

  	
  28

  	
   

  	
  UPN

  

 

 

	
  Market

  	
   

  	
  Stations

  	
   

  	
  Status

  	
   

  	
  Channel

  	
   

  	
  Affiliation

  
	
  Cincinnati, Ohio

  	
   

  	
  WSTR

  	
   

  	
  Owned

  	
   

  	
  64

  	
   

  	
  WB

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Milwaukee, Wisconsin

  	
   

  	
  WCGV

  	
   

  	
  Owned

  	
   

  	
  24

  	
   

  	
  UPN

  
	
   

  	
   

  	
  WVTV

  	
   

  	
  Owned

  	
   

  	
  18

  	
   

  	
  WB

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kansas City, Missouri

  	
   

  	
  KSMO

  	
   

  	
  Owned

  Held for sale

  	
   

  	
  62

  	
   

  	
  WB

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nashville, Tennessee

  	
   

  	
  WZTV

  	
   

  	
  Owned

  	
   

  	
  17

  	
   

  	
  FOX

  
	
   

  	
   

  	
  WUXP

  	
   

  	
  Owned

  	
   

  	
  30

  	
   

  	
  UPN

  
	
   

  	
   

  	
  WNAB

  	
   

  	
  Contract/

  Ownership

  Pending

  	
   

  	
  58

  	
   

  	
  WB

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Columbus, Ohio

  	
   

  	
  WTTE

  	
   

  	
  Contract

  	
   

  	
  28

  	
   

  	
  FOX

  
	
   

  	
   

  	
  WSYX

  	
   

  	
  Owned

  	
   

  	
  6

  	
   

  	
  ABC

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Asheville, North Carolina and Greenville/ Spartanburg/Anderson, South
  Carolina

  	
   

  	
  WBSC

  	
   

  	
  Contract /

  Ownership

  Pending

  	
   

  	
  40

  	
   

  	
  WB

  
	
   

  	
   

  	
  WLOS

  	
   

  	
  Owned

  	
   

  	
  13

  	
   

  	
  ABC

  

 

 

	
  Market

  	
   

  	
  Stations

  	
   

  	
  Status

  	
   

  	
  Channel

  	
   

  	
  Affiliation

  
	
  San Antonio, Texas

  	
   

  	
  KABB

  	
   

  	
  Owned

  	
   

  	
  29

  	
   

  	
  FOX

  
	
   

  	
   

  	
  KRRT

  	
   

  	
  Owned

  	
   

  	
  35

  	
   

  	
  WB

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Norfolk, Virginia

  	
   

  	
  WTVZ

  	
   

  	
  Owned

  	
   

  	
  33

  	
   

  	
  WB

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Buffalo, New York

  	
   

  	
  WUTV

  	
   

  	
  Owned

  	
   

  	
  29

  	
   

  	
  FOX

  
	
   

  	
   

  	
  WNYO

  	
   

  	
  Owned

  	
   

  	
  49

  	
   

  	
  WB

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Oklahoma City, Oklahoma

  	
   

  	
  KOCB

  	
   

  	
  Owned

  	
   

  	
  34

  	
   

  	
  WB

  
	
   

  	
   

  	
  KOKH

  	
   

  	
  Owned

  	
   

  	
  25

  	
   

  	
  FOX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greensboro/Winston-Salem/High Point, North Carolina

  	
   

  	
  WXLV

  	
   

  	
  Owned

  	
   

  	
  45

  	
   

  	
  ABC

  
	
   

  	
   

  	
  WUPN

  	
   

  	
  Owned

  	
   

  	
  48

  	
   

  	
  UPN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Birmingham, Alabama

  	
   

  	
  WTTO

  	
   

  	
  Owned

  	
   

  	
  21

  	
   

  	
  WB

  
	
   

  	
   

  	
  WABM

  	
   

  	
  Owned

  	
   

  	
  68

  	
   

  	
  UPN

  

 

 

	
  Market

  	
   

  	
  Stations

  	
   

  	
  Status

  	
   

  	
  Channel

  	
   

  	
  Affiliation

  
	
  Dayton, Ohio

  	
   

  	
  WKEF

  	
   

  	
  Owned

  	
   

  	
  22

  	
   

  	
  ABC

  
	
   

  	
   

  	
  WRGT

  	
   

  	
  Contract

  	
   

  	
  45

  	
   

  	
  FOX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Charleston/Huntington,West Virginia

  	
   

  	
  WCHS

  	
   

  	
  Owned

  	
   

  	
  8

  	
   

  	
  ABC

  
	
   

  	
   

  	
  WVAH

  	
   

  	
  Contract

  	
   

  	
  11

  	
   

  	
  FOX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Richmond, Virginia

  	
   

  	
  WRLH

  	
   

  	
  Owned

  	
   

  	
  35

  	
   

  	
  FOX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Las Vegas, Nevada

  	
   

  	
  KVWB

  	
   

  	
  Owned

  	
   

  	
  21

  	
   

  	
  WB

  
	
   

  	
   

  	
  KFBT

  	
   

  	
  Owned

  	
   

  	
  33

  	
   

  	
  IND*

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mobile, Alabama and Pensacola, Florida

  	
   

  	
  WEAR

  	
   

  	
  Owned

  	
   

  	
  3

  	
   

  	
  ABC

  
	
   

  	
   

  	
  WFGX

  	
   

  	
  Owned

  	
   

  	
  35

  	
   

  	
  IND*

  

 

 

	
  Market

  	
   

  	
  Stations

  	
   

  	
  Status

  	
   

  	
  Channel

  	
   

  	
  Affiliation

  
	
  Flint/Saginaw/Bay City,Michigan

  	
   

  	
  WSMH

  	
   

  	
  Owned

  	
   

  	
  66

  	
   

  	
  FOX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lexington, Kentucky

  	
   

  	
  WDKY

  	
   

  	
  Owned

  	
   

  	
  56

  	
   

  	
  FOX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Des Moines, Iowa

  	
   

  	
  KDSM

  	
   

  	
  Owned

  	
   

  	
  17

  	
   

  	
  FOX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Syracuse, New York

  	
   

  	
  WSYT

  	
   

  	
  Owned

  	
   

  	
  68

  	
   

  	
  FOX

  
	
   

  	
   

  	
  WNYS

  	
   

  	
  Contract

  	
   

  	
  43

  	
   

  	
  WB

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rochester, New York

  	
   

  	
  WUHF

  	
   

  	
  Owned

  	
   

  	
  31

  	
   

  	
  FOX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Paducah, Kentucky and Cape Girardeau,Missouri

  	
   

  	
  KBSI

  	
   

  	
  Owned

  	
   

  	
  23

  	
   

  	
  FOX

  
	
   

  	
   

  	
  WDKA

  	
   

  	
  Contract

  	
   

  	
  49

  	
   

  	
  WB

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Portland, Maine

  	
   

  	
  WGME

  	
   

  	
  Owned

  	
   

  	
  13

  	
   

  	
  CBS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Madison, Wisconsin

  	
   

  	
  WMSN

  	
   

  	
  Owned

  	
   

  	
  47

  	
   

  	
  FOX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cedar Rapids, Iowa

  	
   

  	
  KGAN

  	
   

  	
  Owned

  	
   

  	
  2

  	
   

  	
  CBS

  

 

 

	
  Market

  	
   

  	
  Stations

  	
   

  	
  Status

  	
   

  	
  Channel

  	
   

  	
  Affiliation

  
	
  Tri-Cities, Tennessee/Virginia

  	
   

  	
  WEMT

  	
   

  	
  Owned

  Held for Sale

  	
   

  	
  39

  	
   

  	
  FOX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Springfield, Massachusetts

  	
   

  	
  WGGB

  	
   

  	
  Owned

  	
   

  	
  40

  	
   

  	
  ABC

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Peoria/Bloomington,Illinois

  	
   

  	
  WYZZ

  	
   

  	
  Owned

  	
   

  	
  43

  	
   

  	
  FOX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Charleston, South Carolina

  	
   

  	
  WMMP

  	
   

  	
  Owned

  	
   

  	
  36

  	
   

  	
  UPN

  
	
   

  	
   

  	
  WTAT

  	
   

  	
  Contract

  	
   

  	
  24

  	
   

  	
  FOX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tallahassee, Florida

  	
   

  	
  WTWC

  	
   

  	
  Owned

  	
   

  	
  40

  	
   

  	
  NBC

  
	
   

  	
   

  	
  WTXL

  	
   

  	
  Contract

  	
   

  	
  27

  	
   

  	
  ABC

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tuscaloosa, Alabama

  	
   

  	
  WDBB

  	
   

  	
  Contract

  	
   

  	
  17

  	
   

  	
  WB

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Springfield/Champaign, Illinois

  	
   

  	
  WICS

  	
   

  	
  Owned

  	
   

  	
  20

  	
   

  	
  NBC

  
	
   

  	
   

  	
  WICD

  	
   

  	
  Owned

  	
   

  	
  15

  	
   

  	
  NBC

  

 

Note

 

“IND” or “Independent”
refers to a station that is not affiliated with any of ABC, CBS, NBC, Fox, WB
or UPN.

 

 

Schedule 4.06(a)

 

Litigation

 

There has been some controversy surrounding
the airing in 2004 of a news program, POW
Story: Politics, Pressure, and the Media.  Just before the
presidential election, we received a formal letter demanding that we sue three
of our directors for insider trading.  Our outside counsel responded to the
letter by noting to its writer that the allegations supporting the claims of
insider trading were objectively incorrect.  Outside counsel also advised
the writer that the action demanded by the letter, even if based upon accurate
facts, failed to support a shareholder derivative suit or any action by us on
the demand.  We have received no further communication from this
writer.  Lastly, certain parties filed formal complaints against us with
the Federal Communications Commission (FCC) and the Federal Election Commission
(FEC).  The complaint filed with the FCC was withdrawn, and we have filed
a response to the complaints with the FEC.  Based on the information
currently available, we have no reason to believe that the FEC complaint has
merit.  We believe that we have appropriately responded to this
controversy and that there will be no material adverse effect on our
consolidated financial position, consolidated results of operations or
consolidated cash flows.

 

On November 1,
2004, an organization calling itself “Free Press” filed a petition with the FCC
to deny the license renewal applications of six of our stations (WXLV-TV,
Winston-Salem, North Carolina; WUPN-TV, Greensboro, North Carolina; WLFL-TV,
Raleigh/Durham, North Carolina; WRDC-TV, Raleigh/Durham, North Carolina;
WLOS-TV, Asheville, North Carolina; and WMMP-TV, Charleston, South Carolina)
and two Cunningham Broadcasting Corporation stations (WBSC-TV, Anderson, South
Carolina and WTAT-TV, Charleston, South Carolina), which are programmed by us
pursuant to LMAs.  The petition contains essentially the same allegations
that have been brought in the past by the Rainbow/PUSH Coalition, which were
dismissed or denied by the FCC, and several other allegations which we believe
have no merit nor will they have a material adverse effect on our consolidated
financial position, consolidated results of operations or consolidated cash
flows.  Several individuals and an
organization named “Sinclair Media Watch” also filed informal objections to the
license renewal applications of WLOS(TV) and WBSC-TV, raising essentially the
same arguments presented in the Free Press petition.

 

Certain of our
stations have entered into LMAs.   In 1999, the FCC implemented new
local television ownership rules and decided to attribute LMAs for
ownership purposes. Some of our LMAs were grandfathered by the FCC and are not
required to be terminated until after a specific determination by the FCC, even
if attribution of the LMA would cause us to exceed certain local ownership
limits under the 1999 rules. Some of our non-grandfathered LMAs would be
required to be terminated under the 1999 rules, but the termination of those
LMAs was stayed by the U.S. Court of Appeals for the D.C. Circuit.  Under the FCC ownership rules adopted in
2003, we would be allowed to continue to program most of the stations with
which we have an LMA.  In the absence of a waiver, the new rules would
require us to terminate or modify three of our LMAs in markets where both the
station we own and the station with which we have an LMA are ranked among the
top four stations in their particular designated market area.  The FCC’s

 

 

new ownership rules include
specific provisions permitting waivers of this “top four restriction.” 
Although there can be no assurances, we have studied the application of the new
rules to our markets and believe we are qualified for waivers.  The
new rules have been stayed by the U.S. Court of Appeals for the Third
Circuit and are on remand to the FCC.  Several parties have filed with the
Supreme Court of the United States petitions for writ of certiorari (defined
below) seeking review of the Third Circuit decision.  Because the new
ownership rules have been remanded, it is not clear if we will be required
to terminate or modify our LMAs in markets where we have such
arrangements.  A petition for a writ of certiorari is a legal term that
means a document filed with the U. S. Supreme Court asking the Court to review
the decision of a lower court.  It includes, among other things, an argument
as to why the Supreme Court should hear the appeal.  On March 3,
2005, we filed a conditional cross-petition with the U. S. Supreme Court asking
the Court to consider our arguments together with the arguments contained in
the petitions filed by the other parties.

 

On November 15, 1999, we entered into a
plan and agreement of merger, pursuant to which we would acquire through merger
with a subsidiary of Cunningham, television broadcast station WBSC-TV (formerly
WFBC-TV), Anderson, South Carolina.  In December 2001, we received
FCC denial on WBSC-TV.   We have filed a petition for reconsideration
with the FCC to reconsider its denial of the acquisition of WBSC-TV and amended
our application to acquire the license in light of the FCC’s new 2003 multiple
ownership rules.  However, the new rules have been stayed.  We
also filed applications in November 2003 to acquire the license assets of
the remaining five Cunningham stations, WRGT-TV, Dayton, Ohio, WTAT-TV,
Charleston, South Carolina, WVAH-TV, Charleston, West Virginia, WNUV-TV,
Baltimore, Maryland, and WTTE-TV, Columbus, Ohio.    The
Rainbow/PUSH Coalition filed a petition to deny these five applications and to
revoke all of our licenses.  The FCC dismissed our applications in light
of the stay of the new ownership rules, and we filed an application for review
of the dismissal, which may be impacted by the remand of the FCC’s new multiple
ownership rules. The FCC denied the Rainbow/PUSH petition, and Rainbow filed a
petition for reconsideration of that denial.  Both the applications and
the associated petition to deny are still pending.  We believe the
Rainbow/PUSH petition is without merit.

 

On September 1,
2004, Richard D’Amato, an individual, filed a petition to deny the license
renewal of WBFF(TV). We opposed the petition to deny, and the license renewal
application is currently pending.

 

 

Schedule 4.06(b)

 

Environmental
Matters

 

None

 

 

Schedule 4.13(a)

 

Material Indebtedness

 

1.               Credit
Agreement, dated as of July 15, 2002, as amended by Amendment No. 1
dated as of December 31, 2002 and Amendment No. 2 dated as of June 25,
2004, between Sinclair Television Group, Inc. (as borrower), various
subsidiaries of Sinclair Broadcast Group, Inc. party thereto and Sinclair
Broadcast Group, Inc. (as guarantors), various lenders (as lenders) and
JPMorgan Chase Bank formerly known as The Chase Manhattan Bank (as agent).

 

2.               $21.0 million
Master Lease Agreement, dated December 1, 2000, between Sinclair
Communications, Inc. (as lessee) and American Tower L.P. (as lessor) for
tower space.

 

3.               $7.0 million
Lease Agreement, dated May 25, 2000, between Sinclair Broadcast Group, Inc.
(as lessee) and Beaver Dam Limited Liability Company (as lessor) for building
space located at 10706 Beaver Dam Rd, Cockeysville, MD.

 

4.               (With #3, above)
$7.0 million Lease Agreement, dated December 18, 1998, between Sinclair
Communications, Inc. (as lessee) and Beaver Dam Limited Liability Company
(as lessor) for building space located at 10706 Beaver Dam Rd, Cockeysville,
MD.

 

5.               $310.0 million
Indenture, dated as of December 10, 2001, as heretofore amended, among
Sinclair Television Group, Inc. (as borrower), the Guarantors named
therein (as guarantors) and Wachovia Bank, National Association (formerly First
Union National Bank) (as trustee).

 

6.               Mark to market
of existing interest rate derivative transactions.

 

7.               $300.0 million
Indenture, dated as of March 14, 2002, as heretofore amended, among
Sinclair Television Group, Inc. (as issuer), the Guarantors named therein
(as guarantors) and Wachovia Bank, National Association (formerly First Union
National Bank) (as trustee).  Add-on
issuances of $125.0 million dated as of November 8, 2002, $125.0 million
dated as of December 31, 2002 and $100.0 million dated as of May 29,
2003.

 

8.               $33.5 million
Credit Agreement, dated July 1, 2004 between Cunningham Broadcasting
Corporation. (as borrower), the Subsidiary Guarantors named therein (as
guarantors) and JP Morgan Chase (as administrative agent).

 

9.               $150.0 million Convertible Indenture,
dated July 15, 2003 among Sinclair Broadcast Group, Inc. (as issuer),
the Guarantors named therein and Wachovia Bank, National Association (formerly
First Union National Bank) as trustee.

 

 

Schedule 4.13(b)

 

LIENS

 

Liens filed in
favor of JPMorgan Chase Bank, N.A. pursuant to the Credit Agreement dated as of
July 15, 2002, among the Borrower (as assignee of the Holding Company), the
Subsidiary Guarantors' party thereto, the lenders' party thereto and JPMorgan
Chase Bank, N.A., as administrative agent for said lenders, as amended and
restated as of June 25, 2004 (as heretofore modified and supplemented and in
effect on the date hereof. 

 

 

Schedule 4.13(c)

 

Projected Film Cash Payments

(000’s)

 

	
  Year

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2005

  	
   

  	
  $

  	
  105,552

  	
   

  
	
  2006

  	
   

  	
  $

  	
  98,777

  	
   

  
	
  2007

  	
   

  	
  $

  	
  89,187

  	
   

  
	
  2008

  	
   

  	
  $

  	
  91,789

  	
   

  
	
  2009

  	
   

  	
  $

  	
  94,194

  	
   

  
	
  2010

  	
   

  	
  $

  	
  93,135

  	
   

  
	
  2011

  	
   

  	
  $

  	
  94,057

  	
   

  
	
  2012

  	
   

  	
  $

  	
  94,997

  	
   

  

 

 

Schedule 4.13(d)

 

Interest Rate Protection Agreements

 

	
  Type of Hedge

  	
   

  	
  Notional Amount

  	
   

  	
  Counterparty

  	
   

  	
  Expiry Date

  	
   

  	
  Rate

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Swap

  	
   

  	
  $

  	
  180,000,000

  	
   

  	
  Wachovia Bank

  	
   

  	
  3/15/12

  	
   

  	
  8.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  National Association

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair receives fixed
  rate of 8.00% and pays floating rate plus 2.278% spread.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Swap

  	
   

  	
  $

  	
  120,000,000

  	
   

  	
  Deutsche Bank AG

  	
   

  	
  3/15/12

  	
   

  	
  8.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair receives fixed
  rate of 8.00% and pays floating rate plus 2.279% spread.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Swap

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  Wachovia Bank

  	
   

  	
  3/15/12

  	
   

  	
  8.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  National Association

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair receives fixed
  rate of 8.00% and pays floating rate plus 3.095% spread.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Swap

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  Deutsche Bank AG

  	
   

  	
  3/15/12

  	
   

  	
  8.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair receives fixed
  rate of 8.00% and pays floating rate plus 3.095% spread.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Collar

  	
   

  	
  $

  	
  575,000,000

  	
   

  	
  JP Morgan

  	
   

  	
  06/03/06

  	
   

  	
  6.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  Chase Bank

  	
   

  	
   

  	
   

  	
  or 7.00

  	
  %

  

 

Depending
on LIBOR, Sinclair pays one of the two fixed rates and receives either floating
or the fixed rate.  Amended 6/3/03 to
assign $200 million notional amount from JP Morgan to Wachovia National Bank
under the same terms and conditions.

 

 

Schedule 4.14

 

Capitalization

 

I.                                         Common Stock

 

The
authorized common stock of the Holding Company consists, on the date hereof,
of:

 

1.                                       500,000,000 shares of Class A Common
Stock, par value $.01 per share, of which, as of March 17, 2005, 46,306,206
shares were duly and validly issued and outstanding.

 

2.                                       140,000,000 shares of Class B Common
Stock, par value $.01 per share, of which as of March 17, 2005, 39,072,649
shares were duly and validly issued and outstanding.

 

As
of March 17, 2005 1.2% of such issued and outstanding shares of Class A
Common Stock are owned beneficially and of record by the Smith Brothers, and 98.4%
of such issued and outstanding shares of Class B Common Stock are
beneficially owned of record, directly or indirectly, by the Smith Brothers.

 

II.                                     Preferred Stock

 

The
authorized preferred stock of the Holding Company consists of 3,450,000 shares,
on the date hereof, of which:

 

1.                                       3,450,000 shares of Series D Convertible
Exchangeable Preferred Stock, par value $.01 per share, of which 3,337,033
shares are duly and validly issued and outstanding.

 

III.                                 Other Equity Rights

 

1.                                       1996 Long-Term Incentive Plan

 

2.                                       Incentive Stock Option Plan

 

3.                                       Employee Stock Purchase Plan

 

4.                                       Incentive Stock Option Plan for Designated
Participants providing for the right of certain employees of the Holding
Company and its Subsidiaries to acquire, in the aggregate, not more than 68,000
shares of the Holding Company’s Class A Common Stock (the “Designated
Employees Stock Option Plan”).

 

5.                                       Stock Option Agreement dated as of April 10,
1996 between Barry Baker and the Holding Company, providing, among other things,
for the right of Barry Baker to acquire

 

 

1,382,435 shares of the Holding Company’s Class A
Common Stock on the terms and conditions set forth therein (the “Baker Stock
Option Agreement”).

 

6.                                       The Holding Company’s Incentive Stock Option
Plan (“ISO Plan”) allows Holding Company to grant to employees options to
acquire Class A Common Stock.  One
million (1,000,000) shares of Class A Common Stock are currently
authorized for the ISO Plan.

 

7.                                       On May 11, 1998, the number of shares
for which employee stock options under the 1996 Long-Term Incentive Plan may be
granted was increased from 2,073,673 to 7,000,000 by vote of Holding Company’s
shareholders.

 

8.                                       Pursuant to the Plan and Agreement of Merger
dated November 15, 1999, as amended, by and among Glencairn, Ltd. (now
known as Cunningham), Anderson (WFBC-TV), Inc., Holding Company and
Sinclair Acquisition XI, Inc., Holding Company will issue to Cunningham
Common Stock equal to a value of $329,156.00, as determined by the average fair
market value of one common stock share for the five days prior to consummation.

