Document:

AMENDED AND RESTATED
                              MEDIANEWS GROUP, INC.
                             SHAREHOLDERS' AGREEMENT

     THIS  AGREEMENT is made  effective as of January 31, 2000,  and amended and
restated as of March 16, 2004,  by and among The  Singleton  Family Voting Trust
for MediaNews Group,  Inc. (the "Singleton  Family Voting Trust"),  by Howell E.
Begle Jr., Trustee,  The Singleton Family  Irrevocable Trust by Howell E. Begle,
Jr. and Patricia  Robinson,  Trustees,  The Singleton  Family Revocable Trust by
William Dean Singleton and Howell E. Begle,  Jr., Trustees (the Singleton Family
Voting Trust,  the Singleton Family  Irrevocable  Trust and the Singleton Family
Revocable  Trust  being  sometimes   collectively  referred  to  herein  as  the
"Singleton Shareholders"),  The Scudder Family Voting Trust for MediaNews Group,
Inc. (the "Scudder Family Voting Trust") by Jean L. Scudder,  Trustee,  The Jean
L. Scudder  Irrevocable Trust by Jean L. Scudder,  Trustee (the "Jean L. Scudder
Irrevocable Trust"),  the Scudder Family 1987 Trust by Jean L. Scudder,  Trustee
(the "Scudder Family 1987 Trust"), Charles Scudder individually, Jean L. Scudder
individually, Carolyn Miller, individually, as Trustee under the Jennifer Miller
Irrevocable Trust and the Katherine Miller  Irrevocable  Trust, and Elizabeth H.
Difani,  individually,  as  custodian  under the UGMA for  Miguel  Difani and as
Trustee under the Chipeta Difani Irrevocable Trust, the Katya Difani Irrevocable
Trust and the Gabriel Difani Irrevocable Trust (the Scudder Family Voting Trust,
the Jean L. Scudder  Irrevocable  Trust, the Scudder Family 1987 Trust,  Charles
Scudder individually,  Jean Scudder individually,  Carolyn Miller, individually,
and as Trustee  for the  Jennifer  Miller  Irrevocable  Trust and the  Katherine
Miller  Irrevocable Trust, and Elizabeth H. Difani,  individually,  as custodian
for Miguel Difani and as Trustee for the Chipeta Difani  Irrevocable  Trust, the
Katya Difani  Irrevocable Trust and the Miguel Difani  Irrevocable  Trust, being

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sometimes collectively referred to herein as the "Scudder Shareholders"), Joseph
J. Lodovic,  IV and MediaNews Group, Inc., a Delaware  corporation ("MNG" or the
"Company").

     WHEREAS,  the current equitable  ownership of the Class A Common Stock, par
value $0.001 per share, (the "Class A Common Stock") of MNG is as follows:

      The Singleton Family         254,858.9900 Shares of Class A Common Stock
      Revocable Trust

      The Singleton Family         786,426.5100 Shares of Class A Common Stock
      Irrevocable Trust

      Joseph J. Lodovic, IV         58,199.0000 Shares of Class A Common Stock

      Jean L. Scudder,             185,817.3750 Shares of Class A Common Stock
      Individually

      Charles Scudder,             260,321.3750 Shares of Class A Common Stock
      Individually

      Jean L. Scudder, as          123,743.7450 Shares of Class A Common Stock
      Trustee for Kurt Miller
      and Gabriel Difani under
      The Scudder Family 1987
      Trust

      Jean L. Scudder, as           74,504.0000 Shares of Class A Common Stock
      Trustee for Benjamin
      Fulmer and Nina Fulmer
      under The Jean L.Scudder
      Irrevocable Trust

      Elizabeth H. Difani,          86,773.7917 Shares of Class A Common Stock
      Individually

      Elizabeth H. Difani, as      132,299.6658 Shares of Class A Common Stock
      Custodian for
      Miguel Difani, and as
      Trustee for the Chipeta
      Difani Irrevocable Trust,
      the Katya Difani
      Irrevocable Trust and the
      Gabriel Difani Irrevocable
      Trust

      Carolyn Miller,               59,275.1825 Shares of Class A Common Stock
      Individually

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      Carolyn Miller,              118,550.3650 Shares of Class A Common Stock
      as Trustee for
      the Jennifer Miller
      Irrevocable Trust and the
      Katherine Miller
      Irrevocable Trust

      WHEREAS,  the MNG  shareholders who are parties to this Agreement now own,
legally and beneficially,  2,140,770 shares,  representing  93.14% of the issued
and outstanding  shares of the Class A Common Stock (the Class A Common Stock is
sometimes referred to herein as the "Stock");

      WHEREAS, concurrently with the execution of this Agreement (i) the Scudder
Shareholders  are  entering  into the Scudder  Family  Voting Trust and (ii) the
Singleton Shareholders are entering into the Singleton Family Voting Trust;

      WHEREAS,  the  parties  hereto  desire to enter  into  this  Shareholders'
Agreement in order to provide a continuing  framework for their  relationship as
legal and beneficial  owners of Class A Common Stock and to further define their
mutual obligations;

      NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
herein contained, the parties hereto mutually agree as follows:

                          1. PROPOSED ACTIVITIES OF MNG

     1.01 NEWSPAPER PUBLISHING BUSINESS. MNG will engage only in the business of
owning  and  holding  the  securities  or  assets of  companies  that are in the
business of  publishing  and  distributing  newspapers or are engaged in related
advertising or media based business.

                       2. RESTRICTIONS UPON SALE OR TRANSFER OF STOCK

     2.01  GENERALLY.  At any time during the term of this Agreement none of the
Singleton  Shareholders,  the Scudder  Shareholders  nor any other party to this

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Agreement shall sell, transfer,  assign,  pledge, give away or otherwise dispose
of,  alienate,  or  encumber  in any manner any  interest  in, any shares of, or
interest  in any voting  trust  certificates  relating  to,  any  class,  now or
hereafter  authorized,  of the Common  Stock of MNG (any Common  Stock of MNG or
interest in any voting trust  certificate  relating  thereto  being  hereinafter
referred to as the  "Stock")  beneficially  owned by any of them,  other than as
hereinafter expressly provided in Sections 3, 4 or 5 of this Agreement,  and any
attempt to sell, transfer,  assign, pledge, give away or otherwise dispose of or
alienate  or encumber  any  interest  in any of the Stock in  violation  of this
Agreement shall be void and of no effect and shall not be recognized or recorded
in the stock transfer books of MNG.

     2.02. ADDITIONAL  RESTRICTIONS.  Until the earlier of (i) the date on which
none of the Company's 6 7/8% Senior  Subordinated  Notes due October 1, 2013 and
its 6 3/8% Senior  Subordinated Notes due April 1, 2014 is outstanding,  or (ii)
the date on which MNG's Leverage Ratio, as such term is defined in the Indenture
dated  January  26,  2004 by and between the Company and The Bank of New York as
Trustee,  is less than 3:1, and except as  otherwise  provided in Section 3 or 4
hereof,  no person who is a party to or who is  otherwise  bound by the terms of
this Agreement  shall sell,  transfer,  assign,  pledge,  give away or otherwise
dispose of, alienate,  or encumber in any manner whatsoever (each, a "Transfer")
any shares or interest in any shares of any class, now or hereafter  authorized,
of the Stock  beneficially owned by it unless all shares of Stock of the Company
then outstanding are Transferred by the holders thereof in a single  transaction
or series of related transactions on substantially the same terms.

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     2.03 TAG-ALONG RESTRICTIONS/RIGHTS.

     (a)  No  shareholder  (a  "Selling  Shareholder")  shall,  individually  or
collectively,  in any one  transaction  or series of  transactions,  directly or
indirectly,  Transfer  rights  to all or any part of the  Selling  Shareholder's
Stock in a  transaction  not  otherwise  permitted  under Section 3 or Section 4
hereof,  to any person  (other than a Permitted  Transferee)  (a "Third  Party")
unless the terms and  conditions  of such  Transfer  to such Third  Party  shall
include an offer to each other  Shareholder  (each,  for purposes of the Section
2.03,  a  "Tag-Along  Offeree,")  to  include  at the  option of each  Tag-Along
Offeree,  in the sale or other  disposition  to the Third  Party such  number of
shares  owned  by each  such  Tag-Along  offeree  at the  time of such  Transfer
determined  in  accordance  with this  Section  2.03.  The  Selling  Shareholder
proposing to effect such Transfer (the "Transferor") shall send a written notice
(the  "Tag-Along  Notice") to each of the Tag-Along  Offerees  setting forth the
maximum  number of shares of Stock the Third  Party is  willing to  purchase  or
otherwise acquire. At any time within 30 days after its receipt of the Tag-Along
Notice,  each of the Tag-Along Offerees may exercise its option to sell a number
of shares of Stock owned by such Tag-Along Offeree determined in accordance with
the provisions of Section (b) of this Section 2.03 by furnishing  written notice
of such exercise  (the  "Exercise  Notice") to the  Transferor,  which  Exercise
Notice  shall set forth the maximum  and minimum  number of shares of Stock that
such  Tag-Along  Offeree  wishes  to  Transfer  to the Third  Party.

