Employment Agreement (Mark R. Thompson)



 Exhibit 10.11 
 LIBERTY GROUP PUBLISHING, INC. 
 LIBERTY GROUP OPERATING, INC. 
 EMPLOYMENT AGREEMENT 
 THIS
EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of the 19th day of April, 2006 by and
among LIBERTY GROUP PUBLISHING, INC., a Delaware corporation (“Publishing”), LIBERTY GROUP OPERATING, INC., a Delaware corporation (“Operating” and together with Publishing, the “Company”), and MARK THOMPSON
(“Executive”). 
 WHEREAS in order to induce Executive to serve as the Company’s Chief Financial Officer, the Company desires
to provide Executive with compensation and other benefits on the terms and conditions set forth in this Agreement; and 
 WHEREAS, Executive
is willing to accept such employment and perform services for the Company on the terms and conditions herein set forth. 
 NOW, THEREFORE, in
consideration of the mutual promises, covenants and agreements herein contained, together with other good and valuable consideration the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows: 
 1. SERVICES AND DUTIES. The Company hereby employs Executive, and Executive hereby accepts employment from the Company in the capacity of its Chief
Financial Officer to work in the Rochester, New York area. Executive will report directly to the Company’s Chief Executive Officer (“CEO”). Executive shall be a full-time employee of the Company and shall dedicate all of
Executive’s working time to the Company and shall have no other employment and no other business ventures which are undisclosed to the Company or which conflict with Executive’s duties under this Agreement. Executive will perform such
duties as are required by the Company from time to time and normally associated with Executive’s position, together with such additional duties, commensurate with the Executive’s position, as may be assigned to the Executive from time to
time by the CEO. Notwithstanding the foregoing, nothing herein shall prohibit Executive from (i) engaging in personal investment activities for himself and his family that do not give rise to any conflict of interests with the Company or its
affiliates, (ii) subject to prior approval of the Board, accepting directorships unrelated to the Company that do not give rise to any conflict of interests with the Company or its affiliates and (iii) engaging in charitable and civic
activities, so long as such outside interests do not interfere with the performance of her duties hereunder. 
 2. START DATE; EMPLOYMENT
AT WILL. The Executive understands and agrees (i) that he is an employee-at-will, (ii) that this Agreement does not constitute, for any reason, a guaranty or promise of continued employment with the Company (with the
“Company” understood, for purposes of this Section 2, to include any subsidiary of the Company and any successor in interest to the Company or to any such subsidiary), (iii) that the commencement of his employment with the
Company does not constitute, for any reason, a guaranty or promise of continued employment with the Company and (iv) that the continuation of his employment with the Company for any period of time does not constitute, for any reason, a guaranty
or promise of continued employment with the Company. The Executive acknowledges that this Agreement 








 
has no term, and that the Company may terminate the Executive’s employment with the Company at any time, with or without Cause (as defined below),
subject to the Company’s obligations set forth in Section 5 below. The obligations under this Agreement shall commence on or about May 10, 2006 (the actual date on which Executive is added to the Company’s payroll, the
“Effective Date”). Notwithstanding anything to the contrary herein, in the event of any termination of Executive’s employment, Executive shall nevertheless continue to be bound by the terms and conditions set forth in Sections
6 and 7 hereof, which provisions, along with Sections 8 and 9 hereof, shall survive any termination of this Agreement. For the sake of clarity, the delivery by the Company pursuant to this Section 2 of a notice not to extend the Term is not a
termination by the Company without Cause for purposes of this Agreement. 
 3. COMPENSATION. 
 (a) Base Salary. In consideration of Executive’s full and faithful satisfaction of Executive’s duties under this Agreement, the Company
agrees to pay to Executive a salary in the amount of two hundred and fifty thousand dollars ($250,000) per annum (the “Base Salary”), payable in such installments as the Company pays its similarly placed employees (but not less
frequently than each calendar month), subject to usual and customary deductions for withholding taxes and similar charges, and customary employee contributions to health, welfare and retirement programs in which Executive is enrolled. The Base
Salary shall be reviewed on an annual basis in accordance with Executive’s annual performance evaluation and adjusted at the Company’s sole discretion; provided, however, in no event shall the Base Salary be reduced from its
level at the time without Executive’s approval. 
 (b) Annual Bonus Compensation. In addition to any salary payable pursuant to
Section 3(a) above, Executive shall be eligible to receive in respect of each fiscal year of the Company a bonus (for each such fiscal year, a “Bonus”), based on the achievement, as determined by the Board in its sole
discretion, of certain performance standards as agreed to by Executive and the Board, payable in such combination of cash and shares of common stock of Publishing (“Common Stock”) as determined by the Board, in its sole discretion (the
stock portion of any such Bonus, the “Restricted Stock Grant”). The number of shares comprising any Restricted Stock Grant shall be determined by dividing the applicable portion of the Bonus being awarded in Common Stock by the fair market
value (as determined by the Board in good faith) of the Common Stock on the date of grant. Generally, each Restricted Stock Grant shall vest as follows: (i) one-third (1/3) of the shares subject to such Restricted Stock Grant on the third
anniversary of the date of grant; (ii) one-third (1/3) of the shares subject to such Restricted Stock Grant on the fourth anniversary of the date of grant and (iii) the remaining one-third (1/3) of the shares subject to such
Restricted Stock Grant on the fifth anniversary of the date of grant. Executive shall receive dividends on unvested shares to the extent such dividends are paid and such shares have not been forfeited. In the event Executive’s employment is
terminated by the Company with Cause (as such term is defined below), Executive shall immediately forfeit (x) all unvested shares subject to any Restricted Stock Grant and (y) in the case of a termination based on clause (ii) of the
definition of Cause, all vested shares granted under any Restricted Stock Grant. 
  