 

9.                                       Pursuant to the Option Agreement For Purchase
of Non-License Assets dated May 1, 2002 (the “Non-License Option”), by and
between Nashville Broadcasting Limited Partnership and Sinclair Television of
Nashville, Inc. (“Option Holder”), Option Holder may elect to pay the
Non-License Assets Option Exercise Price (as defined in the Non-License Option,
in a combination of immediately available funds and shares of Holding Company’s
Common Stock.  Option exercised with cash
payment effective May 31, 2005.

 

10.                                 Pursuant to the Option Agreement For Purchase
of License Assets dated May 1, 2002 (the “License Option”), by and between
Nashville Broadcasting Limited Partnership, Nashville License Holdings, LLC,
and Sinclair Television of Nashville, Inc. (“Option Holder”), Option
Holder may elect to pay the License Assets Option Exercise Price (as defined in
the License Option, in a combination of immediately available funds and shares
of Holding Company’s Common Stock. 
Option exercised with 90% payment to be made by December 2005 and
balance December 2006.

 

 

Schedule 4.15(a)

 

Subsidiaries

 

	
  Company

  	
   

  	
  State of Organization

  	
   

  	
  Ownership

  	
   

  	
  Nature of

  Ownership

  
	
  Birmingham (WABM-TV) Licensee, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Acquisition IX, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Channel 33, Inc.

  	
   

  	
  Nevada

  	
   

  	
  Wholly owned Subsidiary of Montecito Broadcasting Corporation

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Chesapeake Television Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KABB Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KBSI Licensee L.P.

  	
   

  	
  Virginia

  	
   

  	
  General Partner, Sinclair Properties, LLC  Limited Partner, Sinclair Communications,
  LLC

  	
   

  	
  98%, Sinclair Properties, LLC  2%, Sinclair Communications, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KDNL Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Media I, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KDSM Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of KDSM, LLC

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KDSM, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Broadcast Group, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KGAN Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Acquisition IV, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KLGT, Inc. (formerly known as Lakeland Group
  Television, Inc.)

  	
   

  	
  Minnesota

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KLGT Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary

  	
   

  	
  100% of

  
	
   

  	
   

  	
   

  	
   

  	
  of KLGT, Inc.

  	
   

  	
  membership interest

  

 

 

	
  Company

  	
   

  	
  State of Organization

  	
   

  	
  Ownership

  	
   

  	
  Nature of

  Ownership

  
	
  KOCB, Inc. (formerly known as Superior Communications of a
  Oklahoma, Inc.)

  	
   

  	
  Oklahoma

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KOCB Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of KOCB, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KOKH Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of KOKH, LLC

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KOKH, LLC

  	
   

  	
  Nevada

  	
   

  	
  Wholly owned Subsidiary of WDKY, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KSMO, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KSMO Licensee, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Wholly owned Subsidiary of KSMO, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KUPN Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Media II, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Montecito Broadcasting Corporation

  	
   

  	
  Delaware

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New York Television, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Raleigh (WRDC-TV) Licensee, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Acquisition VIII, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  San Antonio (KRRT-TV) Licensee, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Acquisition X, Inc.

  	
   

  	
  100% of issued and outstanding stock

  

 

 

	
  Company

  	
   

  	
  State of Organization

  	
   

  	
  Ownership

  	
   

  	
  Nature of

  Ownership

  
	
  San Antonio Television, LLC

  	
   

  	
  Delaware

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCI-Indiana Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Media II, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCI– Sacramento Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Acquisition IV, Inc. (f/k/a WDBB, Inc.)

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Acquisition VII, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications II, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Acquisition VIII, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications II, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Acquisition IX, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications II, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Acquisition X, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications II, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Communications, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned subsidiary of Sinclair Television Group, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Communications II, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television Group, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Finance Holdings, LLC

  	
   

  	
  Minnesota

  	
   

  	
  Wholly owned Subsidiary of KLGT, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Finance, LLC

  	
   

  	
  Minnesota

  	
   

  	
  99% owned by KLGT, Inc.

  

  1% owned by Sinclair Finance Holdings, LLC

  	
   

  	
  99% of membership interest owned by KLGT, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1% membership interest owned by Sinclair Finance Holdings, LLC

  

 

 

	
  Company

  	
   

  	
  State of Organization

  	
   

  	
  Ownership

  	
   

  	
  Nature of

  Ownership

  
	
  Sinclair Holdings I, Inc. (f/k/a Max Radio, Inc.)

  	
   

  	
  Virginia

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Holdings II, Inc. (f/k/a/ MTR Holding Corp)

  	
   

  	
  Virginia

  	
   

  	
  69% owned by Sinclair Communications, LLC

  

  31% owned by Sinclair Holdings I, Inc.

  	
   

  	
  69% of issued and outstanding stock owned by Sinclair Communications,
  LLC

  

  31% of issued and outstanding stock owned by Sinclair Holdings I, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Holdings III, Inc. (f/k/a/ Max Investors, Inc.)

  	
   

  	
  Virginia

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Media I, Inc. (formerly known as WPGH, Inc.)

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Media II, Inc. (formerly known as WTTE, Channel
  28, Inc.)

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Media III, Inc. (formerly known as WSTR, Inc.)

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair NewsCentral, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Programming Company, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television Group, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Properties, LLC

  	
   

  	
  Virginia

  	
   

  	
  26.4% by Sinclair Holdings I, Inc.

  	
   

  	
  26.4% of membership 

  
	
   

  	
   

  	
   

  	
   

  	
  45.8% by Sinclair Communications, LLC

  

  26.9% by Sinclair Holdings
  III, Inc.  

  
.9% by Sinclair Holdings
  II, Inc.

  	
   

  	
  interest

  

  45.8% of membership interest

  

  26.9% of membership interest

  

  .9% membership interest

  

 

 

	
  Company

  	
   

  	
  State of Organization

  	
   

  	
  Ownership

  	
   

  	
  Nature of

  Ownership

  
	
  Sinclair Properties II, LLC

  	
   

  	
  Virginia

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Television Company, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications II, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Television Company II, Inc. (f/k/a Sullivan
  Broadcasting Company II, Inc.)

  	
   

  	
  Delaware

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television Group, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Television Group, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Broadcast Group, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Television of Buffalo, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television of Nevada, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Television of Charleston, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television of Nevada, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Television of Dayton, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television of Nevada, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Television of Nashville, Inc.

  	
   

  	
  Tennessee

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television of Nevada, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Television of Nevada, Inc.

  	
   

  	
  Nevada

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television Company, Inc.

  	
   

  	
  100% of issued and outstanding stock

  

 

 

	
  Company

  	
   

  	
  State of Organization

  	
   

  	
  Ownership

  	
   

  	
  Nature of

  Ownership

  
	
  Sinclair Television of Tennessee, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television of Nevada, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sinclair Television License Holder, Inc.

  	
   

  	
  Nevada

  	
   

  	
  85.2% – Sinclair Television of Nevada, Inc.

  

  5.5% – Sinclair Television of
  Nashville, Inc.

  

  1.8% – Sinclair Television of Buffalo, Inc.

  

  1.8% – Sinclair Television of Dayton, Inc.

  

  1.8% – Sinclair Television Company, Inc.

  

  3.7% – Sinclair Television of Charleston, Inc.

  	
   

  	
  85.2% of issued and outstanding stock

  

  5.5% of issued and outstanding stock

  

  1.8% of issued and outstanding stock

  

  1.8% of issued and outstanding stock

  

  1.8% of issued and outstanding stock

  

  3.7% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WCGV, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WCGV Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of WCGV, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WCHS Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Media III, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WCWB Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Media I, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WDKY, Inc.

  	
   

  	
  Delaware

  	
   

  	
  45.92% owned by Sinclair Communications, LLC

  

  54.08% owned by Sinclair Television of Nevada, Inc.

  	
   

  	
  45.92% of issued and outstanding stock

  

  54.08% of issued and outstanding stock

  

 

 

	
  Company

  	
   

  	
  State of Organization

  	
   

  	
  Ownership

  	
   

  	
  Nature of

  Ownership

  
	
  WDKY Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of WDKY, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WEAR Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Media II, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WEMT Licensee L.P. (f/k/a Max Television of Tri-Cities, L.P.)

  	
   

  	
  Virginia

  	
   

  	
  General Partner – Sinclair Properties II, LLC

  

  Limited Partner – Sinclair Communications, LLC

  	
   

  	
  98% Sinclair Properties, II LLC

  

  2% Sinclair Communications, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WFGX Licensee, LLC

  	
   

  	
  Nevada

  	
   

  	
  Wholly owned Subsidiary of Sinclair Media II, LLC

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WGGB, Inc. (f/k/a Sinclair Radio of Albuquerque, Inc.)

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WGGB Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of WGGB, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WGME, Inc. (f/k/a WSYX, Inc.)

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WGME Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of WGME, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WICD Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Acquisition IV, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WICS Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Acquisition IV, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WKEF Licensee L.P. (f/k/a Max Television of Dayton, L.P.

  	
   

  	
  Virginia

  	
   

  	
  General Partner – Sinclair Properties II, LLC

  

  Limited Partner – Sinclair Communications, LLC

  	
   

  	
  98% Sinclair Properties II, LLC

  

  2% Sinclair Communications, LLC

  

 

 

	
  Company

  	
   

  	
  State of Organization

  	
   

  	
  Ownership

  	
   

  	
  Nature of

  Ownership

  
	
  WLFL, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WLFL Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of WLFL, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WLOS Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WMMP Licensee L.P.

  	
   

  	
  Virginia

  	
   

  	
  General Partner – Sinclair Properties, LLC

  

  Limited Partner – Sinclair Communications, LLC

  	
   

  	
  98% – Sinclair Properties, LLC

  

  2% – Sinclair Communications, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WMSN Licensee, LLC

  	
   

  	
  Nevada

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television Company, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WNYO, Inc. (f/k/a Grant Television, Inc.)

  	
   

  	
  Delaware

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WPGH Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Media I, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WRDC, LLC

  	
   

  	
  Nevada

  	
   

  	
  Wholly owned Subsidiary of WLFL, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WRGT Licensee, LLC

  	
   

  	
  Nevada

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television of Dayton, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WRLH Licensee, LLC

  	
   

  	
  Nevada

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television of
  Charleston, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WSMH, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  

 

 

	
  Company

  	
   

  	
  State of Organization

  	
   

  	
  Ownership

  	
   

  	
  Nature of

  Ownership

  
	
  WSMH Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of WSMH, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WSTR Licensee, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Media III, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
  WSYT Licensee L.P.

  	
   

  	
  Virginia

  	
   

  	
  General Partner – Sinclair Properties, LLC

  

  Limited Partner – Sinclair Communications, LLC

  	
   

  	
  98% – Sinclair Properties, LLC

  

  2% – Sinclair Communications, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WSYX Licensee, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Media II, Inc.

  	
   

  	
  100%of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WTAT Licensee, Inc,

  	
   

  	
  Nevada

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television of
  Charleston, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WTTO, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WTTO Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of WTTO, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WTVZ, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WTVZ Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of WTVZ, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WTWC, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  

 

 

	
  Company

  	
   

  	
  State of Organization

  	
   

  	
  Ownership

  	
   

  	
  Nature of

  Ownership

  
	
  WTWC Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of WTWC, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WUHF Licensee, LLC

  	
   

  	
  Nevada

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television Company, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WUPN Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television of Buffalo, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WUTV Licensee, LLC

  	
   

  	
  Nevada

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television of Buffalo, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WUXP Licensee, LLC

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television of
  Tennessee, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WVAH Licensee, LLC

  	
   

  	
  Nevada

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television of Nashville, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WVTV Licensee, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Acquisition VII, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WXLV Licensee, LLC

  	
   

  	
  Nevada

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television of Buffalo, Inc.

  	
   

  	
  100% of membership interest

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WYZZ, Inc.

  	
   

  	
  Maryland

  	
   

  	
  Wholly owned Subsidiary of Sinclair Communications, LLC

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WYZZ Licensee, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Wholly owned Subsidiary of WYZZ, Inc.

  	
   

  	
  100% of issued and outstanding stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WZTV Licensee, LLC

  	
   

  	
  Nevada

  	
   

  	
  Wholly owned Subsidiary of Sinclair Television of
  Nashville, Inc.

  	
   

  	
  100% of membership interest

  

 

 

Schedule 4.15(b)

 

Committed Investments Outstanding

 

	
  Notes Receivable

  	
   

  	
  $

  	
  1,911,585

  	
   

  
	
  G1440, Inc.

  ($1,911,585 outstanding)

  	
   

  	
   

  	
   

  
	
  Acrodyne
  Communications, Inc.

  	
   

  	
  $

  	
  1,185,316

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Purchase Options
  by Third parties

  	
   

  	
   

  	
   

  
	
  Lambert Purchase
  Option

  ($18,000,000 paid)

  	
   

  	
  $

  	
  31,250,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Investments

  	
   

  	
   

  	
   

  
	
  Allegiance
  Capital, LP.

  ($9,234,490 invested)

  	
   

  	
  $

  	
  14,580,000

  	
   

  
	
  Appforge

  	
   

  	
  $

  	
  666,000

  	
   

  
	
  G1440, Inc.

  	
   

  	
  $

  	
  11,113,083

  	
   

  
	
  Sterling Venture
  partners, LP.

  ($3,766,250 invested)

  	
   

  	
   

  	
   

  
	
  VisionAir

  	
   

  	
  $

  	
  3,469,579

  	
   

  
	
  Acrodyne
  Recapitalization

  	
   

  	
  $

  	
  8,380,691

  	
   

  
	
  Summa Holdings

  	
   

  	
  $

  	
  20,000,000

  	
   

  
	
  Jadoo Power Systems

  	
   

  	
  $

  	
  4,737,893

  	
   

  
	
  AgentSmith, Inc.

  ($1,300,000 invested)

  	
   

  	
  $

  	
  1,300,000

  	
   

  

 

 

Schedule 4.18

 

Programming Services
Agreements

 

1.                                       Programming Services Agreement dated July 24,
1995, by and between Sinclair Communications, LLC, successor by merger to
Chesapeake Television, Inc. and Baltimore (WNUV-TV), Inc. and
Baltimore (WNUV-TV) Licensee, Inc. for WNUV-TV, Baltimore, Maryland, and
amended as follows:

 

(a)                                  by that certain Amendment to Program Services
Agreement effective February 1, 1999;

(b)                                 as renewed and continued pursuant to that
Agreement to Renew and Continue dated March 27, 2000;

(c)                                  by that certain Amendment to Programming
Services Agreement dated February 1, 2002; and

(d)                                 by that certain Second Amendment to
Programming Services Agreement dated March 20, 2002.

 

2.                                       Programming Services Agreement dated November 5,
1996 by and between Columbus (WTTE-TV) Licensee, Inc. and Sinclair Media
II, Inc. (successor to WTTE, Channel 28, Inc.) for WTTE-TV, Columbus,
Ohio, and amended as follows:

 

(a)                                  by that certain Addendum dated August 21,
1998;

(b)                                 by that certain Amendment dated February 1,
1999;

(c)                                  as renewed and continued pursuant to that
Agreement to Renew and                 Continue dated March 27, 2000;

(d)                                 by that certain Amendment to Programming
Services Agreement dated         February 1, 2002; and

(e)                                  by that certain Second Amendment to
Programming Services Agreement                                               dated March 20, 2002.

 

3.                                       Time Brokerage Agreement for WBSC-TV
(formerly, WFBC-TV) dated May 31, 1996 by and between Sinclair
Communications, LLC (successor by merger to Chesapeake Television, Inc.;
successor by merger to WLOS, Inc.; WLOS, Inc., successor by
assignment from River City Broadcasting, L.P.), Anderson (WFBC-TV), Inc.
and Anderson (WFBC-TV) Licensee, Inc., as partially terminated from time
to time, and amended as follows:

 

(a)                                  by that certain Amendment to Time Brokerage
Agreement dated July 17,                                                 1997;

(b)                                 by that certain Amendment to Time Brokerage
Agreement dated February 1, 2002; and

(c)                                  by that certain Second Amendment to Time
Brokerage Agreement dated March 20, 2002.

 

4.                                       Programming Services Agreement dated November 9,
1995, by and between WTTO, Inc. and WDBB-TV, Inc. relating to
WDBB-TV, Tuscaloosa, Alabama, as extended by

 

 

that
certain Agreement dated May 13, 2004 and amended by that certain Amendment
No. 1, dated April 22, 2005.

 

5.                                       Time Brokerage Agreement dated January 5,
1999 by and between Bay Television, Inc. and Sinclair Media II, Inc.
(successor by assignment to Sinclair Communications, LLC, successor by merger
to Sinclair Communications, Inc., pursuant to that certain Assignment &
Assumption of Time Brokerage Agreement dated January 20, 1999) relating to
WTTA-TV, Tampa, Florida.

 

6.                                       Time Brokerage Agreement dated July 1,
1998 by and between Sullivan Broadcasting Company III, Inc. and Sinclair
Communications II, Inc., as relating to WTAT-TV, Charleston, South
Carolina, WVAH-TV Charleston, West Virginia, WRGT-TV, Dayton, Ohio and KOKH-TV,
Oklahoma City, Oklahoma amended as follows:

 

(a)                                  partially terminated with respect to KOKH-TV
by that certain Termination of Time Brokerage Agreement with Respect to
KOKH-TV;

(b)                                 by Amendment No. 1 to Time Brokerage
Agreement dated January 31, 2002; and

(c)                                  by Amendment No. 2 to Time Brokerage
Agreement between Sinclair Communications II, Inc. and Feddora, Inc.
(f/k/a Sullivan Broadcasting Company III, Inc.).

 

7.                                       Amended and Restated Time Brokerage Agreement
dated December 15, 1995 by and between WDKA Acquisition Corp. and Max
Media Properties, LLC as relating to WDKA-TV, Paducah, Kentucky and amended by
that certain First Amendment to Time Brokerage Agreement dated July 3,
1998 among WDKA Acquisition Corp. and Sinclair Properties, LLC (successor by
assignment from Max Media Properties, LLC).

 

8.                                       Time Brokerage Agreement dated December 21,
1995 by and between RKM Media, Inc. and Max Media Acquisition Corporation
as relating to WNYS-TV, Channel 43 and by that certain First Amendment to Time
Brokerage Agreement dated July 3, 1998 by and among RKM Media, Inc.
and Sinclair Properties, LLC (successor by assignment from Max Media
Properties, LLC).

 

 

Schedule 4.19

 

Options

 

1.                                       WNAB OPTIONS AND PUTS – Pursuant to two (2) Option Agreement,
a subsidiary of the Borrower has the option to acquire all of the License and
Non-License Assets of television broadcast station, WNAB-TV, Channel 58,
Nashville, Tennessee.  Notice has been
sent to exercise these options.

 

 

Schedule 4.20

 

Asset Use And Operating Agreements

 

1.               Asset Use and Operating Agreement dated November 12,
1998, by and between WTTO Licensee, LLC and WTTO, Inc.

 

2.               Asset Use and Operating Agreement dated November 12,
1998, by and between WCGV Licensee, LLC and WCGV, Inc.

 

3.               Asset Use and Operating Agreement dated November 12,
1998, by and between WLFL Licensee, LLC and WLFL, Inc.

 

4.               Asset Use and Operating Agreement dated November 12,
1998, by and between WSMH Licensee, LLC and WSMH, Inc.

 

5.               Asset Use and Operating Agreement dated June 1,
1996, by and between WYZZ Licensee, Inc. and WYZZ, Inc.

 

6.               Asset Use and Operating Agreement dated November 12,
1998, by and between WCHS Licensee, LLC and Sinclair Media III, Inc.
(formerly known as WSTR, Inc.)

 

7.               Asset Use and Operating
Agreement dated November 12, 1998, by and between WEAR Licensee, LLC and
Sinclair Media II, Inc. (formerly known as WTTE, Channel 28, Inc.)

 

8.               Asset Use and Operating Agreement dated November 12,
1998, by and between KLGT Licensee, LLC and KLGT, Inc. (formerly known as
Lakeland Group Television, Inc.)

 

9.               Asset Use and Operating Agreement dated November 12,
1998, by and between WDKY Licensee, LLC (formerly known as Superior KY License
Corp.) and WDKY, Inc. (formerly known as Superior Communications of
Kentucky, Inc.)

 

10.         Asset Use and Operating Agreement dated November 12, 1998, by and
between KOCB Licensee, LLC (formerly known as Superior OK License Corp.) and
KOCB, Inc. (formerly known as Superior Communications of Oklahoma, Inc.)

 

11.         Asset Use and Operating Agreement dated November 12, 1998, by and
between KUPN Licensee, LLC and Sinclair Media II, Inc. (formerly known as
WTTE, Channel 28, Inc.)

 

12.         Asset Use and Operating Agreement dated May 21, 1998, by and
between WSTR Licensee, Inc. and Sinclair Media III, Inc. (formerly
known as WSTR, Inc.)

 

13.         Asset Use and Operating Agreement dated November 12, 1998, by and
between WPGH Licensee, LLC and Sinclair Media I, Inc. (formerly known as
WPGH, Inc.)

 

 

14.         Asset Use and Operating Agreement dated November 12, 1998, by and
between KDNL Licensee, LLC and Sinclair Media I, Inc. (formerly known as
WPGH, Inc.)

 

15.         Asset Use and Operating Agreement dated November 12, 1998, by and
between WTVZ Licensee, LLC (formerly known as Norfolk Acquisition Licensee, Inc.)
and WTVZ, Inc. (formerly known as Norfolk Acquisition, Inc.)

 

16.         Asset Use and Operating Agreement dated April 30, 1999 by and
between WGME Licensee, LLC and WGME, Inc.

 

17.         Asset Use and Operating Agreement dated April 30, 1999 by and
between WTWC Licensee, LLC and WTWC, Inc.

 

18.         Asset Use and Operating Agreement dated April 30, 1999 by and
between WGGB Licensee, LLC and WGGB, Inc.

 

19.         Asset Use and Operating Agreement dated April 30, 1999 by and
between WICS Licensee, LLC and Sinclair Acquisition IV, Inc.

 

20.         Asset Use and Operating Agreement dated April 30, 1999 by and
between WICD Licensee, LLC and Sinclair Acquisition IV, Inc.

 

21.         Asset Use and Operating Agreement dated April 30, 1999 by and
between KGAN Licensee, LLC and Sinclair Acquisition IV, Inc.

 

22.         Asset Use and Operating Agreement dated July 6, 1998 by and
between WKEF Licensee L.P. and Sinclair Properties II, LLC.

 

23.         Asset Use and Operating Agreement dated July 6, 1998 by and
between KBSI Licensee L.P. and Sinclair Properties, LLC.