     (b) If the  proposed  sale or other  disposition  to the Third Party by the
Transferor is consummated,  each Tag-Along  Offeree shall have the right to sell
to the Third Party as part of such proposed  Transfer the same percentage of the
total  number of shares of Stock  then  owned by such  Tag-Along  Offeree as the

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percentage  of the total  number of shares of Stock  then  owned by the  Selling
Shareholder to be Transferred to the Third Party;  PROVIDED,  HOWEVER,  that, in
the event that the total number of shares of Stock proposed to be Transferred by
the  Transferor  and all  Tag-Along  Offerees  as set forth in their  respective
Exercise  Notices  exceeds the maximum  number of shares of Stock that the Third
Party is willing to purchase or otherwise acquire,  then the number of shares of
Stock to be Transferred  by the  Transferor and the Tag-Along  Offerees who have
given  Exercise  Notices  shall  be  allocated  among  the  Transferor  and such
Tag-Along  Offerees (with rounding to avoid fractional  shares) in proportion to
the number of shares of Stock that each of them originally  proposed to Transfer
to the Third Party;  PROVIDED that if such  allocation  would result in any such
Tag-Along  Offeree  Transferring less than the minimum number of shares of Stock
set forth in such Tag-Along  Offeree's  Exercise  Notice,  such Exercise  Notice
shall be deemed  revoked  and the shares of Stock which such  Tag-Along  Offeree
would  otherwise  have been  entitled  to  Transfer  to the Third Party shall be
allocated  among  the  Transferor  and the  other  Tag-Along  Offerees  who gave
Exercise  Notices in accordance with the foregoing  provisions of this sentence.
All  calculations  pursuant to this  paragraph  Section  2.03 shall  exclude and
ignore any unissued shares of Stock issuable pursuant to stock options, warrants
and other rights to acquire shares of Stock.

     (c) Each of the Transferor and the Third Party shall have the right, in its
sole  discretion,  at all times prior to consummation  of the proposed  Transfer
giving rise to the  tag-along  right  granted by this Section  2.03, to abandon,
rescind,  annul,  withdraw or otherwise  terminate  such Transfer  whereupon all
tag-along rights in respect of such sale or other  disposition  pursuant to this
Section  2.03 shall  become null and void,  and neither the  Transferor  nor the

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Third Party shall have any liability or obligation to any Tag-Along Offeree with
respect thereto by virtue of such abandonment, rescission, annulment, withdrawal
or termination.

     (d) The purchase from the Tag-Along  Offerees pursuant to this Section 2.03
shall be on the same terms and conditions,  including but not limited to the per
share price and the date of sale or other disposition,  as are applicable to the
Transferor  which  shall be as stated in the  Tag-Along  Notice  provided to the
Tag-Along Offerees by the Transferor.

     (e) If within 30 days after receipt of the Tag-Along Notice,  any Tag-Along
Offeree has not delivered an Exercise  Notice,  such  Tag-Along  Offeree will be
deemed to have  waived any and all of its rights  with  respect to the  Transfer
described in the Tag-Along  Notice and the  Transferor  shall have 90 days after
the  expiration  of such 30 day  period in which to  Transfer  not more than the
number of shares of Stock described in the Tag-Along Notice (minus the number of
shares of Stock  Transferred to the Third Party by Tag-Along  Offerees) on terms
not more  favorable  to the  Transferor  than  were set  forth in the  Tag-Along
Notice.  If,  at the end of 120 days  following  the  receipt  of the  Tag-Along
Notice, the Transferor has not completed the Transfer of Stock of the Transferor
in  accordance  with  the  terms  described  in the  Tag-Along  Notice,  all the
restrictions on Transfer contained in this Agreement with respect to Stock owned
by the Transferor shall again be in effect.

                  3. PERMITTED TRANSFERS AMONG RELATED PARTIES

     3.01 PERMITTED  TRANSFERS.  At any time during the term of this  Agreement,
any shareholder may at any time sell to MNG all or any portion of their interest
in shares of Stock,  for such  consideration  as such  Shareholder and MNG shall
mutually determine appropriate, and any of the Singleton Shareholders or Scudder
Shareholders  may at any time sell,  transfer,  or assign by inter  vivos  gift,
testamentary  bequest,  or otherwise,  for such  consideration,  if any, as such

<PAGE>

person or entity shall,  in its or his sole  discretion,  determine  appropriate
(and  without  the  prior  consent  of any  other  shareholder  or party to this
Agreement),  all or a portion of their interest in shares of Stock to members of
their respective families (i.e., their spouses, parents, siblings, children, any
descendants  of the  foregoing or any spouses of any of the  foregoing)  or to a
trust for the benefit of such family member(s) or in the case of a trust, to its
grantor or to its beneficiaries, (all such permitted transferees sometimes being
hereafter  referred to as "Permitted  Transferees")  provided that the person or
trustee of any trust to whom such shares are  transferred  shall,  together with
his successors, assigns, distributees,  legatees, personal representatives,  any
receiver or trustee in bankruptcy or trust beneficiaries,  shall take such Stock
subject  to and  bound by all of the  terms and  conditions  of this  Agreement,
including,  without limitation, the provisions of this Section 3 and of Sections
2, 4, 5, 6 and 7 hereof,  and further provided that the Transferee shall execute
and deliver to MNG a written  acknowledgment  of the foregoing,  whereupon a new
certificate  shall be issued  representing  the shares of Stock  transferred and
bearing  the  restrictive  legend  set  forth in  Paragraph  6.01  hereof.

     3.02 AGREEMENT OF THE TRUSTEES.  Each of the Trustees  acknowledges that he
or she has  only  bare  legal  title  to the  Stock  beneficially  owned  by the
Singleton Shareholders and the Scudder Shareholders, respectively, and he or she
agrees with all parties  hereto  that he or she shall  promptly  take all action
necessary and  appropriate  to effect the transfer of title to any Stock that is
permitted or required to be  transferred  by the Singleton  Shareholders  or the
Scudder  Shareholders,  as the case may be,  pursuant to the  provisions of this
Section 3 or under Sections 4 or 5. Each such Trustee  further agrees that he or
she  shall  not have the power to  transfer  title to any of the Stock  owned of

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record by him except pursuant to a transfer  permitted or required to be made by
the Singleton Shareholders or Scudder Shareholders under this Section 3 or under
Sections 4 or 5. All of the  provisions  of this  Section  3.02 shall be binding
upon all successors and assigns of each such Trustee.

                   4. TRANSFER OF STOCK BY CONSENT OF PARTIES

     4.01 TRANSFER BY CONSENT. At any time during the term of this Agreement any
Shareholder may Transfer, with or without consideration,  all or any part of its
Stock free and clear of any  restrictions or limitations in this Agreement,  but
only with the express prior written  consent of all of the other parties to this
Agreement,  which  consent may be granted or  withheld in the sole and  absolute
discretion of each of such parties.  In the event such prior written  consent is
obtained,  this  Agreement  shall not  apply to the  Stock to which the  consent
relates,  so long as the Transfer is made in  accordance  with all the terms and
conditions of such consent.

            5. COMPANY'S AND SHAREHOLDERS' OPTIONS TO PURCHASE STOCK

     5.01 OPTION TO PURCHASE.  Subject to the restrictions set forth in Sections
2.02 and 2.03 hereof,  should any Shareholder (for purposes of this Section 5, a
"Selling  Shareholder")  desire  to  Transfer  rights  in all or any part of the
Selling  Shareholder's  Stock in a  transaction  not otherwise  permitted  under
Section 3 or 4 hereof,  whether  the Selling  Shareholder  desires to initiate a
Transfer or is responding affirmatively to an offer to Transfer, before doing so
the Selling  Shareholder  shall first permit (i) the Company and thereafter (ii)
the other  Shareholders (the "Remaining  Shareholders") to exercise an option to
purchase the shares of Stock which the Selling  Shareholder  desires to Transfer
in accordance with the provisions of this Section.

     (a) Subject to the  restrictions set forth in Sections 2.02 and 2.03 above,
a Shareholder  may solicit third parties to purchase its Stock prior to offering

<PAGE>

the same to the Company  and the  Remaining  Shareholders,  but no Transfer to a
third  party may be  consummated  until such  Stock has been  offered to (i) the
Company and thereafter,  (ii) the Remaining Shareholders in accordance with this
Agreement.

