Document:

Management and Services Agreement

 Exhibit 10.2 
  
 MANAGEMENT AND SERVICES AGREEMENT 
  
 THIS MANAGEMENT AND SERVICES AGREEMENT (“Agreement”) is made as of August 7, 2003, by and between MORRIS
COMMUNICATIONS COMPANY, LLC, a Georgia limited liability company (“Morris Communications”), MSTAR SOLUTIONS, LLC, a Georgia limited liability company (“MSTAR Solutions”) and MORRIS PUBLISHING GROUP, LLC, a Georgia limited
liability company. 
  
 W I T N E S S E T H 
  
 WHEREAS, Morris Communications, MSTAR Solutions and Morris Publishing each
desire to make certain arrangements for the provision of certain services by Morris Communications and MSTAR Solutions, respectively, to Morris Publishing and its subsidiaries (collectively, “Morris Publishing”) for the periods and on the
terms and conditions set forth herein. 
  
 NOW, THEREFORE, in
consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  
 ARTICLE 1 
 SERVICES TO BE PROVIDED 
  
 1.1 Services. The parties agree that, subject to the terms and conditions of this Agreement, Morris Communications and MSTAR Solutions shall respectively provide to Morris Publishing the services
described on Schedule 1.1 (the “Services”). 
  
 1.2 Cooperation. Morris Publishing shall cooperate fully and provide such assistance as is reasonably required for Morris Communications and MSTAR Solutions to provide the Services. During the Term, Morris Communications and
MSTAR Solutions shall respectively provide Morris Publishing with reasonable access during normal business hours to the books and records of Morris Communications and MSTAR Solutions relating to the Services and Morris Communications‘ and MSTAR
Solutions‘ management and employees involved in providing the Services will be available to confer with Morris Publishing. 
  
 1.3 Staffing. All Services may be performed by employees of Morris Communications or MSTAR Solutions, as appropriate, and neither Morris
Communications nor MSTAR Solutions shall be required to hire any persons other than their own employees in connection with the performance of the Services. Morris Communications and MSTAR Solutions, however, shall be entitled to obtain such Services
from a subsidiary or a third party. Morris Communications and MSTAR Solutions agree not to obtain Services from a third party without the consent of Morris Publishing, such consent not to be unreasonably withheld. Morris Communications or MSTAR
Solutions, as appropriate, shall bear all out-of-pocket costs and expenses associated with obtaining Services from a third party (“Third Party Costs”). 
  
 1.4 Records. Morris Communications and MSTAR Solutions shall, at all times, keep proper books of account and
records relating to the Services performed hereunder and expenses 

  

 
related thereto, which books of account and records shall be accessible for inspection by Morris Publishing at any time during normal business hours.

  
 ARTICLE 2 
 FEE AND PAYMENT TERMS 
  
 2.1 Fee. 
  
 (a) The fee payable by Morris Publishing to Morris Communications (“Morris Communications’ Fee”) shall be the greater of:

  

	 	(i)	an amount equal to four percent (4%) of Morris Publishing’s annual total operating revenues; and 

  

	 	(ii)	the amount of actual annual expenses allocated by Morris Communications for the Services provided by Morris Communications in the management of Morris Publishing’s business,
including any Third Party Costs (such allocation to be based upon the time and resources spent by Morris Communications on the management of Morris Publishings’ business). 

  
 (b) The fee payable by Morris Publishing to MSTAR Solutions
(“MSTAR Solutions Fee”) shall be Morris Publishings’ allocable share (based upon usage) of the actual annual costs of operations of MSTAR Solutions, including Third Party Costs, as allocated by Morris Communications. 
  
 (c) Collectively, the Morris Communications’ Fee and
the MSTAR Solutions’ Fee are referred to as the Fee. 
  
 (d) Morris Publishing shall share its home office facilities in Augusta, Georgia with Morris Communications. 
  
 2.2 Payment. The Fee will be paid to the respective parties in arrears as follows: 
  
 (a) Monthly Invoices. 
  

	 	(i)	 Within fifteen (15) days after the end of each calendar month (with appropriate pro-rata adjustments in the payment made to account for any partial months) during
the Term, Morris Publishing shall pay Morris Communications one-twelfth (1/12) of four percent (4%) of its budgeted total operating revenues for the fiscal year. As soon as practical after the end of each fiscal year, Morris Publishing shall provide
Morris Communications with a statement of its actual total operating revenues and, if appropriate, pay Morris Communications the short-fall in the Morris Communications’ Fee between budgeted and actual total operating 

  

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revenues. If budgeted total operating revenues exceed actual total operating revenues for any fiscal year, Morris Communications shall credit Morris
Publishing as appropriate against future Morris Communications’ Fee payments. 