 -2- 








 The foregoing notwithstanding, the parties agree that for fiscal year 2006 only, Executive shall receive
a cash bonus of at least one hundred twenty five thousand dollars ($125,000) (“Guaranteed 2006 Bonus”). 
 The cash portion of each
Bonus shall be paid to the Executive within a reasonable time after the end of the fiscal year, but in no event later than 2 1/2 months following completion of the Company’s fiscal year to which such Bonus relates (“Outside Payment Date”); the Restricted Stock Grant portion of each Bonus shall be made on such date as the Board determines
in its discretion, though no later than the applicable Outside Payment Date. Notwithstanding anything to the contrary contained herein, no Bonus in respect of any fiscal year of the Company will be due to Executive unless he is employed by the
Company on the last day of the fiscal year in respect of which the Bonus is awarded. To the extent that any Bonus is paid as a Restricted Stock Grant, the provisions of this Section 3(c) pertaining to any Restricted Stock Grant shall be set
forth in a management stockholder agreement containing customary restrictions and terms, including but not limited to restrictions on transferability, drag-along rights, tag-along rights plus repurchase rights, all of which shall survive any
expiration of the Term of this Agreement. 
 (c) Initial Restricted Stock Grant. Subject to Executive’s compliance with
Section 3(e) below, upon the Effective Date, Executive shall be awarded a one time grant (the “Initial Restricted Stock Grant”) of 150 shares of Common Stock, which is the number of shares equal to $150,000 divided by $1,000.00
per share (“Per Share Price”). The Initial Restricted Stock Grant shall vest as follows: (i) one-third (1/3) of the shares subject to the Initial Restricted Stock Grant on the third anniversary of the Effective Date;
(ii) one-third (1/3) of the shares subject to the Initial Restricted Stock Grant on the fourth anniversary of the Effective Date and (iii) the remaining one-third (1/3) of the shares subject to the Initial Restricted Stock Grant
on the fifth anniversary of the Effective Date. Executive shall receive dividends on unvested shares to the extent such dividends are paid and such shares have not been forfeited. In the event the Executive is terminated with Cause, he shall forfeit
(x) all unvested shares subject to the Initial Restricted Stock Grant and, (y) in the case of a termination based on clause (ii) of the definition of Cause, all vested shares granted under any Restricted Stock Grant. The provisions of
this Section 3(d) shall be set forth in a management stockholder agreement containing customary restrictions and terms, including but not limited to restrictions on transferability, drag-along rights, tag-along rights plus repurchase rights,
all of which shall survive any expiration of the Term of this Agreement. 
 (d) Vesting of Shares Upon Executive’s Termination
without Cause, Change of Control: 
 (1) If Executive is terminated by the Company without Cause, Executive shall immediately vest as the
owner as to the percentage of (a) the Initial Restricted Stock Grant and (b) any additional Restricted Stock Grants that would have vested under Section 3(c) above on the next succeeding anniversary of the Grant Date following such
termination; provided, however, that in no event shall the number of Restricted Shares subject to such vesting be less than one-third (1/3) of the shares subject to the Initial Restricted Stock Grant; 
  

