Document:

exv10w21

 

EXHIBIT 10.21

Form of Indenture among Hollinger International Publishing Inc.,

Hollinger International Inc. and Wachovia Securities, Inc. dated as of December 23, 2002

HOLLINGER INTERNATIONAL PUBLISHING INC.

9% Senior Notes due 2010

Unconditionally Guaranteed by

HOLLINGER INTERNATIONAL INC.

INDENTURE

Dated as of December 23, 2002

WACHOVIA TRUST COMPANY, NATIONAL ASSOCIATION,

Trustee

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	 	 	

	PARTIES
	 	 	1	 
	RECITALS
	 	 	1	 
	ARTICLE I

	Definitions and Other Provisions of General Application

	SECTION 1.01. Definitions
	 	 	1	 
	SECTION 1.02. Other Definitions
	 	 	25	 
	SECTION 1.03. Compliance Certificates and Opinions
	 	 	26	 
	SECTION 1.04. Form of Documents Delivered to Trustee
	 	 	26	 
	SECTION 1.05. Acts of Holders
	 	 	27	 
	SECTION 1.06. Notices, etc., to Trustee and Publishing
	 	 	28	 
	SECTION 1.07. Notice to Holders; Waiver
	 	 	28	 
	SECTION 1.08. Conflict with Trust Indenture Act
	 	 	28	 
	SECTION 1.09. Effect of Headings and Table of Contents
	 	 	29	 
	SECTION 1.10. Successors and Assigns
	 	 	29	 
	SECTION 1.11. Separability Clause
	 	 	29	 
	SECTION 1.12. Benefits of Indenture
	 	 	29	 
	SECTION 1.13. GOVERNING LAW
	 	 	29	 
	SECTION 1.14. Legal Holidays
	 	 	29	 
	SECTION 1.15. Schedules and Exhibits
	 	 	29	 
	SECTION 1.16. Counterparts
	 	 	29	 
	ARTICLE II

	Form of Note

	SECTION 2.01. Form Generally
	 	 	29	 
	SECTION 2.02. Form of Trustee’s Certificate of Authentication
	 	 	30	 
	SECTION 2.03. Form of Guarantee of Hollinger International
	 	 	30	 
	ARTICLE III

	The Notes

	SECTION 3.01. Execution, Authentication, Delivery and Dating
	 	 	31	 
	SECTION 3.02. Temporary Notes
	 	 	32	 
	SECTION 3.03. Registration, Registration of Transfer and Exchange
	 	 	32	 
	SECTION 3.04. Global Note Provisions
	 	 	33	 
	SECTION 3.05. Legends
	 	 	34	 
	SECTION 3.06. Special Transfer Provisions
	 	 	35	 
	SECTION 3.07. Mutilated, Destroyed, Lost or Stolen Notes
	 	 	37	 
	SECTION 3.08. Payment of Interest; Interest Rights Preserved
	 	 	38	 

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	SECTION 3.09. Persons Deemed Owners
	 	 	39	 
	SECTION 3.10. Cancellation
	 	 	40	 
	SECTION 3.11. Computation of Interest
	 	 	40	 
	SECTION 3.12. Additional Notes
	 	 	40	 
	SECTION 3.13. Additional Interest Under Registration Rights Agreements
	 	 	40	 
	ARTICLE IV

	Defeasance and Covenant Defeasance

	SECTION 4.01. Publishing’s Option to Effect Defeasance or Covenant Defeasance
	 	 	41	 
	SECTION 4.02. Defeasance and Discharge
	 	 	41	 
	SECTION 4.03. Covenant Defeasance
	 	 	41	 
	SECTION 4.04. Conditions to Defeasance or Covenant Defeasance
	 	 	42	 
	SECTION 4.05. Deposited Money and U.S. Government Obligations to be Held in Trust; Other Miscellaneous Provisions

	 	 	44	 
	SECTION 4.06. Reinstatement
	 	 	44	 
	ARTICLE V

	Remedies

	SECTION 5.01. Events of Default
	 	 	45	 
	SECTION 5.02. Acceleration of Maturity; Rescission and Annulment
	 	 	46	 
	SECTION 5.03. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	47	 
	SECTION 5.04. Trustee May File Proofs of Claim
	 	 	48	 
	SECTION 5.05. Trustee May Enforce Claims Without Possession of Notes
	 	 	48	 
	SECTION 5.06. Application of Money Collected
	 	 	49	 
	SECTION 5.07. Limitation on Suits
	 	 	49	 
	SECTION 5.08. Unconditional Right of Holders to Receive Principal, Premium and Interest
	 	 	50	 
	SECTION 5.09. Restoration of Rights and Remedies
	 	 	50	 
	SECTION 5.10. Rights and Remedies Cumulative
	 	 	50	 
	SECTION 5.11. Delay or Omission Not Waiver
	 	 	50	 
	SECTION 5.12. Control by Holders
	 	 	50	 
	SECTION 5.13. Waiver of Past Defaults
	 	 	51	 
	SECTION 5.14. Undertaking for Costs
	 	 	51	 
	SECTION 5.15. Waiver of Stay, Extension or Usury Laws
	 	 	51	 
	SECTION 5.16. Remedies Subject to Applicable Law
	 	 	52	 
	ARTICLE VI

	The Trustee

	SECTION 6.01. Duties of Trustee
	 	 	52	 
	SECTION 6.02. Notice of Defaults
	 	 	53	 
	SECTION 6.03. Certain Rights of Trustee
	 	 	53	 

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	 	 	Page
	 	 	

	SECTION 6.04. Trustee Not Responsible for Recitals, Dispositions of Notes or
Application of Proceeds Thereof
	 	 	54	 
	SECTION 6.05. Trustee and Agents May Hold Notes; Collections; etc.
	 	 	54	 
	SECTION 6.06. Money Held in Trust
	 	 	55	 
	SECTION 6.07. Compensation and Indemnification of Trustee and Its Prior Claim
	 	 	55	 
	SECTION 6.08. Conflicting Interests
	 	 	56	 
	SECTION 6.09. Corporate Trustee Required; Eligibility
	 	 	56	 
	SECTION 6.10. Resignation and Removal; Appointment of Successor Trustee
	 	 	56	 
	SECTION 6.11. Acceptance of Appointment by Successor
	 	 	58	 
	SECTION 6.12. Merger, Conversion, Consolidation or Succession to Business
	 	 	58	 
	SECTION 6.13. Preferential Collection of Claims Against Publishing
	 	 	59	 
	ARTICLE VII

	Holders’ Lists and Reports by Trustee and Publishing

	SECTION 7.01. Publishing to Furnish Trustee Names and Addresses of Holders
	 	 	59	 
	SECTION 7.02. Disclosure of Names and Addresses of Holders
	 	 	59	 
	SECTION 7.03. Reports by Trustee
	 	 	59	 
	SECTION 7.04. Reports by Publishing
	 	 	60	 
	ARTICLE VIII

	Consolidation, Merger, Sale of Assets

	SECTION 8.01. Publishing May Merge, Consolidate, etc., Only on Certain Terms
	 	 	60	 
	SECTION 8.02. Successor Substituted
	 	 	62	 
	ARTICLE IX

	Supplemental Indentures

	SECTION 9.01. Supplemental Indentures and Agreements Without Consent of Holders
	 	 	63	 
	SECTION 9.02. Supplemental Indentures and Agreements with Consent of Holders
	 	 	64	 
	SECTION 9.03. Execution of Supplemental Indentures and Agreements
	 	 	65	 
	SECTION 9.04. Effect of Supplemental Indentures
	 	 	65	 
	SECTION 9.05. Conformity with Trust Indenture Act
	 	 	65	 
	SECTION 9.06. Reference in Notes to Supplemental Indentures
	 	 	65	 
	SECTION 9.07. Record Date
	 	 	66	 
	ARTICLE X

	Covenants

	SECTION 10.01. Payment of Principal, Premium and Interest
	 	 	66	 
	SECTION 10.02. Maintenance of Office or Agency
	 	 	66	 
	SECTION 10.03. Money for Note Payments to be Held in Trust
	 	 	67	 
	SECTION 10.04. Corporate Existence
	 	 	68	 

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	 	 	Page
	 	 	

	SECTION 10.05. Payment of Taxes and Other Claims
	 	 	68	 
	SECTION 10.06. Maintenance of Properties
	 	 	68	 
	SECTION 10.07. Insurance
	 	 	68	 
	SECTION 10.08. Limitation on Indebtedness
	 	 	69	 
	SECTION 10.09. Limitation on Restricted Payments
	 	 	70	 
	SECTION 10.10. Limitation on Transactions with Affiliates
	 	 	73	 
	SECTION 10.11. Limitation on Liens
	 	 	74	 
	SECTION 10.12. Limitation on Issuances of Guarantees of Indebtedness
	 	 	75	 
	SECTION 10.13. Limitation on Sale of Assets
	 	 	75	 
	SECTION 10.14. Purchase of Notes upon a Change of Control
	 	 	80	 
	SECTION 10.15. Limitation on Issuance and Sale of Capital Stock of Restricted Subsidiaries
	 	 	84	 
	SECTION 10.16. Limitation on Dividends and Other Payment Restrictions Affecting Restricted Subsidiaries
	 	 	84	 
	SECTION 10.17. Provision of Financial Statements
	 	 	85	 
	SECTION 10.18. Statement by Officers as to Default
	 	 	85	 
	SECTION 10.19. Waiver of Certain Covenants
	 	 	86	 
	SECTION 10.20. Limitation on the Designation of Unrestricted Subsidiaries
	 	 	86	 
	ARTICLE XI

	Redemption of Notes

	SECTION 11.01. Right of Redemption
	 	 	86	 
	SECTION 11.02. Applicability of Article
	 	 	86	 
	SECTION 11.03. Election to Redeem; Notice to Trustee
	 	 	86	 
	SECTION 11.04. Selection by Trustee of Notes to be Redeemed
	 	 	86	 
	SECTION 11.05. Notice of Redemption
	 	 	87	 
	SECTION 11.06. Deposit of Redemption Price
	 	 	88	 
	SECTION 11.07. Notes Payable on Redemption Date
	 	 	88	 
	SECTION 11.08. Notes Redeemed or Purchased in Part
	 	 	88	 
	ARTICLE XII

	Satisfaction and Discharge

	SECTION 12.01. Satisfaction and Discharge of Indenture
	 	 	89	 
	SECTION 12.02. Application of Trust Money
	 	 	90	 
	ARTICLE XIII

	Guarantee

	SECTION 13.01. Hollinger International Guarantee
	 	 	90	 
	SECTION 13.02. Continuing Guarantee; No Right of Set-Off; Independent Obligation
	 	 	90	 
	SECTION 13.03. Guarantee Absolute
	 	 	91	 
	SECTION 13.04. Right to Demand Full Performance
	 	 	93	 

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	SECTION 13.05. Waivers
	 	 	93	 
	SECTION 13.06. Hollinger International Remains Obligated in Event
Publishing Is No Longer Obligated to Discharge
Indenture Obligations
	 	 	94	 
	SECTION 13.07. Waiver of Rights
	 	 	94	 
	SECTION 13.08. Guarantee Is in Addition to Other Security
	 	 	94	 
	SECTION 13.09. Release of Security Interests
	 	 	94	 
	SECTION 13.10. No Bar to Further Actions
	 	 	94	 
	SECTION 13.11. Failure to Exercise Rights Shall Not Operate as a Waiver; No Suspension
of Remedies
	 	 	95	 
	SECTION 13.12. Trustee’s Duties; Notice to Trustee
	 	 	95	 
	SECTION 13.13. Successors and Assigns
	 	 	96	 
	SECTION 13.14. Release of Guarantee
	 	 	96	 
	SECTION 13.15. Execution of Guarantee
	 	 	96	 
	SECTION 13.16. Payment Permitted by Hollinger International if No Default
	 	 	96	 
	SIGNATURES
	 	 	101	 

SCHEDULE 1 — Permitted Indebtedness

EXHIBIT A — Form of Note

EXHIBIT B — Form of Transfer Certificate for Transfer to QIB

EXHIBIT C — Form of Certificate to be Delivered in Connection with Transfers Pursuant to Regulation S

EXHIBIT D — Form of Rule 144 Certification

v

 

CROSS-REFERENCE TABLE

	 	 	 	 	 	 
	TIA SECTION	 	INDENTURE SECTION
	
	 	

	310
	(a) (1)
	 	 	6.09	 
	 	(a) (2)
	 	 	6.09	 
	 	(a) (5)
	 	 	6.11	;  6.12
	 	(b)
	 	 	6.08	;  6.10
	311
	(a)
	 	 	6.13	 
	 	(b)
	 	 	6.13	 
	312
	(a)
	 	 	7.01	 
	 	(c)
	 	 	7.02	 
	313
	(a)
	 	 	7.03	 
	 	(c)
	 	 	7.03	 
	314
	(a) (1)
	 	 	7.04	(a)
	 	(a) (2)
	 	 	7.04	(b)
	 	(a) (3)
	 	 	7.04	(c)
	 	(a) (4)
	 	 	10.18	 
	 	(c) (1)
	 	 	1.03	 
	 	(c) (2)
	 	 	1.03	 
	 	(e)
	 	 	1.03	 
	315
	(a)
	 	 	6.01	(b)
	 	(b)
	 	 	6.02	 
	 	(c)
	 	 	6.01	(a)
	 	(d)
	 	 	6.01	(c)
	 	(e)
	 	 	5.14	 
	316
	(a)(last sentence)
	 	1.01	(“Outstanding”)
	 	(a) (1) (A)
	 	 	5.12	 
	 	(a) (1) (B)
	 	 	5.13	 
	 	(b)
	 	 	5.08	 
	 	(c)
	 	 	9.07	 
	317
	(a) (1)
	 	 	5.03	 
	 	(a) (2)
	 	 	5.04	 
	 	(b)
	 	 	10.03	 
	318
	(a)
	 	 	1.08	 

	Note:	 	This Cross-Reference Table shall not, for any purpose, be deemed to
be a part of this Indenture.

vi

 

     INDENTURE, dated as of December 23, 2002, among HOLLINGER INTERNATIONAL
PUBLISHING INC., a Delaware corporation (as more fully defined below,
“Publishing”), HOLLINGER INTERNATIONAL INC., a Delaware corporation (as more
fully defined below, “Hollinger International”), and WACHOVIA TRUST COMPANY,
NATIONAL ASSOCIATION, as trustee (the “Trustee”).

RECITALS OF PUBLISHING

     Publishing has duly authorized the execution and delivery of this
Indenture to provide for the issuance of its unsecured senior notes, to be
issued pursuant to Articles II and III hereof or a supplemental indenture (each
a “Note” and collectively the
“Notes”).

     Hollinger International has duly authorized the issuance of a guarantee
(the “Guarantee”) of the Notes, of substantially the tenor as hereinafter set
forth, and to provide therefor, Hollinger International has duly authorized the
execution and delivery of this Indenture in its capacity as Guarantor
hereunder;

     This Indenture is subject to, and shall be governed by, the provisions of
the Trust Indenture Act that are required to be part of and to govern
indentures qualified under the Trust Indenture Act; and

     All acts and things necessary have been done to make (i) the Notes, when
executed by Publishing and authenticated and delivered hereunder and duly
issued by Publishing, the valid obligations of Publishing and (ii) this
Indenture a valid agreement of Publishing and Hollinger International in
accordance with the terms of this Indenture.

     NOW, THEREFORE, in consideration of the premises and the purchase of the
Notes by the Holders thereof, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all Holders of the Notes, as follows:

ARTICLE I

Definitions and Other Provisions
of General Application

     SECTION
1.01. Definitions. For all purposes of this Indenture, except as
otherwise expressly provided or unless the context otherwise requires:

		
	 	     (a) the terms defined in this Article have the meanings assigned to
them in this Article, and include the plural as well as the singular;
	 
	 	     (b) all other terms used herein which are defined in the Trust
Indenture Act, either directly or by reference therein, have the meanings
assigned to them therein;
	 
	 	     (c) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with GAAP;

 

 

		
	 	     (d) the words “herein”, “hereof” and “hereunder” and other words of
similar import refer to this Indenture as a whole and not to any
particular Article, Section or other subdivision; and

		
	 	     (e) all references to $, US$, dollars or United States dollars shall
refer to the lawful currency of the United States of America.

     The following terms shall have the meanings set forth in this Section:

     “Acceleration
Right” means a right, which at the time is immediately
exercisable (without further notice or lapse of time), by the holders or a
trustee to cause the acceleration of the maturity of Indebtedness of Publishing
or a Restricted Subsidiary having an aggregate principal amount outstanding of
at least $7,500,000.

     “Acquired
Indebtedness” means Indebtedness of a Person (including an
Unrestricted Subsidiary) (i) existing at the time such Person becomes a
Restricted Subsidiary or (ii) assumed in connection with the acquisition of
assets from such Person, in each case, other than Indebtedness Incurred in
connection with, or in contemplation of, such Person becoming a Restricted
Subsidiary or such acquisition. Acquired Indebtedness will be deemed to be
Incurred on the date of the related acquisition of assets from any Person or
the date the acquired Person becomes a Restricted Subsidiary.

     “Additional
Note Board Resolutions” means resolutions duly adopted by the
Board of Directors of Publishing and delivered to the Trustee in an Officers’
Certificate providing for the issuance of Additional Notes.

     “Additional
Note Supplemental Indenture” means a supplement to this
Indenture duly executed and delivered by Publishing, each Guarantor and the
Trustee pursuant to Article IX providing for the issuance of Additional Notes.

     “Additional
Notes” means additional Notes of up to an amount equal to the
difference between (i) $450 million and (i) the aggregate principal amount of
Notes originally issued as of the Issue Date and any Notes originally issued
after the Issue Date pursuant to Section 3.12, such difference to exclude the
aggregate principal amount of any replacement Notes and any Exchange Notes as
specified in the relevant Additional Note Board Resolutions or Additional Note
Supplemental Indenture issued therefor in accordance with this Indenture.

     “Affiliate” means, with respect to any specified Person, (i) any other
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person or (ii) any other Person
that owns, directly or indirectly, 10% or more of such Person’s equity
ownership or Voting Stock or any officer or director of any such Person or
other Person or with respect to any natural Person, any person having a
relationship with such Person by blood, marriage or adoption not more remote
than first cousin. For the purposes of this definition, “control” when used
with respect to any specified Person means the power to direct the management
and policies of such Person directly or indirectly, whether through
ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative to the foregoing.

2

 

     “Agent” means Wachovia Bank, N.A., the administrative agent under the
Senior Credit Facility, and its successors and assigns in such capacity.

     “Asset Sale” means any sale, issuance, conveyance, transfer, lease or
other disposition (including, without limitation, by way of merger,
consolidation or sale and leaseback transaction but not the grant of a pledge
or security interest) (collectively, a “transfer”), directly or indirectly, in
one or a series of related transactions, of (i) any Capital Stock of any
Restricted Subsidiary; (ii) all or substantially all of the properties and
assets of any division or line of business of Publishing or any of its
Restricted Subsidiaries; or (iii) any other properties or assets (other than
cash) of Publishing or any Restricted Subsidiary, other than in the ordinary
course of business. For the purposes of this definition, the term “Asset Sale”
shall not include (A) any transfer of properties and assets, in a single
transaction or series of related transactions, that is governed by the
provisions of Article VIII, (B) any transfer of properties and assets from any
Restricted Subsidiary to Publishing in accordance with the terms of this
Indenture, (C) any transfer of properties and assets, in a single transaction
or series of related transactions, having a market value of less than
$5,000,000 (it being understood that if the market value of the properties or
assets being transferred exceeds $5,000,000, the entire value and not just the
portion in excess of $5,000,000, shall be deemed to have been the subject of an
Asset Sale), (D) any transfer of properties and assets which are obsolete (in
the case of equipment) to Publishing’s and its Restricted Subsidiaries’
businesses, (E) any transfer of properties and assets to any Restricted
Subsidiary, and (F) any transfer of properties and assets from any Restricted
Subsidiary to any other Restricted Subsidiary.

     “Average Life to Stated Maturity” means, as of the date of determination
with respect to any Indebtedness, the quotient obtained by dividing (i) the sum
of the products of (a) the number of years from the date of determination to
the date or dates of each successive scheduled principal payment of such
Indebtedness multiplied by (b) the amount of each such principal payment by
(ii) the sum of all such principal payments.

     “Bankruptcy Law” means Title 11 of the United States Code, as amended, or
any similar United States federal or state or foreign law relating to
bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization
or relief of debtors or any amendment to, succession to or change in any such
law.

     “Board of Directors” means the board of directors of Publishing or any
duly authorized committee of such board.

     “Board Resolution” means a copy of a resolution certified by an officer of
Publishing to have been duly adopted by such Board of Directors of Publishing
or a duly authorized committee of such board and to be in full force and effect
on the date of such certification, and delivered to the Trustee.

     “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday
which is not a day on which banking institutions in The City of New York, or
the city in which the principal corporate trust office of the Trustee is
located (initially Wilmington, Delaware), are authorized or obligated by law or
executive order to close.

3

 

     “Business Opportunities Agreement” means the Business Opportunities
Agreement dated as of February 7, 1996, between Hollinger Inc. and Hollinger
International and any amendment, modification, or supplement thereto or
restatement thereof and any similar agreements entered into after the date of
the original issuance of the Notes in accordance with the terms of this
Indenture.

     “Capital Lease Obligation” of any Person means any obligation of such
Person and its subsidiaries on a consolidated basis under any capital lease of
real or personal property which, in accordance with GAAP, has been recorded as
a capitalized lease obligation.

     “Capital Stock” of any Person means any and all shares, interests,
participations or other equivalents (however designated) of such Person’s
capital stock and options, warrants or other rights to acquire such Person’s
capital stock.

     “Cash Equivalents” means (i) any evidence of Indebtedness with a maturity
of 180 days or less issued or directly and fully guaranteed or insured by the
United States of America or any agency or instrumentality thereof (provided,
that the full faith and credit of the United States of America is pledged in
support thereof); (ii) certificates of deposit or acceptances with a maturity
of 180 days or less of any financial institution that is a member of the
Federal Reserve System having combined capital and surplus and undivided
profits of not less than $500,000,000; (iii) commercial paper with a maturity
of 180 days or less issued by a corporation that is not an Affiliate of
Publishing organized under the laws of any state of the United States or the
District of Columbia and rated A-1 (or higher) according to S&P or P-1 (or
higher) according to Moody’s or at least an equivalent rating category of
another nationally recognized securities rating agency; (iv) any money market
deposit accounts issued or offered by a domestic commercial bank having capital
and surplus in excess of $500,000,000; and (v) repurchase agreements and
reverse repurchase agreements relating to marketable direct obligations issued
or unconditionally guaranteed by the government of the United States of America
or issued by any agency thereof and backed by the full faith and credit of the
United States of America, in each case maturing within 180 days from the date
of acquisition; provided, that the terms of such agreements comply with the
guidelines set forth in the Federal Financial Agreements of Depository
Institutions with Securities Dealers and Others, as adopted by the Comptroller
of the Currency on October 31, 1985.

     “Certificated Note” means any Note issued in registered certificated form
(other than a Global Note), which shall be substantially in the form of Exhibit
A, with appropriate legends as specified in Section 3.05 and Exhibit A.

     “Change of Control” means the occurrence of any of the following:

		
	 	     (a) there is a report filed on Schedule 13D, 14D-1 or 14D-1F (or any
successor schedule, form or report) pursuant to the Exchange Act,
disclosing that any person (for purposes of this definition, as the term
“person” is used in Section 13(d)(3) or Section 14(d)(2) of the Exchange
Act or any successor provision to either of the foregoing), other than
any person consisting solely of Lord Black (or his heirs, executors or
legal representatives) and his Affiliates, has become the beneficial
owner (as the term “beneficial owner” is defined under Rule 13d-3 or any
successor rule or regulation

4

 

		
	 	promulgated under the Exchange Act) of Voting Stock representing 50% or
more of the total voting power attached to all Voting Stock of Hollinger
Inc., Hollinger International or Publishing then outstanding; provided,
however, that a person shall not be deemed to be the beneficial owner of,
or to own beneficially, (i) any securities tendered pursuant to a tender
or exchange offer made by or on behalf of such person or any of such
person’s Affiliates until such tendered securities are accepted for
purchase or exchange thereunder, or (ii) any securities if such
beneficial ownership (A) arises solely as a result of a revocable proxy
delivered in response to a proxy or consent solicitation made pursuant to
applicable law, and (B) is not also then reportable on Schedule 13D (or
any successor schedule) under the Exchange Act;

		
	 	     (b) there is a report filed or required to be filed with any
securities commission or securities regulatory authority in Canada,
disclosing that any offeror (as the term “offeror” is defined in Section
89(1) of Securities Act (Ontario) for the purpose of Section 101 of such
Securities Act or any successor provision of the foregoing) other than
any person consisting solely of Lord Black (or his heirs, executors or
legal representatives) and his Affiliates, has acquired beneficial
ownership (within the meaning of the Securities Act (Ontario)) of, or the
power to exercise control or direction over, or securities convertible
into, any voting or equity shares of Hollinger Inc. that together with
such offeror’s securities (as the term “offeror’s securities” is defined
in Section 89(1) of the Securities Act (Ontario) or any successor
provision thereto in relation to the voting or equity shares of Hollinger
Inc.), would constitute Voting Stock of Hollinger Inc. representing 50%
or more of the total voting power attached to all Voting Stock of
Hollinger Inc. then outstanding;
	 
	 	     (c) Hollinger International shall cease to own, directly or
indirectly, 50% or more of the Voting Stock of Publishing (other than
upon a merger or consolidation of Hollinger International with or into
Publishing that is otherwise permitted in accordance with the terms of
this Indenture);
	 
	 	     (d) there is consummated a consolidation (involving a business
combination) or merger of Publishing or Hollinger International, as the
case may be, (i) in which Publishing or Hollinger International, as the
case may be, is not the continuing or surviving corporation or (ii)
pursuant to which any Voting Stock of Publishing or Hollinger
International, as the case may be, would be reclassified, changed or
converted into or exchanged for cash, securities or other property, other
than (in each case) a consolidation or merger of Publishing or Hollinger
International, as the case may be, in which the holders of the Voting
Stock of Publishing or Hollinger International, as the case may be,
immediately prior to the consolidation or merger have, directly or
indirectly, 50% or more of the Voting Stock of the continuing or
surviving corporation immediately after such transaction;
	 
	 	     (e) during any period of 12 consecutive months, individuals who at
the beginning of such period constituted the Board of Directors of
Hollinger International or Publishing (together with any new directors
whose election by such Board of Directors, or whose nomination for
election by the stockholders of Hollinger International or Publishing, as
the case may be, was approved by a vote of at least a majority of the

5

 

		
	 	directors then still in office who were either directors at the beginning
of such period or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority of
such Board of Directors then in office; or
	 
	 	     (f) Lord Black (or his heirs, executors and legal representatives)
and his Affiliates cease to beneficially own and control the voting of,
directly or indirectly, Voting Stock of Publishing or Hollinger
International representing a greater percentage of the total voting power
attached to the Voting Stock of Publishing or Hollinger International
than the percentage beneficially owned and controlled, directly or
indirectly, by any other single shareholder of Publishing or Hollinger
International together with its Affiliates (a “Designated Transaction”)
and there shall occur a Rating Decline.

     “Collateral” means any property, assets, proceeds or other items that may
be pledged as security for the Notes, whether pursuant to Section 10.11 or
otherwise.

     “Commission” means the Securities and Exchange Commission, as from time to
time constituted, created under the Exchange Act, or if at any time after the
execution of this Indenture such Commission is not existing and performing the
duties now assigned to it under the Trust Indenture Act, then the body
performing such duties at such time.

     “Consolidated Assets” means, with respect to Publishing, the total assets
shown on the balance sheet of Publishing and its Restricted Subsidiaries, as
determined on a consolidated basis in accordance with GAAP, as of Publishing’s
latest full fiscal quarter.

     “Consolidated Cash Flow Ratio” means, as at any date of determination, the
ratio of (i) the aggregate amount of Indebtedness of Publishing and the
Restricted Subsidiaries on a Consolidated basis outstanding as at such date to
(ii) the Operating Cash Flow of Publishing and the Restricted Subsidiaries
(determined on a Consolidated basis) for the most recently completed period of
four consecutive fiscal quarters of Publishing; provided that for the purpose
of determining the Consolidated Cash Flow Ratio, the Indebtedness and Operating
Cash Flow of Restricted Subsidiaries that are not Wholly Owned Restricted
Subsidiaries shall be determined in accordance with the actual percentage of
Publishing’s common equity interest in such Restricted Subsidiary on the date
of determination of the Consolidated Cash Flow Ratio (thus, for example, in the
case of a Restricted Subsidiary in which Publishing owns a 51% common equity
interest, 51% each of such Restricted Subsidiary’s Indebtedness and Operating
Cash Flow would be included in the calculation of Publishing’s aggregate
Indebtedness and Operating Cash Flow, respectively).

     “Consolidated Interest Expense” means, with respect to any period, the sum
of (i) the interest expense of Publishing and the Restricted Subsidiaries for
such period, determined on a Consolidated basis in accordance with GAAP,
including, without limitation, (a) amortization of debt discount, (b) the net
payments, if any, under interest rate contracts (including amortization of
discounts), (c) the interest portion of any deferred payment obligation and (d)
accrued interest, plus (ii) the interest component of Capital Lease Obligations
paid, accrued and/or scheduled to be paid or accrued by Publishing and the
Restricted Subsidiaries during such period, and all capitalized interest of
Publishing and the Restricted Subsidiaries, in each case as determined on a
Consolidated basis in accordance with GAAP.

6

 

     “Consolidated Net Income (Loss)” of Publishing and the Restricted
Subsidiaries means, for any period, the Consolidated net income (or loss (and
treating a loss as a negative number)) of Publishing and the Restricted
Subsidiaries for such period as determined in accordance with GAAP, adjusted by
(a) excluding, without duplication, to the extent included in calculating such
Consolidated Net Income (or Loss), (i) all extraordinary gains and losses, (ii)
the portion of Consolidated net income (or loss) of Publishing and its
Restricted Subsidiaries allocable to Investments in unconsolidated Persons
(other than Unrestricted Subsidiaries) to the extent that cash dividends or
distributions have not actually been received by such Person or one of its
Restricted Subsidiaries, (iii) the portion of Consolidated net income (or loss)
of Publishing and its Restricted Subsidiaries allocable to Publishing’s
Unrestricted Subsidiaries (or to payments received therefrom), (iv) the net
income (or loss) of any Person acquired during the specified period
attributable to any period prior to the date of such acquisition, (v) any gain
or loss, realized upon the termination of any employee pension benefit plan,
(vi) aggregate gains and losses (less all fees and expenses relating thereto)
in respect of dispositions of assets (including without limitation sales of
shares of Unrestricted Subsidiaries or unconsolidated Persons and noncash
writeoffs of assets (provided, that there are no continuing cash expenses
related to such writeoffs)) other than in the ordinary course of business,
(vii) the net income of any Restricted Subsidiary to the extent that the
declaration of dividends or similar distributions by that Restricted Subsidiary
of that income is not at the time permitted, directly or indirectly, by
operation of the terms of its charter or any agreement, instrument, judgment,
decree, order, statute, rule or governmental regulations applicable to that
Restricted Subsidiary or its stockholders, (viii) any gain from the collection
of proceeds of life insurance policies, (ix) any gain arising from the
acquisition of any securities, or the extinguishment, under GAAP, of any
Indebtedness of Publishing or one of its Restricted Subsidiaries, (x) aggregate
gains or losses relating to foreign currency transactions or translations and
(xi) redundancy costs relating to the elimination of jobs. In calculating the
Operating Cash Flow of Publishing and its Restricted Subsidiaries, the
Consolidated Net Income of Restricted Subsidiaries that are not Wholly Owned
Restricted Subsidiaries will be included only to the extent of Publishing’s
common equity interest in such Restricted Subsidiaries, as provided in the
definition of Operating Cash Flow.

     “Consolidated Net Worth” means the common and preferred stockholders’
equity of Publishing and its Restricted Subsidiaries (exclusive of any
redeemable capital stock), as determined on a Consolidated basis and in
accordance with GAAP.

     “Consolidated Tangible Assets” means the total assets appearing on a
Consolidated balance sheet of Publishing and its Restricted Subsidiaries less,
without duplication, each of the following: (i) all applicable depreciation,
amortization and other valuation reserves, (ii) all other intangible assets and
deferred charges, (iii) deferred income tax assets (to the extent recorded as
an asset) and (iv) all investments in unconsolidated subsidiaries (including
all Unrestricted Subsidiaries).

     “Consolidation” means, with respect to any Person, the consolidation of
the accounts of such Person and each of its subsidiaries if and to the extent
the accounts of such Person and each of its subsidiaries would normally be
consolidated with those of such Person, all in accordance with GAAP; provided,
however, that the accounts of any Unrestricted Subsidiary shall not be
consolidated with Publishing but instead the interest of Publishing or any
Restricted

7

 

Subsidiary therein will be accounted for as an investment on an equity basis.
The term “Consolidated” shall have a correlative meaning.

     “Corporate Trust Office” means the office of the Trustee or an affiliate
or agent thereof at which at any particular time the corporate trust business
for the purposes of this Indenture shall be principally administered, which
office at the date of execution of this Indenture is located at 920 King
Street, Suite 102, Wilmington, DE 19801.

     “CST Real Estate” means the real estate, including land, building and
fixtures, located at 401 North Wabash Avenue, Chicago, Illinois, where
Publishing currently maintains its headquarters, and all improvements thereon.

     “CST Real Estate Transaction” means the sale or other disposition (other
than to an Affiliate), including contribution to a new joint venture entity, of
all or any portion of the interest of Publishing or a Restricted Subsidiary in
the CST Real Estate.

     “Cumulative Credit” means (x) the Operating Cash Flow of Publishing and
the Restricted Subsidiaries (determined on a Consolidated basis) from and after
October 1, 2002 to the end of the fiscal quarter immediately preceding the date
of the proposed Restricted Payment, or, if such Operating Cash Flow for such
period is negative, minus the amount by which such Operating Cash Flow is
negative, less (y) 150% of Publishing’s cumulative Consolidated Interest
Expense for such period.

     “Currency Agreements” means one or more of the following agreements which
shall be entered into with one or more financial institutions: foreign exchange
contracts, currency swap agreements or other similar agreements or arrangements
designed to protect against fluctuations in currency values.

     “Default” means any event which is, or after notice or passage of time or
both would be, an Event of Default.

     “Designated Transaction” shall have the meaning assigned to such term in
paragraph (f) of the “Change of Control” definition.

     “Distribution Compliance Period” means, in respect of any Regulation S
Global Note, the 40 consecutive days beginning on and including the later of
(a) the day on which any Notes represented thereby are offered to persons other
than distributors (as defined in Regulation S under the Securities Act)
pursuant to Regulation S and (b) the issue date for such Notes.

     “Dollar Equivalent” means with respect to any monetary amount in a
currency other than U.S. dollars, at any time of determination thereof, the
amount of U.S. dollars obtained by converting such foreign currency involved in
such computation into U.S. dollars at the spot rate for the purchase of U.S.
dollars with the applicable foreign currency as published in The Wall Street
Journal in the “Exchange Rates” column under the heading “Currency Trading” on
the date two Business Days prior to such determination.

8

 

     “DTC” means The Depository Trust Company, its nominees and their
respective successors and assigns, or such other depositary institution
hereinafter appointed by Publishing that is a clearing agency registered under
the Exchange Act.

     “Event of Default” has the meaning specified in Article V.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Exchange Notes” means debt securities of Publishing, guaranteed by
Hollinger International, substantially identical in all material respects to
the Notes (except that the additional interest provisions and the transfer
restrictions pertaining to the Notes will be modified or eliminated, as
appropriate), to be issued pursuant to this Indenture.

     “Exchange Offer Registration Statement” shall have the meaning assigned to
such term in the Issue Date Registration Rights Agreement and any other
Registration Rights Agreement.

     “FDTH” means First DT Holdings Limited, a corporation under the laws of
England and its successors and assigns.

     “Generally Accepted Accounting Principles” or “GAAP” means generally
accepted accounting principles in the United States, consistently applied,
which are in effect on the date of this Indenture.

     “Global Note” means any Note issued in registered certificated form to DTC
(or its nominee), as depositary for the beneficial owners thereof, which shall
be substantially in the form of Exhibit A, with appropriate legends as
specified in Section 3.05 and Exhibit A.

     “Guarantee” means the guarantee by Hollinger International and, if the
context requires, by any Restricted Subsidiary of the Indenture Obligations.

     “Guaranteed Debt” of any Person means, without duplication, all
Indebtedness of any other Person referred to in the definition of Indebtedness
guaranteed directly or indirectly in any manner by such Person, or in effect
guaranteed directly or indirectly by such Person through an agreement (i) to
pay or purchase such Indebtedness or to advance or supply funds for the payment
or purchase of such Indebtedness (or to indemnify another Person for the costs
thereof), (ii) to purchase, sell or lease (as lessee or lessor) property, or to
purchase or sell services, primarily for the purpose of enabling the debtor to
make payment of such Indebtedness or to assure the holder of such Indebtedness
against loss, (iii) to supply funds to, or in any other manner invest in, the
debtor (including any agreement to pay for property or services without
requiring that such property be received or such services be rendered), (iv) to
maintain working capital or equity capital of the debtor, or otherwise to
maintain the net worth, solvency or other financial condition of the debtor or
(v) otherwise to assure a creditor against loss, provided, that the term
“guarantee” shall not include endorsements for collection or deposit, in either
case in the ordinary course of business.

     “Guarantor” means any guarantor of the Notes in accordance with the terms
of this Indenture, including Hollinger International.

9

 

     “Holder” means a Person in whose name a Note is registered in the Note
Register.

     “Hollinger International” means Hollinger International Inc., a
corporation incorporated under the laws of Delaware and a Guarantor of the
Indenture Obligations, until a successor Person shall have become such pursuant
to Article VIII of this Indenture and thereafter “Hollinger International”
shall mean such successor Person.

     “Incur” means create, issue, assume, guarantee or otherwise in any manner
become directly or indirectly liable for or with respect to or otherwise incur.

     “Indebtedness” means, with respect to any Person, without duplication, (i)
all indebtedness of such Person for borrowed money or for the deferred purchase
price of property or services (or other obligations to former owners of
acquired businesses), excluding any trade payables and other accrued current
liabilities arising in the ordinary course of business, but including, without
limitation, all obligations, contingent or otherwise, of such Person in
connection with any letters of credit issued under letter of credit facilities,
acceptance facilities or other similar facilities and in connection with any
agreement to purchase, redeem, exchange, convert or otherwise acquire for value
any Capital Stock of such Person, or any warrants, rights or options to acquire
such Capital Stock, now or hereafter outstanding, (ii) all obligations of such
Person evidenced by bonds, notes, debentures or other similar instruments,
(iii) all indebtedness created or arising under any conditional sale or other
title retention agreement with respect to property acquired by such Person
(even if the rights and remedies of the seller or lender under such agreement
in the event of default are limited to repossession or sale of such property),
but excluding trade payables arising in the ordinary course of business, (iv)
all obligations under Interest Rate Agreements and Currency Agreements of such
Person related to the settlement or termination of those agreements as of the
date of determination, (v) all Capital Lease Obligations of such Person, (vi)
all Indebtedness referred to in clauses (i) through (v) above of other Persons
and all dividends of other Persons, the payment of which is secured by (or for
which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien, upon or with respect to property
(including, without limitation, accounts and contract rights) owned by such
Person, even though such Person has not assumed or become liable for the
payment of such Indebtedness, (vii) all Guaranteed Debt of such Person, (viii)
all Redeemable Capital Stock and (without duplication) all Preferred Stock of
Restricted Subsidiaries other than Preferred Stock held by Restricted
Subsidiaries or Publishing, valued at the greater of its voluntary or
involuntary maximum fixed repurchase price plus accrued and unpaid dividends
and (ix) any amendment, supplement, modification, deferral, renewal, extension,
refunding or refinancing of any Indebtedness of the types referred to in
clauses (i) through (viii) above. For purposes hereof, the “maximum fixed
repurchase price” of any Redeemable Capital Stock or Preferred Stock which does
not have a fixed repurchase price shall be calculated in accordance with the
terms of such Redeemable Capital Stock or Preferred Stock as if such Redeemable
Capital Stock or Preferred Stock were purchased on any date on which
Indebtedness shall be required to be determined pursuant to this Indenture, and
if such price is based upon, or measured by, the fair market value of such
Redeemable Capital Stock or Preferred Stock, such fair market value to be
determined in good faith by the Board of Directors of such Person.

     “Indenture” means this instrument as originally executed (including all
exhibits and schedules thereto) and as it may from time to time be supplemented
or amended by one or

10

 

more indentures supplemental hereto entered into pursuant to the applicable
provisions hereof and shall include the terms of the Notes established as
contemplated by Section 2.01.

     “Indenture Obligations” means the obligations of Publishing under this
Indenture or under the Notes to pay principal of, premium, if any, and interest
when due and payable, and all other amounts due or to become due under or in
connection with this Indenture and the Notes, and the performance of all other
obligations to the Trustee, the Paying Agent and the holders under this
Indenture and the Notes, according to the terms thereof.

     “Independent Committee” means a committee of the board of directors of
Publishing whose membership meets the requirements of the New York Stock
Exchange applicable to audit committees as in effect on the date of original
issuance of the Notes or a committee of the board of directors of Publishing
whose membership satisfies any more restrictive requirements of independence of
any securities exchange or market on which Publishing’s or Hollinger
International’s equity securities are traded or listed.

     “Independent Director” means a member of the board of directors of a
Person that is not an officer, employee or former officer or employee of such
Person or one of its Affiliates and, with respect to any transaction or series
of related transactions, a member of the board of directors who does not have
any material direct or indirect financial interest in or with respect to such
transaction or series of related transactions (including for such purpose the
interest of any other Person with respect to whom such director is also a
director, officer or employee).

     “Interest Payment Date” means the Stated Maturity of a regular installment
of interest on the Notes or the Special Payment Date with respect to Defaulted
Interest.

     “Interest Rate Agreements” means one or more of the following agreements
which shall be entered into from time to time with one or more financial
institutions: interest rate protection agreements (including, without
limitation, interest rate swaps, caps, floors, collars and similar agreements)
and/or other types of interest rate hedging agreements.

     “Investment” means, with respect to any Person, directly or indirectly,
any advance, loan (including guarantees), or other extension of credit or
capital contribution to (by means of any transfer of cash or other property to
others or any payment for property or services for the account or use of
others), or any purchase, acquisition or ownership by such Person of any
Capital Stock, bonds, notes, debentures or other securities issued or owned by,
any other Person and all other items that are or would be classified as
investments on a balance sheet prepared in accordance with GAAP.

     “Issue Date” means the first date of issuance of Notes under this
Indenture.

     “Issue Date Notes” means the $300,000,000 aggregate principal amount of
Notes originally issued on the Issue Date, and any replacement Notes, Private
Exchange Notes and Exchange Notes, issued therefor in accordance with this
Indenture.

     “Issue Date Registration Rights Agreement” means the Registration Rights
Agreement dated December 16, 2002 by and among Publishing, Hollinger
International and Wachovia Securities, Inc., as initial purchaser.

11

 

     “Lien” means any mortgage, charge, pledge, lien (statutory or otherwise),
security interest, hypothecation or other encumbrance upon or with respect to
any property of any kind, real or personal, movable or immovable, now owned or
hereafter acquired.

     “Lord Black” means Lord Black of Crossharbour, PC(C), OC, KCSG.

     “Marketable Security” means any common stock, debt security or other
security of a Person which is (or will, upon distribution thereof, be) listed
on the NYSE, the American Stock Exchange or any national securities exchange
registered under Section 6 of the Securities Exchange Act of 1934, as amended,
or approved for quotation in the Nasdaq National Market or any similar system
of automated dissemination of quotations of securities prices in the United
States or for which there is a recognized market maker or trading market.

     “Material Restricted Subsidiary” means each Restricted Subsidiary of
Publishing which (i) for the most recent fiscal year of Publishing accounted
for more than 5% of the Consolidated revenues of Publishing and its Restricted
Subsidiaries or (ii) at the end of such fiscal year was the owner (beneficial
or otherwise) of more than 5% of the Consolidated Assets of Publishing and its
Restricted Subsidiaries, all as shown on Publishing’s Consolidated financial
statements for such fiscal year.

     “Maturity” when used with respect to any Note means the date on which the
principal of such Note becomes due and payable as therein provided or as
provided in this Indenture, whether at Stated Maturity, the Purchase Date or
the Redemption Date and whether by declaration of acceleration, Offer in
respect of Excess Proceeds, Change of Control, call for redemption or
otherwise.

     “Media Business” means the business of the broadcast of radio or
television broadcasting, cable and satellite programs (including national,
regional or local radio, television, cable and satellite programs).

     “Net Cash Proceeds” means (a) with respect to any Asset Sale by any
Person, the proceeds thereof in the form of cash or Cash Equivalents including
payments of principal and interest in respect of deferred payment obligations
when received in the form of, or stock or other assets when disposed of for,
cash or Cash Equivalents (except to the extent that such obligations are
financed or sold with recourse to Publishing or any Restricted Subsidiary) net
of (i) brokerage commissions and other reasonable fees and expenses (including
fees and expenses of counsel and investment bankers) related to such Asset
Sale, (ii) provisions for all taxes payable as a result of such Asset Sale,
(iii) payments made to retire indebtedness where payment of such indebtedness
is secured by the assets or properties the subject of such Asset Sale, (iv)
amounts required to be paid to any Person (other than Publishing or any
Restricted Subsidiary) owning a beneficial interest in the assets subject to
the Asset Sale and (v) appropriate amounts to be provided by Publishing or any
Restricted Subsidiary, as the case may be, as a reserve, in accordance with
GAAP, against any liabilities associated with such Asset Sale and retained by
Publishing or any Restricted Subsidiary, as the case may be, after such Asset
Sale, including, without limitation, pension and other post-employment benefit
liabilities, liabilities related to environmental matters and liabilities under
any indemnification obligations associated with such Asset Sale, all as
determined and reflected in an Officers’ Certificate delivered to the Trustee
and

12

 

(b) with respect to any issuance or sale of Capital Stock or options, warrants
or rights to purchase Capital Stock, or debt securities or Capital Stock that
have been converted into or exchanged for Capital Stock, as referred to in
Section 10.09, the proceeds of such issuance or sale in the form of Cash
Equivalents, including payments in respect of deferred payment obligations when
received in the form of, or stock or other assets when disposed of for, Cash
Equivalents (except to the extent that such obligations are financed or sold
with recourse to Publishing or any Restricted Subsidiary), net of attorneys’
fees, accountants’ fees and brokerage, consultation, underwriting and other
fees and expenses actually incurred in connection with such issuance or sale
and net of taxes paid or payable as a result thereof.

     “Newspaper Business” means the business of publishing, printing and/or
distributing (including distributing by electronic means) newspapers, magazines
and other paid or free publications having national, regional, local or
targeted markets, including publications having limited or no news or editorial
content such as shoppers or other “total market coverage” publications and
similar publications.

     “Note Custodian” means the custodian with respect to any Global Note
appointed by DTC, or any successor Person thereto, and shall initially be the
Trustee.

     “Notes” means any of Publishing’s 9% Senior Notes due 2010 issued and
authenticated pursuant to this Indenture.

     “9
1/4% Notes due 2006” means the 9 1/4% Senior Subordinated Notes due
2006 of Publishing governed by the indenture dated as of February 1, 1996 among
Publishing, Hollinger International, as guarantor, and Fleet National Bank, as
trustee.

     “9 1/4%
Notes due 2007” means the 9 1/4% Senior Subordinated Notes due
2007 of Publishing governed by the indenture dated as of March 18, 1997 among
Publishing, Hollinger International, as guarantor, and Fleet National Bank, as
trustee.

     “Officer” when used with respect to Publishing means the Chairman of the
Board, Vice Chairman, President or a Vice President (regardless of Vice
Presidential designation), Treasurer, Secretary or an Assistant Secretary of
Publishing.

     “Officers’ Certificate” means a certificate signed by the Chairman of the
Board, Vice Chairman, President or a Vice President (regardless of Vice
Presidential designation), and by the Treasurer, Secretary or an Assistant
Secretary, of Publishing, in form and substance reasonably satisfactory to, and
delivered to, the Trustee.

     “Operating Cash Flow” means, for any period, an amount equal to the
Consolidated Net Income of Publishing and the Restricted Subsidiaries for such
period, plus, to the extent deducted in calculating such Consolidated Net
Income, (a) interest expense and other financing costs and expenses for such
period, (b) dividends paid on any Preferred Stock of Restricted Subsidiaries to
the extent such Preferred Stock is included as Indebtedness in the calculation
of Publishing’s Consolidated Cash Flow Ratio, (c) depreciation and amortization
(including, without limitation, amortized telemarketing center costs), (d) all
taxes, whether or not deferred, expensed in such period and (e) other non-cash
expenses (other than any non-cash expense to the extent that it represents an
accrual of or reserve for cash expenses in any future

13

 

period or amortization of a prepaid cash expense that was paid in a prior
period) and all extraordinary and non-recurring expenses as determined in
accordance with GAAP.

     For purposes of calculating Operating Cash Flow for the four fiscal
quarters most recently completed prior to any date on which an action is taken
that requires a calculation of the Consolidated Cash Flow Ratio, (a) any Person
that is a Restricted Subsidiary on such date (or would become a Restricted
Subsidiary in connection with the transaction that requires the determination
of such ratio) shall be deemed to have been a Restricted Subsidiary at all
times during such period, (b) any Person that is not a Restricted Subsidiary on
such date (or would cease to be a Restricted Subsidiary in connection with the
transaction that requires the determination of such ratio) shall be deemed not
to have been a Restricted Subsidiary at any time during such period, (c) if
Publishing or any Restricted Subsidiary shall have in any manner acquired or
disposed of any operating business during or subsequent to such period, such
calculation shall be made on a pro forma basis on the assumption that such
acquisition or disposition has been completed on the first day of such period
and (d) in the case of a Restricted Subsidiary that is not a Wholly Owned
Restricted Subsidiary, the determination of the percentage of the Operating
Cash Flow of such Restricted Subsidiary that is to be included in the
calculation of Publishing’s Consolidated Cash Flow Ratio shall be made on a pro
forma basis on the assumption that the percentage of Publishing’s common equity
interest in such Restricted Subsidiary on the date of determination (it being
understood, in the case of foregoing clause (c), that if such pro forma
calculations shall have been made in accordance with Regulation S-X under the
Exchange Act, such method of calculation (but not necessarily the adjustments)
shall be presumed to be acceptable). For the purposes of Section 10.09, the
determination of the percentage of the Operating Cash Flow of a Restricted
Subsidiary that is not a Wholly Owned Restricted Subsidiary that is to be
included in the calculation of Operating Cash Flow shall be made on a quarter
by quarter basis based on the percentage of Publishing’s common equity interest
in such Restricted Subsidiary on the last day of each quarter during the
relevant period (it being understood that, if such pro forma calculations for a
quarter shall have been made in accordance with Regulation S-X under the
Exchange Act, such method of calculation (but not necessarily the adjustments)
shall be presumed to be acceptable).

     “Opinion of Counsel” means a written opinion of counsel, in form and
substance reasonably satisfactory to the Trustee, who may be counsel for
Publishing or the Trustee, and who shall be reasonably acceptable to the
Trustee, including but not limited to an Opinion of Independent Counsel.

     “Opinion of Independent Counsel” means a written opinion, in form and
substance reasonably satisfactory to the Trustee, by someone who is not an
employee or former employee of Publishing and who shall be reasonably
acceptable to the Trustee.

     “Outstanding” when used with respect to Notes means, as of the date of
determination, all Notes theretofore authenticated and delivered under this
Indenture, except:

		
	 	     (a) Notes theretofore cancelled by the Trustee or delivered to the
Trustee for cancellation;

14

 

		
	 	     (b) Notes, or portions thereof, for whose payment or redemption
money in the necessary amount has been theretofore irrevocably deposited
with the Trustee or any Paying Agent (other than Publishing) in trust or
set aside and segregated in trust by Publishing (if Publishing shall act
as its own Paying Agent) for the Holders of the Notes; provided, that if
the Notes are to be redeemed, notice of such redemption has been duly
given pursuant to this Indenture or provision therefor reasonably
satisfactory to the Trustee has been made;

		
	 	     (c) Notes, except to the extent provided in Sections 4.02 and 4.03,
with respect to which Publishing has effected defeasance or covenant
defeasance as provided in Article IV; and
	 
	 	     (d) Notes in exchange for or in lieu of which other Notes have been
authenticated and delivered pursuant to this Indenture, other than any
such Notes in respect of which there shall have been presented to the
Trustee and Publishing proof reasonably satisfactory to each of them that
such Notes are held by a bona fide purchaser in whose hands the Notes are
valid obligations of Publishing; provided, however, that in determining
whether the Holders of the requisite principal amount of Outstanding
Notes have given any request, demand, authorization, direction, notice,
consent or waiver hereunder, Notes owned by Publishing or any other
obligor upon the Notes or any Affiliate of Publishing or such other
obligor shall be disregarded and deemed not to be Outstanding, except
that, in determining whether the Trustee shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent
or waiver, only Notes which the Trustee actually knows to be so owned
shall be so disregarded. Notes so owned which have been pledged in good
faith may be regarded as outstanding if the pledgee establishes to the
reasonable satisfaction of the Trustee the pledgee’s right so to act with
respect to such Notes and that the pledgee is not Publishing or any other
obligor upon the Notes or any Affiliate of Publishing or such other
obligor.

     “Pari Passu Indebtedness” means any Indebtedness of Publishing that is
pari passu in right of payment with the Notes.

     “Paying Agent” means any Person authorized by Publishing to pay the
principal, premium, if any, or interest on any Notes on behalf of Publishing.
Publishing initially authorizes the Trustee to act as Paying Agent for the
Notes on its behalf. Publishing may at any time and from time to time
authorize one or more Persons to act as Paying Agent in addition to or in place
of the Trustee with respect to any Notes issued under this Indenture.

     “Permitted Distribution” means a distribution of $100,000,000 by
Publishing to Hollinger International on or about the Issue Date, to be used by
Hollinger International to repay all outstanding amounts under the Trilon Loan
Agreement and the Total Return Equity Swap (and upon which repayments the
Trilon Loan Agreement and the Total Return Equity Swap shall be terminated),
and for other general corporate purposes.

15

 

     “Permitted Indebtedness” means the following:

		
	 	     (i) Indebtedness of Publishing or any of its Restricted Subsidiaries
under the Senior Credit Facility in an aggregate principal amount at any
one time outstanding (including any refinancings thereof) not to exceed
$310,000,000 less the amount of any permanent repayment of any
Indebtedness under the Senior Credit Facility (and, in the case of
revolving credit Indebtedness, reduction of the related commitment
thereunder) pursuant to Section 10.13 of this Indenture;
	 
	 	     (ii) guarantees by, and Liens on the property of, any Restricted
Subsidiary guaranteeing or securing Indebtedness of Publishing or any of
its Restricted Subsidiaries under the Senior Credit Facility;
	 
	 	     (iii) Indebtedness of Publishing pursuant to the Notes issued on the
date of this Indenture and Indebtedness of any Restricted Subsidiary
constituting a Guarantee of the Notes;
	 
	 	     (iv) Indebtedness of Publishing or any Restricted Subsidiary
outstanding on the date of this Indenture and listed on Schedule I hereto
(including, until the date of redemption thereof, the 9 1/4% Notes due
2006 and 9 1/4% Notes due 2007);
	 
	 	     (v) Indebtedness (a) of Publishing owing to a Restricted Subsidiary,
or (b) of a Restricted Subsidiary owing to another Restricted Subsidiary
or Publishing; provided, that any such Indebtedness is made pursuant to
an intercompany note setting forth the principal amount, interest rate
and payment dates, the maturity or similar terms and, in the case of
Indebtedness of Publishing owing to a Restricted Subsidiary, is
subordinated in right of payment from and after such time as the Notes
shall become due and payable (whether at Stated Maturity, acceleration or
otherwise) to the payment and performance of Publishing’s obligations
under the Notes; provided, further that (x) any disposition, pledge or
transfer of any such Indebtedness to a Person (other than (A) to
Publishing or a Restricted Subsidiary or (B) a pledge of such
Indebtedness to secure Indebtedness existing at such time under, and
pursuant to the terms of, the Senior Credit Facility) will be deemed to
be an Incurrence of such Indebtedness by the obligor not permitted by
this clause (v) and (y) any transaction pursuant to which any Restricted
Subsidiary that has Indebtedness owing to Publishing or any other
Restricted Subsidiary, ceases to be a Restricted Subsidiary, will be
deemed to be the Incurrence of Indebtedness by Publishing or such other
Restricted Subsidiary that is not permitted by this clause (v);
	 
	 	     (vi) obligations of Publishing or any Restricted Subsidiary pursuant
to Interest Rate Agreements or Currency Agreements designed to protect
Publishing or any Restricted Subsidiary against fluctuations in interest
rates or currency exchange rates in respect of Indebtedness of Publishing
or any of its Restricted Subsidiaries, the notional amount of which (in
the case of Interest Rate Agreements) and the notional or exchange amount
of which (in the case of Currency Agreements) do not exceed the aggregate
principal amount of such Indebtedness;

16

 

		
	 	     (vii) guarantees by Restricted Subsidiaries of Pari Passu
Indebtedness of Publishing otherwise permitted to be Incurred in
accordance with the provisions of Section 10.08 and Section 10.12 of this
Indenture;

		
	 	     (viii) letter of credit reimbursement obligations Incurred by
Publishing or a Restricted Subsidiary in the ordinary course of business
to support workers’ compensation insurance obligations to the extent that
such obligations are recorded on the balance sheet of the issuer;
	 
	 	     (ix) any renewals, extensions, substitutions, refundings,
refinancings or replacements (collectively, a “refinancing”) of any
Indebtedness Incurred pursuant to the Consolidated Cash Flow Ratio test
set forth in the first paragraph of Section 10.08, or described in
paragraphs (ii), (iii), (iv), (vii), (x) and (xi) of this definition of
“Permitted Indebtedness” by Publishing or by the obligor of such
Permitted Indebtedness, including any successive refinancings, so long as
(a) such refinancing does not increase the aggregate principal amount of
Indebtedness represented thereby and, in the case of Pari Passu
Indebtedness or Subordinated Indebtedness, such refinancing does not
reduce the Average Life to Stated Maturity or the Stated Maturity of such
Indebtedness and (b) any such refinancing Indebtedness shall not be
senior in right of payment to the Indebtedness so refinanced;
	 
	 	     (x) Indebtedness of Publishing or any Restricted Subsidiary in an
aggregate amount at any time outstanding not to exceed $25,000,000 in
respect of purchase money obligations, provided such Indebtedness (a) is
Incurred within 180 days of the purchase of the relevant assets, (b) does
not exceed the actual purchase price of such assets and (c) any related
Liens do not extend to any assets other than those being purchased;
	 
	 	     (xi) Indebtedness (A) represented by guarantees by Publishing or any
of its Restricted Subsidiaries of Indebtedness incurred by West Ferry
Printers to purchase or lease printing equipment, and (B) incurred by
Telegraph Group to purchase the ordinary shares in West Ferry Printers
not owned by Telegraph Group as of the Issue Date, provided, that the
aggregate principal amount of Indebtedness at any one time outstanding
under such clauses (A) and (B) shall not exceed $60,000,000; and
	 
	 	     (xii) Indebtedness of Publishing or any Restricted Subsidiary in an
aggregate principal amount at any time outstanding not to exceed
$25,000,000.

     “Permitted Investment” means any of the following provided that, in the
case of clause (vii), (a) no Default or Event of Default shall have occurred
and be continuing, (b) no holders of any other Indebtedness of Publishing or
any Restricted Subsidiary shall have an Acceleration Right and (c) immediately
before and immediately after giving effect to such Investment, on a pro forma
basis, Publishing could Incur $1.00 of additional Indebtedness (other than
Permitted Indebtedness) under the provisions described in Section 10.08 of this
Indenture:

		
	 	     (i) Investments in any Restricted Subsidiary or Publishing or
Investments in a Person, if as a result of such Investment (A) such
Person becomes a Restricted Subsidiary, or (B) such Person is merged,
consolidated or amalgamated with or into, or

17

 

		
	 	transfers or conveys substantially all of its assets to, or is
liquidated into, Publishing or any Restricted Subsidiary;

		
	 	     (ii) Investments in the Notes;
	 
	 	     (iii) Indebtedness owing to a Restricted Subsidiary or Publishing as
described under clause (v) of the definition of “Permitted Indebtedness”;
	 
	 	     (iv) Temporary Cash Investments;
	 
	 	     (v) Investments acquired by Publishing or any Subsidiary in
connection with an Asset Sale permitted under Section 10.13 to the extent
such Investments are non-cash consideration as permitted under such
covenant;
	 
	 	     (vi) Investments in existence on the date of this Indenture;
	 
	 	     (vii) Investments in or in Persons owning Newspaper Business or
Media Business assets (including Investments in Unrestricted Subsidiaries
but excluding Investments in Affiliates that control Publishing) in an
aggregate amount following the date of this Indenture not in excess of
$30,000,000;
	 
	 	     (viii) Investments in (A) West Ferry Printers and Trafford Park
Printers to finance capital expenditures related to the printing
business; provided that at the time of any such Investment, neither West
Ferry Printers nor Trafford Park Printers shall be engaged in any
business other than the business of printing newspapers, periodicals and
similar media and (B) Paper Purchase & Management Limited to finance any
capital expenditure related to the business of sourcing or monitoring of
usage of newsprint; provided that at the time of any such Investment,
Paper Purchase & Management Limited shall not be engaged in any business
other than the business of sourcing or monitoring of usage of newsprint,
and provided further that such Investments in clauses (A) and (B) shall
not exceed an aggregate amount of $60,000,000;
	 
	 	     (ix) Investments in a new joint venture entity to be created for the
purpose of the CST Real Estate Transaction, provided that such
Investments shall not exceed the contribution of the CST Real Estate and
cash contributions in an aggregate amount of $2,000,000; and
	 
	 	     (x) in addition to the Investments described in clauses (i) through
(ix) of this definition of “Permitted Investments,” Investments in any
Unrestricted Subsidiary or in any joint venture or other entity in an
amount not to exceed $10,000,000 in the aggregate since the date of this
Indenture.

     “Permitted Liens” means:

		
	 	     (i) Liens for taxes, assessments, governmental charges or claims
that are being contested in good faith by appropriate legal proceedings
promptly instituted and diligently conducted and for which a reserve or
other appropriate provision, if any, as shall be required in conformity
with GAAP shall have been made;

18

 

		
	 	     (ii) statutory and common law Liens of landlords and carriers,
warehousemen, mechanics, suppliers, materialmen, repairmen or other
similar Liens (including maritime Liens) arising in the ordinary course
of business and with respect to amounts not yet delinquent or being
contested in good faith by appropriate legal proceedings promptly
instituted and diligently conducted and for which a reserve or other
appropriate provision, if any, as shall be required in conformity with
GAAP shall have been made;

		
	 	     (iii) Liens incurred or deposits made in the ordinary course of
business in connection with workers’ compensation, unemployment insurance
and other types of social security;
	 
	 	     (iv) Liens incurred or deposits made to secure the performance of
tenders, bids, leases, statutory or regulatory obligations, bankers’
acceptances, surety and appeal bonds, government contracts, performance
and return-of-money bonds and other obligations of a similar nature
incurred in the ordinary course of business (exclusive of obligations for
the payment of borrowed money);
	 
	 	     (v) easements, rights-of-way, municipal and zoning ordinances and
similar charges, encumbrances, title defects or other irregularities that
do not materially interfere with the ordinary course of business of
Publishing or any of its Restricted Subsidiaries;
	 
	 	     (vi) Liens (including extensions, renewals and replacements thereof)
upon real or personal property, including Capital Stock, acquired after
the Issue Date; provided, that (a) such Lien is created solely for the
purpose of securing Indebtedness Incurred, in accordance with clause (x)
of the definition of “Permitted Indebtedness”;
	 
	 	     (vii) Liens on property of, or on shares of Capital Stock or
Indebtedness of, any Person existing at the time such Person becomes, or
becomes a part of, any Restricted Subsidiary; provided, that such Liens
do not extend to or cover any property or assets of Publishing or any
Restricted Subsidiary other than the property or assets acquired;
	 
	 	     (viii) Liens in favor of Publishing or any Restricted Subsidiary;
	 
	 	     (ix) Liens securing reimbursement obligations with respect to
letters of credit that encumber documents and other property relating to
such letters of credit and the products and proceeds thereof;
	 
	 	     (x) Liens in favor of customs and revenue authorities arising as a
matter of law to secure payment of customs duties in connection with the
importation of goods;
	 
	 	     (xi) Liens encumbering customary initial deposits and margin
deposits, and other Liens that are within the general parameters
customary in the industry and incurred in the ordinary course of
business, in each case, securing Indebtedness under Interest Rate
Agreements and Currency Agreements; and
	 
	 	     (xii) Liens arising out of conditional sale, title retention,
consignment or similar arrangements for the sale of goods entered into by
Publishing or any of its Restricted Subsidiaries in the ordinary course
of business.

19

 

     “Permitted Real Estate Sale” means any Asset Sale not involving an
Affiliate of Publishing consisting of the sale of any printing or distribution
facility (including the associated real property and the improvements and
fixtures forming a part thereof) (other than the CST Real Estate) formerly used
by Publishing or a Restricted Subsidiary in the production of newspapers and
related publications (or acquired by one of them as part of the acquisition of
a Newspaper Business whether or not used by Publishing) and that after such
Asset Sale will not be used for the production of any newspaper or related
publication of Publishing or a Restricted Subsidiary, provided that the
aggregate value (as determined by the Board of Directors of Publishing) of all
such Asset Sales completed within any twelve month period shall not exceed
$5,000,000 (it being understood that this definition does not include, among
other things, any Asset Sale consisting of the sale of any printing or
distribution facility in connection with the sale by Publishing or any
Restricted Subsidiary of any Newspaper Business).

     “Permitted Subsidiary Indebtedness” means Indebtedness (other than
Permitted Indebtedness) of (A) any Restricted Subsidiary incurred under the
Senior Credit Facility, and (B) the Restricted Subsidiaries, taken as a whole,
with an aggregate principal amount outstanding at any one time not in excess of
$30,000,000.

     “Person” means any individual, corporation, limited liability company,
limited or general partnership, joint venture, association, joint stock
company, trust, unincorporated organization or government or any agency or
political subdivisions thereof.

     “Predecessor Note” of any particular Note means every previous Note
evidencing all or a portion of the same debt as that evidenced by such
particular Note; and, for the purposes of this definition, any Note
authenticated and delivered under Section 3.07 in exchange for a mutilated Note
or in lieu of a lost, destroyed or stolen Note shall be deemed to evidence the
same debt as the mutilated, lost, destroyed or stolen Note.

     “Preferred Stock” means, with respect to any Person, any Capital Stock of
any class or classes (however designated) which is preferred as to the payment
of dividends or distributions, or as to the distribution of assets upon any
voluntary or involuntary liquidation or dissolution of such Person, over the
Capital Stock of any other class in such Person.

     “Private Exchange Notes” shall have the meaning assigned to such term in
the Issue Date Registration Rights Agreement and any other Registration Rights
Agreement.

     “Public Equity Offering” means a public offering of Qualified Capital
Stock of Hollinger International (the proceeds of which are contributed to
Publishing) or Publishing.

     “Publishing” means Hollinger International Publishing Inc., a corporation
incorporated under the laws of Delaware, until a successor Person shall have
become such pursuant to Article VIII of this Indenture and thereafter
“Publishing” shall mean such successor Person. To the extent necessary to
comply with the requirements of the provisions of Trust Indenture Act Sections
310 through 317 as they are applicable to Publishing, the term “Publishing”
shall include any other obligor with respect to the Notes for purposes of
complying with such provisions, including any Guarantor.

20

 

     “Publishing Request” or “Publishing Order” means a written request or
order signed in the name of Publishing by any one of its Chairman of the Board,
its Vice Chairman, its President or a Vice President (regardless of Vice
Presidential designation), and by any one of its Treasurer, an Assistant
Treasurer, its Secretary or an Assistant Secretary, and in form and substance
reasonably satisfactory to the Trustee and delivered to the Trustee.

     “QIB” means any “qualified institutional buyer” (as defined in Rule 144A).

     “Qualified Capital Stock” of any Person means any and all Capital Stock of
such Person other than Redeemable Capital Stock.

     “Rating Agency” means Standard & Poor’s Ratings Services, a division of
The McGraw-Hill Companies, Inc. and its successors (“S&P”), and Moody’s
Investors Service, Inc. and its successors (“Moody’s”), or if S&P and Moody’s
or both shall not make a rating of the Notes publicly available, a nationally
recognized United States statistical rating agency or agencies, substituted for
S&P or Moody’s or both, as the case may be.

     “Rating Category” means each major rating category symbolized by (a) in
the case of S&P, AAA, AA, A, BBB, BB, B, CCC, CC and C and each such Rating
Category shall include pluses or minuses (“gradations”) modifying such capital
letters; and (b) in the case of Moody’s, Aaa, Aa, A, Baa, Ba, B, Caa, Ca and C
and each such Rating Category shall include added numerals such as 1, 2 or 3
(“gradations”) modifying such letters.

     “Rating Decline” means an event that will be deemed to have occurred if,
on any date within the period (the “Rating Period”) beginning on the date (the
“Reference Date”) of the earlier to occur of (A) the first public announcement
by Publishing or any other Person of an intention to effect any Designated
Transaction and (B) the occurrence of such Designated Transaction, and ending
on the date 90 days thereafter, either of the following events has occurred:
(1) the Notes (or any other securities of Publishing which are rated by a
Rating Agency on the date which is 61 days prior to the Reference Date (the
“Rating Date”)) shall be rated by any Rating Agency at any time during the
Rating Period at a rating which is lower than the rating of the Notes (or such
other securities of Publishing, as the case may be) by such Rating Agency on
the Rating Date by one or more gradations (including gradations within Rating
Categories as well as between Rating Categories) or (2) any Rating Agency shall
have withdrawn its rating of the Notes (or such other securities of Publishing,
as the case may be) during the Rating Period.

     “Redeemable Capital Stock” means any Capital Stock that, either by its
terms or by the terms of any security into which it is convertible or
exchangeable or otherwise, is, or upon the happening of an event or passage of
time would be, required to be redeemed prior to any Stated Maturity of the
principal of the Notes or is redeemable at the option of the holder thereof at
any time prior to any such Stated Maturity, or is convertible into or
exchangeable for debt securities at any time prior to any such Stated Maturity
at the option of the holder thereof.

     “Redemption Date” when used with respect to any Note to be redeemed
pursuant to any provision in this Indenture means the date fixed for such
redemption by or pursuant to this Indenture.

21

 

     “Redemption Price” when used with respect to any Note to be redeemed
pursuant to any provision in this Indenture means the price at which it is to
be redeemed pursuant to this Indenture.

     “Registered Exchange Offer” means an exchange offer by Publishing
registered under the Securities Act pursuant to which Notes originally issued
pursuant to an exemption from registration under the Securities Act are
exchanged for Notes of like principal amount not bearing the Private Placement
Legend.

     “Registration Rights Agreement” means any registration rights agreement
between Publishing, Hollinger International and one of more investment banks
acting as initial purchasers in connection with any issuance of Notes under
this Indenture, including the Issue Date Registration Rights Agreement.

     “Registration Statement” means an effective Exchange Offer Registration
Statement or Shelf Registration Statement.

     “Regular Record Date” for the interest payable on any Interest Payment
Date relating to a particular Note means the date specified in the Board
Resolution or supplemental indenture relating to such Note.

     “Resale Restriction Termination Date” means, for any Restricted Note that
is an Issue Date Note (or beneficial interest therein), two years (or such
other period specified in Rule 144(k) under the Securities Act) from the Issue
Date or, for any Additional Notes (or beneficial interests therein) that are
Restricted Notes, two years (or such other period specified in Rule 144(k))
from the latest such original issue date of such Additional Notes.

     “Responsible Officer” when used with respect to the Trustee means any
officer assigned to the Corporate Trust Division of the Trustee or any agent of
the Trustee appointed hereunder, including the president, any vice president,
any assistant vice president, the secretary, any assistant secretary, the
treasurer, any assistant treasurer, any trust officer or assistant trust
officer or any other officer of the Trustee customarily performing functions
similar to those performed by any of the above designated officers or any other
officer appointed hereunder to whom any corporate trust matter is referred
because of his or her knowledge of and familiarity with the particular subject.

     “Restricted Investment” means any Investment other than a Permitted
Investment.

     “Restricted Note” means any Issue Date Note (or beneficial interest
therein) or any Additional Note (or beneficial interest therein) not originally
issued and sold pursuant to an effective registration statement under the
Securities Act until such time as:

		
	 	     (i) such Issue Date Note (or beneficial interest therein) or
Additional Note (or beneficial interest therein) has been exchanged for a
corresponding Exchange Note pursuant to an Exchange Offer Registration
Statement or has been transferred pursuant to a Shelf Registration
Statement;

		
	 	     (ii) the Resale Restriction Termination Date therefor has passed;

22

 

		
	 	     (iii) such Note is a Regulation S Global Note and the Distribution
Compliance Period therefor has terminated; or

		
	 	     (iv) the Private Placement Legend therefor has otherwise been
removed pursuant to Section 3.06(d), in the case of a beneficial interest
in a Global Note, such beneficial interest has been exchanged for an
interest in a Global Note not bearing a Private Placement Legend.

     “Restricted
Subsidiary” means any Subsidiary other than an Unrestricted
Subsidiary.

     “Rule 144A” means Rule 144A under the Securities Act (or any successor
rule).

     “Securities Act” means the Securities Act of 1933, as amended.

     “Senior Credit Facility” means the Fifth Amended and Restated Credit
Agreement dated on or about December 23, 2002 among Publishing, FDTH, the
Telegraph Group, the financial institutions party thereto and Wachovia Bank,
N.A., as Agent, as such agreement may be amended, amended and restated,
renewed, extended, substituted, refinanced, restructured, replaced,
supplemented, waived, deferred or otherwise modified from time to time
(including, without limitation, any successive renewals, extensions,
substitutions, refinancings, restructurings, replacements, supplementations or
other modifications of the foregoing that increase the aggregate amount of
borrowings outstanding or the aggregate commitments of the lenders thereunder
or add other Restricted Subsidiaries as additional borrowers), in each case
whether with the same and/or different lenders and/or agents, and also
including all related notes, guarantees, security arrangements, pledge
arrangements, hedging arrangements and other instruments and agreements
executed in connection therewith.

     “Services Agreement” means the Services Agreement dated as of January 1,
1998, by and between Hollinger International and The Ravelston Corporation
Limited, and as the same may be further amended in accordance with the terms of
this Indenture.

     “Shelf Registration Statement” shall have the meaning assigned to such
term in the Issue Date Registration Rights Agreement and any other Registration
Rights Agreement.

     “Special Record Date” for the payment of any Defaulted Interest means a
date fixed by the Trustee pursuant to Section 3.08.

     “Stated Maturity” when used with respect to any Indebtedness or any
installment of interest thereon, means the dates specified in such Indebtedness
as the fixed date on which the principal of such Indebtedness or such
installment of interest, as the case may be, is due and payable.

     “Subordinated Indebtedness” means (i) in the case of any Person other than
Publishing, Indebtedness of such Person that is expressly subordinate in right
of payment to any other Indebtedness of such Person pursuant to a written
agreement, and (ii) in the case of Publishing, Indebtedness of Publishing that
is expressly subordinate in right of payment to the Notes.

23

 

     “Subsidiary” means any Person a majority of the equity ownership of the
Voting Stock of which is at the time owned, directly or indirectly, by
Publishing or by one or more Subsidiaries, or by Publishing and one or more
other Subsidiaries.

     “Tax Sharing Agreement” means an agreement providing for the payment of
amounts in lieu of income taxes among Publishing and other companies with which
it forms a single consolidated tax group for purposes of U.S. federal income
tax returns.

     “Telegraph Group” means Telegraph Group Limited (formerly The Telegraph
plc), a corporation under the laws of England.

     “Temporary Cash Investments” means (i) any evidence of Indebtedness,
maturing not more than one year after the date of acquisition, issued by the
United States of America, or an instrumentality or agency thereof, and
guaranteed fully as to principal, premium, if any, and interest by the United
States of America, (ii) any certificate of deposit, maturing not more than one
year after the date of acquisition, issued by, or time deposit of the Trustee
or a commercial banking institution that is a member of the Federal Reserve
System and that has combined capital and surplus and undivided profits of not
less than $500,000,000, whose debt has a rating, at the time as of which any
investment therein is made, of “P-1” (or higher) according to Moody’s or “A-1”
(or higher) according to S&P, (iii) commercial paper, maturing not more than
one year after the date of acquisition, issued by a corporation (other than an
Affiliate or Restricted Subsidiary of Publishing) organized and existing under
the laws of the United States of America with a rating, at the time as of which
any investment therein is made, of “P-1” (or higher) according to Moody’s or
“A-1” (or higher) according to S&P, and (iv) any money market deposit accounts
issued or offered by the Trustee or a domestic commercial bank having capital
and surplus in excess of $500,000,000.

     “Total Return Equity Swap” means, collectively, the forward share purchase
transactions between Hollinger International and certain counterparties,
entered into on October 1, 1998 and August 15, 2002, each evidenced by an ISDA
Master Agreement including the schedule thereto and a related confirmation for
an OTC Single Forward Share Purchase Transaction, as each may be amended from
time to time.

     “Trilon Loan Agreement” means that certain loan agreement dated as of
September 30, 2002 by and between Hollinger International and Trilon
International Inc.

     “Trustee” means the Person named as the “Trustee” in the first paragraph
of this Indenture, until a successor Trustee shall have become such pursuant to
the applicable provisions of this Indenture, and thereafter “Trustee” shall
mean such successor Trustee.

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended.

     “Unrestricted Subsidiary” means (a) as of the date of this Indenture,
Hollinger Canadian Publishing Holdings Co., XSTMHoldings LLC, Hollinger Digital
LLC and their respective Subsidiaries, and (b) any Subsidiary that is
designated by the Board of Directors as an Unrestricted Subsidiary after the
date of this Indenture pursuant to a Board Resolution in accordance with
Section 10.20 of this Indenture; provided, however, that a Person may not be
designated as an Unrestricted Subsidiary unless (i) the creditors of such
Person have no direct or

24

 

 indirect recourse (including, but not limited to, recourse with respect to
the payment of principal or interest on Indebtedness of such Subsidiary) to
Publishing or a Restricted Subsidiary and (ii) a default by such Person on any
of its Indebtedness will not result in, or permit any holder of Indebtedness of
Publishing or a Restricted Subsidiary to declare, a default on such
Indebtedness of Publishing or a Restricted Subsidiary or cause the payment
thereof to be accelerated or payable prior to its Stated Maturity. Any
subsidiary of an Unrestricted Subsidiary shall be an Unrestricted Subsidiary
for purposes of this Indenture.

     “Voting Stock” means stock of the class or classes pursuant to which the
holders thereof have the general voting power under ordinary circumstances to
elect at least a majority of the board of directors, managers or trustees of a
corporation (irrespective of whether or not at the time stock of any other
class or classes shall have or might have voting power by reason of the
happening of any contingency).

     “Wholly Owned Restricted Subsidiary” means a Restricted Subsidiary all the
outstanding Capital Stock (other than directors’ qualifying shares) of which
are owned by Publishing or another Wholly Owned Restricted Subsidiary.

     SECTION 1.02. Other Definitions.

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section
	
	 	

	“Act”
	 	 	1.05	 
	“Agent Members”
	 	 	3.04	 
	“Change of Control Offer”
	 	 	10.14	 
	“Change of Control Purchase Date”
	 	 	10.14	 
	“Change of Control Purchase Notice”
	 	 	10.14	 
	“Change of Control Purchase Price”
	 	 	10.14	 
	“covenant defeasance”
	 	 	4.03	 
	“Defaulted Interest”
	 	 	3.08	 
	“defeasance”
	 	 	4.02	 
	“Defeasance Redemption Date”
	 	 	4.04	 
	“Defeased Notes”
	 	 	4.01	 
	“Deficiency”
	 	 	10.13	 
	“Excess Proceeds”
	 	 	10.13	 
	“Non-U.S. Person”
	 	 	3.06	 
	“Note Amount”
	 	 	10.13	 
	“Note Register”
	 	 	3.03	 
	“Note Registrar”
	 	 	3.03	 
	“Offer”
	 	 	10.13	 
	“Offered Price”
	 	 	10.13	 
	“Pari Passu Debt Amount”
	 	 	10.13	 
	“Pari Passu Offer”
	 	 	10.13	 
	“Permitted Payment”
	 	 	10.09	 
	“Private Placement Legend”
	 	 	3.05	 
	“Purchase Date”
	 	 	10.13	 

25

 

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section
	
	 	

	“refinancing”
	 	 	10.09
	“Rule 144A Global Note”
	 	 	2.01(d)
	“Regulation S Global Note
	 	 	2.01(e)
	“Required Filing Dates”
	 	 	10.17
	“Restricted Payments”
	 	 	10.09
	“Senior Representative”
	 	 	12.03
	“Special Payment Date”
	 	 	3.08
	“Surviving Entity”
	 	 	8.01
	“U.S. Government Obligations”
	 	 	4.04

     SECTION 1.03. Compliance Certificates and Opinions. Upon any application
or request by Publishing to the Trustee to take any action under any provision
of this Indenture, Publishing shall furnish to the Trustee an Officers’
Certificate to the effect that all conditions precedent, if any, provided for
in this Indenture (including any covenant compliance with which constitutes a
condition precedent) relating to the proposed action have been complied with
and an Opinion of Counsel to the effect that in the opinion of such counsel all
such conditions precedent, if any, have been complied with, except that, in the
case of any such application or request as to which the furnishing of any
certificates and/or opinions is specifically required by any provision of this
Indenture relating to such particular application or request, no additional
certificate or opinion need be furnished.

     Every certificate or Opinion of Counsel with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

		
	 	     (a) a statement to the effect that each individual or firm signing
such certificate or opinion has read and understands such covenant or
condition and the definitions herein relating thereto;
	 
	 	     (b) a brief statement as to the nature and scope of the examination
or investigation upon which the statements or opinions contained in such
certificate or opinion are based;
	 
	 	     (c) a statement to the effect that, in the opinion of each such
individual or such firm, he has made such examination or investigation as
is necessary to enable him or them to express an informed opinion as to
whether or not such covenant or condition has been complied with; and
	 
	 	     (d) a statement as to whether, in the opinion of each such
individual or such firm, such condition or covenant has been complied
with.

     SECTION 1.04. Form of Documents Delivered to Trustee. In any case where
several matters are required to be certified by, or covered by an opinion of,
any specified Person, it is not necessary that all such matters be certified
by, or covered by the opinion of, only one such Person, or that they be so
certified or covered by only one document, but one such Person may certify or
give an opinion with respect to some matters and one or more other such Persons
as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

26

 

     Any certificate or opinion of an officer of Publishing may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any certificate or opinion of such an officer or of counsel may be
based, insofar as it relates to factual matters, upon a certificate or opinion
of, or representations by, an officer or officers of Publishing with respect to
such factual matters and which contains a statement to the effect that the
information with respect to such factual matters is in the possession of
Publishing, unless such officer or counsel knows that the certificate or
opinion or representations with respect to such matters are erroneous.
Opinions of Counsel required to be delivered to the Trustee may have
qualifications customary for opinions of the type required and counsel
delivering such Opinions of Counsel may rely on certificates of Publishing or
government or other officials customary for opinions of the type required,
including certificates certifying as to matters of fact, including that various
financial covenants have been complied with.

     Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

     SECTION 1.05. Acts of Holders. (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by Holders of any Notes may be embodied in and evidenced
by one or more instruments of substantially similar tenor signed by such
Holders in person or by an agent duly appointed in writing; and, except as
herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Trustee and, where it is
hereby expressly required, to Publishing. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of the Holders signing such instrument or instruments.
Proof of execution of any such instrument or of a writing appointing any such
agent shall be sufficient for any purpose of this Indenture and conclusive in
favor of the Trustee and Publishing, if made in the manner provided in this
Section.

     (b)  The ownership of Notes shall be proved by the Note Register.

     (c)  Any request, demand, authorization, direction, notice, consent, waiver
or other Act by the Holder of any Note shall bind every future Holder of the
same Note or the Holder of every Note issued upon the transfer thereof or in
exchange therefor or in lieu thereof, in respect of anything done, suffered or
omitted to be done by the Trustee, any Paying Agent or Publishing in reliance
thereon, whether or not notation of such action is made upon such Note.

     (d)  The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where
such execution is by a signer acting in a capacity other than his individual
capacity, such certificate of affidavit shall also constitute sufficient proof
of his authority. The

27

 

 fact and date of the execution of any such instrument or writing, or the
authority of the Person executing the same, may also be proved in any other
manner which the Trustee deems sufficient.

     SECTION 1.06. Notices, etc., to Trustee and Publishing. Any request,
demand, authorization, direction, notice, consent, waiver or Act of Holders or
other document provided or permitted by this Indenture to be made upon, given
or furnished to, or filed with:

		
	 	     (a) the Trustee by any Holder or by Publishing shall be sufficient
for every purpose hereunder if made, given, furnished or filed, in
writing, by first-class mail postage prepaid (return receipt requested)
or delivered in person or by recognized overnight courier to or with the
Trustee at its Corporate Trust Office, Attention: Corporate Trust
Division, or at any other address furnished in writing prior thereto to
the Holders and Publishing by the Trustee; or
	 
	 	     (b) Publishing or Hollinger International shall be sufficient for
every purpose (except as provided in Section 5.01(c)) hereunder if in
writing and mailed, first-class postage prepaid or delivered by
recognized overnight courier, to Publishing, addressed to it at: 401
North Wabash Avenue, Chicago, IL 60611, Attn: General Counsel or to
Hollinger International, addressed to it at: 401 North Wabash Avenue,
Chicago, IL 60611, Attn: General Counsel, or at any other address
previously furnished in writing to the Trustee by Publishing or Hollinger
International, as the case may be.

     SECTION 1.07. Notice to Holders; Waiver. Where this Indenture or the
Notes provide for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class postage prepaid, to each Holder affected by such event,
at such Holder’s address as it appears in the Note Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. In any case where notice to Holders is given by mail, neither
the failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders. Any notice when mailed to a Holder in the aforesaid manner
shall be conclusively deemed to have been received by such Holder whether or
not actually received by such Holder. Where this Indenture or the Notes
provide for notice in any manner, such notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event, and
such waiver shall be the equivalent of such notice. Waivers of notice by
Holders shall be filed with the Trustee, but such filing shall not be a
condition precedent to the validity of any action taken in reliance upon such
waiver.

     In case by reason of the suspension of regular mail service or by reason
of any other cause, it shall be impracticable to mail notice of any event as
required by any provision of this Indenture, then any method of giving such
notice as shall be reasonably satisfactory to the Trustee or Publishing, as
applicable, shall be deemed to be a sufficient giving of such notice.

     SECTION 1.08. Conflict with Trust Indenture Act. If any provision hereof
limits, qualifies or conflicts with any provision of the Trust Indenture Act or
another provision which is required or deemed to be included in this Indenture
by any of the provisions of the Trust Indenture Act, the provision or
requirement of the Trust Indenture Act shall control. If any provision of this
Indenture modifies or excludes any provision of the Trust Indenture Act that

28

 

 may be so modified or excluded, such provision of the Trust Indenture Act
shall be deemed to apply to this Indenture as so modified or to be excluded, as
the case may be.

     SECTION 1.09. Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

     SECTION 1.10. Successors and Assigns. All covenants and agreements in
this Indenture by Publishing or any Guarantor shall bind its successors and
assigns, whether so expressed or not.

     SECTION 1.11. Separability Clause. In case any provision in this
Indenture or in the Notes shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

     SECTION 1.12. Benefits of Indenture. Nothing in this Indenture or in the
Notes, express or implied, shall give to any Person (other than the parties
hereto and their successors hereunder, any Paying Agent and the Holders) any
benefit or any legal or equitable right, remedy or claim under this Indenture.

     SECTION 1.13. GOVERNING LAW. THIS INDENTURE AND THE NOTES SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF).

     SECTION 1.14. Legal Holidays. In any case where any Interest Payment
Date, Redemption Date or Stated Maturity of any Note shall not be a Business
Day, then (notwithstanding any other provision of this Indenture or of the
Notes) payment of interest or principal or premium, if any, need not be made on
such date, but may be made on the next succeeding Business Day with the same
force and effect as if made on the Interest Payment Date or Redemption Date, or
at Maturity or the Stated Maturity, and no interest shall accrue with respect
to such payment for the period from and after such Interest Payment Date,
Redemption Date, Maturity or Stated Maturity, as the case may be, to the next
succeeding Business Day.

     SECTION 1.15. Schedules and Exhibits. All schedules and exhibits attached
hereto are by this reference made a part hereof with the same effect as if
herein set forth in full.

     SECTION 1.16. Counterparts. This Indenture may be executed in any number
of counterparts, each of which shall be an original; but such counterparts
shall together constitute but one and the same instrument.

ARTICLE II

Form of Note

     SECTION 2.01. Form Generally. (a) The Notes will be issued in registered
form without coupons, and in denominations of $1,000 and any integral multiple
thereof.

29

 

     (b)  The terms and provisions of the Notes, the form of which is in Exhibit
A hereto, shall constitute, and are hereby expressly made, a part of this
Indenture, and, to the extent applicable, Publishing, Hollinger International
and the Trustee, by their execution and delivery of this Indenture expressly
agree to such terms and provisions and to be bound thereby. Except as
otherwise expressly permitted in this Indenture, all Notes shall be identical
in all respects. Notwithstanding any differences among them, all Notes issued
under this Indenture shall vote and consent together on all matters as one
class.

     (c)  The Notes may have notations, legends or endorsements as specified in
Section 3.05 or as otherwise required by law, stock exchange rule or DTC rule
or usage. Publishing and the Trustee shall approve the form of the Notes and
any notation, legend or endorsement on them. Each Note shall be dated the date
of its authentication.

     (d)  Notes originally offered and sold to QIBs in reliance on Rule 144A
will be issued in the form of one or more permanent Global Notes (each, a “Rule
144A Global Note”).

     (e)  Notes originally offered and sold outside the United States of America
will be issued in the form of one or more permanent Global Notes (each, a
“Regulation S Global Note”).

     SECTION 2.02. Form of Trustee’s Certificate of Authentication. The
Trustee’s certificate of authentication shall be included on the form of the
face of the Notes substantially in the following form:

TRUSTEE’S CERTIFICATE OF AUTHENTICATION.

     This is one of the Notes referred to in the within-mentioned Indenture.

	 	 	 
	 	
WACHOVIA TRUST COMPANY,
NATIONAL ASSOCIATION, as Trustee
	 	 	 
	 	By	

Authorized Signatory

     SECTION 2.03. Form of Guarantee of Hollinger International. The form of
Guarantee of Hollinger International shall be set forth on the Notes
substantially as follows:

GUARANTEE OF HOLLINGER INTERNATIONAL INC.

     For value received, HOLLINGER INTERNATIONAL INC., a Delaware corporation,
hereby absolutely, unconditionally and irrevocably guarantees to the holder of
this Note and the Trustee, as if Hollinger International were the principal
debtor, the punctual payment of principal of, premium, if any, and interest on
this Note in the amounts and at the time when due and interest on the overdue
principal and interest, if any, of this Note, if lawful, and the payment or
performance of all other obligations of Publishing under the Indenture or the
Notes, to the holder of this Note and the Trustee, all in accordance with and
subject to the terms and limitations of this Note and Article Thirteen of the
Indenture. This Guarantee will not become effective until the Trustee duly
executes the certificate of authentication on this Note.