  

	 	(ii)	Within fifteen (15) days after the end of each calendar month (with appropriate pro-rata adjustments in the payment made to account for any partial months) during the Term, Morris
Publishing shall pay MSTAR Solutions one-twelfth (1/12) of its allocable share of the budgeted total annual costs of operations of MSTAR Solutions, as allocated by Morris Communications. As soon as practical after the end of each fiscal year, MSTAR
Solutions shall provide Morris Publishing with a statement of its actual total costs of operations along with Morris Publishings allocable share and, if appropriate, Morris Publishing shall pay MSTAR Solutions the short-fall between budgeted and
actual total operating costs. If Morris Publishing’s allocable share of the budgeted total operating costs exceeds its allocable share of the actual total operating costs for any fiscal year, MSTAR Solutions shall credit Morris Publishing as
appropriate against future MSTAR Solutions’ Fee payments. 

  
 (b) Other Documents. Morris Communications and MSTAR Solutions, as appropriate, shall provide to Morris Publishing upon reasonable request any reports or summaries verifying the allocations and amounts of the Fee and
any information relating to the Fee which Morris Publishing may need for preparing financial statements, tax returns or otherwise. 
  
 (c) Access. Morris Publishing shall provide Morris Communications and MSTAR Solutions with reasonable access during normal business hours
to its books and records relating to the Fee. 
  
 2.3
Taxes. Any transaction, excise, sales or other tax imposed on or measured by the rendering of a Service shall be the responsibility of Morris Publishing. 
  
 ARTICLE 3 
 TERM AND TERMINATION 
  
 3.1 Term.
The term (“Term”) of this Agreement shall commence on the date first written above and shall continue until the earlier of: 
  
 (a) Morris Publishing may terminate this Agreement as to the appropriate party if: 
  

	 	(i)	 Morris Communications or MSTAR Solutions materially breaches this Agreement and fails to cure the breach within twenty (20) days of receipt of written notice of the
breach (or, if the breach is not susceptible to cure within twenty (20) days, if Morris Communications or MSTAR Solutions, as appropriate, fails to cure 

  

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the breach as promptly as possible, but in any event, within sixty (60) days of the written notice); 

  

	 	(ii)	Morris Communications or MSTAR Solutions engages in any act of gross negligence, dishonesty, willful malfeasance or gross misconduct that is materially injurious to Morris
Publishing; 

  

	 	(iii)	any lender consummates foreclosure proceedings against Morris Communications or MSTAR Solutions following default under any loan agreement; 

  

	 	(iv)	Morris Communications or MSTAR Solutions is unable to pay its debts as such debts become due; 

  

	 	(v)	Morris Publishing is no longer controlled directly or indirectly by Morris Communications; or 

  

	 	(vi)	At the end of ten (10) years. 

  
 (b) Morris Communications and/or MSTAR Solutions may terminate this Agreement if, as to the terminating party: 
  

	 	(i)	Morris Publishing materially breaches this Agreement and fails to cure the breach within twenty (20) days of receipt of written notice of the breach (or, if the breach is not
susceptible to cure within twenty (20) days, if Morris Publishing fails to cure the breach as promptly as possible, but in any event, within sixty (60) days of the written notice); 

  

	 	(ii)	Morris Publishing dissolves, liquidates, or experiences a Change in Control (“Change in Control” means the occurrence of the William S. Morris III family ceasing to own,
directly or indirectly, beneficially or of record, shares representing more than 50% of the aggregate ordinary voting power represented by the issued and outstanding capital stock of Morris Publishing. The “William S. Morris III Family”
includes William S. Morris, III, his spouse and descendants and spouses of his descendants, including any trusts for the benefit of such persons, and the estates of any such persons); or 

  

	 	(iii)	At the end of ten (10) years. 

  
 ARTICLE 4 
 LIABILITIES 
  
 4.1 Limitation of Liability; Consequential Damages. In
providing the Services, neither Morris Communications nor MSTAR Solutions shall have any liability hereunder except 

  

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(i) as provided in Section 4.2 or (ii) to the extent that such liability resulted from their or their employees or agents gross negligence or willful
misconduct. In addition, except (i) as provided in Section 4.2 or (ii) to the extent that such liability resulted from their or their employees or agents gross negligence or willful misconduct, neither Morris Communications nor MSTAR Solutions shall
be liable, whether in contract, in tort (including negligence and strict liability), or otherwise, for any special, indirect, incidental or consequential damages whatsoever (including, but not limited to, lost profits), which in any way arise out
of, relate to, or are a consequence of, its performance or nonperformance under this Agreement, or the provision of or failure to provide any Service under this Agreement. The liability of Morris Communications and MSTAR hereunder shall be several.