 

24.         Asset Use and Operating Agreement dated July 6, 1998 by and
between WEMT Licensee, L.P. and Sinclair Properties II, LLC.

 

25.         Asset Use and Operating Agreement dated July 6, 1998 by and
between WMMP Licensee L.P. and Sinclair Properties, LLC.

 

26.         Asset Use and Operating Agreement dated July 6, 1998 by and
between WSYT Licensee L.P. and Sinclair Properties, LLC.

 

27.         Asset Use and Operating Agreement dated April 18, 2000 by and
between Channel 33, Inc. and Montecito Broadcasting Corp.

 

28.         Asset Use and Operating Agreement dated August 21, 1998 by and
between WSYX Licensee, Inc. and Sinclair Media II, Inc.

 

 

29.         Asset Use and Operating Agreement dated April 23, 1999 by and
between SCI-Indiana Licensee, LLC and Sinclair Media II, Inc.

 

30.         Asset Use and Operating Agreement dated January 7, 2002 by and
between WCWB Licensee, LLC and Sinclair Media I, Inc.

 

31.         Asset Use and Operating Agreement dated January 9, 2002 by and
between WUPN Licensee, LLC and Sinclair Television of Buffalo, Inc.

 

32.         Asset Use and Operating Agreement dated January 14, 2002 by and
between WUXP Licensee, LLC and Sinclair Television of Tennessee, Inc.

 

33.         Asset Use and Operating Agreement dated January 18, 2002 by and
between KOKH Licensee, LLC and KOKH, LLC, successor by merger to Sinclair
Television of Oklahoma, Inc.

 

34.         Asset Use and Operating Agreement dated January 25, 2002 by and
between New York Television, Inc. and WNYO, Inc.

 

35.         Asset Use and Operating Agreement dated February 1, 2002 by and
between San Antonio (KRRT-TV) Licensee, LLC and Sinclair Acquisition X, Inc.

 

36.         Asset Use and Operating Agreement dated February 1, 2002 by and
between Birmingham (WABM-TV) Licensee, LLC and Sinclair Acquisition IX, Inc.

 

37.         Asset Use and Operating Agreement dated February 1, 2002 by and
between Raleigh (WRDC-TV) Licensee, LLC and Sinclair Acquisition VIII, Inc.

 

38.         Asset Use and Operating Agreement dated February 1, 2002 by and
between WVTV Licensee, LLC and Sinclair Acquisition VII, Inc.

 

39.         Asset Use and Operating Agreement dated April 30, 2002 by and
between WMSN Licensee, LLC and Sinclair Television Company, Inc.

 

40.         Asset Use and Operating Agreement dated April 30, 2002 by and
between WRLH Licensee, LLC and Sinclair Television of Charleston, Inc.

 

41.         Asset Use and Operating Agreement dated April 30, 2002 by and
between WUHF Licensee, LLC and Sinclair Television Company, Inc.

 

42.         Asset Use and Operating Agreement dated April 30, 2002 by and
between WUTV Licensee, LLC and Sinclair Television of Buffalo, Inc.

 

43.         Asset Use and Operating Agreement dated April 30, 2002 by and
between WXLV Licensee, LLC and Sinclair Television of Buffalo, Inc.

 

 

44.         Asset Use and Operating Agreement dated April 30, 2002 by and
between WZTV Licensee, LLC and Sinclair Television of Nashville, Inc.

 

45.         Asset Use and Operating Agreement dated May 17, 2004 by and
between WFGX Licensee, LLC and Sinclair Media II, Inc.

 

46.         Asset Use and Operating Agreement dated January 1, 2005 by and
between SCI-Sacramento Licensee, LLC and Sinclair Communications, LLC,
successor by merger to Chesapeake Television, Inc.

 

47.         Asset Use and Operating Agreement dated January 1, 2005 by and
between KABB Licensee, LLC and Sinclair Communications, LLC, successor by
merger to Chesapeake Television, Inc.

 

48.         Asset Use and Operating Agreement dated January 1, 2005 by and
between WLOS Licensee, LLC and Sinclair Communications, LLC, successor by
merger to Chesapeake Television, Inc.

 

49.         Asset Use and Operating Agreement dated January 1, 2005 by and
between Chesapeake Television Licensee, LLC and Sinclair Communications, LLC,
successor by merger to Chesapeake Television, Inc.

 

 

Schedule 4.21

 

Outsourcing Agreements

 

1.                                       Servicing Agreement entered into by Sinclair
Television of Nashville, Inc., Nashville License Holdings, LLC, and
Nashville Broadcasting Limited Partnership dated May 1, 2002.

 

2.                                       Outsourcing Agreement entered into by WYZZ, Inc.,
WYZZ Licensee, Inc. and Nexstar Broadcasting of Peoria, LLC dated November 28,
2001.

 

3.                                       Outsourcing Agreement entered into by WTWC, Inc.
and Media Venture Management, Inc. dated September 28, 2001.

 

4.                                       Outsourcing Agreement entered into by
Sinclair Acquisition IV, Inc., KGAN Licensee, LLC and Second Generation of
Iowa, Ltd. dated July 9, 2002.

 

5.                                       Joint Sales and Shared Services Agreement
entered into by KSMO Licensee, Inc., KSMO Inc. and Meredith Corporation
dated November 12, 2004.

 

6.                                       Joint Sales and Shared Services Agreement entered
into by Sinclair Properties II, WEMT-TV, Inc. and Aurora License Holdings, Inc.
dated May 2, 2005.

 

 

Schedule 7.01(b)

 

Existing Indebtedness

 

1.                                       Lease Agreement, dated January 1, 1991,
between Chesapeake Television, Inc. (as lessee) and Keyser Investment
Group, Inc. (as lessor), for space located at 2000-2008 W. 41st
Street, Baltimore, MD.

 

2.                                       Lease Agreement, dated April 2, 1987,
between Chesapeake Television, Inc. (as lessee) and Cunningham
Communications, Inc. (as lessor), for space located on the primary
Baltimore broadcasting tower at 3900 Hooper Avenue, Baltimore, MD.

 

3.                                       Lease Agreement, dated March 16, 1988,
between Chesapeake Television, Inc. (as lessee) and Cunningham
Communications, Inc. (as lessor), for space located on the back-up Baltimore
broadcasting tower at 1200 N. Rolling Road, Baltimore, MD.

 

4.                                       Lease Agreement, dated September 23,
1993, as amended, between WPGH, Inc. (as lessee) and Gerstell Development
Limited Partnership (as lessor), for building space located at 750 Ivory Avenue,
Pittsburgh, PA.

 

5.                                       Credit Agreement, dated as of July 15,
2002, as amended by Amendment No. 1 dated as of December 31, 2002 and
Amendment No. 2 dated as of June 25, 2004, between Sinclair
Television Group, Inc. (as borrower), various subsidiaries of Sinclair
Broadcast Group, Inc. party thereto (as guarantors), various lenders (as
lenders) and JPMorgan Chase Bank formerly known as The Chase Manhattan Bank (as
agent).

 

6.                                       Lease Agreement, dated August 12, 1999,
between KMWB, Inc. (as lessee) and Telefarm, Inc. (as lessor) for
tower and land space located at 960 County Rd F W, Shoreview, Minnesota.

 

7.                                       Master Lease Agreement, dated December 1,
2000, between Sinclair Communications, Inc. (as lessee) and American Tower
L.P. (as lessor) for tower space.

 

8.                                       Lease Agreement, dated December 18,
1998, between Sinclair Communications, Inc. (as lessee) and Beaver Dam
Limited Liability Company (as lessor) for building space located at 10706
Beaver Dam Rd, Cockeysville, MD.

 

9.                                       Real Estate Lien Note, dated October 10,
1997, between Chesapeake Television, Inc. (as maker) and Joy B. Moul (as
payee) for land space for a tower site located at 12480 Adkins-Elmendorf Rd,
San Antonio, TX.

 

10.                                 Indenture, dated as of December 10,
2001, as heretofore amended, among Sinclair Television Group, Inc. (as
issuer), the Guarantors named therein (as guarantors) and Wachovia Bank,
National Association (formerly First Union National Bank) (as trustee).

 

 

11.                                 Lease Agreement, dated, February 13,
2001, between WPTT, Inc. (as lessee) and Gerstell Development Limited
Partnership (as lessor), for tower space located at 750 Ivory Avenue,
Pittsburgh, PA.

 

12.                                 Letter of credit for the benefit of Liberty
Property Ltd., dated October 12, 2000 supporting the building lease for
WTTA in Tampa, Florida.

 

13.                                 Indenture, dated as of March 14, 2002,
as heretofore amended, among Sinclair Television Group, Inc. (as issuer),
the Guarantors named therein (as guarantors) and Wachovia Bank, National
Association (formerly First Union National Bank) (as trustee).

 

14.                                 Lease Agreement, dated December 2, 1999,
between WLFL, Inc. (as lessee) and Capitol Broadcasting Company (as
lessor), for tower space in Garner, NC.

 

15.                                 Lease Agreement, dated December 2, 1999,
between WRDC, Inc. (as lessee) and Capitol Broadcasting Company (as
lessor), for tower space near Garner, NC.

 

16.                                 Ground Lease Agreement, August 19, 1990,
Auburn Tower Partnership, (comprised of Capital Broadcasting Company, Inc.
and Durham Broadcasting, Inc.) Landlord, to Durham Life Broadcasting, Inc.,
Tenant.

 

17.                                 Tower Space Lease Agreement, August 1,
1990, Auburn Tower Partnership, Landlord, to Durham Life Broadcasting, Inc.,
Tenant.

 

18.                                 First Amendment to Tower Space Lease
Agreement, January 15, 1991, Auburn Tower Partnership, Landlord, and
Durham Life Broadcasting, Inc., Tenant.

 

19.                                 Second Amendment to Tower Space Lease, July 30,
1991, by and between Auburn Tower Partnership and FSF TV, Inc., (assignee
of Broadcast Merger Corporation, which was the successor by merger of Durham
Life Broadcasting, Inc.).

 

20.                                 Memorandum of Assignment of Both Ground and
Tower Space Leases, July 30, 1991, Broadcast Merger Corporation to FSF TV, Inc.,
Wake County Register of Deeds, Book 4959, Page 0211.

 

21.                                 Assignment of Lease, March 31, 1995, FSF
TV, Inc. to Raleigh (WRDC-TV), Inc., Wake County Register of Deeds,
Book 6497, Page 0139

 

22.                                 Lease Agreement, dated October 30, 2001,
between WTWC, Inc. (as lessee) and SpectraSite Broadcast Towers, Inc.
(as lessor), for tower space located at coordinates Lat:30-40-51N
and Long: 083-58-21W in Metcalf, GA.

 

23.                                 Lease Agreement, dated November 1, 2002
between WRLH, Inc. (as lessee) and Spectrasite Broadcast Towers, Inc.
(as lessor) for tower and antenna space in Richmond, VA.

 

24.                                 Lease Agreement, dated August 30, 2004
between Sinclair Properties, LLC (as lessee) and Media General Operation, Inc.
(as lessor) for tower and ground space in Charleston County, SC.

 

 

Schedule 7.04

 

Approved Acquisitions

 

1.                                       Sinclair Acquisition XI, Inc., a
subsidiary of Borrower intends to acquire television broadcast station WBSC-TV
(formerly WFBC-TV), Anderson, South Carolina from a subsidiary of Cunningham
pursuant to that certain Plan and Agreement of Merger dated November 15,
1999, as heretofore amended.  FCC
approval is pending.

 

2.                                       Sinclair Television of Nashville, Inc.,
a subsidiary of Borrower has the option to acquire all of the license and
non-license assets of television broadcast station WNAB-TV Channel 28,
Nashville, Tennessee, pursuant to two (2) Option Agreements and two (2) Put
Agreements each dated May 1, 2002.

 

3.                                       Sinclair Acquisition XIII, Inc., a
subsidiary of Borrower intends to acquire television broadcast station WTTE-TV,
Columbus, Ohio, from a subsidiary of Cunningham pursuant to that certain Plan
and Agreement of Merger dated July 3, 2002.

 

4.                                       Sinclair Acquisition XIV, Inc., a
subsidiary of Borrower intends to acquire television broadcast station WNUV-TV,
Baltimore, Maryland, from a subsidiary of Cunningham pursuant to that certain
Plan and Agreement of Merger dated July 3, 2002.

 

5.                                       Borrower, Sinclair Television of Dayton, Inc.
and WRGT Licensee, LLC, each a subsidiary of Borrower, intend to acquire
television broadcast station WRGT-TV, Dayton, Ohio, from subsidiary of
Cunningham pursuant to that certain Asset Purchase Agreement dated July 3,
2002.

 

6.                                       Borrower, Sinclair Television of Charleston, Inc.
and WTAT Licensee, LLC, each a subsidiary of Borrower, intend to acquire
television broadcast station WTAT-TV, Charleston, South Carolina, from
subsidiaries of Cunningham pursuant to that certain Asset Purchase Agreement
dated July 3, 2002.

 

7.                                       Borrower, Sinclair Television of Nashville, Inc.
and WVAH Licensee, LLC each a subsidiary of Borrower, intend to acquire
television broadcast station WVAH-TV, Charleston, West Virginia, from subsidiaries
of Cunningham pursuant to that certain Asset Purchase Agreement dated July 3,
2002.

 

 

Schedule 7.10

 

Restrictive Agreements

 

1.                                       Indenture Dated December 10, 2001, as
heretofore amended, by and between Sinclair Television Group, Inc. (as
issuer), certain of its subsidiaries and First Union National Bank (as trustee)
relating to 8 3⁄4% Senior Subordinated Notes due 2011.

 

2.                                       Indenture Dated March 14, 2002, as
heretofore amended, by and between Sinclair Television Group, Inc. (as
issuer), certain of its subsidiaries and First Union National Bank (as trustee)
relating to 8% Senior Subordinated Notes due 2012.

 

 

EXHIBIT A

 

[Form of Security
Agreement]

 

AMENDED AND RESTATED SECURITY
AGREEMENT

 

AMENDED AND RESTATED SECURITY AGREEMENT dated
as of May 12, 2005 between SINCLAIR TELEVISION GROUP, INC., a corporation
duly organized and validly existing under the laws of the State of Maryland
(the “Borrower”); SINCLAIR BROADCAST GROUP, INC., a corporation duly
organized and validly existing under the laws of the State of Maryland (the “Holding
Company”); each of the Subsidiaries of the Borrower and the Holding Company
identified under the caption “SUBSIDIARY GUARANTORS” on the signature pages hereof
(individually, a “Subsidiary Guarantor” and, collectively, the “Subsidiary
Guarantors” and, together with the Borrower and the Holding Company, the “Obligors”);
and JPMORGAN CHASE BANK, N.A. (formerly JPMorgan Chase Bank) (“JPMCB”),
as administrative agent for the lenders party to the Credit Agreement referred
to below (in such capacity, together with its successors in such capacity, the “Administrative
Agent”).

 

WHEREAS, the Borrower (as assignee of the
Holding Company) and the Subsidiary Guarantors are parties to the Credit
Agreement dated as of July 15, 2002, as amended as of May 28, 2003
and as amended and restated as of June 25, 2004 (as heretofore modified
and supplemented and in effect on the date hereof, the “Existing Credit
Agreement”) with the lenders parties thereto and JPMCB, as administrative
agent.

 

WHEREAS, the Borrower and the Subsidiary
Guarantors are parties to the Security Agreement dated as of July 15, 2002
(as heretofore modified and supplemented and in effect on the date hereof, the “Existing
Security Agreement”) with JPMCB, as administrative agent.

 

WHEREAS, the Holding Company, the parent
company of the Borrower, has heretofore entered into a Guarantee and Pledge
Agreement dated as of September 30, 2003 with JPMCB, as administrative
agent, in connection with the Existing Credit Agreement (as heretofore modified
and supplemented and in effect on the date hereof, the “Existing Holding
Company Guarantee and Pledge Agreement” and, together with the Existing
Security Agreement, the “Existing Security Documents”).

 

WHEREAS, concurrently with the execution and
delivery of this Agreement, the Borrower, the Holding Company, the Subsidiary
Guarantors, the lenders party thereto and the Administrative Agent are entering
into a Second Amended and Restated Credit Agreement dated as of May 12,
2005 (as modified and supplemented and in effect from time to time, the “Credit
Agreement”), providing for the amendment and restatement of the Existing
Credit Agreement (including, without limitation, incorporating in the Credit
Agreement the guarantee of the Holding Company contained in the Existing
Holding Company Guarantee and Pledge Agreement in respect of the extensions of
credit and other obligations under or in respect of the Credit Agreement).

 

 

WHEREAS, as a
condition precedent to the effectiveness of the Credit Agreement, the parties
hereto have agreed to amend the Existing Security Agreement in certain respects
and to restate the Existing Security Agreement as so amended in its entirety as
provided hereinbelow (including, without limitation, to incorporate herein the
security interests of the Holding Company contained in the Existing Holding
Company Guarantee and Pledge Agreement in respect of the extensions of credit
hereunder);

 

WHEREAS, to
induce the Lenders to enter into the Credit Agreement and to extend credit
thereunder and under any Hedging Agreements, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
each Obligor has agreed to pledge and grant a security interest in the
Collateral (as hereinafter defined) (and the Holding Company has agreed to
become a party hereto as an Obligor and to pledge and grant a security interest
in the Collateral (as so defined) of the Holding Company) as security for the
Secured Obligations (as so defined), on the terms set forth herein.

 

NOW,
THEREFORE, the parties hereto agree that, effective as of the Second
Restatement Effective Date (as defined in Credit Agreement), the Existing
Security Agreement shall be amended and restated as follows:

 

Section 1.  Definitions.

 

1.01         Certain
Definitions.  Terms defined in the
Credit Agreement are used herein as defined therein.  In addition, as used herein:

 

“Accounts” shall have the meaning
ascribed thereto in Section 3(c) hereof.

 

“Collateral”
shall have the meaning ascribed thereto in Section 3 hereof.

 

“Collateral
Account” shall have the meaning ascribed thereto in Section 4.01
hereof.

 

“Hedging
Obligations” shall mean all obligations of the Borrower now or hereafter
from time to time owing to any Lender and any Affiliate of a Lender in respect
of any Hedging Agreement (including, without limitation, all interest thereon
and all other amounts whatsoever owing in respect thereof) entered into by the
Borrower or any Subsidiary.

 

“Initial
Pledged Shares” shall mean the Shares of each Issuer beneficially owned by
any Obligor on the date hereof and identified in Annex 2 hereto.

 

“Issuers”
shall mean, collectively, (a) the respective Persons identified beneath
the names of the Obligors on Annex 2 hereto under the caption “Issuer”,
(b) any other Person that shall at any time be a Subsidiary of any Obligor
(other than the Holding Company), other than any such Subsidiary excluded from
the pledges hereunder pursuant to Section 6.09 of the Credit Agreement, (c) the
issuer of any equity securities hereafter owned by any Obligor (other than the
Holding Company) and (d) any Intermediate

 

2

 

Holding Company to the extent required
pursuant to Section 6.09(d) of the Credit Agreement.

 

“NYUCC”
shall mean the Uniform Commercial Code as in effect from time to time in the
State of New York.

 

“Pledged
Shares” shall mean, collectively, (a) the Initial Pledged Shares and (b) all
other Shares of any Issuer now or hereafter owned by any Obligor, together in
each case with (i) all certificates representing the same, (ii) all
shares, securities, moneys or other property representing a dividend on or a
distribution or return of capital on or in respect of the Pledged Shares, or
resulting from a split-up, revision, reclassification or other like change of
the Pledged Shares or otherwise received in exchange therefor, and any subscriptions,
warrants, rights or options issued to the holders of, or otherwise in respect
of, the Pledged Shares, and (c) without prejudice to any provision of any
of the Loan Documents prohibiting any merger or consolidation by any Issuer,
all Shares of any successor entity of any such merger or consolidation.

 

“Secured
Obligations” shall mean, collectively, (a) the principal of and
interest on the Loans made by the Lenders to the Borrower, all LC Exposure and
interest thereon and all other amounts whatsoever now or hereafter from time to
time owing to the Lenders or the Administrative Agent by the Borrower under the
Loan Documents, (b) all Hedging Obligations, (c) all obligations of
the Guarantors under the Credit Agreement and the other Loan Documents (including,
without limitation, in respect of their Guarantee under Article III of the
Credit Agreement) and (d) all obligations of the Obligors to the Lenders
and the Administrative Agent hereunder.

 

“Shares”
shall mean shares of capital stock of a corporation, limited liability company
interests, partnership interests and other ownership or equity interests of any
class in any Person.

 

1.02         Certain
Uniform Commercial Code Terms.  As
used herein, the terms “Accession” and “Proceeds” shall have the
respective meanings set forth in Article 9 of the NYUCC, and the terms “Instructions”,
“Securities” and “Securities Account” shall have the respective
meanings set forth in Article 8 of the NYUCC.

 

Section 2.  Representations and Warranties.  Each Obligor represents and warrants to the
Lenders and the Administrative Agent that:

 

(a)  such
Obligor is the sole beneficial owner of the Collateral in which it purports to
grant a security interest pursuant to Section 3 hereof and no Lien exists
or will exist upon any such Collateral at any time (and, with respect to the
Pledged Shares, no right or option to acquire the same exists in favor of any
other Person), except for Liens permitted under Section 7.02 of the Credit
Agreement and except for the pledge and security interest in favor of the
Administrative Agent for the benefit of the Lenders created or provided for
herein, which pledge and security interest constitute a valid and perfected

 

3

 

pledge and security interest in and to all of
such Collateral, subject to no equal or prior Lien except as expressly
permitted by said Section 7.02 of the Credit Agreement;

 

(b)  the
full and correct legal name, type of organization, jurisdiction of
organization, organizational ID number (if applicable), mailing address and
place of business of each Obligor as of the date hereof or, if such Obligor has
more than one place of business, the location of the chief executive office of
such Obligor as of the date hereof are correctly set forth in Annex 1.

 

(c)  the
Initial Pledged Shares identified under the name of such Obligor in Annex 2
hereto is, and all other Pledged Shares in which such Obligor shall hereafter
grant a security interest pursuant to Section 3 hereof will be, duly
authorized, validly issued and (in the case of any Pledged Shares issued by a
corporation) fully paid and nonassessable, and none of such Pledged Shares is
or will be subject to any contractual restriction, or any restriction under the
charter, by-laws or other organizational documents of the respective Issuer of
such Pledged Shares, upon the transfer of such Pledged Shares (except for any
such restriction contained herein or in the Credit Agreement); and

 

(d)  the
Pledged Shares identified under the name of such Obligor in Annex 2 hereto
constitutes all of the issued and outstanding Shares of any class of the
Issuers beneficially owned by such Obligor (whether or not registered in the
name of such Obligor), and said Annex 2 correctly identifies, as at the date
hereof, the respective Issuers of such Pledged Shares and (if applicable) the
respective class of the Pledged Shares, the par value, if any, thereof and the
respective number of Shares (and registered owner thereof) evidenced by each
such certificate.