30

 

	 	 	 
	

Attest: __________________________	 	
HOLLINGER INTERNATIONAL INC.

By ______________________________

     Authorized Signatory

ARTICLE III

The Notes

     SECTION 3.01. Execution, Authentication, Delivery and Dating. (a) The
Notes shall be executed on behalf of Publishing by one of its Chairman of the
Board, Vice-Chairman, President or one of its Vice Presidents under its
corporate seal reproduced thereon attested by its Secretary or one of its
Assistant Secretaries. The signature of any of these officers on the Notes may
be manual or facsimile.

     (b)  Notes bearing the manual or facsimile signatures of individuals who
were at any time the proper officers of Publishing shall bind Publishing,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices on the date of such Notes.

     (c)  At any time and from time to time after the execution and delivery of
this Indenture, Publishing may deliver Notes executed by Publishing to the
Trustee for authentication, together with a Publishing Order for the
authentication and delivery of such Notes; and the Trustee in accordance with
such Publishing Order shall authenticate and deliver such Notes as provided in
this Indenture and not otherwise. The aggregate principal amount of Notes that
may be authenticated and delivered under this Indenture is limited to
$450,000,000.

     (d)  Each Note shall be dated the date of its authentication.

     (e)  No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Note a
certificate of authentication substantially in the form provided for herein
duly executed by the Trustee by manual signature of an authorized signatory,
and such certificate upon any Note shall be conclusive evidence, and the only
evidence, that such Note has been duly authenticated and delivered hereunder
and is entitled to the benefits of this Indenture.

     (f)  In case Publishing, pursuant to Article VIII, shall be consolidated or
merged with or into any other Person or shall sell, convey, assign, transfer,
lease or otherwise dispose of substantially all of its properties and assets to
any Person, and the successor Person resulting from such consolidation, or
surviving such merger, or into which Publishing shall have been merged or
consolidated, or the successor Person which shall have received a conveyance,
transfer, lease or other disposition as aforesaid, shall have executed an
indenture supplemental hereto with the Trustee pursuant to Article VIII, any of
the Notes authenticated or delivered prior to such consolidation, merger,
conveyance, transfer, lease or other disposition may, from time to time, at the
request of the successor Person, be exchanged for other Notes executed in the
name of the successor Person with such changes in phraseology and form as may
be appropriate, but otherwise in substance of like tenor as the Notes
surrendered for such exchange and of like

31

 

 principal amount; and the Trustee, upon a Publishing Request of the
successor Person, shall authenticate and deliver Notes as specified in such
order for the purpose of such exchange. If Notes shall at any time be
authenticated and delivered in any new name of a successor Person pursuant to
this Section in exchange or substitution for or upon registration of transfer
of any Notes, such successor Person, at the option of a Holder but without
expense to such Holder, shall provide for the exchange of all Notes at the time
Outstanding held by such Holder for Notes authenticated and delivered in such
new name.

     (g)  The Trustee may appoint an authenticating agent reasonably acceptable
to Publishing to authenticate Notes on behalf of the Trustee. Unless limited
by the terms of such appointment, an authenticating agent may authenticate
Notes whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as any Note Registrar or Paying Agent
to deal with Publishing and its Affiliates.

     SECTION 3.02. Temporary Notes. Pending the preparation of definitive
Notes, Publishing may execute, and upon a Publishing Order the Trustee shall
authenticate and deliver, temporary Notes which are printed, lithographed,
typewritten or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Notes in lieu of which they are
issued and with such appropriate insertions, omissions, substitutions and other
variations as the officers executing such Notes may determine, as conclusively
evidenced by their execution of such Notes.

     If temporary Notes are issued, Publishing will cause definitive Notes to
be prepared without unreasonable delay. After the preparation of definitive
Notes, the temporary Notes shall be exchangeable for definitive Notes upon
surrender of the temporary Notes at the office or agency of Publishing
designated for such purpose pursuant to Section 10.02 (or in accordance with
Section 3.01, in the case of the initial Notes), without charge to the Holders
thereof. Upon surrender for cancellation of any one or more temporary Notes,
Publishing shall execute and upon a Publishing Order the Trustee shall
authenticate and deliver in exchange therefor a like principal amount of
definitive Notes of authorized denominations. Until so exchanged the temporary
Notes shall in all respects be entitled to the same benefits under this
Indenture as definitive Notes.

     SECTION 3.03. Registration, Registration of Transfer and Exchange.
Publishing shall cause to be kept at the Corporate Trust Office of the Trustee,
or such other office as the Trustee may designate, a register (the register
maintained in such office and in any other office or agency designated pursuant
to Section 10.02 being herein sometimes referred to as the “Note Register”) in
which, subject to such reasonable regulations as the Note Registrar may
prescribe, Publishing shall provide for the registration of Notes and of
transfers of Notes. The Trustee or an agent thereof or of Publishing shall
initially be the “Note Registrar” for the purpose of registering Notes and
transfers of Notes as herein provided. Publishing may appoint one or more
co-registrars, but there shall be only one Note Register.

     Upon surrender for registration of transfer of any Note at the office or
agency of Publishing designated pursuant to Section 10.02, Publishing shall
execute, and the Trustee shall

32

 

 authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Notes of any authorized denomination or
denominations, of a like aggregate principal amount.

     At the option of the Holder, Notes may be exchanged for other Notes of any
authorized denomination or denominations, of a like aggregate principal amount,
upon surrender of the Notes to be exchanged at such office or agency. Whenever
any Notes are so surrendered for exchange, Publishing shall execute, and the
Trustee shall authenticate and deliver, the Notes which the Holder making the
exchange is entitled to receive.

     All Notes issued upon any registration of transfer or exchange of Notes
shall be the valid obligations of Publishing, evidencing the same Indebtedness,
and entitled to the same benefits under this Indenture, as the Notes
surrendered upon such registration of transfer or exchange.

     Every Note presented or surrendered for registration of transfer, or for
exchange or redemption, shall (if so required by Publishing or the Trustee) be
duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to Publishing, the Trustee and the Note Registrar, duly executed
by the Holder thereof or such Holder’s attorney duly authorized in writing.

     No service charge shall be made to a Holder for any registration of
transfer, exchange or redemption of Notes, but Publishing may require payment
of a sum sufficient to pay any tax or other governmental charges that may be
imposed in connection with any registration of transfer, exchange or redemption
of Notes (other than any such governmental charges payable upon exchange or
transfer pursuant to a Registered Exchange Offer or pursuant to Section 3.01,
3.02, 3.07, 9.06, 10.14, 10.15 or 11.08 not involving any transfer).

     Publishing shall not be required (a) to issue, register the transfer of or
exchange any Note during a period beginning at the opening of business 15 days
before the mailing of a notice of redemption of the Notes selected for
redemption under Section 11.04 and ending at the close of business on the day
of such mailing, or (b) to register the transfer of or exchange any Note so
selected for redemption in whole or in part, except the unredeemed portion of
Notes being redeemed in part.

     None of Publishing, the Trustee, any agent of the Trustee, any Paying
Agent or the Note Registrar will have any responsibility or liability for any
aspect of the records relating to or payments made on account of beneficial
ownership interests in a Global Note or for maintaining, supervising or
reviewing any records relating to such beneficial ownership interests.

     SECTION 3.04. Global Note Provisions (a) Each Global Note initially
shall: (i) be registered in the name of DTC or the nominee of DTC, (ii) be
delivered to the Note Custodian, and (iii) bear the appropriate legend, as set
forth in Section 3.05 and Exhibit A. Any Global Note may be represented by
more than one certificate. The aggregate principal amount of each Global Note
may from time to time be increased or decreased by adjustments made on the
records of the Note Custodian, as provided in this Indenture.

     (b)  Members of, or participants in, DTC (“Agent Members”) shall have no
rights under this Indenture with respect to any Global Note held on their
behalf by DTC or by the Note

33

 

 Custodian under such Global Note, and DTC may be treated by Publishing,
the Trustee, the Paying Agent and the Note Registrar and any of their agents as
the absolute owner of such Global Note for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent Publishing, the
Trustee, the Paying Agent or the Note Registrar or any of their agents from
giving effect to any written certification, proxy or other authorization
furnished by DTC or impair, as between DTC and its Agent Members, the operation
of customary practices of DTC governing the exercise of the rights of an owner
of a beneficial interest in any Global Note. The registered Holder of a Global
Note may grant proxies and otherwise authorize any person, including Agent
Members and persons that may hold interests through Agent Members, to take any
action that a Holder is entitled to take under this Indenture or the Notes.

     (c)  Except as provided below, owners of beneficial interests in Global
Notes will not be entitled to receive Certificated Notes. Certificated Notes
shall be issued to all owners of beneficial interests in a Global Note in
exchange for such interests if:

		
	 	     (i) DTC notifies Publishing that it is unwilling or unable to
continue as depositary for such Global Note or DTC ceases to be a
clearing agency registered under the Exchange Act, at a time when DTC is
required to be so registered in order to act as depositary, and in each
case a successor depositary is not appointed by Publishing within 90 days
of such notice,
	 
	 	     (ii) Publishing executes and delivers to the Trustee and Note
Registrar an Officers’ Certificate stating that such Global Note shall be
so exchangeable, or
	 
	 	     (iii) an Event of Default has occurred and is continuing and the
Note Registrar has received a request from DTC.

In connection with the exchange of an entire Global Note for Certificated Notes
pursuant to this paragraph (c), such Global Note shall be deemed to be
surrendered to the Trustee for cancellation, and Publishing shall execute, and
upon Publishing Order the Trustee shall authenticate and deliver, to each
beneficial owner identified by DTC in exchange for its beneficial interest in
such Global Note, an equal aggregate principal amount of Certificated Notes of
authorized denominations.

     (d)  In connection with the exchange of a portion of a Certificated Note
for a beneficial interest in a Global Note, the Trustee shall cancel such
Certificated Note, and Publishing shall execute, and the Trustee shall
authenticate and deliver to the exchanging Holder, a new Certificated Note
representing the principal amount not so exchanged unless such principal amount
is to be exchanged for a beneficial interest in a Global Note pursuant to
Section 3.06(d).

     SECTION 3.05. Legends. (a) Each Global Note shall bear the legend
specified therefor in Exhibit A on the face thereof.

     (b) Each Restricted Note shall bear the private placement legend specified
therefor in Exhibit A on the face thereof (“Private Placement Legend”).

34

 

     SECTION
3.06. Special Transfer Provisions (a) The following provisions
shall apply with respect to any proposed transfer of an interest in a Rule 144A
Global Note that is a Restricted Note: If (1) the owner of a beneficial
interest in a Rule 144A Global Note wishes to transfer such interest (or
portion thereof) to a non-U.S. person (“Non-U.S. Person”) pursuant to
Regulation S and (2) such Non-U.S. Person wishes to hold its interest in the
Notes through a beneficial interest in the Regulation S Global Note,

     (i)  upon receipt by the Note Custodian and Note Registrar of:

		
	 	     (A) instructions from the Holder of the Rule 144A Global Note
directing the Note Custodian and Note Registrar to credit or cause to be
credited a beneficial interest in the Regulation S Global Note equal to
the principal amount of the beneficial interest in the Rule 144A Global
Note to be transferred, and
	 
	 	     (B) a certificate in the form of Exhibit C from the transferor, and

     (ii)  subject to the rules and procedures of DTC, the Note Custodian and
Note Registrar shall increase the Regulation S Global Note and decrease the
Rule 144A Global Note by such amount in accordance with the foregoing.

     (b)  If the owner of an interest in a Regulation S Global Note wishes to
transfer such interest (or any portion thereof) to a QIB pursuant to Rule 144A
prior to the expiration of the Distribution Compliance Period therefor,

		
	     (i) upon receipt by the Note Custodian and Note Registrar of:

		
	 	     (A) instructions from the Holder of the Regulation S Global Note
directing the Note Custodian and Note Registrar to credit or cause to be
credited a beneficial interest in the Rule 144A Global Note equal to the
principal amount of the beneficial interest in the Regulation S Global
Note to be transferred, and

		
	 	     (B) a certificate in the form of Exhibit B duly executed by the
transferor, and

     (ii)  in accordance with the rules and procedures of DTC, the Note
Custodian and Note Registrar shall increase the Rule 144A Global Note and
decrease the Regulation S Global Note by such amount in accordance with the
foregoing.

     (c)  Other Transfers. Any transfer of Restricted Notes not described above
(other than a transfer of a beneficial interest in a Global Note that does not
involve an exchange of such interest for a Certificated Note or a beneficial
interest in another Global Note, which must be effected in accordance with
applicable law and the rules and procedures of DTC, but is not subject to any
procedure required by this Indenture) shall be made only upon receipt by the
Note Registrar of such opinions of counsel, certificates and/or other
information reasonably required by and satisfactory to it in order to ensure
compliance with the Securities Act or in accordance with Section 3.06(d).

     (d)  Use and Removal of Private Placement Legends. Upon the transfer,
exchange or replacement of Notes (or beneficial interests in a Global Note) not
bearing (or not required to

35

 

 bear upon such transfer, exchange or replacement) a Private Placement
Legend, the Note Custodian and Note Registrar shall exchange such Notes (or
beneficial interests) for beneficial interests in a Global Note (or
Certificated Notes if they have been issued pursuant to Section 3.04(c)) that
does not bear a Private Placement Legend. Upon the transfer, exchange or
replacement of Notes (or beneficial interests in a Global Note) bearing a
Private Placement Legend, the Note Custodian and Note Registrar shall deliver
only Notes (or beneficial interests in a Global Note) that bear a Private
Placement Legend unless:

		
	 	     (i) such Notes (or beneficial interests) are exchanged in a
Registered Exchange Offer;
	 
	 	     (ii) such Notes (or beneficial interests) are transferred pursuant
to a Shelf Registration Statement;
	 
	 	     (iii) such Notes (or beneficial interests) are transferred pursuant
to Rule 144 under the Securities Act upon delivery to the Note Registrar
of a certificate of the transferor in the form of Exhibit D and an
Opinion of Counsel reasonably satisfactory to the Note Registrar;
	 
	 	     (iv) such Notes (or beneficial interests) are transferred, replaced
or exchanged after the Resale Restriction Termination Date therefor; or
	 
	 	     (v) in connection with such transfer, exchange or replacement the
Note Registrar shall have received an Opinion of Counsel and other
evidence reasonably satisfactory to it and Publishing to the effect that
neither such Private Placement Legend nor the related restrictions on
transfer are required in order to maintain compliance with the provisions
of the Securities Act.

     The Private Placement Legend on any Note shall be removed at the request of the
Holder on or after the Resale Restriction Termination Date therefor. The
Holder of a Global Note may exchange an interest therein for an equivalent
interest in a Global Note not bearing a Private Placement Legend (other than a
Regulation S Global Note) upon transfer of such interest pursuant to any of
clauses (i) through (v) of this paragraph (d). Publishing shall deliver to the
Trustee an Officers’ Certificate promptly upon effectiveness, withdrawal or
suspension of any Registration Statement.

     (e)  Consolidation of Global Notes and Exchange of Certificated Notes for
Beneficial Interests in Global Notes. If a Global Note not bearing a Private
Placement Legend (other than a Regulation S Global Note) is Outstanding at the
time of a Registered Exchange Offer, any interests in a Global Note exchanged
in such Registered Exchange Offer shall be exchanged for interests in such
Outstanding Global Note.

     (f)  Retention of Documents. The Note Registrar shall retain copies of all
letters, notices and other written communications received pursuant to this
Article III. Publishing shall have the right to inspect and make copies of all
such letters, notices or other written communications at any reasonable time
upon the giving of reasonable written notice to the Note Registrar.

36

 

          (g)   Execution, Authentication of Notes, etc. Subject to the other
provisions of this Section, when Notes are presented to the Note Registrar with
a request to register the transfer of such Notes or to exchange such Notes for
an equal principal amount of Notes of other authorized denominations, the Note
Registrar shall register the transfer or make the exchange as requested if its
requirements for such transaction are met; provided that any Notes presented or
surrendered for registration of transfer or exchange shall be duly endorsed or
accompanied by a written instrument of transfer in form satisfactory to the
Note Registrar, duly executed by the Holder thereof or his attorney duly
authorized in writing. To permit registrations of transfers and
exchanges and subject to the other terms and conditions of this Article
III, Publishing will execute and upon Publishing Order, the Trustee will
authenticate Certificated Notes and Global Notes at the Note Registrar’s
request. In accordance with the Issue Date Registration Rights Agreement, upon
the effectiveness of any Exchange Offer Registration Statement, Publishing will
execute and upon Publishing Order, the Trustee will authenticate Exchange Notes
or Private Exchange Notes, as the case may be, in exchange for Issue Date
Notes. In accordance with a Registration Rights Agreement in respect of
Additional Notes, upon the effectiveness of any Exchange Offer Registration
Statement in respect of such Additional Notes, Publishing will execute and upon
Publishing Order, the Trustee will authenticate Exchange Notes in exchange for
such Additional Notes.

          (h)   No Obligation of the Trustee.

		
	 	          (i)   The Trustee shall have no responsibility or obligation to any
beneficial owner of an interest in a Global Note, a member of, or a
participant in, DTC or other Person with respect to the accuracy of the
records of DTC or its nominee or of any participant or member thereof,
with respect to any ownership interest in the Notes or with respect to
the delivery to any participant, member, beneficial owner or other Person
(other than DTC) of any notice (including any notice of redemption) or
the payment of any amount or delivery of any Notes (or other security or
property) under or with respect to such Notes. All notices and
communications to be given to the Holders and all payments to be made to
Holders in respect of the Notes shall be given or made only to or upon
the order of the registered Holders (which shall be DTC or its nominee in
the case of a Global Note). The rights of beneficial owners in any
Global Note shall be exercised only through DTC subject to the applicable
rules and procedures of DTC. The Trustee may rely and shall be fully
protected in relying upon information furnished by DTC with respect to
its members, participants and any beneficial owners.

		
	 	          (ii)   The Trustee shall have no obligation or duty to monitor,
determine or inquire as to compliance with any restrictions on transfer
imposed under this Indenture or under applicable law with respect to any
transfer of any interest in any Note (including any transfers between or
among DTC participants, members or beneficial owners in any Global Note)
other than to require delivery of such certificates and other
documentation or evidence as are expressly required by, and to do so if
and when expressly required by, the terms of this Indenture, and to
examine the same to determine substantial compliance as to form with the
express requirements hereof.

          SECTION 3.07.   Mutilated, Destroyed, Lost or Stolen Notes. If (a) any
mutilated Note is surrendered to the Trustee, or (b) Publishing and the Trustee
receive evidence to their

37

 

satisfaction of the destruction, loss or theft of any
Note, and there is delivered to Publishing or the Trustee, such security and/or
indemnity, in each case as may be required by them to save each of them
harmless, then, in the absence of notice to Publishing or the Trustee that such
Note has been acquired by a bona fide purchaser, Publishing shall execute and
upon receipt of a Publishing Order the Trustee shall authenticate and deliver,
in exchange for any such mutilated Note or in lieu of any such destroyed,
lost or stolen Note, a replacement Note of like tenor and principal amount,
bearing a number not contemporaneously outstanding.

          In case any such mutilated, destroyed, lost or stolen Note has become or
is about to become due and payable, Publishing in its discretion may, instead
of issuing a replacement Note, pay such Note.

          Upon the issuance of any replacement Notes under this Section, Publishing
may require the payment of a sum sufficient to pay all documentary, stamp or
similar issue or transfer taxes or other governmental charge that may be
imposed in relation thereto and any other expenses (including the fees and
expenses of the Trustee and its agents and counsel) connected therewith.

          Every replacement Note issued pursuant to this Section in lieu of any
destroyed, lost or stolen Note shall constitute an original additional
contractual obligation of Publishing, whether or not the destroyed, lost or
stolen Note shall be at any time enforceable by anyone, and shall be entitled
to all benefits of this Indenture equally and proportionately with any and all
other Notes duly issued hereunder.

          The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Notes.

          SECTION 3.08. Payment of Interest; Interest Rights Preserved. Interest on
any Note which is payable, and is punctually paid or duly provided for, on the
Stated Maturity of such interest shall be paid to the Person in whose name that
Note is registered at the close of business on the Regular Record Date for such
interest payment.

          Any interest on any Note which is payable, but is not paid or duly
provided for on the Stated Maturity of such interest (or within 15 days after
the Stated Maturity of such interest) and interest on such defaulted interest
at the then applicable interest rate borne by the Notes, to the extent lawful
(such defaulted interest and interest thereon herein collectively called
“Defaulted Interest”), shall forthwith cease to be payable to the Holder in
whose name such Note is registered as of the Regular Record Date; and such
Defaulted Interest may be paid by Publishing, at its election in each case, as
provided in Subsection (a) or (b) below:

		
	 	     (a) Publishing may elect to make payment of any Defaulted Interest
to the Persons in whose names the Notes are registered at the close of
business on a Special Record Date for the payment of such Defaulted
Interest, which shall be fixed in the following manner.
	 
	 	     Publishing shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Note and the date of the
proposed payment (the “Special

38

 

		
	 	Payment Date”), and at the same time
Publishing shall irrevocably deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such
Defaulted Interest or shall make arrangements satisfactory to the Trustee
for such deposit prior to the Special Payment Date, such money when
deposited to be held in trust for the benefit of the Persons entitled to
such Defaulted Interest as in this Subsection provided. Such notice
shall be received by the Trustee no less than 30 days prior to the
Special Payment Date. Thereupon the Trustee shall fix a Special Record
Date for the payment of such Defaulted Interest which Special Record Date
shall be not more than 15 days and not less than 10 days prior to the
Special Payment Date and not less than 10 days after the receipt by the
Trustee of the notice of the proposed payment. The Trustee shall
promptly notify Publishing in writing of such Special Record Date. In
the name and at the expense of Publishing, the Trustee shall cause notice
of the proposed payment of such Defaulted Interest and the Special Record
Date and Special Payment Date therefor to be mailed, certified or
registered (return receipt requested) first-class postage prepaid, to
each Holder at his address as it appears in the Note Register, not less
than 10 days prior to such Special Record Date. Notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor
having been so mailed, such Defaulted Interest shall be paid to the
Persons in whose names the Notes are registered on such Special Record
Date and shall no longer be payable pursuant to the following Subsection
(b).
	 
	 	     (b) Publishing may make payment to the Persons in whose name the
Notes are registered at the close of business on the Special Record Date
of any Defaulted Interest in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Notes may
be listed, and upon such notice as may be required by such exchange,
unless, after written notice given by Publishing to the Trustee of the
proposed payment pursuant to this Subsection, such manner of payment
shall not be deemed practicable by the Trustee (acting reasonably). The
Trustee shall give prompt written notice to Publishing of any such
determination.

          Subject to the foregoing provisions of this Section, each Note delivered
under this Indenture upon registration of transfer of or in exchange for or in
lieu of any other Note shall carry the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Note.

          SECTION 3.09. Persons Deemed Owners. Prior to due presentment of a Note
for registration of transfer, Publishing, the Trustee and any agent of
Publishing or the Trustee may treat the Person in whose name any Note is
registered on the Note Register as the owner of such Note for the purpose of
receiving payment of principal of, premium, if any, and (subject to Section
3.08) interest on such Note and for all other purposes whatsoever, whether or
not such Note is overdue, and none of Publishing, the Trustee or any agent of
Publishing or the Trustee shall be affected by notice to the contrary.

          None of the Company, the Trustee, any Paying Agent or the Note Registrar
will have any responsibility or liability for any aspect of the records
relating to or payments made on account of beneficial ownership interests in a
Global Note or for maintaining, supervising or reviewing any records relating
to such beneficial ownership interests.

39

 

          SECTION 3.10. Cancellation. All Notes surrendered for payment, purchase, redemption, registration
of transfer or exchange shall be delivered to the Trustee and, if not already
canceled, shall be promptly canceled by it. Publishing or any Restricted
Subsidiary may at any time deliver to the Trustee for cancellation any Notes
previously authenticated and delivered hereunder which Publishing or any such
Restricted Subsidiary may have acquired in any manner whatsoever, and all Notes
so delivered shall upon receipt of a Publishing Order be promptly canceled by
the Trustee. No Notes shall be authenticated in lieu of or in exchange for any
Notes canceled as provided in this Section, except as expressly permitted by
this Indenture. All canceled securities held by the Trustee shall, unless by a
Publishing Order received by the Trustee prior to such destruction Publishing
shall direct that the canceled Notes be returned to it, be destroyed in
accordance with its customary procedures and certification of their destruction
delivered to Publishing. The Trustee shall provide Publishing a list of all
Notes that have been canceled from time to time as requested by Publishing.

          SECTION 3.11. Computation of Interest. Interest on the Notes shall be
computed on the basis of a 360-day year of twelve 30-day months.

          SECTION 3.12. Additional Notes. Publishing may, from time to time,
subject to compliance with any other applicable provisions of this Indenture,
without the consent of the Holders, create and issue pursuant to this Indenture
Additional Notes having terms and conditions set forth in Exhibit A identical
to those of the other Outstanding Notes, except that Additional Notes:

          (a) may have a different issue date from other Outstanding Notes;

          (b) may have a different amount of interest payable on the first Interest
Payment Date after issuance than is payable on other Outstanding Notes;

          (c) may have terms specified in the Additional Note Board Resolution or
Additional Note Supplemental Indenture for such Additional Notes making
appropriate adjustments to Articles II and III and Exhibit A (and related
definitions) applicable to such Additional Notes in order to conform to and
ensure compliance with the Securities Act (or other applicable securities laws)
and any registration rights or similar agreement applicable to such Additional
Notes, which are not adverse in any material respect to the Holder of any
Outstanding Notes (other than such Additional Notes), provided, that no such
adjustment shall cause such Additional Notes to constitute, as determined
pursuant to an Opinion of Counsel, a different class of securities than the
Issue Date Notes for U.S. federal income tax purposes except for Additional
Notes that have a separate CUSIP number from other Outstanding Notes pending
performance under a Registration Rights Agreement applicable thereto; and

          (d) may be entitled to additional interest as provided in Section 3.13 not
applicable to other Outstanding Notes and may not be entitled to such
additional interest applicable to other Outstanding Notes.

          SECTION 3.13. Additional Interest Under Registration Rights Agreements.
Under certain circumstances, Publishing may be obligated to pay
additional interest to Holders, all as and to the extent set forth in the Issue
Date Registration Rights Agreement or any

40

 

Registration Rights Agreement
applicable to Additional Notes. The terms thereof are hereby incorporated
herein by reference and such additional interest is deemed to be interest for
purposes of this Indenture.

ARTICLE IV

Defeasance and Covenant Defeasance

          SECTION 4.01. Publishing’s Option to Effect Defeasance or Covenant
Defeasance. Publishing may, at its option by Board Resolution, at any time,
with respect to any Notes, elect to have either Section 4.02 or Section 4.03 be
applied to all of the Outstanding Notes (the “Defeased Notes”), upon compliance
with the conditions set forth below in this Article IV.

          SECTION 4.02. Defeasance and Discharge. Upon Publishing’s exercise under
Section 4.01 of the option applicable to this Section, Publishing shall be
deemed to have been discharged from its obligations with respect to the
Defeased Notes on the date the conditions set forth below are satisfied
(hereinafter, “defeasance”) and each Guarantor shall be deemed to be discharged
from its obligations with respect to its Guarantee relating to the Defeased
Notes. For this purpose, such defeasance means that Publishing shall be deemed
to have paid and discharged the entire indebtedness represented by the Defeased
Notes, which shall thereafter be deemed to be “Outstanding” only for the
purposes of Section 4.05 and the other Sections of this Indenture referred to
in clauses (a) and (b) below, and to have satisfied all its other obligations
under such Notes and this Indenture insofar as such Notes are concerned (and
the Trustee, at the expense of Publishing and upon written request, shall
execute proper instruments acknowledging the same), except for the following
which shall survive until otherwise terminated or discharged hereunder: (a)
the rights of Holders of Defeased Notes to receive, solely from the trust fund
described in Section 4.04 and as more fully set forth in such Section, payments
in respect of the principal of, premium, if any, and interest on such Notes
when such payments are due, (b) Publishing’s obligations with respect to such
Defeased Notes under Sections 3.02, 3.03, 3.07, 10.02 and 10.03, (c) the
rights, powers, trusts, duties, indemnities and immunities of the Trustee
hereunder, and (d) this Article IV. Subject to compliance with this Article
IV, Publishing may exercise its option under this Section notwithstanding the
prior exercise of its option under Section 4.03 with respect to the Notes.

     SECTION 4.03. Covenant Defeasance. Upon Publishing’s exercise under
Section 4.01 of the option applicable to this Section, Publishing shall be
released from its obligations under any covenant or provision contained in
Sections 10.05 through 10.18, inclusive, with respect to the Defeased Notes on
and after the date the conditions set forth below are satisfied (hereinafter,
“covenant defeasance”), and the Defeased Notes shall thereafter be deemed to be
not “Outstanding” for the purposes of
any direction, waiver, consent or declaration or Act of Holders (and the
consequences of any thereof) in connection with such covenants and provisions,
but shall continue to be deemed “Outstanding” for all other purposes hereunder.
For this purpose, such covenant defeasance means that, with respect to the
Defeased Notes, Publishing may omit to comply with and shall have no liability
in respect of any term, condition or limitation set forth in any such Section
or Article, whether directly or indirectly, by reason of any reference
elsewhere herein or in such Defeased Notes to any such Section or Article or by

41

 

reason of any reference in any such Section or Article to any other provision
herein or in any other document and such omission to comply shall not
constitute a Default or an Event of Default under Section 5.01(c), (d) or (f)
but, except as specified above, the remainder of this Indenture and such
Defeased Notes shall be unaffected thereby.

          SECTION 4.04. Conditions to Defeasance or Covenant Defeasance. The
following shall be the conditions to application of either Section 4.02 or
Section 4.03 to the Defeased Notes:

		
	 	     (1) Publishing shall irrevocably have deposited or caused to be
deposited with the Trustee as trust funds in trust for the purpose of
making the following payments, specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of Notes, (a) United
States dollars in an amount, (b) U.S. Government Obligations which
through the scheduled payment of principal and interest in respect
thereof in accordance with their terms will provide, not later than one
day before the due date of any payment, money in an amount, or (c) a
combination thereof, in such amounts as will be sufficient, as reflected
in the written report of a nationally recognized firm of independent
public accountants or a nationally recognized investment banking firm
delivered to the Trustee, to pay and discharge (and which shall be
applied by the Trustee to pay and discharge) the principal of, premium,
if any, and interest on, the Defeased Notes on (x) the Stated Maturity
thereof or (y) any date selected by Publishing on which the Defeased
Notes may be redeemed in whole at the option of Publishing (such date
being referred to as the “Defeasance Redemption Date”), if (in the case
of clause (y)) when electing either defeasance or covenant defeasance,
Publishing has delivered to the Trustee an irrevocable notice to redeem
all of the outstanding Notes on the Defeasance Redemption Date; provided,
that the Trustee (or such qualifying trustee) shall have been irrevocably
instructed to apply such United States dollars or the proceeds of such
U.S. Government obligations to said payments with respect to the Notes.
For this purpose, “U.S. Government Obligations” means securities that are
(i) direct obligations of the United States of America for the timely
payment of which its full faith and credit is pledged or (ii) obligations
of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the timely payment of
which is unconditionally guaranteed as a full faith and credit obligation
by the United States of America, which, in either case, are not callable
or redeemable at the option of the issuer thereof, and shall also include
a depository receipt issued by a bank (as defined in Section 3(a)(2) of
the Securities Act), as custodian with respect to any such U.S.
Government Obligation or a specific payment of principal of or interest
on any such U.S. Government Obligation held by such custodian for the
account of the holder of such depository receipt; provided, that (except
as required by law) such custodian is not authorized to
make any deduction from the amount payable to the holder of such
depository receipt from any amount received by the custodian in respect
of the U.S. Government Obligation or the specific payment of principal of
or interest on the U.S. Government Obligation evidenced by such
depository receipt.
	 
	 	     (2) In the case of an election under Section 4.02, Publishing shall
have delivered to the Trustee an opinion of Independent Counsel in the
United States to the effect that (A) Publishing has received from, or
there has been published by, the Internal

42

 

		
	 	Revenue Service a ruling or (B)
since the date of this Indenture, there has been a change in the
applicable Federal income tax law, in either case to the effect that the
Holders of the Outstanding Notes will not recognize income, gain or loss
for Federal income tax purposes as a result of such defeasance and will
be subject to Federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such defeasance had
not occurred.
	 
	 	     (3) In the case of an election under Section 4.03, Publishing shall
have delivered to the Trustee an opinion of Independent Counsel in the
United States to the effect that the Holders of the Outstanding Notes
will not recognize income, gain or loss for Federal income tax purposes
as a result of such covenant defeasance and will be subject to federal
income tax on the same amounts, in the same manner and at the same times
as would have been the case if such covenant defeasance had not occurred.
	 
	 	     (4) No Default or Event of Default shall have occurred and be
continuing on the date of such deposit or insofar as Sections 5.01(g) and
5.01(h) are concerned, at any time during the period ending on the 121st
day after the date of deposit.
	 
	 	     (5) Such defeasance or covenant defeasance shall not cause the
Trustee to have a conflicting interest with respect to any securities of
Publishing.
	 
	 	     (6) Such defeasance or covenant defeasance shall not result in a
breach or violation of, or constitute a Default under, this Indenture or
a breach or violation of any provision of any agreement relating to any
Indebtedness.
	 
	 	     (7) Publishing shall have delivered to the Trustee an Opinion of
Independent Counsel in the United States to the effect that after the
121st day following the deposit, the trust funds will not be subject to
the effect of any applicable bankruptcy, insolvency, reorganization or
similar laws affecting creditors’ rights generally.
	 
	 	     (8) Publishing shall have delivered to the Trustee an Officers’
Certificate stating that the deposit was not made by Publishing with the
intent of preferring the holders of the Notes over the other creditors of
Publishing or with the intent of defeating, hindering, delaying or
defrauding creditors of Publishing.
	 
	 	     (9) No event or condition shall exist that would prevent Publishing
from making payments of the principal of, premium, if any, and interest
on the Notes on the date of such deposit or at any time ending on the
121st day after the date of such deposit.
	 
	 	     (10) Publishing shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Independent Counsel, each to the effect
that all conditions precedent provided for relating to either the
defeasance under Section 4.02 or the covenant defeasance under Section
4.03 (as the case may be) have been complied with as contemplated by this
Section.

          Opinions of Counsel required to be delivered under this Section may have
qualifications customary for opinions of the type required and counsel
delivering such Opinions of Counsel may rely on certificates of Publishing or
government or other officials customary for

43

 

opinions of the type required,
which certificates shall be limited to matters of fact, including that various
financial covenants have been complied with.

          SECTION 4.05. Deposited Money and U.S. Government Obligations to be Held
in Trust; Other Miscellaneous Provisions. Subject to the provisions of the
last paragraph of Section 10.03, all United States dollars and U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee
pursuant to Section 4.04 in respect of the Defeased Notes shall be held in
trust and applied by the Trustee, in accordance with the provisions of such
Notes and this Indenture, to the payment, either directly or through any Paying
Agent as the Trustee may determine, to the Holders of such Notes of all sums
due and to become due thereon in respect of principal, premium, if any, and
interest, but such money need not be segregated from other funds except to the
extent required by law.

          Publishing shall fully pay and indemnify the Trustee against any tax, fee
or other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to Section 4.04 or the principal and interest received in
respect thereof, other than any such tax, fee or other charge which by law is
for the account of the Holders of the Defeased Notes.

          Anything in this Article IV to the contrary notwithstanding, the Trustee
shall deliver or pay to Publishing from time to time upon a Publishing Request
any United States dollars or U.S. Government Obligations held by it as provided
in Section 4.04 which, in the opinion of a nationally recognized firm of
independent public accountants or nationally recognized investment banking firm
expressed in a written report delivered to the Trustee, are in excess of the
amount thereof which would then be required to be deposited to effect
defeasance or covenant defeasance. In the event of an error in any calculation
resulting in a withdrawal hereunder, Publishing shall deposit an amount equal
to the amount erroneously withdrawn as promptly as practicable after becoming
aware of such error.

          SECTION 4.06. Reinstatement. If the Trustee or Paying Agent is unable to apply
any United States dollars or U.S. Government Obligations in accordance with
Section 4.02 or 4.03, as the case may be, by reason of any order or judgment of
any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then Publishing’s obligations under this
Indenture and the Notes shall be revived and reinstated as though no deposit
had occurred pursuant to Section 4.02 or 4.03, as the case may be, until such
time as the Trustee or Paying Agent is permitted to apply all
such United States dollars or U.S. Government Obligations in accordance with
Section 4.02 or 4.03, as the case may be; provided, however, that (a) if
Publishing makes any payment to the Trustee or Paying Agent of principal,
premium, if any, or interest on any Note following the reinstatement of its
obligations, the Trustee or Paying Agent shall promptly pay any such amount to
the Holders of the Notes and Publishing shall be subrogated to the rights of
the Holders of such Notes to receive such payment from the United States
dollars and U.S. Government Obligations held by the Trustee or Paying Agent and
(b) the Trustee or Paying Agent shall return all such United States dollars and
U.S. Government Obligations to Publishing promptly after receiving a Publishing
Request therefor at any time, if the Trustee or Paying Agent receives written
notice from Publishing that such reinstatement of Publishing’s obligations has
occurred and continues to be in effect at such time.

44

 

ARTICLE V

Remedies

          SECTION 5.01. Events of Default. “Event of Default”, wherever used
herein, means with respect to any Notes any one of the following events
(whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

          (a) there shall be a default in the payment of any interest on any Note
when it becomes due and payable, and such default shall continue for a period
of 30 days;

          (b) there shall be a default in the payment of the principal of (or
premium, if any, on) any Note when and as the same shall become due and payable
at its Maturity (upon acceleration, optional or mandatory redemption, required
repurchase or otherwise);

          (c)  (i) there shall be a default in the performance, or breach, of any
covenant or agreement of Publishing under this Indenture (other than a default
in the performance, or breach, of a covenant or agreement which is specifically
dealt with in Section 5.01(a) or (b) or in clauses (ii) or (iii) of this
Section 5.01(c)), and such default or breach shall continue for a period of 30
days after written notice has been given, by certified mail, (x) to Publishing
by the Trustee or (y) to Publishing and the Trustee by the Holders of at least
25% in aggregate principal amount of the Outstanding Notes; (ii) there shall be
a default in the performance or breach of the provisions of Article VIII; or
(iii) Publishing shall have failed to make or consummate a Change of Control
Offer in accordance with the provisions of Section 10.14;

          (d) one or more defaults shall have occurred under any agreements,
indentures or instruments under which Publishing, any Guarantor or any
Restricted Subsidiary then has outstanding Indebtedness in excess of $7,500,000
in the aggregate and, if not already matured at its final maturity in
accordance with its terms, such Indebtedness shall have been accelerated;

          (e) any Guarantee relating to the Notes shall for any reason cease to be,
or be asserted in writing by any Guarantor or Publishing not to be, in full
force and effect, enforceable in accordance with its terms, except to the
extent contemplated by this Indenture and any such Guarantee;

          (f) one or more final judgments, orders or decrees for the payment of
money in excess of $7,500,000, either individually or in the aggregate, shall
be entered against Publishing, any Guarantor or any Restricted Subsidiary or
any of their respective properties and shall not be discharged and either (i)
enforcement proceedings shall have been commenced upon such judgment, order or
decree or (ii) there shall have been a period of 60 consecutive days during
which a stay of enforcement of such judgment or order, by reason of an appeal
or otherwise, shall not be in effect;

          (g) there shall have been the entry by a court of competent jurisdiction
of (i) a decree or order for relief in respect of Publishing, any Guarantor or
any Material Restricted Subsidiary in an involuntary case or proceeding under
any applicable Bankruptcy Law or (ii) a

45

 

decree or order adjudging Publishing,
any Guarantor or any Material Restricted Subsidiary bankrupt or insolvent, or
seeking reorganization, arrangement, adjustment or composition of or in respect
of Publishing, any Guarantor or any Material Restricted Subsidiary under any
applicable Federal or state law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or similar official of Publishing,
any Guarantor or any Material Restricted Subsidiary or of any substantial part
of its property, or ordering the winding up or liquidation of its affairs, and
any such decree or order for relief shall continue to be in effect, or any such
other decree or order shall be unstayed and in effect, for a period of 60
consecutive days; or

          (h) (i) Publishing, any Guarantor or any Material Restricted Subsidiary
commences a voluntary case or proceeding under any applicable Bankruptcy Law or
any other case or proceeding to be adjudicated bankrupt or insolvent, (ii)
Publishing, any Guarantor or any Material Restricted Subsidiary consents to the
entry of a decree or order for relief in respect of Publishing, any Guarantor
or such Material Restricted Subsidiary in an involuntary case or proceeding
under any applicable Bankruptcy Law or to the commencement of any bankruptcy or
insolvency case or proceeding against it, (iii) Publishing, any Guarantor or
any Material Restricted Subsidiary files a petition or answer or consent
seeking reorganization or relief under any applicable Federal or state law,
(iv) Publishing, any Guarantor or any Material Restricted Subsidiary (x)
consents to the filing of such petition or the appointment of, or taking
possession by, a custodian, receiver, liquidator, assignee, trustee,
sequestrator or similar official of Publishing, any Guarantor or such Material
Restricted Subsidiary or of any substantial part of its property, (y) makes an
assignment for the benefit of creditors or (z) admits in writing its inability
to pay its debts generally as they become due or (v) Publishing, any Guarantor
or any Material Restricted Subsidiary takes any corporate action in furtherance
of any such actions in this paragraph (h).

          SECTION 5.02. Acceleration of Maturity; Rescission and Annulment. If an
Event of Default (other than an Event of Default specified in Sections 5.01(g)
and (h) with respect to Publishing) occurs and is continuing with respect to
the Notes, the Trustee or the Holders of not less than 25% in aggregate
principal amount of the Outstanding
Notes may, and the Trustee upon the request of the Holders of not less
than 25% in aggregate principal amount of the Outstanding Notes shall, declare
the principal amount of all the Notes to be due and payable immediately in an
amount equal to the principal amount of the Notes, together with accrued and
unpaid interest, if any, to the date the Notes shall have become due and
payable, by a notice in writing to Publishing (and to the Trustee, if given by
Holders) and, if the Senior Credit Facility is in effect, to the Agent, and
upon any such declaration such amount shall become immediately due and payable.
If an Event of Default specified in Sections 5.01(g) or (h) occurs with
respect to Publishing and is continuing, then all the Notes shall ipso facto
become and be immediately due and payable, in an amount equal to the principal
amount of the Notes, together with accrued and unpaid interest, if any, to the
date the Notes become due and payable, without any declaration or other act on
the part of the Trustee or any Holder.

          At any time after such declaration or acceleration has been made with
respect to the Notes, and before a judgment or decree for payment of the money
due has been obtained by the Trustee as provided hereinafter in this Article,
the Holders of at least a majority in aggregate principal amount of the
Outstanding Notes, by written notice to Publishing and the Trustee, may rescind
and annul such declaration and its consequences if:

46

 

          (a) Publishing has paid or irrevocably deposited with the Trustee a sum
sufficient to pay

		
	 	     (i) all sums paid or advanced by the Trustee under Section
6.07 and the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel;
	 
	 	     (ii) all overdue interest on all Notes;
	 
	 	     (iii) the principal and the premium, if any, on any Notes
which have become due otherwise than by such declaration of
acceleration and interest thereon at the rate or rates presented
therefor by the terms of the Notes, to the extent that payment of
such interest is lawful;
	 
	 	     (iv) interest upon overdue interest at the rate or rates
presented therefor by the terms of the Notes, to the extent that
payment of such interest is lawful; and

          (b) all Events of Default with respect to the Notes, other than the
nonpayment of principal of the Notes which have become due solely by such
declaration of acceleration, have been cured or waived as provided in Section
5.13.

No such rescission shall affect any subsequent Default or impair any right
consequent thereon.

          SECTION 5.03. Collection of Indebtedness and Suits for Enforcement by
Trustee. Publishing covenants that if

          (a) default is made in the payment of any interest on any Note when such
interest becomes due and payable and such default continues for a period of 30
days, or

          (b) default is made in the payment of the principal of (or premium, if
any, on) any Note at the Stated Maturity (upon acceleration, optional or
mandatory redemption, required repurchase or otherwise) thereof,

Publishing will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Notes the whole amount then due and payable on such Notes for
principal and premium, if any, and interest, with interest upon the overdue
principal and premium, if any, and, to the extent that payment of such interest
shall be legally enforceable, upon overdue installments of interest, at the
rate or rates as may be presented therefor by the terms of any such Note.

          If Publishing fails to pay such amounts forthwith upon such demand, the
Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid and may
prosecute such proceeding to judgment or final decree, and may enforce the same
against Publishing or any other obligor upon the Notes and collect the moneys
adjudged or decreed to be payable in the manner provided by law out of the
property of Publishing or any other obligor upon such Notes, wherever situated.

47

 

          If an Event of Default with respect to any Notes occurs and is continuing,
the Trustee may in its discretion proceed to protect and enforce its rights and
the rights of the Holders of Notes under this Indenture by such appropriate
private or judicial proceedings as the Trustee shall deem most effectual to
protect and enforce such rights, whether for the specific enforcement of any
covenant or agreement in this Indenture or in aid of the exercise of any power
granted herein or therein, or to enforce any other proper remedy.

          The rights and remedies under this Section are in addition to the other
rights and remedies under this Article V or Article XIII.

          SECTION 5.04. Trustee May File Proofs of Claim. In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other similar judicial proceeding
relative to Publishing or the property of Publishing, the Trustee (irrespective
of whether the principal of the Notes shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the
Trustee shall have made any demand on Publishing for the payment of overdue
principal or interest) shall be entitled and empowered, by intervention in such
proceeding or otherwise:

          (a) to file and prove a claim for the whole amount of principal, and
premium, if any, and interest owing and unpaid in respect of the Notes and to
file such other papers or documents as may be necessary or advisable in order
to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel) and of the Holders allowed in such judicial proceeding; and

          (b) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section
6.07.

          Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment, composition or other similar
arrangement affecting the Notes or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

          SECTION 5.05. Trustee May Enforce Claims Without Possession of Notes. All
rights of action and claims under this Indenture or the Notes may be prosecuted
and enforced by the Trustee without the possession of any of the Notes or the
production thereof in any proceeding relating thereto, and any such proceeding
instituted by the Trustee shall be brought in its own name and as trustee of an
express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and

48

 

advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders
of the Notes in respect of which such judgment has been recovered.

          SECTION 5.06. Application of Money Collected. Any money collected by the
Trustee with respect to the Notes pursuant to this Article or otherwise on
behalf of the Holders or the Trustee pursuant to this Article or through any
proceeding or any arrangement or restructuring in anticipation or in lieu of
any proceeding contemplated by this Article shall be applied, subject to
applicable law, in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal,
premium, if any, or interest, upon presentation of the Notes and the notation
thereon of the payment if only partially paid and upon surrender thereof if
fully paid:

          FIRST: To the payment of all amounts due the Trustee under Section 6.07;

          SECOND: To the payment in full of the amounts then due and unpaid upon
the Notes for principal, premium, if any, and interest, in respect of which or
for the benefit of which such money has been collected, ratably, without
preference or priority of any kind, according to the amounts due and payable on
such Notes for principal, premium, if any, and interest; and

          THIRD: The balance, if any, to the Person or Persons entitled thereto as
a court of competent jurisdiction shall direct, or to Publishing; provided,
that all sums due and owing to the Holders and the Trustee have been paid in
full as required by this Indenture.

          SECTION 5.07. Limitation on Suits. No Holder of any Notes shall have any
right to institute any proceeding, judicial or otherwise, with respect to this
Indenture or the Notes, or for the appointment of a receiver or trustee, or for
any other remedy hereunder, unless

		
	 	     (a) such Holder has previously given written notice to the Trustee
of a continuing Event of Default with respect to Notes;
	 
	 	     (b) the Holders of not less than 25% in principal amount of the
outstanding Notes shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default in its own name
as Trustee hereunder;
	 
	 	     (c) such Holder or Holders have offered, and if requested have
provided, to the Trustee an indemnity satisfactory to the Trustee in its
sole discretion against the costs, expenses and liabilities that may be
incurred in compliance with such request;
	 
	 	     (d) the Trustee for 60 days after its receipt of such notice,
request and offer (and if requested, provision) of indemnity has failed
to institute any such proceeding; and
	 
	 	     (e) no direction inconsistent with such written request has been
given to the Trustee during such 60-day period by the Holders of a
majority in principal amount of the Outstanding Notes;

it being understood and intended that no one or more Holders of Notes shall
have any right in any manner whatever by virtue of, or by availing of, any
provision of this Indenture to affect, disturb or prejudice the rights of any
other Holders of such Notes, or to obtain or to seek to

49

 

obtain priority or
preference over any other Holders or to enforce any right under this Indenture,
except in the manner provided in this Indenture and for the equal and ratable
benefit of all the Holders of all Notes.

          SECTION 5.08. Unconditional Right of Holders to Receive Principal, Premium
and Interest. Notwithstanding any other provision in this Indenture, the
Holder of any Note shall have the right on the terms stated herein, which is
absolute and unconditional, to receive payment of the principal of, premium, if
any, and (subject to Section 3.08) interest on such Note on the respective
Stated Maturities expressed in such Note (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such Holder.

          SECTION 5.09. Restoration of Rights and Remedies. If the Trustee or any
Holder has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to the Trustee or to such Holder, then
and in every such case, subject to any determination in such proceeding, (a)
Publishing, the Trustee and the Holders shall be restored severally and
respectively to their former positions hereunder, and (b) thereafter all rights
and remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

          SECTION 5.10. Rights and Remedies Cumulative. Except as provided in Section 3.07, no right or remedy herein conferred
upon or reserved to the Trustee or to the Holders is intended to be exclusive
of any other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or otherwise.
The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

          SECTION 5.11. Delay or Omission Not Waiver. No delay or omission of the
Trustee or of any Holder of any Note to exercise any right or remedy accruing
upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right
and remedy given by this Article or by law to the Trustee or to the Holders may
be exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.

          SECTION 5.12. Control by Holders. The Holders of not less than a majority
in aggregate principal amount of the Outstanding Notes shall have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred on the
Trustee; provided, that:

		
	 	     (a) such direction shall not be in conflict with any rule of law or
with this Indenture (including, without limitation, Section 5.07) or
expose the Trustee to personal liability; and

50

 

		
	 	     (b) subject to the provisions of Section 315 of the Trust Indenture
Act, the Trustee may take any other action deemed proper by the Trustee
which is not inconsistent with such direction.

          SECTION 5.13. Waiver of Past Defaults. The Holders of not less than a
majority in aggregate principal amount of the Outstanding Notes may on behalf
of the Holders of all the Notes waive any past Default hereunder and its
consequences, except a Default

		
	 	     (a) in the payment of the principal of, premium, if any, or interest
on any Notes, or
	 
	 	     (b) in respect of a covenant or provision hereof which under Article
IX cannot be modified or amended without the consent of the Holder of
each Outstanding Note affected by such modification or amendment.

          Upon any such waiver, such Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured, for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other
Default or impair any right consequent thereon.

          SECTION 5.14. Undertaking for Costs. All parties to this Indenture agree,
and each Holder of any Note by his acceptance thereof shall be deemed to have
agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against
the Trustee for any action taken, suffered or omitted by it as Trustee, the
filing by any party litigant in such suit of an undertaking to pay the costs of
such suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys’ fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made
by such party litigant; but the provisions of this Section shall not apply to
any suit instituted by the Trustee, to any suit instituted by any Holder, or
group of Holders, holding in the aggregate more than 10% in principal amount of
the Outstanding Notes to which the suit relates, or to any suit instituted by
any Holder for the enforcement of the payment of the principal of, premium, if
any, or interest on any Note on or after the respective Stated Maturities
expressed in such Note (or, in the case of redemption, on or after the
Redemption Date).

          SECTION 5.15. Waiver of Stay, Extension or Usury Laws. Publishing (to the
extent that it may lawfully do so) covenants that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay or extension law or any usury or other similar law
wherever enacted, now or at any time hereafter in force, which would prohibit
or forgive Publishing from paying all or any portion of the principal of,
premium, if any, or interest on the Notes contemplated herein or in the Notes
or which may affect the covenants or the performance of this Indenture; and
Publishing (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and covenants that it will not
hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.

51

 

          SECTION 5.16. Remedies Subject to Applicable Law. All rights, remedies
and powers provided by this Article may be exercised only to the extent that
the exercise thereof does not violate any applicable provision of law in the
premises, and all the provisions of this Indenture are intended to be subject
to all applicable mandatory provisions of law which may be controlling in the
premises and to be limited to the extent necessary so that they will not render
this Indenture invalid, unenforceable or not entitled to be recorded,
registered or filed under the provisions of any applicable law.

ARTICLE VI

The Trustee

          SECTION 6.01. Duties of Trustee. (a) If a Default or an Event of Default
with respect to any Notes actually known to the Trustee has occurred and is
continuing, the Trustee shall exercise such of the rights and powers vested in
it by this Indenture and use the same degree of
care and skill in its exercise thereof as a prudent person would exercise
or use under the circumstances in the conduct of his own affairs. The Trustee
shall not be charged with knowledge of any Default or Event of Default with
respect to any Notes, Asset Sale or Change of Control unless written notice
thereof shall have been delivered to a Responsible Officer by Publishing or any
other Person.

          (b) Except during the continuance of a Default or an Event of Default with
respect to any Notes actually known to the Trustee:

		
	 	     (1) the Trustee need perform only those duties as are specifically
set forth in this Indenture and no covenants or obligations shall be
implied in this Indenture that are adverse to the Trustee; and
	 
	 	     (2) in the absence of bad faith or wilful misconduct on its part,
the Trustee may with respect to any Notes, conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Trustee and
conforming to the requirements of this Indenture. However, the Trustee
shall examine the certificates and opinions to determine whether or not
they conform to the requirements of this Indenture.

          (c) The Trustee may not be relieved from liability for its own negligent
action, its own negligent failure to act, or its own wilful misconduct, except
that:

		
	 	     (1) this paragraph does not limit the effect of paragraph (b) of
this Section;
	 
	 	     (2) the Trustee shall not be liable for any error of judgment made
in good faith by a Responsible Officer, unless it is proved that the
Trustee was negligent in ascertaining the pertinent facts; and
	 
	 	     (3) the Trustee shall not be liable with respect to any action it
takes or omits to take in good faith in accordance with a direction of
the Holders of a majority in principal amount of Outstanding Notes
relating to the time, method and place of

52

 

		
	 	conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power
confirmed upon the Trustee under this Indenture.

          (d) No provision of this Indenture shall require the Trustee to expend or
risk its own funds or otherwise incur any loss, expense, fees or financial
liability in the performance of any of its duties hereunder or in the exercise
of any of its rights or powers if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk
or loss, expense, fees or financial liability is not reasonably assured to it.

          (e) Whether or not therein expressly so provided, every provision of this
Indenture that in any way relates to the Trustee is subject to paragraphs (a),
(b), (c) and (d) of this Section.

          (f) The Trustee shall not be liable for interest on any money or assets
received by it except as the Trustee may agree with Publishing. Assets held in
trust by the Trustee need not be segregated from other assets except to the
extent required by law.

          SECTION 6.02. Notice of Defaults. Within 30 days after a Responsible
Officer of the Trustee receives notice of the occurrence of any Default with
respect to any Notes, the Trustee shall, at Publishing’s expense, transmit by
mail to all Holders of such Notes or any other persons entitled to receive
reports pursuant to Trust Indenture Act Section 313(c), as their names and
addresses appear in the Note Register, notice of such Default, unless such
Default shall have been cured or waived; provided, however, that, except in the
case of a Default in the payment of the principal of, premium, if any, or
interest on any Note, the Trustee shall be protected in withholding such notice
if and so long as a Responsible Officer of the Trustee in good faith determines
that the withholding of such notice is in the interest of the Holders of such
Notes.

          SECTION 6.03. Certain Rights of Trustee. Subject to the provisions of
Trust Indenture Act Sections 315(a) through 315(d):

		
	 	     (a) the Trustee may rely conclusively and shall be protected in
acting or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or
other paper or document believed by it to be genuine and to have been
signed or presented by the proper party or parties;
	 
	 	     (b) any request or direction of Publishing mentioned herein shall be
sufficiently evidenced by a Publishing Request or Publishing Order and
any resolution of the Board of Directors may be sufficiently evidenced by
a Board Resolution;
	 
	 	     (c) wherever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to
the taking, suffering or omitting any action hereunder, the Trustee
(unless other evidence be herein specifically prescribed) in the absence
of bad faith on its part, may rely conclusively, upon an Officers’
Certificate and/or an Opinion of Counsel;
	 
	 	     (d) the Trustee may consult with counsel and any written advice of
such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in

53

 

		
	 	respect of any action taken, suffered or
omitted by it hereunder in good faith and in reliance thereon in
accordance with such advice or Opinion of Counsel;
	 
	 	     (e) notwithstanding any other provisions contained in this
Indenture, the Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Indenture at the request or
direction of any of the Holders pursuant to this Indenture, unless such
Holders shall have offered to the Trustee security or indemnity
satisfactory to the Trustee in its sole discretion against the costs,
expenses and liabilities which might be incurred therein or thereby in
compliance with such request or direction;
	 
	 	     (f) the Trustee shall not be liable for any action taken or omitted
by it in good faith and believed by it to be authorized or within the
discretion, rights or powers conferred upon it by this Indenture other
than any liabilities arising out of the negligence or wilful misconduct
of the Trustee;
	 
	 	     (g) the Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
approval, appraisal, bond, debenture, note, coupon, security or other
paper or document; but the Trustee in its discretion may make such
further inquiry or investigation in accordance with any of the provisions
of this Indenture into such facts or matters as it may see fit, and, if
the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine such relevant books,
records and premises of Publishing as may be reasonable, personally or by
agent or attorney;
	 
	 	     (h) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care
by it hereunder; and
	 
	 	     (i) no provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur any financial liability
in the performance of any of its duties hereunder, or in the exercise of
any of its rights and powers.

          SECTION 6.04. Trustee Not Responsible for Recitals, Dispositions of Notes
or Application of Proceeds Thereof. The recitals contained herein and in the
Notes, except the Trustee’s certificates of authentication, shall be taken as
the statements of Publishing, and the Trustee assumes no responsibility for
their correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or the Notes, except that the Trustee represents
that it is duly authorized to execute and deliver this Indenture, authenticate
the Notes and perform its obligations hereunder and that the statements made by
it in a Statement of Eligibility and Qualification on Form T-1 supplied to
Publishing are true and accurate subject to the qualifications set forth
therein. The Trustee shall not be accountable for the use or application by
Publishing of Notes or the proceeds thereof.

          SECTION 6.05. Trustee and Agents May Hold Notes; Collections; etc. The
Trustee, any Paying Agent, Note Registrar or any other agent of Publishing, in
its individual

54

 

or any other capacity, may become the owner or pledgee of Notes,
with the same rights it would have if it were not the Trustee, Paying Agent,
Note Registrar or such other agent and, subject to Trust Indenture Act Sections
310 and 311, may otherwise deal with Publishing and receive, collect, hold and
retain collections from Publishing with the same rights it would have if it
were not the Trustee, Paying Agent, Note Registrar or such other agent.

          SECTION 6.06. Money Held in Trust. All moneys received by the Trustee
shall, until used or applied as herein provided, be held in trust for the
purposes for which they were received, but need not be segregated from other
funds except to the extent required by mandatory provisions of law. Except for
funds or securities deposited with the Trustee pursuant to Article IV, the
Trustee shall
only be required to invest moneys received by the Trustee, until used or
applied as herein provided, in Temporary Cash Investments in accordance with
the directions of Publishing.

          SECTION 6.07. Compensation and Indemnification of Trustee and Its Prior
Claim. Publishing covenants and agrees to pay to the Trustee from time to
time, and the Trustee shall be entitled to, reasonable compensation for all
services rendered by it hereunder (which, to the extent lawful, shall not be
limited by any provision of law in regard to the compensation of a trustee of
an express trust) and Publishing covenants and agrees to pay or reimburse the
Trustee and each predecessor Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by or on behalf of it in
accordance with any of the provisions of this Indenture (including the
reasonable compensation and the expenses and disbursements of its counsel and
of all agents and other persons not regularly in its employ) except any such
expense, disbursement or advance as may arise from its negligence, bad faith or
wilful misconduct. When the Trustee incurs expenses or renders services in
connection with an Event of Default specified in Section 5.01(g) or Section
5.01(h), the expenses (including the reasonable compensation and the expenses
and disbursements of its counsel) and the compensation for the services are
intended to constitute expenses of administration under any applicable Federal
or state bankruptcy, insolvency or other similar law. Publishing also
covenants to indemnify the Trustee and each predecessor Trustee, and their
respective officers, agents and employees for, and to hold them harmless
against, any claim, loss, liability, tax, assessment or other governmental
charge (other than taxes applicable to the Trustee’s compensation hereunder) or
expense incurred without negligence, bad faith or wilful misconduct on its
part, arising out of or in connection with the acceptance or administration of
this Indenture or the trusts hereunder and its duties hereunder, including
enforcement of this Section and also including any liability which the Trustee
may incur as a result of failure to withhold, pay or report any tax, assessment
or other governmental charge, and the costs and expenses of defending itself
against or investigating any claim of liability in the premises. The
obligations of Publishing under this Section to compensate and indemnify the
Trustee and each predecessor Trustee and to pay or reimburse the Trustee and
each predecessor Trustee for expenses, disbursements and advances shall
constitute an additional obligation hereunder and shall survive the
satisfaction and discharge of this Indenture and the resignation or removal of
the Trustee and each predecessor Trustee. As security for the performance of
the obligations of Publishing under this Section, the Trustee shall have a lien
prior to the Notes upon all property and funds held or collected by the Trustee
as such, except funds held in trust for the benefit of Holders of particular
Notes.

55

 

          SECTION 6.08. Conflicting Interests. The Trustee shall comply with the
provisions of Section 310(b) of the Trust Indenture Act. Nothing herein shall
prevent the Trustee from filing with the Commission the application referred to
in the second to last paragraph of Section 310(b) of the Trust Indenture Act.

          SECTION 6.09. Corporate Trustee Required; Eligibility. There shall at all times be a Trustee hereunder which shall be eligible
to act as Trustee under the Trust Indenture Act Section 310(a)(1) and which
shall have a combined capital and surplus of at least $100,000,000, and have a
Corporate Trust Office in The City of New York to the extent there is such an
institution eligible and willing to serve. If the Trustee does not have an
office in the City of New York, the Trustee shall appoint an agent in the City
of New York reasonably acceptable to Publishing to conduct any activities which
the Trustee is required under this Indenture to conduct in the City of New
York. The Trustee may not rescind any such agency without the consent of
Publishing, which consent may not be unreasonably withheld, unless the Trustee
appoints a satisfactory replacement or has a Corporate Trust Office in the City
of New York. If such corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of Federal, state, territorial
or District of Columbia supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such corporation
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. If at any time the Trustee shall
cease to be eligible in accordance with the provisions of this Section, the
Trustee shall resign immediately in the manner and with the effect hereinafter
specified in this Article.

          SECTION 6.10. Resignation and Removal; Appointment of Successor Trustee.
(a) No resignation or removal of the Trustee and no appointment of a successor
Trustee pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee under Section 6.11.

          (b) The Trustee, or any trustee or trustees hereafter appointed, may at
any time resign with respect to any Notes by giving written notice thereof to
Publishing. Upon receiving such notice of resignation, Publishing shall use
its best efforts to promptly appoint a successor Trustee by Board Resolution or
written instrument executed by authority of the Board of Directors of
Publishing, a copy of which shall be delivered to the resigning Trustee and a
copy to the successor Trustee. If an instrument of acceptance by a successor
Trustee shall not have been delivered to the Trustee within 30 days after the
giving of such notice of resignation, the resigning Trustee may, or any Holder
who has been a bona fide Holder of a Note for at least six months may, on
behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the appointment of a successor Trustee. Such court
may thereupon, after such notice, if any, as it may deem proper, appoint a
successor Trustee.

          (c) The Trustee may be removed with respect to any Notes at any time by an
Act of the Holders of not less than a majority in aggregate principal amount of
the Outstanding Notes, delivered to the Trustee and to Publishing.

56

 

          (d) If at any time:

		
	 	     (1) the Trustee shall fail to comply with the provisions of Trust
Indenture Act Section 310(b) with respect to any Notes after written
request therefor by Publishing or by any Holder who has been a bona fide
Holder of a Note for at least six months, or
	 
	 	     (2) the Trustee shall cease to be eligible under Section 6.09 with
respect to any Notes and shall fail to resign after written request
therefor by Publishing or by any such Holder, or
	 
	 	     (3) the Trustee shall become incapable of acting with respect to any
Notes or shall be adjudged a bankrupt or insolvent, or a receiver of the
Trustee or of its property shall be appointed or any public officer shall
take charge or control of the Trustee or of its property or affairs for
the purpose of rehabilitation, conservation or liquidation,

then, in any case, (i) Publishing by a Board Resolution may remove the Trustee,
with respect to any Notes or in the case of bankruptcy or insolvency or
receivership pursuant to clause (3) above, with respect to all Notes, or (ii)
subject to Section 5.14, any Holder of any Note who has been a bona fide Holder
of a Note for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee with respect
to the Notes, or in the case of bankruptcy or insolvency or receivership
pursuant to clause (3) above, with respect to all Notes. Such court may
thereupon, after such notice, if any, as it may deem proper and prescribe,
remove the Trustee and appoint a successor Trustee.

          (e) If the Trustee shall resign, be removed or become incapable of acting
with respect to any Notes, or if a vacancy shall occur in the office of Trustee
with respect to any Notes for any cause, Publishing, by a Board Resolution or
written instrument executed by authority of the Board of Directors of
Publishing, shall use its best efforts to promptly appoint a successor Trustee
for such Notes and shall comply with the applicable requirements of Section
6.11. If, within one year after such resignation, removal or incapability, or
the occurrence of such vacancy, Publishing or a court of competent jurisdiction
has not appointed a successor Trustee, a successor Trustee with respect to such
Notes shall be appointed by Act of the Holders of a majority in principal
amount of the Outstanding Notes delivered to Publishing and the retiring
Trustee, and the successor Trustee so appointed shall, forthwith upon its
acceptance of such appointment, become the successor Trustee with respect to
such Notes and supersede the successor Trustee appointed by Publishing with
respect to such Notes. If no successor Trustee shall have been so appointed by
Publishing or the Holders of such Notes and accepted appointment in the manner
hereinafter provided, any Holder of a Note who has been a bona fide Holder of a
Note for at least six months may, subject to Section 5.14, on behalf of himself
and all other similarly situated, petition any court of competent jurisdiction
for the appointment of a successor Trustee with respect to such Notes.

          (f) Publishing shall give notice of each resignation and each removal of
the Trustee with respect to any Notes and each appointment of a successor
Trustee with respect to any Notes by mailing written notice of such event by
first-class mail, postage prepaid, to the Holders of Notes as their names and
addresses appear in the Note Register. Each notice shall

57

 

include the name of
the successor Trustee and the address of its Corporate Trust Office or agent
hereunder.

          SECTION 6.11. Acceptance of Appointment by Successor. In case of the appointment hereunder of a successor Trustee with
respect to the Notes, every such successor Trustee so appointed shall execute,
acknowledge and deliver to Publishing and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the
retiring Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee under this Indenture with
respect to any such Notes; but, nevertheless, on the written request of
Publishing or the successor Trustee, upon payment of its charges then unpaid,
such retiring Trustee shall pay over to the successor Trustee all moneys at the
time held by it hereunder with respect to any such Notes and shall execute and
deliver an instrument transferring to such successor Trustee all such rights,
powers, duties and obligations.

          Upon request of any such successor Trustee, Publishing shall execute any
and all instruments for more fully and certainly vesting in and confirming to
such successor Trustee all such rights and powers. Any Trustee ceasing to act
shall, nevertheless, retain a prior claim upon all property or funds held or
collected by such Trustee or such successor Trustee to secure any amounts then
due such Trustee pursuant to the provisions of Section 6.07.

          No successor Trustee with respect to the Notes shall accept appointment as
provided in this Section unless at the time of such acceptance such successor
Trustee shall be eligible to act as Trustee under the provisions of Trust
Indenture Act Section 310(a) and this Article VI and shall have a combined
capital and surplus of at least $100,000,000 and have a Corporate Trust Office
or an agent selected in accordance with Section 6.09 in the City of New York.

          Upon acceptance of appointment by any successor Trustee as provided in
this Section, Publishing shall give notice thereof to the Holders of the Notes,
by mailing such notice to such Holders at their addresses as they shall appear
on the Note Register. If the acceptance of appointment is substantially
contemporaneous with the resignation, then the notice called for by the
preceding sentence may be combined with the notice called for by Section 6.10.
If Publishing fails to give such notice within 10 days after acceptance of
appointment by the successor Trustee, the successor Trustee shall cause such
notice to be given at the expense of Publishing.

          SECTION 6.12. Merger, Conversion, Consolidation or Succession to Business.
Any Person into which the Trustee may be merged or converted or with which it
may be consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any Person succeeding
to all or substantially all of the corporate trust business of the Trustee,
shall be the successor of the Trustee hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties
hereto; provided such Person shall be eligible under Trust Indenture Act
Section 310(a) and this Article VI and shall have a combined capital and
surplus of at least $100,000,000.

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          In case at the time such successor to the Trustee shall succeed to the
trusts created by this Indenture any of the Notes shall have been authenticated
but not delivered, any such successor to the Trustee may adopt the certificate
of authentication of any predecessor Trustee
and deliver such Notes so authenticated; and, in case at that time any of
the Notes shall not have been authenticated, any successor to the Trustee may
authenticate such Notes either in the name of any predecessor hereunder or in
the name of the successor Trustee. In all such cases such certificates shall
have the full force and effect which this Indenture provides for the
certificate of authentication of the Trustee; provided, that the right to adopt
the certificate of authentication of any predecessor Trustee or to authenticate
Notes in the name of any predecessor Trustee shall apply only to its successor
or successors by merger, amalgamation, conversion or consolidation.

          SECTION 6.13. Preferential Collection of Claims Against Publishing. If
and when the Trustee shall be or become a creditor of Publishing, the Trustee
shall be subject to the provisions of the Trust Indenture Act regarding the
collection of claims against Publishing.

ARTICLE VII

Holders’ Lists and Reports by Trustee and Publishing

          SECTION 7.01. Publishing to Furnish Trustee Names and Addresses of
Holders. Publishing will furnish or cause to be furnished to the Trustee:

		
	 	     (a) semiannually, not more than 10 days after each Regular Record
Date, a list, in such form as the Trustee may reasonably require, of the
names and addresses of the Holders of Notes as of such Regular Record
Date; and
	 
	 	     (b) at such other times as the Trustee may reasonably request in
writing, within 30 days after receipt by Publishing of any such request,
a list of similar form and content to that in subsection (a) hereof as of
a date not more than 15 days prior to the time such list is furnished;

provided, however, that if and so long as the Trustee shall be the Note
Registrar for Notes, no such list need be furnished with respect to such Notes.

          SECTION 7.02. Disclosure of Names and Addresses of Holders. Every Holder
of Notes, by receiving and holding the same, agrees with Publishing and the
Trustee that neither Publishing nor the Trustee or any agent of either of them
shall be held accountable by reason of the disclosure of any information as to
the names and addresses of the Holders in accordance with Trust Indenture Act
Section 312, regardless of the source from which such information was derived,
and that the Trustee shall not be held accountable or liable by reason of
mailing any material pursuant to a request made under Trust Indenture Act
Section 312.

          SECTION 7.03. Reports by Trustee. (a) Within 60 days after May 15 of each year commencing with the first
May 15 after the issuance of Notes, the Trustee shall transmit by mail, at
Publishing’s expense, to all Holders, as their names and addresses appear in
the Note Register, as provided in Trust Indenture Act Section 313(c), a brief
report dated as of such

59

 

May 15 in accordance with and with respect to the
matters required by Trust Indenture Act Section 313(a).

          (b) The Trustee shall promptly transmit to Publishing a copy of any report
it transmits to Holders of such Notes pursuant to this Section.

          SECTION 7.04. Reports by Publishing. Publishing shall do the following:

          (a) file with the Trustee, in accordance with Section 10.17 hereof, and in
any event within 30 days after Publishing is required to file the same with the
Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) which
Publishing is required to file with the Commission separately or together with
Hollinger International pursuant to Section 13 or Section 15(d) of the Exchange
Act; or, if Publishing is not required to file information, documents or
reports pursuant to either of said Sections, then it shall (i) deliver to the
Trustee annual audited financial statements of Publishing and its Restricted
Subsidiaries, prepared on a Consolidated basis in conformity with GAAP, within
120 days after the end of each fiscal year of Publishing, and (ii) file with
the Trustee and the Commission, in accordance with, and so long as not
prohibited by, the rules and regulations prescribed from time to time by the
Commission, such of the supplementary and periodic information, documents and
reports which may be required pursuant to Section 13 of the Exchange Act in
respect of a security listed and registered on a national securities exchange
as may be prescribed from time to time in such rules and regulations;

          (b) file with the Trustee and the Commission, in accordance with the rules
and regulations prescribed from time to time by the Commission, such additional
information, documents and reports with respect to compliance by Publishing
with the conditions and covenants of this Indenture as is required from time to
time by such rules and regulations (including such rules and regulations, if
any, referred to in Trust Indenture Act Section 314(a)); and

          (c) transmit by mail to all Holders or any other persons entitled to
receive a report pursuant to Trust Indenture Act Section 313(c), within 30 days
after the filing thereof with the Trustee, in the manner and to the extent
provided in Trust Indenture Act Section 313(c), such summaries of any
information, documents and reports required to be filed by Publishing pursuant
to Section 10.17 hereunder and subsections (a) and (b) of this Section as are
required and not prohibited by rules and regulations prescribed from time to
time by the Commission.

ARTICLE VIII

Consolidation, Merger, Sale of Assets

          SECTION 8.01. Publishing May Merge, Consolidate, etc., Only on Certain
Terms. (a) Publishing shall not, in a single transaction or a series of
related transactions, consolidate with or merge with or into any other Person
or sell, assign, convey, transfer, lease or otherwise dispose of all or
substantially all of its properties and assets to any Person or group of
affiliated Persons, or permit any of its Restricted Subsidiaries to enter into
any such transaction

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or transactions (other than, in the case of a Restricted
Subsidiary, such a consolidation, merger or transfer with or to one or more
Restricted Subsidiaries) if such transaction or transactions, in the aggregate,
would result in a sale, assignment, conveyance, transfer, lease or disposition
of all or substantially all of the properties and assets of Publishing and its
Restricted Subsidiaries on a Consolidated basis to any other Person or group of
affiliated Persons, unless at the time and after giving effect thereto:

		
	 	     (i) either (a) Publishing shall be the continuing corporation, or
(b) the Person (if other than Publishing) formed by such consolidation or
into which Publishing is merged or the Person which acquires by sale,
assignment, conveyance, transfer, lease or disposition all or
substantially all of the properties and assets of Publishing and its
Restricted Subsidiaries on a Consolidated basis (the “Surviving Entity”)
shall be a corporation duly organized and validly existing under the laws
of the United States of America, any state thereof or the District of
Columbia and shall expressly assume, by a supplemental indenture hereto,
executed and delivered to the Trustee, in form and substance reasonably
satisfactory to the Trustee, all the obligations of Publishing under the
Notes and this Indenture, and this Indenture shall remain in full force
and effect;
	 
	 	     (ii) immediately before and immediately after giving effect to such
transaction on a pro forma basis, no Default or Event of Default shall
have occurred and be continuing;
	 
	 	     (iii) immediately after giving effect to the transaction on a pro
forma basis, the Consolidated Net Worth of the Surviving Entity is not
less than the Consolidated Net Worth of Publishing and the Restricted
Subsidiaries immediately prior to the transaction;
	 
	 	     (iv) immediately before and immediately after giving effect to such
transaction on a pro forma basis (on the assumption that the transaction
occurred on the first day of the four-quarter period immediately prior to
the consummation of such transaction with the appropriate adjustments
with respect to the transaction being included in such pro forma
calculation), Publishing (or the Surviving Entity if Publishing is not
the continuing obligor under this Indenture) could Incur $1.00 of
additional Indebtedness under the provisions of Section 10.08 (other than
Permitted Indebtedness);
	 
	 	     (v) if any of the property or assets of Publishing or any of its
Restricted Subsidiaries would thereupon become subject to any Lien, the
provisions of Section 10.11 are complied with; and
	 
	 	     (vi) Publishing or the Surviving Entity shall have delivered, or
caused to be delivered, to the Trustee, in form and substance reasonably
satisfactory to the Trustee, an Officers’ Certificate and an Opinion of
Counsel, each to the effect that such consolidation, merger, transfer,
sale, assignment, lease or other transaction and the supplemental
indenture in respect thereof comply with the provisions described in this
Section 8.01(a) and that all conditions precedent herein provided for in
this Section 8.01(a) relating to such transaction have been complied
with.

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          (b) Hollinger International will not, in a single transaction or series of
related transactions, consolidate with or merge with or into any other Person
(other than Publishing, in which case the requirements of the foregoing
paragraph would apply), or sell, assign, convey, transfer, lease or otherwise
dispose of all or substantially all of its properties and assets on a
Consolidated basis to any Person (other than Publishing) if such transaction or
transactions, in the aggregate, would result in a sale, assignment, conveyance,
transfer, lease or disposition of all or substantially all of the properties
and assets of Hollinger International to any other Person or group of
affiliated Persons, unless at the time and after giving effect thereto:

		
	 	     (i) either (a) Hollinger International shall be the continuing
corporation or (b) the Person (if other than Hollinger International)
formed by such consolidation or into which Hollinger International is
merged or the Person which acquires by sale, assignment, conveyance,
transfer, lease or disposition all or substantially all of the properties
and assets of Hollinger International shall be a corporation duly
organized and validly existing under the laws of the United States of
America, any state thereof or the District of Columbia and shall (except
where Hollinger International is the continuing corporation) expressly
assume, by a supplemental indenture hereto, executed and delivered to the
Trustee, in form and substance reasonably satisfactory to the Trustee,
all the obligations of Hollinger International under the Notes and this
Indenture, and this Indenture shall remain in full force and effect;
	 
	 	     (ii) immediately before and immediately after giving effect to such
transaction on a pro forma basis, no Default or Event of Default shall
have occurred and be continuing; and
	 
	 	     (iii) Hollinger International shall have delivered, or caused to be
delivered, to the Trustee, in form and substance reasonably satisfactory
to the Trustee, an Officers’ Certificate and an Opinion of Counsel, each
stating that such consolidation, merger, sale, assignment, conveyance,
transfer, lease or other transaction and the supplemental indenture in
respect thereof comply with the provisions described in this Section
8.01(b), and that all conditions precedent herein provided for in this
Section 8.01(b) relating to such transactions have been complied with.

          (c) Notwithstanding anything in this Article Eight to the contrary, any
Guarantee by a Restricted Subsidiary of the Notes may be released in accordance
with the provisions of Section 10.12(b).

          SECTION
8.02. Successor Substituted. Upon any consolidation or merger, or
any sale, assignment, conveyance, transfer, lease or disposition of all or
substantially all of the properties and assets on a Consolidated basis of
Publishing or Hollinger International in accordance with Section 8.01 with
respect to which Publishing or Hollinger International is not the continuing
corporation, the successor Person formed by such consolidation or into which
Publishing or Hollinger International is merged or the successor Person to
which such sale, assignment, conveyance, transfer, lease or disposition is made
shall succeed to, and be substituted for, and may exercise every right and
power of, Publishing or Hollinger International, as the case may be, under this
Indenture, with the same effect as if such successor had been named as
Publishing or Hollinger International, as the case may be, herein. When a
successor

62

 

assumes all the obligations and covenants of its predecessor under
this Indenture or the Notes, the predecessor shall be released from those
obligations and covenants; provided that, in the case of a transfer by lease,
the predecessor shall not be released from the payment of principal and
interest on the Notes or, in the case of Hollinger International, its
Guarantee.

          Any successor to Publishing described in the foregoing paragraph may cause
to be signed, and may issue either in its own name or in the name of
Publishing, any or all of the Notes issuable hereunder which theretofore shall
not have been signed by Publishing and delivered to the Trustee; and, upon the
order of such successor, instead of Publishing, and subject to all the terms,
conditions and limitations in this Indenture prescribed, the Trustee shall
authenticate and shall deliver any Notes which previously shall have been
signed and delivered by the officers of Publishing to the Trustee for
authentication, and any Notes which such successor thereafter shall cause to be
signed and delivered to the Trustee for that purpose. All the Notes so issued
shall in all respects have the same legal rank and benefit under this Indenture
as the Notes theretofore or thereafter issued in accordance with the terms of
this Indenture as though all of such Notes had been issued at the date of the
execution of this Indenture.

ARTICLE IX

Supplemental Indentures

          SECTION 9.01. Supplemental Indentures and Agreements Without Consent of
Holders. Without the consent of any Holders of the Notes, Publishing, each
Guarantor and the Trustee, at any time and from time to time, may enter into
one or more indentures supplemental hereto, in form and substance reasonably
satisfactory to the Trustee, for any of the following purposes:

          (a) to evidence the succession of another Person to Publishing or any
Guarantor, and the assumption by any such successor of the covenants of
Publishing or such Guarantor, as the case may be, herein and in the Notes;

          (b) to add to the covenants of Publishing or the Guarantors for the
benefit of the Holders of the Notes (and if such covenants or the surrender of
such right or power are to be for the benefit of less than all Notes, stating
that such covenants are expressly being included or such surrenders are
expressly being made solely for the benefit of one or more specified Notes), or
to surrender any right or power conferred upon Publishing or the Guarantors in
this Indenture or the Notes;

          (c) to cure any ambiguity or to correct or supplement any provision in
this Indenture or the Notes which may be defective or inconsistent with any
other provision in this Indenture or the Notes;

          (d) to comply with the requirements of the Commission in order to effect
or maintain the qualification of this Indenture under the Trust Indenture Act,
as contemplated by Section 9.05 or otherwise;

          (e) to add a Guarantee of the Indenture Obligations;

63

 

          (f) to evidence and provide the acceptance of the appointment of a
successor Trustee hereunder;

          (g) to mortgage, pledge, hypothecate or grant a security interest in favor
of the Trustee for the benefit of the Holders as additional security, pursuant
to the requirements of Section 10.11 or otherwise, for the payment and
performance of the Indenture Obligations, in any property or assets, including
any which are required to be mortgaged, pledged or hypothecated, or in which a
security interest is required to be granted, to the Trustee pursuant to this
Indenture or otherwise;

          (h) to clarify or make any other provisions with respect to matters or
questions arising under this Indenture or the Notes; provided that, in each
case, such clarification or provision thus made shall not adversely affect the
interests of the Holders; and

          (i) to establish any form of Note, as provided in Article Two, and to
provide for the issuance of any Notes as provided in Article Three and to set
forth the terms thereof, and/or to add to the rights of the Holders of the
Notes.

          SECTION 9.02. Supplemental Indentures and Agreements with Consent of
Holders. Except as permitted by Section 9.01, with the consent of the Holders
of not less than a majority in aggregate principal amount of the Outstanding
Notes affected by such supplemental indenture or indentures, by Act of said
Holders delivered to Publishing and the Trustee, Publishing and each Guarantor
(if a party thereto) and the Trustee may (i) enter into an indenture or
indentures supplemental hereto, in form and substance reasonably satisfactory
to the Trustee, for the purpose of adding any provisions to or amending,
modifying or changing in any
manner or eliminating any of the provisions of this Indenture or the Notes
(including, but not limited to, for the purpose of modifying in any manner the
rights of the Holders of the Notes under this Indenture) or (ii) waive
compliance with any provision in this Indenture or the Notes (other than
waivers of past Defaults covered by Section 5.13 and waivers of covenants which
are covered by Section 10.19); provided, however, that no such supplemental
indenture, agreement or instrument shall, without the consent of the Holder of
each outstanding Notes affected thereby:

          (a) change the Stated Maturity of the principal of, or any installment of
interest on, any Notes or waive a default in the payment of the principal or
interest on any Note or reduce the principal amount thereof or the rate of
interest thereon or any premium payable upon the redemption thereof, or change
the coin or currency in which the principal of any Note or any premium or the
interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment after the Stated Maturity thereof;

          (b) amend, change or modify the obligation of Publishing to make and
consummate a Change of Control Offer in the event of a Change of Control in
accordance with Section 10.14, including amending, changing or modifying any of
the provisions or definitions with respect thereto;

          (c) reduce the percentage in principal amount of the Outstanding Notes,
the consent of whose Holders is required for any such supplemental indenture or
the consent of

64

 

whose Holders is required for any waiver of compliance with
certain provisions of this Indenture or certain Defaults hereunder and their
consequences provided for in this Indenture;

          (d) modify any of the provisions of this Section or Sections 5.13 or
10.19, except to increase the percentage of Outstanding Notes required for such
actions or to provide that certain other provisions of this Indenture cannot be
modified or waived without the consent of the Holder of each Note affected
thereby; or

          (e) except as otherwise permitted under Article VIII, consent to the
assignment or transfer by Publishing or Hollinger International of any of its
rights and obligations under this Indenture.

          Upon the written request of Publishing, accompanied by a copy of a Board
Resolution authorizing the execution of any such supplemental indenture, and
upon the filing with the Trustee of evidence of the consent of Holders as
aforesaid, the Trustee shall join with Publishing in the execution of such
supplemental indenture.

          It shall not be necessary for any Act of Holders under this Section to
approve the particular form of any proposed supplemental indenture or
agreement, but it shall be sufficient if such Act shall approve the substance
thereof.

          SECTION 9.03. Execution of Supplemental Indentures and Agreements. In
executing, or accepting the additional trusts created by, any supplemental
indenture, agreement or instrument permitted by this Article or the
modifications thereby of the trusts created by this Indenture, the Trustee
shall be entitled to receive, and (subject to Trust
Indenture Act Section 315(a) through 315(d) and Section 6.03 hereof) shall
be fully protected in relying upon, an Opinion of Counsel and an Officers’
Certificate to the effect that the execution of such supplemental indenture,
agreement or instrument is authorized or permitted by this Indenture. The
Trustee may, but shall not be obligated to, enter into any such supplemental
indenture, agreement or instrument which affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise.

          SECTION 9.04. Effect of Supplemental Indentures. Upon the execution of
any supplemental indenture under this Article, this Indenture shall be modified
in accordance therewith, and such supplemental indenture shall form a part of
this Indenture for all purposes; and every Holder of Notes theretofore or
thereafter authenticated and delivered hereunder shall be bound thereby.

          SECTION 9.05. Conformity with Trust Indenture Act. Every supplemental
indenture executed pursuant to this Article shall conform to the requirements
of the Trust Indenture Act as then in effect.

          SECTION 9.06. Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and shall if required by the Trustee, bear a
notation in form approved by the Trustee as to any matter provided for in such
supplemental indenture. If Publishing shall so determine, new Notes modified
so as to conform to any such supplemental indenture, in the

65

 

opinion of the
Trustee and the Board of Directors, may be prepared and executed by Publishing
and authenticated and delivered by the Trustee in exchange for outstanding
Notes.

          SECTION
9.07. Record Date. If Publishing shall solicit from the Holders
of any Notes any request, demand, authorization, direction, notice, consent,
waiver or other Act, Publishing may, but shall not be obligated to, fix a
record date for the purpose of determining the Holders of the Notes entitled to
consent to any supplemental indenture, agreement or instrument or any waiver,
and shall promptly notify the Trustee of any such record date. If a record
date is fixed, those Persons who were Holders of the Notes at such record date
(or their duly designated proxies), and only those Persons, shall be entitled
to consent to such supplemental indenture, agreement or instrument or waiver or
to revoke any consent previously given, whether or not such Persons continue to
be Holders after such record date. The record date shall be a date no more
than 30 days prior to the first solicitation of Holders generally in connection
therewith and no later than the date such solicitation is completed. No such
consent shall be valid or effective for more than six months after such record
date. Subject to applicable law, until any supplemental indenture, agreement,
instrument or waiver becomes effective, or a consent to it by a Holder of a
Note shall cease to be valid and effective as set forth in the preceding
sentence, such consent is a continuing consent by the Holder and every
subsequent Holder of a Note or portion of a Note that evidences the same debt
as the consenting Holder’s Note.

ARTICLE X

Covenants

          SECTION
10.01. Payment of Principal, Premium and Interest. With respect
to each Note, Publishing will duly and punctually pay the principal of,
premium, if any, and interest on such Note in accordance with the terms of such
Note and this Indenture.

          SECTION
10.02. Maintenance of Office or Agency. Publishing will maintain
in The City of New York an office or agency where Notes may be presented or
surrendered for payment, where Notes may be surrendered for registration of
transfer or exchange and where notices and demands to or upon Publishing in
respect of the Notes and this Indenture may be served. The office of the
Trustee at 40 Broad Street, 5th Floor, New York, NY 10004, shall be such office
or agency of Publishing, unless Publishing shall designate and maintain some
other office or agency for one or more of such purposes. Publishing will give
prompt written notice to the Trustee of any change in the location of any such
office or agency. If at any time Publishing shall fail to maintain any such
required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or
served at the Corporate Trust Office, and Publishing hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

          Publishing may from time to time designate one or more other offices or
agencies (in or outside of The City of New York) where the Notes may be
presented or surrendered for any or all such purposes, and may from time to
time rescind such designation; provided, however, that no such designation or
rescission shall in any manner relieve Publishing of its obligation to maintain
an office or agency in The City of New York for such purposes.

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     Publishing will
give prompt written notice to the Trustee of any such designation or rescission
and any change in the location of any such office or agency.

          SECTION
10.03. Money for Note Payments to be Held in Trust. Publishing
will, on or before Noon, New York time, on each due date of the principal of,
premium, if any, or interest on, the Notes, deposit with a Paying Agent (which
shall not be Publishing) a sum in same-day funds sufficient to pay the
principal, premium, if any, or interest so becoming due, such sum to be held in
trust for the benefit of the Persons entitled to such principal, premium or
interest, and (unless such Paying Agent is the Trustee) Publishing will
promptly notify the Trustee of such action or any failure so to act.

          Publishing will cause each Paying Agent other than the Trustee to execute
and deliver to the Trustee an instrument in which such Paying Agent shall agree
with the Trustee, subject to the provisions of this Section, that such Paying
Agent will:

          (a) hold all sums held by it for the payment of the principal of, premium,
if any, or interest on the Notes in trust for the benefit of the Persons
entitled thereto until such sums shall be paid to such Persons or otherwise
disposed of as herein provided;

          (b) give the Trustee notice of any Default by Publishing (or any other
obligor upon the Notes) in the making of any payment of principal, premium, if
any, or interest on the Notes;

          (c) at any time during the continuance of any such Default, upon the
written request of the Trustee, forthwith pay to the Trustee all sums so held
in trust by such Paying Agent; and

          (d) acknowledge, accept and agree to comply in all aspects with the
provisions of this Indenture relating to the duties, rights and liabilities of
such Paying Agent.

          Publishing may at any time, for the purpose of obtaining the satisfaction
and discharge of this Indenture with respect to the Notes or for any other
purpose, by Publishing Order direct any Paying Agent to pay to the Trustee all
sums held in trust by such Paying Agent in respect of the Notes as to which it
seeks to discharge this Indenture or, if for any other purpose, all sums so
held in trust by Publishing in respect of all Notes, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by
such Paying Agent; and, upon such payment by any Paying Agent to the Trustee,
such Paying Agent shall be released from all further liability with respect to
such money.