  
 4.2 Indemnity. 
  
 (a) Morris Communications agrees to indemnify and hold
harmless Morris Publishing, and its affiliates, their respective members, officers, directors, employees, successors and assigns and agents and each other person, if any, controlling Morris Publishing, or any of its affiliates (Morris Publishing and
each such other person being a “Morris Publishing Indemnified Person”) from and against any and all losses, claims, damages, liabilities and expenses (including, without limitation, reasonable fees and expenses of counsel) related to,
arising out of or in connection with the gross negligence or wilful misconduct of Morris Communications, its employees or agents, provided, however, Morris Communications shall not be responsible for any losses, claims, damages or liabilities (or
expenses relating thereto) that result directly and solely from the gross negligence or willful misconduct of any Morris Publishing Indemnified Person. 
  
 (b) MSTAR Solutions agrees to indemnify and hold harmless each Morris Publishing Indemnified Person from and against any and all losses,
claims, damages, liabilities and expenses (including, without limitation, reasonable fees and expenses of counsel) related to, arising out of or in connection with the gross negligence of willful misconduct of MSTAR Solutions, its employees or
agents, provided, however, MSTAR Solutions shall not be responsible for any losses, claims, damages or liabilities (or expenses relating thereto) that result directly and solely from the gross negligence or willful misconduct of any Morris
Publishing Indemnified Person. 
  
 (c) Morris
Publishing hereby agrees to indemnify and hold harmless Morris Communications and MSTAR Solutions, their respective affiliates, and their respective members, officers, directors, employees, successors and assigns and agents and each other person, if
any, controlling Morris Communications, MSTAR Solutions or any of their respective affiliates from and against any and all losses, claims, damages or expenses of counsel) that result directly and solely from the gross negligence or willful
misconduct of Morris Publishing, its employees or agents, in connection with the Services provided pursuant to this Agreement. 
  

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 4.3 Indemnification Procedures. The party making a claim under this Article 4 is referred
to as the “Indemnified Party” and the party against whom such claims are asserted under this Article 4 is referred to as the “Indemnifying Party”. All claims by any Indemnified Party under this Article 4 shall be asserted and
resolved as follows: 
  
 (a) In the event that
any claim or demand for which an Indemnifying Party would be liable to an Indemnified Party hereunder is asserted against or sought to be collected from such Indemnified Party by a third party, said Indemnified Party shall with reasonable promptness
notify in writing the Indemnifying Party of such claim or demand, specifying the basis for such claim or demand, and the amount or the estimated amount thereof to the extent then determinable (which estimate shall not be conclusive of the final
amount of such claim and demand) (the “Claim Notice”); provided, however, that any failure to give such Claim Notice will not be deemed a waiver of any rights of the Indemnified Party except to the extent the rights of the Indemnifying
Party are actually prejudiced by such failure. The Indemnifying Party shall have the right to control the defense of such claim or demand and shall retain counsel (who shall be reasonably acceptable to the Indemnified Party) to represent the
Indemnified Party and shall pay the reasonable fees and disbursements of such counsel with regard thereto; provided, however, that any Indemnified Party is hereby authorized prior to the date on which it receives written notice from the Indemnifying
Party designating such counsel, to retain counsel, whose fees and expenses shall be at the expense of the Indemnifying Party, to file any motion, answer or other pleading and take such other action which it reasonably deems necessary to protect its
interests or those of the Indemnifying Party until the date on which the Indemnified Party receives such notice from the Indemnifying Party. After the Indemnifying Party shall retain such counsel, the Indemnified Party shall have the right to retain
its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party. The Indemnifying Party shall not, in connection with any proceedings or related proceedings in the same jurisdiction, be liable for the
fees and expenses of more than one counsel for the Indemnified Party (except to the extent the Indemnified Party retained counsel to protect its (or the Indemnifying Party’s) rights prior to the selection of counsel by the Indemnifying Party).
If requested by the Indemnifying Party, the Indemnified Party agrees to cooperate with the Indemnifying Party and its counsel in contesting any claim or demand which the Indemnifying Party defends. A claim or demand may not be settled by the
Indemnifying Party without the prior written consent of the Indemnified Party (which consent will not be unreasonably withheld) unless, as part of such settlement, the Indemnified Party shall receive a full and unconditional release reasonably
satisfactory to the Indemnified Party. If the Indemnifying Party elects to defend a claim or demand, the Indemnified Party shall not pay or settle such claim or demand without the consent of the Indemnifying Party. In each instance, the Indemnified
Party and its representatives shall have the right to be kept fully informed by the Indemnifying Party and its legal counsel with respect to any legal proceedings. 
  
 (b) In the event any Indemnified Party shall have a claim against any Indemnifying Party hereunder which
does not involve a claim or demand being asserted against or sought to be collected from it by a third party, the Indemnified Party shall send a Claim Notice with respect to such claim to the Indemnifying Party. 
  
 ARTICLE 5 
 MISCELLANEOUS 
  
 5.1 Successors and Assigns. This Agreement may not be assigned by Morris Communications, MSTAR Solutions or Morris Publishing without the prior written consent of the other parties, except as provided in
Section 1.3 with respect to Morris Communications’ and MSTAR Solutions’ ability to retain third parties to provide Services and except that either 

  

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Morris Communications, MSTAR or Morris Publishing may assign its right and obligations hereunder to one of its wholly-owned subsidiaries, and except neither
Morris Communications nor MSTAR Solutions will object to an assignment by the other. Except as expressly allowed hereunder, any attempt to assign any rights or obligations arising under this Agreement without such prior written consent in violation
hereof shall be null and void. 
  