     5.02 REQUIRED NOTICE. Upon deciding to Transfer all or any rights in all or
any part of his stock,  whether  the Selling  Shareholder  desires to initiate a
Transfer or is  responding  affirmatively  to an offer to  purchase,  except for
Transfers  expressly  authorized pursuant to Sections 3 and 4 of this Agreement,
the  Selling  Shareholder  shall  simultaneously  notify  the  Company  and  the
Remaining  Shareholders  of the intended  Transfer.  Such notice (the  "Transfer
Notice")  shall  contain a complete  description  of the  proposed  transaction,
including the identity of any proposed Transferee, the "Purchase Price" (as such
term is defined in Section 5.04 hereof)  offered by the Selling  Shareholder  or
proposed by a bona fide third party  transferee  and all other material terms of
such  disposition.  The Transfer  Notice shall also specify  whether the Selling
Shareholder  is only  willing to  Transfer  all of his  Stock,  or is willing to
Transfer only a portion thereof, and such specifications shall control the scope
of any option to purchase thereunder.

     5.03 SCOPE AND PRIORITY OF COMPANY'S AND REMAINING SHAREHOLDERS' OPTIONS.

     (a) Upon receipt of a Transfer Notice from a Selling  Shareholder  pursuant
to Section 5.02,  the Company shall  thereupon have the first option to purchase
all (but not less than all) of such  shares of Stock  tendered  at the  Purchase
Price.  Such option to purchase  must be exercised by the Company  within thirty
(30) days after receipt of the Transfer  Notice.  Any exercise of such option to
purchase  Stock by the Company shall be made by notice in writing to the Selling
Shareholder,  with a copy to all other  Shareholders,  mailed within such thirty
day  period.  If the Company  elects not to exercise  such option to purchase it

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shall so notify in writing  the  Selling  Shareholder,  with a copy to all other
Shareholders,  (the "Non-Exercise Notice") mailed within such thirty day period.

     (b) If the  Company fails to  exercise  its option to  purchase  all of the
Selling  Shareholder's Stock in accordance with Section 5.03(a) above, then upon
receipt of a notice (the "Second  Transfer  Notice") from a Selling  Shareholder
that the  Company  has failed to  exercise  its option to  purchase  pursuant to
Section 5.03(a) above, or that the Company has notified the Selling  Shareholder
that it has elected  not to exercise  such  option to  purchase,  the  Remaining
Shareholder(s)  shall  thereupon  have an option to purchase  all of such shares
tendered at the Purchase Price. This option to purchase must be exercised by the
Remaining  Shareholder(s) within thirty (30) days after receipt by the Remaining
Shareholders of the Second Transfer Notice.  If any Remaining  Shareholder fails
to exercise his option to purchase shares,  or exercises such option to purchase
less than all the shares available to him, then the other Remaining Shareholders
shall have a period of thirty (30) days  following the initial thirty day period
to acquire all or any part of such offered  shares which are left.  Any exercise
of such option to purchase Stock by the Remaining  Shareholder(s)  shall be made
by  notice  in  writing  to the  Selling  Shareholder,  with a copy to all other
Shareholders,  mailed  within such thirty (30) day period (or, if not all shares
of the Selling Shareholder are acquired during such first period, then by notice
mailed within the ten day period  following).

     (c) Any notice given  pursuant to this Section 5 shall be given as provided
in Section 9.01 of this Agreement.

     5.04 PURCHASE PRICE.

     (a) If the purchase price (the "Purchase  Price") set forth in the Transfer
Notice is a bona fide all cash offer,  then the Purchase Price shall be such all
cash offer.

<PAGE>

     (b) If all or any part of the  Purchase  Price  set  forth in the  Transfer
Notice is non-cash  consideration,  then the Fair Market  Value (as such term is
defined herein) of such non-cash  consideration  shall be determined pursuant to
the provisions of Section 5.05 hereof.  The time periods for exercise of options
to purchase  set forth in Section  5.03(a) and (b) hereof  shall be tolled until
such time as the Fair Market Value of a non-cash  offer has been  determined  in
accordance with the provisions of Section 5.05 hereof.

     (c) As used in this  Agreement,  "Fair Market  Value" shall mean the amount
that would be paid for all of the  outstanding  shares of  capital  stock of the
Company as a going concern, on a consolidated basis with its subsidiaries,  by a
willing  buyer  to  a  willing  seller,  both  knowledgeable  in  the  newspaper
publishing industry.

     5.05 DETERMINATION OF FAIR MARKET VALUE.

     (a) If all or any part of the  Purchase  Price  specified  in the  Transfer
Notice is a non-cash  offer,  then the Selling  Shareholder  and the Company may
mutually agree as to the Fair Market Value of the non-cash offer. If the Selling
Shareholder and the Company are unable to agree on such value within thirty (30)
days after the  Company and the  Remaining  Shareholders  receive  the  Transfer
Notice,  then  in  such  event,  Fair  Market  Value  shall  be  established  as
hereinafter provided by two independent  qualified  appraisers  knowledgeable in
the  newspaper  publishing  industry,   one  to  be  appointed  by  the  Selling
Shareholder  and the other to be  appointed  by majority  vote of the  Remaining
Shareholders  (irrespective  of whether the Company  shall  exercise  the option
granted to it under Section 5.03 of this Agreement).

     (b) The two independent  appraisers  shall be appointed  within thirty (30)
days after  receipt by the Company and  Remaining  Shareholders  of the Transfer
Notice. If either the Selling Shareholder or the Remaining Shareholders fails to
appoint an  appraiser  within  this time  period,  then its right to do so shall
lapse,  and the appraisal  made by the one  independent  appraiser who is timely

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appointed shall be the Fair Market Value. If two appraisals are made, and if the
higher  appraisal  does not exceed 110% of the lower,  Fair Market Value will be
the  average  of the two.  If the two  appraisals  are  further  apart,  a third
appraiser will be selected  within thirty (30) days by the first two appraisers,
and the  Fair  Market  Value  will be  deemed  to be the  average  of the  third
appraisal and the one of the first two appraisals  which is closer to the third.
All  appraisals  shall be made  within  thirty  (30) days of  appointment  of an
appraiser and written notice of the results of such appraisal  shall be given to
the parties within such time. The Fair Market Value of MNG will be determined in
its  entirety  as a going  concern,  with the Selling  Shareholder  to receive a
proportionate  part of the total value based on the number of shares  being sold
by it. In making any  appraisal  hereunder  all debts and  liabilities  shall be
taken into account and there shall be no discount made on account of the Selling
Shareholder's  interest  being a minority  interest,  and no premium  imposed on
account of the Selling  Shareholder's  interest being a majority  interest.  The
Selling  Shareholder shall pay the fee of the appraiser  selected by it, and the
Remaining  Shareholders  (irrespective of whether the Company shall exercise the
option granted to it under Section 5.03 of this Agreement)  shall pay the fee of
the  appraiser  selected by them (in  proportion to their  respective  ownership
interests  in the  Company)  with the fee of any third  appraiser  to be divided
equally among the Selling Shareholder and the Remaining Shareholders.

     5.06 FAILURE TO EXERCISE. If the Remaining Shareholder(s) fails to exercise
its/their  option to  purchase  the  Selling  Shareholder's  Stock,  the Selling
Shareholder  shall be free to dispose of such Stock  within the ninety  (90) day
period after the  expiration of the  Remaining  Shareholder(s)  option,  but not
below the Purchase  Price  offered to the Remaining  Shareholders,  and not to a
different  transferee  than specified in the Transfer  Notice (if any transferee

<PAGE>

was  so  specified),  or in a  materially  different  manner  or  on  materially
different  terms.  If the Stock is not  disposed  of within such ninety (90) day
period then this right shall lapse and the Selling  Shareholder  must thereafter
recommence the offering process to the Company and the Remaining  Shareholder(s)
if he  subsequently  wishes to  dispose  of his  shares.  For  purposes  of this
Section, a sale shall be deemed made when closing has occurred, and the transfer
agent (or if no transfer  agent has been  appointed,  the  Secretary of MNG) has
been requested to record the transfer of Stock in the stock transfer  records of
MNG. Any person to whom the shares of the Selling  Shareholder are  transferred,
following the Remaining  Shareholder(s)' failure to exercise its/their option to
purchase,  shall take such shares  subject to all the terms and  conditions  and
restrictions imposed by this Agreement.

     5.07 PAYMENT OF PURCHASE PRICE.

      (a) The  purchaser of any Stock under this Section 5 shall have the option
to pay the Purchase Price in one of two methods. The first method, called Option
1, shall  consist of full  payment of the Purchase  Price by a wire  transfer of
immediately  available federal funds to a bank account designated by the Selling
Shareholder  upon a date mutually  selected by the Selling  Shareholder  and the
purchaser which is not more than ninety (90) days after the determination of the
Purchase Price as  hereinbefore  provided (such date being herein referred to as
the "Closing Date").