          Any money deposited with the Trustee or any Paying Agent in trust for the
payment of the principal of, premium, if any, or interest on any Note and
remaining unclaimed for two years after such principal and premium, if any, or
interest has become due and payable shall promptly be paid to Publishing upon
Publishing Request; and the Holder of such Note shall thereafter, as an
unsecured general creditor, look only to Publishing for payment thereof, and
all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of Publishing as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such payment to Publishing, may at the expense of
Publishing cause to be published once, in The New York Times and The Wall
Street

67

 

Journal (national edition), notice that such money remains unclaimed and
that, after a date specified therein, which shall not be less than 30 days from
the date of such notification or publication, any unclaimed balance of such
money then remaining will promptly be repaid to Publishing.

          SECTION
10.04. Corporate Existence. Subject to Article VIII, Publishing
will do or cause to be done all things necessary to preserve and keep in full
force and effect its corporate existence and related rights and franchises
(charter and statutory) of Publishing and each Restricted Subsidiary; provided,
however, that Publishing shall not be required to preserve any such right or
franchise or the corporate existence of any such Restricted Subsidiary if the
Board of Directors of Publishing shall determine that the preservation thereof
is no longer desirable in the conduct of the business of Publishing and its
Restricted Subsidiaries as a whole and that the loss thereof would not
reasonably be expected to have a material adverse effect on the ability of
Publishing to perform its obligations hereunder; and provided further, however,
that the foregoing shall not prohibit a sale, transfer or conveyance of a
Restricted Subsidiary or any of its assets in compliance with the terms of this
Indenture.

          SECTION
10.05. Payment of Taxes and Other Claims. Publishing will pay or
discharge or cause to be paid or discharged, on or before the date the same
shall become due and payable, (a) all material taxes, assessments and
governmental charges levied or imposed upon Publishing or any Restricted
Subsidiary shown to be due on any tax return of Publishing or any Restricted
Subsidiary or otherwise assessed or upon the income, profits or property of
Publishing or any Restricted Subsidiary and (b) all material lawful claims for
labor, materials and supplies, which, if unpaid, would by law become a Lien
upon the property of Publishing or any Restricted Subsidiary, except for any
Lien permitted to be Incurred under Section 10.11; provided, however, that
Publishing shall not be required to pay or discharge or cause to be paid or
discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings properly instituted and diligently conducted and in respect of
which appropriate reserves (in the good-faith judgment of management of
Publishing) are being maintained in accordance with GAAP consistently applied.

          SECTION
10.06. Maintenance of Properties. Publishing will cause all
material properties owned by Publishing or any Restricted Subsidiary or used or
held for use in the conduct of its business or the business of any Restricted
Subsidiary to be maintained and kept in good condition, repair and working
order (ordinary wear and tear excepted) and supplied with all necessary
equipment and will cause to be made all necessary repairs, renewals,
replacements, betterments and improvements thereof, all as in the judgment of
Publishing may be consistent with sound business practice and reasonably
necessary so that the business carried on in connection therewith may be
properly and advantageously conducted at all times; provided, however, that
nothing in this Section shall prevent Publishing from discontinuing the
maintenance of any of such properties if such discontinuance is, in the
judgment of Publishing, desirable in the conduct of the business of Publishing
and its Restricted Subsidiaries and not reasonably expected to have a material
adverse effect on the ability of Publishing to perform its obligations
hereunder.

          SECTION
10.07. Insurance. Publishing will at all times keep all of its
and its Restricted Subsidiaries’ properties which are of an insurable nature
reasonably self-insured or

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insured with insurers, believed by Publishing to be
responsible, against loss or damage to the extent that property of similar
character is usually so insured by corporations similarly situated and owning
like properties in the same general geographic areas in which Publishing and
its Restricted Subsidiaries operate, except where the failure to do so would
not reasonably be expected to have a material adverse effect on the condition
(financial or otherwise), earnings, business affairs or prospects of Publishing
and its Restricted Subsidiaries, taken as a whole.

          SECTION 10.08. Limitation on Indebtedness. Publishing will not, and will
not permit any of its Restricted Subsidiaries to, Incur any Indebtedness
(including any Acquired Indebtedness but excluding any Permitted Indebtedness)
except for (x) Indebtedness of Publishing or (y) Indebtedness of a Restricted
Subsidiary constituting Acquired Indebtedness or Permitted Subsidiary
Indebtedness, provided that, in the case of the foregoing clauses (x) and (y),
the Consolidated Cash Flow Ratio for Publishing and the Restricted Subsidiaries
for the four full fiscal quarters immediately preceding the Incurrence of such
Indebtedness taken as one period is not greater (A) for the period commencing
on the date of this Indenture and ending December 31, 2004, 6.0:1.0 and (B)
from and after January 1, 2005, 5.5:1.0. For purposes of determining the
Consolidated Cash Flow Ratio for any period, pro forma effect shall be given to
(i) the Incurrence of such Indebtedness and (if applicable) the application of
the net proceeds therefrom, including to refinance other Indebtedness, as if
such Indebtedness was Incurred, and the application of such proceeds occurred,
at the beginning of such four-quarter period; (ii) the Incurrence, repayment or
retirement of any other Indebtedness by Publishing and its Restricted
Subsidiaries since the first day of such four-quarter period as if such
Indebtedness was Incurred, repaid or retired at the beginning of such
four-quarter period; (iii) in the case of Acquired Indebtedness, the related
acquisition (as if such acquisition had been consummated on the first day of
such four-quarter period); and (iv) any acquisition or disposition by
Publishing and its Restricted Subsidiaries of any company or any business or
any assets out of the ordinary course of business, whether by merger, stock
purchase or sale or asset purchase or sale or any related repayment of
Indebtedness, in each case since the first day of such four-quarter period (as
if such acquisition or disposition had been consummated on the first day of
such four-quarter period).

          For purposes of determining compliance with any U.S. dollar denominated
restriction on the Incurrence of Indebtedness where the Indebtedness Incurred
is denominated in a different currency, the amount of such Indebtedness will be
the Dollar Equivalent determined on the date of the Incurrence of such
Indebtedness; provided, however, that if any such Indebtedness denominated in a
different currency is subject to a Currency Agreement with respect to U.S.
dollars covering all principal, premium, if any, and interest payable on such
Indebtedness, the amount of such Indebtedness expressed in U.S. dollars will be
as provided in such Currency Agreement. The principal amount of any
refinancing Indebtedness Incurred in the same currency as the Indebtedness
being refinanced will be the Dollar Equivalent of the Indebtedness refinanced,
except to the extent that (i) such Dollar Equivalent was determined based on a
Currency Agreement, in which case the refinancing Indebtedness will be
determined in accordance with the preceding sentence, and (ii) the principal
amount of the refinancing Indebtedness exceeds the principal amount of the
Indebtedness being refinanced, in which case the Dollar Equivalent of such
excess will be determined on the date such refinancing Indebtedness is
Incurred.

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          SECTION 10.09. Limitation on Restricted Payments. (a) Publishing will
not, and will not permit any Restricted Subsidiary to, directly or indirectly:

		
	 	     (i) declare or pay any dividend or make any other distribution or
payment on or in respect of Publishing’s Capital Stock (including
dividends or distributions of the Capital Stock of any Subsidiary), or
make any other payment to the direct or indirect holders (in their
capacities as such) of Publishing’s Capital Stock (other than (x) the
Permitted Distribution and (y) dividends or distributions payable in
shares of Publishing’s Qualified Capital Stock or in options, warrants or
other rights to acquire such Qualified Capital Stock);
	 
	 	     (ii) purchase, redeem or otherwise acquire or retire for value,
directly or indirectly, any Capital Stock of Publishing or any Capital
Stock of any Affiliate of Publishing (other than Capital Stock of any
Restricted Subsidiary or Capital Stock of a Person that is, or
immediately following such repurchase will become a Restricted
Subsidiary), or options, warrants or other rights to acquire such Capital
Stock;
	 
	 	     (iii) make any principal payment on, or repurchase, redeem, defease,
retire or otherwise acquire for value, prior to any scheduled principal
payment, sinking fund payment or maturity, any Subordinated Indebtedness
(other than Subordinated Indebtedness owing by Publishing to any
Restricted Subsidiary, by any Restricted Subsidiary to Publishing or by
any Restricted Subsidiary to any other Restricted Subsidiary);
	 
	 	     (iv) declare or pay any dividend or distribution on any Capital
Stock of any Restricted Subsidiary to any Person (other than (x)
dividends and distributions on Preferred Stock of Restricted Subsidiaries
or (y) dividends and distributions made to any Person on a pro rata basis
consistent with the ownership interests in such Capital Stock to the
owners of such Capital Stock, except that, in the case of the Capital
Stock of a Restricted Subsidiary that has provided a Guarantee, (i) no
Default or Event of Default shall have occurred and be continuing; and
(ii) no holders of any other Indebtedness of Publishing or any Restricted
Subsidiary shall have an Acceleration Right);
	 
	 	     (v) Incur, create or assume any guarantee of Indebtedness of any
Affiliate of Publishing (other than a Restricted Subsidiary of
Publishing);
	 
	 	     (vi) make any Restricted Investment in any Person; or
	 
	 	     (vii) designate any Restricted Subsidiary as an Unrestricted
Subsidiary;

(any of the payments described in paragraphs (i) through (vii) above, other
than any such action that is a Permitted Payment (as defined below),
collectively, “Restricted Payments”) unless at the time of and after giving
effect to the proposed Restricted Payment (the amount of any such Restricted
Payment, if other than cash, as determined by the Board of Directors, whose
determination shall be conclusive and evidenced by a Board Resolution), (1) no
Default or Event of Default shall have occurred and be continuing; (2) no
holders of any other Indebtedness of Publishing or any Restricted Subsidiary
shall have an Acceleration Right; (3) immediately before and immediately after
giving effect to such transaction on a pro forma basis, Publishing could

70

 

Incur
$1.00 of additional Indebtedness (other than Permitted Indebtedness) under the
provisions of Section 10.08; and (4) the aggregate amount expended by
Publishing and its Restricted
Subsidiary (provided that, in the case of a Restricted Payment by a Restricted
Subsidiary, such Restricted Payment is calculated for the purposes of this
paragraph (4) by multiplying the amount of the Restricted Payment by the
percentage of Publishing’s common equity interest in such Restricted Subsidiary
at the time of such Restricted Payment) in connection with all Restricted
Payments made subsequent to the Issue Date shall not exceed the sum of:

		
	 	     (A) Publishing’s Cumulative Credit (or, in the event such aggregate
Cumulative Credit shall be a deficit, minus 100% of such deficit) for the
period (taken as one accounting period) from October 1, 2002; plus
	 
	 	     (B) 100% of the Net Cash Proceeds received by Publishing from any
Person (other than a Restricted Subsidiary) from the issuance and sale
subsequent to the Issue Date of Qualified Capital Stock of Publishing
(excluding any such Net Cash Proceeds (1) from issuances and sales of
Qualified Capital Stock where the purchase is financed directly or
indirectly using funds borrowed from Publishing or any Subsidiary of
Publishing, and (2) to the extent such proceeds are used to purchase,
redeem or otherwise retire Capital Stock or Subordinated Indebtedness of
Publishing as set forth in (b)(ii) and (iii) below); plus
	 
	 	     (C) 100% of the Net Cash Proceeds received by Publishing from any
Person (other than from a Restricted Subsidiary) from the issuance or
exercise of options or warrants on Qualified Capital Stock of Publishing
subsequent to the Issue Date (except to the extent such proceeds are used
to purchase, redeem or otherwise retire Capital Stock or Subordinated
Indebtedness of Publishing as set forth in (b)(ii) and (iii) below); plus
	 
	 	     (D) 100% of the Net Cash Proceeds received after the Issue Date by
Publishing from cash capital contributions made to Publishing (other than
from a Restricted Subsidiary); plus
	 
	 	     (E) 100% of the Net Cash Proceeds received by Publishing from any
Person (other than from a Restricted Subsidiary) from the conversion into
Qualified Capital Stock of convertible Indebtedness or convertible
Preferred Stock issued and sold after the Issue Date; plus
	 
	 	     (F) 100% of the aggregate net proceeds of any (1) sale or other
disposition of Restricted Investments (which Investment was made after
the Issue Date) made by Publishing or a Restricted Subsidiary of
Publishing, (2) dividends or other distributions, whether liquidating or
otherwise, from, or the sale of capital stock of, an Unrestricted
Subsidiary, or (3) dividends or other distributions, whether liquidating
or otherwise, from Restricted Investments (which Investment was made
after the Issue Date); plus
	 
	 	     (G) with respect to any Unrestricted Subsidiary that is redesignated
by the Board of Directors as a Restricted Subsidiary, an amount equal to
the lower of (x) the fair market value (as determined by a majority of
the Independent Directors of the Board of Directors and evidenced by a
Board Resolution) of Publishing’s or a Restricted

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	 	Subsidiary’s interest
in such Unrestricted Subsidiary or (y) the amount of the original
Investment by Publishing or such Restricted Subsidiary in such
Unrestricted Subsidiary
plus any additional Investment made in such Unrestricted Subsidiary
after the date such Subsidiary was so designated; provided, that in
determining the amount of the Investment by Publishing or such Restricted
Subsidiary in (1) any Subsidiary designated as an Unrestricted Subsidiary
as of the date of this Indenture, such amount shall be the fair market
value of such Unrestricted Subsidiary as at the date of this Indenture,
(2) any Restricted Subsidiary that is designated as an Unrestricted
Subsidiary after the date of this Indenture, such amount shall be the
fair market value of such Unrestricted Subsidiary as at the date of such
designation, and (3) any Investment made in an Unrestricted Subsidiary
after the date such Subsidiary was so designated, such amount shall be
equal to the cash amount so invested or the fair market value of any
property contributed; plus
	 
	 	     (H) $30,000,000.

          (b) Notwithstanding the foregoing, and, in the case of clauses (ii)
through (vi) below, so long as (1) there is no Default or Event of Default
continuing and (2) no holders of any other Indebtedness of Publishing or any
Restricted Subsidiary have an Acceleration Right, the foregoing provisions will
not prohibit the following actions (clauses (i) through (vi) being referred to
as “Permitted Payments”):

		
	 	     (i) the payment of any dividend or distribution within 60 days after
the date of declaration thereof, if at such date of declaration such
payment would be permitted by the provisions of paragraph (a) of this
Section and such payment will be deemed to have been paid on such date of
declaration for purposes of the calculation required by paragraph (a) of
this Section;
	 
	 	     (ii) the repurchase, redemption or other acquisition or retirement
of any shares of Capital Stock of Publishing in exchange for (including
any such exchange pursuant to the exercise of a conversion right or
privilege in connection with which cash is paid in lieu of the issuance
of fractional shares or scrip), or out of the Net Cash Proceeds of a
substantially concurrent issue and sale for cash (other than to a
Restricted Subsidiary) of other Qualified Capital Stock of Publishing;
provided, that the Net Cash Proceeds from the issuance of such shares of
Qualified Capital Stock are excluded from clauses (4)(ii) and (4)(iii) of
paragraph (a) of this Section;
	 
	 	     (iii) any repurchase, redemption, defeasance, retirement or
acquisition for value or payment of principal of any Subordinated
Indebtedness in exchange for, or out of the net proceeds of, a
substantially concurrent issuance and sale for cash (other than to any
Restricted Subsidiary of Publishing) of any Qualified Capital Stock of
Publishing; provided, that the Net Cash Proceeds from the issuance of
such Qualified Capital Stock are excluded from clauses (4)(ii) and
(4)(iii) of paragraph (a) of this Section;
	 
	 	     (iv) the repurchase, redemption, defeasance, retirement,
refinancing, acquisition for value or payment of principal of any
Subordinated Indebtedness (other than Redeemable Capital Stock) (a
“refinancing”) through the issuance of new Subordinated Indebtedness of
Publishing; provided, that any such new Subordinated

72

 

		
	 	Indebtedness (1)
shall be in a principal amount that does not exceed the principal amount
so refinanced (or, if the Subordinated Indebtedness so refinanced
provides for an amount
less than the principal amount thereof to be due and payable upon a
declaration or acceleration thereof, then such lesser amount as of the
date of determination), plus the amount of any premium required to be
paid in connection with such refinancing pursuant to the terms of such
refinanced Indebtedness and any reasonable out-of-pocket expenses of
Publishing Incurred in connection with such refinancing; (2) has an
Average Life to Stated Maturity greater than the remaining Average Life
to Stated Maturity of the Notes; (3) has a Stated Maturity for its final
scheduled principal payment later than the Stated Maturity for the final
scheduled principal payment of the Notes; and (4) is expressly
subordinated in right of payment to the Notes at least to the same extent
as the Indebtedness to be refinanced;
	 
	 	     (v) loans, advances, dividends or distributions to Hollinger
International in amounts not to exceed $1,000,000 per year to permit
Hollinger International to repurchase, redeem or otherwise acquire or
retire any shares of its Capital Stock from employees, former employees
or their estates upon disability, death, retirement or termination of
employment; and
	 
	 	     (vi) tax payments pursuant to a Tax Sharing Agreement to the extent
that the aggregate amount of such payments do not exceed the aggregate
amount of the tax payments that Publishing and the Restricted
Subsidiaries would have been required to make if they alone constituted a
single consolidated tax group.

          For purposes of this Section, if the Board of Directors designates a
Restricted Subsidiary as an Unrestricted Subsidiary, a “Restricted Payment”
shall be deemed to have been made in an amount equal to the fair value of the
Investment of Publishing and its other Restricted Subsidiaries in such
Unrestricted Subsidiary as determined by the Board of Directors with the
concurrence of a majority of the Independent Directors (there being at least
one Independent Director), whose good faith determination shall be conclusive.
If a particular Restricted Payment involves a non-cash payment, including a
distribution of assets, then such Restricted Payment shall be deemed to be in
an amount equal to the fair market value of the non-cash portion of such
Restricted Payment as determined by the Board of Directors, whose good faith
determination shall be conclusive.

          SECTION
10.10. Limitation on Transactions with Affiliates. Publishing
will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly, enter into or suffer to exist any transaction or series of
related transactions (including, without limitation, the sale, purchase,
exchange or lease of assets, property or services) with any Affiliate of
Publishing (other than Publishing or a Restricted Subsidiary) unless (a) such
transaction or series of related transactions is on terms that are no less
favorable to Publishing or such Restricted Subsidiary, as the case may be, than
would be available in a comparable transaction in arm’s-length dealings with an
unrelated third party and (b) with respect to any transaction or series of
related transactions involving aggregate payments in excess of $5,000,000,
Publishing delivers an Officers’ Certificate to the Trustee certifying that
such transaction or series of related transactions complies with clause (a)
above and such transaction or series of related transactions has been approved
by a majority of the Independent Directors of the Board of Directors;

73

 

provided, that any transaction or series of related
transactions otherwise permitted under this paragraph (other than any
transaction or series of related transactions with respect to the making of any
Restricted Payment permitted pursuant to Section 10.09 pursuant to which
Publishing or any Restricted Subsidiary shall receive or render value exceeding
$15,000,000 shall not be permitted unless, prior to the consummation of any
such transaction or series of related transactions, Publishing shall have
received an opinion, from an independent nationally recognized investment
banking firm or firm experienced in the appraisal or similar review of similar
types of transactions, that such transaction is fair to Publishing from a
financial point of view; provided further, that this covenant shall not apply
to (i) transactions or agreements as in effect or securities outstanding on the
date of this Indenture (provided, that any amendment to any existing agreement,
and any transaction pursuant to the Business Opportunities Agreement, shall
require approval pursuant to this covenant; notwithstanding the foregoing, any
amendment to the Services Agreement or the Business Opportunities Agreement
shall only require the approval of a majority of the Independent Directors);
(ii) directors’ fees approved by the Board of Directors; (iii) any employee
benefit plan or arrangement entered into or made available to officers or other
employees of Publishing or the Restricted Subsidiaries in the ordinary course
of business; (iv) sales by Publishing and its Restricted Subsidiaries of their
products in the ordinary course of business on arm’s-length terms; (v) tax
payments pursuant to a Tax Sharing Agreement to the extent that the aggregate
amount of such payments do not exceed the aggregate amount of the tax payments
that Publishing and the Restricted Subsidiaries would have been required to
make if they alone constituted a single consolidated tax group; (vi) loans,
advances, dividends or distributions by Publishing to Hollinger International
in amounts and for the purpose permitted by Section 10.09(b)(v); and (vii)
payments made to The Ravelston Corporation Limited pursuant to the Services
Agreement that constitute the reimbursement for the fair value (as determined
by a majority of the Independent Directors serving on an Independent Committee)
of services received by Publishing or a Restricted Subsidiary consistent with
past practices.

          SECTION
10.11. Limitation on Liens. (a) Publishing will not, and will
not permit any Restricted Subsidiary to, create, incur, assume or suffer to
exist any Lien on any of its assets or properties of any character, or any
shares of Capital Stock or Indebtedness of any Restricted Subsidiary, without
making effective provision for all of the Notes and all other amounts due under
this Indenture to be directly secured equally and ratably with (or, if the
obligation or liability to be secured by such Lien is subordinated in right of
payment to the Notes, prior to) the obligation or liability secured by such
Lien.

          (b) The foregoing limitation does not apply to:

		
	 	     (i) Liens securing Indebtedness incurred under the Senior Credit
Facility that is permitted to be incurred under Section 10.08;
	 
	 	     (ii) Liens existing on the Issue Date;
	 
	 	     (iii) Liens granted after the Issue Date on any assets or Capital
Stock of Hollinger International or its Restricted Subsidiaries created
in favor of the Holders;

74

 

		
	 	     (iv) Liens with respect to the assets of a Restricted Subsidiary
granted by such Restricted Subsidiary to Hollinger International or a
Restricted Subsidiary to secure Indebtedness owing to Hollinger
International or such other Restricted Subsidiary;
	 
	 	     (v) Liens securing Indebtedness which is Incurred to refinance
secured Indebtedness which is permitted to be Incurred under clause (x)
of the definition of “Permitted Indebtedness”; provided that such Liens
do not extend to or cover any property or assets of Hollinger
International or any Restricted Subsidiary other than the property or
assets securing the Indebtedness being refinanced;
	 
	 	     (vi) Liens on any property or assets or capital stock of a
Restricted Subsidiary securing Indebtedness of such Restricted Subsidiary
permitted under Section 10.08; or
	 
	 	     (vii) Permitted Liens.

          SECTION
10.12. Limitation on Issuances of Guarantees of Indebtedness. (a)
Publishing will not permit any Restricted Subsidiary, directly or indirectly,
to guarantee, assume or in any other manner become liable with respect to any
Indebtedness of Publishing (other than pursuant to the Senior Credit Facility)
unless such Restricted Subsidiary simultaneously executes and delivers a
supplemental indenture to this Indenture providing for a senior Guarantee of
the Notes and if such Indebtedness of Publishing is by its terms pari passu
with or expressly subordinated to the Notes, any such assumption, guarantee or
other liability of such Restricted Subsidiary with respect to such Indebtedness
shall be pari passu with or subordinated to such Restricted Subsidiary’s
Guarantee to the same extent as such Indebtedness is pari passu with or
subordinated to the Notes.

          (b) Notwithstanding the foregoing, any Guarantee by a Restricted
Subsidiary of the Notes that is provided pursuant to the foregoing paragraph
may provide by its terms that it shall be automatically and unconditionally
released and discharged (i) upon any sale, exchange or transfer, to any Person
not an Affiliate of Publishing, of all of Publishing’s Capital Stock in, or all
or substantially all the assets of, such Restricted Subsidiary, which sale,
exchange or transfer is in compliance with this Indenture, (ii) if the
Restricted Subsidiary issuing such Guarantee ceases to be a Restricted
Subsidiary or (iii) upon the release by the holders of the Indebtedness of
Publishing described in paragraph (a) above of their guarantee by such
Restricted Subsidiary (including any deemed release upon payment in full of all
obligations under such Indebtedness), at a time when (A) no other Indebtedness
of Publishing or any Restricted Subsidiary has been guaranteed by such
Restricted Subsidiary or (B) the holders of all such other Indebtedness which
is guaranteed by such Restricted Subsidiary also release their guarantee by
such Restricted Subsidiary (including any deemed release upon payment in full
of all obligations under such Indebtedness).

          SECTION
10.13. Limitation on Sale of Assets. (a) Publishing will not,
and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, consummate an Asset Sale unless (i) at least 75% of the proceeds
from such Asset Sale are received in cash (provided, that the amount of (A) any
Pari Passu Indebtedness of Publishing or Indebtedness of any such Restricted
Subsidiary that
is pari passu with any guarantee of the Notes (as shown on Publishing’s or
such Restricted Subsidiary’s most recent balance sheet or in the notes thereto)
of

75

 

Publishing or any such Restricted Subsidiary that is assumed by the
transferee of any asset in connection with any Asset Sale and (B) any deferred
payment obligations received by Publishing or any such Restricted Subsidiary as
proceeds of an Asset Sale that are concurrently with the Asset Sale converted
into cash without recourse to Publishing or any of its Restricted Subsidiaries
shall be deemed to be cash for purposes of this provision; provided further
that, for purposes of this clause (i), “cash” shall include any cash proceeds
received from the sale of securities received in an Asset Sale as long as at
the time of such Asset Sale, Publishing or its Restricted Subsidiary, as
applicable, has entered into a legally binding agreement for the sale of such
securities and such securities are sold within 90 days of such Asset Sale; and
provided further that, this clause (i) shall not apply to (x) Newspaper
Businesses received by Publishing or a Restricted Subsidiary from the
transferee as consideration for an Asset Sale (an “Asset
Swap”) so long as,
immediately before and immediately after giving effect to such transaction on a
pro forma basis, Publishing could Incur $1.00 of additional Indebtedness (other
than Permitted Indebtedness) under the provisions of Section 10.08, (y) a CST
Real Estate Transaction or (z) a Permitted Real Estate Sale) and (ii)
Publishing or such Restricted Subsidiary receives consideration at the time of
such Asset Sale at least equal to the fair market value of the shares or assets
sold (as determined by the Board of Directors of Publishing and evidenced by a
Board Resolution). The value of any properties or assets (other than cash)
received pursuant to an Asset Sale shall be determined by the Board of
Directors of Publishing and evidenced by a Board Resolution; provided, that if
the value of the asset which is the subject of the Asset Sale is in excess of
$25,000,000, the value of the properties or assets received shall be determined
by an independent nationally recognized investment banking firm or firm
experienced in the appraisal or similar review of similar types of assets
(provided, that for purposes of this sentence, any CST Real Estate Transaction
(other than pursuant to an agreement in effect on the date of this Indenture)
shall be deemed to involve an asset whose value exceeds $25,000,000).

          (b) Publishing will, and will cause its Restricted Subsidiaries to, apply
100% of the Net Cash Proceeds of any Asset Sale.

		
	 	     (i) first, (A) to the extent Publishing elects (or is required under
the terms of such Indebtedness), to the permanent repayment of any Pari
Passu Indebtedness outstanding as of the date of the Asset Sale as
permitted or required by the terms thereof, (B) to the extent Publishing
elects, to the reinvestment by Publishing or such Restricted Subsidiary
in properties and assets that (as determined by the Board of Directors)
replace the properties and assets that were the subject of the Asset Sale
or in properties and assets that will be used in the businesses of
Publishing or its Restricted Subsidiaries existing on the date of this
Indenture or in businesses reasonably related thereto, or (C) to the
extent Publishing elects, to the making of an offer to purchase (an
“Offer”), out of such amount of the Net Cash Proceeds as Publishing shall
determine to allocate for such purpose (the “Allocated
Proceeds”), a
principal amount of Notes equal to the Notes Amount (as defined in clause
(c) below) and (to the extent so required by the terms of the debt
instrument governing such Indebtedness) a principal amount of Pari Passu
Indebtedness equal to the Pari Passu Amount (as defined in clause (c)
below), any such Offer pursuant to this clause (b)(i)(C) to be conducted
in accordance with the procedures set forth in clause (c) below
(substituting the term “Allocated Proceeds” in place of any reference
therein to “Excess Proceeds”) and in this Indenture (with any
Deficiency (as defined in clause (c) below) occurring after such Offer to
be excluded from the calculation of

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	 	Excess Proceeds and treated the same
as a Deficiency occurring after an Offer made using Excess Proceeds), any
such application pursuant to clauses (A), (B) and (C) to be made within
12 months of receipt of such Net Cash Proceeds;
	 
	 	     (ii) second, to the extent of the balance of such Net Cash Proceeds
after application in accordance with clause (i) above, to make an Offer
to purchase Notes pursuant to and subject to the conditions set forth
below; provided however, that if Publishing elects (or is required by the
terms of any Pari Passu Indebtedness), such Offer may be made ratably to
purchase the Notes and any Pari Passu Indebtedness of Publishing (any Net
Cash Proceeds from Asset Sales (excluding any Deficiency resulting from
an Offer made using Allocated Proceeds pursuant to clause (b)(i)(C)) that
are not applied as provided in clause (i) above shall constitute “Excess
Proceeds”); and
	 
	 	     (iii) third, to the extent of the balance of any Excess Proceeds
after application in accordance with clauses (i) and (ii) above, for any
general corporate purpose permitted pursuant to the terms of this
Indenture;

provided, however, that in connection with any prepayment, repayment or
purchase of Indebtedness pursuant to clauses (i)(A), (i)(C) and (ii) above,
Publishing or such Restricted Subsidiary will retire such Indebtedness and will
cause the related loan commitment (if any) to be permanently reduced in an
amount equal to the principal amount so prepaid, repaid or purchased.

          (c) When the aggregate amount of Excess Proceeds equals or exceeds
$10,000,000, Publishing shall apply the Excess Proceeds to the repayment of the
Notes and any Pari Passu Indebtedness required to be repurchased under the
instrument governing such Pari Passu Indebtedness as follows: (i) Publishing
shall make an offer to purchase (an “Offer”) from all Holders in accordance
with the procedures set forth in this Indenture in the maximum principal amount
(expressed as a multiple of $1,000) of Notes that may be purchased out of an
amount (the “Note Amount”) equal to the product of such Excess Proceeds
multiplied by a fraction, the numerator of which is the outstanding principal
amount of the Notes, and the denominator of which is the sum of the outstanding
principal amount of the Notes and such Pari Passu Indebtedness (subject to
proration in the event such amount is less than the aggregate Offered Price (as
defined herein) of all Notes tendered) and (ii) to the extent required by such
Pari Passu Indebtedness to permanently reduce the principal amount of such Pari
Passu Indebtedness, Publishing shall make an offer to purchase or otherwise
repurchase or redeem Pari Passu Indebtedness (a “Pari Passu Offer”) in an
amount (the “Pari Passu Debt Amount”) equal to the excess of the Excess
Proceeds over the Note Amount; provided, that in no event shall the Pari Passu
Debt Amount exceed the principal amount of such Pari Passu Indebtedness plus
the amount of any premium required to be paid to repurchase such Pari Passu
Indebtedness. The offer price shall be payable in cash in an amount equal to
100°% of the principal amount of the Notes plus accrued and unpaid interest, if
any, to the date (the “Purchase Date”) such Offer is consummated (the “Offered
Price”), in accordance with the procedures set forth below. To the extent that
the aggregate Offered Price of the Notes tendered pursuant to the Offer is less
than the Note Amount relating thereto or the aggregate amount of Pari Passu
Indebtedness that is
purchased is less than the Pari Passu Debt Amount (the amount of such
shortfall, if any, constituting a “Deficiency”), Publishing may use such
Deficiency for any purpose not otherwise

77

 

prohibited by this Indenture. Upon
completion of the purchase of all Notes tendered pursuant to an Offer and
repurchase of the Pari Passu Indebtedness pursuant to a Pari Passu Offer, the
amount of Excess Proceeds, if any, shall be reset at zero.

          (d) Whenever the aggregate amount of Excess Proceeds received by
Publishing exceeds $10,000,000, such Excess Proceeds shall, prior to the
purchase of Notes or any Pari Passu Indebtedness described in paragraph (c)
above, be set aside by Publishing in a separate account pending (i) deposit
with the depository or a Paying Agent of the amount required to purchase the
Notes or Pari Passu Indebtedness tendered in an Offer or a Pari Passu Offer and
(ii) delivery by Publishing of the Offered Price to the holders of the Notes or
Pari Passu Indebtedness tendered in an Offer or a Pari Passu Offer. Such
Excess Proceeds may be invested in Temporary Cash Investments; provided, that
the maturity date of any such investment made after the amount of Excess
Proceeds equals or exceeds $10,000,000 shall not be later than the Purchase
Date. Publishing shall be entitled to any interest or dividends accrued,
earned or paid on such Temporary Cash Investments; provided, that Publishing
shall not be entitled to such interest and shall not withdraw such interest
from the separate account, if an Event of Default has occurred and is
continuing.

          (e) If Publishing becomes obligated to make an Offer pursuant to paragraph
(c) above, the Notes shall be purchased by Publishing, at the option of the
Holders thereof, in whole or in part in integral multiples of $1,000, on a date
that is not earlier than 30 days and not later than 60 days from the date the
notice is given to Holders, or such later date as may be necessary for
Publishing to comply with the requirements under the Exchange Act, subject to
proration in the event the Note Amount is less than the aggregate Offered Price
of all Notes tendered.

          (f) Publishing shall comply with the applicable tender offer rules,
including Rule 14e-1 under the Exchange Act, and any other applicable
securities laws or regulations in connection with an Offer.

          (g) Publishing shall not, and shall not permit any Subsidiary to, create
or permit to exist or become effective any restriction (other than restrictions
existing under (i) Indebtedness as in effect on the Issue Date as such
Indebtedness may be refinanced from time to time or (ii) the Senior Credit
Facility; provided, in each case, that such restrictions are no less favorable
to the Holders than those existing on the date of this Indenture) that would
expressly impair the ability of Publishing to make an Offer to purchase the
Notes or, if such Offer is made, to pay for the Notes tendered for purchase.

          (h) Within 30 days after the date on which the amount of Excess Proceeds
equals or exceeds $10,000,000, Publishing shall send by first-class mail,
postage prepaid, to the Trustee and to each Holder of the Notes, at such
Holder’s address appearing in the Note Register, a notice stating or including:

		
	 	     (i) that the Holder of such Notes has the right to require
Publishing to repurchase, subject to proration, part or all of such
Holder’s Notes at the Offered Price;
	 
	 	     (ii) the Purchase Date;

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	 	     (iii) the instructions a Holder of such Notes must follow in order to
have its Notes purchased in accordance with paragraph (c) of this
Section; and

		
	 	     (iv) (A) the most recently filed Annual Report on Form 10-K
(including audited consolidated financial statements) of Publishing, the
most recent subsequently filed Quarterly Report on Form 10-Q, as
applicable, and any Current Report on Form 8-K of Publishing filed
subsequent to such Quarterly Report, other than Current Reports
describing Asset Sales otherwise described in the offering materials (or
corresponding successor reports) (or in the event Publishing is not
required to prepare any of the foregoing Forms, the comparable
information required pursuant to Section 10.17), (B) a description of
material developments in Publishing’s business subsequent to the date of
the latest of such Reports, (C) if material, appropriate pro forma
financial information, and (D) such other information, if any, concerning
the business of Publishing and its Restricted Subsidiaries which
Publishing in good faith believes will enable such Holders to make an
informed investment decision regarding the Offer;

		
	 	     (v) the Offered Price;

		
	 	     (vi) the names and addresses of the Paying Agent and the offices or
agencies referred to in Section 10.02;

		
	 	     (vii) that Notes must be surrendered at least three Business Days
prior to the Purchase Date to the Paying Agent or to an office or agency
referred to in Section 10.02 to collect payment;

		
	 	     (viii) that any Notes not tendered will continue to accrue interest
and that unless Publishing defaults in the payment of the purchase price,
any Note accepted for payment pursuant to the offer shall cease to accrue
interest on and after the Purchase Date; and

		
	 	     (ix) the procedures for withdrawing a tender.

     (i)  Holders electing to have the Notes purchased hereunder will be
required to surrender such Notes at the address specified in the notice at
least three Business Days prior to the Purchase Date. Holders will be entitled
to withdraw their election to have their Notes purchased pursuant to this
Section if Publishing receives, not later than three Business Days prior to the
Purchase Date, a telegram, telex, facsimile transmission or letter setting
forth (1) the name of the Holder, (2) the certificate number of the Note in
respect of which such notice of withdrawal is being submitted, (3) the
principal amount of the Note (which shall be $1,000 or an integral multiple
thereof) delivered for purchase by the Holder as to which his election is to be
withdrawn, (4) a statement that such Holder is withdrawing such Holder’s
election to have such principal amount of such Note purchased, and (5) the
principal amount, if any, of such Note (which shall be $1,000 or an integral
multiple thereof) that remains subject to the original notice of the Offer and
that has been or will be delivered for purchase by Publishing.

     (j)  Publishing shall (i) not later than the Purchase Date, accept for
payment Notes or portions thereof tendered pursuant to the Offer, (ii) not
later than 11:00 a.m. (New York time) on the Purchase Date, deposit with the
Trustee or with a Paying Agent an amount of money in same day funds (or New
York Clearing House funds if such deposit is made prior to the

79

 

Purchase Date) sufficient to pay the aggregate Offered Price of all the
Notes or portions thereof which are to be purchased on that date and (iii) not
later than 11:00 a.m. (New York time) on the Purchase Date, deliver to the
Paying Agent an Officers’ Certificate stating the Notes or portions thereof
have been accepted for payment by Publishing.

     The Trustee and the Paying Agent shall return to Publishing any cash that
remains unclaimed, together with interest, if any, thereon, held by them for
the payment of the Offered Price; provided, however, that, (x) to the extent
that the aggregate amount of cash deposited by Publishing with the Trustee or a
Paying Agent in respect of an Offer exceeds the aggregate Offered Price of the
Notes or portions thereof to be purchased, then the Trustee or a Paying Agent
shall hold such excess for Publishing and (y) unless otherwise directed by
Publishing in writing, promptly after the Business Day following the Purchase
Date the Trustee or a Paying Agent shall return any such excess to Publishing
together with interest or dividends, if any, thereon.

     (k)  Notes to be purchased shall, on the Purchase Date, become due and
payable at the Offered Price and from and after such date (unless Publishing
shall default in the payment of the Offered Price) such Notes shall cease to
bear interest. The Offered Price shall be paid to such Holder promptly
following the later of the Purchase Date and the time of delivery of such Note
to the relevant Paying Agent at the office of such Paying Agent by the Holder
thereof in the manner required. Upon surrender of any such Note for purchase
in accordance with the foregoing provisions, such Note shall be paid by
Publishing at the Offered Price; provided, however, that installments of
interest whose Stated Maturity is on or prior to the Purchase Date shall be
payable to the Holders of such Notes, or one or more Predecessor Notes,
registered as such on the relevant Regular Record Dates according to the terms
and the provisions of Section 3.08; provided, further that Notes to be
purchased are subject to proration in the event the Excess Proceeds are less
than the aggregate Offered Price of all Notes tendered for purchase, with such
adjustments as may be deemed appropriate by the Trustee so that only Notes in
denominations of $1,000 or integral multiples thereof shall be purchased. If
any Note tendered for purchase in accordance with the terms of this Section
shall not be so paid upon surrender thereof by deposit of funds with the
Trustee or a Paying Agent in accordance with paragraph (j) above, the principal
thereof (and premium, if any, thereon) shall, until paid, bear interest from
the Purchase Date at the rate borne by such Note. Any Note that is to be
purchased only in part shall be surrendered to a Paying Agent in accordance
with the terms of this Section at the office of such Paying Agent (with, if
Publishing or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to Publishing and the Trustee duly
executed by, the Holder thereof or such Holder’s attorney duly authorized in
writing), and Publishing shall execute and pursuant to a Publishing Order the
Trustee shall authenticate and deliver to the Holder of such Note, without
service charge, one or more new Notes of any authorized denomination as
requested by such Holder in an aggregate principal amount equal to, and in
exchange for, the portion of the principal amount of the Note so surrendered
that is not purchased.

     SECTION 10.14. Purchase of Notes upon a Change of Control. (a) If a
Change of Control shall occur at any time, each Holder with respect to Notes
shall have the right to require that Publishing purchase such Holder’s Notes,
pursuant to an offer described in subsection (b) of this Section (a “Change of
Control Offer”), in whole or in part in integral multiples of $1,000, at a
purchase price (the “Change of Control Purchase Price”) in cash in an

80

 

amount
equal to 101% of the principal amount of such Notes, plus accrued and unpaid
interest, if any, to the date of purchase (the “Change of Control Purchase
Date”), in accordance with the procedures set forth in paragraphs (b), (c), (d)
and (e) of this Section.

     (b)  Within 30 days following any Change of Control, Publishing shall
notify the Trustee thereof and give written notice (a “Change of Control
Purchase Notice”) of such Change of Control to each Holder by first-class mail,
postage prepaid, to the Trustee and to each Holder at his address appearing in
the Note Register, stating or including:

		
	 	     A. that a Change of Control has occurred, the date of such event,
and that such Holder has the right to require Publishing to repurchase
such Holder’s Notes at the Change of Control Purchase Price;

		
	 	     B. the circumstances and relevant facts regarding such Change of
Control (including but not limited to information with respect to pro
forma historical income, cash flow and capitalization after giving effect
to such Change of Control, if any);

		
	 	     C. that the Change of Control Offer is being made pursuant to
Section 10.14(a) and that all Notes properly tendered pursuant to the
Change of Control Offer will be accepted for payment at the Change of
Control Offer Purchase Price;

		
	 	     D. the Change of Control Purchase Date, which shall be a Business
Day no earlier than 30 days nor later than 60 days from the date such
notice is mailed or such later date as may be necessary for Publishing to
comply with the requirements under the Exchange Act;

		
	 	     E. (i) the most recently filed Annual Report on Form 10-K (including
audited consolidated financial statements) of Publishing, the most recent
subsequently filed Quarterly Report on Form 10-Q, as applicable, and any
Current Report on Form 8-K of Publishing filed subsequent to such
Quarterly Report (or in the event Publishing is not required to prepare
any of the foregoing Forms, the comparable information required to be
prepared by Publishing pursuant to Section 10.17), (ii) a description of
material developments in Publishing’s business subsequent to the date of
the latest of such reports and (iii) such other information, if any,
concerning the business of Publishing and its Restricted Subsidiaries
which Publishing in good faith believes will enable such Holders to make
an informed investment decision regarding the Change of Control Offer;

		
	 	     F. the Change of Control Purchase Price;

		
	 	     G. the names and addresses of the Paying Agent and the offices or
agencies referred to in Section 10.02;

		
	 	     H. that Notes must be surrendered at least three Business Days prior
to the Change of Control Purchase Date to the Paying Agent at the Office
of the Paying Agent or to an office or agency referred to in Section
10.02 to collect payment;

81

 

		
	 	     I. that the Change of Control Purchase Price for any Note which has
been properly tendered and not withdrawn will be paid promptly following
the Change of Control Purchase Date;

		
	 	     J. the procedures for withdrawing a tender of Notes and Change of
Control Purchase Notice;

		
	 	     K. that any Note not tendered will continue to accrue interest; and

		
	 	     L. that, unless Publishing defaults in the payment of the Change of
Control Purchase Price, any Note accepted for payment pursuant to the
Change of Control Offer shall cease to accrue interest after the Change
of Control Purchase Date.

     (c)  Upon receipt by Publishing of the proper tender of Notes, each Holder
of a Note in respect of which such proper tender was made shall (unless the
tender of such Note is properly withdrawn) thereafter be entitled to receive
solely the Change of Control Purchase Price with respect to such Note. Upon
surrender of any such Note for purchase in accordance with the foregoing
provisions, such Note shall be paid by Publishing at the Change of Control
Purchase Price; provided, however, that installments of interest whose Stated
Maturity is on or prior to the Change of Control Purchase Date shall be payable
to the Holders of such Notes, or one or more Predecessor Notes, registered as
such on the relevant Regular Record Dates according to the terms and the
provisions of Section 3.08. If any Note tendered for purchase in accordance
with the provisions of this Section shall not be so paid upon surrender thereof
by deposit of funds with the Paying Agent in accordance with paragraph (d)
below, the principal thereof (and premium, if any, thereon) shall, until paid,
bear interest from the Change of Control Purchase Date at the rate borne by
such Note. Holders electing to have such Notes purchased will be required to
surrender such Notes to the Paying Agent at the address specified in the notice
at least three Business Days prior to the Change of Control Purchase Date. Any
such Notes that are to be purchased only in part shall be surrendered to a
Paying Agent in accordance with the provisions of this Section at the office of
such Paying Agent (with, if Publishing or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to
Publishing and the Trustee duly executed by, the Holder thereof or such
Holder’s attorney duly authorized in writing), and Publishing shall execute and
pursuant to a Publishing Order the Trustee shall authenticate and deliver to
the Holder of such Note, without service charge, one or more new Notes of any
authorized denomination as requested by such Holder in an aggregate principal
amount equal to, and in exchange for, the portion of the principal amount of
the Note so surrendered that is not purchased.

     (d)  Publishing shall (i) not later than the Change of Control Purchase
Date, accept for payment of Notes or portion thereof tendered pursuant to the
Change of Control Offer, (ii) not later than 11:00 a.m. (New York time) on the
Change of Control Purchase Date, deposit with the Paying Agent an amount of
cash sufficient to pay the aggregate Change of Control Purchase Price of all
the Notes or portions thereof which are to be purchased as of the Change of
Control Purchase Date and (iii) not later than 11:00 a.m. (New York time) on
the Change of Control Purchase Date, deliver to the Paying Agent an Officers’
Certificate stating the Notes or portions thereof accepted for payment by
Publishing. The Paying Agent shall promptly mail or deliver to Holders of
Notes so accepted payment in an amount equal to the Change of Control Purchase

82

 

Price of the Notes purchased from each such Holder. Any Notes not so
accepted shall be promptly mailed or delivered by the Paying Agent at
Publishing’s expense to the Holder thereof. Publishing will publicly announce
the results of the Change of Control Offer on the Change of Control Purchase
Date. For purposes of this Section, Publishing shall choose a Paying Agent
which shall not be Publishing.

     (e)  A tender made in response to a Change of Control Purchase Notice may
be withdrawn before or after delivery by the Holder to the Paying Agent at the
office of the Paying Agent of the Notes to which such Change of Control
Purchase Notice relates, by means of a written notice of withdrawal delivered
by the Holder to the Paying Agent at the office of the Paying Agent or to the
office or agency referred to in Section 10.02 to which the related Change of
Control Purchase Notice was delivered not later than three Business Days prior
to the Change of Control Purchase Date specifying as applicable:

		
	 	     (1) the name of the Holder;

		
	 	     (2) the certificate number of the Note in respect of which such
notice of withdrawal is being submitted;

		
	 	     (3) the principal amount of the Note (which shall be $1,000 or an
integral multiple thereof) delivered for purchase by the Holder as to
which such notice of withdrawal is being submitted;

		
	 	     (4) a statement that such Holder is withdrawing such Holder’s
election to have such principal amount of such Note purchased; and

		
	 	     (5) the principal amount, if any, of such Note (which shall be
$1,000 or an integral multiple thereof) that remains subject to the
original Change of Control Purchase Notice and that has been or will be
delivered for purchase by Publishing.

     (f)  As provided in the Notes, the Trustee and the Paying Agent shall
return to Publishing any cash that remains unclaimed, together with interest or
dividends, if any, thereon, held by either of them for the payment of the
Change of Control Purchase Price; provided, however, that, (x) to the extent
that the aggregate amount of cash deposited by Publishing pursuant to clause
(ii) of paragraph (d) above exceeds the aggregate Change of Control Purchase
Price of the Notes or portions thereof to be purchased, then the Trustee or the
Paying Agent shall hold such excess for Publishing and (y) unless otherwise
directed by Publishing in writing, promptly after the Business Day following
the Change of Control Purchase Date, the Trustee or the Paying Agent shall
return any such excess to Publishing together with interest, if any, thereon.

     (g)  Publishing shall comply with the applicable tender offer rules,
including Rule 14e-1 under the Exchange Act, and any other applicable
securities laws or regulations in connection with a Change of Control Offer.

     (h)  Notwithstanding the occurrence of a Change of Control, Publishing
shall not be obligated to repurchase the Notes pursuant to a Change of Control
Offer, or otherwise comply

83

 

with this Section, if Publishing has elected to redeem all of the Notes in
accordance with Article XI.

     Publishing shall not, and shall not permit any Subsidiary to, create or
permit to exist or become effective any restriction (other than restrictions
existing under (i) Indebtedness as in effect on the date of this Indenture as
such Indebtedness may be refinanced from time to time or (ii) the Senior Credit
Facility, provided, in each case, that such restrictions are no less favorable
to the Holders than those existing on the date of this Indenture) that would
expressly impair the ability of Publishing to make a Change of Control Offer to
purchase the Notes or, if such Change of Control Offer is made, to pay for the
Notes tendered for purchase.

     SECTION 10.15. Limitation on Issuance and Sale of Capital Stock of
Restricted Subsidiaries. Publishing will not permit:

     (a)  any Restricted Subsidiary to issue any Capital Stock (other than to
Publishing or any Restricted Subsidiary); or

     (b)  any Person (other than Publishing or a Restricted Subsidiary) to
acquire any Capital Stock of any Restricted Subsidiary from Publishing or any
Restricted Subsidiary,

except if, immediately after giving effect to such issuance or sale, such
Restricted Subsidiary would continue to be a Restricted Subsidiary or if,
immediately after giving effect to such issuance or sale, such Restricted
Subsidiary would no longer be a Restricted Subsidiary and Publishing’s
Investment in such Person after giving effect to such issuance or sale would
have been permitted to be made under Section 10.09 as if made on the date of
such issuance or sale (and such Investment shall be deemed to be an Investment
made for the purposes of such covenant). The proceeds of any issuance or sale
of such Capital Stock permitted hereby will be treated as Net Cash Proceeds
from an Asset Sale and must be applied in accordance with the provisions of
Section 10.13.

     SECTION 10.16. Limitation on Dividends and Other Payment Restrictions
Affecting Restricted Subsidiaries. Publishing will not, and will not permit
any of its Restricted Subsidiaries to, directly or indirectly, create or
otherwise cause or suffer to exist or become effective any encumbrance or
restriction on the ability of any Restricted Subsidiary to (a) pay dividends or
make any other distribution on its Capital Stock to Publishing or any other
Restricted Subsidiary, (b) pay any Indebtedness owed to Publishing or any other
Restricted Subsidiary, (c) make any Investment in Publishing or (d) transfer
any of its properties or assets to Publishing or any Restricted Subsidiary,
except (i) any encumbrance or restriction pursuant to or in connection with the
Senior Credit Facility as in effect on the date of this Indenture or any other
agreement in effect on the date of this Indenture, (ii) any encumbrance or
restriction, with respect to a Restricted Subsidiary that is not a Restricted
Subsidiary of Publishing on the date of this Indenture, in existence at the
time such Person becomes a Restricted Subsidiary of Publishing and not Incurred
in connection with, or in contemplation of, such Person becoming a Restricted
Subsidiary, (iii) any encumbrance or restriction pursuant to or in connection
with documents
existing or securing any Permitted Subsidiary Indebtedness that is not
materially more restrictive than the terms of any such restrictions existing on
the date of this Indenture or the date such Subsidiary becomes a Restricted
Subsidiary, as determined in good faith by an

84

 

officer of Publishing, (iv)
customary provisions restricting subletting or assignment of any lease
governing a leasehold interest of Publishing or any Restricted Subsidiary and
(v) any encumbrance or restriction existing under any amendments,
modifications, restatements, renewals, supplements, replacements or
refinancings of the agreements containing the encumbrances or restrictions in
the foregoing clauses (i), (ii) and (iii); provided, that the terms and
conditions of any such encumbrances or restrictions, taken as a whole, are not
materially less favorable to the Holders than those under or pursuant to the
agreement evidencing the Indebtedness so extended, renewed, refinanced or
replaced.

     SECTION 10.17. Provision of Financial Statements. Whether or not Hollinger
International is subject to Section 13(a) or 15(d) of the Exchange Act,
Hollinger International will, to the extent permitted under the Exchange Act,
file with the Commission the annual reports, quarterly reports and other
documents that it would have been required to file with the Commission pursuant
to such Sections 13(a) or 15(d), including any information relating to
Publishing as may be required by Regulation S-X under the Exchange Act or by
the Commission, if it were so subject, such documents to be filed with the
Commission on or prior to the respective dates (the “Required Filing Dates”) by
which it would have been required so to file such documents if it were so
subject. Hollinger International will in any event (x) within 15 days of such
Required Filing Date (i) transmit by mail to all Holders, as their names and
addresses appear in the Note Register, without cost to such Holders and (ii)
file with the Trustee copies of the annual reports, quarterly reports and other
documents which Publishing would have been required to file with the Commission
pursuant to Section 13(a) or 15(d) of the Exchange Act if Hollinger
International were subject to such Sections and (y) if filing such documents by
Hollinger International with the Commission is not permitted under the Exchange
Act, promptly upon written request and payment of the reasonable cost of
duplication and delivery, supply copies of such documents to any prospective
holder of Notes at Publishing’s cost.

     SECTION 10.18. Statement by Officers as to Default. (a) Publishing will
deliver to the Trustee, on or before a date not more than 45 days after the end
of each fiscal quarter and not more than 90 days after the end of each fiscal
year of Publishing ending after the date hereof, a written statement signed by
two executive officers of Publishing, one of whom shall be the principal
executive officer, principal financial officer or principal accounting officer
of Publishing, stating whether or not, after a review of the activities of
Publishing during such year or such quarter and of Publishing’s performance
under this Indenture, to the best knowledge, based on such review, of the
signers thereof, Publishing has fulfilled all its obligations and is in
compliance with all conditions and covenants under this Indenture throughout
such year or quarter, as the case may be, and, if there has been a Default,
specifying each Default and the nature and status thereof.

     (b)  When any Default or Event of Default has occurred and is continuing,
or if the Trustee or any Holder or the trustee for or the holder of any other
evidence of Indebtedness of
Publishing or any Restricted Subsidiary gives any notice or takes any
other action with respect to a claimed default, Publishing shall deliver to the
Trustee by registered or certified mail or by telegram, telex or facsimile
transmission followed by hard copy an Officers’ Certificate specifying such
Default, Event of Default, notice or other action, the status thereof and what
action Publishing is taking or proposes to take with respect thereto, within
five Business Days of its occurrence.

85

 

     SECTION 10.19. Waiver of Certain Covenants. Publishing may omit in any
particular instance to comply with any covenant or condition set forth in
Sections 10.05 through 10.13 and Sections 10.15 through 10.18 if, before or
after the time for such compliance, the Holders of not less than a majority in
aggregate principal amount of the Notes at the time Outstanding waive such
compliance in such instance with such covenant or condition, but no such waiver
shall extend to or affect such covenant or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the
obligations of Publishing and the duties of the Trustee in respect of any such
covenant or condition shall remain in full force and effect.

     SECTION 10.20. Limitation on the Designation of Unrestricted Subsidiaries.
(a) The Board of Directors may designate any Restricted Subsidiary as an
Unrestricted Subsidiary if (i) such action is in compliance with Section 10.09
of this Indenture and (ii) such action complies with the definition of
“Unrestricted Subsidiaries”.

     (b)  The Board of Directors may designate any Unrestricted Subsidiary as a
Restricted Subsidiary if immediately after giving effect to such action (and
treating any Acquired Indebtedness as having been Incurred at the time of such
action), Publishing could have Incurred at least $1.00 of additional
Indebtedness (other than Permitted Indebtedness) pursuant to Section 10.08 of
this Indenture.

ARTICLE XI

Redemption of Notes

     SECTION 11.01. Right of Redemption. The Notes may be redeemed, at the
election of Publishing, as a whole or in part, at any time on or after December
15, 2006, subject to the conditions and at the Redemption Prices specified in
the form of Note or in the indenture supplemental hereto with respect to the
Notes as provided in Exhibit A, together with accrued and unpaid interest, if
any, to the Redemption Date (subject to the right of Holders of record of the
Notes on relevant Regular Record Dates and Special Record Dates to receive
interest due on relevant Interest Payment Dates) to the extent that this
Article does not conflict with the terms of the form of Note.

     SECTION 11.02. Applicability of Article. Redemption of Notes at the election of Publishing or otherwise, as
permitted or required by any provision of this Indenture, shall be made in
accordance with such provision and this Article.

     SECTION 11.03. Election to Redeem; Notice to Trustee. The election of
Publishing to redeem any Notes pursuant to Section 11.01 shall be evidenced by
a Publishing Order and an Officers’ Certificate. In case of any redemption at
the election of Publishing, Publishing shall, not less than 30 nor more than 60
days prior to the Redemption Date fixed by Publishing (unless a shorter notice
period shall be satisfactory to the Trustee), notify the Trustee in writing of
such Redemption Date and of the principal amount of the Notes to be redeemed.

     SECTION 11.04. Selection by Trustee of Notes to be Redeemed. (a) If less
than all the Notes are to be redeemed, the portions of the Notes to be redeemed
shall be selected not

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more than 60 days prior to the Redemption Date by the
Trustee (or such shorter period as the Trustee may agree upon), from the
Outstanding Notes not previously called for redemption, by lot or such other
method as the Trustee shall deem fair and reasonable, and the amounts to be
redeemed may be equal to $1,000 or any integral multiple thereof, unless
otherwise provided in the terms of the Notes.

     (b)  The Trustee shall promptly notify Publishing and the Note Registrar in
writing of the Notes selected for redemption and, in the case of Notes selected
for partial redemption, the principal amount thereof to be redeemed.

     (c)  For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to redemption of Notes shall relate, in the
case of any Note redeemed or to be redeemed only in part, to the portion of the
principal amount of such Note which has been or is to be redeemed.

     SECTION 11.05. Notice of Redemption. (a) Notice of redemption shall be
given by first-class mail, postage prepaid, mailed not less than 30 nor more
than 60 days prior to the Redemption Date, to each Holder of Notes to be
redeemed, at his address appearing in the Note Register. All notices of
redemption shall state:

		
	 	     (i) the Redemption Date;
	 
	 	     (ii) the Redemption Price;
	 
	 	     (iii) if less than all the Outstanding Notes are to be redeemed,
the identification of the particular Notes to be redeemed;
	 
	 	     (iv) in the case of a Note to be redeemed in part, the principal
amount of such Note to be redeemed and that after the Redemption Date
upon surrender of such Note, a
new Note or Notes in the aggregate principal amount equal to the
unredeemed portion thereof will be issued;
	 
	 	     (v) that Notes called for redemption must be surrendered to the
Paying Agent to collect the Redemption Price;
	 
	 	     (vi) that on the Redemption Date the Redemption Price will become
due and payable upon each such Note or portion thereof to be redeemed,
and that (unless Publishing shall default in payment of the Redemption
Price) interest thereon shall cease to accrue on and after said date;
	 
	 	     (vii) the place or places where such Notes are to be surrendered for
payment of the Redemption Price; and
	 
	 	     (viii) the CUSIP number, if any, relating to such Notes.

     (b)  Notice of redemption of Notes to be redeemed at the election of
Publishing shall be given by Publishing or at Publishing’s written request, by
the Trustee in the name and at the expense of Publishing. If Publishing elects
to give notice of redemption, it shall provide the

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Trustee with a certificate
stating that such notice has been given in compliance with the requirements of
this Section.

     (c)  Such notice if mailed in the manner herein provided shall be
conclusively presumed to have been given, whether or not the Holder receives
such notice. In any case, failure to give such notice by mail or any defect in
the notice to the Holder of any Note designated for redemption as a whole or in
part shall not affect the validity of the proceedings for the redemption of any
other Note.

     SECTION 11.06. Deposit of Redemption Price. Prior to 11:00 a.m., New York
City time, on any Redemption Date, Publishing shall irrevocably deposit with
the Trustee or with a Paying Agent an amount of money in same day funds
sufficient to pay the Redemption Price of, and, except if the Redemption Date
shall be an Interest Payment Date, accrued interest on, all the Notes or
portions thereof which are to be redeemed on that date. The Trustee or the
Paying Agent shall hold in trust for, and return to, Publishing promptly after
the Business Day following the Redemption Date any interest or dividends, if
any, earned on amounts deposited with the Trustee or the Paying Agent remaining
after the payment of the aggregate Redemption Price for all Notes to be
redeemed; provided that neither the Trustee nor the Paying Agent shall be under
any obligation to place or invest such funds in an interest bearing account.

     SECTION 11.07. Notes Payable on Redemption Date. (a) Notice of redemption
having been given as aforesaid, the Notes so to be redeemed shall, on the
Redemption Date, become due and payable at the Redemption Price therein
specified and from and after such date (unless Publishing shall not have
deposited funds in accordance with Section 11.06 in respect of the payment of
the Redemption Price and accrued interest) such Notes shall cease to bear
interest. Upon surrender
of any such Note for redemption in accordance with said notice, such Note
shall be paid by Publishing at the Redemption Price together with accrued
interest to the Redemption Date; provided, however, that installments of
interest whose Stated Maturity is on or prior to the Redemption Date shall be
payable to the Holders of such Notes, or one or more Predecessor Notes,
registered as such on the relevant Regular Record Dates according to the terms
and the provisions of Section 3.08.

     (b)  If any Note called for redemption shall not be so paid upon surrender
thereof for redemption, by deposit or segregation of funds in accordance with
Section 11.06, the principal and premium, if any, shall, until paid, bear
interest from the Redemption Date at the rate then borne by such Note.

     SECTION 11.08. Notes Redeemed or Purchased in Part. Any Note which is to
be redeemed or purchased only in part shall be surrendered to the Paying Agent
at the office or agency maintained for such purpose pursuant to Section 10.02
(with, if Publishing, the Note Registrar or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to
Publishing, the Note Registrar or the Trustee as the case may be, duly executed
by the Holder thereof or such Holder’s attorney duly authorized in writing),
and Publishing shall execute, and pursuant to a Publishing Order the Trustee
shall authenticate and deliver to the Holder of such Note without service
charge, a new Note or Notes, of any authorized denomination as requested by
such Holder in aggregate principal amount equal to,

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and in exchange for, the
unredeemed portion of the principal of the Note so surrendered that is not
redeemed or purchased.

ARTICLE XII

Satisfaction and Discharge

     SECTION
12.01. Satisfaction and Discharge of Indenture. This Indenture
shall cease to be of further effect (except as to surviving rights of
registration of transfer or exchange of the Notes herein expressly provided
for) and the Trustee, on demand of and at the expense of Publishing, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture, when

     (a)  either:

		
	 	     (i) all the Notes theretofore authenticated and delivered
(other than (x) lost, stolen or destroyed Notes which have been
replaced or paid as provided in Section 3.07 and (y) Notes for
whose payment United States dollars have theretofore been
irrevocably deposited in trust by Publishing and thereafter repaid
to Publishing or discharged from such trust, as provided in Section
10.03) have been delivered to the Trustee for cancellation; or

		
	 	     (ii) all Notes not theretofore delivered to the Trustee for
cancellation

		
	 	     (x) have become due and payable, or

		
	 	     (y) will become due and payable at their Stated Maturity
within one year, or

		
	 	     (z) are to be called for redemption within one year
under arrangements satisfactory to the Trustee for the giving
of notice of redemption by the Trustee in the name, and at
the expense, of Publishing,

		
	 	and Publishing has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust an amount
sufficient to pay and discharge the entire indebtedness on
the Notes not theretofore delivered to the Trustee for
cancellation, including principal of, premium, if any, and
accrued interest on the Notes at such Maturity, Stated
Maturity or Redemption Date;

     (b)  Publishing has paid all other sums payable hereunder by Publishing;
and

     (c)  Publishing has delivered to the Trustee an Officers’ Certificate and
an Opinion of Counsel each to the effect that all conditions precedent herein
provided for relating to the satisfaction and discharge of this Indenture have
been complied with and that such satisfaction and discharge will not result in
a breach or violation of, or constitute a default under, this Indenture.

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     Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of Publishing to the Trustee under Section 6.07 and, if United
States dollars shall have been deposited with the Trustee pursuant to subclause
(ii) of Subsection (a) of this Section, the obligations of the Trustee under
Section 12.02 and the last paragraph of Section 10.03 shall survive.

     SECTION
12.02. Application of Trust Money. Subject to the provisions of
the last paragraph of Section 10.03, all United States dollars deposited with
the Trustee pursuant to Section 12.01 shall be held in trust and applied by it,
in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent as the Trustee may
determine, to the Persons entitled thereto, of the principal of, premium, if
any, and interest on the Notes for whose payment such United States dollars
have been deposited with the Trustee.

ARTICLE XIII

Guarantee

     SECTION
13.01. Hollinger International Guarantee. For value received,
Hollinger International, in accordance with this Article XIII, hereby
absolutely, unconditionally and irrevocably guarantees to the Trustee and the
Holders, as
if Hollinger International were the principal debtor, the punctual payment
and performance when due of all Indenture Obligations (which for purposes of
this Guarantee shall also be deemed to include all commissions, fees, charges,
costs and other expenses (including reasonable legal fees and disbursements of
one counsel) arising out of or incurred by the Trustee or the Holders in
connection with the enforcement of this Guarantee).

     SECTION
13.02. Continuing Guarantee; No Right of Set-Off; Independent
Obligation. (a) This Guarantee shall be a continuing guarantee of the payment
and performance of all Indenture Obligations and shall remain in full force and
effect until the payment in full of all of the Indenture Obligations and shall
apply to and secure any ultimate balance due or remaining unpaid to the Trustee
(including the fees and expenses of its agents and counsel) or the Holders; and
this Guarantee shall not be considered as wholly or partially satisfied by the
payment or liquidation at any time or from time to time of any sum of money for
the time being due or remaining unpaid to the Trustee or the Holders.
Hollinger International covenants and agrees to comply with all obligations,
covenants, agreements and provisions applicable to it in this Indenture
including those set forth in Article VIII and Section 10.17. Without limiting
the generality of the foregoing, Hollinger International’s liability shall
extend to all amounts which constitute part of the Indenture Obligations and
would be owed by Publishing under this Indenture and the Notes but for the fact
that they are unenforceable, reduced, limited, impaired, suspended or not
allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving Publishing.

     (b)  Hollinger International hereby guarantees that the Indenture
Obligations will be paid to the Trustee without set-off or counterclaim or
other reduction whatsoever (whether for taxes, withholding or otherwise) in
lawful currency of the United States of America.

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     (c)  Hollinger International guarantees that the Indenture Obligations
shall be paid strictly in accordance with their terms regardless of any law,
regulation or order now or hereafter in effect in any jurisdiction affecting
any of such terms or the rights of the holders of the Notes.

     (d)  Hollinger International’s liability to pay or perform or cause the
performance of the Indenture Obligations under this Guarantee shall arise
forthwith after demand for payment or performance by the Trustee has been given
to Hollinger International in the manner prescribed in Section 1.06 hereof.

     (e)  Except as provided herein, the provisions of this Article XIII cover
all agreements between the parties hereto relative to this Guarantee and none
of the parties shall be bound by any representation, warranty or promise made
by any Person relative thereto which is not embodied herein; and it is
specifically acknowledged and agreed that this Guarantee has been delivered by
Hollinger International free of any conditions whatsoever and that no
representations, warranties or promises have been made to Hollinger
International affecting its liabilities hereunder, and that the Trustee shall
not be bound by any representations, warranties or promises now or at any time
hereafter made by Publishing to Hollinger International.

     SECTION
13.03. Guarantee Absolute. The obligations of Hollinger International hereunder are independent of
the obligations of Publishing under the Notes and this Indenture and a separate
action or actions may be brought and prosecuted against Hollinger International
whether or not an action or proceeding is brought against Publishing and
whether or not Publishing is joined in any such action or proceeding. The
liability of Hollinger International hereunder is irrevocable, absolute and
unconditional and (to the extent permitted by law) the liability and
obligations of Hollinger International hereunder shall not be released,
discharged, mitigated, waived, impaired or affected in whole or in part by:

     (a)  any defect or lack of validity or enforceability in respect of any
Indebtedness or other obligation of Publishing or any other Person under this
Indenture or the Notes, or any agreement or instrument relating to any of the
foregoing;

     (b)  any grants of time, renewals, extensions, indulgences, releases,
discharges or modifications which the Trustee or the Holders may extend to, or
make with, Publishing, Hollinger International or any other Person, or any
change in the time, manner or place of payment of, or in any other term of, all
or any of the Indenture Obligations, or any other amendment or waiver of, or
any consent to or departure from, this Indenture or the Notes, including any
increase or decrease in the Indenture Obligations;

     (c)  the taking of security from Publishing, Hollinger International or any
other Person, and the release, discharge or alteration of, or other dealing
with, such security;

     (d)  the occurrence of any change in the laws, rules, regulations or
ordinances of any jurisdiction by any present or future action of any
governmental authority or court amending, varying, reducing or otherwise
affecting, or purporting to amend, vary, reduce or otherwise affect, any of the
Indenture Obligations and the obligations of Hollinger International hereunder;

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     (e)  the abstention from taking security from Publishing, Hollinger
International or any other Person or from perfecting, continuing to keep
perfected or taking advantage of any security;

     (f)  any loss, diminution of value or lack of enforceability of any
security received from Publishing, Hollinger International or any other Person,
and including any other guarantees received by the Trustee;

     (g)  any other dealings with Publishing, Hollinger International or any
other Person, or with any security;

     (h)  the Trustee’s or the Holders’ acceptance of or entering into any
composition with Publishing or Hollinger International;

     (i)  the application by the Holders or the Trustee of all monies at any
time and from time to time received from Publishing, Hollinger International or
any other Person on account of any indebtedness and liabilities owing by
Publishing or Hollinger International to the Trustee or the Holders, in such
manner as the Trustee or the Holders deem best and the changing of such
application in whole or in part and at any time or from time to time, or any
manner of
application of collateral, or proceeds thereof, to all or any of the
Indenture Obligations, or the manner of sale of any Collateral;

     (j)  the release or discharge of Publishing or Hollinger International or
of any other Guarantor of the Notes or of any Person liable directly as surety
or otherwise by operation of law or otherwise for the Notes, other than an
express release in writing given by the Trustee, on behalf of the Holders, of
the liability and obligations of Hollinger International hereunder;

     (k)  any change in the name, business, capital structure or governing
instrument of Publishing or Hollinger International or any refinancing or
restructuring of any of the Indenture Obligations;

     (l)  the sale of Publishing’s or Hollinger International’s business or any
part thereof;

     (m)  subject to Section 13.14, any merger or consolidation, arrangement or
reorganization of Publishing, Hollinger International, any Person resulting
from the merger or consolidation of Publishing or Hollinger International with
any other Person or any other successor to such Person or merged or
consolidated Person or any other change in the corporate existence, structure
or ownership of Publishing or Hollinger International;

     (n)  the insolvency, bankruptcy, liquidation, winding-up, dissolution,
receivership or distribution of the assets of Publishing or its assets or any
resulting discharge of any obligations of Publishing (whether voluntary or
involuntary) or of Hollinger International or the loss of corporate existence;

     (o)  subject to Section 13.14, any arrangement or plan of reorganization
affecting Publishing or Hollinger International;

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     (p)  any other circumstance (including any statute of limitations) that
might otherwise constitute a defense available to, or discharge of, Publishing
or Hollinger International; or

     (q)  any modification, compromise, settlement or release by the Trustee, or
by operation of law or otherwise, of the Indenture Obligations or the liability
of Publishing or any other obligor under the Notes, or of any Collateral, in
whole or in part, and any refusal of payment by the Trustee, in whole or in
part, from any other obligor or other guarantor in connection with any of the
Indenture Obligations, whether or not with notice to, or further assent by, or
any reservation of rights against, Hollinger International.

     SECTION
13.04. Right to Demand Full Performance. In the event of any
demand for payment or performance by the Trustee from Hollinger International
hereunder, the Trustee or the Holders shall have the right to demand their full
claim and to receive all dividends or other payments in respect thereof until
the Indenture Obligations shall have been paid in full, and Hollinger
International shall continue to be liable hereunder for any balance which may
be owing to the Trustee (including the fees and expenses of its agent and
counsel) or the Holders by Publishing under this Indenture and the Notes. The
retention by the Trustee or the Holders of any security, prior to the
realization by the Trustee or the Holders of their rights to such security upon
foreclosure thereon, shall not, as between the Trustee and Hollinger
International, be considered as a purchase of such security, or as payment,
satisfaction or reduction of the Indenture Obligations due to the Trustee or
the Holders by Publishing or any part thereof.

     SECTION
13.05. Waivers. (a) Hollinger International hereby expressly
waives (to the extent permitted by law) notice of the acceptance of this
Guarantee and notice of the existence, renewal, extension or the
nonperformance, nonpayment, or nonobservance on the part of Publishing of any
of the terms, covenants, conditions and provisions of this Indenture or the
Notes or any other notice whatsoever to or upon Publishing or Hollinger
International with respect to the Indenture Obligations. Hollinger
International hereby acknowledges communication to it of the terms of this
Indenture and the Notes and all of the provisions therein contained and
consents to and approves the same. Hollinger International hereby expressly
waives (to the extent permitted by law) diligence, presentment, protest and
demand for payment.

     (a)  Without prejudice to any of the rights or recourses which the Trustee
or the Holders may have against Publishing, Hollinger International hereby
expressly waives (to the extent permitted by law) any right to require the
Trustee or the Holders to:

		
	 	     (i) initiate or exhaust any rights, remedies or recourse
against Publishing, Hollinger International or any other Person;
	 
	 	     (ii) value, realize upon, or dispose of any security of
Publishing or any other Person held by the Trustee or the Holders;
or
	 
	 	     (iii) initiate or exhaust any other remedy which the Trustee
or the Holders may have in law or equity;

before requiring or becoming entitled to demand payment from Hollinger
International under this Guarantee.

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     SECTION
13.06. Hollinger International Remains Obligated in Event
Publishing Is No Longer Obligated to Discharge Indenture
Obligations. It is
the express intention of the Trustee and Hollinger International that if for
any reason Publishing has no legal existence, is or becomes under no legal
obligation to discharge the Indenture Obligations owing to the Trustee or the
Holders by Publishing or if any of the Indenture Obligations owing by
Publishing to the Trustee or the Holders becomes irrecoverable from Publishing
by operation of law or for any reason whatsoever, this Guarantee and the
covenants, agreements and obligations of Hollinger International contained in
this Article XIII shall nevertheless be binding upon Hollinger International,
as principal debtor, until such time as all such Indenture Obligations have
been paid in full to the Trustee and all Indenture Obligations owing to the
Trustee or the Holders by Publishing have been discharged, or such earlier time
as Section 4.02 shall apply to the Notes and Hollinger International shall be
responsible for the payment thereof to the Trustee or the Holders upon demand.

     SECTION
13.07. Waiver of Rights. Hollinger International agrees (to the
extent permitted by law) that it hereby waives and will not in any manner
whatsoever claim or take the benefit or advantage of, any rights of
reimbursement, exoneration, contribution, indemnity or subrogation (whether
contractual, under Section 509 of Title Eleven of the United States Code, under
common law or otherwise) or any similar rights or “claims” (as such term is
defined under Title Eleven of the United States Code), against Publishing or
any Restricted Subsidiary arising from the existence of, or performance by,
Hollinger International under this Guarantee.

     SECTION
13.08. Guarantee Is in Addition to Other Security. This Guarantee
shall be in addition to and not in substitution for any other guarantees or
other security which the Trustee may now or hereafter hold in respect of the
Indenture Obligations owing to the Trustee or the Holders by Publishing and
(except as may be required by law) the Trustee shall be under no obligation to
marshal in favor of Hollinger International any other guarantees or other
security or any moneys or other assets which the Trustee may be entitled to
receive or upon which the Trustee or the Holders may have a claim.

     SECTION
13.09. Release of Security Interests. Without limiting the
generality of the foregoing and except as otherwise provided in this Indenture,
Hollinger International hereby consents and agrees, to the fullest extent
permitted by applicable law, that the rights of the Trustee hereunder, and the
liability of Hollinger International hereunder, shall not be affected by any
and all releases for any purpose of any Collateral, if any, from the Liens and
security interests created by any document relating thereto and that this
Guarantee shall continue to be effective or be reinstated, as the case may be,
if at any time any payment of any of the Indenture Obligations is rescinded or
must otherwise be returned by the Trustee upon the insolvency, bankruptcy or
reorganization of Publishing or otherwise, all as though such payment had not
been made.

     SECTION
13.10. No Bar to Further Actions. Except as provided by law, no
action or proceeding brought or instituted under Article XIII and this
Guarantee and no recovery or judgment in pursuance thereof shall be a bar or
defense to any further action or proceeding which may be brought under Article
XIII and this Guarantee by reason of any further default or defaults under
Article XIII and this Guarantee or in the payment of any of the Indenture
Obligations owing by Publishing.

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     SECTION 13.11. Failure to Exercise Rights Shall Not Operate as a Waiver; No
Suspension of Remedies. (a) No failure to exercise and no delay in
exercising, on the part of the Trustee or the Holders, any right, power,
privilege or remedy under this Article XIII and this Guarantee shall operate as
a waiver thereof, nor shall any single or partial exercise of any rights,
power, privilege or remedy preclude any other or further exercise thereof, or
the exercise of any other rights, powers, privileges or remedies. The rights
and
remedies herein provided for are cumulative and not exclusive of any
rights or remedies provided in law or equity.

     (b)  Nothing contained in this Article XIII shall limit the right of the
Trustee or the Holders to take any action to accelerate the maturity of the
Notes pursuant to Article V or to pursue any rights or remedies hereunder or
under applicable law.

     SECTION 13.12. Trustee’s Duties; Notice to Trustee. (a) Any provision in
this Article XIII or elsewhere in this Indenture allowing the Trustee to
request any information or to take any action authorized by, or on behalf of
Hollinger International, shall be permissive and shall not be obligatory on the
Trustee except as the Holders may direct in accordance with the provisions of
this Indenture.

     (b)  The Trustee shall not be required to inquire into the existence,
powers or capacities of Publishing, Hollinger International or the officers,
directors or agents acting or purporting to act on their respective behalf.

     (c)  Notwithstanding the provisions of this Article XIII or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of
the existence of any facts which would prohibit the making of any payment to or
by the Trustee in respect of the Notes, unless and until the Trustee shall have
received written notice thereof from Hollinger International; and, prior to the
receipt of any such written notice, the Trustee, subject to the provisions of
Section 6.01, shall be entitled in all respects to assume that no such facts
exist; provided, however, that if the Responsible Officer of the Trustee shall
not have received any such notice from Hollinger International at least three
Business Days prior to the date upon which by the terms hereof any money may
become payable for any purpose (including, without limitation, the payment of
the principal of, premium, if any, or interest on any Note), then, anything
herein contained to the contrary notwithstanding, the Trustee shall have full
power and authority to receive such money and to apply the same to the purpose
for which such money was received and shall not be affected by any notice to
the contrary which may be received by it within three Business Days prior to
such date; nor shall the Trustee be charged with knowledge of the curing of any
such default or the elimination of the act or condition preventing any such
payment unless and until the Responsible Officer of the Trustee shall have
received an Officers’ Certificate to such effect.

     (d)  In the case at any time any Paying Agent other than the Trustee shall
have been appointed by Publishing and be then acting hereunder, the term
“Trustee” as used in this Article XIII shall in such case (unless the context
otherwise requires) be construed as extending to and including such Paying
Agent within its meaning as fully for all intents and purposes as if such
Paying Agent were named in this Article XIII in addition to or in place of the
Trustee; provided, however, that this Section shall not apply to Publishing or
any Affiliate of Publishing if Publishing or such Affiliate acts as Paying
Agent.

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     SECTION 13.13. Successors and Assigns. All terms, agreements and
conditions of this Article XIII shall extend to and be binding upon Hollinger
International and its successors and permitted assigns and shall enure to
the benefit of and may be enforced by the Trustee and its successors and
assigns; provided, however, that Hollinger International may not assign any of
its rights or obligations hereunder other than in accordance with Article VIII.

     SECTION 13.14. Release of Guarantee. Concurrently with the payment in full
of all of the Indenture Obligations, Hollinger International shall be released
from and relieved of its obligations under this Article XIII. Upon the
delivery by Publishing to the Trustee of an Officers’ Certificate and, if
requested by the Trustee, an Opinion of Counsel to the effect that the
transaction giving rise to the release of this Guarantee was made by Publishing
in accordance with the provisions of this Indenture and the Notes, the Trustee
shall execute any documents reasonably required in order to evidence the
release of Hollinger International from its obligations under this Guarantee.
If any of the Indenture Obligations are revived and reinstated after the
termination of this Guarantee, then all of the obligations of Hollinger
International under this Guarantee shall be revived and reinstated as if this
Guarantee had not been terminated until such time as the Indenture Obligations
are paid in full, and Hollinger International shall enter into an amendment to
this Guarantee, reasonably satisfactory to the Trustee, evidencing such revival
and reinstatement.

     This Guarantee shall terminate (a) upon a merger or consolidation of
Hollinger International with Publishing, in accordance with Article VIII or (b)
if after giving effect to a transaction or transactions permitted to be
consummated pursuant to Article VIII, Hollinger International no longer owns
any Capital Stock of Publishing.

     SECTION 13.15. Execution of Guarantee. To evidence the Guarantee,
Hollinger International hereby agrees to execute a guarantee substantially in
the form set forth in Exhibit A, to be endorsed on each Note authenticated and
delivered by the Trustee and that this Indenture shall be executed on behalf of
Hollinger International by its Chairman of the Board, its President or one of
its Vice Presidents, under its corporate seal reproduced thereon attested by
its Secretary or one of its Assistant Secretaries. The signature of any of
these officers on the Notes may be manual or facsimile.

     SECTION 13.16. Payment Permitted by Hollinger International if No Default.
Nothing contained in this Article, elsewhere in this Indenture or in any of the
Notes shall prevent Hollinger International from making payments at any time of
principal of, premium, if any, or interest on the Notes.

* * * *

96

 

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, all as of the day and year first above written.

 

	 	 	 	 	 	 	 
	 	 	 	 	HOLLINGER INTERNATIONAL

PUBLISHING INC.
	 
	 	 	 	 	By	 	 

	 	 	 	 	Name:
	 	 
	 	 	 	 	Title:	 	 
	 
	Attest:	 	 	 	 	 	 
	 	 	
 

Name:	 	 	 	 
	 	 	
Title:	 	 	 	 
	 
	 	 	 	 	HOLLINGER INTERNATIONAL INC., solely

in its capacity as Guarantor
	 
	 	 	 	 	By	 	 

	 	 	 	 	Name:
	 	 
	 	 	 	 	Title:	 	 
	 
	Attest:	 	 	 	 	 	 
	 	 	
 

Name:	 	 	 	 
	 	 	
Title:	 	 	 	 
	 
	 	 	 	 	WACHOVIA TRUST COMPANY, NATIONAL

ASSOCIATION, not in its individual

capacity, but solely as Trustee hereunder
	 
	 	 	 	 	By	 	 

	 	 	 	 	Name:
	 	 
	 	 	 	 	Title:	 	 

97

 

SCHEDULE 1

PERMITTED INDEBTEDNESS

98

 

EXHIBIT A

FORM OF NOTE

99

 

EXHIBIT B

FORM OF TRANSFER CERTIFICATE FOR TRANSFER TO QIB

[Date]          

Wachovia Trust Company, National Association

Corporate Trust Administration

920 King Street, Suite 102

Wilmington, DE 19801

Re: 9% Senior Notes due 2010 (the “Notes”) of

Hollinger International Publishing Inc. (the “Company”)

Ladies and Gentlemen:

     Reference is hereby made to the Indenture, dated as of December 23, 2002
(as amended and supplemented from time to time, the “Indenture”), among the
Company, Hollinger International Inc. and Wachovia Trust Company, National
Association, as Trustee. Capitalized terms used but not defined herein shall
have the meanings given them in the Indenture.

     This letter relates to the transfer of $     aggregate principal
amount of Notes [in the case of a transfer of an interest in a Regulation S
Global Note: which represents an interest in a Regulation S Global Note
beneficially owned] by the undersigned (the “Transferor”), to effect the
transfer of such Notes in exchange for an equivalent beneficial interest in the
Rule 144A Global Note.

     In connection with such request, and with respect to such Notes, the
Transferor does hereby certify that such Notes are being transferred in
accordance with Rule 144A under the Securities Act of 1933, as amended (“Rule
144A”), to a transferee that the Transferor reasonably believes is purchasing
the Notes for its own account or an account with respect to which the
transferee exercises sole investment discretion, and the transferee, as well as
any such account, is a “qualified institutional buyer” within the meaning of
Rule 144A, in a transaction meeting the requirements of Rule 144A and in
accordance with applicable securities laws of any state of the United States or
any other jurisdiction.

     You and the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	[Name of Transferor]
	 
	 	 	
By:	 	 
	 
	 	 	 	 	

Authorized Signature

100

 

EXHIBIT C

FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH

TRANSFERS PURSUANT TO REGULATION S

[Date]

Wachovia Trust Company, National Association

Corporate Trust Administration

920 King Street, Suite 102

Wilmington, DE 19801

Re: 9% Senior Notes Due 2010 (the “Notes”) of

Hollinger International Publishing Inc. (the “Company”)

Ladies and Gentlemen:

     Reference is hereby made to the Indenture, dated as of December 23, 2002
(as amended and supplemented from time to time, the “Indenture”), among the
Company, Hollinger International Inc. and Wachovia Trust Company, National
Association, as Trustee. Capitalized terms used but not defined herein shall
have the meanings given them in the Indenture.

     In connection with the proposed sale of $     aggregate principal
amount of the Notes [in the case of a transfer of an interest in a Rule 144A
Global Note: which represents an interest in a Rule 144A Global Note
beneficially owned] by the undersigned (the “Transferor”), we confirm that such
sale has been effected pursuant to and in accordance with Regulation S under
the Securities Act of 1933, as amended (“Regulation S”), and, accordingly, we
represent that:

		
	 	     (a) the offer of the Notes was not made to a person in the United
States;

		
	 	     (b) either (i) at the time the buy order was originated, the
transferee was outside the United States or we and any person acting on
our behalf reasonably believed that the transferee was outside the United
States or (ii) the transaction was executed in, on or through the
facilities of a designated off-shore securities market and neither we nor
any person acting on our behalf knows that the transaction has been
pre-arranged with a buyer in the United States;

		
	 	     (c) no directed selling efforts have been made in the United States
in contravention of the requirements of Rule 903(b) or Rule 904(b) of
Regulation S, as applicable;

		
	 	     (d) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act; and

		
	 	     (e) we are the beneficial owner of the principal amount of Notes
being transferred.

 

 

     In addition, if the sale is made during a Distribution Compliance Period
and the provisions of Rule 904(b)(1) or Rule 904(b)(2) of Regulation S are
applicable thereto, we confirm that such sale has been made in accordance with
the applicable provisions of Rule 904(b)(1) or Rule 904(b)(2), as the case may
be.

     You and the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby. Terms used in this letter have the
meanings set forth in Regulation S.

	 	 	 	 	 
	 	 	
Very truly yours,
	 
	  	 	
[Name of Transferor]
	 
	 	 	By:	 	 
	 	 	 	 	

	 	 	Authorized Signature

2

 

EXHIBIT D

FORM OF RULE 144 CERTIFICATION

[Date]

Wachovia Trust Company, National Association

Corporate Trust Administration

920 King Street, Suite 102

Wilmington, DE 19801

Re: 9% Senior Notes Due 2010 (the “Notes”) of

Hollinger International Publishing Inc. (the “Company”)

Ladies and Gentlemen:

     Reference is hereby made to the Indenture, dated as of December 23, 2002
(as amended and supplemented from time to time, the “Indenture”), among the
Company, Hollinger International Inc. and Wachovia Trust Company, National
Association, as Trustee. Capitalized terms used but not defined herein shall
have the meanings given them in the Indenture.

     In connection with the proposed sale of $     aggregate principal
amount of the Notes [in the case of a transfer of an interest in a Rule 144A
Global Note: which represents an interest in a Rule 144A Global Note
beneficially owned] by the undersigned (the “Transferor”), we confirm that such
sale has been effected pursuant to and in accordance with Rule 144 under the
Securities Act.

     You and the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby.

