Document:

exh10-1.htm

    
      

    

    Exhibit
      10.1

    Second
      Amended and Restated

    ICO,
      Inc.

    2007
      Equity Incentive Plan

    

    

    ARTICLE
      1

    Objectives

    

    This
      Second Amended and Restated ICO, Inc. 2007 Equity Incentive Plan (formerly
      known
      as the ICO, Inc. 1998 Stock Option Plan) is intended to advance the interests
      of
      the Company, its shareholders, and its subsidiaries by encouraging and enabling
      selected key employees of the Company, upon whose judgment, initiative and
      effort the Company is largely dependent for the successful conduct of its
      business, to acquire and/or increase and retain a proprietary interest in the
      Company by ownership of its stock.

    

    ARTICLE
      2

    Definitions

    

    
      	
              2.1

            	
              For
                purposes of the Plan the following terms shall have the definition
                that is
                attributed to them, unless another definition is clearly indicated
                by a
                particular usage and context.

            

    

    

    
      	
               

            	
              (a)

            	
              “Affiliates”
                means, except to the extent otherwise not permitted under Code Section
                424(f), any one or more corporations which are members of a
                “parent-subsidiary controlled group” as such term is defined in Code
                Section 1563(a)(1), except that “at least 50 percent” shall be
                substituted for “at least 80 percent” each place it appears in Code
                Section 1563(a)(1).

            

    

    

    
      	
               

            	
              (b)

            	
              “Award”
                means any form of award authorized and granted under the Plan, whether
                singly or in combination, pursuant to such terms, conditions, restrictions
                and/or limitations (if any) as the Committee may
                establish.  Awards granted under the Plan may
                include:

            

    

    

    (i)           Options;
      and

     

    (ii)           Restricted
      Shares.

     

    
      	
               

            	
              (c)

            	
              “Award
                Agreement” means an agreement between a Participant and ICO, Inc.
                evidencing an Award.

            

    

    

    
      	
               

            	
              (d)

            	
              “Change
                of Control” has the meaning ascribed to it in Section
                10.3.

            

    

    

    
      	
               

            	
              (e)

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

            

    

    

    
      	
               

            	
              (f)

            	
              “Committee”
                means the Compensation Committee, or such other committee comprised
                solely
                of “non-employee directors,” as defined in Rule 16b-3(b)(3), as designated
                by the

            

    

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    Board
      of
      Directors, vested with authority for administration of the Plan by the
      Board.  The Committee shall be comprised solely of two (2) or more
      outside directors (within the meaning of the term “outside directors” as used in
      Code Section 162(m) and applicable interpretive authority thereunder, and within
      the meaning of “Nonemployee Director” as defined in Rule 16b-3, as
      currently in effect or as hereinafter modified or amended).

    

    
      	
               

            	
              (g)

            	
              The
                “Company” means ICO, Inc. and any Affiliate of
                ICO.

            

    

    

    
      	
               

            	
              (h)

            	
              “Date
                of Exercise” means the date on which the Company has received a
                written notice of exercise of an Option, in such form as is acceptable
                to
                the Company, and full payment of the purchase
                price.

            

    

    

    
      	
               

            	
              (i)

            	
              “Date
                of Grant” means the date when the grant of an Award is effective,
                which shall be designated by the Committee at the time it makes an
                Award,
                and shall be either the date when the Award is made or a date in
                the
                future specified by the Committee.

            

    

    

    
      	
               

            	
              (j)

            	
              “Effective
                Date” means January 25, 2007.

            

    

    

    
      	
               

            	
              (k)

            	
              “Eligible
                Employee” means any individual employed by the Company who performs
                services for the Company and is treated as an employee for federal
                income
                tax purposes either in the U.S. or in another country where such
                individual is employed  or is otherwise
                taxable.  Eligible Employees include individuals employed by the
                Company and on foreign assignment or working for the Company in a
                business
                unit that is located outside of such individual’s country of
                citizenship.

            

    

    

    
      	
               

            	
              (l)

            	
              The
                “Fair Market Value” of a Share on a specified date means the last
                sale price reported on the NASDAQ Global MarketTM  (the “NASDAQ”)
                on the specified date, or if Shares are no longer traded on the NASDAQ,
                the last sales price reported on any other stock exchange or
                over-the-counter trading system on which Shares are trading on the
                specified date.  If no sale has been made on a specified date,
                then the Fair Market Value of the Shares on that date shall mean
                the last
                sales price on the last preceding day on which any sales of Shares
                were
                made on the NASDAQ or other applicable stock exchange or over-the-counter
                trading system.

            

    

    

    
      	
               

            	
              (m)

            	
              “Incentive
                Stock Option” shall have the same meaning as given to that term by
                Section 422 of the Code.

            

    

    

    
      	
               

            	
              (n)

            	
              “Nonqualified
                Stock Option” means any Option granted under the Plan that is not
                considered an Incentive Stock
                Option.

            

    

    

    
      	
               

            	
              (o)

            	
              “Option”
                means the right to purchase a stated number of Shares at a specified
                price.  An Option may be granted to an Eligible Employee subject
                to the terms of this Plan, and such other conditions and restrictions
                as
                the Committee deems appropriate.  Each Option
                shall

            

    

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    be
      designated by the Committee to be either an Incentive Stock Option or a
      Nonqualified Stock Option.

    

    
      	
               

            	
              (p)

            	
              “Option
                Expiration Date” is the last day of the term of an Option, i.e. the
                last date when an Option may be
                exercised.

            

    

    

    
      	
               

            	
              (q)

            	
              “Option
                Price” means the purchase price per Share subject to an Option and
                shall be fixed by the Committee, but shall not be less than 100%
                of the
                Fair Market Value of a Share on the Date of
                Grant.

            

    

    

    
      	
               

            	
              (r)

            	
              “Participant”
                means any Eligible Employee who is granted an Award under the
                Plan.

            

    

    

    
      	
               

            	
              (s)

            	
              “Performance
                Measures” has the meaning ascribed to it in Section
                3.3.

            

    

    

    
      	
               

            	
              (t)

            	
              “Performance
                Period” has the meaning ascribed to it in Section
                3.3.

            

    

    

    
      	
               

            	
              (u)

            	
              “Permanent
                Disability” means any medically determinable physical or mental
                impairment rendering an individual unable to engage in any substantial
                gainful activity, which disability can be expected to result in death
                or
                which has lasted or can be expected to last for a continuous period
                of not
                less than 12 months.

            

    

    

    
      	
               

            	
              (v)

            	
              “Plan”
                means this ICO, Inc. 2007 Equity Incentive Plan, which is a restatement
                of
                the previously adopted Fourth Amended and Restated ICO, Inc. 1998
                Stock
                Option Plan.

            

    

    

    
      	
               

            	
              (w)

            	
              “Restricted
                Period” has the meaning ascribed to it in Section
                7.1.

            

    

    

    
      	
               

            	
              (x)

            	
              An
                Award of “Restricted Shares” has the meaning ascribed to it in
                Section 7.1.

            

    

    

    
      	
               

            	
              (y)

            	
              Rule
                16b-3(b)(3) means Rule 16b-3 promulgated under the Securities
                Exchange Act of 1934.

            

    

    

    
      	
               

            	
              (z)

            	
              “Share”
                means one share of the common stock, no par value, of ICO,
                Inc.

            

    

    

    
      	
               

            	
              (aa)

            	
              “Termination
                of Employment” means the cessation of a Participant’s relationship as
                an employee of the Company for federal tax purposes in any jurisdiction
                where the individual is subject to federal income taxes as an employee
                of
                the Company.

            

    

    

    
      	
               

            	
              (bb)

            	
              “Vesting
                Period” means the continuous period of employment required for an
                Award of Options or Restricted Shares to become fully earned and
                exercisable.

            

    

    

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    ARTICLE
      3

    Administration

    

    
      	
              3.1

            	
              The
                Plan shall be administered by the Committee.  Actions shall be
                taken by a majority of the Committee
                members.

            

    

    

    
      	
              3.2

            	
              Except
                as specifically limited by the provisions of the Plan, the Committee
                in
                its discretion shall have the authority
                to:

            

    

    

    
      	
               

            	
              (a)

            	
              determine
                which Eligible Employees shall be granted
                Awards;

            

    

    

    
      	
               

            	
              (b)

            	
              determine
                the number of Shares which may be subject to each
                Award;

            

    

    

    
      	
               

            	
              (c)

            	
              for
                any Award that is an Option, determine the Option Price and the Option
                Expiration Date;

            

    

    

    
      	
               

            	
              (d)

            	
              determine
                the term and Vesting Period, if any, applicable to each Award of
                Options
                and Restricted Shares;

            

    

    

    
      	
               

            	
              (e)

            	
              for
                any Award that is an Option, determine whether each such Option is
                an
                Incentive Stock Option or Nonqualified Stock
                Option;

            

    

    

    
      	
               

            	
              (f)

            	
              for
                each Award, designate the Date of Grant of the Award, which must
                be on or
                after the date when a majority of the Committee members have specifically
                approved the material terms of the Award, and which Date of Grant
                cannot
                be retroactive;

            

    

    

    
      	
               

            	
              (g)

            	
              interpret
                the provisions of the Plan and decide all questions of fact arising
                in its
                application; and

            

    

    

    
      	
               

            	
              (h)

            	
              prescribe
                such rules and procedures for Plan administration as from time to
                time it
                may deem advisable.