     Upon receipt of the Purchase Price on the Closing Date, all interest of the
Selling  Shareholder  in the Stock being sold shall  terminate,  and the Selling
Shareholder shall cease to have any further rights as a Shareholder in the Stock
being sold.

     At the Closing or the Closing Date, the Selling  Shareholder  shall deliver
to the  purchaser a  certificate  or  certificates  duly  endorsed  for transfer
representing  all  of  the  Stock  being  sold  on  that  date  by  the  Selling
Shareholder.

<PAGE>

     (b) The second method of payment for Stock called Option 2 shall consist of
paying not less than ten percent  (10%) of the total  Purchase  Price in cash on
the  Closing  Date,  and by  giving  the  Selling  Stockholder  the  purchaser's
promissory note for the balance of the Purchase Price in not more than 120 equal
monthly installments of principal.

     Simple interest on the unpaid principal balance of the Purchase Price shall
accrue  from the Closing  Date and shall be payable  monthly at the base rate of
interest established by Bank of America, N.A., as such rate may change from time
to time, but in no event less than the minimum rate of interest that is required
under the Internal  Revenue  Code and the  regulations  thereunder  to avoid the
imputation  of a higher rate.  The first  installment  of principal and interest
shall be due on the first day of the first calendar month  following the Closing
Date,  and such  installments  shall  continue  on the first  day of each  month
thereafter  until the entire  principal  balance  together with interest thereon
have been  paid,  but in any case for a period  of not more than ten (10)  years
from the date of the first installment.

     The  purchaser's  promissory  note  shall  provide  that such note shall be
payable in full (i) upon the sale of all or substantially all of the assets used
by MNG or its  direct  or  indirect  subsidiaries  in  the  operation  of  their
business, (ii) upon the sale of 50% or more of the then outstanding Stock of MNG
within any 180 day period, or (ii) upon the offering of any equity securities by
MNG or any  subsidiary  of MNG for sale to the public after the date hereof.  As
used in this paragraph,  the term "sale" includes an exchange of assets or Stock
for  assets  or  stock,  whether  or not  gain  or  loss  attributable  to  such
transaction  is recognized for federal  income tax purposes.  However,  the term
"sale"  shall not  include any  transaction  by which the Stock or assets of MNG

<PAGE>

become owned by any parties to this Agreement or any Transferee  permitted under
Section 3 hereof or any  corporation or other entity that is wholly owned by one
or more of the parties to this Agreement.

     If the purchaser elects Option 2, in order to secure the performance by the
purchaser of the  obligations  under his or its  promissory  note, the purchaser
shall  place  the  stock  certificate  or  certificates  representing  the Stock
purchased  in  escrow  with the law firm of Hughes  Hubbard  & Reed LLP,  1775 I
Street, N.W.,  Washington,  D.C.  20006-2401,  or such other person or entity as
shall be mutually  acceptable to the purchaser and seller,  as escrow agent (the
"Escrow  Agent"),  with stock powers duly endorsed in blank, as security for the
payment  of the  unpaid  principal  balance  and  interest  on  the  purchaser's
promissory  note.  The Escrow  Agent may  require  the  purchaser  and seller to
execute and deliver an escrow  agreement more fully outlining the obligations of
the Escrow Agent and otherwise  containing terms and conditions  typically found
in escrow  agreements in commercial  transactions and not inconsistent with this
Agreement.  The promissory  note given by each purchaser shall provide that upon
default in payment of any  installment  of principal or interest if such default
shall  continue for more than thirty (30) days after  written  notice of default
has been given to the  purchaser  by the  holder of the note,  the holder of the
note at that time may  inform the Escrow  Agent in writing of the  default,  and
thereupon,   the  Escrow  Agent  shall  deliver  the  stock   certificates   and
accompanying  stock  powers to the  holder  of the  promissory  note.  Upon such
delivery (1) all obligations of the Escrow Agent to all of the parties hereunder
shall  cease and (2) the  holder of the  promissory  note shall be  entitled  to
pursue whatever remedies it may have in law or equity against the purchaser.

     Voting  and  dividend  rights  (other  than the  rights to any  liquidating
dividend)  with  respect to the pledged  Stock shall be vested in the  purchaser
while such Stock is held in escrow and until there has been a default in payment
of interest or principal with respect to the promissory note.

<PAGE>

     All Stock pledged hereunder and all the accompanying  stock powers shall be
returned to the purchaser upon full satisfaction of the promissory note.

     In addition to the provisions for payment  contained above in this Section,
the  purchaser,  at its sole  option,  may  prepay any  amount of  principal  or
interest due on the purchaser's  promissory note at any time,  without  penalty.
Any prepayment shall be applied against the remaining principal installments due
under the note to the Selling  Shareholder  in the  inverse  order in which such
installments fall due. Any prepayment shall be applied first to pay any interest
that is in  arrears,  and then shall be  applied to reduce the entire  principal
balance before any prepayment is applied to interest that is not in arrears.

                              6. RESTRICTIVE LEGEND

     6.01 FORM OF LEGEND.  All  certificates  for the shares of the Stock  shall
bear the legend set forth below.

     "Sale,   transfer,   assignment,   pledge,   gift  or  any  other
     disposition,  alienation or encumbrance of the shares represented
     by this certificate is restricted by the terms of a Shareholders'
     Agreement   dated  as  of  January  31,   2000,   among   certain
     Shareholders and the Company, which may be examined at the office
     of  the  Company,  and  such  shares  may be  sold,  transferred,
     assigned,  pledged,  given or otherwise disposed of, alienated or
     encumbered  only  upon   compliance,   with  the  terms  of  that
     Agreement, which is incorporated herein by reference."

     "The  shares  represented  by  this  certificate  have  not  been
     registered  under the  Securities Act of 1933 (the `Act') and may
     not be offered, sold, or otherwise transferred,  unless and until
     (i) a registration  statement  with respect  thereto is effective
     under the Act or (ii) in the opinion of counsel, which opinion is
     reasonably  satisfactory  in form and in substance to counsel for
     the Company,  such offer, sale or other transfer is in compliance
     with the Act and any applicable state securities laws."

     6.02 STOCK NOT  REGISTERED;  PURCHASE FOR  INVESTMENT.  The parties  hereto
expressly acknowledge and agree that the Stock is restricted as described in the

<PAGE>

above  legends;  and that MNG is under  absolutely no obligation  to, and has no
plans  to,  register  any of the  Stock  under the  Securities  Act of 1933,  as
amended.

                              7. GENERAL COVENANTS

     7.01 APPLICABILITY OF COVENANTS.  The covenants set forth in this Section 7
are made for the benefit only of each of the parties to this  Agreement  and any
permitted transferee of any such party.

     7.02 NEGATIVE COVENANTS.

     (a) From and after the date hereof,  no equity  securities  of MNG shall be
issued,  or  class of  securities  convertible  into  equity  securities  of MNG
created, or obligations of MNG to issue additional equity securities incurred.

     (b) MNG covenants that it shall not do, take or permit any of the following
actions,  unless the same shall have first been  approved by the approval of all
directors then serving on MNG's Board of Directors,  or by unanimous approval of
the full  Executive  Committee  of MNG's Board of  Directors as appointed by all
directors then serving on the Board of Directors,  or by the holders of not less
than 75% of the shares of Stock then outstanding,  voting as a single class, and
each of the  parties to this  Agreement  covenant  that they shall  cause MNG to
refrain from such actions, unless they have been approved in the manner provided
above:

          (1) Declare and pay any dividends on its common stock;

          (2) Purchase or redeem any of its capital stock;

          (3) Adopt annual capital or annual operating budgets;

          (4) Except as otherwise  provided in the Certificate of Incorporation,
create, establish or acquire any subsidiary,  or liquidate or dissolve itself or
any subsidiary, or merge or consolidate, or cause or permit any subsidiary to be

<PAGE>

merged or  consolidated,  with any  corporation,  or enter into any  transaction
under  which  any  class of its  stock  would be  acquired  or the  stock of any
subsidiary  would be  sold,  or  sell,  lease,  encumber,  convey,  transfer  or
otherwise  dispose of all or any substantial  part of its assets or those of any
subsidiary,  or amend its Certificate of Incorporation or Bylaws,  or, except as
otherwise provided in the Certificate of Incorporation,  issue any capital stock
not  specifically  permitted  herein,  or permit any subsidiary to issue capital
stock to any person other than MNG or elect any directors of any subsidiary;

          (5)  Increase  the  aggregate   borrowing  capacity  of  MNG  and  its
subsidiaries  by more than $10  million in any fiscal  year  beyond the  current
level of  $350,000,000  which is  reflected  under  MNG's  and its  subsidiaries
current bank credit  facilities;

          (6) Enter into or acquiesce in any agreement which limits or restricts
the rights of MNG or any of the  parties to this  Agreement  to comply  with the
provisions  of this  Agreement;  or,

          (7) Replacing or discharging the chief executive officer of MNG.