 -3- 








 (2) In the event a “change of control” occurs (as such term shall be defined in the
Company’s Incentive Stock Award Plan) and Executive’s employment is terminated by the Company (or its successor) without Cause within 12 months of such change of control, 100% of the then remaining unvested shares subject to the Initial
Restricted Stock Grant and any additional Restricted Stock Grants shall immediately vest 
 (e) Withholding. All taxable compensation
payable to Executive pursuant to this Section 3 or otherwise pursuant to this Agreement shall be subject to customary withholding taxes and such other employment taxes as are required under Federal law or the law of any state or governmental
body to be collected with respect to compensation paid to an employee. 
 (f) Executive’s Co-Investment. Executive hereby agrees
to invest, as of the Effective Date, $             in Common Stock at the Per Share Price alongside Parent. Such shares shall not be subject to any vesting restrictions but shall be
subject to customary restrictions and terms, including but not limited to restrictions on transferability, drag-along rights, tag-along rights plus repurchase rights, all of which shall survive any expiration of the Term of this Agreement.

 4. BENEFITS AND PERQUISITES. 
 (a) Retirement and Welfare Benefits. During the Term, Executive will be entitled to all the usual benefits offered to employees at Executive’s level, including vacation, sick time, participation in the Company’s medical,
dental and insurance programs, as well as the ability to participate in the Company’s 401(k) retirement savings plan, subject to the applicable limitations and requirements imposed by the terms of such benefit plans, in each case in accordance
with the terms of such plans as from time to time in effect. Nothing in this Section 4, however, shall require the Company to maintain any benefit plan or provide any type or level of benefits to its employees, including Executive; provided,
however, during the Term, Executive shall be entitled to not less than four (4) weeks paid vacation annually. 
 (b) Reimbursement
of Expenses. The Company shall reimburse Executive for any expenses reasonably and necessarily incurred by Executive in furtherance of Executive’s duties hereunder, including travel, meals and accommodations, upon submission by Executive of
vouchers or receipts and in compliance with such rules and policies relating thereto as the Company may from time to time adopt. 
 (c)
Reimbursement of Moving Expenses. The Company shall reimburse Executive for any moving expenses reasonably and necessarily incurred by Executive, upon submission by Executive of vouchers or receipts. Reasonable and necessary moving expenses
include, but are not limited to, actual moving expenses, commissions paid by Executive selling his current primary residence, storage, house-hunting trips for Executive and his family, 

  

 -4- 








 
and relocation “gross-up” to cover the taxes incurred by Executive due to reimbursements made under this Section 4(c). Executive’s
relocation to the Rochester, New York area must be complete by August 31, 2006. In the event Executive voluntarily leaves the Company’s employ, or is terminated for cause as defined below, within the first twelve months of employment,
Executive must reimburse the Company for moving expenses incurred within 30 days of that date. 
 5. TERMINATION. Executive’s
employment with the Company may be terminated (x) by the Company for Cause (as defined below), effective on the date on which a written notice to such effect is delivered to Executive; (y) by the Company at any time without Cause,
effective on the date on which a written notice to such effect is delivered to Executive; or (z) by Executive at any time, effective on the date on which a written notice to such effect is delivered to the Company. 
 (a) For Cause Termination. If Executive’s employment with the Company is terminated by the Company for Cause, Executive shall not be
entitled to any further compensation or benefits other than accrued but unpaid Base Salary (payable as provided in Section 3(b)) and accrued and unused vacation pay through the date of such termination (collectively, the “Accrued
Benefits”). If the definition of “Cause” set forth below conflicts with such definition in any stock incentive plan or agreement of the Company or any of its affiliates, the definition set forth herein shall control. 