            

    

    

    
      	
              3.3

            	
              An
                Award may be granted contingent upon the achievement of performance
                or
                other objectives (“Performance Measures”) during a specified period (the
                “Performance Period”).  Except as specifically limited by the
                provisions of the Plan, the Committee in its discretion shall have
                the
                authority to determine the Performance Period and Performance Measures,
                if
                any, applicable to an Award,
                and the Performance Period and Performance Measures applicable to
                the
                Award shall be set forth in the Award Agreement.  If an Award is
                subject to Performance Measures, the number of Options that vest,
                or the
                number of Restricted Shares earned, will be contingent on the degree
                to
                which the Performance Measures established at the time of the initial
                Award are satisfied or achieved, in the sole discretion of the
                Committee.  The Committee shall have the sole discretion to
                revise the Performance Measures or Performance Period to reflect
                significant events or changes that occurred during the Performance
                Period.

            

    

    

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    
      	
              3.4

            	
              Any
                action, decision, interpretation or determination by the Committee
                with
                respect to the application or administration of this Plan shall be
                final
                and binding upon all persons, and need not be uniform with respect
                to its
                determination of recipients, amount, timing, form, terms or provisions
                of
                Awards.

            

    

    

    
      	
              3.5

            	
              No
                member of the Committee shall be liable for any action or determination
                taken or made in good faith with respect to the Plan or any Award
                granted
                hereunder, and to the extent permitted by law, all members shall
                be
                indemnified by the Company for any liability and expenses that may
                occur
                through any claim or cause of
                action.

            

    

    

    

    ARTICLE
      4

    Shares
      Subject to Plan

    

    
      	
              4.1

            	
              Number
                of Authorized Shares.  The Shares that may be made subject
                to Awards granted under the Plan shall not exceed 1,960,000 Shares
                in the
                aggregate.  Except as provided in Section 4.2 and to the extent
                permitted under Rule 16b-3, upon lapse or termination of any Award
                for any
                reason without being completely exercised, the Shares that were subject
                to
                such Award may again be subject to other Awards.  The aggregate
                number of Shares which may be issued under the Plan shall be subject
                to
                adjustment in the same manner as provided in Article 10 hereof with
                respect to Shares subject to Awards then outstanding.  Exercise
                of an Award in any manner shall result in a decrease in the number
                of
                Shares which may thereafter be available, both for purposes of the
                Plan
                and for sale to any one individual, by the number of Shares as to
                which
                the Award is exercised.  Separate stock certificates may be, but
                are not required to be, issued by the Company for those Shares acquired
                pursuant to the exercise of an Incentive Stock Option, for those
                Shares
                acquired pursuant to the exercise of  a Nonqualified Stock
                Option, or upon satisfaction of applicable Vesting Period and/or
                Performance Measures under an Award of Restricted
                Shares.

            

    

    

    
      	
              4.2

            	
              Annual
                Grant Limitation.  The maximum number of Shares with respect
                to which Awards (in any combination of Options and Restricted Shares)
                may
                be granted to any Participant during each fiscal year of ICO, Inc.
                is
                400,000 (subject to adjustment in the same manner as provided in
                Article
                10 hereof with respect to Shares subject to Awards then
                outstanding).  The limitation set forth in the preceding
                sentence shall be applied in a manner which will permit compensation
                generated under the Plan to constitute “performance-based” compensation
                for purposes of Code Section 162(m), including, without limitation,
                counting against such maximum number of Shares, to the extent required
                under Code Section 162(m), any Shares subject to Options that are
                canceled
                or repriced.

            

    

    

    
      	
              4.3

            	
              Term
                of Plan.  Subject to the terms and conditions of the Plan,
                the Committee may, from time to time prior to January 25, 2017, grant
                Awards to Eligible Employees on such terms and conditions as the
                Committee
                may determine.  More than one Award may be granted to the same
                Eligible Employee.

            

    

    

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    ARTICLE
      5

    Award
      Agreements

    

    
      	
              5.1

            	
              All
                Awards granted under the Plan shall be evidenced by a written Award
                Agreement in such form or forms as the Committee in its sole discretion
                may determine.

            

    

    

    
      	
              5.2

            	
              Each
                Participant, by acceptance of an Award under this Plan, shall be
                deemed to
                have consented to be bound, on the Participant’s own behalf and on behalf
                of the Participant’s heirs, assigns and legal representatives, by all
                terms and conditions of this Plan, as amended from time to
                time.

            

    

    

    

    ARTICLE
      6

    Stock
      Option Awards

    

    
      	
              6.1

            	
              Option
                Expiration Dates.  Subject to specific provisions relating
                to Incentive Stock Options set forth in Section 6.5 below, and subject
                to
                the provisions regarding Termination of Awards in Article 9 below,
                each
                Option shall be for a term of from one to ten years from the Date
                of
                Grant.  In the event that the Option Expiration Date is not
                specified in the Option Award Agreement, it shall be ten years from
                the
                Date of Grant.

            

    

    

    
      	
              6.2

            	
              Revisions
                to Option Awards.  The Committee, subject to the
                Participant’s approval, on or after the Date of Grant, may establish
                different exercise schedules and impose other conditions upon exercise
                and
                vesting for any particular Option or groups of Options.  In
                addition, the Committee may, at any time subject to the Participant’s
                approval, reclassify an Incentive Stock Option as a Nonqualified
                Stock
                Option.

            

    

    

    
      	
              6.3

            	
              Exercise
                of Options.  Any person entitled to exercise an Option in
                whole or in part may do so by delivering a written notice of exercise
                to
                the Company, attention Corporate Secretary, at its principal
                office.  The written notice shall specify the number of Shares
                for which an Option is being exercised and the Date of Grant of the
                Option
                being exercised, and shall be accompanied by full payment of the
                Option
                Price for the Shares being
                purchased.

            

    

    

    6.4           Payment
      of Option Price.

    

    
      	
               

            	
              (a)

            	
              Payment
                of the Option Price may be made in cash, by the tender of Shares,
                or both,
                or in such other form as may be determined by the
                Committee.  Shares tendered for payment of the Option Price
                shall be valued at their Fair Market Value on the Date of
                Exercise.

            

    

    

    
      	
               

            	
              (b)

            	
              Payment
                through tender of Shares may be made by instruction from the Participant
                to the Company to withhold from the Shares issuable upon exercise
                that
                number which have a Fair Market Value equal to the exercise price
                for the
                Option or portion thereof being
                exercised.

            

    

    

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    6.5           Designation
      as Incentive Stock Options or Nonqualified Stock Options

    

    
      	
               

            	
              (a)

            	
              The
                Committee in its discretion may designate whether an Option is to
                be
                considered an Incentive Stock Option or a Nonqualified Stock
                Option.  The Committee may grant both an Incentive Stock Option
                and a Nonqualified Stock Option to the same
                individual.  However, where both an Incentive Stock Option and a
                Nonqualified Stock Option are awarded at one time, such Options shall
                be
                deemed to have been awarded in separate grants, shall be clearly
                identified, and in no event will the exercise of one such Option
                affect
                the right to exercise the other such
                Option.

            

    

    

    
      	
               

            	
              (b)

            	
              Any
                Option designated by the Committee as an Incentive Stock Option will
                be
                subject to the general provisions applicable to all Options granted
                under
                the Plan.  In addition, the Incentive Stock Option shall be
                subject to the following specific
                provisions:

            

    

    

    
      	
               

            	
              (1)

            	
              At
                the time the Incentive Stock Option is granted, if the Eligible Employee
                owns, directly or indirectly, stock representing more than 10% of
                (i) the
                total combined voting power of all classes of stock of the Company,
                or
                (ii) a corporation that owns 50% or more of the total combined voting
                power of all classes of stock of the Company,
                then:

            

    

    

    
      	
               

            	
              (i)

            	
              the
                Option Price must equal at least 110% of the Fair Market value of
                the
                Shares on the Date of Grant, and

            

    

    

    
      	
               

            	
              (ii)

            	
              the
                term of the Option shall not be greater than five years from Date
                of
                Grant.

            

    

    

    
      	
               

            	
              (2)

            	
              The
                aggregate Fair Market Value of Shares (determined at the Date of
                Grant)
                with respect to which Incentive Stock Options are exercisable by
                a
                Participant for the first time during any calendar year under this
                Plan or
                any other plan maintained by the Company shall not exceed
                $100,000.

            

    

    

    
      	
               

            	
              (c)

            	
              If
                any Option is not granted, exercised, or held pursuant to the provisions
                noted immediately above, it will be considered a Nonqualified Stock
                Option
                to the extent that the Award is in conflict with these
                restrictions.

            

    

    

    

    ARTICLE
      7

    Restricted
      Share Awards

    

    
      	
              7.1

            	
              “Restricted
                Shares” are Awards consisting of grants of Shares to Participants, the
                vesting of which are subject to a Vesting Period and/or Performance
                Measures established by the Committee.  The period when any
                Restricted Shares have not yet been earned because the Vesting Period
                and/or Performance Measures have not been satisfied is referred to
                herein
                as the “Restricted Period.”

            

    

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    

     

    
      	
              7.2

            	
              The
                Committee shall designate the Participants to whom Restricted Shares
                are
                to be awarded and the number of Shares that are subject to the
                Award.

            

    

     

    
      	
              7.3

            	
              Grants
                of Restricted Shares awarded to Participants under the Plan shall
                be
                subject to the following terms and conditions and to such other terms
                and
                conditions, not inconsistent with the Plan, as shall be prescribed
                by the
                Committee in its sole discretion and as shall be contained in the
                Award
                Agreement:

            

    

     

    
      	
               

            	
              (a)

            	
              Restricted
                Shares awarded to Participants may not be sold, assigned, transferred,
                pledged or otherwise encumbered, except as provided otherwise herein,
                for
                a Restricted Period of ten (10) years or such shorter period as the
                Committee may determine at the time of the Award of such Restricted
                Shares.  Under no circumstances shall the Restricted Period be
                less than one (1) year (“Minimum Restricted Period”); provided, however,
                that the vesting of any Restricted Shares may be accelerated to occur
                prior to the end of the Minimum Restricted Period pursuant to the
                provisions of Section 9.2 or Section 10.3
                below

            

    

     

    
      	
               

            	
              (b)

            	
              Except
                for the restrictions described in the preceding paragraph, and as
                otherwise provided in an Award Agreement, during the Restricted Period
                the
                Participant as holder of such Restricted Shares shall have all the
                rights
                of a stockholder, including but not limited
                to:

            

    

     

    
      	
               

            	
              i.