 

Section 3.  The Collateral.  Each Obligor hereby pledges and grants to the
Administrative Agent, for the benefit of the Lenders and their respective
Affiliates as hereinafter provided, a security interest (and hereby confirms
the pledge and grant of the security interest made by it under the Existing
Security Document to which it is a party) in all of such Obligor’s right, title
and interest in the following property, whether now owned by such Obligor or
hereafter acquired and whether now existing or hereafter coming into existence,
and wherever located (all being collectively referred to herein as “Collateral”),
as collateral security for the prompt payment in full when due (whether at
stated maturity, by acceleration or otherwise) of the Secured Obligations:

 

(a)  the
Pledged Shares;

 

(b)  in
the case of any Issuer organized as a limited liability company, partnership or
similar entity, the limited liability company agreement, operating agreement,
partnership agreement or other ownership agreements of or relating to such
Issuer (including, without limitation, all of the right, title and interest as
a member to participate in the operation or management of any such Issuer and
all of its ownership interests under any such agreement), and all present and
future rights of such Obligor to (i) receive payment of money, any other
property or assets in connection with its ownership interests

 

4

 

and its rights under any such agreements, (ii) any
claim which such Obligor now has or may in the future acquire against any such
Issuer and its property or arising out of or for breach of or default under any
such agreement or otherwise relating to the property of any such Issuer and (iii) terminate,
amend, supplement, modify or waive performance under any such agreement, to
perform thereunder and to compel performance and to otherwise exercise all
remedies thereunder;

 

(c)  in
the case of any Obligor (other than the Holding Company), all rights
(including, without limitation, the right to the payment of money) of such
Obligor (A) in any local marketing agreement, time brokerage agreement,
program services agreement or other similar agreement providing for (i) such
Obligor to program or sell advertising time on all or a portion of the broadcasting
time of any television or radio station or (ii) any person other than such
Obligor to program or sell advertising time on all or any portion of the
broadcast time of any Station, (B) in any outsourcing agreement, servicing
agreement or other similar agreement providing for such Obligor to deliver or
receive non-programming related management and/or consulting services of any
television station, and (C) in respect of the sale, barter or exchange by
any Obligor of (i) advertising or programming time or services or (ii) management
or consulting services (the foregoing rights herein called collectively “Accounts”);

 

(d)  in
the case of any Obligor (other than the Holding Company), to the maximum extent
such rights are assignable without violating the respective terms thereof, such
Obligor’s rights under all present and future options pursuant to which such
Obligor has the right to acquire licenses, permits, authorizations or
certificates to construct, own, operate or promote any television or radio
broadcasting station; and

 

(e)  all
Proceeds of any of the Collateral, all Accessions to and substitutions and
replacements for, any of the Collateral, and all offspring, rents, profits and
products of any of the Collateral, and, to the extent related to any Collateral,
all books, correspondence, credit files, records, invoices and other papers
(including all tapes, cards, computer runs and other papers and documents in
the possession or under the control of any Obligor or any computer bureau or
service company from time to time acting for any Obligor).

 

Section 4.  Cash Proceeds of Collateral.

 

4.01  Collateral
Accounts.  The Administrative Agent
may establish with JPMorgan Chase Bank, N.A. one or more cash collateral
account (each a “Collateral Account”), which may be a Securities
Account, in the name and under the sole control of the Administrative Agent
into which there shall be deposited from time to time the cash proceeds of any
of the Collateral (including proceeds of insurance thereon), dividends and other
distributions with respect thereto required to be delivered to the
Administrative Agent pursuant hereto and into which any Obligor may from time
to time deposit any additional amounts which it wishes to pledge to the
Administrative Agent for the benefit of the Lenders as additional collateral
security hereunder.  The balance from
time to time in the Collateral Accounts shall constitute part of the

 

5

 

Collateral hereunder and shall
not constitute payment of the Secured Obligations until applied as hereinafter
provided.  Except as expressly provided
in the next sentence, the Administrative Agent shall remit the collected
balance outstanding to the credit of the respective Collateral Account (other
than amounts deposited in the LC Exposure Sub-Account) to or upon the order of
any Obligor as the Borrower or, as applicable, the Holding Company shall from
time to time instruct.  However, at any
time following the occurrence and during the continuance of an Event of Default,
the Administrative Agent may (and, if instructed by the Lenders as specified in
Article VIII of the Credit Agreement, shall) in its (or their) discretion
apply or cause to be applied (subject to collection) the balance from time to
time outstanding to the credit of the Collateral Accounts to the payment of the
Secured Obligations in the manner specified in Section 5.09 hereof.  The balance from time to time in the
Collateral Accounts shall be subject to withdrawal only as provided herein.

 

4.02  Proceeds
of Accounts.  At any time after the
occurrence and during the continuance of an Event of Default, each Obligor
shall, upon the request of the Administrative Agent, instruct all account
debtors and other Persons obligated in respect of all Accounts to make all
payments in respect of the Accounts either (a) directly to the
Administrative Agent (by instructing that such payments be remitted to a post
office box which shall be in the name and under the control of the
Administrative Agent) or (b) to one or more other lenders in the United
States of America (by instructing that such payments be remitted to a post
office box which shall be in the name and under the control of the
Administrative Agent) under arrangements, in form and substance satisfactory to
the Administrative Agent pursuant to which such Obligor shall have irrevocably
instructed such other lender (and such other bank shall have agreed) to remit
all proceeds of such payments directly to the Administrative Agent for deposit
into a Collateral Account.  All payments
made to the Administrative Agent, as provided in the preceding sentence, shall
be immediately deposited in a Collateral Account.  In addition to the foregoing, each Obligor
agrees that, at any time after the occurrence and during the continuance of an
Event of Default, if the proceeds of any Collateral hereunder (including the
payments made in respect of Accounts) shall be received by it, such Obligor
shall, upon the request of the Administrative Agent, as promptly as possible
deposit such proceeds into a Collateral Account.  Until so deposited, all such proceeds shall
be held in trust by such Obligor for and as the property of the Administrative
Agent and shall not be commingled with any other funds or property of such
Obligor.

 

4.03  Investment
of Balance in Collateral Accounts. 
Amounts on deposit in the Collateral Accounts shall be invested from
time to time in such Permitted Investments as the Obligors through the Borrower
(or, after the occurrence and during the continuance of an Event of Default,
the Administrative Agent) shall determine, which Permitted Investments shall if
the relevant Collateral Account is a Securities Account be credited to such
Collateral Account and otherwise shall be held in the name and be under the
control of the Administrative Agent and may be credited to a Collateral
Account; provided that at any time after the occurrence and during the
continuance of an Event of Default, the Administrative Agent may (and, if
instructed by the Lenders as specified in Article VIII of the Credit
Agreement, shall) in its (or their) discretion at any time and from time to
time elect to liquidate any such Permitted Investments and to apply or cause to
be applied the proceeds thereof to the payment of the Secured Obligations in the
manner specified in Section 5.09 hereof.

 

6

 

4.04  Cover
for LC Exposure.  Amounts deposited
into a Collateral Account in respect of the Borrower’s obligations as cover for
LC Exposure pursuant to Section 2.04(k) of the Credit Agreement shall be
held by the Administrative Agent in a separate sub-account (designated the “LC
Exposure Sub-Account”) and all amounts held in such sub-account shall
constitute collateral security first for the LC Exposure outstanding
from time to time and second as collateral security for the other
Secured Obligations hereunder.

 

Section 5.  Further Assurances; Remedies.  In furtherance of the grant of the pledge and
security interest pursuant to Section 3 hereof, the Obligors hereby
jointly and severally agree with each Lender and the Administrative Agent as
follows:

 

5.01  Delivery
and Other Perfection.  Each Obligor
shall:

 

(a)(i) with
respect to any Pledged Shares acquired, received or hereafter held by such
Obligor, take such action as the Administrative Agent shall deem necessary or
appropriate to perfect the pledge and security interest granted by Section 3
hereof in such Pledged Shares, including without limitation (A) to the
extent that they constitute Securities which are not represented by a
certificate, cause the Issuer of such Pledged Shares to either register the
Administrative Agent as the registered owner thereof or agree that it will
comply with Instructions originated by the Administrative Agent with respect to
such Pledged Shares without further consent by such Obligor and (B) to the
extent that they constitute Securities which are represented by a certificate,
deliver to the Administrative Agent any such certificates representing the
Pledged Shares and (ii) if any of the shares, securities, moneys or
property required to be pledged by such Obligor under clauses (a), (b) and (c) of
Section 3 hereof are received by such Obligor, forthwith either (A) transfer
and deliver to the Administrative Agent such shares or securities so received
by such Obligor (together with the certificates for any such shares and
securities duly endorsed in blank or accompanied by undated stock powers or
bond powers (as the case may be) duly executed in blank), all of which
thereafter shall be held by the Administrative Agent, pursuant to the terms of
this Agreement, as part of the Collateral or (B) take such other action as
the Administrative Agent shall deem necessary or appropriate to duly record the
Lien created hereunder in such shares, securities, monies or property referred
to in said clauses (a), (b) and (c);

 

(b) 
give, execute, deliver, file and/or record any financing statement, notice,
instrument, document, agreement or other papers that may be necessary or
desirable (in the judgment of the Administrative Agent) to create, preserve,
perfect or validate the pledge and security interest granted pursuant hereto or
to enable the Administrative Agent to exercise and enforce its rights hereunder
with respect to such pledge and security interest, including, without
limitation, causing any or all of the Collateral to be transferred of record
into the name of the Administrative Agent or its nominee (and the
Administrative Agent agrees that if any Collateral is transferred into its name
or the name of its nominee, the Administrative Agent will thereafter promptly
give to the respective

 

7

 

Obligor copies of any notices and
communications received by it with respect to the Collateral);

 

(c)  keep
full and accurate books and records relating to the Collateral, and stamp or
otherwise mark such books and records in such manner as the Administrative
Agent may reasonably require in order to reflect the security interests granted
by this Agreement;

 

(d)  permit
representatives of the Administrative Agent, upon reasonable notice, at any
time during normal business hours to inspect and make abstracts from its books
and records pertaining to the Collateral, and permit representatives of the
Administrative Agent to be present at such Obligor’s place of business to
receive copies of all communications and remittances relating to the
Collateral, and forward copies of any notices or communications received by
such Obligor with respect to the Collateral, all in such manner as the
Administrative Agent may require; and

 

(e)  upon
the occurrence and during the continuance of any Default, upon request of the
Administrative Agent, promptly notify (and such Obligor hereby authorizes the
Administrative Agent so to notify) each account debtor in respect of any
Accounts that such Collateral has been assigned to the Administrative Agent
hereunder, and that any payments due or to become due in respect of such
Collateral are to be made directly to the Administrative Agent.

 

5.02  Other
Financing Statements and Liens. 
Except as otherwise permitted under Section 7.02 of the Credit
Agreement, without the prior written consent of the Administrative Agent, no
Obligor shall file or suffer to be on file, or authorize or permit to be filed or
to be on file, in any jurisdiction, any financing statement or like instrument
with respect to the Collateral in which the Administrative Agent is not named
as the sole secured party for the benefit of the Lenders.

 

5.03  Preservation
of Rights.  The Administrative Agent
shall not be required to take steps necessary to preserve any rights against
prior parties to any of the Collateral.

 

5.04  Special
Provisions Relating to Certain Collateral.

 

(a)  The Obligors will cause the Pledged
Shares to constitute at all times 100% of the total number of Shares of each
Issuer then outstanding.

 

(b)  So long as no Event of Default
shall have occurred and be continuing, the Obligors shall have the right to
exercise all voting, consensual and other powers of ownership pertaining to the
Pledges Shares for all purposes not inconsistent with the terms of this
Agreement, the Credit Agreement, or any other instrument or agreement referred
to herein or therein, provided that each Obligor agrees that it will not
vote any of the Pledged Shares in any manner that is inconsistent with the
terms of this Agreement, the Credit Agreement, or any such other instrument or
agreement and the Administrative Agent shall execute and deliver to the
Obligors or cause to be executed and delivered to the Obligors all such
proxies, powers of

 

8

 

attorney, dividend and other
orders, and all such instruments, without recourse, as the Obligors may
reasonably request for the purpose of enabling the Obligors to exercise the
rights and powers which they are entitled to exercise pursuant to this Section 5.04(b).

 

(c)  Unless and until an Event of
Default has occurred and is continuing (or unless otherwise prohibited under
the Credit Agreement), the Obligors shall be entitled to receive and retain any
and all dividends and distributions on the Pledged Shares paid in cash out of
earned surplus.

 

(d)  If any Event of Default shall have
occurred, then so long as such Event of Default shall continue, and whether or
not the Administrative Agent or any Lender exercises any available right to
declare any Secured Obligation due and payable or seeks or pursues any other
relief or remedy available to it under applicable law or under this Agreement,
the Credit Agreement or any other agreement relating to such Secured
Obligation, all dividends, other distributions and proceeds on the Collateral
shall be paid directly to the Administrative Agent and retained by it in a
Collateral Account as part of the Collateral, subject to the terms of this
Agreement, and, if the Administrative Agent shall so request in writing, the
Obligors jointly and severally agree to execute and deliver to the
Administrative Agent appropriate additional dividend, distribution and other
orders and documents to that end, provided that if such Event of Default
is cured, any such dividend or distribution theretofore paid to the
Administrative Agent shall, upon request of the Obligors (except to the extent
theretofore applied to the Secured Obligations), be returned by the
Administrative Agent to the respective Obligor.

 

5.05  Events
of Default, etc.  During the period
during which an Event of Default shall have occurred and be continuing:

 

(a)  the
Administrative Agent may make any reasonable compromise or settlement deemed
desirable with respect to any of the Collateral and may extend the time of
payment, arrange for payment in installments, reduce the rate of interest or
forgive any amount of principal of or otherwise modify the terms of, any of the
Collateral;

 

(b)  the
Administrative Agent shall have all of the rights and remedies with respect to
the Collateral of a secured party under the NYUCC (whether or not the NYUCC is
in effect in the jurisdiction where the rights and remedies are asserted) and
such additional rights and remedies to which a secured party is entitled under
the laws in effect in any jurisdiction where any rights and remedies hereunder
may be asserted, including, without limitation, the right, to the maximum
extent permitted by law, to exercise all voting, consensual and other powers of
ownership pertaining to the Collateral as if the Administrative Agent were the
sole and absolute owner thereof (and each Obligor agrees to take all such
action as may be appropriate to give effect to such right);

 

(c)  the
Administrative Agent in its discretion may, in its name or in the name of the
Obligors or otherwise, demand, sue for, collect or receive any money or
property at any time payable or receivable on account of or in exchange for any
of the Collateral, but shall be under no obligation to do so; and

 

9

 

(d)  the
Administrative Agent may, upon ten Business Days’ prior written notice to the
Obligors of the time and place, with respect to the Collateral or any part
thereof which shall then be or shall thereafter come into the possession,
custody or control of the Administrative Agent, the Lenders or any of their
respective agents, sell, lease, assign or otherwise dispose of all or any
portion of such Collateral, at such place or places as the Administrative Agent
deems best, and for cash or on credit or for future delivery (without thereby
assuming any credit risk), at public or private sale, without demand of
performance or notice of intention to effect any such disposition or of the
time or place thereof (except such notice as is required above or by applicable
statute and cannot be waived) and the Administrative Agent or any Lender or
anyone else may be the purchaser, lessee, assignee or recipient of any or all
of the Collateral so disposed of at any public sale (or, to the extent
permitted by law, at any private sale), and thereafter hold the same
absolutely, free from any claim or right of whatsoever kind (other than as
permitted under the Credit Agreement), including any right or equity of
redemption (statutory or otherwise), of the Obligors, any such demand, notice
and right or equity being hereby expressly waived and released.  The Administrative Agent may, without notice
or publication, adjourn any public or private sale or cause the same to be
adjourned from time to time by announcement at the time and place fixed for the
sale, and such sale may be made at any time or place to which the same may be
so adjourned.

 

The proceeds of each collection, sale or other disposition under this Section 5.05
shall be applied in accordance with Section 5.09 hereof.

 

The Obligors recognize that, by reason of
certain prohibitions contained in the Securities Act of 1933, as amended, and
applicable state securities laws, the Administrative Agent may be compelled,
with respect to any sale of all or any part of the Collateral, to limit
purchasers to those who will agree, among other things, to acquire the
Collateral for their own account, for investment and not with a view to the
distribution or resale thereof.  The
Obligors acknowledge that any such private sales may be at prices and on terms
less favorable to the Administrative Agent than those obtainable through a
public sale without such restrictions, and, notwithstanding such circumstances,
agree that any such private sale shall be deemed to have been made in a
commercially reasonable manner and that the Administrative Agent shall have no
obligation to engage in public sales and no obligation to delay the sale of any
Collateral for the period of time necessary to permit the Issuer or issuer
thereof to register it for public sale.

 

5.06  Deficiency.  If the proceeds of sale, collection or other
realization of or upon the Collateral pursuant to Section 5.05 hereof are
insufficient to cover the costs and expenses of such realization and the
payment in full of the Secured Obligations, the Obligors shall remain liable
for any deficiency.

 

5.07  Removals,
etc.  Without at least 30 days’ prior
written notice to the Administrative Agent, no Obligor shall (a) change
its location (as defined in Section 9-307 of the NYUCC), (b) change
its name from the name shown as its current legal name on the signature pages hereof,
or (c) agree to or authorize any modification of the terms of any item of
Collateral that would result in a change thereof from one Uniform Commercial
Code category to another such category, if the effect thereof would be to
result in a loss of perfection of, or diminution of

 

10

 

priority for, the security
interests created hereunder in such item of Collateral, or the loss of control
(within the meaning of

Section 9-106 of the NYUCC) over such item of Collateral.

 

5.08  Private
Sale.  The Administrative Agent and
the Lenders shall incur no liability as a result of the sale of the Collateral,
or any part thereof, at any private sale pursuant to Section 5.05 hereof
conducted in a commercially reasonable manner. 
Each Obligor hereby waives any claims against the Administrative Agent
or any Lender arising by reason of the fact that the price at which the
Collateral may have been sold at such a private sale was less than the price
which might have been obtained at a public sale or was less than the aggregate
amount of the Secured Obligations, even if the Administrative Agent accepts the
first offer received and does not offer the Collateral to more than one
offeree.

 

5.09  Application
of Proceeds.  Except as otherwise
herein expressly provided and except as provided below in this Section 5.09,
the proceeds of any collection, sale or other realization of all or any part of
the Collateral pursuant hereto, and any other cash at the time held by the
Administrative Agent under Section 4 hereof or this Section 5, shall
be applied by the Administrative Agent:

 

First,
to the payment of the costs and expenses of such collection, sale or other
realization, including reasonable out-of-pocket costs and expenses of the
Administrative Agent and the fees and expenses of its agents and counsel, and
all expenses incurred and advances made by the Administrative Agent in
connection therewith;

 

Next,
to the payment in full of the Secured Obligations, equally and ratably in
accordance with the respective amounts thereof then due and owing or as the Lenders
holding the same may otherwise agree; and

 

Finally,
to the payment to the respective Obligor, or its successors or assigns, or as a
court of competent jurisdiction may direct, of any surplus then remaining.

 

As used in this Section 5, “proceeds”
of Collateral shall mean cash, securities and other property realized in
respect of, and distributions in kind of, Collateral, including any thereof
received under any reorganization, liquidation or adjustment of debt of the
Obligors or any issuer of or obligor on any of the Collateral.

 

5.10  Attorney-in-Fact.  Without limiting any rights or powers granted
by this Agreement to the Administrative Agent while no Event of Default has
occurred and is continuing, upon the occurrence and during the continuance of any
Event of Default the Administrative Agent is hereby appointed the attorney-in-fact
of each Obligor for the purpose of carrying out the provisions of this Section 5
and taking any action and executing any instruments which the Administrative
Agent may deem necessary or advisable to accomplish the purposes hereof, which
appointment as attorney-in-fact is irrevocable and coupled with an
interest.  Without limiting the
generality of the foregoing, so long as the Administrative Agent shall be
entitled under this Section 5 to make collections in respect of the
Collateral, the Administrative Agent shall have the right and power to receive,
endorse and collect all checks made payable to

 

11

 

the order of any Obligor
representing any dividend, payment or other distribution in respect of the
Collateral or any part thereof and to give full discharge for the same.

 

5.11  Termination.  When all Secured Obligations shall have been
paid in full, the Commitments of the Lenders under the Credit Agreement, all LC
Exposure and the Hedging Obligations shall have expired or been terminated,
this Agreement shall terminate, and the Administrative Agent shall forthwith
cause to be assigned, transferred and delivered, against receipt but without
any recourse, warranty or representation whatsoever, any remaining Collateral
and money received in respect thereof, to or on the order of the respective
Obligors.  The Administrative Agent shall
also execute and deliver to the respective Obligors upon such termination such
Uniform Commercial Code termination statements and such other documentation as
shall be reasonably requested by the respective Obligors to effect the
termination and release of the Liens on the Collateral.

 

5.12  Further
Assurances.  Each Obligor agrees
that, from time to time upon the written request of the Administrative Agent,
such Obligor will execute and deliver such further documents and do such other
acts and things as the Administrative Agent may reasonably request in order
fully to effect the purposes of this Agreement.

 

Section 6.  Miscellaneous.

 

6.01  No
Waiver.  No failure on the part of
the Administrative Agent or any Lender to exercise, and no course of dealing
with respect to, and no delay in exercising, any right, power or remedy
hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise by the Administrative Agent or any Lender of any right, power or
remedy hereunder preclude any other or further exercise thereof or the exercise
of any other right, power or remedy.  The
remedies herein are cumulative and are not exclusive of any remedies provided
by law.

 

6.02  Notices.  All notices, requests, consents and demands
hereunder shall be in writing and telecopied or delivered to the intended
recipient at its “Address for Notices” specified pursuant to Section 10.01
of the Credit Agreement and shall be deemed to have been given at the times
specified in said Section 10.01.