 5.2 Governing
Law. The construction, validity and enforceability of this Agreement shall be governed by the laws of the State of Georgia, without regard to its conflicts of laws principles. 
  
 5.3 Notices. All notices, requests and other communications hereunder must be in writing and will be deemed to
have been duly given only if delivered personally or mailed (first class postage prepaid) to the parties at the following addresses: 
  

	 	(a)	If to Morris Communications: 

  
 Morris Communications Company, LLC 
 725 Broad
Street 
 Augusta, GA 30901 
 Attn: Craig Mitchell 
 Telephone: (706) 724-0851 
 Telecopy: (706) 722-7125 
  

	 	(b)	If to Morris Publishing: 

  
 Morris Publishing Group, LLC 
 725 Broad
Street 
 Augusta, GA 30901 
 Attn: Craig Mitchell 
 Telephone: (706) 724-0851 
 Telecopy: (706) 722-7125 
  

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	 	(c)	If to MSTAR Solutions: 

  
 MSTAR Solutions, LLC 
 725 Broad Street

 Augusta, GA 30901 
 Attn: Steve
Stone 
 Telephone: (706) 724-0851 
 Telecopy: (706) 722-7125 
  
 all such notices, requests and other
communications will (i) if delivered personally to the address as provided in this Section, be deemed given upon delivery and (ii) if delivered by mail in the manner described above to the address as provided in this Section, be deemed given upon
receipt (in each case regardless of whether such notice, request or other communication is received by any other person to whom a copy of such notice is to be delivered pursuant to this Section). Any party from time to time may change its address,
facsimile number or other information for the purpose of notices to that party by giving notice specifying such change to the other parties hereto. 
  
 5.4. No Waiver. The failure of either party at any time to require performance by the other party of any provision of this Agreement shall
in no way affect the right of such party to require performance of that provision. Any waiver by either party of any breach of any provision of this Agreement shall not be construed as a waiver of any continuing or succeeding breach of such
provision, a waiver of the provision itself or a waiver of any right under this Agreement. 
  
 5.5. Severability. All provisions of this Agreement are severable and any provision which is prohibited by law shall be ineffective only to the extent of such prohibition without invalidating the
remaining provisions of this Agreement. 
  
 5.6. Entire
Agreement; Modifications and Amendments. This Agreement (including the Schedule hereto) and any other agreements executed and delivered by the parties contemporaneously herewith constitute the entire agreement between the parties concerning
the subject matter thereof and supersedes all prior agreements and understandings, both oral or written, between the parties with respect to the subject matter hereof. 
  
 5.7. Independent Contractor Status. Morris Communications and MSTAR Solutions shall each be deemed to be an
independent contractor to Morris Publishing. Nothing contained in this Agreement shall create or be deemed to create the relationship of employer and employee, and no party to this Agreement shall, by reason hereof, be deemed to be a partner or a
joint venturer of any other party hereto in the conduct of their respective businesses and/or the conduct of the activities contemplated by this Agreement. 
  
 5.8. Binding Effects; Benefits. This Agreement will be binding upon and inure to the benefit of the parties and their successors and
permitted assigns as detailed in Section 5.1. Nothing contained in this Agreement, express or implied, is intended to confer any rights or remedies upon any person other than the parties to this Agreement and their respective successors and
permitted assigns. 
  

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 5.9. Survival. In the event this Agreement is terminated, this Agreement shall become null
and void and of no further force and effect, except the Fee shall be due through the effective date of the termination and the provisions of Article 4 shall survive. 
  
 5.10. Section Headings. The section headings contained in this Agreement are for reference purposes only and
shall not in any way control the meaning or interpretation of this Agreement. 
  
 5.11. Force Majeure. Morris Communications and MSTAR Solutions shall be excused from performing the Services under this Agreement and shall have no liability to Morris Publishing for any period they are
prevented from performing the Services, in whole or in part, as a result of delays caused by an act of God, war, terrorism, civil disturbance, court order, labor dispute, machinery breakdown or other cause beyond its reasonable control, including
failures or fluctuations in electrical power or telecommunications (the “Force Majeure Period”) or, in the event that Morris Communications or MSTAR Solutions obtains any Services from a third party, the failure of such third party to
provide such Services, or the misconduct or negligence of such party in providing such Services. In the event the Force Majeure Period continues for six (6) consecutive months, either party may terminate this Agreement on written notice given by the
terminating party at least five (5) days prior to the proposed termination date. 
  
 5.12. Counterparts. This Agreement may be executed in separate counterparts, each of which so executed and delivered shall constitute an original, but all such counterparts shall together constitute one
and the same instrument. 
  