            	
              the
                right to vote such Restricted Shares,
                and

            

    

     

    
      	
               

            	
              ii.

            	
              the
                right to receive all dividends paid on such Restricted
                Shares.

            

    

     

    
      	
               

            	
              (c)

            	
              The
                Committee may, subject to the Participant’s approval, at any time after
                the date of an Award of Restricted Shares, adjust the length of any
                applicable Vesting Period or Performance Period to account for individual
                circumstances of a Participant or group of Participants, provided
                that the
                Restricted Period may not be less than the Minimum Restricted
                Period.

            

    

     

    
      	
               

            	
              (d)

            	
              Each
                certificate issued in respect of Restricted Shares awarded under
                the Plan
                shall be registered in the name of the Participant and, at the discretion
                of the Committee, until the conclusion of the Restricted Period each
                such
                certificate may be deposited in a bank or alternative location designated
                by the Committee.  Each such certificate shall bear the
                following (or a similar) legend:

            

    

     

    “The
      transferability of this certificate and the shares of stock represented hereby
      are subject to the terms and conditions (including forfeiture) contained in
      the
      ICO, Inc. 2007 Equity Incentive Plan and an agreement entered into between
      the
      registered stockholder and ICO, Inc.  A copy of such plan and
      agreement is on file in the office of the Secretary of ICO, Inc., 1811 Bering
      Drive, Suite 200, Houston, Texas 77057 [or current ICO, Inc.
      address].”

     

    

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    
      	
               

            	
              (e)

            	
              At
                the end of the Vesting Period applicable to a Restricted Share Award
                (that
                is not subject to Performance Measures), such Restricted Shares will
                be
                transferred free of all restrictions to a Participant (or the
                Participant’s successors).  At the end of the Performance Period
                applicable to a Restricted Share Award: the Committee shall determine
                the
                number of Restricted Shares that have been earned in accordance with
                the
                provisions of Section 3.3 above; provided that the Vesting Period,
                if any,
                has been satisfied, such Restricted Shares will be transferred free
                of all
                restrictions to the Participant (or the Participant’s successors); and any
                such Restricted Shares that are not earned because of failure to
                satisfy
                applicable Performance Measures shall be
                forfeited.

            

    

     

    
      	
              7.4

            	
              Substitution
                of Cash.  If provided for in the applicable Award Agreement,
                the Committee may, in its discretion, substitute cash equal to the
                Fair
                Market Value (determined as of the date of distribution) of Restricted
                Shares otherwise required to be distributed to a
                Participant.

            

    

     

    

     

    ARTICLE
      8

    Transferability
      of Awards

    

    During
      the lifetime of a Participant to whom an Award of Options or Restricted Shares
      has been granted, such Options or Restricted Shares are not transferable
      voluntarily or by operation of law, and may be exercised only by the designated
      Participant.  Upon the death of a Participant to whom an Award of
      Options or Restricted Shares has been granted, the Options or Restricted Shares
      may be transferred to the beneficiaries or heirs of the deceased Participant
      by
      will or by the laws of descent and distribution.  In addition, to the
      extent permitted in an Award Agreement, the Committee may, in its discretion,
      allow for the transferability of any Nonqualified Stock Options or Restricted
      Shares granted pursuant to this Plan.

    

    

    ARTICLE
      9

    Termination
      of Awards

    

    
      	
              9.1

            	
              Termination
                During Period of Continuous Employment.  During a
                Participant’s period of continuous employment with the Company, an Award
                of Options or Restricted Shares will be terminated only if it (a)
                has been
                fully exercised or earned, (b) has not vested due to failure to satisfy
                any Performance Measures or other terms of grant, or (c) has expired
                or
                been forfeited by its terms.

            

    

    

    9.2           Termination
      of Employment.

    

    
      	
               

            	
              (a)

            	
              Options.

            

    

    

    
      	
               

            	
              (1)

            	
              Unless
                an Option Award Agreement provides otherwise, upon Termination of
                Employment for any reason, the then exercisable portion of any Option
                will
                terminate upon the earlier of (i) the first business day following
                expiration of the

            

    

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    three
      month period after the date of Termination of Employment, or (ii) the Option
      Expiration Date set forth in the Award Agreement pursuant to which the Option
      was granted.  The portion of any Option Award not exercisable will
      terminate on the date of Termination of Employment.  For purposes of
      the Plan, a leave of absence approved by the Company shall not be deemed to
      be
      Termination of Employment.

    

    
      	
               

            	
              (2)

            	
              Notwithstanding
                the preceding paragraph, if a Participant holding an Option dies
                or
                becomes subject to Permanent Disability while employed or within
                three
                months after Termination of Employment, such Option may be exercised,
                to
                the extent exercisable on the date of the occurrence of the event
                which
                triggers the operation of this paragraph, at any time by the estate
                or
                guardian of such person or by those persons to whom the Option may
                have
                been transferred by will or by the laws of descent and distribution
                until
                the earlier of (i) the date which is one year after the date of such
                death
                or occurrence of Permanent Disability, or (ii) the Option Expiration
                Date
                set forth in the Award Agreement.

            

    

    

    
      	
               

            	
              (3)

            	
              The
                Committee may at any time prior to three months after the date of
                Termination of Employment provide that particular Options not be
                affected
                by such termination and continue in force whether or not exercisable
                at
                the date of such Termination of Employment until the Option Expiration
                Date set forth in the Award Agreement or any date prior
                thereto.

            

    

    

    
      	
               

            	
              (4)

            	
              Except
                as provided in Article 10 hereof, in no event will the continuation
                of the
                term of an Option beyond the date of Termination of Employment allow
                the
                Participant, or the Participant’s beneficiaries or heirs, to accrue
                additional rights under the Plan, or to purchase more Shares through
                the
                exercise of an Option that  could have been purchased on the day
                that employment was terminated.  In addition, notwithstanding
                anything contained herein, no Option may be exercised in any event
                after
                the expiration of ten years from the Date of Grant of such
                Option.

            

    

    

    
      	
               

            	
              (b)

            	
              Restricted
                Shares.  Except as otherwise determined by the Committee in
                its sole discretion, a Participant whose employment with the Company
                terminates prior to the end of the Vesting Period applicable to a
                Restricted Share Award for any reason shall forfeit all Restricted
                Shares
                remaining subject to such outstanding Restricted Share
                Award.

            

    

    

    
      	
               

            	
              (c)

            	
              Termination
                Due to Death or Permanent Disability – Awards Subject to Performance
                Measures. In the event that the employment with the Company of a
                Participant with Options or Restricted Shares conditioned on Performance
                Measures terminates because of death or because the Participant becomes
                subject to Permanent Disability, and the Performance Period has not
                ended
                at the time of such termination due to death or Permanent Disability,
                the
                Committee shall have sole discretion to determine whether
                all

            

    

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    or
      any
      portion of the Award that is subject to Performance Measures will be deemed
      earned.

    

    

    ARTICLE
      10

    Adjustments
      to Awards due to Changed Circumstances

    

    
      	
              10.1

            	
              In
                the event of changes in the outstanding common stock of the Company
                as a
                result of stock dividends, split-ups, recapitalizations, combinations
                of
                Shares, exchanges of Shares or related transactions, the number and
                class
                of Shares and price per Share for each outstanding award of Options
                or
                Restricted Shares shall be correspondingly adjusted by the
                Committee.

            

    

    

    
      	
              10.2

            	
              The
                Committee shall make appropriate adjustments in the Option Price
                of any
                outstanding award of Options to reflect any spin-off of assets,
                extraordinary dividends or other distributions to
                shareholders.

            

    

    

    
      	
              10.3

            	
              In
                event that the Company shall, pursuant to action by its Board of
                Directors, at any time propose to merge into, consolidate with, or
                sell or
                transfer substantially all of its assets, or otherwise enter in to
                a
                transaction pursuant to which ICO, Inc. is not the surviving corporation
                (other than a corporate restructuring among Company Affiliates),
                or in
                which the outstanding Shares of ICO, Inc. are converted to cash,
                other
                securities or other property (any such circumstances referred
                to  herein as a “Change of Control”) and provision is not made
                pursuant to the terms of the transaction(s) relating to such Change
                of
                Control (the “Transaction”) for the assumption by the surviving, resulting
                or acquiring corporation of any outstanding category of Awards under
                the
                Plan, or for the substitution of new Awards therefor, with regard
                for
                Awards for which no provision is made the following shall
                apply:

            

    

    

    
      	
               

            	
              (a)

            	
              Options.  The
                Committee shall cause written notice of the proposed Transaction
                to be
                given to each Option holder not more than twenty (20) days prior
                to the
                anticipated effective date of the proposed Transaction, and the
                Participant’s Option, unless otherwise provided for under the terms of the
                Option Award Agreement, shall become fully (100%) vested and, prior
                to a
                date specified in such notice, which shall not be more than ten days
                prior
                to the anticipated effective date of the proposed Transaction, each
                Participant shall have the right to exercise his or her Option to
                purchase
                any or all Shares then subject to such Option (unless otherwise provided
                under the terms of the Option Award Agreement), including those,
                if any,
                which by reason of other provisions of the Plan have not then become
                available for purchase.  Each Participant, by so notifying the
                Company in writing, may, in exercising his or her Option, condition
                such
                exercise upon, and provide that such exercise shall become effective
                at
                the time of, but immediately prior to, the consummation of the
                Transaction, in which event such Participant need not make payment
                for the
                Shares to be purchased upon exercise of such Option until five days
                after
                written notice by the Company to such Participant that the Transaction
                has
                been consummated.  If the transaction is consummated, each
                Option, to the extent not previously exercised prior to the date
                specified
                in the foregoing notice, shall terminate on the effective date of
                the

            

    

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    Transaction.  If
      the Transaction is abandoned, (i) any Shares not purchased upon exercise of
      such
      Option shall continue to be available for purchase in accordance with the other
      provisions of the Plan and (ii) to the extent that any Option not exercised
      prior to such abandonment shall have vested solely by operation of this
      paragraph, such vesting shall be deemed annulled, and the original vesting
      schedule set forth shall be reinstituted, as of the date of such
      abandonment.