                                8. MISCELLANEOUS

     8.01 NOTICES.  All notices and other  communications  hereunder shall be in
writing  and  deemed to have been duly  given if  delivered  by hand or  mailed,
postage  prepaid by certified  mail,  return receipt  requested to the following
persons and addresses:

      (a)    To MNG:                   W. Dean Singleton,
                                       Vice Chairman, Chief Executive Officer
                                       and President
                                       1560 Broadway, Suite 2100
                                       Denver, Colorado 80202
                                       Facsimile: (303) 894-9340

<PAGE>

             With A Copy To:           Howell E. Begle, Jr., Esq.
                                       Hughes Hubbard & Reed LLP
                                       1775 I Street, N.W.
                                       Washington, D.C. 20006-2401
                                       Facsimile: (202) 721-4646

                                       and

                                       James Modlin, Esq.
                                       Hughes Hubbard & Reed LLP
                                       One Battery Park Plaza
                                       New York, NY 10004
                                       Facsimile: (202) 422-4726

      (b)    To The Scudder Family     Jean L. Scudder
             Voting Trust, The Jean    193 Old Kents Hill Road
             L. Scudder Irrevocable    Readfield, Maine 04335
             Trust, The Scudder
             Family 1987 Trust,
             Jean Scudder:

             With A Copy To:           Frederick W. Rose, Esq.
                                       Cooper, Rose & English. LLP
                                       20 Bingham Avenue
                                       Rumson, New Jersey 07760
                                       Facsimile: (732) 758-1879

      (c)    To Charles A. Scudder:    Dr. Charles A. Scudder
                                       4625 SW 29th Ave.
                                       Portland, OR 97239

             With A Copy To:           Frederick W. Rose, Esq.
                                       Cooper, Rose & English. LLP
                                       20 Bingham Avenue
                                       Rumson, New Jersey 07760
                                       Facsimile: (732) 758-1879

      (d)    To Elizabeth H. Difani,   Mrs. Elizabeth H. Difani
             the Chipeta Difani        6000 Apple Road
             Irrevocable Trust, the    Route 1, Box 138
             Katya Difani Irrevocable  Polson, MT 59860
             Trust and the Gabriel
             Difani Irrevocable
             Trust:

<PAGE>

             With A Copy To:           Frederick W. Rose, Esq.
                                       Cooper, Rose & English. LLP
                                       20 Bingham Avenue
                                       Rumson, New Jersey 07760
                                       Facsimile: (732) 758-1879

      (e)    To Carolyn Miller, the    Mrs. Carolyn Miller
             Jennifer Miller           926 South Waterloo Road
             Irrevocable Trust and     Devon, PA 19333
             the Katherine Miller
             Irrevocable Trust:

             With A Copy To:           Frederick W. Rose, Esq.
                                       Cooper, Rose & English. LLP
                                       20 Bingham Avenue
                                       Rumson, New Jersey 07760
                                       Facsimile: (732) 758-1879

      (f)    To The  Singleton         Howell E. Begle, Jr., Esq.
             Family  Voting Trust:     Hughes  Hubbard & Reed LLP
                                       1775 I Street, N.W.
                                       Washington, D.C. 20006-2401
                                       Facsimile: (202) 721-4646

      (g)    To The Singleton          W. Dean Singleton
             Family Revocable          1560 Broadway, Suite 2100
             Trust:                    Denver, Colorado 80202
                                       Facsimile: (303) 894-9340

             With A Copy To:           Howell E. Begle, Jr., Esq.
                                       Hughes Hubbard & Reed LLP
                                       1775 I Street, N.W.
                                       Washington, D.C. 20006-2401
                                       Facsimile: (202) 721-4646

      (h)    To The Singleton          Patricia Robinson
             Family Irrevocable        1560 Broadway, Suite 2100
             Trust:                    Denver, Colorado 80202
                                       Facsimile: (303) 894-9340

             With A Copy To:           Howell E. Begle, Jr., Esq.
                                       Hughes Hubbard & Reed LLP
                                       1775 I Street, N.W.
                                       Washington, D.C. 20006-2401
                                       Facsimile: (202) 721-4646

<PAGE>

      (i)   To Joseph J. Lodovic, IV:  Joseph  J. Lodovic,  IV
                                       MediaNews  Group,  Inc. 1560
                                       Broadway,  Suite  2100
                                       Denver,  Colorado 80202
                                       Facsimile: (303) 894-9340

or to such subsequent persons and addresses as may be specified by notice.

     8.02 EQUITABLE RELIEF. The parties hereby acknowledge that monetary damages
are  insufficient to adequately  remedy the damages which will accrue,  or which
have  accrued,  to a party  hereto by reason of a failure to perform  any of the
obligations required under this Agreement.  Therefore, if any party hereto shall
institute any action or proceeding to enforce the provisions  hereof, any person
(including  MNG) against whom such action or proceeding is brought hereby waives
the claim or defense therein that such party or personal  representative  has or
have an adequate  remedy at law,  and such person  shall not advance in any such
action or proceeding the claim or defense that such remedy at law exists.

     8.03 ENTIRE AGREEMENT.  Except as otherwise expressly provided herein, this
Agreement  contains  the entire  agreement  among the  parties and it may not be
modified, changed, or amended unless the same be in writing and signed by all of
the parties hereto, or their successors or assigns.

     8.04  SUCCESSORS  AND  ASSIGNS.  All of the  terms  and  conditions  herein
contained  shall bind each of the parties  hereto,  their  successors,  assigns,
distributees,   legatees,   heirs,   executors,   administrators   and  personal
representatives and also any receiver or trustee in bankruptcy or insolvency.

     8.05  BROKERAGE  AND  EXPENSES.  The  parties  hereto  agree  to pay  their
respective  expenses  incurred in connection  with this  Agreement.  Each of the
parties  represents  that  it has  had  no  dealings  in  connection  with  this
transaction  with any  finder,  broker or other third party who may have a claim

<PAGE>

against any of the other parties hereto arising out of or in connection with any
of the transactions contemplated by this Agreement; and each agrees to indemnify
the others  against and hold the others  harmless  from any and all  liabilities
(including  without  limitation,  cost  of  counsel)  to  any  persons  claiming
brokerage  commissions or finder's fees on account of services purported to have
been rendered on behalf of, or loss of investment  rights or opportunity  caused
by, the indemnifying party in connection with this Agreement or the transactions
contemplated hereby.

     8.06  WAIVERS.  The  terms,  covenants,   representations,   warranties  or
conditions of this Agreement may be waived only by a written instrument executed
by the party  waiving  compliance.  No waiver by any party of any  breach of any
term,  covenant,  representation,   condition  or  warranty  contained  in  this
Agreement, whether by contract or otherwise, in any one or more instances, shall
be deemed to be or  construed as a waiver of any other breach of any other term,
covenant, representation, condition or warranty contained in this Agreement.

     8.07 AMENDMENT.  This Agreement may be amended only by a written instrument
executed by all of the parties hereto.

     8.08  ANNOUNCEMENT.  Such public  announcement or "release"  describing the
transactions  provided  for  herein  as may be  required  by  applicable  law or
regulation  shall be made by MNG. No other public  announcement  or release with
respect to the  transactions  provided  for  herein  shall be made by any party,
unless the same shall be approved in advance by the other parties hereto.

     8.09 CAPTIONS AND PRONOUNS.  The captions  appearing in this  Agreement are
included  solely for the  convenience  of the parties and shall not be given any
effect in construing this Agreement. Wherever singular pronouns are used herein,

<PAGE>

the same shall  include the plural,  and VICE VERSA,  and wherever  words of any
gender are used herein, such words shall include other genders.

     8.10 CHOICE OF LAW. This  Agreement  shall be construed and  interpreted in
accordance with the internal laws of the State of Delaware without regard to the
conflict of laws provisions thereof.

<PAGE>

     8.11  COUNTERPARTS.   This  Agreement  may  be  executed  in  one  or  more
counterparts and by facsimile signatures, each of which shall be deemed to be an
original, and all of which taken together shall be deemed to be one and the same
instrument.

     IN WITNESS WHEREOF, the parties have entered into this amended and restated
Agreement as of the date and year first shown above.

                              MEDIANEWS GROUP, INC.

                                    By: /S/ W. DEAN SINGLETON
                                        ----------------------------------------
                                        W. Dean Singleton, Vice Chairman,
                                        Chief Executive Officer and President

                                    THE SINGLETON FAMILY VOTING TRUST
                                    FOR MEDIANEWS GROUP, INC.