 

6.03  Expenses.  The Obligors jointly and severally agree to
reimburse each of the Lenders and the Administrative Agent for all reasonable
costs and expenses of the Lenders and the Administrative Agent (including,
without limitation, the reasonable fees and expenses of legal counsel) in
connection with (a) any Default and any enforcement or collection
proceeding resulting therefrom, including, without limitation, all manner of
participation in or other involvement with (i) performance by the
Administrative Agent of any obligations of the Obligors in respect of the
Collateral that the Obligors have failed or refused to perform, (ii) bankruptcy,
insolvency, receivership, foreclosure, winding up or liquidation proceedings,
or any actual or attempted sale, or any exchange, enforcement, collection,
compromise or settlement in respect of any of the Collateral, and for the care
of the Collateral and defending or asserting rights and claims of the
Administrative Agent in respect thereof, by litigation or otherwise, including
expenses of insurance, (iii) judicial or regulatory proceedings and (iv) workout,
restructuring or

 

12

 

other negotiations or
proceedings (whether or not the workout, restructuring or transaction
contemplated thereby is consummated) and (b) the enforcement of this Section 6.03,
and all such costs and expenses shall be Secured Obligations entitled to the
benefits of the collateral security provided pursuant to Section 3 hereof.

 

6.04  Amendments,
Etc.  The terms of this Agreement may
be waived, altered or amended only by an instrument in writing duly executed by
each Obligor and the Administrative Agent. 
Any such amendment or waiver shall be binding upon the Administrative
Agent and each Lender, each holder of any of the Secured Obligations and each
Obligor.

 

6.05  Successors
and Assigns.  This Agreement shall be
binding upon and inure to the benefit of the respective successors and assigns
of each Obligor, the Administrative Agent, the Lenders and each holder of any
of the Secured Obligations, provided that no Obligor shall assign or
transfer its rights or obligations hereunder without the prior written consent
of the Administrative Agent.

 

6.06  Captions.  The captions and section headings
appearing herein are included solely for convenience of reference and are not
intended to affect the interpretation of any provision of this Agreement.

 

6.07  Counterparts.  This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one and the same
instrument and any of the parties hereto may execute this Agreement by signing
any such counterpart.

 

6.08  Governing
Law; Submission to Jurisdiction. 
This Agreement shall be governed by, and construed in accordance with,
the law of the State of New York.  Each
Obligor hereby submits to the nonexclusive jurisdiction of the United States
District Court for the Southern District of New York and of any New York state
court sitting in New York City for the purposes of all legal proceedings
arising out of or relating to this Agreement or the transactions contemplated
hereby.  Each Obligor irrevocably waives,
to the fullest extent permitted by applicable law, any objection that it may
now or hereafter have to the laying of the venue of any such proceeding brought
in such a court and any claim that any such proceeding brought in such a court
has been brought in an inconvenient forum.

 

6.09  Waiver
of Jury Trial.  EACH PARTY
HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

6.10  Certain
Regulatory Requirements.  Any
provision contained herein to the contrary notwithstanding, no action shall be
taken hereunder by the Administrative Agent or any Lender with respect to any
item of Collateral unless and until all applicable requirements (if any) of the
FCC under the Federal Communications Act of 1934, as amended, and the
respective rules and regulations thereunder and thereof, as well as any
other Federal, state or local laws, rules and regulations of other
regulatory or governmental bodies applicable to or having jurisdiction over

 

13

 

any Obligor (or any entity
under the control of such Obligor), have been satisfied with respect to such
action and there have been obtained such consents, approvals and authorizations
(if any) as may be required to be obtained from the FCC and any other
governmental authority under the terms of any license or similar operating
right held by such Obligor (or any entity under the control of such
Obligor).  It is the intention of the
parties hereto that the Liens in favor of the Administrative Agent on the
Collateral shall in all relevant aspects be subject to and governed by said
statutes, rules and regulations and that nothing in this Agreement shall
be construed to diminish the control exercised by the Obligors except in
accordance with the provisions of such statutory requirements, rules and
regulations.  Each Obligor agrees that
upon request from time to time by the Administrative Agent after the occurrence
and during the continuance of an Event of Default, it will use its best efforts
to obtain any governmental, regulatory or third party consents, approvals or
authorizations referred to in this Section 6.10.

 

6.11  Administrative
Agents and Attorneys-in-Fact.  The
Administrative Agent may employ agents and attorneys-in-fact in connection
herewith and shall not be responsible for the negligence or misconduct of any
such agents or attorneys-in-fact selected by it in good faith.

 

6.12  Severability.  If any provision hereof is invalid and
unenforceable in any jurisdiction, then, to the fullest extent permitted by
law, (a) the other provisions hereof shall remain in full force and effect
in such jurisdiction and shall be liberally construed in favor of the
Administrative Agent and the Lenders in order to carry out the intentions of
the parties hereto as nearly as may be possible and (b) the invalidity or
unenforceability of any provision hereof in any jurisdiction shall not affect
the validity or enforceability of such provision in any other jurisdiction.

 

6.13  Additional
Obligors.  As contemplated in Section 6.09
of the Credit Agreement, (a) a new Subsidiary of the Borrower formed or
acquired by the Borrower after the date hereof may become a “Subsidiary
Guarantor” under the Credit Agreement and an “Obligor” under this Agreement or (b) an
Intermediate Holding Company formed by the Holding Company after the date
hereof may become a “Guarantor” under the Credit Agreement and an “Obligor”
under this Agreement, in each case by executing and delivering to the
Administrative Agent a Guarantee Assumption Agreement in the form of Exhibit B
to the Credit Agreement (or other instrument satisfactory to the Administrative
Agent).  Accordingly, upon the execution
and delivery of any such Guarantee Assumption Agreement by any such entity,
such entity shall automatically and immediately, and without any further action
on the part of any Person, become an “Obligor” for all purposes of this
Agreement, and each of the Annexes hereto shall be supplemented in the manner
specified in such Guarantee Assumption Agreement.

 

14

 

IN WITNESS WHEREOF, the parties hereto have
caused this Security Agreement to be duly executed as of the day and year first
above written.

 

 

	
   

  	
  BORROWER

  
	
   

  	
   

  
	
   

  	
  SINCLAIR TELEVISION GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HOLDING COMPANY

  
	
   

  	
   

  
	
   

  	
  SINCLAIR BROADCAST GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

15

 

	
   

  	
  SUBSIDIARY GUARANTORS

  
	
   

  	
   

  
	
   

  	
  KSMO, INC.

  
	
   

  	
  WCGV, INC.

  
	
   

  	
  SINCLAIR ACQUISITION IV, INC.

  
	
   

  	
  WLFL, INC.

  
	
   

  	
  SINCLAIR MEDIA I, INC.

  
	
   

  	
  WSMH, INC.

  
	
   

  	
  SINCLAIR MEDIA II, INC.

  
	
   

  	
  WSTR LICENSEE, INC.

  
	
   

  	
  WGME, INC.

  
	
   

  	
  SINCLAIR MEDIA III, INC.

  
	
   

  	
  WTTO, INC.

  
	
   

  	
  WTVZ, INC.

  
	
   

  	
  WYZZ, INC.

  
	
   

  	
  KOCB, INC.

  
	
   

  	
  KSMO LICENSEE, INC.

  
	
   

  	
  WDKY, INC.

  
	
   

  	
  WYZZ LICENSEE, INC.

  
	
   

  	
  KLGT, INC.

  
	
   

  	
  SINCLAIR TELEVISION COMPANY II, INC.

  
	
   

  	
  WSYX LICENSEE, INC.

  
	
   

  	
  WGGB, INC.

  
	
   

  	
  WTWC, INC.

  
	
   

  	
  SINCLAIR COMMUNICATIONS II, INC.

  
	
   

  	
  SINCLAIR HOLDINGS I, INC.

  
	
   

  	
  SINCLAIR HOLDINGS II, INC.

  
	
   

  	
  SINCLAIR HOLDINGS III, INC.

  
	
   

  	
  SINCLAIR TELEVISION COMPANY, INC.

  
	
   

  	
  SINCLAIR TELEVISION OF BUFFALO, INC.

  
	
   

  	
  SINCLAIR TELEVISION OF CHARLESTON,

  INC.

  
	
   

  	
  SINCLAIR TELEVISION OF NASHVILLE, INC.

  
	
   

  	
  SINCLAIR TELEVISION OF NEVADA, INC.

  
	
   

  	
  SINCLAIR TELEVISION OF TENNESSEE, INC.

  
	
   

  	
  SINCLAIR TELEVISION LICENSE HOLDER,

  INC.

  
	
   

  	
  SINCLAIR TELEVISION OF DAYTON, INC.

  
	
   

  	
  SINCLAIR ACQUISITION VII, INC.

  
	
   

  	
  SINCLAIR ACQUISITION VIII, INC.

  
	
   

  	
  SINCLAIR ACQUISITION IX, INC.

  
	
   

  	
  SINCLAIR ACQUISITION X, INC.

  
	
   

  	
  MONTECITO BROADCASTING

  CORPORATION

  
	
   

  	
  CHANNEL 33, INC.

  
	
   

  	
  WNYO, INC.

  

 

16

 

	
   

  	
  NEW YORK TELEVISION, INC.

  
	
   

  	
  BIRMINGHAM (WABM-TV) LICENSEE, INC.

  
	
   

  	
  RALEIGH (WRDC-TV) LICENSEE, INC.

  
	
   

  	
  SAN ANTONIO (KRRT-TV) LICENSEE, INC.

  
	
   

  	
  WVTV LICENSEE, INC.

  
	
   

  	
  SINCLAIR PROPERTIES, LLC

  
	
   

  	
  SINCLAIR PROPERTIES II, LLC

  
	
   

  	
   

  
	
   

  	
  KBSI LICENSEE L.P.

  
	
   

  	
  WMMP LICENSEE L.P.

  
	
   

  	
  WSYT LICENSEE L.P.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Sinclair Properties, LLC, General

  Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WEMT LICENSEE L.P.

  
	
   

  	
  WKEF LICENSEE L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Sinclair Properties II, LLC, General

  Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WGME LICENSEE, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  WGME, Inc., Member

  
	
   

  	
   

  
	
   

  	
  WICD LICENSEE, LLC

  
	
   

  	
  WICS LICENSEE, LLC

  
	
   

  	
  KGAN LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Sinclair Acquisition IV, Inc.,

  
	
   

  	
   

  	
   

  	
  Member

  
	
   

  	
   

  
	
   

  	
  WSMH LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  WSMH, Inc., Member

  
	
   

  	
   

  
	
   

  	
  WPGH LICENSEE, LLC

  
	
   

  	
  KDNL LICENSEE, LLC

  
	
   

  	
  WCWB LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Sinclair Media I, Inc., Member

  
	
   

  	
   

  
	
   

  	
  WTVZ LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  WTVZ, Inc., Member

  
	
   

  	
   

  
	
   

  	
  KLGT LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  KLGT, Inc., Member

  

 

17

 

	
   

  	
  WCGV LICENSEE, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  WCGV, Inc., Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SCI – INDIANA LICENSEE, LLC

  
	
   

  	
  KUPN LICENSEE, LLC

  
	
   

  	
  WEAR LICENSEE, LLC

  
	
   

  	
  WFGX LICENSEE, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Sinclair Media II, Inc., Member

  
	
   

  	
   

  
	
   

  	
  WLFL LICENSEE, LLC

  
	
   

  	
  WRDC, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  WLFL, Inc. – Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WTTO LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  WTTO, Inc., Member

  
	
   

  	
   

  
	
   

  	
  WTWC LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  WTWC, Inc., Member

  
	
   

  	
   

  
	
   

  	
  WGGB LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  WGGB, Inc., Member

  
	
   

  	
   

  
	
   

  	
  KOCB LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  KOCB, Inc., Member

  
	
   

  	
   

  
	
   

  	
  WDKY LICENSEE, LLC

  
	
   

  	
  KOKH, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  WDKY, Inc., Member

  
	
   

  	
   

  
	
   

  	
  KOKH LICENSEE, LLC,

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  KOKH, LLC, sole Member of

  KOKH Licensee, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  WDKY, Inc., sole Member of

  KOKH, LLC

  
	
   

  	
   

  
	
   

  	
  WUPN LICENSEE, LLC

  
	
   

  	
  WUTV LICENSEE, LLC

  
	
   

  	
  WXLV LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Sinclair Television of Buffalo, Inc., Member

  

 

18

 

	
   

  	
  WUXP LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Sinclair Television of Tennessee,

  Inc., Member

  
	
   

  	
   

  
	
   

  	
  WCHS LICENSEE, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Sinclair Media III, Inc., Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SINCLAIR FINANCE, LLC

  
	
   

  	
  SINCLAIR FINANCE HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  KLGT, Inc., Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WZTV LICENSEE, LLC

  
	
   

  	
  WVAH LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Sinclair Television of Nashville,

  Inc., Member

  
	
   

  	
   

  
	
   

  	
  WMSN LICENSEE, LLC

  
	
   

  	
  WUHF LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Sinclair Television Company, Inc.,

  Member

  
	
   

  	
   

  
	
   

  	
  WTAT LICENSEE, LLC

  
	
   

  	
  WRLH LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Sinclair Television of Charleston,

  Inc., Member

  
	
   

  	
   

  
	
   

  	
  WRGT LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Sinclair Television of Dayton, Inc.,

  Member

  
	
   

  	
   

  
	
   

  	
  SINCLAIR NEWSCENTRAL, LLC

  
	
   

  	
  CHESAPEAKE TELEVISION LICENSEE,
  LLC

  
	
   

  	
  KABB LICENSEE, LLC

  
	
   

  	
  SCI –
  SACRAMENTO LICENSEE, LLC

  
	
   

  	
  WLOS
  LICENSEE, LLC

  
	
   

  	
  SAN ANTONIO TELEVISION, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Sinclair Communications, LLC, Sole

  Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Sinclair Television Group, Inc., Sole

  Member of Sinclair

  Communications, LLC

  

 

19

 

	
   

  	
  SINCLAIR PROGRAMMING COMPANY, LLC

  
	
   

  	
  SINCLAIR COMMUNICATIONS, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Sinclair Television Group, Inc.,

  Member

  
	
   

  	
   

  
	
   

  	
  KDSM, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Sinclair Broadcast Group, Inc.,

  Member

  
	
   

  	
   

  
	
   

  	
  KDSM LICENSEE, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  KDSM, LLC, Sole Member of

  KDSM Licensee, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Sinclair Broadcast Group, Inc., Sole

  Member of KDSM, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  David B. Amy, in his capacity as Executive Vice President, Secretary
  or Manager, as the case may be

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
     as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

20

ANNEX 1

 

FILING
DETAILS

 

	
  Current

  Legal

  Name

  (no trade

  names)

  	
   

  	
  Type of

  Organization

  (corporation,

  limited liability

  company, etc.)

  	
   

  	
  Jurisdiction

  of

  Organization

  	
   

  	
  Organizational

  ID Number

  (if applicable)

  	
   

  	
  Current

  Mailing

  Address

  	
   

  	
  Place of

  Business or

  Location of

  Chief

  Executive

  Officer

  	
   

  	
  Former

  Legal

  Name(s)

  (if any)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Annex 1 to
Amended and Restated Security Agreement

 

 

ANNEX 2

 

LIST OF
PLEDGED SHARES

 

[NAME OF OBLIGOR]

 

	
  Certificate

  Issuer

  	
   

  	
  Registered

  Numbers

  	
   

  	
  Owner

  	
   

  	
  Number of Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Annex 2 to Amended and Restated Security Agreement

 

 

EXHIBIT B

 

[Form of Guarantee
Assumption Agreement]

 

GUARANTEE ASSUMPTION AGREEMENT

 

GUARANTEE ASSUMPTION AGREEMENT dated as of [           ]
by [NAME OF ADDITIONAL SUBSIDIARY GUARANTOR], a [           ]
[corporation] (the “Additional Subsidiary Guarantor”), in favor of
JPMorgan Chase Bank, N.A., as administrative agent for the lenders or other
financial institutions or entities party as “Lenders” to the Credit Agreement
referred to below (in such capacity, together with its successors in such
capacity, the “Administrative Agent”).

 

Sinclair Television Group, Inc., the
Guarantors referred to therein, the Lenders party thereto from time to time and
the Administrative Agent, are parties to the Second Amended and Restated Credit
Agreement dated as of May 12, 2005 (as modified and supplemented and in
effect from time to time, the “Credit Agreement”).

 

Pursuant to Section 6.09(a) of the
Credit Agreement, the Additional Subsidiary Guarantor hereby agrees to become a
“Subsidiary Guarantor” for all purposes of the Credit Agreement, and an “Obligor”
for all purposes of the Security Agreement. 
Without limiting the foregoing, the Additional Subsidiary Guarantor
hereby, jointly and severally with the other Guarantors, guarantees to each
Lender and the Administrative Agent and their respective successors and assigns
the prompt payment in full when due (whether at stated maturity, by
acceleration or otherwise) of all Guaranteed Obligations (as defined in Section 3.01
of the Credit Agreement) in the same manner and to the same extent as is
provided in Article III of the Credit Agreement.  In addition, the Additional Subsidiary
Guarantor hereby makes the representations and warranties set forth in
Sections 4.01, 4.02 and 4.03 of the Credit Agreement, and in Section 2
of the Security Agreement, with respect to itself and its obligations under
this Agreement, as if each reference in such Sections to the Loan Documents
included reference to this Agreement.

 

The Additional Subsidiary Guarantor hereby
instructs its counsel to deliver the opinions referred to in Section 6.09(a) of
the Credit Agreement to the Lenders and the Administrative Agent.

 

Guaranty Assumption Agreement

 

 

IN WITNESS WHEREOF, the Additional Subsidiary
Guarantor has caused this Guarantee Assumption Agreement to be duly executed
and delivered as of the day and year first above written.

 

 

	
   

  	
  [NAME OF ADDITIONAL SUBSIDIARY

  
	
   

  	
  GUARANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted and agreed:

  	
   

  
	
   

  	
   

  
	
  JPMORGAN
  CHASE BANK, N.A.,

  as Administrative Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

2

EXHIBIT C

 

[Form of Assignment and
Assumption]

 

ASSIGNMENT AND ASSUMPTION

 

This Assignment and Assumption (the “Assignment
and Assumption”) is dated as of the Effective Date set forth below and is
entered into by and between [                     ]
(the “Assignor”) and the entity listed below as “Assignee” (the “Assignee”).  Capitalized terms used but not defined herein
shall have the meanings given to them in the Credit Agreement identified
below  (as amended, the “Credit
Agreement”), receipt of a copy of which is hereby acknowledged by the
Assignee.  The Standard Terms and
Conditions set forth in Annex 1 attached hereto are hereby agreed to and
incorporated herein by reference and made a part of this Assignment and
Assumption as if set forth herein in full.

 

For an agreed
consideration, the Assignor hereby irrevocably sells and assigns to the Assignee,
and the Assignee hereby irrevocably purchases and assumes from the Assignor,
subject to and in accordance with the Standard Terms and Conditions and the
Credit Agreement, as of the Effective Date inserted by the Administrative Agent
as contemplated below (i) all of the Assignor’s rights and obligations in
its capacity as a Lender under the Credit Agreement and any other documents or
instruments delivered pursuant thereto to the extent related to the amount and
percentage interest identified below of all of such outstanding rights and
obligations of the Assignor under the respective facilities identified below
(including any letters of credit, guarantees, and swingline loans included in
such facilities) and (ii) to the extent permitted to be assigned under
applicable law, all claims, suits, causes of action and any other right of the
Assignor (in its capacity as a Lender) against any Person, whether known or
unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions
governed thereby or in any way based on or related to any of the foregoing,
including contract claims, tort claims, malpractice claims, statutory claims
and all other claims at law or in equity related to the rights and obligations
sold and assigned pursuant to clause (i) above (the rights and
obligations sold and assigned pursuant to clauses (i) and (ii) above
being referred to herein collectively as the “Assigned Interest”).  Such sale and assignment is without recourse
to the Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by the Assignor.

 

	
  1.             Assignor:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. Assignee:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [and is an Affiliate/Approved Fund of [identify Lender](1)]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.             Borrower:

  	
  Sinclair Television Group, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4. Administrative Agent:

  	
   

  	
  JPMorgan Chase Bank, N.A., as the
  administrative agent under the Credit Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Credit Agreement:

  	
   

  	
  Second Amended and Restated Credit
  Agreement dated as of May 12, 2005 

  
	
   

  	
  between Sinclair Television Group,

  
							

 

(1) Select if
applicable; otherwise delete.

 

Assignment and Assumption

 

 

	
   

  	
   Inc., the Guarantors party thereto,
  the Lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative
  Agent

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Assigned Interest:

  

 

 

	
  Facility Assigned

  	
   

  	
  Aggregate Term Loan

  Commitments/Loans for

  all Lenders

  	
   

  	
  Amount of Term Loans

  Assigned

  	
   

  	
  Percentage Assigned of

  Term Loans(2)

  	
   

  
	
  Term Loan

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
  %

  	
   

  
	
  Revolving Loan

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
  %

  	
   

  

 

 

Effective Date:                
   , 20[  ].

 

(2) Set forth, to at least 9 decimals, as a percentage of the
Commitments/Loans of all Lenders thereunder.

 

2

 

The terms set forth in this Assignment and Assumption are hereby agreed
to:

 

	
   

  	
  ASSIGNOR

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  

 

3

 

	
   

  	
  ASSIGNEE

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  

 

4

 

[Accepted:

 

JPMORGAN CHASE BANK, N.A.,

  as Administrative Agent

 

 

	
  By

  	
   

  	
   

  
	
    Title:

  

 

5

 

Accepted:

 

SINCLAIR TELEVISION GROUP, INC.

 

 

	
  By

  	
   

  	
   

  
	
    Title:](3)

  

 

(3) Insert only for new Lenders

 

6

 

ANNEX 1

 

SINCLAIR TELEVISION GROUP, INC.