 IN WITNESS WHEREOF, the parties have
executed this Agreement as of the date first above written. 
  

			
	MORRIS COMMUNICATIONS COMPANY, LLC, a Georgia limited liability company
		
	By:	 	 
	 	 	

	 Print Name:
	 	 
	 	 	

	 Title:
	 	 
	 	 	

  
 (Signatures
continue on next page) 
  

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	MORRIS PUBLISHING GROUP, LLC, a, Georgia limited liability company
		
	By:	 	 
	 	 	

	 Print Name:
	 	 
	 	 	

	 Title:
	 	 
	 	 	

  

			
	MSTAR SOLUTIONS, LLC, a, Georgia limited liability company
		
	By:	 	 
	 	 	

	 Print Name:
	 	 
	 	 	

	 Title:
	 	 
	 	 	

  

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 SCHEDULE 1.1 
  
 SERVICES 
  
 MORRIS COMMUNICATIONS SERVICES: 
  

	1.	Senior Executive Management Services. Provide senior executive management services and personnel (including the services of Williams S. Morris III, William S. Morris IV, Susie M.
Baker and Craig S. Mitchell for so long as they are employed by Morris Communications). 

  

	2.	Corporate Accounting. Provide or assist in providing accounting services relating to corporate accounting, cash accounting, intra unit and inter company accounting, consolidation
and reporting. 

  

	3.	Finance and Treasury Support. Provide or assist in providing finance and treasury support services, including, but not limited to, cash management, accounts payable, general ledger,
payroll services, tax return preparation and payment and corporate insurance administration. 

  

	4.	Tax. Provide or assist in providing tax support and preparation services and support. 

  

	5.	Merger and Acquisition. Provide or assist in providing assistance regarding mergers and acquisitions. 

  

	6.	Aircraft. Provide or assist in providing the services of corporate aircraft, on an as-available basis. 

  

	7.	Corporate Communications. Provide or assist in providing corporate communications and public relations. 

  

	8.	Legal. Provide or assist in providing legal services. 

  

	9.	Risk Management. Provide or assist in providing risk management services. 

  

	10.	Human Resources/Personnel. Provide or assist in providing human resources/personnel services. 

  

	11.	Employee Benefits. Provide or assist in providing services related to Morris Publishing’s employee benefits, including, but not limited to, pension, 401(k), medical, life and
long-term disability insurance and supplemental pension plan. 

  

	12.	Internal and External Auditing. Provide or assist in providing internal and external auditing services. 

  

	13.	Architectural/Engineering. Provide or assist in providing architectural/engineering services. 

  

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	14.	Real Estate. Provide or assist in providing real estate development and maintenance services. 

  

	15.	Online Services. Provide or assist in providing online hosting, development, maintenance and technical support. 

  
 MSTAR SOLUTIONS SERVICES: 
  
 The following services will be implemented over time in phases as agreed upon between MSTAR
Solutions and Morris Publishing: 
  

	1.	Administration. Provide Project Management Support Services as Morris Publishing Group, LLC migrates to a shared services environment. 

  

	2.	Order to Cash. The O2C process interconnects multiple functions across the entire business, from advertising sales and subscriber management through finance and
administration. The O2C process provides order management, credit analysis and approval, invoice and billing, cash collections, dispute resolution, cash application, and financial analysis and reporting. These activities span and impact multiple
areas of the business, yet are managed as a single, integrated process through MSTAR Solutions. 

  

	3.	Record to Report. The R2R process will manage financial transactions posted through the general ledger, reconcile general ledger accounts to ensure proper accounting
treatment of transactions and close the books while providing financial reporting tools to assist in operations management. R2R will integrate with the consolidating reporting tool for internal and external financial reporting, and provide timely
information as required to publishers and business managers to address financial and operational queries and issues. The R2R process will implement segregation of duties and other internal control procedures according to corporate accounting
policies. Fixed asset services will include property tax and insurance value accounting, recording depreciation and fixed asset retirement. 

  

	4.	Procure to Pay. The Procure to Pay process includes the ordering of goods and services, the receipt of ordered products, and extends to invoice processing and payment. The
team processes invoices, generates checks or provides for check printing for payment to vendors, and works with departments and vendors to resolve discrepancies and disputes. Check payment and 1099 processing services typically will be outsourced,
which Morris Publishing hereby consents to. 

  

	5.	Strategic Sourcing. Purchasing Agents work directly with vendors to negotiate fair and reasonable contracts for quality goods and services utilized by the newspapers through
leveraging Morris Publishing’s consolidated spend. Strategic Sourcing makes available to the newspapers a purchasing consortium with significantly reduced prices for newsprint and business travel. 