                                    By: /S/ HOWELL E. BEGLE
                                        ----------------------------------------
                                        Howell E. Begle, Jr., Trustee

<PAGE>

                                    THE SINGLETON FAMILY IRREVOCABLE TRUST

                                    By: /S/ HOWELL E. BEGLE
                                        ----------------------------------------
                                        Howell E. Begle, Jr., Trustee

                                    By: /S/ PATRICIA ROBINSON
                                        ----------------------------------------
                                        Patricia Robinson, Trustee

                                    THE SINGLETON FAMILY REVOCABLE TRUST

                                    By: /S/ WILLIAM DEAN SINGLETON
                                        ----------------------------------------
                                        William Dean Singleton, Trustee

                                    By: /S/ HOWELL E. BEGLE
                                        ----------------------------------------
                                        Howell E. Begle, Jr., Trustee

                                        /S/ JOSEPH J. LODOVIC, IV
                                        ----------------------------------------
                                        Joseph J. Lodovic, IV, Individually

                                    THE SCUDDER FAMILY VOTING TRUST FOR
                                    MEDIANEWS GROUP, INC.

                                    By: /S/ JEAN L. SCUDDER
                                        ----------------------------------------
                                        Jean L. Scudder, Trustee

<PAGE>

                                    THE JEAN L. SCUDDER IRREVOCABLE
                                    TRUST

                                    By: /S/ JEAN L. SCUDDER
                                        ----------------------------------------
                                        Jean L. Scudder, Trustee

                                    THE SCUDDER FAMILY 1987 TRUST

                                    By: /S/ JEAN L. SCUDDER
                                        ----------------------------------------
                                        Jean L. Scudder, Trustee

                                    /S/ JEAN L. SCUDDER
                                    --------------------------------------------
                                    Jean L. Scudder, Individually

                                    /S/ CHARLES SCUDDER
                                    --------------------------------------------
                                    Charles Scudder, Individually

                                    /S/ CAROLYN MILLER
                                    --------------------------------------------
                                    Carolyn Miller, Individually

                                    THE JENNIFER MILLER IRREVOCABLE TRUST

                                    By: /S/ CAROLYN MILLER
                                        ----------------------------------------
                                        Carolyn Miller, Trustee

<PAGE>

                                    THE KATHERINE MILLER IRREVOCABLE TRUST

                                    By: /S/ CAROLYN MILLER
                                        ---------------------------------------
                                        Carolyn Miller, Trustee

                                    /S/ ELIZABETH DIFANI
                                    --------------------------------------------
                                    Elizabeth Difani, Individually

                                    /S/ ELIZABETH DIFANI
                                    --------------------------------------------
                                    Elizabeth Difani, as Custodian for
                                    Miguel Difani

                                    THE CHIPETA DIFANI IRREVOCABLE TRUST

                                    By: /S/ ELIZABETH DIFANI
                                        ----------------------------------------
                                        Elizabeth Difani, Trustee

                                    THE KATYA DIFANI IRREVOCABLE TRUST

                                    By: /S/ ELIZABETH DIFANI
                                        ----------------------------------------
                                        Elizabeth Difani, Trustee

                                    THE GABRIEL DIFANI IRREVOCABLE TRUST

                                    By: /S/ ELIZABETH DIFANI
                                        ----------------------------------------
                                        Elizabeth Difani, TrusteeEXHIBIT 4.5

No. of Stock Units:  4,938                                 Warrant No. SUN-1

                                     WARRANT
                           TO PURCHASE COMMON STOCK OF
                             BIG DOG HOLDINGS, INC.
                               Dated March 3, 2004
                           (Void after June 30, 2004)

                  THIS IS TO CERTIFY THAT the  Post-Confirmation  Committee
established under the Plan (as defined below), or registered  assigns,  is
entitled to purchase from Big Dog Holdings,  Inc., a Delaware  corporation (the
"Company"),  at any time and from time to time after March 3, 2004 (the
"Initial  Exercisability  Date"),  but not later than 5:00 p.m.,  Pacific
Standard  time, on June 30, 2004 (the  "Expiration  Date"),  4,938 Stock Units,
in whole or in part in integral  units,  at a purchase price per Stock Unit of
$4.35,  all on the terms and conditions hereinbelow.

                  This  Warrant is issued by the Company  pursuant  to the
Second  Amended  Plan of  Reorganization (the "Plan") of The Walking  Company
and Alan's Shoes,  Inc.  (collectively,  the "Debtors") in connection with the
Debtors'  Bankruptcy Case in the United States  Bankruptcy  Court for the
Central  District of California (Case No.SV 03-15880-GM).

                  Section  1.  Certain  Definitions.  As  used  in  this
Warrant,  unless  the  context  otherwise requires:

                  "Board of  Directors"  shall  mean  either  the board of
directors  of the  Company  or any duly authorized committee of that board.

                  "Business  Day" shall mean any day other than a  Saturday,
Sunday or a day on which banks in the State of California are required or
permitted to close.

                  "Common  Stock" shall mean the  Company's  authorized  common
stock,  par value $0.01 per share, irrespective  of class  unless  otherwise
specified,  as  constituted  on the date of  original  issuance  of this
Warrant,  and any stock into which such Common Stock may  thereafter  be
changed,  and shall also include  stock of the Company of any other class,
which is not  preferred as to dividends or assets over any other class of stock
of the Company, issued to the holders of shares of the Company's stock upon
any reclassification thereof.

                  "Exercise  Price" shall mean the purchase  price per Stock
Unit as set forth on the first page of his  Warrant  on the  Issuance  Date and
thereafter  shall  mean  such  dollar  amount as shall  result  from the
adjustments specified in Section 4.

                  "Holder"  means,  initially,  the  Post-Confirmation
Committee  established  under the Plan, and thereafter  any Person that is or
Persons that are the  registered  holder(s) of this Warrant as  registered on
the books of the Company.

                  "Issuance Date" shall mean March 3, 2004, the date of
issuance of this Warrant.

                  "Person" shall include a natural person, limited partnership,
a corporation,  an association,  a partnership,  a limited liability company, a
trust or estate, a government,  foreign or domestic, and any agency or political
subdivision thereof, or any other entity.

                  "Stock Unit" shall  constitute  one share of Common Stock,
as such Common Stock was constituted on the date hereof and thereafter  shall
constitute  such number of shares  (including  any fractional  shares) of
Common Stock as shall result from the adjustments specified in Section 4.

                  "Total  Exercise  Price" shall mean the product of the
Exercise  Price times the number of Stock Units to be purchased by the holder
of this Warrant upon the exercise thereof.

                  "Warrant"  shall mean this  Warrant  to  purchase  up to
4,938  Stock  Units as set forth  herein initially issued to Holder,  and all
Warrants issued upon transfer,  division or combination of, or in substitution
therefor.

                  "Warrant  Stock" shall mean the shares of Common Stock
purchasable by the holder of this Warrant upon the exercise thereof.

                  Section 2.  Exercise  of  Warrant.  The Holder of this
Warrant  may,  one time only on and after the Initial  Exercisability  Date,
but not later than the  Expiration  Date,  exercise this Warrant in whole or in
part for the  integral  number of Stock  Units  which such  holder is then
entitled  to  purchase  hereunder.  The exercise procedures for this Warrant
are as follows:

                  (a)      The Holder  shall  deliver to the Company at its
office  maintained  pursuant to Section 11 for such purpose (i) an Exercise
Notice in the form attached as Exhibit A, duly completed and signed,  (ii) the
original of this Warrant and (iii) the  Total  Exercise Price  therefor,  which
shall be payable solely by delivery of the consideration described in
paragraph (b) below.

                  (b)      The Total  Exercise  Price shall be payable
solely by delivery of the Second  Unsecured Creditors Promissory Note (the
"Note") issued by TWC Acquisition Corp., a Delaware  corporation ("TWC"),
which for purposes of this Warrant shall be valued at the unpaid  principal
amount thereof plus accrued but unpaid  interest thereon,  together with
written notice to the Company  specifying what portion of the principal  amount
of the Note delivered  (plus accrued but unpaid  interest on such  portion)
shall be applied to pay the Exercise  Price.  Upon any partial  application  of
the  principal  amount of the Note,  the Company shall cause TWC promptly to
issue and deliver to or upon the order of the Holder a new Note in a principal
amount  equal to the  remaining  principal of such surrendered Note which is not
applied to such payment.

                  The Company  shall  within 20 days of its receipt of a
conforming  Exercise  Notice  cause to be issued in the name of and  delivered
to such Holder,  or as the Holder may direct,  a certificate  or  certificates
representing  the aggregate  number of duly  authorized,  validly issued,
fully-paid and  nonassessable  shares of Common Stock issuable upon such
exercise.