Second Amended and Restated
Credit Agreement dated as of May 12, 2005

 

STANDARD TERMS AND CONDITIONS
FOR

ASSIGNMENT AND ASSUMPTION

 

1.  Representations
and Warranties.

 

1.1  Assignor.  The Assignor (a) represents and warrants
that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the
Assigned Interest is free and clear of any lien, encumbrance or other adverse
claim and (iii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or
representations made in or in connection with the Credit Agreement or any other
Loan Document, (ii) the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Loan Documents or any collateral
thereunder, (iii) the financial condition of the Borrower, any of its
Subsidiaries or Affiliates or any other Person obligated in respect of any Loan
Document or (iv) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

 

1.2.  Assignee.  The Assignee (a) represents and warrants
that (i) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby and to become a Lender under
the Credit Agreement, (ii) it satisfies the requirements, if any,
specified in the Credit Agreement that are required to be satisfied by it in
order to acquire the Assigned Interest and become a Lender, (iii) from and
after the Effective Date, it shall be bound by the provisions of the Credit
Agreement as a Lender thereunder and, to the extent of the Assigned Interest,
shall have the obligations of a Lender thereunder, (iv) it has received a
copy of the Credit Agreement, together with copies of the most recent financial
statements delivered pursuant to Section 6.01 thereof, as applicable, and
such other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into this Assignment and Assumption
and to purchase the Assigned Interest on the basis of which it has made such
analysis and decision independently and without reliance on the Administrative
Agent or any other Lender, and (v) if it is a Foreign Lender, attached to
the Assignment and Assumption is any documentation required to be delivered by
it pursuant to the terms of the Credit Agreement, duly completed and executed
by the Assignee; and (b) agrees that (i) it will, independently and
without reliance on the Administrative Agent, the Assignor or any other Lender,
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Loan Documents, and (ii) it will perform in accordance with
their terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

 

2. Payments.  From and after the Effective Date, the
Administrative Agent shall make all payments in respect of the Assigned
Interest (including payments of principal, interest, fees and other amounts) to
the Assignor for amounts which have accrued to but excluding the Effective Date
and to the Assignee for amounts which have accrued from and after the Effective
Date.

 

3.  General Provisions.  This Assignment and Assumption shall be
binding upon, and inure to the benefit of, the parties hereto and their
respective successors and permitted assigns. 
This Assignment and Assumption may be executed in any number of
counterparts (and by different parties

 

 

hereto on different
counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute one instrument.  Delivery of an executed counterpart of a
signature page of this Assignment and Assumption by telecopy shall be
effective as delivery of a manually executed counterpart of this Assignment and
Assumption.  This Assignment and
Assumption shall be governed by, and construed in accordance with, the law of
the State of New York.

 

2

 

EXHIBIT D

 

[Form of Asset Use and
Operating Agreement]

 

ASSET USE AND OPERATING
AGREEMENT

 

ASSET USE AND OPERATING AGREEMENT dated as of
[       ] between [                ],
a [            ]
[corporation] (the “License Subsidiary”), and [             ],
a [                ]
[corporation] (the “Station Operator”).

 

WITNESSETH:

 

WHEREAS, the License Subsidiary holds the
licenses issued by the Federal Communications Commission (the “FCC”) to
operate [television] [radio] station        [-TV,
Channel      ][-[AM/FM]], [City, State--Complete as
appropriate] (the “Station”) identified on Annex 1 hereto;

 

WHEREAS, the Station Operator, the owner of
all of the stock of the License Subsidiary, owns all of the assets and
facilities (the “Facilities”) used or useful in the operation of the
Station; and

 

WHEREAS, the License Subsidiary and the
Station Operator wish to enter into this Agreement to ensure that the Station
Operator manages the Station’s operations in accordance with policies established
by the License Subsidiary, and in accordance with the Communications Act of
1934, as amended, and the rules and regulations promulgated thereunder by
the FCC;

 

NOW, THEREFORE, in consideration of the
mutual promises and covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties agree as follows:

 

Section 1.  Station Operator Duties.  Subject to the provisions of Section 2
hereof, the Station Operator shall manage and direct the day-to-day operations
of the Station, including, but not limited to, providing staffing, determining
the Station’s programming schedule, selling advertising time, operating and
maintaining the Facilities, and assuring compliance with FCC requirements.  The Station Operator shall maintain such
facilities and equipment and hire and supervise such employees as are necessary
to the fulfillment of its responsibilities hereunder.  It is understood that all expenses and
capital costs incurred in operating the Station shall be paid by the Station
Operator and all advertising and other receipts collected in operating the
Station shall be retained by the Station Operator.  The Station Operator shall not be entitled to
any compensation for services rendered hereunder.

 

Section 2.  Control by License Subsidiary.  The License Subsidiary shall at all times
exercises ultimate control over the programming, personnel, operations and
policies of the

 

Asset Use and Operating Agreement

 

 

Station, and the Station Operator
shall operate the Station in compliance therewith.  The Station Operator shall provide the
License Subsidiary with such books of account, records and reports, including
quarterly programming schedules and reports, as the License Subsidiary may
reasonably request from time to time, and shall afford the License Subsidiary
and its officers and employees access at all times to all aspects of the
Station’s operations.  Without limiting
the foregoing reservation of control, the License Subsidiary shall have the
right throughout the term of this Agreement (a) to require the deletion of
any program if the License Subsidiary believes that its transmission would be
contrary to the public interest, (b) to require the transmission of any
program if the License Subsidiary believes that its transmission would serve
the public interest, and (c) to relieve any person of his or her duties at
the Station if the License Subsidiary believes that his or her conduct is
inconsistent with the policies or rules of the License Subsidiary or the
FCC or is otherwise inconsistent with the public interest.  This Section 2 shall be construed so as
to vest in the License Subsidiary all powers that may be necessary for
discharge of its responsibilities as a licensee under the Communications Act of
1934, as amended, and the policies and rules promulgated thereunder by the
FCC.

 

Section 3.  Compliance With Law.  The Station Operator shall at all times
operate the Station in compliance with the Communications Act of 1934, as
amended, and all rules, regulations and policies of the FCC and any other
governmental agency with authority over the Station, as such laws, rules,
regulations and policies are in effect from time to time.

 

Section 4.  Modification of Facilities.  The Station Operator may, at its discretion,
modify the Station’s Facilities from time to time, at its expense, subject to
the License Subsidiary’s approval of the modifications.  If prior FCC approval of such modifications
is required, the Station Operator shall prepare an appropriate application for
the License Subsidiary to sign and file with the FCC, and no such change shall
be implemented prior to the grant of FCC consent.  Any application for a license to cover any
construction permit shall similarly be prepared by the Station Operator for
signature and filing by the License Subsidiary.

 

Section 5.  FCC Filings.  The Station Operator shall cooperate with the
License Subsidiary in furnishing any information that may be requested by the
FCC in connection with the operation of the Station, including, but not limited
to, any technical and/or engineering information.  The Station Operator shall prepare, for the
License Subsidiary’s signature and filing with the FCC, an appropriate license
renewal application and such other reports, documents, and filings as may be
necessary from time to time to keep in force and effect an FCC authorization
for operating the Station. The License Subsidiary shall cooperate with the
Station Operator in signing and filing such license renewal applications and
other reports, documents, and filings as the Station Operator shall from time
to time prepare and submit to the License Subsidiary.

 

Section 6.  Notices.  All notices hereunder shall be given in
writing by first class United States mail, postage prepaid, addressed as
follows, or to such other address as either party may specify from time to
time:

 

If to the License Subsidiary:

 

2

 

[Name of License Subsidiary]

 

 

Attention:

 

If to the Station Operator:

 

[Name of Station Operator]

 

 

Attention:

 

Section 7.  Term. 
The term of this Agreement shall begin on the date hereof and shall
terminate upon the occurrence of any of the following events (unless earlier
terminated pursuant to the provisions of Section 9 hereof):

 

(a) 
revocation or expiration without renewal of the principal broadcasting license
held by the License Subsidiary to operate the Station; or

 

(b) 
mutual agreement of the parties to terminate this Agreement.

 

Section 8.  Termination.  The License Subsidiary shall have the right
to terminate this Agreement by written notice to the Station Operator at any
time during the term hereof upon the occurrence of any of the following events:

 

(a)  any
material failure by the Station Operator to perform any of its obligations
under this Agreement;

 

(b)  the
insolvency of the Station Operator, appointment of a receiver of the property
of the Station Operator, or any assignment for the benefit of creditors of the
Station Operator;

 

(c)  the
filing of a voluntary or involuntary petition by or against the Station
Operator under the bankruptcy laws of the United States of America; or

 

(d)  the
foreclosure of any lien or security interest in, or the placement or issuance
of any levy, writ of attachment, writ of garnishment, writ of execution or
similar process against, the Station Operator or any property of the Station
Operator (including the shares of stock of the License Subsidiary owned by the
Station Operator) or securities representing an ownership interest in the
Station Operator.

 

Section 9.  Assignment.  The Station Operator shall not assign this
Agreement or any of the Station Operator’s rights or obligations under this
Agreement or sell or transfer the Facilities without the prior written consent
of the License Subsidiary, and any attempted assignment, sale or transfer by
the Station Operator not in compliance with this provision shall,

 

3

 

at the License Subsidiary’s
option, be null and void; provided that the Station Operator may replace
portions of the Facilities from time to time provided that such replacements do
not impair the Station’s operations. 
Nothing herein shall be interpreted to prevent the Station Operator from
granting a mortgage on or other security interest in any of the Facilities or
in its rights or obligations under this Agreement.  This Agreement shall bind and inure to the
benefit of the permitted successors and assigns of the parties.

 

Section 10.  Governing Law.  This Agreement shall be governed by and
construed in accordance with the law of the State of New York.

 

Section 11.  Construction.  It is the intent of the parties that
operation of the Station under this Agreement comply with the rules and
regulations of the FCC, and all provisions of this Agreement shall be so
construed.

 

Section 12.  Severability.  If any provision of this Agreement shall be
declared void or invalid by any governmental authority with jurisdiction
thereof, then the remainder of this Agreement shall remain in full force and
effect without the offending provision, provided that such remainder
substantially reflects the original agreement of the parties.

 

Section 13.  Amendments.  This Agreement represents the entire
understanding of the parties hereto with respect to the subject matter hereof
and may be amended only by a writing signed by both parties.

 

Section 14.  Prior Agreements Superseded.  This Agreement shall supersede all prior
agreements between the parties hereto relating to the management or operation
of the Station.

 

4

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date first above written.

 

	
  [NAME OF LICENSE SUBSIDIARY]

  	
  [NAME OF STATION OPERATOR]

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:

  	
  Name:

  
	
  Title:

  	
  Title:

  
						

 

5

 

ANNEX 1

 

Broadcast
Licenses

 

 

EXHIBIT E

 

[Form of Consent and
Agreement]

 

CONSENT AND AGREEMENT (this “Consent and
Agreement”) dated as of [                 ]
by [NAME OF CONSENTING PARTY], a [corporation] duly organized and validly
existing under the laws of the State of [              ]
(the “Consenting Party”).

 

Sinclair Television Group, Inc., a
Maryland corporation (the “Company(1)“), Sinclair Broadcast Group, Inc.,
a Maryland corporation (the “Holding Company”), the subsidiaries of the
Company and the Holding Company party as Subsidiary Guarantors to the Credit
Agreement referred to below (collectively, the “Subsidiary Guarantors”),
including without limitation, [                 ],
a [              ]
[corporation] (the “Contract Counterparty”), the financial institutions
named therein (the “Lenders”) and JPMorgan Chase Bank, N.A., as agent
for the Lenders (in such capacity, together with its successors in such
capacity, the “Administrative Agent”) are parties to a Second Amended
and Restated Credit Agreement dated as of May 12, 2005 (as modified and
supplemented and in effect from time to time, the “Credit Agreement”),
providing, subject to the terms and conditions thereof, for loans to be made by
the Lenders in an aggregate principal amount not exceeding $275,000,000.

 

The Company, the Holding Company, the
Subsidiary Guarantors and the Administrative Agent are parties to an Amended
and Restated Security Agreement dated as of May 12, 2005 (the “Security
Agreement”) pursuant to which the Company, the Holding Company and each
Subsidiary Guarantor, including without limitation, the Contract Counterparty,
agreed to pledge and grant a security interest in the Assigned Agreements (as
defined below) as security for the Secured Obligations (as defined in the
Security Agreement).  Accordingly, the
parties hereto agree as follows:

 

Section 1.  Definitions.  Each capitalized term used herein and not
otherwise defined herein shall have the meaning assigned to such term in the
Credit Agreement.  As used in this
Consent and Agreement, the following terms shall have the following meaning:

 

“Assigned
Agreements” shall mean the agreements listed in Annex 1 hereto.

 

“Contract
Default” shall mean a default by the Contract Counterparty or any other
Person in the performance of any of its obligations under any Assigned
Agreement, or the occurrence or non-occurrence of any event or condition under
the Assigned Agreements which would immediately or with the passage of time or
the giving of notice, or both (including, without limitation, the failure to
give a notice of extension), enable the Consenting Party to exercise any right
or remedy under the Assigned Agreements or result in the termination or any of
the Contract Counterparty’s rights under any Assigned Agreement.

 

(1)           Will be defined as the "Contract Counterparty"
in the form of this Consent and Agreement relating to Assigned Agreements to
which Sinclair Television Group, Inc. is a party.

 

Consent and Agreement

 

 

“Monetary
Default” shall mean, with respect to any Station, the failure by the
Contract Counterparty to pay when due, after the lapse of any applicable grace
period, any amount owing by it under an Assigned Agreement relating to such
Station or to cure after the lapse of any applicable grace period any other
Contract Default that can be cured solely by the payment of money.

 

“Station”
shall mean a radio or television broadcasting station that is the subject of an
Assigned Agreement.

 

Section 2.  Representations and Warranties.  The Consenting Party hereby represents and
warrants that this Consent and Agreement has been duly executed and delivered
by the Consenting Party and constitutes the legal, valid and binding obligation
of the Consenting Party enforceable against the Consenting Party in accordance
with its terms, except as the enforceability thereof may be limited by (i) bankruptcy,
insolvency, moratorium and other similar laws affecting the enforcement of
creditors’ rights generally and (ii) the application of equitable
principles (whether considered in a court of law or a proceeding in equity).

 

Section 3.  Consent.

 

Section 3.01.  Consent to Assignments, etc.  The Consenting Party hereby:

 

(a) 
consents to the assignment by the Contract Counterparty to the Administrative
Agent pursuant to the Security Agreement of all of the Contract Counterparty’s
right, title and interest in, to and under the Assigned Agreements as
collateral security for the Secured Obligations;

 

(b) 
acknowledges the right of the Administrative Agent in the exercise of its
rights and remedies under the Security Agreement and at the times provided for
therein to make all requests and demands, give all notices, take all actions
and exercise any and all rights and remedies of the Contract Counterparty
(whether or not the Contract Counterparty has then been dissolved, liquidated
or wound-up) under each Assigned Agreement, and agrees that in such event,
unless and until such Assigned Agreement is terminated as permitted hereby, the
Consenting Party shall continue to perform its obligations under, and in
respect of, such Assigned Agreement and the Administrative Agent or its
designee shall have the full right and power to enforce directly against the
Consenting Party all such obligations of the Consenting Party under such
Assigned Agreement;

 

(c) 
agrees that if (i) the Administrative Agent shall notify the Consenting
Party that the Administrative Agent has elected to exercise its rights under
the Security Agreement to have itself or its designee substituted for the
Contract Counterparty with respect to the Contract Counterparty’s rights under
an Assigned Agreement relating to any Station (whether or not the Contract
Counterparty has then been dissolved, liquidated or wound-up) and (ii) no
Monetary Default shall have occurred and be continuing with respect to such
Station, then the Administrative Agent or its designee, as the case may be,

 

2

 

shall be substituted for, and shall assume
and be directly liable for the obligations of, the Contract Counterparty under
such Assigned Agreement with respect to such Station, and agrees that in such
event the Consenting Party shall continue to perform its obligations under, and
in respect of, such Assigned Agreement with respect to such Station and the
Administrative Agent or its designee shall have the full right and power to
enforce directly against the Consenting Party all obligations of the Consenting
Party under such Assigned Agreement with respect to such Station;

 

(d) 
agrees that if (i) the Administrative Agent shall sell or assign any
portion of an Assigned Agreement relating to any Station pursuant to the
Security Agreement (whether through judicial foreclosure, deed-in-lieu of
foreclosure, or otherwise) and (ii) no Monetary Default shall have
occurred and be continuing with respect to such Station, the purchaser or
assignee of such portion of such Assigned Agreement may be substituted for the
Contract Counterparty with respect to such portion of such Assigned Agreement
(whether or not the Contract Counterparty has then been dissolved, liquidated
or wound-up), and assume and be directly liable for the obligations of, the
Contract Counterparty under such Assigned Agreement, and agrees that in such
event the Consenting Party will continue to perform its obligations under, and
in respect of, such Assigned Agreement;

 

(e) 
agrees that neither the Administrative Agent, nor its designee, shall be
subject to any duty or obligation under the Assigned Agreements, nor shall the
grant of a security interest in the Assigned Agreements by the Company, the
Holding Company and the Subsidiary Guarantors to the Administrative Agent
pursuant to the Security Agreement, give rise to any duty or obligation on the
part of the Administrative Agent to the Consenting Party unless and until the
Administrative Agent shall have notified the Consenting Party in writing that
the Administrative Agent has elected to exercise its rights pursuant to the
Security Agreement to have itself or its designee substituted for the Contract
Counterparty under an Assigned Agreement relating to a Station, whereupon the
sole obligation of the Administrative Agent or such designee, as the case may
be, with respect to claims of the Consenting Party against the Contract
Counterparty arising from the Contract Counterparty’s failure to perform during
any period prior to the Administrative Agent’s or such designee’s substitution
shall be limited to the obligation to cure any Monetary Default relating to
such Station, provided that neither the Administrative Agent nor its
designee shall become liable to the Consenting Party solely as a result of
foreclosing upon and taking temporary title to all or any portion of any
Assigned Agreement;

 

(f) 
agrees that, in the event of a Contract Default, the Consenting Party will
continue to perform its obligations under, and in respect of, the Assigned
Agreements and will not exercise any right or remedy provided for in the
Assigned Agreements, until it first gives prompt written notice of such
Contract Default to the Administrative Agent or its designee and affords the
Administrative Agent or its designee a period of at least ninety (90) days (or,
unless such Contract Default is a Monetary Default or such Contract Default has
a materially adverse effect on the Consenting Party, such longer period as the

 

3

 

Administrative Agent reasonably requests so
long as the Administrative Agent or its designee has commenced and is diligently
pursuing appropriate action to cure such Contract Default) from receipt of such
notice to cure such Contract Default;

 

(g) 
agrees that the Administrative Agent or its designee shall have the right, but
not the obligation, to exercise the rights to cure set forth in Section 3.01(f) above;
and

 

(h) 
agrees that, in the event that any Assigned Agreement (i) is terminated in
whole or in part by reason of the bankruptcy of the Contract Counterparty or
the Consenting Party or by reason of the rejection by the Contract
Counterparty, the Consenting Party or any trustee for the Contract Counterparty
or the Consenting Party of such Assigned Agreement in connection with any
bankruptcy case, or pursuant to any order of the FCC, or (ii) becomes or
is determined to be void or unenforceable in whole or in part, the Consenting
Party will, upon notice from the Administrative Agent, enter into a new
agreement with the Administrative Agent or its designee, which shall be for the
remaining term under the original Assigned Agreement (or, if applicable, the
affected portion thereof) and shall contain the same terms and conditions as
such original Assigned Agreement (excluding any requirement to pay
consideration that has theretofore been paid) with such modifications and
additional terms and conditions as may be reasonably necessary to reflect
materially changed circumstances resulting from, arising out of or relating to
the rejection or termination of the original Assigned Agreement and the
substitution of the new contracting party (whereupon references in this Consent
and Agreement to such “Assigned Agreement” shall be deemed to refer to such new
Assigned Agreement).

 

Section 3.02.  Payment of Assigned Sums.  After receipt of notice from the
Administrative Agent instructing it to do so, the Consenting Party shall pay
all monies that are due and payable to the Contract Counterparty under the
Assigned Agreements directly to the Administrative Agent at an account
maintained by the Administrative Agent with JPMorgan Chase Bank, N.A. at its
principal office in immediately available funds not later than [    ]
on the date such monies are due.  The
Contract Counterparty hereby releases and agrees to hold the Consenting Party
harmless from all liability for making payments to the Administrative Agent in
accordance with the requirements of this Section 3.02.

 

Section 3.03.  Reinstatement.  This Consent and Agreement shall continue to
be effective or be reinstated, as the case may be, if at any time any amount
received by the Administrative Agent in respect of the Secured Obligations is
rescinded or must otherwise be restored or returned by the Administrative
Agent, whether as a result of any proceedings in bankruptcy or reorganization
or otherwise, as though such payments had not been made.

 

Section 3.04.  Modifications to Loan Documents.  The Consenting Party agrees that no
modification or supplement to any of the Loan Documents (including, without
limitation, any modification or supplement that increases the amount or extends
the maturity of any credit extended under the Credit Agreement) shall affect
its obligations hereunder.

 

4

 

Section 3.05.  No Subrogation.  The Consenting Party agrees that it shall in
no event be, and hereby waives any right that it might otherwise have to be,
subrogated to the rights of the Lenders and the Administrative Agent with
respect to the Secured Obligations.

 

Section 3.06.  Waiver of Bankruptcy Code Protection.  The Consenting Party intends that its obligations
under the Assigned Agreements not be a contract to which Section 365(c)(1) or Section 365(c)(2) or Section 365(e)(2) of
the Bankruptcy Code applies in a case involving the Contract Counterparty as a
debtor under the Bankruptcy Code and, to the extent it may be determined that
such Sections are applicable (except as provided in the following sentence),
the Consenting Party (a) waives, to the fullest extent permitted by law,
its rights under, and the benefits of, such Sections with respect to such case,
(b) consents to the assumption of the Assigned Agreements by the trustee
in bankruptcy in such case and (c) agrees to reconfirm the waiver
contained in clause (a) above and the consent contained in
clause (b) above to the trustee in bankruptcy in any such case at any
time requested by the Administrative Agent. 
The Consenting Party shall not be bound by clause (a), (b) or (c) of
the preceding sentence with respect to any Assigned Contract (or portion
thereof) under which a Contract Default exists unless, as provided by the
Bankruptcy Code, the trustee in bankruptcy (i) cures, or provides adequate
assurance that such trustee will promptly cure, such Contract Default, (ii) compensates,
or provides adequate assurance that the trustee will promptly compensate, the
Consenting Party for any actual pecuniary loss to the Consenting Party
resulting from such Contract Default and (iii) provides adequate assurance
of future performance under such Assigned Agreement (or portion thereof).

 

Section 3.07.  Survival of Contract Counterparty’s
Obligations.  Nothing contained
herein shall be deemed to relieve the Contract Counterparty of (i) any
liability to the Consenting Party for any Contract Default by the Contract
Counterparty that is not cured by the Administrative Agent or its designee or
by any purchaser or assignee of any portion of an Assigned Agreement or (ii) any
liability to the Consenting Party for damages arising out of any Contract
Default by the Contract Counterparty to the extent that such damages relate to
a period prior to the cure of such Contract Default by the Administrative Agent
or its designee or by any purchaser or assignee of any portion of an Assigned
Agreement.