(b) Termination by Company without Cause, “Change of Control”. If Executive’s employment is terminated by the Company other
than for Cause, including within 12 months of a “change of control”, prior to the end of the Term hereof, then Executive shall be entitled to, upon Executive’s providing the Company with a signed release of claims in a form adopted by
the Company’s Board of Directors from time to time and subject to Executive’s continued compliance with the provisions of Sections 6 and 7 hereof: (i) the Accrued Benefits, (ii) an amount equal to twelve (12) months Base
Salary payable in the same manner as provided under Section 3(a), (iii) any declared Bonus not yet paid (unless such termination occurs prior to the payment to Executive of the Guaranteed 2006 Bonus in which case Executive shall receive
the Guaranteed 2006 Bonus), (iv) the rights provided in Sections 3(d)(1) or (2), as applicable, relating to the vesting of a portion of the shares of any Restricted Stock Grant and the Initial Restricted Stock Grant, respectively, that are not
vested as of the date of termination, and (v) continuation of Executive’s coverage under the Company’s medical plan at the same levels as such benefits that have been provided to Executive, and in connection therewith Executive shall
periodically pay to the Company amounts equivalent to that which he paid as required employee contributions immediately prior to the date of termination, until the earlier of (A) the period of time it takes Executive to become eligible for the
medical benefits program of a new employer (subject to Section 6(a) hereof) or (B) twelve (12) months from the date of such termination. Executive acknowledges that executive’s termination of employment on the date of such
termination shall constitute a “qualifying event” for the purposes of the Consolidated Omnibus Budget Reconciliation Act of 1986 (“COBRA”). Executive further acknowledges on behalf of herself and her dependents that any period
with respect to which any of them would he eligible to elect COBRA shall be reduced by the period of post-termination medical benefit continuation provided under this subsection. Executive acknowledges that the Company may terminate Executive
without Cause at any time, and that the Company shall have no obligations under such 

  

 -5- 








 
circumstances to Executive beyond the specific obligations set forth in this Section 5(b); in particular, Executive acknowledges that Executive shall
have no right whatsoever to any then unvested shares under the Initial Restricted Stock Grant, any Restricted Stock Grant or any other incentive equity award granted to Executive except as provided above in this Section 5(b). 
 (c) Resignation, Death or Disability. If Executive’s employment is terminated by reason of Executive’s death, Disability or voluntary
resignation prior to the end of the Term, Executive shall not be entitled to receive any further compensation or benefits under this Agreement or otherwise other than the Accrued Benefits. During any period that Executive fails to perform his duties
hereunder as a result of disability or incapacity, Executive shall continue to receive her Base Salary and all other benefits and all other compensation pursuant to this Agreement unless and until her employment is terminated pursuant to this
Section 5. 
 (d) Definitions. For purposes of this Agreement: 
 “Cause” means (i) conviction of, guilty plea concerning or confession of any felony, (ii) any act of dishonesty
committed by Executive in connection with the Company’s or its subsidiaries’ business, (iii) any material breach by Executive of this Agreement, after written notice thereof from the Board is given in writing and such breach is not
cured to the satisfaction of the Company within a reasonable period of time (not greater than 30 days) under the circumstances, (iv) any material breach of any reasonable and lawful rule or directive of the Company, (v) the gross or
willful neglect of duties or gross misconduct by Executive, or (vi) the habitual use of drugs or habitual, excessive use of alcohol to the extent that any of such uses in the Board’s good faith determination materially interferes with the
performance of Executive’s duties under this Agreement. 
 “Disability” means, as determined by the Board of
Directors in good faith, Executive’s inability, due to disability or incapacity, to perform all of her duties hereunder on a full-time basis for (i) periods aggregating 90 days, whether or not continuous, in any continuous period of 365
days, or (ii) where Executive’s absence is adversely affecting the performance of the Company in a significant manner, periods greater than 30 days and Executive is unable to resume her duties on a full time basis within 10 days of receipt
of written notice of the Board’s determination under this clause (ii). 
 (e) Resignation as Officer or Director. Upon the
termination of employment for any reason, Executive shall resign each position (if any) that he then holds as an officer or director of the Company or any of its subsidiaries. 
 (f) Payments in Lieu of Other Severance Rights. The payments provided in subsections (a), (b) and (c) of this Section 5 shall be
made in lieu of any other severance payments under any severance agreement, plan, program or arrangement of the Company. 
 (g) Manner of
Payment. Unless Executive breaches one of the restrictive covenants contained in Sections 6 and 7 of this Agreement, the payments described in 

  