	 	 	 	 	 
	 	 	
Very truly yours,
	 
	  	 	
[Name of Transferor]
	 
	 	 	By:	 	 
	 	 	 	 	

	 	 	Authorized Signatureexv10w22

Table of Contents

Exhibit 10.22

EXECUTION COPY

Form of Fifth Amended and Restated Credit Agreement among

Hollinger International Publishing Inc., Telegraph Group Limited and

First DT Holdings Limited, Wachovia Bank, N.A., Toronto Dominion (Texas) Inc.,

General Electric Capital Corporation and Various Financial Institutions

and Other Persons dated as of December 23, 2002

 

 

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

 

dated as of December 23, 2002

among

HOLLINGER INTERNATIONAL PUBLISHING INC.,

TELEGRAPH GROUP LIMITED, AND

FIRST DT HOLDINGS LIMITED,

as Borrowers,

WACHOVIA BANK, N.A.,

as Administrative Agent, Issuing Bank and Security Trustee,

TORONTO DOMINION (TEXAS), INC.,

as Syndication Agent,

GENERAL ELECTRIC CAPITAL CORPORATION,

as Documentation Agent,

and

VARIOUS FINANCIAL INSTITUTIONS AND OTHER PERSONS PARTY HERETO,

as Lenders

WACHOVIA SECURITIES, INC.,

as Sole Lead Arranger and Book Runner

 

 

 

TABLE OF CONTENTS

									
		11.2 All Credit Extensions
	 SECTION 12 EVENTS OF DEFAULT AND THEIR EFFECT.
		12.1 Events of Default.
	 SECTION 13 THE ADMINISTRATIVE AGENT.
		13.1 Authorization
		13.2 Indemnification
		13.3 Exculpation
		13.4 Credit Investigation
		13.5 Administrative Agent and Affiliates
		13.6 Action on Instructions of the Lenders.
		13.7 Funding Reliance
		13.8 Collateral Matters
		13.9 Resignation
		13.10 Assignment of Rights and Obligations of Original Administrative Agent
		13.11 The Sole Lead Arranger, the Syndication Agent and the Documentation Agent
	SECTION 14 GUARANTY PROVISIONS
		14.2 Acceleration of Guaranty
		14.3 Guaranty Absolute, etc.
		14.4 Reinstatement, etc.
		14.5 Waiver, etc.
		14.6 Waiver of Subrogation and Contribution
		14.7 Independent Credit Decision
	SECTION 15 GENERAL
		15.1 Waiver; Remedies; Amendments
		15.2 Confirmations
		15.3 Notices
		15.4 Computations
		15.5 Regulations U and X
		15.6 Costs, Expenses and Taxes
		15.7 Subsidiary References
		15.8 Captions
		15.9 Assignments; Reallocation
	SCHEDULE 1.1 — COMMITMENTS AND PERCENTAGES
	 SCHEDULE 1.2 — PRICING GRID
	 SCHEDULE 6.2.3 — SCHEDULED TERM A LOAN PAYMENTS
	 SCHEDULE 6.2.4 — SCHEDULED TERM B LOAN PAYMENTS
	 SCHEDULE 15.3 — ADDRESSES FOR NOTICES
	Amended and Restated Trust Agreement
	Supplemental Trust Agreement
	Amended and Restated Participation Agreement
	Purchase Agreement dated December 16, 2002
	Registration Rights Agreement
	The Indenture dated as of December 23, 2002
	Fifth Amended and Restated Credit Agreement
	Fourth Amended and Restated Company Pledge
	Fourth Amended and Restated Guaranty
	Amended and Restated Pledge Agreement
	Intellectual Property Security Agreement
	Third Amended and Restated Guaranty
	Third Amended and Restated Security Agreement
	U.K. Subsidiary Guarantee
	U.S. Pledge Agreement
	Significant Subsidiaries of Hollinger Internationa
	Consent of KPMG LLP
	Certification of Chief Executive Officer
	Certification of Chief Financial Officer

Table of Contents

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 	 	 	 	 	 	 	 	

	SECTION 1
	 	DEFINITIONS	 	 	2	 
	SECTION 2
	 	COMMITMENTS OF THE
LENDERS; TYPES OF LOANS; LETTERS OF CREDIT; BORROWING PROCEDURES; LOAN ACCOUNTS	 	 	30	 
	 	2.1
	 	Commitments	 	 	30	 
	 	2.2
	 	Lenders Not Required To Make Credit Extensions	 	 	31	 
	 	2.3
	 	Various Types of Loans	 	 	31	 
	 	2.4
	 	Borrowing Procedures	 	 	32	 
	 	2.5
	 	Procedures for Conversion of Type of Loan	 	 	32	 
	 	2.6
	 	Letter of Credit Procedures	 	 	32	 
	 	2.7
	 	Participations in Letters of Credit	 	 	33	 
	 	2.8
	 	Reimbursement Obligations	 	 	33	 
	 	2.9
	 	Limitation on the
Issuing Bank’s Obligations	 	 	33	 
	 	2.10
	 	Funding by Lenders to the Issuing Bank	 	 	34	 
	 	2.11
	 	Warranty	 	 	34	 
	 	2.12
	 	Conditions	 	 	34	 
	 	2.13
	 	Determination of Dollar Equivalents	 	 	34	 
	 	2.14
	 	Commitments Several	 	 	35	 
	 	2.15
	 	Loan Accounts	 	 	35	 
	 	2.16
	 	Requesting Promissory Notes	 	 	35	 
	SECTION 3
	 	INCREMENTAL FACILITY	 	 	35	 
	 	3.1
	 	Incremental Facility	 	 	35	 
	 	3.2
	 	Request for Incremental Facility	 	 	35	 
	 	3.3
	 	Documentation of Incremental Facility	 	 	36	 
	SECTION 4
	 	INTERLENDER AGREEMENTS	 	 	36	 
	 	4.1
	 	Allocation of Payments Prior to Acceleration	 	 	36	 
	 	4.2
	 	Allocation of Payments After Acceleration	 	 	36	 
	 	4.3
	 	Distribution of Collateral Proceeds	 	 	37	 
	 	4.4
	 	No Effect on Obligors	 	 	38	 
	SECTION 5
	 	INTEREST AND FEES	 	 	38	 
	 	5.1
	 	Interest Rates	 	 	38	 
	 	5.2
	 	Interest Payment Dates	 	 	39	 
	 	5.3
	 	Interest Periods	 	 	39	 
	 	5.4
	 	Setting and Notice of Eurocurrency Rates	 	 	39	 
	 	5.5
	 	Computation of Interest	 	 	40	 
	 	5.6
	 	Commitment Fee	 	 	40	 
	 	5.7
	 	Letter of Credit Fees	 	 	40	 
	 	5.8
	 	Additional Fees	 	 	40	 
	SECTION 6
	 	REDUCTION OR TERMINATION OF THE COMMITMENTS; REPAYMENTS	 	 	40	 

i

Table of Contents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 	 	 	 	 	 	 	 	

	 	6.1
	 	Reduction or Termination of the Commitments	 	 	40	 
	 	6.2
	 	Prepayments	 	 	42	 
	SECTION 7
	 	MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES	 	 	49	 
	 	7.1
	 	Making of Payments	 	 	49	 
	 	7.2
	 	Application of Certain Payments	 	 	49	 
	 	7.3
	 	Due Date Extension	 	 	49	 
	 	7.4
	 	Setoff	 	 	50	 
	 	7.5
	 	Proration of Payments	 	 	50	 
	 	7.6
	 	Tax Matters	 	 	50	 
	SECTION 8
	 	INCREASED COSTS; SPECIAL PROVISIONS FOR EUROCURRENCY LOANS	 	 	52	 
	 	8.1
	 	Increased Costs	 	 	52	 
	 	8.2
	 	Basis for Determining Interest Rate Inadequate or Unfair	 	 	53	 
	 	8.3
	 	Changes in Law Rendering Eurocurrency Loans Unlawful	 	 	54	 
	 	8.4
	 	Funding Losses	 	 	54	 
	 	8.5
	 	Right of Lenders to Fund through Other Offices	 	 	55	 
	 	8.6
	 	Discretion of Lenders as to Manner of Funding	 	 	55	 
	 	8.7
	 	Mitigation of Circumstances; Replacement of Affected Lenders	 	 	55	 
	 	8.8
	 	Conclusiveness of Statements; Survival of Provisions	 	 	55	 
	SECTION 9
	 	WARRANTIES	 	 	56	 
	 	9.1
	 	Organization, etc.	 	 	56	 
	 	9.2
	 	Authorization; No Conflict; Compliance with Laws	 	 	56	 
	 	9.3
	 	Validity and Binding Nature	 	 	56	 
	 	9.4
	 	Financial Information	 	 	56	 
	 	9.5
	 	No Material Adverse Change	 	 	57	 
	 	9.6
	 	Litigation and Contingent Liabilities	 	 	57	 
	 	9.7
	 	Ownership of Properties; Liens	 	 	57	 
	 	9.8
	 	Subsidiaries	 	 	57	 
	 	9.9
	 	Pension, Welfare and Employee Benefit Plans	 	 	57	 
	 	9.10
	 	Investment Company Act	 	 	58	 
	 	9.11
	 	Public Utility Holding Company Act	 	 	58	 
	 	9.12
	 	Regulations U and X	 	 	58	 
	 	9.13
	 	Taxes	 	 	58	 
	 	9.14
	 	Solvency, etc.	 	 	58	 
	 	9.15
	 	Insurance	 	 	58	 
	 	9.16
	 	Contracts; Labor Matters	 	 	59	 
	 	9.17
	 	Environmental and Safety and Health Matters	 	 	59	 
	 	9.18
	 	Information	 	 	60	 
	 	9.19
	 	Permitted
Indebtedness, etc.	 	 	60	 
	 	9.20
	 	Financial Assistance	 	 	60	 
	 	9.21
	 	Intellectual Property	 	 	60	 
	SECTION 10
	 	COVENANTS	 	 	60	 
	 	10.1
	 	Reports, Certificates and Other Information	 	 	61	 

ii

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	 	 	 	 	 	 	 	 	Page
	 	 	 	 	 	 	 	 	

	 	10.2
	 	Books, Records and Inspections	 	 	62	 
	 	10.3
	 	Insurance	 	 	63	 
	 	10.4
	 	Compliance with Laws; Maintenance of Property; Payment of Taxes and Liabilities	 	 	63	 
	 	10.5
	 	Maintenance of
Existence, etc.	 	 	63	 
	 	10.6
	 	Financial Covenants	 	 	63	 
	 	10.7
	 	Limitations on Debt	 	 	65	 
	 	10.8
	 	Liens	 	 	66	 
	 	10.9
	 	Limitation on Restricted Payments	 	 	67	 
	 	10.10
	 	Investments	 	 	70	 
	 	10.11
	 	Mergers, Consolidations, Sales, Acquisitions	 	 	71	 
	 	10.12
	 	Use of Proceeds	 	 	72	 
	 	10.13
	 	Transactions with Affiliates	 	 	73	 
	 	10.14
	 	Employee Benefit Plans	 	 	73	 
	 	10.15
	 	Environmental Covenants	 	 	73	 
	 	10.16
	 	Unconditional Purchase Obligations	 	 	74	 
	 	10.17
	 	Inconsistent Agreements	 	 	74	 
	 	10.18
	 	Further Assurances	 	 	74	 
	 	10.19
	 	Amendments to Certain Documents	 	 	74	 
	 	10.20
	 	Conduct of Business	 	 	75	 
	 	10.21
	 	Limitations on Sale and Leaseback Transactions	 	 	75	 
	 	10.22
	 	Tax Allocation Agreement	 	 	75	 
	 	10.23
	 	Fiscal Year	 	 	75	 
	 	10.24
	 	Holding Company Status	 	 	75	 
	 	10.25
	 	Limitation on
Dividends and Other Payment Restrictions Affecting Restricted Subsidiaries	 	 	75	 
	 	10.26
	 	Designation and Ownership of Subsidiaries	 	 	76	 
	 	10.27
	 	New Restricted Subsidiaries, Investments and Acquisitions	 	 	76	 
	 	10.28
	 	Operating Leases	 	 	76	 
	SECTION 11
	 	CONDITIONS	 	 	76	 
	 	11.1
	 	Documentary Conditions to Amendment Effective Date	 	 	76	 
	 	11.2
	 	All Credit Extensions	 	 	79	 
	SECTION 12
	 	EVENTS OF DEFAULT AND THEIR EFFECT	 	 	79	 
	 	12.1
	 	Events of Default	 	 	79	 
	 	12.2
	 	Effect of Event of Default	 	 	82	 
	SECTION 13
	 	THE ADMINISTRATIVE AGENT	 	 	82	 
	 	13.1
	 	Authorization	 	 	82	 
	 	13.2
	 	Indemnification	 	 	82	 
	 	13.3
	 	Exculpation	 	 	83	 
	 	13.4
	 	Credit Investigation	 	 	83	 
	 	13.5
	 	Administrative Agent and Affiliates	 	 	83	 
	 	13.6
	 	Action on Instructions of the Lenders	 	 	83	 
	 	13.7
	 	Funding Reliance	 	 	83	 
	 	13.8
	 	Collateral Matters	 	 	84	 
	 	13.9
	 	Resignation	 	 	84	 

iii

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	 	 	 	 	 	 	 	 	Page
	 	 	 	 	 	 	 	 	

	 	13.10
	 	Assignment of Rights and Obligations of Original Administrative Agent	 	 	84	 
	 	13.11
	 	The Sole Lead Arranger, the Syndication Agent and the Documentation Agent	 	 	85	 
	SECTION 14
	 	GUARANTY PROVISIONS	 	 	85	 
	 	14.1
	 	Guaranty	 	 	85	 
	 	14.2
	 	Acceleration of Guaranty	 	 	86	 
	 	14.3
	 	Guaranty Absolute,
etc.	 	 	86	 
	 	14.4
	 	Reinstatement, etc.	 	 	88	 
	 	14.5
	 	Waiver, etc.	 	 	88	 
	 	14.6
	 	Waiver of Subrogation and Contribution	 	 	88	 
	 	14.7
	 	Independent Credit Decision	 	 	88	 
	SECTION 15
	 	GENERAL	 	 	89	 
	 	15.1
	 	Waiver; Remedies; Amendments	 	 	89	 
	 	15.2
	 	Confirmations	 	 	90	 
	 	15.3
	 	Notices	 	 	90	 
	 	15.4
	 	Computations	 	 	90	 
	 	15.5
	 	Regulations U and X	 	 	90	 
	 	15.6
	 	Costs, Expenses and Taxes	 	 	91	 
	 	15.7
	 	Subsidiary References	 	 	91	 
	 	15.8
	 	Captions	 	 	91	 
	 	15.9
	 	Assignments; Reallocation	 	 	91	 
	 	15.10
	 	Participations	 	 	93	 
	 	15.11
	 	Governing Law	 	 	94	 
	 	15.12
	 	Counterparts/Facsimile	 	 	94	 
	 	15.13
	 	Successors and Assigns	 	 	94	 
	 	15.14
	 	Indemnification by the Borrowers	 	 	94	 
	 	15.15
	 	Survival of Indemnities	 	 	96	 
	 	15.16
	 	Confidentiality	 	 	96	 
	 	15.17
	 	Forum Selection and Consent to Jurisdiction	 	 	96	 
	 	15.18
	 	American Legal Terms	 	 	97	 
	 	15.19
	 	Judgment Currency	 	 	97	 
	 	15.20
	 	Waiver of Jury Trial	 	 	98	 

iv

Table of Contents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 	 	 	 	 	 	 	 	

	EXHIBIT A
	 	INTENTIONALLY OMITTED	 	 	 	 
	EXHIBIT B-1
	 	Form of Company Security Agreement	 	 	 	 
	EXHIBIT B-2
	 	Form of U.K. Security Agreement	 	 	 	 
	EXHIBIT C-1
	 	Form of Hollinger International Guaranty	 	 	 	 
	EXHIBIT C-2
	 	Form of U.S. Subsidiary Guaranty	 	 	 	 
	EXHIBIT C-3
	 	Form of U.K. Subsidiary Guaranty	 	 	 	 
	EXHIBIT D-1
	 	Form of Hollinger International Pledge Agreement	 	 	 	 
	EXHIBIT D-2
	 	Form of Company Pledge Agreement	 	 	 	 
	EXHIBIT D-3
	 	Form of U.S. Pledge Agreement	 	 	 	 
	EXHIBIT E
	 	Form of Assignment Agreement	 	 	 	 
	EXHIBIT F
	 	Form of Subsidiary Subordination Agreement	 	 	 	 
	EXHIBIT G-1
	 	Form of Notice of Borrowing	 	 	 	 
	EXHIBIT G-2
	 	Form of Notice of Conversion/Continuation	 	 	 	 
	EXHIBIT H
	 	Form of Tax Allocation Agreement	 	 	 	 
	SCHEDULE 1.1
	 	Commitments and Percentages	 	 	 	 
	SCHEDULE 1.2
	 	Pricing Grid	 	 	 	 
	SCHEDULE 6.2.3
	 	Scheduled Term A Loan Payments	 	 	 	 
	SCHEDULE 6.2.4
	 	Scheduled Term B Loan Payments	 	 	 	 
	SCHEDULE 9.5
	 	Recent Developments	 	 	 	 
	SCHEDULE 9.6
	 	Litigation and Contingent Liabilities	 	 	 	 
	SCHEDULE 9.8
	 	Subsidiaries and other Affiliates	 	 	 	 
	SCHEDULE 9.9
	 	Welfare Plans	 	 	 	 
	SCHEDULE 9.15
	 	Insurance	 	 	 	 
	SCHEDULE 9.16
	 	Contracts; Labor Matters	 	 	 	 
	SCHEDULE 9.17
	 	Environmental and Safety and Health Matters	 	 	 	 
	SCHEDULE 10.7
	 	Debt	 	 	 	 
	SCHEDULE 10.8
	 	Liens	 	 	 	 
	SCHEDULE 10.10
	 	Investments	 	 	 	 
	SCHEDULE 10.13
	 	Transactions with Affiliates	 	 	 	 
	SCHEDULE 15.3
	 	Addresses for Notices	 	 	 	 

v

Table of Contents

FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

          This FIFTH AMENDED AND RESTATED CREDIT AGREEMENT, dated as of December 23, 2002
(as amended, supplemented or otherwise modified from time to time, this
“Agreement”), is entered into among HOLLINGER INTERNATIONAL PUBLISHING INC., a
Delaware corporation (the “Company”), TELEGRAPH GROUP LIMITED, a limited
liability company incorporated under the laws of England and Wales
(“Telegraph”), FIRST DT HOLDINGS LIMITED, a limited liability company
incorporated under the laws of England and Wales (“FDTH”), the undersigned
financial institutions and other Persons, together with their respective
successors and assigns (collectively the “Lenders” and each a “Lender”),
WACHOVIA BANK, N.A. (“Wachovia Bank”), as administrative agent, issuing bank
and security trustee for the Lenders, and WACHOVIA SECURITIES, INC. (“Wachovia
Securities”), as sole lead arranger and book runner (in such capacity, the
“Sole Lead Arranger”), TORONTO DOMINION (TEXAS), INC., as Syndication Agent,
and GENERAL ELECTRIC CAPITAL CORPORATION, as Documentation Agent.

RECITALS

          WHEREAS, the Company, Telegraph, certain other subsidiaries of the Company,
Toronto-Dominion (Texas), Inc. as Administrative Agent (in such capacity, as
security trustee, or in any similar agency capacity specified in the Existing
Credit Agreement (as defined below) and the other loan documents related
thereto “Original Administrative Agent”), The Toronto-Dominion Bank as Issuing
Bank (in such capacity, the “Original Issuing Bank”) and the Original Lenders
(as defined below) entered into that certain Fourth Amended and Restated Credit
Agreement dated as of April 30, 1999 (as amended or modified and in effect
immediately prior to the Amendment Effective Date, the “Existing Credit
Agreement”), whereby certain lenders party thereto (the “Original Lenders”)
agreed to make certain credit extensions, including revolving loans, term loans
and the issuance of letters of credit;

          WHEREAS, the Company has requested the Lenders to amend and restate the
Existing Credit Agreement on the terms and conditions set forth in this
Agreement, to set forth, among other things, the terms and conditions under
which the Lenders hereafter will make credit extensions to certain of the
Borrowers and to re-allocate all credit extensions from the Original Lenders to
the Lenders in accordance with the terms hereof; it being the intention of the
Borrowers, the Lenders and the Administrative Agent that this Agreement and the
Loan Documents executed in connection herewith shall not effect the novation of
the obligations of any Borrower under the Existing Credit Agreement but be
merely a restatement and, where applicable, an amendment of and substitution
for the terms governing such obligations hereafter;

          WHEREAS, the Existing Credit Extensions outstanding immediately prior to the
Amendment Effective Date pursuant to the Existing Credit Agreement shall be
deemed to be issued and outstanding hereunder for all purposes hereof and of
the Loan Documents after giving effect to the Amendment Effective Date and
shall thereafter be governed by the terms and conditions of this Agreement; and

          WHEREAS, the Credit Extensions are and shall be secured by the Collateral
Documents and are and shall be guaranteed pursuant to the Guaranties (in each
case as and to the extent set forth therein);

          NOW, THEREFORE, in consideration of the promises and the mutual agreements
herein contained, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged,

 

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the Existing Credit Agreement is hereby amended and restated in its entirety to
read, and the parties hereto hereby agree, in each case effective as of the
Amendment Effective Date, as follows:

          SECTION 1 Definitions.

          When used herein (including in the Preamble and the Recitals) the following
terms shall have the following meanings (such definitions to be applicable to
both the singular and plural forms of such terms):

          Acquisition means (a) any acquisition or merger by the Company or any
Restricted Subsidiary of or with any other Person which owns or operates a
Newspaper Business, which acquisition or merger has been approved and
recommended in writing by the Board of Directors of the Person to be acquired
or, if such Board approval is not required or practicable, which merger or
acquisition otherwise has been made and consummated without any hostile or
antagonistic measures, which Person shall then become consolidated with the
Company or any such Restricted Subsidiary in accordance with GAAP, or (b) any
acquisition by the Company or any Restricted Subsidiary of the assets of any
Newspaper Business which acquisition has been approved and recommended in
writing by the Board of Directors of the business whose assets are being
acquired or, if such Board approval is not practicable, which acquisition
otherwise has been made and approved without any hostile or antagonistic
measures.

          Acquisition Debt means any Debt of the Company or any Restricted
Subsidiary to any Person other than the Company or any Restricted Subsidiary
(a) at any time or from time to time incurred, created or assumed in connection
with any Acquisition or (b) existing at the time any Person (including an
Unrestricted Subsidiary) becomes a Restricted Subsidiary but excluding in case
of clauses (a) and (b) any Debt of the Borrowers to the Administrative Agent
and the Lenders, or any of them, under this Agreement or under any other Loan
Document.

          Administrative Agent means Wachovia Bank in its capacity as administrative
agent and security trustee for the Lenders hereunder, any sub-agents which
Wachovia Bank may appoint from time to time under any Facility and any
successor thereto in such capacity.

          Affected Lender means any Lender that has given notice to the Company
(which has not been rescinded) of (a) any obligation by an Obligor to pay any
amount pursuant to Section 7.6 or 8.1 or (b) the occurrence of any
circumstances of the nature described in Section 8.2 or 8.3.

          Affected Loan — see Section 8.3.

          Affiliate means, with respect to any specified Person, (a) any other
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person or (b) any other Person that
owns, directly or indirectly, 10% or more of such Person’s equity ownership or
Voting Stock or any officer or director of any such Person or other Person or
with respect to any natural Person, any Person having a relationship with such
Person by blood, marriage or adoption not more remote than first cousin. For
the purposes of this definition, “control” when used with respect to any
specified Person means the power to direct the management and policies of such
Person directly or indirectly, whether through ownership of voting securities,
by contract or otherwise; and the terms “controlling” and “controlled” have
meanings correlative to the foregoing.

          Agreement — see the Preamble.

          Alternate Base Rate means, at any time, the greater of (a) the Federal
Funds Rate plus 0.50% and (b) the U.S. Base Rate.

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          Alternate Currencies means with (a) respect to Loans, Sterling and Euros,
and (b) with respect to Letters of Credit, Sterling or Canadian Dollars.

          Amendment Effective Date — see Section 11.1.

          APHI means American Publishing Holdings Inc., a Delaware corporation.

          Applicable Commitment Fee Rate means 0.500% per annum.

          Applicable Margin means (a) with respect to Revolving Loans and Term A
Loans, (i) in the case of Eurocurrency Loans the applicable rate set forth
beneath “Eurocurrency Rate” on the Pricing Grid;
provided, however, that
regardless of the applicable rate set forth beneath “Eurocurrency Rate” on the
Pricing Grid, the Applicable Margin at any time prior to the six month
anniversary of the Amendment Effective Date will not be less than 3.00% and
(ii) in the case of Floating Rate Loans, the applicable rate set forth beneath
“Base Rate” on the Pricing Grid, provided,
however, that regardless of the
applicable rate set forth beneath “Base Rate” on the Pricing Grid, the
Applicable Margin at any time prior to the six month anniversary of the
Amendment Effective Date will not be less than 2.00%, (b) with respect to Term
B Loans, (i) in the case of Eurocurrency Loans, 3.50% and (ii) in the case of
Floating Rate Loans, 2.50%, as such rates may be adjusted pursuant to Section
3.1(f) and (c) with respect to Incremental Loans, (i) in the case of
Eurocurrency Loans, the applicable rate set forth beneath “Eurocurrency Rate”
on the Pricing Grid as amended by the applicable Supplement and (ii) in the
case of Floating Rate Loans, the applicable rate set forth beneath “Base Rate”
on the Pricing Grid as amended by the applicable Supplement. The Applicable
Margin shall change on the third Business Day after the date the Administrative
Agent receives a Compliance Certificate pursuant to Section 10.1.3 showing a
change in the Total Leverage Ratio.

          Applicable Proceeds Amount means (a) in the case of Net Cash Proceeds of
Asset Sales, 100% of such Net Cash Proceeds, (b) in the case of Debt Proceeds,
100% of such Debt Proceeds and (c) in the case of Net Cash Proceeds of Casualty
Events, 100% of such Casualty Proceeds.

          Asset Reduction Date — see Section 6.1.2.

          Asset Sale means (a) any sale, lease, transfer or other disposition
(including by way of merger or consolidation or Asset Swap) by the Company or
any Restricted Subsidiary of any asset (including the sale of the Capital Stock
of any Restricted Subsidiary) outside the ordinary course of business to a
Person other than the Company or a Restricted Subsidiary Obligor, or (b) any
sale or assignment with or without recourse of accounts receivable of the
Company or any Restricted Subsidiary to a Person other than the Company or a
Restricted Subsidiary Obligor. For purposes of this definition, the term
“Asset Sale” shall not include any transfer of property and assets (i) having a
market value of less than $1,000,000 (it being understood that if the market
value of the properties or assets being transferred exceeds $1,000,000, the
entire value and not just the portion in excess of $1,000,000 shall be deemed
to have been the subject of an Asset Sale), (ii) which are obsolete (in the
case of equipment) to the Company’s and such Restricted Subsidiaries’
businesses, or (iii) which occurred prior to the Amendment Effective Date.

          Asset Swap means the exchange of the assets of any Newspaper Business
owned by the Company or any Restricted Subsidiary (“Traded Newspaper Assets”)
as an entirety or substantially as an entirety for all or substantially all of
the assets of another Newspaper Business (“Traded-For Newspaper Assets”) owned
by the Person (or an Affiliate of the Person) to whom such Traded Newspaper
Assets shall be transferred in such exchange.

          Assignment Agreement — see Section 15.9.1.

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          Board of Directors means the board of directors or equivalent body of a
Person or any duly authorized committee of such board or body.

          Borrower means each of the Company, Telegraph, FDTH and each Incremental
Borrower (referred to collectively as the “Borrowers”).

          Business Day means any day on which commercial banks are open for
commercial banking business in Charlotte, North Carolina and New York, New York
and, in the case of a Business Day which relates to a Eurocurrency Loan, on
which dealings in Dollars and Alternate Currencies are carried on in the London
interbank market in London, England.

          Canadian Dollar and Cdn$ mean the lawful currency of Canada.

          Capital Expenditures means all expenditures which, in accordance with
GAAP, would be required to be capitalized and shown on the consolidated balance
sheet of the Company and its Restricted Subsidiaries, but excluding (a)
Investments permitted by Section 10.10 and (b) expenditures made in connection
with the replacement, substitution or restoration of assets to the extent
financed from Net Cash Proceeds of Casualty Events.

          Capital Lease means, with respect to any Person, any lease of (or other
agreement conveying the right to use) any real or personal property by such
Person which, in conformity with GAAP, is accounted for as a capital lease on
the balance sheet of such Person.

          Capital Stock of any Person means any and all shares, interests,
participations or other equivalents (however designated) of such Person’s
equity interests.

          Cash Equivalent Investment means, at any time:

		
	 	     (a) any Debt, maturing not more than one year after such time,
issued or guaranteed by the United States Government;
	 
	 	     (b) securities issued or fully guaranteed or insured by the
government of a country which is a member of the Organization for
Economic Cooperation and Development or any agency thereof having
maturities of six months or less from the date of acquisition;
	 
	 	     (c) commercial paper, Euro-commercial paper and any other marketable
securities, in each case maturing not more than one year from the date of
issue, which is issued by a corporation (except an Affiliate) after the
relevant date of determination rated at least A-1 by Standard & Poor’s or
P-1 by Moody’s, at the time of investment;
	 
	 	     (d) any certificate of deposit or bankers’ acceptance or
eurocurrency time deposit, maturing not more than one year after the date
of issue, which is issued by a financial institution authorized to issue
such investments whose short-term debt securities are rated at least A-1
by Standard & Poor’s or P-1 by Moody’s at the time of investment;
	 
	 	     (e) any repurchase agreement with a term of one year or less which

		
	 	     (i) is entered into with any other commercial banking
institution of the stature referred to in clause (c),
	 
	 	     (ii) is secured by a fully perfected Lien on any obligation of
the type described in any of clauses (a) through (c), and

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	 	     (iii) has a market value at the time such repurchase agreement
is entered into of not less than 100% of the repurchase obligation
of such commercial banking institution thereunder;

		
	 	     (f) investments in money market funds that invest solely in Cash
Equivalent Investments described in clauses (a) through (d); or
	 
	 	     (g) investments in short-term asset management accounts offered by
any Lender for the purpose of investing in loans to any corporation
(other than an Affiliate) organized under the laws of any state of the
United States or of the District of Columbia and rated at least A-1 by
Standard & Poor’s or P-1 by Moody’s.

          Casualty Event means (a) any loss of or damage to assets of the Company or
any Restricted Subsidiary due to fire, flood, explosion, earthquake, terrorist
activity or other disaster or act of God and (b) the taking of assets of the
Company or any Restricted Subsidiary by seizure, compulsory purchase, eminent
domain or condemnation. For purposes of this definition, the term “ Casualty
Event” shall not include any Casualty Event with respect to property and assets
having a market value of less than $1,000,000 (it being understood that if the
market value of the properties or assets lost, damaged or taken exceeds
$1,000,000, the entire value and not just the portion in excess of $1,000,000
shall be deemed to have been the subject of a Casualty Event).

          Casualty Reduction Date — see Section 6.1.2.

          Change in Control means the occurrence of any of the following after the
Amendment Effective Date:

          (a)  there is a report filed on Schedule 13D, 14D-1 or 14D-1F (or any
successor schedule, form or report) pursuant to the Exchange Act, disclosing
that any person (for purposes of this definition, as the term “person” is used
in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act or any successor
provision to either of the foregoing), other than any person consisting solely
of Lord Black (or his heirs, executors or legal representatives) and his
Affiliates, has become the beneficial owner (as the term “beneficial owner” is
defined under Rule 13d-3 or any successor rule or regulation promulgated under
the Exchange Act) of Voting Stock representing 50% or more of the total voting
power attached to all Voting Stock of Hollinger Inc. or Hollinger International
then outstanding; provided, however, that a person shall not be deemed to be
the beneficial owner of, or to own beneficially, (i) any securities tendered
pursuant to a tender or exchange offer made by or on behalf of such person or
any of such person’s Affiliates until such tendered securities are accepted for
purchase or exchange thereunder, or (ii) any securities if such beneficial
ownership (A) arises solely as a result of a revocable proxy delivered in
response to a proxy or consent solicitation made pursuant to applicable law and
(B) is not also then reportable on Schedule 13D (or any successor schedule)
under the Exchange Act;

          (b)  there is a report filed or required to be filed with any securities
commission or securities regulatory authority in Canada, disclosing that any
offeror (as the term “offeror” is defined in Section 89(1) of Securities Act
(Ontario) for the purpose of Section 101 of such Securities Act or any
successor provision of the foregoing) other than any person consisting solely
of Lord Black (or his heirs, executors or legal representatives) and his
Affiliates, has acquired beneficial ownership (within the meaning of the
Securities Act (Ontario)) of, or the power to exercise control or direction
over, or securities convertible into, any voting or equity shares of Hollinger
Inc. that together with such offeror’s securities (as the term “offeror’s
securities” is defined in Section 89(1) of the Securities Act (Ontario) or
any successor provision thereto in relation to the voting or equity shares
of Hollinger Inc.) would constitute Voting Stock of Hollinger Inc. representing
50% or more of the total voting power attached to all Voting Stock of Hollinger
Inc. then outstanding;

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          (c)  Hollinger International shall cease to own, directly or indirectly,
100% of the Capital Stock of any Borrower, other than the Company Preference
Shares;

          (d)  there is consummated a consolidation (involving a business
combination) or merger of Hollinger International, (i) in which Hollinger
International is not the continuing or surviving corporation or (ii) pursuant
to which any Voting Stock of Hollinger International would be reclassified,
changed or converted into or exchanged for cash, securities or other property,
other than (in each case) a consolidation or merger of Hollinger International
in which the holders of the Voting Stock of Hollinger International immediately
prior to the consolidation or merger have, directly or indirectly, 50% or more
of the Voting Stock of the continuing or surviving corporation immediately
after such transaction;

          (e)  Lord Black (or his heirs, executors and legal representatives) and his
Affiliates cease to beneficially own and control the voting of, directly or
indirectly, Voting Stock of Hollinger International representing a greater
percentage of the total voting power attached to the Voting Stock of Hollinger
International than the percentage beneficially owned and controlled, directly
or indirectly, by any other single shareholder of Hollinger International
together with its Affiliates;

          (f)  during any period of 12 consecutive months, a majority of the members
of the Board of Directors or other equivalent governing body of Hollinger
International or any Borrower shall cease to be composed of individuals (i) who
were members of that board or equivalent governing body on the first day of
such period, (ii) whose election or nomination to that board or equivalent
governing body was approved by individuals referred to in clause (i) above
constituting at the time of such election or nomination at least a majority of
that board or equivalent governing body or (iii) whose election or nomination
to that board or other equivalent governing body was approved by individuals
referred to in clauses (i) and (ii) above constituting at the time of such
election or nomination at least a majority of that board or equivalent
governing body (excluding, in the case of both clause (ii) and clause (iii),
any individual whose initial nomination for, or assumption of office as, a
member of that board or equivalent governing body occurs as a result of an
actual or threatened solicitation of proxies or consents for the election or
removal of one or more directors by any person or group other than a
solicitation for the election of one or more directors by or on behalf of the
board of directors); or

          (g)  any “Change in Control” or “Change of Control”, as defined in the
documentation for the New High Yield Notes.

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

          Collateral means, collectively, all of the property and assets that are
from time to time subject to the Collateral Documents.

          Collateral Document means each Security Agreement, each Pledge Agreement,
each Subsidiary Note, each Subsidiary Security Agreement, and any other
document executed from time to time pursuant to which a Lien is granted in
favor of the Administrative Agent to secure the obligations of any Borrower
under the Loan Documents or the obligations of any Obligor under any Loan
Document to which it is party, including any documents executed pursuant to
Section 10.18 or 10.27.

          Company — see the Preamble.

          Company Pledge Agreement means the Fourth Amended and Restated Company
Pledge Agreement dated as of the Amendment Effective Date among the Company,
certain of its Restricted Subsidiaries and the Administrative Agent and each
other Pledge Agreement substantially in the form of Exhibit D-2, as such
Company Pledge Agreements may be amended, supplemented or otherwise modified
from time to time.

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          Company Preference Shares means shares of preferred stock of the Company
issued to an Affiliate of the Company, provided that such shares do not
constitute Voting Stock.

          Company Security Agreement means the Third Amended and Restated Security
Agreement dated as of the Amendment Effective Date among the Company, certain
of its U.S. Subsidiaries and the Administrative Agent substantially in the form
of Exhibit B-1, as amended, supplemented or otherwise modified from time to
time.

          Compliance Certificate — see Section 10.1.3.

          Computation Date means, at any time, the last day of the Computation
Period most recently ended.

          Computation Period means, for each Fiscal Quarter, the four consecutive
Fiscal Quarters ending on the last day of such Fiscal Quarter.

          Consolidated Net Income (Loss) of the Financial Group means, for any
period, the consolidated net income (or loss (and treating loss as a negative
number) of the Financial Group for such period as determined in accordance with
GAAP, adjusted by excluding, without duplication, to the extent included in
calculating such Consolidated Net Income (Loss), (a) all extraordinary gains
and losses, (b) the portion of consolidated net income (or loss) of the
Financial Group allocable to Investments in unconsolidated Persons (other than
Unrestricted Subsidiaries) to the extent that cash dividends or distributions
have not actually been received by a member of the Financial Group, (c) the
portion of consolidated net income (or loss) of the Financial Group allocable
to Unrestricted Subsidiaries (or to payments received therefrom), (d) any gain
or loss realized upon the termination of any employee pension benefit plan, (e)
aggregate gains and losses (less all fees and expenses relating thereto) in
respect of dispositions of assets (including, without limitation, sales of
shares of Unrestricted Subsidiaries or unconsolidated Persons and non-cash
writeoffs of assets (provided that there are no continuing cash expenses
related to such write-offs)) other than in the ordinary course of business, (f)
the net income of any Restricted Subsidiary to the extent that the declaration
of dividends or similar distributions by such Restricted Subsidiary of that
income is not at the time permitted, directly or indirectly, by operation of
the terms of its charter or any agreement, instrument, judgment, decree, order,
statute, rule or governmental regulations applicable to such Restricted
Subsidiary or its stockholders, (g) any gain from the collection of proceeds of
life insurance policies, (h) any gain arising from the acquisition of any
securities, or the extinguishment, under GAAP, of any Debt of the Financial
Group, (i) aggregate gains or losses relating to foreign currency transactions
or translations or (j) redundancy costs relating to the elimination of jobs.
In calculating the Consolidated Net Income (Loss) of the Financial Group, the
Consolidated Net Income (Loss) of Restricted Subsidiaries that are not Wholly
Owned Restricted Subsidiaries will be included only to the extent of the
Financial Group’s common equity interest in such Restricted Subsidiaries, as
provided in the definition of Operating Cash Flow.

          Contributed Cash Flow means on any date of any assets sold or proposed to
be sold (or deemed disposed of) in any Asset Sale, or of any assets consisting
of Traded Newspaper Assets or Traded-For Newspaper Assets included or proposed
to be included in any Asset Swap, the Operating Cash Flow generated by such
assets for the period of four Fiscal Quarters ended on or (if such date shall
not be the last day of a Fiscal Quarter) most recently prior to such date.

          Credit Extension means making any Loan, issuing any Letter of Credit or
extending the stated expiry date of any existing Letter of Credit, as the case
may be.

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          CST
Real Estate means the real estate, including land, building and
fixtures, located at 401 North Wabash Avenue, Chicago, Illinois, where the
Company currently maintains its headquarters, and all improvements thereon.

          CST
Real Estate Transactions means the sale or other disposition (other
than to an Affiliate), including contribution to a new joint venture entity, of
all or any portion of the interest of the Company or a Restricted Subsidiary in
the CST Real Estate.

          Debt means, with respect to any Person, without duplication, (a) all
indebtedness of such Person for borrowed money or for the deferred purchase
price of property or services (or other obligations to former owners of
acquired businesses), excluding any trade payables and other accrued current
liabilities arising in the ordinary course of business, but including, without
limitation, all obligations, contingent or otherwise, of such Person in
connection with any letters of credit issued under letter of credit facilities,
acceptance facilities or other similar facilities and in connection with any
agreement to purchase, redeem, exchange, convert or otherwise acquire for value
any Capital Stock of such Person, or any warrants, rights or options to acquire
such Capital Stock, now or hereafter outstanding, (b) all obligations of such
Person evidenced by bonds, notes, debentures or other similar instruments, (c)
all indebtedness created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (even if
the rights and remedies of the seller or lender under such agreement in the
event of default are limited to repossession or sale of such property), but
excluding trade payables arising in the ordinary course of business, (d) all
obligations under Hedging Agreements of such Person related to the settlement
or termination of those agreements as of the date of determination, (e) all
Capital Lease obligations of such Person, (f) all Debt referred to in clauses
(a) through (e) above of other Persons and all dividends of other Persons, the
payment of which is secured by (or for which the holder of such Debt has an
existing right, contingent or otherwise, to be secured by) any Lien, upon or
with respect to property (including, without limitation, accounts and contract
rights) owned by such Person, even though such Person has not assumed or become
liable for the payment of such Debt, (g) all Guarantee Obligations of such
Person, (h) all Redeemable Capital Stock and (without duplication) all
Preferred Stock of Restricted Subsidiaries other than Redeemable Capital Stock
or Preferred Stock held by Restricted Subsidiary Obligors or the Company,
valued at the greater of its voluntary or involuntary maximum fixed repurchase
price plus accrued and unpaid dividends, (i) any other obligation, liability or
instrument which is treated as indebtedness under GAAP, (j) all Debt of any
partnership of which such Person is a general partner, and (k) any amendment,
supplement, modification, deferral, renewal, extension, refunding or
refinancing of any Debt of the types referred to in clauses (a) through (j)
above. For purposes hereof, the “maximum fixed repurchase price” of any
Redeemable Capital Stock or Preferred Stock which does not have a fixed
repurchase price shall be calculated in accordance with the terms of such
Redeemable Capital Stock or Preferred Stock as if such Redeemable Capital Stock
or Preferred Stock were purchased on any date on which Debt shall be required
to be determined pursuant to this Agreement, and if such price is based upon,
or measured by, the fair market value of such Redeemable Capital Stock or
Preferred Stock, such fair market value to be determined in good faith by the
Board of Directors of such Person.

          Debt Proceeds means the aggregate Net Cash Proceeds from the issuance of
any Debt by the Company or any Restricted Subsidiary of the Company other than
Debt issued pursuant to Sections 10.7(a) through (i), Sections 10.7(k) through
(m), and Section 10.7(j); provided, however, that the Net Cash Proceeds from
the issuance of any Debt issued pursuant to Section 10.7(j) shall only be
excluded from this definition to the extent that such Net Cash Proceeds are
concurrently utilized in connection with an Acquisition otherwise permitted
hereunder (which Acquisition shall be consummated concurrently with the
issuance of such Debt).

          Determination Date — see Section 2.13.

          Dollar and the sign “$” mean lawful money of the United States of America.

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          Dollar Equivalent means, (a) with respect to Dollars or an amount
denominated in Dollars, such amount, and (b) with respect to any amount
denominated in an Alternate Currency, at any time for the determination
thereof, the equivalent amount of Dollars obtained by converting such amount
denominated in an Alternate Currency involved in such computation into Dollars
at the spot rate as quoted by the Administrative Agent for the purchase of
Dollars with such Alternate Currency through the FX Trading Office at
approximately 12:00 p.m. (New York City time) two Business Days prior to the
date on which such computation is made.

          Dormant Subsidiaries means Restricted Subsidiaries which are inactive or
have minimal assets as shown on Schedule 9.8 or certified by the Company to the
Administrative Agent.

          DTH means DT Holdings Limited, a limited liability company incorporated
under the laws of England and Wales.

          Eligible Assignee means (a) a commercial bank organized under the laws of
the United States or any State thereof, and having a combined capital and
surplus of at least $100,000,000; (b) a commercial bank organized under the
laws of any other country which is a member of the Organization for Economic
Cooperation and Development (the “OECD”), or a political subdivision of any
such country, and having a combined capital and surplus of at least
$100,000,000; (c) a Person that is engaged in the business of purchasing or
investing in bank loans and that is (i) a Subsidiary of a Lender, (ii) a
Subsidiary of a Person of which a Lender is a Subsidiary, (iii) a Person of
which a Lender is a Subsidiary; or (iv) administered or managed by the same
investment adviser as a Lender or other Person described in clause
(c)(i), (ii)
or (iii); and (d) finance companies, mutual funds, pension funds, insurance
companies, and other investors or financial institutions (except the Borrower
or an Affiliate of the Borrower) engaged in the making of or investing in bank
loans, it being understood that this definition shall not be construed to
require any assignee of Loans or Revolving Commitments hereunder to be exempt
from U.K. Recipient Taxes.

          Employee Benefit Plan means any employee benefit plan, pension plan or
welfare plan, other than a “multiemployer plan” as such term is defined in
Section 3(37) of ERISA, which is maintained or contributed to for the benefit
of the employees of the Company or any of its Subsidiaries which, under
applicable law, (a) is required to be funded through a trust or similar funding
vehicle or (b) creates or could result in a Lien on any property of the Company
or any of its Subsidiaries.

          Environmental Laws means any national, federal, State or local law,
statute, ordinance, regulation, rule, order, consent decree, permit, settlement
agreement, judicial or administrative decision, injunction or requirement of
any governmental authority, including the European Community, which relates to
or otherwise imposes liability or standards of conduct concerning discharges,
releases or threatened releases of noises, odors or any Regulated Materials
into ambient air, ground or surface water or land, or otherwise relating to the
manufacture, processing, generation, distribution, use, treatment, storage,
disposal, cleanup, transport or handling of Regulated Materials, including the
Resource Conservation and Recovery Act, the Comprehensive Environmental
Response, Compensation and Liability Act, any so-called “Superfund” or
“Superlien” law, the Toxic Substances Control Act, the Environmental Protection
Act (Canada), the Transportation of Dangerous Goods Act (Canada), the Hazardous
Products Act (Canada), the Environmental Protection Act (Ontario), the Water
Resources Act (Ontario), the Gasoline Handling Act (Ontario), any similar law
in effect in Israel or the United Kingdom, and any other applicable federal,
State, provincial, or local statute, law, ordinance, code, rule, regulation,
order, decree or other officially-promulgated and legally binding policy
regulating, relating to, or imposing liability or standards of conduct
(including permit requirements and emission or effluent
restrictions) concerning any Regulated Materials, as now or at any time
hereafter in effect applicable to the Company or any of its Restricted
Subsidiaries.

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          ERISA means the Employee Retirement Income Security Act of 1974, as
amended, and any successor statute of similar import, together with the
regulations thereunder, in each case as in effect from time to time.
References to sections of ERISA also refer to any successor sections.

          ERISA Affiliate means any corporation, trade or business that is, along
with the Company or any of its Subsidiaries, a member of a controlled group of
corporations or a controlled group of trades or businesses, as described in
Section 414 of the Code or Section 4001 of ERISA.

          Euro means the single currency of Participating Member States of the
European Union.

          Eurocurrency Loan means any Tranche A Loan, Tranche B Loan, Term A Loan,
Term B Loan or Incremental Loan which bears interest at a rate determined by
reference to the Eurocurrency Rate (Reserve Adjusted).

          Eurocurrency Rate means, with respect to any Eurocurrency Loan for any
Interest Period,

          (a) with respect to Eurocurrency Loans denominated in Dollars, the
rate appearing on Page 3750 of the Telerate Service (or on any successor
or substitute page of such service, or any successor to or substitute for
such service, providing rate quotations comparable to those currently
provided on such page of such service, as determined by the
Administrative Agent from time to time acting reasonably for purposes of
providing quotations of interest rates applicable to Dollar deposits in
the London interbank market) at approximately 11:00 a.m., London time,
two Business Days prior to the commencement of such Interest Period, as
the rate for Dollar deposits with a maturity comparable to such Interest
Period. In the event that such rate is not available at such time for
any reason, then the Eurocurrency Rate with respect to such Eurocurrency
Loans for such Interest Period shall be the rate of interest (rounded, if
necessary, to the next higher 1/16 of 1%) of the rate per annum at which
Dollar deposits in immediately available funds are offered by the
Administrative Agent’s Lending Office in the relevant interbank market at
or about 11:00 a.m. (London time), two Business Days prior to the first
day of such Interest Period, in the approximate amount of the relevant
Eurocurrency Loan and having a maturity approximately equal to such
Interest Period; and

          (b) with respect to Eurocurrency Loans denominated in an Alternate
Currency, the rate appearing on Page 3750 (or 3740 in the case of
Canadian Dollars) of the Telerate Service (or on any successor or
substitute pages of such service, or any successor to or substitute for
such service, providing rate quotations comparable to those currently
provided on such pages of such service, as determined by the
Administrative Agent from time to time acting reasonably for purposes of
providing quotations of interest rates applicable to deposits in such
Alternate Currency in the London interbank market) at approximately 11:00
a.m., London time, two Business Days prior to the commencement of such
Interest Period, as the rate for deposits in such Alternate Currency (as
applicable) with a maturity comparable to such Interest Period. In the
event that such rate is not available at such time for any reason, then
the Eurocurrency Rate with respect to such Eurocurrency Loan for such
Interest Period shall be the rate of interest (rounded, if necessary, to
the next higher 1/16 of 1%) equal to the rate at which deposits in the
relevant Alternate Currency in immediately available funds are offered by
the Administrative Agent’s Lending Office in the London interbank market
at or about 11:00 a.m. (London time) two Business Days prior to the
beginning of such Interest Period in the approximate amount of the
relevant Eurocurrency Loan and having a maturity approximately equal to
such Interest Period.

          Eurocurrency Rate (Reserve Adjusted) means, relative to any Loan to be
made, continued or maintained as, or converted into, a Eurocurrency Rate Loan,
for any Interest Period, a rate per annum (rounded upwards, if necessary, to
the nearest 1/16 of 1%) determined pursuant to the following formula:

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	 	 	 	 	Eurocurrency Rate
	Eurocurrency Rate	 	=	 	

	(Reserve Adjusted)	 	 	 	1.00 – Eurocurrency Reserve Percentage.

          Eurocurrency Reserve Percentage means, with respect to any Eurocurrency
Loan denominated in the applicable currency for any Interest Period, a
percentage (expressed as a decimal) equal to the daily average during such
Interest Period of the percentage in effect on each day of such Interest
Period, as prescribed by the Board of Governors of the Federal Reserve System
(or any successor) or any similar governmental authority relevant to Alternate
Currencies, for determining the aggregate maximum reserve requirements
applicable to “Eurocurrency Liabilities” pursuant to Regulation D of the Board
of Governors of the Federal Reserve System or any other then applicable
regulation of such Board of Governors or other similar governmental authority
which prescribes reserve requirements applicable to “Eurocurrency Liabilities”
as presently defined in Regulation D or other relevant reserve requirements
applicable to Loans in Alternate Currencies.

          Event of Default means any of the events described in Section 12.1.

          Excess Cash Flow means, as of the last day of any Computation Period, the
sum of (a) Operating Cash Flow minus (b) Fixed Charges, in each case with
respect to such Computation Period.

          Excess Cash Flow Payment means, with respect to any Fiscal Year, a
percentage of Excess Cash Flow for such Fiscal Year determined in accordance
with the following table:

	 	 	 	 	 
	Net Leverage Ratio	 	% of Excess
	at end of Fiscal Year	 	Cash Flow
	
	 	

	* 5.00
	 	 	50	%
	*
4.00 but < 5.00
	 	 	25	%
	<4.00
	 	 	0	%

	*	 	greater than or equal to

          Excess Cash Flow Basket — see Section 10.9(b).

          Exchange Act means the Securities Exchange Act of 1934, as amended.

          Excluded Taxes — see definition of Taxes.

          Existing Credit Agreement — see the Recitals.

          Existing Credit Extensions means the loans and letters of credit
outstanding under the Existing Credit Agreement immediately prior to the
Amendment Effective Date.

          Facility means each of (a) the Tranche A Commitments and the Tranche A
Credit Extensions made thereunder (the “Tranche A Facility”), (b) the Tranche B
Commitments and the Tranche B Credit Extensions made thereunder (the “Tranche B
Facility”), (c) the Commitments of the Term A Lenders to make Term A Loans and
the Term A Loans made thereunder (the “Term A Loan Facility”), (d) the
commitments of the Term B Lenders to make Term B Loans and the Term B Loans
made thereunder (the “Term B Loan Facility”), and (e) the commitments of the
Incremental Lenders under each tranche of
Loans established pursuant to Section 3 to make Incremental Loans and the
Incremental Loans made thereunder (each tranche an “Incremental Facility”).

          FDTH — see the Preamble.

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          Federal Funds Rate means, for any period, a fluctuating interest rate per
annum equal for each day during such period to (a) the weighted average of the
rates on overnight federal funds transactions with members of the Federal
Reserve System arranged by federal funds brokers, as published for such day
(or, if such day is not a Business Day, for the preceding Business Day) by the
Federal Reserve Bank of New York; or (b) if such rate is not so published for
any day which is a Business Day, the average of the quotations at approximately
2:00 p.m. (New York City time) for such day on such transactions received by
the Administrative Agent from three federal funds brokers of recognized
standing selected by it.

          Fee Letter means the Fee Letter dated November 7, 2002 among Wachovia
Securities, Wachovia Bank, and the Company, as the same may be amended or
otherwise modified from time to time by the parties thereto.

          Financial Group means the Borrowers and their Restricted Subsidiaries.

          Fiscal Quarter means a fiscal quarter of a Fiscal Year.

          Fiscal Year means the fiscal year of the Company and its Restricted
Subsidiaries, which period shall be the 12-month period ending on December 31
of each year. References to a Fiscal Year with a number corresponding to any
calendar year (e.g., “Fiscal Year 2002”) refer to the Fiscal Year ending on
December 31 of such calendar year.

          Fixed Charge Coverage Ratio means, as of the last day of any Computation
Period, the ratio of (a) Operating Cash Flow of the Financial Group for such
Computation Period to (b) the sum, without duplication, of (i) Fixed Charges of
the Financial Group plus (ii) Restricted Payments of the Financial Group, in
each case for the same period.

          Fixed Charges means, with respect to any Computation Period, the sum,
without duplication, of:

		
	 	     (a) Interest Expense (not including amortization of financing costs) for
such Computation Period;

		
	 	     plus

		
	 	     (b) all scheduled principal payments on Total Funded Debt, including any
Synthetic Leases, during such Computation Period;

		
	 	     plus

		
	 	     (c) all federal, State, local and foreign income taxes (actually paid in
cash, net of refunds received during such Computation Period), excluding
taxes paid or refunds received in cash relating to Consolidated Net
Income for any period prior to the first Fiscal Quarter after the
Amendment Effective Date for which financial reports are available or
relating to gains or losses on Asset Sales, to the extent otherwise
included herein;

		
	 	     plus

		
	 	     (d) Capital Expenditures made during such Computation Period;

          provided that during the first year following the Amendment Effective
Date, Fixed Charges shall be determined as follows:

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	 	     (i) after the end of the first Fiscal Quarter after the Amendment
Effective Date for which financial reports are available, but prior
to the end of the second Fiscal Quarter after the Amendment
Effective Date for which financial reports are available, on an
annualized basis using the financial information for such first
Fiscal Quarter;
	 
	 	     (ii) after the end of the second Fiscal Quarter after the Amendment
Effective Date for which financial reports are available, but prior
to the end of the third Fiscal Quarter after the Amendment
Effective Date for which financial reports are available, on an
annualized basis using the financial information for such first and
second Fiscal Quarters; and
	 
	 	     (iii) after the end of the third Fiscal Quarter after the Amendment
Effective Date for which financial reports are available, but prior
to the end of the fourth Fiscal Quarter after the Amendment
Effective Date for which financial reports are available, on an
annualized basis using the financial information for such first,
second and third Fiscal Quarters.
	 
	 	     (iv) after the end of the fourth Fiscal Quarter after the Amendment
Effective Date for which financial reports are available, but prior
to the end of the fifth Fiscal Quarter after the Amendment
Effective Date for which financial reports are available, on an
annualized basis using the financial information for such first,
second, third and fourth Fiscal Quarters.

          provided, further, however, that in each case, Interest Expense for the
first Fiscal Quarter after the Amendment Effective Date for which
financial reports are available, but prior to the end of the second
Fiscal Quarter for which financial reports are available, shall be
calculated for such Fiscal Quarter on an annualized quarterly basis
(based on the number of days elapsed in a 90-day Fiscal Quarter) using
Interest Expense for the period from the Amendment Effective Date through
the end of such Fiscal Quarter, excluding Interest Expense on the 1996
Senior Subordinated Notes and the 1997 Senior Subordinated Notes (to the
extent such interest expense is otherwise included in this definition).

          Floating Rate Loan means any Tranche A Loan, Term A Loan, Term B Loan or
Incremental Loan which bears interest at or by reference to the Alternate Base
Rate.

          FX Trading Office means the foreign exchange trading center of the
Administrative Agent located in London, England, or whatever other office the
Administrative Agent may from time to time designate acting reasonably.

          GAAP means generally accepted accounting principles in the United States,
consistently applied, as in effect from time to time.

          Group — see Section 2.4.

          Guarantee Obligation means any agreement, undertaking or arrangement by
which any Person guarantees or endorses (by direct or indirect agreement,
contingent or otherwise, to provide funds for payment, to supply funds to or
otherwise to invest in a debtor, or otherwise to assure a creditor against
loss) any indebtedness, obligation or other liability of any other Person
(other than by endorsements of instruments in the course of collection), or
guarantees the payment of dividends or other distributions upon the shares of
any other Person. The amount of any Person’s obligation under any Guarantee
Obligation shall (subject to any limitation set forth therein) be deemed
to be the outstanding principal amount of the debt, obligation or other
liability guaranteed or endorsed thereby.

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          Guaranteed Obligations — see Section 14.1.

          Guaranties means the Hollinger International Guaranty, each U.S.
Subsidiary Guaranty, and each U.K. Subsidiary Guaranty.

          Guarantor — see Section 14.1.

          HCNLP means Hollinger Canadian Newspapers, Limited Partnership, a limited
partnership established under the laws of the Province of Ontario, and any
Subsidiary thereof. HCNLP is a limited partnership formed under the Limited
Partnerships Act (Ontario), a limited partner of which is only liable for any
of its liabilities or any of its losses to the extent of the amount that the
limited partner has contributed or agreed to contribute to its capital and the
limited partner’s pro rata share of any undistributed income.

          Hedging Agreement means any interest rate, currency or commodity swap
agreement, interest rate cap agreement, interest rate collar agreement, or
other agreement or arrangement designed to protect a Person against
fluctuations in interest rates, currency exchange rates or commodity prices.

          Hollinger Inc. means Hollinger Inc., a corporation continued under the
laws of Canada.

          Hollinger International means Hollinger International Inc., a Delaware
corporation.

          Hollinger International Guaranty means the Fourth Amended and Restated
Hollinger International Guaranty dated as of the Amendment Effective Date
substantially in the form of Exhibit C-1 executed by Hollinger International in
favor of the Lenders and the Administrative Agent, as further amended,
supplemented or otherwise modified from time to time.

          Hollinger International Pledge Agreement means the Amended and Restated
Pledge Agreement dated as of the Amendment Effective Date substantially in the
form of Exhibit D-1 between Hollinger International and the Administrative
Agent, as amended, supplemented or otherwise modified and supplemented from
time to time.

          HUKH means Hollinger UK Holdings Limited, a limited liability company
incorporated under the laws of England and Wales.

          including shall not be limiting and means “including without limitation”.

          Incremental Borrower — see Section 3.1.

          Incremental Facility — see Section 3.1.

          Incremental Lender means, at any time, any Lender which has a commitment
to make an Incremental Loan under Section 3 or which is owed an Incremental
Loan; the initial Incremental Lenders shall be set forth on a Schedule to the
applicable Supplement for such Incremental Loans.

          Incremental Loan — see Section 3.

          Incremental Loan Offer — see Section 6.2.5(d).

          Incremental Percentage means, with respect to any tranche of Incremental
Loans, relative to any Incremental Lender at any time, the percentage which
such Incremental Lender’s then outstanding,

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aggregate principal amount of all
Incremental Loans is of the aggregate principal amount of Incremental Loans of
all Incremental Lenders of such tranche.

          Incremental Reduction Percentage means the percentage which (a) the sum of
the aggregate outstanding principal amount of all Incremental Loans is of (b)
the sum of (i) the aggregate outstanding principal amount of all Term A Loans,
plus (ii) the aggregate outstanding principal amount of all Term B Loans, plus
(iii) the aggregate outstanding principal amount of all Incremental Loans.

          Indemnified Liability — see Section 15.14.

          Indemnified Party — see Section 15.14.

          Individual Outstanding Revolving Amount means, with respect to any
Revolving Lender, the sum of (a) the Dollar Equivalent of the aggregate
principal amount of such Revolving Lender’s Revolving Loans outstanding on such
date, plus (b) the Dollar Equivalent of the aggregate amount of such Revolving
Lender’s participation in the Stated Amount of outstanding Letters of Credit.

          Individual Revolving Commitment means, with respect to any Revolving
Lender, the amount of such Revolving Lender’s Revolving Percentage times the
Total Revolving Commitments, it being understood that each Revolving Lender’s
Individual Revolving Commitment shall be the total amount such Revolving Lender
is obligated to extend to the Company and Telegraph under the Tranche A
Commitments and the Tranche B Commitments, notwithstanding that the Tranche A
Commitments and the Tranche B Commitments of such Revolving Lender may exceed
its Individual Revolving Commitment. The initial amount of the Individual
Revolving Commitment of each Revolving Lender is set forth in Schedule 1.1.

          Intellectual Property means all patents and patent applications, trade and
service marks and trade and service mark applications (and all goodwill
associated with such applications), all brand and trade names, all copyrights
and rights in the nature of copyright, all design rights, all registered
designs and applications for registered designs, all trade secrets, know-how
and all other intellectual property rights owned by members of the Financial
Group throughout the world or the interests of any member of the Financial
Group in any of the foregoing, and all rights under any agreements entered into
by or for the benefit of any member of the Financial Group relating to the use
or exploitation of any such rights.

          Intercompany Debt means all Debt owed by the Company and/or any Restricted
Subsidiary to Hollinger Inc., Hollinger International or any other Affiliate
other than the Company or any Restricted Subsidiary.

          Interest Coverage Ratio means, as of the last day of any Computation
Period, the ratio of (a) Operating Cash Flow for such Computation Period to (b)
total Interest Expense for such Computation Period;

provided, that during the first year following the Amendment Effective Date,
for the purpose of calculation of the Interest Coverage Ratio during such
period, Interest Expense shall be determined as follows:

		
	 	     (i) after the end of the first Fiscal Quarter after the Amendment
Effective Date for which financial reports are available, but prior to
the end of the second Fiscal Quarter after the Amendment Effective Date
for which financial reports are available, on an annualized basis (based
on the number of days elapsed in a 365-day year) using Interest Expense
for the period
from the Amendment Effective Date through the end of such first Fiscal
Quarter, excluding 

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	 	Interest Expense on the 1996 Senior Subordinated
Notes and the 1997 Senior Subordinated Notes (to the extent such interest
expense is otherwise included in this definition);
	 
	 	     (ii) after the end of the second Fiscal Quarter after the Amendment
Effective Date for which financial reports are available, but prior to
the end of the third Fiscal Quarter after the Amendment Effective Date
for which financial reports are available, on an annualized basis (based
on the number of days elapsed in a 365-day year) using Interest Expense
for the period from the Amendment Effective Date through the end of such
second Fiscal Quarter, excluding Interest Expense on the 1996 Senior
Subordinated Notes and the 1997 Senior Subordinated Notes (to the extent
such interest expense is otherwise included in this definition);
	 
	 	     (iii) after the end of the third Fiscal Quarter after the Amendment
Effective Date for which financial reports are available, but prior to
the end of the fourth Fiscal Quarter after the Amendment Effective Date
for which financial reports are available, on an annualized basis (based
on the number of days elapsed in a 365-day year) using Interest Expense
for the period from the Amendment Effective Date through the end of such
third Fiscal Quarter, excluding Interest Expense on the 1996 Senior
Subordinated Notes and the 1997 Senior Subordinated Notes (to the extent
such interest expense is otherwise included in this definition); and
	 
	 	     (iv) after the end of the fourth Fiscal Quarter after the Amendment
Effective Date for which financial reports are available, but prior to
the end of the fifth Fiscal Quarter after the Amendment Effective Date
for which financial reports are available, on an annualized basis (based
on the number of days elapsed in a 365-day year) using Interest Expense
for the period from the Amendment Effective Date through the end of such
fifth Fiscal Quarter, excluding Interest Expense on the 1996 Senior
Subordinated Notes and the 1997 Senior Subordinated Notes (to the extent
such interest expense is otherwise included in this definition).

          Interest Expense means the net sum of consolidated interest expense,
payments with respect to any guaranty of or dividends on Redeemable Capital
Stock or Preferred Stock (to the extent actually made during such period), and
commitment fees and letter of credit fees of the Company and its Restricted
Subsidiaries for such period accrued on Total Funded Debt minus interest
income, in each case, of the Borrowers and their Restricted Subsidiaries
(except for interest income earned on Trustee Proceeds).

          Interest Period — see Section 5.3.

          Investment means, with respect to any Person, directly or indirectly:

		
	 	     (a) any loan or advance or other extension of credit (including
guarantees) or capital contribution (by means of any transfer of cash or
other property to others or any payment for property or services for the
account or use of others) made by such Person to any other Person;
	 
	 	     (b) any ownership or similar interest held by such Person in any
other Person; and
	 
	 	     (c) any other items that are or would be classified as investments
on a balance sheet prepared in accordance with GAAP.

     The amount of any Investment shall be the original principal or capital amount
thereof less all returns of principal or equity thereon (and without adjustment
by reason of the financial condition of such other Person) and shall, if made
by the transfer or exchange of property other than cash, be deemed to have been
made in an original principal or capital amount equal to the fair market value
of such property.

          Israeli Subsidiary means each of JPEH, JPPL and Palestine Post, and any
Subsidiaries thereof.

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Table of Contents

          Issuing Bank means Wachovia Bank in its capacity as issuer of Letters of
Credit.

          JPEH means Jerusalem Post Employees Holding (1983) Ltd., an Israeli
corporation.

          JPPL means Jerusalem Post Publications Limited, an Israeli corporation.

          Lender — see the Preamble.

          Lending Office means (a) with respect to any Lender, the office or offices
of such Lender which shall be making or maintaining the Tranche A Loans,
Tranche B Loans, Term A Loans, Term B Loans or Incremental Loans that are
Eurocurrency Loans of such Lender hereunder or such other office or offices at
which such Lender determines its Eurocurrency Rate and (b) with respect to the
Administrative Agent, the office or offices of the Administrative Agent which
shall receive payments or disburse borrowings in Dollars and Alternate
Currencies as the Administrative Agent designates to the Lenders and the
Company from time to time. A Lending Office may be either a domestic or
foreign office.

          Letter of Credit means a standby letter of credit having terms and
provisions which are permitted by this Agreement and which otherwise are
reasonably satisfactory to the Issuing Bank.

          Letter of Credit Application means a letter of credit application in the
form then used by the Issuing Bank for standby letters of credit (with
appropriate adjustments to indicate that any letter of credit issued thereunder
is to be issued pursuant to, and subject to the terms and conditions of, this
Agreement).

          Lien means, when used with respect to any Person, any interest of any
other Person in any real or personal property, asset or other right owned or
being purchased or acquired by such Person which secures payment or performance
of any obligation and shall include any mortgage, lien, encumbrance, charge or
other security interest of any kind, whether arising by contract, as a matter
of law, by judicial process or otherwise.

          Loan Documents means this Agreement, the Fee Letter, the Guaranties, the
Letter of Credit Applications, the Subordination Agreements and the Collateral
Documents.

          Loans means each of the Tranche A Loans, the Tranche B Loans, the Term A
Loans, the Term B Loans and the Incremental Loans.

          Local Time means (a) with respect to Dollar Loans, New York City time, (b)
with respect to Loans denominated in Sterling, London time and (c) with respect
to Loans denominated in Euros, Brussels time.

          Management Fees means any management, consulting, non-competition,
advisory or other similar fees or payments, or any interest thereon, or
corporate expense reimbursements payable by the Company or any of its
Restricted Subsidiaries to Hollinger Inc., Hollinger International or any other
Affiliate other than the Company or any Restricted Subsidiary.

          Margin Stock means any “margin stock” as defined in any of Regulations T,
U and X of the Board of Governors of the Federal Reserve System.

          Material Adverse Effect means a material adverse effect on (a) the
condition (financial or otherwise), operations, business, prospects, properties
or assets of (i) the Company and its U.S. Subsidiaries and the Israeli
Subsidiaries, taken as a whole, (ii) FDTH and its Restricted Subsidiaries,
taken as a whole, or (iii) the Company and the Restricted Subsidiaries,
taken as a whole; or (b) the ability of the Company and the Restricted
Subsidiary Obligors taken as a whole to timely and fully perform any

17

Table of Contents

of their payment or other material obligations under this Agreement or any other Loan
Document to which they are a party.

          Moody’s means Moody’s Investors Service, Inc. or any successor rating
agency.

          Multiemployer Plan means a multiemployer plan, as defined in Section
4001(a)(3) of ERISA, to which the Company, any of its Subsidiaries, or any
ERISA Affiliate, is making or accruing an obligation to make contributions, or
has within any of the preceding five plan years made or accrued an obligation
to make contributions.

          Negative Trade Differential means with respect to any Asset Swap the
amount, if any, by which the Contributed Cash Flow of the Traded Newspaper
Assets included in such Asset Swap (as determined in good faith by the Board of
Directors of the Company) as of the date of such Asset Swap exceeds the
Contributed Cash Flow of the Traded-For Newspaper Assets included in such Asset
Swap (as so determined).

          Net Cash Proceeds means (a) with respect to any Asset Sale by any Person,
the proceeds thereof in the form of cash or cash equivalents including payments
of principal and interest in respect of deferred payment obligations and, with
respect to the contribution of the CST Real Estate in connection with the CST
Real Estate Transactions, any proceeds in excess of $35,000,000 received from
the joint venture entity created in connection therewith when received in the
form of, or stock or other assets when disposed of for, cash or cash
equivalents (except to the extent that such obligations are financed or sold
with recourse to the Company or any Restricted Subsidiary) net of (i) brokerage
commissions and other reasonable fees and expenses (including fees and expenses
of counsel and investment bankers) related to such Asset Sale, (ii) provisions
for all taxes payable as a result of such Asset Sale, provided,
however, that
in the event such taxes are not actually paid or any reserve therefor is
reduced, the amount of such unpaid taxes or reserve reduction shall be deemed
to be Net Cash Proceeds which are received on the date on which it is
determined that such taxes will not be paid or such reserve is reduced, (iii)
payments made to retire indebtedness where payment of such indebtedness is
secured by the assets or properties the subject of such Asset Sale, (iv)
amounts required to be paid to any Person (other than the Company or any
Restricted Subsidiary) owning a beneficial interest in the assets subject to
the Asset Sale, and (v) appropriate amounts to be provided by the Company or
any Restricted Subsidiary, as the case may be, as a reserve, in accordance with
GAAP, against any liabilities associated with such Asset Sale and retained by
the Company or any such Restricted Subsidiary, as the case may be, after such
Asset Sale, including pension and other post-employment benefit liabilities,
liabilities related to environmental matters and liabilities under any
indemnification obligations associated with such Asset Sale, (b) with respect
to any issuance or sale of Capital Stock or options, warrants or rights to
purchase Capital Stock, or debt securities or Capital Stock that have been
converted into or exchanged for Capital Stock, the proceeds of such issuance or
sale in the form of cash or cash equivalents, including payments in respect of
deferred payment obligations when received in the form of, or stock or other
assets when disposed of for, cash or cash equivalents (except to the extent
that such obligations are financed or sold with recourse to the Company or any
of its Subsidiaries), net of attorneys’ fees, accountants’ fees and brokerage,
consultation, underwriting and other fees and expenses actually incurred in
connection with such issuance or sale and net of taxes paid or payable as a
result thereof, (c) with respect to the issuance of Debt, the proceeds of such
issuance net of attorneys’ fees, accountants’ fees and brokerage, consultation,
underwriting and other fees and expenses actually incurred in connection with
such issuance and (d) with respect to any Casualty Event, the amount of
insurance proceeds, condemnation awards or other recoveries (other than
business interruption insurance) net of attorneys’ fees and other fees and
expenses actually incurred in connection with the collection of such payments,
in each case as reflected in a certificate from the Company delivered to the
Administrative Agent.

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          Net Leverage Ratio means, as of any time, the ratio of (a) the sum of (i)
Total Funded Debt as of such time minus (ii) the amount of cash (excluding any
cash collateralizing Original Letters of Credit) held by the Borrowers and
their Restricted Subsidiaries in excess of $5,000,000 as of such time to (b)
Operating Cash Flow for the Computation Period most recently ended.

          New High Yield Notes — see Section 11.1.19.

          New Investments Basket  — see Section 10.10(d).

          Newspaper Business means (a) the business of publishing and distributing
(including distributing by electronic means) newspapers, magazines and other
paid or free publications having national, regional, local or targeted markets,
including publications having limited or no news or editorial content such as
shoppers or other “total market coverage” publications and similar
publications, (b) the ownership and operation of consumer e-commerce vehicles
that complement the foregoing and (c) the ownership and operation of
Investments permitted under Section 10.10.

          1996 Senior Subordinated Indenture means that certain Indenture dated as
of February 1, 1996, as amended by First Supplemental Indenture dated February
27, 1997, and Second Supplemental Indenture dated March 4, 1999 between the
Company and State Street Bank & Trust Company, as Trustee, relating to the 1996
Senior Subordinated Notes, as the same may hereafter be amended, amended and
restated, supplemented or otherwise modified in accordance with the terms
thereof and hereof and in effect.

          1996 Senior Subordinated Notes means the 9 1/4% Senior Subordinated Notes
due February 1, 2006 of the Company issued under the 1996 Senior Subordinated
Indenture.

          1997 Senior Indenture means that certain Senior Indenture dated as of
March 15, 1997, as amended by First Supplemental Indenture dated as of March 4,
1999 and the Second Supplemental Indenture dated March 1, 2002 between the
Company and State Street Bank & Trust Company, as Trustee, relating to the 1997
Senior Notes, as the same may hereafter be amended, amended and restated,
supplemented or otherwise modified in accordance with the terms thereof and
hereof and in effect.

          1997 Senior Notes means the 8 5/8% Senior Notes due March 15, 2005 of the
Company issued under the 1997 Senior Indenture.

          1997 Senior Subordinated Indenture means that certain Senior Subordinated
Indenture dated March 15, 1997, as amended by First Supplemental Indenture
dated as of December 23, 1998 and Second Supplemental Indenture dated as of
March 4, 1999 between the Company and State Street Bank & Trust Company, as
Trustee, relating to the 1997 Senior Subordinated Notes, as the same may
hereafter be amended, amended and restated, supplemented or otherwise modified
in accordance with the terms thereof and hereof and in effect.

          1997 Senior Subordinated Notes means the 9 1/4% Senior Subordinated Notes
due March 15, 2007 of the Company issued under the 1997 Senior Subordinated
Indenture.

          Non-Wholly Owned Restricted Subsidiary means any Restricted Subsidiary
other than a Wholly Owned Restricted Subsidiary.

          Notice
of Borrowing means a notice substantially in the form of
Exhibit G-1 or such other form as may be acceptable to the Administrative Agent.

          Notice of Conversion/Continuation means a notice substantially in the form
of Exhibit G-2 or such other form as may be acceptable to the Administrative
Agent.

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          Obligations means all obligations of the Borrowers or any other Obligor
under this Agreement and any other Loan Document.

          Obligor means each Borrower, Hollinger International and each other Person
(other than the Administrative Agent, any Lender or the Issuing Bank) from time
to time obligated under any Loan Document.

          Occupational Safety and Health Law means the Occupational Safety and
Health Act of 1970 and any other federal, state, local or foreign statute, law,
ordinance, code, rule, regulation, order or decree regulating, relating to or
imposing liability or standards of conduct concerning employee health and/or
safety.

          Operating Cash Flow means, for any period, an amount equal to the
Consolidated Net Income (Loss) of the Financial Group for such period, plus, to
the extent deducted in calculating such Consolidated Net Income, (a) Interest
Expense and other financing costs and expenses for such period, (b)
depreciation and amortization (including, without limitation, amortized
telemarketing center costs) for such period, (c) all taxes, whether or not
deferred, in each case, expensed in such period, and (d) other non-cash
expenses (other than any non-cash expense to the extent that it represents an
accrual of or reserve for cash expenses in any future period or amortization of
a pre-paid cash expense that was paid in a prior period) and all extraordinary
and non-recurring expenses as determined in accordance with GAAP for such
period.

          For purposes of calculating Operating Cash Flow for the four Fiscal Quarters
most recently completed prior to any date on which an action is taken that
requires a calculation of the Senior Secured Leverage Ratio, the Total Leverage
Ratio and/or the Net Leverage Ratio, (a) any Person that is a Restricted
Subsidiary on such date (or would become a Restricted Subsidiary in connection
with the transaction that requires the determination of such ratio) shall be
deemed to have been a Restricted Subsidiary at all times during such period,
(b) any Person that is not a Restricted Subsidiary on such date (or would cease
to be a Restricted Subsidiary in connection with the transaction that requires
the determination of such ratio) shall be deemed not to have been a Restricted
Subsidiary at any time during such period, (c) if any Borrower or any
Restricted Subsidiary shall have in any manner acquired or disposed of any
operating business during or subsequent to such period, such calculation shall
be made on a pro forma basis on the assumption that such acquisition or
disposition has been completed on the first day of such period and (d) in the
case of a Restricted Subsidiary that is not a Wholly Owned Restricted
Subsidiary, the determination of the percentage of the Operating Cash Flow of
such Restricted Subsidiary that is to be included in the calculation of the
Senior Secured Leverage Ratio, the Total Leverage Ratio and the Net Leverage
Ratio shall be made on a pro forma basis on the assumption that the percentage
of the Company’s common equity interest in such Restricted Subsidiary on the
first day of such period was equivalent to its common equity interest on the
date of the determination (it being understood, in the case of foregoing clause
(c), that if such pro forma calculations have been made in accordance with
Regulation S-X under the Exchange Act, such method of calculation (but not
necessarily the adjustments) shall be presumed to be acceptable). For the
purposes of this definition, the determination of the percentage of the
Operating Cash Flow of a Restricted Subsidiary that is not a Wholly Owned
Restricted Subsidiary that is to be included in the calculation of Operating
Cash Flow shall be made on a quarter by quarter basis based on the percentage
of the Company’s common equity interest in such Restricted Subsidiary on the
last day of each quarter during the relevant period (it being understood that,
if such pro forma calculations for a quarter shall have been made in accordance
with Regulation S-X under the Exchange Act, such method of calculation (but not
necessarily the adjustments) shall be presumed to be acceptable).

          Option Tax Indemnity Agreement means the letter agreement dated May 31,
1996 between FDTH and West Ferry relating to tax indemnification in connection
with the options proposals made pursuant to the Scheme.

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          Organic Document means, relative to any Person, its certificate of
incorporation, its by-laws, its memorandum and articles of association,
partnership agreement, operating agreement, share designations or similar
organizational documents and all shareholder agreements, voting trusts and
similar arrangements applicable to any of its authorized shares of Capital
Stock.

          Original
Administrative Agent — see the Recitals.

          Original Issuing Bank — see the Recitals.

          Original Lenders — see the Recitals.

          Original Letters of Credit mean letters of credit issued by the Original
Issuing Bank which are cash collateralized and are not part of the Facilities.

          Outside Payments — see the Section 10.9(b).

          Palestine Post means The Palestine Post Limited, an Israeli corporation.

          Paper
Purchase & Management Limited means Paper Purchase &
Management Limited, a limited liability company incorporated under the laws of England and
Wales.

          Participant — see Section 15.10.

          Participating Member State means any member state of the European
Community that adopts or has adopted the Euro as it lawful currency in
accordance with legislation of the Community relating to Economic and Monetary
Union.

          Payment Date — see Section 6.2.4(d).

          PBGC means the Pension Benefit Guaranty Corporation and any entity
succeeding to any or all of its functions under ERISA.

          Pension Plan means (a) a “pension plan”, as such term is defined in
Section 3(2) of ERISA, which is subject to title IV of ERISA (other than a
Multiemployer Plan), and to which the Company, any Subsidiary, or any ERISA
Affiliate may have any liability, including any liability by reason of having
been a substantial employer within the meaning of Section 4063 of ERISA at any
time during the preceding five years or by reason of being deemed to be a
contributing sponsor under Section 4069 of ERISA and (b) a “pension plan”, as
such term is defined in the Pension Benefits Act (Ontario) or under other
applicable pension laws, and to which the Company or any Subsidiary or any
trade or business of any of them may have any actual, contingent or potential
liability at any time during the preceding five years.

          Permitted Payments — see Section 10.9(c).

          Person means any natural person, corporation, partnership, limited
liability company, trust, association, governmental authority or unit, or any
other entity, whether acting in an individual, fiduciary or other capacity.

          Pledge Agreements means the Hollinger International Pledge Agreement, the
Company Pledge Agreement, and each U.S. Pledge Agreement.

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          Preferred Stock means, with respect to any Person, any Capital Stock of
any class or classes (however designated) which is preferred as to the payment
of dividends or distributions, or as to the distribution of assets upon any
voluntary or involuntary liquidation or dissolution of such Person, over the
Capital Stock of any other class in such Person.

          Prepayment Premium — see Section 6.2.7(b).

          Pricing Grid means the Pricing Grid set forth on Schedule 1.2.

          Printing Joint Ventures means each of West Ferry (unless West Ferry has
become a Wholly Owned Restricted Subsidiary), Trafford Park and Paper Purchase
& Management Limited.

          Purchase Money Lien — see Section 10.8(d).

          Qualified Hedge Counterparty means any Person which, at the time the
applicable Hedging Agreement was entered into, was Wachovia Bank, a Lender or
an Affiliate of a Lender.

          Recipient Taxes — see Section 7.6(a).

          Redeemable Capital Stock means any Capital Stock that, either by its
terms, by the terms of any security into which it is convertible or
exchangeable or otherwise, is, or upon the happening of an event or passage of
time would be, required to be redeemed prior to the latest Stated Maturity Date
or is redeemable at the option of the holder thereof at any time prior to the
latest Stated Maturity Date, or is convertible into or exchangeable for debt
securities at any time prior to the latest Stated Maturity Date at the option
of the holder thereof; provided, however, that Redeemable Capital Stock shall
not include any Redeemable Capital Stock of the Company or any of its
Restricted Subsidiaries so long as such shares are owned by the Company or a
Restricted Subsidiary or by Hollinger International or one of its Affiliates
(provided such shares are pledged to the Administrative Agent).

          Regulated Materials means any toxic substance, hazardous substance,
hazardous material, hazardous chemical or hazardous waste defined or qualifying
as such in (or for the purposes of) any Environmental Law, or any pollutant or
contaminant, and shall include, but not be limited to, petroleum, including
crude oil or any fraction thereof which is liquid at standard conditions of
temperature or pressure (60 degrees Fahrenheit and 14.7 pounds per square inch
absolute), any radioactive material, including, but not limited to, any source,
special nuclear or by-product material as defined at 42 U.S.C.
section 2011 et
seq., as amended from time to time, polychlorinated biphenyls and asbestos in
friable form or condition.

          Related
Fund means, with respect to any Lender that is a fund that invests
in bank loans, any other fund that invests in bank loans and is managed or
advised by the same investment advisor as such Lender or by an Affiliate of
such investment advisor.

          Required Lenders means Lenders having an aggregate Voting Percentage of
more than 50%.

          Required Revolving Lenders means Revolving Lenders holding more than 50%
of the Revolving Commitments or, if such Revolving Commitments have expired or
terminated, more than 50% of the Revolving Loans.

          Restricted Payments — see Section 10.9(a).

          Restricted Subsidiary means each Subsidiary of any Borrower, other than
any Subsidiary designated from time to time by the Board of Directors of the
applicable Borrower as an “Unrestricted

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Subsidiary” in accordance with Section 10.26 of this Agreement or which is
otherwise an “Unrestricted Subsidiary” hereunder.

          Restricted Subsidiary Obligor means any Restricted Subsidiary which is a
Borrower or Guarantor.

          Restricted Subsidiary Investments — see Section 10.9(b)(iv).

          Revolving Commitment Termination Date means the earliest of (a) September
30, 2008, and (b) such other date on which the Revolving Commitments shall
terminate pursuant to Section 12.

          Revolving Commitments means the Tranche A Commitments and the Tranche B
Commitments.

          Revolving Lender means, at any time, any Lender which then has a Revolving
Commitment or is owed a Revolving Loan or has a participation in any Letter of
Credit.

          Revolving Loan means each of the Tranche A Loans and the Tranche B Loans.

          Revolving Percentage means, relative to any Revolving Lender, the
percentage which (a) the amount of such Revolving Lender’s Individual Revolving
Commitment is of (b) the aggregate amount of the Total Revolving Commitments of
all Revolving Lenders. The initial Revolving Percentage for each Revolving
Lender is set forth opposite such Revolving Lender’s name on Schedule 1.1.

          Scheme means the acquisition in August, 1996 by FDTH of the publicly held
shares of Telegraph not owned by FDTH or any of its Affiliates which was
effected by way of a “Scheme of Arrangement” under Section 425 of the Companies
Act of 1985.

          SEC means the Securities and Exchange Commission.

          Secured Obligations means, collectively, (a) the Obligations, and (b) any
obligation of a Borrower under any Hedging Agreement with a Qualified Hedge
Counterparty.

          Security Agreements means the Company Security Agreement and each U.K.
Security Agreement.

          Security Trustee means Wachovia Bank, N.A. in its capacity as security
trustee with respect to Loan Documents granting collateral security by the U.K.
Obligors.

          Senior Secured Funded Debt means Total Funded Debt which constitutes
secured Total Funded Debt (excluding in any event the New High Yield Notes and
excluding in any event any other unsecured Total Funded Debt).

          Senior Secured Leverage Ratio means, as of any time, the ratio of (a)
Senior Secured Funded Debt as of such time to (b) Operating Cash Flow for the
most recently ended Computation Period.

          Sole Lead Arranger means Wachovia Securities.

          Standard & Poor’s means Standard and Poor’s Ratings Services, a division
of The McGraw Hill Companies, Inc. or any successor rating agency.

          State means any state in the United States or the District of Columbia.

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          Stated Amount means, with respect to any Letter of Credit at any date of
determination, the maximum aggregate amount available thereunder at any time
during the then ensuing term of such Letter of Credit under any and all
circumstances, plus the aggregate amount of all unreimbursed payments and
disbursements under such Letter of Credit.

          Stated Maturity Date means (a) in the case of Term A Loans, September 30,
2008, (b) in the case of Term B Loans, September 30, 2009, and (c) in the case
of Incremental Loans, the date set forth in the applicable Supplement.

          STDS means Sun Times Distribution Systems, Inc., a Delaware corporation.

          Sterling and £ mean the lawful currency of the United Kingdom of Great
Britain and Northern Ireland.

          Subordination Agreements means the Subsidiary Subordination Agreement, and
any other subordination agreement which may be executed from time to time by
the Company or any Restricted Subsidiary in favor of the Administrative Agent.

          Subsidiary means any Person, a majority of the Voting Stock, membership
interests or other equity interests (in the case of Persons other than
corporations) of which is at the time owned, directly or indirectly, by the
Company and/or its other Subsidiaries. Unless the context otherwise requires,
each reference to Subsidiaries herein shall be a reference to Subsidiaries of
the Company; provided that none of HCNLP, West Ferry, Trafford Park, Paper
Purchase & Management Limited, The Newspaper Licensing Agency Limited, Brand
Movers Limited, Great West Newspaper Group Ltd., DTY Limited, ECO Log
Environmental Risk Information Service Ltd. and Fundata Canada Inc. shall be
deemed a Subsidiary of the Company for purposes of this Agreement unless and
until such time as the Company directly or indirectly owns 100% of the Voting
Stock of such Person.

          Subsidiary Notes means, collectively, any promissory note issued, now or
in the future, by any Restricted Subsidiary of the Company in favor of the
Company or another Restricted Subsidiary which is a Restricted Subsidiary
Obligor each substantially in form and substance satisfactory to the
Administrative Agent and any extensions, renewals or amendments of any of the
foregoing.

          Subsidiary Security Agreements means, collectively, any security agreement
or other security or collateral instrument or documents in form and substance
approved by the Administrative Agent issued or given by any Restricted
Subsidiary in favor of the Company or another Restricted Subsidiary which is a
Restricted Subsidiary Obligor, as the case may be, to secure Debt of such
Restricted Subsidiary under a Subsidiary Note.

          Subsidiary Subordination Agreement means the subordination agreement dated
as of the Amendment Effective Date among certain Restricted Subsidiaries and
the Administrative Agent, substantially in the form of Exhibit F, as amended,
supplemented or otherwise modified from time to time.

          Supplement — see Section 3.3.

          Synthetic Lease means a lease transaction under which the parties intend
that (a) the lease will be treated as an “operating lease” by the lessee
pursuant to Statement of Financial Accounting Standards No. 13, as amended, and
(b) the lessee will be entitled to various benefits ordinarily available to
owners (as opposed to lessees) of like property. Debt under a Synthetic Lease
shall be an amount equal to the sum of (i) all rental obligations of such
Person as lessee under Synthetic Leases which are attributable to

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principal and (ii) all payment obligations of such Person under Synthetic
Leases assuming such Person exercises the option to purchase the leased
property at the end of the lease term.

          TAHL means Telegraph Australian Holdings Limited, a company incorporated
under the laws of England and Wales and domesticated in the United States.

          Tax Allocation Agreement means a tax allocation agreement substantially in
the form of Exhibit G executed by the Company and its Restricted Subsidiaries
incorporated in the United States, as amended, modified or supplemented from
time to time.

          Tax Indemnity Agreements means, collectively, (a) the DT Holdings Limited
Group Relief Agreement dated June 23, 1992 among DTH, FDTH and Telegraph, (b)
the Deed of Indemnity dated June 23, 1992 entered into by Hollinger Inc., DTH
and FDTH in favor of Telegraph, (c) the Agreement Relating to the Surrender of
Advance Corporation Tax dated June 23, 1992 among DTH, FDTH and Telegraph and
(d) the Option Tax Indemnity Agreement.

          Taxes and Tax, relative to any Person, means taxes, assessments or other
governmental charges, levies, imposts, deductions, charges or withholdings, and
all liabilities with respect thereto imposed upon such Person, its income or
any of its properties, franchises or assets (excluding, in the case of payments
made to a Lender or the Administrative Agent, the following taxes (all of the
following taxes being “Excluded Taxes”): (a) taxes imposed upon or measured by
the overall net income of such Lender or the Administrative Agent (including
franchise taxes imposed in lieu thereof) by the jurisdiction under the laws of
which such Lender or the Administrative Agent, as the case may be, is organized
or any political subdivision thereof or by the jurisdiction in which such
Lender’s or the Administrative Agent’s Lending Office or principal office is
located or any political subdivision thereof, or (b) any branch profits taxes
imposed by the United States of America or any similar tax imposed by any other
jurisdiction described in clause (a) above).

          Telegraph — see the Preamble.

          Term A Lender means, at any time, any Lender which has a commitment to
make a Term A Loan under Section 2.1.3 or which is owed a Term A Loan; the
initial Term A Lenders are set forth on Schedule 1.1 as those Lenders with an
amount set forth across from their name under the heading “Term A Loan”.

          Term A Loans means the Term A Loans made pursuant to Section 2.1.3.

          Term A Percentage means, relative to any Term A Lender at any time, the
percentage which such Term A Lender’s then outstanding, aggregate principal
amount of all Term A Loans is of the aggregate principal amount of Term A Loans
of all Term A Lenders. The initial Term A Percentage for each Term A Lender is
set forth opposite such Term A Lender’s name on Schedule 1.1.

          Term A Reduction Percentage means the percentage which (a) the sum of the
aggregate outstanding principal amount of Term A Loans is of (b) the sum of (i)
the aggregate outstanding principal amount of all Term A Loans plus (ii) the
aggregate outstanding principal amount of all Term B Loans plus (iii) the
aggregate outstanding principal amount of all Incremental Loans.

          Term B Lender means, at any time, any Lender which has a commitment to
make a Term B Loan under Section 2.1.4 or which is owed a Term B Loan; the
initial Term B Lenders are set forth on Schedule 1.1 as those Lenders with an
amount set forth across from their name under the heading “Term B Loan”.

          Term B Loan Offer — see Section 6.2.4(d).

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          Term B Loans means the Term B Loans made pursuant to Section 2.1.4.

          Term B Percentage means, relative to any Term B Lender at any time, the
percentage which such Term B Lender’s then outstanding, aggregate principal
amount of all Term B Loans is of the aggregate principal amount of Term B Loans
of all Term B Lenders. The initial Term B Percentage for each Term B Lender is
set forth opposite such Term B Lender’s name on Schedule 1.1.

          Term B Reduction Percentage means the percentage which (a) the sum of the
aggregate outstanding principal amount of Term B Loans is of (b) the sum of (i)
the aggregate outstanding principal amount of all Term A Loans plus (ii) the
aggregate outstanding principal amount of all Term B Loans plus (iii) the
aggregate outstanding principal amount of all Incremental Loans.

          Term Lenders means, collectively, the Term A Lenders and the Term B
Lenders.

          Term Loan Reduction Amount means (a) with respect to Term A Loans, an
amount equal to the Term A Reduction Percentage of the Applicable Proceeds
Amount or Excess Cash Flow Payment, as the case may be, (b) with respect to
Term B Loans, an amount equal to the Term B Reduction Percentage of the
Applicable Proceeds Amount or Excess Cash Flow Payment, as the case may be and
(c) with respect to Incremental Loans, the Incremental Reduction Percentage of
the Applicable Proceeds Amount or Excess Cash Flow Payment, as the case may be.

          Term Loans means, collectively, the Term A Loans and the Term B Loans.

          Toronto Dominion means Toronto Dominion (Texas), Inc.

          Total Funded Debt means Debt of the Financial Group pursuant to clauses
(a), (b), (d) (to the extent provided for in the last sentence of this
definition), (e), (f), (g), (h), (i), (j), and (k) (to the extent it
constitutes Debt described in the foregoing clauses) of the definition of Debt
including Capital Leases, Synthetic Leases, guarantees, and the outstanding
redeemable preference shares of any Restricted Subsidiary held by Persons other
than the Company or the Restricted Subsidiaries minus (to the extent otherwise
included in the aggregate Debt of the Financial Group) (x) Debt of the Company
to Restricted Subsidiaries and Debt of Restricted Subsidiaries to the Company
or to other Restricted Subsidiaries and (y) Original Letters of Credit. In the
event the amount of net obligations of the Company and its Restricted
Subsidiaries, if any, under Hedging Agreements (excluding Hedging Agreements
with respect to the Loans) (determined on a mark-to-market basis) exceeds
$10,000,000, the amount of such entire net obligations shall be included as
Total Funded Debt.

          Total Leverage Ratio means, as of any time, the ratio of (a) Total Funded
Debt as of such time to (b) Operating Cash Flow for the most recently ended
Computation Period.

          Total Outstanding Revolving Amount means, on any date, the sum of (a) the
Dollar Equivalent of the aggregate outstanding principal amount of all
Revolving Loans plus (b) the Dollar Equivalent of the Stated Amount of all
outstanding Letters of Credits as of such date.