 

Section 3.08.  Obligations and Rights under Assigned
Agreements of Substitute for Contract Counterparty.  Nothing contained herein shall be deemed to
limit the rights or remedies of the Consenting Party under any Assigned
Agreement in respect of any Contract Default by the Administrative Agent or its
designee or by any purchaser or assignee of any portion of an Assigned
Agreement after the Administrative Agent, such designee or such purchaser, as
the case may be (an “Assignee”), is substituted for the Contract
Counterparty as provided in Section 3.01 hereof in respect of the portion
of such Assigned Agreement under which such Contract Default occurred.  No Assignee shall, by virtue of any such
substitution in respect of a portion of an Assigned Agreement, acquire greater
rights under such Assigned Agreement with respect to such portion than a permitted
assignee of the Contract Counterparty would acquire under such Assigned
Agreement with respect to such portion.

 

5

 

[Section 3.09.  Subordination.  The Administrative Agent agrees that, as
between the Administrative Agent and the Cure Right Agreement Agent (as defined
below), the rights and remedies of the Administrative Agent under this
Agreement shall be subject and subordinate to the rights and remedies of
JPMorgan Chase Bank, N.A., as agent (in such capacity, together with its
successors in such capacity, the “Cure Right Agreement Agent”) for the
lenders to Cunningham, under the [          ]
Agreement dated as of [         ]
(the “Cure Right Agreement”) between the Cure Right Agreement Agent and
the Consenting Party for so long as the Cure Right Agreement shall be in
effect.  Without limiting the generality
of the foregoing, the Administrative Agent shall not exercise any right or
remedy hereunder (other than the rights to cure set forth in Section 3.01(f) hereof,
which rights shall be subject and subordinate to the rights and remedies of the
Cure Right Agreement Agent as aforesaid) without the prior written consent of
the Cure Right Agreement Agent for so long as the Cure Right Agreement shall be
in effect.](2)

 

Section 4.  Miscellaneous.

 

Section 4.01.          Termination. 
Subject to Section 3.03 hereof, when all Secured Obligations shall
have been paid in full and the Commitments of the Lenders (and the Letters of
Credit) under the Credit Agreement shall have expired or been terminated and
the Hedging Agreements shall have expired or been terminated, this Consent and
Agreement shall terminate.  The
Administrative Agent shall notify the Consenting Party when such termination
has occurred.  In addition, subject to Section 3.01(h) hereof,
this Agreement shall terminate with respect to any Assigned Agreement that has
terminated in accordance with its terms and as permitted by Section 3.01(f) hereof
and with respect to any portion of an Assigned Agreement that has been fully
and finally performed, including, without limitation, any option under any
Assigned Agreement that has been exercised and for which the closing has
occurred.

 

Section 4.02.          Notices.  All
notices and other communications hereunder shall be in writing, shall be sent
by first class mail, by personal delivery, by a nationally recognized courier
service, or by telecopy and shall be directed to the addresses and telephone
numbers listed on the signature page hereto or to such other address or
addressee as a party may designate by notice given pursuant hereto.

 

Section 4.03.          Separate Counterparts; Amendments, Waiver.  This Consent and Agreement may be executed in
separate counterparts, each of which when so executed and delivered shall be an
original, and all of which taken together shall constitute one and the same
instrument.  Neither this Consent and
Agreement nor any of the terms hereof may be terminated, amended, supplemented,
waived or modified except by an instrument in writing signed by the Administrative
Agent and by any other party against whom any such amendment, supplement,
waiver or modification is to be enforced. 
Notwithstanding the foregoing sentence, the Administrative Agent may
terminate this Consent and Agreement at any time by providing a notice to the
Consenting Party in accordance with Section 4.02.

 

(2)           To be inserted if the Consenting Party is Cunningham (or
any of its Subsidiaries).

 

6

 

Section 4.04.          Severability of Provisions.  Any provision of this Consent and Agreement
which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.

 

Section 4.05.  Successors and Assigns.  This Consent and Agreement shall be binding
upon each of the Consenting Party and the Contract Counterparty, and on the
permitted successors and assigns of each of them, and shall inure to the
benefit of the Administrative Agent (for its own benefit and for the benefit of
the financial institutions and other lenders from time to time party to the
Credit Agreement or to any Successor Credit Agreement (as defined below) and
its successors and permitted assigns; provided that (i) the
Consenting Party shall not transfer or assign all or any portion of its
obligations under this Consent and Agreement or the Assigned Agreements without
the prior written consent of the Administrative Agent and (ii) the
Administrative Agent shall not transfer or assign all or any portion of its
rights or obligations hereunder except to a successor agent for the Lenders
under the Credit Agreement or to an agent for the financial institutions and
other lenders from time to time party to any Successor Credit Agreement.  For purposes of this Section 4.05, “Successor
Credit Agreement” shall mean any credit or loan agreement providing for
loans to be made by a syndicate of lenders that have appointed a commercial
bank to act as their agent thereunder, where all or a portion of the proceeds
of such loans are used to refinance or refund the indebtedness of the Company
under the Credit Agreement.  From and
after the date any Successor Credit Agreement is entered into and the proceeds
of any borrowing thereunder are used to pay all obligations of the Company
under the predecessor Credit Agreement then outstanding (and the commitments of
the lenders thereunder to provide further credit shall have expired or been
terminated and either any letters of credit issued thereunder shall have
expired or been terminated or the Company’s obligations with respect to any such
letters of credit shall have been released thereunder and reinstated under such
Successor Credit Agreement), such Successor Credit Agreement shall be deemed to
be the Credit Agreement for all purposes hereof.

 

Section 4.06.  Headings Descriptive.  The headings of the several sections of this
Consent and Agreement are inserted for convenience only and shall not in any
way affect the meaning or construction of any provisions of this Consent and
Agreement.

 

Section 4.07.  Further Assurances.  Upon the request of the Contract Counterparty
or the Administrative Agent, in connection with the provisions of and the
transactions contemplated by the Assigned Agreements, the Consenting Party
shall execute and deliver such further instruments and agreements relating to
such provisions and transactions as may reasonably be requested by the Contract
Counterparty to further document and carry out the intent and purpose of such
provisions and transactions.

 

7

 

Section 4.08.  GOVERNING LAW, SUBMISSION TO JURISDICTION,
WAIVER OF JURY TRIAL.

 

(a)  This Consent and Agreement shall be
governed by, and construed in accordance with, the law of the State of New
York.  Each of the parties hereto hereby
submits to the nonexclusive jurisdiction of the United States District Court
for the Southern District of New York and of any New York state court sitting
in New York County for the purposes of all legal proceedings arising out of or
relating to this Consent and Agreement or the transactions contemplated
hereby.  Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, any
objection that it may now or hereafter have to the laying of the venue of any
such proceeding brought in such a court and any claim that any such proceeding
brought in such a court has been brought in an inconvenient forum.

 

(b)  EACH OF THE
PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF
OR RELATING TO THIS CONSENT AND AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

 

Section 4.09.  Waiver.  No failure on the part of the Administrative
Agent to exercise and no delay in exercising, and no course of dealing with
respect to, any right, power or privilege under this Agreement shall operate as
a waiver thereof, nor shall any single or partial exercise of any right, power
or privilege under this Agreement preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.  The remedies provided herein are cumulative
and not exclusive of any remedies provided by law.

 

8

 

IN WITNESS WHEREOF, each of the parties
hereto has caused this Agreement and Consent to be executed by its duly
authorized officer as of the date first above written.

 

	
   

  	
  [NAME OF CONSENTING PARTY]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
    Title:

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Attention:

  
	
   

  	
  Telecopier No.:

  
	
   

  	
  Telephone No.:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
    as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
    Title:

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Attention:

  
	
   

  	
  Telecopier No.:

  
	
   

  	
  Telephone No.:

  

 

9

 

	
   

  	
  SINCLAIR TELEVISION GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
    Title:

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Attention:

  
	
   

  	
  Telecopier No.:

  
	
   

  	
  Telephone No.:

  

 

10

 

[ACKNOWLEDGED:

 

JPMORGAN CHASE BANK, N.A.,

  as Cure Right Agreement Agent

 

 

	
  By

  	
   

  	
   

  
	
    Title:]

  

 

11

 

Annex 1

 

 

Assigned
Agreements

 

 

EXHIBIT F-1

 

[Form of Opinion of
Counsel to the Obligors]

 

May 12,
2005

 

To the Lenders party to the Credit

Agreement referred to below and

JPMorgan Chase Bank, N.A., as

Administrative Agent

 

Ladies and Gentlemen:

 

We have acted as counsel
to Sinclair Television Group, Inc. (the “Borrower”) and the
Guarantors referred to below in connection with (i) the Second Amended and
Restated Credit Agreement dated as of May 12, 2005 (the “Credit
Agreement”) between the Borrower, Sinclair Broadcast Group, Inc. (the “Holding
Company”), certain subsidiaries of the Borrower and the Holding Company
party thereto (the “Subsidiary Guarantors” and, together with the
Borrower and the Holding Company, the “Obligors”), the lenders party
thereto (the “Lenders”), and JPMorgan Chase Bank, N.A., as
administrative agent for the Lenders (in such capacity, the “Administrative
Agent”), providing for extensions of credit to be made by the Lenders to
the Borrower in an aggregate principal amount not exceeding $275,000,000, and (ii) the
various other agreements, instruments and other documents referred to
below.  This letter is furnished pursuant
to Section 5.01(b)(i) of the Credit Agreement.  All capitalized terms used, but not defined
herein, have the respective meanings given to such terms in the Credit
Agreement.

 

In addition, the
following terms shall have the respective meanings given to such terms in the
Uniform Commercial Code as currently in effect in the State of Maryland (the “UCC”):  “Accounts”, “Certificated Security”,
“General Intangibles”, “Indorsement”, “Payment Intangibles”,
“Proceeds”, “Securities Intermediary” and “Security
Certificate”.

 

In rendering the opinions
expressed below, we have examined the following agreements, instruments and
other documents:

 

(a)                                  the
Credit Agreement;

 

(b)                                 the
promissory notes issued on the date hereof pursuant to Section 2.08(g) of
the Credit Agreement (the “Notes”);

 

(c)                                  the
Security Agreement;

 

(d)                                 the
Uniform Commercial Code financing statements being filed in connection with the
Transactions (collectively, the “Financing Statements”);

 

(e)                                  the
Program Services Agreements;

 

(f)                                    the
Outsourcing Agreements;

 

Opinion of Counsel to the Obligors

 

 

(g)                                 the
Asset Use and Operating Agreements; and

 

(h)                                 originals
or conformed copies of such corporate records, agreements and instruments of
each of the Obligors, certificates of public officials and of officers of each
of the Obligors, and such other documents and records, and such matters of law,
as we have deemed appropriate as a basis for the opinions hereinafter
expressed.

 

The agreements,
instruments and other documents referred to in the foregoing clauses (a) through (d) are
collectively referred to as the “Relevant Documents”.

 

In basing the opinions
and other matters set forth herein on “our knowledge”, the words “our knowledge”
signify that, in the course of our representation of the Obligors in matters
with respect to which we have been engaged by such parties as counsel, no
information has come to our attention that would give us actual knowledge or
actual notice that any such opinions or other matters are not accurate or that
any of the foregoing documents, certificates, reports, and information on which
we have relied are not accurate and complete. 
Except as otherwise stated herein, we have undertaken no independent
investigation or verification of such matters. 
The words “our knowledge” and similar language used herein are intended
to be limited to the knowledge of the lawyers within our firm who have recently
worked on matters on behalf of the Obligors.

 

In reaching the opinions
set forth below, we have assumed, and to our knowledge there are no facts
inconsistent with, the following:

 

(a)                                  each
of the parties to each of the documents, instruments and agreements referred to
in this opinion (other than, to the extent set forth in the opinions expressed
below, the Obligors) has duly and validly executed and delivered such
documents, instruments and agreements, and such party’s obligations set forth
therein are its legal, valid, and binding obligations, enforceable in
accordance with their terms;

 

(b)                                 each
person executing any such instrument, document, or agreement on behalf of any
such party (other than, to the extent set forth in the opinions expressed
below, the Obligors) is duly authorized to do so;

 

(c)                                  each
natural person executing any such instrument, document, or agreement is legally
competent to do so;

 

(d)                                 there
are no oral or written modifications of or amendments to the Relevant
Documents, and there has been no waiver of any of the provisions of the
Relevant Documents, by actions or conduct of the parties or otherwise;

 

(e)                                  all
representations and warranties of the Obligors set forth in the Relevant
Documents as to factual matters are true and correct; and

 

2

 

(f)                                    all
documents submitted to us as originals are authentic, all documents submitted
to us as certified or photostatic copies conform to the original documents, all
signatures on all documents submitted to us for examination are genuine, and
all public records reviewed are accurate and complete.

 

Based upon and subject to
the foregoing and subject also to the comments and qualifications set forth
below, and having considered such questions of law as we have deemed necessary
as a basis for the opinions expressed below, we are of the opinion that:

 

1.  The Borrower is a corporation duly organized,
validly existing and in good standing under the laws of Maryland.  Each of the other Obligors is a corporation
or other entity duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization specified in Schedule 4.15(a) to
the Credit Agreement.

 

2.  The Transactions are within the corporate or
other powers of each Obligor.

 

3.  The Transactions have been duly authorized by
all necessary corporate or other action on the part of each Obligor.

 

4.  Each Relevant Document has been duly executed
and delivered by each Obligor party thereto.

 

5.  Under conflict of law principles for the
State of Maryland, the stated choice of New York law to govern the Relevant
Documents will be honored by the courts of the State of Maryland and the
Relevant Documents will be construed in accordance with, and will be treated as
being governed by, the law of the State of New York.  However, if the Relevant Documents were
stated to be governed by and construed in accordance with the law of the State
of Maryland, or if a court of the State of Maryland were to apply the law of
the State of Maryland to the Relevant Documents, each Relevant Document
(assuming, in the case of each Note, that value is given therefore) would
nevertheless constitute the legal, valid and binding obligation of each Obligor
party thereto, enforceable against such Obligor in accordance with its terms, except
as may be limited by bankruptcy, insolvency, reorganization, fraudulent
conveyance or transfer, moratorium or other similar laws relating to or
affecting the rights of creditors generally and except as the enforceability of
the Relevant Documents is subject to the application of general principles of
equity (regardless of whether considered in a proceeding in equity or at law),
including (a) the possible unavailability of specific performance,
injunctive relief or any other equitable remedy and (b) concepts of
materiality, reasonableness, good faith and fair dealing.

 

6.  The Transactions (a) do not require any
consent or approval of, registration or filing with, or any other action by,
any Governmental Authority, except for (i) the filing of the Financing
Statements in respect of the Liens created pursuant to the Security Agreement, (ii) the
filing with the FCC of the Security Agreement and the Asset Use and Operating
Agreements as required by Section 73.3613 of the FCC’s rules, (iii) the

 

3

 

approvals by the FCC for the transfer,
acquisition or sale of any FCC licenses or authorizations, including, but not
limited to, the Borrower’s exercise of the Cunningham Options or the
acquisition of any Broadcast Licenses, and (iv) those that have been
obtained or effected and are in full force and effect on the date hereof; (b) will
not violate any applicable law or regulation or the charter, by-laws or other
organizational documents of the Borrower or any of its Subsidiaries or any
order of any Governmental Authority; (c) will not violate or result in a
default under any indenture, agreement or other instrument binding upon the
Borrower or any of its Subsidiaries or its or their respective assets, or give
rise to a right thereunder to require any payment to be made by any such
Person; and (d) except for the Liens created pursuant to the Security
Agreement, will not result in the creation or imposition of any Lien on any
asset of the Borrower or any of its Subsidiaries.

 

7.  We have no knowledge (after due inquiry) of
any actions, suits or proceedings by or before any arbitrator or Governmental
Authority now pending against or threatened against or affecting the Obligors
or any of their respective Subsidiaries (a) as to which there is a
reasonable possibility of an adverse determination and that, if adversely
determined, could reasonably be expected, individually or in the aggregate, to
have a Material Adverse Effect or (b) that involve the Credit Agreement or
the Transactions.

 

8.  None of the Obligors are (a) an “investment
company” as defined in, or subject to regulation under, the Investment Company
Act of 1940 or (b) a “holding company” as defined in, or subject to
regulation under, the Public Utility Holding Company Act of 1935.

 

9.  The issued and outstanding Initial Pledged
Shares (as defined in the Security Agreement) are correctly described in Annex
2 thereto, and evidenced by the certificates therein identified.  Such capital stock and other ownership or
equity interests have been duly authorized and validly issued and (in the case
of Initial Pledged Shares issued by a corporation) are fully paid and
non-assessable.

 

10.  If the Security Agreement was stated to be
governed by and construed in accordance with the law of the State of Maryland,
or if a court of the State of Maryland were to apply the law of the State of
Maryland to the Security Agreement, the Security Agreement would be effective
to create, in favor of the Administrative Agent for the benefit of the Administrative
Agent and the Lenders, a valid security interest under the UCC in all of the
right, title and interest of each Obligor in, to and under the Collateral (as
defined in the Security Agreement) of such Obligor as collateral security for
the payment of the Secured Obligations (as defined in the Security Agreement),
except that (a) such security interest will continue in Collateral (as so
defined) after its sale, exchange or other disposition only to the extent
provided in Section 9-315 of the UCC, and (b) the security
interest in Collateral (as so defined) in which an Obligor acquires rights
after the commencement of a case under the Federal Bankruptcy Code of 1978, as
amended (the “Bankruptcy Code”) in respect of such Obligor may be
limited by Section 552 of the Bankruptcy Code.

 

4

 

11.  The security interest under the Security
Agreement in the types of Collateral described below will be perfected as
described below:

 

(a)  such security interest in that portion of
the Collateral consisting of Accounts and General Intangibles (including
Payment Intangibles) will, upon creation of such security interest, be
perfected by filing the Financing Statements in the appropriate filing offices
for the jurisdictions listed in Schedule 4.15(a) to the Credit
Agreement;

 

(b)  such security interest in that portion of
the Collateral consisting of a Certificated Security represented by a Security
Certificate will, upon creation of such security interest, be perfected by the
Administrative Agent taking possession in the State of New York of such
Security Certificate, and such perfected security interest will remain
perfected thereafter so long as such Security Certificate is retained by the
Administrative Agent in its possession in the State of New York;

 

(c)  such security interest in that portion of
the Collateral consisting of a Certificated Security represented by a Security
Certificate will, upon creation of such security interest, be perfected by a
Person (other than the Administrative Agent or a Securities Intermediary)
taking possession in the State of New York of such Security Certificate on
behalf of the Administrative Agent or, having previously taken possession in
the State of New York of such Security Certificate, acknowledging that it holds
such Security Certificate for the Administrative Agent, and such perfected
security interest will remain perfected thereafter so long as such Security
Certificate is retained on behalf of the Administrative Agent by such Person in
its possession in the State of New York; and

 

(d)  to the extent not covered by the foregoing
subparagraphs of this paragraph 11, such security interest in that portion of
the Collateral consisting of Proceeds may be perfected as and to the extent provided
in Section 9-315 of the UCC.

 

12.  With respect to any portion of the Collateral
consisting of a Certificated Security represented by a Security Certificate in
bearer form or in registered form indorsed (as provided in Section 8-102(a)(11)
of the UCC) to the Administrative Agent or in blank by an effective Indorsement
(as so provided) or registered in the name of the Administrative Agent
(including the Pledged Stock under and as defined in the Security Agreement),
if such security interest therein is perfected by the Administrative Agent in
the manner specified in paragraph 11(b) above for value and without
notice of any adverse claim (as defined in Section 8-102(a)(1) of
the UCC) such perfected security interest will have priority over all other
security interests theretofore or thereafter created under the UCC.

 

The foregoing opinions are subject to the
following comments and qualifications:

 

5

 

(A)          With respect to our opinion in
paragraph 1 above regarding the good standing of the Borrower, we have relied
solely on the good standing certificate received from the State Department of
Assessments and Taxation of the State of Maryland dated May 12, 2005.  With respect to our opinion in paragraph 1
above regarding the good standing of the other Obligors, we have relied solely
on the certificates of good standing received from each respective jurisdiction
which have been delivered to you in connection with the Credit Agreement.

 

(B)  The
enforceability of Section 10.03 of the Credit Agreement (and any similar
provisions in any of the other Relevant Documents) may be limited by (i) laws
rendering unenforceable indemnification contrary to Federal or state securities
laws and the public policy underlying such laws, and (ii) laws limiting
the enforceability of provisions exculpating or exempting a party, or requiring
indemnification of a party for, liability for its own action or inaction, to
the extent the action or inaction involves gross negligence, recklessness,
willful misconduct or unlawful conduct.

 

(C)  The
enforceability of provisions in the Relevant Documents to the effect that terms
may not be waived or modified except in writing may be limited under certain
circumstances.

 

(D) 
Clause (iii) of Section 3.02 of the Credit Agreement may not be
enforceable to the extent that the Guaranteed Obligations are materially
modified.

 

(E)  We
express no opinion as to (i) the effect of the laws of any jurisdiction in
which any Lender is located (other than the State of Maryland) that limit the
interest, fees or other charges such Lender may impose, (ii) the last
sentence of Section 2.16(d), Section 3.06 or Section 3.09 of the
Credit Agreement, (iii) the first sentence of Section 10.09(b) of
the Credit Agreement (and any similar provisions in any of the other Relevant
Documents), insofar as such sentence relates to the subject matter jurisdiction
of the United States District Court for the Southern District of New York to
adjudicate any controversy related to any of the Relevant Documents, and (iv) Section 10.09(c) of
the Credit Agreement (and any similar provisions in any of the other Relevant
Documents) insofar as such sentence relates to the waiver of inconvenient forum
with respect to proceedings in the United States District Court for the
Southern District of New York.

 

(F)  We
express no opinion as to the applicability to the obligations of the Subsidiary
Guarantors of Section 548 of the Bankruptcy Code or any other provision of
law relating to fraudulent conveyances, transfers or obligations.

 

(G)  We
wish to point out that the obligations of the Obligors, and the rights and
remedies of the Administrative Agent, under the Security Agreement may be
subject to possible limitations upon the exercise of remedial or procedural
provisions contained in the Security Agreement, provided that such
limitations do not, in our opinion (but subject to the other comments and
qualifications set forth in this opinion letter), make the remedies and
procedures that will be afforded to the Administrative Agent and the

 

6

 

Lenders inadequate for the practical
realization of the substantive benefits purported to be provided to the
Administrative Agent and the Lenders by the Security Agreement.