 -6- 








 
clauses (b) and (c) of this Section 5 shall be paid over a period of twelve (12) months commencing on the date of Executive’s
termination of employment with the Company. Notwithstanding anything herein to the contrary, (1) the payment of any amounts hereunder (including benefits continuation) shall cease on the date on which Executive breaches any of the restrictive
covenants contained in Sections 6 and 7 of this Agreement. 
 6. RESTRICTIVE COVENANTS. Executive acknowledges that during the period
of his employment with the Company he shall have access to the Company’s Confidential Information (as defined below) and will meet and develop relationships with the Company’s potential and existing suppliers, financing sources, clients,
customers and employees. 
 (a) Noncompetition. Executive agrees that during the period of his employment with the Company and for the
one (1) year period immediately following termination of such employment for any reason, Executive shall not directly or indirectly, either as a principal, agent, employee, employer, consultant, partner, shareholder of a closely held
corporation or shareholder in excess of five (5%) percent of a publicly traded corporation, corporate officer or director, or in any other individual or representative capacity, engage or otherwise participate in any manner or fashion in any
business that is in competition in any significant manner with the business activities of the Company or its affiliates in the United States. Executive further covenants and agrees that this restrictive covenant is reasonable as to duration, terms
and geographical area and that the same protects the legitimate interests of the Company and its affiliates, imposes no undue hardship on Executive, is not injurious to the public, and that any violation of this restrictive covenant shall be
specifically enforceable in any court with jurisdiction upon short notice. 
 (b) Solicitation of Employees, Etc. Executive agrees
that during the period of his employment with the Company and for the one (1) year period immediately following the date of termination of Executive’s employment with the Company for any reason, Executive shall not, directly or indirectly,
(i) solicit or induce any officer, director, employee, agent or consultant of the Company or any of its successors, assigns, subsidiaries or affiliates to terminate his, her or its employment or other relationship with the Company or its
successors, assigns, subsidiaries or affiliates for the purpose of associating with any competitor of the Company or its successors, assigns, subsidiaries or affiliates, or otherwise encourage any such person or entity to leave or sever his, her or
its employment or other relationship with the Company or its successors, assigns, subsidiaries or affiliates, for any other reason or (ii) hire any individual who left the employ of the Company or any of its affiliates during the immediately
preceding one-year period. 
 (c) Solicitation of Clients, Etc. Executive agrees that during the period of his employment with the
Company and for the one (1) year period immediately following the date of termination of Executive’s employment with the Company for any reason, Executive shall not, directly or indirectly, solicit or induce (i) any customers or
clients of the Company or its successors, assigns, subsidiaries or affiliates or (ii) any vendors, suppliers or consultants then under contract to the Company or its successors, assigns, subsidiaries or affiliates, to terminate his, her or its
relationship with the Company or its successors, assigns, subsidiaries or affiliates, for the purpose of associating with any competitor of the Company or its successors, assigns, subsidiaries or affiliates, or otherwise encourage such customers or


  

 -7- 








 
clients, or vendors, suppliers or consultants then under contract, to terminate his, her or its relationship with the Company or its successors, assigns,
subsidiaries or affiliates, for any other reason. 
 (d) Disparaging Comments. Executive agrees that during the period of his
employment with the Company and thereafter, Executive shall not make any disparaging or defamatory comments regarding the Company or, after termination of his employment relationship with the Company, make any comments concerning any mutually agreed
to confidential aspects of the termination of their relationship. The obligations of Executive under this subparagraph shall not apply to disclosures required by applicable law, regulation or order of any court or governmental agency. 
 Nothing contained in this Section 6 shall limit any common law or statutory obligation that the Executive may have to the Company or any of its
affiliates. For purposes of this Section 6 and Section 7, the “Company” refers to the Company and any incorporated or unincorporated affiliates of the Company, including any entity which becomes Executive’s employer as a
result of any reorganization or restructuring of the Company. 
 7. CONFIDENTIALITY. All books of account, records, systems,
correspondence, documents, and any and all other data, in whatever form, concerning or containing any reference to the works and business of the Company or its affiliated companies shall belong to the Company and shall be given up to the Company
whenever the Company requires Executive to do so. Executive agrees that Executive shall not at any time during the term of Executive’s employment or thereafter, without the Company’s prior written consent, disclose to any person
(individual or entity) any information or any trade secrets, plans or other information or data, in whatever form, (including, without limitation, (i) any financing strategies and practices, pricing information and methods, training and
operational procedures, advertising, marketing, and sales information or methodologies or financial information and (ii) any Proprietary Information (as defined below)), concerning the Company’s or any of its affiliated companies’ or
customers’ practices, businesses, procedures, systems, plans or policies (collectively, “Confidential Information”), nor shall Executive utilize any such Confidential Information in any way or communicate with or contact any such
customer other than in connection with Executive’s employment by the Company. Executive hereby confirms that all Confidential Information constitutes the Company’s exclusive property, and that all of the restrictions on Executive’s
activities contained in this Agreement and such other nondisclosure policies of the Company are required for the Company’s reasonable protection. Confidential Information shall not include any information that has otherwise been disclosed to
the public not in violation of this Agreement. This confidentiality provision shall survive the termination of this Agreement and shall not be limited by any other confidentiality agreements entered into with the Company or any of its affiliates.