  

	6.	 Human Resources/Payroll. The HR/Payroll process provides for employee time collection at each newspaper. Processes provide for the preparation of all
payrolls, 

  

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payroll tax deposits, reports and necessary accounting. Services include the preparation or provision of direct deposit for newspaper employees. HR/Payroll
records payroll expense data into the accounting system, including payroll and payroll tax accruals, and provides quarterly and year-end payroll tax processing including W-2, 941, 940 and State tax reports. 

  

	7.	Customer Services. The Customer Service Call Center: 

  
 The center will handle all customer inquiries regarding subscription delivery, vacation stop and start, new subscription starts, and billing inquiries.
The center will be operational 7 days a week, providing service to the subscribers of Morris newspapers. 
  

	8.	Management Information Services. Provide or assist in providing management information services through a Business Intelligence platform. 

  

	9.	Technology Services. Provide or assist in providing technology services through ITSM and ITIL based processes, which are ISO9003 compliant, including:

  
 Installing and maintaining base infrastructure
including LAN, WAN, email, and Internet access. Centralized processing of industry specific applications, such as PBS and DTI and general financial applications, such as SAP and Clarus. Establishing, distributing, monitoring, and supporting a common
operating environment for all desktops and servers. Providing local desktop support for all newspapers. Project management services on all major technology initiatives. Application and infrastructure support services through a fully staffed support
desk. Software and hardware installation, support, and training on all desktops, laptops, servers and networking equipment. Software and hardware installation, support, and training on all PBX and related phone equipment. 
  

 13Tax Consolidation Agreement

 Exhibit 10.3 
  
 TAX CONSOLIDATION AGREEMENT 
 OF MORRIS PUBLISHING GROUP, LLC 
  
 TAX CONSOLIDATION AGREEMENT dated with an effective date of August 7, 2003 between MORRIS PUBLISHING GROUP, LLC, a Georgia limited liability company (the “Company”), MORRIS COMMUNICATIONS COMPANY, LLC, a Georgia limited liability
company (“Morris”) and SHIVERS TRADING & OPERATING COMPANY, a Georgia corporation (“Shivers”). 
  
 The Company and Morris are disregarded entities for federal tax purposes and, thus, are treated as part of Shivers. 
  
 Shivers is (and will continue to be for the remainder of 2003) a member of an
affiliated group of corporations (collectively, the “Group”) as defined in Section l504 of the Internal Revenue Code of l986 (as amended, the “Code”), of which Shivers is the common parent, and files consolidated federal income
tax returns pursuant to Treas. Reg. §1.1502-75(a)(2). In addition, the Company, Morris and Shivers (together with subsidiaries of the Company, Morris and Shivers) may be eligible to file consolidated or combined state or local income or
franchise tax returns and may wish to file consolidated or combined state or local income or franchise tax returns. 
  
 The Company is a wholly owned subsidiary of Morris. Morris and Shivers entered into an Amended and Restated Tax Consolidation Agreement with an effective
date of August 7, 2003 whereby Shivers files consolidated tax returns for the Group. Shivers will continue to file consolidated returns and will include all items of income or loss of the Company as part of Shivers’ returns, but will not treat
the Company as a separate member of the Group. For purposes of this Agreement, a return (including a return with respect to other tax liabilities of the Group, such as employment, excise, sales taxes) in which Shivers includes on Shivers’
return all items of income, loss or other activities of the Company (as a disregarded entity) shall be treated as a consolidated return. 
  
 Shivers, Morris and the Company desire to allocate among themselves the benefits and burdens which arise from filing of consolidated federal tax returns
and which may arise from filing of consolidated or combined state and local tax returns, as if each entity was treated as a corporation taxed under Subchapter C of the Code. 
  
 The Company has issued $250,000, 000.00 of senior subordinated debt under an indenture dated August 7, 2003 executed by and
between the Company and Wachovia Bank, National Association, as trustee (“Trustee”). It is a condition precedent to the making of the indenture that Shivers, Morris and the Company enter into this Agreement. 
  

 Accordingly, Shivers, Morris and the Company hereby agree as follows: 
  
 Section 1. Tax Allocations. 
  
 1.01 Consolidated Tax Returns. Shivers will file a consolidated
federal income tax return for all taxable periods for which the Group is permitted to file such a return. Shivers, Morris and the Company agree (and agree to cause their respective subsidiaries) to file such consents, elections and other documents
and to take such other action as may be necessary or appropriate to carry out the purposes of this Section 1.01. 
  
 1.02 Payment of Tax Liability. Shivers will timely pay the Group’s federal tax liability. For each period during which the Company’s tax
items are included in a consolidated federal tax return with Shivers, the Company shall pay to Morris an amount equal to the federal income tax liability that the Company would pay (taking into account net operating loss carry forwards and carry
backs) if it were filing its federal tax returns separately as a C corporation for that period and had filed separate tax returns for all other periods (including, without limitation, for all periods prior to the date hereof). In computing its
federal income taxes, the Company shall assume that Shivers has made on its behalf elections and taken deductions and credits and adopted methods of reporting income and expense that (i) Shivers is permitted to make, take or adopt under the Code and
(ii) minimize the separate liability, or increase any refunds, of the Company. 
  