 

(H)  With
respect to our opinions in paragraph 11(a) above, we have assumed that the
Financing Statements will be filed in the appropriate filing offices specified
therein no later than 10 days after the initial extension of credit under the
Credit Agreement.  We also wish to point
out that the acquisition by any Obligor after the initial Loan under the Credit
Agreement of any interest in any property that becomes subject to the Lien of
the Security Agreement may constitute a voidable preference under Section 547
of the Bankruptcy Code.

 

(I)  The effectiveness of the Financing Statements
will lapse on the expiration of a five year period from their date of filing,
or (if later) five years from the last date as to which such Financing
Statements were effective following the proper filing of continuation
statements with respect thereto, unless continuation statements are filed
within six months prior to the expiration of the applicable five year period,
and, if any Obligor so changes its name that the Financing Statements naming
such Obligor as debtor become seriously misleading under Section 9-506
of the UCC, the Financing Statements naming such Obligor as debtor will be
ineffective to perfect a security interest in Collateral acquired by such
Obligor more than four months after such change.

 

(J)  We express no opinion as to the existence of,
or the right, title or interest of any Obligor in, to or under, any of the
Collateral.

 

(K)  Our opinions in paragraphs 10, 11 and 12
above, and our observations in paragraph (I) above, insofar as they relate
to the perfection and the effect of perfection and non-perfection of security
interests under the law of States of Delaware, Nevada, North Carolina,
Virginia, Minnesota, Oklahoma and Tennessee are based solely upon a review of
the relevant statutory text of Articles 9 of the Uniform Commercial Code
of such States as displayed on Westlaw on May 3, 2005, in each case
without regard to the decisional law of such States.

 

The foregoing opinions are limited (except as
otherwise expressly provided in paragraph (K) above) to matters involving
the Federal laws of the United States of America, the Delaware General
Corporation Law, the Delaware Limited Liability Company Act and the law of the
State of Maryland, and we do not express any opinion as to the laws of any
other jurisdiction (nor do we express any opinion as to the applicability to,
or the effect upon, the transactions contemplated by the Relevant Documents of
the Federal Communications Act of 1934, as amended, the rules and
regulations promulgated thereunder or the policies of the FCC).

 

7

 

At the request of our
clients, this opinion letter is, pursuant to Section 5.01(b)(i) of
the Credit Agreement, provided to you by us in our capacity as counsel to the
Obligors and may not be relied upon by any Person for any purpose other than in
connection with the transactions contemplated by the Credit Agreement without,
in each instance, our prior written consent.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  THOMAS & LIBOWITZ, P.A.

  

 

8

 

EXHIBIT F-2

 

[Form of Opinion of
Special FCC Counsel to the Obligors]

 

May 12,
2005

 

The Lenders party to the Credit Agreement
referred

to below and JPMorgan Chase Bank, N.A., as

Administrative Agent,

270 Park Avenue

New York, New York  10017

 

Ladies and Gentlemen:

 

We have acted as special communications counsel for Sinclair Television
Group, Inc. (the “Borrower”), a Maryland corporation, and the
Guarantors (defined below, and collectively with the Borrower, the “Obligors”),
and have represented the Obligors in connection with the Second Amended and
Restated Credit Agreement (“Credit Agreement”), dated as of May 12,
2005, between the Borrower, Sinclair Broadcast Group, Inc. (the “Holding
Company”), certain subsidiaries of the Borrower and the Holding Company
party thereto (collectively with the Holding Company, the “Guarantors”),
the lenders parties thereto and JPMorgan Chase Bank, N.A., as Administrative
Agent, only as counsel on Federal Communications Commission (“FCC”)
regulatory matters.  This opinion is
being delivered pursuant to Section 5.01(b) of the Credit
Agreement.  In rendering this opinion, we
are engaged and acting solely as special communications counsel for the Obligors,
and we are not engaged or acting as counsel of any type for you or any other
person or entity.  Each capitalized term
used but not defined herein shall have its respective meaning set forth in the
Credit Agreement.  When used herein, “or”
shall mean “and/or” unless the context otherwise requires.

 

This opinion is limited strictly to matters arising under the
Communications Act of 1934, as amended, and the published rules, regulations,
and policies promulgated thereunder by the FCC (collectively, “Communications
Laws”), and we express no opinion on any other matter whatsoever.  Furthermore, this opinion is limited to the
opinions expressly stated herein.  No
implication shall be drawn from anything herein that has the effect of
extending any such opinion beyond what is expressly stated in such opinion.

 

Specifically excluded from this opinion are all matters arising under
the Communications Laws that may involve the grant of a security interest in
any FCC license or authorization and we express no opinion whatsoever as to
whether the grant, if any, under the Transaction Documents (defined below) of a
security interest in any FCC license or authorization violates or is contrary
to the Communications Laws.

 

In connection with the issuance of this letter, we have examined only
the FCC Review Materials (defined below) as of the dates set forth below,
together with such provisions of the Communications Laws as we have deemed
necessary as a basis for the opinions expressed below.  With respect to questions of fact relevant to
the opinions expressed herein, we have assumed and relied, without independent
inquiry or verification by us, upon the accuracy and

 

Opinion of Special FCC Counsel to the Obligors

 

 

completeness of: (i) all
verbal or email confirmations in response to our letters of inquiry by FCC
staff members on May 2 and 3, 2005, (ii) the information with respect
to the Stations (hereinafter defined) located in the FCC’s CDBS Public Access
Information System at the time of our examination on May 11, 2005, (iii) a
review of the publicly available files with respect to the Stations located in
the FCC’s Reference Information Center at 445 Twelfth Street, S.W., in
Washington, DC at the time of our examination on May 4, 2005 (all such FCC
information, the “FCC Review Materials”), and (iv) representations
and warranties set forth in the Credit Agreement.  We have not examined or investigated the
records which may be available in any other office within the FCC.  You should be aware that certain records of
the FCC are public as a matter of law (for example, under the federal Freedom
of Information Act).  Such records,
however, may not have been included in the FCC Review Materials at the time
that we examined those materials in connection with this opinion.  Accordingly, we express no opinion regarding
the completeness of the FCC Review Materials at the time we reviewed them.  Furthermore, there may be records of matters
pending at the FCC that were not available for inspection by the public as a
matter of law that we did not examine.

 

We have examined copies provided to us of the documents listed in Attachment
I hereto (all such documents collectively referred to as “Transaction
Documents”).  For purposes of this
opinion, we explicitly assume that the executed original copies of the
Transaction Documents conform to the above-mentioned drafts that we have
examined in all respects material to the Communications Laws.  Furthermore, in rendering this opinion, we
have assumed without investigation the genuineness of all signatures, the legal
capacity of all natural persons, the authenticity of all documents examined by
us, whether or not they are originals, the conformity of all copies or
facsimile transmissions to the originals of the same, whether or not they are
certified to be true copies, the conformity of all unexecuted documents
presented to us as final versions thereof to the executed originals of the
same, the accuracy and completeness of all public records, including but not
limited to those of the FCC, and the absence of changes through the date hereof
in the FCC records that we examined during the Examination Time.

 

The opinions expressed in this letter are based upon the current law
and facts presently known to us, and are not guarantees or assurances of any future
fact, event, occurrence, omission, or condition or that any law, statute, rule,
regulation, policy, order, case, or interpretation of the same will not change
in the future.  Moreover, this letter
expresses opinions only as of the date of this letter and we specifically
disclaim all responsibility whatsoever for advising you of changes in matters
addressed herein occurring after such date.

 

We have undertaken no on-site inspection, independent evaluation of the
technical aspects, or visual or aural monitoring whatsoever of the Obligors,
properties of the Obligors, or the Stations, nor have we examined the actual
day-to-day operations of the Stations, and, accordingly, we express no opinion
with respect to such matters.  Except as
otherwise specifically stated herein, we have undertaken no independent inquiry
whatsoever of any of the matters addressed in this opinion.  Furthermore, although we have no firsthand
knowledge of the citizenship, attributable or non-attributable media interests,
or character or other qualifications under the Communications Laws of the
Obligors, principals of the Obligors, or any other person or entity having any
present or proposed connection with the Obligors, we are presently aware of

 

2

 

no facts that lead us to
believe that any of the opinions expressed below, as qualified and limited by
this letter, are untrue in any material respect.

 

As used in this letter, the phrases “our knowledge,” “known to us,” or “we
are presently aware” or similar phrases mean the current actual knowledge, that
is, the conscious awareness of facts or other information, of lawyers currently
affiliated with this firm who have given substantive legal attention to
representation of the Obligors in connection with the transactions contemplated
under the Credit Agreement, including but not limited to the preparation of
this letter.

 

We express no opinion whatsoever in this letter as to your
qualifications under the Communications Laws, or such qualifications of your
assigns, if any, to have an ownership interest in or to control, directly or
indirectly, any license or other authorization issued by the FCC or any person
or entity holding such license or authorization.

 

Based upon the foregoing, and subject in all respects to the
qualifications and limitations set forth in this letter, we are of the opinion
that:

 

1.             Except as set forth in Attachment II, to our
knowledge, based solely upon our examination of the FCC Review Materials, each
of the Obligors is in compliance with the Communications Laws, except for
noncompliance that would not reasonably be expected to have a material adverse
effect upon the business, assets, operations, prospects or condition, financial
or other, of the Obligors taken as a whole.

 

2.             The execution, delivery, and performance in accordance
with their terms of the Transaction Documents by each of the Obligors that is a
party thereto (x) does not violate the Communications Laws, (y) does
not cause the forfeiture or impairment by the FCC of any license, permit, or
other authorization that is issued by the FCC and held or controlled by any of
the Obligors, and (z) does not require any authorization, consent,
approval, or filing of or with the FCC not previously obtained or made and in full
force and effect as of the date of this opinion, except that (a) if any
broadcast station is assigned or control thereof is transferred, the assets
used in the operation of such station may be required to be assigned or control
thereof may be required to be transferred along with the FCC licenses for such
station, (b) from time to time, licensees may be required to obtain
certain authorizations from, or to make certain filings with, the FCC that
would be required in the ordinary course of business, (c) FCC
authorizations and filings may be required to be obtained or made in connection
with future broadcast station acquisitions, if any, contemplated under the
Transaction Documents, (d) copies of certain documents, including but not
limited to the Transaction Documents, may be required to be filed with the FCC
pursuant to 47 C.F.R. § 73.3613, (e) the FCC must be notified of the
consummation of any assignments or transfers of control of FCC licenses and
authorizations for any broadcast stations, and ownership reports are required
to be filed with the FCC pursuant to 47 C.F.R. § 73.3615, (f) in
connection with the exercise of certain rights or remedies under the
Transaction Documents by you, participants or other lenders under the Credit
Agreement, or your or their assigns, if any, that involves disposition of
voting stock, the Communications Laws may require that such disposition be
accomplished by private or public sale or other means acceptable to the FCC, (g) the
grant of a security interest in any FCC license or authorization

 

3

 

may
be prohibited by the Communications Laws, (h) any power of attorney
granted to you, participants or other lenders under the Credit Agreement or the
Transaction Documents, or your or their assigns, if any, for purposes of
executing the assignor’s, transferor’s, or licensee’s portions of an FCC
assignment or transfer of control application may be contrary to the
Communications Laws, (i) under the Communications Laws, FCC approval may
be required prior to the transfer of control of any broadcast station or the
assignment of any FCC licenses or authorizations or prior to the exercise of
any voting rights or management authority over any broadcast station to the
extent that such exercise constitutes a transfer of control of such broadcast
station or an assignment of any FCC licenses or authorizations, but we are of
the opinion that the execution and delivery of the Transaction Documents by
each of the parties thereto does not constitute a transfer of control or
assignment of any FCC licenses or authorizations, and (j) prior to
exercise of certain rights or remedies under the Transaction Documents by you,
participants or other lenders under the Credit Agreement, or your or their assigns,
if any, which exercise constitutes or causes an assignment or transfer of
control of an FCC license or authorization under the Communications Laws, FCC
consents and notifications with respect to such exercise may be required to be
timely obtained or made; provided, however, that we express no
opinion whatsoever as to the likelihood of obtaining such consents.

 

3.             Except as set forth in Attachment II and except
for rulemaking proceedings or similar proceedings of general applicability to
entities such as the Obligors or facilities such as the Stations, to our
knowledge, there is not now pending or threatened in writing any action, suit,
or proceeding by the FCC against the Obligors that would reasonably be expected
to have a material adverse effect upon the business, assets, operations,
prospects or condition, financial or other, of the Obligors taken as a
whole.  To our knowledge, (a) there
exists no judgment, order, injunction, or other restraint issued or filed by or
before the FCC against the Obligors that prohibits the consummation of any of
the transactions contemplated under the Transaction Documents, and (b) there
is not now pending or threatened in writing any action, suit, litigation, or
proceeding by or before the FCC against the Obligors that would reasonably be
expected to have a material adverse effect upon the consummation of any such
transactions.

 

4.             The Obligors listed on Attachment II hereto have
been authorized by the FCC to hold all necessary FCC licenses and
authorizations to operate their respective television stations (the “Stations”)
as listed on Attachment II.  To
our knowledge, all such FCC licenses and authorizations are valid and in full
force and effect.

 

This opinion is (i) solely for your information in connection with
the transactions contemplated under the Credit Agreement and the other
documents contemplated thereunder, (ii) not to be relied upon by any other
person or entity for any reason whatsoever other than any permitted assignee of
a lender under the Credit Agreement, (iii) not to be quoted in whole or in
part or otherwise referred to in any document except as directly a part of and
related to such transactions, and (iv) except as otherwise required by
applicable law, not to be filed with or provided to any government agency or
any other entity or person whatsoever, other than to any regulatory agency
having supervisory jurisdiction over you or to any court having jurisdiction
over litigation, if any, arising out of such transactions.

 

4

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  PILLSBURY WINTHROP SHAW

  
	
   

  	
  PITTMAN LLP

  

 

Attachments

 

5

 

EXHIBIT G

 

[Form of Opinion of
Special New York Counsel to JPMCB]

 

May 12,
2005

 

To the Lenders
party to the Credit Agreement referred

to below and JPMorgan Chase Bank, N.A., as

Administrative Agent

 

Ladies and Gentlemen:

 

We have acted as special New York counsel to
JPMorgan Chase Bank, N.A. (“JPMCB”) in connection with the Second
Amended and Restated Credit Agreement dated as of May 12, 2005 (the “Credit
Agreement”) between Sinclair Television Group, Inc. (the “Borrower”),
Sinclair Broadcast Group, Inc. (the “Holding Company”), certain
subsidiaries of the Borrower and the Holding Company party thereto
(individually, a “Subsidiary Guarantor” and, collectively, the “Subsidiary
Guarantors” and, together with the Borrower and the Holding Company, the “Obligors”),
the lenders party thereto (the “Lenders”) and JPMCB, in its capacity as
administrative agent for the Lenders (the “Administrative Agent”),
providing, among other things, for extensions of credit to be made by the
Lenders to the Borrower in an aggregate principal amount not exceeding
$275,000,000.  All capitalized terms used
but not defined herein have the respective meanings given to such terms in the
Credit Agreement.

 

In rendering the opinions expressed below, we
have examined the following agreements, instruments and other documents
(collectively, the “Loan Documents”):

 

(a)           the Credit Agreement;

 

(b)           the promissory notes, if any, issued
on the date hereof pursuant to Section 2.08(g) of the Credit
Agreement (collectively, the “Notes”); and

 

(c)           the Amended and Restated Security
Agreement dated as of May 12, 2005 between the Borrower, the Holding
Company, the Subsidiary Guarantors and the Administrative Agent (the “Security
Agreement”).

 

In our examination, we have assumed the
genuineness of all signatures, the authenticity of documents submitted to us as
originals and the conformity with authentic original documents of all documents
submitted to us as copies.  We have also
assumed that the Loan Documents have been duly authorized by, have been or (in
the case of the Notes) will be duly executed and delivered by, and (except to
the extent set forth below, as to the Obligors) constitute legal, valid,
binding and enforceable obligations of, all of the parties thereto, that all
signatories thereto have been duly authorized, that all such parties are duly
organized and validly existing and have the power and authority (corporate,
partnership or other) to execute, deliver and perform the same, and that (upon
the delivery of this opinion) the conditions precedent in Section 5.01 of
the Credit Agreement have been satisfied.

 

Opinion of Special New York Counsel to JPMCB

 

 

Based upon and subject to the foregoing and
subject also to the comments and qualifications set forth below, and having
considered such questions of law as we have deemed necessary as a basis for the
opinions expressed below, we are of the opinion that:

 

1.  Each of the Loan Documents (assuming, in the
case of each Note, that value is given therefor) constitutes the legal, valid
and binding obligation of each Obligor party thereto, enforceable against such
Obligor in accordance with its terms, except as may be limited by bankruptcy,
insolvency, reorganization, fraudulent conveyance or transfer, moratorium or
other similar laws relating to or affecting the rights of creditors generally
and except as the enforceability of the Loan Documents is subject to the application
of general principles of equity (regardless of whether considered in a
proceeding in equity or at law), including (a) the possible unavailability
of specific performance, injunctive relief or any other equitable remedy and (b) concepts
of materiality, reasonableness, good faith and fair dealing.

 

2.  The
Security Agreement is effective to create, in favor of the Administrative Agent
for the benefit of the Lenders, a valid security interest under the Uniform
Commercial Code as in effect in the State of New York (the “NYUCC”) in
all of the right, title and interest of each Obligor party thereto in, to and
under the Collateral (as defined in the Security Agreement) of such Obligor as
collateral security for the payment of the Secured Obligations (as defined in
the Security Agreement) of such Obligor, except that (a) such security
interest will continue in Collateral (as so defined) after its sale, exchange
or other disposition only to the extent provided in Section 9-315 of
the NYUCC and (b) the security interest in Collateral (as so defined) in
which an Obligor acquires rights after the commencement of a case under the
Federal Bankruptcy Code of 1978, as amended (the “Bankruptcy Code”) in
respect of such Obligor may be limited by Section 552 of the Bankruptcy
Code.

 

3.  The security interest referred to in
paragraph 2 above in that portion of the Collateral (as defined in the
Security Agreement) consisting of Pledged Shares (as so defined) represented by
a certificate in bearer form or in registered form indorsed (as provided in Section 8-102(a)(11)
of the NYUCC) to the Administrative Agent or in blank by an effective
indorsement (as so provided) or registered in the name of the Administrative
Agent, will, upon the creation of such security interest, be perfected by the
Administrative Agent taking possession thereof in the State of New York, and
such perfected security interest will remain perfected thereafter so long as
such certificates are retained by the Administrative Agent in its possession in
the State of New York.

 

The foregoing opinions are also subject to the following comments and
qualifications:

 

(A)  The
enforceability of Section 10.03 of the Credit Agreement (and any similar
provisions in any of the other Loan Documents) may be limited by (i) laws
rendering unenforceable indemnification contrary to Federal or state securities
laws and the public policy underlying such laws and (ii) laws limiting the
enforceability of provisions exculpating or exempting a party, or requiring
indemnification of a party for, liability for

 

2

 

its own action or inaction, to the extent the
action or inaction involves gross negligence, recklessness, willful misconduct
or unlawful conduct.

 

(B)  The
enforceability of provisions in the Loan Documents to the effect that terms may
not be waived or modified except in writing may be limited under certain
circumstances.

 

(C) 
Clause (iii) of Section 3.02 of the Credit Agreement may not be
enforceable to the extent that the Guaranteed Obligations are materially
modified.

 

(D)  We
express no opinion as to (i) the effect of the laws of any jurisdiction in
which any Lender is located (other than the State of New York) that limit the
interest, fees or other charges such Lender may impose for the loan or use of
money or other credit, (ii) the last sentence of Section 2.16(d), Section 3.06
or Section 3.09 of the Credit Agreement, (iii) the first sentence of Section 10.09(b) of
the Credit Agreement (and any similar provisions in any of the other Loan
Documents), insofar as such sentence relates to the subject-matter jurisdiction
of the United States District Court for the Southern District of New York to
adjudicate any controversy related to any of the Loan Documents and (iv) Section 10.09(c) of
the Credit Agreement (and any similar provisions in any of the other Loan
Documents) insofar as such Section relates to the waiver of inconvenient
forum with respect to proceedings in the United States District Court for the
Southern District of New York.

 

(E)  We
express no opinion as to the applicability to the obligations of the Subsidiary
Guarantors of Section 548 of the Bankruptcy Code, Article 10 of the
New York Debtor Creditor Law or any other provision of law relating to
fraudulent conveyances, transfers or obligations, nor do we express any opinion
as to the enforceability of such obligations.

 

(F)  We
wish to point out that the obligations of the Obligors, and the rights and
remedies of the Administrative Agent and the Lenders, under the Security
Agreement may be subject to possible limitations upon the exercise of remedial
or procedural provisions contained in the Security Agreement, provided that
such limitations do not, in our opinion (but subject to the other comments and
qualifications set forth in this opinion letter), make the remedies and
procedures that will be afforded to the Administrative Agent and the Lenders
inadequate for the practical realization of the substantive benefits purported
to be provided to the Administrative Agent and the Lenders by the Security
Agreement.

 

(G) 
Except as provided in paragraphs 2 and 3 above, we express no opinion as to the
creation or perfection of any security interest in any Collateral (as defined
in the Security Agreement).  In addition,
we express no opinion as to the creation or perfection of any security interest
in any Collateral (as so defined) as to which, pursuant to Section 9-109
of the NYUCC, Article 9 of the NYUCC does not apply.

 

3

 

(H)  We
express no opinion as to (i) the priority of any security interest in any
Collateral (as defined in the Security Agreement), (ii) the existence of,
or the right, title or interest of the Obligors in, to or under, any of the
Collateral (as so defined) or (iii) the creation of any security interest
in (or other lien on) any Broadcast License or the proceeds thereof.

 

The foregoing opinions are limited to matters
involving the Federal laws of the United States and the laws of the State of
New York, and we do not express any opinion as to the laws of any other
jurisdiction nor do we express an opinion as to the applicability to the
transactions under the agreements referred to herein, or the effect upon such
transactions, of the Communications Act of 1935, and the parties, regulations
and policies of the FCC thereunder.

 

This opinion letter is provided to you by us
as special New York counsel to JPMCB pursuant to Section 5.01(c) of
the Credit Agreement and may not be relied upon by any other person or for any
purpose other than in connection with the transactions contemplated by the Loan
Documents without our prior written consent in each instance.

 

Very truly yours,

 

 

WJM/RMG

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]