    

    
      	
               

            	
              (b)

            	
              Restricted
                Shares.  The Committee shall cause written notice of the
                proposed Transaction to be given to each Participant holding Restricted
                Shares not more than twenty (20) days prior to the anticipated effective
                date of the proposed Transaction, and unless provided for under the
                terms
                of the Restricted Share Award Agreement, all restrictions imposed
                on
                Restricted Shares shall lapse and such Restricted Shares shall become
                fully (100%) vested as of a date specified in the notice, which shall
                not
                be more than ten (10) days prior to the anticipated effective date
                of the
                proposed Transaction.

            

    

    

    

    ARTICLE
      11

    Amendment
      or Discontinuance of Plan

    

    
      	
              11.1

            	
              The
                Board of Directors may at any time amend, suspend, or discontinue
                the
                Plan; provided, however, that except as otherwise permitted by Rule
                16b-3,
                Code Section 162(m) or Code Section 422, no amendments by the Board
                of
                Directors shall, without further approval of the shareholders of
                ICO,
                Inc.:

            

    

    

    
      	
               

            	
              (a)

            	
              change
                the class of Eligible Employees;

            

    

    

    
      	
               

            	
              (b)

            	
              except
                as provided in Articles 4 and 9 hereof, increase the number of Shares
                which may be subject to Award granted under the Plan;
                or

            

    

    

    
      	
               

            	
              (c)

            	
              cause
                the Plan or any Award granted under the Plan to fail to (i) qualify
                for
                exemption from Section 16(b) of the Act, (ii) be excluded from the
                $1
                million deduction limitation imposed by Code Section 162(m), or (iii)
                qualify as an “Incentive Stock Option” as defined by Code Section
                422.

            

    

    

    
      	
              11.2

            	
              No
                amendment or discontinuance of the Plan shall alter or impair any
                Option
                granted under the Plan without the consent of the holder
                thereof.

            

    

    

    

    ARTICLE
      12

    Effective
      Date

    

    The
      Plan became effective on January
      12, 1998, having been adopted by the Board of Directors on that date and
      approved by the shareholders of the Company within twelve (12) months
      thereafter.  The Plan was amended and restated by the Board of
      Directors on December 18, 2001, and approved by the

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    shareholders
      of the Company on March 15, 2002.  The Plan was amended and restated
      by the Board of Directors on January 27, 2004, and approved by the shareholders
      of the Company on March 5, 2004.  The Plan was amended by the Board of
      Directors on September 8, 2005 and was amended and restated by the Board of
      Directors on November 16, 2005 (without the necessity of shareholder approval
      for such amendments).  The Plan was amended and restated by the Board
      of Directors on January 26, 2006, and approved by the shareholders of the
      Company on March 14, 2006.  The Plan was amended and restated by the
      Board of Directors on January 25, 2007, and approved by the shareholders of
      the
      Company on March 5, 2007.  The Plan was amended and restated by the
      Board of Directors on August 7, 2007 (without the necessity of shareholder
      approval for such amendments).  The Plan was amended and restated by
      the Board of Directors on December 5, 2007 (without the necessity of shareholder
      approval for such amendments).

    

    

    ARTICLE
      13

    Miscellaneous

    

    
      	
              13.1

            	
              Nothing
                contained in this Plan or in any action taken by the Board of Directors
                or
                shareholders of the Company shall constitute the granting of an Award,
                and
                an Award shall not be deemed granted unless: a written Award Agreement
                has
                been delivered to the respective employee; the employee has executed
                the
                Award Agreement respecting the Award in conformance with the provisions
                of
                the Plan and the terms of grant; and the Award Agreement has been
                executed
                on behalf of the Company.

            

    

    

    
      	
              13.2

            	
              Nothing
                contained in this Plan or in any Award granted pursuant to it shall
                confer
                upon any employee any right to continue in the employ of the Company
                or to
                interfere in any way with the right of the Company to terminate employment
                at any time.  So long as a holder of an Award shall continue to
                be an employee of the Company, the Award shall not be affected by
                any
                change of the Participant’s duties or
                position.

            

    

    

    
      	
              13.3

            	
              Certificates
                for Shares purchased through exercise of Options or received due
                to an
                award of Restricted Shares will be issued in regular course after
                exercise
                of the Option and payment therefor as called for by the terms of
                the
                Option, or the vesting and/or performance terms of the award of Restricted
                Shares.  No persons holding an Option granted under this Plan
                shall have any rights or privileges of a shareholder of the Company
                with
                respect to any Shares issuable upon exercise of such Option until
                certificates representing such Shares shall have been issued and
                delivered.  No Shares shall be issued and delivered upon
                exercise of an Option unless and until the Company, in the opinion
                of its
                counsel, has complied with all applicable registration requirements
                of the
                Securities Act of 1933 and any applicable state securities laws,
                and with
                any applicable listing requirements of any national securities exchange
                on
                which ICO, Inc.’s securities may then be listed as well as any other
                requirements of law.

            

    

    

    
      	
              13.4

            	
              This
                Plan shall continue in effect until the expiration of all Awards
                granted
                under the Plan unless terminated earlier in accordance with Article
                11;
                provided, however, that it shall otherwise terminate ten years after
                the
                Effective Date.

            

    

    

    
      
         

      

      
        -13-

        
          

        

      

      
        
           

           

           

        

      

    

    
      	
              13.5

            	
              Notwithstanding
                any provision in this Plan or in any Award Agreement, no Restricted
                Share
                Award granted after the Effective Date of this amendment and restatement
                of the Plan shall be exercisable prior to the date the ICO, Inc.
                2007
                Equity Incentive Plan (amending and restating the Fourth Amended
                and
                Restated ICO, Inc. 1998 Stock Option Plan) is approved by the shareholders
                of the Company (“Date of Shareholder Approval”).  In the event
                that any Options are granted after the Effective Date, such Options
                may
                only be exercisable prior to the Date of Shareholder Approval if,
                as of
                the Date of Grant of such Options, the total number of Options subject
                to
                awards under the Plan does not exceed the limit of Shares available
                for
                grant under the Plan as set forth in the Fourth Amended and Restated
                ICO,
                Inc. 1998 Stock Option Plan.

            

    

    
 

     

     

     

     

    -14-amendment.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

	AMENDMENT NO. 1

     AMENDMENT NO. 1 dated as of December 6, 2007 to the Credit Agreement referred to below, between JOURNAL REGISTER COMPANY (the “Borrower”) and the Lenders party to such Credit Agreement executing this Amendment No. 1 on the signature pages hereto.

     The Borrower, the Lenders party thereto and the Administrative Agent are parties to an Amended and Restated Credit Agreement dated as of January 25, 2006 (as heretofore amended, modified and supplemented and in effect immediately prior to the Amendment No. 1 Effective Date (as defined below), the “Credit Agreement”). The Borrower, the Lenders and the Administrative Agent wish to amend the Credit Agreement in certain respects, and accordingly, the parties hereto hereby agree as follows:

     Section 1. Definitions. Except as otherwise defined in this Amendment No. 1, terms defined in the Credit Agreement are used herein as defined therein.

     Section 2. Amendments. Subject to the satisfaction of the conditions precedent specified in Section 4 hereof, but effective as of the Amendment No. 1 Effective Date, the Credit Agreement shall be amended as follows:

     2.1. General References. References in the Credit Agreement (including references to the Credit Agreement as amended hereby) to “this Agreement” (and indirect references such as “hereunder”, “hereby”, “herein” and “hereof”) shall be deemed to be references to the Credit Agreement as amended hereby.

     2.2. Definitions. Section 1.01 of the Credit Agreement shall be amended by amending the following definitions (to the extent already included in said Section 1.01) and adding the following definitions in the appropriate alphabetical location (to the extent not already included in said Section 1.01):

     “Amendment No. 1” shall mean Amendment No. 1 dated as of December 6, 2007 to this Agreement.

     “Amendment No. 1 Effective Date” shall mean have meaning assigned to such term in Section 4 of Amendment No. 1.