 Executive agrees that he shall promptly disclose to the Company in writing all information and inventions generated, conceived or first
reduced to practice by her alone or in conjunction with others, during or after working hours, while in the employ of the Company (all of which is collectively referred to in this Agreement as “Proprietary Information”);
provided, however, that such Proprietary Information shall not include (i) any information that has otherwise been disclosed to the public not in violation of this Agreement and (ii) general 

  

 -8- 








 
business knowledge and work skills of Executive, even if developed or improved by Executive while in the employ of the Company. All such Proprietary
Information shall be the exclusive property of the Company and is hereby assigned by Executive to the Company. Executive’s obligation relative to the disclosure to the Company of such Proprietary Information anticipated in this Section 7
shall continue beyond Executive’s termination of employment and Executive shall, at the Company’s expense, give the Company all assistance it reasonably requires to perfect, protect and use its right to the Proprietary Information.

 8. ASSIGNMENT. This Agreement, and all of the terms and conditions hereof, shall bind the Company and its successors and assigns
and shall bind Executive and Executive’s heirs, executors and administrators. No transfer or assignment of this Agreement shall release the Company from any obligation to Executive hereunder. Neither this Agreement, nor any of the
Company’s rights or obligations hereunder, may be assigned or otherwise subject to hypothecation by Executive. The Company may assign the rights and obligations of the Company hereunder, in whole or in part, to any of the Company’s
subsidiaries, affiliates or parent corporations, or to any other successor or assign in connection with the sale of all or substantially all of the Company’s assets or stock or in connection with any merger, acquisition and/or reorganization,
provided the assignee assumes the obligations of the Company hereunder. 
 9. Section 409A of the Internal Revenue Code of 1986, as
amended. 
 If any of the payments to be made under this Agreement are deemed to be “deferred compensation”, as that term is
defined under Section 409A of the Internal Revenue Code of 1986, as amended, and such regulations and guidance promulgated by the Internal Revenue Service in connection therewith (collectively, “Section 409A”), the Company reserves
the right to modify the terms and provisions of this Agreement to comply with Section 409A; and 
 10. GENERAL. 
 (a) Notices. Any notices provided hereunder must be in writing and shall be deemed effective upon the earlier of one business day following
personal delivery (including personal delivery by telecopy or telex), or the third business day after mailing by first class mail to the recipient at the address indicated below: 
 To the Company: 
 Liberty Group Publishing,
Inc. 
 3000 Dundee Road, Suite 203 
 Northbrook, Illinois 60062 
 Attn: Chairman of the Board of Directors 
 To Executive: 
 Mr. Mark Thompson

 1074 Berganot Trail 
 Castle
Rock, CO 80108 
 or to such other address or to the attention of such other person as the recipient party will have specified by prior written notice to the
sending party. 
  