                  The  stock  certificate  or  certificates  for  Warrant
Stock  so  delivered  shall  be in  such denominations  as may be specified in
said notice and shall be  registered in the name of such Holder or such other
name or names as shall be designated  in said notice.  Such  certificate  or
certificates  shall be deemed to have been issued and such Holder or any other
Person so  designated  to be named  therein shall be deemed to have become
a holder of record of such  shares,  with,  to the extent  permitted  by law,
the right to vote such  shares or to consent  or to  receive  notice  as a
stockholder,  as of the time said  notice is  delivered  to the  Company  as
aforesaid.

                  The Company  shall pay all expenses  and stock  transfer
taxes  payable in  connection  with the preparation, issuance and delivery of
stock certificates under this Section 2.

                  All shares of Common Stock  issuable upon the exercise of this
Warrant shall be duly  authorized, validly issued, fully paid and nonassessable,
and free from all liens and other encumbrances thereon.

                  The  Company  shall not issue  certificates  for  fractional
shares  of  Common  Stock  upon any exercise of this  Warrant.  If the amount
of principal  of the Note that is being  requested to be used to purchase
Warrant  Shares would result in the issuance of fractional  shares,  the amount
of principal  being applied to such purchase shall be adjusted  downward to the
nearest  whole-share  amount,  and the Company may at its option either
pay the balance of such  principal in cash or include it in the remaining
principal  amount of the new Note issued after payment of the Total Exercise
Price pursuant to Section2(b).

                  Section 3.  Transfer,  Division  and  Combination.  This
Warrant  and all rights  hereunder  are transferable,  in whole but not in part,
on the books of the  Company  to be  maintained  for such  purpose,  upon
surrender  of this  Warrant at the office of the  Company  maintained  for
such  purpose  pursuant  to Section  11, together with (a) a  written
assignment in the form set out at the end of this Warrant duly executed by the
Holder hereof or its agent or attorney and  (b) payment  of funds  sufficient
to pay any stock transfer taxes payable upon the making of such transfer.
Upon such surrender,  execution and payment,  the Company shall execute and
deliver a new  Warrant  in the name of the  assignee,  and this  Warrant  shall
promptly  be  canceled.  If this  Warrant is assigned in blank,  the Company
may (but shall not be obliged to) treat the bearer hereof as the absolute  owner
of this Warrant for all purposes and the Company  shall not be affected by any
notice to the  contrary.  This Warrant, if properly  assigned in  compliance
with this  Section 3, may be  exercised  by an assignee  for the  purchase of
shares of Common Stock without having a new Warrant issued.

                  The Company shall pay all expenses  other than stock
transfer  taxes  incurred by the Company in the  performance of its
obligations in connection  with the  preparation,  issuance and delivery of
Warrants under this Section 3.

                  The Company agrees to maintain at its aforesaid  office books
for the  registration  and transfer of the Warrants.

                  Section 4.  Adjustment  of Stock Unit or  Exercise  Price.
The number of shares of Common  Stock comprising a Stock Unit,  and the Exercise
Price per Stock Unit,  shall be subject to adjustment  from time to time
as set forth in this Section 4 and in Section 5.

                  4.1. Stock  Dividends,  Subdivisions and  Combinations.  In
case at any time or from time to time the Company shall:

                  (a) take a record of the  holders  of its  Common  Stock for
the  purpose  of  entitling  them to receive a dividend payable in, or other
distribution of, Common Stock, or

                  (b)  subdivide  its  outstanding  shares of Common Stock
into a larger number of shares of Common Stock, or

                  (c)  combine its  outstanding  shares of Common  Stock into a
smaller  number of shares of Common Stock,

then the number of shares of Common  Stock  comprising  a Stock Unit
immediately  after the  happening of any such event  shall be  adjusted  so as
to consist of the number of shares of Common  Stock  which a record  holder of
the number of shares of Common Stock  comprising a Stock Unit  immediately
prior to the  happening of such event would own or be entitled to receive after
the happening of such event.

                  4.2. Other  Provisions  Applicable to Adjustments.  The
following  provisions shall be applicable to the  adjustment  of the number of
shares of Common Stock  comprising a Stock Unit  hereinbefore  provided for in
this Section 4:

                  (a)  When  Adjustments  to Be  Made.  The  adjustments
required  by  Section  4.1  shall be made whenever  and as often as any
specified  event  requiring  an  adjustment  shall  occur.  For the  purpose
of any adjustment,  any  specified  event  shall be deemed to have  occurred
at the close of  business on the date of its occurrence.

                  (b) Fractional  Interests.  In computing  adjustments under
this Section 4, fractional  interests in Common Stock shall be taken into
account to the nearest one-thousandth of a share.

                  (c) When  Adjustment  Not  Required.  If the  Company  shall
take a record of the  holders of its Common Stock for the purpose of entitling
them to receive a dividend or  distribution  and shall,  thereafter  and
before  the  distribution  thereof  to  shareholders,  abandon  its  plan  to
pay  or  deliver  such  dividend  or distribution,  then thereafter no
adjustment  shall be required by reason of the taking of such record and any
such adjustment previously made in respect thereof shall be rescinded and
annulled.

                  4.3.  Merger,  Consolidation  Etc. In case the Company shall
(a) merge into or  consolidate  with another  Person and shall not be the
continuing  or surviving  Person of such merger or  consolidation,  (b) shall
permit any other Person to merge into or  consolidate  with the Company and the
Company shall be the  continuing or
surviving Person,  but, in connection with such merger or consolidation,  the
Common Stock shall be changed into or exchanged  for stock or other  securities
of any other Person or cash or any other any other  property,  (c) shall
sell,  transfer or otherwise  dispose of all or  substantially  all of its
property,  assets or business to another person or (d) effect a capital
reorganization  or  reclassification  of the  Common  Stock  (other  than a
capital reorganization  or  reclassification  for which an adjustment is
provided by Section 4.1) and pursuant to the terms of such merger,
consolidation,  disposition, capital reorganization or reclassification,
shares of common stock of a  successor  or  acquiring  Person are to be
received by or  distributed  to the  holders of Common  Stock of the
Company,  then each holder of a Warrant shall have the right thereafter to
receive,  upon exercise of such Warrant, Stock Units each comprising the number
of shares of common stock of such successor or acquiring  Person  receivable
upon or as a result of such merger,  consolidation,  disposition,  capital
reorganization or reclassification by a holder of the  number of shares of
Common  Stock  comprising  a Stock Unit  immediately  prior to such  event.  If,
pursuant to the terms of such merger, consolidation,  disposition, capital
reorganization or reclassification,  any cash,  shares of stock,  other
securities  or property or warrants  or other  subscription  or purchase  rights
or property  of any nature  whatsoever  are to be  received by or  distributed
to the holders of Common  Stock of the Company,  then, at the Holder's  option,
either  (i) there shall be a reduction of the Exercise Price equal to the
amount  applicable  to the number of shares of Common  Stock then  comprising
a Stock Unit of any such cash and of the fair  value of any and all such  shares
of stock or of other  securities  or  property  to be  received  by or
distributed  to the holders of Common  Stock of the  Company,  or (ii)
such Holder shall have the right to receive, upon  exercise  of its  Warrant,
such cash,  shares of stock or other  securities  or  property of any nature as
a holder of the number of shares of Common  Stock  underlying  a Stock Unit
would have been  entitled to receive upon the  occurrence  of such event.  Such
fair value shall be determined in good faith by the Board of Directors of the
Company. In case of any such merger, consolidation,  disposition,  capital
reorganization or reclassification,  the successor or acquiring  Person shall
expressly  assume the due and punctual  observance and performance of each and
every  covenant  and  condition  of this  Warrant  to be  performed  and
observed  by the  Company  and all of the obligations  and  liabilities
hereunder,  subject  to such  modification  as shall be  necessary  to  provide
for adjustments of Stock Units which shall be as nearly  equivalent as
practicable to the  adjustments  provided for in this Section 4. For the
purposes of this Section 4 "common  stock of the  successor  or  acquiring
Person"  shall include  stock of such  corporation  of any class,  that is not
preferred as to dividends or assets over any other class of stock of such
corporation and that is not subject to redemption,  and shall also include any
evidences of indebtedness,  shares of stock or other  securities  which are
convertible into or exchangeable for any such stock, either  immediately  or
upon the  arrival of a  specified  date or the  happening  of a  specified
event,  and any warrants or other rights to subscribe  for or purchase any such
stock.  The  foregoing  provisions  of this Section 4.3  shall  similarly  apply
to  successive  mergers,  consolidations,  dispositions,  capital
reorganizations  or reclassifications.