     “Applicable Rate” shall mean, for any day (a) with respect to Revolving Credit Loans and Tranche A Term Loans, the applicable rate per annum for Base Rate Loans or Eurodollar Loans set forth below under the caption “Base Rate Margin (for Revolving Credit Loans and Tranche A Term Loans)” and “Eurodollar Margin (for Revolving Credit Loans and Tranche A Term Loans”, respectively, and (b) with respect to commitment fees in respect of the Revolving Credit Commitments, 0.50%:

Amendment No. 1

	  	  	           - 2 -  	  	  
	

	  
	  	  	Base Rate Margin  	  	Eurodollar Margin  
	Total Leverage Ratio  	  	(for Revolving  	  	(for Revolving  
	  	  	Credit Loans and  	  	Credit Loans and  
	  	  	Tranche A Term  	  	Tranche A Term  
	  	  	Loans)  	  	Loans)  
	

	Category 1:  	  	  	  	  
	Greater than 6.25 to 1  	  	1.75%  	  	2.75%  
	

	Category 2:  	  	  	  	  
	Less than or equal to 6.25 to 1  	  	1.50%  	  	2.50%  
	

For purposes of this definition, the Total Leverage Ratio (i) for any day during the period commencing on the Amendment No. 1 Effective Date and ending on the next Business Day after the date the Borrower delivers to the Administrative Agent the consolidated financial statements of the Borrower for the fiscal year ending December 31, 2007 pursuant to Section 8.01(a) hereof shall be deemed to be in Category 2 above and (ii) for any day thereafter shall be determined on the basis of the then most recent consolidated financial statements of the Borrower delivered to the Administrative Agent pursuant to Section 8.01(a) or 8.01(b) hereof. Any change in the Applicable Rate as a result of a change in the Total Leverage Ratio shall be effective as of the next Business Day following the date the relevant consolidated financial statements of the Borrower are so delivered to the Administrative Agent, provided that in the event that the Borrower shall fail to deliver to the Administrative Agent any consolidated financial statements by the respective date required pursuant to Section 8.01(a) or 8.01(b) hereof, the Applicable Rate shall be deemed to be in Category 1 above for each day during the period commencing on the date said financial statements were so required to be delivered and ending on the next Business Day following the date such financial statements are in fact delivered to the Administrative Agent. For avoidance of doubt, the Applicable Rate with respect to Revolving Credit Loans, Tranche A Term Loans and commitment fees for any day prior to the Amendment No. 1 Effective Date shall be determined in accordance with the definition of “Applicable Rate” as in effect immediately prior to giving effect to Amendment No. 1.

     “Cash Flow” shall mean, for any period, the sum, for the Borrower and its Subsidiaries for such period determined on a consolidated basis without duplication in accordance with GAAP, of operating income before amortization and depreciation and extraordinary or non-recurring gains and losses, and excluding (i) all other non-cash subtractions from such operating income not otherwise excluded (including any expense recorded in connection with or as a result of any equity, equity-like or equity-linked grants or awards by the Borrower or any of its Subsidiaries to directors, officers, employees or consultants), (ii) all other non-cash items of income, (iii) the sum for such period of the following cash expenses or charges of the Borrower and its Subsidiaries: (A) expenses in respect of on-line services, (B) costs associated with compliance with Section 404 of the Sarbanes Oxley Act of 2002, as amended, and the rules and regulations promulgated thereunder, (C) payments under, and accrued expenses relating to, the discontinuance of the StarShare Plan of Journal Register Newspapers, Inc. and (D) (only with respect to any such period ending on or prior to the last day of the fiscal quarter ending on or nearest to September 30, 2008) cost savings directly attributable to 

	Amendment No. 1

	- 3 -

the 21st Century Newspapers Acquisition, not exceeding in the aggregate (for all items referred to in this clause (iii)): (I) for the four fiscal quarter period ending on December 31, 2007, $11,000,000, (II) for the four fiscal quarter period ending on or nearest to March 31, 2008, $8,500,000, (III) for the four fiscal quarter periods ending on or nearest to June 30, 2008, September 30, 2008, December 31, 2008 and March 31, 2009, $6,000,000, (IV) for the four fiscal quarter periods ending on or nearest to June 30, 2009 and September 30, 2009, $4,000,000, (V) for the four fiscal quarter period ending on December 31, 2009, $2,000,000 and (VI) for each four fiscal quarter period thereafter, zero, (iv) for any such period ending on or prior to the last day of the fiscal quarter ending on or nearest to September 30, 2008, severance expenses relating to Robert Jelenic not exceeding $7,000,000 in the aggregate, (v) fees and expenses of the Borrower paid in cash during such period in respect of Amendment No. 1, (vi) all costs and expenses of the Borrower and its Subsidiaries paid in cash during such period in respect of any mortgage, deed of trust or other document delivered or provided pursuant to Section 8.20(b) hereof, (vii) non-recurring, cash charges for such period not exceeding $2,000,000 in the aggregate after the Amendment No. 1 Effective Date relating to a lease termination including, without limitation, termination fees, transfer tax, brokerage fee, repair costs in preparation for sale, sales tax and severance related thereto and (viii) non-recurring, cash charges for such period (including, without limitation, severance expenses and restructuring charges, but excluding severance expenses relating to Robert Jelenic) not exceeding $3,000,000 in the aggregate after the Amendment No. 1 Effective Date.

     “Incremental Loan Commitment” shall mean an Incremental Revolving Credit Commitment or an Incremental Term Loan Commitment. The aggregate amount of the Incremental Loan Commitments on the Amendment No. 1 Effective Date is zero and at any time thereafter shall not exceed $250,000,000.

     “Net Proceeds” shall mean, with respect to any receipt of cash proceeds of any Disposition or sale-leaseback transaction referred to in Section 2.09(b)(i) hereof (including any cash received in respect of any non-cash proceeds, but only as and when received) or any insurance payment, or any condemnation award or other compensation in respect of any Casualty Event referred to in Section 2.09(b)(ii) hereof (but only if, individually, in excess of $1,000,000), the excess, if any of (a) the aggregate amount of such proceeds over (b) the sum of (i) the reasonable fees and out-of-pocket expenses incurred by the Borrower or any of its Subsidiaries, in the case of any such Disposition or sale-leaseback transaction, in effecting such Disposition or sale-leaseback transaction (including underwriting discounts and commissions, brokerage or other selling commissions, legal, advisory and other fees and expenses, including title and recording fees and expenses and appraisal and environmental fees and expenses) or, in the case of any such Casualty Event, in collecting such payment or compensation plus (ii) the taxes paid (or reasonably estimated to be payable) by the Borrower or any of its Subsidiaries in connection with any such Disposition, sale-leaseback transaction or Casualty Event plus (iii) in the case of any such Disposition, sale-leaseback transaction or Casualty Event, the amount of any liabilities (contingent or otherwise) reasonably estimated to be payable by the Borrower or any of its Subsidiaries and directly attributable to such Disposition, sale-leaseback transaction or Casualty Event (as determined reasonably and in good faith by the chief financial officer of the Borrower) plus (iv) in the case of any such Disposition or

Amendment No. 1

	- 4 -

Casualty Event, any contractually required repayments of Indebtedness of the Borrower or any of its Subsidiaries secured by a Lien on the related Property.

     “Permitted Acquisition” shall mean an Acquisition permitted by clause (iv) of Section 8.05(b) hereof.

     “Pro Forma Basis” shall mean, as to any Person, for any of the following events which occur subsequent to the commencement of a period for which the financial effect of such event is being calculated, and giving effect to the event for which such calculation is being made, such calculation as will give pro forma effect to such event as if same had occurred at the beginning of such period of calculation, and

     (a) for purposes of the foregoing calculation, the transaction giving rise to the need to calculate the pro forma effect of any of the following events shall be assumed to have occurred on the first day of the relevant measurement period for which such pro forma effect is being determined (the “Reference Period”), and in calculating compliance with any ratio, such compliance will be determined on the basis of the Reference Period (notwithstanding anything to the contrary contained in the definition of the relevant ratio in this Section 1.01);

     (b) in making any determination in connection with the incurrence or assumption of any Indebtedness under Section 8.07(c) hereof or in connection with any Permitted Acquisition, (i) such Indebtedness shall be deemed to have been incurred or repaid at the beginning of the Reference Period, (ii) if such Indebtedness is floating rate debt, Interest Expense for such Indebtedness for such period shall be computed on a pro forma basis utilizing the average Eurodollar Base Rate (assuming 3-month interest periods) for the Reference Period plus the Applicable Rate for the relevant type of such floating rate debt, (iii) if such Indebtedness is fixed rate debt, Interest Expense for such Indebtedness for the Reference Period shall be computed on a pro forma basis utilizing such fixed rate and (iv) any other Indebtedness repaid with the proceeds of such Indebtedness shall be deemed to have been repaid at the beginning of the Reference Period and the Interest Expense relating thereto shall be eliminated from the calculation; and

     (c) in making any determination of Cash Flow, pro forma effect shall be given to any Permitted Acquisition or Disposition, in each case for which there is a pro forma effect during the Reference Period, as if such Permitted Acquisition or Disposition occurred on the first day of the Reference Period, and the Cash Flow of such Permitted Acquisition or Disposition, as applicable, shall be adjusted to include (i) any expense and cost reductions for which pro forma effect would be permitted under Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and (ii) any other cost savings directly attributable to such Permitted Acquisition or Disposition, as the case may be, within one year of the date thereof that are projected by the Borrower in good faith to result therefrom and supportable or quantifiable by appropriate records, but not exceeding $10,000,000 individually for any such Permitted Acquisition or Disposition.

For purposes of this definition, whenever pro forma effect is to be given to any occurrence or event, the pro forma calculations shall be determined in good faith by a

Amendment No. 1

	- 5 -

	 	Senior Officer of the Borrower.

     “Revolving Credit Commitment” shall mean, with respect to each Lender, the commitment, if any, of such Lender to make Revolving Credit Loans and to acquire participations in Letters of Credit and Swingline Loans hereunder, expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving Credit Exposure hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.03 hereof and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 11.06 hereof. The amount of each Lender’s Revolving Credit Commitment as of the Amendment No. 1 Effective Date is set forth on Annex 1-A to Amendment No. 1, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Revolving Credit Commitment after the Amendment No. 1 Effective Date, as applicable. The aggregate amount of the Lenders’ Revolving Credit Commitments is $200,000,000 as of the Amendment No. 1 Effective Date.

     “Revolving Credit Lenders” shall mean (a) on the Amendment No. 1 Effective Date, the Lenders having Revolving Credit Commitments as set forth on Annex 1-A to Amendment No. 1 and (b) thereafter, the Lenders from time to time having Revolving Credit Exposure and holding Revolving Credit Commitments after giving effect to any assignments thereof permitted by Section 11.06 hereof.