 1.03 Estimated Taxes. Payments due pursuant to Section 1.02 hereof shall be made on an estimated basis, such estimates being calculated, to the extent not inconsistent with said Section 1.02, in accordance with
conventions used by Shivers to compute its estimated tax (or, with respect to the first fiscal quarter of each fiscal year of the Company, at the Company’s option, on a three-month annualized basis, whether or not the estimated payment of
Shivers for the corresponding period is based upon such convention). Estimated payments shall be made prior to the due date of the corresponding estimated payments of Shivers. Shivers shall calculate the amount payable by the Company pursuant to
this Section 1.03 and shall provide the Company and Morris with notice of any payments prior to the due date therefor. The difference, if any, between the liability of the Company for any taxable period, computed in accordance with Section 1.02
hereof, and the estimated payments made by the Company to Morris pursuant to this Section 1.03 shall be payable by or refundable to the Company and Morris prior to the date of filing of the consolidated federal income tax returns of the Group for
the taxable period. Shivers shall calculate such amount and, if any amount is payable by the Company, shall provide the Company and Morris with notice of the amount due prior to the due date therefor and the Company shall make such payment to
Morris. If such amount is payable to the Company, Shivers shall pay Morris, and Morris shall pay the Company, such amounts. 
  
 1.04 Refunds. If on the basis of the computation made by the Company in accordance with Section 1.02 hereof, the Company would have been entitled
to a refund of federal taxes, Shivers shall pay Morris and Morris shall pay the Company the amount of that refund at the time that, if a refund has been applied for, the Internal Revenue Service makes the refund and, if a refund has not been applied
for, at the time the Internal Revenue Service would have made the refund if it had been timely applied for. For example, if the Company has a net operating loss that, on a separate return basis, it could carry back and be entitled to a refund,
Shivers shall pay Morris and Morris shall pay the Company the amount of the refund even if no refund was actually 

  

 
received from the Internal Revenue Service because the net operating loss was used against income of Shivers or because no taxes were paid in a prior year
because of losses of Shivers. Conversely, if the Company has a net operating loss that, on a separate return basis, it could not carry back but would have to carry forward, it shall not be entitled to a refund until it could, on a separate basis,
use the carry forward even if, as a result of Shivers’ income the Group in fact carried back the loss and obtained a refund. Notwithstanding the foregoing, the Company shall not be entitled to any refund in excess of the amounts it has paid
pursuant to Section 1.02 hereof, as redetermined pursuant to Section 1.05 hereof. The payments and refunds of such amounts shall be treated analogously to the treatment in Sections 1.02 through 1.04 hereof. 
  
 1.05 Redeterminations. In the event of any adjustment to the tax
return of the Group as filed (by reason of an amended return, claim for refund or an audit by the Internal Revenue Service), the liability of Shivers and the Company shall be redetermined to give effect to any such adjustment as if it had been made
as part of the original computation of tax liability. Payments between Shivers, Morris and the Company shall be made to reflect the results of this redetermination. The payments shall be made promptly before any corresponding payments to the
Internal Revenue Service or promptly after the receipt of any refund from the Internal Revenue Service. Any payments shall include interest and penalties equal to the amount actually paid to, or received from, the Internal Revenue Service with
respect to the redetermination of tax liabilities. Shivers shall calculate the amounts of any payments and shall give Morris and the Company at least 10 days’ notice of any amounts payable by the Company. 
  
 1.06 State and Local Taxes. If Shivers, any affiliate of Shivers
(other than the Company and the subsidiaries of the Company) or the Company, or any of them, are eligible, but not required, to file consolidated or combined state or local income, franchise or other tax returns, Shivers shall determine, in its sole
discretion, whether to file any such return. If Shivers, any affiliate of Shivers (other than the Company and the subsidiaries of the Company) or the Company, or any of them, file consolidated or combined state or local tax returns, the Company
shall pay to Morris amounts equal to the amount of state or local tax that the Company would pay as a separate corporation. Shivers shall pay to Morris and Morris shall pay to the Company the amount of any refunds the Company would have received
from any state or local authority were it a separate corporation. The computations of such amounts, their payments, any refunds, all elections, and any adjustments shall be treated analogously to the treatment of federal taxes in Sections 1.02
through 1.05 hereof. 
  
 1.07 Indemnification. Shivers
shall indemnify the Company for any federal, state or local tax liability of Shivers or any affiliate of Shivers other than the Company, whether imposed pursuant to Treas. Reg. §1.1502-6, any state or local counterparts to that provision or
otherwise. Any indemnification payments are to be made on an after-tax basis, within 10 days of the Company’s notifying Shivers of its liability. 
  