                  4.4 No  Impairment.  The Company will not, by amendment of
its  certificate of  incorporation  or through a consolidation,  merger,
reorganization,  transfer of assets, dissolution, issue or sale of securities
or any other  voluntary  action,  avoid or seek to avoid the  observance  or
performance  of any of the terms of this Warrant,  but will at all times in
good  faith  assist in the  carrying  out of all such terms and in the taking of
all such action as may be  necessary  or  appropriate  in order to protect the
rights of the Holder of this Warrant against  impairment.  Without  limiting
the generality of the foregoing,  the Company will not permit the par value
of any shares of stock  receivable  upon the exercise of this Warrant to exceed
the amount  payable  therefor  upon such  exercise,  (b) will take all such
action as may be  necessary  or  appropriate  in order that the Company may
validly and legally  issue fully paid and  nonassessable  shares of stock on
the exercise of the Warrants from time to time  outstanding,  and (c) will not
take any action that results in any adjustment of the Exercise Price if the
total  number of shares of Common Stock (or other  securities)  issuable  after
the action upon  exercise of all of the Warrants would exceed the total number
of shares of Common Stock (or other  securities)  then authorized by the
Company's certificate of incorporation and available for the purpose of issue
upon such exercise.

                  Section 5. Notice to Warrant  Holders of  Adjustment  of
Stock Unit or Exercise  Price.  Whenever the number of shares of Common Stock
comprising a Stock Unit,  or the price at which a Stock Unit may be purchased
upon  exercise of the  Warrants,  shall be adjusted  pursuant to Section 4, the
Company  shall  forthwith  issue a notice  setting  forth,  in reasonable
detail,  the event  requiring the  adjustment  and the method by which such
adjustment  was  calculated  (including a statement of the fair value,  as
determined by the Board of Directors of the Company,  of any evidences of
indebtedness,  shares of stock, other securities or property or warrants or
other subscription  or purchase  rights or property of any nature  whatsoever
referred to in Section 4.3) and specifying the number of shares of Common Stock
comprising a Stock Unit and (if such  adjustment was made pursuant to Section
4.3)  describing  the number and kind of any other shares of stock  comprising
a Stock Unit,  and any change in the purchase price or prices  thereof,
after giving effect to such  adjustment or change.  The Company shall within
30 days after the making of such adjustment send such notice to the Holder in
accordance with Section 12.

                  Section  6.  Reservation  and  Authorization  of Common
Stock.  The  Company  shall at all times reserve and keep  available  solely
for issuance  upon the exercise of Warrants such number of its  authorized  but
unissued  shares of Common Stock as will be sufficient  to permit the exercise
in full of this Warrant.  All shares of Common Stock which shall be so issuable,
when issued upon  exercise of this Warrant or upon such  exercise,  as
the case may be, shall be duly and validly authorized and issued, fully-paid
and nonassessable.

                  Section 7.  Taking of Record;  Stock and Warrant  Transfer
Books.  In the case of all  dividends or other  distributions  by the Company
to the holders of its Common Stock with  respect to which any  provision of
Section 4 which  refers to the taking of a record of such  holders,  the
Company  will in each such case take such record as of the close of business
on a Business  Day. The Company will not at any time,  except upon  dissolution,
liquidation  or winding up or as  otherwise  may be  required  by law,  close
its stock  transfer  books or Warrant transfer books so as to result in
preventing or delaying the exercise or transfer of any Warrant.

                  Section 8. Limitation of Liability.  No provision  hereof,
in the absence of affirmative  action by the Holder to purchase  shares of
Common Stock,  and no mere  enumeration  herein of the rights or privileges of
the Holder,  shall give rise to any  liability  of the Holder for the purchase
price of the Warrant  Stock or as a stockholder of the Company, whether such
liability is asserted by the Company or by creditors of the Company.

                  Section 9. Loss or  Destruction  of Warrant  Certificates.
Upon  receipt of evidence  reasonably satisfactory  to the Company of the loss,
theft,  destruction or mutilation of any Warrant and, in the case of any
such loss,  theft or  destruction,  upon receipt of indemnity or security
in an amount  reasonably  satisfactory to the Company (the original Holder's or
any other  institutional  Holder's indemnity being satisfactory  indemnity in
the event of loss,  theft or destruction  of any Warrant owned by such
institutional  Holder),  or, in the case of any such mutilation,  upon surrender
and cancellation of such Warrant,  the Company will at its own expense execute
and  deliver,  in lieu of such lost,  stolen,  destroyed  or  mutilated
Warrant,  a new  Warrant of like tenor and representing the right to purchase
the same aggregate number of shares of Warrant Stock.

                  Section 10.  Amendments.  The terms of this  Warrant may be
amended,  and the  observance  of any term therein may be waived, but only
with the written consent of the Holder.

                  Section 11.  Office of the Company.  So long as this
Warrant  remains  outstanding,  the Company shall maintain an office where the
Warrant may be presented for exercise,  transfer,  division or combination as
in this  Warrant  provided.  Such  office  shall be at Big Dog  Holdings,  Inc.,
121 Gray  Avenue,  Suite 300,  Santa Barbara,  California 93101,  Attention:
General Counsel,  Fax: (805) 962-9460,  unless and until the Company shall
designate and maintain some other office for such purposes and deliver written
notice thereof to the Holder.

                  Section 12.  Notices Generally.

                  12.1.  All  communications  (including  all  required  or
permitted  notices)  pursuant  to  the provisions hereof shall be in writing
and shall be sent, to any registered  Holder of this Warrant,  to the address
of such  Holder as it  appears  in the stock or warrant  ledger of the  Company
or at such  other  address as such Holder may have furnished in writing to the
Company.

                  12.2.  Any  notice  shall be deemed  to have  been duly
delivered  when  delivered  by hand,  if personally  delivered,  and if sent by
mail to a party whose  address is in the same  country as the  sender,  five
Business  Days  after  being  deposited  in the mail,  postage  prepaid,  and
if sent by  recognized  international courier,  freight prepaid,  with a copy
sent by telecopier,  to a party whose address is not in the same country as
the sender, three Business Days after the later of (a) being telecopied and (b)
delivery to such courier.

                  Section 13.  Governing  Law. This Warrant  shall be governed
by and construed in accordance  with the laws of the State of California
(without regard to the conflicts of laws provisions thereof).

<PAGE>

                  IN WITNESS  WHEREOF,  the Company has caused this Warrant to
be executed in its name by its duly authorized officer.

Dated as of:      March __, 2004

                                             BIG DOG HOLDINGS, INC.,
                                             a Delaware corporation

                                             By /s/ Andrew D. Feshbach
                                                ----------------------
                                             Title:President

<PAGE>

1

                                    EXHIBIT A

                                 EXERCISE NOTICE
                                Warrant No. SUN-1

To Big Dog Holdings, Inc.:

                  The  undersigned  registered  owner of this Warrant to
Purchase Common Stock of Big Dog Holdings, Inc.  dated March 3, 2004 (this
"Warrant")  irrevocably  exercises  this Warrant for and purchases
________ Stock Units of Big Dog  Holdings,  Inc.,  a Delaware  corporation,
purchasable  with this  Warrant,  and hereby  tenders $___________________
in principal  amount of the attached Second  Unsecured  Creditors  Promissory
Note as payment therefor,  all at the  price  and on the  terms  and
conditions  specified  in  this  Warrant  and  requests  that
certificates  for the  shares  of  Common  Stock  hereby  purchased  be
issued  in the  name of and  delivered  to _________________________
whose address is_____________________.
..

                  The  undersigned   registered  owner  of  this  Warrant
hereby  certifies  that  it  is  not  an "underwriter" as that term is defined
in Section 1145(b) of the United States  Bankruptcy Code, and indemnifies and
holds Big Dog Holdings,  Inc.  harmless  against any liability,  loss or
expense  (including,  without  limitation, reasonable attorneys' fees)
incurred or suffered by it arising out of the inaccuracy of this certification.

                  Capitalized terms not otherwise defined herein shall have the
meanings ascribed thereto in this Warrant.

Dated:___________________, 2004          POST-CONFIRMATION COMMITTEE

                                         By
                                         Name:
                                         Title:

<PAGE>

                                    EXHIBIT B

                                 ASSIGNMENT FORM

                  FOR VALUE RECEIVED the  undersigned  registered  owner of
this Warrant hereby sells,  assigns and transfers unto the Assignee named below
all of the rights of the undersigned under this Warrant:

                          Name and Address of Assignee

and does hereby irrevocably constitute and appoint____________Attorney to
make sure  transfer  occurs on the books of Big Dog  Holdings,  Inc., a
Delaware  corporation,  maintained  for the purpose, with full power of
substitution in the premises.

Dated:

 ___________________________
         Signature

 ___________________________
         Witness

NOTICE: The signature to the assignment  must  correspond with the name as
        written upon the face of the Warrant in every particular instance,
        without alteration or enlargement or any change whatsoever.

        The signature to this  assignment  must be guaranteed by a bank or
        trust company having an office or correspondent in New York, New York
        or by a firm having membership on the New York Stock Exchange.

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