     2.3. Mandatory Prepayments. Section 2.09 of the Credit Agreement is hereby amended as follows:

     A. Section 2.09(b) of the Credit Agreement is hereby amended in its entirety to read as follows:

     “(b) Dispositions and Casualty Events.

     (i) If, at any time or from time to time, the Borrower or any of its Subsidiaries shall receive Net Proceeds from any Disposition permitted under clause (iii) of Section 8.05(c) hereof or otherwise not permitted under Section 8.05(c) hereof or from any sale-leaseback transaction permitted under Section 8.14 hereof, the Borrower shall, within ten Business Days after such receipt, apply, or cause to be applied, an amount equal to the Net Proceeds of such Disposition or sale-leaseback transaction to prepay principal of the Tranche A Term Loans and the Incremental Term Loans, in each case in the manner and to the extent specified in paragraph (d) of this Section 2.09.

     (ii) Within ten Business Days after receipt of any proceeds by the Borrower or any of its Subsidiaries in respect of any Casualty Event affecting any Property of the Borrower or any of its Subsidiaries (except to the extent such proceeds have been or are to be applied (or are committed to be applied) within 365 days after the date of receipt of such proceeds towards the repair, reconstruction or replacement of such Property, and if such proceeds have not been so utilized by such 365th day, then on such 365th day), the Borrower shall apply, or cause to be applied, an amount equal to the Net Proceeds of such Casualty Event or such unutilized portion thereof to prepay principal of the Tranche A 

Amendment No. 1

	- 6 -

Term Loans and the Incremental Term Loans, in each case in the manner and to the extent specified in paragraph (d) of this Section 2.09; provided that, if on such 365th day such proceeds have not been so used but the Borrower or any of its Subsidiaries shall have entered into an agreement with respect to the usage thereof for the purpose of the repair, reconstruction or replacement of such Property, then unless within 180 days thereafter the Borrower or such Subsidiary shall use, or shall be obligated to use, all or a portion of such Net Proceeds for such purpose (but not in excess of the aggregate amount of all cash consideration and all cash costs and expenses in respect of such purpose), any portion of such Net Proceeds not so used (or obligated to be so used) shall be applied to prepay the Tranche A Term Loans and the Incremental Term Loans in the manner and to the extent specified in paragraph (d) of this Section 2.09.

Notwithstanding the foregoing clauses (i) and (ii), the Borrower shall have no obligation to make any such application under this Section 2.09(b) in respect of the Net Proceeds of Dispositions, sale-leaseback transactions and/or Casualty Events covered under such clauses unless and until the aggregate amount of such Net Proceeds received by the Borrower and its Subsidiaries after the Amendment No. 1 Effective Date exceeds $25,000,000, in which case only an amount equal to such excess shall be so applied.”

     B. Section 2.09(d) of the Credit Agreement is hereby amended in its entirety to read as follows:

     “(d) Application of Payments. Prepayments of Loans made pursuant to paragraphs (b)(i), (b)(ii) and (c) of this Section 2.09 shall be applied ratably to the Tranche A Term Loans and Incremental Term Loans in accordance with the respective aggregate principal amounts of such Loans and, with respect to such Incremental Term Loans, ratably in accordance with the aggregate principal amounts of such Incremental Loans of each Series, and with respect to the Loans of each such Class and Series so prepaid, the amounts shall be applied to the principal installments of such Loans in direct order of maturity.”

     2.4. Initial and Subsequent Extensions of Credit. Section 6.02 of the Credit Agreement is hereby amended in its entirety to read as follows:

     “6.02 Initial and Subsequent Extensions of Credit. The obligation of each Lender to make a Loan (including an Incremental Loan), and of each Issuing Lender to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions:

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

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

Amendment No. 1

	- 7 -

	 	of such specific date); and

     (c) (only with respect to the making of any Incremental Loans), after giving effect to the making of such Incremental Loan, the Total Leverage Ratio (determined on a pro forma basis, giving effect to the incurrence of such Incremental Loan) shall not exceed, at any time during any period set forth below, the ratio set forth below under the caption “Total Leverage Ratio” below opposite such period:

	Period 	 	Total Leverage Ratio 
	 
	From and including the Amendment No. 1 	 	 
	Effective Date through and including December 31, 	 	 
	2007 	 	6.00 to 1 
	 
	From and including January 1, 2008 through and 	 	 
	including December 31, 2008 	 	5.75 to 1 
	 
	From and including January 1, 2009 	 	 
	through and including December 31, 2009 	 	5.50 to 1 
	 
	From and including January 1, 2010 	 	 
	through and including December 31, 2010 	 	5.25 to 1 
	 
	From and including January 1, 2011 	 	 
	And at all times thereafter 	 	5.00 to 1 

Each notice of borrowing or request for the issuance, extension, renewal or amendment of a Letter of Credit by the Borrower hereunder shall be deemed to constitute a certification to the effect set forth in the foregoing clauses (a), (b) and (in the case of any borrowing in respect of Incremental Loans) (c) (both as of the date of such notice or request and, unless the Borrower otherwise notifies the Administrative Agent prior to the date of such borrowing, issuance, extension, renewal or amendment, as of the date of such borrowing, issuance, extension, renewal or amendment).”

     2.5. Mergers, Consolidations, Etc. Clause (i) of Section 8.05(a) of the Credit Agreement is hereby amended in its entirety to read as follows:

     “(i) any Subsidiary of the Borrower may be merged, consolidated, amalgamated, liquidated, wound up, cancelled or dissolved into (x) the Borrower, if the Borrower shall be the continuing or surviving corporation, or (y) any other Subsidiary of the Borrower; provided that (x) if any such transaction shall be between a Subsidiary of the Borrower and a Wholly Owned Subsidiary of the Borrower, the Wholly Owned Subsidiary shall be the continuing or surviving entity and if any such transaction shall be between a Subsidiary of the Borrower that is a Subsidiary Guarantor and a Subsidiary of the Borrower that is not a Subsidiary Guarantor, the Subsidiary that is a Subsidiary Guarantor shall be the continuing or surviving entity and (y) if any such merger, consolidation, amalgamation, liquidation, winding up, cancellation or dissolution involves any

Amendment No. 1

	- 8 -

Immaterial Subsidiary and another Subsidiary that is not an Immaterial Subsidiary, the continuing or surviving entity thereof shall not be an Immaterial Subsidiary for purposes of this Agreement; and”.

     2.6. Acquisitions. Section 8.05(b) of the Credit Agreement is hereby amended as follows:

     A. Clause (iv) of Section 8.05(b) of the Credit Agreement is hereby amended in their entirety to read as follows:

     “(iv) Acquisitions by the Borrower or any of its Subsidiaries of Newspapers and/or non-Newspaper Properties, provided that (A) the aggregate consideration paid or payable by the Borrower and its Subsidiaries in respect of all such Acquisitions under this clause (iv) that are consummated after the Amendment No. 1 Effective Date shall not exceed $50,000,000 and (B) no Default shall have occurred and be continuing or would occur after giving effect to each such Acquisition; provided, further, that the following shall not be included for purposes of calculating compliance with the $50,000,000 limitation above: (x) any amounts in respect of Net Proceeds of Dispositions, sale-leaseback transactions and/or Casualty Events permitted to be re-invested or retained by the Borrower and its Subsidiaries pursuant to Section 2.09(b) hereof that are used to fund any such Acquisition; (y) any consideration in respect of any such Acquisition paid for with the Capital Stock of the Borrower; and (z) any such Newspapers acquired by the Borrower or any of its Subsidiaries as part of any exchange of assets permitted under Section 8.05(c)(vii) hereof;”.

     B. Clause (v) of Section 8.05(b) of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

     “(v) [Intentionally Deleted];”.

     C. Clause (vi) of Section 8.05(b) of the Credit Agreement is hereby amended by replacing the period at the end thereof with a semi-colon followed by the word “and”, and a new clause (vii) is hereby inserted at the end of Section 8.05(b) of the Credit Agreement to read as follows:

     “(vii) subject to the requirements of Section 2.09(b)(ii) hereof, the Borrower and each of its Subsidiaries may use the Net Proceeds of any Casualty Event to acquire any assets from any Person that are in replacement of the Property damaged, destroyed or affected by such Casualty Event.”

     2.7. Dispositions. Section 8.05(c) of the Credit Agreement is hereby amended as follows:

     A. Clause (iii) of Section 8.05(c) of the Credit Agreement is hereby amended in its entirety to read as follows:

     “(iii) any Disposition of other assets of the Borrower or any of its Subsidiaries

Amendment No. 1

	- 9 -

Disposed for cash and for not less than fair market value, provided that (A) the aggregate fair market value of all assets Disposed of by the Borrower and its Subsidiaries under this clause (iii) after the Amendment No. 1 Effective Date shall not exceed $200,000,000, (B) no Default shall have occurred and be continuing or would occur after giving effect to each such Disposition and (C) the Net Proceeds of each such Disposition shall be applied to the prepayment of Loans in the manner and to the extent specified in Section 2.09(b) hereof;”.

     B. Clause (vi) of Section 8.05(c) of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

     “(v) [Intentionally Deleted];”.