          Total Return Equity Swap means the OTC Single Forward Share Purchase
Transaction dated October 1, 1998, the Equity Forward Purchase Transaction
dated September 30, 1998, and any other forward share purchase arrangements
entered into by Hollinger International, together with any amendments,
modifications, or extensions thereof.

          Total Revolving Commitments means $45,000,000, as reduced in accordance
with Section 6 hereof.

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          Traded Newspaper Assets — see definition of “Asset Swap.”

          Traded-For Newspaper Assets — see definition of “Asset Swap.”

          Trafford Park means Trafford Park Printers Limited, a limited liability
company incorporated under the laws of England and Wales.

          Tranche A Commitment means as to any Revolving Lender the commitment of
such Revolving Lender to make Tranche A Loans to and to issue or participate in
Tranche A Letters of Credit for the account of the Company pursuant to Section
2.1.1. The initial amount of the Tranche A Commitment of each Revolving Lender
is set forth on Schedule 1.1.

          Tranche A Credit Extension means making any Tranche A Loan or issuing or
extending the expiry date of any Tranche A Letter of Credit.

          Tranche A Letters of Credit — see Section 2.1.1.

          Tranche A Loans — see Section 2.1.1.

          Tranche A Outstanding Amount means, on any date, the sum of (a) the Dollar
Equivalent of the aggregate outstanding principal amount of all Tranche A Loans
plus (b) the Dollar Equivalent of the Stated Amount of all outstanding Tranche
A Letters of Credit as of such date.

          Tranche B Commitment means as to any Revolving Lender the commitment of
such Revolving Lender to make Tranche B Loans to and to issue or participate in
Tranche B Letters of Credit for the account of Telegraph pursuant to Section
2.1.2. The initial amount of the Tranche B Commitment of each Revolving Lender
is set forth on Schedule 1.1.

          Tranche
B Credit Extension  means making any Tranche B Loan or issuing or
extending the expiry date of any Tranche B Letter of Credit.

          Tranche B Letters of Credit — see Section 2.1.2.

          Tranche B Loans — see Section 2.1.2.

          Tranche B Outstanding Amount means, on any date, the sum of (a) the Dollar
Equivalent of the aggregate outstanding principal amount of all Tranche B Loans
plus (b) the Dollar Equivalent of the Stated Amount of all outstanding Tranche
B Letters of Credit as of such date.

          Treaty Lender — see Section 7.7.

          Trilon Financing means the loan agreement and related documentation dated
September 30, 2002 between Hollinger International and Trilon International
Inc., as amended or otherwise modified prior to the Amendment Effective Date.

          Trustee Proceeds means (a) the portion of the proceeds of Loans made on
the Amendment Effective Date which are deposited by the Administrative Agent
with the applicable Trustees on the Amendment Effective Date pursuant to
Section 11.1.18, and (b) any other funds deposited with such applicable
Trustees, in each case, pending their application as payment of the 1996 Senior
Subordinated Notes and the 1997 Senior Subordinated Notes.

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          U.K. Obligor means any of HUKH, DTH, FDTH, Telegraph and each other U.K.
Subsidiary which is an Obligor, but shall not include TAHL.

          U.K./Non U.S. Exemption Agreement — see Section 7.6.

          U.K. Security Agreement means any debenture substantially in the form of
Exhibit B-2 (with such changes therein as are acceptable to the Administrative
Agent) executed pursuant to this Agreement on the Amendment Effective Date
(including each U.K. Security Agreement referred to in Section 11.1.7) or which
may hereafter be executed from time to time by any Restricted Subsidiary, as
such U.K. Security Agreements may be amended, supplemented or otherwise
modified from time to time.

          U.K. Subsidiary means each Restricted Subsidiary incorporated under the
laws of England and Wales.

          U.K. Subsidiary Guaranty means any guarantee substantially in the form of
Exhibit C-3 (with such changes therein as are acceptable to the Administrative
Agent) executed pursuant to this Agreement on the Amendment Effective Date
(including each U.K. Subsidiary Guaranty dated the Amendment Effective Date
referred to in Section 11.1.5) or which may hereafter be executed from time to
time by any U.K. Subsidiary, as such U.K. Subsidiary Guarantees may be amended,
supplemented, or otherwise modified from time to time.

          U.K./U.S. Exemption Agreement — see Section 7.6.

          Unmatured Event of Default means any event which if it continues uncured
will, with lapse of time or notice or lapse of time and notice, constitute an
Event of Default.

          Unrestricted Subsidiary means any Subsidiary of any Borrower, which is not
a Restricted Subsidiary; provided, however, that a Person may not be designated
as an Unrestricted Subsidiary unless (a) the creditors of such Person have no
direct or indirect recourse (including recourse with respect to the payment of
principal or interest on indebtedness of such Unrestricted Subsidiary) to the
Borrowers or a Restricted Subsidiary and (b) a default by such Person on any of
its indebtedness will not result in, or permit any holder of indebtedness of
the Borrowers or a Restricted Subsidiary to declare, a default on such
indebtedness of the Borrowers or a Restricted Subsidiary or cause the payment
thereof to be accelerated or payable prior to its stated maturity. Any
subsidiary of an Unrestricted Subsidiary, and any subsidiary of any Borrower
organized under the laws of Canada or any province or territory thereof, and
each of Hollinger Digital Inc. and each of its Subsidiaries shall be an
Unrestricted Subsidiary.

          U.S. Base Rate means the rate per annum determined by the Administrative
Agent to be the rate of interest announced by Wachovia Bank in Charlotte, North
Carolina as its reference rate for the determination of interest rates for
loans of varying maturities in Dollars to United States residents of varying
degrees of creditworthiness and being quoted at such time by Wachovia Bank in
Charlotte, North Carolina as its “prime rate” from time to time, changing when
and as said rate changes, it being understood that such rate is not necessarily
the lowest rate of interest provided to borrowers by the quoting institution.

          U.S. Exemption Agreement — see Section 7.6.

          U.S. Exemption Representation — see Section 7.6.

          U.S. Pledge Agreement means a pledge agreement substantially in the form
of Exhibit D-3 (with such changes therein as are acceptable to the
Administrative Agent) executed pursuant to this Agreement on the Amendment
Effective Date (including each U.S. Pledge Agreement referred to in Section
11.1.6)

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or which may hereafter be executed from time to time with respect to the
Capital Stock of any U.S. Subsidiary, as such U.S. Pledge Agreements may be
amended, supplemented or otherwise modified from time to time.

          U.S. Subsidiary means any Restricted Subsidiary organized under the laws
of any state in the United States of America or the District of Columbia.

          U.S. Subsidiary Guaranty means the Third Amended and Restated Guaranty
dated as of the Amendment Effective Date executed by the U.S. Subsidiaries and
TAHL in favor of the Lenders and the Administrative Agent substantially in the
form of Exhibit C-2, as amended, supplemented or otherwise modified from time
to time.

          Voting Percentage means, relative to any Lender at any time, the
percentage which:

		
	 	     (a) the sum of (i) such Lender’s aggregate principal amount of Term
A Loans, plus (ii) such Lender’s aggregate principal amount of Term B
Loans, plus (iii) such Lender’s aggregate principal amount of Incremental
Loans, plus (iv) such Lender’s Individual Revolving Commitment or,
following the termination of the Revolving Commitments, its Individual
Outstanding Revolving Amount

is of

		
	 	     (b) the sum of (i) the aggregate principal amount of all Term A
Loans, plus (ii) the aggregate principal amount of all Term B Loans, plus
(iii) the aggregate principal amount of Incremental Loans, plus (iv) the
Total Revolving Commitments or, following the termination of the
Revolving Commitments, the Total Outstanding Revolving Amount.

     Each Lender’s initial Voting Percentage is set forth opposite such Lender’s
name on Schedule 1.1.

          Voting Stock means stock of the class or classes pursuant to which the
holders thereof have the general voting power under ordinary circumstances to
elect at least a majority of the board of directors, managers or trustees
(irrespective of whether or not at the time stock of any other class or classes
shall have or might have voting power by reason of the happening of any
contingency).

          Wachovia Bank — see the Preamble.

          Wachovia Securities — see the Preamble.

          Welfare Plan means a “welfare plan”, as such term is defined in Section
3(1) of ERISA, other than a “multiemployer plan” as such term is defined in
Section 3(37) of ERISA, or any other employee benefit plan or arrangement in
respect of which or in connection with which a Lien may arise pertaining to any
contribution obligation or other obligation thereunder as a matter of statute
or by operation of law, other than a Pension Plan or a “multiemployer plan” as
such term is defined in Section 3(37) of ERISA, to which the Company or any
Subsidiary or any trade or business of any of them may have any actual,
contingent or potential liability at any time during the preceding five years.

          West Ferry means West Ferry Printers Limited, a limited liability company
incorporated under the laws of England and Wales.

          Wholly Owned Restricted Subsidiary means a Restricted Subsidiary, all the
outstanding Capital Stock (other than directors’ qualifying shares) of which
are owned by the Company or another Wholly Owned Restricted Subsidiary.

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          Withdrawal Liability has the meaning specified in Part I of Subtitle E of
Title IV of ERISA.

          SECTION
2  Commitments of the Lenders; Types of Loans; Letters
of Credit; Borrowing Loan Accounts.

          2.1 Commitments.

          2.1.1 Tranche A Commitment. On and subject to the terms and conditions of
this Agreement, (a) each of the Revolving Lenders, severally and for itself
alone, agrees to make loans to the Company on a revolving basis (the “Tranche A
Loans”) from time to time before the Revolving Commitment Termination Date in
such Revolving Lender’s Revolving Percentage of such aggregate amounts as the
Company may from time to time request from all Revolving Lenders under the
aggregate Tranche A Commitments, provided that (i) the aggregate principal
amount of all Tranche A Loans which all Revolving Lenders shall have
outstanding at any one time shall not exceed an amount equal to (A) the
aggregate amount of the Tranche A Commitments minus (B) the Stated Amount of
all outstanding Tranche A Letters of Credit and (ii) the making of such Loans
shall be subject to the limitation contained in Section 2.2(c); and (b) the
Issuing Bank agrees to issue Letters of Credit at the request of and for the
account of the Company (the “Tranche A Letters of Credit”), from time to time
before the Revolving Commitment Termination Date and, as more fully set forth
in Section 2.7, each Revolving Lender agrees to purchase a participation in
each such Tranche A Letter of Credit, provided that (i) the aggregate Stated
Amount of all Tranche A Letters of Credit shall not at any time exceed the
lesser of (A) the Dollar Equivalent of $25,000,000 or (B) an amount equal to
(x) the aggregate amount of the Tranche A Commitments minus (y) the aggregate
principal amount of all outstanding Tranche A Loans and (ii) the issuance of
such Letters of Credit shall be subject to the limitations contained in Section
2.2(e).

          2.1.2 Tranche B Commitment. On and subject to the terms and conditions of
this Agreement, (a) each of the Revolving Lenders, severally and for itself
alone, agrees to make loans to Telegraph on a revolving basis (the “Tranche B
Loans”) from time to time before the Revolving Commitment Termination Date in
such Revolving Lender’s Revolving Percentage of such aggregate amounts as
Telegraph may from time to time request from all Revolving Lenders under the
aggregate Tranche B Commitments, provided that (i) the aggregate principal
amount of all Tranche B Loans which all Revolving Lenders shall have
outstanding at any one time shall not exceed an amount equal to (A) the
aggregate amount of the Tranche B Commitments minus (B) the Stated Amount of
all outstanding Tranche B Letters of Credit and (ii) the making of such Loans
shall be subject to the limitations contained in Section 2.2(c); and (b) the
Issuing Bank agrees to issue Letters of Credit at the request and for the
account of Telegraph (the “Tranche B Letters of Credit”) from time to time
before the Revolving Commitment Termination Date and, as more fully set forth
in Section 2.7, each Revolving Lender agrees to purchase a participation in
each such Tranche B Letter of Credit, provided that (i) the aggregate Stated
Amount of all Tranche B Letters of Credit shall not at any time exceed the
lesser of (A) the Dollar Equivalent of $25,000,000 or (B) an amount equal to
(x) the aggregate amount of all Tranche B Commitments minus (y) the aggregate
principal amount of all outstanding Tranche B Loans and (ii) the issuance of
such Letters of Credit shall be subject to the limitations contained in Section
2.2(e).

          2.1.3 Term A Loan Commitment. On and subject to the terms and conditions
of this Agreement, each of the Term A Lenders, severally and for itself alone,
agrees to make, on the Amendment Effective Date, a loan to FDTH equal to its
Term A Percentage of the aggregate principal amount of Term A Loans requested
by FDTH from all Term A Lenders on such date; provided that the aggregate Term
A Loans requested shall not exceed $45,000,000.

          2.1.4 Term B Loan Commitment. On and subject to the terms and conditions
of this Agreement, each of the Term B Lenders, severally and for itself alone,
agrees to make, on the Amendment Effective Date, a loan to FDTH equal to its
Term B Percentage of the aggregate principal

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amount of Term B Loans requested
by FDTH from all Term B Lenders on such date; provided that the aggregate Term
B Loans requested shall not exceed $220,000,000.

          2.2  Lenders Not Required To Make Credit Extensions. The Borrowers may not
request, and no Revolving Lender will be required to make, any Credit Extension
if, immediately after giving effect to such Credit Extension, and the
application of the proceeds thereof to the extent applied to the repayment of
Credit Extensions,

		
	 	     (a) the Tranche A Outstanding Amount would exceed the aggregate
amount of the Tranche A Commitments,
	 
	 	     (b) the Tranche B Outstanding Amount would exceed the aggregate
amount of the Tranche B Commitments,
	 
	 	     (c) the Total Outstanding Revolving Amount would exceed the Total
Revolving Commitments,
	 
	 	     (d) such Lender’s Individual Outstanding Revolving Amount would
exceed such Lender’s Individual Revolving Commitment, or
	 
	 	     (e) the aggregate Stated Amount of all Letters of Credit would
exceed $25,000,000.

          2.3  Various Types of Loans.  (a)  Revolving Loans may be borrowed in
Dollars, or Alternate Currencies. Each Revolving Loan denominated in Dollars
shall be either a Floating Rate Loan or a Eurocurrency Loan (each a “type” of
Loan), as the Company or Telegraph, as the case may be, shall specify in the
related notice of borrowing or conversion pursuant to Section 2.4 or 2.5. Each
Revolving Loan denominated in an Alternate Currency shall be a Eurocurrency
Loan.

          (b)  Term A Loans and Term B Loans may be borrowed in Dollars. Each Term A
Loan and Term B Loan may be divided into types which are either a Floating Rate
Loan or a Eurocurrency Loan, as FDTH shall specify in the related notice of
borrowing or conversion pursuant to Section 2.4 or 2.5.

          (c)  Incremental Loans may be borrowed in Dollars or Sterling as indicated
in the applicable Supplement. Each Incremental Loan denominated in Dollars
shall be either a Floating Rate Loan or a Eurocurrency Loan (each a “type” of
Loan), as the applicable Borrower shall specify in the related notice of
borrowing or conversion pursuant to Section 2.4 or 2.5. Each Incremental Loan
denominated in Sterling shall be a Eurocurrency Loan.

          (d)  Floating Rate Loans and Eurocurrency Loans may be outstanding at the
same time, provided that (i) not more than 12 different Interest Periods in the
aggregate shall be in effect at any one time under the Facilities, (ii) the
aggregate principal amount of each Eurocurrency Loan denominated in Dollars
shall at the time of each borrowing and conversion be at least $1,000,000 and
an integral multiple of $500,000, (iii) the aggregate principal amount of each
Eurocurrency Loan denominated in an Alternate Currency shall at all times be at
least the Dollar Equivalent of $1,000,000 and an integral multiple of
$500,000 and (iv) the aggregate principal amount of each Floating Rate
Loan shall at the time of each borrowing be at least the lesser of (A)
$1,000,000 and an integral multiple of $500,000 and (B) the remaining amount of
the applicable Facility. All borrowings, conversions and repayments of Loans,
subject to Section 4, shall be effected so that, within each Facility, each
Revolving Lender in the applicable Facility will have a pro rata share
(according to its Revolving Percentage) of all types and Groups of Revolving
Loans, each Term A Lender will have a pro rata share (according to its Term A
Percentage) of all types and Groups of Term A Loans, each Term B Lender will
have a pro rata share (according to its Term B Percentage) of all types and
Groups of Term B Loans and each Incremental

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Lender will have a pro rata share
(according to its Incremental Percentage) of all types and Groups of the
applicable tranche of Incremental Loans.

          2.4  Borrowing Procedures. A Borrower shall give telephonic notice
(promptly followed by an executed Notice of Borrowing) to the Administrative
Agent of its proposed Loan not later than (a) in the case of a Floating Rate
Loan, 12:00 p.m. (New York City time) at least one Business Day prior to the
proposed date of such borrowing, and (b) in the case of a Eurocurrency Loan,
12:00 p.m. (New York City time) at least three Business Days prior to the
proposed date of such borrowing. Eurocurrency Loans having the same Interest
Period are sometimes called a “Group.” Each such notice shall be effective
upon receipt by the Administrative Agent, shall be irrevocable, and shall
specify the date, amount and type of borrowing and, in the case of a
Eurocurrency Loan, the applicable currency and initial Interest Period
therefor; provided, however, that anything in this Section 2.4 to the contrary
notwithstanding, any Loans advanced on the Amendment Effective Date shall be
advanced as Floating Rate Loans. Promptly upon receipt of such notice, the
Administrative Agent shall advise each Lender thereof. Not later than 12:00
p.m. (New York City time) on the date of a proposed borrowing, each Lender
shall provide the Administrative Agent (by fed wire) at the Administrative
Agent’s designated Lending Office with immediately available funds in the
applicable currency covering such Lender’s applicable percentage of such
borrowing and, subject to the satisfaction of the conditions precedent set
forth in Section 11 with respect to such borrowing, the Administrative Agent
shall pay over the requested amount to the applicable Borrower on the requested
borrowing date. Each borrowing shall be on a Business Day. Each borrowing
denominated in Dollars shall be in an aggregate amount of at least $1,000,000
and an integral multiple of $500,000 and the aggregate principal amount of each
Group of Eurocurrency Loans in an Alternate Currency shall at all times be the
Dollar Equivalent of at least $1,000,000 and an integral multiple of $500,000.
To the extent funds are received from the Lenders, the Administrative Agent
shall make such funds available to the applicable Borrower (i) with respect to
Floating Rate Loans, at the Administrative Agent’s office in New York and (ii)
with respect to Eurocurrency Loans at the Administrative Agent’s Lending Office
for such currency, in each case by wire transfer to the account the applicable
Borrower shall have specified in its borrowing request in compliance with this
Agreement.

          2.5  Procedures for Conversion of Type of Loan. Subject to the provisions
of Section 2.2, any Borrower may convert all or any part of its outstanding
Tranche A Loans, Tranche B Loans, Term A Loans, Term B Loans or Incremental
Loans into Loans of a different type by giving telephonic notice (promptly
followed by an executed Notice of Continuation/Conversion) to the
Administrative Agent not later than 10:00 a.m. (New York City time) (a) in the
case of conversion of a Floating Rate Loan into a Eurocurrency Loan in the same
currency, at least three Business Days prior to the proposed date of
conversion, and (b) in the case of conversion of a Eurocurrency Loan in one
currency to a Floating Rate Loan of the same currency on any date other than
the last day of the applicable Interest Period, at least two Business Days
prior to the proposed date of conversion. Each such notice shall be effective
upon receipt by the Administrative Agent, shall be irrevocable, and shall
specify the date and amount of such conversion, the Loan to be so converted,
the type of Loan to be converted into and, in the case of a conversion into a
Eurocurrency Loan, the initial
Interest Period therefor. Promptly upon receipt of such notice, the
Administrative Agent shall advise each Lender thereof. Subject to Sections 2.11 and 2.12, such Loan shall be so converted on the requested date of
conversion. Each conversion shall be on a Business Day. Notwithstanding the
foregoing, no Borrower shall be entitled to convert (a) Loans denominated in
one currency into Loans in another currency, (b) Eurocurrency Loans denominated
in an Alternate Currency into a Floating Rate Loan, (c) Loans under one
Facility into Loans under another Facility or (d) during the continuance of any
Event of Default, convert Floating Rate Loans into Eurocurrency Loans.

          2.6  Letter of Credit Procedures. The Company or Telegraph, as the case
may be, shall give notice to the Issuing Bank of the proposed issuance of each
Letter of Credit on a Business Day which is at least three Business Days (or
such lesser period as to which the Issuing Bank may agree) prior to the

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proposed date of issuance of such Letter of Credit. Each such notice shall be
accompanied by a Letter of Credit Application, duly executed by the Company or
Telegraph, as the case may be (and if a Restricted Subsidiary is to be a
co-applicant, such Restricted Subsidiary), and in all respects satisfactory to
the Issuing Bank, together with such other documentation as the Issuing Bank
may reasonably request in support thereof, it being understood that each Letter
of Credit Application shall specify, among other things, the date on which the
proposed Letter of Credit is to be issued, the amount of the Letter of Credit,
the expiration date of such Letter of Credit (which shall not be later than the
earlier of (x) one year from the date of issuance and (y) five Business Days
prior to the Revolving Commitment Termination Date), the currency in which such
Letter of Credit is to be issued and whether such Letter of Credit is to be
transferable in whole or in part. Subject to the satisfaction of the
conditions precedent set forth in Section 11 with respect to the issuance of
such Letter of Credit, the Issuing Bank shall issue such Letter of Credit on
the requested issuance date. The Company shall not be entitled to request the
issuance of a Letter of Credit for the account of any Unrestricted Subsidiary,
any U.K. Obligor or any Restricted Subsidiary which is not a Restricted
Subsidiary Obligor and shall only be entitled to request Letters of Credit
denominated in Dollars. Telegraph shall not be entitled to request the
issuance of a Letter of Credit for the account of any Person other than itself
or a U.K. Obligor and shall only be entitled to request Letters of Credit
denominated in Sterling.

          2.7 Participations in Letters of Credit. Concurrently with the
issuance of each Letter of Credit, the Issuing Bank shall be deemed to have
sold and transferred to each other Revolving Lender, and each other Revolving
Lender shall be deemed irrevocably and unconditionally to have purchased and
received from the Issuing Bank, without recourse or warranty, an undivided
interest and participation, to the extent of such other Revolving Lender’s
Revolving Percentage, in such Letter of Credit and the applicable Borrower’s
reimbursement obligations with respect thereto. For the purposes of this
Agreement, the unparticipated portion of each Letter of Credit shall be deemed
to be the Issuing Bank’s “participation” therein. The Issuing Bank hereby
agrees, upon request of any Revolving Lender, to deliver to such Revolving
Lender a list of all outstanding Letters of Credit, together with such
information related thereto as such other Lender may reasonably request.

          2.8 Reimbursement Obligations. Each Borrower hereby unconditionally and
irrevocably agrees to reimburse the Issuing Bank for each payment or
disbursement made by the Issuing Bank under any Letter of Credit issued at its
request whether or not for its account honoring any demand for payment made by
the beneficiary thereunder, in each case on the date that such payment or
disbursement is made. Any amount not reimbursed on the date of such payment or
disbursement shall bear interest from and including the date of
such payment or disbursement to but not including the date that the
Issuing Bank is reimbursed by the applicable Borrower therefor, payable on
demand, at a rate per annum equal to (x) in the case of Letters of Credit
denominated in Dollars, the sum of the Alternate Base Rate plus the Applicable
Margin from time to time in effect (plus, at any time an Event of Default
exists, 2%), and (y) in the case of Letters of Credit denominated in Sterling,
the higher of (1) the sum of the Eurocurrency Rate (Reserve Adjusted) plus the
Applicable Margin from time to time in effect (plus, at any time an Event of
Default exists, 2%) and (2) the sum of the Alternate Base Rate plus the
Applicable Margin from time to time in effect (plus, at any time an Event of
Default exists, 2%). The Issuing Bank shall notify the applicable Borrower and
the Administrative Agent whenever any demand for payment is made under any
Letter of Credit by the beneficiary thereunder; provided,
however, that the
failure of the Issuing Bank to so notify the applicable Borrower or the
Administrative Agent shall not affect the rights of the Issuing Bank or the
Revolving Lenders in any manner whatsoever.

          2.9 Limitation on the Issuing Bank’s Obligations. In determining whether
to pay under any Letter of Credit, the Issuing Bank shall have no obligation to
the Borrowers or any Revolving Lender other than to confirm that any documents
required to be delivered under such Letter of Credit appear to have been
delivered and appear to comply on their face with the requirements of such
Letter of Credit. Any action taken or omitted to be taken by the Issuing Bank
under or in connection with any Letter of

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Credit, if taken or omitted in the
absence of gross negligence and willful misconduct, shall not impose upon the
Issuing Bank any liability to the Borrowers or any Revolving Lender and shall
not reduce or impair any Borrower’s reimbursement obligations set forth in
Section 2.8 or the obligations of the Lenders pursuant to Section 2.10.

          2.10 Funding by Lenders to the Issuing Bank. If the Issuing Bank makes
any payment or disbursement under any Letter of Credit and the applicable
Borrower has not reimbursed the Issuing Bank in full for such payment or
disbursement by 10:00 a.m. (New York City time) on the date of such payment or
disbursement or if any reimbursement received by the Issuing Bank from the
applicable Borrower is or must be returned or rescinded upon or during any
bankruptcy, insolvency or reorganization of such Borrower or otherwise, each
Revolving Lender shall be obligated to pay to the Issuing Bank, in full or
partial payment of the purchase price of its participation in such Letter of
Credit, its pro rata share (according to its Revolving Percentage) of such
payment or disbursement (but no such payment shall diminish the obligations of
any Borrower under Section 2.8), and the Administrative Agent shall promptly
notify each Revolving Lender thereof. Each Revolving Lender irrevocably and
unconditionally agrees, severally and for itself alone, to so pay to the
Administrative Agent in immediately available funds for the Issuing Bank’s
account the amount of such Revolving Lender’s Revolving Percentage of such
payment or disbursement. If and to the extent any Revolving Lender shall not
have made such amount available to the Administrative Agent by 2:00 p.m. (New
York City time) on the Business Day on which such Lender receives notice from
the Administrative Agent of such payment or disbursement (it being understood
that any such notice received after noon, New York City time, on any Business
Day shall be deemed to have been received on the next following Business Day),
such Revolving Lender agrees to pay interest on such amount to the
Administrative Agent for the Issuing Bank’s account forthwith on demand for
each day from and including the date such amount was to have been delivered to
the Administrative Agent to but excluding the date such amount is paid, at a
rate per annum equal to (a) for the first three days after demand, the Federal
Funds Rate from time to time in effect and (b) thereafter, the Alternate Base
Rate from time to time in effect. Any Revolving Lender’s failure to make
available to the Administrative Agent its Revolving Percentage of any such
payment or disbursement shall not relieve any other Revolving Lender of its
obligation hereunder to make available to the Administrative Agent such other
Revolving Lender’s Revolving Percentage of such payment, but no Revolving
Lender shall be responsible for the failure of any other Revolving Lender to make available to the Administrative Agent such other
Revolving Lender’s Revolving Percentage of any such payment or disbursement.

          2.11 Warranty. Each notice of borrowing and/or of conversion pursuant to
Section 2.4 or 2.5 and the delivery of each Letter of Credit Application
pursuant to Section 2.6 shall automatically constitute a warranty by the
Borrowers to the Administrative Agent and each Lender to the effect that on the
date of such requested borrowing or conversion or the issuance of the requested
Letter of Credit, as the case may be, (a) the warranties contained in Section 9
(excluding Sections 9.4, 9.6, 9.8 and 9.15 through 9.17) of this Agreement
shall be true and correct as of such requested date as though made on the date
thereof and (b) no Event of Default or Unmatured Event of Default shall have
then occurred and be continuing or would reasonably be expected to result
therefrom.

          2.12 Conditions. Notwithstanding any other provision of this Agreement,
(a) no Lender shall be obligated to make any Loan, (b) no Lender shall be
obligated to convert into or permit the continuation at the end of the
applicable Interest Period of any Eurocurrency Loan, and (c) the Issuing Bank
shall not be obligated to issue any Letter of Credit if, in any such case, an
Event of Default or Unmatured Event of Default exists or would result
therefrom.

          2.13 Determination of Dollar Equivalents. The Administrative Agent will
determine the Dollar Equivalent with respect to any Credit Extension
denominated in an Alternate Currency (a) on the date of any requested Credit
Extension or date of any requested continuation of any Credit Extension
denominated in an Alternate Currency, (b) as of the last Business Day of each
month, and (c) during the

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occurrence and continuation of an Event of Default,
such other dates as may be requested by the Required Lenders (but in no event
more frequently than once a week) (each such date being a “Determination
Date”).

          2.14 Commitments Several. The failure of any Lender to make a requested
Loan on any date shall not relieve any other Lender of its obligation to make a
Loan on such date, but no Lender shall be responsible for the failure of any
other Lender to make any Loan to be made by such other Lender.

          2.15 Loan Accounts. Each Lender shall record in its records the date and
amount of each Loan made by such Lender, each repayment or conversion thereof
and, in the case of each Eurocurrency Loan, the dates on which each Interest
Period for such Loan shall begin and end. The aggregate unpaid principal
amount so recorded shall be rebuttable presumptive evidence of the principal
amount owing and unpaid on such Lender’s Loans. The failure to so record any
such amount or information or any error in so recording any such amount or
information shall not, however, limit or otherwise affect the obligations of
the Borrowers hereunder to repay when due the principal amount of the Loans
together with all interest accruing thereon.

          2.16 Requesting Promissory Notes. Each Lender may, upon written request
to the Administrative Agent and the applicable Borrower, cause to have prepared
by the Administrative Agent and executed by the applicable Borrower,
and delivered to such Lender, promissory notes evidencing the Obligations
of such Borrower to such Lender.

          SECTION 3 Incremental Facility.

          3.1 Incremental Facility. The Company shall have the right, from time to
time, to request additional term loans (each such loan an “Incremental Loan”)
pursuant to an incremental facility (the “Incremental Facility”), provided that
at the time any tranche of Incremental Loans is issued pursuant to the
Incremental Facility, (a) no Unmatured Event of Default or Event of Default
shall have occurred and be continuing or result from the issuance of such
Incremental Loans, (b) the Company shall have delivered to the Administrative
Agent a Compliance Certificate, completed on a pro forma basis, giving effect
to the Incremental Loans, (c) the aggregate principal amount of all tranches
under the Incremental Facility hereunder shall not exceed $200,000,000, (d)
each tranche must be a term loan which is governed by the terms of this
Agreement and the other Loan Documents with terms and conditions no more
restrictive than those in effect with respect to the then existing Facilities,
(e) the Company or a Restricted Subsidiary Obligor which is a U.K. Subsidiary
or a U.S. Subsidiary must be the borrower (an “Incremental Borrower”)
thereunder, (f) the weighted average life and final maturity of each tranche
shall be at least six months longer than the weighted average life and final
maturity of the Term B Loans, (g) the applicable interest rates may differ from
the then existing Facilities, provided, however, if the Applicable Margin for
any tranche of Incremental Loans is more than 25 basis points higher than the
Applicable Margin for the Term B Loans, the Applicable Margin for the Term B
Loans shall be proportionately adjusted such that the Applicable Margin for any
tranche of Incremental Loans is no more than 25 basis points higher than the
Applicable Margin for the Term B Loans, and (h) any Incremental Loans shall be
issued at a price (including upfront fees and original issue discount, if any)
not lower than 99.50% of par.

          3.2 Request for Incremental Facility. The Company shall provide notice to
the Administrative Agent of its desire for an Incremental Facility, the
proposed Incremental Borrower and amount thereof, and specifying the time
period within which each Lender is requested to respond (which shall in no
event be less than ten Business Days from the date of delivery of such notice
to the Lenders). Each Lender shall have the option (in its sole and complete
discretion) to subscribe for its proportionate share (or, if agreed to by the
Company and the Administrative Agent, more or less than its proportionate
share) of such proposed Incremental Facility according to its then-existing
Voting Percentage. In the

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event that Lenders do not subscribe for the entire
proposed Incremental Facility, one or more Persons meeting the qualifications
of an Eligible Assignee may be added as an Incremental Lender, subject to the
approval of the Company and the Administrative Agent.

          3.3 Documentation of Incremental Facility. The terms of any tranche of
the Incremental Facility shall be set forth in a supplement to this Agreement
(a “Supplement”) in form and substance satisfactory to the Administrative
Agent, executed by the Administrative Agent, the Company, the applicable
Incremental Borrower and the Incremental Lenders with respect to such tranche
of the Incremental Facility. The applicable Incremental Borrower shall execute
and deliver to the Administrative Agent such assumptions, guarantees, security
documents, opinions and other documents as may be reasonably required by the
Administrative Agent. The consent of the Lenders who are not Incremental
Lenders shall not be necessary to the effectiveness of a Supplement provided
that it otherwise complies with the conditions of this Section 3 and such
Supplement may make technical changes to this Agreement to provide for
such tranche of the Incremental Facility.

          SECTION 4 Interlender Agreements.

          4.1 Allocation of Payments Prior to Acceleration. Prior to the
acceleration of the Loans of any Borrower following the occurrence of an Event
of Default, all payments by such Borrower of principal of, and interest on,
Credit Extensions of such Borrower shall be allocated to the Lenders as
follows, after giving effect to any reallocation:

		
	 	     (a) All payments of principal of, or interest on, Floating Rate
Revolving Loans of such Borrower shall be payable to each Revolving
Lender ratably in accordance with the aggregate principal amount of
Floating Rate Revolving Loans made by such Revolving Lender.
	 
	 	     (b) All payments of principal of, or interest on, Eurocurrency
Revolving Loans of such Borrower in any currency and having any Interest
Period shall be payable to each Revolving Lender ratably in accordance
with the aggregate principal amount of such Eurocurrency Revolving Loans
denominated in such currency made by such Revolving Lender and having the
same Interest Period.
	 
	 	     (c) All payments of principal of, or interest on, Term A Loans shall
be payable to the Term A Lenders ratably in accordance with each Term A
Lender’s respective Term A Percentage.
	 
	 	     (d) Except as otherwise provided in Section 6.2.4, all payments of
principal of, or interest on, Term B Loans shall be payable to the Term B
Lenders ratably in accordance with each Term B Lender’s respective Term B
Percentage.
	 
	 	     (e) Except as otherwise provided in the applicable Supplement, all
payments of principal of, or interest on any tranche of Incremental Loans
shall be payable to the applicable Incremental Lenders ratably in
accordance with each Incremental Lender’s respective Incremental
Percentage of such tranche.
	 
	 	     (f) All payments of any other amounts with respect to any principal,
interest or any other monetary Obligations of such Borrower (other than
those under Section 7.6, Section 8 or Section 15.14) shall be payable to
each Lender ratably in accordance with each Lender’s respective
proportionate interest therein.

          4.2 Allocation of Payments After Acceleration. (a) Upon acceleration
of the Obligations pursuant to Section 12.2, to the extent necessary, each
Lender shall be deemed to have purchased for cash

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without recourse or warranty
from the other Lenders a participation interest in the Credit Extensions owing
to or participated in by each other Lender such that, after giving effect to
such purchase, each Lender shall have a participation in each Credit Extension
under each Facility made to any Borrower ratably in accordance with its
respective Voting Percentage.

          (b)  If under any applicable bankruptcy, insolvency or other similar law,
any Lender receives a secured claim in lieu of a setoff to which this Section
applies, such Lender shall, to the extent practicable, exercise its rights in
respect of such secured claim in a manner consistent with the rights of the
Lenders entitled under this Section to share in the benefits of any recovery on
such secured claim. Each Borrower agrees that any Lender so purchasing a
participation from another Lender pursuant to this Section may, to the fullest
extent permitted by law, exercise all its rights of payment (including pursuant
to Section 7.4) with respect to such participation as fully as if such Lender
were the direct creditor of such Borrower in the amount of such participation.

          (c)  After acceleration of the Obligations pursuant to Section 12.2, all
payments of principal of, and interest on, Credit Extensions shall be allocated
to the Lenders as follows:

		
	 	     (i) On the date of acceleration of the Obligations pursuant to
Section 12.2 (but before giving effect to the deemed purchase referred to
above), the Administrative Agent shall compute the Voting Percentage for
each Lender.
	 
	 	     (ii) To the extent that amounts are received by the Administrative
Agent following the declaration of acceleration of the Obligations
pursuant to Section 12.2, the Administrative Agent shall pay all payments
of principal of, or interest on, Credit Extensions, or other Obligations
to each Lender ratably in accordance with such Lender’s Voting
Percentage, regardless of the Obligor from which such payment is received
or the currency in which such payment is received and each Lender shall
determine the order of application of such payments to the Obligations
owed to such Lender.
	 
	 	     (iii) Each Lender hereby authorizes the Administrative Agent to
effect such conversions of currencies as are necessary to effect the
provisions of this Section, at such times and at such rates as the
Administrative Agent may in a commercially reasonable manner determine.
At each Lender’s option and upon prior written notification to the
Administrative Agent, any Alternate Currency Obligation of such Lender
shall be paid in Dollars.

          4.3 Distribution of Collateral Proceeds.  (a)  All cash proceeds
received by the Administrative Agent in respect of any sale of, collection
from, or other realization upon all or any part of the Collateral after an
acceleration pursuant to Section 12.2 shall be distributed in whole or in part
by the Administrative Agent in the following order of priority:

		
	 	     (i) to the Administrative Agent in an amount equal to the Secured
Obligations owing to the Administrative Agent in such capacity, for
reasonable costs, fees, expenses or indemnities in connection with its
actions under the Loan Documents as of the date of such distribution and,
to the extent that the Lenders have reimbursed the Administrative Agent
for any such costs, fees or expenses, to the Lenders in an amount equal
to the amount so reimbursed;
	 
	 	     (ii) to the Lenders and the Qualified Hedge Counterparties in an
amount equal to the Secured Obligations due and owing to such Persons as
of the date of such distribution and to the Administrative Agent, to be
retained as Collateral in an amount equal to the undrawn amounts of
Letters of Credit, the reimbursement obligations for which when incurred
would constitute Secured Obligations; provided that in the event such
reimbursement obligations become owing to any Lender, the Administrative
Agent shall pay to such Lender the amount of cash held as 

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	 	Collateral therefore pursuant to this
clause (ii) and; provided, further, that to
the extent any such Letters of Credit shall expire or terminate undrawn
the amount held as Collateral therefor
pursuant to this clause in respect of such reimbursement obligations
shall be applied in accordance with the order of priorities set out in
this Section 4.3;
	 
	 	     (iii) to the Administrative Agent to be retained as Collateral an
amount equal to any other contingent Secured Obligations not included in
clause (ii) above; provided that in the event such contingent Secured
Obligations become owing to the holder thereof, then the Administrative
Agent shall pay to such Person such amount of cash held as Collateral
therefore pursuant to this clause; and provided, further, that in the
event such contingent Secured Obligations fail to become absolute, then
the amount of cash held as Collateral therefor pursuant to this clause in
respect of such Secured Obligations shall be applied in accordance with
the order of priorities set out in this Section 4.3; and
	 
	 	     (iv) to the extent of any surplus (but only after payment in full of
all Secured Obligations, direct or contingent, and whether or not then
due and payable) if any, to the Person lawfully entitled thereto, except
as may be provided otherwise by law, it being understood that the
Borrowers shall remain liable to the extent of any deficiency between the
amount of the proceeds of the Collateral and the aggregate of the sums
referred to in clauses (i) through (iii) of this Section 4.3.

During the pendency of any legal proceeding to determine whether any claim of
any Person is a “Secured Obligation” hereunder, the Administrative Agent shall
segregate any funds allocable to the Person whose claim is the subject of such
proceeding and hold such segregated funds until the matter has been resolved by
a final, non-appealable order of a court of competent jurisdiction. In the
event that funds to be distributed by the Collateral Agent pursuant to clause
(ii) or (iii) of this Section 4.3 shall be insufficient to pay in full the
Secured Obligations referred to therein, distributions made pursuant to any
such clause shall be made pro rata based on the aggregate amount of Secured
Obligations held by each Person referred to therein.

          (b)  Until the Administrative Agent shall have distributed cash held by it
pursuant hereto, the Administrative Agent may invest such cash in Cash
Equivalent Investments and such Cash Equivalent Investments shall be retained
by the Administrative Agent as Collateral.

          4.4 No Effect on Obligors. Nothing in this Section 4 shall affect the
rights and obligations of the Obligors under the Loan Documents.

          SECTION
5 Interest and Fees.

          5.1 Interest Rates. Each Borrower promises to pay interest on the unpaid
principal amount of each Loan for the period commencing on the date of such
Loan until such Loan is paid in full, as follows:

		
	 	     (a) at all times while such Loan is a Floating Rate Loan, at a rate
per annum equal to the sum of the Alternate Base Rate from time to time
in effect plus the Applicable Margin; and
	 
	 	     (b) at all times while such Loan is a Eurocurrency Loan, at a rate
per annum equal to the sum of the Eurocurrency Rate (Reserve Adjusted)
applicable to each Interest Period for such Loan plus the Applicable
Margin;

provided, however, that at any time an Event of Default has occurred and is
continuing, the interest rate applicable to (i) each Floating Rate Loan shall
be the sum of (x) the applicable Base Rate plus (y) the Applicable Margin plus
(z) 2% and (ii) each Eurocurrency Loan shall be the higher of (x) the sum of (A)

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the Eurocurrency Rate (Reserve Adjusted) plus (B) the Applicable Margin
plus (C) 2%, and (y) the sum of (A) the Alternate Base Rate plus (B) the
Applicable Margin plus (C) 2%.

          5.2 Interest Payment Dates. Accrued interest on each Floating Rate Loan
shall be payable quarterly in arrears on the last Business Day of each Fiscal
Quarter and at maturity, commencing with the first of such dates to occur after
the date of such Loan. Accrued interest on each Eurocurrency Loan shall be
payable on the last day of each Interest Period relating to such Loan and, in
the case of Eurocurrency Loans with Interest Periods in excess of three months,
on each three-month anniversary of such Eurocurrency Loan and at maturity.
After maturity of any Loan, accrued interest on such Loan shall be payable on
demand.

          5.3 Interest Periods. Each “Interest Period” for a Eurocurrency Loan
shall commence on the date such Eurocurrency Loan is made or converted from a
Floating Rate Loan, or (if such Eurocurrency Loan is a continuation of a prior
Eurocurrency Loan) on the expiration of the immediately preceding Interest
Period for such continued Eurocurrency Loan, and shall end on the date which is
one, two, three, or six months thereafter (and nine and twelve month options if
available from all of the Lenders participating in such Loan), as the
applicable Borrower may specify:

		
	 	     (a) in the case of an Interest Period which commences on the date a
Eurocurrency Loan is made or converted from a Floating Rate Loan, in the
related notice of borrowing or conversion pursuant to Section 2.4 or 2.5,
or
	 
	 	     (b) in the case of a succeeding Interest Period with respect to any
continued Eurocurrency Loan, by telephonic notice (promptly followed by
an executed Notice of Continuation/Conversion) to the Administrative
Agent not later than 10:00 a.m. (New York City time) at least three
Business Days prior to the first day of such succeeding Interest Period,
it being understood that (i) each such notice shall be effective upon
receipt by the Administrative Agent and (ii) if the applicable Borrower
fails to give such notice or an Event of Default has occurred and is
continuing at the time of such notice, such Eurocurrency Loan, if
denominated in Dollars, shall automatically become a Floating Rate Loan
at the end of its then-current Interest Period or, if denominated in an
Alternate Currency, shall be continued as a Eurocurrency Loan denominated
in an Alternate Currency for an Interest Period of one month at a rate
per annum equal to the sum of (A) the Eurocurrency Rate (Reserve
Adjusted) plus (B) the Applicable Margin.

Each Interest Period that begins on the last day of a calendar month (or on a
day for which there is no numerically corresponding day in the appropriate
subsequent calendar month) shall end on the last Business Day of the
appropriate subsequent calendar month. Each Interest Period which would
otherwise end on a day which is not a Business Day shall end on the immediately
succeeding Business Day (unless such immediately succeeding Business Day is the
first Business Day of a calendar month, in which case such Interest Period
shall end on the immediately preceding Business Day). No Borrower may select
any Interest Period for a Eurocurrency Loan which would end after the Revolving
Commitment Termination Date or Stated Maturity Date, as the case may be, or
which would cause such Borrower to prepay such Eurocurrency Loans on a date on
which scheduled Loan payments for the applicable Facility are due.

          5.4 Setting and Notice of Eurocurrency Rates. The applicable Eurocurrency Rate for each Interest Period shall be
determined by the Administrative Agent and notice thereof shall be given by the
Administrative Agent promptly to the applicable Borrower and each Lender. Each
determination of the applicable Eurocurrency Rate by the Administrative Agent
shall be conclusive and binding upon the parties hereto, in the absence of
demonstrable error. The Administrative Agent shall, upon written request of
any Borrower or any Lender, deliver to such Borrower or such Lender a statement
showing the computations used by the Administrative Agent in determining any
applicable Eurocurrency Rate hereunder.

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          5.5 Computation of Interest. Interest shall be computed on Eurocurrency
Loans for the actual number of days elapsed on the basis of a year of 360 days
or, where the practice in the relevant interbank market differs, in accordance
with that market practice as determined by the Administrative Agent. Interest
shall be computed on Floating Rate Loans for the actual number of days elapsed
on the basis of a year of 365 or 366 days, as the case may be. The applicable
interest rate for each Floating Rate Loan shall change simultaneously with each
change in the Alternate Base Rate.

          5.6 Commitment Fee. The Company shall pay to the Administrative Agent for
the account of each Revolving Lender a commitment fee equal to the Applicable
Commitment Fee Rate on the daily average of the unused amount of such Revolving
Lender’s Individual Revolving Commitment. Such commitment fee shall accrue
from the Amendment Effective Date to but excluding the Revolving Commitment
Termination Date. Such commitment fee shall be payable in arrears on the last
Business Day of each Fiscal Quarter and on the Revolving Commitment Termination
Date, in each case for the period then ending for which such commitment fee
shall not have been theretofore paid. The commitment fee shall be computed for
the actual number of days elapsed on the basis of a year of 365 or 366 days, as
the case may be.

          5.7
Letter of Credit Fees. (a)  The Company and Telegraph agree to
pay to the Administrative Agent for the account of the Revolving Lenders pro
rata according to their respective Revolving Percentages a letter of credit fee
for each Letter of Credit requested by such Borrower in an amount per annum of
the daily average of the aggregate Stated Amount of such Letter of Credit
(excluding any unreimbursed payment or disbursement thereunder) equal to the
Applicable Margin for Eurocurrency Loans from time to time.

          (b)  The Company and Telegraph agree to pay to the Issuing Bank a fronting
fee in an amount equal to 1/8 of 1% per annum of the daily average of the
aggregate Stated Amount of each Letter of Credit requested by such Borrower
(excluding any unreimbursed payment or disbursement thereunder).

          (c) 
The fees payable pursuant to clauses (a) and (b) above shall be
computed for the actual number of days elapsed on the basis of a year of 360
days and shall be payable in arrears on the last Business Day of each Fiscal
Quarter and on the Revolving Commitment Termination Date for the period from
and including the date of the issuance of the applicable Letter of Credit to
but excluding the date such payment is due or, if earlier, the date on which
such Letter of Credit expired or was terminated or was fully drawn.

          (d)  In addition, with respect to each Letter of Credit requested by such
Borrower, the Company and Telegraph agree to pay to the Issuing Bank such fees
and expenses as the Issuing Bank
customarily requires in connection with the issuance, amendment, transfer,
negotiation, processing and/or administration of letters of credit.

          5.8 Additional Fees. The Company agrees to pay to the Administrative
Agent and the Sole Lead Arranger such additional fees at such times and in such
amounts as set forth in the Fee Letter.

          SECTION
6 Reduction or Termination of the Commitments; Repayments.

          6.1 Reduction or Termination of the Commitments.

          6.1.1 Voluntary Reduction or Termination of Revolving Commitments. (a)
The Company may from time to time prior to the Revolving Commitment Termination
Date, on at least three Business Days’ prior written notice received by the
Administrative Agent (which shall promptly advise each Revolving Lender
thereof), permanently reduce the Total Revolving Commitments to an amount not
less

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than the Total Revolving Outstanding Amount. Any reduction in the Total
Revolving Commitments shall permanently reduce the Tranche A Commitments and
Tranche B Commitments dollar for dollar. Any such reduction shall be in an
aggregate amount of $1,000,000 or integral multiples thereof.

          (b)  The Company may at any time on like notice prior to the Revolving
Commitment Termination Date terminate all the Revolving Commitments upon
payment in full of the Total Revolving Outstanding Amount hereunder and the
expiration, cancellation or cash collateralization (on terms satisfactory to
the Administrative Agent and the Issuing Bank) of all outstanding Letters of
Credit.

          (c)  All reductions of the Tranche A Commitments and Tranche B Commitments
shall be pro rata among the Revolving Lenders according to their Revolving
Percentages.

          6.1.2 Mandatory Revolving Commitment Reduction. (a) Asset Sales. In the
event the Term A Loans, the Term B Loans and the Incremental Loans have been
paid in full, on the 270th day after the receipt by the Company or any of its
Restricted Subsidiaries of Net Cash Proceeds of any Asset Sales in an aggregate
amount greater than $10,000,000 since the Amendment Effective Date (an “Asset
Reduction Date”), the Total Revolving Commitments shall, without further
action, automatically and permanently be reduced by an amount equal to such Net
Cash Proceeds; provided that the foregoing shall not apply if the Company shall
have provided the Administrative Agent within such 270-day period with
satisfactory evidence that the Company or a Restricted Subsidiary has entered
into binding commitments to reinvest such Net Cash Proceeds, and in any event
such Net Cash Proceeds shall have been reinvested no later than the earlier of
(i) the occurrence of an Event of Default and (ii) 360 days after the receipt
of such Net Cash Proceeds by the Company or such Restricted Subsidiary in
similar assets located (x) in the United Kingdom if the assets disposed of in
such Asset Sale were located in the United Kingdom or (y) in the United States,
if such assets were not located in the United Kingdom. If such Net Cash
Proceeds are not so reinvested after the Company or a Restricted Subsidiary has
entered into binding commitments to reinvest such Net Cash Proceeds and has
provided the Administrative Agent with satisfactory evidence thereof as set
forth above, then the Asset Reduction Date shall be the date which is one
Business Day after the earliest of (A) the date on which such commitment
expires, (B) the occurrence of an Event of Default or (C) the expiration of
such 360-day period.

          (b)  Debt Proceeds. In the event the Term A Loans, Term B Loans and the
Incremental Loans have been paid in full, on each date that is one Business Day
after the receipt of any Debt Proceeds, the Total Revolving Commitments shall,
without further action, automatically and permanently be reduced by an amount
equal to such Debt Proceeds.

          (c)  Casualty Events. In the event the Term A Loans, Term B Loans and the
Incremental Loans have been paid in full, on the 270th day after the receipt by
the Company or any of its Restricted Subsidiaries of Net Cash Proceeds
resulting from a Casualty Event (a “Casualty Reduction Date”), the Total
Revolving Commitments shall, without further action, automatically and
permanently be reduced by an amount equal to the Net Cash Proceeds from such
Casualty Event; provided that the foregoing shall not apply if the Company
shall have provided the Administrative Agent within such 270-day period with
satisfactory evidence that the Company or such Restricted Subsidiary has
entered into binding commitments to use such Net Cash Proceeds to restore,
repair or replace the affected assets, and in any such event Net Cash Proceeds
shall have been used to restore, repair or replace the affected assets no later
than the earlier of (i) the occurrence of an Event of Default and (ii) 360 days
after the receipt of such Net Cash Proceeds by the Company or such Restricted
Subsidiary. If such Net Cash Proceeds are not so reinvested after the Company
or a Restricted Subsidiary has entered into binding commitments to reinvest
such Net Cash Proceeds and has provided the Administrative Agent with
satisfactory evidence thereof in accordance with the above, then the Casualty
Reduction Date shall be the date which is one Business Day after the earliest
of (x) the date on which such commitment expires, (y) the occurrence of an
Event of Default or (z) the expiration of such 360-day period.

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          (d)  Excess Cash Flow Payments. In the event the Term A Loans, the Term B
Loans and the Incremental Loans have been paid in full, on April 15 of each
year, commencing on April 15, 2004, the Total Revolving Commitment shall,
without further action, automatically and permanently be reduced by an amount
equal to the Excess Cash Flow Payment.

          6.1.3 Application of Mandatory Revolving Commitment Reductions to
Revolving Facilities. Mandatory commitment reductions shall be applied pro
rata on a dollar for dollar basis to each of the Tranche A Commitments and the
Tranche B Commitments.

          6.2 Prepayments.

          6.2.1 Mandatory Prepayments due to Revolving Commitment Reductions. If,
after giving effect to any reduction of the Revolving Commitments pursuant to
Section 6.1, (a) the Total Outstanding Revolving Amount under any Facility
exceeds the aggregate amount of the Revolving Commitments for such Facility,
the Borrower or Borrowers under such Facility will make an immediate repayment
of Credit Extensions in an amount equal to such excess (rounded upward, if
necessary, to an integral multiple of $250,000) or (b) the Total Outstanding
Revolving Amount exceeds the Total Revolving Commitments, the Company will make
an immediate repayment of Credit Extensions in an amount equal to such excess
(rounded upward, if necessary, to an integral multiple of $250,000).

          6.2.2 Mandatory Prepayments of Revolving Loans due to Currency
Fluctuations. Promptly (and in any event within three Business Days) following
receipt of any notice that the Administrative Agent shall have determined on
any Determination Date that the Dollar Equivalent of the aggregate amount of
all Credit Extensions under any Facility in respect of Revolving Commitments
exceeds the Revolving Commitments for such Facility then in effect, the
Borrower or Borrowers under such Facility shall make a mandatory prepayment of
the outstanding principal amount of the Credit Extensions under such Facility
in an amount equal to such excess.

          6.2.3 Term A Loan Payments. (a) Scheduled Payments. (i) FDTH shall, on
each of the dates set forth in Schedule 6.2.3, make a payment equal to the
percentage of the original aggregate principal amount of the Term A Loans set
forth against such date.

          (ii)  On the applicable Stated Maturity Date, FDTH shall repay all
outstanding Term A Loans in full.

          (b)  Net Cash Proceeds, Excess Cash Flow Payments. (i) Allocation of
Term Loan Reduction Amount. In the event of receipt of Debt Proceeds or Net
Cash Proceeds of any Asset Sale or Casualty Event (subject to the limitations
set forth below), or if any Excess Cash Flow Payment is due, FDTH shall repay
Term A Loans in the applicable Term Loan Reduction Amount. In determining the
amount to be offered to each Term A Lender, the Administrative Agent shall
determine the Term A Reduction Percentage as of such date.

          (ii)  Debt Proceeds. On the date which is one Business Day after receipt
of Debt Proceeds, FDTH shall repay Term A Loans in an amount equal to each Term
A Lender’s Term A Percentage of the applicable Term Loan Reduction Amount of
such Debt Proceeds allocated to the Term A Loans pursuant to Section 6.2.3(b)(i).

          (iii)  Asset Sales. On each Asset Reduction Date, FDTH shall repay Term A
Loans in an amount equal to each Term A Lender’s Term A Percentage of the
applicable Term Loan Reduction Amount resulting from such Asset Sale allocated
to the Term A Loans pursuant to Section 6.2.3(b)(i); provided that the
foregoing shall not apply if the Company shall have provided the Administrative
Agent within such 270-day period with satisfactory evidence that the Company or
such Restricted Subsidiary, as

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the case may be, has entered into commitments to
reinvest such Net Cash Proceeds, and in any event such Net Cash Proceeds shall
have been reinvested no later than the earlier of (x) the occurrence of an
Event of Default and (y) 360 days after the receipt of such Net Cash Proceeds,
in similar assets located (A) in the United Kingdom, if the assets disposed of
in such Asset Sale were located in the United Kingdom or (B) in the United
States, if such assets were not located in the United Kingdom. If such Net Cash
Proceeds are not so reinvested after the Company or a Restricted Subsidiary has
entered into binding commitments to reinvest such Net Cash Proceeds and has
provided the Administrative Agent with satisfactory evidence thereof as set
forth above, then the payment described above shall be made on the date which
is one Business Day after the earliest of (1) the date on which such commitment
expires, (2) the occurrence of an Event of Default or (3) the expiration of
such 360 day period.

          (iv)  Casualty Proceeds. On each Casualty Reduction Date, FDTH shall repay
Term A Loans in an amount equal to each Term A Lender’s Term A Percentage of
the applicable Term Loan Reduction Amount of the Net Cash Proceeds relating to
such Casualty Event allocated to the Term A Loans pursuant to Section 6.2.3(b)(i); provided, that the foregoing shall not apply if the Company or a
Restricted Subsidiary, as the case may be, shall have provided the
Administrative Agent within such 270-day period
with satisfactory evidence that the Company or a Restricted Subsidiary, as
the case may be, has entered into commitments to restore, repair or replace the
affected assets, and in any event such Net Cash Proceeds shall have been used
to restore, repair or replace the affected assets no later than the earlier of
(x) the occurrence of an Event of Default and (y) 360 days after the receipt of
such Net Cash Proceeds. If such Net Cash Proceeds are not so used after the
Company or a Restricted Subsidiary has entered into binding commitments to
reinvest such Net Cash Proceeds and has provided the Administrative Agent with
satisfactory evidence thereof as set forth above, then a payment described
above shall be made on the date which is one Business Day after the earliest of
(A) the date on which such commitment expires, (B) the occurrence of an Event
of Default or (C) the expiration of such 360 day period.

          (c)  Excess Cash Flow. On April 15 of each year, commencing on April 15,
2004, FDTH shall repay Term A Loans in an amount equal to such Term A Lender’s
Term A Percentage of the applicable Term Loan Reduction Amount of such Excess
Cash Flow Payment allocated to the Term A Loans pursuant to Section 6.2.3(b)(i).

          (d)  Refused Loan Payments. On each date that is one Business Day after a
Term B Loan Offer pursuant to Section 6.2.4(d) has expired, FDTH shall repay
Term A Loans in an amount equal to such Term A Lender’s Term A Percentage of
the offered prepayment which was not accepted by the Term B Lenders. On each
date that is one Business Day after an offer to prepay Incremental Loans
pursuant to the applicable Supplement has expired, FDTH shall repay Term A
Loans in an amount equal to such Incremental Lender’s Incremental Percentage of
the offered prepayment which was not accepted by the Incremental Lenders.

          (e)  Application of Payments. All prepayments pursuant to this Section 6.2.3 shall be applied to unpaid scheduled installments of the Term A Loans of
such accepting Term A Lender pro rata.

          6.2.4
Term B Loan Payments. (a) Scheduled Payments. (i) FDTH shall,
on each of the dates set forth in Schedule 6.2.4, make a payment equal to the
percentage of the original aggregate principal amount of the Term B Loans set
forth against such date.

          (ii)  On the applicable Stated Maturity Date, FDTH shall repay all
outstanding Term B Loans in full.

          (b)  Net Cash Proceeds. (i) Allocation of Term Loan Reduction Amount.
In the event of receipt of Debt Proceeds or Net Cash Proceeds of any Asset Sale
or Casualty Event (subject to limitations set forth below) or in the event an
Excess Cash Flow Payment is due, FDTH shall offer to repay Term B

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Loans in an
amount equal to such Term B Lender’s Term B Percentage of the applicable Term
Loan Reduction Amount of such Debt Proceeds, Net Cash Proceeds of Asset Sales
or Casualty Events or Excess Cash Flow Payment, in each case in accordance with
Section 6.2.4(d).

          (ii)  Debt Proceeds. On the date which is one Business Day after receipt
of Debt Proceeds, FDTH shall offer to repay Term B Loans in an amount equal to
such Term B Lender’s Term B Percentage of the applicable Term Loan Reduction
Amount of such Debt Proceeds allocated to Term B Loans pursuant to Section 6.2.4(b)(i), in each case in accordance with Section 6.2.4(d).

          (iii)  Asset Sales. On each Asset Reduction Date, FDTH shall offer to
repay Term B Loans in an amount equal to such Term B Lender’s Term B Percentage
of the Term Loan Reduction Amount resulting from such Asset Sale allocated to
the Term B Loans pursuant to Section 6.2.4(b)(i); provided
that the foregoing shall not apply if the Company or a Restricted
Subsidiary, as the case may be, shall have provided the Administrative Agent
within such 270-day period, with satisfactory evidence that the Company or such
Restricted Subsidiary, as the case may be, has entered into commitments to
reinvest such Net Cash Proceeds, and in any event such Net Cash Proceeds shall
have been reinvested not later than the earlier of (x) the occurrence of an
Event of Default and (y) 360 days after the receipt of such Net Cash Proceeds,
in similar assets located (A) in the United Kingdom, if the assets disposed of
in such Asset Sale were located in the United Kingdom, or (B) in the United
States if such assets were not located in the United Kingdom. If such assets
are not so reinvested after the Company or a Restricted Subsidiary has entered
into binding commitments to reinvest such Net Cash Proceeds and has provided
the Administrative Agent with satisfactory evidence thereof as set forth above,
then the offer described above shall be made on the date which is one Business
Day after the earliest of (1) the date on which such commitment expires, (2)
the occurrence of an Event of Default or (3) the expiration of such 360 day
period.

          (iv)  Casualty Proceeds. On each Casualty Reduction Date, FDTH shall
offer to repay Term B Loans in an amount equal to such Term B Lender’s Term B
Percentage of the Term Loan Reduction Amount of the Net Cash Proceeds relating
to such Casualty Event allocated to the Term B Loans pursuant to Section 6.2.4(b)(i); provided that the foregoing shall not apply if the Company or such
Restricted Subsidiary, as the case may be, shall have provided the
Administrative Agent within such 270-day period, with satisfactory evidence
that the Company or a Restricted Subsidiary, as the case may be, has entered
into commitments to restore, repair or replace the affected the assets and in
any event such Net Cash Proceeds shall have been used to restore the subject
assets no later than the earlier of (x) the occurrence of an Event of Default
and (y) 360 days after the receipt of such Net Cash Proceeds. If such Net Cash
Proceeds are not so used after the Company or a Restricted Subsidiary has
entered into binding commitments to reinvest such Net Cash Proceeds and has
provided the Administrative Agent with satisfactory evidence thereof as set
forth above, then a payment described above shall be made on the date which is
one Business Day after the earliest of (A) the date on which such commitment
expires, (B) the occurrence of an Event of Default or (C) the expiration of
such 360 day period.

          (c)  Excess Cash Flow Payments. On April 15 of each year, commencing on
April 15, 2004, FDTH shall offer to repay Term B Loans in an amount equal to
such Term B Lender’s Term B Percentage of the Term Loan Reduction Amount of
each Excess Cash Flow Payment allocated to the Term B Loans pursuant to Section 6.2.4(b)(i) in each case in accordance with Section 6.2.4(d). All prepayments
pursuant to this Section 6.2.4(c) shall be made without any Prepayment Premium.

          (d)  Term B Loan Offer. Within five days following the receipt of any Debt
Proceeds, upon the making of any voluntary prepayment pursuant to Section
6.2.6(d) or (e), on each Asset Reduction Date, on each Casualty Reduction Date
and on each date an Excess Cash Flow Payment is due, FDTH shall offer to prepay
Term B Loans in an amount equal to the Term Loan Reduction Amount allocable to

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such Debt Proceeds, Net Cash Proceeds of Asset Sales or Casualty Events or
Excess Cash Flow Payment pursuant to Section 6.2.4(b)(i) (the “Term B Loan
Offer”) in accordance with the following procedure:

          (i)  FDTH shall send the Administrative Agent and each Term B Lender a
notice setting forth (x) the event giving rise to the Term B Loan Offer, a
calculation of the Term Loan Reduction Amount and the prepayment amount
allocable to such Term B Lender’s Term B Loans; (y) that the Term B Lender has
the right to require FDTH to repay Term B Loans in an amount equal to the
applicable Term Loan Reduction Amount; and (z) the proposed date of repayment
(the “Payment Date”) of the Term B Loans (which shall be a Business Day no
earlier than 10 Business Days nor later than 20 Business Days from the date
such Term B Loan Offer is mailed).

          (ii)  Term B Lenders electing to have Term B Loans repaid will be required
to provide notice thereof to FDTH and the Administrative Agent at the address
specified in the notice at least three
Business Days prior to the Payment Date, such election to be irrevocable.
Such election shall set forth the principal amount of Term B Loans which such
Term B Lender elects to have repaid.

          (iii)  Each Term B Loan Offer shall expire on the applicable Payment Date.

          (iv)  Notwithstanding the foregoing, in the event that (x) such Term B
Loan Offer is accompanied by a Prepayment Premium or (y) the Term A Loans have
been repaid in full and FDTH is making a mandatory prepayment in order to
comply with any of the financial covenants set forth in Section 10.6 (in which
case no Prepayment Premium is required to be paid), the Term B Lenders shall
not have the right to refuse any mandatory prepayment set forth in such Term B
Loan Offer.

          (v)  On the applicable Payment Date, FDTH shall repay Term B Loans
together with any applicable Prepayment Premium or, if applicable, shall repay
those Term B Loans as to which an election of repayment has been made in
accordance with clause (ii) above.

          (e)  All prepayments shall be applied to the unpaid scheduled installments
of the Term B Loans of such accepting Term B Lender pro rata.

          6.2.5 Incremental Loan Payments. (a) Scheduled Payments. Each
Incremental Borrower shall make payments of such Incremental Borrower’s
Incremental Loans on the dates and in the amounts set forth in the applicable
Supplement.

          (b)  Net Cash Proceeds. (i) Allocation of Term Loan Reduction Amount.
In the event of receipt of Debt Proceeds or Net Cash Proceeds of any Asset
Sale or Casualty Event (subject to limitations set forth below) or in the event
an Excess Cash Flow Payment is due, each Incremental Borrower shall offer to
repay Incremental Loans in an amount equal to such Incremental Lender’s
Incremental Percentage of the applicable Term Loan Reduction Amount of such
Debt Proceeds, Net Cash Proceeds of Asset Sales or Casualty Events or Excess
Cash Flow Payment, in each case in accordance with Section 6.2.5(d).

          (ii)  Debt Proceeds. On the date which is one Business Day after receipt
of Debt Proceeds, each Incremental Borrower shall offer to repay Incremental
Loans in an amount equal to such Incremental Lender’s Incremental Percentage of
the applicable Term Loan Reduction Amount of such Debt Proceeds allocated to
Incremental Loans pursuant to Section 6.2.5(b)(i), in each case in accordance
with Section 6.2.5(d).

          (iii)  Asset Sales. On each Asset Reduction Date, each Incremental Borrower
shall offer to repay Incremental Loans in an amount equal to such Incremental
Lender’s Incremental Percentage of the Term Loan Reduction Amount resulting
from such Asset Sale allocated to the Incremental Loans

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pursuant to Section 6.2.5(b)(i); provided that the foregoing shall not apply if the Company or a
Restricted Subsidiary, as the case may be, shall have provided the
Administrative Agent within such 270-day period, with satisfactory evidence
that the Company or such Restricted Subsidiary, as the case may be, has entered
into commitments to reinvest such Net Cash Proceeds, and in any event such Net
Cash Proceeds shall have been reinvested not later than the earlier of (x) the
occurrence of an Event of Default and (y) 360 days after the receipt of such
Net Cash Proceeds, in similar assets located (A) in the United Kingdom, if the
assets disposed of in such Asset Sale were located in the United Kingdom, or
(B) in the United States if such assets were not located in the United Kingdom.
If such assets are not so reinvested after the Company or a Restricted
Subsidiary has entered into binding commitments to reinvest such Net Cash
Proceeds and has provided the Administrative Agent with satisfactory evidence
thereof as set forth above,
then the offer described above shall be made on the date which is one
Business Day after the earliest of (1) the date on which such commitment
expires, (2) the occurrence of an Event of Default or (3) the expiration of
such 360 day period.

          (iv)  Casualty Proceeds. On each Casualty Reduction Date, each
Incremental Borrower shall offer to repay Incremental Loans in an amount equal
to such Incremental Lender’s Incremental Percentage of the Term Loan Reduction
Amount of the Net Cash Proceeds relating to such Casualty Event allocated to
the Incremental Loans pursuant to Section 6.2.5(b)(i); provided that the
foregoing shall not apply if the Company or such Restricted Subsidiary, as the
case may be, shall have provided the Administrative Agent within such 270-day
period, with satisfactory evidence that the Company or a Restricted Subsidiary,
as the case may be, has entered into commitments to restore, repair or replace
the affected the assets and in any event such Net Cash Proceeds shall have been
used to restore the subject assets no later than the earlier of (x) the
occurrence of an Event of Default and (y) 360 days after the receipt of such
Net Cash Proceeds. If such Net Cash Proceeds are not so used after the Company
or a Restricted Subsidiary has entered into binding commitments to reinvest
such Net Cash Proceeds and has provided the Administrative Agent with
satisfactory evidence thereof as set forth above, then a payment described
above shall be made on the date which is one Business Day after the earliest of
(A) the date on which such commitment expires, (B) the occurrence of an Event
of Default or (C) the expiration of such 360 day period.

          (c)  Excess Cash Flow Payments. On April 15 of each year, commencing on
April 15, 2004, each Incremental Borrower shall offer to repay Incremental
Loans in an amount equal to such Incremental Lender’s Incremental Percentage of
the Term Loan Reduction Amount of each Excess Cash Flow Payment allocated to
the Incremental Loans pursuant to Section 6.2.5(b)(i) in each case in
accordance with Section 6.2.5(d). All prepayments pursuant to this Section 6.2.5(c) shall be made without any Prepayment Premium.

          (d)  Incremental Loan Offer. Within five days following the receipt of any
Debt Proceeds, upon the making of any voluntary prepayment pursuant to Section
6.2.6(f) or (g), on each Asset Reduction Date, on each Casualty Reduction Date
and on each date an Excess Cash Flow Payment is due, each Incremental Borrower
shall offer to prepay Incremental Loans in an amount equal to the Term Loan
Reduction Amount allocable to such Debt Proceeds, Net Cash Proceeds of Asset
Sales or Casualty Events or Excess Cash Flow Payment pursuant to Section 6.2.5(b)(i) (the “Incremental Loan Offer”) in accordance with the following
procedure:

          (i)  Each Incremental Borrower shall send the Administrative Agent and
each Incremental Lender a notice setting forth (x) the event giving rise to the
Incremental Loan Offer, a calculation of the Term Loan Reduction Amount and the
prepayment amount allocable to such Incremental Lender’s Incremental Loans; (y)
that the Incremental Lender has the right to require such Incremental Borrower
to repay Incremental Loans in an amount equal to the applicable Term Loan
Reduction Amount; and (z) the proposed date of repayment (the “Payment Date”)
of the Incremental Loans (which shall be a Business

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Day no earlier than 10
Business Days nor later than 20 Business Days from the date such Incremental
Loan Offer is mailed).

          (ii)  Incremental Lenders electing to have Incremental Loans repaid will
be required to provide notice thereof to each Incremental Borrower and the
Administrative Agent at the address specified in the notice at least three
Business Days prior to the Payment Date, such election to be irrevocable. Such
election shall set forth the principal amount of Incremental Loans which such
Incremental Lender elects to have repaid.

          (iii)  Each Incremental Loan Offer shall expire on the applicable Payment
Date.

          (iv)  Notwithstanding the foregoing, in the event that (x) such Incremental
Loan Offer is accompanied by a Prepayment Premium or (y) the Incremental Loans
have been repaid in full and such Incremental Borrower is making a mandatory
prepayment in order to comply with any of the financial covenants set forth in
Section 10.6 (in which case no Prepayment Premium is required to be paid), the
Incremental Lenders shall not have the right to refuse any mandatory prepayment
set forth in such Incremental Loan Offer.

          (v)  On the applicable Payment Date, each Incremental Borrower shall
repay Incremental Loans together with any applicable Prepayment Premium or, if
applicable, shall repay those Incremental Loans as to which an election of
repayment has been made in accordance with clause (ii) above.

          (e)  All prepayments shall be applied to the unpaid scheduled installments
of the Incremental Loans of such accepting Incremental Lender pro rata

          6.2.6 Voluntary Prepayments. (a) A Borrower may from time to time prepay
its Revolving Loans in whole or in part, provided that such Borrower shall give
the Administrative Agent (which shall promptly advise each Revolving Lender)
not less than three Business Days’ prior written notice thereof, specifying the
Revolving Loans to be prepaid and the date and amount of prepayment.

          (b)  FDTH may prepay its Term A Loans in whole, provided that FDTH (x)
simultaneously prepays its Term B Loans and Incremental Loans in whole and (y)
gives the Administrative Agent (which shall promptly advise each Term A Lender,
Term B Lender and Incremental Lender) not less than five Business Days’ prior
written notice thereof, specifying the date and amount of prepayment.

          (c)  FDTH may from time to time prepay its Term A Loans in part, provided
that FDTH (x) makes a simultaneous offer to make a pro rata repayment of Term B
Loans and its Incremental Loans and (y) gives the Administrative Agent not less
than five Business Days prior written notice thereof, together with a Term B
Loan Offer and the appropriate notice for the Incremental Loans, specifying the
date and amount of prepayment of the Term A Loans.

          (d)  FDTH may from time to time offer to repay its Term B Loans in part,
provided that FDTH (x) simultaneously makes a pro rata prepayment of Term A
Loans and offers to make a pro rata repayment of its Incremental Loans and (y)
submits a Term B Loan Offer in accordance with Section 6.2.4(d) and the
appropriate notice for the Incremental Loans setting forth the date and amount
of the prepayment; provided, further that if the Term A Loans have been prepaid
in full and FDTH is making a voluntary prepayment in order to comply with any
of the financial covenants set forth in Section 10.6, FDTH may from time to
time prepay on a pro rata basis (without submitting a Term B Loan Offer and the
appropriate notice for the Incremental Loans and without paying a Prepayment
Premium) its Term B Loans and Incremental Loans in part by giving five Business
Days’ prior written notice thereof to the Administrative Agent (which shall
promptly advise each Term B Lender and each Incremental Lender), specifying the
date and amount of prepayment, and the Term B Lenders and the Incremental
Lenders

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shall not have the right to reject such prepayment of the Term B Loans
and Incremental Loans; and provided, further that if such Term B Loan Offer is
accompanied by a Prepayment Premium, the Term B Lenders shall not have the
right to refuse any voluntary prepayment set forth in such Term B Loan Offer.

          (e)  FDTH may repay its Term B Loans in whole, provided that FDTH (x)
simultaneously prepays its outstanding Term A Loans and Incremental Loans in
whole, (y) submits the appropriate notice for the Incremental Loans setting
forth the date and amount of the prepayment and (z) gives the
Administrative Agent (which shall promptly advise each Term A Lender, Term
B Lender and Incremental Lender) not less than five Business Days’ prior
written notice thereof, specifying the date and amount of prepayment.

          (f)  Any Incremental Borrower may from time to time offer to repay on a pro
rata basis its Incremental Loans in part by submitting the appropriate notice
for the Incremental Loans setting forth the date and amount of the prepayment
(subject to the right of the applicable Incremental Lenders to refuse such
prepayment as set forth in the applicable Supplement), provided that (i) if the
Term A Loans have been prepaid in full and such Incremental Borrower is making
a voluntary prepayment in order to comply with any of the financial covenants
set forth in Section 10.6, such Incremental Borrower may from time to time
prepay on a pro rata basis (without submitting the appropriate notice for the
Incremental Loans) its Incremental Loans in part by giving five Business Days’
prior written notice thereof to the Administrative Agent (which shall promptly
advise each Incremental Lender), specifying the date and amount of prepayment,
and the Incremental Lenders shall not have the right to reject such prepayment
of the Incremental Loans, and (ii) if such notice of prepayment is accompanied
by a Prepayment Premium, the applicable Incremental Lenders shall not have the
right to refuse any voluntary prepayment set forth in such notice of
prepayment.

          (g)  Any Incremental Borrower may repay its Incremental Loans in whole,
provided that such Incremental Borrower (x) submits the appropriate notice for
the Incremental Loans setting forth the date and amount of the prepayment and
(y) gives the Administrative Agent (which shall promptly advise each Term A
Lender, Term B Lender and Incremental Lender) not less than five Business Days’
prior written notice thereof, specifying the date and amount of prepayment.

          (h)  Voluntary prepayments of the Term A Loans shall be applied to
scheduled installments of the Term A Loans pro rata. Voluntary prepayments of
the Term B Loans shall be applied to scheduled installments of the Term B Loans
of the Term B Lenders remaining unpaid pro rata. Voluntary prepayments of the
Incremental Loans shall be applied as set forth in the applicable Supplement.

          (i)  Each partial prepayment of Loans shall be in a principal amount of at
least $1,000,000 and an integral multiple of $500,000 (or, in the case of Loans
denominated in Alternate Currencies, the Dollar Equivalent of $1,000,000 and an
integral multiple of $500,000).

          6.2.7 All Prepayments. (a) All prepayments of Loans shall be allocated
pro rata among the Lenders according to their respective pro rata shares of the
prepaid Loans, in accordance with Section 4.2, Section 4.3, Section 6.2.3,
Section 6.2.4 or Section 6.2.5 (if applicable) and any prepayment of a Loan
shall include accrued interest to the date of prepayment on the principal
amount being repaid. Any prepayment of a Eurocurrency Loan on a day other than
the last day of an Interest Period therefor shall be subject to Section 8.4.

          (b)  Except as otherwise expressly set forth herein, all prepayments of
Term B Loans and Incremental Loans (other than Excess Cash Flow Payments) shall
be subject to the following premium (a “Prepayment Premium”):

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	 	     (i) with respect to Incremental Loans, the premium set forth in the
applicable Supplement; and
	 
	 	     (ii) with respect to Term B Loans, the premium set forth below for
the applicable period:

	 	 	 	 	 
	Period	 	Premium
	
	 	

	On or prior to the first anniversary of the Amendment Effective Date
	 	 	102	%
	Day after the first anniversary of the Amendment Effective Date
through the second anniversary of the Amendment Effective Date
	 	 	101	%
	Thereafter
	 	 	0%.	 

          6.2.8 Revolving Commitment Termination Date. On the Revolving Commitment
Termination Date, (a) the Company shall repay to the Lenders the aggregate
principal amount of all Tranche A Loans outstanding on such date and shall
deliver to the Administrative Agent cash collateral in Dollars or Canadian
Dollars, as applicable, consisting of Cash Equivalent Investments or other cash
collateral acceptable to the Issuing Bank in an amount equal to the Dollar
Equivalent of the Stated Amount of all Tranche A Letters of Credit and (b)
Telegraph shall repay to the Lenders the aggregate principal amount of all
Tranche B Loans outstanding on such date and shall deliver to the
Administrative Agent cash collateral in Sterling or Dollars, as applicable,
consisting of Cash Equivalent Investments or other cash collateral acceptable
to the Issuing Bank in an amount equal to the Stated Amount of all Tranche B
Letters of Credit.

          SECTION 7 Making and Proration of Payments; Setoff; Taxes.

          7.1 Making of Payments. (a) All payments of principal or interest on
the Credit Extensions, and of all fees, shall be made by the Borrowers in the
applicable currency without set-off or counterclaim to the Administrative Agent
in immediately available funds at its designated Lending Office not later than
1:00 p.m. (Local Time) on the date due; and funds received after that hour
shall be deemed to have been received by the Administrative Agent on the next
following Business Day. The Administrative Agent shall promptly remit to each
Lender its share of all such payments received in collected funds by the
Administrative Agent for the account of such Lender; provided, however, that
the Administrative Agent shall only be obligated to pay receipts in Alternate
Currencies to accounts in the country of such currencies.

          (b)  All payments under Sections 8.1 and 8.4 shall be made by the Borrowers
directly to the Lender or Lenders entitled thereto.

          7.2 Application of Certain Payments. Except as otherwise expressly
provided herein, each payment of principal shall be applied to such Credit
Extensions as the Borrowers shall direct by notice to be received by the
Administrative Agent on or before the date of such payment or, in the absence
of such notice, as the Administrative Agent shall determine in its reasonable
discretion. Concurrently with each remittance to any Lender of its share of
any such payment, the Administrative Agent shall advise such Lender as to the
application of such payment.

          7.3 Due Date Extension. If any payment of principal or interest with respect to any of the
Credit Extensions, or of any fees, falls due on a day which is not a Business
Day, then, except as

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otherwise provided in Section 5.3, such due date shall be
extended to the next following Business Day and, in the case of principal,
additional interest shall accrue and be payable for the period of any such
extension.

          7.4 Setoff. Each Borrower agrees that the Administrative Agent and each
Lender have all rights of set-off and bankers’ lien provided by applicable law,
and in addition thereto, each Borrower agrees that at any time any Event of
Default has occurred and is continuing, the Administrative Agent and each
Lender may apply to any Obligation of such Borrower hereunder or under any
other Loan Document, whether or not then due, any and all balances, credits,
deposits, accounts or moneys of such Borrower then or thereafter with the
Administrative Agent or such Lender.

          7.5 Proration of Payments. If any Lender shall obtain any payment or
other recovery (whether voluntary, involuntary, by application of offset or
otherwise) on account of principal of or interest on any Credit Extension (or
on account of its participation in any Letter of Credit) in excess of its pro
rata share of payments and other recoveries obtained by all Lenders on account
of principal of and interest on Credit Extensions (or such participations) then
held by them (other than (a) any non-pro rata interest payment resulting from a
Credit Extension being an Affected Loan or (b) any payment resulting from
replacement of a Lender pursuant to Section 8.7), such Lender shall purchase
from the other Lenders such participation in the Credit Extensions (or
sub-participations in Letters of Credit) held by them as shall be necessary to
cause such purchasing Lender to share the excess payment or other recovery
ratably with each of them; provided, however, that if all or any portion of the
excess payment or other recovery is thereafter recovered from such purchasing
Lender, the purchase shall be rescinded and the purchase price restored to the
extent of such recovery.

          7.6 Tax Matters. (a) All payments by the Obligors in respect of
principal, interest, fees, indemnities and other amounts payable hereunder and
under the other Loan Documents shall be made to the recipient thereof without
setoff or counterclaim and free and clear of, and without withholding or
deduction for or on account of, any present or future Taxes now or hereafter
imposed on such recipient or its income, property, assets or franchises (such
recipient’s “Recipient Taxes”), except to the extent that such withholding or
deduction is required by applicable law. If any such withholding or deduction
is required by applicable law, the Borrowers shall take such steps as the
relevant Lender shall reasonably request to assist such Lender in recovering
such Taxes.

          If any Obligor shall be required under applicable law to withhold or deduct any
Taxes from or in respect of any sum payable hereunder or under any other Loan
Document to any Lender or the Administrative Agent, the applicable Borrower
will:

		
	 	     (A) pay to the relevant authorities the full amount so required to
be withheld or deducted;
	 
	 	     (B) promptly forward to the Administrative Agent an official receipt
or other documentation satisfactory to the Administrative Agent
evidencing such payment to such authorities; and
	 
	 	     (C) except to the extent that such withholding or deduction results
from the breach by the recipient (other than because of a change in law
or in the interpretation or application thereof on or after the date of
this Agreement) of its U.S. Exemption Agreement, U.K./U.S. Exemption
Agreement or U.K./Non U.S. Exemption Agreement, or such recipient’s U.S.
Exemption Representation, pay to the Administrative Agent for the account
of the relevant recipient such additional amount as is necessary to
ensure that the net amount actually received by such recipient will equal
the full amount such recipient would have received had no such
withholding or deduction been required.

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          (b) In consideration of the Borrowers’ agreements in clause (a) of this
Section 7.6,

		
	 	     (i) each Lender which is not organized under the laws of the United
States or a State thereof hereby agrees (such Lender’s “U.S. Exemption
Agreement”), to the extent permitted by applicable law (including any
applicable double taxation treaty), to execute and deliver to the Company
and the Administrative Agent (x) as soon as reasonably practicable and in
any event no later than the first scheduled payment date after the
Amendment Effective Date (or, in the case of any Lender not a party to
this Agreement as of the Amendment Effective Date, the date such Lender
becomes a party to this Agreement), a United States Internal Revenue
Service Form  W-8BEN, or W-8ECI (or applicable successor form), completed
by such Lender acting reasonably and claiming a complete exemption from
withholding or deduction for or on account of U.S. Recipient Taxes of
such Lender, as the case may be, and (y) a new Form W-8BEN or a new
W-8ECI (or successor form), as appropriate, upon the expiration or
obsolescence of any previously delivered Form W-8BEN or W-8ECI (or
applicable successor form) or any relevant change in law or treaty.
	 
	 	     (ii) each Lender which is organized under the laws of the United
States or a State thereof, to the extent permitted by applicable law
(including any applicable double taxation treaty), hereby agrees (such
Lender’s “U.K/U.S. Exemption Agreement”), to the extent necessary, to
avoid any withholding or deduction required by applicable law, to execute
and deliver to the Company and the Administrative Agent (x) as soon as
reasonably practicable and in any event no later than the first scheduled
payment date after the Amendment Effective Date (or, in the case of any
Lender not a party to this Agreement as of the Amendment Effective Date,
the date such Lender becomes a party to this Agreement), an Inland
Revenue Form FD-13 (or successor form), completed by such Lender acting
reasonably and claiming a complete exemption from withholding or
deduction for or on account of U.K. Recipient Taxes of such Lender, as
the case may be, and (y) a new Form FD-13 (or successor form), as
appropriate, upon the expiration of any previously delivered Form.
	 
	 	     (iii) If a Lender is not organized under the laws of the United
States or a State thereof but is exempt (in whole or in part) from
withholding or deduction for or on account of U.K. Recipient Taxes, under
applicable law (including any applicable double taxation treaty), such
Lender hereby agrees, to the extent permitted by applicable law with
respect to itself only (such Lender’s “U.K./Non U.S. Exemption
Agreement”), to the extent necessary to avoid any withholding or
deduction required by applicable law, to execute and deliver to its Tax
authority in its jurisdiction of residence (with a copy to the applicable
Borrower and the Administrative Agent) (x) within 20 Business Days of the
Amendment Effective Date (or, in the case of any Lender not a party to
this Agreement as of the Amendment Effective Date, the date such Lender
becomes a party to this Agreement), the appropriate Inland Revenue Form
with respect to such double taxation treaty (or successor form),
completed by such Lender acting reasonably and claiming a complete
exemption, as the case may be, from withholding or deduction for or on
account of U.K. Recipient Taxes of such Lender, and (y) a new Inland
Revenue Form upon the expiration of any previously delivered Form. The
Borrowers agree that no Lender shall be
required to disclose the identity of or request Inland Revenue Forms
from the beneficial owners represented by such Lender even if such
failure results in a Borrower being obligated to make payments pursuant
to Section 7.6(a).

          (c)  Each Lender hereby represents and warrants (such Lender’s “U.S.
Exemption Representation”) to the Company that on the Amendment Effective Date
(or, if later, the date it becomes a party to this Agreement) it is entitled to
receive payments of principal of, and interest on, Loans made by such Lender
without withholding or deduction for or on account of such Lender’s Recipient
Taxes imposed by the United States of America.

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          (d) The Borrowers jointly and severally agree to indemnify each Lender and
the Administrative Agent for the full amount of taxes and for the full amount
of Taxes of any kind imposed or asserted by any jurisdiction on amounts payable
in each case under this Section 7.6, imposed on or paid by such Lender or the
Administrative Agent, as the case may be, and any liability (including
penalties, additions to tax, interest and expenses) arising therefrom or with
respect thereto. Amounts payable by the Borrowers under the indemnity set
forth in this clause (d) shall be paid within 20 Business Days from the date on
which the applicable Lender or the Administrative Agent, as the case may be,
makes written demand therefor.

          (e) If any Lender in its sole discretion acting in good faith determines
that it has finally and irrevocably received a refund in respect of Taxes, to
the extent that, pursuant to this Section 7.6, such Lender already has received
an additional amount from any Borrower attributable to such Taxes giving rise
to the refund, such Lender shall pay over the refund to such Borrower net of
all out-of-pocket expenses and without interest (other than interest paid by
the relevant governmental authority with respect to the refund); provided,
however, that such Borrower shall, upon request of such Lender, repay the
refund (plus penalties, interest or other charges imposed by the relevant
governmental authority) to such Lender if such Lender is required to repay the
refund to the relevant governmental authority. Nothing contained herein shall
(i) require such Lender to make its tax returns (or any other information
relating to its taxes which it deems confidential) available to such Borrower
or any other Person or (ii) interfere with the right of a Lender to manage its
tax affairs as such Lender deems appropriate.

          (f)  (i) All consideration or other amounts payable under a Loan
Document by any party to any Lender, the Administrative Agent, the Issuing Bank
or the Sole Lead Arranger shall be deemed to be exclusive of any VAT (as
defined below). If any VAT is chargeable on any supply made by any such Person
to any party in connection with a Loan Document, that party shall pay to such
Person (in addition to and at the same time as paying the consideration or
other amount) an amount equal to the amount of the VAT.

		
	 	     (ii)  Where a Loan Document requires any party to reimburse any Lender,
the Administrative Agent, the Issuing Bank or the Sole Lead Arranger for any
costs or expenses, that party shall also at the same time pay and indemnify
such Person against all VAT incurred by such Person in respect of the costs or
expenses to the extent that such Person reasonably determines that it is not
entitled to credit or repayment of the VAT.
	 
	 	     (iii)  For purposes of this clause (f), “VAT” means value added tax as
provided for in the United Kingdom Value Added Tax Act 1994 and any other Tax
of a similar nature whether imposed by the United Kingdom or any other
jurisdiction.

          (g)  All obligations provided for in this Section 7.6 shall survive
repayment of the Obligations and any termination of this Agreement.

          SECTION 8 Increased Costs; Special Provisions for Eurocurrency Loans.

          8.1 Increased Costs.  (a)  If, after the Amendment Effective Date, the
adoption of any applicable law, rule or regulation, or any change therein, or
any change in the interpretation or administration thereof by any governmental
authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by any Lender (or any Lending Office of
such Lender) with any request or directive (whether or not having the force of
law) of any such authority, central bank or comparable agency:

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	 	     (i) shall subject any Lender (or any Lending Office of such Lender)
to any tax, duty or other charge with respect to its Credit Extensions or
its obligation to make Credit Extensions, or shall change the basis of
tax on payments to any Lender of the principal of or interest on its
Credit Extensions or any other amounts due under this Agreement in
respect of its Credit Extensions or its obligation to make Credit
Extensions (except for changes in the rate of tax on the overall net
income of such Lender or its Lending Office imposed by the jurisdiction
under the laws of which such Lender is organized or any political
subdivision thereof or by the jurisdiction in which such Lender’s
principal executive office or Lending Office is located); or
	 
	 	     (ii) shall impose, modify or deem applicable any reserve (including
any reserve imposed by the Board of Governors of the Federal Reserve
System, but excluding any reserve included in the determination of
interest rates pursuant to Section 5), special deposit or similar
requirement against assets of, deposits with or for the account of, or
credit extended by any Lender (or any Lending Office of such Lender); or
	 
	 	     (iii) shall impose on any Lender (or its Lending Office) any other
condition affecting its Credit Extensions or its obligation to make
Credit Extensions;

and the result of any of the foregoing is to increase the cost to (or in the
case of Regulation D of the Board of Governors of the Federal Reserve System,
to impose a cost on) such Lender (or any Lending Office of such Lender) of
making or maintaining any Eurocurrency Loan, or to reduce the amount of any sum
received or receivable by such Lender (or its Lending Office) under this
Agreement with respect thereto, then within 10 days after demand by such Lender
(which demand shall be accompanied by a statement setting forth in reasonable
detail the basis for and a calculation of the amount of such demand, a copy of
which shall be furnished to the Administrative Agent), the Borrowers shall pay
directly to such Lender such additional amount or amounts as will compensate
such Lender for such increased cost or such reduction.

