**ASSET      PURCHASE AGREEMENT**

**by      and among**

**GATEHOUSE      MEDIA, INC.,**

**GATEHOUSE      MEDIA WEST VIRGINIA HOLDINGS, INC.,**

**GATEHOUSE      MEDIA ILLINOIS HOLDINGS, INC.,**

**CHAMPION      PUBLISHING, INC.**

**AND**

**CHAMPION      INDUSTRIES, INC.**

**Effective      as of June 28, 2007**

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**TABLE      OF CONTENTS**

|  **ARTICLE              I.  SALE OF ASSETS AND TERMS OF PAYMENT**                               |  1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|  1.1                                                                                                           | Transfer              of Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 1 |
|  1.2                                                                                                           | Excluded              Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 4 |
|  1.3                                                                                                           | Liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 6 |
|  1.4                                                                                                           | Consideration                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 8 |
|  1.5                                                                                                           | Manner              of Payment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 8 |
|  1.6                                                                                                           | Adjustments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 9 |
|  1.7                                                                                                           | Allocation              of Purchase Price                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 11 |
|                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|  **ARTICLE              II.  THE CLOSING**                                                           | 12                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|  2.1                                                                                                           | Time              and Place of Closing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 12 |
|  2.2                                                                                                           | Deliveries              by Sellers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 12 |
|  2.3                                                                                                           | Deliveries              by Buyer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 13 |
|                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|  **ARTICLE              III.  REPRESENTATIONS AND WARRANTIES OF              SELLERS**               | 14                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 3.13.23.33.43.53.63.73.83.93.103.113.123.133.143.153.163.173.183.193.20                                        | Organization;                QualificationAuthority                Relative to this Agreement Financial                Statements Business                Since the Balance Sheet Date No                Defaults Undisclosed                Liabilities Licenses                and Authorizations Condition                and Adequacy of the Assets; Title Contracts                and Arrangements Real                Property Intellectual                Property Litigation                and Compliance with Laws  Employees Personal                PropertyChanges Brokers                 Environmental                Matters  Circulation                 Insurance Taxes   | 141415161617171717181920202222222222242424  |
| **ARTICLE              IV.  REPRESENTATIONS AND WARRANTIES OF BUYER**                                | 25                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.14.24.34.4                                                                                                        | Organization Authority                Relative to this Agreement No                Defaults Brokers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 25252525 |
|                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| **ARTICLE              V.  COVENANTS OF SELLER PENDING THE CLOSING              DATE.**    |  25                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|  5.1                                                                                                           |  Maintenance              of Business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  25 |

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|  5.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  Organization;                Goodwill                                      |  27 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|----------|
|  5.3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  Access                to Facilities, Files and Records                     |  27 |
|  5.4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  Representations                and Warranties                                   |  27 |
|  5.5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  Corporate                Action                                            |  27 |
|  5.6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  Consents                                                                   |  27 |
|  5.7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  Confidential                Information                                    |  28 |
|  5.8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  Consummation                of Agreement                                   |  28 |
|  5.9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  Notice                of Proceedings                                       |  28 |
|  5.10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  Interim                Financial Statements                                |  28 |
|  5.11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  Taxes                                                                      |  28 |
|  5.12                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  Audited                Financial Statements; Interim Financial Statements  |  29 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                  |     |
|  **ARTICLE                VI.COVENANTS OF BUYER PENDING THE CLOSING DATE**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  30                                                                              |
|         6.1                         Representations and Warranties 6.2          Corporate                  Action 6.3          Confidential                  Information 6.4          Consummation                  of Agreement 6.5          Notice                  of Proceedings 6.6          Maintenance                  of Financial Position  |  303030303131                                                               |
|  **ARTICLE                VII.  CONDITIONS TO THE OBLIGATIONS OF SELLERS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 31                                                                                    |
|                  7.1          Representations,                  Warranties and Covenants 7.2          Proceedings. 7.3          Hart-Scott-Rodino                                                                                                                                                                                                                                                                                                                                                                                                        | 313232                                                                                |
|  **ARTICLE                VIII.  CONDITIONS TO THE OBLIGATIONS OF BUYER**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 33                                                                                    |
|                    8.1          Representations,                    Warranties and Covenants 8.2          Proceedings 8.3          Hart-Scott-Rodino. 8.4          Consents. 8.5          Financing 8.6          Title                    Insurance                                                                                                                            |  333334343434                                                               |
|  **ARTICLE                IX.  INDEMNIFICATION**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  35                                                                              |
|                  9.1          Survival;                  Limitations 9.2          Indemnification                  of Buyer 9.3          Indemnification                  of Sellers 9.4          Notice                  of Claims 9.5          Defense                  of Third Party Claims                                                                                                                                       | 3537383838                                                                            |
|  **ARTICLE                X.  MISCELLANEOUS PROVISIONS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 39                                                                                    |
|                  10.1        Risk                  of Loss 10.2        Abandonment                  of Agreement 10.3        Liabilities                  Upon Abandonment 10.4        Expenses 10.5        Employees                  and Employee Benefits 10.6        Further                  Assurances and Consents                                                                                                                       | 394040414142                                                                          |

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|    10.7        Waiver                  of Compliance 10.8       Notices 10.9       Assignment 10.10     Governing                    Law 10.11     Public                    Announcements 10.12     No                    Third Party Rights 10.13     Waiver                    of Jury Trial 10.14     Counterparts 10.15     Headings 10.16     Specific                    Performance 10.17     Severability 10.18     Confidentiality 10.19     Entire                    Agreement; Amendments 10.20     Champion                    Industries, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 4444454545464646464646464647 |
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                         |   |
|   **Schedules** Schedule                    1.2(j)                                Excluded                    AssetsSchedule                    1.6(c)                               Exceptions                    to GAAPSchedule                    2.2(e)                               Transition                    Services TableSchedule                    2.2(f)                                Non-Competition                    AgreementSchedule                    3.3                                    Financial                    StatementsSchedule                    3.7                                    Licenses                    and PermitsSchedule                    3.9                                    ContractsSchedule                    3.10(a)                             Owned                    Real PropertySchedule                    3.10(b)                             Leased                    Real PropertySchedule                    3.11                                                     Intellectual PropertySchedule                    3.12                                  Litigation                    and Compliance with LawsSchedule                    3.13(a)                              Employees;                    SalariesSchedule                    3.13(b)                              Labor                    AgreementsSchedule                    3.14                                  Tangible                    Personal PropertySchedule                    3.15                                   Changes                    Since Balance Sheet DateSchedule                    3.17                                   Environmental                    MattersSchedule                    3.18                                   Circulation                    ReportsSchedule                    5.1                                      Maintenance                    of BusinessSchedule                    8.4                                      Material                    Consents |                         |

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**ASSET      PURCHASE AGREEMENT**

*The Herald Dispatch*

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*The Herald Dispatch”, “The Lawrence Herald”  and“Putnam Herald”, *

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|   | 8.2 | Proceedings. |
|--------|-----|--------------|

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*{Signature      page follows}*

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**SELLERS:**

**BUYER:**

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