     C. Clause (vii) of Section 8.05(c) of the Credit Agreement is hereby amended in its entirety to read as follows:

     “(vii) the Borrower and its Subsidiaries may Dispose of any one or more Newspapers and/or any non-Newspaper Properties in exchange for one or more Newspapers having a value (together with the value of any other consideration received in connection therewith) equal to or greater than the value of the Properties so Disposed of, as determined in good faith by the board of directors of the Borrower or such Subsidiary, as the case may be; provided that (A) after giving effect to each such exchange, Cash Flow attributable to newspapers, other publications including magazines, guides and directories (whether in print or electronic form), and their related publications, mail products, services and other businesses (including, without limitation, proprietary information databases, on-line ventures and audiotext) and any other related activities, if any, would have contributed at least 50% of Cash Flow of the Borrower and its Subsidiaries (calculated on a Pro Forma Basis after giving effect to such Disposition) for the period of 12 consecutive complete fiscal months ended on, or most recently ended prior to, the date of the consummation of such exchange, (B) no Default shall have occurred and be continuing or would occur after giving effect to such Disposition, (C) after giving effect to each such exchange, the Total Leverage Ratio (calculated on a Pro Forma Basis) shall not exceed the Total Leverage Ratio immediately preceding such exchange and (D) prior to or within 90 days after the consummation of any such Disposition that is a Significant Disposition, the Administrative Agent shall have received a certificate of a Senior Officer certifying as to the foregoing and containing calculations, in form and detail satisfactory to the Administrative Agent, demonstrating compliance with this clause (vii) and Sections 8.07 and 8.11 hereof (calculated on a Pro Forma Basis immediately after giving effect to such Disposition); and”.

     D. Clause (viii) of Section 8.05(c) of the Credit Agreement is hereby amended in its entirety to read as follows:

     “(viii) any Disposition for fair market value of any portion of the assets of the Borrower or any of its Subsidiaries acquired in connection with any Acquisition, which Disposition shall occur within 18 months of such Acquisition and the Net Proceeds of which Disposition shall, at the option of the Borrower, be applied either to (A) any 

Amendment No. 1

	- 10 -

Permitted Usage within 365 days after receipt of such Net Proceeds (provided that if on such 365th day such proceeds have not been so used but the Borrower or any of its Subsidiaries shall have entered into an agreement with respect to any Permitted Usage, then unless within 180 days thereafter the Borrower or such Subsidiary shall use, or be obligated by such agreement to use, all or a portion of such Net Proceeds for such Permitted Usage (but not in excess of the aggregate amount of all cash consideration and all cash costs and expenses in respect of such Permitted Usage)) or (B) to reduce the amount of Revolving Credit Loans or Swingline Loans then outstanding (it being understood that such reduction will not result in a reduction of the Revolving Credit Commitments) ̧ provided that no Default shall have occurred and be continuing or would occur after giving effect to such Disposition.”

     2.8. Restricted Payments. Section 8.09 of the Credit Agreement is hereby amended in its entirety to read as follows:

     “8.09 Restricted Payments. The Borrower will not, nor will the Borrower permit any of its Subsidiaries to, make any Restricted Payment.”

     2.9. Financial Ratios. Section 8.11 of the Credit Agreement is hereby amended in its entirety to read as follows:

    “8.11 Financial Ratios.

     (a) Total Leverage Ratio. The Borrower will not, at any time during any period set forth below, permit the Total Leverage Ratio to exceed the ratio set forth below under the caption “Total Leverage Ratio” opposite such period:

	Period  	  	Total Leverage Ratio  
	  
	From and including September 30, 2007 through  	  	  
	and including the last day of the fiscal quarter  	  	  
	ending on or nearest to June 30, 2008  	  	6.75 to 1  
	  
	From and including the first day of the next  	  	  
	succeeding fiscal quarter through and including the  	  	  
	last day of the fiscal quarter ending on or nearest to  	  	  
	September 30, 2008  	  	6.65 to 1  
	  
	From and including the first day of the next  	  	  
	succeeding fiscal quarter through and including  	  	  
	December 31, 2008  	  	6.50 to 1  
	  
	From and including January 1, 2009  	  	  
	through and including the last day of the fiscal  	  	  
	quarter ending on or nearest to March 31, 2009  	  	6.30 to 1  
	  	  	6.15 to 1  

Amendment No. 1

	- 11 -  	  	  
	  
	From and including the first day of the next  	  	  
	succeeding fiscal quarter through and including the  	  	  
	last day of the fiscal quarter ending on or nearest to  	  	  
	June 30, 2009  	  	  
	  
	From and including the first day of the next  	  	  
	succeeding fiscal quarter through and including the  	  	  
	last day of the fiscal quarter ending on or nearest to  	  	  
	September 30, 2009  	  	6.00 to 1  
	  
	From and including the first day of the next  	  	  
	succeeding fiscal quarter through and including  	  	  
	December 31, 2009  	  	5.75 to 1  
	  
	From and including January 1, 2010  	  	  
	through and including December 31, 2010  	  	5.25 to 1  
	  
	From and including January 1, 2011  	  	  
	and at all times thereafter  	  	5.00 to 1  

     (b) Interest Coverage Ratio. The Borrower will not, at any time during any period set forth below, permit the Interest Coverage Ratio to exceed the ratio set forth below under the caption “Interest Coverage Ratio” opposite such period:

	Period  	  	Interest Coverage Ratio  
	  
	From and including September 30, 2007  	  	  
	through and including December 31, 2010  	  	1.85 to 1  
	  
	From and including January 1, 2011  	  	  
	and at all times thereafter  	  	2.00 to 1  

     2.10. Sale and Leaseback. Section 8.14 of the Credit Agreement is hereby amended in its entirety to read as follows:

     “8.14 Sale and Leaseback. The Borrower will not, nor will the Borrower permit any of its Subsidiaries to, enter into any arrangement with any other Person (other than the Borrower and its Subsidiaries) providing for the leasing by the Borrower or any of its Subsidiaries of real or personal property which has been or is to be sold or transferred by the Borrower or any of its Subsidiaries to such other Person or to any other Person to whom funds have been or are to be advanced by such Person on the security of such property or rental obligations of the Borrower or any of its Subsidiaries, except that the Borrower and its Subsidiaries may enter into any such arrangements so long as (i) the aggregate value of Property subject thereto at any time shall not exceed $100,000,000 and (ii) the Net Proceeds thereof shall be applied to the prepayment of Loans in the manner and to the extent specified in Section 2.09(b) hereof.”

Amendment No. 1

	- 12 -

     2.11. Certain Obligations respecting Subsidiaries. Section 8.20(b) of the Credit Agreement is hereby amended in its entirety to read as follows:

     “(b) At the request of the Administrative Agent or (subject to the proviso at the end of this sentence) the Required Lenders in its or their sole discretion, any Obligor that owns or acquires any real property interest, including improvements having a fair market value (subject to the penultimate sentence of this paragraph (b)) of $5,000,000 or more (including improvements upon any real property interest resulting in the fair market value of such interest together with such improvements being equal to $5,000,000 or more), then (subject, in the case of any real property that is subject to a Lien permitted under Section 8.06 hereof, to the delivery by the holder of such Lien of any necessary consent) it will or, as applicable, will cause the respective Subsidiary holding such real property interest, to execute and deliver in favor of the Administrative Agent a mortgage, deed of trust or similar instrument (as appropriate for the jurisdiction in which such respective real property is situated), all as reasonably requested by the Administrative Agent, pursuant to which such Obligor will create a Lien upon such real property interest (and improvements) in favor of the Administrative Agent for the benefit of the Lenders (and affiliates of Lenders) as collateral security for the obligations of the Obligors hereunder and under the other Credit Documents (and any obligations in respect of any Swap Agreement relating to interest rates owing by the Borrower or any Subsidiary to any Lender or any affiliate thereof), and will deliver (or, in the case of lienholder consents, will use its commercially reasonable efforts to cause the relevant lienholder(s) to deliver) such opinions of counsel, lienholder consents and title insurance policies as the Administrative Agent shall reasonably request in connection therewith, provided that the Administrative Agent in its discretion may waive the requirements of this paragraph (b) with respect to any real property to the extent that it determines that the costs of obtaining a Lien on such real property are excessive in relation to the value of the security to be afforded thereby. Notwithstanding the foregoing, the aggregate fair market value of owned real property of the Borrower and its Subsidiaries (as reasonably determined by the Borrower) that shall be excluded from such requirements shall not exceed at any time the greater of (i) $25,000,000 or (ii) 15% of the fair market value (as so determined) of all owned real property of the Borrower and its Subsidiaries. Without limiting the foregoing, as of the Amendment No. 1 Effective Date the Borrower (x) acknowledges and agrees that the Required Lenders have requested the Borrower to comply with its obligations under this paragraph (b), (y) represents and warrants that it has initiated efforts to so comply and (z) agrees to comply with such obligations as promptly as practicable using commercially reasonable efforts from the Amendment No. 1 Effective Date, but in no event later than 100 days after the Amendment No. 1 Effective Date (it being agreed by the parties hereto that such period may be extended by the Administrative Agent in its sole discretion for up to two additional 30 day periods or otherwise with the consent of the Required Lenders).”

     Section 3. Representations and Warranties. The Borrower represents and warrants to the Lenders and the Administrative Agent that (a) the representations and warranties set forth in Section 7 of the Credit Agreement and in Section 2 of the Security Agreement are true and complete on the Amendment No. 1 Effective Date as if made on and as of such date and as if each reference in said Section 7 to “this Agreement” and each reference in said Section 2 to 

Amendment No. 1

	- 13 -

“the Credit Agreement” included reference to this Amendment No. 1 and (b) immediately after giving effect to this Amendment No. 1, no Default shall be continuing.

     Section 4. Conditions Precedent. The amendments to the Credit Agreement set forth in Section 2 shall become effective as of the date on which the following conditions precedent shall be satisfied (the “Amendment No. 1 Effective Date”):

     4.1. Execution of Amendment No. 1. Receipt by the Administrative Agent of one or more counterparts of this Amendment No. 1 duly executed and delivered by the Borrower and Lenders constituting the Required Lenders, and consented to by each of the Subsidiary Guarantors.

     4.2 Resolutions, Etc. Receipt by the Administrative Agent of a certificate of the secretary or assistant secretary of the Borrower as to resolutions authorizing and approving the transactions contemplated by this Amendment No. 1 and attesting to incumbency of the person(s) executing this Amendment No. 1 on the Borrower’s behalf.