          (b)  If any Lender shall reasonably determine that the adoption or phase-in
of any applicable law, rule or regulation regarding capital adequacy, or any
change therein, or any change in the interpretation or administration thereof
by any governmental authority, central bank or comparable agency charged with
the interpretation or administration thereof, or compliance by any Lender (or
its Lending Office) or any Person controlling such Lender with any request or
directive regarding capital adequacy (whether or not having the force of law)
of any such authority, central bank or comparable agency, has or would have the
effect of reducing the rate of return on such Lender’s or such controlling
Person’s capital as a consequence of such Lender’s obligations hereunder
(including such Lender’s
obligations under the Revolving Commitments) to a level below that which
such Lender or such controlling Person could have achieved but for such
adoption, change or compliance (taking into consideration such Lender’s or such
controlling Person’s policies with respect to capital adequacy) by an amount
deemed by such Lender or such controlling Person to be material, then from time
to time, within 10 days after demand by such Lender (which demand shall be
accompanied by a statement setting forth in reasonable detail the basis for and
a calculation of the amount of such demand, a copy of which shall be furnished
to the Administrative Agent), the Borrowers shall pay to such Lender such
additional amount or amounts as will compensate such Lender or such controlling
Person for such reduction.

          8.2 Basis for Determining Interest Rate Inadequate or Unfair. If with
respect to any Interest Period:

		
	 	     (a) deposits in Dollars or Alternate Currencies (in the applicable
amounts) are not being offered to the Administrative Agent in the
interbank eurocurrency market for such Interest Period, or the
Administrative Agent otherwise reasonably determines (which determination
shall be binding and conclusive on the Borrowers) that by reason of
circumstances affecting the interbank 

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	 	eurocurrency market adequate and
reasonable means do not exist for ascertaining the applicable
Eurocurrency Rate;
	 
	 	     (b) two or more Lenders having an aggregate Revolving Percentage,
Incremental Percentage or Term A Percentage or Term B Percentage, as the
case may be, of 30% or more advise the Administrative Agent that the
Eurocurrency Rate (Reserve Adjusted) for its Loans as determined by the
Administrative Agent will not as determined in good faith by such Lenders
adequately and fairly reflect the cost to such Lenders of maintaining or
funding such Loans for such Interest Period (taking into account any
amount to which such Lenders may be entitled under Section 8.1); or
	 
	 	     (c) Lenders having an aggregate Revolving Percentage, Incremental
Percentage or Term A Percentage or Term B Percentage, as the case may be,
of 30% or more advise the Administrative Agent that the making or funding
of Eurocurrency Loans has become impracticable as a result of an event
occurring after the date of this Agreement which in the opinion of such
Lenders materially affects such Loans;

then the Administrative Agent shall promptly notify the other parties hereto
and, so long as such circumstances shall continue, (i) no Revolving Lender,
Incremental Lender or Term A Lender or Term B Lender, as the case may be, shall
be under any obligation to make, or convert any Floating Rate Loan into,
Eurocurrency Loans in the applicable currency and (ii) on the last day of the
current Interest Period for each Eurocurrency Loan in the applicable currency,
such Loan shall, unless then repaid in full, automatically convert to a
Floating Rate Loan.

          8.3 Changes in Law Rendering Eurocurrency Loans Unlawful. In the event
that any change in (including the adoption of any new) applicable laws or
regulations, or any change in the interpretation of applicable laws or
regulations by any governmental or other regulatory body charged with the
administration thereof, should make it (or in the good faith judgment of any
Lender cause a substantial question as to whether it is) unlawful for any
Lender to make, maintain or fund Eurocurrency Loans, then such Lender shall
promptly notify each of the other parties hereto and, so long as such
circumstances shall continue, (a) such Lender shall have no obligation to make,
or convert any Floating Rate Loan into, Eurocurrency Loans (but shall make
Floating Rate Loans concurrently with the making of, or conversion into,
Eurocurrency Loans by the Lenders which are not so affected, in each case in an
amount equal to such Lender’s pro rata share of all Eurocurrency Loans which
would be made or converted at such time in the absence of such
circumstances) and (b) on the last day of the current Interest Period for each
Eurocurrency Loan of such Lender (or, in any event, on such earlier date as may
be required by the relevant law, regulation or interpretation), such
Eurocurrency Loan shall, unless then repaid in full, automatically convert to a
Floating Rate Loan; provided, however, that each Eurocurrency Loan denominated
in an Alternate Currency must be repaid and reborrowed as a Floating Rate Loan
on such date. Each Floating Rate Loan made by a Lender which, but for the
circumstances described in the foregoing sentence, would be a Eurocurrency Loan
(an “Affected Loan”) shall remain outstanding for the same period as the Group
of Eurocurrency Loans of which such Affected Loan would be a part absent such
circumstances.

          8.4 Funding Losses. Each Borrower hereby agrees that upon demand by any
Lender (which demand shall be accompanied by a statement setting forth the
basis for the calculations of the amount being claimed, a copy of which shall
be furnished to the Administrative Agent) such Borrower will indemnify such
Lender against any net loss or expense which such Lender may sustain or incur
(including any net loss or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by such Lender to fund or
maintain any Eurocurrency Loan), as reasonably determined by such Lender, as a
result of (a) any payment or prepayment or conversion of any Eurocurrency Loan
of such Lender on a date other than the last day of an Interest Period for such
Loan (including any conversion

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pursuant to Section 8.3) or (b) any failure of
such Borrower to borrow or convert any Loans on a date specified therefor in a
notice of borrowing or conversion pursuant to this Agreement. For this
purpose, all notices to the Administrative Agent pursuant to this Agreement
shall be deemed to be irrevocable.

          8.5 Right of Lenders to Fund through Other Offices. Each Lender may, if
it so elects, fulfill its commitment as to any Eurocurrency Loan by causing a
foreign branch or Affiliate of such Lender to make such Loan; provided that in
such event for the purposes of this Agreement such Loan shall be deemed to have
been made by such Lender and the obligation of the Borrowers to repay such Loan
shall nevertheless be to such Lender and shall be deemed held by it, to the
extent of such Loan, for the account of such branch or Affiliate.

          8.6 Discretion of Lenders as to Manner of Funding. Notwithstanding any
provision of this Agreement to the contrary, each Lender shall be entitled to
fund and maintain its funding of all or any part of its Loans in any manner it
sees fit, it being understood, however, that for the purposes of this Agreement
all determinations hereunder shall be made as if such Lender had actually
funded and maintained each Eurocurrency Loan during each Interest Period for
such Loan through the purchase of deposits having a maturity corresponding to
such Interest Period and bearing an interest rate equal to the Eurocurrency
Rate for such Interest Period.

          8.7 Mitigation of Circumstances; Replacement of Affected Lenders. (a)
Each Lender shall promptly notify the Company and the Administrative Agent of
any event of which it has knowledge which will result in, and will use
reasonable commercial efforts available to it (and not, in such Lender’s good
faith judgment, otherwise disadvantageous to such Lender) to mitigate or avoid,
(i) any obligation by a Borrower to pay any amount pursuant to Section 7.6
(other than with respect to U.K. Recipient Taxes) or 8.1 and (ii) the
occurrence of any circumstances of the nature described in Section 8.2 or 8.3
(and, if any Lender has given notice of any such event described in clause (i)
or (ii) above and thereafter such event ceases to exist, such Lender shall
promptly so notify the Company and
the Administrative Agent). Without limiting the foregoing, each Lender
will designate a different funding office if such designation will avoid (or
reduce the cost to the Borrowers of) any event described in clause (i) or (ii)
of the preceding sentence and such designation will not, in such Lender’s sole
judgment, be otherwise disadvantageous to such Lender.

          (b)  At any time any Lender is an Affected Lender, the Company may replace
such Affected Lender as a party to this Agreement with one or more other
bank(s) or financial institution(s) reasonably satisfactory to the
Administrative Agent and, in the case of a Revolving Lender, the Issuing Bank
and, upon notice from the Company, such Affected Lender shall assign pursuant
to an Assignment Agreement, and without recourse or warranty, its Revolving
Commitment, if any, its Loans, its participation in Letters of Credit, if any,
and all of its other rights and obligations hereunder to such replacement
bank(s) or other financial institution(s) for a purchase price equal to the sum
of the principal amount of the Loans so assigned, all accrued and unpaid
interest thereon, its ratable share of all accrued and unpaid commitment fees
and Letter of Credit fees, any amounts payable under Section 8.4 as a result of
such Lender receiving payment of any Eurocurrency Loan prior to the end of an
Interest Period therefor and all other obligations owed to such Affected Lender
hereunder.

          8.8 Conclusiveness of Statements; Survival of Provisions. Determinations
and statements of any Lender pursuant to Section 8.1, 8.2, 8.3 or 8.4 shall be
conclusive absent demonstrable error. Lenders may use reasonable averaging and
attribution methods in determining compensation under Sections 8.1 and 8.4, and
the provisions of such Sections shall survive repayment of the Loans,
cancellation or expiration of the Letters of Credit and any termination of this
Agreement.

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          SECTION 9 Warranties.

          To induce the Administrative Agent and the Lenders to enter into this
Agreement, the Issuing Bank to issue Letters of Credit and the Lenders to make
Loans, and purchase participations in Letters of Credit hereunder, each
Borrower warrants to the Administrative Agent, the Issuing Bank and the Lenders
as follows:

          9.1 Organization, etc. Each Borrower is a corporation duly organized,
validly existing, and in good standing under the laws of its jurisdiction of
incorporation; each Restricted Subsidiary is a corporation duly organized,
validly existing and in good standing under the jurisdiction of its
incorporation; each Borrower and each Restricted Subsidiary is duly qualified
to do business in each jurisdiction where the nature of its business makes such
qualification necessary, except where the failure to be so qualified would not
have a Material Adverse Effect; and each Borrower and each Restricted
Subsidiary has full corporate power and authority to own its property and
conduct its business as presently conducted by it.

          9.2 Authorization; No Conflict; Compliance with Laws. The execution and
delivery by each Borrower of this Agreement and each other Loan Document to
which it is a party, the borrowings hereunder, the execution and delivery by
each other Obligor of each Loan Document to which it is a party and the
performance by each of the Borrowers and each other Obligor of its obligations
under each Loan Document to which it is a party are within the corporate powers
of each Borrower and each other Obligor, as applicable, have been duly
authorized by all necessary corporate action on the part of each Borrower and
each other Obligor (including any
necessary shareholder and partner action), have received all necessary
governmental approval (if any shall be required), and do not and will not (a)
violate any provision of law or any order, decree or judgment of any court or
other government agency which is binding on the Borrowers or any Restricted
Subsidiary, (b) contravene or conflict with, or result in a breach of, any
provision of the Organic Documents of the Borrowers or any Restricted
Subsidiary or of any agreement, indenture, instrument or other document, or any
judgment, order or decree, which is binding on the Company or any Restricted
Subsidiary or (c) result in, or require, the creation or imposition of any Lien
on any property of the Borrowers or any Restricted Subsidiary (other than
pursuant to the Loan Documents). No Borrower or Restricted Subsidiary is in
violation of any law, rule, regulation (including, without limitation under the
Patriot Act, the Trading with the Enemy Act, the foreign assets control
regulations of the United States Treasury Department and Executive order 13224
of September 23, 2001) binding upon it which could have a Material Adverse
Effect.

          9.3 Validity and Binding Nature. This Agreement is, and upon the
execution and delivery thereof each other Loan Document to which any Borrower
is a party will be, the legal, valid and binding obligation of such Borrower,
enforceable against such Borrower in accordance with its terms, except that
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws now or hereafter in effect relating to
creditors’ rights generally and by general principles of equity (regardless of
whether enforcement is sought in equity or at law); and each Loan Document to
which any other Obligor is a party will be, upon the execution and delivery
thereof by such Obligor, the legal, valid and binding obligation of such
Obligor, enforceable against such Obligor in accordance with its terms, except
that enforceability may be limited by bankruptcy, insolvency, fraudulent
conveyance, fraudulent transfer, reorganization, moratorium or other similar
laws now or hereafter in effect relating to creditors’ rights generally and by
general principles of equity (regardless of whether enforcement is sought in
equity or at law).

          9.4 Financial Information. (a) The audited consolidated financial
statements of Hollinger International as at December 31, 2001, and the
unaudited consolidated financial statements of Hollinger International as at
September 30, 2002, copies of which have been delivered to the Lenders, in each
case (i) are true and correct in all material respects, (ii) have been prepared
in accordance with GAAP

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consistently applied throughout the periods involved
(except as disclosed therein) and (iii) present fairly in all material respects
the consolidated financial condition of Hollinger International and its
Subsidiaries at such dates and the results of their operations for the periods
then ended.

          (b)  The forecasted consolidated balance sheet, profits and loss statement
and cash flow statement of the Financial Group together with supporting details
and statement of underlying assumptions dated November 7, 2002, copies of which
have been delivered to each Lender, have been prepared by the Company in light
of the past operations of the business of the Financial Group and represent, as
of the date of this Agreement, the good faith estimate of the Company and its
senior management of the most probable course of the business of the Financial
Group after giving effect to such transactions.

          9.5 No Material Adverse Change. Except as disclosed in Schedule 9.5, from
December 31, 2001 to the Amendment Effective Date, no event has occurred which,
individually or in the aggregate with other events, has had or is reasonably
likely to have a Material Adverse Effect.

          9.6 Litigation and Contingent Liabilities. As of the Amendment Effective
Date, no litigation (including derivative actions), arbitration proceeding or
governmental proceeding is pending or, to the Company’s knowledge, threatened
against the Company or any Restricted Subsidiary which, if adversely
determined, might have a Material Adverse Effect, except as set forth in
Schedule 9.6. Other than any liability incident to such litigation or
proceedings, as of the Amendment Effective Date neither the Company, nor any
Restricted Subsidiary has any material contingent liabilities not provided for
or disclosed in the financial statements referred to in clause (a) of Section
9.4 or listed in Schedule 9.6.

          9.7 Ownership of Properties; Liens. Each of the Company and each
Restricted Subsidiary owns good and marketable title to, or a valid leasehold
interest in, all of its properties and assets, real and personal, tangible and
intangible, of any nature whatsoever (including patents, trademarks, trade
names, service marks and copyrights), except to the extent any failure to do so
would not reasonably be expected to have a Material Adverse Effect, free and
clear of all Liens, charges and claims (including infringement claims with
respect to patents, trademarks, copyrights and the like) except as permitted
pursuant to Section 10.8.

          9.8 Subsidiaries. The Company has no Subsidiaries except those listed in
Schedule 9.8 as of the Amendment Effective Date and such Schedule contains a
true and complete description of all Dormant Subsidiaries and all Unrestricted
Subsidiaries (in each case labeled as such), as well as a true and complete
description of the corporate ownership structure of the Financial Group as it
will be immediately after the Amendment Effective Date, including details of
all minority shareholdings held in any member of the Financial Group, all
partnership and joint venture arrangements in which any member of the Financial
Group participates and all loans within the Financial Group in excess of
$1,000,000.

          9.9 Pension, Welfare and Employee Benefit Plans. Except as disclosed to
the Lenders in writing prior to the date of this Agreement, during the
twelve-consecutive-month period prior to the date of the execution and delivery
of this Agreement or the making of any Credit Extension hereunder, (a) no steps
have been taken to terminate any Pension Plan or Welfare Plan which would be
reasonably likely to result in the Company or any of its Subsidiaries being
required to make a contribution to such Pension Plan or Welfare Plan, or
incurring a liability or obligation to such Pension Plan or Welfare Plan, in
excess of $2,000,000, (b) no contribution failure has occurred with respect to
any Pension Plan or Welfare Plan sufficient to give rise to a Lien under
Section 302(f) of ERISA or any other applicable law, and (c) each member of the
Financial Group is in compliance with applicable laws and contracts relating to
pension schemes (if any) from time to time operated by it or in which it
participates and each pension scheme is adequately provided for and funded in
accordance with applicable law. No condition exists or event or transaction
has occurred with respect to any Pension Plan or Welfare Plan which could
result in the

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incurrence by the Company or any of its Subsidiaries of any
material liability, fine or penalty under ERISA, the Code or any other
applicable law. Except as set forth on Schedule 9.9, the Company and its
Restricted Subsidiaries have no contingent liability with respect to any
post-retirement benefit under a Welfare Plan, other than liability for
continuation coverage described in Part 6 of subtitle B of title I of ERISA.
Each Employee Benefit Plan is in compliance in all material respects with all
laws, regulations and rules applicable thereto and the respective requirements
of the governing documents for such Employee Benefit Plan, except for any
non-compliance the consequences of which, in the aggregate, would not result in
a material obligation to pay money. With respect to any Employee Benefit Plan
of a Restricted Subsidiary organized outside the United States, (x) the
aggregate of the accumulated benefit obligations under all Employee Benefit
Plans does not exceed the current fair
market value of the assets held in the trusts or similar funding vehicles
for such Employee Benefit Plans, and (y) reasonable reserves have been
established in accordance with prudent business practice or where required by
ordinary accounting practices in the jurisdiction in which such Employee
Benefit Plan is maintained. There are no material actions, suits or claims
(other than routine claims for benefits) pending or, to the knowledge of the
Company, threatened against it or any of its Subsidiaries with respect to any
Employee Benefit Plan. None of the Company, any of its Subsidiaries or any
ERISA Affiliate has incurred or is reasonably expected to incur any Withdrawal
Liability exceeding $2,000,000 to any Multiemployer Plan.

          9.10 Investment Company Act. Neither the Company nor any Restricted
Subsidiary is an “investment company” or a company “controlled” by an
“investment company”, within the meaning of the Investment Company Act of 1940,
as amended.

          9.11 Public Utility Holding Company Act. Neither the Company nor any
Restricted Subsidiary is a “holding company”, or a “subsidiary company” of a
“holding company”, or an “affiliate” of a “holding company” or of a “subsidiary
company” of a “holding company”, within the meaning of the Public Utility
Holding Company Act of 1935, as amended.

          9.12 Regulations U and X. Neither the Company nor any of its Restricted
Subsidiaries is engaged principally, or as one of its important activities, in
the business of extending credit for the purpose of purchasing or carrying
Margin Stock.

          9.13 Taxes. Each of the Company and each Restricted Subsidiary has filed
all income tax and other material tax returns and reports required by law to
have been filed by it and has paid all income taxes and other material taxes
and governmental charges thereby shown to be owing, except (a) as disclosed on
Schedule 9.6 and (b) for any such taxes or charges which are being diligently
contested in good faith by appropriate proceedings and for which adequate
reserves in accordance with GAAP shall have been set aside on its books.

          9.14 Solvency, etc. On the Amendment Effective Date (with respect to each
of the Borrowers and each Restricted Subsidiary listed on Schedule 9.8 which is
a Restricted Subsidiary Obligor), and immediately prior to and after giving
effect to each Credit Extension and the use of the proceeds thereof (with
respect to the Borrowers only), (a) the assets of each such Person will exceed
its liabilities, (b) each such Person will be solvent, will be able to pay its
debts as they mature, will own property with fair saleable value greater than
the amount required to pay its debts and will have capital sufficient to carry
on its business as then constituted, and (c) each such person which is
incorporated under the laws of England and Wales or Scotland will not be unable
to pay its debts within the meaning of Section 123 of the Insolvency Act 1986.

          9.15 Insurance. Set forth on Schedule 9.15 is a complete and accurate summary of the
property, casualty and business interruption insurance program carried by the
Company and its Restricted Subsidiaries on the date of this Agreement,
including the insurer’s(s’) name(s), policy number(s), expiration date(s),
amount(s) of coverage, type(s) of coverage, the annual premium(s), exclusions,

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deductibles and self-insured retention and a description in reasonable detail
of (a) any retrospective rating plan, fronting arrangement or other
self-insurance or risk assumption agreed to by the Company or any Restricted
Subsidiary or imposed upon the Company or any Restricted Subsidiary by any such
insurer and (b) any self-insurance program that is in effect.

          9.16 Contracts; Labor Matters. Except as disclosed on Schedule 9.16: (a)
neither the Company nor any Restricted Subsidiary is a party to any contract or
agreement, or is subject to any charge, corporate restriction, judgment, decree
or order, which has a Material Adverse Effect; (b) no material labor contract
to which the Company or any Restricted Subsidiary is a party or is otherwise
subject is scheduled to expire prior to the Revolving Commitment Termination
Date; (c) neither the Company nor any Restricted Subsidiary has, within the
two-year period preceding the date of this Agreement, taken any action which
would have constituted or resulted in a “plant closing” or “mass layoff” within
the meaning of the Federal Worker Adjustment and Retraining Notification Act of
1988 or any similar applicable federal, State, local or foreign law or
redundancy on a large scale, and the Company has no reasonable expectation that
any such action is or will be required at any time prior to the Revolving
Commitment Termination Date; and (d) on the Amendment Effective Date there are
no strikes or walkouts relating to any labor contracts to which the Company or
any Restricted Subsidiary is a party or is otherwise subject.

          9.17 Environmental and Safety and Health Matters. Except as disclosed on
Schedule 9.17, the Company and each of its Subsidiaries and each property,
operation and facility that the Company or any Subsidiary may own, operate or
control (a) complies in all material respects with (i) all applicable
Environmental Laws and (ii) all applicable Occupational Safety and Health Laws;
(b) is not subject to any judicial or administrative proceeding alleging the
violation of any Environmental Law or Occupational Safety and Health Law; (c)
has not received any notice (i) that it may be in violation of any
Environmental Law or Occupational Safety and Health Law, or (ii) threatening
the commencement of any proceeding relating to allegedly unlawful, unsafe or
unhealthy conditions or (iii) alleging that it is or may be responsible for any
response, cleanup, or corrective action, including any remedial
investigation/feasibility study, under any Environmental Law or Occupational
Safety and Health Law; (d) has not received any notice that it is the subject
of federal or State investigation evaluating whether any investigation,
remedial action or other response is needed to respond to (i) a spillage,
disposal or release or threatened release into the environment of any Regulated
Material, or (ii) any alleged violation of any Occupational Safety and Health
Law; (e) has not filed any notice under or relating to any Environmental Law or
Occupational Safety and Health Law indicating or reporting (i) any past or
present spillage, disposal or release (other than permitted releases) into the
environment of, or treatment, storage or disposal of (other than permitted
releases), any Regulated Material in excess of quantities requiring
notification under any Environmental Law, or (ii) any violation of any
Occupational Safety and Health Law and (f) to the best knowledge of the Company
has no material contingent liability in connection with (i) any actual or
potential spillage, disposal or release into the environment of, or otherwise
with respect to, any Regulated Material, whether on any premises owned or
occupied by the Company or any Subsidiary or on any other premises or (ii) any
unsafe or unhealthful condition. Except as disclosed on Schedule 9.17, there
are no Regulated Materials on, in or under any property or facilities, owned,
operated or controlled by the Company or any Subsidiary (except Regulated
Materials used in the ordinary course of the business of the Company and its
Subsidiaries and used, stored, handled, treated and disposed of in all material
respects in accordance with all applicable Environmental Laws and Occupational
Safety and Health Laws) that, under applicable Environmental
Laws or Occupational Safety and Health Laws (x) impose or could reasonably
be expected to impose a liability for removal, remediation, or other cleanup or
damage to natural resources, in an amount equal to or greater than $500,000;
(y) could reasonably be expected to have a Material Adverse Effect; or (z)
could reasonably be expected to result in the imposition of a Lien on the
property or other assets of the Company or its Subsidiaries.

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          9.18 Information. All written information heretofore or contemporaneously
herewith furnished by or on behalf of the Company or any Restricted Subsidiary
to the Administrative Agent or any Lender for purposes of or in connection with
this Agreement and the transactions contemplated hereby (including without
limitation the information contained in the Confidential Information Memorandum
dated November, 2002 heretofore distributed to the Lenders) is, and all written
information hereafter furnished by or on behalf of the Company or any
Restricted Subsidiary to the Administrative Agent or any Lender pursuant hereto
or in connection herewith will be, when taken in its entirety with all other
written information provided hereunder, true and accurate in every material
respect on the date as of which such information is dated or certified, and
none of such information is or will be incomplete by omitting to state any
material fact necessary to make such information not misleading; provided,
however, that no representation is made as to any assumption or projection
included in any budget, business plan or other material except that such
assumptions or projections represent the reasonable good faith beliefs of the
Company. The Company has heretofore furnished to the Administrative Agent true
and complete final copies (in each case as in full force and effect) of all the
documents relating to New High Yield Notes, the Tax Indemnity Agreements, the
Tax Allocation Agreement, the 1996 Senior Subordinated Indenture, the 1997
Senior Subordinated Indenture, the 1997 Senior Indenture, and the Co-Operation
Agreement dated June 23, 1992 between Hollinger, Inc. and Telegraph.

          9.19 Permitted Indebtedness, etc. The obligations of the Borrowers under
this Agreement and the other Loan Documents constitute “Pari Passu
Indebtedness”, “Permitted Indebtedness” and, in the case of Indebtedness of
FDTH and Telegraph hereunder, “Permitted Subsidiary Indebtedness” under the New
High Yield Notes.

          9.20 Financial Assistance. The granting of the security interests, the
giving of the guarantees, and the incurrence of Loans and other Obligations by
Telegraph and the other U.K. Obligors as contemplated by the Loan Documents and
the implementation and consummation of any of the transactions contemplated
herein has not constituted or involved, and will not constitute or involve, any
arrangement amounting to unlawful financial assistance for the acquisition of
shares within the meaning of Section 151 of the Companies Act 1985.

          9.21 Intellectual Property. The Intellectual Property required in order
to conduct the business of each member of the Financial Group (a) is
beneficially owned by or licensed to members of the Financial Group free from
any licenses to third parties which are materially prejudicial to the use of
that Intellectual Property, (b) will not be materially adversely affected by
the transactions contemplated by this Agreement and the other Loan Documents,
and (c) has not lapsed or been cancelled in any respect which would have a
Material Adverse Effect. All steps necessary have been taken to protect and
maintain such Intellectual Property, including, without limitation, paying
renewal fees where failure to do so would have or be reasonably likely to have
a Material Adverse Effect. No member of the Financial Group materially
infringes on any intellectual property right of any third party, and where the
Intellectual Property required in order to
conduct the business of the Financial Group is subject to any right,
permission to use, or license granted to or by any member of the Financial
Group, such agreement has not been breached in any way or terminated by any
party to the extent such breach or termination would have or be reasonably
likely to have a Material Adverse Effect.

          SECTION
10 Covenants.

          Until the Stated Maturity Date and thereafter until all obligations of the
Borrowers hereunder and under the other Loan Documents are paid in full and all
Letters of Credit have been terminated or expired (regardless of whether such
Letters of Credit have been cash collateralized), the Company agrees, and each
Borrower with respect to itself and its Restricted Subsidiaries agrees that,
unless at any time the Required Lenders shall otherwise expressly consent in
writing, it will:

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          10.1 Reports, Certificates and Other Information. Furnish to the
Administrative Agent (with sufficient copies for each Lender, to be promptly
distributed by the Administrative Agent to each Lender) at its office:

          10.1.1 Annual Report. Promptly when available and in any event within 90
days after the close of each Fiscal Year, a copy of the annual report of
Hollinger International and its Subsidiaries for such Fiscal Year, including
therein consolidated balance sheets of Hollinger International and such
Subsidiaries as of the end of such Fiscal Year and consolidated statements of
earnings and cash flows of Hollinger International and such Subsidiaries for
such Fiscal Year, which report (a) shall be prepared in accordance with GAAP
and certified by independent auditors of recognized national standing selected
by Hollinger International and reasonably acceptable to the Required Lenders,
in an audit report which shall be without qualification as to going concern or
scope and (b) shall be accompanied by a written statement from such auditors to
the effect that in making the examination necessary for the signing of such
audit report they have not become aware of any Event of Default or Unmatured
Event of Default that has occurred and is continuing or, if they have become
aware of any such event, describing it in reasonable detail.

          10.1.2 Quarterly Reports. Promptly when available and in any event within
15 days following the date on which the report on Form 10-Q for Hollinger
International is required to be filed with the SEC for the first three Fiscal
Quarters of each Fiscal Year, consolidated balance sheets of Hollinger
International and its Subsidiaries as of the end of such Fiscal Quarter and
consolidated statements of earnings and consolidated statements of cash flows
for such Fiscal Quarter and for the period beginning with the first day of such
Fiscal Year and ending on the last day of such Fiscal Quarter, including a
comparison with the corresponding Fiscal Quarter and period of the previous
Fiscal Year and prepared in accordance with GAAP, together with a certificate
signed by one of the chief executive officer, the chief financial officer, the
chief operating officer or the Vice President-Finance of the Company to the
effect that such financial statements fairly present in all material respects
the financial condition and results of operations of Hollinger International
and such Subsidiaries as of the dates and periods indicated, subject to changes
resulting from normal year-end adjustments.

          10.1.3 Certificates. Within 5 Business Days of the furnishing of a copy
of each annual report pursuant to Section 10.1.1 and contemporaneously with the
furnishing of each set of statements pursuant to Section 10.1.2, a duly
completed certificate in form and substance acceptable to the Administrative
Agent acting reasonably (a “Compliance Certificate”), with appropriate
insertions, dated the date of such annual report or such quarterly statements
and signed by one of the chief executive officer, the chief financial officer,
the Vice President-Finance, the chief operating officer or the controller of
the Company,
containing a computation of each of the financial ratios and restrictions
set forth in Section 10 and to the effect that such officer has not become
aware of any Event of Default or Unmatured Event of Default that has occurred
and is continuing or, if there is any such event, describing it and the steps,
if any, being taken to cure it.

          10.1.4 Reports to SEC and to Shareholders. Promptly upon the filing or
sending thereof, a copy of (a) any annual, periodic or special report or
registration statement (inclusive of exhibits thereto) filed by the Company or
any of its Restricted Subsidiaries with the SEC or any securities exchange and
(b) any report, proxy statement or similar communication to the public
shareholders of the Company or any of its Restricted Subsidiaries, if any.

          10.1.5 Notice of Default, Litigation and ERISA Matters. Promptly (and in
any event within one Business Day in the case of clause (a) and within five
days in the case of clauses (b) through (i)) after any officer of the Company
or any Restricted Subsidiary learns of any of the following, written notice
describing the same and the steps being taken by the Company or the Restricted
Subsidiary affected thereby with respect thereto: (a) the occurrence of an
Event of Default or an Unmatured Event of Default;

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(b) any litigation,
arbitration or governmental investigation or proceeding not previously
disclosed by the Company to the Lenders which has been instituted or, to the
knowledge of the Company, is threatened against the Company or any Restricted
Subsidiary or to which any of the properties of any thereof is subject which
has had or is reasonably likely to have a Material Adverse Effect; (c) any
material adverse development which occurs in any litigation, arbitration or
governmental investigation or proceeding previously disclosed on Schedule 9.6
or pursuant to clause (b); (d) the institution of any steps by the Company, any
of its Subsidiaries or any other Person to terminate any Pension Plan if as a
result of such transaction any Borrower or Restricted Subsidiary could be
required to make a contribution to such Pension Plan in excess of $1,000,000,
or the failure to make a required contribution to any Pension Plan if such
failure is sufficient to give rise to a Lien under Section 302(f) of ERISA, or
the taking of any action with respect to a Pension Plan which could result in
the requirement that the Company furnish a bond or other security to the PBGC
or such Pension Plan, or the occurrence of any event with respect to any
Pension Plan which could result in the incurrence by the Company or any
Restricted Subsidiary of any material liability, fine or penalty, or any
material increase in the contingent liability of the Company or any Restricted
Subsidiary with respect to any post-retirement Welfare Plan benefit; (e) the
imposition of Withdrawal Liability by any Multiemployer Plan, (f) the
reorganization or termination, within the meaning of Title IV of ERISA, of any
such Multiemployer Plan, (g) the amount of liability incurred, or that may be
incurred, by the Company, any of its Subsidiaries, or any ERISA Affiliate in
connection with any event described in clauses (e) and (f); (h) the occurrence
of any other event or circumstance which has had or is reasonably likely to
have a Material Adverse Effect; and (i) the occurrence of any Casualty Event,
the Net Cash Proceeds of which are expected to be $10,000,000 or more.

          10.1.6 Subsidiaries. (a) Within 15 days following the formation or
acquisition of any Restricted Subsidiary, written notice of such formation or
acquisition and (b) together with each Compliance Certificate delivered with an
annual report pursuant to Section 10.1.1, a written report of any change in the
list of the Subsidiaries of the Company or any other Borrower since the end of
the previous Fiscal Year (or, in the case of the first such report, since the
Amendment Effective Date).

          10.1.7 Management Reports. Promptly upon the request of the
Administrative Agent or any Lender, copies of all detailed financial and
management reports submitted to the Company or any of its Restricted
Subsidiaries by independent auditors in connection with any annual or interim
audit made by such auditors of the books of the Company or any Restricted
Subsidiary.

          10.1.8 Insurance Information. Not later than 90 days after the end of
each Fiscal Year, a complete and accurate summary of the property, business
interruption and casualty insurance program of the Company or its Restricted
Subsidiaries containing substantially the same information with respect to
such insurance program as the information set forth on Schedule 9.15; and
promptly upon the occurrence thereof, a written report of any change in the
Company’s insurance program which will materially reduce the amount or scope of
coverage of any type of insurance.

          10.1.9 Annual Budget. Not later than the earlier of (a) the date the
annual report is required to be delivered pursuant to Section 10.1.1 and (b)
the date on which preparation of such budget is completed, a copy of the
Company’s annual budget for the next succeeding Fiscal Year.

          10.1.10 Other Information. Promptly from time to time, such other
information concerning (a) the Company and its Restricted Subsidiaries and (b)
transactions between the Company or any Restricted Subsidiary and any other
Affiliate as any Lender or the Administrative Agent may reasonably request.

          10.2 Books, Records and Inspections. Keep, and cause each Restricted
Subsidiary to keep, proper books and records in which full and correct entries
shall be made sufficient to allow the preparation of financial statements in
accordance with GAAP; permit, and cause each Restricted Subsidiary to permit,
on reasonable notice and at reasonable times and intervals during normal
business

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hours any Lender, the Administrative Agent or any representative
thereof to (a) visit and inspect the properties of the Company or any of its
Restricted Subsidiaries, (b) inspect and make extracts from and copies of their
respective books and records, and (c) discuss with their respective principal
officers their respective businesses, operations and financial matters. The
Company and each of its Restricted Subsidiaries will (i) after the occurrence
and during the continuance of any Event of Default and (ii) otherwise with the
consent of the Company, which consent shall not be unreasonably withheld, also
permit any Lender, the Administrative Agent or any representative thereof to
discuss with the Company’s independent auditors their respective businesses,
operations and financial matters; provided that the Company is given reasonable
prior notice of and an opportunity to attend any meeting between such auditors
and any Lender, the Administrative Agent or any representative thereof at which
such issues will be discussed. The Company will pay all reasonable
out-of-pocket costs and expenses incurred by the Administrative Agent in
connection with all visits, discussions, and examinations by the Administrative
Agent.

          10.3 Insurance. Maintain, and cause each Restricted Subsidiary to
maintain, with reputable, financially sound insurance companies (in all cases
rated at least A- by A.M. Best & Co. or the equivalent in the applicable
jurisdiction), insurance to such extent and against such hazards and
liabilities as is customarily maintained by companies similarly situated (and,
in any event, such insurance as may be required by any law or governmental
regulation or any court order or decree); and, upon request of the
Administrative Agent, furnish to the Administrative Agent a certificate setting
forth in reasonable detail the nature and extent of all insurance maintained by
the Company and its Restricted Subsidiaries.

          10.4 Compliance with Laws; Maintenance of Property; Payment of Taxes and
Liabilities. (a) Comply, and cause each Restricted Subsidiary to comply, in
all material respects with all applicable laws, rules, regulations and orders
(including, without limitations, under the Patriot Act, the Trading with the
Enemy Act, the foreign assets control regulations of the United States Treasury
Department and Executive Order 13224 of September 23, 2001) the noncompliance
with which would be reasonably likely to have a Material Adverse Effect; (b)
maintain or cause to be maintained, and cause each Restricted Subsidiary to
maintain or cause to be maintained, in good repair, working order and condition
all material properties used in its business, and make, and cause each
Restricted Subsidiary to make, all appropriate repairs, renewals and
replacements of such properties; (c) pay, and cause each Subsidiary to pay,
prior to delinquency, all taxes and other governmental charges against it or
any of its
property; provided, however, that the foregoing shall not require the
Company or any Subsidiary to pay any such tax or charge so long as it shall
contest the validity thereof in good faith by appropriate proceedings and shall
set aside on its books adequate reserves with respect thereto; and (d) not, and
not permit any Restricted Subsidiary to, file or consent to the filing of any
consolidated income tax return with any Person other than Hollinger
International, the Company and its Subsidiaries.

          10.5 Maintenance of Existence, etc. Maintain and preserve, and (subject
to Section 10.11) cause each Restricted Subsidiary to maintain and preserve,
(a) its existence and good standing in the jurisdiction of its incorporation
(provided that the Company may dissolve Dormant Subsidiaries) and (b) its
qualification and good standing as a foreign corporation in each jurisdiction
where the nature of its business makes such qualification necessary (except in
those instances in which the failure to be qualified or in good standing would
not be reasonably likely to result in a Material Adverse Effect).

          10.6 Financial Covenants.

          10.6.1 Total Leverage Ratio. Not permit the Total Leverage Ratio to
exceed the ratio set forth opposite such period under the column heading
“Required Ratio” in the table below.

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	Period	 	Required Ratio
	
	 	

	Amendment Effective Date through 06/30/03
	 	 	5.75:1.00	 
	07/01/03 through 09/30/03
	 	 	5.50:1.00	 
	10/01/03 through 12/31/03
	 	 	5.25:1.00	 
	01/01/04 through 06/30/04
	 	 	5.00:1.00	 
	07/01/04 through 12/31/04
	 	 	4.75:1.00	 
	01/01/05 through 06/30/05
	 	 	4.50:1.00	 
	07/01/05 through 06/30/06
	 	 	4.00:1.00	 
	07/01/06 and thereafter
	 	 	3.50:1.00	 

          10.6.2 Senior Secured Leverage Ratio. Not permit the Senior Secured
Leverage Ratio to exceed the ratio set forth opposite such period under the
heading “Required Ratio” in the table below.

	 	 	 	 	 
	Period	 	Required Ratio
	
	 	

	Amendment Effective Date through 12/31/02
	 	 	3.25:1.00	 
	01/01/03 through 06/30/03
	 	 	3.00:1.00	 
	07/01/03 through 12/31/03
	 	 	2.75:1.00	 
	01/01/04 through 12/31/04
	 	 	2.50:1.00	 
	01/01/05 and thereafter
	 	 	2.25:1.00	 

          10.6.3 Interest Coverage Ratio. Not permit the Interest Coverage Ratio to
be less than the ratio set forth opposite the applicable period below as of any
Computation Period falling within such period.

	 	 	 	 	 
	Period	 	Required Ratio
	
	 	

	Amendment Effective Date through 06/30/03
	 	 	2.00:1.00	 
	07/01/03 through 06/30/04
	 	 	2.25:1.00	 
	07/01/04 through 12/31/05
	 	 	2.50:1.00	 
	01/01/06 through 06/30/06
	 	 	2.75:1.00	 
	07/01/06 and thereafter
	 	 	3.00:1.00	 

          10.6.4 Fixed Charge Coverage Ratio. Not permit the Fixed Charge Coverage
Ratio to be less than the ratio set forth opposite the applicable period below
as of any Computation Period falling within such period.

	 	 	 	 	 
	Period	 	Required Ratio
	
	 	

	Amendment Effective Date through 12/31/05
	 	 	1.05:1.00	 
	01/01/06 and thereafter
	 	 	1.15:1.00	 

          10.6.5 Computation of Financial Covenants. If at any time any change in
GAAP would affect the computation of any financial ratio or requirement set
forth in any Loan Document, and any Borrower

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or the Required Lenders shall so
request, the Administrative Agent, the Lenders and the Borrowers shall
negotiate in good faith to amend such ratio or requirement to preserve the
original intent thereof in light of such change in GAAP (subject to the
approval of the Required Lenders); provided that, until so amended, (a) such
ratio or requirement shall continue to be computed in accordance with GAAP
prior to such change therein and (b) the Borrowers shall provide to the
Administrative Agent and the Lenders financial statements and other documents
required under this Agreement or as reasonably requested hereunder setting
forth a reconciliation between calculations of such ratio or requirement made
before and after giving effect to such change in GAAP.

          10.7 Limitations on Debt. Not, and not permit any Restricted Subsidiary
to, create, incur, assume or suffer to exist any Debt, except:

          (a)  the Obligations;

          (b)  Debt of any Borrower or Restricted Subsidiary Obligors to any other
Borrower or other Restricted Subsidiary Obligors; provided that:

		
	 	     (i) any such Debt shall be either (x) incurred in connection with
cash management activities, or (y) evidenced by a Subsidiary Note which
shall have been delivered and assigned or pledged to the Administrative
Agent; and
	 
	 	     (ii) to the extent such Debt is owed by one of the Borrowers, the
holder of such Debt has previously executed and delivered to the
Administrative Agent a subordination agreement in form and substance
satisfactory to the Administrative Agent;

          (c)  Hedging Agreements entered into by the Borrowers;

          (d)  Guarantee Obligations in respect of any obligation of the Company or
any Restricted Subsidiary permitted under this Agreement (other than clauses
(j) and (m));

          (e)  Debt in respect of taxes, assessments or governmental charges to the
extent that payment thereof shall not at the time be required to be made in
accordance with Section 10.4;

          (f)  Debt outstanding on the Amendment Effective Date and listed on
Schedule 10.7 under the heading “Continuing Debt” with a principal amount not
exceeding $20,000,000;

          (g)  Debt of Telegraph under guaranties of printing equipment leases for
the Printing Joint Ventures not exceeding $65,000,000 in the aggregate at any
time outstanding;

          (h)  (A) Debt hereafter incurred by Restricted Subsidiaries in connection
with Purchase Money Liens, (B) Acquisition Debt and (C) unsecured Debt not
otherwise permitted under this Section 10.7,
provided that the aggregate
principal amount of all such Debt of the Company and its Restricted
Subsidiaries under this clause (h) shall not exceed $25,000,000 at any one time
outstanding;

          (i)  Debt of the Company in a principal amount not to exceed $300,000,000
under the New High Yield Notes;

          (j)  unsecured Debt of the Company which has amounts, maturities,
amortization, yield, covenants, defaults and other terms acceptable to the
Administrative Agent and the Required Lenders;

          (k)  Debt incurred by Telegraph to purchase the shares in West Ferry not
owned by Telegraph as of the Amendment Effective Date; provided that the
Company has first requested such Debt pursuant

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to the Incremental Facility, if
available on terms reasonably agreeable to the Company, provided,
further, that
if such Debt is not incurred under the Incremental Facility, such Debt shall
mature at least six months after the final maturity of the Term B Loans and the
holder of such Debt has entered into an inter-creditor agreement reasonably
satisfactory to the Administrative Agent;

          (l)  debt of Restricted Subsidiaries which are not Restricted Subsidiary
Obligors pursuant to Section 10.10(d);

          (m)  unsecured Intercompany Debt outstanding on the Amendment Effective
Date and listed on Schedule 10.7 under the heading “Intercompany Debt”, as well
as unsecured Intercompany Debt of the Company to be incurred in the future;
provided that all such Debt described herein shall be subordinate to the
Secured Obligations pursuant to terms (including, without limitation, as to
covenants, defaults and other matters) acceptable to the Administrative Agent,
which terms, in any event, shall specify that no payment of principal or
interest may be made or scheduled with respect to any such Debt so long as any
Secured Obligations remain outstanding or any of the Lenders have any
commitment hereunder; and

          (n)  the Original Letters of Credit;

provided, however, that in any event, neither the Company nor any of its
Restricted Subsidiaries shall be entitled to create, incur or assume any Debt
permitted under this Section 10.7 if at such time an Unmatured Event of Default
or Event of Default shall have occurred and be continuing or would result
therefrom.

          10.8 Liens. Not, and not permit any Restricted Subsidiary to, create or permit to
exist any Lien on any of its real or personal properties, assets or rights of
whatsoever nature (whether now owned or hereafter acquired), except:

          (a)  Liens for taxes or other governmental charges not at the time
delinquent or thereafter payable which arise by operation of law without
penalty or being contested in good faith by appropriate proceedings and, in
each case, for which it maintains adequate reserves in accordance with GAAP
(and in the case of the U.K. Subsidiaries, generally accepted accounting
principles in the United Kingdom) provided that any such Liens with respect to
Canadian taxes do not attach to any property of the Company or its Restricted
Subsidiaries;

          (b)  Liens arising in the ordinary course of business constituting (i)
Liens of carriers, warehousemen, mechanics and materialmen and other similar
Liens imposed by law and (ii) Liens incurred in connection with worker’s
compensation, unemployment compensation and other types of social security
(excluding Liens arising under ERISA)) or in connection with surety and appeal
bonds, bids, performance bonds and similar obligations for sums not overdue or
being contested in good faith by appropriate proceedings and not involving any
deposits or advances or borrowed money or the deferred purchase price of
property or services, and, in each case, for which it maintains adequate
reserves, or Liens similar to the Liens described in the foregoing clauses (i)
and (ii) and owing in the ordinary course of business;

          (c)  Liens identified on Schedule 10.8;

          (d)  any Lien arising in connection with the acquisition, construction or
improvement of tangible personal property by the Company, or a Restricted
Subsidiary and attaching only to the property being acquired, constructed or
improved, if the Lien and the Debt secured thereby does not exceed 100% of the
cost of such acquisition, construction or improvement (subject to the
limitations of Section 10.7(h)) (such Lien being a “Purchase Money Lien”);

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          (e)  attachments, judgments and other similar Liens, for sums not exceeding
$5,000,000 ($3,000,000 with respect to any single Restricted Subsidiary)
(excluding any portion thereof which is covered by insurance so long as the
insurer is likely to be able to pay and reasonably acceptable in the judgment
of the Administrative Agent) arising in connection with court proceedings,
provided the execution or other enforcement of such Liens is effectively stayed
and claims secured thereby are being actively contested in good faith and by
appropriate proceedings and have been bonded off or for which adequate reserves
are maintained;

          (f)  easements, party wall agreements, rights of way, restrictions, minor
defects or irregularities in title and other similar Liens not interfering in
any material respect with the ordinary conduct of the business of the Company
and its Restricted Subsidiaries taken as a whole;

          (g)  leases or subleases granted by the Company or any Restricted
Subsidiary in the ordinary course of its business;

          (h)  extensions, renewals or replacements of any Lien permitted by the
foregoing provisions of this Section 10.8, but only if the principal amount of
the Debt secured thereby immediately prior to such extension, renewal or
replacement is not increased and such Lien is not extended to any other
property;

          (i)  Liens pursuant to the Subsidiary Security Agreements;

          (j)  Liens in favor of the Administrative Agent for the benefit of the
Lenders; and

          (k) 
Liens securing Debt permitted pursuant to
Section 10.7(k), provided
that such Liens are limited to the assets of West Ferry purchased or improved
with the proceeds of such Debt.

          10.9 Limitation on Restricted Payments. (a) Not, and not permit any
Restricted Subsidiary to, directly or indirectly:

		
	 	     (i) declare or pay any dividend or make any other distribution or
payment on or in respect of the Company’s Capital Stock, or make any
payment or other distribution to (including dividends or distributions of
the Capital Stock of any Restricted Subsidiary), or make any other
payment to the direct or indirect holders (in their capacities as such)
of the Company’s Capital Stock (other than dividends or distributions
payable in shares of the Company’s Capital Stock or in options, warrants
or other rights to acquire such Capital Stock);
	 
	 	     (ii) purchase, redeem or otherwise acquire or retire for value any
Capital Stock of the Company or any Capital Stock of any Affiliate of the
Company (other than Capital Stock of any Wholly Owned Restricted
Subsidiary that is a Restricted Subsidiary Obligor or Capital Stock of a
Person that, immediately following such repurchase, will become a Wholly
Owned Restricted Subsidiary that is a Restricted Subsidiary Obligor or
other rights to acquire such Capital Stock);
	 
	 	     (iii) make any principal or interest payment on, or repurchase,
redeem, defease, retire or otherwise acquire for value, any Intercompany
Debt, except as specifically permitted under the terms of the
Subordination Agreement applicable thereto;
	 
	 	     (iv) make any principal payment on, or repurchase, redeem, defease,
retire or otherwise acquire for value, prior to the scheduled date
thereof (as scheduled on the Amendment Effective Date) any other Debt
outstanding as of the Amendment Effective Date (other than the Facilities
and any Debt of any Restricted Subsidiary Obligor that is not a Borrower
to any 

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	 	Borrower or other Restricted Subsidiary Obligor outstanding as of
the Amendment Effective Date) or any subordinated Debt;
	 
	 	     (v) declare or pay any dividend or distribution on any Capital Stock
of any Restricted Subsidiary to any Person, other than any such dividend
or distribution:

		
	 	     (A) on Capital Stock of a Restricted Subsidiary held by the
Company or any of its Wholly Owned Restricted Subsidiaries, or
	 
	 	     (B) on Capital Stock of a Restricted Subsidiary held by any
other Person (other than an Affiliate of the Company or an
Affiliate of such Affiliate),

          in each case, made on a pro rata basis consistent with the ownership
interests in such Capital Stock to the owners of such Capital Stock, provided
that no Unmatured Event of Default or Event of Default shall have occurred and
be continuing;

		
	 	     (vi) incur, create or assume any guarantee of Debt of any Affiliate
of the Company, except as otherwise permitted hereunder;
	 
	 	     (vii) pay any Management Fees; or
	 
	 	     (viii) designate any Restricted Subsidiary as an Unrestricted
Subsidiary;

(any of the payments described in paragraphs (i) through (vii) above, other
than any such action that is a Permitted Payment (as defined below),
collectively, “Restricted Payments”).

          (b) Notwithstanding the foregoing clause (a), provided that no Unmatured
Event of Default or Event of Default shall have occurred and be continuing or
would reasonably be expected to result from the payment or making thereof, the
Company and its Restricted Subsidiaries may make the following distributions
and investments (“Outside Payments”):

		
	 	     (i) distributions to Hollinger International and to any Affiliate of
Hollinger International, including payments with respect to Intercompany Debt;
	 
	 	     (ii) investments in Unrestricted Subsidiaries and unconsolidated entities;
	 
	 	     (iii) principal payments, repurchases, redemptions, defeasances,
retirements or other acquisitions for value of Debt under the New High Yield
Notes prior to the scheduled maturity date thereof; and
	 
	 	     (iv) Investments in any Restricted Subsidiary which is not a Restricted
Subsidiary Obligor in the form of capital contributions or loans and advances
(“Restricted Subsidiary Investments”);

provided that such Outside Payments shall not exceed in the aggregate an amount
equal to the applicable percentage of Excess Cash Flow set forth below (at any
time, and as reduced from time to time through utilization, the “Excess Cash
Flow Basket”):

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	Net Leverage Ratio	 	% of Excess Cash Flow
	
	 	

	* 5.00
	 	 	25	%
	*
4.00 but < 5.00
	 	 	50	%
	<4.00
	 	 	75	%

	*	 	greater than or equal to

provided, further, however, that (A) Restricted Subsidiary Investments may be
made using the New Investments Basket or the Excess Cash Flow Basket; (B)
Restricted Subsidiary Investments made using the New Investments Basket shall
not reduce the Excess Cash Flow Basket; and (C) all Restricted Subsidiary
Investments shall reduce the New Investments Basket prior to reducing the
Excess Cash Flow Basket.

For purposes of determining compliance with this Section 10.9(b):

          (i) compliance shall be determined at the time of making of the Outside
Payment by determining the Net Leverage Ratio and Excess Cash Flow for the last
four Fiscal Quarters for which financial reports are available, and determining
aggregate Outside Payments (including the proposed new Outside Payment on a pro
forma basis) for the current Fiscal Quarter and the last three Fiscal Quarters
for which financial reports are available; and

          (ii)  during the first year following the Amendment Effective Date,
compliance shall be determined at the time of making of each Outside Payment by
determining the Excess Cash Flow as follows:

		
	 	     (A) after the end of the first Fiscal Quarter after the Amendment
Effective Date for which financial reports are available , but prior to
the end of the second Fiscal Quarter after the Amendment Effective Date for which financial reports are available,
using the financial information for such first Fiscal Quarter;
	 
	 	     (B) after the end of the second Fiscal Quarter after the Amendment
Effective Date for which financial reports are available, but prior to
the end of the third Fiscal Quarter after the Amendment Effective Date
for which financial reports are available, using the financial
information for such first and second Fiscal Quarters;
	 
	 	     (C) after the end of the third Fiscal Quarter after the Amendment
Effective Date for which financial reports are available, but prior to
the end of the fourth Fiscal Quarter after the Amendment Effective Date
for which financial reports are available, using the financial
information for such first, second, and third Fiscal Quarters; and
	 
	 	     (D) after the end of the fourth Fiscal Quarter after the Amendment
Effective Date for which financial reports are available, but prior to
the end of the fifth Fiscal Quarter after the Amendment Effective Date
for which financial reports are available, using the financial
information for such first, second, third and fourth Fiscal Quarters; and

in each case aggregate Outside Payments (including the proposed Outside Payment
on a pro forma basis) shall be determined on a cumulative basis since the
Amendment Effective Date.

          Notwithstanding anything in this Section 10.9 to the contrary, provided that no
Unmatured Event of Default or Event of Default shall have occurred and be
continuing or would reasonably be expected to result from the payment or making
thereof, the Company and its Restricted Subsidiaries may make

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Outside Payments of the type described in Section 10.9(b)(ii) (such Outside Payments being
“Special Outside Payments”) in an aggregate amount not to exceed $5,000,000 (as
reduced from time to time through utilization or other reductions, the “Special
Outside Payments Basket”); provided, however, that (x) the aggregate amount of
such Special Outside Payments shall reduce the Excess Cash Flow Basket, (y) any
utilization or other reduction of the Excess Cash Flow Basket shall reduce the
Special Outside Payments Basket, and (z) the Special Outside Payments Basket
shall be permanently reduced to zero at the time at which the sum of (i) the
Excess Cash Flow Basket and (ii) the aggregate amount of all Outside Payments
made since Amendment Effective Date (other than Special Outside Payments)
equals or exceeds $5,000,000.

          (c)  Notwithstanding the foregoing, so long as no Unmatured Event of
Default or Event of Default has occurred and is continuing or would result
therefrom, the foregoing provisions will not prohibit the following actions
(such payments being referred to as “Permitted Payments”):

		
	 	     (i)  payments under the Tax Indemnity Agreements;
	 
	 	     (ii)  tax payments pursuant to the Tax Allocation Agreement to the
extent that the aggregate amount of such payments do not exceed the
aggregate amount of the tax payments that the Company and its Restricted
Subsidiaries would have been required to make if they alone constituted a
single consolidated tax group;
	 
	 	     (iii)  payments of Management Fees in an amount not to exceed the
greater of (x) $22,000,000 or (y) 2.5% of total revenue of the Borrowers
and their Restricted Subsidiaries for any Fiscal Year;
	 
	 	     (iv)  incurring, creating or assuming any guarantee of Debt of the
Company or any Restricted Subsidiary permitted under
Section 10.7;
	 
	 	     (v)  (A) distributions to Hollinger International and to any
Affiliate thereof not a Restricted Subsidiary and (B) investments in
Unrestricted Subsidiaries and unconsolidated entities with the proceeds
of (x) the amount of dividends or other distributions received from
Unrestricted Subsidiaries after the Amendment Effective Date and (y) the
sale of Capital Stock of Unrestricted Subsidiaries after the Amendment
Effective Date; and
	 
	 	     (vi)  redemptions of the 1997 Senior Subordinated Notes and the 1996
Senior Subordinated Notes as provided herein.

          10.10  Investments. Not, and not permit any Restricted Subsidiary to,
make, incur, assume or suffer to exist any Investment in any other Person,
except:

          (a)  Investments existing on the Amendment Effective Date and identified in
Schedule 10.10;

          (b)  Cash Equivalent Investments;

          (c)  Investments by the Company in Restricted Subsidiary Obligors (subject
to the limitation in Section 10.7(b)) or by any Restricted Subsidiary Obligor
in the Company or any other Restricted Subsidiary Obligor, in the form of
contributions to capital or loans or advances; provided that, (i) any loans are
made in compliance with Section 10.7, and (ii) immediately before and after
giving effect to such Investment, no Unmatured Event of Default or Event of
Default shall have occurred and be continuing;

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          (d)  Investments by the Company or any Restricted Subsidiary in any
Restricted Subsidiary which is not a Restricted Subsidiary Obligor in the form
of capital contributions or loans and advances (i) that are existing on the
date hereof, or (ii) that, together with all Investments permitted under
Section 10.10(k) in cases where the entity in which the Investment is made is
not a Restricted Subsidiary Obligor, do not exceed $25,000,000 (such amount, as
reduced from time to time, being the “New Investments Basket”) from and after
the Amendment Effective Date;

          (e)  loans or advances to officers and employees of the Company or of any
Restricted Subsidiary for travel or other ordinary business expenses not in
excess of $250,000 in the aggregate at any time;

          (f)  extensions of credit in the nature of accounts receivable or notes
receivable arising from the sale of goods and services in the ordinary course
of business;

          (g)  shares of stock, obligations or other securities received in
settlement of claims arising in the ordinary course of business;

          (h)  Investments (i) by Telegraph to consummate the purchase of the shares
in West Ferry not owned by Telegraph on the Amendment Effective Date which, to
the extent financed with Debt, shall be consistent with Section 10.7(k) and
(ii) constituting Debt of Telegraph under guaranties permitted under Section
10.7 (g);

          (i)  Investments in a new joint venture entity to be created for the
purpose of the CST Real Estate Transactions, provided that such Investments
shall not exceed the contribution of the CST Real Estate and cash contributions
in an aggregate amount of $2,000,000;

          (j)  Investments permitted under Section 10.9(b)(ii); and

          (k)  other Investments (subject to the limitations specified in Section
10.10(d)) by the Company or any Restricted Subsidiary in the Newspaper Business
that result in the Company and the Restricted Subsidiaries having, or
continuing to have, a majority interest in the applicable entity in which such
Investment is made and such entity shall be a Restricted Subsidiary; provided
that the Company shall, and shall cause each Restricted Subsidiary to, grant a
Lien in favor of the Lenders in each such Investment and to execute such
documents, take such action and provide such opinions of counsel as the
Administrative Agent deems necessary or advisable to create and perfect such
Liens and further provided that immediately before and after giving effect to
such Investment, no Unmatured Event of Default or Event of Default shall have
occurred and be continuing.

          Notwithstanding any provision in this Section 10.10, neither the Company nor
any of its Restricted Subsidiaries shall make any Investments in any Restricted
Subsidiaries which are not formed in a jurisdiction which permits such
Restricted Subsidiary to provide Guarantees and/or Collateral Documents on not
less favorable a basis than that provided by a U.K. Subsidiary unless otherwise
agreed to by the Administrative Agent.

          10.11 Mergers, Consolidations, Sales, Acquisitions. Not, and not permit
any Restricted Subsidiary to, be a party to any merger, consolidation or Asset
Sale, or to purchase or otherwise acquire all or substantially all of the
assets or any stock of any class of, or any partnership or joint venture
interest in, any other Person, except for

          (a) (i) any such merger or consolidation, sale, transfer,
conveyance, lease or assignment of or by any Wholly Owned Restricted
Subsidiary into, with or to any other Wholly Owned Restricted Subsidiary,
provided such Subsidiaries are incorporated in the same country and are

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Restricted Subsidiary Obligors (or the surviving Subsidiary is a
Restricted Subsidiary Obligor) and (ii) any such merger of the Company
under Section 15.13;

          (b) any such purchase or other acquisition by the Company or any
Wholly Owned Restricted Subsidiary of the assets or stock of any Wholly
Owned Restricted Subsidiary;

          (c) Asset Sales and Asset Swaps provided (i) Asset Sales and Asset
Swaps are (x) on an arm’s-length basis for fair market value and (y) do
not result in any payments (whether in the form of non-competition
payments, fees or otherwise) to any Affiliate other than the Company or a
Restricted Subsidiary Obligor unless consented to by the Required
Lenders, (ii) all action required under Section 10.18, or otherwise
necessary to perfect for the benefit of the Administrative Agent security
interests and/or charges in all assets obtained in connection with any
such Asset Swap, shall have been taken, and (iii) no Event of Default or
Unmatured Event of Default has occurred and is continuing or would result
therefrom and provided further, no Asset Sale of accounts receivable
(except as part of the Newspaper Business being sold) shall be permitted
and no Asset Sale or Asset Swap shall be permitted if (x) on a cumulative
basis, the sum of (1) the Negative Trade Differential plus (2) the
Contributed Cash Flow of all assets proposed to be sold, swapped or
otherwise transferred and all assets sold, swapped or otherwise
transferred since the Amendment Effective Date, in each case for the
Computation Period preceding the date of the Asset Sale or Asset Swap
contributed more than 5% of Operating Cash Flow of the Company and its
Restricted Subsidiaries, as the case may be, for such period or (y) in
the case of Asset Swaps, the applicable Obligor has not complied with the
provisions of Section 10.11(d);

          (d) Acquisitions (including Asset Swaps) provided (i) no Event of
Default or Unmatured Event of Default has occurred and is continuing or
would result therefrom, (ii) the applicable Borrower complies with
Sections 6, 10.10(k), 10.18 and 10.27, (iii) the applicable Obligor
pledges and assigns to the Lenders all assets, property or business
acquired promptly after the date of such Acquisition, and (iv) five
Business Days prior to any Acquisition having a purchase price in excess
of $25,000,000 or any Asset Swap having an implied purchase price of
$75,000,000 or more, the Company shall have provided to the
Administrative Agent and the Lenders a certificate pursuant to a form
acceptable to the Administrative Agent acting reasonably setting forth
(A) a complete description of and financial information (including
financial projections) relating to such Acquisition or Asset Swap, (B)
the total purchase price of such Acquisition or Asset Swap and the manner
of payment thereof, (C) a calculation of the covenants in Section 10.6
before and after giving effect to such Acquisition or Asset Swap,
demonstrating compliance with such covenants, and (D) certifying as to
the matters in clauses d(i) and (ii); provided, however that Dormant
Subsidiaries and other Restricted Subsidiaries which are not Restricted
Subsidiary Obligors shall not make any Acquisition or Asset Swap; and

          (e) Investments permitted under Section 10.10 (other than under
Section 10.10(k)).

          10.12 Use of Proceeds. Not use or permit any proceeds of any Credit
Extension to be used, either directly or indirectly, for the purpose, whether
immediate, incidental or ultimate, of “purchasing or carrying” any Margin
Stock. The Borrowers will use the proceeds of Credit Extensions (together with
proceeds of the New High Yield Notes in the case of clauses (b) and (d) below):

          (a) in the case of Letters of Credit, for working capital and
general corporate purposes;

          (b) to finance a distribution to Hollinger International on the
Amendment Effective Date which shall be used immediately (or so long as
no defaults or unmatured defaults arise under any 

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indebtedness of
Hollinger International as a result of any such delay, as soon as
commercially possible) to repay existing indebtedness of Hollinger
International (including, without limitation, the Total Return Equity
Swap and the Trilon Financing) on terms satisfactory to the
Administrative Agent, acting reasonably, and after applying such funds
for the payment in full of all such indebtedness (together with any
expenses related thereto), for general corporate purposes;

          (c) to make
Restricted Payments permitted under Section 10.9;

          (d) to immediately deposit funds to redeem and/or purchase the 1997
Senior Subordinated Notes, and the 1996 Senior Subordinated Notes;

          (e) to fund ongoing Capital Expenditures, working capital and
permitted Acquisitions;

          (f) to pay fees and expenses relating to the Facilities and the
transactions related thereto; and

          (g) for working capital needs (including interest on Debt) and
general corporate purposes of the Company and its Restricted Subsidiaries
(subject to any limitations hereunder, including with respect to any
availability to the Borrowers).

          10.13 Transactions with Affiliates. Not, and not permit any Restricted Subsidiary to, enter into or cause,
suffer or permit to exist any transaction, arrangement or contract with any of
its other Affiliates (other than the Company or any other Restricted
Subsidiary) which is on terms which are less favorable than are obtainable from
any Person which is not one of its Affiliates, other than those expressly
permitted hereunder, and those existing on the Amendment Effective Date and set
forth on Schedule 10.13. Without limiting the foregoing, the Company will not,
and will not permit any Restricted Subsidiary to, pay any management,
consulting or similar fee to any Affiliate other than (a) Management Fees to
the extent permitted under Section 10.9(b) or (c)(iii), and (b) any such
payment from the Company or a Restricted Subsidiary to the Company or another
Wholly Owned Restricted Subsidiary.

          10.14 Employee Benefit Plans. Maintain, and cause each Restricted
Subsidiary to maintain, each Pension Plan in compliance in all material
respects with all applicable requirements of law and regulations.

          10.15 Environmental Covenants.

          10.15.1 Environmental Response Obligation. (a) Comply, and cause each
Subsidiary to comply, with any applicable federal, State or provincial judicial
or administrative order requiring the performance at any real property owned,
operated or leased by the Company or any Subsidiary (or in which such Person
has a direct or indirect interest) of activities in response to the release or
threatened release of a Regulated Material, except for the period of time that
the Company or such Subsidiary is diligently in good faith contesting such
order; (b) notify the Administrative Agent within ten days of the receipt of
any written claim, demand, proceeding, action or notice of liability by any
Person arising out of or relating to the release or threatened release of a
Regulated Material which is reasonably likely to give rise to cleanup or
remediation liabilities under Environmental Laws; and (c) notify the
Administrative Agent within ten days of any release, threat of release, or
disposal of Regulated Material reported by the Company or any Subsidiary to any
governmental or regulatory authority at any real property owned, operated, or
leased by the Company or any Subsidiary which are reasonably likely to give
rise to cleanup or remediation liabilities under Environmental Laws.

          10.15.2 Environmental Liabilities. (a) Comply, and cause each Subsidiary
to comply, in all material respects with all Environmental Laws the
noncompliance with which would be reasonably likely 

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to have a Material Adverse
Effect; (b) without limiting clause (a), not commence disposal of any Regulated
Material into or onto any real property owned, operated or leased by the
Company or any Subsidiary in violation of any Environmental Law; and (c)
without limiting clause (a), not allow any Lien imposed pursuant to any law,
regulation or order relating to Regulated Materials or the disposal thereof to
remain on any real property owned, operated or leased by the Company or any
Subsidiary.

          10.16 Unconditional Purchase Obligations. Not, and not permit any
Restricted Subsidiary to, enter into or be a party to any contract for the
purchase of materials, supplies or other property or services, if such contract
requires that payment be made by it regardless of whether or not delivery is
ever made of such materials, supplies or other property or services.

          10.17 Inconsistent Agreements. Not, and not permit any Restricted
Subsidiary to, enter into any agreement containing any provision which would be
violated or breached by any borrowing by any Borrower hereunder or by the
performance by the Company or any Restricted Subsidiary of any of its
obligations hereunder or under any other Loan Document.

          10.18 Further Assurances. Take, and cause each Restricted Subsidiary to
take, such actions as the Administrative Agent may reasonably request from time
to time (including the execution and delivery of guaranties, security
agreements, pledge agreements, stock powers, financing statements and other
documents, the filing or recording of any of the foregoing, and the delivery of
stock certificates and other collateral with respect to which perfection is
obtained by possession) as the Administrative Agent shall reasonably require to
give effect to the provisions hereof or of any Loan Document, and to create or
perfect any of the security interests contemplated hereunder or thereunder,
including, without limitation, to ensure that (a) the obligations of the
Company (including its obligations under Section 14) hereunder and under the
other Loan Documents are secured by 65% of the issued and outstanding Capital
Stock of DTH and Palestine Post, 50% of the issued and outstanding Capital
Stock of JPEH, 80% of the issued and outstanding Capital Stock of STDS, 100% of
the Capital Stock of all other U.S. Subsidiaries and HUKH and guaranteed by
HUKH, TAHL and all U.S. Subsidiaries (other than STDS) (including, promptly
upon the acquisition or creation thereof, any U.S. Subsidiary created or
acquired after the date hereof), 100% of all Debt owing to Hollinger
International or any of its U.S. Subsidiaries, and substantially all assets of
each U.S. Subsidiary, (b) the obligations of each U.S. Subsidiary under its
Subsidiary Note (other than any Subsidiary Notes from U.S. Subsidiaries which
are party to the Company Security Agreement) are secured by substantially all
of the assets of such U.S. Subsidiary (other than real property), and (c) the
obligations of Telegraph and FDTH hereunder and under the other Loan Documents
are (i) secured by (x) (A) all the Collateral described in Section 10.18(a),
and (B) 100% of the Capital Stock and Subsidiary Notes of HUKH and the U.K.
Subsidiaries (which do not include TAHL and other than UKMAX Limited, Hollinger
Telegraph New Media Limited, Telegraph (British) Limited and Electronic
Telegraph Limited), and (y) substantially all the assets (other than real
property and the capital stock of Trafford Park and Paper Purchase & Management
Limited) of HUKH and each of their Restricted Subsidiaries (other than Dormant
Subsidiaries, Hollinger Telegraph New Media Limited, Hollinger Telegraph New
Media Holdings Limited, Telegraph Publishing Limited, and The Spectator (1828)
Limited) and (ii) guaranteed by each other Borrower and such Borrower’s
Restricted Subsidiaries (other than Dormant Subsidiaries, Hollinger Telegraph
New Media Limited, Hollinger Telegraph New Media Holdings Limited, The
Spectator (1828) Limited, Telegraph Publishing Limited, and the Israeli
Subsidiaries) subject, in each case, to such exceptions as the Administrative
Agent or the Required Lenders may from time to time permit. Notwithstanding
the foregoing, the Administrative Agent and the Lenders shall not be entitled
to exercise their rights with respect to the capital stock of West Ferry
(unless West Ferry has become a Wholly Owned Restricted Subsidiary) until such
time as the Obligations have been accelerated in accordance with Section 12.2.

          10.19 Amendments to Certain Documents. Not, and not permit any Restricted
Subsidiary to, make or agree to any amendment to or modification of, or waive
any of its rights under, any of the terms

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of (a) the documents relating to the
1997 Senior Notes or, once executed, Debt incurred under Section 10.7(j)
(except to the extent that such amendment or modification would extend the
maturities or delete covenants), (b) the Tax Allocation Agreement, (c) any Tax
Indemnity Agreement, (d) the Subsidiary Notes or the Subsidiary Security
Agreements without the consent of the Administrative Agent, (g) the
Co-Operation Agreement dated June 23, 1992 between Hollinger Inc. and
Telegraph, (h) the Organic Documents of the Company or any Restricted
Subsidiary with respect to the Capital Stock (including designation of new
series of shares or imposing restrictions on the transfer of Capital Stock)
without the consent of the Administrative Agent, (i) the Organic Documents of
the Printing Joint Ventures without the consent of the Administrative Agent, or
(j) the New High Yield Notes or any of the documentation relating thereto in
any manner that
would (i) increase the interest rate on the New High Yield Notes or change
(to earlier dates) the dates upon which principal and interest are due thereon;
(ii) alter the redemption or prepayment provisions thereof; (iii) alter the
covenants and events of default in a manner that would make such provisions
more onerous or restrictive to the Company or any Restricted Subsidiary; or
(iv) otherwise increase the obligations of the Company or any Restricted
Subsidiary in respect of the New High Yield Notes.

          10.20 Conduct of Business. Not, and not permit any Restricted Subsidiary
to, engage in any business other than the Newspaper Business; provided that
such Investments in any event must be made in accordance with Section 10.10(k).

          10.21 Limitations on Sale and Leaseback Transactions. Not, and not permit
any Restricted Subsidiary to, enter into any arrangement with any Person
providing for the leasing by the Company or any Restricted Subsidiary of any
real or tangible personal property, which property has been or is to be sold or
transferred by the Company or such Restricted Subsidiary to such Person in
contemplation of such leasing.

          10.22 Tax Allocation Agreement. Not, and not permit any Restricted
Subsidiary to, enter into any tax sharing or similar agreement or arrangement,
other than (a) the Tax Allocation Agreement and (b) the Tax Indemnity
Agreements.

          10.23 Fiscal Year. Not, and not permit any Restricted Subsidiary to,
change its Fiscal Year.

          10.24 Holding Company Status. Not permit (a) JPEH or Palestine Post to
own any Subsidiaries other than the Subsidiaries owned by such Person on the
Amendment Effective Date, and (b) unless such Person has executed the U.K.
Guaranty and the U.K. Security Agreement, Hollinger Telegraph New Media
Holdings Limited, Hollinger Telegraph New Media Limited or The Spectator (1828)
Limited to own any assets other than Newspaper Businesses owned on the
Amendment Effective Date

          10.25 Limitation on Dividends and Other Payment Restrictions Affecting
Restricted Subsidiaries. Not, and not permit any of its Restricted
Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to
exist or become effective any encumbrance or restriction on the ability of any
Restricted Subsidiary to (a) pay dividends or make any other distribution on
its Capital Stock to the Company or any other Restricted Subsidiary, (b) pay
any Debt owed to the Company or any other Restricted Subsidiary, (c) make any
Investment in the Company or (d) transfer any of its properties or assets to
the Company or any Restricted Subsidiary, except (i) any encumbrance or
restriction, with respect to a Restricted Subsidiary that is not a Restricted
Subsidiary of the Company on the Amendment Effective Date, in existence at the
time such Person becomes a Restricted Subsidiary of the Company and not
incurred in connection with, or in contemplation of, such Person becoming a
Restricted Subsidiary and the terms of such restrictions are acceptable to the
Administrative Agent, and (ii) customary provisions restricting subletting or
assignment of any lease governing a leasehold interest of the Company or any
Restricted Subsidiary.

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          10.26 Designation and Ownership of Subsidiaries. Not designate any
Restricted Subsidiary as an Unrestricted Subsidiary or any Unrestricted
Subsidiary as a Restricted Subsidiary under this Agreement.

          10.27 New Restricted Subsidiaries, Investments and Acquisitions. As soon
as available and in any event within thirty (30) days after the date of any
Acquisition or Investment or the formation of any new Restricted Subsidiary of
the Company or any of its Restricted Subsidiaries, the Company and its
Restricted Subsidiaries, as appropriate, shall, consistent with Section 10.18,
(a) if applicable, cause such Restricted Subsidiary to execute and deliver (i)
a counterpart of the applicable Security Agreement and (ii) a counterpart of
the applicable Guaranty; (b) pledge and assign to the Administrative Agent for
the benefit of the Lenders each Subsidiary Note and all of the issued and
outstanding shares of Capital Stock or other instruments or securities
evidencing ownership of such Restricted Subsidiary beneficially owned by the
Company or any of the Company’s Restricted Subsidiaries, as the case may be, as
additional collateral for the Obligations, to constitute part of the Collateral
and to be held by the Administrative Agent on behalf of the Lenders in
accordance with the terms of the applicable Pledge Agreement (together with
such stock powers, transfers, endorsements, allonges, instruments, financing
statements and other documentation as in the opinion of the Administrative
Agent are appropriate); and (c) provide evidence of necessary authorizations
and one or more opinions of counsel in form and substance reasonably
satisfactory to the Required Lenders which in the opinion of the Required
Lenders is appropriate with respect to such Acquisition, Investment or new
Restricted Subsidiary. Any such document or agreement executed or issued
pursuant to this Section 10.27 shall be a “Loan Document” for purposes of this
Agreement.

          10.28 Operating Leases. Not, and not permit any Restricted Subsidiary to,
create or suffer to exist any obligations for the payment of rent for any
property under lease or agreement to lease if the aggregate annual rental
payments for all such operating leases for the four Fiscal Quarters immediately
following such date of determination shall exceed $10,000,000 (exclusive of
payments under the guarantees of leases permitted under Section 10.7 (g)).

          SECTION
11 Conditions.

          11.1 Documentary Conditions to Amendment Effective Date. This Agreement
shall be and become effective on the date (the “Amendment Effective Date”) on
which the Company, Telegraph, FDTH, the Lenders and the Administrative Agent
shall have executed and delivered this Agreement and the Administrative Agent
shall have received (or, in the case of Section 11.1.12, the Administrative
Agent shall be satisfied that such conditions are met) all of the following,
each duly executed and dated the Amendment Effective Date (or such earlier date
as shall be satisfactory to the Administrative Agent) in form and substance
satisfactory to the Administrative Agent:

          11.1.1 Resolutions. Certified copies of resolutions of the Board of
Directors (and in the case of FTDH or Telegraph, their shareholders) of each
Borrower authorizing or (save in the case of FTDH or Telegraph) ratifying the
execution, delivery and performance by each Borrower of this Agreement and the
other Loan Documents to which each Borrower is a party and certified copies of
resolutions of the Board of Directors (and, in the case of U.K. Obligors, their
shareholders) of each other Obligor required to execute a Loan Document
pursuant to this Section 11.1 authorizing or (save in the case of any U.K.
Obligor) ratifying the execution, delivery and performance by such Obligor
of the Loan Documents to which such Obligor is a party.

          11.1.2 Organic Documents. Certified copies of all Organic Documents and
good standing certificates (provided that such certificates are generally
provided in the applicable jurisdiction) in each jurisdiction in which
existence is necessary in the conduct of business, of each Borrower, each other

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Obligor, and each other
Subsidiary whose shares are to be pledged pursuant to a
Collateral Document, and Hollinger International.

          11.1.3 Incumbency and Signature Certificates. A certificate of the
Secretary or an Assistant Secretary or, in the case of any U.K. Obligor, a
director of each such Obligor, in each case, dated as of the Amendment
Effective Date, certifying the names of the officer or officers of such Obligor
authorized to sign the Loan Documents to which such Obligor is a party,
together with a sample of the true signature of each such officer (it being
understood that the Administrative Agent and each Lender may conclusively rely
on each such certificate until formally advised by a like certificate of any
changes therein).

          11.1.4 Consents, etc. Certified copies of all documents evidencing any
necessary corporate action, consents and governmental approvals (if any)
required for the execution, delivery and performance of the Loan Documents by
each Obligor.

          11.1.5 Guaranties. (a) The Hollinger International Guaranty, (b) the U.S.
Subsidiary Guaranty, and (c) a U.K. Subsidiary Guaranty executed by all the
U.K. Subsidiaries (other than Telegraph, FDTH, The Spectator (1828) Limited,
Hollinger Telegraph New Media Holdings Limited, Hollinger Telegraph New Media
Limited, UKMax Limited and Dormant Subsidiaries).

          11.1.6 Pledge Agreements. (a) The Hollinger International Pledge
Agreement; (b) the Company Pledge Agreement; and (c) a U.S. Pledge Agreement
covering the Preferred Stock of LHAT Corporation owned by certain U.K.
Subsidiaries; together, in the case of each Pledge Agreement, with the stock
certificates or instruments (including the Subsidiary Notes) to be pledged
thereunder and any necessary allonges, stock powers, and stock transfer forms
executed in blank and any necessary financing statements.

          11.1.7 Security Agreements. (a) The Company Security Agreement; and (b) a
U.K. Security Agreement executed by HUKH and its Restricted Subsidiaries (other
than The Spectator (1828) Limited, Hollinger Telegraph New Media Holdings
Limited and/or Hollinger Telegraph New Media Limited and Dormant Subsidiaries);
together, in the case of each Security Agreement, with such notices, financing
statements or other registration forms as are necessary to perfect the
Administrative Agent’s Lien on any Collateral granted under such Security
Agreement.

          11.1.8 Subordination Agreements. The Subsidiary Subordination Agreement.

          11.1.9 Control Agreements. A control agreement with respect to all
deposit accounts of the Company and its Restricted Subsidiaries held by each of
LaSalle National Bank and each other bank required for compliance with the
terms of each Loan Document, in each case in form and substance satisfactory to
the Administrative Agent.

          11.1.10 Process Agent Letter. A letter from Hollinger International, in
form and substance satisfactory to the Administrative Agent, dated the
Amendment Effective Date, or a date reasonably close to the Amendment Effective
Date, whereby Hollinger International acknowledges and accepts its appointment
by each of the Company and each of the other Obligors who have executed Loan
Documents, as agent for service of process.

          11.1.11 Compliance Certificate. A duly completed Compliance Certificate,
dated the date of the most recently ended Fiscal Quarter and signed by one of
the chief executive officer, the chief financial officer, the chief operating
officer or Vice President-Finance of the Company, containing a computation of
each of the financial ratios and restrictions set forth in Sections 10.6.1,
10.6.2 and 10.7 and to the effect that such officer has not become aware of any
Event of Default or Unmatured Event of Default that has occurred and is
continuing.

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          11.1.12 Capital Markets. Prior to the Amendment Effective Date, there
shall not have been any material disruption of or material adverse condition in
the financial, banking, or capital markets that, in the reasonable good faith
judgment of the Sole Lead Arranger, could materially impair the syndication of
the Facilities.

          11.1.13 No Material Adverse Effect. Evidence that, except as disclosed on
Schedule 9.5, since December 31, 2001, no event has occurred which,
individually or in the aggregate, has had or is reasonably likely to have a
Material Adverse Effect.

          11.1.14 Fees. The Borrowers shall have paid all fees (including, without
limitation, ticking fees) and expenses then due and payable to the
Administrative Agent, the Sole Lead Arranger or any Lender under this Agreement
(including, to the extent then billed, all amounts payable pursuant to Section
15.6).

          11.1.15 Opinions of Counsel. The opinions of (a) Mark S. Kipnis,
Corporate Counsel for certain Obligors, (b) Torys LLP, New York counsel for the
Obligors, and (c) Stikeman, Elliott, U.K. counsel to certain Obligors.

          11.1.16 U.K. Procedural Requirements. The Administrative Agent shall have
received a certificate dated as of the Amendment Effective Date from the chief
executive or chief financial officer or any director of each of the applicable
U.K. Subsidiaries, certifying that (a) as of the Amendment Effective Date, each
of such U.K. Subsidiaries has implemented and consummated the provisions and
procedures set out in Sections 155-158 of the Companies Act 1985 and (b) save
as disclosed, the granting of the security interest and the giving of the
guarantees contemplated by the Loan Documents do not constitute unlawful
financial assistance within the meaning of Section 151 of the Companies Act
1985, which certificate shall be reasonably acceptable in form, scope and
substance to the Administrative Agent and its counsel, together with evidence
satisfactory to the Administrative Agent (including net asset letters prepared
by the auditors of the U.K. Obligors addressed to the Administrative Agent in
substantially the form set out in Technical Release FRAG 26/94 issued on behalf
of the Institute of Chartered Accountants in England and Wales and on behalf of
itself, the Issuing Bank, the Administrative Agent and the Lenders copies of
the statutory declarations required to be provided by the directors of each
relevant U.K. Obligor and attached auditors’ reports or other documents
required to ensure that the requirements of Section 154 to 158 of the Companies
Act 1985 have been complied with so far as they relate to the Loan Documents
and compliance with the terms thereof) with respect thereto.

          11.1.17 Debt Rating. The Facilities shall be rated at least B+ and Ba2 by
Standard & Poor’s and Moody’s, respectively.

          11.1.18 Delivery of Redemption Notices. The Company shall have delivered
evidence satisfactory to the Administrative Agent, that prior to or
simultaneously with the initial Credit Extension, instructions shall have been
given to the applicable Trustee to deliver the required Redemption Notices to
redeem in whole the (a) 1996 Senior Subordinated Notes for an amount of
$257,847,969.98 and (b) the 1997 Senior Subordinated Notes for an amount of
$285,903,715.28, and the Company shall have given irrevocable instructions to
the Administrative Agent to deposit $543,751,685.26 of the Loans made on the
Amendment Effective Date directly with the applicable Trustees for redemption
of the 1996 Senior Subordinated Notes and the 1997 Senior Subordinated Notes.

          11.1.19 Issuance of New High Yield Notes. The Company shall have
delivered evidence, satisfactory to the Administrative Agent, that prior to or
contemporaneously with the Initial Credit Extension, the Company shall have
issued a minimum of $300,000,000 principal amount of unsecured notes on
standard and customary terms and conditions reasonably satisfactory to the
Administrative Agent, including without limitation, a maturity of at least one
year longer than the final maturity of the Term B Loans (the “New High Yield
Notes”).

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          11.1.20 Evidence of Payment of Hollinger International Indebtedness. The
Administrative Agent shall have received evidence satisfactory to it that prior
to or contemporaneously with the Initial Credit Extension, (a) the Total Return
Equity Swap shall be settled in full, and (b) the Trilon Financing shall be
repaid in full.

          11.1.21 No Default, etc. The following shall be true, and the
Administrative Agent shall have received a certificate dated as of Amendment
Effective Date from the Company to the following effect: (a) No Event of
Default or Unmatured Event of Default shall have occurred and be continuing or
would result from the making of a Credit Extension; (b) the warranties of the
Borrowers contained in Section 9 shall be true and correct as of the Amendment
Effective Date, with the same effect as though made on such date; and (c)
except as disclosed in Schedule 9.5, since December 31, 2001, no event
(including any labor controversy, litigation, arbitration, governmental
investigation or proceeding or environmental matter) shall have occurred which,
in the reasonable good faith judgment of the Required Lenders, may have a
Material Adverse Effect.

          11.1.22 Other. The Administrative Agent shall have received such other
documents as the Administrative Agent or any Lender may reasonably request.

          11.2 All Credit Extensions. The obligation of each Lender to make each
Loan and of the Issuing Bank to issue each Letter of Credit is subject to the
following further conditions precedent that:

          11.2.1 No Default, etc. The following shall be true, and each request for
a Credit Extension shall be deemed a representation and warranty to the effect
that: (a) No Event of Default or Unmatured Event of Default has occurred and
is continuing or will result from the making of such Credit Extension; (b) the
warranties of the Borrowers contained in Section 9 (excluding, in the case of
all Credit Extensions, other than Credit Extensions made on the Amendment
Effective Date, Sections 9.4, 9.5, 9.6, 9.8 and 9.15 through 9.17) are true and
correct as of the date of such requested Credit Extension, with the same effect
as though made on such date; and (c) except as disclosed in Schedule 9.5, since
December 31, 2001, no event (including any labor controversy, litigation,
arbitration, governmental investigation or proceeding or environmental matter)
has occurred which, in the reasonable good faith judgment of the Required
Lenders, has any reasonable likelihood of having a Material Adverse Effect.

          11.2.2 Confirmatory Certificate. If requested by the Administrative
Agent, the Administrative Agent shall have received a certificate dated the
date of such requested Credit Extension and signed by a duly authorized
representative of each Borrower as to the matters set out in clauses (a), (b)
and (c) of Section 11.2.1 (it being understood that each request by a Borrower
for a Credit Extension shall be deemed to constitute a warranty by the
Borrowers that the conditions precedent set forth in Section 11.2.1 will be
satisfied at the time of the making of such Credit Extension), together with
such other documents as the Administrative Agent or any Lender may reasonably
request in support thereof.

          SECTION
12 Events of Default and Their Effect.

          12.1 Events of Default. Each of the following shall constitute an Event
of Default under this Agreement:

          12.1.1 Non-Payment of the Loans, etc. Default in the payment when due of
the principal of any Loan; or default, and continuance thereof for three
Business Days, in the payment when due of any interest on any Loan, any
reimbursement obligation with respect to any Letter of Credit or any fee or
other amount payable by any Borrower hereunder or under any other Loan
Document.

          12.1.2 Default under Other Debt. (a) Default in the payment when due
(subject to any applicable grace period), whether by acceleration or otherwise,
of any other Debt of Hollinger

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International, any intermediate Subsidiary
between Hollinger International and the Company, the Company or any Restricted
Subsidiary, or (b) default in the performance or observance of any obligation
or condition (subject to any applicable grace period) with respect to any such
other Debt of Hollinger International, any intermediate Subsidiary between
Hollinger International and the Company, any Borrower, any Restricted
Subsidiary, or any other Obligor, if, in the case of either clause
(a) or (b)
above, the effect of such default is to permit the holder of such Debt to
accelerate the maturity of (or there is matured and unpaid) such other Debt
aggregating $5,000,000 ($3,000,000 with respect to any single Restricted
Subsidiary) or more.

          12.1.3 Other Material Obligations. Default in the payment when due,
whether by acceleration or otherwise, or in the performance or observance of,
any material obligation of, or condition agreed to by, the Company or any
Restricted Subsidiary with respect to any material purchase or lease of goods
or services (except only to the extent that the existence of any such default
is being contested by the Company or such Restricted Subsidiary in good faith
and by appropriate proceedings and appropriate reserves have been made in
respect of such default) but only if the aggregate liability of the Company and
the Restricted Subsidiaries in respect of all such purchases and leases so
affected shall exceed $5,000,000 ($3,000,000 with respect to any single
Restricted Subsidiary).

          12.1.4 Bankruptcy, Insolvency, etc. Hollinger International, any
intermediate Subsidiary between Hollinger International and the Company, any
Borrower, any Restricted Subsidiary or any other Obligor becomes insolvent or
generally fails to pay, or admits in writing its inability or refusal to pay,
debts as they become due; or Hollinger International, any intermediate
Subsidiary between Hollinger International and the Company, any Borrower, any
such Restricted Subsidiary or any other Obligor applies for, consents to, or
acquiesces in the appointment of a trustee, receiver, administrator, liquidator
or other custodian for Hollinger International, any intermediate Subsidiary
between Hollinger International and the Company, any Borrower, such Restricted
Subsidiary or such other Obligor or any property thereof, or makes a general
assignment for the benefit of creditors; or, in the absence of such
application, consent or acquiescence, a trustee, receiver, administrator,
liquidator or other custodian is appointed for Hollinger International, any
intermediate Subsidiary between Hollinger International and the Company, any
Borrower, any Restricted Subsidiary or any other Obligor or for a substantial
part of the property of any thereof and, in the case of any Person other than a
U.K. Subsidiary, is not discharged within 60 days; or any bankruptcy,
insolvency, reorganization, debt arrangement, or other case or proceeding under
any bankruptcy or insolvency law, or any dissolution, liquidation proceeding or
winding up (except the voluntary dissolution, not under any bankruptcy or
insolvency law, of a Restricted Subsidiary), is commenced in respect of
Hollinger International, any intermediate Subsidiary between Hollinger
International and the Company, any Borrower, any Restricted Subsidiary or any
other Obligor and if such case or proceeding is not commenced by Hollinger
International, any intermediate Subsidiary between
Hollinger International and the Company, any Borrower, such Restricted
Subsidiary or such other Obligor, it is consented to or acquiesced in by
Hollinger International, any intermediate Subsidiary between Hollinger
International and the Company, such Borrower, such Restricted Subsidiary or
such other Obligor, or, in the case of any such Person other than a U.K.
Subsidiary remains for 60 days undismissed; Hollinger International, any
intermediate Subsidiary between Hollinger International and the Company, any
Borrower, any Restricted Subsidiary or any other Obligor takes any corporate
action to authorize, or in furtherance of, any of the foregoing.

          12.1.5 Non-Compliance with Provisions of This Agreement. Failure by any
Borrower or any Restricted Subsidiary to comply with or to perform any covenant
set forth in Section 10.3, 10.5, 10.6, 10.7 through 10.13, 10.19, 10.26 or
10.27; failure by any Borrower or any Restricted Subsidiary to comply with or
to perform any covenant set forth in Section 10.18 and continuance of such
failure for five days after notice thereof to the Company from the
Administrative Agent or any Lender (or, if such failure cannot be cured with
reasonable diligence within said five day period, such longer period up to a
total of 60 days after notice thereof provided the Company promptly commences a
cure within such five day

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period and diligently pursues the same); failure by
any Borrower or any other Obligor to comply with or to perform any other
provision of this Agreement or any other Loan Document (and not constituting an
Event of Default under any of the other provisions of this Section 12) and
continuance of such failure for 30 days (or, if such failure cannot be cured
with reasonable diligence within said 30 day period, such longer period up to a
total of 60 days provided that the Company promptly commences a cure within
such 30 day period and diligently pursues the same).