 1.08 Information. The Company shall provide Shivers with any information Shivers may need in connection with Shivers’ federal tax return and
with any state or local tax consolidated or combined returns. Shivers shall prepare, or have prepared at its expense, the federal consolidated income tax return and any state or local consolidated or combined income or 

  

 
franchise tax returns. Shivers, Morris and the Company shall cooperate with each other in the preparation of all federal, state or local income tax returns.

  
 1.09 Audits. Shivers shall act as the Company’s
agent in the event of any audit of Shivers’ federal consolidated tax return and any state or local consolidated or combined tax returns and in any administrative or judicial proceedings with respect to such returns. Shivers, Morris and the
Company shall cooperate with each other in such audits, administrative or judicial proceedings. 
  
 1.10 Participation in Proceedings. Shivers shall inform Morris and the Company of any audits, administrative or judicial proceedings that may
affect the Company’s tax liability. The Company shall have the right, at its own expense, to participate in such proceedings as to issues that affect the Company’s tax liability or that may affect the Company’s tax liability in future
years. Shivers shall not settle any such issues without the Company’s consent, which consent may not unreasonably be withheld. 
  
 Section 2. Representations and Warranties. Each of Shivers, Morris and the Company (each being herein called an “Obligor”) represents and
warrants to the other that: 
  
 2.01 Corporate Existence.
Shivers is a corporation and Morris and the Company are limited liability companies, in each case duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, and each has all requisite corporate or
other power, and has all material governmental licenses, authorization, consents and approvals necessary to own its assets and carry on its business as now being or as proposed to be conducted. 
  
 2.02 No Breach. None of the execution and delivery of this Agreement,
the consummation of the transactions herein contemplated or compliance with the terms and provisions hereof will conflict with or result in a breach of, or require any consent under, the charter, by-laws or operating agreement of such Obligor or any
of its subsidiaries, or any applicable law or regulation, or any order, writ, injunction or decree of any court or governmental authority or agency, or any agreement or instrument to which such Obligor or any of its subsidiaries is a party or by
which they are bound or to which they are subject, or constitute a default under any such agreement or instrument, or result in the creation or imposition of any lien upon any property of such Obligor or any of its subsidiaries pursuant to the terms
of any such agreement or instrument. 
  
 2.03 Corporate
Action. Such Obligor has all necessary corporate or limited liability company power, authority and legal right to execute, deliver and perform its obligations under this Agreement; the execution, delivery and performance by such Obligor of this
Agreement has been duly authorized by all necessary corporate or limited liability company action on its part (including, without limitation, any required shareholder or member approvals); and this Agreement has been duly and validly executed and
delivered by such Obligor and constitutes its legal, valid and binding obligation, enforceable 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). 
  
 2.04 Approvals. No authorizations, approvals or consents of, and no filings or registrations with, any governmental or regulatory authority or agency are necessary for the execution, delivery or performance by
such Obligor of this Agreement or for the validity or enforceability hereof. 
  
 Section 3. Third Party Beneficiaries. Each of Shivers, Morris and the Company, for itself and its successors, covenants and agrees that the provisions of this Agreement are for the benefit, inter
alia, of the Trustee and bondholders under the indenture and their respective successors and assigns; and the Trustee and bondholders are hereby made an obligee hereunder and any one of them may enforce the provisions of this Agreement.

  
 Section 4. Miscellaneous. 
  
 4.01 No Impairment. No right, power or remedy of any Trustee or
bondholder hereunder shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Company or Shivers. 
  
 4.02 Governing Law. This Agreement shall be governed by, and construed in accordance with, the law of the State of Georgia. 
  
 4.03 Waivers, Etc. The terms of this Agreement may be waived, altered
or amended only by an instrument in writing duly executed by Shivers, Morris and the Company so long as such amendments do not disadvantage the bondholders in any material way with respect to the original indenture as in effect on the issue date and
otherwise only with the consent of the Trustee. Any such amendment or waiver shall be binding upon Shivers, Morris, the Company, the Trustee and each bondholder. 
  
 4.04 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the respective
successors and assigns of Shivers, Morris, the Company, the Trustee and the bondholders. 
  
 4.05 Counterparts. This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument; and either of the parties hereto may execute this
Agreement by signing any such counterpart. 
  
 4.06
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 Company and the Trustee and the bondholders 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. 
  

 IN WITNESS WHEREOF, the parties hereto have caused this Tax Consolidation Agreement to be duly executed
and delivered as of the day and year first above written. 
  

					
	MORRIS PUBLISHING GROUP, LLC
		
	By	 	 
	 	 	

	 	 	 As its
	 	 
	 	 	 	 	

	 	 	 	 	 
	
	SHIVERS TRADING & OPERATING COMPANY
		
	By	 	 
	 	 	

	 	 	 As its
	 	 
	 	 	 	 	

	 	 	 	 	 
	
	MORRIS COMMUNICATIONS COMPANY, LLC
		
	By	 	 
	 	 	

	 	 	 As its

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