     4.3. Fees and Expenses, Etc. Evidence satisfactory to the Administrative Agent that the Borrower shall have paid (a) a consent fee of 0.25% in respect of this Amendment No. 1 to the Lenders that have executed this Amendment No. 1 and are entitled to receive such consent fee (or to the Administrative Agent for account of such Lenders), (b) all fees and expenses agreed to be paid to J.P. Morgan Securities Inc. by the Borrower in connection with this Amendment No. 1, (c) all reasonable expenses incurred by the Administrative Agent (including the reasonable fees, charges and disbursements of Milbank, Tweed, Hadley & McCloy LLP, special New York counsel to the Administrative Agent) in connection with this Amendment No. 1, for which written invoices have been submitted to the Borrower prior to the Amendment No. 1 Effective Date and (d) to the Administrative Agent for the account of the relevant Lenders, an amount in respect of additional interest on Loans, additional participation fees in respect of Letters of Credit and additional commitment fees in respect of the Revolving Credit Commitments, calculated at a per annum rate of (i) 0.25% in the case of Loans and Letters of Credit and (ii) 0.125% in the case of unused Revolving Credit Commitments, in each case, outstanding under the Credit Agreement, during the period from effective date of the determination of the Applicable Rate pursuant to the definition thereof resulting from the delivery of the Borrower’s financial statements for the fiscal quarter ended on or nearest to March 31, 2007 and to but not including the effective date of the determination of the Applicable Rate for the next succeeding fiscal quarter of the Borrower (it being agreed by each Lender executing this Amendment No. 1 that, in consideration of the amounts paid to it by the Borrower under this clause (d), such Lender hereby waives and disclaims any right to assert any claim or Event of Default relating to the Borrower’s calculation of the Applicable Rate for the fiscal quarter ended on or nearest to March 31, 2007).

     Section 5. Consents.

     5.1. Security Agreement. The Borrower hereby agrees that the Credit Agreement as amended by this Amendment No. 1 is the Credit Agreement under and for all purposes of the Security Agreement.

Amendment No. 1

	- 14 -

     5.2. Subsidiary Guarantee and Security Agreement. By its execution and delivery of this Amendment No. 1, each Subsidiary Guarantor hereby: (a) consents to this Amendment No. 1; (b) agrees that the Credit Agreement as amended by this Amendment No. 1 is the Credit Agreement under and for all purposes of the Subsidiary Guarantee and the Security Agreement; and (c) represents and warrants to the Lenders and the Administrative Agent that the representations and warranties of such Subsidiary Guarantor set forth in Section 3 of the Subsidiary Guarantee and in Section 2 of the Security Agreement are true and complete on the Amendment No. 1 Effective Date as if made on and as of such date and as if each reference in said Section 3 and said Section 2 to “the Credit Agreement” included reference to this Amendment No. 1. Upon the effectiveness of this Amendment No. 1, the first sentence of Section 2.01 of the Subsidiary Guarantee shall be deemed amended by inserting, immediately after the words “The Subsidiary Guarantors” in the first line thereof, the words “, as primary obligors,”.

     Section 6. Miscellaneous. The Borrower shall pay all reasonable expenses incurred by the Administrative Agent, including the reasonable fees, charges and disbursements of Milbank, Tweed, Hadley & McCloy LLP, special New York counsel to the Administrative Agent, in connection with the preparation, negotiation, execution and delivery of this Amendment No. 1. Except as herein provided, the Credit Agreement shall remain unchanged and in full force and effect. This Amendment No. 1 may be executed in any number of counterparts, all of which taken together shall constitute one and the same amendatory instrument and any of the parties hereto may execute this Amendment No. 1 by signing any such counterpart. This Amendment No. 1 shall be governed by, and construed in accordance with, the law of the State of New York.

	[remainder of page intentionally left blank]

Amendment No. 1

	- 15 -

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be duly executed and delivered as of the day and year first above written.

	JOURNAL REGISTER COMPANY  
	  
	  
	By_/s/ Julie A. Beck_____________  
	    Title: Executive Vice President &  
	        Chief Financial Offier 

Amendment No. 1

	- 16 -

CONSENTED TO AS PROVIDED IN SECTION 5.2 ABOVE:

	SUBSIDIARY GUARANTORS

	ALL HOME DISTRIBUTION, INC.  
	ASHEBORO PUBLICATIONS, INC.  
	CAPITOL CITY PUBLISHING COMPANY, LLC  
	CENTRAL ACQUISITION, LLC  
	CHANRY COMMUNICATIONS, LTD.  
	CHANRY FREEPORT PENNYSAVER, INC.  
	CHANRY MEDIA, INC.  
	CHANRY PENNYSAVER II, INC.  
	CHANRY PENNYSAVER III, INC.  
	CHANRY PENNYSAVER IV, INC.  
	CHANRY PENNYSAVER, INC.  
	CTM ACQUISITION, LLC  
	GOODSON HOLDING COMPANY, THE  
	HARTFORD TIMES, INC., THE  
	HOMETOWN ACQUISITION, LLC  
	HOMETOWN NEWSPAPERS, INC.  
	JRC MEDIA, INC.  
	JIUS, INC.  
	JOURNAL COMPANY, INC.  
	JOURNAL REGISTER EAST, INC.  
	JOURNAL REGISTER EAST HOLDING CO.,  
	INC.  
	JOURNAL REGISTER SUPPLY, INC.  
	JRC.COM, LLC  
	LRPA, LLC  
	MARK I COMMUNICATIONS, INC.  
	MIDDLETOWN ACQUISITION CORP.  
	NEW HAVEN REGISTER, LLC  
	NORTHEAST HOLDING COMPANY, INC.  
	NORTHEAST PUBLISHING COMPANY, INC.  
	ORANGE COAST PUBLISHING COMPANY  
	PENNYSAVER HOME DISTRIBUTION CORP.  
	REGISTER COMPANY, INC.  
	SARATOGIAN, LLC, THE  
	SC PEDDLER ACQUISITION, LLC  
	ST. LOUIS SUN PUBLISHING COMPANY  
	SUBURBAN LIFE LLC  
	SUBURBAN NEWSPAPERS OF GREATER ST.  
	LOUIS, LLC  
	TAUNTON ACQUISITION, LLC  
	TIMES HERALD PUBLISHING COMPANY,  
	LLC  
	TOWN TALK ACQUISITION, LLC  

Amendment No. 1

	 	- 17 -

	21ST CENTURY NEWSPAPERS, INC.  
	21ST CENTURY NEWSPAPERS SHARED  
	SERVICES, LLC  
	GREAT LAKES MEDIA, INC.  
	REAL ESTATE PUBLICATIONS, INC.  
	GREAT NORTHERN PUBLISHING, INC.  
	GREATER DETROIT NEWSPAPER NETWORK,  
	INC.  
	ALTERNATE DELIVERY SYSTEMS OF  
	GREATER DETROIT, LLC  
	HERITAGE NETWORK INCORPORATED  
	INDEPENDENT NEWSPAPERS, INC.  
	MORNING STAR PUBLISHING COMPANY  
	SAGINAW AREA NEWSPAPERS, INC.  
	UP NORTH PUBLICATIONS, INC.  
	VOICE COMMUNICATIONS CORP.  

	        __/s/ Julie A. Beck_______________  
	By:  	  	Julie A. Beck  
	Its:         		Executive Vice President &  
	  	  	         Chief Finanical Officer  

Amendment No. 1

- 18 - 

	
	  
	NAME OF LENDER:  
	JPMorgan Chase Bank, N.A.  
	  
	By_/s/ Peter B. Thauer_________  
	       Title: Executive Director  

Amendment No. 1

	ANNEX 1-A

TO

AMENDMENT NO. 1

	REVOLVING CREDIT COMMITMENTS

	                   Revolving Credit Lenders  	  	Revolving Credit Commitments  
	  	  	($)  
	

	  
	JPMorgan Chase Bank, N.A.  	  	15,700,000.00  
	

	Wachovia Bank, N.A.  	  	15,000,000.00  
	

	SunTrust Bank  	  	15,000,000.00  
	

	The Royal Bank of Scotland PLC  	  	15,000,000.00  
	

	Bank of America, N.A.  	  	15,000,000.00  
	

	Coöperatieve Central Raiffeisen-Boerlenleen  	  	12,000,000.00  
	Bank B.A., “Rabobank International”, New  	  	  
	York Branch  	  	  
	

	Royal Bank of Canada  	  	12,000,000.00  
	

	BNP Paribas  	  	10,000,000.00  
	

	General Electric Capital Corporation  	  	10,000,000.00  
	

	Key Bank National Association  	  	10,000,000.00  
	

	Bank of New York  	  	8,000,000.00  
	

	Calyon New York Branch  	  	7,700,000.00  
	

	Union Bank of California, N.A.  	  	7,000,000.00  
	

	Citicorp USA, Inc.  	  	6,000,000.00  
	

	Comerica Bank  	  	6,000,000.00  
	

	Manufacturers and Traders Trust Company  	  	6,000,000.00  
	

	Allied Irish Banks, p.l.c.  	  	5,600,000.00  
	

	Sumitomo Mitsui Banking Corporation  	  	5,000,000.00  
	

	Mizuho Corporate Bank Ltd.  	  	5,000,000.00  
	

	Credit Industriel et Commercial  	  	4,000,000.00  
	

	Erste Bank New York  	  	3,000,000.00  
	

	US Bank  	  	3,000,000.00  
	

	Webster Bank, National Association  	  	2,000,000.00  
	

	Bank of Communications, New York Branch  	  	1,000,000.00  
	

	Firstrust Bank  	  	1,000,000.00  
	

	TOTAL  	  	$200,000,000.00

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