          12.1.6 Warranties. Any warranty made by any Obligor herein or in any
other Loan Document is breached or is false or misleading in any material
respect, or any schedule, certificate, financial statement, report, notice or
other writing furnished by the Company or any other Obligor to the
Administrative Agent or any Lender is false or misleading in any material
respect on the date as of which the facts therein set forth are stated or
certified.

          12.1.7 Pension Plans. (a) Institution of any steps by the Company or any
other Person to terminate a Pension Plan if as a result of such termination any
Borrower or any Restricted Subsidiary could be required to make a contribution
to such Pension Plan, or could incur a liability or obligation to such Pension
Plan, in excess of $5,000,000; (b) a contribution failure occurs with respect
to any Pension Plan sufficient to give rise to a Lien under Section 302(f) of
ERISA or otherwise; or (c) the Company, any of its Subsidiaries or any ERISA
Affiliate is notified by the sponsor of a Multiemployer Plan that it has
incurred Withdrawal Liability to such Multiemployer Plan in an amount that,
when aggregated with all other amounts required to be paid to Multiemployer
Plans by the Company, its Subsidiaries or the ERISA Affiliates as Withdrawal
Liability (determined on the date of such notification) exceeds $5,000,000.

          12.1.8 Judgments. Final judgments which exceed an aggregate of $5,000,000
($3,000,000 with respect to any single Restricted Subsidiary) (excluding any
portion thereof which is covered by insurance so long as the insurer is
reasonably likely to be able to pay) shall be rendered against Hollinger
International, any Borrower or any Restricted Subsidiary and shall not have
been discharged or vacated or had execution thereof stayed pending appeal
within 30 days after entry or filing of such judgments.

          12.1.9 Invalidity of Guaranty, etc. Any Guaranty shall cease to be in
full force and effect with respect to any Obligor (other than as expressly
permitted hereunder or under any other Loan Document); any Obligor shall fail
(subject to any applicable grace period) to comply with or to perform any
applicable provision of any Guaranty, or any Obligor (or any Person by, through
or on behalf of such Obligor) shall contest in any manner the validity, binding
nature or enforceability of any Guaranty.

          12.1.10 Invalidity of Collateral Documents, etc. Any Collateral Document
or any Subordination Agreement shall cease to be in full force and effect with
respect to the Company or any other Obligor
(other than as expressly permitted hereunder or under any other Loan
Document); or any Borrower or any other Obligor shall fail (subject to any
applicable grace period) to comply with or to perform any applicable provision
of any Collateral Document or any Subordination Agreement, or any Borrower or
any other Obligor (or any Person by, through or on behalf of any Borrower or
any other Obligor) shall contest in any manner the validity, binding nature or
enforceability of any Collateral Document or any Subordination Agreement.

          12.1.11 Change in Control. A Change in Control shall occur.

          12.1.12 Material Adverse Effect. The Required Lenders shall have
reasonably determined in good faith that an event has occurred or a condition
exists that has had or will have a Material Adverse Effect.

          12.1.13 Ownership of Restricted Subsidiaries. Except as expressly
permitted hereunder, the Company shall fail to own, for any reason (other than
in connection with an Asset Sale permitted

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hereunder), directly or indirectly,
free and clear of all Liens (except the Lien of the Administrative Agent and
Liens permitted by Section 10.8), 100% of the issued and outstanding Capital
Stock of (a) the Restricted Subsidiaries (other than STDS) existing on the
Amendment Effective Date and (b) any Wholly Owned Restricted Subsidiary formed
after the Amendment Effective Date.

          12.2 Effect of Event of Default. If any Event of Default described in
Section 12.1.4 shall occur, the Revolving Commitments (if they have not
theretofore terminated) shall immediately terminate and all Obligations
hereunder shall become immediately due and payable and the Borrowers shall
become immediately obligated to deliver to the Administrative Agent cash
collateral in an amount equal to the outstanding face amount of all Letters of
Credit for which the Issuing Bank is liable, all without presentment, demand,
protest or notice of any kind; and, in the case of any other Event of Default,
the Administrative Agent may (and upon written request of the Required Lenders
shall) declare the Revolving Commitments (if they have not theretofore
terminated) to be terminated and/or declare all Obligations hereunder to be due
and payable, and/or demand that the Borrowers immediately deliver to the
Administrative Agent cash and Cash Equivalent Investments and other cash
collateral acceptable to the Issuing Bank in an amount equal to the outstanding
face amount of all Letters of Credit for which the Issuing Bank is liable,
whereupon the Revolving Commitments (if they have not theretofore terminated)
shall immediately terminate and/or all Obligations hereunder shall become
immediately due and payable and/or the Borrowers shall immediately become
obligated to deliver to the Administrative Agent cash collateral in an amount
equal to the face amount of all Letters of Credit for which the Issuing Bank is
liable, all without presentment, demand, protest or notice of any kind. The
Administrative Agent shall promptly advise the Company of any such declaration,
but failure to do so shall not impair the effect of such declaration.
Notwithstanding the foregoing, the effect as an Event of Default of any event
described in Sections 12.1.1, 12.1.4, 12.1.9 or 12.1.10 may be waived by the
written concurrence of all of the Lenders, and the effect as an Event of
Default of any other event described in this Section 12 may be waived by the
written concurrence of the Required Lenders. Any cash collateral delivered
hereunder shall be held by the Administrative Agent and applied to obligations
arising in connection with any drawing under a Letter of Credit. After the
expiration or termination of all Letters of Credit, such cash collateral shall
be applied by the Administrative Agent to any remaining Obligations of such
Borrower hereunder and any excess shall be delivered to the applicable Borrower
or as a court of competent jurisdiction may direct.

          SECTION 13 The Administrative Agent.

          13.1 Authorization. Each Lender authorizes and appoints the
Administrative Agent to act on behalf of such Lender to the extent provided
herein or in any other Loan Document or any other document or instrument
delivered hereunder or in connection herewith, and to take such other action as
may be reasonably incidental thereto and authorizes and appoints the
Administrative Agent to act as security trustee in connection with the
Subordination Agreements and the Collateral Documents governed by English law.
Without limiting the forgoing or any other provision in the Loan Documents, the
Administrative Agent may at any time make any and all filings deemed reasonably
necessary in furtherance of this Agreement, the other Loan Documents and the
purposes hereof and thereof, including without limitation, Uniform Commercial
Code financing statements showing any Borrower or other Obligor as Debtor
thereunder (which financing statements may be filed in advance of the Amendment
Effective Date) in all appropriate jurisdictions, which financing statements
may describe the collateral in which a security interest is granted by each
such Debtor as “all assets” of such Debtor. The Administrative Agent
acknowledges that, in its capacity as Administrative Agent and security
trustee, it holds the Collateral under the Collateral Documents for the benefit
of and in trust for itself and the Lenders.

          13.2 Indemnification. Each Lender agrees to reimburse and indemnify the
Administrative Agent for, and hold the Administrative Agent harmless against, a
share (determined in accordance with its

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respective Voting Percentage) of any
loss, damage, penalty, action, judgment, obligation, cost, disbursement,
liability or expense (including reasonable attorneys’ fees) incurred without
gross negligence or willful misconduct on the part of the Administrative Agent
arising out of or in connection with the performance of its respective
obligations or the exercise of its respective powers hereunder or under any
other Loan Document or any other document or instrument delivered hereunder or
in connection herewith, as well as the costs and expenses of defending against
any claim against the Administrative Agent arising hereunder or thereunder.

          13.3 Exculpation. The Administrative Agent shall be entitled to rely upon
advice of counsel concerning legal matters, and upon this Agreement, any other
Loan Document and any schedule, certificate, statement, report, notice or other
writing which it believes to be genuine or to have been presented by a proper
Person. Neither the Administrative Agent nor any of its directors, officers,
employees or agents shall (a) be responsible for any recitals, representations
or warranties contained in, or for the execution, validity, genuineness,
effectiveness or enforceability of, this Agreement, any other Loan Document or
any other instrument or document delivered hereunder or in connection herewith,
(b) be responsible for the validity, genuineness, perfection, effectiveness,
enforceability, existence, value or enforcement of any collateral security, (c)
be under any duty to inquire into or pass upon any of the foregoing matters, or
to make any inquiry concerning the performance by any Borrower or any other
Obligor of its obligations, or (d) in any event, be liable as such for any
action taken or omitted by it or them, except for its or their own gross
negligence or willful misconduct. The agency hereby created shall in no way
impair or affect any of the rights and powers of, or impose any duties or
obligations upon, the Administrative Agent in its individual capacity.

          13.4 Credit Investigation. Each Lender acknowledges that it has made such
inquiries and taken such care on its own behalf as would have been the case had
such Lender’s Revolving Commitments been granted, the Letters of Credit been
issued and such Lender’s Loans been made directly by such Lender to the
Borrowers without the intervention of the Administrative Agent or any other
Lender. Each Lender agrees and
acknowledges that the Administrative Agent makes no representations or
warranties about the creditworthiness of the Borrowers or any other party to
this Agreement or any other Loan Document or with respect to the legality,
validity, sufficiency or enforceability of this Agreement or any other Loan
Document or the value of any security therefor.

          13.5 Administrative Agent and Affiliates. The Administrative Agent in its
individual capacity shall have the same rights and powers hereunder as any
other Lender and may exercise or refrain from exercising the same as though it
were not the Administrative Agent, and the Administrative Agent and its
Affiliates may accept deposits from, make loans to and generally engage in any
kind of business with the Borrowers or any Affiliate thereof as if it were not
the Administrative Agent hereunder.

          13.6 Action on Instructions of the Lenders. As to any matters not
expressly provided for by this Agreement (including enforcement of any Loan
Document or collection of the Credit Extensions), the Administrative Agent
shall not be required to exercise any discretion or take any action, but the
Administrative Agent shall in all cases be fully protected in acting or
refraining from acting upon the written instructions from the Lenders. In no
event will the Administrative Agent be required to take any action which
exposes the Administrative Agent to personal liability or which is contrary to
this Agreement, any other Loan Document or applicable law. The relationship
between the Administrative Agent and the Lenders is and shall be that of agent
and principal only and nothing herein contained shall be construed to
constitute the Administrative Agent a trustee for any Lender or any holder of a
participation in any Credit Extension or to impose on the Administrative Agent
duties and obligations other than those expressly provided for herein.

          13.7 Funding Reliance. (a) Unless the Administrative Agent receives
notice from a Lender by 11:00 a.m. (Local Time) on the day of a proposed
borrowing that such Lender will not make available

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to the Administrative Agent
the amount which would constitute its Revolving Percentage, Incremental
Percentage or Term A Percentage or Term B Percentage, as applicable, of such
borrowing in accordance with Section 2.4, the Administrative Agent may assume
that such Lender has made such amount available to the Administrative Agent
and, in reliance upon such assumption, make a corresponding amount available to
the applicable Borrower. If and to the extent such Lender has not made any
such amount available to the Administrative Agent, such Lender and such
Borrower jointly and severally agree to repay such amount to the Administrative
Agent forthwith on demand, together with interest thereon at the interest rate
applicable to Credit Extensions comprising such borrowing (or, in the case of
any Lender which repays such amount within three Business Days, the Federal
Funds Rate). Nothing set forth in this clause (a) shall relieve any Lender of
any obligation it may have to make any Credit Extension hereunder.

          (b)  Unless the Administrative Agent receives notice from the applicable
Borrower prior to the due date for any payment hereunder that such Borrower
does not intend to make such payment, the Administrative Agent may assume that
such Borrower has made such payment and, in reliance upon such assumption, make
available to each Lender its share of such payment. If and to the extent that
such Borrower has not made any such payment to the Administrative Agent, each
Lender which received a share of such payment shall repay such share (or the
relevant portion thereof) to the Administrative Agent forthwith on demand,
together with interest thereon at the Federal Funds Rate. Nothing set forth in
this clause (b) shall relieve any Borrower of any obligation it may have to
make any payment hereunder.

          13.8 Collateral Matters. The Lenders irrevocably authorize the
Administrative Agent, at its option and in its discretion, to release any Lien
granted to or held by the Administrative Agent upon any Collateral (a) upon
termination of the Revolving Commitments and any Hedging Agreements with any
Lender and payment in full of all Secured Obligations; (b) constituting
property sold or to be sold or disposed of as part of or in connection with any
disposition permitted hereunder; (c) constituting property in which the Company
or any Restricted Subsidiary owned no interest at the time the Lien was granted
or at any time thereafter; (d) constituting property leased to the Company or
any Restricted Subsidiary under a lease which has expired or been terminated in
a transaction permitted under this Agreement or is about to expire and which
has not been, and is not intended by the Company or such Restricted Subsidiary
to be, renewed or extended; or (e) subject to Section 15.1(b), if approved,
authorized or ratified in writing by the Required Lenders. Upon request by the
Administrative Agent at any time, the Lenders will confirm in writing the
Administrative Agent’s authority to release particular types or items of
Collateral pursuant to this Section 13.8.

          13.9 Resignation. The Administrative Agent may resign as such at any time
upon at least 30 days’ prior notice to the Company and the Lenders. The
Lenders shall (with, so long as no Event of Default or Unmatured Event of
Default exists, the prior written consent of the Company, which shall not be
unreasonably withheld or delayed) as promptly as practicable appoint a
successor Administrative Agent. If no successor shall have been so appointed,
and shall have accepted such appointment, within 30 days after the giving of
notice of such resignation, then the retiring Administrative Agent may, on
behalf of the Lenders, appoint a successor Administrative Agent, which shall be
a Lender or a commercial bank having a combined capital, surplus and undivided
profits of at least $500,000,000. Upon the acceptance of any appointment as
Administrative Agent hereunder by a successor Administrative Agent, such
successor Administrative Agent shall thereupon succeed to and become vested
with all rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from all
further duties and obligations under this Agreement. After any resignation
pursuant to this Section 13.9, the provisions of this Section 13 shall inure to
the benefit of the retiring Administrative Agent as to any actions taken or
omitted to be taken by it while it was Administrative Agent hereunder.

          13.10
Assignment of Rights and Obligations of Original Administrative Agent. (a) In consideration of the Administrative Agent acting as such, effective as of the Amendment Effective Date

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and commencing thereupon, the
Original Administrative Agent hereby transfers and assigns to the
Administrative Agent for the benefit of itself, the other Lenders and the other
secured parties identified herein or in the other Loan Documents, (i) all of
the Original Administrative Agent’s right, title, and interest in and to (A)
all security interests and other interests in all collateral (the “Existing
Collateral”) relating to the Existing Credit Agreement and the other Loan
Documents (as defined in the Existing Credit Agreement), (B) all Collateral
Documents (as defined in the Existing Credit Agreement), and (C) all other
certificates, instruments, notes, agreements or other documents evidencing or
otherwise relating to the Existing Collateral (all items described in clauses
(B) and (C) being collectively, the “Existing Collateral Documents”), and (ii)
all of the Original Administrative Agent’s rights and obligations as
Administrative Agent (as defined in the Existing Credit Agreement) under the
Existing Credit Agreement and the other Loan Documents (as defined in the
Existing Credit Agreement)

          (b)  In connection with the transfer and assignment described in the
foregoing clause (a), the Original Administrative Agent hereby (i) agrees to
(A) deliver to the Administrative Agent in due course
all originals in the possession of the Original Administrative Agent of
each Existing Collateral Document, and (B) take any and all other action that
the Administrative Agent may reasonably deem necessary or desirable to give
effect to such transfer and assignment, and (ii) authorizes the Administrative
Agent to take any and all action the Administrative Agent may reasonably deem
necessary or desirable to give effect to such transfer and assignment,
including without limitation, the filing (in any jurisdiction) of any Uniform
Commercial Code financing statements necessary or desirable to assign to the
Administrative Agent or otherwise deal with any existing Uniform Commercial
Code financing statements and any other filings and recordings covering any
Existing Collateral, naming the Original Administrative Agent as secured party.

          13.11 The Sole Lead Arranger, the Syndication Agent and the Documentation
Agent. It is understood and agreed by all parties hereto that neither the
Arranger, nor the Syndication Agent, nor the Documentation Agent shall have any
duties or responsibilities under this Agreement and shall have no liability for
any actions taken or not taken in connection with this Agreement or the other
Loan Documents.

          SECTION 14 Guaranty Provisions.

          14.1 Guaranty. Each of the Company, Telegraph and FDTH (each referred to
in this Section 14 as a “Guarantor”) guarantees certain Obligations of the
other Borrowers as follows:

		
	 	     (a) the Company hereby absolutely, unconditionally and irrevocably,
and jointly and severally, as primary obligor and not merely as surety,
guarantees the full and prompt payment when due, whether by acceleration
or otherwise, and at all times thereafter, of all Obligations (monetary
or otherwise) of Telegraph and FDTH to each of the Secured Parties (as
defined below) which arise out of or in connection with this Agreement,
any Letter of Credit or Letter of Credit Application, any Hedging
Agreement or any other Loan Document, in each case as the same may be
amended, modified, extended or renewed from time to time, in each case
howsoever created, arising or evidenced, whether direct or indirect,
absolute or contingent, now or hereafter existing, or due or to become
due (all such obligations being herein collectively called the
“Company
Guaranteed Obligations”),
	 
	 	     (b) Telegraph hereby absolutely, unconditionally and irrevocably,
and jointly and severally, as primary obligor and not merely as surety,
guarantees the full and prompt payment when due, whether by acceleration
or otherwise, and at all times thereafter, of all Obligations (monetary
or otherwise) of FDTH to each of the Secured Parties, howsoever created,
arising or evidenced, whether direct or indirect, absolute or contingent,
now or hereafter existing, or due or to become due, which arise out of or
in connection with the Credit Agreement, any Hedging 

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	 	Agreement or any
other Loan Document, in each case as the same may be amended, modified,
extended or renewed from time to time (all such obligations being herein
collectively called the “Telegraph Guaranteed Obligations”), and
	 
	 	     (c) FDTH hereby absolutely, unconditionally and irrevocably, and
jointly and severally, as primary obligor and not merely as surety,
guarantees the full and prompt payment when due, whether by acceleration
or otherwise, and at all times thereafter, of all Obligations (monetary
or otherwise) of Telegraph to each of the Secured Parties, howsoever
created, arising or evidenced, whether direct or indirect, absolute or
contingent, now or hereafter existing, or due or to become due, which
arise out of or in connection with the Credit Agreement, any Letter of
Credit or Letter of Credit Application, any Hedging Agreement or any
other Loan Document, in each case as the
same may be amended, modified, extended or renewed from time to time
(all such obligations being herein collectively called the “FDTH
Guaranteed Obligations”).

          The Company Guaranteed Obligations, the Telegraph Guaranteed Obligations and
the FDTH Guaranteed Obligations are herein collectively referred to as the
“Guaranteed Obligations”, and any reference to the Guaranteed Obligations of
any of the Borrowers shall be construed as a reference to, in the case of the
Company, the Company’s “Guaranteed Obligations,” in the case of the Telegraph,
the Telegraph Guaranteed Obligations, and in the case of FDTH, the FDTH
Guaranteed Obligations. Without limiting the generality of the foregoing, the
respective liabilities of FDTH and Telegraph under this Section 14 shall extend
to all amounts that constitute part of, in the case of FDTH, the FDTH
Guaranteed Obligations and, in the case of Telegraph, the Telegraph Guaranteed
Obligations, and would be owed by, in the case of Telegraph, FDTH and in the
case of FDTH, Telegraph, to any Secured Party under or in respect of the Loan
Documents or the applicable Hedging Agreements but for the fact that they are
unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving such Borrower. The holders of
any Guaranteed Obligations (including the Administrative Agent) are herein
collectively referred to as the “Secured Parties” and individually as a
“Secured Party”.

          The
obligations of each Guarantor under this Section 14 constitute a guaranty
by such Guarantor of payment when due and not of collection and each Guarantor
specifically agrees that it shall not be necessary or required that the
Administrative Agent or any other Secured Party exercise any right, assert any
claim or demand or enforce any remedy whatsoever against any Borrower (or any
other Person) before or as a condition to the obligations of such Guarantor
hereunder.

          Any term
or provision of this Section 14 or any other Loan Document to the
contrary notwithstanding, the aggregate maximum amount of the Guaranteed
Obligations for which each Guarantor shall be liable shall not exceed the
maximum amount for which such Guarantor can be liable without rendering the
obligations of such Guarantor under this Section 14 or any other Loan Document
as it relates to such Guarantor, voidable under applicable law relating to
fraudulent conveyance or fraudulent transfer.

          14.2 Acceleration of Guaranty. Each Guarantor agrees that, in the event
of any Event of Default under Section 12.1.4, and if such event shall occur at
a time when any of its Guaranteed Obligations are not then due and payable,
such Guarantor shall pay to the Administrative Agent for the account of the
Administrative Agent and the other Secured Parties forthwith the full amount
which would be payable hereunder by such Guarantor if all its Guaranteed
Obligations were then due and payable.

          14.3 Guaranty Absolute, etc. The obligations of each Guarantor under this
Section 14 shall in all respects be continuing, absolute, unconditional and
irrevocable, and shall remain in full force and effect until all its Guaranteed
Obligations have been paid in full, finally and indefeasibly, all obligations
of such Guarantor hereunder shall have been paid in full, finally and
indefeasibly, and the Revolving Commitments, all Letters of Credit, all Hedging
Agreements and any other commitments by Administrative Agent or the other
Secured Parties to the Borrowers shall have terminated. Each

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Guarantor
guarantees that its Guaranteed Obligations shall be paid strictly in accordance
with the terms of this Agreement and each other Loan Document under which they
arise, regardless of any law, regulation or order now or hereafter in effect in
any jurisdiction affecting any of such terms or the rights of the
Administrative Agent or any other Secured Party with respect thereto. The
creation or existence from time to time of additional Guaranteed Obligations to
the Administrative Agent or the other Secured Parties or any of them is hereby
authorized, without notice to any Guarantor, and shall in no way impair the
rights of the Administrative Agent or the other Secured Parties or the
obligations of any Guarantor under this Section 14, including the guaranty
hereunder of such additional Guaranteed Obligations. The liability of
each Guarantor under this Section 14 shall be absolute, unconditional and
irrevocable irrespective of:

		
	 	     (a) any lack of validity, legality or enforceability of this
Agreement or any other Loan Document;
	 
	 	     (b) the failure of the Administrative Agent or any other Secured
Party:

		
	 	     (i) to assert any claim or demand or to enforce any right or remedy
against any of the Borrowers or any other Person (including any
other guarantor) under the provisions of this Agreement or any
other Loan Document or otherwise, or to join any such Person in any
action against any of the Borrowers or any other Person, or
	 
	 	     (ii) to exercise any right or remedy against any other guarantor
of, or collateral securing, any Guaranteed Obligations;

		
	 	     (c) any change in the time, manner or place of payment of, or in any
other term of, all or any of the Guaranteed Obligations, or any other
extension, compromise or renewal of any Guaranteed Obligation;
	 
	 	     (d) any reduction, limitation, impairment or termination of any
Guaranteed Obligations for any reason, including any claim of waiver,
release, surrender, alteration or compromise, and shall not be subject to
(and each Guarantor hereby waives any right to or claim of) any defense
or setoff, counterclaim, recoupment or termination whatsoever by reason
of the invalidity, illegality, nongenuineness, irregularity, compromise,
unenforceability of, or any other event or occurrence affecting, any
Guaranteed Obligations;
	 
	 	     (e) any amendment to, rescission, waiver, or other modification of,
or any consent to departure from, any of the terms of this Agreement or
any other Loan Document;
	 
	 	     (f) (i) any addition, exchange, release, surrender or non-perfection
of any collateral or (ii) any amendment to or waiver or release or
addition of, or consent to departure from, any other guaranty held by the
Administrative Agent or any other Secured Party, securing or supporting
any of the Guaranteed Obligations;
	 
	 	     (g) any manner of application of any Collateral, or the proceeds
thereof, to all or any of the Guaranteed Obligations, or any manner of
sale or other disposition of any Collateral for all or any of the
Guaranteed Obligations or any other obligation of any Borrower under the
Loan Documents or any other assets of any Borrower or any of its
Subsidiaries;
	 
	 	     (h) any change, restructuring or termination of the corporate
structure or existence of any Borrower or any of its Subsidiaries;

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	 	     (i) the failure of any other Person to execute or deliver any
guaranty or agreement, or the release or reduction of liability of any
Guarantor or any other guarantor or surety with respect to the Guaranteed
Obligations; or
	 
	 	     (j) any other circumstance (including, without limitation, any
statute of limitations) which might otherwise constitute a defense
available to, or a legal or equitable discharge of, any Guarantor, any
Borrower, any surety or any other guarantor.

          14.4 Reinstatement, etc. Each Guarantor agrees that its obligations under this Section 14 shall
continue to be effective or be reinstated, as the case may be, if at any time
any payment (in whole or in part) of any of its Guaranteed Obligations is
rescinded or must otherwise be restored by the Administrative Agent or any
other Secured Party, upon the insolvency, bankruptcy or reorganization of any
Borrower, any other Person or otherwise, as though such payment had not been
made.

          14.5 Waiver, etc. Each Guarantor hereby waives promptness, diligence,
notice of acceptance and any other notice with respect to any of the Guaranteed
Obligations and its obligations under this Section 14 and any requirement that
the Administrative Agent or any other Secured Party protect, secure, perfect or
insure any security interest or Lien, or any property subject thereto, or
exhaust any right or take any action against any Borrower or any other Person
(including any other guarantor) or entity or any collateral securing any
Guaranteed Obligations.

          14.6 Waiver of Subrogation and Contribution. Until the Guaranteed
Obligations have been paid in cash indefeasibly in full, each Guarantor hereby
irrevocably waives any claim or other rights which it may now or hereafter
acquire against any Borrower or any other Person that arise from the existence,
payment, performance or enforcement of such Guarantor’s obligations under this
Section 14 or any other Loan Document, including any right of subrogation,
reimbursement, contribution, exoneration, or indemnification, any right to
participate in any claim or remedy of the Administrative Agent or any other
Secured Party against any Borrower or any other Person or any collateral which
the Administrative Agent or any other Secured Party now has or hereafter
acquires, whether or not such claim, remedy or right arises in equity, or under
contract, statute or common law, including the right to take or receive from
any Borrower or any other Person, directly or indirectly, in cash or other
property or by set-off or in any manner, payment or security on account of such
claim or other rights. If any amount shall be paid to any Guarantor in
violation of the preceding sentence and the Guaranteed Obligations shall not
have been paid in cash indefeasibly in full and the Revolving Commitments, all

Letters of Credit, all Hedging Agreements and any other commitments by the
Lenders, the Administrative Agent or any other Secured Party to any Borrower
shall not have been terminated, such amount shall be deemed to have been paid
to such Guarantor for the benefit of, and held in trust for, the Administrative
Agent and the other Secured Parties, and shall forthwith be paid to the
Administrative Agent to be credited and applied upon the Guaranteed
Obligations, whether matured or unmatured. Each Guarantor acknowledges that it
will receive direct and indirect benefits from the financing arrangements
contemplated by this Agreement and that the waiver set forth in this Section is
knowingly made in contemplation of such benefits.

          14.7 Independent Credit Decision. Each Guarantor has, independently and
without reliance upon the Administrative Agent or any other Secured Party and
based on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Guaranty and each other
Loan Document to which it is or is to be a party, and such Guarantor has
established adequate means of obtaining from each Borrower on a continuing
basis information pertaining to, and is now and on a continuing basis will be
completely familiar with, the business, condition (financial or otherwise),
operations, performance, properties and prospects of such Borrower.

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          SECTION 15 General.

          15.1 Waiver; Remedies; Amendments. (a) No delay or failure on the
part of the Administrative Agent or any Lender in the exercise of any right,
power or remedy shall operate as a waiver thereof, nor shall any single or
partial exercise by any of them of any right, power or remedy preclude other or
further exercise thereof, or the exercise of any other right, power or remedy.
The remedies herein provided are cumulative and not exclusive of any remedies
provided by law. No amendment, modification or waiver of, or consent with
respect to, any provision of this Agreement shall in any event be effective
unless the same shall be in writing and signed and delivered by the Company and
by Lenders having an aggregate Voting Percentage of not less than the aggregate
Voting Percentage expressly designated herein with respect thereto or, in the
absence of such designation as to any provision of this Agreement, by the
Required Lenders, and then any such amendment, modification, waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given.

          (b)  No amendment, modification, waiver or consent:

		
	 	     (i) shall amend, modify or waive any condition precedent to (x) the
Credit Extensions on the Amendment Effective Date without the consent of
all Lenders or (y) any Credit Extension under the Revolving Commitments
without the consent of the Required Revolving Lenders, or
	 
	 	     (ii) shall (w) extend or increase the amount of any Revolving
Commitment, (x) reduce the principal amount of any Loans, (y) change the
date for payment of any principal of or interest on the Credit Extensions
(including, without limitation, any change to (A) any scheduled date for
any such payment, or (B) the Stated Maturity Date) or any fees payable
hereunder, or (z) reduce the rate of interest or discount on any Credit
Extensions or any fees payable hereunder, without the consent of all
Lenders directly affected thereby, or
	 
	 	     (iii) shall (x) release any Person from its obligations under any
Guaranty or release any substantial part of the Collateral granted under
the Collateral Documents except Collateral having a fair market value of
less than $5,000,000 in the aggregate or as otherwise permitted under
this Agreement or the Collateral Documents or (y) change the definition
of Required Lenders or the aggregate Voting Percentage required to effect
an amendment, modification, waiver or consent or to amend Section 4
(Interlender Agreements) or this Section 15.1 without the consent of all
Lenders or (z) change the definition of Required Revolving Lenders
without the consent of all Revolving Lenders, or
	 
	 	     (iv) shall, in the reasonable judgment of the Administrative Agent,
affect adversely the interests, rights or obligations of the Revolving
Lenders in a manner substantially different from the effect of such
amendment, waiver or consent on the Term Lenders, unless consented to by
the Required Revolving Lenders, it being understood that (x) any
amendment, waiver or consent that has the effect of curing or waiving any
Event of Default or Unmatured Event of Default and that contemplates an
advance in connection with such amendment, waiver or consent shall
require the consent of the Required Revolving Lenders and (y) any
amendment, waiver or consent that has the effect of shortening the
maturity or any payment scheduled hereunder with respect to the Term
Loans shall require the consent of the Required Revolving Lenders;

          (c)  No provisions of Section 13 shall be amended, modified or waived
without the consent of the Administrative Agent. No provision relating to the
aggregate amount of Letters of Credit that may be
issued, or of Section 2.6, 2.7, 2.8, 2.9, 2.12(c), 5.7(b) or 5.7(d), shall
be amended, modified or waived without the consent of the Issuing Bank.

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          (d)  The Fee Letters may be amended with the consent of the parties
thereto.

          (e)  Unless otherwise prohibited by law, if any change occurs in a currency
or currency unit of any country or if more than one currency or currency unit
are at the same time recognized by the central bank of any relevant country as
the lawful currency of such country, then:

		
	 	     (i) any reference in the Loan Documents to, and any obligations
arising under the Loan Documents in, the currency of that country shall
be translated into, or paid in, the currency or currency unit designated
by the Administrative Agent after consultation with the Company; and
	 
	 	     (ii) any translation from one currency or currency unit to another
shall be at the official rate of exchange recognized by that central bank
for the conversion of such currency or currency unit into the other,
rounded up or down to the nearest whole unit of such other currency by
the Administrative Agent (acting reasonably).

          (f)  If a change in any currency of any relevant country occurs (including
in consequence of the European Monetary Union), this Agreement will be amended
to the extent to which the Administrative Agent, acting reasonably and in
consultation with the Company, determines to be necessary to comply with any
generally accepted conventions and market practice in the relevant interbank
market and otherwise to reflect the change in currency and to put the Lenders
in the same position, so far as is possible and the Obligors in the same
position, so far as possible, that they would have been in respectively if no
change in currency had occurred.

          15.2 Confirmations. Each Borrower and each Lender agree from time to
time, upon written request received by it from the other, to confirm to the
other in writing (with a copy of each such confirmation to the Administrative
Agent) the aggregate unpaid principal amount of such Lender’s Loans then
outstanding under this Agreement.

          15.3 Notices. Except as otherwise provided in Sections 2.4, 2.5, 2.6 and
5.3, all notices hereunder shall be in writing (including facsimile
transmission) and shall be sent to the applicable party at its address shown on
Schedule 15.3 or at such other address as such party may, by written notice
received by the other parties hereto, have designated as its address for such
purpose. Notices sent by facsimile transmission shall be deemed to have been
given when sent; notices sent by mail shall be deemed to have been given three
Business Days after the date when sent by registered or certified mail, postage
prepaid; and notices sent by hand delivery shall be deemed to have been given
when received. For purposes of Sections 2.4, 2.5, 2.6 and 5.3, the
Administrative Agent shall be entitled to rely on telephonic instructions from
any Person that the Administrative Agent in good faith believes is an
authorized officer or employee of any Borrower and the Borrowers shall hold the
Administrative Agent and each Lender harmless from any loss, cost or expense
resulting from any such reliance.

          15.4 Computations. Where the character or amount of any asset or
liability or item of income or expense is required to be determined, or any
consolidation or other accounting computation is required to be made, for the
purpose of this Agreement, such determination or calculation shall, to the
extent applicable and except as otherwise specified in this Agreement, be made
in accordance with GAAP applied on a basis consistent with that used in the
preparation of the audited financial statements of Hollinger International
referred to in clause (a) of Section 9.4.

          15.5 Regulations U and X. Each Lender represents that it in good faith is
not relying, either directly or indirectly, upon any Margin Stock as collateral
security for the extension or maintenance by it of any credit provided for in
this Agreement.

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          15.6 Costs, Expenses and Taxes. Each Borrower agrees to pay on demand (a)
all reasonable out-of-pocket costs and expenses of the Sole Lead Arranger
(including the reasonable fees and charges of counsel for the Sole Lead
Arranger and of local counsel, if any, who may be retained by said counsel)
incurred on or prior to the Amendment Effective Date in connection with the
preparation, execution and delivery of this Agreement and the other Loan
Documents and all other documents provided for herein or delivered or to be
delivered hereunder or in connection herewith and in connection with prior
unconsummated financings, (b) all reasonable out-of-pocket costs and expenses
of the Administrative Agent (including the reasonable fees and charges of
counsel for the Administrative Agent and of local counsel, if any, who may be
retained by said counsel) in connection with the preparation, execution,
delivery and administration of this Agreement, the other Loan Documents and all
other documents provided for herein or delivered or to be delivered hereunder
or in connection herewith (including any amendment, supplement or waiver to any
Loan Document and the consideration of legal considerations related to any Loan
Document), and (c) all reasonable out-of-pocket costs and expenses (including
reasonable attorneys’ fees, court costs and other legal expenses) incurred by
the Administrative Agent and each Lender after an Event of Default in
connection with (i) enforcing any Loan Documents or Obligation or any security
therefor or exercising or enforcing any other right or remedy available by
reason of such Event of Default; (ii) any refinancing or restructuring of the
credit arrangements provided under this Agreement in the nature of “work-out”
or in any insolvency or bankruptcy proceeding; (iii) commencing, defending or
intervening in any litigation or in filing a petition, complaint, answer,
motion or other pleadings in any legal proceeding relating to any Loan
Document, the Obligations, or otherwise related to or arising out of the
transactions contemplated hereby or by any of the other Loan Documents; and
(iv) taking any other action in or with respect to any suit or proceeding
(bankruptcy or otherwise) described in clauses (i) through (iii) above. Each
Lender agrees to reimburse the Administrative Agent for such Lender’s pro rata
share (based on its respective Voting Percentage) of any such costs and
expenses of the Administrative Agent not paid by the Borrowers. In addition,
the Borrowers agree to pay, and to save the Administrative Agent and the
Lenders harmless from all liability for, any stamp or other taxes which may be
payable in connection with the execution and delivery of this Agreement, the
borrowings hereunder or the execution and delivery of any other Loan Document
or any other document provided for herein or delivered or to be delivered
hereunder or in connection herewith. All obligations provided for in this
Section 15.6 shall survive repayment of the Obligations and any termination of
this Agreement.

          15.7 Subsidiary References. The provisions of this Agreement relating to
Subsidiaries of the Company shall apply only during such times as the Company
has one or more Subsidiaries.

          15.8 Captions. Section captions used in this Agreement are for convenience only and
shall not affect the construction of this Agreement.

          15.9 Assignments; Reallocation.

          15.9.1 Assignments. Any Lender may, with the prior written consent of the
Company (at all times other than during the existence of an Event of Default),
the Issuing Bank (in the case of the assignment of a Revolving Commitment or a
Credit Extension under any Revolving Commitment) and the Administrative Agent
(which consents shall not be unreasonably delayed or withheld and shall not be
applicable in the case of assignment of Loans to an Affiliate of such Lender or
a Related Fund of any Lender or to any other Lender), at any time assign and
delegate to one or more Eligible Assignees, all or any portion of such Lender’s
Loans and/or Revolving Commitments hereunder, subject to the following
conditions:

		
	 	     (a) each Assignment and delegation of Revolving Loans and Revolving
Commitments shall be a constant, not a varying, percentage of all the
assigning Revolving Lender’s Individual Revolving Commitment,
participation in Letters of Credit and Revolving Loans hereunder in a
minimum aggregate amount equal to the lesser of (x) the sum of the
assigning Revolving 

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	 	Lender’s remaining Revolving Loans, participation in
Letters of Credit and (to the extent not used) Individual Revolving
Commitment hereunder and (y) $1,000,000 in the aggregate or such lesser
amount agreed to by the Company and the Administrative Agent; and
	 
	 	     (b) any assignment of Term A Loans shall be in a minimum aggregate
amount equal to the lesser of (x) the assigning Term A Lender’s remaining
Term A Loans and (y) $1,000,000 or such lesser amount agreed to by the
Company and the Administrative Agent;
	 
	 	     (c) any assignment of Term B Loans shall be in a minimum aggregate
amount equal to the lesser of (x) the assigning Term B Lender’s remaining
Term B Loans and (y) $1,000,000 or such lesser amount agreed to by the
Company and the Administrative Agent; provided, however, that a Term B
Lender may assign smaller amounts of its Term B Loans to different funds
managed by such Term B Lender; and
	 
	 	     (d) any assignment of any Incremental Loans shall be in the minimum
aggregate amount set forth in the applicable Supplement;

provided, however, that (i) no assignment and delegation may be made to any
Person if, at the time of such assignment and delegation, the Borrowers would
be obligated to pay any greater amount under Section 8 to the Eligible Assignee
than the Borrowers are then obligated to pay to the assigning Lender under such
Section and (ii) the Borrowers, the Issuing Bank and the Administrative Agent
shall be entitled to continue to deal solely and directly with such Lender in
connection with the interests so assigned and delegated to an Eligible Assignee
until the date when all of the following conditions shall have been met:

		
	 	     (A) five Business Days (or such lesser period of time as the
Administrative Agent and the assigning Lender shall agree) shall have
passed after written notice of such assignment and delegation, together
with payment instructions, addresses and related information with respect
to such Eligible Assignee, shall have been given to the Company and the
Administrative Agent by such assigning Lender and the Eligible Assignee,
	 
	 	     (B) the assigning Lender and the Eligible Assignee shall have
executed and delivered to the Company and the Administrative Agent an
assignment agreement substantially in the form of
Exhibit E (an
“Assignment Agreement”), together with any documents required to be
delivered thereunder, which Assignment Agreement shall have been accepted
by the Administrative Agent, the Issuing Bank and, at all times other
than during the existence of an Event of Default, the Company, and
	 
	 	     (C) the assigning Lender or the Eligible Assignee shall have paid
the Administrative Agent a processing fee of $3,500 (and in the case of
assignments on the same day by a Lender to more than one fund managed or
advised by the same investment advisor, only a single $3,500 processing
fee shall be payable for all such assignments by such Lenders to such
funds).

          From and after the date on which the conditions described above have been met,
(A) such Eligible Assignee shall be deemed automatically to have become a party
hereto and, to the extent that rights and obligations hereunder have been
assigned and delegated to such Eligible Assignee pursuant to such Assignment
Agreement, shall have the rights and obligations of a Lender hereunder,
including, without limitation, the right to request promissory notes evidencing
Obligations owed to it in accordance with Section 2.16, and (B) the assigning
Lender, to the extent that rights and obligations hereunder have been assigned
and delegated by it pursuant to such Assignment Agreement, shall be released
from its obligations hereunder. The Administrative Agent shall prepare all
necessary documents, if any, in connection with assignments. Accrued interest
on that part of such Lender’s Obligations being assigned shall be paid as
provided in the Assignment Agreement. Accrued interest and fees on that part
of such Lender’s Obligations not being assigned

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shall be paid as provided in the Assignment Agreement. Accrued interest and
fees on that part of such Lender’s Obligations not being assigned shall be paid
to the assigning Lender. Accrued interest and accrued fees shall be paid at
the same time or times provided in this Agreement. Any attempted assignment
and delegation not made in accordance with this Section 15.9.1 shall be null
and void.

          Notwithstanding the foregoing provisions of this Section 15.9.1 or any other
provisions of this Agreement, (i) any Lender may at any time assign all or any
portion of its Loans to any central bank (but no such assignment shall release
any Lender from any of its obligations hereunder) and (ii) any Term B Lender or
Incremental Lender that is a fund that invests in bank loans may (without the
consent of or notice to the Company or the Administrative Agent) pledge all or
any portion of its rights in connection with this Agreement to the trustee for
holders of obligations owed, or securities issued, by such fund as security for
such obligations or securities, provided that any foreclosure or other exercise
of remedies by such trustee shall be subject to the provisions of this Section
regarding assignments in all respects. No assignment or pledge described in
the preceding sentence shall release the assigning Lender from its obligations
hereunder.

          The Administrative Agent, acting solely for this purpose as an agent of the
Borrowers, shall maintain at one of its offices a copy of each Assignment
Agreement delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Revolving Commitments of, and principal
amount of and interest on the Loans and Letters of Credit owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”). The entries
in the Register shall be conclusive, and the Borrowers, the Administrative
Agent, the Issuing Bank and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary. No
assignment of any Loans or Letters of Credit shall be effective until such
transfer is recorded by the Administrative Agent. The Register shall be
available for inspection by the Company, the Issuing Bank and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.

          15.9.2 Re-allocations. The credit extensions and commitments made by the
Original Lenders and outstanding pursuant to the Existing Credit Agreement
shall be assigned and re-allocated among the Lenders so that, and credit
extensions and commitments shall be made by the Lenders pursuant to this
Agreement so that, from and after the Amendment Effective Date, the respective
commitments and credit extensions of the Lenders shall be as set forth on
Schedule 1.1. The credit extensions and commitments of the Original Lenders
which shall cease to be Lenders hereunder shall be purchased at par, plus
accrued interest to (but excluding) the Amendment Effective Date, and the
Administrative Agent and the Borrowers shall make suitable adjustments for the
commitments and credit extensions of Existing Lenders that remain Lenders
hereunder. Credit extensions made by Original Lenders which remain Lenders
hereunder shall, effective as of the Amendment Effective Date, be evidenced and
governed by this Agreement and the Loan Documents.

          15.10 Participations. Any Lender may, without the consent of or notice to
the Company and the Administrative Agent, at any time sell to one or more
commercial banks or other Persons participating interests in any Loan owing to
such Lender, the Revolving Commitment of such Lender, the direct or
participation interest of such Lender in any Letter of Credit or any other
interest of such Lender hereunder (any Person purchasing any such participating
interest being herein called a “Participant”) provided that such sale shall be
of a constant and not a varying percentage of the selling Lender’s Individual
Revolving Commitment, Letters of Credit and Revolving Loans. In the event of a
sale by a Lender of a participating interest to a Participant, (x) the
Borrowers and the Administrative Agent shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and
obligations hereunder and (y) all amounts payable by the Borrowers shall be
determined as if such Lender had not sold such participation
and shall be paid directly to such Lender. No Participant shall have any
direct or indirect voting rights hereunder except with respect to any of the
events described in Section 15.1(b). Each Lender agrees to

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incorporate the
requirements of the preceding sentence into each participation agreement which
such Lender enters into with any Participant. Each Borrower agrees that if
amounts outstanding under this Agreement are due and payable (as a result of
acceleration or otherwise), each Participant shall be deemed to have the right
of setoff in respect of its participating interest in amounts owing under this
Agreement and with respect to any Letter of Credit to the same extent as if the
amount of its participating interest were owing directly to it as a Lender
under this Agreement; provided that such right of setoff shall be subject to
the obligation of each Participant to share with the Lenders, and the Lenders
agree to share with each Participant, as provided in Section 7.5. Each
Borrower also agrees that each Participant shall be entitled to the benefits of
Section 8 as if it were a Lender (provided that no Participant shall receive
any greater compensation pursuant to Section 8 than would have been paid to the
participating Lender if no participation had been sold).

          15.11 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. Whenever possible each
provision of this Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this
Agreement shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining
provisions of this Agreement. All obligations of the Borrowers and rights of
the Administrative Agent and the Lenders expressed herein or in any other Loan
Document shall be in addition to and not in limitation of those provided by
applicable law.

          15.12 Counterparts/Facsimile. This Agreement may be executed in any
number of counterparts and by the different parties hereto on separate
counterparts and each such counterpart shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same Agreement.
Loan Documents may be transmitted and/or signed by facsimile. The
effectiveness of any such documents and signatures shall, subject to any
applicable law, have the same force and effect as manually-signed originals and
shall be binding on the Borrowers, the Lenders, the Issuing Bank, and the
Administrative Agent. The Administrative Agent and Issuing Bank may also
require that any such documents and signatures be confirmed by a
manually-signed original thereof; provided, however, that the failure to
request or deliver the same shall not limit the effectiveness of any facsimile
document or signature.

          15.13 Successors and Assigns. This Agreement shall be binding upon the
Borrowers, the Lenders and the Administrative Agent and their respective
successors and assigns, and shall inure to the benefit of the Borrowers, the
Lenders, the Issuing Bank and the Administrative Agent and the permitted
successors and assigns of the Lenders, the Issuing Bank and the Administrative
Agent. No Borrower shall be permitted to assign its Obligations under this
Agreement or any Loan Document without the written consent of all Lenders;
provided, however, that the Company may assign its obligations under this
Agreement and the Loan Documents to a newly-formed Delaware corporation which
(x) is the survivor of a merger with the Company and (y) had no assets or
liabilities immediately prior to such merger provided that (A) such merged
corporation shall execute all documents with respect to the assumption of this
Agreement and the other Loan Documents and such other documents as may be
requested by the Administrative Agent in connection therewith, (B) no Unmatured
Event of Default or Event of Default shall have occurred and be continuing or
result from such merger and (C) such merger will not adversely affect the
Lenders.

          15.14 Indemnification by the Borrowers. (a)  In consideration of the
execution and delivery of this Agreement by the Administrative Agent and the
Lenders and the agreement to extend the Term A Loans, the Term B Loans and the
Revolving Commitments provided hereunder, each Borrower hereby agrees to
indemnify, exonerate and hold the Issuing Bank, the Administrative Agent, the
Sole Lead Arranger, each Lender and each of the officers, directors, employees,
and agents of the Issuing Bank, the Administrative Agent, the Sole Lead
Arranger and each Lender and trustees and advisors managing any

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Lender
(collectively the “Indemnified Parties” and individually each an “Indemnified
Party”) free and harmless from and against any and all actions, causes of
action, suits, losses, liabilities, damages and expenses, including reasonable
attorneys’ fees and charges (collectively therein called the “Indemnified
Liabilities”), incurred by the Indemnified Parties or any of them as a result
of, or arising out of, or relating to (i) any tender offer, merger, purchase of
stock, purchase of assets or other transaction financed or proposed to be
financed in whole or in part, directly or indirectly, with the proceeds of any
of the Loans or Letters of Credit or (ii) the execution, delivery, performance
or enforcement of this Agreement or any other Loan Document by any of the
Indemnified Parties, except for any such Indemnified Liabilities as to any
Indemnified Party which is found in a final, non-appealable judgment by a court
of competent jurisdiction to be arising on account of such Indemnified Party’s
bad faith, gross negligence or willful misconduct. In the case of an
investigation, litigation or other proceeding to which the indemnity in this
Section 15.14 applies, such indemnity shall be effective whether or not such
investigation, litigation or proceeding is brought by any Borrower, its
directors, shareholders, affiliates or creditors or an Indemnified Party,
whether or not any Indemnified Party is otherwise a party thereto and whether
or not the transactions contemplated hereunder are consummated. The Borrowers
also agree not to assert any claim against the Administrative Agent, any Lender
or any of their affiliates, or any of their respective officers, directors,
employees, agents and advisors, on any theory of liability, for special,
indirect, consequential or punitive damages arising out of or otherwise
relating to the Facilities, the actual or proposed use of proceeds of the
Loans, the Loan Documents or any of the transactions, contemplated by the Loan
Documents. If and to the extent that the foregoing undertaking may be
unenforceable for any reason, each Borrower hereby agrees to make the maximum
contribution to the payment and satisfaction of each of the Indemnified
Liabilities which is permissible under applicable law. Nothing set forth above
shall be construed to relieve any Indemnified Party from any obligation it may
have under this Agreement.

          (b) 
Without limiting the provisions of clause (a) above, each Borrower
agrees to reimburse each Indemnified Party for, and indemnify each Indemnified
Party against, any and all losses, claims, damages, penalties, judgments,
liabilities and expenses (including reasonable attorneys’ and consultant’s
fees) which any Indemnified Party may pay, incur or become subject to arising
out of or relating to the use, handling, release, emission, discharge,
transportation, storage, treatment or disposal of any Regulated Material at any
real property owned or leased by the Company or any Restricted Subsidiary or
used by the Company or any Restricted Subsidiary in its business or operations,
except to the extent caused by the acts or omissions of such Indemnified Party.

          (c)  An Indemnified Party shall promptly notify the Company in writing as
to any action, claim, suit, proceeding or investigation for which indemnity may
be sought, but the omission so to notify the Company will not relieve the
Borrowers from any liability which it may have to any Indemnified Party
hereunder to the extent that the Company is not materially prejudiced as a
result of such failure. After such notice to the Company, the Company shall be
entitled to participate in, and to the extent that it shall elect by written
notice delivered to such Indemnified Party promptly after receiving the
aforesaid notice of such Indemnified Party, to assume the defense thereof with
counsel reasonably satisfactory to such Indemnified Party to represent such
Indemnified Party in such action, claim, suit, proceeding or
investigation and shall pay as incurred the reasonable fees and expenses
of such counsel related to such action, claim, suit, proceeding or
investigation. In any action, claim, suit, proceeding or investigation, any
Indemnified Party shall have the right to retain its own separate counsel at
such Indemnified Party’s own expense and not subject to reimbursement by the
Borrowers; provided, however, that the Borrowers shall pay as incurred the fees
and expenses of such counsel incurred in connection with investigating,
preparing, defending, paying, settling or compromising any action, claim, suit,
proceeding or investigation if (i) the parties to such action, claim, suit,
proceeding or investigation include both the Indemnified Parties and the
Company and there may be legal defenses available to such Indemnified Party
which are different from or additional to those available to the Company; (ii)
the use of counsel chosen by the Company to represent both the Company and such
Indemnified Party would present such

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counsel with an actual or potential
conflict of interest; (iii) the Company shall not have employed satisfactory
counsel to represent such Indemnified Party within a reasonable time after
notice of the institution of such action, claim, suit, proceeding or
investigation; or (iv) the Company shall authorize such Indemnified Party to
employ separate counsel (in addition to any local counsel) at the expense of
the Borrowers.

          (d) Each Indemnified Party agrees that without the Company’s prior written
consent (not to be unreasonably withheld or delayed), it will not settle,
compromise or consent to the entry of any judgment in or otherwise seek to
terminate any claim, action, suit, proceeding or investigation in respect of
which indemnification could be sought hereunder unless such settlement,
compromise, consent or termination (i) includes an unconditional release of the
Borrowers and the Indemnified Parties from any liabilities arising out of such
claim, action, suit, proceeding or investigation and (ii) does not include an
admission of fault or culpability on the part of the Company, its Affiliates or
its officers, directors or agents; provided, however, that any Lender may seek
a dismissal of any claim, action, suit, proceeding or investigation as to
itself without the consent of the Borrower.

          15.15 Survival of Indemnities. All obligations provided for in Section
14.13 and in any other indemnity provided the Issuing Bank, the Administrative
Agent, the Sole Lead Arranger or any Lender in any other Loan Document shall
survive repayment of the Obligations and any termination of this Agreement or
any of the other Loan Documents.

          15.16 Confidentiality. The Administrative Agent, the Issuing Bank and the
Lenders shall hold all non-public information obtained pursuant to the
requirements of this Agreement which has been identified as such by the Company
in accordance with their customary procedures for handling confidential
information of this nature and in accordance with safe and sound commercial
lending practices and, in any event, may make disclosure on the same
confidential basis as provided for herein that is reasonably required by any
actual or bona fide potential transferee or participant in connection with the
contemplated transfer of any Loan or participation therein or in any Letter of
Credit or as required or requested by any governmental agency or representative
thereof or any self-regulatory organization with authority over the
Administrative Agent, such Issuing Bank or such Lender (including, without
limitation, the National Association of Insurance Commissioners) or pursuant to
legal process or to any direct or indirect contractual counterparty in any
swap, hedge or similar agreement (or to any such contractual counterparty’s
professional advisor), so long as such contractual counterparty (or such
professional advisor) agrees to be bound by the provisions of this Section
15.16; provided that, unless prohibited by applicable law or court order, the
Administrative Agent, the Issuing Bank and each Lender shall promptly notify
the Company of any request by any governmental agency or representative thereof
(other than any such request in connection with an (a) examination of the
financial condition of the Administrative Agent, the Issuing Bank or such
Lender by such governmental agency or (b) risk-based capital oversight of
insurance company investments by the
National Association of Insurance Commissioners) for disclosure of any
such non-public information prior to disclosure of such information.

          15.17 Forum Selection and Consent to Jurisdiction. ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS
OF THE STATE OF NEW YORK OR IN ANY FEDERAL COURT OF THE UNITED STATES OF
AMERICA SITTING IN NEW YORK CITY, NEW YORK PROVIDED, HOWEVER, THAT AT THE
ADMINISTRATIVE AGENT’S OPTION, ANY SUCH LITIGATION MAY BE BROUGHT AND
MAINTAINED AND/OR ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER
PROPERTY MAY BE BROUGHT, AT THE ADMINISTRATIVE AGENT’S OPTION, IN THE COURTS OF
ANY JURISDICTION WHERE SUCH BORROWER, COLLATERAL OR OTHER PROPERTY MAY BE
FOUND. EACH OF THE BORROWERS, THE ISSUING BANK, THE ADMINISTRATIVE AGENT AND
EACH LENDER HEREBY EXPRESSLY

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AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK AND ANY FEDERAL COURT OF THE UNITED STATES OF
AMERICA SITTING IN NEW YORK CITY; FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET
FORTH ABOVE. EACH OF THE BORROWERS, THE ISSUING BANK, THE ADMINISTRATIVE AGENT
AND EACH LENDER FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY
REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE
STATE OF NEW YORK. EACH BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY
SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN
BROUGHT IN AN INCONVENIENT FORUM.

          15.18 American Legal Terms. References to any legal term or concept
(including those for any action, remedy, method of judicial proceeding,
document, statute, court official, governmental authority or agency) shall in
respect of any jurisdiction other than the United States be construed as
references to the term or concept which most nearly corresponds to it in that
jurisdiction.

          15.19 Judgment Currency. The obligations of the Borrowers and each other
Obligor in respect of any sum due to any Lender, the Issuing Bank or the
Administrative Agent hereunder, under or in respect of any other Loan Document
shall, notwithstanding any judgment in a currency (the “Judgment Currency”)
other than the currency in which such sum was originally denominated (the
“Original Currency”), be discharged only to the extent that on the Business Day
following receipt by such Lender, the Issuing Bank or the Administrative Agent
of any sum adjudged to be so due in the Judgment Currency, such Lender, the
Issuing Bank or the Administrative Agent, in accordance with normal banking
procedures, purchases the Original Currency with the Judgment Currency. If the
amount of Original Currency so purchased is less than the sum originally due to
such Lender, such Issuing Bank or the Administrative Agent, each Borrower
agrees, as a separate obligation and notwithstanding any such judgment, to
indemnify such Lender, such Issuing Bank, or the Administrative Agent, as the
case may be, against such loss, and if the amount of Original Currency so
purchased exceeds the sum originally due to such Lender, the Issuing Bank or
the Administrative Agent, as the case may be, such Lender, the Issuing Bank or
the Administrative Agent, as the case may be, agrees to remit such excess to
the applicable Borrower.

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          15.20 Waiver of Jury Trial. EACH OF THE BORROWERS, THE ISSUING BANK, THE
ADMINISTRATIVE AGENT AND EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY
IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS
AGREEMENT, ANY OTHER LOAN DOCUMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR
AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION
HEREWITH OR THEREWITH OR ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN
CONNECTION WITH ANY OF THE FOREGOING, AND AGREES THAT ANY SUCH ACTION OR
PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

          Delivered at New York, New York, as of the day and year first above written.

	 	 	 
	 
	 	HOLLINGER
INTERNATIONAL PUBLISHING INC.
	 
	 
	 
	 	By:	

	 
	 
	 	Name:	

	 
	 
	 	Title:	

98

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	 	TELEGRAPH GROUP LIMITED
	 
	 
	 
	 	By:	

	 
	 
	 	Name:	

	 
	 
	 	Title:	

99

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	 	FIRST DT HOLDINGS LIMITED
	 
	 
	 
	 	By:	

	 
	 
	 	Name:	

	 
	 
	 	Title:	

100

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	 	WACHOVIA BANK, N.A.

as Lender, Administrative Agent,

Issuing Bank, and Security Trustee
	 
	 
	 
	 	By:	

	 
	 
	 	Name:	

	 
	 
	 	Title:	

101

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	 	WACHOVIA SECURITIES, INC.

as Sole Lead Arranger and Book Runner
	 
	 
	 
	 	By:	

	 
	 
	 	Name:	

	 
	 
	 	Title:	

102

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	 	TORONTO DOMINION (TEXAS), INC. as Lender,

Syndication Agent, and Original
Administrative Agent
	 
	 
	 
	 	By:	

	 
	 
	 	Name:	

	 
	 
	 	Title:	

103

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	 	GENERAL ELECTRIC CAPITAL CORPORATION

as Lender and Documentation Agent
	 
	 
	 
	 	By:	

	 
	 
	 	Name:	

	 
	 
	 	Title:	

104

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	 	LA SALLE BANK NATIONAL ASSOCIATION
	 
	 
	 
	 	By:	

	 
	 
	 	Name:	

	 
	 
	 	Title:	

105

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	 	ROYAL BANK OF SCOTLAND
	 
	 
	 
	 	By:	

	 
	 
	 	Name:	

	 
	 
	 	Title:	

106

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107

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SCHEDULE 1.1

COMMITMENTS AND PERCENTAGES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Individual	 	Maximum	 	Maximum	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revolving	 	Tranche A	 	Tranche B	 	Revolving	 	Term A	 	Term A	 	Term B	 	Term B	 	Voting
	Lender	 	Commitment	 	Commitment	 	Commitment	 	Percentage	 	Loan	 	Percentage	 	Loan	 	Percentage	 	Percentage
	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

	Wachovia Bank, NA	 	 	
$9,500,000	 	 	$	9,500,000	 	 	$	9,500,000	 	 	 	21.1	%	 	$	14,500,000	 	 	 	32.2	%	 	$	208,000,000	 	 	 	94.5	%	 	 	74.8	%
	

	General Electric

Capital Corporation	 	 	
$11,000,000	 	 	$	11,000,000	 	 	$	11,000,000	 	 	 	24.4	%	 	$	9,000,000	 	 	 	20.0	%	 	$	9,000,000	 	 	 	4.1	%	 	 	9.4	%
	

	Toronto Dominion 
(Texas), Inc.	 	 	
$8,500,000	 	 	$	8,500,000	 	 	$	8,500,000	 	 	 	18.9	%	 	$	5,500,000	 	 	 	12.2	%	 	$	3,000,000	 	 	 	1.4	%	 	 	5.5	%
	

	LaSalle Bank

National

Association	 	 	
$8,500,000	 	 	$	8,500,000	 	 	$	8,500,000	 	 	 	18.9	%	 	$	8,500,000	 	 	 	18.9	%	 	$	0	 	 	 	0.0	%	 	 	5.5	%
	

	Royal Bank
of Scotland	 	 	
$7,500,000	 	 	$	7,500,000	 	 	$	7,500,000	 	 	 	16.7	%	 	$	7,500,000	 	 	 	16.7	%	 	$	0	 	 	 	0.0	%	 	 	4.8	%
	

	Totals	 	 	
$45,000,000	 	 	$	45,000,000	1	 	$	45,000,000	1	 	 	100	%	 	$	45,000,000	 	 	 	100	%	 	$	220,000,000	 	 	 	100	%	 	 	100	%
	

	1	 	Provided that the aggregate amount of (a) Tranche A Credit Extensions and
(b) Tranche B Credit Extensions shall not exceed $45,000,000 at any time.

 

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SCHEDULE 1.2

PRICING GRID

	 	 	 	 	 	 	 	 	 
	 	 	Applicable Margin for Revolving
	 	 	Loans and Term A Loans
	 	 	

	Total Leverage Ratio	 	Base Rate	 	Eurocurrency Rate
	
	 	
	 	

	* 5.50x
	 	 	2.250	%	 	 	3.250	%
	

	* 5.00x but < 5.50x
	 	 	2.000	%	 	 	3.000	%
	

	* 4.50x but < 5.00x
	 	 	1.750	%	 	 	2.750	%
	

	* 4.00x but < 4.50x
	 	 	1.500	%	 	 	2.500	%
	

	* 3.50x but < 4.00x
	 	 	1.250	%	 	 	2.250	%
	

	* 3.00x but < 3.50x
	 	 	1.000	%	 	 	2.000	%
	

	* 2.50x but < 3.00x
	 	 	0.750	%	 	 	1.750	%
	

	< 2.50x
	 	 	0.500	%	 	 	1.500	%
	

	*	 	Greater than or equal to

 

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SCHEDULE 6.2.3

SCHEDULED TERM A LOAN PAYMENTS

	 	 	 	 	 
	 	 	Percentage of Term A Loans
	Date	 	Originally Outstanding
	
	 	

	December 31, 2003
	 	 	2.50	%
	

	March 31, 2004
	 	 	2.50	%
	June 30, 2004
	 	 	2.50	%
	September 30, 2004
	 	 	2.50	%
	December 31, 2004
	 	 	3.75	%
	

	March 31, 2005
	 	 	3.75	%
	June 30, 2005
	 	 	3.75	%
	September 30, 2005
	 	 	3.75	%
	December 31, 2005
	 	 	5.00	%
	

	March 31, 2006
	 	 	5.00	%
	June 30, 2006
	 	 	5.00	%
	September 30, 2006
	 	 	5.00	%
	December 31, 2006
	 	 	6.25	%
	

	March 31, 2007
	 	 	6.25	%
	June 30, 2007
	 	 	6.25	%
	September 30, 2007
	 	 	6.25	%
	December 31, 2007
	 	 	7.50	%
	

	March 31, 2008
	 	 	7.50	%
	June 30, 2008
	 	 	7.50	%
	September 30, 2008
	 	 	7.50	%
	

 

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SCHEDULE 6.2.4

SCHEDULED TERM B LOAN PAYMENTS

	 	 	 	 	 
	 	 	Percentage of Term B Loans
	Date	 	Originally Outstanding
	
	 	

	March 31, 2003
	 	 	.50	%
	June 30, 2003
	 	 	.25	%
	September 30, 2003
	 	 	.25	%
	December 31, 2003
	 	 	.25	%
	

	March 31, 2004
	 	 	.25	%
	June 30, 2004
	 	 	.25	%
	September 30, 2004
	 	 	.25	%
	December 31, 2004
	 	 	.25	%
	

	March 31, 2005
	 	 	.25	%
	June 30, 2005
	 	 	.25	%
	September 30, 2005
	 	 	.25	%
	December 31, 2005
	 	 	.25	%
	

	March 31, 2006
	 	 	.25	%
	June 30, 2006
	 	 	.25	%
	September 30, 2006
	 	 	.25	%
	December 31, 2006
	 	 	.25	%
	

	March 31, 2007
	 	 	.25	%
	June 30, 2007
	 	 	.25	%
	September 30, 2007
	 	 	.25	%
	December 31, 2007
	 	 	.25	%
	

	March 31, 2008
	 	 	.25	%
	June 30, 2008
	 	 	.25	%
	September 30, 2008
	 	 	.25	%
	December 31, 2008
	 	 	.25	%
	

	March 31, 2009
	 	 	.25	%
	June 30, 2009
	 	 	46.75	%
	September 30, 2009
	 	 	46.75	%
	

 

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SCHEDULE 9.5

RECENT DEVELOPMENTS

Nil.

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SCHEDULE 9.6

LITIGATION AND CONTINGENT LIABILITIES

Nil.

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SCHEDULE 9.8

1.   Subsidiaries

	 	 	 	 	 
	A.   Restricted Subsidiaries (Obligors)	 	Jurisdiction of Incorporation
	
	 	

	US Subsidiaries
	 	 	 	 
	Alliance News Inc.
	 	Delaware
	American Publishing (1991) Inc.
	 	Delaware
	American Publishing Company
	 	Delaware
	American Publishing Company of New York
	 	Delaware
	APAC-90 Oklahoma Holdings, Inc.
	 	Delaware
	APAC-95 Oklahoma Holdings, Inc.
	 	Delaware
	APC 1993, Inc.
	 	Delaware
	APMS-93 Inc.
	 	Illinois
	Chicago Group Acquisition Inc.
	 	Delaware
	Chicago Sun-Times Features, Inc.
	 	Delaware
	Chicago Sun-Times, Inc.
	 	Delaware
	CST Member LLC
	 	Delaware
	Digital Chicago Inc.
	 	Illinois
	Fox Valley Publications, Inc.
	 	Delaware
	HGP, Partnership
	 	New York
	Hollinger NCI Holdings, LLC
	 	Delaware
	HTH Benholdco LLC
	 	Delaware
	HTH Holdings Inc.
	 	Delaware
	LHAT Corporation
	 	Delaware
	Midwest Suburban Publishing, Inc.
	 	Delaware

Table of Contents

	 	 	 	 	 
	A.   Restricted Subsidiaries (Obligors)	 	Jurisdiction of Incorporation
	
	 	

	Oklahoma Airplane LLC
	 	Delaware
	Pioneer Newspapers Inc.
	 	Delaware
	Reach Chicago Inc.
	 	Delaware
	Sun-Times Distribution Systems, Inc.
	 	Delaware
	Sun-Times PRD Inc.
	 	Delaware
	Sun Telemarketing Inc.
	 	Delaware
	TAHL (2002) Inc.
	 	Delaware
	Telegraph Australian Holdings Limited
	 	Delaware (and UK)
	The Johnstown Tribune Publishing Company
	 	Delaware
	The Post-Tribune Company
	 	Delaware
	The Red Streak Holdings Company
	 	Delaware
	The Sun-Times Company
	 	Delaware
	Valley Cable TV, Inc.
	 	California
	 
	UK Subsidiaries
	 	 	 	 
	Creditscheme Limited
	 	England and Wales
	Deedtask Limited
	 	England and Wales
	DT Holdings Limited
	 	England and Wales
	First DT Holdings Limited
	 	England and Wales
	Hollinger UK Holdings Limited
	 	England and Wales
	Second DT Holdings Limited
	 	England and Wales
	Telegraph Group Limited
	 	England and Wales

Table of Contents

	 	 	 	 	 
	A.   Restricted Subsidiaries (Obligors)	 	Jurisdiction of Incorporation
	
	 	

	B.   Restricted Subsidiaries (non-Obligors)
	 	 	 	 
	Hollinger Telegraph New Media Holdings Limited
	 	England and Wales
	Hollinger Telegraph New Media Limited
	 	England and Wales
	The Spectator (1828) Limited
	 	England and Wales
	Telegraph Publishing Limited
	 	England and Wales
	Sugra (Bermuda) Limited
	 	Bermuda
	All Israeli subsidiaries
	 	 	 	 
	 
	C.   Dormant Subsidiaries
	 	 	 	 
	 
	US Subsidiaries
	 	 	 	 
	American Publishing Company of North Carolina
	 	North Carolina
	American Publishing Company of Ohio
	 	Delaware
	American Publishing Company of Pennsylvania
	 	Delaware
	American Publishing Holdings Inc.
	 	Delaware
	American Publishing Management Services, Inc.
	 	Illinois
	APAC-90 Inc.
	 	Delaware
	APAC-95 Inc.
	 	Delaware
	APC Missouri Holdings, Inc.
	 	Delaware
	APMS-90 Inc.
	 	Illinois
	APMS-95 Inc.
	 	Illinois
	Meridian Star, Inc.
	 	Delaware
	New Times Publishing, Inc.
	 	California
	The Statesman-Examiner, Inc.
	 	Delaware
	United Media Group Inc.
	 	Indiana

Table of Contents

	 	 	 	 	 
	A.   Restricted Subsidiaries (Obligors)	 	Jurisdiction of Incorporation
	
	 	

	The Crowley Publishing Corporation
	 	New York
	 
	UK Subsidiaries
	 	 	 	 
	Apollo Advertising Sales Limited
	 	England and Wales
	Doubleclick Limited
	 	England and Wales
	Electronic Telegraph Limited
	 	England and Wales
	HTNM Ventures Limited
	 	England and Wales
	Telegraph (British) Limited
	 	England and Wales
	Telegraph Books Limited
	 	England and Wales
	Telegraph Publishing Limited
	 	England and Wales
	Telegraph Trustees Limited
	 	England and Wales
	The Evening Post Limited
	 	England and Wales
	The Morning Post Limited
	 	England and Wales
	The Sunday Telegraph Limited
	 	England and Wales
	UKMAX Limited
	 	England and Wales
	Young Telegraph Limited
	 	England and Wales

Table of Contents

	 	 	 	 	 
	A.   Restricted Subsidiaries (Obligors)	 	Jurisdiction of Incorporation
	
	 	

	D.   Unrestricted Subsidiaries
	 	 	 	 
	 
	Canadian Subsidiaries
	 	 	 	 
	Hollinger Canadian Publishing Holdings Co. (“HCPH”)
	 	Nova Scotia
	All of the Canadian Subsidiaries of HCPH
	 	 	 	 
	 
	US Subsidiaries
	 	 	 	 
	Hollinger Digital Inc. (subsidiary of HCPH)
	 	Delaware
	HTPC Corporation (subsidiary of HCPH)
	 	Maryland
	Northern Miner U.S.A., Inc. (subsidiary of HCPH)
	 	Delaware
	XSTMBusCommUSA Inc. (subsidiary of HCPH)
	 	Indiana
	XSTMHoldings Corp. (subsidiary of HCPH)
	 	Delaware
	XGEI, Inc. (subsidiary of HCPH)
	 	California

2.   Corporate Ownership of Financial Group:

		
	 	     See attached Appendix 1 to this Schedule.

3.   Minority Shareholdings in Financial Group:

		
	 	The Johnstown Tribune Publishing Company has a 1% interest in HGP,
Partnership.
	 
	 	Gordon L. Shankland has a 20% interest in Sun-Times Distribution Systems.
He owns 2,000 issued and outstanding shares of the Common Stock of
Sun-Times Distribution Systems.

4.   Partnerships and Joint Ventures in which any Member of Financial Group Participates:

		
	 	See Schedule 10.10 to this Agreement.

5.   Loans within the Financial Group in excess of $1,000,000:

		
	 	See attached Appendix 2 to this Schedule.

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6.   Borrower and Restricted Subsidiary Obligors -Test for Solvency

		
	 	See attached Appendix 3 to this Schedule.

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Table of Contents

Table of Contents

Table of Contents

SCHEDULE 1

OTHER/DORMANT COMPANIES

TGL

	A.	 	The following companies are (i) other and (ii) dormant subsidiaries of
Telegraph Group Limited. In each case, Telegraph Group Limited owns 100%
of the shares.
	 
	(i)	 	The Spectator (1828) Limited

Telegraph Publishing Limited
	 
	(ii)	 	The Evening Post Limited

The Sunday Telegraph Limited

The Morning Post Limited

Young Telegraph Limited

Telegraph Trustees Limited

Telegraph Books Limited

Doubleclick Limited

Apollo Advertising Sales Limited

HTNMH

	B.	 	The following companies are dormant subsidiaries of Hollinger Telegraph
New Media Holdings Limited. In each case Hollinger Telegraph New Media
Holdings Limited owns 100% of the shares.
	 
	 	 	Telegraph (British) Limited

Electronic Telegraph Limited

UKMAX Limited

FDTH

	C.	 	The following is a dormant subsidiary of First DT Holdings Limited. 100% of
the shares are owned.
	 
	 	 	HTNM Ventures Limited

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Appendix 2 to Schedule 9.8

All loans owing within the Financial Group in excess of $1,000,000

USD unless otherwise stated

	 	 	 	 	 	 	 	 	 	 	 
	Debtor (A/P)	 	Creditor (A/R)	 	Amount	 	Currency	 	US$
	
	 	
	 	
	 	
	 	

	American Publishing Company	 	Hollinger International Publishing Inc.	 	 	2,600,000.00	 	 	USD	 	 
	Chicago Sun-Times, Inc.	 	Fox Valley Publications, Inc.	 	 	1,642,532.00	 	 	USD	 	 
	Chicago Sun-Times, Inc.	 	
Hollinger International Publishing Inc.
	 	 	58,314,581.86	 	 	USD	 	 
	Chicago Sun-Times, Inc.	 	
Midwest Suburban Publishing, Inc.
	 	 	30,497,699.00	 	 	USD	 	 
	Chicago Sun-Times, Inc.	 	
Pioneer Newspapers Inc.
	 	 	30,926,244.00	 	 	USD	 	 
	Chicago Sun-Times, Inc.	 	
Post-Tribune Company, The
	 	 	1,275,155.00	 	 	USD	 	 
	Chicago Sun-Times, Inc.	 	
Telegraph Australian Holdings Limited
	 	 	11,847,481.00	 	 	USD	 	 
	DT Holdings Limited	 	
Hollinger International Publishing Inc.
	 	 	7,924,378.73	 	 	USD	 	 
	DT Holdings Limited	 	
Telegraph Australian Holdings Limited
	 	 	700,035.88	 	 	GBP
	 	1,088,770.84
	DT Holdings Limited	 	
Telegraph Group Limited
	 	 	14,000,000.00	 	 	GBP
	 	21,774,300.68
	First DT Holdings Limited	 	
DT Holdings Limited
	 	 	11,436,298.00	 	 	GBP
	 	17,786,956.52
	First DT Holdings Limited	 	
DT Holdings Limited
	 	 	10,000,000.00	 	 	GBP
	 	*14,202,000.00
	First DT Holdings Limited	 	
Hollinger International Publishing Inc.
	 	 	193,389,905.84	 	 	GBP
	 	300,780,711.26
	First DT Holdings Limited	 	
Hollinger International Publishing Inc.
	 	 	4,506,304.13	 	 	USD	 	 
	First DT Holdings Limited	 	
Telegraph Australian Holdings Limited
	 	 	17,528,506.00	 	 	GBP
	 	27,262,211.43
	First DT Holdings Limited	 	
Telegraph Australian Holdings Limited
	 	 	4,647,990.00	 	 	GBP
	 	7,229,052.27
	First DT Holdings Limited	 	
Telegraph Australian Holdings Limited
	 	 	701,566.00	 	 	GBP
	 	1,091,150.64
	First DT Holdings Limited	 	
Telegraph Australian Holdings Limited
	 	 	13,018,378.64	 	 	GBP	 	 
	First DT Holdings Limited	 	
Telegraph Group Limited
	 	 	26,023,426.54	 	 	USD	 	 
	First DT Holdings Limited	 	
Telegraph Group Limited
	 	 	40,659,566.01	 	 	USD	 	 
	First DT Holdings Limited	 	
Second DT Holdings Limited
	 	 	10,427,694.00	 	 	GBP
	 	20,247,577.92
	Fox Valley Publications, Inc.	 	
Hollinger International Publishing Inc.
	 	 	106,578,325.54	 	 	USD	 	 
	Fox Valley Publications, Inc.	 	
Midwest Suburban Publishing, Inc.
	 	 	1,421,531.00	 	 	USD	 	 

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	Debtor (A/P)	 	Creditor (A/R)	 	Amount	 	Currency	 	US$
	
	 	
	 	
	 	
	 	

	Hollinger International Publishing Inc.	 	
American Publishing Company
	 	 	504,008,500.93	 	 	USD	 	 
	Hollinger International Publishing Inc.	 	
Post-Tribune Company, The
	 	 	1,656,420.04	 	 	USD	 	 
	Hollinger International Publishing Inc.	 	
Telegraph Australian Holdings Limited
	 	 	175,861,261.00	 	 	USD	 	 
	Hollinger International Publishing Inc.	 	
Telegraph Australian Holdings Limited
	 	 	134,635,314.71	 	 	USD	 	 
	Hollinger International Publishing Inc.	 	
Telegraph Australian Holdings Limited
	 	 	62,301,580.27	 	 	USD	 	 
	Hollinger International Publishing Inc.	 	
Telegraph Australian Holdings Limited
	 	 	38,782,476.00	 	 	USD	 	 
	Hollinger International Publishing Inc.	 	
Telegraph Australian Holdings Limited
	 	 	23,813,848.24	 	 	USD	 	 
	Hollinger International Publishing Inc.	 	
Telegraph Australian Holdings Limited
	 	 	20,017,740.11	 	 	GBP
	 	31,133,735.14
	Hollinger International Publishing Inc.	 	
HGP, Partnership
	 	 	185,130,000.00	 	 	USD	 	 
	Johnstown Tribune Publishing Company, The	 	
HGP, Partnership
	 	 	1,870,000.00	 	 	USD	 	 
	Midwest Suburban Publishing, Inc.	 	
American Publishing Company
	 	 	2,500,000.00	 	 	USD	 	 
	Midwest Suburban Publishing, Inc.	 	
Hollinger International Publishing Inc.
	 	 	4,725,257.17	 	 	USD	 	 
	Pioneer Newspapers Inc.	 	
Hollinger International Publishing Inc.
	 	 	6,410,668.27	 	 	USD	 	 
	Post Tribune Company, The	 	
American Publishing 1991 Inc.
	 	 	17,391,000.00	 	 	USD	 	 
	Post-Tribune Company, The	 	
American Publishing Company
	 	 	36,405,025.00	 	 	USD	 	 
	Telegraph Australian Holdings Limited	 	
First DT Holdings Limited
	 	 	3,641,323.42	 	 	USD	 	 
	Telegraph Australian Holdings Limited	 	
Hollinger International Publishing Inc.
	 	 	3,947,825.38	 	 	USD	 	 
	Telegraph Group Limited	 	
Deedtask Limited
	 	 	1,695,546.00	 	 	GBP
	 	2,637,094.89
	Telegraph Group Limited	 	
Telegraph Australian Holdings Limited
	 	 	4,842,094.33	 	 	GBP
	 	7,530,944.13
	Telegraph Group Limited	 	
Telegraph Australian Holdings Limited
	 	 	19,982,618.29	 	 	GBP
	 	31,079,109.93
	Telegraph Group Limited	 	
Telegraph Australian Holdings Limited
	 	 	6,260,347.39	 	 	GBP
	 	9,736,763.32

* as agreed between the parties

Table of Contents

Appendix 3 to Schedule 9.8

Borrower and Restricted Subsidiary Obligors

(As required for the Solvency Test set forth in section 9.14 of the Credit Agreement)

Hollinger International Publishing Inc.

Chicago Sun Times, Inc.

The Sun-Times Company

Pioneer Newspapers Inc.

Midwest Suburban Publishing Inc.

The Post-Tribune Company

DT Holdings Limited

First DT Holdings Limited

Second DT Holdings Limited

Telegraph Group Limited

Creditscheme Limited

Deedtask Limited

Hollinger UK Holdings Limited

HTNM Ventures Limited

Table of Contents

SCHEDULE 9.9

WELFARE PLANS

	 	 	U.S.
	 
	1.	 	Chicago Sun-Times, Inc.
For retired employees who had been covered under the Chicago Sun-Times’
group life insurance plans who:

	 	(a)	 	retired after age 60 with at least 20 years of continuous
service, or
retired after age 65 with at least 10 years of continuous service,
and
	 
	 	(b)	 	began participation in the life insurance plan prior to age
55, and
	 
	 	(c)	 	the current policy value is over $4,000, then the Company
will maintain a $1,000 group life insurance policy. The Chicago
Sun-Times, on behalf of the beneficiary, files all claims.

	2.	 	Midwest Suburban Publishing Inc.

	 	(a)	 	Star Publications, Inc. (now a division of Midwest)

	 	(i)	 	Group medical insurance for employees who
retire with 20 or more years of service.
	 
	 	(ii)	 	Company-paid dental coverage until age 65
for retired managers and department heads and their
eligible dependents. As of February, 1994 this coverage
was being provided for only one retiree.

	3.	 	Pioneer Newspapers Inc.

	 	(a)	 	Does not offer any welfare benefits after retirement other than COBRA.

	4.	 	The Post-Tribune Company

	 	(a)	 	Does not offer any welfare benefits after retirement other than COBRA.

	5.	 	Fox Valley Publications Inc.

	 	(a)	 	Does not offer any welfare benefits after retirement other than COBRA.

	6.	 	Jerusalem Post

	 	(a)	 	Post retirement benefits and pensions are state funded.

	7.	 	American Publishing Company and subsidiaries

	 	(a)	 	None

Table of Contents

SCHEDULE 9.15

INSURANCE

	1.	 	Property, Casualty and Business Interruption Insurance Programs Carried
by the Company and its Subsidiaries

	 	A.	 	Telegraph Group Limited and Subsidiary Companies

	 	•	 	See attached summary prepared by AON Ltd. and
Perkins Slade Limited.

	 	B.	 	Hollinger International Inc., Hollinger Inc. and the
Ravelston Corporation and
Subsidiary Companies

	 	•	 	See attached summary prepared by Aon Reed Stenhouse.

	2.	 	Retrospective Rating Plans, Fronting Arrangements and Risk Assumption
Agreed to by the Company or any Restricted Subsidiary
	 
	 	 	Nil.
	 
	3.	 	Self-Assurance Programs
	 
	 	 	Nil.

 

Table of Contents

	A.	 	Insurance Policies for Telegraph Group Limited and Subsidiary Companies

See attached summaries of the following policies held by Telegraph Group
Limited and its subsidiaries:

	 	1.	 	Property / Business Interruption Insurance

	 	(a)	 	Material Damage Section
	 
	 	(b)	 	Business Interruption Section

	 	2.	 	Short Period All Risks Facility
	 
	 	3.	 	Employers Liability Insurance
	 
	 	4.	 	Public / Product Liability Insurance
	 
	 	5.	 	Marine Insurance
	 
	 	6.	 	Motor Fleet Insurance

Date of Summary: November 27, 2002.

Produced By:

	 	 	 
	AON Ltd	 	
Perkins Slade Limited
	158 Edmund Street	 	
3 Broadway
	Birmingham	 	
Broad Street
	B3 2HB	 	
Birmingham
	 	 	
B15 1BQ
	 	 	 
	Tel: 0121 253 3100	 	
Tel: 0121 698 8000
	Fax: 0121 212 1200	 	
Fax: 0121 625 9000

 

Table of Contents

General Information

	 	 	 
	Description of Company’s
Business	 	
Publishers of newspapers, magazines, books and
maps; sponsors of the arts, sports and cultural
events; Restaurateurs; Property owners and / or
occupiers; Organizers and promoters of
exhibitions; Promoters of “Off-Page” reader
offers; Publishers of Data Electronically
	 	 	 
	Insured Title	 	
Unless stated to the contrary on the relevant
summary pages, all policies are issued in the
following name:
	 	 	 
	 	 	
The Telegraph Group Limited and The Spectator
(1828) Limited and / or Subsidiary Companies
	 	 	 
	Subsidiary Companies	 	
Trading:
	 	 	 
	 	 	
The Sunday Telegraph Limited

The Daily Telegraph Business Network Limited

Telegraph Publishing Limited

Business News Deliveries Limited

The Spectator (1828) Limited

Equalmission Limited

Telegraph Australian Holdings Limited

Deedtask Limited

Creditscheme Limited

UK Max Limited

Hollinger Telegraph New Media Limited

Thebestofbritish.com Limited
	 	 	 
	 	 	
Dormant:
	 	 	 
	 	 	
Slobodon Limited

The Evening Post Limited

Yellov Limited

DT Developments Limited

The Morning Post Limited

Telegraph Trustees Limited

Young Telegraph Limited

Telegraph Books Limited

Doubleclick (UK) Limited

 

Table of Contents

1.  PROPERTY/BUSINESS INTERRUPTION INSURANCE

	 	 	 
	Insurers	 	
Factory Mutual
	Policy Number	 	
UK020574
	Insurance Period	 	
July 1, 2002 — August 1, 2003
	Insured	 	
Telegraph Group Ltd and Associated and Subsidiary Companies
	Annual Premium	 	
£ 398,162.10 (Property/Business Interruption)
	Including Tax	 	
£ 119,170.80 (Terrorism)

1(a).  MATERIAL DAMAGE SECTION

	 	 	 
	Cover	 	
All Risks of Loss or Damage, including Theft, subject to policy
definition and exclusions. Cover includes full “Terrorism”. Theft is
restricted to that involving entry to or exit from the premises by
forcible and violent means, other than for 1 Canada Square.
	 	 	 
	Terrorism Risks	 	
Full All Risk Cover in UK
	 	 	 
	 	 	
Full cover in France and Spain
	 	 	 
	 	 	
Excluded in all other territories
	 	 	 
	Excesses	 	
£15,000: Each and every loss (Combined Damage & Business
Interruption)
	 	 	 
	Principal Excluded Risks	 	1. Loss of market or loss of use, except to the extent provided by
this Policy.
	 	 	 
	 	 	
2. Loss or damage or deterioration arising from any delay.
	 	 	 
	 	 	
3. Mysterious disappearance, loss or shortage disclosed on taking
inventory, or any unexplained loss.
	 	 	 
	 	 	
4. Loss resulting from voluntary parting with title or possession
of property if induced by any 

    fraudulent act or by false pretence.
	 	 	 
	 	 	
5. War risks.
	 	 	 
	 	 	
6. Seizure or destruction under quarantine or custom regulation, or
confiscation by order of any 

    governmental or public authority.
	 	 	 
	 	 	
7. Any dishonest act, including but not limited to theft, committed
alone or in collusion with others, 

    at any time:
	 	 	 
	 	 	
a. by any Director, trustee, officer, or employee of an Insured; or
	 	 	 
	 	 	
b. by any Director, trustee, or officer of any business or entity
(other than a common carrier) engaged 

    by an Insured to do anything
in connection with property insured under this Policy.

 

Table of Contents

	 	 	 
	 	 	
This Policy does insure acts of damage intentionally caused by an
employee of an Insured or any individual specified in (b) above, and
done without the knowledge of the Insured. In no event does this
Policy cover loss by theft by any individual specified in (a) or (b)
above.
	 	 	 
	Principal Excluded

Property	 	
A. currency, money, precious metal, or securities.
	 	 	 
	 	 	
B. vehicles of Directors or employees or vehicles otherwise insured
for physical loss or damage.
	 	 	 
	 	 	
C. property in transit, except as otherwise provided by this Policy.
	 	 	 
	 	 	
D. electronic data, programs and software, except when they are
stock in process, raw materials, supplies or other merchandise not
manufactured by the Insured or as otherwise provided by the DATA,
PROGRAMS OR SOFTWARE coverage of this Policy.
	 	 	 
	Geographical Limits	 	
Worldwide except Afghanistan, Algeria, Angola, Armenia, Azerbaijan,
Bosnia-Herzegovina, Botswana, Burundi, Chechnya, Croatia, Cuba,
Democratic Republic of the Congo (former Zaire), Eritrea, Ethiopia,
Federal Republic of Yugoslavia, Haiti, Iran, Iraq, Kashmir, Lebanon,
Liberia, Libya, Montserrat, Myanmar (Burma), Nigeria, North Korea,
Paidstan, Rwanda, Somalia, Sri Lanka, Sudan, Turkish province of
Agri, Bingol, Bitlis, Diyarbakir, Elazig, Hakkari, Mardin, Mus, Siim
Urfa and Van and Yemen.
	 	 	 
	Definition Of Insured

Premises	 	
1. Canada Square, Canary Wharf, London E14 5DT,
	 	 	 
	 	 	
2. Salters Hall, Fore Street, London EC2Y 5DT,
	 	 	 
	 	 	
3. Victory House, Meeting House Lane, Chatham, Kent ME4 4YU,
	 	 	 
	 	 	
4. Any overseas offices, as declared,
	 	 	 
	 	 	
5. Any other premises owned, occupied or used by the Insured, and
including the Insured’s property whilst in transit by Road, Rail, or
inland waterway.
	 	 	 
	Additional Interests	 	
A waiver of subrogation against West Ferry Printers Ltd. and
Trafford Park Printers is agreed.
	 	 	 
	Other Interests Protected	 	
Mercantile Credit Co. Limited
	 	 	 
	Values Insured	 	
As declared annually. See schedule attached.
	 	 	 
	Property Sub Limits	 	
Miscellaneous Unnamed Locations: £5,000,000 per location

Fine Arts (but not to exceed a £10,000 limit for irreplaceable
Fine
Arts not on a schedule on file with Insurers): £5,000,000

 

Table of Contents

	 	 	 
	 	 	
Valuable Papers and Records (but not to exceed a £10,000 limit for
Irreplaceable Valuable Papers and Records not on a schedule file
with Insurers): £5,000,000
	 	 	 
	 	 	
Professional Fees: £25,000 plus 50% of the amount recoverable under
policy in excess of £25,000
	 	 	 
	 	 	
Land & Water Contaminant or Pollutant Cleanup, Removal and Disposal:
	 	 	
£50,000 in the aggregate during any policy year
	 	 	 
	 	 	
Earth Movement: £60,000,000 in the aggregate during any policy year
	 	 	 
	 	 	
Flood: £60,000,000 in the aggregate during any policy year
	 	 	 
	 	 	
Miscellaneous Personal Property: £100,000

 

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TELEGRAPH GROUP LIMITED — DECLARED PROPERTY & BUSINESS INTERRUPTION VALUES — 2002 RENEWAL

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Equipment	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Including	 	Stock/	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Office	 	Newsprint	 	 	 	 	 	Total
	 	 	Building	 	Contents &	 	Inventory/	 	Bus.	 	Insured
	Name & Address	 	Value	 	E.D.P.	 	Misc.	 	Interruption	 	Value
	
	 	
	 	
	 	
	 	
	 	

	Elkens Storage &
	 	 	—	 	 	 	—	 	 	 	£15,000	 	 	Incl.	 	 	15,000	 
	Marketing Support Ltd
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Unit 7, Wollaston
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Crescent, Wollaston
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Industrial Estate
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Basildon Essex SS13
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1QD UK (Warehouse for
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Publicity Material)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Apartment 21 at
	 	 	—	 	 	 	£50,000	 	 	 	—	 	 	Incl.	 	 	50,000	 
	Building No. 4, JGMW

	Diplomatic Compound

	Beijing People’s

	Republic of China
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Daily Telegraph
	 	 	—	 	 	 	£20,000	 	 	 	—	 	 	Incl.	 	 	20,000	 
	Jian Guo Men Wai
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Diplomatic Compound
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4-1-21 Beijing 100600
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	People’s Republic of
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	China
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Daily Telegraph, 13
	 	 	—	 	 	 	£50,000	 	 	 	—	 	 	Incl.	 	 	50,000	 
	Square Marie-Louise Box

	1 Brussels 1000 Belgium
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	21/23 West Ferry Road
	 	 	—	 	 	 	—	 	 	 	£500,000	 	 	Incl.	 	 	500,000	 
	(Archive library and
store)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Isle of Dogs E14
UK
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Daily Telegraph,
	 	 	—	 	 	 	£50,000	 	 	 	—	 	 	Incl.	 	 	50,000	 
	Box 4 Beit Agron,
Hillel

	Street Jerusalem
Israel
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Daily Telegraph,
	 	 	—	 	 	 	£50,000	 	 	 	—	 	 	Incl.	 	 	50,000	 
	P.O. Box 975 Auckland
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Park 2006 Johannesburg
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	South Africa
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

Table of Contents

TELEGRAPH GROUP LIMITED — DECLARED PROPERTY & BUSINESS INTERRUPTION VALUES — 2002 RENEWAL

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Equipment	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Including	 	Stock/	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Office	 	Newsprint	 	 	 	 	 	Total
	 	 	Building	 	Contents &	 	Inventory/	 	Bus.	 	Insured
	Name & Address	 	Value	 	E.D.P.	 	Misc.	 	Interruption	 	Value
	
	 	
	 	
	 	
	 	
	 	

	Multi-Story Car Park
	 	 	£8,088,000	 	 	 	—	 	 	 	—	 	 	Incl.	 	 	£8,088,000	 
	Lawn House Marsh Wall
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	London E14 UK
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	City Office Fore Street
	 	 	£411,000	 	 	 	£1,626,000	 	 	 	—	 	 	Incl.	 	 	£2,037,000	 
	London EC2 UK
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Telegraph Group
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	£305,407,000	 	 	 	£305,407,000	 
	Limited 1 Canada Square
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	— Canary Wharf
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	London
E14 5DT UK
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Daily Telegraph,
	 	 	—	 	 	 	£50,000	 	 	 	—	 	 	Incl.	 	 	£50,000	 
	12/24 Sadovo

	Samotechnaya, KV 51
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Moscow Russia
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Daily Telegraph,
	 	 	—	 	 	 	£50,000	 	 	 	—	 	 	Incl.	 	 	£50,000	 
	584 Broadway Suite 601
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	New York NY USA
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	62-68 10117 Berlin
	 	 	—	 	 	 	£50,000	 	 	 	—	 	 	 	—	 	 	 	£50,000	 
	Germany
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	242 Rue de Rivoli
	 	 	—	 	 	 	£50,000	 	 	 	—	 	 	Incl.	 	 	£50,000	 
	750001 Paris France
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Daily Telegraph,
	 	 	—	 	 	 	£50,000	 	 	 	—	 	 	Incl.	 	 	£50,000	 
	Suite 9041331

	Pennsylvania Ave.