 -9- 








 (b) Severability. Any provision of this Agreement which is deemed invalid, illegal or
unenforceable in any jurisdiction shall, as to that jurisdiction and subject to this paragraph be ineffective to the extent of such invalidity, illegality or unenforceability, without affecting in any way the remaining provisions hereof in such
jurisdiction or rendering that or any other provisions of this Agreement invalid, illegal, or unenforceable in any other jurisdiction. If any covenant should be deemed invalid, illegal or unenforceable because its scope is considered excessive, such
covenant shall be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable. 
 (c) Entire Agreement. This document constitutes the final, complete, and exclusive embodiment of the entire agreement and understanding between
the parties related to the subject matter hereof and supersedes and preempts any prior or contemporaneous understandings, agreements, or representations by or between the parties, written or oral. 
 (d) Counterparts. This Agreement may be executed on separate counterparts, any one of which need not contain signatures of more than one party,
but all of which taken together will constitute one and the same agreement. 
 (e) Amendments. No amendments or other modifications
to this Agreement may be made except by a writing signed by all parties. The parties acknowledge that FIF III Liberty Acquisition, LLC (“Merger Sub”) is intended to be a third party beneficiary of this Agreement, and this Agreement cannot
be amended without the prior consent of Merger Sub. The foregoing notwithstanding, nothing in this Agreement, express or implied, is intended to confer upon any third person any rights or remedies under or by reason of this Agreement. 
 (f) Choice of Law. All questions concerning the construction, validity and interpretation of this Agreement will be governed by the laws of the
State of New York without giving effect to principles of conflicts of law of such state. 
 (g) Survivorship. The provisions of this
Agreement necessary to carry out the intention of the parties as expressed herein shall survive the termination or expiration of this Agreement. 
 (h) Waiver. The waiver by either party of the other party’s prompt and complete performance, or breach or violation, of any provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach or
violation, and the failure by any party hereto to exercise any right or remedy which it may possess hereunder shall not operate nor be construed as a bar to the exercise of such right or remedy by such party upon the occurrence of any subsequent
breach or violation. No waiver shall be deemed to have occurred unless set forth in a writing executed by or on behalf of the waiving party. No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such
waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived. 
  

 -10- 








 (i) Captions. The captions of this Agreement are for convenience and reference only and in no way
define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision hereof. 
 (j) Construction.
The parties acknowledge that this Agreement is the result of arm’s-length negotiations between sophisticated parties each afforded representation by legal counsel. Each and every provision of this Agreement shall be construed as though both
parties participated equally in the drafting of the same, and any rule of construction that a document shall be construed against the drafting party shall not be applicable to this Agreement. 
 (k) Arbitration. Except as necessary for the Company and its subsidiaries, affiliates, successors or assigns or Executive to specifically enforce
or enjoin a breach of this Agreement (to the extent such remedies are otherwise available), the parties agree that any and all disputes that may arise in connection with, arising out of or relating to this Agreement, or any dispute that relates in
any way, in whole or in part, to Executive’s services on behalf of the Company or any subsidiary, the termination of such services or any other dispute by and between the parties or their subsidiaries, affiliates, successors or assigns, shall
be submitted to binding arbitration in New York, New York according to the National Employment Dispute Resolution Rules and procedures of the American Arbitration Association. The parties agree that the prevailing party in any such dispute shall be
entitled to reasonable attorneys’ fees, costs, and necessary disbursements in addition to any other relief to which he or it may be entitled. This arbitration obligation extends to any and all claims that may arise by and between the parties or
their subsidiaries, affiliates, successors or assigns, and expressly extends to, without limitation, claims or causes of action for wrongful termination, impairment of ability to compete in the open labor market, breach of an express or implied
contract, breach of the covenant of good faith and fair dealing, breach of fiduciary duty, fraud, misrepresentation, defamation, slander, infliction of emotional distress, disability, loss of future earnings, and claims under the United States
Constitution, and applicable state and federal fair employment laws, federal and state equal employment opportunity laws, and federal and state labor statutes and regulations, including, but not limited to, the Civil Rights Act of 1964, as amended,
the Fair Labor Standards Act, as amended, the Americans With Disabilities Act of 1990, as amended, the Rehabilitation Act of 1973, as amended, the Employee Retirement Income Security Act of 1974, as amended, the Age Discrimination in Employment Act
of 1967, as amended, and any other state or federal law. 
 11. EXECUTIVE REPRESENTATION & ACCEPTANCE. By signing this
Agreement, Executive hereby represents that Executive is not currently under any contractual obligation to work for another employer and that Executive is not restricted by any agreement or arrangement from entering into this Agreement and
performing Executive’s duties hereunder. 
  

 -11- 








 IN WITNESS WHEREOF AND INTENDING TO BE LEGALLY BOUND THEREOF, the parties hereto have executed and
delivered this Agreement as of the year and date first above written. 
  

			
	LIBERTY GROUP PUBLISHING, INC.
		
	By:	 	 /s/ Michael E. Reed

	Name:	 	Michael E. Reed
	Title:	 	C.E.O.
	
	LIBERTY GROUP OPERATING, INC.
		
	By:	 	 /s/ Michael E. Reed

	Name:	 	Michael E. Reed
	Title:	 	C.E.O.
	
	EXECUTIVE
	
	 /s/ Mark Thompson

	Mark Thompson


  

 -12-