	N.W
Washington D.C.

	USA
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Electricity Substation
	 	 	—	 	 	 	—	 	 	 	£207,000	 	 	Incl.	 	 	£207,000	 
	(1 Canada Square
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Canary
Wharf) UK
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tenants Improvements
	 	 	£6,485,000	 	 	 	—	 	 	 	—	 	 	Incl.	 	 	£6,485,000	 
	(1 Canada Square

	Canary
Wharf)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	UK
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

Table of Contents

TELEGRAPH GROUP LIMITED — DECLARED PROPERTY & BUSINESS INTERRUPTION VALUES — 2002 RENEWAL

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Equipment	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Including	 	Stock/	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Office	 	Newsprint	 	 	 	 	 	Total
	 	 	Building	 	Contents &	 	Inventory/	 	Bus.	 	Insured
	Name & Address	 	Value	 	E.D.P.	 	Misc.	 	Interruption	 	Value
	
	 	
	 	
	 	
	 	
	 	

	Computer Equipment
	 	 	—	 	 	 	£825,000	 	 	 	—	 	 	 	—	 	 	 	£825,000	 
	Globix,
80 — 110
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	New Oxford Street,
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	London
UK
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Finished product at
	 	 	—	 	 	 	—	 	 	 	£2,400,000	 	 	Incl.	 	 	£2,400,000	 
	printers premises
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	anywhere in Europe
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Football Trophy UK
	 	 	—	 	 	 	£5,000	 	 	 	 	 	 	 	—	 	 	 	£5,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	On any of the above
	 	 	—	 	 	 	£26,207,000	 	 	 	£2,000,000	 	 	Incl.	 	 	£28,207,000	 
	premises or elsewhere
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	the World where the
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	insured is carrying on
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	business. Worldwide
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DT Picture Desk —
	 	 	—	 	 	 	£104,500	 	 	 	—	 	 	 	—	 	 	 	£104,500	 
	Digital Cameras,
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Macintosh Laptops/
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Scanners etc. 1x600 and

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2x300 NIKON Lenses
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Worldwide
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ST Picture Desk — 6 x
	 	 	—	 	 	 	£38,000	 	 	 	—	 	 	 	—	 	 	 	£38,000	 
	Mac/Scanner Worldwide
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sport — Cameras,
	 	 	—	 	 	 	£33,000	 	 	 	—	 	 	 	—	 	 	 	£33,000	 
	Lenses/Mac/Scanner
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Jockey Trophy Anywhere
	 	 	—	 	 	 	£12,000	 	 	 	—	 	 	 	—	 	 	 	£12,000	 
	in UK Worldwide
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Battle of Britain Maps
	 	 	—	 	 	 	£17,500	 	 	 	—	 	 	 	—	 	 	 	£17,500	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	“Structure” at Royal
	 	 	—	 	 	 	—	 	 	 	£70,000	 	 	Incl.	 	 	£70,000	 
	Horticultural Society
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gardens, Wisley
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

Table of Contents

TELEGRAPH GROUP LIMITED — DECLARED PROPERTY & BUSINESS INTERRUPTION VALUES — 2002 RENEWAL

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Equipment	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Including	 	Stock/	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Office	 	Newsprint	 	 	 	 	 	Total
	 	 	Building	 	Contents &	 	Inventory/	 	Bus.	 	Insured
	Name & Address	 	Value	 	E.D.P.	 	Misc.	 	Interruption	 	Value
	
	 	
	 	
	 	
	 	
	 	

	West Ferry Printers
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	0	 
	Ltd. West Ferry Rd.,
Isle
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	of Dogs London E14
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	UK
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3 Beaufort Court, Marsh
	 	 	—	 	 	 	£30,000	 	 	 	—	 	 	 	—	 	 	 	£30,000	 
	Wall London E14 UK
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Victory House, Chatham,
	 	 	—	 	 	 	£820,000	 	 	 	£140,000	 	 	 	—	 	 	 	£960,000	 
	Kent Office
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Victory House, Chatham,
	 	 	—	 	 	 	£90,000	 	 	 	—	 	 	 	—	 	 	 	£90,000	 
	Kent Tenants

	Improvements
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Printers in Brussels
	 	 	—	 	 	 	£50,000	 	 	 	—	 	 	 	—	 	 	 	£50,000	 
	Belgium
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Printers in Madrid Spain
	 	 	—	 	 	 	£60,000	 	 	 	—	 	 	 	—	 	 	 	£60,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	West Ferry Printers
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	£550,000	 	 	 	£550,000	 
	Fixed Costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Trafford Park Printers
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	£280,000	 	 	 	£280,000	 
	Fixed Costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overseas Printers Fixed
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	£80,000	 	 	 	£80,000	 
	Costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Magazines Fixed Costs
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	£1,215,000	 	 	 	£1,215,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Increased Cost of
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	£5,000,000	 	 	 	£5,000,000	 
	Working
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fines and Penalties
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	£5,079,000	 	 	 	£5,079,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Additional Increased
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	£21,000,000	 	 	 	£21,000,000	 
	Cost of Working
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rent Payable Canary
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	£17,455,000	 	 	 	£17,455,000	 
	Wharf
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

Table of Contents

TELEGRAPH GROUP LIMITED — DECLARED PROPERTY & BUSINESS INTERRUPTION VALUES — 2002 RENEWAL

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Equipment	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Including	 	Stock/	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Office	 	Newsprint	 	 	 	 	 	Total
	 	 	 	Building	 	Contents &	 	Inventory/	 	Bus.	 	Insured
	Name & Address	 	Value	 	E.D.P.	 	Misc.	 	Interruption	 	Value
	
	 	
	 	
	 	
	 	
	 	

	Newsprint Costs
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	£1,000,000	 	 	 	£1,000,000	 
	 
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	 	Total
	 	 	£14,984,000	 	 	 	£30,388,000	 	 	 	£5,332,000	 	 	 	£357,066,000	 	 	 	£407,770,000	 
	 
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 

 

Table of Contents

1(b).  BUSINESS INTERRUPTION SECTION

	 	 	 
	Cover	 	
Consequential losses following damage insured under the Material Damage
Section.
	 	 	 
	Excess (Each And

Every Loss) Or

Deferred Period	 	
£150,000 Excess each & Every Loss (combined Material Damage/Business
Interruption).
	 	 	 
	 	 	
£150,000 each and every loss following Damage at West Ferry Printers
Ltd. and/or Trafford Park Printers Ltd.
	 	 	 
	 	 	
24 Hour Time excess in respect of Service Interruption.
	 	 	 
	Premises Insured	 	
1. The Insured’s Premises.
	 	 	 
	 	 	
2. Any location of Direct Suppliers or Customers.
	 	 	 
	 	 	
3. Premises of any supplier of Electricity, Gas, Fuel, Steam, Water,
Refrigeration, Outgoing Sewerage including the feedlines within the
policy territorial limits.

Sums Insured and Indemnity Periods

	 	 	 	 	 	 	 	 	 	 
	 	Item	 	Sum Insured	 	Indemnity Period
	 	
	 	
	 	

	 	Estimated Net Revenue
	 	 	£305,407,000	 	 	18 months
	 	 
	 	 	 	 	 	 	 	 
	 	 
	 	Note: Based on an	 	 	 	 
	 	 
	 	annual (12 month)	 	 	 	 
	 	 
	 	figure of	 	 	 	 
	 	 
	 	 	£203,604,667	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 
	 	West Ferry Fixed
Costs
	 	 	£550,000	 	 	2 weeks
	 	 
	 	 	 	 	 	 	 	 
	 	Trafford Park Fixed
Costs
	 	 	£280,000	 	 	2 weeks
	 	 
	 	 	 	 	 	 	 	 
	 	Magazine Fixed Costs
	 	 	£1,215,000	 	 	4 weeks
	 	 
	 	 	 	 	 	 	 	 
	 	Increased Cost of
Working (Kings
Cross)
	 	 	£5,000,000	 	 	24 months
	 	 
	 	 	 	 	 	 	 	 
	 	Fines and Penalties
	 	 	£5,079,000	 	 	Variable
	 	 
	 	 	 	 	 	12 weeks/4 weeks
	 	 
	 	 	 	 	 	 	 	 
	 	Additional Increased
Cost of Working
	 	 	£21,000,000	 	 	24 months
	 	 
	 	 	 	 	 	 	 	 
	 	Rent Payable Canary
Wharf
	 	 	£17,455,000	 	 	36 months
	 	 
	 	 	 	 	 	 	 	 
	 	Newsprint Costs
	 	 	£1,000,000	 	 	24 months

 

Table of Contents

	 	 	 
	Inner Limits	 	
• £240M – West Ferry Printers/Trafford Park Printers
	 	 	 
	 	 	
• £2.5M – Any other supplier or Customer
	 	 	 
	 	 	
• £5M – Accounts receivable
	 	 	 
	 	 	
• £5M – Commissions, Profits and Royalties
	 	 	 
	 	 	
• £5M – Deferred Payments
	 	 	 
	 	 	
• £5M – Service Interruption (Utility Suppliers).
	 	 	 
	Other Extensions	 	
Denial of Access/Egress to Premises.
	 	 	 
	 	 	30 days Indemnity Period.
	 	 	 
	 	 	£6M Limit.
	 	 	 
	Definition of Net
Revenue	 	
Revenue less the following costs:
	 	 	 
	 	 	
1. Printers fixed and variable costs.
	 	 	 
	 	 	
2. Magazine and variable costs.
	 	 	 
	 	 	
3. Per Insured’s forecast as advised to Insurer.

 

Table of Contents

2.  SHORT PERIOD ALL RISKS FACILITY

	 	 	 
	Insurers	 	
NIG
	Policy Number	 	
TBA
	Policy Period	 	
July 1, 2002 — June 30, 2003
	Insured	 	
Telegraph Group Ltd and all Subsidiary Companies
	Annual Premium Including Tax	 	
£ 2,625.00

	 	 	 
	Cover	 	
“All Risks” of Loss or Damage.
	 	 	 
	Property Insured	 	
Property on loan to Telegraph and for which they are responsible, for photo shoots and
similar events.
	 	 	 
	Sums Insured	 	
£75,000 in total any one event in the U.K.
	 	 	 
	 	 	
£25,000 in total any one event overseas.
	 	 	 
	Excess	 	
£250 each and every claim where the total at risk is up to £5,000.
	 	 	 
	 	 	
£500 each and every claim where the total at risk exceed £5,000.
	 	 	 
	Principal Cover Conditions	 	
1. Cover excludes theft from unattended vehicles.
	 	 	
2. The policy does not cover Motor Vehicles or Watercraft.
	 	 	 
	 	 	
3. Cover is for a maximum of 30 days any one event.
	 	 	 
	Arranging Cover	 	
Perkins Slade needs to be advised in advance when cover is required.

 

Table of Contents

3.  EMPLOYERS LIABILITY INSURANCE

	 	 	 
	Insurers	 	
Royal & Sun Alliance
	Policy Number	 	
RKJ852084
	Policy Period	 	
July 1, 2002 — June 30, 2003 inclusive
	Insured	 	
Telegraph Group Ltd and all Subsidiary Companies
	Annual Premium

Including Tax	 	
£ 73,500.00

	 	 	 
	Cover	 	
Legal Liability to pay damages or compensation in respect of death, bodily injury,
illness or disease to your employees arising out of and in the course of their
employment.
	 	 	 
	Limit of Liability	 	
£10,000,000 any one occurrence, inclusive of costs.
	 	 	 
	Territorial Limits	 	
Anywhere in the world, subject to employees being employed by you in the U.K., but
excluding offshore work.
	 	 	 
	Jurisdiction	 	
Worldwide.

	 	 	 	 	 	 
	 	Estimates for premium purposes:	 	 	 	 
	 	 	 	 	 	 
	 	Reporters/New Photographers
	 	 	£21,676,000	 
	 	Printers/Production Staff
	 	 	£1,611,000	 
	 	Sales/Clerical/Administrative/Managerial
	 	 	£23,204,000	 
	 	Manual Work away from your premises
	 	NIL
	 	All Other Staff
	 	NIL
	 	Reporters Overseas
	 	 	£572,000	 

	 	 	 
	Definition of Employee	 	
1. Any Director of the Insured.
	 	 	 
	 	 	
2. Any person under a contract of service or apprenticeship with the Insured.
	 	 	 
	 	 	
3. Any person supplied to or hired to or borrowed by the Insured.
	 	 	 
	 	 	
4. Any labour master or person supplied by the Insured.
	 	 	 
	 	 	
5. Any person engaged by labour only sub-contractors.
	 	 	 
	 	 	
6. Any self-employed person performing work of a kind ordinarily
performed under a contract of

    service or apprenticeship with the Insured.

 

Table of Contents

	 	 	 
	 	 	
7. Any person supplied to the Insured under a contract or agreement, the terms of
which deem such person to be in the employment of the Insured for the duration of such
contract or agreement.
	 	 	 
	 	 	
8. Any person in connection with a work experience/study scheme or similar scheme.
	 	 	 
	Claims Notification	 	
Policy conditions require notification to Insurers of any incident which may give rise
to a claim. The following should be notified to Perkins Slade:
	 	 	 
	 	 	
1. Any incident where an injured employee (or his representative) has intimated
verbally or in writing that a claim may be made.
	 	 	 
	 	 	
2. Any incident which is notifiable to the Health and Safety Executive under the
RIDDOR regulations.
	 	 	 
	 	 	
3. Any accident necessitating the calling of Ambulance or Medical Assistance.
	 	 	 
	 	 	
If in any doubt seek guidance form Perkins Slade.

 

Table of Contents

4.  PUBLIC/PRODUCT LIABILITY INSURANCE

	 	 	 
	Insurers	 	
AIG
	Policy Number	 	
20002925
	Policy Period	 	
July 1, 2002 — June 30, 2003 inclusive
	Insured	 	
Telegraph Group Ltd and/or Associated and/or
Subsidiary Company
	Annual Premium Including Tax	 	
£20,360.00

	 	 	 	 	 
	Cover	 	Legal Liability to pay damages or compensation in respect of third party
bodily injury or loss of or damage to third party material property,
nuisance, trespass (or interference with any easement, right of air, light,
water or way).
	 	 	 	 	 
	 	 	Cover includes pollution caused by a sudden identifiable unintended and
unexpected event which takes place in its entirety at a specific time and
place during the period of Insurance.
	 	 	 	 	 
	Limit of Liability	 	
Public Liability:	 	 
	 	 	 	 	 
	 	 	
Cdn. $5,000,000	 	 Any one occurrence /unlimited
period of
Insurance.
	 	 	 	 	 
	 	 	
Product Liability/Pollution:	 	 
	 	 	 	 	 
	 	 	
Cdn. $5,000,000	 	 Any one occurrence,
and in the aggregate
any one period of
Insurance.
	 Estimates
for
Premium Purposes	 	
Turnover:	 	 
	 	 	 	 	 
	 	 	
UK: £326,900,000.	 	 
	 	 	 	 	 
	 	 	
Rest of World: £1,000,000.	 	 
	 	 	 	 	 
	 	 	
Shop Signs, etc:	 	 
	 	 	 	 	 
	 	 	Canopies/Canopies and Signs/Signs: aggregate value of £400
	 	 	 	 	 
	 	 	
Premium is non-adjustable	 	 
	 	 	 	 	 
	Readers Offers	 	Details of “Reader Offers” and procedures employed are lodged with Insurers.

Any departure there from should be notified to Perkins Slade. The policy
excludes marine and aviation risks.

 

Table of Contents

	 	 	 	 	 
	Local Policies	 	Separate local policies arranged for the following territories:
	 	 	 	 	 
	 	 	
• China	 	 
	 	 	 	 	 
	 	 	
• France	 	 
	 	 	 	 	 
	 	 	
• Russia
 	 	 
	 	 	
• South Africa.	 	 
	 	 	 	 	 
	Claims Notification	 	Policy conditions require notification to Insurers of any incident which may
give rise to a claim. The following should be notified to Perkins Slade:
	 	 	 	 	 
	 	 	1. Any incident where a third party (or his representative) has intimated
verbally or in writing that a claim may be made for personal injury or
property damage.
	 	 	 	 	 
	 	 	2. Any incident which is notifiable to the Health and Safety Executive.
	 	 	 	 	 
	 	 	3. Any accident necessitating the calling of Ambulance or Medical Assistance.

If in any doubt seek guidance from Perkins Slade.

 

Table of Contents

5.  MARINE INSURANCE

	 	 	 
	Insurers	 	
Royal & Sun Alliance
	Policy Number	 	
C063297B99AA
	Policy Period	 	
July 1, 2002 — June 30, 2003 inclusive
	Insured	 	
Telegraph Group Limited and/or Subsidiary Companies
	Annual Premium Including Tax	 	
£7,000.00

	 	 	 
	Cover	 	
All Risks of Loss or damage to the Insured property.
	 	 	 
	Excess	 	
£2,500 each and every claim.
	 	 	 
	Insured Property	 	
Printed Magazines.
	 	 	 
	Voyages	 	
To U.K. from Western Europe.
	 	 	 
	Methods of Transit	 	
Conveyances and/or Steamers
	 	 	 
	 	 	
Parcel Post
	 	 	 
	 	 	
Air Freight
	 	 	 
	 	 	
Rail
	 	 	 
	 	 	
Road
	 	 	 
	 	 	
Own Vehicles
	 	 	 
	Limits	 	 
	 	 	 
	 	 	
• Any one vessel or conveyance: £1,000,000

• Any one location or loss: £2,000,000

• Postal Sendings: £5,000

• Engineers or Sales Reps Tools or Samples per Vehicle: £5,000

• Any one Road Vehicle/Trailer (owned or operated by the Insured): £40,000
	 	 	 
	Premium Basis	 	
Estimated annual sendings : £22,520,000
	 	 	 
	Basis Of Valuation	 	
Cost Insurance & Freight + charges + Duty if incurred + 10%, or as agreed with Insurers
prior to known and/or reported loss

 

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6.  MOTOR FLEET INSURANCE

	 	 	 
	INSURERS	 	
Royal & Sun Alliance
	POLICY NUMBER	 	
RKJ891964
	POLICY PERIOD	 	
July 1, 2002 to June 30, 2003 inclusive
	INSURED	 	
Telegraph Group Limited and/or Subsidiary Companies
	ANNUAL PREMIUM INCLUDING TAX	 	
£95,577.30

	 	 	 
	Cover	 	
Comprehensive, excluding Windscreen
	 	 	 
	Terrorism Exclusion	 	
The Insurers shall not be liable in respect of any consequences of Terrorism except so far as is
necessary to meet the requirements of any road traffic legislation
	 	 	 
	Definition of Terrorism	 	
Terrorism shall mean any act including but not limited to the use of force or violence or the threat
thereof of any persons or group of persons whether acting alone or on behalf of or in connection with
any Organisation or government committed for political, religious, ideological or similar purposes
including the intention to influence any government or to put the public or any section of the public
in fear
	 	 	 

	 	 	 	 	 
	Excess	 	
£1,000
	 	Each and every claim arising out of Accidental Damage, Fire or Theft

No Additional own damage Excesses for young/inexperienced drivers
	 	 	 	 	 

	 	 	 	 	 
	Limits of Indemnity	 	
Vehicles
	 	Market Value
	 	 	 	 	 
	 	 	
Manslaughter Defence
	 	Unlimited
	 	 	 	 	 
	 	 	
Medical Expenses
	 	£250 per person
	 	 	 	 	 
	 	 	
Rugs, Clothing and Personal Effects
	 	£250 per person
	 	 	 	 	 
	 	 	
Passenger Liability
	 	Unlimited
	 	 	 	 	 
	 	 	
Third Party Injury
	 	Unlimited
	 	 	 	 	 
	 	 	
Property Damages:	 	 
	 	 	 	 	 
	 	 	
(i) Commercial Vehicles

(ii) Other vehicles
	 	£5,000,000

Unlimited
	 	 	 	 	 
	 	 	
Motor Uninsured Loss Recovery
	 	£50,000

 

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	Certificates	 	
Blanket certificates of Insurance apply
	 	 	 
	 	 	
Specified certificate required for P1 TOU (Previously P283 CPL) owned by D. W. Coulson and R444 MJL
owned by Peter Lohmeyer
	 	 	 
	Theft Restriction	 	
The policy does not cover loss of or damages due to the theft or attempted theft occurring whilst the
insured vehicle is left unlocked with the ignition key inside the vehicle.
	 	 	 
	 	 	
It is recommended that the Insured alert all vehicle users to this restriction
	 	 	 
	Insured Vehicles and
Permitted Uses	 	
Vehicles of the Insured
	 	 	 
	 	 	
Any Motor Car, Motorcycle, Minibus or Goods Carrying Vehicle which is your property or hired or lent or
leased to the Insured
	 	 	 
	 	 	
Use: Social Domestic and Pleasure purposes in connection with the Insured’s business, and by principals
or directors in connection with any other businesses of which they are principals or directors
	 	 	 
	 	 	
Excluding:
	 	 	 
	 	 	
(i) Motor Cars — speed testing, pace making or competitive driving
	 	 	 
	 	 	
(ii) Good Carrying Vehicles — (i) speed testing, pace making or competitive driving or (ii) use for
hire or reward
	 	 	 
	 	 	
Employee Vehicles
	 	 	
Any Motor Car or Motorcycle owned by or hired or lent to your employees, excluding any motor car
provided by the Insured
	 	 	 
	 	 	
Use: In connection with your business only.
	 	 	 
	 	 	
Excluding:
	 	 	 
	 	 	
(i) Speed testing, pace making or competitive driving

 

(ii) Use for hire or reward
	 	 	 
	 	 	
Third Party Vehicles
	 	 	 
	 	 	
Any motor car or good carrying vehicle not belonging to or hired to or leased to or lent to the Insured
	 	 	 
	 	 	
Use: For the movement of a vehicle to facilitate the passage of your own vehicle
	 	 	 

 

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Excluding:
	 	 	 
	 	 	
(i) Speed testing, pace making or competitive driving

(ii) Use for hire or reward
	 	 	 
	Drivers	 	
Any authorized licensed driver (Authorised = Approved by the Company
in accordance with your own Car Policy)
	 	 	 
	 	 	
Any Employee in respect of movement of Third Party vehicles to facilitate passage
	 	 	 
	Principal Cover

Extensions	 	
1. Better Car Cover for Motor Cars up to 12 months old
	 	 	 
	 	 	
2. Occasional Business use cover in respect of Employees own vehicle used on your business. No
    contribution from Employees policy.
	 	 	 
	 	 	
3. Third Party cover for unspecified trailers whether attached or detached.
	 	 	 
	 	 	
4. Movement of impeding vehicles
	 	 	 
	 	 	
5. Joint Insured’s indemnity clause
	 	 	 
	 	 	
6. Driving by unlicensed drivers when a license is not required by the law
	 	 	 
	 	 	
7. The Insured’s legal liability in respect of unauthorized use by any person
	 	 	 
	 	 	
8. Earthquake Damage to vehicles extended to include Continent of Europe
	 	 	 
	 	 	
9. Riot and Civil Commotion damage extended to include Continent of Europe
	 	 	 
	 	 	
10. Customs and Excise Duty on the Continent of Europe
	 	 	 
	 	 	
11. Third Party Contingent Liability arising from the use of vehicles not belonging to the Insured or
      provided to the Insured
	 	 	 
	 	 	
12. Third party indemnity to owners of vehicles hired, leased or loaned to you
	 	 	 
	 	 	
13. Unlimited cover for fitted audio/radio/office equipment/car phones etc. including removable items
      within vehicle or boot when locked and unattended — reinstatement as new basis
	 	 	 
	 	 	
14. Comprehensive cover for two custom-built for-wheel trailers whilst attached or detached
	 	 	 
	 	 	
15. 1953 Rolls Royce UYY 497 insured for Market Value of £65,000
	 	 	 

 

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16. Legal Liability of Passengers for their negligent acts
	 	 	 
	 	 	
17. Legal defence costs on charges of manslaughter or causing death by reckless driving or serious        harm
	 	 	 
	Foreign Use	 	
Cover under this policy applies in all member countries of the European Community, Austria, Czech
Republic, Slovakia, Finland, Hungary, Norway, Sweden and Switzerland
	 	 	 
	 	 	
Persons traveling overseas should carry with them a copy of the certificate of Insurance, as evidence
of Insurance, including Spanish bail Bond
	 	 	 
	 	 	
Green Cards are required for visits outside these territories, and are available on request for Perkins
Slade
	 	 	 

	 	 	 	 	 	 	 
	Vehicle Details on
Which Premium is Based	 	
Cars
	 	 	141	 
	 	 	 	 	 	 	 
	 	 	
Privately owned cars
	 	 	2	 
	 	 	 	 	 	 	 
	 	 	
Commercial vehicles (van)
	 	 	3	 
	 	 	 	 	 	 	 
	 	 	
Special types (Transit Minibus)
	 	 	4	 
	 	 	 	 	 	 	 
	 	 	
Motorcycles
	 	 	1	 
	 	 	 	 	 	 	 
	 	 	
Occasional Business Use:	 	 	 	 
	 	 	 	 	 	 	 
	 	 	
(i) Less than £ 1,000 miles per annum

(ii) More than £ 1,000 miles per annum
	 	 	40

50	 
	 	 	 	 	 	 	 
	DECLARATION/ADJUSTMENT

CONDITIONS	 	
Details Required:
	 	 	Number of Cars

Number of Vans

Number of Special Types

Number of Motor Cycles

Number of Privately Owned Cars	 

	 	 	 
	 	 	
Due at Renewal
	 	 	 
	 	 	
2002/2003 Premium Rates per Vehicle:
	 	 	 
	 	 	
£593 + 5% Insurance Premium Tax
	 	 	 
	 	 	
£1,483 + 5% Insurance Premium Tax in respect of Landrover
	 	 	 

 

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	Vehicles On Loan To

Motoring Department	 	
(1) Automatically Insured subject to any vehicle with value in excess of £1,000,000, or,
	 	 	 
	 	 	
(2) any vehicle being used for special testing, pace making or competitive driving, being notified
prior      to use

 

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B.  Insurance Policies for Hollinger International Inc., Hollinger Inc., Ravelston Corporation Limited and Subsidiary Companies.

     See attached summaries of the following policies:

	 	1.	 	“All Risks” Property Damage & Business Interruption
	 
	 	2.	 	Primary Umbrella Liability
	 
	 	3.	 	First Excess Umbrella
	 
	 	4.	 	Second Excess Umbrella
	 
	 	5.	 	Third Excess Umbrella
	 
	 	6.	 	Fourth Excess Umbrella
	 
	 	7.	 	Five Excess Umbrella
	 
	 	8.	 	Sixth Excess Umbrella

     Except where noted otherwise, all values are in Canadian currency.

Produced By:

AON Reed Stenhouse

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1.  “All Risks” Property Damage & Business Interruption

	 	 	 
	Named Insured	 	
The Ravelston Corporation Limited, Hollinger Inc., and
Hollinger International Inc. et al

and all subsidiary companies over which the named insured
exercises financial or management control, that existed, may
now exist or may hereafter be constituted
	 	 	 
	Insurer	 	
Royal & Sun Alliance Insurance Company of Canada
	 	 	 
	Policy Number	 	
7170922
	 	 	 
	Policy Term	 	
July 1, 2002 to August 1, 2003
	 	 	 
	 	 	
Perils Insured
	 	 	 
	 	 	
All Risks of Direct Physical Loss or Damage including Flood and
Earthquake, except as excluded
	 	 	 
	 	 	
Property and Business Interruption Coverage
	 	 	 
	 	 	
Real and Personal Property owned by or for which the Named
Insured has an insurable interest
	 	 	 
	 	 	
Business Interruption (Profits Form, 18 months indemnity period
except 24 month indemnity period for Chicago Sun Times, Ashland
Avenue, Chicago, IL and North Wabash, Chicago, IL, 12 months
Rental Insurance, 90 day Ordinary Payroll, Contingent Business
Interruption and Service Interruption)
	 	 	 
	 	 	
Extra Expense, and Expediting Expense
	 	 	 
	 	 	
Inland Property in Transit is Included
	 	 	 
	 	 	
Indemnity period for Chicago Sun Times, Ashland Avenue,
Chicago, IL and North Wabash, Chicago, IL
	 	 	 
	 	 	
Policy Form
	 	 	 
	 	 	
Aon Manuscript wording
	 	 	 
	 	 	
Limits of Liability
	 	 	 

	 	 	 	 	 	 	 	 	 
	 
	 	Property Damage/ Business Interruption Combined, any one occurrence	 	 	C$1,200,000,000	 
	 
	 	

	 
	 	 	 	 	 	 	 	 
	 
	 	Subject to the following Sublimits:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Newly Acquired Locations, subject to reporting to Insurer(s) 90 days from acquisition	 	 	25,000,000	 
	 
	 	

	 
	 	Miscellaneous Unnamed Locations	 	 	25,000,000	 
	 
	 	

	 
	 	Extra Expense	 	 	25,000,000	 
	 
	 	

 

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	 	Contingent Business Interruption	 	 	25,000,000	 
	 
	 	

	 
	 	Service Interruption

     (Property Damage and Business Interruption combined)	 	 	25,000,000	 
	 
	 	

	 
	 	Expediting Expense	 	 	15,000,000	 
	 
	 	

	 
	 	Denial of Access	 	 	25,000,000	 
	 
	 	

	 
	 	Property in Transit	 	 	5,000,000	 
	 
	 	

	 
	 	Accounts Receivable	 	 	15,000,000	 
	 
	 	

	 
	 	Valuable Papers	 	 	15,000,000	 
	 
	 	

	 
	 	California Earthquake Annual Aggregate	 	 	5,000,000	 
	 
	 	BC & Quebec Earthquake Annual Aggregate	 	 	100,000,000	 
	 
	 	All other Earthquake Annual Aggregate	 	 	500,000,000	 
	 
	 	

	 
	 	Flood Annual Aggregate	 	 	500,000,000	 
	 
	 	

	 
	 	Builders' Risk	 	 	5,000,000	 
	 
	 	

	 
	 	Fines and Penalties	 	 	5,000,000	 
	 
	 	

	 
	 	Professional Fees	 	 	2,000,000	 
	 
	 	

	 
	 	Employees' Effects	 	 	1,000,000	 
	 
	 	

	 
	 	Deductibles	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	EDP  Electrical/Mechanical Breakdown	 	 	5,000	 
	 
	 	

	 
	 	Office Contents	 	 	5,000	 
	 
	 	

	 
	 	Property in Transit	 	 	5,000	 
	 
	 	

	 
	 	Accounts Receivable	 	 	5,000	 
	 
	 	

	 
	 	Valuable Papers	 	 	5,000	 
	 
	 	

	 
	 	Fine Arts	 	 	2,500	 
	 
	 	

	 
	 	All  other losses	 	 	10,000	 
	 
	 	

	 	 	 
	 	 	
With respect to the peril of Earthquake in California, 5% of TIV on a per
occurrence basis, subject to a minimum of $100,000.
	 	 	 
	 	 	
With respect to the peril of Earthquake in BC, 5% of TIV on a per occurrence
basis, subject to a minimum of $100,000.
	 	 	 
	 	 	
With respect to the peril of Earthquake in Quebec, 3% of TIV on a per
occurrence basis, subject to a minimum of $100,000.
	 	 	
Territorial Limits
	 	 	 
	 	 	
Canada, USA including Puerto Rico, Israel
	 	 	 
	 	 	
Basis of Loss Settlement
	 	 	 
	 	 	
Replacement Cost including Limited Bylaws Cover, except as provided in

policy

 

Table of Contents

	 	 	 
	 	 	
Principal Extensions
	 	 	
Global Policy Extension
	 	 	
Builders’ Risk Extension
	 	 	 
	 	 	
Interdependent Business Interruption
	 	 	 
	 	 	
Gross Rents — 12-month indemnity period
	 	 	 
	 	 	
Denial of Access — 8 weeks
	 	 	 
	 	 	
Canadian Currency Clause
	 	 	 
	 	 	
Principal Exclusions
	 	 	 
	 	 	
Misinterpretation of Dates Exclusion
	 	 	 
	 	 	
War & Related Perils
	 	 	 
	 	 	
Pollution & Contamination
	 	 	 
	 	 	
Watercraft, Aircraft & Automobiles
	 	 	 
	 	 	
Faulty Workmanship, Wear & Tear and Corrosion, etc.
	 	 	 
	 	 	
Nuclear
	 	 	 
	 	 	
Additional Insured/Loss Payees
	 	 	 
	 	 	
Automatically included as required
	 	 	
Termination
	 	 	
120 Days Notice except for non-payment of premium and statutory conditions
shall govern

 

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2.  Primary Umbrella Liability

	 	 	 
	Named Insured	 	
The Ravelston Corporation Limited, Hollinger Inc., and
Hollinger International Inc. et al

and all subsidiary companies over which the named insured
exercises financial or management control, that existed, may
now exist or may hereafter be constituted
	 	 	 
	Insurer	 	
Liberty Mutual Insurance Company
	 	 	 
	Policy Number	 	
LQ1-B71-070002-062
	 	 	 
	Policy Term	 	
July 1, 2002 to July 1, 2003
	 	 	 
	 	 	
Coverage
	 	 	 
	 	 	
Provides catastrophe cover excess of the liability limits under the
General Liability, Media Liability, Automobile Liability, Watercraft Liability,
and Employers Liability policies
	 	 	 
	 	 	
Policy Form
	 	 	 
	 	 	
As agreed to and as per Insurer(s) policy wording(s) on a Follow Form
basis:
	 	 	 
	 	 	
Follow Form Coverages:
	 	 	 
	 	 	
Named Insured
	 	 	 
	 	 	
Automobile
	 	 	 
	 	 	
Contractual
	 	 	 
	 	 	
Employee Benefits Liability
	 	 	 
	 	 	
Incidental Medical Malpractice
	 	 	 
	 	 	
Employers Liability
	 	 	 
	 	 	
Punitive Damages
	 	 	 
	 	 	
Real Property in Care, Custody and Control
	 	 	 
	 	 	
Aircraft
	 	 	 
	 	 	
Limit of Liability
	 	 	 

	 	 	 	 	 	 	 	 	 
	 
	 	Bodily injury and Property Damage	 	 	C$25,000,000	 
	 
	 	

	 
	 	Annual Aggregate	 	As per underlying policies	 
	 
	 	

	 
	 	 	 	 	 	 	 	 

 

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	 	 	Excess of Underlying Coverages and Limits
	 	 	 	 	 
	 	 	
Insurance Company
	 	New Hampshire Insurance Company
	 	 	 	 	 
	 	 	
Coverage
	 	Public Liability (UK)
	 	 	 	 	 
	 	 	
Limit(s)
	 	Products & Completed Operations and Pollution,
occurrence & aggregate $5,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	20002925
	 	 	 	 	 
	 	 	
Term
	 	June 30, 2002 to June 30, 2003
(The Telegraph Group Ltd. & West Ferry Printers Ltd.)
	 	 	 	 	 
	 	 	 	 	 
	 	 	
Insurance Company
	 	Westchester Surplus Lines Insurance Company
	 	 	 	 	 
	 	 	
Coverage
	 	Media Liability (US & Israel Operations)
	 	 	 	 	 
	 	 	
Limit(s)
	 	Each occurrence
& aggregate           US$5,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	CRLN00205606
	 	 	 	 	 
	 	 	
Term
	 	July 1, 2002 — July 1, 2003
	 	 	 	 	 
	 	 	 	 	 
	 	 	
Insurance Company
	 	ACE Canada
	 	 	 	 	 
	 	 	
Coverage
	 	Media Liability (Canadian Operations only)
	 	 	 	 	 
	 	 	
Limit(s)
	 	Each occurrence
& aggregate
            $5,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	EOM0003273
	 	 	 	 	 
	 	 	
Term
	 	July 1, 2002 — July 1, 2003

 

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Insurance Company
	 	Insurance Corporation of British Columbia
	 	 	 	 	 
	 	 	
Coverage
	 	Automobile Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	Inclusive each
accident           $1,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	ICBC uses the vehicle licence plate as the policy
number. At the time of renewal the following policy
numbers were in effect: 1814XB, 2700YB, 6362XF, 92013V,
BLK587, BLK589, BLK590, BLK594, BLK595, CMD904, CMD905,
DRV684, 0545XC, 5138DS, 5139DS, 9412DW, 9496BA.
	 	 	 	 	 
	 	 	Term	 	August 1, 2002 to August 1, 2003
(Sterling Newspapers Ltd.)

 

Table of Contents

	 	 	 	 	 
	 	 	
Insurance Company
	 	Co-Operators General Insurance Company
	 	 	 	 	 
	 	 	
Coverage
	 	Automobile Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	Inclusive each accident          $1,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	3191543
	 	 	 	 	 
	 	 	
Term
	 	July 31, 2002 to July 31, 2003
(Sterling Newspapers Ltd.)
	 	 	 	 	 
	 	 	 	 	 
	 	 	
Insurance Company
	 	Co-operators General Insurance Company
	 	 	 	 	 
	 	 	
Coverage
	 	Automobile Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	Inclusive each accident          $1,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	9255421
	 	 	 	 	 
	 	 	
Term
	 	February 14, 2002 to February 14, 2003
(Sterling Newspapers Ltd.)
	 	 	 	 	 
	 	 	 	 	 
	 	 	
Insurance Company
	 	Royal Insurance Company
	 	 	 	 	 
	 	 	
Coverage
	 	Automobile Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	Inclusive each accident          $2,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	50047846A
	 	 	 	 	 
	 	 	
Term
	 	November 20, 2001 to November 20, 2002
(Sterling Newspapers Ltd.)
	 	 	 	 	 
	 	 	 	 	 
	 	 	
Insurance Company
	 	Insurance Corporation of British Columbia
	 	 	 	 	 
	 	 	
Coverage
	 	Automobile Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	Inclusive each occurrence          $2,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	ICBC uses the vehicle licence plate as the policy
number. At the time of renewal the following policy
numbers were in effect: 1814XB, 2700YB, 6362XF,
92013V, BLK587, BLK589, BLK590, BLK594,

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Policy No
	 	BLK595,
CMD904, CMD905, DRV684, 0545XC, 5138DS, 5139DS,
9412DW, 9496BA.
	 	 	 	 	 
	 	 	
Term
	 	July 26, 2001 to July 26, 2002
(Western Dominion Investment Company Limited)
	 	 	 	 	 
	 	 	Insurance Company	 	Menora Insurance Company Limited
	 	 	 	 	 
	 	 	Coverage
	 	Automobile Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	NIS 500,000.00          (US$ 103,864.00)

	 	 	 	 	 	 	 
	 
	 	Policy No	 	06-03-397178-03-5	 	06-33-379749-03-4
	 
	 	 	 	06-33-391724-03-6	 	06-33-381212-03-1
	 
	 	 	 	06-33-391725-03-3	 	06-33-372338-03-4
	 
	 	 	 	06-33-370747-03-0	 	06-33-386686-03-9
	 
	 	 	Term	 	December 31, 2001 to December 31, 2002
(Jerusalem Post Ltd. and Palestine Post Ltd.)

	 	 	 	 	 	 	 
	 	 	Insurance Company	 	Menora Insurance Company Limited
	 
	 
	 	Coverage	 	Automobile Liability
	 
	 
	 	Limit(s)	 	NIS 281,251.00          (US$58,424.00)
	 
	 
	 	Policy No	 	06-34-343656-03-4	 	06-34-344464-04-3
	 
	 	 	 	06-34-343654-03-0	 	06-34-344208-03-6
	 
	 	 	 	06-34-343653-03-3	 	06-34-344088-03-8
	 
	 
	 	Term	 	December 31, 2001 to December 31, 2002
(Jerusalem Post Ltd. and Palestine Post Ltd.)

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	 	 	Insurance Company	 	Liberty Mutual Insurance Company
	 
	 	 	Coverage	 	Automobile Liability
	 
	 	 	Limit(s)	 	Inclusive each occurrence          US$1,000,000
	 
	 	 	Policy No	 	AS2-41-004697-002
	 
	 	 	Term	 	January 1, 2002 to January 1, 2003
(The Sun-Times Company)
	 
	 
	 	 	Insurance Company	 	Liberty Mutual Insurance Company
	 
	 	 	Coverage	 	Automobile Liability
	 
	 	 	Limit(s)	 	Inclusive each occurrence          US$1,000,000
	 
	 	 	Policy No	 	AS2-641-004230-021
	 
	 	 	Term	 	January 1, 2002 to January 1, 2003
(American Publishing Company)
	 
	 
	 	 	Insurance Company	 	Zurich North America/Canada
	 
	 	 	Coverage	 	Automobile Liability
	 
	 	 	Limit(s)	 	Inclusive each occurrence          $1,000,000
	 
	 	 	Policy No	 	AF9995264
	 
	 	 	Term	 	July 1, 2002 to July 1, 2003 (Hollinger Inc.)
	 
	 
	 	 	Insurance Company	 	Liberty Mutual
	 
	 	 	Coverage	 	Employers Liability
	 
	 	 	Limit(s)	 	Each occurrence/employee/policy          US$1,000,000
	 	 	 	 	 
	 	 	Policy No	 	40052333
	 	 	 	 	 
	 	 	
Term
	 	January 1, 2002 to January 1, 2003 (Sun-Times Company)

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Policy Term
	 	July 1, 2002 to July 1, 2003
	 	 	 	 	 
	 	 	Insurance Company	 	Liberty Mutual
	 	 	 	 	 
	 	 	Coverage	 	Employers Liability
	 	 	 	 	 
	 	 	Limit(s)	 	Each occurrence/employee/policy          US$1,000,000
	 	 	 	 	 
	 	 	Policy No	 	WC2-641-004230-011
	 	 	 	 	 
	 	 	Term	 	January 1, 2002 to January 1, 2003 (American Publishing Co.)
	 	 	 	 	 
	 	 	 	 	 
	 	 	Insurance Company	 	Menora Insurance Company
	 	 	 	 	 
	 	 	Coverage	 	Employers Liability
	 	 	 	 	 
	 	 	Limit(s)	 	Each occurrence/employee/policy          US$5,000,000
	 	 	 	 	 
	 	 	Policy No	 	06-04-001138-00-00
	 	 	 	 	 
	 	 	Term	 	March 31, 2002 to March 31, 2003 (Jerusalem Post/Palestine Post Publications)
	 	 	 	 	 
	 	 	 	 	 
	 	 	Insurance Company	 	Royal & SunAlliance
	 	 	 	 	 
	 	 	Coverage	 	Employers Liability
	 	 	 	 	 
	 	 	Limit(s)	 	Each
occurrence/employee/policy          £10,000,000
	 	 	 	 	 
	 	 	Policy No	 	SMRKJ852084
	 	 	 	 	 
	 	 	Term	 	July 1, 2002 to July 1, 2003 (Telegraph Group & West Ferry Printers Ltd.)
	 	 	 	 	 
	 	 	 	 	 
	 	 	Insurance Company	 	Chubb Insurance Company
	 	 	 	 	 
	 	 	Coverage	 	Watercraft Liability (Muskoka Lakes)
	 	 	 	 	 
	 	 	Limit(s)	 	$2,000,000    
	 	 	 	 	 
	 	 	
Policy No
	 	30100531
	 	 	 	 	 
	 	 	
Term
	 	July 1, 2002 to July 1, 2003 (The Ravelston Corporation)

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	 	 	Insurance Company	 	Chubb Insurance Company of Canada
	 	 	 
	 	 	Coverage	 	Watercraft Liability
	 	 	 
	 	 	Limit(s)	 	Each occurrence          $1,000,000
	 	 	 
	 	 	Policy No.	 	7617848
	 	 	 
	 	 	Term	 	December 14, 2001 to December 14, 2002 (Hollinger Inc.)
	 	 	 
	 	 	 
	 	 	Insurance Company	 	Chubb Insurance Company of Canada
	 	 	 
	 	 	Coverage	 	Watercraft Liability
	 	 	 
	 	 	Limit(s)	 	Each occurrence          $1,000,000
	 	 	 
	 	 	Policy No.	 	7617847
	 	 	 
	 	 	Term	 	December 14, 200 to December 14, 2002 (Hollinger Inc.)
	 	 	 
	 	 	 
	 	 	Insurance Company	 	CGU Insurance Company
	 	 	 
	 	 	Coverage	 	Watercraft Liability
	 	 	 
	 	 	Limit(s)	 	Each occurrence          $1,000,000
	 	 	 
	 	 	Policy No.	 	PY32256
	 	 	 
	 	 	Term	 	November 25, 2001 to November 25, 2002
	 	 	 
	 	 	 
	 	 	Defence Costs over and above the Limit(s) of Insurance

	 	 	 	 	 
	 
	 	Retention	 	 
	 
	 	 	 	 
	 
	 	Any one occurrence	 	Nil
	 
	 	

	 
	 	With respect to Multimedia	 	US$2,800,000
	 
	 	

	 
	 	 	 	 
	 
	 	Principal Endorsements/Extensions	 	 
	 
	 	 	 	 
	 
	 	Liberalization Clause	 	 
	 
	 	 	 	 
	 
	 	Currency Clause	 	 

Table of Contents

	 	 	 	 	 
	 	 	Principal Exclusions/Restricting Terms
	 	 	 
	 	 	Directors and Officers Errors & Omissions
	 	 	 
	 	 	Pollution — Sudden & Accidental, 15 days Detection & Reporting, IBC 2313 form
	 	 	 
	 	 	60 day Reporting Requirement with respect to specific types of losses under
Multimedia Professional Liability
	 	 	 
	 	 	Asbestos
	 	 	 
	 	 	Liability arising out of any breach of Employee Retirement Income Security Act
(ERISA)
	 	 	 
	 	 	Personal Property
	 	 	 
	 	 	Insolvency Clause
	 	 	 
	 	 	Employment related practices
	 	 	 
	 	 	Professional Liability Exclusion, except for Multimedia Communications
Liability hazards for which coverage is afforded under the scheduled
underlying insurance
	 	 	 
	 	 	Nuclear Energy Liability
	 	 	 
	 	 	
Maintenance of Underlying Insurance
	 	 	 
	 	 	
Non-business Activities Exclusion
	 	 	 
	 	 	
Non-concurrency Endorsement
	 	 	 
	 	 	
Terrorism
	 	 	 
	 	 	
Territorial Limits
	 	 	 
	 	 	Worldwide
	 	 	 
	 	 	
Cancellation
	 	 	 
	 	 	90 Days Notice of Cancellation except for non-payment of premium and
statutory conditions shall govern.

Table of Contents

3.  First Excess Umbrella

	 	 	 
	Named Insured	 	The Ravelston Corporation Limited, Hollinger Inc., and
Hollinger International Inc. et al

and all subsidiary companies over which the named insured
exercises financial or management control, that existed, may
now exist or may hereafter be constituted
	 	 	 
	Insurer	 	Chubb Insurance
	 	 	 
	Policy Number	 	93630803
	 	 	 
	Policy Term	 	July 1, 2002 to July 1, 2003
	 	 	 
	 	 	Policy Form
	 	 	 
	 	 	As agreed to and as per Insurer(s) policy wording(s) on a Follow Form
basis:
	 	 	 
	 	 	Follow Form Coverages:
	 	 	 
	 	 	Named Insured
	 	 	 
	 	 	Automobile
	 	 	 
	 	 	Contractual
	 	 	 
	 	 	Employee Benefits Liability
	 	 	 
	 	 	Incidental Medical Malpractice
	 	 	 
	 	 	Professional Liability
	 	 	 
	 	 	Punitive Damages
	 	 	 
	 	 	Real Property in Care, Custody and Control
	 	 	 
	 	 	Aircraft
	 	 	 
	 	 	Multimedia Professional Liability
	 	 	 
	 	 	Currency Clause
	 	 	 
	 	 	Coverage
	 	 	 
	 	 	Provides catastrophe cover excess of the liability limits under the
General Liability, Media Liability, Automobile Liability, Watercraft Liability,
and Employers Liability policies
	 	 	 
	 	 	Limit of Liability

	 	 	 	 	 
	 
	 	 	 	 
	 
	 	Bodily Injury & Property Damage, each occurrence	 	C$25,000,000
	 
	 	

	 
	 	Annual Aggregate	As per underlying policies
	 
	 	

	 	 	 	 	 
	 
	 	Excess of Underlying Coverages and Limits

Table of Contents

	 	 	 	 	 
	 	 	Insurance Company	 	Liberty Mutual Insurance Company
	 	 	 	 	 
	 	 	Coverage	 	Primary Umbrella Liability
	 	 	 	 	 
	 	 	Limit(s)	 	$25,000,000 excess of various primary
	 	 	 	 	 
	 	 	Policy No	 	LQ1-B71-070002-062
	 	 	 	 	 
	 	 	Policy Term	 	July 1, 2002 to July 1, 2003
	 	 	 	 	 
	 	 	 	 	 
	 	 	Defence Costs over and above the Limit(s) of Insurance

	 	 	 	 	 
	 
	 	 	 	 
	 
	 	Retention
	 
	 	 	 	 
	 
	 	Any one occurrence	 	Nil
	 
	 	

	 	 	 
	 	 	
Principal Exclusions/Restricting Terms
	 	 	 
	 	 	
Professional Liability Exclusion, except for Multimedia Communications
Liability hazards for which coverage is afforded under the scheduled
underlying insurance
	 	 	 
	 	 	
Pollution — Sudden & Accidental, 15 days Detection and Reporting, IBC 2313
Form
	 	 	 
	 	 	
Nuclear Energy Liability
	 	 	 
	 	 	
Maintenance of Underlying Insurance
	 	 	 
	 	 	
Asbestos
	 	 	 
	 	 	
ERISA
	 	 	 
	 	 	
War & Terrorism
	 	 	 
	 	 	
Currency Clause
	 	 	 
	 	 	
All limits, premiums and deductibles are expressed in Canadian currency
	 	 	 
	 	 	
Territorial Limits
	 	 	 
	 	 	
Worldwide
	 	 	 
	 	 	
Cancellation
	 	 	 
	 	 	
90 Days Notice of Cancellation except for non-payment of premium and
statutory conditions shall govern

Table of Contents

4.  Second Excess Umbrella

	 	 	 
	Named Insured	 	The Ravelston Corporation Limited, Hollinger Inc., and
Hollinger International Inc. et al

and all subsidiary companies over which the named insured
exercises financial or management control, that existed, may
now exist or may hereafter be constituted
	 	 	 
	Insurer	 	Allianz Insurance Company
	 	 	 
	Policy Number	 	XXK 0009 6883020
	 	 	 
	Policy Term	 	July 1, 2002 to July 1, 2003
	 	 	 
	 	 	Policy Form
	 	 	 
	 	 	As agreed with and as per policy to be issued by Insurer(s) including
Follow Form Basis
	 	 	 
	 	 	Coverage
	 	 	 
	 	 	Provides catastrophe cover excess of the liability limits under the
General Liability, Media Liability, Automobile Liability, Watercraft Liability,
and Employers Liability policies
	 	 	 
	 	 	Limit of Liability

	 	 	 	 	 
	 
	 	 	 	 
	 
	 	Bodily Injury & Property Damage, each occurrence	 	C$50,000,000
	 
	 	

	 
	 	Annual Aggregate	 	As per underlying policies
	 
	 	

	 	 	 	 	 
	 	 	Excess of Underlying Coverages and Limits
	 	 	 	 	 
	 	 	Insurance Company	 	Chubb Insurance Company
	 	 	 	 	 
	 	 	
Coverage
	 	First Excess Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	$25,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	93630803
	 	 	 	 	 
	 	 	
Policy Term
	 	July 1, 2002 to July 1, 2003
	 	 	 	 	 
	 	 	 	 	 
	 	 	
Insurance Company
	 	Liberty International
	 	 	 	 	 
	 	 	
Coverage
	 	Primary Umbrella Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	$25,000,000 in excess of various primary
	 	 	 	 	 
	 	 	
Policy No
	 	LQ1-B71-070002-062
	 	 	 	 	 

Table of Contents

	 	 	 	 	 
	 	 	
Policy Term
	 	July 1,2002 to July
1, 2003
	 	 	 	 	 
	 
	 	Defence Costs over and above the Limit(s) of Insurance
	 
	 	 	 	 
	 
	 	Retention
	 
	 	 	 	 
	 
	 	Any one occurrence	 	Nil
	 
	 	

	 	 	 	 	 
	 	 	
Principal Exclusions/Restricting Terms
	 	 	 
	 	 	•	 	Professional Liability Exclusion, except for
Multimedia Communications Liability hazards for which
coverage is afforded under the scheduled underlying
insurance
	 	 	 
	 	 	•	 	Pollution — Sudden & Accidental, 5 days Detection and
Reporting, IBC 2313 Form
	 	 	 
	 	 	•	 	Maintenance of Underlying Insurance
	 	 	 
	 	 	•	 	Asbestos
	 	 	 
	 	 	•	 	Nuclear Liability
	 	 	 
	 	 	•	 	ERISA
	 	 	 
	 	 	
Currency Clause
	 	 	 
	 	 	
All limits, premiums and deductibles are expressed in Canadian currency
	 	 	 
	 	 	
Territorial Limits
	 	 	 
	 	 	
Worldwide
	 	 	 
	 	 	
Cancellation
	 	 	 
	 	 	
90 Days Notice of Cancellation except for non-payment of premium and
statutory conditions shall govern

Table of Contents

5.  Third Excess Umbrella

	 	 	 
	Named Insured	 	The Ravelston Corporation Limited, Hollinger Inc., and
Hollinger International Inc. et al

and all subsidiary companies over which the named insured
exercises financial or management control, that existed, may
now exist or may hereafter be constituted
	 	 	 
	Insurer	 	ACE INA
	 	 	 
	Policy Number	 	XCP 397172
	 	 	 
	Policy Term	 	July 1, 2002 to July 1, 2003
	 	 	 
	 	 	Policy Form
	 	 	 
	 	 	As agreed to and as per Insurer(s) policy wording(s) on a Follow Form
basis:
	 	 	 
	 	 	Follow Form Coverages:

	 	 	 	 	 
	 	 	•	 	Named Insured
	 	 	 	 	 
	 	 	•	 	Automobile
	 	 	 	 	 
	 	 	•	 	Contractual
	 	 	 	 	 
	 	 	•	 	Employee Benefits Liability
	 	 	 	 	 
	 	 	•	 	Incidental Medical Malpractice
	 	 	 	 	 
	 	 	•	 	Professional Liability
	 	 	 	 	 
	 	 	•	 	Punitive Damages
	 	 	 	 	 
	 	 	•	 	Real Property in Care, Custody and Control
	 	 	 	 	 
	 	 	•	 	Aircraft
	 	 	 	 	 
	 	 	•	 	Multimedia Professional Liability
	 	 	 	 	 
	 	 	•	 	Currency Clause
	 	 	 	 	 
	 	 	Coverage
	 	 	 	 	 
	 	 	Provides catastrophe cover excess of the liability limits under the
General Liability, Media Liability, Automobile Liability, Watercraft Liability,
and Employers Liability policies
	 	 	 	 	 
	 	 	Limit of Liability

	 	 	 	 	 
	 
	 	 	 	 
	 
	 	Excess of Primaries, each occurrence (combined)	 	C$25,000,000
	 
	 	

	 
	 	Annual Aggregate	 	As per underlying policies
	 
	 	

Table of Contents

	 	 	 	 	 
	 	 	
Excess of Underlying Coverages and Limits
	 	 	 
	 	 	Insurance Company	 	Allianz Insurance Company
	 	 	 
	 	 	Coverage	 	Second Excess Liability
	 	 	 
	 	 	Limit(s)	 	$50,000,000
	 	 	 
	 	 	Policy No.	 	XXK 0009 6883020
	 	 	 
	 	 	Policy Term	 	July 1, 2002 to July 1, 2003
	 	 	 
	 	 	 
	 	 	Insurance Company	 	Chubb Insurance Company
	 	 	 
	 	 	Coverage	 	First Excess Liability
	 	 	 
	 	 	Limit(s)	 	$25,000,000
	 	 	 
	 	 	Policy No.	 	93630803
	 	 	 
	 	 	Policy Term	 	July 1, 2002 to July 1, 2003
	 	 	 
	 	 	 
	 	 	Insurance Company	 	Liberty International
	 	 	 
	 	 	Coverage	 	Primary Umbrella Liability
	 	 	 
	 	 	Limit(s)	 	$25,000,000
	 	 	 
	 	 	Policy No.	 	LQ1-B71-070002-062
	 	 	 
	 	 	Policy Term	 	July 1, 2002 to July 1, 2003
	 	 	 

	 	 	 	 	 
	 
	 	Defence Costs over and above the Limit(s) of Insurance
	 
	 	 	 	 
	 
	 	Retention
	 
	 	 	 	 
	 
	 	Any one occurrence	 	Nil
	 
	 	

	 	 	 	 	 
	 	 	
Principal Exclusions/Restricting Terms
	 	 	 
	 	 	•	 	Professional Liability Exclusion, except for Multimedia Communications Liability hazards for which coverage
is afforded under the scheduled underlying insurance

Table of Contents

	 	 	 	 	 
	 	 	•	 	Pollution — Sudden & Accidental, 5 days Detection & Reporting,
IBC 2313 Form
	 	 	 
	 	 	•	 	Nuclear
	 	 	 
	 	 	•	 	Asbestos
	 	 	 
	 	 	•	 	War & Terrorism
	 	 	 
	 	 	
Currency Clause
	 	 	 
	 	 	
All limits, premiums and deductibles are expressed in Canadian currency
	 	 	 
	 	 	
Territorial Limits
	 	 	 
	 	 	
Worldwide
	 	 	 
	 	 	
Cancellation
	 	 	 
	 	 	
90 Days Notice of Cancellation except for non-payment of premium and
statutory conditions shall govern

 

Table of Contents

6.  Fourth Excess Umbrella

	 	 	 
	Named Insured	 	The Ravelston Corporation Limited, Hollinger Inc., and
Hollinger International Inc. et al

and all subsidiary companies over which the named insured
exercises financial or management control, that existed, may
now exist or may hereafter be constituted
	 	 	 
	Insurer	 	Chubb Insurance Company of Canada
	 	 	 
	
Policy Number
	 	7974 75 51
	 	 	 
	
Policy Term
	 	July 1, 2002 to July 1, 2003
	 	 	 
	 	 	Policy Form
	 	 	 
	 	 	As agreed to and as per Insurer(s) policy wording(s) on a Follow Form
basis:
	 	 	 
	 	 	Follow Form Coverages:

	 	 	 	 	 
	 	 	 	 	 
	 	 	•	 	Named Insured
	 	 	 	 	 
	 	 	•	 	Automobile
	 	 	 	 	 
	 	 	•	 	Contractual
	 	 	 	 	 
	 	 	•	 	Employee Benefits Liability
	 	 	 	 	 
	 	 	•	 	Incidental Medical Malpractice
	 	 	 	 	 
	 	 	•	 	Professional Liability
	 	 	 	 	 
	 	 	•	 	Punitive Damages
	 	 	 	 	 
	 	 	•	 	Real Property in Care, Custody and Control
	 	 	 	 	 
	 	 	•	 	Aircraft
	 	 	 	 	 
	 	 	•	 	Multimedia Professional Liability
	 	 	 	 	 
	 	 	•	 	Currency Clause
	 	 	 	 	 
	 	 	Coverage
	 	 	 	 	 
	 	 	Provides catastrophe cover excess of the liability limits under the
General Liability, Media Liability, Automobile Liability, Watercraft Liability,
and Employers Liability policies

	 	 	 	 	 
	 
	 	 	 	 
	 
	 	Limit of Liability
	 
	 	 	 	 
	 
	 	Excess of Primaries, each occurrence (combined)	 	C$35,000,000
	 
	 	

	 
	 	Annual Aggregate	 	As per underlying policies
	 
	 	

Table of Contents

	 	 	 	 	 
	 	 	Excess of Underlying Coverages and Limits
	 	 	 	 	 
	 	 	 	 	 
	 	 	
Insurance Company
	 	ACE INA Insurance
	 	 	 	 	 
	 	 	
Coverage
	 	Third Excess Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	$25,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	XCP397172
	 	 	 	 	 
	 	 	
Policy Term
	 	July 1, 2002 to July 1, 2003
	 	 	 	 	 
	 	 	 	 	 
	 	 	
Insurance Company
	 	Allianz Insurance Company
	 	 	 	 	 
	 	 	
Coverage
	 	Second Excess Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	$50,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	XXK 0009 6883020
	 	 	 	 	 
	 	 	
Policy Term
	 	July 1, 2002 to July 1, 2003
	 	 	 	 	 
	 	 	 	 	 
	 	 	
Insurance Company
	 	Chubb Insurance Company
	 	 	 	 	 
	 	 	
Coverage
	 	First Excess Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	$25,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	93630803
	 	 	 	 	 
	 	 	
Policy Term
	 	July 1, 2002 to July 1, 2003
	 	 	 	 	 
	 	 	 	 	 
	 	 	
Insurance Company
	 	Liberty International
	 	 	 	 	 
	 	 	
Coverage
	 	Primary Umbrella Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	$25,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	LQ1-B71-070002-062
	 	 	 	 	 
	 	 	
Policy Term
	 	July 1, 2002 to July 1, 2003

Table of Contents

	 	 	 	 	 
	 
	 	Defence Costs over and above the Limit(s) of Insurance
	 
	 	 	 	 
	 
	 	Retention
	 
	 	 	 	 
	 
	 	Any one occurrence	 	Nil
	 
	 	

	 	 	Principal Exclusions/Restricting Terms

	 	 	 	 	 
	 	 	 
	 	 	•	 	Professional Liability Exclusion, except for Multimedia Communications Liability hazards for which coverage
is afforded under the scheduled underlying insurance
	 	 	 
	 	 	•	 	Pollution — Sudden & Accidental, 5 days Detection & Reporting,
IBC 2313 Form
	 	 	 
	 	 	•	 	Nuclear
	 	 	 
	 	 	•	 	Asbestos
	 	 	 
	 	 	•	 	War & Terrorism
	 	 	 
	 	 	
Currency Clause
	 	 	 
	 	 	
All limits, premiums and deductibles are expressed in Canadian currency
	 	 	 
	 	 	
Territorial Limits
	 	 	 
	 	 	
Worldwide
	 	 	 
	 	 	
Cancellation
	 	 	 
	 	 	
90 Days Notice of Cancellation except for non-payment of premium and
statutory conditions shall govern

Table of Contents

7.  Fifth Excess Umbrella

	 	 	 
	 	 	 
	
Named Insured
	 	The Ravelston Corporation Limited, Hollinger Inc., and
Hollinger International Inc. et al

and all subsidiary companies over which the named insured
exercises financial or management control, that existed, may
now exist or may hereafter be constituted
	 	 	 
	
Insurer
	 	ACE INA
	 	 	 
	
Policy Number
	 	ET52843
	 	 	 
	
Policy Term
	 	July 1, 2002 to July 1, 2003
	 	 	 
	 	 	Policy Form
	 	 	 
	 	 	As agreed to and as per Insurer(s) policy wording(s) on a Follow Form
basis:
	 	 	 	 	 
	 	 	Follow Form Coverages:

	 	 	 	 	 
	 	 	 	 	 
	 	 	•	 	Named Insured
	 	 	 	 	 
	 	 	•	 	Automobile
	 	 	 	 	 
	 	 	•	 	Contractual
	 	 	 	 	 
	 	 	•	 	Employee Benefits Liability
	 	 	 	 	 
	 	 	•	 	Incidental Medical Malpractice
	 	 	 	 	 
	 	 	•	 	Professional Liability
	 	 	 	 	 
	 	 	•	 	Punitive Damages
	 	 	 	 	 
	 	 	•	 	Real Property in Care, Custody and Control
	 	 	 	 	 
	 	 	•	 	Aircraft
	 	 	 	 	 
	 	 	•	 	Multimedia Professional Liability
	 	 	 	 	 
	 	 	•	 	Currency Clause
	 	 	 	 	 
	 	 	Coverage
	 	 	 	 	 
	 	 	Provides catastrophe cover excess of the liability limits under the
General Liability, Media Liability, Automobile Liability, Watercraft Liability,
and Employers Liability policies

	 	 	 	 	 
	 
	 	 	 	 
	 
	 	Limit of Liability
	 
	 	 	 	 
	 
	 	Excess of Primaries, each occurrence (combined)	 	C$25,000,000
	 
	 	

	 
	 	Annual Aggregate	 	As per underlying policies
	 
	 	

Table of Contents

	 	 	 	 	 
	 	 	Excess of Underlying Coverages and Limits
	 	 	 	 	 
	 	 	
Insurance Company
	 	Chubb Insurance
	 	 	 	 	 
	 	 	
Coverage
	 	Fourth Excess Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	$35,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	7974 75 51
	 	 	 	 	 
	 	 	
Policy Term
	 	July 1, 2002 to July 1, 2003
	 	 	 	 	 
	 	 	 	 	 
	 	 	
Insurance Company
	 	ACE INA Insurance
	 	 	 	 	 
	 	 	
Coverage
	 	Third Excess Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	$25,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	XCP397172
	 	 	 	 	 
	 	 	
Policy Term
	 	July 1, 2002 to July 1, 2003
	 	 	 	 	 
	 	 	 	 	 
	 	 	
Insurance Company 	 	Allianz Insurance Company
	 	 	 	 	 
	 	 	
Coverage
	 	Second Excess Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	$50,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	XXK 0009 6883020
	 	 	 	 	 
	 	 	
Policy Term
	 	July 1, 2002 to July 1, 2003
	 	 	 	 	 
	 	 	 	 	 
	 	 	
Insurance Company
	 	Chubb Insurance Company
	 	 	 	 	 
	 	 	
Coverage
	 	First Excess Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	$25,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	93630803
	 	 	 	 	 
	 	 	
Policy Term
	 	July 1, 2002 to July 1, 2003

Table of Contents

	 	 	 	 	 
	 	 	
Insurance Company
	 	Liberty International
	 	 	 	 	 
	 	 	
Coverage
	 	Primary Umbrella Liability
	 	 	 	 	 
	 	 	
Limit(s) 	 	$25,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	LQ1-B71-070002-062
	 	 	 	 	 
	 	 	
Policy Term
	 	July 1, 2002 to July 1, 2003
	 	 	 	 	 
	 	 	 	 	 
	 	 	Defence Costs over and above the Limit(s) of Insurance

	 	 	 	 	 
	 
	 	Retention
	 
	 	 	 	 
	 
	 	Any one occurrence	 	Nil
	 
	 	

	 	 	Principal Exclusions/Restricting Terms

	 	 	 	 	 
	 	 	 
	 	 	•	 	Professional Liability Exclusion, except for Multimedia Communications Liability hazards for which coverage
is afforded under the scheduled underlying insurance
	 	 	 
	 	 	•	 	Pollution — Sudden & Accidental, 5 days Detection & Reporting,
IBC 2313 Form
	 	 	 
	 	 	•	 	Nuclear
	 	 	 
	 	 	•	 	Asbestos
	 	 	 
	 	 	•	 	War & Terrorism
	 	 	 
	 	 	
Currency Clause
	 	 	 
	 	 	
All limits, premiums and deductibles are expressed in Canadian currency
	 	 	 
	 	 	
Territorial Limits
	 	 	 
	 	 	
Worldwide
	 	 	 
	 	 	
Cancellation
	 	 	 
	 	 	
90 Days Notice of Cancellation except for non-payment of premium and
statutory conditions shall govern

Table of Contents

8.  Sixth Excess Umbrella

	 	 	 
	 	 	 
	
Named Insured
	 	The Ravelston Corporation Limited, Hollinger Inc., and
Hollinger International Inc. et al

and all subsidiary companies over which the named insured
exercises financial or management control, that existed, may
now exist or may hereafter be constituted
	 	 	 
	
Insurer
	 	Royal & SunAlliance
	 	 	 
	
Policy Number
	 	60386108
	 	 	 
	
Policy Term
	 	July 1, 2002 to July 1, 2003
	 	 	 
	 	 	Policy Form
	 	 	 
	 	 	As agreed to and as per Insurer(s) policy wording(s) on a Follow Form
basis:
	 	 	 
	 	 	Follow Form Coverages:

	 	 	 	 	 
	 	 	 	 	 
	 	 	•	 	Named Insured
	 	 	 	 	 
	 	 	•	 	Automobile
	 	 	 	 	 
	 	 	•	 	Contractual
	 	 	 	 	 
	 	 	•	 	Employee Benefits Liability
	 	 	 	 	 
	 	 	•	 	Incidental Medical Malpractice
	 	 	 	 	 
	 	 	•	 	Professional Liability
	 	 	 	 	 
	 	 	•	 	Punitive Damages
	 	 	 	 	 
	 	 	•	 	Real Property in Care, Custody and Control
	 	 	 	 	 
	 	 	•	 	Aircraft
	 	 	 	 	 
	 	 	•	 	Multimedia Professional Liability
	 	 	 	 	 
	 	 	•	 	Currency Clause
	 	 	 	 	 
	 	 	Coverage
	 	 	 	 	 
	 	 	Provides catastrophe cover excess of the liability limits under the
General Liability, Media Liability, Automobile Liability, Watercraft Liability,
and Employers Liability policies

	 	 	 	 	 
	 
	 	 	 	 
	 
	 	Limit of Liability
	 
	 	 	 	 
	 
	 	Excess of Primaries, each occurrence (combined)	 	C$13,000,000
	 
	 	

	 
	 	Annual Aggregate	 	As per underlying policies
	 
	 	

Table of Contents

	 	 	 	 	 
	 	 	Excess of Underlying Coverages and Limits
	 	 	 	 	 
	 	 	 	 	 
	 	 	
Insurance Company
	 	Elliot Special Risks
	 	 	 	 	 
	 	 	
Coverage
	 	Fifth Excess Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	$25,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	ET52843
	 	 	 	 	 
	 	 	
Policy Term
	 	July 1, 2002 to July 1, 2003
	 	 	 	 	 
	 	 	 	 	 
	 	 	
Insurance Company
	 	Chubb Insurance
	 	 	 	 	 
	 	 	
Coverage
	 	Fourth Excess Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	$35,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	7974 75 51
	 	 	 	 	 
	 	 	
Policy Term
	 	July 1, 2002 to July 1, 2003
	 	 	 	 	 
	 	 	 	 	 
	 	 	
Insurance Company
	 	ACE INA Insurance
	 	 	 	 	 
	 	 	
Coverage
	 	Third Excess Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	$25,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	XCP397172
	 	 	 	 	 
	 	 	
Policy Term
	 	July 1, 2002 to July 1, 2003
	 	 	 	 	 
	 	 	 	 	 
	 	 	
Insurance Company
	 	Allianz Insurance Company
	 	 	 	 	 
	 	 	
Coverage
	 	Second Excess Liability
	 	 	 	 	 
	 	 	
Limit(s)
	 	$50,000,000
	 	 	 	 	 
	 	 	
Policy No
	 	XXK 0009 6883020
	 	 	 	 	 
	 	 	
Policy Term
	 	July 1, 2002 to July 1, 2003

Table of Contents

	 	 	 	 	 
	 	 	Insurance Company	 	Chubb Insurance Company
	 	 	 	 	 
	 	 	Coverage	 	First Excess Liability
	 	 	 	 	 
	 	 	Limit(s)	 	$25,000,000
	 	 	 	 	 
	 	 	Policy No	 	93630803
	 	 	 	 	 
	 	 	Policy Term	 	July 1, 2002 to July 1, 2003
	 	 	 	 	 
	 	 	 	 	 
	 	 	Insurance Company	 	Liberty International
	 	 	 	 	 
	 	 	Coverage	 	Primary Umbrella Liability
	 	 	 	 	 
	 	 	Limit(s)	 	$25,000,000
	 	 	 	 	 
	 	 	Policy No	 	LQ1-B71-070002-062
	 	 	 	 	 
	 	 	Policy Term	 	July 1, 2002 to July 1, 2003
	 	 	 	 	 
	 	 	 	 	 
	 	 	Defence Costs over and above the Limit(s) of Insurance

	 	 	 	 	 
	 
	 	Retention
	 
	 	 	 	 
	 
	 	Any one occurrence	 	Nil
	 
	 	

	 	 	
Principal Exclusions/Restricting Terms

	 	 	 	 	 
	 	 	 
	 	 	•	 	Professional Liability Exclusion, except for Multimedia Communications Liability hazards for which coverage
is afforded under the scheduled underlying insurance
	 	 	 
	 	 	•	 	Pollution — Sudden & Accidental, 5 days Detection & Reporting,
IBC 2313 Form
	 	 	 
	 	 	•	 	Nuclear
	 	 	 
	 	 	•	 	Asbestos
	 	 	 
	 	 	•	 	War & Terrorism
	 	 	 
	 	 	Currency Clause
	 	 	 
	 	 	
All limits, premiums and deductibles are expressed in Canadian currency
	 	 	 
	 	 	
Territorial Limits
	 	 	 
	 	 	
Worldwide

 

Table of Contents

	 	 	 
	 	 	
Cancellation
	 	 	 
	 	 	
90 Days Notice of Cancellation except for non-payment of premium and
statutory conditions shall govern

 

Table of Contents

SCHEDULE 9.16

CONTRACTS; LABOUR MATTERS

9.16(a): Contracts Subject to Corporate Restriction or Judgment

Nil.

9.16(b): Material Labor Contracts

	 	 	 	 	 
	Guild (CWA) Post-Tribune, Gary, IN
Status: Presently in negotiations
	 	Contract Expired:  11/3/94
	Electricians (IBEW) Local 134/Chicago Sun-Time
Status: Presently in negotiations
	 	Contract Expired:  12/31/00
	Guild (CWA) Waukegan News-Sun
Status: Presently in negotiations
	 	Contract Expired:  2/28/02
	Guild (CWA)/Pioneer Press, Inc.
Status: Presently in negotiations
	 	Contract Expires:  5/31/02
	Guild (CWA)/Joliet Herald News
Status: Presently in negotiations
	 	Contract Expires:  6/30/02
	Typographical (CWA) (Printers)/Aurora Beacon-News
Status: Presently in negotiations
	 	Contract Expires:  6/30/02
	Typographical (CWA) (Printers)/Elgin Courier-News
Status: Presently in negotiations
	 	Contract Expires:  7/31/02
	Machinists (IAM)/Chicago Sun-Times
Status: Presently in negotiations
	 	Contract Expires:  9/30/02
	Pressmen (GCIU)/(Plainfield) Fox Valley Publications
	 	Contract Expires: 12/31/02
	Teamsters (Local 706) Drivers (Plainfield) Fox Valley
Publications Presently in negotiations
(Union trying
to negotiate first contract with Fox Valley Pub.)
	 
	Automobile Mechanics (IAM)/Chicago Sun-Times
	 	Contract Expires:  12/31/02
	United Steelworkers of America
(Midwest Suburban Publishing)
	 	Contract Expires:  3/9/03
	Mailers (CWA) Chicago Sun-Times
	 	Contract Expires:  6/30/03

Table of Contents

	 	 	 	 	 
	Platemakers (GCIU) Chicago Sun-Times
	 	Contract Expires:  7/14/03
	Photoengravers (GCIU) Chicago Sun Times
	 	Contract Expires:  8/16/03
	Printers (CWA) Post-Tribune, Gary, IN
	 	Contract Expires:  11/25/03
	Pressmen (GCIU) Post-Tribune, Gary, IN
	 	Contract Expires:  2/1/04
	Guild (CWA)/Chicago Sun-Times
	 	Contract Expires:  9/30/04
	Teamsters (IBEW) (Drivers)/Chicago Sun-Times
Status: Recently reached a 3-year agreement
	 	Contract Expires:  12/15/04
	Typographical (CWA) Chicago Sun-Times
	 	Contract Expires:  12/31/04
	Paperhandlers (GCIU)/Chicago Sun-Times
	 	Contract Expires:  6/30/06
	Pressmen (GCIU)/Chicago Sun-Times
	 	Contract Expires:  6/30/06
	Operating Engineers/Chicago Sun-Times
Status: Recently reached a 6-year agreement
	 	Contract Expires:  5/31/08
	Note: Typographical (CWA) (Printers)
Joliet Herald News
	 	Contract Expires:  12/31/01
	This contract will not be renewed because all of the
3 printers in this bargaining unit have agreed to
accept the recent buyout offer.

	Typographical (CWA)
(Printers) Waukegan News-Sun
	 	Contract Expires:  10/12/02
	This contract will not be renewed because all of the
printers in this bargaining unit agreed to accept
a buyout offer
	 	 	 	 

19(c): Actions Relating to Plant Closings or Mass Layoffs

Nil.

19(d): Strikes or Walkouts Relating to Labor Contracts

Nil.

2

Table of Contents

No further disclosure under the Credit Agreement.

Table of Contents

SCHEDULE 9.17

ENVIRONMENTAL AND SAFETY AND HEALTH MATTERS

Environmental Matters

Nil.

Safety Matters

The four pending OSHA investigations are:

	1.	 	Complaint No. 203878657 — The investigation began on July 31, 2002 when
an employee notified OSHA, via telephone of hazardous conditions at the
Ashland plant. The allegations include (a) unsafe conditions and
potential employee injury resulting from employees required to work alone
in the reel room; (b) Employees exposed to potential injury in the reel
room while using the auto-load feature; and (c) Employees at risk for
slipping and failing because of excess oil, paper and paper dust on the
floor. After receiving the complaint, OSHA requested a written response
and a posting of the complaint, which were completed on August 4, 2002.
Although the investigation remains open for a period of six months, OSHA
has stated it will not conduct an onsite inspection at this time.
	 
	2.	 	Complaint No 203878244 — OSHA received a telephone complaint alleging a
threat of imminent harm to employees on August 23, 2002. OSHA conducted
an unannounced onsite inspection on August 28, 2002 and issued the
Complaint alleging eight potential violations. At the onsite inspection
CST provided copies of OSHA logs. The inspector took photos and indicated
he would return at a later date for employee interviews. We have retained
counsel and do not yet have the date for employee interviews, or any
follow-up visit from the inspector. The inspection will remain open for
six months during which time there will be employee interviews and CST
will be required to conduct training and develop written materials to
bring plant into compliance with standards. There will likely be modest
fines on some of the violations.
	 
	3.	 	Complaint No. 5-1260-03-0-Retaliation claim filed by Employee who was
terminated after giving statement in OSHA investigation. Finding of
liability is unlikely. Potential fines include backpay dating to
termination date.
	 
	4.	 	Complaint No. 5-1260-02-054 Retaliation claim filed by current employee
alleging retaliation following statements made in OSHA investigation.
Nominal fines possible but unlikely.

The estimated aggregated exposure of these four claims is less than $50,000.

No further disclosure under the Credit Agreement.

Table of Contents

SCHEDULE 10.7

“CONTINUING DEBT”

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	LongTerm	 	Current	 	Total
	 	 	
	 	
	 	

	Pioneer Newspapers Inc.
	 	 	500,000	 	 	 	—	 	 	 	500,000	 
	American Publishing Company
	 	 	2,017,718	 	 	 	952,866	 	 	 	2,970,584	 
	Telegraph Group Limited — Capital Leases
	 	 	1,692,000	 	 	 	1,661,000	 	 	 	3,353,000	 
	 
	 	 	
	 	 	 	
	 	 	 	
	 
	 
	 	 	4,209,718	 	 	 	2,613,866	 	 	 	6,823,584	 
	 
	 	 	
	 	 	 	
	 	 	 	
	 

 

Table of Contents

SCHEDULE 10.8

LIENS

1.   Registrations in respect of Companies in the United Kingdom

Nil

2.   Registrations in respect of Companies in the United States of America

	 	 	 	 	 	 	 	 	 	 	 
	Debtor	 	Secured Party	 	Number	 	Jurisdiction	 	Collateral Description
	
	 	
	 	
	 	
	 	

	Chicago Sun-Times,
Inc.	 	
Konica Graphic Imaging
	 	5355265	 	 	Secretary of State
Illinois
	 	(1) One Computer to
proof software —
SN-CTP0387
	 
	 	 	 	 	 	 	 	 	 	 	(1) One Konica
Platform —
1GHZ/PC133
	 
	 	 	 	 	 	 	 	 	 	 	(1) One HP 1050C Plus
Printer —
SN-13124064
	 
	 	 	 	 	 	 	 	 	 	 	(1) One 36” Newsprint
End Roll Adapter
	 
	Chicago Sun-Times,
Inc.	 	
Konica Graphic Imaging
	 	5355273	 	 	Secretary of State
Illinois
	 	(1) One Computer to
proof software —
SN-CTP0387
	 
	 	 	 	 	 	 	 	 	 	 	(1) One Konica
Platform —
1GHZ/PC133
	 
	 	 	 	 	 	 	 	 	 	 	(1) One HP 1050C Plus
Printer —
SN-13124064
	 
	 	 	 	 	 	 	 	 	 	 	(1) One 36” Newsprint
End Roll Adapter
	 
	N/A	 	
Toronto Dominion
(Texas), Inc.
	 	N/A	 	 	N/A
	 	$2.2 million cash
collateral in account
number 0984 01
2009082 held as
security for the
Original Letters of
Credit

Table of Contents

Schedule 10:10

Investments

All amounts are in US$

	 	 	 	 	 	 	 	 	 	 	 
	External Investments
— Restricted Group	 	Type of Investment and/or Percentage Owned	 	Sept 30, 2002	 	Nov 30, 2002
	
	 	
	 	
	 	

	HIPI	 	 	 	 	 	 	 	 	 	 
	News Communications Inc.	 	28% interest	 	$	1,385,257	 	 	$	1,385,257	 
	FDR Collection	 	Items of historical importance	 	$	8,000,000	 	 	$	8,000,000	 
	Chicago Sun Times	 	 	 	 	 	 	 	 	 	 
	U Click	 	100% interest	 	$	8,000	 	 	$	8,000	 
	Chicago Computer Guide	 	100% interest	 	$	81,017	 	 	$	0	 
	City News Bureau	 	50% interest	 	$	6,256	 	 	$	6,256	 
	Newspaper National Network	 	2.33% interest	 	$	29,334	 	 	$	29,334	 
	Drive Chicago	 	33% interest	 	$	0	 	 	($	5,500	)
	401 North Wabash Venture LLC	 	50% interest, Trump Sun Times Joint Venture	 	$	900,000	 	 	$	900,000	 
	Rabbi Trust	 	Pension investment	 	$	1,885,687	 	 	$	1,885,687	 
	Metro Sunday	 	Old accounts receivable, stock given in lieu of payment	 	$	48,998	 	 	$	48,998	 
	Grand Rapids Telemarketing	 	100% investment	 	$	0	 	 	$	20,000	 
	Telegraph Group	 	 	 	 	 	 	 	 	 	 
	Trafford Park Printers Ltd	 	5000 A Ordinary Shares, 50%	 	$	11,221,998	 	 	$	11,194,581	 
	West Ferry Printers Ltd	 	5000 A Ordinary Shares, 50%	 	$	8,583,925	 	 	$	9,889,606	 
	Newsprint
Management and Supply Services Ltd
	 	100 A Ordinary Shares, 50%	 	$	130,467	 	 	$	129,245	 
	Paper Purchase and Management Limited	 	100 A Ordinary Shares, 50%	 	$	157	 	 	$	196	 
	Lamponians Ltd.	 	50 Ordinary Shares, 50%	 	Nominal	 	 	Nominal	 
	Press Association Ltd.	 	60,000 Ordinary 10p shares	 	Nominal	 	 	Nominal	 
	Oldham Estates plc	 	10 Ordinary Shares	 	Nominal	 	 	Nominal	 

Table of Contents

	 	 	 	 	 	 	 	 	 	 	 
	Investment in Unrestricted Group	 	Type of Investment and/or Percentage Owned	 	Sept 30, 2002	 	Nov 30, 2002
	
	 	
	 	
	 	

	HIPI	 	 	 	 	 	 	 	 	 	 
	Hollinger Canadian Publishing Holdings Co.	 	100 Common Shares (100%)	 	 	 	 	 	 	 	 
	HTH Holdings Inc.	 	 	 	 	 	 	 	 	 	 	 
	Hollinger Canadian Publishing Holdings Co.	 	44,745,000 Class B Voting Common Shares	 	 	 	 	 	 	 	 	 
	HTH Benholdco Inc.	 	 	 	 	 	 	 	 	 	 	 
	Hollinger Canadian Publishing Holdings Co.	 	137,540,000 Class A Voting Common Shares	 	 	 	 	 	 	 	 	 
	XSTM Holdings Corp.	 	1000 Common Shares	 	 	 	 	 	 	 	 	 
	American
Publishing Management Services Inc.
	 	 	 	 	 	 	 	 	 	 	 
	HC Holdings Company	 	49,369 Common Shares	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	External Long Term
Receivables — Restricted Group	 	Type of Investment and/or Percentage Owned	 	Sept 30, 2002	 	Nov 30, 2002
	
	 	
	 	
	 	

	Telegraph Group	 	 	 	 	 	 	 	 	 	 
	Trafford Park Printers Ltd	 	Long term receivable	 	$	5,102,500	 	 	$	5,054,725	 
	West Ferry Printers Ltd	 	Deferred printing contract	 	$	43,066,532	 	 	$	41,799,586	 
	Paper Purchase and Management Limited	 	Long term receivable	 	$	2,355,000	 	 	$	2,332,950	 
	Newspaper Licencing	 	Long term receivable	 	$	133,450	 	 	$	132,201	 
	American Publishing Group	 	 	 	 	 	 	 	 	 	 
	Horizon Group	 	Long term receivable	 	$	4,859,000	 	 	$	4,859,000	 

Table of Contents

SCHEDULE 10.13

TRANSACTIONS WITH AFFILIATES

	1.	 	Agreement between Hollinger Aviation Inc. and 3016296 Nova Scotia Company
dated February 1, 2002.
	 
	2.	 	Business Opportunities Agreement between Hollinger Inc. and Hollinger
International Inc..
	 
	3.	 	Services Agreements between Hollinger International Inc. and The
Ravelston Corporation Limited.
	 
	4.	 	Services Agreement between Hollinger Inc., Hollinger International Inc.,
Hollinger Canadian Publishing Holdings Co., Hollinger Canadian Newspapers,
Limited Partnership, by its General Partner, Hollinger Canadian Newspapers
G.P. Inc. and Hollinger (Challenger) Holdings Co., dated June 17, 2002.
	 
	5.	 	Option Tax Indemnity Agreement dated May 31, 1996 between FDTH and West
Ferry (letter agreement).
	 
	6.	 	Deed of Indemnity dated June 23, 1992 entered into by Hollinger Inc., DTH
and FDTH in favor of Telegraph.
	 
	7.	 	Co-operation Agreement dated June 23, 1992 between Hollinger Inc. and the
Telegraph.
	 
	8.	 	Amended and Restated Tax Allocation Agreement made as of February 1, 2001
between Hollinger International Inc., APAC-90, Inc., American Publishing
(1991) Inc., APC 1993, Inc., Valley Cable TV, Inc. and The Sun-Times
Company.
	 
	9.	 	Employee Secondment Agreement dated December 20, 2002 between Hollinger
Canadian Publishing Holdings Co. and Hollinger International Publishing
Inc.

Table of Contents

SCHEDULE 15.3

ADDRESSES FOR NOTICES

	 	 	 
	HOLLINGER INTERNATIONAL PUBLISHING INC.
	 	 	 
	Address:	 	
10 Toronto Street

Toronto, Ontario M5C2B7
	 	 	 
	Attention:	 	
Jack Boultbee
	Facsimile:	 	
(416) 262-7261
	 	 	 
	With copies to:	 	 
	 	 	 
	Address:	 	
401 North Wabash Avenue, Suite 740

Chicago, Illinois 60611
	 	 	 
	Attention:	 	
Mark Kipnis
	Facsimile:	 	
(312) 321-0629
	 	 	 
	Address:	 	
712 Fifth Avenue, 18th Floor

New York, New York 10019
	 	 	 
	Attention:	 	
Robert Smith
	Facsimile:	 	
212-586-0010
	 	 	 
	WACHOVIA BANK, N.A.
	 	 	 
	Address:	 	
One Wachovia Center,

301 South College Street

Charlotte, North Carolina 28288-0604
	 	 	 
	Attention:	 	
Joe Mynatt
	Facsimile:	 	
704-374-4092
	 	 	 
	WACHOVIA SECURITIES, INC.
	 	 	 
	Address:	 	
One Wachovia Center,

301 South College Street

Charlotte, North Carolina 28288-0604
	 	 	 
	Attention:	 	
Joe Mynatt
	Facsimile:	 	
704-374-4092
	 	 	 
	TORONTO DOMINION (TEXAS), INC.
	 	 	 
	Address:	 	
Suite 1700

909 Fannin Street

Houston, TX 77010
	 	 	 
	Attention:	 	
Neva Nesbitt
	Facsimile:	 	
713-951-9921

 

Table of Contents

	 	 	 
	GENERAL ELECTRIC CAPITAL CORPORATION
	 	 	 
	Address:	 	
2325 Lakeview Parkway, Suite 700

Alpharetta, GA 30004-1976
	 	 	 
	Attention:	 	
Betty Cao
	Facsimile:	 	
202-585-0235
	 	 	 
	LASALLE BANK NATIONAL ASSOCIATION
	 	 	 
	Address:	 	
135 South LaSalle Street

Chicago, IL 60603
	 	 	 
	Attention:	 	
Lavearn Hamilton
	Facsimile:	 	
312-904-6373
	 	 	 
	ROYAL BANK OF SCOTLAND
	 	 	 
	Address:	 	
280 Bishops Gate, 9th Floor

London, England EC2M-4RB
	 	 	 
	Attention:	 	
David Ellis
	Facsimile:	 	
8011-44-207-375-8549

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